Deduction and Setoff Clause Samples
Deduction and Setoff. 11.1 If the Borrower fails to repay any debt due hereunder (including due to accelerated maturity declared by the Lender) in accordance with this Contract, the Lender may deduct relevant amount from all RMB and foreign exchange accounts opened by the Borrower with the Lender or any other branch office of Industrial and Commercial Bank of China to set off such debt, until all debts of the Borrower hereunder are fully settled.
11.2 If the currency of deducted amount is different from that of the loan hereunder, the amount will be converted in accordance with applicable exchange rate published by the Lender on the date of such deduction. The Borrower shall bear all interest and other expenses incurred between the deduction date and the actual settlement date (i.e. the date when the debts hereunder are actually settled after the Lender converts the deducted amount into the currency of the loan hereunder in accordance with applicable State policies on administration of foreign exchange), as well as the difference caused by fluctuation of exchange rate during such period.
11.3 If the amount deducted by the Lender is insufficient to repay all debts owed by the Borrower, the Lender may decide the priority sequence of each item to be settled.
Deduction and Setoff. 9.1 When any debt due hereunder in accordance with this Contract, Party B may deduct relevant amount from the ordinary collection account or special collection account opened by Party A with Party B. If the fund saved in the ordinary collection account or special collection account is not enough to meet the amount of repayment. Party B may deduct relevant amount from any accounts opened by Party A with Party B or any other branch office of Shanghai Pudong Development Bank to set off such debt, until all debts of Party A hereunder are fully settled.
9.2 Except any stipulation made by the government, if the amount deducted by Party B is insufficient to repay all debts owed by Party A, the amount deducted shall set off the unpaid expenses, then the due interests, finally the due principal.
9.3 If the currency of deducted amount is different from that of the loan hereunder, the situation shall be dealt with as follows:
9.3.1 If the loan currency is RMB, the amount will be converted to RMB in accordance with applicable bid rate of RMB published by Party B on the date of such deduction.
9.3.2 If the loan currency is not RMB and the deduction currency is RMB, the amount will be converted to the loan currency in accordance with applicable selling rate of the loan currency published by Party B on the date of such deduction.
9.3.3 If both of the loan currency and deduction currency are not RMB, the amount will be first converted to RMB in accordance with applicable bid rate of RMB published by Party B on the date of such deduction. Then the RMB will be further converted to the loan currency in accordance with applicable selling rate of the loan currency published by Party B on the date of such deduction.