Common use of Opening of New Account Clause in Contracts

Opening of New Account. 7.10.1 If the Bank receives or is deemed to be affected by notice (actual or constructive) of any subsequent security or other interest affecting the Collateral or if the continuing nature of the provisions set out in this paragraph 7 is terminated for any reason, upon the commencement of any form of bankruptcy or insolvency proceeding affecting the Customer or if any provision of this paragraph 7 ceases to be binding on the Customer, the Bank may rule off the Customer’s then subsisting Account or Accounts and open a new Account in the name of the Customer.