What effect would the insolvency of the Custodian have on the Trust’s allocated account and the Trust’s unallocated account?
The Trust has full ownership rights to the specific bars of gold allocated to the Trust’s allocated account. In the case of the insolvency of the Custodian, a liquidator may seek to freeze access to the gold held in all of the accounts maintained by the Custodian, including the Trust’s allocated account. Although the Trust would own the properly allocated gold bars, the Trust could incur expenses in connection with asserting control over such gold bars and the actions of the liquidator could delay creations and redemptions of Baskets. Gold which is transferred to or from the Trust in connection with the creation or redemption of Baskets will be held for a time in the Trust’s unallocated account and, previously or subsequently, in the unallocated account of the purchasing or redeeming Authorized Participant. During those times, the Trust and the Authorized Participant, as the case may be, will have no proprietary rights to any specific bars of gold held by the Custodian and will each be
