Dormant Fee Clause Samples
A Dormant Fee clause establishes a charge that is applied when an account or service remains inactive for a specified period. Typically, this clause outlines the conditions under which an account is considered dormant, such as no transactions or user activity for six or twelve months, and details the amount and frequency of the fee imposed. Its core practical function is to incentivize account holders to maintain activity and to compensate the service provider for the administrative costs of maintaining inactive accounts.
Dormant Fee. Any account that it has available balance and it has been open throughout a period of 5 years (60 months) or more and during that period no transactions have been carried out, then the account would be considered by the Company as a ‘Dormant Account’. As soon as the account is identified as Dormant, the Company has the right to notify the Client that the account will be deleted and the funds will be returned back to the origin bank account. In such event the Client has five (5) business days to contact the Company and request non-deletion of the account. If request for non-deletion is submitted the Client shall be required to submit updated verification documents for KYC and due diligence purposes within a time frame specified by the Company, in order to maintain the account active.
Dormant Fee. Accounts in which there have been no trading activity for a period of twelve (12) consecutive months will be considered by the Company as inactive. Inactive accounts are charged with a quarterly maintenance fee of US$15 or the account’s entire Equity if the Equity is less than US$15. The first maintenance fee will be charged at the beginning of the calendar quarter which follows the classification of the account as inactive and any further maintenance fee shall be charged upon each calendar quarter (3 months) thereafter, provided that the account will remain to be classified as inactive. There will be no charge if the account’s Equity reaches zero.