CONVERTING CHECKS TO ELECTRONIC DEBITS. Some businesses use a procedure to convert checks that are drawn on your Account with us into electronic debits. To use this procedure, you sign an authorization slip (similar to a credit or debit card slip) that permits the business to convert the check to an electronic debit. The business passes your check through a machine that captures the account routing number, check amount, and other relevant information. An electronic debit for the transaction amount is then sent to us. When we receive the electronic debit, we may charge it to your account at any time, regardless of the balance of your Account. We may receive the electronic debit to your account immediately after the business enters the transaction, so to avoid an overdraft you must have sufficient funds in your account to cover the amount of the check at the time you authorize the transaction. Since the check is not sent to us for processing, we do not have a copy of your check. You should retain a copy of the check for your records. Electronic debits are listed on your account statement. AUTOMATED CLEARING HOUSE (“ACH”) PROVISIONS: NOTICE OF RECEIPT OF ACH ITEMS: Under the operating rules of the National Automated Clearing House Association which are applicable to ACH transactions involving this Account, Bank is not required to give next day notice to you of receipt of an ACH item, and Bank will not do so. However, Bank will continue to notify you of the receipt of payments in the periodic statements Bank provides to you. PROVISIONAL PAYMENT: Credit given by Bank to you with respect to an automated clearing house credit entry is provisional until Bank receives final settlement. If Bank does not receive final settlement, you are hereby notified and agree that Bank is entitled to a refund of any and/or all of the amount credited to you in connection with such entry, and the party making payment to you via such entry (i.e., the originator of the entry) shall not have been deemed to have paid you the amount of such entry. CHOICE OF LAW FOR ACH TRANSACTIONS: Bank may accept, on your behalf, payments in your account which have been transmitted through one or more Automated Clearing Houses and which are not subject to the Electronic Fund Transfer Act. Your rights and obligations with respect to such payment shall be construed in accordance with and governed by the operating rules of the National Automated Clearing House Association. FUNDS TRANSFER AUTHORIZATION AND AGREEMENT: To the extent Depositor uti...
CONVERTING CHECKS TO ELECTRONIC DEBITS. Some businesses use a procedure to convert checks that are drawn on your Account with us into electronic debits. AUTOMATED CLEARING HOUSE (“ACH”) PROVISIONS: NOTICE OF RECEIPT OF ACH ITEMS: Under the operating rules of the National Automated Clearing House Association which are applicable to ACH transactions involving this Account, Bank is not required to give next day notice to you of receipt of an ACH item, and Bank will not do so. However, Bank will continue to notify you of the receipt of payments in the periodic statements Bank provides to you. PROVISIONAL PAYMENT: Credit given by Bank to you with respect to an automated clearing house credit entry is provisional until Bank receives final settlement. If Bank does not receive final settlement, you are hereby notified and agree that Bank is entitled to a refund of any and/or all of the amount credited to you in connection with such entry, and the party making payment to you via such entry (i.e., the originator of the entry) shall not have been deemed to have paid you the amount of such entry.
