Common use of Default by Member Clause in Contracts

Default by Member. If the Bank receives from Depositor written notice (“Default Notice”) of Member’s failure to pay when due, perform under the terms of any agreement between Member and Depositor secured by the Collateral, or perform under the terms of the Custodial Agreement and Confirm (“Default”), then and notwithstanding any defense, claim, or objection that Member may have to the contrary, the Bank shall act as the exclusive agent of the Depositor for the purpose of delivering such part or all of the Collateral to the Depositor or its nominee as directed in writing by the Depositor. Depositor shall be entitled to retain only the notional value of the Collateral, plus any accumulated interest earned up to the date the Bank receives the Default Notice.