Liquidation and Covenants Sample Clauses

Liquidation and Covenants. Deposit Accounts are to be redeemed as promptly as practicable and the cash received for such redemptions credited to the identified account automatically whenever such cash is needed for other uses to cover outstanding and unpaid checks drawn on the identified account or to cover cash management fees and expense reimbursements charged to the identified account as described below. Customer agrees that it will not draw checks on the identified account in a fashion that will create an overdraft that will be used for the purpose of buying, carrying, or trading in securities, or buying or carrying any part of an investment contract security or obtaining such overdraft to repay debt incurred for such purposes. Customer understands that the Bank shall immediately obtain a security interest in the Deposit Accounts upon the occurrence of and to the extent necessary to cover the amount of any overdraft incurred in the identified account for such period of time as said overdraft remains outstanding. The Bank, in its sole discretion, alternatively may withhold from payment any outstanding and unpaid check drawn on the identified account until funds sufficient to cover such outstanding and unpaid check have been credited to the identified account as a result of cash received from withdrawals from Deposit Accounts. Upon revocation or termination of this Service, all Deposit Accounts then held shall be promptly redeemed for cash and the proceeds delivered to the identified account or Customer after payment of fees and outstanding checks.