Common use of Automated Check Processing Clause in Contracts

Automated Check Processing. You acknowledge that we process checks predominantly by automated means and we are under no duty to examine each item presented for payment. You agree that such automated check payment procedure is commercially reasonable. You and we, pursuant to applicable law, therefore, agree that we shall be deemed to have exercised ordinary care if we adhere to a general industry standard of manual or mechanical examination of a random sampling of items being processed for payment. These items may represent a sampling or selection of items drawn on all accounts, or items which meet certain minimum criteria established by us for manual or mechanical inspection (such as large dollar amounts). We shall be deemed to have acted in good faith and in accordance with reasonable commercial standards in paying any items forged or altered such that the unauthorized signature, endorsement, or alteration could not be detected by a reasonable person. Under certain circumstances, checks you write against your Account may be submitted for payment to us by the payee as one-time electronic ACH debits, using information from such checks (including your Account number, our routing number, and other information). In such circumstances, we would not receive your checks for processing and would instead receive an ACH debit transaction initiated by a third party (and without your signature) for processing.

Automated Check Processing. You acknowledge that we process checks predominantly by automated means and we are under no duty to examine each item presented for payment. You agree that such automated check automatedcheck payment procedure is commercially reasonable. You and we, pursuant to applicable law, therefore, agree that we shall be deemed to have exercised ordinary care if we adhere to a general industry standard of manual or mechanical examination of a random sampling of items being processed for payment. These items may represent a sampling or selection of items drawn on all accounts, or items which meet certain minimum criteria established by us for manual or mechanical inspection (such as large dollar amounts). We shall be deemed to have acted in good faith and in accordance with reasonable commercial standards in paying any items forged or altered such that the unauthorized signature, endorsement, or alteration could alterationcould not be detected by a reasonable person. Under certain circumstances, checks you write against your Account may be submitted for payment to us by the payee as one-time electronic ACH debits, using information from such checks (including your Account number, our routing number, and other information). In such circumstances, we would not receive your checks for processing and would instead receive an ACH debit transaction initiated by a third party (and without your signature) for processing.