De-SPAC Clause: Trust Account Representations

Special purpose acquisition companies (SPAC) that raise funds through an initial public offering must hold those funds in a trust account. SPACs have no business operations, but the proceeds in the trust account are used for stockholder redemptions and funding the business combination transaction. Add this trust account representation to the SPAC representations and warranties to assure the target company there are no unauthorized withdrawals or misuse of trust funds.   

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