Common use of Stop Payment Orders Clause in Contracts

Stop Payment Orders. If you request us to stop payment on a check, you will be charged the stop payment fee listed on our Business Schedule of Charges and we will make a good faith effort to do so. The stop payment order must describe the check with reasonable certainty (must include date, check number, amount of check and payee). If the stop payment order does not do so, or if we do not have a reasonable opportunity to act on it, we will not be liable if we fail to stop payment, or if our payment of the check causes other checks to be returned for insufficient funds. If we do stop payment of a check at your direction, you agree to pay all costs we may incur as a result. A written stop payment order is good for 6 (six) months unless we receive written notice to remove it or renew it before the 6 (six) month period expires. Any renewal of a stop payment order will be good for an additional 6 (six) months. Each stop payment order is subject to the Bank’s verification that the check described in the order has not been paid. This verification may occur subsequent to the time the Bank accepts the stop payment order. An oral stop payment order will lapse after fourteen calendar days if you do not confirm the order in writing within that time.