Setoff and Security Interest Clause Samples

Setoff and Security Interest. If you ever owe the Bank money as a borrower, guarantor or otherwise, and it becomes due, the Bank has the right under the law (called setoff) and under this agreement (by which you grant the Bank a security interest in your deposit account) to use the money from your account to pay the debt. The Bank may use the money to pay the debt even if withdrawal results in an interest penalty or dishonor of checks. In the case of a partnership or joint account, each partner or joint owner agrees that the Bank may use the money in the account to satisfy any one of their individual obligations. Similarly each partner or joint owner agrees that the Bank may use the money in the account to satisfy any one of their individual obligations. Further you are granting the bank a security interest in your account. The security interest granted by this Agreement is consensual and is in addition to the Bank’s right of setoff. You agree that the Bank’s right of setoff or its right to realize upon its security interest automatically arises in any instance in which an account in your name has been attached, garnished or otherwise subject to a lien, whether or not your obligation to the Bank is then in default. You agree that the Bank’s right of setoff takes precedence and priority over any garnishment, attachment or other lien and, as a result, the Bank may first apply the funds in your account to satisfy all or a part of your obligation to the Bank before honoring the garnishment, attachment or lien.

Setoff and Security Interest. In addition to all rights provided by Applicable Laws, Customer agrees that any and all amounts on deposit in any Account maintained by Customer with Bank or any Bank Affiliate may be set off and applied against any liability in any currency Customer owes Bank under this Agreement, and any liability that any Customer Affiliate owes Bank or any Bank Affiliate. Customer further grants Bank a first priority security interest in all Accounts held by Customer now or in the future with Bank or any of its Affiliates to secure payment of any and all obligations under this Agreement; provided that this security interest shall be subordinate to any security interest separately agreed to in writing by Bank.

Setoff and Security Interest. If you ever owe the Credit Union money as a borrower, guarantor or otherwise, and it becomes due, the Credit Union has the right under the law (called “setoff’) and under this agreement (by which you grant the Credit Union a security interest in your deposit account) to use the money from your account to pay the debt. The Credit Union may use the money to pay the debt even if withdrawal results in a dividend penalty or dishonor of checks. In the case of a partnership or joint account, each partner or joint owner agrees that the Credit Union may use the money in the account to satisfy any one of their individual obligations. Similarly, each partner or joint owner agrees that the Credit Union may use the money in their individual accounts to satisfy obligations in the joint account or partnership account. The security interest granted by this Agreement is consensual and is in addition to the Credit Union’s right of setoff. However, the right of setoff and security interest may not apply to your account if: (a)it is an IRA or a tax-deferred ▇▇▇▇▇ Retirement Account; (b) the debt is created by a consumer credit transaction under a credit card plan; or (c) the debtor’s right of withdrawal arises only in a representative capacity.

Setoff and Security Interest. You agree that FSB may, without prior notice or demand, apply or setoff the funds in FSB may use funds held in joint accounts to repay the debts on which any one of you is liable, whether jointly with another or individually. FSB may charge any such debt against your account at any time, without regard to the origin of deposits to the account or beneficial ownership of the funds. Funds held in individual accounts may be used to repay your debts, whether such debts are owed jointly with another or individually. Your debts include: those owed by you arising out of another joint account of which you are a joint account holder, even if they are not directly incurred by you; those on which you are secondarily liable; or any amounts for which FSB becomes liable to any governmental agency or department or any company as a result of recurring payments credited to any of your accounts after the death, legal incapacity, or other termination of entitlement of the intended recipient of such funds. If FSB uses funds from a time deposit account, the funds withdrawn are subject to the early withdrawal penalty. If you or any joint account holder authorizes withdrawals not presented for payment until after the drawer’s death, or if any joint account holder is indebted to FSB at the time of his or her death, FSB is authorized to pay such withdrawals and exercise its right of setoff against the account after such death, notwithstanding any rights that a surviving joint account holder, POD payee, or beneficiary of an ITF or “trustee for” account may have to the funds in the account. Placing Stop Payment Orders. You may request a stop payment order on ▇▇▇▇.▇▇▇, by mail, or by calling FSB. FSB may require you to complete a form authorizing the order. You must give FSB sufficient notice so that FSB has a reasonable period of time to act on your request. For electronic funds transfers you must notify FSB in time for FSB to receive your request three business days or more before the payment is scheduled to be made. A stop payment order takes effect only after FSB has a reasonable opportunity to verify that the item is unpaid. FSB may charge you a fee for each stop payment order and each renewal of the order. To place a stop payment order, FSB requires the item number. FSB may also require the account number, the exact amount of the item, the date of the item, the name of the person who signed or authorized the item, and the name of the party to whom the item was made payable. FSB may...

Setoff and Security Interest. Setoff refers to our right to reduce or satisfy any debt or obligation you owe us in any Bank of Hawaii account, including any loan or overdraft amount, by taking all or part of any positive Available Balances you keep in another Account. If you owe a debt to us, you grant us a security interest in your Account and the right to setoff funds in your Account to the fullest extent allowed by law regardless of the source of funds in your Account. This includes any federal or state benefit payments, such as Social Security benefits that are directly deposited into your Account. This right does not apply to IRA Plans, ▇▇▇▇▇ retirement Accounts, or to consumer credit card debt. If you have a joint Account, we may setoff some or all of the funds in your joint account to satisfy the debts or obligations of any joint accountholder, whether that debt is owed by them individually or with others. If any federal or state benefits or other credits are deposited into your Account and the payor requires us to return the funds, we may setoff against your Account to recover the funds.

Setoff and Security Interest. We may set off funds in any and all of your Accounts with the same ownership for any direct, indirect and/or acquired obligations that any owner owes us, to the fullest extent permitted by law and regardless of the source of the funds in the Accounts. If you owe a debt to us, you grant us a security interest in your Account(s) and the right to setoff funds in your Account(s) with the same ownership to the fullest extent allowed by law regardless of the source of funds in your Account(s). This includes any federal or state benefit payments that are directly deposited into your Account(s). This right does not apply to Individual Retirement Account (IRA) Plans, Simplified Employee Pension (SEP) retirement Accounts or ▇▇▇▇▇ retirement Accounts. If any federal or state benefits or other credits are deposited into your Account and the payor requires us to return the funds, we may setoff against any and all of your Account(s) with the same ownership to recover the funds.

Setoff and Security Interest. If your Account has a negative balance for fifteen (15) days or more, we have the right under the law to use the money from another account you have with us at the Bank to pay the debt (this right is known as the right of “setoff”). In addition, you grant us a security interest in your Account so that the balance in the Account is collateral for any current or future obligation you owe us (whether as a borrower, a guarantor, a debtor or otherwise). We may use the money to pay the debt even if withdrawal results in an interest penalty or insufficient funds to cover outstanding items. The security interest granted by this Agreement is consensual and is in addition to our right of setoff. However, the right of setoff and security interest may not apply to your other account with us if: (1) it is an IRA or a tax-deferred ▇▇▇▇▇ Retirement Account (but this does not affect our rights under any consensual security interest); (2) the debt is created by a consumer credit transaction under a credit card plan; or (3) our records demonstrate to our satisfaction that your right of withdrawal arises only in a representative capacity (for example, only as an authorized signer, attorney-in-fact, or a fiduciary).

Setoff and Security Interest. If you ever owe the Bank money as a borrower, guarantor or otherwise, and it becomes due, the Bank has the right under the law (called “setoff”) and under this agreement (by which you grant the Bank a security interest in your deposit account) to use the money from your account to pay the debt, even if withdrawal results in an interest penalty or dishonor of checks, ACH, Debit Card, or Online Transactions. In the case of a partnership or joint account, each partner or joint owner agrees that the Bank may use the money in the account to satisfy any one of their individual obligations. Similarly, each partner or joint owner agrees that the Bank may use the money in their individual accounts to satisfy obligations in the joint account or partnership account. The security interest granted by this agreement is consensual and is in addition to the Bank’s right of setoff. However, the setoff and security interest may not apply to your account if (a) it is an IRA or a tax-deferred ▇▇▇▇▇ Retirement Account (b) the debt is created by a consumer credit transaction under a credit card plan, or (c) the debtor’s right of withdrawal arises only in a representative capacity.

Setoff and Security Interest. If you ever owe us money as a borrower, guarantor or otherwise, and it becomes due, we have the right under the law (called “setoff’) and under the terms of this Agreement to use money from your Accounts to pay the debt. Under this Agreement, you grant us a security interest in your Accounts to use money from your Accounts, except where prohibited by law, to pay a debt you owe to us that has become due. We may use such funds (the “Collectible Funds”) to pay the debt you owe to us even if withdrawal results in a dividend penalty or dishonor of checks. In the case of a joint Account, each joint Account owner authorizes us to exercise setoff rights on all Collectible Funds in the joint Account, even if only one, or less than all, of the joint owners is the debtor to us; these rights exist irrespective of who contributes funds to the joint Account. Similarly, each joint owner of a Joint Account agrees that we may use the Collectible Funds in any of their individual Accounts to satisfy obligations in the joint Account or joint obligations shared by both joint owners. The security interest granted by this Agreement is consensual and is in addition to our right of setoff. However, the right of setoff and security interest shall not apply to your Account if: (a)it is an IRA or a tax-deferred ▇▇▇▇▇ Retirement Account; (b) the debt is created by a consumer credit transaction under a credit card plan; or (c) the debtor’s right of withdrawal arises only in a representative capacity.