Common use of Merchant Obligations Clause in Contracts

Merchant Obligations. A. Notification of Business Changes. Merchant shall provide Bank and NMS with immediate notice if Merchant intends to: (i) transfer, sell or liquidate any substantial part of its total assets and/or equity; (ii) change the basic nature of its business affecting Merchant’s MCC; (iii) change ownership or transfer control of its business; (iv) enter into any joint venture, partnership or similar business arrangement whereby any person or entity not a party to this Agreement assumes any interest in Merchant’s business; or (v) modify Merchant’s monthly processing volume and/or average ticket size as approved by Bank and NMS, collectively known as Business Changes. Notice to Bank and NMS should be made to in accordance with Article VII, Section 7.02. Failure or neglect to provide notice of Business Changes may be grounds for termination of this Agreement. In event of Business Changes, either Bank or NMS, may at its sole discretion, act to terminate this Agreement or, if deemed acceptable by Bank and NMS, Bank and NMS may opt to initiate a new Agreement with Merchant. In the event Bank or NMS suffers a monetary loss caused by neglect to comply with this Section, Bank and/or NMS, as applicable, has the right to recover such losses by means of exercising its Security Interests per Article IV, Section 4.01 of the Agreement.