Common use of Automated Processing of Items Clause in Contracts

Automated Processing of Items. You recognize that the Credit Union has adopted automated collection and payment procedures so that it can process the greatest volume of items at the lowest possible cost to all members. These automated procedures rely primarily on information encoded onto each item in magnetic ink. In recognition of this fact, you agree that in paying or taking an item for collection, the Credit Union may disregard all information on the item other than the drawer’s signature, the identity of the drawee bank, the amount of the item, and any other information encoded onto the item in magnetic ink according to general banking standards, whether or not that information is consistent with other information on the item. You agree to reimburse the Credit Union for any loss or expense it incurs because you issue or deposit an item containing such extra information. Furthermore, you agree that the Credit Union does not fail to exercise ordinary care in paying an item solely because its procedures do not provide for the sight examination of items with a face amount below an amount specified by the Credit Union from time to time.

Automated Processing of Items. You recognize that the Credit Union has adopted automated collection and payment procedures so that it can process the greatest volume of items at the lowest possible cost to all members. These automated procedures rely primarily on information encoded onto relyprimarilyon informationencodedonto each item in magnetic inkmagneticink. In recognition of this fact, you agree that in paying or taking an item for collection, the Credit Union may disregard all maydisregardall information on the item other than the drawer’s signaturedrawer’ssignature, the identity of identityof the drawee bank, the amount of the item, and any other information encoded onto the item in magnetic ink according to general banking standards, whether or not that information is consistent with other information on the item. You agree to reimburse the Credit Union for any loss or expense it incurs because incursbecause you issue or deposit an item containing such containingsuch extra information. Furthermore, you agree that the Credit Union does not fail to exercise ordinary care ordinarycare in paying an item solely because solelybecause its procedures do not provide for the sight examination of items with a face amount below amountbelow an amount specified by the amountspecified bythe Credit Union from time to time.