Common use of Placing A Stop Payment Order Clause in Contracts

Placing A Stop Payment Order. We may accept an order to stop payment from any Authorized Representative who has a right to withdraw funds from an Eligible Account. We may require you to complete a form authorizing the order. You must give us sufficient notice and information so that we have a reasonable opportunity both to verify that the item is unpaid and to act on your request. We may charge you a fee for each stop payment order and each renewal of the order. Because stop payment orders are handled by computers, to be effective, we need specific information to process the request, including the account number, the name of the party to whom the item was made payable, the item number, the exact amount of the item, and the date of the item. We may use only a portion of the required information to identify an item. If you give us the wrong amount or the wrong item number, we may pay the item. In some cases, we may pay an item even if an order is in effect. For example, if one of our branch locations, without notice of your request, pays a check that you have asked us to stop, we may still pay the check. A stop payment order generally expires after twelve (12) months. However, we may, in our sole discretion, elect to honor a stop payment order for a longer period of time. If you want the order to continue after twelve (12) months, you must ask us to renew the order. Each request for a renewal is treated as a new order. If you want the order to expire in less than twelve (12) months, you must ask us to cancel the order on or after the date you want it to expire. We may accept a written or oral instruction to cancel the order. A release of the stop payment request may be made only by the person who initiated the stop payment order. Your request to cancel the order is not effective until we have a reasonable opportunity to act on it. We cancel the order automatically when the account on which the item is drawn is closed. If the item is presented to us for payment after the stop payment order expires, we may pay the item. We are not obligated to notify you when a stop payment order expires. If you stop payment on an item and we incur any damages or expenses because of the stop payment, you agree to indemnify us for those damages or expenses, including attorneys' fees. You assign to us all rights against the payee or any other holder of the item. You agree to cooperate with us in any legal actions that we may take against such persons. You should be aware that anyone holding the item may be entitled to enforce payment against you despite the stop payment order. Our stop payment cutoff time is one (1) hour after the opening of the next banking day after the banking day on which we receive the item. Additional limitations on our obligation to stop payment are provided by law (e.g., we paid the item in cash or we certified the item).