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Form #1397Reserve account clause
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Reserve account clause
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Reserve account clause.
Lender may charge against broker's reserve account any
notes, conditional sales contracts, commercial paper or other instruments
purchased by lender from broker which become and remain delinquent for
_________ days or more according to the restrictive original terms of such
instruments.
Unless modified by mutual agreement in the meantime,
this reserve account shall continue and no part of same shall be withdrawn
without the written consent of lender until the reserve account shall exceed
_________ percent of such balances then outstanding on all such paper or
instruments handled by lender. Any excess above _________ percent of such
balances outstanding may be withdrawn by broker on _________[e.g., June 1]
of each year during the life of this agreement, provided broker has given
lender _________ days' written notice prior to the respective _________[e.g.,
June 1] of broker's desires and demand for such payment to broker.
Upon termination of this agreement and when all papers
and instruments handled under this agreement have been liquidated in full and
all amounts due under same have been paid in full, any balance remaining in
such above reserve account shall be paid to broker upon broker's written demand
for it.
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or any other commercial use is prohibited. This includes reposting forms from this
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These forms are provided to assist business owners and others in understanding important
points to consider in different transactions. They are offered with the understanding
that no legal advice, accounting, or other professional service is being offered
by these documents or on this website. Laws vary in the different states. Agreements
acceptable in one state may not be enforced the same way under the laws of another
state. Also, agreements should relate specifically to the particular facts of each
situation. Therefore, it is important to consult legal counsel whenever utilizing
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is not engaged in recommending or referring members on the site or making claims
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