Common use of Cancellation before Maturity Date Clause in Contracts

Cancellation before Maturity Date. The Depositor may not cancel the deposit before the Maturity Date, except that SMBC Trust Bank determines cancellation before the Maturity Date is unavoidable. In the event that SMBC Trust Bank determines cancellation before the Maturity Date is unavoidable, SMBC Trust Bank shall accept cancellations for only the full amount of the deposit, calculate interest due for the period from the date of deposit until the day before the cancellation date based on 365 days a year at the interest rate prescribed by SMBC Trust Bank. Upon cancellation of the deposit before the Maturity Date, the Depositor shall pay cancellation expenses (or damages) to SMBC Trust Bank caused by cancellation of the deposit before the Maturity Date. The cancellation expenses (or damages) mean the expenses which would not be incurred by SMBC Trust Bank without cancellation before the Maturity Date. SMBC Trust Bank may, without any prior notice to the Depositor, deduct cancellation expenses (or damages) to be paid by the Depositor to SMBC Trust Bank from the amount of the principal and interest of the deposit.