Failure to Maintain Balance Clause Samples
The 'Failure to Maintain Balance' clause defines the consequences and procedures that apply when a party does not keep a required minimum balance in an account or financial arrangement. Typically, this clause outlines the threshold amount that must be maintained, the timeframe for rectifying any shortfall, and the penalties or remedial actions—such as fees, suspension of services, or even termination of the agreement—that may result from non-compliance. Its core practical function is to ensure financial stability and mitigate risk for the party requiring the balance, by providing clear guidelines and consequences if the minimum balance is not upheld.
Failure to Maintain Balance. If, at any time, Seller fails to maintain in the Over/Under Account the Minimum Over/Under Account Balance as required hereunder, in addition to any other rights and remedies that Buyer may have against Seller, Buyer shall have the right to immediately stop entering into Transactions with Seller and/or to charge Seller accrued interest on that portion of the Minimum Over/Under Account Balance that Seller has failed to maintain, at the Default Rate, from the time that such balance failed to be maintained until the time that funds are deposited into or held in the Over/Under Account to comply with such Minimum Over/Under Account Balance requirements hereunder. Without limiting the generality of the foregoing, it is understood and agreed that should the balance in the Over/Under Account become negative, Seller will continue to owe Buyer accrued interest as provided herein.
Failure to Maintain Balance. If, at any time, Seller or Guarantor fails to maintain in the Wire-out Account a minimum balance of $0.00 as required hereunder and under the Custodial and Disbursement Agreement, Buyer shall have the right to immediately stop entering into Transactions with Seller that would require amounts from the Wire-out Account until such time as Seller or Guarantor has made an appropriate deposit into the Wire-out Account such that a minimum balance of $0.00 is on deposit in the Wire-out Account as required hereunder and the Custodial and Disbursement Agreement.
Failure to Maintain Balance. If, at any time, Seller fails to maintain in the Over/Under Account the Minimum Required Balance hereunder, in addition to any other rights and remedies that Buyer may have against Seller, Buyer shall have the right to immediately stop entering into Transactions with Seller until the time that funds are deposited into or held in the Over/Under Account to comply with such Minimum Required Balance hereunder. Without limiting the generality of the foregoing, it is understood and agreed that should the balance in the Over/Under Account become negative, Seller will continue to owe Buyer accrued interest as provided herein.
Failure to Maintain Balance. If, at any time, Seller fails to maintain in the Wire-out Account a minimum balance of $0.00 as required hereunder and under the Custodial Agreement, Buyer shall have the right to immediately stop entering into Transactions with Seller that would require amounts from the Wire-out Account until such time as Seller has made an appropriate deposit into the Wire-out Account such that a minimum balance of $0.00 is on deposit in the Wire-out Account as required hereunder and the Custodial Agreement.
Failure to Maintain Balance. If, at any time, Borrower fails to maintain $250,000 (the “Minimum Balance”) in the Over/Under Account, Borrower shall deposit sufficient funds into the Over/Under Account by the close of business the next Business Day to maintain such Minimum Balance. It is understood and agreed that the current balance in the Over/Under Account, according to Lender’s records, will be available on Lender’s customer website(s) and it shall be the responsibility of Borrower to monitor the balance in the Over/Under Account to comply with its obligations hereunder. In the event Borrower fails to maintain such Minimum Balance as required herein, in addition to any other rights and remedies that Lender may have against Borrower, Borrower will be obligated to pay Lender accrued interest on that portion of the balance that Borrower has failed to maintain, at the Default Rate, from the time that such balance failed to be maintained until the time funds are deposited into or held in the Over/Account to comply with Borrower’s obligations hereunder. Without limiting the generality of the foregoing, it is understood and agreed that should the balance in the Over/Under Account become negative, Borrower will continue to owe Lender accrued interest as provided herein.
Failure to Maintain Balance. If, at any time, Seller fails to maintain in the Over/Under Account the Minimum Over/Under Account Balance as required hereunder, in addition to any other rights and remedies that Buyer may have against Seller, Buyer shall have the right to immediately stop entering into Transactions with Seller and/or to charge Seller accrued interest on that portion of the Minimum Over/Under Account Balance that Seller has failed to maintain, at a rate equal to the product of (i) One-Month LIBOR and (ii) the Type Margin for Type A Eligible Mortgage Loans as set forth in the Transactions Terms Letter, from the time that such balance failed to be maintained until the time that funds are deposited into or held in the Over/Under Account to comply with such Minimum Over/Under Account Balance requirements hereunder. Without limiting the generality of the foregoing, it is understood and agreed that should the balance in the Over/Under Account become negative, Seller will continue to owe Buyer accrued interest as provided herein.
Failure to Maintain Balance. If, at any time, Seller fails to maintain in the Over/Under Account the minimum margin balance as required hereunder, in addition to any other rights and remedies that Buyer may have against Seller, and upon one (1) Business Day’s notice, Buyer shall have the right, at its sole and good faith discretion, to immediately stop entering into Transactions with Seller and/or to charge Seller accrued interest on that portion of the minimum margin balance that Seller has failed to maintain, at the Default Rate, from the time that such balance failed to be maintained until the time that funds are deposited into or held in the Over/Account to comply with such minimum margin balance requirements hereunder. Without limiting the generality of the foregoing, it is understood and agreed that should the balance in the Over/Under Account become negative, Seller will continue to owe Buyer accrued interest as provided herein.
Failure to Maintain Balance. If, at any time, Seller fails to maintain in the Over/Under Account the Minimum Over/Under Account Balance as required hereunder, in addition to any other rights and remedies that Administrative Agent or a Buyer may have against Seller, Administrative Agent on behalf of Buyers shall have the right to immediately stop entering into Transactions with Seller and/or to charge Seller accrued interest on that portion of the Minimum Over/Under Account Balance that Seller has failed to maintain, at the Default Rate, from the time that such balance failed to be maintained until the time that funds are deposited into or held in the Over/Under Account to comply with such Minimum Over/Under Account Balance requirements hereunder. Without limiting the generality of the foregoing, it is understood and agreed that should the balance in the Over/Under Account become negative, Seller will continue to owe Administrative Agent for the benefit of Buyers accrued interest as provided herein.
Failure to Maintain Balance. If, at any time, Borrower fails to maintain in the Over/Under Account the balance set forth in the Commitment Letter, in addition to any other rights and remedies that Lender may have against Borrower, Borrower will be obligated to pay Lender accrued interest on that portion of the balance that Borrower has failed to maintain, at the Default Rate, from the time that such balance failed to be maintained until the time funds are deposited into or held in the Over/Account to comply with Borrower's obligations hereunder. Without limiting the generality of the foregoing, it is understood and agreed that should the balance in the Over/Under Account become negative, Borrower will continue to owe Lender accrued interest as provided herein.
Failure to Maintain Balance. If, at any time, Seller fails to maintain in the Over/Under Account the balance set forth in the Commitment Letter, in addition to any other rights and remedies that Buyer may have against Seller, Seller will be obligated to pay Buyer accrued interest on that portion of the balance that Seller has failed to maintain, at the Post-Default Rate, from the time that such balance failed to be maintained until the time funds are deposited into or held in the Over/Account to comply with Seller’s obligations hereunder. Without limiting the generality of the foregoing, it is understood and agreed that should the balance in the Over/Under Account become negative, Seller will continue to owe Buyer accrued interest as provided herein.