Example ContractsClausesno diversionVariants
No Diversion
No Diversion contract clause examples

Impossibility of Diversion of Trust Fund: Notwithstanding any provision herein to the contrary, no part of the corpus or the income of the Trust Fund shall ever be used for or diverted to purposes other than for the exclusive benefit of the Participants or their Beneficiaries or for the payment of expenses of the Plan. No part of the Trust Fund shall ever revert to the Employer.

General rule. Except as provided below and otherwise specifically permitted by law, it shall be impossible by operation of the Plan or of the Trust, by termination of either, by power of revocation or amendment, by the happening of any contingency, by collateral arrangement or by any other means, for any part of the corpus or income of any Trust Fund maintained pursuant to the Plan or any funds contributed thereto to be used for, or diverted to, purposes other than the exclusive benefit of Participants or their Beneficiaries.

15.6Exclusive Benefit. Subject to Sections 15.4 and 16.3, the Trust Fund shall be used and applied only in accordance with the provisions of the Plan to provide the benefits thereof, and no part of the corpus or income of Trust Fund shall be used for or diverted to purposes other than exclusively benefiting the Participants and their Beneficiaries and with respect to expenses of administration. Notwithstanding the preceding sentence, as provided in Section 16.3, the Employer reserves the right to recover any residual amounts as may remain in the Trust Fund after the satisfaction of all liabilities of the Plan.

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