Common use of Payment of Checks Clause in Contracts

Payment of Checks. The Credit Union is under no obligation to pay a check that is more than 6 months old. Except for negligence, the Credit Union is not liable for any action it takes regarding the payment or non-payment of a check. All checks drawn on your Checking Account may be returned by us unpaid for any reason that checks are normally returned, such as, for example, insufficient funds, uncollected funds, or litigation. Overdrafts (NSF Transactions). The Credit Union is under no obligation, unless it has contracted to the contrary, to pay a check you have written or any other transaction presented for payment from your Checking Account if it would result in this Checking Account being overdrawn (such a check or other item presented for payment your Checking Account when insufficient available funds are on deposit in the account is known as an “NSF Transaction”). However, the Credit Union may pay such check or other transaction and charge the amount of the resulting overdraft plus any applicable service charge against your Prime Share Savings Account or any of your other accounts. Subject to applicable law, the Credit Union may pay checks or other presented for payment from your Checking Account (including checks payable to the Credit Union or on which the Credit Union may be liable) in any order determined by the Credit Union, even if paying a particular check or other transaction results in an insufficient balance in your Checking Account to pay one or more other transactions that otherwise could have been paid out of your Checking Account. The Credit Union has the option of honoring an NSF Transaction or dishonoring it to avoid the creation of an overdraft. Honoring of past overdrafts does not obligate the Credit Union to honor them in the future. The Credit Union is not required to send prior notice of checks or other transactions returned because they would, if paid, overdraw the account. The amount by which your account is overdrawn is due and payable to the Credit Union upon our demand, and you agree to pay the full amount of it to us, together with any applicable fees as set forth in the Fee Schedule. You also authorize us, in such a case, to apply from any other shares or deposits you may have in the credit union (except for an Individual Retirement Accounts or other account permitting tax deferrals or providing other tax benefits under state or federal law) any amount necessary to pay such overdrawn amount and fees. If this is a joint account (that is, if two or more people are parties to this account), all of the joint owners are jointly and severally liable to repay the Credit Union the amount of any overdraft and service charges, regardless of which of the parties writes the draft that creates an overdraft. If the Credit Union has contractually agreed to provide you with overdraft protection, such as through a share transfer agreement, it will pay overdrafts in accordance with the terms of the applicable agreement(s) when sufficient funds are available through such agreements to pay the overdrafts. When determining whether a check or other transaction presented for payment from your Checking Account is an NSF Transaction, both for the purpose of determining whether and how to pay the transaction and whether a fee related to the transaction being an overdraft may be charged, the Credit Union will use the “Available Balance” for your Checking Account at the time the transaction is presented. The Available Balance is the balance shown on our books (“Ledger Balance”) reduced by (i) the amount of any holds in place with respect to deposited checks or other items, (ii) the amount in the account that is subject to any preauthorization requests related to the account that have been accepted by the Credit Union, (iii) amounts in the account that are subject to holds based on court, tax agency, or other governmental proceedings, and (iv) amounts that we believe are subject to a dispute over ownership or other rights. Examples of preauthorization requests are holds related to purchase transactions where the final amount is initially unknown, such as gas station purchases, restaurant charges, and hotel or car reservations, but there are other types of preauthorization requests that could affect your account as well. Note that the use of the Available Balance for these purposes may cause a fee related to an overdraft to be charged, or a line of credit advance or transfer from another account to be made, even though your periodic statement may not reflect any time when the balance (periodic statements use Ledger Balances) would be negative. Truncated Checks; Statements. Your canceled checks (the checks drawn against your account that we honor) will not be returned to you, they will become Credit Union property and be held by us (“truncated”) for you. They also may be truncated earlier in the check clearing process, such as by the bank into which the payee deposits them. This may be done either pursuant to a contractual electronic presentment process or under a federal law commonly referred to as “Check 21.” Your monthly statement will itemize your canceled checks by number, date of clearing and the amount of the check. Any objection respecting any item shown on a periodic statement is waived unless made in writing to the Credit Union within sixty (60) days after the statement is mailed. A copy of any check will be available to you as required by law. There may be a small fee to obtain a copy of a check (see the Fee Schedule for a list of fees). When a copy of a check is requested, the Credit Union may provide it to you in the form of a “substitute check” as prescribed in the “Check 21” law. Upon issuance, the Credit Union will provide you with a disclosure regarding your rights regarding substitute checks and how you may make a claim for a refund for losses related to a substitute check. Stop Payments.

Payment of Checks. The Credit Union During check processing, information on a check other than the information appearing on the MICR line (i.e. bank number, account number and amount of the check) are not identified. Any statements such as "void if not paid in 30 days"; 2 signatures required"; "not valid in excess of $l00"; etc. do not appear on the MICR line and because of truncation and automatic processing will not be honored in the payment of these items. POSTDATED AND STALEDATED CHECKS OR DRAFTS: You agree not to issue any check or draft that is under payable on a future date (postdated). If you do issue a check or draft that is postdated and we pay it before that date, you agree that we shall have no obligation liability to you for such payment. You agree not to deposit checks, drafts, or other items before they are properly payable. • We are not obligated to pay a any check or draft drawn on your account that is presented more than 6 six (6) months oldpast its date. Except for negligenceSTOP PAYMENTS: Any person authorized to draw on the account may order a stop payment of any item drawn on that account. If a stop payment is requested on a check, you agree to furnish the Credit Union is not liable with the exact amount, date, check number, payee and such other information as may be necessary to identify the check properly. Failure to comply with these requirements and the requests set forth will relieve the Credit Union of all responsibility for any action it takes regarding the payment or non-of any check contrary to the stop payment of a check. All checks drawn on your Checking Account may be returned by us unpaid for any reason that checks are normally returned, such as, for example, insufficient funds, uncollected funds, or litigation. Overdrafts (NSF Transactions)request. The Credit Union is shall be under no obligation, duty to comply with any stop payment request unless it has contracted to the contrary, to pay a check you have written or any other transaction presented for payment from your Checking Account if it would result request was given during regular business hours and in this Checking Account being overdrawn (such a check or other item presented for payment your Checking Account when insufficient available funds are on deposit in the account is known manner as an “NSF Transaction”). However, to offer the Credit Union may pay such a reasonable opportunity to act before the check or other transaction was paid. A stop payment is effective for 6 months after the time it is received, but lapses after l4 calendar days if the original order was oral and charge the amount was not confirmed in writing within that period. A release of the resulting overdraft plus any applicable service charge against your Prime Share Savings Account or any of your other accounts. Subject to applicable law, the Credit Union may pay checks or other presented for stop payment from your Checking Account (including checks payable to the Credit Union or on which the Credit Union may be liable) made only in any order determined writing by the Credit Union, even if paying account owner who requested the stop payment. A fee will be assessed for each stop payment ordered. Except when a particular check or other transaction results in an insufficient balance in your Checking Account to pay one or more other transactions that otherwise could have been paid out declaration of your Checking Account. The Credit Union has the option of honoring an NSF Transaction or dishonoring it to avoid the creation of an overdraft. Honoring of past overdrafts does not obligate the Credit Union to honor them in the future. The Credit Union loss is not required to send prior notice of checks or other transactions returned because they would, if paid, overdraw the account. The amount by which your account is overdrawn is due and payable to the Credit Union upon our demand, and you agree to pay the full amount of it to us, together with any applicable fees as set forth in the Fee Schedule. You also authorize us, in such a case, to apply from any other shares or deposits you may have in the credit union (except for an Individual Retirement Accounts or other account permitting tax deferrals or providing other tax benefits under state or federal law) any amount necessary to pay such overdrawn amount and fees. If this is a joint account (that is, if two or more people are parties to this account), all of the joint owners are jointly and severally liable to repay the Credit Union the amount of any overdraft and service charges, regardless of which of the parties writes the draft that creates an overdraft. If the Credit Union has contractually agreed to provide you with overdraft protection, such as through a share transfer agreement, it will pay overdrafts enforceable in accordance with the terms of the applicable agreement(s) when sufficient funds are available through such agreements to pay the overdrafts. When determining whether Uniform Commercial Code, a check or other transaction presented for stop-payment from your Checking Account is an NSF Transaction, both for the purpose of determining whether and how to pay the transaction and whether order may not be requested on a fee related to the transaction being an overdraft may be charged, the Credit Union will use check. In the “Available Balance” for your Checking Account at the time the transaction is presented. The Available Balance is the balance shown event that you order a stop payment on our books (“Ledger Balance”) reduced by (i) the amount of any holds in place with respect to deposited checks or other items, (ii) the amount in the account that is subject to any preauthorization requests related to the account that have been accepted by the Credit Union, (iii) amounts in the account that are subject to holds based on court, tax agency, or other governmental proceedings, and (iv) amounts that we believe are subject to a dispute over ownership or other rights. Examples of preauthorization requests are holds related to purchase transactions where the final amount is initially unknown, such as gas station purchases, restaurant charges, and hotel or car reservations, but there are other types of preauthorization requests that could affect your account as well. Note that the use of the Available Balance for these purposes may cause a fee related to an overdraft to be charged, or a line of credit advance or transfer from another account to be made, even though your periodic statement may not reflect any time when the balance (periodic statements use Ledger Balances) would be negative. Truncated Checks; Statements. Your canceled checks (the checks drawn against your account that we honor) will not be returned to you, they will become Credit Union property check, you agree to indemnify, defend and hold us harmless from any and all claims, liabilities and damages that may result therefrom. A fee will be held by us (“truncated”) charged for you. They also may be truncated earlier in the check clearing process, such as by the bank into which the payee deposits them. This may be done either pursuant to a contractual electronic presentment process or under a federal law commonly referred to as “Check 21.” Your monthly statement will itemize your canceled checks by number, date of clearing and the amount of the check. Any objection respecting any item shown stop payment on a periodic statement is waived unless made in writing to the Credit Union within sixty (60) days after the statement is mailed. A copy of any check will be available to you as required by law. There may be a small fee to obtain a copy of a check (see the Fee Schedule for a list of fees). When a copy of a check is requested, the Credit Union may provide it to you in the form of a “substitute check” as prescribed in the “Check 21” law. Upon issuance, the Credit Union will provide you with a disclosure regarding your rights regarding substitute checks and how you may make a claim for a refund for losses related to a substitute check. Stop Payments.

Payment of Checks. The Credit Union We will pay checks drawn on your account that are presented for payment on a banking day from other financial institutions in order from the smallest amount to the largest amount. This order of payment is under no obligation designed to provide for the processing of checks in an orderly manner. We will pay any other transactions and charges in any order we determine. If there are not available funds in the account to pay all of the checks and other charges against the account (such as in-person withdrawals, ATM withdrawals, or by other electronic means) presented on a banking day, you agree to pay any insufficient funds fees, associated ACH fees or other fees disclosed in our Schedule of Consumer Account Charges that result based on our payment of checks in the order described in this paragraph and from our payment of other transactions and charges in any order we decide. A fee is charged for each check presented against insufficient funds whether we choose to pay the check or not. We will determine in our sole discretion whether to pay a check that is more than 6 months oldpresented for payment if the account does not contain sufficient available funds. Except Whether we pay or do not pay a check for negligence, the Credit Union is not liable for any action it takes regarding the payment or non-payment of a check. All checks drawn on your Checking Account may be returned by us unpaid for any reason that checks which there are normally returned, such as, for example, insufficient funds, uncollected funds, or litigation. Overdrafts (NSF Transactions)we will send you a notice disclosing the overdraft amount and the fees associated with the overdraft. The Credit Union is under no obligation, overdraft and uncollected item charges are listed in our Schedule of Consumer Account Charges. We will not charge an overdraft fee for ATM withdrawals and everyday debit card transactions that overdraw your account unless it has contracted to the contrary, you have authorized us in a separate document to pay a check you have written or any other transaction presented for payment from your Checking Account if it would result in this Checking Account being overdrawn (such a check or other item presented for payment your Checking Account when insufficient available funds are on deposit in transactions. We reserve the account is known as an “NSF Transaction”). Howeverright, the Credit Union may pay such check or other transaction and charge the amount of the resulting overdraft plus any applicable service charge against your Prime Share Savings Account or any of your other accounts. Subject to applicable law, the Credit Union may pay checks or other presented for payment from your Checking Account (including checks payable to the Credit Union or on which the Credit Union may be liable) in any order determined by the Credit Union, even if paying a particular check or other transaction results in an insufficient balance in your Checking Account to pay one or more other transactions that otherwise could have been paid out of your Checking Account. The Credit Union has the option of honoring an NSF Transaction or dishonoring it to avoid the creation of an overdraft. Honoring of past overdrafts does not obligate the Credit Union to honor them in the future. The Credit Union is not required to send prior notice of checks or other transactions returned because they would, if paid, overdraw the account. The amount by which your account is overdrawn is due and payable to the Credit Union upon our demand, and you agree to pay the full amount of it to us, together with any applicable fees as set forth in the Fee Schedule. You also authorize us, in such a case, to apply from decline to pay any other shares ATM withdrawal or deposits everyday debit card transaction that would overdraw your account, but we will not charge a fee in connection with declining such transactions, unless you may have in the credit union (except for an Individual Retirement Accounts or other account permitting tax deferrals or providing other tax benefits under state or federal law) any amount necessary agreed to pay such overdrawn amount and fees. If this is a joint account (that is, if two or more people are parties to this account), all of the joint owners are jointly and severally liable to repay the Credit Union the amount of any overdraft and service charges, regardless of which of the parties writes the draft that creates an overdraft. If the Credit Union has contractually agreed to provide you with overdraft protection, such as through a share transfer agreement, it will pay overdrafts in accordance with the terms of the applicable agreement(s) when sufficient funds are available through such agreements to pay the overdrafts. When determining whether a check or other transaction presented for payment from your Checking Account is an NSF Transaction, both for the purpose of determining whether and how to pay the transaction and whether a fee related to the transaction being an overdraft may be charged, the Credit Union will use the “Available Balance” for your Checking Account at the time the transaction is presented. The Available Balance is the balance shown on our books (“Ledger Balance”) reduced by (i) the amount of any holds in place with respect to deposited checks or other items, (ii) the amount in the account that is subject to any preauthorization requests related to the account that have been accepted by the Credit Union, (iii) amounts in the account that are subject to holds based on court, tax agency, or other governmental proceedings, and (iv) amounts that we believe are subject to a dispute over ownership or other rights. Examples of preauthorization requests are holds related to purchase transactions where the final amount is initially unknown, such as gas station purchases, restaurant charges, and hotel or car reservations, but there are other types of preauthorization requests that could affect your account as well. Note that the use of the Available Balance for these purposes may cause a fee related to an overdraft to be charged, or a line of credit advance or transfer from another account to be made, even though your periodic statement may not reflect any time when the balance (periodic statements use Ledger Balances) would be negative. Truncated Checks; Statements. Your canceled checks (the checks drawn against your account that we honor) will not be returned to you, they will become Credit Union property and be held by us (“truncated”) for you. They also may be truncated earlier in the check clearing process, such as by the bank into which the payee deposits them. This may be done either pursuant to a contractual electronic presentment process or under a federal law commonly referred to as “Check 21described above.” Your monthly statement will itemize your canceled checks by number, date of clearing and the amount of the check. Any objection respecting any item shown on a periodic statement is waived unless made in writing to the Credit Union within sixty (60) days after the statement is mailed. A copy of any check will be available to you as required by law. There may be a small fee to obtain a copy of a check (see the Fee Schedule for a list of fees). When a copy of a check is requested, the Credit Union may provide it to you in the form of a “substitute check” as prescribed in the “Check 21” law. Upon issuance, the Credit Union will provide you with a disclosure regarding your rights regarding substitute checks and how you may make a claim for a refund for losses related to a substitute check. Stop Payments.

Payment of Checks. The Credit Union is under no obligation to pay a check that is more than 6 months old. Except for negligence, the Credit Union is not liable for any action it takes regarding the payment or non-payment of a check. All checks drawn on your Checking Account may be returned by us unpaid for any reason that checks are normally returned, such as, for example, insufficient funds, uncollected funds, or litigation. Overdrafts (NSF TransactionsChecks). The Credit Union is under no obligation, unless it has contracted to the contrary, to pay a check you have written or any other transaction presented for payment from your Checking Account if it would result in this Checking Account being overdrawn (such a check or other item presented for payment written against your Checking Account when insufficient available funds are on deposit in the account is known as an “NSF TransactionCheck”). However, the Credit Union may pay such check or other transaction and charge the amount of the resulting overdraft plus any applicable service charge against your Prime Membership Share Savings Account or any of your other accounts. Subject to applicable law, the Credit Union may pay checks or other presented for payment from your Checking Account (including checks payable to the Credit Union or on which the Credit Union may be liable) in any order determined by the Credit Union, even if paying a particular check or other transaction results in an insufficient balance in your Checking Account to pay one or more other transactions that otherwise could have been paid out of your Checking Account. The Credit Union has the option of honoring an NSF Transaction Check or dishonoring it to avoid the creation of an overdraft. Honoring of past overdrafts does not obligate the Credit Union to honor them in the future. The Credit Union is not required to send prior notice of checks or other transactions returned because they would, if paid, overdraw the account. The amount by which your account is overdrawn is due and payable to the Credit Union upon our demandthe moment the account becomes overdrawn, and you agree to pay the full amount of it to us, together with any applicable fees as set forth in the Fee Schedule. You also authorize us, in such a case, to apply from any other shares or deposits you may have in the credit union (except for an Individual Retirement Accounts or other account permitting tax deferrals or providing other tax benefits under state or federal law) any amount necessary to pay such overdrawn amount and fees. If this is a joint account (that is, if two or more people are parties to this account), all of the joint owners are jointly and severally liable to repay the Credit Union the amount of any overdraft and service charges, regardless of which of the parties writes the draft that creates an overdraft. If the Credit Union has contractually agreed to provide you with overdraft protection, such as through a share transfer agreement, it will pay overdrafts in accordance with the terms of the applicable agreement(s) when sufficient funds are available through such agreements to pay the overdrafts. When determining whether a check or other transaction presented for payment from your Checking Account is an NSF Transaction, both for the purpose of determining whether and how to pay the transaction and whether a fee related to the transaction being an overdraft may be charged, the Credit Union will use the “Available Balance” for your Checking Account at the time the transaction is presented. The Available Balance is the balance shown on our books (“Ledger Balance”) reduced by (i) the amount of any holds in place with respect to deposited checks or other items, (ii) the amount in the account that is subject to any preauthorization requests related to the account that have been accepted by the Credit Union, (iii) amounts in the account that are subject to holds based on court, tax agency, or other governmental proceedings, and (iv) amounts that we believe are subject to a dispute over ownership or other rights. Examples of preauthorization requests are holds related to purchase transactions where the final amount is initially unknown, such as gas station purchases, restaurant charges, and hotel or car reservations, but there are other types of preauthorization requests that could affect your account as well. Note that the use of the Available Balance for these purposes may cause a fee related to an overdraft to be charged, or a line of credit advance or transfer from another account to be made, even though your periodic statement may not reflect any time when the balance (periodic statements use Ledger Balances) would be negative. Truncated Checks; Statements. Your canceled checks (the checks drawn against your account that we honor) will not be returned to you, they will become Credit Union property and be held by us (“"truncated”") for you. They also may be truncated earlier in the check clearing process, such as by the bank into which the payee deposits them. This may be done either pursuant to a contractual electronic presentment process or under a federal law commonly referred to as “Check 21.” Your monthly statement will itemize your canceled checks by number, date of clearing and the amount of the check. Any objection respecting any item shown on a periodic statement is waived unless made in writing to the Credit Union within sixty (60) days after the statement is mailed. A copy of any check will be available to you as required by law. There may be a small fee to obtain a copy of a check (see the Fee Schedule for a list of fees). When a copy of a check is requested, the Credit Union may provide it to you in the form of a “substitute check” as prescribed in the “Check 21” law. Upon issuance, the Credit Union will provide you with a disclosure regarding your rights regarding substitute checks and how you may make a claim for a refund for losses related to a substitute check. Stop Payments.