Common use of Order of Payment of Items Clause in Contracts

Order of Payment of Items. When checks that you have written or electronic debits that you have initiated are presented to the Bank for payment on or as of the same business day and there are insufficient available funds in your account to pay all of these transactions, generally, we process your withdrawals in the following order of categories or types, paying items (with any fees associated with the item) in each category in the order of smallest to largest dollar amount. First, we pay cashed items; second, we pay electronic debits such as ATM withdrawals and transfers, point-of-sale ("POS") transactions with an ATM or debit card, and online banking transactions; third, we pay your ACH debits (including checks presented to us electronically as ACH debits); and fourth, we pay your checks.