Common use of Other Adverse Claims Clause in Contracts

Other Adverse Claims. If the Bank receives notice of an actual or potential adverse claim to your account or the funds in your account, it may in its discretion refuse to pay out any money from your account for a reasonable period of time after receipt of notice of the actual or potential claim. Although the Bank reserves the right to refuse to pay out any money from your account if it has received notice of an actual or potential claim, the Bank may recognize any adverse claim if (1) the claimant provides the Bank with an acceptable bond indemnifying the Bank against any and all liabilities, losses, damages, costs and expenses that might be incurred by the Bank in connection with payment of the adverse claim and any resulting dishonored checks or other items; (2) the claimant has obtained an order from a court of competent jurisdiction in a case in which you are made a party and served with a summons; or (3) you act as a fiduciary for the claimant and the claimant gives the Bank an affidavit setting forth the nature of your fiduciary relationship and the facts upon which the claimant has reasonable cause to believe that you are about to misappropriate the funds. In the event of any dispute involving your account, you agree that you are liable to the Bank for any loss cost or expense, including reasonable attorney's fees, incurred by the Bank. You agree that any such loss, cost or expense may be deducted from your account without prior notice. In the event the Bank incurs an expense in copying, reproducing or otherwise dealing with your account in response to a subpoena, warrant or similar legal process, you are responsible for any such expense. You agree that any such loss or expense may be deducted from your account without prior notice.