Common use of Exposed Payments Clause in Contracts

Exposed Payments. 15.3.1 Upon termination of this Agreement Client shall pay to Meridian (or Meridian may retain), to hold in a non-segregated non-interest bearing account the amount of all Exposed Payments (the "Preference Reserve"). 15.3.2 Meridian may charge the Preference Reserve with the amount of any Exposed Payments that Meridian pays to the bankruptcy estate of the Account Debtor or Payor that made the Exposed Payment, on account of a claim asserted under Section 547 of the Bankruptcy Code. 15.3.3 Meridian shall refund to Client from time to time that balance of the Preference Reserve for which a claim under Section 547 of the Bankruptcy Code can no longer be asserted due to the passage of the statute of limitations, settlement with the bankruptcy estate of the Payor or otherwise.