Processing Acceptable Checks Clause Samples
The "Processing Acceptable Checks" clause defines the standards and procedures for handling checks that are deemed valid for payment under an agreement. It typically outlines the criteria a check must meet to be considered acceptable, such as being properly dated, signed, and drawn on a recognized financial institution, and may specify timelines for depositing or clearing such checks. This clause ensures that both parties understand which checks will be processed and how, thereby reducing disputes over payment methods and streamlining the payment process.
Processing Acceptable Checks. All checks, except those not acceptable for deposit under the terms of this Agreement, shall be deposited on the day of receipt by the Bank to Account No. _____________ (the "Depository Account"), and all such checks shall be endorsed as follows: credited to account number _____________: absence of endorsement hereby supplied and granted by [Lock Box Bank] Any funds in the Depository Account will be wired on a daily basis with the following instructions: First Union Commercial Corporation One First Union Center 301 ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇ Attn: Account No. _____________ For the account of the Borrower; provided, however, that no funds shall be required to be wired unless and until the amount of funds in the Depository Account shall be in excess of an aggregate of $1000, unless the Agent shall, in its sole discretion, otherwise instruct the Bank. All remittance advices, envelopes, and written matter (except as expressly provided herein) received in the Lock Box together with photocopies of all checks shall be sent to the Borrower and, if requested by the Agent, copies of same shall be sent to the Agent. The Bank shall mail a statement of account, on a monthly basis, to both the Agent and the Borrower. If no deposit is made on a bank business day, a deposit advice, correctly dated, will be sent to the Agent and the Borrower with the notation "No Deposit" appearing thereon. In addition, the Bank (or at any time prior to the occurrence of an Event of Default, the Borrower) shall indicate by telephone to the Agent on each Bank business day by 2:30 P.M. (Eastern time zone) the amount of each day's deposit total. The Depository Account shall be opened and established by the Borrower for the benefit of the Agent on behalf of the Lenders and shall be subject to the terms and provisions of the Credit Agreement and Security Agreement (as such term is defined in the Credit Agreement). Neither the Bank nor the Borrower shall have the right to withdraw funds from the Depository Account, except that the Bank may make such debits therefrom as provided in Section 5 hereof.
Processing Acceptable Checks. All checks, except those not acceptable for deposit under the terms hereof, shall be deposited on the day of receipt by the Bank to Account No. [______] at the Bank (the "Collection Account"), which is an account owned and controlled exclusively by Collateral Agent, and all such checks shall be endorsed as follows: credited to account number [_________]; absence of endorsement hereby supplied and guaranteed by [Lockbox Bank] Any available funds in the Collection Account will be wired no later than 2:00 p.m. (New York time) each Business Day with the following instructions:
Processing Acceptable Checks. Acceptable checks shall be accepted as received and processed in the following manner:
Processing Acceptable Checks