Procedures for Creation and Issuance of Creation Baskets Clause Samples

The Procedures for Creation and Issuance of Creation Baskets clause defines the process by which new units, or 'creation baskets,' of a fund or exchange-traded product are generated and distributed to authorized participants. Typically, this involves specifying the steps, documentation, and timing required for an authorized participant to submit a request, deliver the necessary assets, and receive the corresponding creation baskets. This clause ensures a standardized and transparent method for increasing the supply of fund units, thereby facilitating efficient market operations and maintaining orderly fund management.
Procedures for Creation and Issuance of Creation Baskets 
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Related to Procedures for Creation and Issuance of Creation Baskets

  • Purchase and Issuance of the Units For the aggregate sum of $3,000,000 (the “Initial Purchase Price”), upon the terms and subject to the conditions of this Agreement, the Purchaser hereby agrees to purchase from the Company, and the Company hereby agrees to sell to the Purchaser, on the Closing Date (as defined in Section 1.2) 300,000 Initial Units at $10.00 per Initial Unit. In addition to the foregoing, the Purchaser hereby agrees to purchase up to an additional 30,000 Additional Units at $10.00 per Additional Unit for a purchase price of up to $300,000 (the “Additional Purchase Price” and together with the Initial Purchase Price, the “Purchase Price”). The purchase and issuance of the Additional Units shall occur only in the event that the Over-Allotment Option is exercised in full or part. The total number of Additional Units to be purchased hereunder shall be in the same proportion as the amount of the Over-Allotment Option that is exercised. Each purchase of Additional Units shall occur simultaneously with the consummation of any portion of the Over-Allotment Option.