Common use of REJECTED ACCOUNT RECORDS Clause in Contracts

REJECTED ACCOUNT RECORDS. In the event that negotiable instruments drawn on the Depositor’s checking accounts with all financial institutions are dishonored due to the existence of one of the following circumstances and the number of such dishonored checks on which Redemption, Reserve for Payment or Re-Presentation and Payment has not been made is not less than three (3) during the past one (1) year, or the Depositor is sentenced for commission of a crime related to using negotiable instruments, the Bank may reject the Depositor’s account for a period of three (3) years commencing from the date the Bills Clearing House declares [the dishonors]: (1) Insufficient funds. (2) Incorrect chops or signatures of the issuer. (3) Designation of a financial institution to act as paying agent for a promissory note without the agreement of such financial institution. The Records for each item in the preceding paragraph shall be calculated separately and not in aggregate.

REJECTED ACCOUNT RECORDS. In the event that negotiable instruments drawn on the Depositor’s checking accounts with all financial institutions are dishonored due to the existence of one of the following circumstances and the number of such dishonored checks cheques on which Redemption, Reserve for Payment or Re-Presentation and Payment has not been made is not less than three (3) during the past one (1) year, or the Depositor is sentenced for commission of a crime related to using negotiable instruments, the Bank may reject the Depositor’s account for a period of three (3) years commencing from the date the Bills Clearing House declares [the dishonors]: (1) Insufficient funds. (2) Incorrect chops or signatures of the issuer. (3) Designation of a financial institution to act as paying agent for a promissory note without the agreement of such financial institution. The Records for each item in the preceding paragraph shall be calculated separately and not in aggregate.