Common use of PADS Clause in Contracts

PADS. If the Depositor has authorized PADs to be issued against the Account, the Depositor acknowledges that the Rules provide that under specified conditions claims for reimbursement of PADs may be made and: a) where the purpose of the PAD was for payment of goods and services related to the commercial activities of the Depositor, the time period for making a claim is ten business days from the date of debiting, b) the Depositor may not receive the statement of account for the Account before the ten-business-day period expires and the Credit Union is not obliged to otherwise notify the Depositor of PADs debited to the Account, and c) after the ten-business-day period expires, and whether or not the Depositor has been notified of the PAD being debited to the Account, the Depositor must resolve any dispute directly with the payee – the Credit Union will not be required to reimburse the Depositor for the amount of such PAD, notwithstanding any other provision of this Agreement. The Depositor is responsible for PADs authorized by it, and agrees: a) to release and discharge the Credit Union from any and all claims and demands (except claims for reimbursement made within the ten-business-day period) in respect of PADs issued against the Account, and b) to indemnify and save the Credit Union harmless, from and against, all liability, cost, damages, and expenses incurred by the Credit Union in connection therewith. The above indemnity enures to the benefit of the Credit Union and will be binding upon the Depositor and the Depositor's successors and assigns.