Common use of Remotely Created Checks Clause in Contracts

Remotely Created Checks. For purposes of this paragraph, “account” means a transaction account, credit account, or any other account on which drafts may be drawn. A remotely created draft is a draft created by someone other than the person on whose account the draft is drawn. A remotely created draft is generally created by a third party payee as authorized by the owner of the account on which the draft is drawn. Authorization is usually made over the telephone or through on-line communication. The owner of the account does not sign a remotely created draft. In place of the owner’s signature, the remotely created draft usually bears a statement that the owner authorized the draft or bears the owner’s printed or typed name. If you authorize a third party to draw a remotely created draft against your account, you may not later revoke or change your authorization. It is your responsibility to resolve any authorization issues directly with the third party. We are not required to credit your account and may charge against your account any remotely created draft for which the third party has proof of your authorization.