Common use of Payment of Checks, Drafts and Orders Clause in Contracts

Payment of Checks, Drafts and Orders. Subject to Section 2.5, the Agent Bank agrees to pay all properly drawn checks, drafts and withdrawal orders of depositors of the Failed Bank presented for payment, whether drawn on the check or draft forms provided by the Failed Bank or by the Agent Bank, to the extent that the Transferred Deposit balances to the credit of the respective makers or drawers transferred to the Agent Bank under this Agreement are sufficient to permit the payment thereof, and in all other respects to discharge, in the usual course of conducting a banking business, the duties and obligations of the Failed Bank with respect to the Transferred Deposit balances due and owing to the depositors of the Failed Bank transferred to the Agent Bank under this Agreement.