Common use of Reserve Account and Prefunding Clause in Contracts

Reserve Account and Prefunding. (a) Upon or at any time after execution of this Agreement, Service Providers may establish and maintain an account for future indebtedness of Merchant to Service Providers that may arise out of or relate to the obligations of Merchant to Service Providers under this Agreement, including, but not limited to Chargebacks, Credits, refunds, fines, and fees, in such amount as Service Providers from time to time may determine in its sole discretion (“Reserve Account”). Funds in the Reserve Account will be held and controlled by Bank, will not bear interest, and may be commingled with other funds. Service Providers shall determine and Service Providers shall inform Merchant of the amount required if required for the Reserve Account at the commencement of this Agreement. Service Providers may change the Reserve Account balance requirements as reasonably necessary, and Merchant shall be immediately notified of such change. The Reserve Account may be funded by deduction from payments due Merchant, a charge or setoff against Merchant Bank Account, against any of Merchant's accounts at Bank, or a deposit by Merchant. (b) If the Merchant participates in Disbursements then Merchant understands that each day, the Bank Account must have a balance in good and available funds equal to its Disbursement requests (“Prefunding Obligation”). Bank has no obligation to process any Disbursement for which the Prefunding Obligation has not been met. In the event the Prefunding Obligation is not met and Disbursements are processed, Bank may immediately charge the Reserve Account to meet the Prefunding Obligation and if insufficient funds in the Reserve Account, then Merchant shall immediately deposit the Disbursement shortfall in the Reserve Account. (c) Except for Merchant’s Prefunding Obligation hereunder which requires immediate remedy, Merchant must deposit good and available funds as necessary to satisfy the Reserve Account requirement within three business days. Bank, on its own behalf may, without notice to Merchant, apply deposits in the Reserve Account against any outstanding amounts Merchant owes under this Agreement. The Reserve Account will be maintained for an amount Service Providers deems commercially reasonable for a maximum of six months from the termination date of this Agreement or until such time as Service Providers determines that the release of the funds to Merchant is prudent, commercially reasonable and Merchant's existing and future liability with Service Providers is extinguished. On release by Bank, any balance remaining in the Reserve Account will be paid to Merchant. Service Providers will inform Merchant in writing of any charges debited to the Reserve Account during this period.

Reserve Account and Prefunding. (a) Upon or at any time after execution of this Agreement, Service Providers may establish and maintain an account for future indebtedness of Merchant to Service Providers that may arise out of or relate to the obligations of Merchant to Service Providers under this Agreement, including, but not limited to Chargebacks, Credits, refunds, fines, and fees, in such amount as Service Providers from time to time may determine in its sole discretion (“Reserve Account”). Funds in the Reserve Account will be held and controlled by Bank, will not bear interest, and may be commingled with other funds. Service Providers shall determine and Service Providers shall inform Merchant of the amount required if required for the Reserve Account at the commencement of this Agreement. Service Providers may change the Reserve Account balance requirements as reasonably necessary, and Merchant shall be immediately notified of such change. The Reserve Account may be funded by deduction from payments due Merchant, a charge or setoff against Merchant Bank Account, against any of Merchant's accounts at Bank, or a deposit by Merchant. (b) If the Merchant participates in Disbursements then Merchant understands that each day, the Bank Account must have a balance in good and available funds equal to its Disbursement requests (“Prefunding Obligation”). Bank has no obligation to process any Disbursement for which the Prefunding Obligation has not been met. In the event the Prefunding Obligation is not met and Disbursements are processed, Bank may immediately charge the Reserve Account to meet the Prefunding Obligation and if insufficient funds in the Reserve Account, then Merchant shall immediately deposit the Disbursement shortfall in the Reserve Account. (c) Except for MerchantXxxxxxxx’s Prefunding Obligation hereunder which requires immediate remedy, Merchant must deposit good and available funds as necessary to satisfy the Reserve Account requirement within three business days. Bank, on its own behalf may, without notice to Merchant, apply deposits in the Reserve Account against any outstanding amounts Merchant owes under this Agreement. The Reserve Account will be maintained for an amount Service Providers deems commercially reasonable for a maximum of six months from the termination date of this Agreement or until such time as Service Providers determines that the release of the funds to Merchant is prudent, commercially reasonable and Merchant's existing and future liability with Service Providers is extinguished. On release by Bank, any balance remaining in the Reserve Account will be paid to Merchant. Service Providers will inform Merchant Xxxxxxxx in writing of any charges debited to the Reserve Account during this period.

Reserve Account and Prefunding. (a) Upon or at any time after execution of this Agreement, Service Providers may establish and maintain an account for future indebtedness of Merchant to Service Providers that may arise out of or relate to the obligations of Merchant to Service Providers under this Agreement, including, but not limited to Chargebacks, Credits, refunds, fines, and fees, in such amount as Service Providers from time to time may determine in its sole discretion (“Reserve Account”). Funds in the Reserve Account will be held and controlled by Bank, will not bear interest, and may be commingled with other funds. Service Providers shall determine determine, and Service Providers shall inform Merchant of the amount required required, if required required, for the Reserve Account at the commencement of this Agreement. Service Providers may change the Reserve Account balance requirements as reasonably necessary, and Merchant shall be immediately notified of such change. The Reserve Account may be funded by deduction from payments due Merchant, a charge or setoff against Merchant Bank Account, against any of Merchant's accounts at Bank, or a deposit by Merchant. (b) If the Merchant participates in Disbursements Disbursements, then Merchant understands that each day, the Bank Account must have a balance in good and available funds equal to its Disbursement requests (“Prefunding Obligation”). Bank has no obligation to process any Disbursement for which the Prefunding Obligation has not been met. In the event the Prefunding Obligation is not met and Disbursements are processed, Bank may immediately charge the Reserve Account to meet the Prefunding Obligation and if insufficient funds in the Reserve Account, then Merchant shall immediately deposit the Disbursement shortfall in the Reserve Account. (c) Except for MerchantXxxxxxxx’s Prefunding Obligation hereunder which requires immediate remedy, Merchant must deposit good and available funds as necessary to satisfy the Reserve Account requirement within three business days. Bank, on its own behalf may, without notice to Merchant, apply deposits in the Reserve Account against any outstanding amounts Merchant owes under this Agreement. The Reserve Account will be maintained for an amount Service Providers deems commercially reasonable for a maximum of six months from the termination date of this Agreement or until such time as Service Providers determines that the release of the funds to Merchant is prudent, commercially reasonable and Merchant's existing and future liability with Service Providers is extinguished. On release by Bank, any balance remaining in the Reserve Account will be paid to Merchant. Service Providers will inform Merchant in writing of any charges debited to the Reserve Account during this period.three

Reserve Account and Prefunding. (a) Upon or at any time after execution of this Agreement, Service Providers may establish and maintain an account for future indebtedness of Merchant to Service Providers that may arise out of or relate to the obligations of Merchant to Service Providers under this Agreement, including, but not limited to Chargebacks, Credits, refunds, fines, and fees, in such amount as Service Providers from time to time may determine in its sole discretion (“Reserve Account”). Funds in the Reserve Account will be held and controlled by Bank, will not bear interest, and may be commingled with other funds. Service Providers shall determine and Service Providers shall inform Merchant of the amount required required, if required required, for the Reserve Account at the commencement of this Agreement. Service Providers may change the Reserve Account balance requirements as reasonably necessary, and Merchant shall be immediately notified of such change. The Reserve Account may be funded by deduction from payments due Merchant, a charge or setoff against Merchant Bank Account, against any of Merchant's accounts at Bank, or a deposit by Merchant. (b) If the Merchant participates in Disbursements then Merchant understands that each day, the Bank Account must have a balance in good and available funds equal to its Disbursement requests (“Prefunding Obligation”). Bank has no obligation to process any Disbursement for which the Prefunding Obligation has not been met. In the event the Prefunding Obligation is not met and Disbursements are processed, Bank may immediately charge the Reserve Account to meet the Prefunding Obligation and if insufficient funds in the Reserve Account, then Merchant shall immediately deposit the Disbursement shortfall in the Reserve Account. (c) Except for MerchantXxxxxxxx’s Prefunding Obligation hereunder which requires immediate remedy, Merchant must deposit good and available funds as necessary to satisfy the Reserve Account requirement within three business days. Bank, on its own behalf may, without notice to Merchant, apply deposits in the Reserve Account against any outstanding amounts Merchant owes under this Agreement. The Reserve Account will be maintained for an amount Service Providers deems commercially reasonable for a maximum of six months from the termination date of this Agreement or until such time as Service Providers determines that the release of the funds to Merchant is prudent, commercially reasonable and Merchant's existing and future liability with Service Providers is extinguished. On release by Bank, any balance remaining in the Reserve Account will be paid to Merchant. Service Providers will inform Merchant in writing of any charges debited to the Reserve Account during this period.three