Postdated, Incomplete and Conditional Items Clause Samples
The "Postdated, Incomplete and Conditional Items" clause defines how the agreement treats checks or other payment instruments that are postdated, incomplete, or subject to conditions. In practice, this clause typically clarifies whether the bank or financial institution will accept, process, or reject such items, and may specify the customer's responsibilities for ensuring items are properly completed and unconditional. Its core function is to prevent disputes and operational issues by setting clear rules for handling non-standard payment instruments, thereby reducing the risk of fraud or processing errors.
Postdated, Incomplete and Conditional Items. You agree to hold us harmless from any and all loss and liability that we may incur due to our inadvertent payment of incomplete or postdated items, items endorsed "without recourse," or conditional items. You agree that we will not have any duty to discover or comply with postdated, incomplete, or conditional items. You agree that we may disregard any information on any check or draft other than the amount of the item, the identity of the drawee bank, any magnetically encoded information, and the signature of the drawer, regardless of whether that information is consistent with any other information on the item. You agree that we may decline to accept, process or pay any item or order that, in our estimation, is ambiguous or otherwise unclear in its terms. You also agree that, at our option, we may use our best efforts to resolve any such ambiguity and you agree to release and hold us harmless from any and all loss and liability that we may incur or that may arise in connection with our attempts to resolve any such ambiguity.
Postdated, Incomplete and Conditional Items. You agree to indemnify, defend, and hold us harmless from any and all loss and liability that we may incur due to our payment of incomplete or postdated items, items endorsed “without recourse,” or conditional ▇▇▇▇▇.▇▇▇ agree that we will not have any duty to discover or comply with postdated, incomplete, or conditional items, nor do we have any duty to comply with any notice of postdating we receive. You agree that we may disregard any information on any check or draft other than the amount of the item, the identity of the drawee bank, any magnetically encoded information, and the signature of the drawer, regardless of whether that information is consistent with any other information on the ▇▇▇▇.▇▇▇ agree that we may decline to accept, process or pay any item or order that, in our estimation, is ambiguous or otherwise unclear in its ▇▇▇▇▇.▇▇▇ also agree that, at our option, we may use our best efforts to resolve any such ambiguity and you agree to release, indemnify, defend, and hold us harmless from any and all loss and liability that we may incur or that may arise in connection with our attempts to resolve any such ambiguity. 6.Wire Transfers,Automated Clearing House (ACH), and Other Payment Order Transactions. (a) Governing Law and Regulations. If you send or receive a wire transfer, Fedwire may be used. Federal Reserve Board Regulation J is the law that covers transactions made over Fedwire. If you are a party to an Automated Clearing House (ACH) entry, you acknowledge and agree that any such entry will be governed by the National Automated Clearing House Association (NACHA) Operating Rules, the Rules of any local ACH, and the Rules of any other system through which the entry is made. Other payment orders you make may be governed by Chapter 4A of the Texas Business & Commerce Code. (b)
Postdated, Incomplete and Conditional Items. You agree to hold us harmless from any and all loss and liability which we may incur due to our inadvertent payment of incomplete or postdated items, items endorsed "without recourse", or conditional items. You agree that we will not have any duty to discover or comply with postdated, incomplete or conditional items. You agree that we may disregard any information on any check or draft other than the amount of the item, any magnetic and encoded information and the signature of the drawer. You agree that we may decline to accept, process, or pay any item or order which, in our estimation, is ambiguous or otherwise unclear in its terms. You also agree that, at our option, we may use our best efforts to resolve any such ambiguity and you agree to release and hold us harmless from any and all loss and liability which we may incur, or which may arise in connection with our attempts to resolve any such ambiguity or our choice not to attempt to resolve such ambiguity.
Postdated, Incomplete and Conditional Items. You agree to hold us harmless from any and all loss and liability which you may incur due to our inadvertent payment of incomplete or postdated items, items endorsed “without recourse”, or conditional items. You agree that we will not have any duty to discover or comply with postdated, incomplete or conditional items, nor will we have any duty to comply with any notice of postdating we receive. You agree that, due to our automated check processing procedures that are designed to process the greatest volume of items at the lowest cost to you, we may disregard any information on any check or draft other than the amount of the item, the identity of the drawee bank, any magnetically encoded information, and the signature of the drawer, regardless of whether that information is consistent with any other information on the item. This includes legends appearing on the item, but not encoded in the MICR line, even though those legends may be important for your own purposes. You agree that we may decline to accept, process, or pay any item or order that, in our estimation, is ambiguous or otherwise unclear in its terms. You also agree that, at our option, we may use our best efforts to resolve any such ambiguity and you agree to release and hold us harmless from any and all loss and liability that we may incur or that may arise in connection with our attempts to resolve any such ambiguity.
Postdated, Incomplete and Conditional Items. You agree to indemnify, defend and hold the Credit Union harmless from any and all loss and liability which may occur due to our inadvertent payment of incomplete, postdated items, items endorsed ‘without recourse’ or conditional items. You consent that we will not have any duty to discover or comply with postdated, incomplete or conditional items. Due to our automated check processing procedures designed to process the greatest volume of items at the lowest cost to you, you understand any information on any check or draft other than the amount of the item, the identity of the drawee bank and any magnetically encoded information (MICR) may be foregone regardless of whether the data is consistent with any other information on the item. This may include any legends appearing on the item, but not encoded in the MICR line, even though those legends are important to you for your own purposes. You concur that we may decline to accept, process or pay any item or order which we believe is
Postdated, Incomplete and Conditional Items. We process items mechanically by relying solely on the information encoded in magnetic ink along the bottom of the items. This means that we do not individually examine all of your items to determine if the items are properly completed, signed and endorsed or to determine if they contain any other information. You agree to indemnify, defend, and hold us harmless from any and all loss and liability that we may incur due to our payment of incomplete or postdated items, items endorsed “without recourse”, or conditional items. You agree that we will not have any duty to discover or comply with postdated, incomplete or conditional items, nor do we have the duty to comply with any notice of postdating that we receive. You agree that we may disregard any information on any check or draft other than the amount of the item, the identity of the drawee bank, the signature of the drawer, and any magnetic encoded information, whether or not that information is consistent with any other information on the item. We may decline to accept, process, or pay any item or order that, in our estimation, is ambiguous or otherwise unclear in its terms. You agree that, at our option, we may use our best efforts to resolve any such ambiguity and you agree to release and hold us harmless from any and all loss and liability that we may incur or that may arise in connection with our attempts to resolve any such ambiguity.
Postdated, Incomplete and Conditional Items. You agree to hold us harmless from any and all loss and liability which we may incur due to our inadvertent payment of incomplete or postdated items, items indorsed “without recourse” or conditional items. You agree that we will not have any duty to discover or comply with postdated, incomplete or conditional items. You agree that we may disregard any information on