CLEARED BALANCE Clause Samples
The 'Cleared Balance' clause defines the amount of funds in an account that are available for withdrawal or use, after all pending transactions and holds have been processed. In practice, this means that only deposits or credits that have fully cleared the banking system—such as checks that have been processed and are no longer subject to reversal—are included in the cleared balance. This clause ensures that account holders and financial institutions have a clear understanding of which funds are actually accessible, thereby preventing overdrafts and disputes over available funds.
CLEARED BALANCE. The balance on the Client's account or accounts is deemed cleared for all purposes when funds have been received by the Bank from the bank making such payment except for cheques payable abroad for which the Bank has negotiated payment in accordance with international banking practice, in which instance the balance is deemed cleared with recourse from the close of business on the day of such negotiation. In this case, should the Bank not receive the payment of the cheque due from the overseas bank, the Bank reserves the right to reclaim the funds from the Client.
CLEARED BALANCE. 4.1 The balance on your account(s) is deemed cleared for all purposes when funds have been received by us from the bank making such payment, except for cheques payable abroad for which we have negotiated payment in accordance with sub- clause Cl.2 when the balance is deemed cleared from the close of business on the day of such negotiation.