Check Truncation Clause Samples
The Check Truncation clause defines the process by which a physical check is converted into an electronic image for processing and clearing purposes. In practice, this means that once a check is truncated, the original paper check is no longer used in the clearing cycle; instead, banks and financial institutions rely on the digital image to settle transactions. This clause streamlines the check clearing process, reduces the need for physical transportation of checks, and helps prevent delays or losses associated with handling paper checks.
Check Truncation. If you can write checks on your account, you understand that if we receive the checks, the checks will be retained by us and destroyed after a reasonable time period or as required by law or your check may be truncated by the depositary or collecting bank. Any request for a copy of any check may be subject to a fee, as indicated in the Common Fee Schedule and as allowed by law. If for any reason we cannot provide you with a copy of a check and you sustain a loss because of our inability to produce a copy, our liability will be limited to the lesser of the face amount of the check or the actual damages sustained by you. We are not liable for any special or consequential loss or damages of any kind.
Check Truncation. Unless we adopt alternative procedures from time to time, checks drawn on your account will not be returned to you and copies of checks will be made available to you upon your request, subject to any fee disclosed on the Fee Schedule. You agree that your duty to examine statements promptly, and your obligation to notify us in the event of any error, is not waived or diminished in any respect by our retention of checks drawn on your Account.
Check Truncation. PFPC will provide Phoenix with “enhanced data” by way of the Communications Network. PFPC itself, or its Agent, will retain the Checks in the form received for a period of not less than three months following their cancellation, and a copy of such Checks on microfilm, microfiche, imaging or other like form for a period of not less than seven years following cancellation.
Check Truncation. An Item may be truncated during the collection or return process by removing the original check and replacing it with a substitute check, information from the MICR line of the original Item or an electronic image of the original Item. If You elect to have Your checks printed by a vendor that has not been approved by the Bank, or You use check stock or features (security features) that cause critical data to disappear or be obscured upon truncation, or You make Your check out in a way (Using lightly colored ink) that causes critical data to disappear upon truncation, You agree to bear the risk of loss. You also agree to bear the risk of loss if You use check stock that contains printing inaccuracies, faulty magnetic ink, faulty encoding, or duplicate serial numbers.