Common use of Return Checks Clause in Contracts

Return Checks. If at any time Bank is unable to process an item that was accepted through the Remote Deposit Service for reasons such as poor image quality, we will request the original check from Customer (if it is available) and Customer’s Account will be debited until the item is successfully deposited by Bank. If Images of Checks previously deposited by Customer are dishonored and returned unpaid by the drawee bank or are returned by a clearing agent for any reason, including but not limited to issues relating to the quality of the Image, Customer understands and agrees that, since Customer either maintains the original Check or has destroyed the original Check in accordance with this Agreement, the original Check cannot be returned and Bank may charge back an Image of the Check to Customer’s checking account. Customer understands and agrees that the Image may be in the form of an electronic or paper reproduction of the original Check or a substitute check. Unless otherwise instructed by Bank, Customer agrees not to deposit the original Check if an Image or other debit as previously described is charged back to Customer. Return items are processed the same way as they would be for a check that was imaged. Customer will receive IRD of return, which becomes the legal document. (The original check is not the legal document once it has been deposited.)