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asset-lock.md

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Asset Lock

The Foundation shall not transfer any of its assets other than for full consideration.

Provided the conditions in the Articles are satisfied, this Article shall not apply to:

  1. the transfer of assets to any specified asset-locked body, or (with the consent of the Regulator) to any other asset-locked body; and

  2. the transfer of assets made for the benefit of the community other than by way of a transfer of assets into an asset-locked body.

The conditions are that the transfer of assets must comply with any restrictions on the transfer of assets for less than full consideration which may be set out elsewhere in the Articles of the Foundation.

If:

  1. the Foundation is wound up under the Insolvency Act; and

  2. all its liabilities have been satisfied, any residual assets shall be given or transferred to the asset-locked body specified below.

For the purposes of this Article, the Guardians (with the consent of the Regulator) shall nominate an asset-locked body, whose restrictions on distributions are no less onerous than those set out in the Foundation’s Articles, as the recipient of the Foundation’s assets under the Articles.