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28 <br />Overdrafts; Security Interest; Bank’s Right to Setoff <br /> <br />Overdrafts and Insufficient Funds. <br />Bank may, at its option, pay or refuse to pay any Item if it would create an <br />Overdraft on Company’s Account, without regard to whether Bank may <br />have previously established a pattern of honoring or dishonoring such an <br />Item. Bank may take either of the following actions if Bank receives an Item <br />drawn on Company’s Account and there are insufficient available funds in <br />Company’s Account to cover the Item, without prior notice to Company: <br />• Pay the Item and create an Overdraft on Company’s Account. <br /> <br />• Return the Item if the Item would create an Overdraft on <br />Company’s Account. <br /> <br />Company agrees to pay Bank’s fee that may vary depending on the action <br />Bank takes. Any Overdraft on Company’s Account is immediately due and <br />payable, unless Bank agrees otherwise in writing. Company agrees to <br />reimburse Bank for the attorneys’ fees and other costs and expenses Bank <br />incurs in recovering the Overdraft (including Overdraft and associated <br />fees). On a Business Day when Bank determines that there are sufficient <br />funds in Company’s Account to pay one or more but not all of the Items <br />presented for payment on Company’s Account, the order in which Bank <br />posts such Items may affect the number of Items paid and the Overdraft <br />and returned Item fees assessed. When Bank posts Items in the order of <br />highest to lowest dollar amount, the Overdraft and returned Item fees may <br />be more than these fees would be if Bank were to post the Items in the order <br />of lowest to highest dollar amount. <br /> <br />Security Interest; Bank’s Right to Setoff. <br />To secure Company’s performance of this Agreement, Company grants <br />Bank a lien on and security interest in Company’s Account and Company’s <br />accounts with any Affiliate. In addition, Company acknowledges Bank may <br />setoff against any Account(s) (including matured and unmatured time <br />Account(s)) for any obligation Company owes Bank at any time and for any <br />reason as allowed by the laws governing this Agreement. These obligations <br />include both secured and unsecured debts and debts Company owes <br />individually or together with another person. Bank may consider this <br />Agreement as Company’s consent to Bank’s asserting its security interest or <br />exercising its right of setoff should the laws governing this Agreement <br />require Company’s consent. If Company’s Account is an unmatured time <br />account, Bank may deduct any early withdrawal fee that may be due as a <br />result of Bank having exercised its right of setoff. If Company has a Sweep <br />6.1.D. - Page 70