Appropriation of payment by basic cardmember Clause Samples
The "Appropriation of payment by basic cardmember" clause defines the right of the primary cardholder to determine how their payments are allocated among various outstanding balances or charges on their account. In practice, this means that when the cardmember makes a payment, they can specify whether the funds should be applied to specific transactions, fees, or types of debt, such as purchases, cash advances, or interest. This clause ensures that the cardmember has control over the order in which their debts are settled, which can help them manage their finances more effectively and potentially minimize interest charges.
Appropriation of payment by basic cardmember. (a) Without prejudice to the other terms and conditions of this agreement, the basic cardmember hereby agrees and/or undertakes to procure that all payments required to be paid under this agreement from any source, will be made without any instruction to us as to the manner in which such payments are to be appropriated.
(b) We have the right, in our reasonable discretion, to appropriate all such payments in the manner we deem fit, notwithstanding any instructions given to us at the time of such payment.
(c) Without prejudice to our reasonable right of appropriation, we may appropriate all such payments firstly in reduction or extinction of such part of the current balance incurred by the basic cardmember and secondly in reduction of such part of the current balance incurred by the supplementary cardmember, such secondary appropriation to be in such order and in such manner as we deem fit in our absolute discretion.