Common use of Check Legends Clause in Contracts

Check Legends. You acknowledge and agree that due to automated check processing, which helps us keep our customers’ costs as low as possible, we cannot examine checks for legends such as for example: “void if not cashed in 30 days” or “void if in excess of $100.” Therefore, STALE CHECKS: You agree that we may, at our option, either pay or dishonor a check that bears a date more than 6 months prior to the date the check is presented for payment, without prior notice to you. RIGHT OF SET-OFF AND CONSENSUAL SECURITY INTEREST: If you owe us money GARNISHMENT AND LEVY: You agree that any garnishment or levy against your account is subject to our right of set-off and our consensual security interest. You agree that if we receive notice of garnishment or levy, we may refuse to allow any withdrawals from your account until the dispute is resolved or, in Legacy’s sole discretion, may pay any unsecured funds that exceed Legacy’s fees in response to any process that we reasonably believe represents a valid garnishment, levy or money not secured by us. In such a case, you agree we will not be liable to you if paying money to the garnishing or levying third party leaves insufficient funds to cover outstanding checks. You agree to reimburse us HOLDS AND ADVERSE CLAIMS TO ACCOUNT: You agree we may in our discretion place a hold on funds in your account at any time that we believe in good faith that we may be subject to loss if items are paid or other withdrawals are permitted from the account. DISPUTES INVOLVING THE ACCOUNT: You agree to be liable to us for any loss or expense (including, without limitation, reasonable attorneys’ fees) that we incur as a result of any dispute involving any of your accounts. You agree that we may deduct any such loss or expense from any of your accounts without prior notice. You also agree that this liability to us includes disputes between you and us involving an account and situations where

Check Legends. You acknowledge and agree that due to automated check processing, which helps us keep our customers’ costs as low as possible, we cannot examine checks for legends such as for example: “void if not cashed in 30 days” or “void if in excess of $100.” Therefore, you agree that we will not have failed to exercise “ordinary care” if we disregard such legends and that we will not be liable for paying a check contrary to the instructions of such legends. You agree we may disregard any information on a check other than information encoded on the MICR line according to general banking standards, whether or not that information is consistent with other information on the check. You agree to reimburse us for any loss or expense we incur because you issue or deposit an item containing such extra information. STALE CHECKS: You agree that we may, at our option, either pay or dishonor a check that bears a date more than 6 months prior to the date the check is presented for payment, without prior notice to you. RIGHT OF SET-OFF AND CONSENSUAL SECURITY INTEREST: If you owe us money as an account owner, signer on an account, borrower, guarantor or otherwise, you agree we may use the funds in your account to pay the debt even if our withdrawal of funds results in an interest penalty or dishonor of checks you write. Any joint account owner of a joint account, or partner in the case of a partnership account, or member of a limited liability company, agrees we may use the account to satisfy any one of your individual obligations or obligations of the joint partnership or limited liability company account. Further, except as to Individual Retirement Accounts (IRAs), other tax-deferred retirement accounts, bank credit card debts, an account owner’s right of withdrawal in a representative capacity, or otherwise as prohibited by law, each account owner hereby grants to us a consensual security interest in the deposit account as original collateral for any debt owed to us by any account owner or signer on the account whether that debt is owed as account owner, signer on an account, borrower, GARNISHMENT AND LEVY: You agree that any garnishment or levy against your account is subject to our right of set-off and our consensual security interest. You agree that if we receive notice of garnishment or levy, we may refuse to allow any withdrawals from your account until the dispute is resolved or, in Legacy’s sole discretion, may pay any unsecured funds that exceed Legacy’s fees in response to any process that we reasonably believe represents a valid garnishment, levy or money not secured by us. In such a case, you agree we will not be liable to you if paying money to the garnishing or levying third party leaves insufficient funds to cover outstanding checks. You agree to reimburse us for any expenses we incur in responding to the garnishment or levy. You agree to pay us a fee as disclosed in our Service Charge Schedule under “Garnishment/Levy.” HOLDS AND ADVERSE CLAIMS TO ACCOUNT: You agree we may in our discretion place a hold on funds in your account at any time that we believe in good faith that we may be subject to loss if items are paid or other withdrawals are permitted from the account. Without limiting the generality of the previous sentence, You agree that if after an item that you cashed or deposited to your account is finally paid, someone else makes a claim that it was altered, forged, unauthorized or should not have been paid for some other reason, we may withhold the amount of such item until a final determination has been made as to that claim. You also agree that if we receive notice of an adverse claim to your account, we may, at our sole discretion, either freeze all funds in your account until the adverse claim is resolved or continue to honor your checks (except in the case of a stop payment order following a depositor’s death, as explained elsewhere in this Deposit Agreement) until we are served with an appropriate court order or the claimant indemnifies us in a manner acceptable to us. DISPUTES INVOLVING THE ACCOUNT: You agree to be liable to us for any loss or expense (including, without limitation, reasonable attorneys’ fees) that we incur as a result of any dispute involving any of your accounts. You agree that we may deduct any such loss or expense from any of your accounts without prior notice. You also agree that this liability to us includes disputes between you and us involving an account and situations wherewhere we become involved in disputes between you and an authorized signer, another owner or a third party claiming an interest in an account. Additionally, you agree that your liability to us includes situations where you, an authorized signer, another owner or a third party takes action with respect to the account that causes us, in good faith, to seek the advice of counsel, whether or not Legacy actually becomes further involved in a dispute or not.

Check Legends. You acknowledge We will not be responsible for, and agree you hereby waive any losses or costs you incur as a result of, the payment by us of any check that due to automated check processingcontains any extraneous legends, which helps us keep our customers’ costs as low as possible, we cannot examine checks for legends such as for example: , “void if not cashed in 30 after sixty (60) days,” or “void if in excess of $100.” Therefore, STALE CHECKS: You unless we agree that we may, at our option, either pay or dishonor a check that bears a date more than 6 months prior to the date the check is presented for payment, without prior notice to you. RIGHT OF SET-OFF AND CONSENSUAL SECURITY INTEREST: If you owe us money GARNISHMENT AND LEVY: You agree that any garnishment or levy against your account is subject to our right of set-off and our consensual security interestotherwise. You agree recognize that if we receive notice of garnishment or levy, we may refuse to allow any withdrawals from your account until the dispute is resolved or, Credit Union has adopted automated collection and payment procedures that rely primarily upon information encoded on each item in Legacy’s sole discretion, may pay any unsecured funds that exceed Legacy’s fees in response to any process that we reasonably believe represents a valid garnishment, levy or money not secured by usmagnetic ink. In such a caserecognition of this fact, you agree that in paying or processing an item, the Credit Union may disregard all information on the item other than the identity of the drawee financial institution, the amount of the item, and any information encoded onto the item in magnetic ink according to general banking standards, whether or not that information is consistent with any other information on the item. You acknowledge that the Credit Union does not fail to exercise ordinary care in paying an item solely because its procedures do not provide for sight review of items. You will receive a periodic statement (normally monthly) for your Business Checking Account. You will receive a periodic statement (normally quarterly) for your Business Savings Account or other savings accounts unless you have an electronic funds transfer transaction during a monthly period (in which case you will receive a monthly statement), or you will receive a combined statement on a monthly basis if you have a Business Checking Account and other savings accounts. If you fail to receive a periodic statement, you agree to notify us within fourteen (14) days of the time that you regularly receive a statement. Each such statement shall show the transactions on your accounts and any charges. We reserve the right not to send statements for accounts we consider inactive, or for those accounts on which we do not have a valid address on file. You should examine the periodic statement carefully and reconcile the account. If there are any discrepancies, the Credit Union should be notified immediately. You are in the best position to detect an unauthorized signature, a forged endorsement, or an alteration. You have the responsibility for any fraud loss if you fail to exercise reasonable care in examining the statement or fail to report forgeries or alterations to the Credit Union within sixty (60) days of the mailing date of the earliest statement containing those items, unless another time period is required by state or federal law. The Credit Union will not be liable to you if paying money to the garnishing or levying third party leaves insufficient funds to cover outstanding checks. You agree to reimburse us HOLDS AND ADVERSE CLAIMS TO ACCOUNT: You agree we may in our discretion place a hold on funds in your account at any time that we believe in good faith that we may be subject to loss if items are paid were forged or other withdrawals are permitted from altered such that the account. DISPUTES INVOLVING THE ACCOUNT: You agree to fraud could not be liable to us for any loss or expense (including, without limitation, detected by a reasonable attorneys’ fees) that we incur as a result of any dispute involving any of your accounts. You agree that we may deduct any such loss or expense from any of your accounts without prior notice. You also agree that this liability to us includes disputes between you and us involving an account and situations wherefinancial institution.

Check Legends. You acknowledge and agree that due to automated check processing, which helps us keep our customers’ costs as low as possible, we cannot examine checks for legends such as for example: “void if not cashed in 30 days” or “void if in excess of $100.” Therefore, you agree that we will not have failed to exercise “ordinary care” if we disregard such legends and that we will not be liable for paying a check contrary to the instructions of such legends. You agree we may disregard any information on a check other than information encoded on the MICR line according to general banking standards, whether or not that information is consistent with other information on the check. You agree to reimburse us for any loss or expense we incur because you issue or deposit an item containing such extra information. STALE CHECKS: You agree that we may, at our option, either pay or dishonor a check that bears a date more than 6 months prior to the date the check is presented for payment, without prior notice to you. RIGHT OF SET-OFF AND CONSENSUAL SECURITY INTEREST: If you owe us money as an account owner, signer on an account, borrower, guarantor or otherwise, you agree we may use the funds in your account to pay the debt even if our withdrawal of funds results in an interest penalty or dishonor of checks you write. Any joint account owner of a joint account, or partner in the case of a partnership account, or member of a limited liability company, agrees we may use the account to satisfy any one of your individual obligations or obligations of the joint partnership or limited liability company account. Further, except as to Individual Retirement Accounts (IRAs), other tax-deferred retirement accounts, bank credit card debts, an account owner’s right of withdrawal in a representative capacity, or otherwise as prohibited by law, each account owner hereby grants to us a consensual security interest in the deposit account as original collateral for any debt owed to us by any account owner or signer on the account whether that debt is owed as account owner, signer on an account, borrower, GARNISHMENT AND LEVYXXXX: You agree that any garnishment or levy against your account is subject to our right of set-off and our consensual security interest. You agree that if we receive notice of garnishment or levy, we may refuse to allow any withdrawals from your account until the dispute is resolved or, in Legacy’s sole discretion, may pay any unsecured funds that exceed Legacy’s fees in response to any process that we reasonably believe represents a valid garnishment, levy or money not secured by us. In such a case, you agree we will not be liable to you if paying money to the garnishing or levying third party leaves insufficient funds to cover outstanding checks. You agree to reimburse us for any expenses we incur in responding to the garnishment or levy. You agree to pay us a fee as disclosed in our Service Charge Schedule under “Garnishment/Levy.” HOLDS AND ADVERSE CLAIMS TO ACCOUNT: You agree we may in our discretion place a hold on funds in your account at any time that we believe in good faith that we may be subject to loss if items are paid or other withdrawals are permitted from the account. Without limiting the generality of the previous sentence, You agree that if after an item that you cashed or deposited to your account is finally paid, someone else makes a claim that it was altered, forged, unauthorized or should not have been paid for some other reason, we may withhold the amount of such item until a final determination has been made as to that claim. You also agree that if we receive notice of an adverse claim to your account, we may, at our sole discretion, either freeze all funds in your account until the adverse claim is resolved or continue to honor your checks (except in the case of a stop payment order following a depositor’s death, as explained elsewhere in this Deposit Agreement) until we are served with an appropriate court order or the claimant indemnifies us in a manner acceptable to us. DISPUTES INVOLVING THE ACCOUNT: You agree to be liable to us for any loss or expense (including, without limitation, reasonable attorneys’ fees) that we incur as a result of any dispute involving any of your accounts. You agree that we may deduct any such loss or expense from any of your accounts without prior notice. You also agree that this liability to us includes disputes between you and us involving an account and situations wherewhere we become involved in disputes between you and an authorized signer, another owner or a third party claiming an interest in an account. Additionally, you agree that your liability to us includes situations where you, an authorized signer, another owner or a third party takes action with respect to the account that causes us, in good faith, to seek the advice of counsel, whether or not Legacy actually becomes further involved in a dispute or not.