Common use of Insufficient Balances Clause in Contracts

Insufficient Balances. You must maintain a sufficient available balance in your account to cover the checks you write. The Bank may return any item drawn on your account if your account balance is insufficient to pay the item at any time between the presentment of the item to the Bank for payment and the return or final payment of the item. Once the Bank determines that your account balance is insufficient to pay any item, we are not required to check the balance again before returning the item. If a check is presented to the Bank for payment when there are not sufficient available funds in your account, we may pay the check or refuse payment and return it unpaid. If the Bank pays the check, you will be responsible for it. You must promptly reimburse the Bank for any insufficient balance. An insufficient balance (overdraft) could result from, among other things: (1) the payment of other checks; (2) payments authorized by you; (3) checks deposited by you that are returned to the Bank unpaid; (4) claims against the Bank regarding your account or any deposit; (5) service charges; or (6) the Bank’s exercise of its right of set off. Your account may be debited on the day that an item is presented, or at such earlier time as notification is received by the Bank by electronic or other means, that an item drawn on your account has been deposited for collection in another financial institution. You understand that the Bank reserves the right to pay items into overdraft, to impose overdraft fees, and to apply later deposits into your account, or any of your accounts at the Bank, to those overdrafts or overdraft fees, by way of set off. You have no right to defer payment of this liability, and you are liable regardless of whether you signed the item or benefited from the charge or overdraft. This includes liability for our costs to collect the deficit, including, to the extent permitted by law, our reasonable attorneys’ fees.