Common use of Unauthorized Check Transactions Clause in Contracts

Unauthorized Check Transactions. If your negligence contributes to a check being altered, changed or forged, we will not be responsible if we pay the check in good faith and in accordance with the reasonable commercial standards of our business. If anyone disputes the payment of a check because it was altered, changed, forged, bore an unauthorized signature or was otherwise improper, we may not credit the amount to your account until the dispute has been resolved. We will have a reasonable period of time to investigate the facts and circumstances surrounding any claim of loss. Unless a law, rule or regulation provides otherwise, such a claim is deemed not to have been made until submitted in writing to us. You agree to fully cooperate in our investigation of such a claim. Your cooperation may include among other things, at the Bank’s discretion: (1) a requirement that you submit a declaration under penalty of perjury describing your claim; (2) a report filed with the appropriate police and/or investigatory authority; (3) promptly providing documentation in support of your claim that the Bank requests; and (4) making a claim against any insurance coverage that you might carry, including for claims arising from employee fraud or embezzlement. Any failure to cooperate in the Bank’s investigation may result in our decision not to honor your claim. We may, although we are not required to do so, provisionally credit your account pending the final outcome of the investigation. If we determine, in our sole discretion, that the debit to your account was not improper, then we may reverse any provisional credit made to your account. We will not be liable for special or consequential damages, including loss of profits or opportunity, or for attorneys’ fees incurred by you to recover your loss against the person responsible and you agree to indemnify and hold us harmless from any such losses. In the event that we reimburse your loss, you agree that you will not waive any rights you have to recover your loss against anyone who is obligated to repay, insure, or otherwise reimburse you for your loss. You will pursue your rights or, at our option, assign them to us so that we may pursue them. Our liability will be reduced by the amount you recover or are entitled to recover from these other sources, including insurance coverage. At our request, you will provide us with all reasonable information about your insurance coverage, including the name of your insurance carrier, policy number, policy limits, applicable deductibles, and/or assignment of rights under the policy. You waive all rights to subrogation against us with respect to any insurance policy or bond. You agree not to print, or other otherwise present, checks, withdrawal orders or other items with special limitations, including when drawn on your account. Examples of special limitations include, but are not limited to, “void over $100,” “two signatures required,” “paid in full” or “void after 90 days.” If you do print, or otherwise present, checks, withdrawal orders or other items with any special limitations, you agree that we are not bound by such limitations. You authorize us, but we will not be obligated, to pay such items, or take them for deposit, without regard to the stated limitation(s). You further agree to indemnify us and hold us harmless for any claims or losses arising out of our refusal to honor said restrictions. In no event will we be liable for our refusal to honor the special limitations, whether or not we previously honored them. If you cash or deposit an item or write a check with such a notation, you agree that it applies only between you and the payee or maker and you agree to accept responsibility for payment of the item.

Unauthorized Check Transactions. If your negligence contributes to a check being altered, changed or forged, we will not be responsible if we pay the check in good faith and in accordance with the reasonable commercial standards of our business. If anyone disputes the payment of a check because it was altered, changed, forged, bore an unauthorized signature or was otherwise improper, we may not credit the amount to your account until the dispute has been resolvedresolved . We will have a reasonable period of time to investigate the facts and circumstances surrounding any claim anyclaim of loss. Unless a law, rule or regulation provides otherwise, ,such a claim is deemed not to have been made until submitted in writing to us. You agree to fully cooperate in our investigation deemednot of such a claim. Your cooperation may include among other things, at the Bank’s discretion: (1) a requirement that you submit a declaration under penalty of perjury describing your claim; (2) a report filed with the appropriate police and/or investigatory authority; (3) promptly providing documentation in support of your claim that the Bank requests; and (4) making a claim against any insurance coverage that you might carry, including for claims arising from employee fraud or embezzlement. Any failure to cooperate in the Bank’s investigation may result in our decision not to honor your claim. We may, although we are not required to do so, provisionally credit your account pending the final outcome of the investigation. If we determine, in our sole discretion, that the debit to your account was not improper, thatthedebittoyouraccountwas notimproper,then we may reverse any provisional credit made mayreverse anyprovisionalcreditmade to your account. We will not be liable for special or consequential damages, including loss of profits or opportunity, or for attorneysforattorneys’ fees incurred feesincurred by you to recover your loss against the person responsible and you torecoveryourlossagainsttheperson responsibleandyou agree to indemnify and hold us harmless from any such losseslosses . In the event that we reimburse your loss, you agree that you will not waive any rights you have to recover your loss against anyone who is obligated to repay, insure, or otherwise reimburse you for your loss. You will pursue your rights or, at our option, assign them to us so that we may pursue them. Our liability will be reduced by the amount you recover or are entitled to recover from these other sources, including insurance coverage. At our request, you will provide us with all reasonable information about your insurance coverage, including the name of your insurance carrier, policy number, policy limits, applicable deductibles, and/or assignment of rights under the policypolicy . You waive all rights to subrogation against us with respect to any insurance policy or bondbond . You agree not to print, or other otherwise present, checks, withdrawal orders or other items with special limitations, including when drawn on your account. Examples of special limitations include, but are not limited to, “void over $100,” “two signatures required,” “paid in full” or “void after 90 daysdays .” If you do print, or otherwise present, checks, withdrawal orders or other items with any special limitations, you agree that we are not bound by such limitations. You authorize us, but we will not be obligated, to pay such items, or take them for deposit, without regard to the stated limitation(s). You further agree to indemnify us and hold us harmless for any claims or losses arising out of our refusal to honor said restrictions. In no event will we be liable for our refusal to honor the special limitations, tohonorthespeciallimitations,whether or not we previously honored thempreviouslyhonoredthem. If you Ifyou cash or deposit an item or write a check with such a notation, you agree that it applies only between you and the payee thepayee or maker and makerand you agree to accept toaccept responsibility for payment of the item.