Common use of Standing Instruction Clause in Contracts

Standing Instruction. a. Where the directions you gave to the Bank in relation to an automatic payment are for the purpose of business, the Bank accepts those directions without any responsibilities or liability for any refusal or omission to make all or any of the automatic payment, for late payment, or for any omission to follow such direction. b. The Bank will use reasonable care and skills to give effect to the directions you give to it in relation to an automatic payment. The Bank relies on the accuracy of the automatic payment information you give and is not required to check its accuracy. You should advise the Bank immediately for any information about automatic payment shown on your bank statement, which is incorrect. c. An automatic payment authority is subject to any arrangement now or hereafter subsisting between you and the Bank in relation to your account. d. The Bank may make automatic payment in any order it wishes. The payment will be subject to clearance against available funds and maybe honored, failed or reversed, if funds are not available. e. The automatic payment will remain in force until: i) terminated by the Bank or the payee, ii) you instruct the Bank to cancel it, iii) when there is a permanent absence of customer, or iv) in the event of death or bankruptcy, until the Bank is notified of your death or bankruptcy. f. The Bank will not be involved in any dispute between you and any person arising out of automatic payment. g. Any request to make an automatic payment that does not use a standard form of the Bank will be deemed to include the term set out in the Bank’s standard form. If there is any inconsistency between the two forms, the terms of the Bank’s standard form shall prevail.