Common use of Remotely Created Checks Clause in Contracts

Remotely Created Checks. If you provide the Bank’s routing and transit number and your account number to a third party over the phone (for example, to a telemarketer) or via the Internet, you authorize us to debit from your account the amount(s) of one or more “remotely created checks.” A remotely created check is a check created by the third party that, although it does not bear your signature, purports to be drawn on your account with your authorization. Although we are authorized to honor such remotely created checks, we are not obligated to do so and we may refuse to honor any such remotely created checks in our sole discretion. We may return such remotely created checks even if we have honored similar remotely created checks in the past. You agree that we are not liable to you for any Losses that may result from either honoring or dishonoring any such remotely created checks drawn on your account.