Common use of Check Block Clause in Contracts

Check Block. In addition to stop payment order(s), any Contracting Officer or Authorized Signer on your account may request that we block all checks on a specified account by written request. If you make any request to block all checks, you agree to indemnify us against any liability, damage, or expense incurred by us on account of refusal to pay such check payment(s). In the event of payment contrary to a requested check block, our liability shall be the actual loss sustained, but shall not exceed the amount of the check. A check block shall remain in effect until written notice is received from an Authorized Person to remove the block. We must have a reasonable period of time after you place or remove a check block to act upon it. Check blocks only block checks; other payment types, including but not limited to, ACH debits as a result of converted checks (Check to ACH). Cashier’s checks purchased from us are not eligible for check blocks. A check block may include a periodic service fee.