Common use of Drafts; Preauthorized Fund Transfers Clause in Contracts

Drafts; Preauthorized Fund Transfers. In the event that we agree to issue a Draft in connection with a Transaction or otherwise, you must notify us immediately if you discover that delivery has not been made pursuant to your delivery instructions. If we become aware that the Beneficiary has not received an issued Draft, we will use reasonable efforts to place a stop payment on the Draft. We are not liable for any losses you suffer as a result of the stop payment. We may choose to issue a refund or a replacement for any Draft that is not received by the Beneficiary, but if we determine that the Draft has been cashed, we shall have no obligation to issue such a refund or replacement. If you recover a Draft for which we have issued a refund or replacement, you agree to return the Draft to us immediately and not to attempt to cash it. If you cash a Draft after a replacement has been issued, we may stop payment on the replacement Draft and seek reimbursement from you. You may be liable for any costs, fees, or other expenses associated with a cancelation or stop payment instruction.