Redemption Policy Clause Samples
A redemption policy clause outlines the terms and conditions under which a customer or investor can redeem, return, or exchange products, services, or financial instruments. Typically, it specifies eligibility criteria, timeframes for redemption, and any associated fees or restrictions; for example, it may state that gift cards can be redeemed for merchandise within a year of purchase or that shares in a fund can be redeemed at net asset value on specific dates. The core function of this clause is to provide clear guidelines for redemption, thereby managing expectations and reducing disputes between parties.
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Redemption Policy. Members may submit a request for withdrawal as a Member of the Company or request a partial redemption of their Units at the Repurchase Price (“Withdrawal Request”). The Repurchase Price per Unit is the current NAV (as determined under Section 4.2) divided by the total number of outstanding Units. The requesting Member may receive the full amount requested provided that the following conditions have been met: (a) the Member has been a Member of the Company for a period of at least twelve (12) months; and (b) the Member provides the Company with a Withdrawal Request at least ninety (90) days prior to the end of a the calendar quarter for the Withdrawal Request; (c) all current Company expenses have been paid, including all distributions of the Preferred Return pursuant to Section 10.1 and the Asset Management Fee pursuant to Section 4.1 for such calendar quarter; and (d) adequate reserves have been established for anticipated Company operating costs and other expenses and advances to protect and preserve the Company’s investments in Mortgage Loans; (e) adequate provision has been made for the payment of future monthly cash distributions of the Preferred Return, and (f) a determination by the Managing Member, in its sole discretion, that the Company has sufficient Distribution Cash and is the appropriate financial condition to honor such Withdrawal Request. Notwithstanding the foregoing, the Managing Member may, in its sole discretion, waive such withdrawal requirements if a Member is experiencing undue hardship. Withdrawal requests will be paid, subject to the provisions below, within 20 days after the end of the calendar quarter, at the price per Unit set at the end of the quarter. The Company is not required to liquidate any Properties if at any time the Company does not have sufficient Distributable Cash to satisfy any Withdrawal Requests. In such circumstance, the Company will, at the Managing Member’s sole discretion, distribute that portion of the Distributable Cash available to requesting Members pro rata based upon the relative amounts being withdrawn as set forth in the Withdrawal Requests. Notwithstanding the foregoing, the Managing Member reserves the right to utilize Distributable Cash to liquidate the capital accounts of deceased Members or ERISA plan investors in whole or in part, before satisfying outstanding Withdrawal Requests from any other Members. The Managing Member also reserves the right, at any time, to liquidate the capital accounts...
Redemption Policy. The Company shall have the right to purchase policies of life insurance on the lives of any or all of the Members (the "Redemption Policies") and such policies shall be listed on Schedule A to this Agreement and shall be subject to the terms and conditions of this Agreement. If the Company elects to purchase life insurance or additional life insurance after the initial purchase of life insurance, each Member agrees to cooperate in the acquisition of such insurance by performing all reasonable acts necessary, including undergoing a medical examination. The Company shall pay the premiums on all Redemption Policies purchased and listed on Schedule A of this Agreement. The Members may request written proof that payment of premiums has been properly made. If a premium is not paid by the Company within fifteen (15) days from its due date, the Members, or any of them, shall have the right to pay such unpaid premium and shall be reimbursed by the Company. If reimbursement is not made promptly, any such payment of premium by a Member shall be considered a loan to the Company and shall bear interest from the date of premium payment at the rate of eighteen percent (18%) per annum or at the highest rate permitted by applicable law, whichever is higher. Each Redemption Policy set forth on Schedule A shall designate the Company as owner of said policy and shall name the Company as direct beneficiary under the policy. At the closing of any purchase and sale of all sales of the Selling Member pursuant to Section 2 of this Agreement, the Company shall assign to the Selling Member any Redemption Policy covering the Selling Member's life, in consideration for a sum, payable in cash or certified funds, equal to the cash surrender value, if any, of such policy and the assumption by the Selling Member of all liability for payment of future premiums.