Fillable Stop Payment Form - First State Bank Of Bedias (Page 3 of 3) in pdf

STOP PAYMENT RULES & REGULATIONS - CONSUMER

To ensure all future payments are stopped the merchant must be contacted to revoke authorization for recurring transactions. A

Written Statement Under Penalty of Perjury must be completed prior to returning an entry as R07 (authorization revoked).

**NACHA RULES:

Article Eight, Section 8.4, page OR27

Stop Payment Affecting Consumer Accounts

For all entries except ARC, BOC, RCK, POP, Single-Entry WEB, and TEL entries, a Receiver may stop the payment of a debit entry

initiated or to be initiated to a Consumer Account of the Receiver by providing either verbal or written notification to the RDFI at

least three banking days before the scheduled date of the transfer. An RDFI may honor a stop payment order received within the

three-banking-day limit prescribed above, and, if it honors such a request, the RDFI has no resultant liability or responsibility to any

Originator, ODFI, or other person having any interest in the entry. For ARC, BOC, RCK, POP, Single-Entry WEB, and TEL entries, the

stop payment order must be provided to the RDFI at such time and in such manner as to allow the RDFI a reasonable opportunity to

act upon the stop payment order prior to acting on the debit entry. The RDFI may require that written confirmation of a verbal stop

payment order be made within 14 days of a verbal stop payment order, provided that the RDFI notifies the Receiver of this

requirement and provides an address to which the written confirmation should be sent at the time the verbal order is provided. If

the RDFI requires written confirmation, the verbal stop payment order will cease to be binding after 14 days. A Receiver may

withdraw a stop payment order by providing written notice to the RDFI. A stop payment order will remain in effect (1) for six months

from the date of the stop payment order, (2) until payment of the debit entry has been stopped, or (3) until the Receiver withdraws

the stop payment order, whichever occurs earliest.

*REG E RULES:

205.10 Preauthorized transfers

(1) Notice. A consumer may stop payment of a preauthorized electronic fund transfer from the consumer’s account by notifying the

financial institution orally or in writing at least three business days before the scheduled date of the transfer.

(2) Written confirmation. The financial institution may require the consumer to give written confirmation of a stop-payment order

within 14 days of an oral notification. An institution that requires written confirmation shall inform the consumer of the requirement

and provide the address where confirmation must be sent when the consumer gives the oral notification. An oral stop-payment

order ceases to be binding after 14 days if the consumer fails to provide the required written confirmation.

REG E INTERPRETATION:

10(c) Consumer’s right to stop payment.

1. Stop-payment order. The financial institution must honor an oral stop-payment order made at least three business days before a

scheduled debit. If the debit item is resubmitted, the institution must continue to honor the stop-payment order (for example, by

suspending all subsequent payments to the payee-originator until the consumer notifies the institution that payment should

resume).

2. Revocation of authorization. Once a financial institution has been notified that the consumer’s authorization is no longer valid, it

must block all future payments for the particular debit transmitted by the designated payee-originator. (However, see comment

10(c)-3.) The institution may no wait for the payee-originator to terminate the automatic debits. The institution may confirm that

the consumer has informed the payee-originator of the revocation (for example, by requiring a copy of the consumer’s revocation as

written confirmation to be provided within 14 days of an oral notification). If the institution does not receive the required written

confirmation within the 14-day period, it may honor subsequent debits to the account.

3. Alternative procedure for processing a stop-payment request. If an institution does not have the capability to block a

preauthorized debit from being posted to the consumer’s account – as in the case of a preauthorized debit made through a debit

card network or other system, for example-the institution may instead comply with the stop payment requirements by using a third

party to block the transfer(s), as long as the consumer’s account is not debited for the payment.

STOP PAYMENT RULES AND RUGULATIONS – CORPORATE

**NACHA RULES:

Article Eight, Section 8.5, page OR28

Stop Payment Affecting Non-Consumer Accounts

A Receiver may order its RDFI to stop the payment of any debit entry initiated or to be initiated to a non-Consumer Account of the

Receiver. The stop payment order must be provided to the RDFI at such time and in such manner as to allow the RDFI a reasonable

opportunity to act upon the stop payment order prior to acting on the debit entry. The RDFI is obligated to comply with a verbal stop

payment order only for a period of fourteen calendar days unless the order is confirmed in writing within that 14-day period. A

written stop payment order is effective for six months unless it is renewed in writing.

Stop Payment Form - First State Bank Of Bedias Page 3

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