Common use of Authorization for Direct Payments (ACH Debits) Clause in Contracts

Authorization for Direct Payments (ACH Debits). To effectuate any payment due under this Agreement, the Note or any other Financing Document, Borrower hereby authorizes Lender to initiate debit entries to any deposit account of Borrower maintained with Lender and to debit the same to such account. This authorization to initiate debit entries shall remain in full force and effect until Lender has received written notification of its termination in such time and in such manner as to afford Lender a reasonable opportunity to act on it. Borrower acknowledges (a) that such debit entries may cause an overdraft of any such account which may result in Lender's refusal to honor items drawn on any such account until adequate deposits are made to any such account; (b) that Lender is under no duty or obligation to initiate any debit entry for any purpose; and (c) that if a debit is not made because any such account does not have a sufficient available balance, or otherwise, the payments may be late or past due.

Authorization for Direct Payments (ACH Debits). To effectuate any payment scheduled payments due under this Agreement, the Note Agreement or under any other Financing DocumentLoan Documents, Borrower Company hereby authorizes the Lender to initiate debit entries to any deposit account of Borrower maintained with Lender the Designated Deposit Account and to debit the same to such account. This authorization to initiate debit entries shall remain in full force and effect until Lender has received written notification payment in full of its termination the Obligations under this Agreement. Company represents that the Company is and will be the owner of all funds in such time and in such manner as to afford Lender a reasonable opportunity to act on itthe Designated Deposit Account. Borrower acknowledges Borrowers acknowledge: (a) that such debit entries may cause an overdraft of any such account which may result in the Lender's ’s refusal to honor items drawn on any such account until adequate deposits are made to any such account; (b) that the Lender is under no duty or obligation to initiate any debit entry for any purpose; and (c) that if a debit is not made because any such the above-referenced account does not have a sufficient available balance, or otherwise, the payments payment may be late or past due.. Overland Storage, Inc. and Tandberg Data GmbH Credit Agreement

Authorization for Direct Payments (ACH Debits). To effectuate any payment scheduled payments due under this Agreement, the Line of Credit Note or under any other Financing DocumentLoan Documents, Borrower hereby authorizes Lender the Bank to initiate debit entries to any deposit account of Borrower maintained with Lender the Designated Deposit Account and to debit the same to such account. This authorization to initiate debit entries shall remain in full force and effect until Lender has received written notification payment in full of its termination the Liabilities under the Credit Agreement. Xxxxxxxx represents that Xxxxxxxx is and will be the owner of all funds in such time and in such manner as to afford Lender a reasonable opportunity to act on itthe Designated Deposit Account. Borrower acknowledges acknowledges: (a1) that such debit entries may cause an overdraft of any such account which may result in Lender's the Bank’s refusal to honor items drawn on any such account until adequate deposits are made to any such account; (b2) that Lender the Bank is under no duty or obligation to initiate any debit entry for any purpose; and (c3) that if a debit is not made because any such the above-referenced account does not have a sufficient available balance, or otherwise, the payments payment may be late or past due.

Authorization for Direct Payments (ACH Debits). To effectuate any payment due under this Agreement, the Note or any other Financing Document, Borrower hereby authorizes Lender to initiate debit entries to any deposit account of Borrower maintained with Lender and to debit the same to such account. This authorization to initiate debit entries shall remain in full force and effect until Lender has received written notification of its termination in such time and in such manner as to afford Lender a reasonable opportunity to act on it. Borrower acknowledges (a) that such debit entries may cause an overdraft of any such account which may result in Lender's ’s refusal to honor items drawn on any such account until adequate deposits are made to any such account; (b) that Lender is under no duty or obligation to initiate any debit entry for any purpose; and (c) that if a debit is not made because any such account does not have a sufficient available balance, or otherwise, the payments may be late or past due.

Authorization for Direct Payments (ACH Debits). To effectuate any payment due under this Agreement, the Note Agreement or under any other Financing DocumentLoan Agreement, Borrower hereby authorizes Lender to initiate debit entries to any deposit account of Borrower maintained with Lender Borrower’s Designated Account and to debit the same to such account. This authorization to initiate debit entries shall remain in full force and effect until Lender has received written notification of its termination in such time and in such manner as to afford Lender a reasonable opportunity to act on it. Borrower acknowledges acknowledges: (a1) that such debit entries may cause an overdraft of any such account which may result in Lender's Bank’s refusal to honor items drawn on any such account until adequate deposits are made to any such account; (b2) that Lender Bank is under no duty or obligation to initiate any debit entry for any purpose; and (c3) that if a debit is not made because any such the above-referenced account does not have a sufficient available balance, or otherwise, the payments payment may be late or past due.

Authorization for Direct Payments (ACH Debits). To effectuate any payment due under this Agreementany of the Obligations, the Note or any other Financing Document, Borrower hereby authorizes the Lender to initiate debit entries to any deposit account of the Borrower maintained with the Lender and to debit the same to such account. This authorization to initiate debit entries shall remain in full force and effect until the Lender has received written notification of its termination in such time and in such manner as to afford the Lender a reasonable opportunity to act on it. The Borrower acknowledges (a1) that such debit entries may cause an overdraft of any such account which may result in the Lender's ’s refusal to honor items drawn on any such account until adequate deposits are made to any such account; (b2) that the Lender is under no duty or obligation to initiate any debit entry for any purpose; and (c3) that if a debit is not made because any such account does not have a sufficient available balance, or otherwise, the payments payment may be late or past due. 7. A new Section 6.16 is hereby added to the Credit Agreement which shall read as follows:

Authorization for Direct Payments (ACH Debits). To effectuate any payment due under this Agreementthe Term Note, or under any of the other Loan Documents, the Note or any other Financing Document, Borrower hereby herby authorizes Lender the Bank to initiate debit entries to any deposit account of Borrower maintained with Lender Account Number 0000000 at the Bank and to debit the same to such account; provided that the Bank shall use its best efforts to provide the Borrower with notice of any such debit entry prior to, or promptly following, initiation of such debit entry. This authorization to initiate debit entries shall remain in full force and effect until Lender the Bank has received written notification of its termination in such time and in such manner as to afford Lender the Bank a reasonable opportunity to act on it. The Borrower represents and warrants that the Borrower is and will be the owner of all funds in such account. Borrower acknowledges that: (ai) that such debit entries may cause an overdraft of any such account which may result in Lenderthe Bank's refusal to honor items drawn on any such account until adequate deposits are made to any such account; (bii) that Lender the Bank is under no duty or obligation to initiate any debit entry for any purpose; and (ciii) that if a debit is not made because any such the above-referenced account does not have a sufficient available balance, balance or otherwise, the payments payment may be late or past due.