Common use of Collection of Deposited Items Clause in Contracts

Collection of Deposited Items. In receiving items for deposit or collection, Depository acts only as your agent and assumes no responsibility beyond the exercise of ordinary care. All items are credited subject to final settlement in cash or credits. Depository shall have the right to forward items to correspondents including all Federal Reserve Banks, and Depository shall not be liable for default or neglect of said correspondents for loss in transit, nor shall any correspondent be liable except for its own negligence. You specifically authorize Depository or Depository’s correspondents to utilize Federal Reserve Banks to handle such items in accordance with provisions of Regulation J (12 CFR Part 210), as revised or amended from time to time by the Board of Governors of the Federal Reserve System. In the event Depository is subject to local clearinghouse rules, you specifically authorize Depository to handle such items in accordance with the rules and regulations of the clearinghouse. If Depository permits you to withdraw funds from your Deposit Account before final settlement has been made for any deposited item, and final settlement is not made, Depository has the right to charge your Deposit Account or obtain a refund from you. In addition, Depository may charge back any deposited item at any time before final settlement for whatever reason. Depository shall not be liable for any damages resulting from the exercise of these rights. Except as may be attributable to Depository’s lack of good faith or failure to exercise ordinary care, Depository will not be liable for dishonor resulting from any reversal of credit, return of deposited items or for any damages resulting from any of those actions.