Common use of Right of Setoff and Security Interest Clause in Contracts

Right of Setoff and Security Interest. In addition to all liens upon, and rights of setoff against, the monies, securities, or other property of any Authorized Signatory given Bank by operation of law, and/or in any other written agreement, each and every Authorized Signatory, jointly and severally, hereby grants to Bank a security interest in, and a right of setoff against, any and all moneys, securities or other property (except to the extent prohibited by applicable Federal and State laws) of each Authorized Signatory now, or hereafter, in the possession of, or on deposit with, Bank or any member bank or branch bank of International Bancshares Corporation, whether held in a general or special account or deposit, or for safekeeping or otherwise. Bank will not be liable for dishonoring items where the exercise of its right to setoff or foreclosure of its security interest results in collected available insufficient funds in this Account. To the extent allowed by law, (i) the security interests and rights of setoff granted herein shall secure payment of any and all indebtedness to Bank of each and every of the Authorized Signatories, or of any one or more of them, individually or jointly with others, now owed or hereafter owing to Bank, (ii) any indebtedness now or hereafter owing to Bank by each and every of the Authorized Signatories or by any one or more of them, either individually or jointly with others, may be charged to, and/or setoff against, any account at Bank or member bank or branch bank of International Bancshares Corporation, owned by, or in the name, of any Authorized Signatory or in the name of any Authorized Signatory and another or others (to the extent the joint account is an “or” account), and (iii) the security interests and rights of setoff granted herein may be exercised by Bank without any prior demand on, or notice to, any or all Authorized Signatories. No right of setoff shall be exercised as to loans secured by Xxxxxxxxx’s homestead. No security interest or right of setoff may be deemed to have been waived by any act or omission or other conduct of Bank, or by any failure to exercise any right of setoff or to enforce any security interest, or by any delay in so doing. Every right of setoff and security interest granted herein shall continue in full force and effect until such right of setoff or security interest is specifically waived or released in writing by Bank. Except as limited herein, Bank’s security interest granted herein shall be collateral for any or all claims of, and/or debts due to, Bank by any Authorized Signatory. Notwithstanding anything contained herein to the contrary, the setoff rights, liens and/or security interests granted herein are not applicable to our collateral for any homestead equity loan. Each Authorized Signatory agrees that Bank’s right of setoff applies to any item cashed or otherwise paid by Bank, if the item is returned unpaid for any reason and/or charged back against this Account and/or any other account of an Authorized Signatory who presented and/or participated in the presentment of the item and/or benefited in any way from the cashing and/or other payment of said item. The right of setoff includes creating or increasing a negative balance. The funds held in joint accounts may be pledged by any Authorized Signatory as collateral for any debt of any Authorized Signatory to Bank and/or may be used to pay any indebtedness on which any Authorized Signatory is liable, individually or jointly with others, whether as primary obligor, as guarantor, or otherwise, and such pledge shall remain valid and enforceable after the death of the Authorized Signatory executing such pledge. Bank’s right of setoff and security interest granted herein do not apply if the debt is created under a consumer credit card plan or if the debt is of an Authorized Signatory who is not the Depositor and his/her right to withdraw funds from this Account arises only in a representative capacity for an entity. Bank’s liability and/or responsibilities, if any, for exercising any right of setoff and/or for any foreclosure of any security interest is expressly limited to reimbursement of the amount of net funds setoff and/or actually received by Bank. To the extent allowed by law, in the event that any Authorized Signatory files or is subject to any bankruptcy proceeding or other liquidation proceeding, whether voluntary or involuntary, each Authorized Signatory agrees that Bank may place an administrative hold on this Account and/or on any and all other accounts of the Authorized Signatory who is the subject of the bankruptcy or other liquidation proceeding to the extent of the aggregate of all indebtedness, however created or incurred, of such Authorized Signatory, individually or jointly with others, whether or not any or all of such indebtedness is matured, past due or subject to acceleration or demand due to an existing default or an event of default which may mature into a default, in order to preserve and protect Bank’s rights in and/or to the funds in such accounts, until Bank is paid in full and/or a court of competent jurisdiction enters a final order/judgment adjudicating Bank’s rights and/or claims and/or to such account funds, or any portion thereof.

Right of Setoff and Security Interest. In addition to all liens upon, and rights of setoff against, the monies, securities, or other property of any Authorized Signatory given Bank by operation of law, and/or in any other written agreement, each and every Authorized Signatory, jointly and severally, hereby grants to Bank a security interest in, and a right of setoff against, any and all moneys, securities or other property (except to the extent prohibited by applicable Federal and State laws) of each Authorized Signatory now, or hereafter, in the possession of, or on deposit with, Bank or any member bank or branch bank of International Bancshares Corporation, whether held in a general or special account or deposit, or for safekeeping or otherwise. Bank will not be liable for dishonoring items where the exercise of its right to setoff or foreclosure of its security interest results in collected available insufficient funds in this Account. To the extent allowed by law, (i) the security interests and rights of setoff granted herein shall secure payment of any and all indebtedness to Bank of each and every of the Authorized Signatories, or of any one or more of them, individually or jointly with others, now owed or hereafter owing to Bank, (ii) any indebtedness now or hereafter owing to Bank by each and every of the Authorized Signatories or by any one or more of them, either individually or jointly with others, may be charged to, and/or setoff against, any account at Bank or member bank or branch bank of International Bancshares Corporation, owned by, or in the name, of any Authorized Signatory or in the name of any Authorized Signatory and another or others (to the extent the joint account is an “or” account), and (iii) the security interests and rights of setoff granted herein may be exercised by Bank without any prior demand on, or notice to, any or all Authorized Signatories. No right of setoff shall be exercised as to loans secured by Xxxxxxxxx’s homestead. No security interest or right of setoff may be deemed to have been waived by any act or omission or other conduct of Bank, or by any failure to exercise any right of setoff or to enforce any security interest, or by any delay in so doing. Every right of setoff and security interest granted herein shall continue in full force and effect until such right of setoff or security interest is specifically waived or released in writing by Bank. Except as limited herein, Bank’s security interest granted herein shall be collateral for any or all claims of, and/or debts due to, Bank by any Authorized Signatory. Notwithstanding anything contained herein to the contrary, the setoff rights, liens and/or security interests granted herein are not applicable to our collateral for any homestead equity loan. Each Authorized Signatory agrees that Bank’s right of setoff applies to any item cashed or otherwise paid by Bank, if the item is returned unpaid for any reason and/or charged back against this Account and/or any other account of an Authorized Signatory who presented and/or participated in the presentment of the item and/or benefited in any way from the cashing and/or other payment of said item. The right of setoff includes creating or increasing a negative balance. The funds held in joint accounts may be pledged by any Authorized Signatory as collateral for any debt of any Authorized Signatory to Bank and/or may be used to pay any indebtedness on which any Authorized Signatory is liable, individually or jointly with others, whether as primary obligor, as guarantor, or otherwise, and such pledge shall remain valid and enforceable after the death of the Authorized Signatory executing such pledge. Bank’s right of setoff and security interest granted herein do not apply if the debt is created under a consumer credit card plan or if the debt is of an Authorized Signatory who is not the Depositor and his/her right to withdraw funds from this Account arises only in a representative capacity for an entity. Bank’s liability and/or and/ or responsibilities, if any, for exercising any right of setoff and/or for any foreclosure of any security interest is expressly limited to reimbursement of the amount of net funds setoff and/or actually received by Bank. To the extent allowed by law, in the event that any Authorized Signatory files or is subject to any bankruptcy proceeding or other liquidation proceeding, whether voluntary or involuntary, each Authorized Signatory agrees that Bank may place an administrative hold on this Account and/or on any and all other accounts of the Authorized Signatory who is the subject of the bankruptcy or other liquidation proceeding to the extent of the aggregate of all indebtedness, however created or incurred, of such Authorized Signatory, individually or jointly with others, whether or not any or all of such indebtedness is matured, past due or subject to acceleration or demand due to an existing default or an event of default which may mature into a default, in order to preserve and protect Bank’s rights in and/or to the funds in such accounts, until Bank is paid in full and/or a court of competent jurisdiction enters a final order/judgment adjudicating Bank’s rights and/or claims and/or to such account funds, or any portion thereof.

Right of Setoff and Security Interest. In addition to all liens upon, and rights of setoff against, the monies, securities, or other property of any Authorized Signatory given Bank by operation of law, and/or in any other written agreement, each and every Authorized Signatory, jointly and severally, hereby grants to Bank a security interest in, and a right of setoff against, any and all moneys, securities or other property (except to the extent prohibited by applicable Federal and State laws) of each Authorized Signatory now, or hereafter, in the possession of, or on deposit with, Bank or any member bank or branch bank of International Bancshares BancShares Corporation, whether held in a general or special account or deposit, or for safekeeping or otherwise. Bank will not be liable for dishonoring items where the exercise of its right to setoff or foreclosure of its security interest results in collected available insufficient funds in this Account. To the extent allowed by law, (i) the security interests and rights of setoff granted herein shall secure payment of any and all indebtedness to Bank of each and every of the Authorized Signatories, or of any one or more of them, individually or jointly with others, now owed or hereafter owing to Bank, (ii) any indebtedness now or hereafter owing to Bank by each and every of the Authorized Signatories or by any one or more of them, either individually or jointly with others, may be charged to, and/or setoff against, any account at Bank or member bank or branch bank of International Bancshares BancShares Corporation, owned by, or in the name, of any Authorized Signatory or in the name of any Authorized Signatory and another or others (to the extent the joint account is an “or” account), and (iii) the security interests and rights of setoff granted herein may be exercised by Bank without any prior demand on, or notice to, any or all Authorized Signatories. No right of setoff shall be exercised as to loans secured by Xxxxxxxxx’s homestead. No security interest or right of setoff may be deemed to have been waived by any act or omission or other conduct of Bank, or by any failure to exercise any right of setoff or to enforce any security interest, or by any delay in so doing. Every right of setoff and security interest granted herein shall continue in full force and effect until such right of setoff or security interest is specifically waived or released in writing by Bank. Except as limited herein, Bank’s security interest granted herein shall be collateral for any or all claims of, and/or debts due to, Bank by any Authorized Signatory. Notwithstanding anything contained herein to the contrary, the setoff rights, liens and/or security interests granted herein are not applicable to our collateral for any homestead equity loan. Each Authorized Signatory agrees that Bank’s right of setoff applies to any item cashed or otherwise paid by Bank, if the item is returned unpaid for any reason and/or charged back against this Account and/or any other account of an Authorized Signatory who presented and/or participated in the presentment of the item and/or benefited in any way from the cashing and/or other payment of said item. The right of setoff includes creating or increasing a negative balance. The funds held in joint accounts may be pledged by any Authorized Signatory as collateral for any debt of any Authorized Signatory to Bank and/or may be used to pay any indebtedness on which any Authorized Signatory is liable, individually or jointly with others, whether as primary obligor, as guarantor, or otherwise, and such pledge shall remain valid and enforceable after the death of the Authorized Signatory executing such pledge. Bank’s right of setoff and security interest granted herein do not apply if the debt is created under a consumer credit card plan or if the debt is of an Authorized Signatory who is not the Depositor and his/her right to withdraw funds from this Account arises only in a representative capacity for an entity. Bank’s liability and/or responsibilities, if any, for exercising any right of setoff and/or for any foreclosure of any security interest is expressly limited to reimbursement of the amount of net funds setoff and/or actually received by Bank. To the extent allowed by law, in the event that any Authorized Signatory files or is subject to any bankruptcy proceeding or other liquidation proceeding, whether voluntary or involuntary, each Authorized Signatory agrees that Bank may place an administrative hold on this Account and/or on any and all other accounts of the Authorized Signatory who is the subject of the bankruptcy or other liquidation proceeding to the extent of the aggregate of all indebtedness, however created or incurred, of such Authorized Signatory, individually or jointly with others, whether or not any or all of such indebtedness is matured, past due or subject to acceleration or demand due to an existing default or an event of default which may mature into a default, in order to preserve and protect Bank’s rights in and/or to the funds in such accounts, until Bank is paid in full and/or a court of competent jurisdiction enters a final order/judgment adjudicating Bank’s rights and/or claims and/or to such account funds, or any portion thereof.