Nonreversion Sample Clauses
A Nonreversion clause ensures that once assets, rights, or benefits are transferred or distributed, they cannot revert or return to the original party or grantor. In practice, this means that if a trust distributes funds to a beneficiary, those funds cannot later be reclaimed by the trust or the person who established it, regardless of future circumstances. The core function of this clause is to provide certainty and finality in the transfer of assets, preventing any future claims or reversals that could undermine the recipient's rights or expectations.
Nonreversion. Except as otherwise provided in Section 3.1 and Section 9.3:
(a) The Bank shall have no power to amend or to terminate this Plan in such a manner which would cause or permit any part of the Fund to be diverted to purposes other than for the exclusive benefit of Participants or, if deceased, of their spouse or other Beneficiaries or as would cause or permit any portion of the Fund to revert to or to become the property of the Companies, and
(b) The Bank shall have no right to modify or to amend this Plan retroactively in such a manner as to deprive any Participants, or if deceased, their spouses or other Beneficiaries of any benefits to which they are entitled under this Plan by reason of contributions made by the Companies prior to the modification or amendment, unless such modification or amendment is necessary to meet the qualification requirements of Sections 401(a) and 501(a) of the Code.
Nonreversion. Except as provided in section 7.2(b) and in this section 16.5, neither the Employer nor any Participating Affiliate shall have any present or prospective right, claim, or interest in the Fund or in any Employer contribution made to the Trustee. To the extent permitted by the Code and ERISA, the Employer contributions described in this section 16.5, less any losses on such contributions, shall be returned by the Trustee to the Employer or to any Participating Affiliate upon the written direction of the Plan Administrator in the event that:
(a) an Employer contribution is made by a mistake of fact, provided such return is effected within one year after the payment of such contribution;
(b) a final judicial or Internal Revenue Service determination is made that this Plan fails to satisfy the requirements of Code section 401 with respect to its initial qualification (provided, if the Employer is not entitled to rely on the Prototype Sponsor's opinion letter, the application for the initial qualification of the Plan is made on or before the date prescribed by law for filing the Employer's return for the taxable year in which the Plan is adopted, or such later date as the Secretary of the Treasury may prescribe), in which event all Employer contributions made before such judicial or administrative determination (whichever last occurs) plus any earnings and minus any losses shall be returned within one year after such determination, all such contributions being hereby conditioned upon this Plan satisfying all applicable requirements under Code section 401 from and after its adoption; or
Nonreversion. No part of the Trust Fund will ever be used for or be diverted to purposes other than for the exclusive benefit of Participants and Beneficiaries except that, upon direction of the Plan Administrator, the Trustee will return contributions to a Participating Employer in the following circumstances, to the extent permitted by the Code and ERISA:
(a) a contribution made by a mistake of fact will be returned, provided the return is made within one year after the payment of the contribution;
(b) a nondeductible contribution will be returned, provided the return is made within one year after the Internal Revenue Service denies the deduction for the contribution, all Plan contributions being made expressly on the condition that the contributions are deductible in full for federal income tax purposes; and
(c) any amount held in a Code ss. 415 suspense account (as described in ss. 6.2(d)) that cannot be allocated upon the termination of this Plan will be returned.
Nonreversion. Except as provided in (S)7.2(b) of the Plan and in this (S)12(d), neither the Employer nor any Participating Affiliate shall have any present or prospective right, claim, or interest in the Fund or in any Employer contribution made to the Trustee. To the extent permitted by the Code and ERISA, the Employer contributions described in this (S)12(d), less any losses on such contributions, shall be returned by the Trustee to the Employer or to any Participating Affiliate upon the written direction of the Plan Administrator in the event that:
(a) an Employer contribution is made by a mistake of fact, provided such return is effected with one year after the payment of such contribution;
(b) a final judicial or Internal Revenue Service determination is made that the Plan fails to satisfy the requirements of Code (S)401 with respect to its initial qualification (provided, if the Employer is not entitled to rely on the Prototype Sponsor's opinion letter, the application for the initial qualification of the Plan is made by the time prescribed by law for filing the Employer's return for the taxable year in which the Plan is adopted, or such later date as the 128 Secretary of the Treasury may prescribe), in which even all Employer contributions made before such judicial or administrative determination (whichever last occurs) plus any earnings and minus any losses shall be returned within one year after such determination, all such contributions being hereby conditioned upon the Plan satisfying all applicable requirements under Code (S)401 from and after its adoption; or
(c) a deduction for an Employer contribution is disallowed under Code (S)404, in which event such contribution shall be returned within one year after such disallowance, all such contributions being hereby conditioned upon being deductible under Code (S)404. The Trustee shall have no obligation or responsibility whatsoever to determine whether the return of any such Employer contributions is permitted by the Code or ERISA and shall (to the extent permissible under law) be indemnified and held harmless by the Employer for acting in accordance with written directions given by the Plan Administrator pursuant to this (S)12(d).
Nonreversion. No part of the Trust Fund will ever be used for ------------ or be diverted to purposes other than for the exclusive benefit of Participants and Beneficiaries except that, upon direction of the Committee, the Trustee will return contributions to the Employer Companies in the following circumstances, to the extent permitted by the Code and ERISA:
(a) amounts in a Code (S) 415 suspense account (as described in Section 5.1(d)) that cannot be allocated upon termination of the Plan will be returned to the Employer Companies;
(b) a contribution that is made by a mistake of fact will be returned, provided the return is made within one year after the payment of such contribution; and
(c) a contribution may be returned to the extent that the Internal Revenue Service denies an income tax deduction of such contribution, provided such return is made within one year after such denial, all such contributions being made expressly on the condition that such contributions are deductible in full for federal income tax purposes.
Nonreversion. Except as provided in this Section, the assets of the Plan shall never inure to the benefit of an Employer; such assets shall be held for the exclusive purpose of providing benefits to Participants and their Beneficiaries and for defraying the reasonable administrative expenses of the Plan, except as and to the extent permitted under ERISA and the PR-Code.
(a) If Employer Contributions are made by virtue of a mistake of fact, this Section shall not prohibit the return of such contributions to the Employer within one year after the payment of the contributions to the Trust.
(b) If a deduction for Employer Contributions is disallowed under Section 1023(n) of the PR-IRC, or any successor provision thereto, the contributions shall be returned to the Employer (to the extent disallowed) within 1 year after such disallowance.
(c) If Employer Contributions are subject to the Plan’s initial qualification under Section 1165 of the PR-IRC and initial qualification is for any reason denied by the Secretary of the Puerto Rico Treasury Department, this Section shall not prohibit the return of such contributions to the Employer within one year after the date initial qualification is denied.