Common use of Management of Trust Fund Clause in Contracts

Management of Trust Fund. The responsibility for making investments of the Trust Fund shall, for the duration of the Trust, repose with the Company and unless and until otherwise directed by the Company in writing, the Trustee shall not be required to take any action in regard to investments and property held in the Trust other than to collect the interest and dividends or other sums payable thereon. Unless otherwise requested in writing by the Company, and subject only to the provisions of Paragraph 2.5, the Trustee shall retain any and all assets of the Trust held by it from time to time hereunder, notwithstanding that the same may not be recognized as legal investments for trust funds under the laws of the state where the Trust Fund is administered or other applicable law. The Trustee shall deposit the assets of the Trust Fund, except to the extent the Trust Fund consists of Letters of Credit, or any part thereof, in one or more such banks (which may include the Trustee) or trust companies in the U.S., or invest and reinvest the Trust Fund, except to the extent the Trust Fund consists of Letters of Credit, or any part thereof, in any such stocks, bonds and securities as the Company shall direct in writing, notwithstanding that such Investments may not be recognized by the laws of the state where the Trust Fund is administered or other applicable law as legal investments for trust funds. The Domiciliary Commissioner and the Chief Regulatory Officer for Insurance in any other state, territory, district, commonwealth or possession of the U.S. where the Company is eligible for excess or surplus lines shall have the right to review the assets in the Trust to determine whether such assets are acceptable. Nothing herein contained is intended to relieve the Company from furnishing investments in the Trust Fund of the quality required by the Surplus Lines or Excess Lines Laws of all states where the Trust Fund is required as a condition of the Company’s eligibility. Each investment instruction from the Company shall be a representation by the Company that the investments specified therein meet such conditions and the conditions imposed by the definitions set forth in this Agreement. The Trustee shall also make or change any deposits and sell and dispose of any negotiable assets of the Trust, other than Letters of Credit, by and with the direction in writing of the Company. The Trustee shall be under no duty to give any investment advice to any person in connection with the Trust Fund but shall always, provided the Trustee itself shall have received actual notice thereof, notify the Company as to any rights to conversion, subscription, voting or other rights pertaining to any investments held in the Trust Fund and of any default in the payment of principal or interest. The Company shall have the full, unqualified right to vote and execute consents and to exercise any and all proprietary rights, not inconsistent with this Trust Agreement, with respect to any of the property forming a part of the Trust Fund. All interest, dividends and other income resulting from the investment of the property in the Trust Fund (subject to the Company’s obligation to maintain the Trust Fund Minimum Amount and to the Trustee’s interests provided herein) shall be the property of the Company. To the extent the Company shall be entitled to receive such income, Trustee shall collect and pay it to the Company, upon the Company’s written instructions, not more frequently than monthly, provided, however, that the Trustee shall have no obligation with respect to the payment of income by the issuer of any security.

Management of Trust Fund. The responsibility for making investments of the Trust Fund shall, for the duration of the Trusttrust, repose with the Company and unless and until otherwise directed by the Company in writing, the Trustee shall not be required to take any action in regard to investments and property held in the Trust other than to collect the interest and dividends or other sums payable thereon. Unless otherwise requested in writing by the Company, and subject only to the provisions of Paragraph 2.5, the Trustee shall retain any and all assets of the Trust held by it from time to time hereunder, notwithstanding that the same may not be recognized as legal investments for trust funds under the laws of the state where the Trust Fund is administered or other applicable law. The Trustee shall deposit the assets of the Trust Fund, except to the extent the Trust Fund consists of Letters of Credit, or any part thereof, in one or more such banks (which may include the Trustee) or trust companies in the U.S.United States of America, or invest and reinvest the Trust Fund, except to the extent the Trust Fund consists of Letters of Credit, or any part thereof, in any such stocks, bonds and securities as the Company shall direct in writing, notwithstanding that such Investments may not be recognized by the laws of the state where the Trust Fund is administered or other applicable law as legal investments for trust funds. The Domiciliary Commissioner and the Chief Regulatory Officer for Insurance in any other state, territory, district, commonwealth or possession of the U.S. United States where the Company is eligible for excess or surplus lines shall have the right to review the assets in the Trust trust to determine whether such assets are acceptable. Nothing herein contained is intended to relieve the Company from furnishing investments in the Trust Fund of the quality required by the Surplus Lines or Excess Lines Laws of all states where the Trust Fund is required as a condition of the Company’s eligibility. Each investment instruction from the Company shall be a representation by the Company that the investments specified therein meet such conditions and the conditions imposed by the definitions set forth in this Agreement. The Trustee shall also make or change any deposits and sell and dispose of any negotiable assets of the Trust, other than Letters of Credit, by and with the direction in writing of the Company. The Trustee shall be under no duty to give any investment advice to any person in connection with the Trust Fund but shall always, provided the Trustee itself shall have received actual notice thereof, notify the Company as to any rights to conversion, subscription, voting or other rights pertaining to any investments held in the Trust Fund and of any default in the payment of principal or interest. The Company shall have the full, unqualified right to vote and execute consents and to exercise any and all proprietary rights, not inconsistent with this Trust Agreement, with respect to any of the property forming a part of the Trust Fund. All interest, dividends and other income resulting from the investment of the property in the Trust Fund (subject to the Company’s obligation to maintain the Trust Fund Minimum Amount and to the Trustee’s interests provided herein) shall be the property of the Company. To the extent the Company shall be entitled to receive such income, Trustee shall collect and pay it to the Company, upon the Company’s written instructions, not more frequently than monthly, provided, however, that the Trustee shall have no obligation with respect to the payment of income by the issuer of any security.

Management of Trust Fund. The responsibility for making investments of the Trust Fund shall, for the duration of the Trusttrust, repose with the Company and unless and until otherwise directed by the Company in writing, the Trustee shall not be required to take any action in regard to investments and property held in the Trust other than to collect the interest and dividends or other sums payable thereon. Unless otherwise requested in writing by the Company, and subject only to the provisions of Paragraph 2.5, the Trustee shall retain any and all assets of the Trust held by it from time to time hereunder, notwithstanding that the same may not be recognized as legal investments for trust funds under the laws of the state where the Trust Fund is administered or other applicable law. The Trustee shall deposit the assets of the Trust Fund, except to the extent the Trust Fund consists of Letters of Credit, or any part thereof, in one or more such banks (which may include the Trustee) or trust companies in the U.S.United StatesU.S. of America, or invest and reinvest the Trust Fund, except to the extent the Trust Fund consists of Letters of Credit, or any part thereof, in any such stocks, bonds and securities as the Company shall direct in writing, notwithstanding that such Investments may not be recognized by the laws of the state where the Trust Fund is administered or other applicable law as legal investments for trust funds. The Domiciliary Commissioner and the Chief Regulatory Officer for Insurance in any other state, territory, district, commonwealth or possession of the U.S. United StatesU.S. where the Company is eligible for excess or surplus lines shall have the right to review the assets in the Trust trust to determine whether such assets are acceptable. Nothing herein contained is intended to relieve the Company from furnishing investments in the Trust Fund of the quality required by the Surplus Lines or Excess Lines Laws of all states where the Trust Fund is required as a condition of the Company’s eligibility. Each investment instruction from the Company shall be a representation by the Company that the investments specified therein meet such conditions and the conditions imposed by the definitions set forth in this Agreement. The Trustee shall also make or change any deposits and sell and dispose of any negotiable assets of the Trust, other than Letters of Credit, by and with the direction in writing of the Company. The Trustee shall be under no duty to give any investment advice to any person in connection with the Trust Fund but shall always, provided the Trustee itself shall have received actual notice thereof, notify the Company as to any rights to conversion, subscription, voting or other rights pertaining to any investments held in the Trust Fund and of any default in the payment of principal or interest. The Company shall have the full, unqualified right to vote and execute consents and to exercise any and all proprietary rights, not inconsistent with this Trust Agreement, with respect to any of the property forming a part of the Trust Fund. All interest, dividends and other income resulting from the investment of the property in the Trust Fund (subject to the Company’s obligation to maintain the Trust Fund Minimum Amount and to the Trustee’s interests provided herein) shall be the property of the Company. To the extent the Company shall be entitled to receive such income, Trustee shall collect and pay it to the Company, upon the Company’s written instructions, not more frequently than monthly, provided, however, that the Trustee shall have no obligation with respect to the payment of income by the issuer of any security.