Segregation Provisions Clause Samples
Segregation provisions are contractual clauses that require certain assets, funds, or information to be kept separate from other assets or resources. In practice, these provisions might mandate that client funds are held in distinct accounts apart from a company's own operating funds, or that confidential information is stored separately to prevent unauthorized access. The core function of segregation provisions is to protect the interests of specific parties by minimizing the risk of commingling, misuse, or loss, thereby ensuring transparency and safeguarding against potential disputes or insolvency issues.
Segregation Provisions. (a) Each Trust established hereunder is a legal entity separate and apart from each other Trust established by the Depositor under this Agreement or otherwise.
(b) Pursuant to Section 2.01 hereof, each Trust will issue only one Series of securities, unambiguously identified with the Underlying Securities unambiguously identified on a series-by-series basis in the Basic Documents, and the Underlying Securities will be held separate and apart from the Underlying Securities relating to any other Series and separate and apart from any property backing any other securities caused to be issued by the Depositor.
(c) Any swap transaction entered into by a Trust for a Series will be separate from any other swap transaction for any other Series.
(d) A first priority ownership or, pursuant to Section 10.07 hereof, security interest shall be created and perfected over all of the Underlying Securities with respect to each Series and it shall be enforceable notwithstanding the related Trust's insolvency.
(e) The certificateholders of each Series shall have recourse solely to the Underlying Securities deposited in the Trust issuing such Series, and not to any Underlying Securities or other property deposited in any other Trust. If the foregoing provisions of this paragraph 10.13(e) are unenforceable for any reason, or for any reason notwithstanding such provisions any certificateholder with respect to a Series issued by a Trust is deemed to have an interest in the assets of a different Trust (the "Non-Issuing Trust") such interest shall be subordinate to the interest of the holders of Certificates issued by the Non-Issuing Trust. Such Certificateholders are deemed to agree that the preceding sentence constitutes a subordination agreement for purposes of Section 510(a) of the Bankruptcy Code. Creditors of the Depositor, and claimants with respect to trusts established pursuant to other instruments, shall have no recourse with respect to the assets of any Trust established hereunder.
(f) Except as provided in Section 10.02(b) hereof, only the Trustee shall be entitled to exercise remedies on behalf of the certificateholders in accordance with the related Series Supplement.
(g) Any difference between the amount realized from the Underlying Securities upon enforcement of the Underlying Securities and the amount that otherwise would have been due pursuant to the related Series Supplement will not constitute a claim against the related Trust any other Trust, the Depositor, the...
Segregation Provisions. 72 STANDARD TERMS FOR TRUST AGREEMENTS, dated as of [ ], among SELECT ASSET INC., a Delaware corporation, as Depositor, and [________], a national banking association, as Trustee.