Common use of Automated Clearinghouse Clause in Contracts

Automated Clearinghouse. From time to time, you may be a party to an automated clearinghouse (ACH) entry, which may be credited or charged to your share draft account. You agree to be bound by the National Clearinghouse Association (NACHA) operating rules then in effect for any ACH transactions. You agree that we may rely on the representations and warranties of the originator of the ACH transaction set forth in the NACHA operating rules in debiting or crediting your account. We will notify you of the receipt of any ACH entry only in your account statement, and you may confirm receipt by calling the telephone number listed in the “Credit Union Contacts” section of this Agreement. You agree that payment of ACH entries will be processed on the basis of the identifying number, even if the identifying number identifies a person or entity different from the named party in the transaction. If you receive an unauthorized transaction posted to your account, you have sixty (60) days, from the date of the posting to notify us to return the item as unauthorized. We will not be able to return the item after that time without the cooperation and agreement of the originating bank and the originating company. Any other action must be conducted between you and the originator of the transaction. The prime share account is not a transaction account with electronic withdraws limited by Regulation D. ACH withdraws may not be paid if accessing the prime share account. Please note that the ACH system may not be used to process transactions in violation of Office of Foreign Assets Control (“OFAC”) sanctions. At a minimum, illicit transactions will be blocked or rejected and originators of such ACH transactions may face penalties. From time to time a merchant may ask to use one of your drafts as a source of account information in order to initiate an electronic withdrawal from your account. The merchant should ask you to sign an authorization form and give you a receipt for the transaction. If you authorize such a transaction, the merchant will use certain information obtained from one of your drafts (which may be blank, partially or completely filled out and signed or unsigned), along with certain other information concerning the transaction (such as the amount), to initiate an ACH debit transaction against your account. At that point, the merchant should mark the draft void and give it back to you (you should treat the voided draft with care because someone else who obtains possession of it could use the information to initiate additional debits against your account). The merchant then sends the transaction through the ACH system electronically. The funds will be debited from your account and deposited into the merchant’s account. A description of the transaction containing the serial number of the draft used to initiate it will appear on your monthly statement from us. However, because the merchant returned the draft to you, it will not be included with your statement. If you authorize a merchant to use one of your drafts to initiate this type of transaction, the transfer is governed by the Electronic Funds Transfer Act and is subject to the Electronic Funds Transfer Disclosure and Special Terms and Conditions that appear later in this Agreement. It is not subject to the rules for normal draft transactions described in this part of the Agreement. If we return a draft you give a merchant because of insufficient or uncollected funds, the merchant may also re-present the draft to us electronically. In order to do this, the merchant must give you a notice (before accepting your draft) that your draft may be collected electronically if it is returned. A description of the transaction containing the serial number of the draft will appear on your monthly statement from us. However, because the merchant re-presents the draft to us electronically, it will not be included with your statement. If a merchant re-presents a draft electronically, the transaction is not covered by the Electronic Funds Transfer Act. However, if the merchant charges you a fee as a result of the returned draft and you authorize the merchant to electronically debit the fee from your account, that transfer is covered by the Electronic Funds Transfer Act and is subject to the Electronic Funds Transfer Disclosure and Special Terms and Conditions that appear later in this Agreement.

Automated Clearinghouse. From time to time, you may be a party to an automated clearinghouse (ACH) entry, which may be credited or charged to your share draft account. You agree to be bound by the National Clearinghouse Association (NACHA) operating rules then in effect for any ACH transactions. You agree that we may rely on the representations and warranties of the originator of the ACH transaction set forth in the NACHA operating rules in debiting or crediting your account. We will notify you of the receipt of any ACH entry only in your account statement, and you may confirm receipt by calling the telephone number listed in the “Credit Union Contacts” section of this Agreement. You agree that payment of ACH entries will be processed on the basis of the identifying number, even if the identifying number identifies a person or entity different from the named party in the transaction. If you receive an unauthorized transaction posted to your account, you have sixty fifteen (6015) days, from the date of the posting days to notify us to return the item as unauthorized. We will not be able to return the item after that time without the cooperation and agreement of the originating bank and the originating company. Any other action must be conducted between you and the originator of the transaction. The prime share account is not a transaction account with electronic withdraws limited by Regulation D. ACH withdraws may not be paid if accessing the prime share account. Please note that the ACH system may not be used to process transactions in violation of Office of Foreign Assets Control (“OFAC”) sanctions. At a minimum, illicit transactions will be blocked or rejected and originators of such ACH transactions may face penalties. From time to time a merchant may ask to use one of your drafts checks as a source of account information in order to initiate an electronic withdrawal from your account. The merchant should ask you to sign an authorization form and give you a receipt for the transaction. If you authorize such a transaction, the merchant will use certain information obtained from one of your drafts checks (which may be blank, partially or completely filled out and signed or unsigned), along with certain other information concerning the transaction (such as the amount), to initiate an ACH debit transaction against your account. At that point, the merchant should mark the draft check void and give it back to you (you should treat the voided draft check with care because someone else who obtains possession of it could use the information to initiate additional debits against your account). The merchant then sends the transaction through the ACH system electronically. The funds will be debited from your account and deposited into the merchant’s account. A description of the transaction containing the serial number of the draft check used to initiate it will appear on your monthly statement from us. However, because the merchant returned the draft check to you, it will not be included with your statement. If you authorize a merchant to use one of your drafts checks to initiate this type of transaction, the transfer is governed by the Electronic Funds Transfer Act and is subject to the Electronic Funds Transfer Disclosure and Special Terms and Conditions that appear later in this Agreement. It is not subject to the rules for normal draft check transactions described in this part of the Agreement. If we return a draft check you give a merchant because of insufficient or uncollected funds, the merchant may also re-present the draft check to us electronically. In order to do this, the merchant must give you a notice (before accepting your draftcheck) that your draft check may be collected electronically if it is returned. A description of the transaction containing the serial number of the draft check will appear on your monthly statement from us. However, because the merchant re-presents the draft check to us electronically, it will not be included with your statement. If a merchant re-re- presents a draft check electronically, the transaction is not covered by the Electronic Funds Transfer Act. However, if the merchant charges you a fee as a result of the returned draft check and you authorize the merchant to electronically debit the fee from your account, that transfer is covered by the Electronic Funds Transfer Act and is subject to the Electronic Funds Transfer Disclosure and Special Terms and Conditions that appear later in this Agreement.

Automated Clearinghouse. From time to time, you may be a party to an automated clearinghouse (ACH) entry, which may be credited or charged to your share draft account. You agree to be bound by the National Clearinghouse Association (NACHA) operating rules then in effect for any ACH transactions. You agree that we may rely on the representations and warranties of the originator of the ACH transaction set forth in the NACHA operating rules in debiting or crediting your account. We will notify you of the receipt of any ACH entry only in your account statement, and you may confirm receipt by calling the telephone number listed in the “Credit Union Contacts” section of this Agreement. You agree that payment of ACH entries will be processed on the basis of the identifying number, even if the identifying number identifies a person or entity different from the named party in the transaction. If you receive an unauthorized transaction posted to your account, you have sixty (60) days, from the date of the posting to notify us to return the item as unauthorized. We will not be able to return the item after that time without the cooperation and agreement of the originating bank and the originating company. Any other action must be conducted between you and the originator of the transaction. The prime share account is not a transaction account with electronic withdraws limited by Regulation D. ACH withdraws may not be paid if accessing the prime share account. Please note that the ACH system may not be used to process transactions in violation of Office of Foreign Assets Control (“OFAC”) sanctions. At a minimum, illicit transactions will be blocked or rejected and originators of such ACH transactions may face penalties. From time to time a merchant may ask to use one of your drafts as a source of account information in order to initiate an electronic withdrawal from your account. The merchant should ask you to sign an authorization form and give you a receipt for the transaction. If you authorize such a transaction, the merchant will use certain information obtained from one of your drafts (which may be blank, partially or completely filled out and signed or unsigned), along with certain other information concerning the transaction (such as the amount), to initiate an ACH debit transaction against your account. At that point, the merchant should mark ▇▇▇▇ the draft void and give it back to you (you should treat the voided draft with care because someone else who obtains possession of it could use the information to initiate additional debits against your account). The merchant then sends the transaction through the ACH system electronically. The funds will be debited from your account and deposited into the merchant’s account. A description of the transaction containing the serial number of the draft used to initiate it will appear on your monthly statement from us. However, because the merchant returned the draft to you, it will not be included with your statement. If you authorize a merchant to use one of your drafts to initiate this type of transaction, the transfer is governed by the Electronic Funds Transfer Act and is subject to the Electronic Funds Transfer Disclosure and Special Terms and Conditions that appear later in this Agreement. It is not subject to the rules for normal draft transactions described in this part of the Agreement. If we return a draft you give a merchant because of insufficient or uncollected funds, the merchant may also re-present the draft to us electronically. In order to do this, the merchant must give you a notice (before accepting your draft) that your draft may be collected electronically if it is returned. A description of the transaction containing the serial number of the draft will appear on your monthly statement from us. However, because the merchant re-presents the draft to us electronically, it will not be included with your statement. If a merchant re-presents a draft electronically, the transaction is not covered by the Electronic Funds Transfer Act. However, if the merchant charges you a fee as a result of the returned draft and you authorize the merchant to electronically debit the fee from your account, that transfer is covered by the Electronic Funds Transfer Act and is subject to the Electronic Funds Transfer Disclosure and Special Terms and Conditions that appear later in this Agreement.