Contractual Right of Setoff. Except to the extent prohibited by law, you agree that we have the right to apply funds in any account that you maintain with us, whether the account is in your name alone or in your name and another or others, to the payment of any obligations, individual or joint, you owe to us now or at any time hereafter. This setoff provision applies to all funds in your account, including Social Security funds. This setoff provision does not apply to funds that you maintain with us in any IRA, HSA, or CESA, or other account that would lose special tax treatment under state or federal law if given as security. This setoff provision also does not apply to a debt that is created by a consumer credit transaction under a credit card plan (but this does not affect our rights under any consensual security interest). We may set off the funds in any account you maintain, except as limited above, in order to pay off the remaining amount you owe us, including any costs of collection or reasonable attorney’s fees we incur by enforcing our rights or responding to third party claims related to your account(s). If we do not enforce our right of setoff, we do not waive our rights to enforce our contractual right or collect any amounts owed at a later date. You agree to hold us harmless from any claim arising as a result of our exercise of our right to setoff.
Contractual Right of Setoff. Except to the extent prohibited by law, you agree that we have the right to apply funds in any account you maintain with us, whether the account is in your name alone or in your name and another or others, to the payment of any obligations, individual or joint, you owe to us now or at any time hereafter. This setoff provision applies to all funds in your account, including Social Security funds. This setoff provision does not apply to funds you maintain with us in any account that would lose special tax treatment under state or federal law if given as security. This setoff provision also does not apply to a debt that is created by a consumer credit transaction under a credit card plan (but this does not affect our rights under any consensual security interest). We may set off the funds in any account you maintain, except as limited above, in order to pay an outstanding amount or pay off the remaining amount you owe us, including any costs of collection or reasonable attorney’s fees we incur by enforcing our rights or responding to third party claims related to your account(s). This includes amounts owed on Collegiate accounts, but also amounts owed on under any of our trade names as described in the Trade Names section of this agreement. If we do not enforce our right of setoff, we do not waive our rights to enforce our contractual right or collect any amounts owed at a later date. You agree to hold us harmless from any claim arising as a result of our exercise of our right to setoff.
Contractual Right of Setoff. Upon any Event of Default, NCP-Seven hereby grants to Bank a contractual right from time to time to setoff (and take from), whether now or hereafter existing, any and all deposits (general or special, time or demand, provisional or final) and any and all other property directly or indirectly owned by NCP-Seven (whether owned alone or with others) at any time in the possession (for any reason) of Bank or any of its affiliates, and apply the same to any Obligation (in such order and amounts as Bank may determine it its sole discretion). Notwithstanding the foregoing and with respect to amounts Bank determines to apply to Base Rate Loans and LIBOR Rate Loans, Bank acknowledges NCP-Seven's request that amounts first be applied to Base Rate Loans to avoid "breakage" expenses of LIBOR Rate Loans, and Bank agrees to make such application when such would not otherwise be adverse to the interests of Bank (all as determined by Bank). This contractual right of setoff shall be in addition to Bank's banker's lien and its common law rights of setoff, and may be exercised in Bank's discretion without notice or demand and without regard to concepts of maturity and mutuality. If exercise of this or Bank's setoff right causes any deposit to be withdrawn before any scheduled withdrawal date, NCP-Seven shall pay any early withdrawal or other penalty in addition to the Obligations.
