Common use of Acceptance of Accounts Clause in Contracts

Acceptance of Accounts. Correspondent shall be responsible for approving and accepting each Customer and Account. Correspondent will not approve any Account unless all information and due diligence required by Section IV.1 has been received and performed by Correspondent. Each Account accepted and approved by Correspondent and opened with NFS shall be subject to NFS’ acceptance. An account shall be deemed accepted by NFS if NFS has not advised Correspondent of NFS’ intention not to accept the account within five (5) days of establishment of the account. NFS reserves the right to reject, using reasonable business judgment, any Customer or any Account and to terminate any Account submitted by Correspondent or any Account previously accepted by NFS (it being understood that the exercise of such reasonable business judgment shall be solely for the purpose of ensuring NFS’ compliance with applicable laws, rules and regulations or for the purpose of mitigating NFS’ own risk exposure). NFS shall be under no obligation to accept any Account as to which any documentation or information requested by NFS pursuant to Section IV.2 or required to be submitted to NFS or maintained by Correspondent pursuant to Section IV.1 is incomplete. No action taken by NFS or any of its employees, including, without being limited to, clearing a trade in any Account, shall be deemed to be or shall constitute acceptance of such Account.

Acceptance of Accounts. Correspondent shall be responsible for approving and accepting each Customer and Account. Correspondent will not approve any Account unless all information and due diligence required by Section IV.1 has been received and performed by Correspondent. Each Account accepted and approved by Correspondent and opened with NFS shall be subject to NFS’ acceptance. An account Account shall be deemed accepted by NFS if NFS has not advised Correspondent of NFS’ intention not to accept the account Account within five (5) days of establishment of the accountAccount. NFS reserves the right to rejectright, using reasonable business judgmentReasonable Business Judgment, to reject any Customer or any Account and to terminate any Account submitted by Correspondent or any Account previously accepted by NFS (it being understood that the exercise of such reasonable business judgment shall be solely for the purpose of ensuring NFS’ compliance with applicable laws, rules and regulations or for the purpose of mitigating NFS’ own risk exposure). NFS shall be under no obligation to accept any Account as to which any documentation or information requested by NFS pursuant to Section IV.2 or required to be submitted to NFS or maintained by Correspondent pursuant to Section IV.1 IV.A is incomplete. No action taken by NFS or any of its employees, including, without being limited to, clearing a trade in any Account, shall be deemed to be or shall constitute acceptance of such Account.