Common use of Authorization for Prearranged Payments by Electronic Transfer Clause in Contracts

Authorization for Prearranged Payments by Electronic Transfer. The Franchisor reserves the right to require that Royalty payments, late charges and payment of the Marketing and Promotion Fee and late charges (as set forth in Section 12.3 below) be made by means of electronic funds transfer and the Franchisee agrees to provide the information necessary to implement such transfer payments within 30 days of receiving notice that such a program is being implemented. By signing this Agreement, the Franchisee authorizes the Franchisor to initiate debit entries and/or credit correction entries to the Franchisee’s checking or savings account indicated on the Addendum to this Agreement related to the Authorization of Prearranged Payments attached to this Agreement as Exhibit IV, and authorizes the depository named on Exhibit IV (“Depository”) to debit such account pursuant to the Franchisor’s instructions. The Franchisee shall complete the form attached as Exhibit IV with the information requested. This authority is to remain in full force and effect until Depository has received joint written notification from the Franchisor and the Franchisee of the Franchisee’s termination of such authority in such time and in such manner as to afford Depository a reasonable opportunity to act on it. Notwithstanding the foregoing, Depository shall provide the Franchisor and the Franchisee with 30 days’ prior written notice of the termination of this authority. If an erroneous debit entry is initiated to the Franchisee’s account, the Franchisee shall have the right to have the amount of such entry credited to such account by Depository, if (a) within 15 calendar days following the date on which Depository sent to the Franchisee a statement of account or a written notice pertaining to such entry or (b) 45 days after posting, whichever occurs first, the Franchisee shall have sent to Depository a written notice identifying such entry, stating that such entry was in error and requesting Depository to credit the amount thereof to such account. These rights are in addition to any rights the Franchisee may have under federal and state banking laws.

Authorization for Prearranged Payments by Electronic Transfer. The Franchisor reserves the right to require that Royalty payments, late charges and payment of the Marketing and Promotion Fee and late charges (as set forth in Section 12.3 below) be made by means of electronic funds transfer and the Franchisee agrees to provide the information necessary to implement such transfer payments within 30 days of receiving notice that such a program is being implemented. By signing this Agreement, the Franchisee authorizes the Franchisor to initiate debit entries and/or credit correction entries to the Franchisee’s 's checking or savings account indicated on the Addendum to this Agreement related to the Authorization of Prearranged Payments attached to this Agreement as Exhibit IV, and authorizes the depository named on Exhibit IV (“Depository”"DEPOSITORY") to debit such account pursuant to the Franchisor’s 's instructions. The Franchisee shall complete the form attached as Exhibit IV with the information requested. This authority is to remain in full force and effect until Depository has received joint written notification from the Franchisor and the Franchisee of the Franchisee’s 's termination of such authority in such time and in such manner as to afford Depository a reasonable opportunity to act on it. Notwithstanding the foregoing, Depository shall provide the Franchisor and the Franchisee with 30 days’ ' prior written notice of the termination of this authority. If an erroneous debit entry is initiated to the Franchisee’s 's account, the Franchisee shall have the right to have the amount of such entry credited to such account by Depository, if (a) within 15 calendar days following the date on which Depository sent to the Franchisee a statement of account or a written notice pertaining to such entry or (b) 45 days after posting, whichever occurs first, the Franchisee shall have sent to Depository a written notice identifying such entry, stating that such entry was in error and requesting Depository to credit the amount thereof to such account. These rights are in addition to any rights the Franchisee may have under federal and state banking laws.such