Novation Credit Union Member ACH Terms and Conditions

ACH Transactions

This provision applies to funds transactions as defined in Article 4A of the Uniform Commercial Code. By using ACH transactions through Novation, you authorize us to transfer funds according to your instructions (“payment order”) to and from your designated account(s), or to (external) and from another financial institution involving any type(s) of your accounts with Novation that permit ACH transactions, including but not limited to, debit accounts, depository accounts, loan repayment, and all other account(s) transactions where debiting for ACH is available. You may revoke your authorization for ACH transactions at any time regarding any of your account(s) upon notification to Novation in writing.  You authorize us to transaction funds according to your instructions (“payment order”) to and from your designated account(s), or to (external) and from another financial institution involving any type(s) of your accounts with Novation that permit ACH transactions, including but not limited to, debit accounts, depository accounts, loan repayment, and all other account(s) transactions where debiting for ACH is available. You may revoke your authorization for ACH transactions at any time regarding any of your account(s) upon notification to Novation in writing. You also authorize us to charge your account for any related fees or service charges. We may require that transactions follow certain security procedures. We will notify you of any such security procedures and you agree that our security procedures are commercially reasonable. Cut-off times may apply to the receipt, execution and processing of funds transactions, payment orders, cancellations, and amendments and if received after a cut-off time, may be treated as having been received on the next following funds transaction business day. Information about any cut-off times is available upon request. When processing a payment order, payment may be made based solely on the account number provided in the payment order, even if that account number identifies a beneficiary other than the one that you name in the payment order. Similarly, if the payment order identifies the name, routing number and transit number of the beneficiary’s financial institution, payment may be made solely on the basis of the routing and transit number, even if those numbers do not correspond to the name of the financial institution that you supplied.

You agree that your obligation to pay the ACH  transaction is not affected if the identifying numbers do not match the named beneficiary or financial institution. You are also responsible for any loss or expenses incurred by a receiving bank which executes or attempts to execute the payment order in reliance on the identifying number you provided. We may also pay ACH transactions received by us for your benefit based solely on the account number. We may refuse to accept or execute any payment order, or an amendment or cancellation thereof, and we shall be deemed to have accepted a payment order or its amendment or cancellation only upon execution thereof. We may reject or refuse to accept or execute a payment order if (1) the designated account(s) does not contain sufficient available or collected funds; (2) the account number that you provide on the payment order does not correspond to any known account with us; (3) the payment order is not authorized or does not comply with applicable security procedures; (4) we are prohibited from doing so due to applicable law; or (5) we have a good-faith, reasonable cause for rejecting the payment order. All transactions shall be shown on your periodic account statement and reflection on the statement shall constitute notice of receipt of the transaction. You may inquire whether a specific transaction has been received at any time during our normal business hours and/or by any means that we provide you for making inquiries on your accounts. We are not responsible for any transmission performance failure as a result of interruption in transaction facilities; power failures; equipment malfunctions; labor disputes; emergency conditions; fire, flood, or other natural disasters; war or terrorist attack; or other circumstances beyond our control. We are also not responsible for transaction failures due to suspension of payment by another party, or refusal or delay by another financial institution to accept the transaction, or if we are prohibited from performing under any applicable law. We shall not be liable for any special, indirect, consequential or punitive damages arising from any failure or delay in processing a payment order or related obligation. In no case shall we pay attorney’s fees or other legal expenses incurred in connection herewith. If we become obligated under Article 4A to pay dividends to you, you agree that the rate of dividends to be paid shall be equal to the dividend rate, on a daily basis, applicable to the account to which the funds transaction was made.

If you send an international ACH  transaction that identifies a beneficiary bank located outside of the United States, you agree that we do not guarantee the receipt or timely processing of the funds on the part of the foreign beneficiary bank. At the time of the international transaction request, you will receive a receipt and disclosures regarding the transaction, including your rights regarding cancellation and resolution of errors, in accordance with Regulation E. By sending an international ACH  transaction, you understand that we have no control over how or when the funds are received or processed by the foreign beneficiary bank and that it could take up to one month or longer for the ACH d funds to be processed by the foreign beneficiary bank. Therefore, except as otherwise provided in Regulation E, (a) you understand and acknowledge that by sending an international ACH  transaction according to the financial institution and account information you provide us, you accept all risk associated with your ACH  transaction request; and (b) we will not be held liable or responsible to refund you any of the funds or costs associated with executing your request where the funds you sent were lost, destroyed, not processed, or not received by the foreign beneficiary bank. You further acknowledge that we are prohibited from processing and executing requests where the federal government has enforced economic and trade sanctions against named foreign countries, or where the federal government has prohibited us from doing business with named financial institutions.

International ACH Transactions

International ACH Transactions (IAT) that are transmitted to or from any of your accounts may be identified and designated by us for review and examination under the Office of Foreign Assets Control Rules and Regulations (OFAC Rules). In such a case, settlement of the IAT may be delayed or suspended, and may be terminated under applicable OFAC Rules. You also acknowledge that we may be required to place an indefinite hold on funds covered by the IAT if the IAT is required to be terminated under OFAC Rules. You agree that any such delay is permissible under the laws applicable to the availability of funds held in deposit accounts. In the event an IAT is delayed or terminated, we will provide you such notice as may be required by applicable law.

Choice of Law

We may accept, on your behalf, payments to your account which have been transmitted through one or more Automated Clearing Houses (ACH), and which are not subject to the Electronic Fund Transaction Act. Your rights and obligations with respect to such payments shall be construed in accordance with and governed by UCC Article 4A, and the laws of the State of Minnesota, and as provided by the operating rules of the National Automated Clearing House Association.