Common use of Receiver Authorization Clause in Contracts

Receiver Authorization. Customer shall have obtained from each Receiver an authorization to initiate one or more Entries with respect to the Receiver’s account. Such authorization must (i) be obtained before Customer initiates the first Entry to that Receiver’s account; (ii) remain valid and not revoked at the time of each subsequent Entry; (iii) relate to a Receiver whose arrangement with Customer has not been terminated; (iv) be immediately available for inspection by Bank upon its request; and (v) otherwise comply with the Rules. Bank shall be under no obligation to request, inspect or determine the validity or existence of any Receiver authorization.