Common use of Settlement Reserve Clause in Contracts

Settlement Reserve. The MEMBER may be, at the Credit Union’s discretion, required to maintain a reserve (Settlement Reserve) of an amount to be solely determined by the Credit Union. The MEMBER hereby acknowledges and agrees that any Settlement Reserve will be deposited into the Credit Union account for exclusive use by the Credit Union for purposes of offsetting any MEMBER obligations under this Agreement. The MEMBER grants the Credit Union a security interest in the Settlement Reserve so that they may enforce any obligation owed by the MEMBER under this Agreement without notice or demand. MEMBER’s obligation to maintain a Settlement Reserve shall survive the termination of this Agreement for the duration of the termination period, during which time the Credit Union’s security interest shall continue.