Common use of Preauthorized Drafts Clause in Contracts

Preauthorized Drafts. If you use or authorize another to issue a demand draft against your account, or voluntarily give information about your account (such as your routing number and your account number) to a party who is seeking to sell you goods or services, and you do not deliver the check physically signed by you to the party, any demand draft or other debit to your account initiated by the party to whom you gave the information is deemed authorized even if it differs in amount, frequency or timing from your intentions or agreement with that party. You agree that you will not hold us responsible for any loss, damage or other problems resulting from your having used or authorized another to create a demand draft. Subject to the requirements set forth in the financial privacy laws and any other laws or statutes regarding the sharing of customer information, we may provide information regarding the current status and history of your account to others. We may release information: (1) where it is necessary or helpful to complete a transaction; (2) to verify the existence and condition of your account for a third party, such as a merchant or another financial institution; (3) to comply with the law or a court order; (4) when an inquiry is made regarding whether your account has sufficient funds to cover a check drawn on your account; (5) with your authorization;