Common use of Preauthorized Drafts Clause in Contracts

Preauthorized Drafts. You agree that, by giving your Account number information to a creditor, you authorize the debits made to your Account by that creditor. If there are duplicate or improper debits or other errors in the preauthorized drafts, you need to advise the creditor of the error and seek a recredit or other adjustment by the creditor. Transactions involving electronic fund transfers may be subject to other rules and regulations. Postdated Item. We may charge against your Account a check dated after the date it is presented (a postdated check), unless you give sufficient prior notice to us of the postdated check. This notice must provide certain information and be given to us in sufficient time for us to act according to the notice. Stop Payments. To stop payment on a check you have written or an ACH transaction (as defined in the Automated Clearing House (“ACH”) Rules section below) you have initiated on your Account, you must notify us immediately. We will charge a fee as set forth in your Health Savings Account Fee and Interest Schedule to process a stop payment order. The stop order must be received before the close of banking business the day before the item is presented for payment in order for us to have time to act on the stop order. We may request you to place the stop order in writing. The stop order will remain in effect for 6 months and must be renewed in writing to stay in force. In your verbal or written stop payment order, you must accurately describe the item by check number, precise dollar amount, the payee, and the number of the account on which the item was drawn. If the information you give us is not correct or complete, or if you do not give us other reasonable information requested about the check, we will not be responsible if we are not able to stop the payment of the item.