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. 7.10.2 The new Account shall be treated as being opened at the time when the Bank received or was deemed to have received notice or at the time of termination (as the case may be) and (without prejudice to any right of the Bank to combine Accounts) as from that time all payments made to the Bank shall be credited or be treated as having been credited to the new Account and shall not operate to reduce the amount secured by the provisions of this paragraph 7.