Common use of Security Interest and Lien Clause in Contracts

Security Interest and Lien. Sub-Merchant hereby grants a security interest and lien upon the Operating Account or any substitute account now and in the future and all proceeds thereof to Fattmerchant to secure all fees, costs, and charges due in accordance with this Agreement, including all fees indicated in the Fattmerchant Application or any other agreement between you and Fattmerchant, including without limitation, Chargebacks, Return Entries, refunds and Association fees or fines (the “Amounts Due”). In the exercise of its rights with regard to the security interest and lien, Fattmerchant may only debit the Operating Account to the extent of the then existing amounts due and shall only do so if Fattmerchant becomes reasonably concerned about whether the Sub-Merchant will otherwise fulfill its financial obligations. Sub-Merchant shall provide such documentation as required by Fattmerchant in connection with the security interest and lien. The security interest and lien granted herein shall survive the termination of this Agreement until all amounts due are determined and paid in full. Sub-Merchant hereby authorizes Fattmerchant to prepare all documents or to take other actions reasonably necessary to perfect its security interest or lien in the Operating Account or any substitute account therefor.