Common use of Cheque Imaging Clause in Contracts

Cheque Imaging. (a) The Customer acknowledges and agrees that digital images or electronic representations of instruments (including copies of same) may be made or captured and used by financial institutions involved in the exchange and clearing of payment items in a number of countries, in which case the original paper instrument may be destroyed and not returned to the Customer. The Bank is entitled to act upon such images and representations for all purposes as if it were a paper instrument. (b) The Bank may reject any instrument that does not comply with all policies and standards of the Bank, which includes complying with the rules of local Automated Clearing House or Central Bank. If cheques are printed by a vendor that is not approved by the Bank or security features are used or a cheque is made out in a manner that causes critical data to disappear or be obscured upon imaging and/or truncation (being the act of taking an electronic image of an instrument and destroying the original instrument), the Customer shall be responsible for any loss, damage or expense. (c) The Customer acknowledges that copies of images and instruments (including digital or electronic representations) may be provided to the Customer before the Bank has determined whether the Instrument will be honoured or accepted. The Customer agrees that such copies of images or Instruments are made available by the Bank as a service to the Customer and that the provision of copies of images of Instruments does not mean that a transaction has been processed or in any way obliges the Bank to honour or accept the instrument. The Bank will not be required to ensure that copies of images can be made available to the Customer or any other party upon request for longer than seven years following the date of the statement of account on which the Instrument appears; or as stipulated by local laws.