Hold Account. EVERTEC will establish the Hold Account at BPPR. EVERTEC will monitor daily Merchant activity and if, in its sole judgment, certain Merchants or certain Transactions are likely fraudulent or otherwise not in compliance with applicable Rules, EVERTEC will immediately notify BPPR of such activity. BPPR shall change the Merchant bank account information to cause such Merchant funds to be deposited into the Hold Account. EVERTEC will thereupon promptly investigate each such suspicious incident and promptly notify BPPR of the result of each such investigation. EVERTEC will, on a monthly basis, notify BPPR of all cumulative Merchant Losses so discovered and verified and BPPR shall transfer an equivalent amount of funds from the Hold Account or any Merchant Reserve Account, at EVERTEC’s request, to the Operating Account. If in any case EVERTEC’s investigation determines that no violation of applicable Rules and no Merchant Losses have occurred, EVERTEC will promptly instruct BPPR to release to the Merchant’s DDAs any funds diverted to the Hold Account because of the alleged violation to the Merchant’s DDA. EVERTEC shall have view-only access to the Hold Account and the EVERTEC Reserve Account. EVERTEC shall not have the ability to withdraw funds from either the Hold Account or the EVERTEC Reserve Account.
Hold Account. EVERTEC shall open and maintain a non-interest-bearing deposit account at BPPR for diversion of Merchant funds in suspected cases of fraudulent Transactions or serious violation(s) of applicable Rules by such Merchant (the “Hold Account”). EVERTEC will monitor daily Merchant activity and if, in its sole judgment, certain Merchants or certain Transactions are likely fraudulent or otherwise not in compliance with applicable Rules, EVERTEC will cause such Merchant funds to be deposited into the Hold Account. If EVERTEC cannot cause such Merchant funds to be deposited into the Hold Account, EVERTEC will immediately notify BPPR of such activity. Subject to BPPR’s receipt of such notification and any reasonably requested supporting documentation, BPPR will promptly execute a hold on such Merchant’s DDA and BPPR will transfer the Merchant funds from the Merchant’s DDA to the Hold Account, in each case, subject to the terms and conditions of the applicable agreement(s) with the Merchant; provided, for the avoidance of doubt, that BPPR will have no obligation to transfer any funds to the Hold Account in the absence of a specific instruction by EVERTEC to do so. EVERTEC will thereupon promptly investigate each such suspicious incident and promptly notify BPPR of the result of each such investigation. EVERTEC will, on a monthly basis, notify BPPR of all cumulative Merchant Losses so discovered and verified. EVERTEC shall transfer an equivalent amount of funds from the Hold Account or any Merchant Reserve Account to the Operating Account and shall reasonably promptly provide BPPR with a written report reconciling the balance of the Hold Account with the amount of such Merchant Losses. If in any case EVERTEC’s investigation determines that no violation of applicable Rules and no Merchant Losses have occurred, EVERTEC will promptly release to the Merchant’s DDAs any funds transferred to the Hold Account on the basis of the suspected violation to the Merchant’s DDA. EVERTEC shall have full access to the Hold Account and shall have the ability to withdraw funds therefrom for the purpose of releasing funds to Merchant DDAs in accordance with this Section 2.11.
Hold Account. The separate Eligible Account created and ------------------------ initially maintained by the Trustee pursuant to Section 4.05 in the name of the Trustee for the benefit of the Holders of the Class I A-1 Certificates. Funds in the Class I A-1 Hold Account shall be held in trust for the aforementioned Certificateholders for the uses and purposes set forth in this Agreement.
