Banking Law

[jeremy]

I need to know what "Indemnity" means. The word appears on my term agreement for my bank account. The subtext states that I agree to indemnify my bank against any claims, costs, or liabilities incurred by my bank. What exactly does this mean. My email address is [email protected] and I appreciate any answers to this posting.

 

[racer72]

The definition is: protection against possible damage or loss, esp. a promise of payment, or the money paid if there is such damage or loss. This means you are responsible for any costs above and beyond the normal charges for providing the bank account. This includes charges for NSF checks, collections, legal fees, etc. that would be considered not part of everyday banking activity.