Payment over Valid Stop Payment Order Sample Clauses
The 'Payment over Valid Stop Payment Order' clause defines the bank's responsibilities and liabilities when it processes a payment despite having received a valid stop payment order from the account holder. In practice, this clause typically applies when a customer instructs the bank to halt payment on a specific check or transaction, but the bank nonetheless allows the payment to go through. The clause clarifies the circumstances under which the bank may be held liable for such errors and may outline any exceptions or limitations to this liability. Its core function is to allocate risk and clarify the rights and remedies available to both the bank and the customer in the event of a payment being made contrary to a stop payment instruction.
Payment over Valid Stop Payment Order. If you believe that we have paid a check over a valid stop payment order, you may be required to provide us with evidence of our acceptance of a valid stop payment order and an affidavit describing in detail your loss resulting from the payment of the check; and, if applicable, further describing in detail your dispute with the payee. If it is subsequently determined that you were indebted to the payee for the exact amount of the check or less, you agree that we will have the right to debit your Account for the amount of the indebtedness.
Payment over Valid Stop Payment Order. If you believe that we have debited a transaction from your account over a valid stop payment order, we may require you to provide us with evidence of our acceptance of a valid stop payment order and an affidavit describing in detail your loss resulting from the payment of the transaction and, if applicable, further describing in detail your dispute with the payee. If we subsequently determine that you were indebted to the payee for the exact amount of the transaction or less, you agree that we will have the right to debit your account for the amount of the indebtedness. If your account has sufficient funds to cover the indebtedness, we may also exercise our right of setoff.