Security Reserve Sample Clauses
A Security Reserve clause requires one party, typically a tenant or borrower, to set aside a specified amount of funds as a financial safeguard for the other party, such as a landlord or lender. This reserve is usually held in a separate account and may be used to cover obligations like unpaid rent, maintenance costs, or loan payments if the primary party defaults or fails to meet certain conditions. By mandating the creation and maintenance of this reserve, the clause provides assurance to the receiving party that funds will be available to address potential shortfalls or breaches, thereby reducing financial risk and promoting contract compliance.
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Security Reserve. 27.1 A rolling security reserve of five per cent (5%) of all amounts due to You may be withheld for up to 6 (six) months from the last day of the month in which the commission would have accrued. The security reserve will serve to guarantee any debt or liability from You to Us pursuant to these Terms and Conditions, such as in connection with Fraud, Chargebacks, Credits, etc.
Security Reserve. In addition to the chargeback rights granted to ▇▇▇▇▇▇ and HMS by Merchant, Merchant hereby authorizes ▇▇▇▇▇▇ to establish a security reserve account (the “Reserve Account”), with or without prior notice to Merchant, at any time prior to, at, or after termination of this Agreement, to ensure ▇▇▇▇▇▇’▇ recovery of any liabilities, of whatever nature, owed it, or reasonably anticipated to be owed it, by Merchant pursuant to this Agreement. ▇▇▇▇▇▇ may establish a Reserve Account whenever ▇▇▇▇▇▇ or HMS, in their sole discretion, believes recovery of such liabilities may be in jeopardy. MERCHANT HEREBY GRANTS TO ▇▇▇▇▇▇ A POSSESSORY SECURITY INTEREST IN
Security Reserve. In the event that the aggregate value of both the Accounts Receivable and the Inventories falls below the aggregate minimum amount allowed, as calculated in accordance with the Advance Rates prescribed in Schedule II by the Security Agent as of the end of each calendar month, then the Borrower shall pay in cash an amount equal to the shortfall into the Security Reserve Account, as specified in a written request from the Security Agent, no later than two (2) Business Days from the receipt of said request by the Borrower. The Borrower agrees to and shall cooperate with the Security Agent in the creation of a security interest over any monies in the Security Reserve Account for the purposes of securing the obligations of the Borrower hereunder pursuant to the terms and conditions of the Account Pledge Agreement.
Security Reserve. In the event that the aggregate value of both the Accounts Receivable and the Inventories falls below the aggregate minimum amount allowed, as calculated in accordance with the Advance Rates prescribed in Schedule II by the Security Agent as of the end of each calendar month, then the Borrower shall pay in cash an amount equal to the shortfall into the Security Reserve Account, as specified in a written request from the Security Agent, in such time and manner as is specified in the Account Pledge Agreement, as amended by a certain Agreement to Amend Account Pledge Agreement, dated as of the date of this Agreement, between the Borrower and the Lenders. The Borrower agrees to and shall cooperate with the Security Agent in the creation of a security interest over any monies in the Security Reserve Account for the purposes of securing the obligations of the Borrower hereunder pursuant to the terms and conditions of the Account Pledge Agreement.
Security Reserve. In addition to the chargeback rights granted to ▇▇▇▇▇▇ and ▇▇▇▇▇▇▇ by ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ hereby authorizes ▇▇▇▇▇▇ to establish a security reserve account (the “Reserve Account”), with or without prior notice to Merchant, at any time prior to, at, or after termination of this Agreement, to ensure ▇▇▇▇▇▇’▇ recovery of any liabilities, of whatever nature, owed it, or reasonably anticipated to be owed it, by Merchant pursuant to this Agreement. ▇▇▇▇▇▇ may establish a Reserve Account whenever ▇▇▇▇▇▇ or ▇▇▇▇▇▇▇, in their sole discretion, believes recovery of such liabilities may be in jeopardy. MERCHANT HEREBY GRANTS TO ▇▇▇▇▇▇ A POSSESSORY SECURITY INTEREST IN ANY RESERVE ACCOUNT SO ESTABLISHED. ▇▇▇▇▇▇ may enforce its security interest in the Reserve Account without notice or demand by debiting therefrom any liability found to be owing to ▇▇▇▇▇▇ and ▇▇▇▇▇▇▇ by ▇▇▇▇▇▇▇▇. ▇▇▇▇▇▇’▇ and ▇▇▇▇▇▇▇’s right to sums owed it by Merchant pursuant to this Agreement shall in no way be limited by the balance or existence of the Reserve Account. ▇▇▇▇▇▇’▇ rights with respect to the Reserve Account, including its security interest therein, shall survive the termination of this Agreement. The Reserve Account may be held by ▇▇▇▇▇▇ up to six (6) months after the later of: (i) the date of the last transaction or chargeback; or (ii) the expiration date of the chargeback liability arising from the Merchant’s product or service pursuant to this Agreement, and/or Visa, MasterCard, or DFS rules and regulations, and/or applicable law. ▇▇▇▇▇▇▇▇ agrees that ▇▇▇▇▇▇ may also enforce its security interest against an established Reserve Account of Merchant if Merchant exceeds the approved monthly processing limit and/or approved average ticket amount set forth on the Merchant Bankcard Application, in addition to assessing Merchant an overlimit fee. ▇▇▇▇▇▇ will use commercially reasonable efforts to return any funds held in the Reserve Account to Merchant after all amounts owed to ▇▇▇▇▇▇ and ▇▇▇▇▇▇▇ have been collected and after the expiration of all applicable time periods. Upon termination of this Agreement, ▇▇▇▇▇▇ and ▇▇▇▇▇▇▇ will charge ▇▇▇▇▇▇▇▇’s Reserve Account $5.00 per month until any funds held in the Reserve Account are claimed or escheated to the State.
Security Reserve