Common use of Pre-funding Clause in Contracts

Pre-funding. Financial Institution reserves the right to require Third-Party Sender to pre-fund an Account maintained at Financial Institution prior to the Settlement Date of the ACH file. Financial Institution shall determine whether pre-funding is required based on criteria established from time to time by Financial Institution. Financial Institution will communicate directly to Third-Party Sender if pre-funding is required and, if requested by Third-Party Sender, will provide Third-Party Sender with an explanation of its pre-funding criteria. If it is determined that pre- funding is required, Third-Party Sender will provide immediately available and collected funds sufficient to pay all Entries initiated by Third-Party Sender (a) not later than 12:00 p.m. local time, 2 Business Days before each Settlement Date, and (b) prior to initiating any Entries for which pre-funding is required.