Common use of Passbook Accounts Clause in Contracts

Passbook Accounts. A passbook account is any account for which a passbook is issued. We record transactions for this account in your passbook or on separate documents. To make a passbook withdrawal, you must present the passbook and verify the balance before you leave. If you lose the passbook, inform us right away. We may close your account and require you to open a new passbook account if you lose your passbook. Every payment which we make to a person presenting your passbook to us with a signed withdrawal order will be valid, provided we exercise reasonable care. This means that if anyone obtains possession of your passbook and withdraws from your account by forging your signature on a withdrawal form, we will not be liable to you for the amount withdrawn unless you notified us that the passbook was lost prior to the withdrawal or we were negligent in permitting the withdrawal. We do not permit preauthorized transfers or Electronic Funds Transfers from this type of account. If you intend to allow preauthorized transfers from an account, we may ask you to open a statement savings account for this purpose. See Section 2.11 below for limits on these and other types of transfers from passbook accounts. Our record of the transactions to and from your account is the official bank record of such transactions. If there is a difference between our records and the information on the passbook, you agree that we will consider our record to be correct.