Common use of Security Funds Clause in Contracts

Security Funds. You may be asked to provide us with Security Funds before or after the Account is opened. By providing us with the required Security Funds and accepting the terms and conditions of this Agreement, you agree that if you breach any term or condition of this Agreement, you authorize us to set off (and effect compensation if you are resident in Quebec) and apply those Security Funds against any amounts you owe to us under this Agreement. We can do all of this without notifying you or sending you a demand for payment. You also agree that: (a) the Security Funds do not constitute a deposit with us (and are therefore not insured under the Canada Deposit Insurance Corporation Act) and will be held in an unsegregated account at a financial institution of our choice; and (b) you have no right at any time to access or withdraw any Security Funds, except in the circumstances described below for returning any remaining Security Funds. You represent and warrant to us that there are no legal or bankruptcy proceedings against you that might affect our ability to hold, withdraw or apply any Security Funds you have provided to us and you agree that you have not transferred, and will not transfer or offer any interest in, any Security Funds to anyone else, except us. Any interest earned on the Security Funds will become our sole property. We will return any remaining Security Funds to you at your last known address in our records within 60 days of the closing of the Account or the date of payment in full of all amounts you owe to us under this Agreement, whichever comes last.