Common use of Preauthorized Drafts and Electronic Debits Clause in Contracts

Preauthorized Drafts and Electronic Debits. If you give or otherwise make available your Account number or a sample of your Check or write a Check to a third party, we may treat such disclosure or issuance as your authorization to that third party to issue written or electronic drafts or other debits against your Account, as allowed by Applicable Law. We will not be liable to you for the payment of any such Items, unless you give us notice that the Items are not authorized before they are presented to us for payment. If a third party elects to convert the particular Check you issued to them to an electronic funds transfer you will not receive an image of the cancelled Check with your statement, since we did not receive the Check as further described in Section 2.D above.

Preauthorized Drafts and Electronic Debits. If you give or otherwise make available your Account number or a sample of your Check or write a Check to a third party, we may treat such disclosure or issuance as your authorization to that third party to issue written or electronic drafts or other debits against your Account, as allowed by Applicable Law. We will not be liable to you for the payment of any such Items, unless you give us notice that the Items are not authorized before they are presented to us for payment. If a third party elects to convert the particular Check you issued to them to an electronic funds transfer you will not receive an image of the cancelled Check with your statement, since we did not receive the Check as further described in Section 2.D above.