Common use of Payment Program Clause in Contracts

Payment Program. The Custodian and the Sponsor agree that if a Planholder wishes to have payments on his Plans made automatically by ACH each month, he may request that payments be made by means of ACH. Under this program, each month the Custodian will debit the Planholder's bank account in the amount of the monthly payment. The proceeds of the ACH debit will be invested in the Planholder's account. To initiate an ACH Payment Program, the Planholder should complete the Pre-Authorized Check Form and send it to the Custodian. The Planholder may terminate an ACH Payment Program at any time by written notice to the Custodian. When the Custodian receives ACH credit and debit entries pursuant to the rules of the National Automated Clearing House Association and the New England Clearing House Association, the Custodian will act as an Originating Depository Financial Institution and/or Receiving Depository Financial Institution, as the case may be, with respect to such entries. Credits given by the Custodian with respect to an ACH credit entry are provisional until the Custodian receives final settlement from the Federal Reserve Bank. If the Custodian does not receive such final settlement for such entry, the Sponsor agrees that the Custodian shall receive a refund of the amount credited to the Planholder in connection with such entry, and the Planholder making payment to the Custodian via such entry shall not be deemed to have paid the amount of the entry.