Common use of Transfer Authorization and Processing Clause in Contracts

Transfer Authorization and Processing. If you use the institution-to-institution transfer service, you represent and warrant that you are the owner of the transaction account and the recipient account and that you have all necessary legal right, power and authority to transfer funds from the transaction account to the recipient account. Further, you represent and warrant that the recipient account is in the United States. When we receive a transfer Instruction from you, you authorize us to debit your transaction account and remit funds on your behalf to the recipient account designated by you and to debit one of your accounts. You also authorize us to reverse a transfer from your recipient account if the debit is returned from the transaction account for any reason, including but not limited to nonsufficient funds.