Common use of Note Exchange Clause in Contracts

Note Exchange. (1) If a Note has been exchanged with the bank as security for this loan, then under section 6 if amounts are required to be calculated, such Note may be utilized and is not required to be returned. (2) If in section 2 a Note exists that is to be offset against the debt, the borrower shall ensure that the rights to the Note are available to the bank immediately. (3) If the bank under Section 6 plans to assume the rights under a Note, under certain circumstances this will not be possible: 1. if the bank cannot locate the borrower 2. if the borrower is using the bank as point of payment on the Note 3. if there is some problem surrounding the Note 4. If there is any other reason why the Note can not be used (4) If under section 2 a Note has been issued, and calculation for return of funds has been made, and there is notice of other claimants to the Note, the bank shall stop such Note and process it.