Returning Checks Sample Clauses
The Returning Checks clause outlines the procedures and responsibilities related to the return of checks that cannot be processed or are dishonored. Typically, this clause specifies the circumstances under which a check may be returned, such as insufficient funds or incorrect account information, and details the steps the payee or financial institution must take upon return, including notification requirements and possible fees. Its core practical function is to ensure both parties understand the process and consequences of returned checks, thereby reducing confusion and allocating responsibility for failed payments.
Returning Checks. We may return any other form, any item that does not include your manual or facsimile signature (even though the item might indicate you have authorized it), any item that appears to us to be irregular, incomplete, forged or altered, or any item or transfer that we otherwise suspect may not be properly payable. If items are presented which appear to be duplicates, we may return either or both duplicates. We may convert your paper checks into substitute checks for purposes of return. Unless the context indicates otherwise, references in this Agreement to a “check” or an “item” include any relevant substitute check and any paper or electronic representation thereof.
Returning Checks. We do not have to pay (and may return unpaid) any Check if: • You are in default under this Agreement; • We suspended or terminated your credit privileges; • We told you not to use the Account, Card or Checks for any reason; • The Check is postdated or stale. This means the date you put on the check is a date which is either (1) later than the date we get it, or (2) more than six months before the date we get it; or • You did not fully complete and/or sign the Check. If we pay a Check anyway, you still have to pay us the amount of that Check and any applicable interest or fees. If we don’t pay a Check, we may charge a Returned Check Fee.