Proceeds received Clause Samples
The "Proceeds received" clause defines how any funds or assets obtained, typically from a sale, settlement, or other transaction, are to be handled and distributed among the parties involved. In practice, this clause specifies the process for collecting, allocating, and disbursing the proceeds, often outlining priorities such as repayment of debts, covering expenses, or distributing remaining amounts to stakeholders. Its core function is to ensure transparency and fairness in the management of received funds, preventing disputes by clearly establishing the order and method of distribution.
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Proceeds received. All Proceeds received or recovered by the Security Trustee (otherwise than by way of distribution from any Proceeds Account) shall as soon as reasonably practicable be credited to the applicable Proceeds Account.
Proceeds received. 2.01. If the Trustee receives any dividend or other distribution of cash or property, other than common or other voting securities, including any stock which may become voting stock, upon the happening of any specified contingency, upon or by reason of the stock held by the Trustee hereunder or proceeds on the sale of any stock, the Trustee shall immediately make pro rata distribution of such dividend, distribution or proceeds to the Beneficiaries as their respective interests appeared as of the record date of such dividend or other distribution. In case of dividends or distribution of common stock or other voting securities, such stock or securities shall be added to the stock held by the Trustee hereunder and Trust Certificates evidencing such stock shall be distributed to the Beneficiaries in proportion to their respective interests on the record date for such dividend or distribution of the stock deposited hereunder. Prior to making any distribution of cash, stock or other property to the Beneficiaries, the Trustee may retain therefrom a sufficient part, either in cash, stock or property, to meet the expenses and obligations of the trust.
2.02. In lieu of receiving cash dividends upon the stock deposited hereunder and paying the same to the Beneficiaries as described in Section 2.01, the Trustee may instruct the corporation in writing to pay such dividends directly to the Beneficiaries. From and after the corporation's receipt of such instructions and until the Trustee revokes such instructions by delivering written notice to the corporation, the corporation may rely upon such instructions. The Trustee may at any time revoke such instructions and by written notice to the corporation, direct it to make dividend payments to the Trustee.
2.03. If, in case of reorganization, merger, consolidation or other change in the Corporation, the Trustee shall receive stock in any reorganized, merged, consolidated, new or different corporation in exchange for the stock deposited or held hereunder, the Trustee shall hold any voting stock or securities if they constitute ten percent (10%) or more of the voting power of such new or different corporation, subject to the same rights and obligations as the stock deposited hereunder. Any non-voting securities or the voting securities, if they constitute less than ten percent (10%) of the outstanding voting power, the Trustee shall distribute such stock to the Beneficiaries as their respective interests appear.