Common use of Right of Setoff and Security Interest Clause in Contracts

Right of Setoff and Security Interest. We have the right to apply funds in your accounts to any indebtedness you owe us. This is known as setoff or offset. You consent to and grant us a security interest in your accounts. You agree that we are authorized to exercise our right of setoff and/or any security interest we have in your account against funds credited to your account after your death and that we have these rights even if another person has rights to the account after your death. You agree that all accounts in your name alone and all joint accounts with other persons may, at our option, and without notice to you, be used to pay any and all indebtedness, including but not limited to loans, loan installments, overdrawn account(s), fees, expenses, and/or any other indebtedness owed us by you or any joint owner, whether the indebtedness is direct or indirect, absolute or contingent, due or to become due, existing now or occurring later, and whether the indebtedness is several and the account is joint, or the debt is joint and the account is several. Indebtedness also includes any amounts for which we become liable to any governmental agency or department or any company as a result of recurring payments credited to any of your accounts after the death, legal incapacity or other termination of entitlement of the intended recipient of such amounts. We are authorized at any time to charge any such indebtedness against your account, without regard to the origin of deposits to the account or beneficial entitlement to monies deposited, unless prohibited by law. If you are indebted to us, we may use funds from all accounts, except those protected by state or federal law, to satisfy our right to setoff. When we setoff your indebtedness, we reduce the funds in your account by the amount of the indebtedness. This may cause your account to be overdrawn and incur a fee. We are not required to give you notice before we exercise our right to setoff and reduce the funds in your account. Our right to setoff may also be granted under an outside agreement, including but not limited to a security instrument, note, loan agreement, personal guarantee, or a certificate of deposit. Any right to setoff granted under an outside agreement may be exercised in addition to our rights of setoff under this Agreement. Any Item payable to you, even if you intend that such Item be assigned to another party or paid at a later date, may be negotiated and applied to any indebtedness you have regardless of your intent. We may redeem a certificate of deposit as setoff regardless of the maturity date. If your account is an unmatured time account (or CD), then we may deduct an early withdrawal penalty. This may be due as a result of our having exercised setoff. The terms of this Agreement should in no way be construed to limit and/or modify our right to setoff as determined by law. Any Legal process or other levy against your account is subject to our right of setoff and any security interest we have in the account. If a bankruptcy or similar proceeding is filed by or against any account owner, we may place a hold on part or all of the balance while we seek to have the automatic stay lifted. If we receive any Legal process related to or seeking funds or information pertaining to your account, you acknowledge and agree that you are solely responsible for appearing before the authority that issued or otherwise has jurisdiction over such Legal process and invoking any exception, exemption, objection, defense, or other protection you believe may be available to you and that we are not required to make a determination as to the availability or viability of any such exception, exemption, objection, defense, or other protection.

Right of Setoff and Security Interest. We If your Passport Account balance becomes negative, or if your Passport Account has insufficient funds to cover the Transfer Service fees, any refunds, Chargebacks, Processing Fees, and other amounts payable by you to us pursuant to any agreement you have with us for any services involving the Passport Account, in addition to any other rights we have as set forth in this document, we can set off any unpaid balance of such amounts against the funds in your External Accounts. YOU HEREBY EXPRESSLY AUTHORIZE US TO ACH DEBIT YOUR EXTERNAL ACCOUNT FOR ANY UNPAID AMOUNT YOU OWE US WITHOUT ANY PRIOR NOTIFICATION. Moreover, we have the right to apply set-off any liability, direct or contingent, past, present or future that you owe against any External Account. We may take or set off funds in any or all of your accounts to any indebtedness Accounts with us for direct, indirect and acquired obligations that you owe us, to the extent permitted by law. This is known as setoff or offset. You consent to and grant us a security interest We may use funds held in your accounts. You agree that we are authorized Accounts to exercise our right of setoff and/or any security interest we have in repay your account against funds credited obligations to your account after your death and that we have these rights even if another person has rights to the account after your death. You agree that all accounts in your name alone and all joint accounts with other persons may, at our option, and without notice to you, be used to pay any and all indebtednessus, including but not limited to loans, loan installments, overdrawn account(s), fees, expenses, and/or any other indebtedness owed us by obligations on which you or any joint owner, whether the indebtedness is direct or indirect, absolute or contingent, due or to become due, existing now or occurring later, are secondarily liable and whether the indebtedness is several and the account is joint, or the debt is joint and the account is several. Indebtedness also includes any amounts for which we become liable to any governmental agency or department or any company as a result of recurring payments credited to any of your accounts Accounts after the dissolution, death, legal incapacity or other termination of entitlement of the intended recipient of such amounts. We are authorized at any time to charge any such indebtedness against your account, without regard to the origin of deposits to the account or beneficial entitlement to monies deposited, unless prohibited by lawfunds. If you are indebted to usa sole proprietor, we may use funds from all accounts, except those protected by state charge any of your Consumer or federal law, Commercial Accounts. If the law imposes conditions or limits on our ability to satisfy our right to setoff. When we setoff your indebtedness, we reduce the take or set off funds in your account Account, to the extent that you may do so by contract, you waive those conditions and limits and you authorize us to apply funds in any or all of your Accounts with us to obligations that you owe us. Some government payments may be protected from attachment, levy or other legal process under federal or state law. If such protections may apply, to the amount of extent that you may do so by contract, you waive these protections and agree that we may take or set off funds, including federal and state benefit payments, from your Accounts to pay any obligations that you owe us. We may take or set off funds from your Account before we pay checks or other items drawn on the indebtedness. This may cause your account to be overdrawn and incur a feeAccount. We are not required liable to give you notice before we exercise for dishonoring items where our right to setoff and reduce the action results in insufficient funds in your accountAccount to pay your checks and other items. Our right to setoff may also be granted under an outside agreement, including but not limited to a security instrument, note, loan agreement, personal guarantee, or a certificate of deposit. Any right to setoff granted under an outside agreement may be exercised rights are in addition to other rights we have under this Agreement to take or charge funds in your Account for obligations you owe us. This section does not limit or reduce our rights of setoff under this Agreementapplicable law to charge or set off funds in your accounts with us for direct, indirect and acquired obligations you owe us. Any Item payable to youFurther, even if you intend that such Item be assigned to another party or paid at grant us a later date, may be negotiated lien on and applied to any indebtedness you have regardless security interest in the funds on deposit in your Passport Account as security for all of your intent. We may redeem a certificate of deposit as setoff regardless of the maturity date. If your account is an unmatured time account (liabilities and obligations to us, now or CD), then we may deduct an early withdrawal penalty. This may be due as a result of our having exercised setoff. The terms of this Agreement should in no way be construed to limit and/or modify our right to setoff as determined by law. Any Legal process or other levy against your account is subject to our right of setoff and any security interest we have in the account. If a bankruptcy or similar proceeding is filed by or against any account owner, we may place a hold on part or all of the balance while we seek to have the automatic stay lifted. If we receive any Legal process related to or seeking funds or information pertaining to your account, you acknowledge and agree that you are solely responsible for appearing before the authority that issued or otherwise has jurisdiction over such Legal process and invoking any exception, exemption, objection, defense, or other protection you believe may be available to you and that we are not required to make a determination as to the availability or viability of any such exception, exemption, objection, defense, or other protectionfuture.

Right of Setoff and Security Interest. We have Subject to applicable law, we may exercise our right of setoff against any and all of your Accounts without notice, for any liability or debt of any of you, then due and owing to us, whether joint or individual, whether direct or contingent, whether now or hereafter existing, and whether arising from overdrafts, endorsements, guarantees, loans, account service charges, overdraft charges, attachments, garnishments, levies, attorneys' fees or other obligations. Each joint account holder authorizes us to exercise our right of setoff against any and all Accounts of each account holder. Some government payments (such as Social Security, Supplemental Security Income, Veterans and other federal or state benefits) may be protected from attachment, levy or other legal process under federal or state law. If such protections would otherwise apply to our right of setoff or any other deductions we make for amounts you owe us, to the right extent that you may do so by contract, you waive these protections and agree that we may setoff against and otherwise use these funds to apply funds in your accounts to any indebtedness pay amounts you owe us. This is known as setoff or offset. You consent to and In addition, you grant us a security interest in your accountsAccount so that the balance in the Account is collateral for any current or future obligation you owe us (whether as a borrower, a guarantor or otherwise). You agree If we incur any Costs in responding to any attachment, garnishment, or other levy that is not otherwise reimbursed, we are authorized may charge such Costs to exercise you or your Account without prior notice to you. However, our right of setoff and/or any and security interest we have in your account against funds credited may not apply to your account after your death and that we have these Account if: (a) it is an IRA or a tax-deferred ▇▇▇▇▇ Retirement Account (but this does not affect our rights even if another person has rights to the account after your death. You agree that all accounts in your name alone and all joint accounts with other persons may, at our option, and without notice to you, be used to pay under any and all indebtedness, including but not limited to loans, loan installments, overdrawn account(sconsensual security interest), fees, expenses, and/or any other indebtedness owed us by you or any joint owner, whether the indebtedness is direct or indirect, absolute or contingent, due or to become due, existing now or occurring later, and whether the indebtedness is several and the account is joint, or ; (b) the debt is joint and the account is several. Indebtedness also includes any amounts created by a consumer credit transaction under a credit card plan; or (c) our records demonstrate to our satisfaction that your right of withdrawal arises only in a representative capacity (for which we become liable to any governmental agency or department or any company example, as a result of recurring payments credited to any of your accounts after the deathan authorized signer, legal incapacity or other termination of entitlement of the intended recipient of such amounts. We are authorized at any time to charge any such indebtedness against your account, without regard to the origin of deposits to the account or beneficial entitlement to monies deposited, unless prohibited by law. If you are indebted to us, we may use funds from all accounts, except those protected by state or federal law, to satisfy our right to setoff. When we setoff your indebtedness, we reduce the funds in your account by the amount of the indebtedness. This may cause your account to be overdrawn and incur a fee. We are not required to give you notice before we exercise our right to setoff and reduce the funds in your account. Our right to setoff may also be granted under an outside agreement, including but not limited to a security instrument, note, loan agreement, personal guaranteeattorney-in-fact, or a certificate of depositfiduciary). Any right to setoff granted under an outside agreement may be exercised in addition to our rights of setoff under this Agreement. Any Item payable to you, even if you intend that such Item be assigned to another party or paid at a later date, may be negotiated and applied to any indebtedness you have regardless of your intent. We may redeem a certificate of deposit as setoff regardless of the maturity date. If your account is an unmatured time account (or CD), then we may deduct an early withdrawal penalty. This may be due as a result of our having exercised setoff. The terms of this Agreement should in no way be construed to limit and/or modify our right to setoff as determined by law. Any Legal process garnishment or other levy against your account Account is subject to our right of setoff and any security interest we have in the account. If a bankruptcy or similar proceeding is filed by or against any account owner, we may place a hold on part or all of the balance while we seek to have the automatic stay lifted. If we receive any Legal process related to or seeking funds or information pertaining to your account, you acknowledge and agree that you are solely responsible for appearing before the authority that issued or otherwise has jurisdiction over such Legal process and invoking any exception, exemption, objection, defense, or other protection you believe may be available to you and that we are not required to make a determination as to the availability or viability of any such exception, exemption, objection, defense, or other protectioninterest.

Right of Setoff and Security Interest. We have the right to apply funds in your accounts to any indebtedness you owe us. This is known as setoff or offset. You consent to and grant us a security interest in your accounts. You agree that we are authorized to exercise our right of setoff and/or any security interest we have in your account against funds credited to your account after your death and that we have these rights even if another person has rights to the account after your death. You agree that all accounts in your name alone and all joint accounts with other persons may, at our option, and without notice to you, be used to pay any and all indebtedness, including but not limited to loans, loan installments, overdrawn account(s), fees, expenses, and/or any other indebtedness owed us by you or any joint owner, whether the indebtedness is direct or indirect, absolute or contingent, due or to become due, existing now or occurring later, and whether the indebtedness is several and the account is joint, or the debt is joint and the account is several. Indebtedness also includes any amounts for which we become liable to any governmental agency or department or any company as a result of recurring payments credited to any of your accounts after the death, legal incapacity or other termination of entitlement of the intended recipient of such amounts. We are authorized at any time to charge any such indebtedness against your account, without regard to the origin of deposits to the account or beneficial entitlement to monies deposited, unless prohibited by law. If you are indebted to us, we may use funds from all accounts, except those protected by state or federal law, to satisfy our right to setoff. When we setoff your indebtedness, we reduce the funds in your account by the amount of the indebtedness. This may cause your account to be overdrawn and incur a fee. We are not required to give you notice before we exercise our right to setoff and reduce the funds in your account. Our right to setoff may also be granted under an outside agreement, including but not limited to a security instrument, note, loan agreement, personal guarantee, or a certificate of deposit. Any right to setoff granted under an outside agreement may be exercised in addition to our rights of setoff under this Agreement. Any Item payable to you, even if you intend that such Item be assigned to another party or paid at a later date, may be negotiated and applied to any indebtedness you have regardless of your intent. We may redeem a certificate of deposit as setoff regardless of the maturity date. If your account is an unmatured time account (or CD), then we may deduct an early withdrawal penalty. This may be due as a result of our having exercised setoff. The terms of this Agreement should in no way be construed to limit and/or modify our right to setoff as determined by law. Any Legal process or other levy against your account is subject to our right of setoff and any security interest we have in the account. If a bankruptcy or similar proceeding is filed by or against any account owner, we may place a hold on part or all of the balance while we seek to have the automatic stay lifted. If we receive any Legal process related to or seeking funds or information pertaining to your account, you acknowledge and agree that you are solely responsible for appearing before the authority that issued or otherwise has jurisdiction over such Legal process and invoking any exception, exemption, objection, defense, or other protection you believe may be available to you and that we are not required to make a determination as to the availability or viability of any such exception, exemption, objection, defense, or other protection.