Common use of Deposit Account Collateral Clause in Contracts

Deposit Account Collateral. Custodian shall promptly transfer into the related Deposit Account any and all cash in any currency received by it in respect of assets held in any Special Custody Account and any other cash otherwise credited to such Special Custody Account. Custodian shall also hold in each Deposit Account all Proceeds on any property credited to thereto. Customer acknowledges that, because of the Margin Rules and Other Regulations, there are negative consequences to Broker if it relies on Collateral credited to a Deposit Account, and that for purposes of determining Customer’s compliance with the margin and other collateral requirements of the Customer Agreement (and for the avoidance of doubt, the requirements of Section 4(a) hereof) no value will be given to Collateral credited to a Deposit Account.