Common use of Protected Debts Clause in Contracts

Protected Debts. 3.5 If a Customer tries to pay a Protected Debt by a method (including a cheque) requiring presentation for payment and payment is refused on first presentation that Customer’s Covered Limit will automatically become as it was when We received the Debt Schedule on which that Protected Debt was included. If such attempted payment covered more than one Protected Debt the Covered Limit will automatically reduce to the lowest limit for that Customer when We received any Debt Schedule on which any such Protected Debt was included.

Protected Debts. 3.5 If a Customer tries to pay a Protected Debt by a method (including a cheque) requiring presentation for payment and payment is refused on first presentation that CustomerXxxxxxxx’s Covered Limit will automatically become as it was when We received the Debt Schedule on which that Protected Debt was included. If such attempted payment covered more than one Protected Debt the Covered Limit will automatically reduce to the lowest limit for that Customer when We received any Debt Schedule on which any such Protected Debt was included.