Common use of Provisional Credit Clause in Contracts

Provisional Credit. Ownership of Secured Funds. Bank will post provisional credit in the Account for Secured Funds on the business day Bank receives the Report subject to Bank’s normal deposit cutoff hours and to any reserves Bank establishes. For example, if Client causes Client’s Smart Safe Courier to transmit to Bank a Report of Monday's receipts in the cassettes after the close of business on a Monday and prior to Bank’s processing cutoff time on Tuesday, the amount of Secured Funds reported in that Report will be reflected in the Designated Account for Tuesday assuming Tuesday is a business day. All credit Bank gives Client for deposits is provisional and subject to verification and correction for the amount of Secured Funds actually received by Bank including for errors, counterfeit currency and miscounts. If the contents of the Smart Safe for which Bank gave Client provisional credit are not delivered to the Virtual Vault location approved by Bank in the set up process at the next scheduled pickup, or if the amount of Cash delivered to Bank or the Virtual Vault is less than the amount reported in the Report, then regardless of the reason or circumstances, Bank will reverse any excess credit Bank gave Client and in any case Client is obligated to Bank for any adjustment and related effects. To the extent Client retains any interest in the Secured Funds by operation of law or otherwise, Client hereby grants Bank a security interest in all such Secured Funds.