Common use of Legal Proceedings Involving an Account Clause in Contracts

Legal Proceedings Involving an Account. If the Bank receives any process, subpoena, summons, order, injunction, execution, garnishment, distraint, xxxx, xxxx or other legal notice that, in the Bank’s opinion, affects an Account, your use of the Account may become restricted. The Bank may, without liability, refuse to honor any Item drawn on your Account and may place a Hold on the Account until the proceeding is disposed of to the Bank’s satisfaction. Attachments, garnishments, levies and similar orders are subject to the Bank’s security interest and right of setoff in the Account and to any fees charged by the Bank for such legal process. Should the Bank be served with a garnishment, levy, or similar order in the name or names of any Account owner, you agree that the Bank’s remittance of any amounts pursuant to such order constitutes an authorized withdrawal and the Bank shall not be liable for any damages you incur by reason thereof, provided we acted in good faith. You agree to pay all expenses, including court costs and attorney’s fees, incurred by us due to any legal proceeding or dispute affecting or relating to your Account. We may deduct any such expenses from your Account.

Legal Proceedings Involving an Account. If the Bank receives any process, subpoena, summons, order, injunction, execution, garnishment, distraint, xxxx, xxxx or other legal notice that, in the Bank’s opinion, affects an Account, your use of the Account may become restricted. The Bank may, without liability, refuse to honor any Item drawn on your Account and may place a Hold on the Account until the proceeding is disposed of to the Bank’s satisfaction. Attachments, garnishments, levies and similar orders are subject to the Bank’s security interest and right of setoff in the Account and to any fees charged by the Bank for such legal process. Should the Bank be served with a garnishment, levy, or similar order in the name or names of any Account ownerrelated to your Account, you agree that the Bank’s remittance of any amounts pursuant to such order constitutes an authorized withdrawal and the Bank shall not be liable for any damages you incur by reason thereof, provided we acted in good faith. You agree to pay all expenses, including court costs and attorney’s fees, incurred by us due to any legal proceeding or dispute affecting or relating to your Account. We may deduct any such expenses from your Account.