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Debtors retain the right to sell the securities purchased from <br />Shearson Lehman Brothers and apply the proceeds realized to the <br />aggregate unpaid repurchase price (and any other amounts owed by <br />the Shearson Lehman Brothers) owed under the agreement. <br />,ggg Repurchase Agreement, Exhibit A, at i 11(d)(1). <br />12. The Custody Agreement provides the mechanism for <br />the designated custodial bank to transfer cash to the seller <br />against the transfer of securities to the buyer and the mechanism <br />by which cash and securities are segregated appropriately. The <br />Custody Agreement's major provisions include the following: <br />a. The Custody Agreement, as contemplated, will <br />be between Shearson Lehman as seller, CF6Z Steel and the <br />Subsidiaries as buyers, and Security Pacific Bank as custodian. <br />b. The Custody Agreement establishes the basis <br />by which the custodian will transfer and segregates securities <br />for cash in all of the transactions contemplated by the <br />Repurchase Agreement. ,ggg Custody Agreement, Exhibit B, at q 4. <br />Basically, the custodian must make the appropriate book entry to <br />ascertain that securities are properly credited to the account of <br />the Debtors upon the payment of Debtors for such securities. All <br />securities are held in negotiable form and may be transferred to <br />the name of the Debtors upon the notification to the Custodian by <br />the Debtors of any default by Shearson Lehman Brothers. <br />eP Custody Agreement, Exhibit B, at i 2(d). The custodian <br />segregates the securities oP the Debtors from those of Shearson <br />6 <br />