Asset Custody Services definition
Asset Custody Services. The Custodian Bank opens an escrow account in the name of the Scheme for the Entrusted Assets and opens a securities account or other specific account for specific use by the Scheme for Capital Securities. The Company will deposit the Entrusted Assets in the escrow account, and the Custodian Bank shall provide asset custody services to the Company and Capital Securities in respect of the Entrusted Assets, perform the obligation of supervising the investment and arrange payment in accordance with the terms and conditions under the Single Asset Management Contract. Distribution of Returns: If the balance of bond interests, bonus, dividend, securities dealing spread, interest on bank deposits and other legal income deriving from the same-day investment under the Scheme deducting legal expenses, being profit available for distribution, is positive, Capital Securities may fix such date as the income distribution date, and make a distribution within five business days after the income distribution date to the extent of the profit available for distribution on the income distribution date, in other words, in principle, upon confirmation by Capital Securities and the Custodian Bank, the profit available for distribution will be transferred to the Entrusted Assets on the next business day following the income distribution date. If the Entrusted Assets cannot be realized when the Scheme terminates, the Custodian Bank will transfer the then profit available for distribution into the capital account of the Company in the form of monetary funds at the instruction of Capital Securities. The settlement of the remaining assets with restricted liquidity will be deferred and made upon negotiation by the Company, Capital Securities and the Custodian Bank, and within ten business days from the date when they become realisable, such assets with restricted liquidity will be transferred into the capital account of the Company in the form of monetary funds. Early Warning and Stop-loss Mechanism: The early warning line of the Scheme is RMB0.9800. During the duration of the Scheme, if the unit net value of the Entrusted Assets at the end of the trading day (T day) reaches or falls below the warning line, Capital Securities will send an early warning to the Company by email on T+1 day, and will adjust the position from T+1 day by only selling or conducting redemption and related investment operations and no longer conducting purchase or application (subscription) and related investm...