Common use of Collection Procedure Clause in Contracts

Collection Procedure. The Company agrees that if a deposited check is returned unpaid for any reason, the Impound Agent may charge the Escrow Account for the amount of the check. However, the Impound Agent may represent a returned check for payment by the financial institution on which it is drawn, but the Impound Agent is not required to do so. The Impound Agent may represent the check without notifying the Company that it is doing so or that the check was not paid. Any check returned unpaid to the Impound Agent shall be returned to the Company.