Common use of CLEARED BALANCE Clause in Contracts

CLEARED BALANCE. The balance on the Client's account or accounts is deemed cleared for all purposes when funds have been received by the Bank from the bank making such payment except for cheques payable abroad for which the Bank has negotiated payment in accordance with international banking practice, in which instance the balance is deemed cleared with recourse from the close of business on the day of such negotiation. In this case, should the Bank not receive the payment of the cheque due from the overseas bank, the Bank reserves the right to reclaim the funds from the Client.