Automatic Debit Option Clause Samples

Automatic Debit Option. If you so elect by registering a Monthly/Recurring payment order online or by contacting customer service (“Debit Instructions”), the method of payment will be automatic debit to a deposit account that you maintain with us and designate for that purpose in the Debit Instructions (the “Designated Account”). Pursuant to the Debit Instructions, we will, on each Payment Due Date, debit the Designated Account in the amount of (i) the balance of the last statement; or (ii)thecurrentbalance;or(iii)theTotalMinimumPayment Due; or (iv) a set amount, depending on the option you have selected in the Debit Instructions. Debit Instructions can take up to twostatement cycles to take effect. You will know that the Debit Instructions have been activated because your statement will indicate “Auto Pay Enabled.” You may change the Debit Instructions from time to time by accessing the online portal or by contacting customer service, and we will implement the change as soon as practicable after our receipt of the notice. It is your responsibility to make sure that there are sufficient available funds in the Designated Account on each Payment Due Date to cover the amount of the payment to be made depending on the designation you have made. However, the debits will be made in accordance with the Debit Instructions irrespective of the amount of available funds in the Designated Account, even if the effect of a debit will be to create or increase an overdraft in the Designated Account. Any such overdrafts will be subject to the terms and conditions (including those regarding interest and charges) set forth in the Bank’s Understanding Your Deposit Account agreement (the “Account Agreement”) and in any overdraft facility agreement that may be in effect with respect to the Designated Account (an “Overdraft Facility Agreement”). Notwithstanding anything to the contrary in the Account Agreement or an Overdraft Facility Agreement, however, you must immediately repay any overdraft resulting from debits made under this Section.