Demand Drafts. If you use or authorize another to issue a demand draft against your account or voluntarily give information about your account (such as our routing number and your account number) to a third party who is seeking to sell you goods or services, and you do not deliver a check physically signed by you to the third party, any demand draft or other debit to your account initiated by the third party to whom you gave the information is deemed authorized even if it differs in amount, frequency or timing from your intentions or agreement with that third party. This provision does not obligate us to honor demand drafts. We may refuse to honor demand drafts without cause or prior notice, even if we have honored similar items previously. We are not under any obligation to verify whether the name and account number shown on the demand draft are consistent. (See Withdrawals (Generally), under the General Terms and Conditions section, for additional information.) You may not deposit demand drafts (items not bearing the maker’s signature, but purporting to be authorized by the maker) to an account with us without our prior, express written consent. If you deposit demand drafts with us, you agree that we may withhold a portion of the proceeds of such drafts or other funds in your account or in a reserve account, in an amount that we reasonably believe may be needed to cover future chargebacks, returned items, and/or claims that such drafts were unauthorized. You grant us a security interest in the reserve account. Unless we agree otherwise in writing with you, reserve funds shall not bear interest. Our right to charge your account for returned demand drafts will not be limited to the balance or existence of any reserve, and you agree that the opening and maintenance of a reserve account is not intended to constitute, nor shall it constitute, our sole or exclusive remedy, nor an election of remedy. Our rights with respect to the reserve, as well as the security interest granted to us, shall survive the termination of this Agreement. We may discontinue accepting demand drafts at any time without cause or prior notice. You agree that you will not hold us responsible for any loss, damage or other problems resulting from your having used or authorized another to create a demand draft. You agree that we have no liability for returning unpaid items, even if the insufficiency of available funds in your account resulted from our assessing fees against your account. Each item or transaction presented against an insufficient available balance is subject to a fee that will be charged against the account. Additionally, if a previously unpaid item is presented again for payment, you may incur an additional fee on the same item if there are insufficient available funds to pay the represented item. (See Bank Fee Schedule.) You agree to pay us the amount of any overdraft immediately, without notice or demand from us. You agree to cover any service charges resulting from a transaction presented against insufficient available funds. Additionally, you agree to cover any service charges and/or accrued interest that may result from a transaction that overdraws your account. Each of you is jointly and severally responsible to us for paying any and all overdrafts created by any one of the authorized signers (including your authorized agents and/or attorney-in-fact), irrespective of who signed the check or item creating the overdraft, benefited from the payment, or contributed funds to the account. Honoring of past items against an insufficient available balance does not obligate us to honor them in the future and we will not send prior notice of checks returned. Please note that we may discontinue permitting overdrafts without notice to you. We reserve the right to terminate any account with excessive insufficient funds activity. Returned Items/Transactions – If we are notified that an item you cashed or deposited is being returned unpaid, we may attempt to reclear the item, place a hold on the funds in question, or charge your account for the amount (and any interest earned on it), whether or not the return or notice of nonpayment is proper or timely. This also applies to checks drawn on us which are not paid for any reason, and to checks that are returned to us in accordance with any law, regulation or rule (including a clearinghouse rule). We may assess a fee (see Bank Fee Schedule) for each returned item and notify you of the return orally, electronically, or in writing. If we receive an affidavit or a declaration under penalty of perjury stating that an endorsement on an item deposited to your account is forged, that the item contains an alteration, or that there has been a breach of warranty in connection with the item, we may charge the item back against your account or place a hold on the funds pending an investigation, without prior notice to you.
Appears in 1 contract
Sources: Deposit Agreement
Demand Drafts. If you use or authorize another to issue a demand draft against your account or voluntarily give information about your account (such as our routing number and your account number) to a third party who is seeking to sell you goods or services, and you do not deliver a check physically signed by you to the third party, any demand draft or other debit to your account initiated by the third party to whom you gave the information is deemed authorized even if it differs in amount, frequency or timing from your intentions or agreement with that third party. This provision does not obligate us to honor demand drafts. We may refuse to honor demand drafts without cause or prior notice, even if we have honored similar items previously. We are not under any obligation to verify whether the name and account number shown on the demand draft are consistent. (See Withdrawals (Generally), under the General Terms and Conditions section, for additional information.) You may not deposit demand drafts (items not bearing the maker’s signature, but purporting to be authorized by the maker) to an account with us without our prior, express written consent. If you deposit demand drafts with us, you agree that we may withhold a portion of the proceeds of such drafts or other funds in your account or in a reserve account, in an amount that we reasonably believe may be needed to cover future chargebacks, returned items, and/or claims that such drafts were unauthorized. You grant us a security interest in the reserve account. Unless we agree otherwise in writing with you, reserve funds shall not bear interest. Our right to charge your account for returned demand drafts will not be limited to the balance or existence of any reserve, and you agree that the opening and maintenance of a reserve account is not intended to constitute, nor shall it constitute, our sole or exclusive remedy, nor an election of remedy. Our rights with respect to the reserve, as well as the security interest granted to us, shall survive the termination of this Agreement. We may discontinue accepting demand drafts at any time without cause or prior notice. You agree that you will not hold us responsible for any loss, damage or other problems resulting from your having used or authorized another to create a demand draft. You agree that we have no liability for returning unpaid items, even if the insufficiency of available funds in your account resulted from our assessing fees against your account. Each item or transaction presented against an insufficient available balance is subject to a fee that will be charged against the account. Additionally, if a previously unpaid item is presented again for payment, you may incur an additional fee on the same item if there are insufficient available funds to pay the represented item. (See Bank Fee Schedule.Schedule ) You agree to pay us the amount of any overdraft immediately, without notice or demand from us. You agree to cover any service charges resulting from a transaction presented against insufficient available funds. Additionally, you agree to cover any service charges and/or accrued interest that may result from a transaction that overdraws your account. Each of you is jointly and severally responsible to us for paying any and all overdrafts created by any one of the authorized signers (including your authorized agents and/or attorney-in-fact), irrespective of who signed the check or item creating the overdraft, benefited from the payment, or contributed funds to the account. Honoring of past items against an insufficient available balance does not obligate us to honor them in the future and we will not send prior notice of checks returned. Please note that we may discontinue permitting overdrafts without notice to you. We reserve the right to terminate any account with excessive insufficient funds activity. Returned Items/Transactions – If we are notified that an item you cashed or deposited is being returned unpaid, we may attempt to reclear the item, place a hold on the funds in question, or charge your account for the amount (and any interest earned on it), whether or not the return or notice of nonpayment is proper or timely. This also applies to checks drawn on us which are not paid for any reason, and to checks that are returned to us in accordance with any law, regulation or rule (including a clearinghouse rule). We may assess a fee (see See Bank Fee ScheduleSchedule ) for each returned item and notify you of the return orally, electronically, or in writing. If we receive an affidavit or a declaration under penalty of perjury stating that an endorsement on an item deposited to your account is forged, that the item contains an alteration, or that there has been a breach of warranty in connection with the item, we may charge the item back against your account or place a hold on the funds pending an investigation, without prior notice to you.
Appears in 1 contract
Sources: Deposit Agreement