Common use of Shares as Security Clause in Contracts

Shares as Security. To secure performances of your obligations under this Agreement, you hereby grant to MSUFCU a security of interest in funds you may have on deposit with MSUFCU from time to time and in any other money MSUFCU may owe you. You understand and intend that by reason of such security interest here granted, MSUFCU may satisfy your indebtedness under this Agreement by charging your deposit account(s) maintained with MSUFCU if you default in payment under this Agreement, without further notice to you. If a specific dollar amount has been pledged, MSUFCU will freeze shares in that account to the extent of the specified pledge. Otherwise, your shares may be withdrawn unless you are in default. This security interest does not apply to any Individual Retirement Account or any other account that would lose special tax treatment under state or federal law if given as security. Cross Collateral: Any collateral securing other loans with the Credit Union, except loans secured by real property used as your principal dwelling or property used for personal, family or household purposes, will also secure advances made under this agreement.