Common use of Our Use of Automated Collection and Payment Processes Clause in Contracts

Our Use of Automated Collection and Payment Processes. You understand that we use automated collection and payment processes and procedures so that we can process the greatest volume of checks, drafts and items in the most cost effective manner for the benefit of all members. These automated processes and procedures rely on and can only recognize information that is written (encoded) in the Magnetic Ink Character Recognition (MICR) line at the bottom of the check, draft or item, which contains your account number, amount of check, and check number. In order to achieve these cost efficiencies for all members, you agree that when we pay or take a check, draft or item for deposit and collection that we may disregard all other information on the check, draft or item other than the drawer’s signature, the identity of the payor-drawee financial institution, the amount of the check, draft or item, and the information encoded in MICR line, whether or not that information is consistent with other information on the check, draft or item. You also agree that we do not fail to exercise ordinary care in paying any check, draft or item without physically or visually examining checks, drafts or items. For your protection and the credit union’s, you agree that we are not liable for refusing to honor any check, draft, item or instruction if we believe any signature, instruction, provision or term is not genuine or is altered, or that is illegible or written in a language other than English, and that such nonpayment or nonaction is not wrongful.