Common use of Check Endorsement Clause in Contracts

Check Endorsement. Federalregulationsprovidethatthetop 1-1/2 inches on the back of acheck(whenreadverticallyfromthe trailingedge) is designated for your endorsement as payee. If you endorse acheck in the areaoutside of the endorsement area, mark or otherwise obscure the other area, or make an endorsementwhich is illegible or incomplete, you agree to hold us harmless from any loss, delay, liability, claim, or damage which occurs as a result. Check Imaging. If you elect to receive our checkimagingservice, we will include images of your canceledchecks to you on your monthlystatements. There may be a fee assessed for the check imaging service. Your canceled checks will not be returned to you but will be destroyedshortly after we process your statement. We will maintainan image of each check for seven years. In some cases, checks you write may be converted into electronic images (truncated) duringthe checkcollection and returnprocess and we willreceivecopies of your checks, rather thanoriginals. CutoffHour. Ourprocessingcutoffhourwithrespecttoanyknowledge,notice,stoppaymentor postdateditemorder,or legalprocessreceivedbyus involving an item is one hour after the opening of the banking day following the banking day on which we receive the item. The cutoff hour with respect to setoffs exercised by us ismidnight of the banking day following the banking day we receive an item, or such later time by which we must return the item. The cutoff hour determines our obligation under state law to pay or return certain items that have been received (but not finally paid) by us on the previous banking day. Check Examination. We process checks by automated means based on information encoded on the checks. We may not physically examine all checks to determineifthey are properly signed or completed. Youagree that we may rely on such a process and that it will be deemed an acceptable standard of care on our part. ChecksLostor Stolen. Youagreetosafeguardyour blankchecks and totakereasonablestepstopreventtheirunauthorizeduse. If you areabusiness, you should store them under dual control in a secure, locked location that is accessible only to authorized personnel. If your blank checks are lost or stolen, you agreetonotify us immediately. Forsecurityreasons, we reservetherighttocloseyour account and transferthebalancetoa new account. If we do, all checks written but not yet paid may be returned to payees as “Account Closed” or “Refer to Maker”. You will be responsible for issuing any replacement checks. When you cash or deposit a check or other item with us, we act as your agent to collect the item. The risk of loss on an item in the process of collection is on you. We may reverse any credit given and any interestearned or accruedfor adepositeditemthat is lost in transit and we may recoverfrom any account you maintain with us the funds given to you for a cashed item which is lost in transit. You will do everything reasonably within your ability to promptly assist us to find, identify or replace a lost item, including but not limited to maintaining a record of the maker of items delivered to us for deposit and collection. We shall not be liable to you if an item is lost in the process of collectionprovided we exercised ordinary care in handling the item. In no event shall we be liable to you if you cannot identify the maker of the lost item.

Check Endorsement. Federalregulationsprovidethatthetop 1-1/2 inches on the back of acheck(whenreadverticallyfromthe trailingedge) is designated for your endorsement as payee. If you endorse acheck in the areaoutside of the endorsement area, mark or otherwise obscure the other area, or make an endorsementwhich is illegible or incomplete, you agree to hold us harmless from any loss, delay, liability, claim, or damage which occurs as a result. Check Imaging. If you elect to receive our checkimagingservice, we will include images of your canceledchecks to you on your monthlystatements. There may be a fee assessed for the check imaging service. Your canceled checks will not be returned to you but will be destroyedshortly after we process your statement. We will maintainan image of each check for seven years. In some cases, checks you write may be converted into electronic images (truncated) duringthe checkcollection and returnprocess and we willreceivecopies of your checks, rather thanoriginals. CutoffHour. Ourprocessingcutoffhourwithrespecttoanyknowledge,notice,stoppaymentor postdateditemorder,or legalprocessreceivedbyus involving an item is one hour after the opening of the banking day following the banking day on which we receive the item. The cutoff hour with respect to setoffs exercised by us ismidnight of the banking day following the banking day we receive an item, or such later time by which we must return the item. The cutoff hour determines our obligation under state law to pay or return certain items that have been received (but not finally paid) by us on the previous banking day. Check Examination. We process checks by automated means based on information encoded on the checks. We may not physically examine all checks to determineifthey are properly signed or completed. Youagree that we may rely on such a process and that it will be deemed an acceptable standard of care on our part. ChecksLostor Stolen. Youagreetosafeguardyour blankchecks and totakereasonablestepstopreventtheirunauthorizeduse. If you areabusiness, you should store them under dual control in a secure, locked location that is accessible only to authorized personnel. If your blank checks are lost or stolen, you agreetonotify us immediately. Forsecurityreasons, we reservetherighttocloseyour account and transferthebalancetoa new account. If we do, all checks written but not yet paid may be returned to payees as “Account Closed” or “Refer to Maker”. You will be responsible for issuing any replacement checks. When you cash or deposit a check or other item with us, we act as your agent to collect the item. The risk of loss on an item in the process of collection is on you. We may reverse any credit given and any interestearned or accruedfor adepositeditemthat is lost in transit and we may recoverfrom recover from any account you maintain with us the funds given to you for a cashed item which is lost in transit. You will do everything reasonably within your ability to promptly assist us to find, identify or replace a lost item, including but not limited to maintaining a record of the maker of items delivered to us for deposit and collection. We shall not be liable to you if an item is lost in the process of collectionprovided we exercised ordinary care in handling the item. In no event shall we be liable to you if you cannot identify the maker of the lost item.