Common use of Bank Failure Clause in Contracts

Bank Failure. The FDIC requires banks to disclose information to you on how your funds would be treated if a bank failure would occur. Funds that have been swept out of the designated Account will be used to reduce the loan balance; funds remaining in the designated Account are insured deposits up to the FDIC limitation in the event of bank failure.

Appears in 3 contracts

Sources: Treasury Services Agreement, Treasury Services Agreement, Treasury Services Agreement