Returned Checks and ACH Debits Clause Samples
The 'Returned Checks and ACH Debits' clause outlines the procedures and consequences when a check or an Automated Clearing House (ACH) debit is not honored by the payer's bank. Typically, this clause specifies that if a payment is returned due to insufficient funds or other reasons, the payer may be subject to additional fees and required to provide an alternative form of payment. It may also detail the timeframe for resolving the issue and any potential impacts on the payer's account status. The core function of this clause is to protect the payee from losses or administrative burdens caused by failed payments and to ensure prompt resolution of payment issues.
Returned Checks and ACH Debits. In order to minimize the risk of loss to the Fund by reason of any check being returned unpaid, Price Services will promptly identify and follow-up on any check or ACH debit returned unpaid. For items returned, Price Services may telephone the investor and/or redeposit the check or debit for collection or cancel the purchase, as deemed appropriate. Price Services and the Funds will establish procedures for the collection of money owed the Fund from investors who have caused losses due to these returned items.