Common use of Electronic Checks Clause in Contracts

Electronic Checks. We may pay and charge your applicable account for checks payable to any person, organization, association or corporation whom you have authorized by providing sample MICR encoded information identifying your account provided there are sufficient funds in your account to pay such checks. You agree that our rights in respect to such checks shall be the same as if it were a check drawn and signed by you personally. This authority shall remain in effect until revoked by you in writing (to us and to the agency to which the sample MICR writing was provided) and we have had a reasonable opportunity to act on it. You agree that we shall be fully protected in honoring such checks. You further agree that if any such check is dishonored, whether with or without cause, and whether intentional or inadvertent, we shall be under no liability whatsoever, even though such dishonor results in the forfeiture of insurance, loss or damage to you of any kind. If we have made a good faith payment to a holder, we may charge your account according to: a) the original terms of your check; or b) the terms of your completed check unless we have notice that any such completion is improper.