Authorized Drafts Clause Samples
The 'Authorized Drafts' clause defines which drafts or payment instruments are permitted to be issued or accepted under the agreement. Typically, it specifies the types of drafts (such as checks, bills of exchange, or electronic payment orders) that are recognized as valid, and may outline the procedures or conditions under which they can be drawn or honored. This clause ensures that only properly authorized and documented payment requests are processed, thereby reducing the risk of fraud or unauthorized transactions.
Authorized Drafts. If you voluntarily give information about your deposit account (such as the Credit Union's routing number and your account number) to a party who is seeking to sell you goods or services, and you do not physically deliver a check to the party, any debit to your account initiated by the party to whom you gave the information is deemed authorized.
Authorized Drafts. If you voluntarily give information about your Account (such as our routing number and your Account number) to a party who is seeking to sell you goods or services, and you do not physically deliver a check to the party, any debit to your Account initiated by the party to whom you gave the information is deemed authorized by you. An overdraft is an advance of funds greater than the amount that has become available in accordance with our Funds Availability Policy. If, in our sole discretion, we choose to allow these withdrawals when there are not sufficient available funds in your Account, you agree to immediately repay us the amount of the funds advanced. We may also assess your Account a service charge (see the Fee Schedule). At no time will we be required to allow you to overdraw your Account even if we have allowed overdrafts on one or more prior occasions. We do not offer the option to authorize overdrafts using a debit card for everyday (one-time or non-recurring) merchant purchases. You agree to pay us, when we ask you, all of our costs of collecting an overdraft, to the fullest extent permitted by applicable law. These costs include, but are not limited to, our legal fees and expenses. If more than one of you owns an Account, each of you will be responsible for paying us the entire amount of all overdrafts and obligations resulting from the overdrafts. We do not have to allow you to make an overdraft. Intentionally withdrawing funds from an Account when there are not enough funds in the Account to cover the withdrawal or when the funds are not yet available for withdrawal may be a crime. In the event your Account is protected by our Overdraft Protection Service, this Overdraft Policy is subject to the rules detailed within the Overdraft Protection service. Overdraft Protection (ODP) service is available on any checking or draft Account. ODP service will automatically transfer funds from a Qualified Protection Account to your checking Account. Qualified Protection Accounts include Savings, Money Market, Checking, or qualified Lines of Credit (LOCs). Non-transaction accounts such as Passbook or Certificates of Deposit do not qualify as Qualified Protection Accounts. If we transfer funds on your behalf, you agree to any service fee we may assess for this service, which are disclosed in the Fee Schedule. If you have an LOC as part of your ODP setup, you also agree to pay any interest accrued that may result from our performing the advance on your behalf...
Authorized Drafts. The interest rate of eight percent (8%) for a three (3) year Buyer Note or eight and seventy-five one hundredths percent (8.75%) for a five (5) year Buyer Note is for PAD (Pre-Authorized Drafts). If BUYER elects not to use PAD or closes the PAD during the term of the Buyer Note, the interest rate will increase to eight and twenty-five one hundredths percent (8.25%) for a three (3) year Buyer Note or nine percent (9%) for a five (5) year Buyer Note.