Common use of Checks Lost During Collection Clause in Contracts

Checks Lost During Collection. If a check is lost during the collection process, FSB may charge your account for the amount of the check. If the financial institution on which the check is drawn gives FSB a photocopy of the check or a debit slip representing the check, FSB may charge your account for the amount of the check. A lost check may not be returned to FSB for some time. Despite any delay, FSB may charge your account when FSB receives either the returned check, a copy of the check, or a notice of return. FSB may accept certain items – such as certain securities and checks payable in foreign currencies or at foreign locations – on a collection basis only. FSB routes and processes collection items separately. FSB normally credits your account for collection items only after FSB receives payment for them. If FSB credits your account and then does not receive payment, FSB may debit your account for the amount of the item. FSB may charge fees for processing collection items. These fees apply even if the collection item is returned unpaid. See the current Service Fee Schedule for current collection fees. The financial institution on which the collection item is drawn may also charge you fees. If the other financial institution requires payment of a fee before that institution will process the collection item, FSB may pay the fee and charge your account. Otherwise, the other financial institution may subtract its fee from the amount of the payment FSB receives. These fees also may apply even if the collection item is returned unpaid.

Checks Lost During Collection. If a check is lost during the collection process, FSB may charge your account for the amount of the check. If the financial financial institution on which the check is drawn gives FSB a photocopy of the check or a debit slip representing the check, FSB may charge your account for the amount of the check. A lost check may not be returned to FSB for some time. Despite any delay, FSB may charge your account when FSB receives either the returned check, a copy of the check, or a notice of return. FSB may accept certain items – such as certain securities and checks payable in foreign currencies or at foreign locations – on a collection basis only. FSB routes and processes collection items separately. FSB normally credits your account for collection items only after FSB receives payment for them. If FSB credits your account and then does not receive payment, FSB may debit your account for the amount of the item. FSB may charge fees for processing collection items. These fees apply even if the collection item is returned unpaid. See the current Service Fee Schedule for current collection fees. The financial financial institution on which the collection item is drawn may also charge you fees. If the other financial financial institution requires payment of a fee before that institution will process the collection item, FSB may pay the fee and charge your account. Otherwise, the other financial financial institution may subtract its fee from the amount of the payment FSB receives. These fees also may apply even if the collection item is returned unpaid.