Common use of Check Writing Clause in Contracts

Check Writing. In order to provide the Transfer Money Services to you, Folio has established an account (“Master Account”) with an unaffiliated national banking association chartered and regulated by the Office of the Comptroller of the Currency (“Bank”). Checks with respect to your Folio Account are payable against the Master Account and not against an account in your name at the Bank. You acknowledge and agree that you have no ownership or beneficial interest in the Master Account or the funds in the Master Account. You agree to write Checks only in U.S. dollars. If a Check transaction involves an exchange of foreign currency, it will be charged to your Folio Account in U.S. dollars and will be subject to applicable exchange rates and applicable regulations. You must use Checks that are ordered through Folio or an approved vendor to ensure the drafts contain the correct account and other information necessary for processing. If you do not use Checks that have been ordered through us or an approved vendor, such Checks may be returned unpaid and neither Folio nor the Bank shall have any liability to you. Images of paid Checks written against your Folio Account will be held for safekeeping by the Bank and will not be returned to you in the normal course. A fee may be imposed for us to request that the Bank provide you with a copy of an image of a paid Check. You agree that the Bank and Folio may process your Check based on an electronic image and/or related electronic information from your original Check (“Check Image”) that is presented for payment to the Bank. The Bank and Folio are under no obligation to obtain the original Check and you acknowledge that your original Check may be destroyed in connection with its conversion to a Check Image by third parties other than the Bank and Folio. You agree that you, the Bank and Folio, as between the parties, shall have the same rights and responsibilities under applicable law and this Agreement with respect to a presented, paid or returned Check Image as if the Check Image were the original Check, except that the Check Image is in electronic form. You also authorize Folio and the Bank to pay and Folio to charge your Folio Account for photocopies of any original Check and paper reproductions of Check Images. Folio or the Bank may refuse to pay a Check or other item which: (1) is illegible; (2) drawn in an amount greater than the amount of funds then available for withdrawal in your Folio Account or which would, if paid, create an overdraft in your Folio Account;