Common use of Advances by the Custodian Clause in Contracts

Advances by the Custodian. It is hereby expressly acknowledged and agreed by the parties that the Custodian shall not be obligated to advance any margin or other credit to the Customer and the Customer agrees that it shall not instruct the Custodian to advance any margin or credit to, for, or on its behalf; provided, however, that Custodian may advance payment to the Collateral Accounts for any purpose (including, but not limited to, failed securities settlements, foreign exchange contracts, assumed settlements or short-term account overdrafts). Custodian agrees that it shall have no lien, encumbrance, claim or right of set-off against the Collateral Accounts or the Collateral carried therein and hereby waives its right (by contract or statute) to any such lien, encumbrance, claim or right of set-off except, that in connection with any charges/debits to the Collateral Accounts for short-term account overdrafts resulting from failed settlement of entitlement orders initiated by the Customer or the Agent, Custodian shall have a lien, encumbrance, claim and right of set-off against the Collateral Account and the Collateral carried therein to the extent of the amount of such short-term account overdrafts and such lien, encumbrance, claim and right of set-off shall be senior to and have priority over any right or claim of the Agent therein until such time as the Customer has reimbursed Custodian for such amounts or such overdrafts.

Advances by the Custodian. It is hereby expressly acknowledged and agreed by the parties that the Custodian shall not be obligated to advance any margin or other credit to the Customer and the Customer agrees that it shall not instruct the Custodian to advance any margin or credit to, for, or on its behalf; provided, however, that Custodian may advance payment to the Collateral Accounts Account for any purpose (including, but not limited to, failed securities settlements, foreign exchange contracts, assumed settlements or short-term account overdrafts). Custodian agrees that it shall have no lien, encumbrance, claim or right of set-off against the Collateral Accounts Account or the Collateral carried therein and hereby waives its right (by contract or statute) to any such lien, encumbrance, claim or right of set-off except, that in connection with any charges/debits to the Collateral Accounts Account for short-term account overdrafts resulting from failed settlement of entitlement orders initiated by the Customer or the Agent, Custodian shall have a lien, encumbrance, claim and right of set-off against the Collateral Account and the Collateral carried therein to the extent of the amount of such short-term account overdrafts and such lien, encumbrance, claim and right of set-off shall be senior to and have priority over any right or claim of the Agent therein until such time as the Customer has reimbursed Custodian for such amounts or such overdrafts.