Common use of Compliance with the Rules and Applicable Law Clause in Contracts

Compliance with the Rules and Applicable Law. The Company represents and warrants that it will comply with the Rules (including proper SEC codes), United States laws, and other applicable laws, regulations and regulatory requirements and that it will not transmit any Entry or engage in any act or omission that violates or causes Glenwood State Bank to violate the Rules, applicable laws, regulations or regulatory requirements, including, without limitation, regulations of the Office of Foreign Asset Control (OFAC), sanctions or executive orders, or any program administered by the United States Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”), the Board of Governors of the Federal Reserve and the Federal Financial Institutions Examination Council (“FFIEC”). Glenwood State Bank may terminate or suspend this Agreement upon written notice and identification of a material breach by Company of the Rules. Furthermore, Glenwood State Bank shall have the right to initiate an audit of Company procedures for compliance with this Agreement and the Rules, upon written notification to Company. Glenwood State Bank will charge the Company with any fines or penalties imposed by OFAC, NACHA or any organization which are incurred as a result of non-compliance by Company and Company agrees to fully reimburse and/or indemnify Glenwood State Bank for such charges or fines.