Common use of Clearing Account Clause in Contracts

Clearing Account. 8.1 Each client must maintain a Clearing Account in their own name that will be managed by TTDS. 8.2 It will be the Client’s responsibility to deposit the Client’s funds into the Clearing Account prior to TTDS establishing the Client’s Account. 8.3 The Client acknowledges that TTDS cannot transfer the Client’s funds out of the Clearing Account and deposit the Client’s funds with an ADI unless and until the Client’s funds have cleared in the Clearing Account. 8.4 The Client authorises TTDS to deposit, or to instruct the ADI to deposit, the Client’s funds in the Clearing Account whenever the funds are not on deposit with an ADI. 8.5 Subject to clause 8.6, TTDS must not use the Client’s funds in the Clearing Account except as authorised by the Client. 8.6 The Client authorises TTDS to pay the Service Fee to itself from the Clearing Account.