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

Right of Setoff and Security Interest. You understand and agree that we have a right of setoff against your account. This means that if you owe us money on any debt or any other obligation, whether then due or not, we may take all or any part of the money in your account, even certificates or deposits that have not matured, to pay us off. You also give us a security interest in your accounts to secure your obligations to us, now and in the future. We may exercise our right of setoff or foreclosure on our security interest at any time for any lawful reason. We will notify you when that occurs. Finally, you agree that we will have no liability to you if exercising our right of setoff or foreclosing on our security interest causes items presented on your account to be refused for insufficient funds. If we are served with any legal process which tries to attach or in some way prevent you from freely using your funds, you give us the right to hold any portion of the funds during any time necessary to finally determine who has the legal right to the funds and pay any balance in the account to the proper person or authority. All legal actions against your account are subject to our right of setoff and security interest. You agree to pay us our fees for processing any garnishment or for other similar process issued against your account.