Common use of WHOLESALE RESERVE ACCOUNT Clause in Contracts

WHOLESALE RESERVE ACCOUNT. Statesman shall place in a reserve account (the "Wholesale Reserve Account") an amount not to exceed one-eighth of one percent (0.125%) of the aggregate outstanding balance on each invoice it elects to purchase, provided, however that in no event shall any additional amount be deducted from the amount paid to the Cooperative under this Article IV or placed in the Wholesale Reserve Account if the aggregate amount in the Wholesale Reserve Account is equal to or greater than one quarter of one percent (0.25%) of the aggregate unpaid balance of all Wholesale Accounts which Statesman has purchased from the Cooperative (including the invoices being purchased on such date). Funds in the Wholesale Reserve Account need not be segregated from other funds of Statesman. If at the end of any fiscal year of Statesman, the balance in the Wholesale Reserve Account after charges to the Reserve Account as provided in Section 4.05 is greater than one-eighth of one percent (0.125%) of the balance owing on Wholesale Accounts which Statesman has purchased from the Cooperative, no Event of Default shall have occurred and be continuing and no obligation of the Cooperative to Statesman is then due and payable, Statesman will upon request of the Cooperative remit such excess to the Cooperative.

WHOLESALE RESERVE ACCOUNT. Statesman shall place in a ------------------------- reserve account (the "Wholesale Reserve Account") an amount not to exceed one-one- eighth of one percent (0.125%) of the aggregate outstanding balance on each invoice it elects to purchase, provided, however that in no event shall any additional amount be deducted from the amount paid to the Cooperative under this Article IV or placed in the Wholesale Reserve Account if the aggregate amount in the Wholesale Reserve Account is equal to or greater than one quarter of one percent (0.25%) of the aggregate unpaid balance of all Wholesale Accounts which Statesman has purchased from the Cooperative (including the invoices being purchased on such date). Funds in the Wholesale Reserve Account need not be segregated from other funds of Statesman. If at the end of any fiscal year of Statesman, the balance in the Wholesale Reserve Account after charges to the Reserve Account as provided in Section 4.05 is greater than one-eighth of one percent (0.125%) of the balance owing on Wholesale Accounts which Statesman has purchased from the Cooperative, no Event of Default shall have occurred and be continuing and no obligation of the Cooperative to Statesman is then due and payable, Statesman will upon request of the Cooperative remit such excess to the Cooperative.