Legal PAD Agreement

LEGAL PAD AGREEMENT

This Pre‑Authorized Debit Agreement (the "Agreement") is entered into on Effective Date: between Payee Name: (entity type: Individual Corporation), with Payee Address: and Payer Name: (entity type: Individual Corporation), with Payer Address: . The Payee and the Payer are each a "Party" and together the "Parties."

RECITALS

WHEREAS the Payee provides goods and/or services for which the Payer owes periodic payments; and

WHEREAS the Parties wish to set out the terms and conditions under which the Payee will be authorized to withdraw funds from the Payer's designated account by pre‑authorized debit for payment of amounts owing; and

WHEREAS the Payer wishes to grant such authorization subject to the terms and conditions set forth below.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Parties agree as follows:

1. DEFINITIONS

In this Agreement, unless the context otherwise requires: "Authorized Debit" means a debit drawn by the Payee pursuant to the authorization granted by the Payer under this Agreement; "Business Day" means a day other than a Saturday, Sunday or public holiday in the jurisdiction of the Payer's bank; and "Financial Institution" means the bank or other institution at which the Payer maintains the account to be debited.

2. AUTHORIZATION

The Payer hereby authorizes the Payee to initiate Authorized Debits against the bank account designated in Section 4 in accordance with the payment details specified in Section 3. This authorization is a continuous authorization and remains in effect until terminated in accordance with Section 5. The Payer warrants that the person signing this Agreement is authorized to provide this authorization and to instruct the Financial Institution to honor debits initiated by the Payee.

3. PAYMENT DETAILS

Amount to be debited (if fixed): . If payments are variable, indicate basis for variance:

Payment frequency: ; Payment start date: ; Payment end date (if any):

4. BANKING INFORMATION

Account type: Checking Savings

5. TERM, TERMINATION AND REVOCATION

This Agreement is effective on the Payment Start Date and continues until terminated by either Party in accordance with this Section. The Payer may revoke this authorization by providing written notice to the Payee at least days prior to the next scheduled debit. Termination of this Agreement does not affect the Payee's right to recover amounts debited prior to termination.

6. NOTICES

All notices under this Agreement shall be in writing and delivered to the addresses for notices set out below. Notice is deemed given on the date of delivery if delivered in person, on the next Business Day if sent by overnight courier, or three Business Days after posting if mailed.

7. REFUNDS, DISPUTES AND ERRORS

If a debit is not consistent with this Agreement, the Payer may notify its Financial Institution and the Payee to request a reversal or correction. The Payee shall promptly investigate and, if the debit was in error or unauthorized, issue a refund without undue delay. The Payer remains responsible for amounts properly authorized and owing under this Agreement.

8. REPRESENTATIONS AND WARRANTIES

The Payer represents and warrants that the information provided for the account is correct, that the Payer has the authority to authorize debits on the account, and agrees to notify the Payee of any change to the account information or termination of this authorization. The Payee represents that it will debit only in accordance with this Agreement and will maintain appropriate records of debits and notices.

9. LIABILITY AND INDEMNITY

Each Party is responsible for losses arising from its own negligence or breach of this Agreement. The Payer agrees to indemnify and hold the Payee harmless from claims, liabilities or costs resulting from incorrect or incomplete account information provided by the Payer or failure to give required notices.

10. CONFIDENTIALITY

Each Party shall keep confidential any banking or financial information obtained under this Agreement and shall use such information solely for the purposes of performing its obligations hereunder, except as required by law or regulatory obligation.

11. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

This Agreement shall be governed by and construed in accordance with the laws of the jurisdiction specified below. This Agreement constitutes the entire agreement between the Parties with respect to its subject matter and supersedes all prior negotiations and agreements. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect.

Governing law jurisdiction:

12. AMENDMENT, WAIVER AND COUNTERPARTS

Any amendment or waiver of any provision of this Agreement must be in writing signed by both Parties. Waiver of any breach shall not constitute a waiver of any subsequent breach. This Agreement may be executed in counterparts, each of which shall be an original but all of which together shall constitute one instrument.

13. MISCELLANEOUS

Headings are for convenience only and do not affect interpretation. Time is of the essence in respect of any dates or notice periods set out in this Agreement. Currency references are to the lawful currency specified by the Parties in payment arrangements.

NOTES FOR PARTIES

The Payer should retain a copy of this Agreement. The Payee will retain records of all debits and will provide written confirmation of any material changes to the schedule or amounts in advance of such changes.

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