Common use of Check Legends and Restrictive Endorsements Clause in Contracts

Check Legends and Restrictive Endorsements. Legends or notations placed on checks such as “not valid after 60 days” or “not valid over $1,000” are ineffective and will be processed by us without regard to such legends or notations. Similarly, any conditional or restrictive endorsements or other notations found on checks are ineffective and will be processed by us without regard to the endorsement or notation. We may pay checks with such legends, endorsements, or notations even if the restriction or other conditions have not been met. We are not liable to you or any other party for any Losses that result from the placement of these restrictions or other notations on your checks, or from our disregarding them. You agree that we may disregard all information on the check other than the identity of the drawee bank, the amount of the check and any other information encoded onto the check in magnetic ink in accordance with banking practices.

Check Legends and Restrictive Endorsements. Legends or notations placed on checks such as “not valid after 60 sixty (60) days” or “not valid over $1,000” are ineffective and will be processed by us without regard to such legends or notations. Similarly, any conditional or restrictive endorsements or other notations found on checks are ineffective and will be processed by us without regard to the endorsement or notation. We may pay checks with such legends, endorsements, or notations even if the restriction or other conditions have not been met. We are not liable to you or any other party for any Losses that result from the placement of these restrictions or other notations on your checks, or from our disregarding them. You agree that we may disregard all information on the check other than the identity of the drawee bank, the amount of the check and any other information encoded onto the check in magnetic ink in accordance with banking practices.