Common use of Returned Items/Transactions Clause in Contracts

Returned Items/Transactions. If we are notified that an item you cashed or deposited is being returned unpaid, we may attempt to re-clear the item, place a hold on the funds in question (see “Funds Availability”) or charge your account for the amount (and any interest earned on it), whether or not the return or notice of non-payment is proper or timely. This also applies to checks drawn on us which are not paid for any reason, and to checks and other transactions that are returned or charged back to us in accordance with any law, regulation, funds transfer system or clearinghouse rule. We may assess a fee for each returned item/transaction. An item/transaction can be represented for payment multiple times and the same item/transaction might result in multiple fees. See the Fee Schedule (“Returned Deposit Item Fee” “NSF Returned Item Fee”). If we receive an affidavit or a declaration under penalty of perjury stating that an endorsement on an item deposited to your account is forged, that the item contains an alteration, or that there has been a breach of warranty in connection with any item or transaction, we may charge the item or transaction back against your account or place a hold on the funds pending an investigation, without prior notice to you. You grant us a security interest in your accounts, including all current and future deposits and renewals, for amounts owing to us now and/or in the future under this Agreement or under any account service agreement by any owner. This security interest is in addition to any other security interest we may have in your accounts or other assets. This security interest will survive termination of this Agreement. This provision does not apply to IRA or tax-qualified retirement accounts or where otherwise prohibited by law. Subject to applicable law, we may use the funds in all of your accounts to pay any due and payable debt(s) and obligation(s) that you owe us which are not paid when due. This is referred to as a “setoff.” Generally, you agree that all sums in deposit accounts will be subject to our right of setoff for liabilities owed to us by any one or more of: the account owners, including any other person who is a joint account owner; or any partnership of which you are a general partner; or any limited liability company where you are the sole member; or any sole proprietorship you own; or any account established under the same social security number(s) or employer identification number(s); or any other person or entity with whom you are a co-obligor, or have agreed to act as surety or guarantor, or for whose debts you are liable or may be contingently liable; or otherwise as permitted by law. You authorize us to use account funds to pay your debts and obligations to us even if the setoff results in an early withdrawal penalty or the dishonor of items. If we exercise our right of setoff, our duty to pay any items presented for payment on your account during the Business Day preceding the day on which the setoff occurs may be terminated, and you agree that we may return those items unpaid. If we do return items, we may also charge you a fee for each returned item. See the Fee Schedule (“NSF Returned Item Fee”). You acknowledge and agree that our rights of setoff could bring your account into an overdraft status. See the section titled “Overdrafts” for further information. If the debt arises from a note, “any due and payable debt” includes the total amount of which we are entitled to demand payment under the terms of the note at the time we charge the account, including any balances for which we properly accelerated the due date under the note. We will not be liable for the dishonor of any item or draft when the dishonor occurs because we charge and deduct an amount you owe us from your account. You agree to hold us harmless from any claim arising as a result of our exercise of our right to repayment. This provision does not apply to IRA or tax-qualified retirement accounts, to consumer credit card obligations, or where otherwise prohibited by law.

Returned Items/Transactions. If we are notified that an item you cashed or deposited is being returned unpaid, we may attempt to re-clear the item, place a hold on the funds in question (see “Funds Availability”) or charge your account for the amount (and any interest earned on it), whether or not the return or notice of non-payment is proper or timely. This also applies to checks drawn on us which are not paid for any reason, and to checks and other transactions that are returned or charged back to us in accordance with any law, regulation, funds transfer system or clearinghouse rule. We may assess a fee for each returned item/transaction. An item/transaction can be represented for payment multiple times and the same item/transaction might result in multiple fees. See the Fee Schedule (“Returned Deposit Item Fee” “NSF Returned Item Fee”). If we receive an affidavit or a declaration under penalty of perjury stating that an endorsement on an item deposited to your account is forged, that the item contains an alteration, or that there has been a breach of warranty in connection with any item or transaction, we may charge the item or transaction back against your account or place a hold on the funds pending an investigation, without prior notice to you. You grant us a security interest in your accountsaccount, including all current and future deposits and renewals, for amounts owing to us now and/or in the future under this Agreement or under any account service agreement by any owner. This security interest is in addition to any other security interest we may have in your accounts or other assets. This security interest will survive termination of this Agreement. This provision does not apply to IRA or tax-qualified retirement accounts or where otherwise prohibited by law. Subject to applicable law, we may use the funds in all of your accounts to pay any due and payable debt(s) and obligation(s) that you owe us which are not paid when due. This is referred to as a “setoff.” Generally, you agree that all sums in deposit accounts will be subject to our right of setoff for liabilities owed to us by any one or more of: the account owners, including any other person who is a joint account owner; or any partnership of which you are a general partner; or any limited liability company where you are the sole member; or any sole proprietorship you own; or any account established under the same social security number(s) or employer identification number(s); or any other person or entity with whom you are a co-obligor, or have agreed to act as surety or guarantor, or for whose debts you are liable or may be contingently liable; or otherwise as permitted by law. You authorize us to use account funds to pay your debts and obligations to us even if the setoff results in an early withdrawal penalty or the dishonor of items. If we exercise our right of setoff, our duty to pay any items presented for payment on your account during the Business Day preceding the day on which the setoff occurs may be terminated, and you agree that we may return those items unpaid. If we do return items, we may also charge you a fee for each returned item. See the Fee Schedule (“NSF Returned Deposit Item Fee”). You acknowledge and agree that our rights of setoff could bring your account into an overdraft status. See the section titled “Overdrafts” for further information. If the debt arises from a note, “any due and payable debt” includes the total amount of which we are entitled to demand payment under the terms of the note at the time we charge the account, including any balances for which we properly accelerated the due date under the note. We will not be liable for the dishonor of any item or draft when the dishonor occurs because we charge and deduct an amount you owe us from your account. You agree to hold us harmless from any claim arising as a result of our exercise of our right to repayment. This provision does not apply to IRA or tax-qualified retirement accounts, to consumer credit card obligations, or where otherwise prohibited by law.