Common use of Prefunding Clause in Contracts

Prefunding. To qualify Customer as an ACH Originator, Bank may require credit transactions to be prefunded. If prefunding is required, Customer will be required to have sufficient collected funds on deposit in the Offset Account on ACH submission dates as a condition for Bank’s processing of any outgoing ACH Credit Entry. When prefunding is in place, the offset transaction to remove funds from Customer’s account will occur on the date the transactions are submitted rather than on the Effective Entry Date. Bank’s normal overdraft policies and fees will apply if sufficient funds are not available.