- 79 - authority to act for, represent, bind or obligate * * * [LTD], any of its affiliates or any account managed or advised by * * * [LTD]." Paragraph 4 of the Agreement, however, provides detailed authority for INC to act on LTD’s behalf: * * * [INC] will invest such cash, securities and other properties comprising the assets of investment advisory clients of * * * * [LTD] as * * * [LTD] shall instruct, in such manner as * * * [LTD] shall instruct. In order to carry out such instructions, * * * [INC] will have the authority for and in the name of * * * [LTD]: (a) to purchase, sell and deal in * * * instruments or evidences of indebtedness by whomsoever issued * * *; (b) to purchase, hold, sell, transfer, exchange, mortgage, pledge and otherwise act to acquire and dispose of and exercise all rights, powers, privileges, and other incidents of ownership or possession with respect to securities held on behalf of * * * [LTD] or its clients, with the objective of the preservation, protection and increase in value thereof; (c) to purchase securities for investment and to make such representations to the seller of such securities, and to other persons, that * * * [INC] may deem proper in such circumstances, including the representation that such securities are purchased by * * * [LTD] or its clients for investment and not with a view to their sale or other disposition; (d) to lend any of the properties which are from time to time held by * * * [LTD] on behalf of its clients; and (e) to open, maintain, conduct and close accounts * * * with any broker, dealer or investment concern at which * * * [LTD] maintains an account on behalf of its clients with respect to the disposition and application of monies or securities of * * * [LTD] or its clients and from time to time held by such broker, dealer or investment concern. Thus, paragraph 8 and paragraph 4 contain seemingly inconsistent terms. As we interpret the Agreement, however, the specific vesting of authority in INC upon the issuance of instructions from LTD, pursuant to paragraph 4 of the Agreement, overrides the provisionPage: Previous 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 Next
Last modified: May 25, 2011