Instructions to Bank/Processing Procedures Clause Samples
The "Instructions to Bank/Processing Procedures" clause defines the specific directions and steps that a party must provide to its bank or financial institution to facilitate the processing of payments or transactions under the agreement. This clause typically outlines the required information, such as account details, reference numbers, and timing for payment initiation, and may specify the format or method for delivering instructions (e.g., in writing or electronically). Its core practical function is to ensure that all parties understand the necessary procedures for smooth and accurate financial transactions, thereby reducing the risk of errors, delays, or disputes related to payment processing.
Instructions to Bank/Processing Procedures. All information on the Transfer Application or Letter of Authorization, as applicable, must be complete, including designation of any Intermediary Bank. Completion of the Transfer Application or Letter of Authorization for a fund transfer will constitute a Payment Order instructing the Bank to execute or pay the order. The Bank will execute a Payment Order by issuing its own order, in furtherance of and in conformity with the instructions in the Transfer Application or Letter of Authorization, to the Intermediary Bank, if applicable, or directly to the Beneficiary's Bank, or the Bank will pay the Beneficiary if the Bank is also the Beneficiary's Bank. The Bank will execute or pay a Payment Order in same day funds, except if the Bank is also the Beneficiary's Bank, in which case the Bank will pay in next day funds if so requested. Except where a later date is specified in the Special Instructions field on the Transfer Application, the Bank will execute or pay the Payment Order on the Date of Application or as specified in the Letter of Authorization if received prior to 3:00 p.m. on a business day, or may be paid on the next business day if received after 3: 00 p.m. If a later date is specified, the Bank may execute or pay your order on that date. Unless otherwise arranged, the Bank will debit your account for the amount of the Payment Order and for the Bank's charges, of which you have been informed. The Bank reserves the right to refuse or delay execution or payment of any Payment Order in the event (i) there are not sufficient funds available for withdrawal in your account to be debited; (ii) the Bank otherwise has not been paid for the transfer; (iii) in the event a Payment Order is unclear or incomplete; or (iv) for other reasons satisfactory to the Bank.