HomeMy WebLinkAbout2230 2. Purciiase of ~ontracts and Paymenta of Premiums.
Upon receipt of premium nc~tices from the insurer or tne employer,
relati~cr to cai:tracts nalc. ~-~v t~~e trustee i~.~r4ui~c~er, ~?:1:~' L1~~QR
rectipt vy the trust~e fro*~ ta~ ~~~~;.lovcr of a contriv~:tio :
sufficient to va~~ slica c~r.~~it:~~s, ~:i~ tr~.~st~=~ shall ~.~ay t:ie same
pro:~~tly to t;~~~ insur~r. ht t-~e ~:irectien of the er'~i=lc~yer, aiid
upon recai~?t uy tii~ trustee fr~r. ~r.~~loler c~f a contrii,ution
sufficient ta pay the initial ~remiur~ on a contract to i~e issuec?
to tha tr.ustee 4nd nelci :iereund`!-, t:iE~ tr_ustee snall t~a~~ sucn
initial F}ren:it:;~. I:: t:l•~ evei.t ~:iat coiitri~utiotzs ~y ~:.e ~r,:~loyer
to ttie trustee snall ~s insuf ficient at any tir~e to ~ay all prer,i-
iums t:?en pay~..' in r_espect of all such contracts nelc anc; to ue
ac.;uirec~ :ier~under, tne trustea s.iall tak~ such steps to main ~ain
~uci~ c:os:truct~ ir, fcrce, acquire sueh ~~c?itional eontrac~s, and
co:~ti::;:e ~he ?~Ia.~, as the e~rploynr shall direct.
3. Vat~:ation of ruxiliary Func?. As of e~c:~_ ~i~r~iv~rsary
date, anc,, if r~~,uest~:: :~1 tz~.~ er.~~~loyer, as of th~ er.u of e4c.`~
calazidar ;uarter, ar,~ at suci~ et:~er tin:as as ~ay ne re~~uestec ~y
the employer and snecially arrar.qed :;~tv~•een t:~e trustee ana the
I en:ployer, the trustee shall d~terr:,ine t'~e net value of t:~e proper- -
~ t~~ ir_cluded in tne auxiliar_v f:.n~' at;:? re?~ort the sa~ie i;i caritinq
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~ to ti~e er::pZo~•er. Securities ar,d other ~roperty siiall Le taken into
~ ac~our.t at fair narY.et value ;~hic:! snall 1~e deterr,~in~ci or. suc:~ basis
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as is ~eter:nir.ec'. :~y t=~e trustee to ~e reasonable anc'. suff.iciint and
any suc~ ueten~~inat{ on £or all purposes of the pla~ sha21 b~ bind-
ir.R anc. cenc~u~ive on all intereste~ persons.
4. Investr:etit of Auxiliary Fur.ci. T;?e tr~istee 8:1311 have
full an~: complete ciscretionar;~ a~t:l~rit~; to in~?est r~ invest
~ ~iia auxiliary fun~?, without cis~inction h~tween i~rinci,~al and in-
~ ec•i;,e, Gnc: witt~out r~strictior: to ir~t~est:nents :o:nich ~~ay fror~ time
~ tc tir:e c~e authorizec: as leqal invest~^er.ts for trustces, in such
securities or ot2:er property, real or oerscna3, tanqi~~le or ~
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