Common use of Appropriation of Payment Right of Set Off Clause in Contracts

Appropriation of Payment Right of Set Off. (a) We shall be entitled in our reasonable discretion to apply and appropriate all payments received by us in such manner or order of priority as we may deem fit, notwithstanding any specific appropriation of such sums by you or any person making such payment. Without prejudice to the generality of the foregoing, we may apply payments received by us in the following order of priority:- (i) all unpaid interest and fees pursuant to any Citibank instalment loan programs; (ii) all unpaid principal pursuant to any Citibank instalment loan programs; (iii) all other unpaid interests, fees and charges; (iv) all unpaid principal pursuant to any Citibank balance transfer programs(the “Unpaid Balance Transfer Balance”), and all unpaid transactions effected by way of drawing CRCS cheques, or by using your Citibank ATM/Debit Card, via GIRO or all unpaid transactions effected from your CRCS account(each an “Unpaid Balance” and collectively, “Unpaid Balances”). (b) In respect of the Unpaid Balances referred to in sub-clause 16(a)(iv): (i) the Unpaid Balances with the highest applicable interest rate will be repaid in priority to the other Unpaid Balances; and (ii) where the interest rate applicable to any Unpaid Balance Transfer Balances is the same, payments received by us will reduce the balances transferred under the latest balance transfer program (after it has been reflected in your statement of account) first, notwithstanding that you may have Unpaid Balance Transfer Balances from earlier balance transfer programs. (c) We may also at any time and from time to time and without liability to you, combine or consolidate any one or more accounts which you may have with us and set-off or apply any monies standing to the credit of such account(s) towards the discharge of the CRCS outstanding balance or vice versa. Where such combination, consolidation and/or set-off requires the conversion of one currency into another, we shall be entitled to effect such conversion at such time and rate of exchange determined by us and all exchange risks and/or reasonably incurred losses, communication and other bank charges which may thereby be incurred shall be borne by you.