{"component": "clause", "props": {"groups": [{"snippet_links": [{"key": "administrative-agent", "type": "definition", "offset": [0, 20]}, {"key": "on-behalf-of", "type": "clause", "offset": [22, 34]}, {"key": "debit-entries", "type": "clause", "offset": [57, 70]}, {"key": "deposit-accounts", "type": "definition", "offset": [78, 94]}, {"key": "principal-and-interest-payments", "type": "definition", "offset": [152, 183]}, {"key": "other-obligations", "type": "definition", "offset": [191, 208]}, {"key": "payment-arrangement", "type": "clause", "offset": [275, 294]}, {"key": "for-any-reason", "type": "clause", "offset": [309, 323]}, {"key": "payments-due-hereunder", "type": "clause", "offset": [350, 372]}, {"key": "the-applicable", "type": "clause", "offset": [376, 390]}, {"key": "section-10", "type": "clause", "offset": [412, 422]}, {"key": "in-writing", "type": "definition", "offset": [473, 483]}], "size": 3, "snippet": "Administrative Agent, on behalf of Lenders, may initiate debit entries to any Deposit Accounts as authorized on the Automatic Payment Authorization for principal and interest payments or any other Obligations when due. These debits shall not constitute a set-off. If the ACH payment arrangement is terminated for any reason, Borrowers shall make all payments due hereunder at the applicable address specified in Section 10, or as otherwise notified by Administrative Agent in writing.", "samples": [{"hash": "cKmxnYi4QYL", "uri": "/contracts/cKmxnYi4QYL#automatic-payment-authorization", "label": "Loan and Security Agreement (Metacrine, Inc.)", "score": 32.8631057739, "published": true}, {"hash": "2ukyqR2lZzG", "uri": "/contracts/2ukyqR2lZzG#automatic-payment-authorization", "label": "Loan and Security Agreement (Metacrine, Inc.)", "score": 31.6447639465, "published": true}, {"hash": "eJqJg2tmAtj", "uri": "/contracts/eJqJg2tmAtj#automatic-payment-authorization", "label": "Loan and Security Agreement (Metacrine, Inc.)", "score": 31.4996585846, "published": true}], "hash": "b7bcae364c9f932798d10bcca94179c9", "id": 5}, {"snippet_links": [{"key": "payment-to", "type": "clause", "offset": [48, 58]}, {"key": "electronic-funds-transfer", "type": "definition", "offset": [86, 111]}, {"key": "control-of", "type": "definition", "offset": [198, 208]}, {"key": "at-any-time", "type": "clause", "offset": [234, 245]}, {"key": "named-company", "type": "definition", "offset": [304, 317]}, {"key": "the-terms", "type": "definition", "offset": [341, 350]}, {"key": "listed-below", "type": "clause", "offset": [351, 363]}, {"key": "bank-name", "type": "clause", "offset": [365, 374]}, {"key": "checking-account", "type": "definition", "offset": [574, 590]}, {"key": "please-attach-voided-check", "type": "clause", "offset": [651, 677]}, {"key": "expiration-date", "type": "definition", "offset": [756, 771]}, {"key": "one-month", "type": "definition", "offset": [907, 916]}, {"key": "agreement-for", "type": "clause", "offset": [939, 952]}, {"key": "amounts-owing", "type": "definition", "offset": [957, 970]}, {"key": "debit-entries", "type": "clause", "offset": [1056, 1069]}, {"key": "the-financial-institution", "type": "clause", "offset": [1104, 1129]}, {"key": "customer-agrees", "type": "clause", "offset": [1143, 1158]}, {"key": "return-check", "type": "definition", "offset": [1208, 1220]}, {"key": "the-account", "type": "clause", "offset": [1245, 1256]}, {"key": "ach-network", "type": "clause", "offset": [1277, 1288]}, {"key": "notice-to-the-customer", "type": "clause", "offset": [1322, 1344]}, {"key": "the-transaction", "type": "clause", "offset": [1348, 1363]}, {"key": "right-to-have", "type": "clause", "offset": [1557, 1570]}, {"key": "days-after", "type": "definition", "offset": [1739, 1749]}, {"key": "initial-here", "type": "definition", "offset": [1798, 1810]}], "size": 1, "snippet": "I (we) authorize my (our) bank to make my (our) payment to Pinnacle Security, Inc. by Electronic Funds Transfer (EFT) and post it to my (our) account. I (we) understand that I (we) am (are) in full control of my (our) payment, and if at any time I (we) decide to discontinue, I (we) will write the above named Company, and I (we) understand the terms listed below. BANK NAME: ---------------------------------------------------------------- ABA CHECK ROUTING #: ------------------------------------------------------- (First nine-digit number in lower left corner of check) CHECKING ACCOUNT #: ------------------------------------------------------- (Please attach Voided Check) VISA/MC: ------------------------------------------------------------------- EXPIRATION DATE: ----------------------------------------------------------- Pinnacle Security, Inc. is authorized to effect payment monthly beginning one month from the date of this agreement for any amounts owing on my (our)Pinnacle Security. Inc. account, as such amounts become due by initiating debit entries to my (our) accounts indicated at the financial institution named above. Customer agrees and authorizes Company or its agent to debit any return check and/or its charges from the account shown above via the ACH network and/or paper draft without prior notice to the customer of the transaction. I (we) authorize the financial institution to accept any debit entries initiated by Pinnacle Security, Inc. to be debited from the account. After the account has been charged, I (we) have the right to have the amount of an erroneous debit immediately credited to my (our) account by the financial institution up to 15 days following issuance of statement or forty-five (45) days after the account is charged, whichever comes first. (Initial Here) --------------------", "samples": [{"hash": "jKk1sRXhGnn", "uri": "/contracts/jKk1sRXhGnn#automatic-payment-authorization", "label": "Alarm Monitoring & Purchase Agreement (Pinnacle Fund I Inc)", "score": 16.0, "published": true}], "hash": "525e3112557fba5f2e208c571e396c33", "id": 8}, {"snippet_links": [{"key": "the-lender", "type": "clause", "offset": [20, 30]}, {"key": "automatic-deductions", "type": "clause", "offset": [39, 59]}, {"key": "deposit-account", "type": "definition", "offset": [79, 94]}, {"key": "at-lender", "type": "definition", "offset": [134, 143]}, {"key": "to-pay", "type": "clause", "offset": [163, 169]}, {"key": "payments-of-interest", "type": "definition", "offset": [231, 251]}, {"key": "principal-and-interest", "type": "clause", "offset": [272, 294]}, {"key": "the-note", "type": "clause", "offset": [362, 370]}, {"key": "account-no", "type": "definition", "offset": [372, 382]}, {"key": "without-limiting", "type": "clause", "offset": [398, 414]}, {"key": "the-loan-documents", "type": "clause", "offset": [435, 453]}, {"key": "borrower-defaults", "type": "clause", "offset": [496, 513]}, {"key": "obligation-to", "type": "clause", "offset": [521, 534]}, {"key": "funds-in-the-account", "type": "clause", "offset": [572, 592]}, {"key": "payment-in-full", "type": "definition", "offset": [623, 638]}, {"key": "payment-is-due", "type": "clause", "offset": [661, 675]}, {"key": "borrower-shall", "type": "clause", "offset": [682, 696]}, {"key": "responsible-for", "type": "clause", "offset": [700, 715]}, {"key": "late-payment-charges", "type": "definition", "offset": [720, 740]}, {"key": "consequences-of", "type": "definition", "offset": [751, 766]}, {"key": "default-by-borrower", "type": "clause", "offset": [772, 791]}], "size": 3, "snippet": "Borrower authorizes the Lender to make automatic deductions from the following deposit account (the \"Account\") maintained by Borrower at Lender's offices in order to pay, when and as due, all of the regularly scheduled installment payments of interest, principal, or both principal and interest (a \"Payment\") that Borrower is required or obligated to make under the Note: Account No: \u2587\u2587\u2587-\u2587\u2587\u2587\u2587-\u2587\u2587\u2587\u2587 Without limiting any of the terms of the Loan Documents, Borrower acknowledges and agrees that if Borrower defaults in its obligation to make a Payment because the collected funds in the Account are insufficient to make such Payment in full on the date that such Payment is due, then Borrower shall be responsible for all late payment charges and other consequences of such default by Borrower under the terms of the Loan Documents.", "samples": [{"hash": "2UlrTGC4tF9", "uri": "/contracts/2UlrTGC4tF9#automatic-payment-authorization", "label": "Loan Agreement (Ascendant Solutions Inc)", "score": 21.0, "published": true}, {"hash": "i8Ecp7zolSX", "uri": "/contracts/i8Ecp7zolSX#automatic-payment-authorization", "label": "Loan Agreement (Greenhill & Co Inc)", "score": 19.0, "published": true}], "hash": "99da3b17ad20b64ecff8e740a102a04d", "id": 6}, {"snippet_links": [{"key": "payment-due-date", "type": "definition", "offset": [48, 64]}, {"key": "electronic-debit", "type": "clause", "offset": [79, 95]}, {"key": "the-bank-account", "type": "clause", "offset": [101, 117]}, {"key": "other-account", "type": "definition", "offset": [129, 142]}, {"key": "by-borrower", "type": "clause", "offset": [154, 165]}, {"key": "responsible-party", "type": "clause", "offset": [169, 186]}, {"key": "periodic-payment", "type": "clause", "offset": [208, 224]}], "size": 1, "snippet": "Borrower authorizes Lender to initiate, on each Payment Due Date, an automatic electronic debit from the Bank Account and/or any other account designated by Borrower or Responsible Party in the amount of the Periodic Payment; provided, however, that if a", "samples": [{"hash": "66ekzghbnZC", "uri": "/contracts/66ekzghbnZC#automatic-payment-authorization", "label": "Loan Transaction Agreement", "score": 27.0369606018, "published": true}], "hash": "8fe81e3f1a09dd5eba19446c38679b28", "id": 9}, {"snippet_links": [{"key": "merchant-authorizes", "type": "clause", "offset": [0, 19]}, {"key": "automatic-transfer-of-funds", "type": "clause", "offset": [39, 66]}, {"key": "credit-account", "type": "definition", "offset": [86, 100]}, {"key": "sufficient-funds", "type": "definition", "offset": [101, 117]}, {"key": "to-pay", "type": "clause", "offset": [118, 124]}, {"key": "monthly-invoice", "type": "definition", "offset": [134, 149]}, {"key": "services-provided", "type": "definition", "offset": [162, 179]}, {"key": "this-agreement", "type": "clause", "offset": [186, 200]}, {"key": "merchant-will", "type": "clause", "offset": [202, 215]}, {"key": "exhibit-b", "type": "definition", "offset": [260, 269]}], "size": 2, "snippet": "Merchant authorizes DotCom to initiate automatic transfer of funds or debit from your credit account sufficient funds to pay Dotcom\u2019s monthly invoice and for all services provided under this Agreement. Merchant will sign the Automatic Payment Authorization in Exhibit B, attached hereto.", "samples": [{"hash": "fPWznvYi6gl", "uri": "/contracts/fPWznvYi6gl#automatic-payment-authorization", "label": "Gift Card Agreement", "score": 20.0499649048, "published": true}, {"hash": "7o8bB9AcraK", "uri": "/contracts/7o8bB9AcraK#automatic-payment-authorization", "label": "Gift Card Agreement", "score": 19.6269683838, "published": true}], "hash": "13cc4caf8080913e8d786465170f725d", "id": 7}, {"snippet_links": [{"key": "delaware-corporation", "type": "clause", "offset": [66, 86]}, {"key": "borrower-representative", "type": "clause", "offset": [89, 112]}, {"key": "the-loan-agreement", "type": "clause", "offset": [213, 231]}, {"key": "bank-or-financial-institution", "type": "definition", "offset": [240, 269]}, {"key": "clearing-house", "type": "clause", "offset": [336, 350]}, {"key": "credit-entries", "type": "definition", "offset": [398, 412]}, {"key": "the-deposit", "type": "clause", "offset": 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"offset": [2908, 2923]}, {"key": "by-the-holder", "type": "clause", "offset": [2929, 2942]}, {"key": "according-to", "type": "definition", "offset": [2956, 2968]}, {"key": "terms-of", "type": "definition", "offset": [2973, 2981]}, {"key": "section-22", "type": "clause", "offset": [2982, 2993]}, {"key": "promise-to-pay-interest", "type": "clause", "offset": [3059, 3082]}, {"key": "in-accordance-with", "type": "definition", "offset": [3083, 3101]}, {"key": "section-23", "type": "clause", "offset": [3102, 3113]}, {"key": "in-no-event-shall", "type": "clause", "offset": [3137, 3154]}, {"key": "maximum-rate", "type": "clause", "offset": [3185, 3197]}, {"key": "applicable-law", "type": "definition", "offset": [3214, 3228]}, {"key": "payments-of-principal", "type": "definition", "offset": [3234, 3255]}, {"key": "other-amounts-due", "type": "clause", "offset": [3274, 3291]}, {"key": "the-obligations", "type": "clause", "offset": [3357, 3372]}, {"key": "secured-promissory-note", "type": "definition", "offset": [3391, 3414]}, {"key": "subject-to", "type": "clause", "offset": [3509, 3519]}, {"key": "section-91", "type": "definition", "offset": [3552, 3563]}, {"key": "hereby-waives", "type": "clause", "offset": [3601, 3614]}, {"key": "notice-of-default", "type": "clause", "offset": [3636, 3653]}, {"key": "notice-of-payment", "type": "definition", "offset": [3667, 3684]}, {"key": "in-connection-with", "type": "clause", "offset": [3743, 3761]}, {"key": "the-execution", "type": "clause", "offset": [3762, 3775]}, {"key": "enforcement-of", "type": "clause", "offset": [3823, 3837]}, {"key": "granted-to", "type": "definition", "offset": [3911, 3921]}, {"key": "benefit-of-lenders", "type": "clause", "offset": [3958, 3976]}, {"key": "certain-other-loan-documents", "type": "clause", "offset": [3990, 4018]}, {"key": "section-11", "type": "definition", "offset": [4033, 4043]}, {"key": "for-purposes-of-sections", "type": "clause", "offset": [4109, 4133]}, {"key": "original-issue-discount", "type": "definition", "offset": [4198, 4221]}, {"key": "please-contact", "type": "clause", "offset": [4224, 4238]}, {"key": "by-telephone", "type": "definition", "offset": [4252, 4264]}, {"key": "information-regarding", "type": "clause", "offset": [4282, 4303]}, {"key": "issue-price", "type": "clause", "offset": [4308, 4319]}, {"key": "issue-date", "type": "definition", "offset": [4321, 4331]}, {"key": "yield-to-maturity", "type": "clause", "offset": [4371, 4388]}], "size": 12, "snippet": "Effective as of [___________________], ALTO NEUROSCIENCE, INC., a Delaware corporation (\u201cBorrower Representative\u201d) hereby authorizes K2 HEALTHVENTURES LLC (\u201cK2\u201d), or any affiliate acting on its behalf pursuant to the Loan Agreement and the bank or financial institution named below (\u201cBank\u201d) to automatically debit through the Automatic Clearing House (ACH) from, and initiate variable debit and/or credit entries to, the deposit, checking or savings accounts as designated below maintained in the name of a Borrower, and to cause electronic funds transfers to an account of K2 to be applied to the payment of any and all amounts due under the Loan and Security Agreement, dated December 16, 2022 (as amended, restated, supplemented or otherwise modified, from time to time, the \u201cAgreement\u201d), among Borrower Representative, and any other borrowers party thereto from time to time, K2, and any other lender from time to time party thereto (collectively, \u201cLenders\u201d), and Ankura Trust Company, LLC, as collateral agent for Lenders, including without limitation, principal, interest, fees, expenses and charges (including Lender Expenses). Capitalized terms not otherwise defined herein, have the meanings given in the Agreement. This Authorization shall remain in effect until the Loan Agreement has been terminated. This Authorization is executed as of the date set forth above by the undersigned authorized representative of Borrower Representative: By: Name: Title: [[THE SECURITY REPRESENTED BY THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, OR APPLICABLE STATE SECURITIES LAWS. THIS SECURITY MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER SAID ACT, OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SAID ACT INCLUDING, WITHOUT LIMITATION, PURSUANT TO RULE 144 UNDER SAID ACT.]] $[ ] [ , 20 ] FOR VALUE RECEIVED, the undersigned, [ ], a [ ] (\u201cBorrower Representative\u201d), and each Person party thereto as a borrower from time to time (collectively, \u201cBorrowers\u201d, and each, a \u201cBorrower\u201d), hereby unconditionally, jointly and severally, promise to pay to [ ] (together with its successors and assigns, the \u201cHolder\u201d) at the times, in the amounts and at the address set forth in the Loan and Security Agreement, dated as of December 16, 2022 (as amended, restated, supplemented or otherwise modified from time to time, the \u201cLoan Agreement\u201d; capitalized terms used herein without definition have the meanings assigned to such terms in the Loan Agreement), among Borrowers, the Holder, any other lender from time to time party thereto (collectively, \u201cLenders\u201d), and ANKURA TRUST COMPANY, LLC, as collateral agent for Lenders (in such capacity, \u201cCollateral Trustee\u201d), the lesser of (i) the principal amount of [ ] Dollars ($[ ]) and (ii) the aggregate outstanding principal amount of Loans made by the Holder to Borrowers according to the terms of Section 2.2 of the Loan Agreement. Borrowers further, jointly and severally, promise to pay interest in accordance with Section 2.3 of the Loan Agreement. In no event shall interest hereunder exceed the maximum rate permitted under applicable law. All payments of principal, interest and any other amounts due shall be made as set forth in Section 2.5 of the Loan Agreement. The Obligations evidenced by this Secured Promissory Note (as amended, restated, supplemented or otherwise modified from time to time, this \u201cNote\u201d) are subject to acceleration in accordance with Section 9.1 of the Loan Agreement. Each Borrower hereby waives presentment, demand, notice of default or dishonor, notice of payment and nonpayment, protest and all other demands and notices in connection with the execution, delivery, acceptance, performance, default or enforcement of this Note. This Note is secured by a security interest in the Collateral granted to Collateral Trustee, for the ratable benefit of Lenders, pursuant to certain other Loan Documents. The terms of Section 11 of the Loan Agreement are incorporated herein, mutatis mutandis. For purposes of Sections 1272, 1273 and 1275 of the IRC, this Note is being issued with \u201coriginal issue discount.\u201d Please contact [ ], [ ], or by telephone at [ ] to obtain information regarding the issue price, issue date, amount of original issue discount and yield to maturity.", "samples": [{"hash": "ivMbs9N7Y3m", "uri": "/contracts/ivMbs9N7Y3m#automatic-payment-authorization", "label": "Loan and Security Agreement (Alto Neuroscience, Inc.)", "score": 35.0287475586, "published": true}, {"hash": "eeRQVlizeko", "uri": "/contracts/eeRQVlizeko#automatic-payment-authorization", "label": "Loan and Security Agreement (Alto Neuroscience, Inc.)", "score": 34.8891181946, "published": true}], "hash": "c7b6ebab7b23881f8ebb6fc3f27264dd", "id": 1}, {"snippet_links": [{"key": "the-lender", "type": "clause", "offset": [20, 30]}, {"key": "automatic-deductions", "type": "clause", "offset": [39, 59]}, {"key": "auto-debit", "type": "definition", "offset": [62, 72]}, {"key": "deposit-account", 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{"key": "late-payment-charges", "type": "definition", "offset": [712, 732]}, {"key": "consequences-of", "type": "definition", "offset": [743, 758]}, {"key": "default-by-borrower", "type": "clause", "offset": [764, 783]}], "size": 7, "snippet": "Borrower authorizes the Lender to make automatic deductions (\u201cAuto Debit\u201d) from the following deposit account (the \u201cAccount\u201d) maintained by Borrower at Lender\u2019s offices in order to pay, when and as due, all installment payments of interest, and/or principal, renewal, modification or other fees or payments (a \u201cPayment\u201d) that Borrower is required or obligated to pay Lender under the Note: Without limiting any of the terms of the Loan Documents, Borrower acknowledges and agrees that if Borrower defaults in its obligation to make a Payment because the collected funds in the Account are insufficient to make such Payment in full on the date that such Payment is due, then Borrower shall be responsible for all late payment charges and other consequences of such default by Borrower under the terms of the Loan Documents.", "samples": [{"hash": "5eDbG7dtCLn", "uri": "/contracts/5eDbG7dtCLn#automatic-payment-authorization", "label": "Loan Agreement (PJT Partners Inc.)", "score": 29.8350448608, "published": true}, {"hash": "cjUSRtXlGLD", "uri": "/contracts/cjUSRtXlGLD#automatic-payment-authorization", "label": "Loan Agreement (Evercore Partners Inc.)", "score": 26.4976043701, "published": true}], "hash": "6d0c94b1d52f3dcd772adbe1659a4ada", "id": 2}, {"snippet_links": [{"key": "exhibit-a", "type": "clause", "offset": [49, 58]}, {"key": "the-loan-agreement", "type": "clause", "offset": [62, 80]}, {"key": "to-provide", "type": "clause", "offset": [99, 109]}, {"key": "payments-from-borrower", "type": "clause", "offset": [125, 147]}, {"key": "modification-fees", "type": "clause", "offset": [183, 200]}, {"key": "due-and-owing", "type": "definition", "offset": [228, 241]}, {"key": "by-borrower", "type": "clause", "offset": [242, 253]}, {"key": "to-lender", "type": "definition", "offset": [254, 263]}, {"key": "the-loan-documents", "type": "clause", "offset": [270, 288]}], "size": 6, "snippet": "The \u201cAutomatic Payment Authorization\u201d section of Exhibit A of the Loan Agreement is hereby amended to provide that automatic Payments from Borrower\u2019s Account shall include renewal or modification fees or other fees and payments due and owing by Borrower to Lender under the Loan Documents.", "samples": [{"hash": "ccmNobaOErD", "uri": "/contracts/ccmNobaOErD#automatic-payment-authorization", "label": "Renewal and Modification Agreement", "score": 31.3408622742, "published": true}, {"hash": "kP3OwPIwmI0", "uri": "/contracts/kP3OwPIwmI0#automatic-payment-authorization", "label": "Renewal and Modification Agreement", "score": 30.3408622742, "published": true}, {"hash": "9cPVOvE3dEd", "uri": "/contracts/9cPVOvE3dEd#automatic-payment-authorization", "label": "Modification Agreement (Greenhill & Co Inc)", "score": 26.603012085, "published": true}], "hash": "71268edb72393a1c6df523ec38a1e6c2", "id": 3}, {"snippet_links": [{"key": "automatic-deductions", "type": "clause", "offset": [35, 55]}, {"key": "auto-debit", "type": "definition", "offset": [58, 68]}, {"key": "deposit-account", "type": "definition", "offset": [90, 105]}, {"key": "at-lender", "type": "definition", "offset": [145, 154]}, {"key": "to-pay", "type": "clause", "offset": [174, 180]}, {"key": "payments-of-interest", "type": "definition", "offset": [215, 235]}, {"key": "other-fees", "type": "definition", "offset": [280, 290]}, {"key": "documents-provided", "type": "clause", "offset": [385, 403]}, {"key": "from-borrower", "type": "clause", "offset": [477, 490]}, {"key": "not-scheduled", "type": "clause", "offset": [661, 674]}, {"key": "borrower-shall", "type": "clause", "offset": [682, 696]}, {"key": "prior-to-the", "type": "clause", "offset": [712, 724]}, {"key": "the-fees", "type": "clause", "offset": [814, 822]}, {"key": "account-no", "type": "definition", "offset": [849, 859]}, {"key": "without-limiting", "type": "clause", "offset": [861, 877]}, {"key": "terms-of-the-loan", "type": "clause", "offset": [889, 906]}, {"key": "borrower-defaults", "type": "clause", "offset": [959, 976]}, {"key": "obligation-to", "type": "clause", "offset": [984, 997]}, {"key": "funds-in-the-account", "type": "clause", "offset": [1035, 1055]}, {"key": "payment-in-full", "type": "definition", "offset": [1086, 1101]}, {"key": "payment-is-due", "type": "clause", "offset": [1124, 1138]}, {"key": "responsible-for", "type": "clause", "offset": [1163, 1178]}, {"key": "late-payment-charges", "type": "definition", "offset": [1183, 1203]}, {"key": "consequences-of", "type": "definition", "offset": [1214, 1229]}, {"key": "default-by-borrower", "type": "clause", "offset": [1235, 1254]}], "size": 6, "snippet": "Borrower authorizes Lender to make automatic deductions (\u201cAuto Debit\u201d) from the following deposit account (the \u201cAccount\u201d) maintained by Borrower at Lender\u2019s offices in order to pay, when and as due, all installment payments of interest, and/or principal, renewal, modification or other fees or payments (a \u201cPayment\u201d) that Borrower is required or obligated to pay Lender under the Loan Documents provided, that Lender shall notify Borrower of any amounts automatically deducted from Borrower\u2019s Account (which notice may be delivered concurrently with any Auto Debit), and provided, further, that no Auto Debit shall be effected for any fees or payments that are not scheduled unless Borrower shall have received, prior to the making of the Auto Debit, a written invoice, which may be delivered via email, detailing the fees or payments that are due: Account No: Without limiting any of the terms of the Loan Documents, Borrower acknowledges and agrees that if Borrower defaults in its obligation to make a Payment because the collected funds in the Account are insufficient to make such Payment in full on the date that such Payment is due, then Borrower shall be responsible for all late payment charges and other consequences of such default by Borrower under the terms of the Loan Documents.", "samples": [{"hash": "ibE65agutF8", "uri": "/contracts/ibE65agutF8#automatic-payment-authorization", "label": "Multi Draw Term Loan and Security Agreement (Hamilton Lane INC)", "score": 31.2286109924, "published": true}, {"hash": "9mF6Y0Wga95", "uri": "/contracts/9mF6Y0Wga95#automatic-payment-authorization", "label": "Revolving Loan and Security Agreement", "score": 30.3408622742, "published": true}, {"hash": "h1iHcIbQL6f", "uri": "/contracts/h1iHcIbQL6f#automatic-payment-authorization", "label": "Revolving Loan and Security Agreement (Hamilton Lane INC)", "score": 28.646818161, "published": true}], "hash": "875af6da2e85b7a1f6a10bad8613b68f", "id": 4}, {"snippet_links": [{"key": "automatic-deductions", "type": "clause", "offset": [33, 53]}, {"key": "deposit-account", "type": "definition", "offset": [73, 88]}, {"key": "by-borrower", "type": "clause", "offset": [123, 134]}, {"key": "at-bank", "type": "clause", "offset": [135, 142]}, {"key": "to-pay", "type": "clause", "offset": [162, 168]}, {"key": "payments-of-interest", "type": "definition", "offset": [230, 250]}, {"key": "principal-and-interest", "type": "clause", "offset": [271, 293]}, {"key": "automatic-payment", "type": "clause", "offset": [299, 316]}, {"key": "the-note", "type": "clause", "offset": [372, 380]}, {"key": "account-no", "type": "definition", "offset": [382, 392]}, {"key": "to-provide", "type": "clause", "offset": [418, 428]}, {"key": "prior-written-notice", "type": "clause", "offset": [457, 477]}], "size": 1, "snippet": "Borrower authorizes Bank to make automatic deductions from the following deposit account (\u201cBorrower\u2019s Account\u201d) maintained by Borrower at Bank\u2019s offices in order to pay, when and as due, all of the regularly scheduled installment payments of interest, principal, or both principal and interest (an \u201cAutomatic Payment\u201d) that Borrower is required or obligated to make under the Note: Account No: 96600700608 Bank agrees to provide Borrower with ten (10) days prior written notice before making any such automatic deductions.", "samples": [{"hash": "iW7JVhkjB5a", "uri": "/contracts/iW7JVhkjB5a#automatic-payment-authorization", "label": "Loan and Security Agreement (Mountain Acquisition Corp.)", "score": 21.684463501, "published": true}], "hash": "08b723bcc0e05ad45c573f225eb4cf43", "id": 10}], "next_curs": "CmgSYmoVc35sYXdpbnNpZGVyY29udHJhY3RzckQLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IihhdXRvbWF0aWMtcGF5bWVudC1hdXRob3JpemF0aW9uIzAwMDAwMDBhDKIBAmVuGAAgAA==", "clause": {"size": 55, "title": "Automatic Payment Authorization", "parents": [["miscellaneous", "Miscellaneous"], ["successors", "Successors"], ["loan-and-terms-of-payment", "Loan and Terms of Payment"], ["account-authorizations", "Account Authorizations"], ["modification-of-loan-documents", "Modification of Loan Documents"]], "children": [["miscellaneous", "Miscellaneous"], ["revoking-this-authorization", "Revoking this Authorization"], ["authorization-to-correct-errors-and-modify-payments", "Authorization to Correct Errors and Modify Payments"], ["bank-imposed-fees", "Bank-Imposed Fees"], ["revocation-of-authorization", "Revocation of Authorization"]], "id": "automatic-payment-authorization", "related": [["payment-authorization", "Payment Authorization", "Payment Authorization"], ["payment-authorization-and-payment-remittance", "Payment Authorization and Payment Remittance", "Payment Authorization and Payment Remittance"], ["agent-authorization-form", "AGENT AUTHORIZATION FORM", "AGENT AUTHORIZATION FORM"], ["required-consent", "Required Consent", "Required Consent"], ["authorization-etc", "Authorization, Etc", "Authorization, Etc"]], "related_snippets": [], "updated": "2025-12-18T05:30:42+00:00", "also_ask": ["What safeguards should be included to prevent unauthorized withdrawals?", "How can parties negotiate limits or conditions on automatic payments?", "What are the key legal requirements for enforceability of automatic payment clauses?", "How do automatic payment authorizations compare across relevant jurisdictions?", "What are the most common disputes or litigation risks arising from these clauses?"], "drafting_tip": "Specify payment triggers and amounts to prevent disputes, require clear revocation terms to protect parties' rights, and define notification procedures to ensure transparency.", "explanation": "The Automatic Payment Authorization clause allows a party to automatically deduct payments from another party\u2019s designated account as they become due under the agreement. Typically, this clause requires the payer to provide bank account details and consent to recurring withdrawals, which may cover regular fees, installments, or other scheduled payments. Its core function is to streamline the payment process, reduce administrative delays, and ensure timely fulfillment of financial obligations, thereby minimizing the risk of missed or late payments."}, "json": true, "cursor": ""}}