Common use of Additional Reserve Clause in Contracts

Additional Reserve. Upon termination of this Agreement, Fattmerchant may require an additional reserve to cover possible indebtedness to Fattmerchant for Transactions initiated prior to termination. This Reserve Account will be maintained for a minimum of six (6) months from the termination date or until such time as Fattmerchant determines that the release of the funds to Sub-Merchant is prudent, in the best interest of Fattmerchant, commercially reasonable and Sub- Merchant’s account with Fattmerchant is fully resolved. Upon expiration of this period, any balance remaining in the Reserve Account will be paid to Sub-Merchant. Fattmerchant will inform Sub-Merchant in writing of any charges debited to the Reserve Account during this period.