Common use of Pre-Authorized Check Payments Program Clause in Contracts

Pre-Authorized Check Payments Program. The Custodian and the Sponsor agree that if a Planholder wishes to have payments on his Plans made automatically without having to write a check each month, he may request that payments be made by means of pre-authorized checks. Under this program, each month the Custodian will draft the Planholder's bank account in the amount of the monthly payment. The proceeds of the draft will be invested in the Planholder's account. To initiate a Pre-Authorized Check Payment Program, the Planholder should complete the Pre-Authorized Check Form and send it along with a voided blank check to the Custodian. The Planholder may terminate a Pre-Authorized Check Payment Program at any time by written notice to the Custodian.