Common use of Lost or Destroyed Checks Clause in Contracts

Lost or Destroyed Checks. Any Presented Check that is damaged, lost or destroyed (“Damaged Checks”) so as to be rejected by automated processing systems during processing will not be covered by this Agreement. Customer and the Bank will cooperate in the payment decision regarding processed Damaged Checks. The Customer agrees that the Bank has discretion regarding returning a Damaged Check to the presenting bank or otherwise to any depository financial institution. This means that the Bank is not obligated to (but may) return a Damaged Check, unless expressly instructed otherwise by the Customer. The Customer further agrees the Bank’s decision to return a Damaged Check does not obligate the Bank to return future Damaged Checks. If the Bank returns a Damaged Check, it may return the Damaged Check by any means reasonable, including by use of notice in lieu of return or by return of copies of the Damaged Check. The Bank will use its best efforts to notify Customer of a Damaged Check.