Common use of Rolling Reserves Clause in Contracts

Rolling Reserves. MoneySwap shall be responsible for determining the percentage of the Merchant’s Rolling Reserve on a risk based approach. MoneySwap shall hold the reserve deducted from each settlement based on a percentage of average monthly turnover, on a rolling six (6) month basis, subject to below mentioned sub-clauses: i) MoneySwap may, at its sole discretion, withhold the reserve for any reason, including but not limited to as security against future deductions; ii) MoneySwap may delay the settlement it deems to be high risk situations; iii) MoneySwap shall inform the Merchant by email for the percentage of the reserve to be kept as Rolling Reserve; iv) MoneySwap reserves the right to change the percentage of the reserve at its sole discretion and will notify the Merchant by email of this change; v) In case of a Chargeback, MoneySwap shall settle the amount of Chargeback against outstanding settlement; in the event that there are insufficient funds to settle a Chargeback, MoneySwap shall settle the amount from the Rolling Reserve; vi) The Merchant shall not pledge, assign, use as collateral or otherwise encumber the reserve or any other sum withheld by MoneySwap under this Agreement; vii) The Merchant further agrees that upon withholding, the reserve becomes the property of MoneySwap and the Merchant has no legal or equitable rights in respect of the reserve until such time as any period for holding the reserve under this Agreement expires; viii) The parties agree that this clause does not create a relationship of trustee and beneficiary between MoneySwap and the Merchant in respect of the Reserve Account. The rolling six (6) month basis shall be extended to 180 days after the termination of this Agreement.