Processing Deposit and Withdrawal Items (including Cashed Items) Clause Samples

Processing Deposit and Withdrawal Items (including Cashed Items) a. Automated Processing of items. You recognize that the Bank has adopted automated collection and payment procedures so that it can process the greatest volume of items at the lowest possible cost to all customers. These automated procedures rely primarily on information encoded onto each item in magnetic ink. In recognition of this fact, you agree that in paying or taking an item for collection, the Bank may disregard all information on the item other than the drawer's signature, the identity of the drawee bank, the amount of the item, and any other information encoded onto the item in magnetic ink according to general banking standards, whether or not that information is consistent with other information on the item. You agree to reimburse the Bank for any loss or expense it incurs because you issue or deposit an item containing such extra information. Furthermore, you agree that the Bank does not fail to exercise ordinary care in paying an item solely because its procedures do not provide for the sight examination of items with a face amount below an amount specified by the Bank from time to time. b. No sight review of drawer signature. You agree that the Bank does not fail to exercise ordinary care in paying an item solely because its procedures don’t provide for sight review or provide for sight review only for items above a threshold level, or on a sample basis, at the discretion of the Bank. The Bank reserves the right not to sight review drawer signatures because it pays items on an automated basis to reduce costs for all customers.