Sweep Direction Clause Samples
The Sweep Direction clause defines the order or manner in which funds are automatically transferred, or "swept," between accounts. Typically, this clause specifies whether excess balances are moved from subsidiary accounts to a master account (upward sweep) or from a master account to subsidiary accounts (downward sweep), and may outline the timing and conditions for such transfers. Its core practical function is to ensure efficient cash management and liquidity by automating the movement of funds according to a predetermined structure, thereby reducing idle balances and optimizing interest earnings or debt reduction.
Sweep Direction. To the extent the Bank has no discretion and has received no such direction as to cash Assets held in the Account, the Bank will use such Assets to purchase a position in the Account’s designated sweep vehicle.