Right to Refuse Payment for Potential Risks. For your and our protection, we may refuse to pay any check or item we believe has a potential payment or fraud problem. Payment prob- lems include, but are not limited to, insufficient funds, stop pay- ment, closed account, illegible checks or checks or items written in a language other than English. Fraud problems include, but are not limited to, alterations and forgeries. You understand our non-pay- ment or non-action under these circumstances is beneficial to you because it protects your funds and reduces the risk of loss and is therefore not wrongful. Alternatively, if we believe there is a fraud problem with your check and the presenter is the perpetrator of the fraud, you agree that for your and our protection we may retain the check to determine if it is fraudulent. You understand that our reten- tion of the check protects you and us from incurring a loss on the account. You also agree that retaining the check is not wrongful be- cause it may substantiate the commission of a crime, and its reten- tion eliminates potential additional crimes. Following appropriate due diligence, if we determine the check is not fraudulent, we will either pay the check or offer to return it to the presenter. Finally, if we be- lieve there is a fraud problem with your check and the presenter is not the perpetrator of the fraud, you agree that for your and our pro- tection we may note the type of fraud on the face of the check before returning it to the presenter to alert branches and other institutions of the potential fraud problems with the check. Our action or inaction in these circumstances is purely at our discretion. You agree we are not required to take or refrain from taking any particular action on any of these matters.
