Common use of Settlements and Dishonoring of the Instruments Accepted Clause in Contracts

Settlements and Dishonoring of the Instruments Accepted. (1) When the Bank accepts deposits of an Instrument in this deposit account, the Bank may not agree to withdrawals of deposits that represent the amounts of the Instruments so accepted if it has not confirmed the settlement thereof after the passage of the due date of collection or return due to dishonoring. When the Bank accepts deposits of an Instrument, the Bank shall take steps to calculate the interest thereon, with the date on which such Instrument is settled as the remittance date.