Common use of Preauthorized EFTs Clause in Contracts

Preauthorized EFTs. Direct Deposit. Upon instruction of (i) your employer or (ii) the Treasury Department or (iii) other financial institutions, the Credit Union will accept direct deposits of your paycheck or of federal recurring payments, such as Social Security, to your share or checking account. • Preauthorized Debits. Upon instruction, we will pay certain recurring transactions from your share or checking account. • See Section 2 for transfer limitations that may apply to these transactions • ACH Origination: You have the ability to initiate an ACH Origination credit or debit between your Lafayette account and any accounts that you own at other participating financial institutions. Once an ACH origination has been initiated through your online banking profile, the system will place a 48 hour hold of funds in your LFCU account that totals the amount of funds that has been ordered to leave or come into the account via the ACH origination. This hold of funds will expire upon receipt of funds or 48 hours, whichever occurs first. LFCU has the right to extend this hold as it sees fit based on circumstances of the transaction. All ACH originations are subject to similar ACH fees as set forth in the Schedule of Fees. • Provisional ACH Payment. Lafayette Federal Credit Union may give you credit for ACH payments before it receives final settlement of the funds transfer. Any such credit is provisional until Lafayette Federal Credit Union receives final settlement of the payment. You are hereby notified, and agree, if Lafayette Federal Credit Union does not receive final settlement, that it is entitled to a refund from you of the amount credited to you as a result of the ACH entry. • Rules Governing ACH Items. ACH transactions are governed by the operating rules of the National Automated Clearinghouse Association. In accordance with these rules, Lafayette Federal Credit Union will not provide you with next day notice of a receipt of ACH credit transfers to your account. You will continue to receive notices of receipt of ACH items in the periodic account statements which we provide. • Stop Payment Rights. If you have arranged in advance to make regular electronic fund transfers out of your account(s) for money you owe others, you may stop payment of preauthorized transfers from your account. You must notify us orally or in writing at any time up to three (3) business days before the scheduled date of the transfer. We may require written confirmation of the stop payment order to be made within fourteen (14) days of any oral notification. If we do not receive the written confirmation, the oral stop payment order shall cease to be binding fourteen (14) days after it has been made.