Collection Draft Services Clause Samples

Collection Draft Services. The term “Drafts” refers to bearer bonds and coupons, claims drafts, items denominated in foreign currencies, and domestic drafts that do not clear as cash items through the ordinary check clearinghouse system or Federal Reserve system. It also includes documents, securities, instructions, instruments and the like that accompany a Draft and are to be received by you before acceptance or payment of the Draft. Ordinarily, an account is not given credit for a Draft until we receive finally collected funds for the item. If we provisionally credit your account for any Draft, we may charge the amount back against your account if we do not receive payment for any reason. You are responsible for ensuring that we are provided with the correct address for processing each Draft to ensure timely receipt and payment by the Draft’s payor. We will not be responsible for confirming or correcting addresses. Our sole responsibility with respect to any Draft is to exercise the ordinary care of a collecting bank in forwarding the Draft for collection and settling with you when final payment is received by us. We may discontinue providing this Service at any time upon notice to you, but we will, for a reasonable time, continue the processing of any Draft we accept for collection prior to such notice.