Common use of Exercise of Chargeback Clause in Contracts

Exercise of Chargeback. If Bank exercises its right of chargeback in accordance with this Agreement, Bank may set-off amounts charged back against any sums due any Retailer under this Agreement or Bank may demand payment from any Retailer for all or any portion of the amount to be charged back. Any Account which is charged back to Retailers shall cease to be an "Account" for all purposes of this Agreement after Bank receives full payment from Retailers in respect thereof. If all or any portion of the face amount of any Charge Slip is charged back to Retailers hereunder, Bank shall simultaneously be deemed to have assigned to Retailers all right to payments for such Charge Slip or portion thereof. Any such assignment shall be without recourse, except that Bank shall be deemed to have represented and warranted that such right of payment is being assigned free and clear of any lien, encumbrance or claim of title arising by, through or under Bank. ARTICLE VIII WARRANTIES