Common use of Remotely Created Checks and Demand Drafts Clause in Contracts

Remotely Created Checks and Demand Drafts. If you deposit a demand draft or remotely created check (an unsigned draft or a preauthorized draft) into your Account, you warrant and guarantee that the draft or remotely created check is authorized according to the terms on its face by the person identified as drawer. You warrant and agree to the following for every remotely created check we receive from you for deposit or collection: (1) you have received express and verifiable authorization to create the check; (2) you will maintain proof of the authorization for at least two (2) years from the date of the authorization, and supply us with proof if we ask; and (3) if a check is returned, you owe us the amount of the check, regardless of when the check is returned. We may take funds from your Account to pay the amount you owe us, and if there are insufficient funds in your Account, you still owe us the remaining balance. You agree to indemnify, defend, and hold us harmless from every loss, expense, and liability related to a claim that such checks were not authorized.