Legal · Version 1.0 · Not yet in effect
ACH Authorization
This is the authorization you give when you link a bank account in Common Ridge and each time you approve a capital call payment. It follows the rules of the National Automated Clearing House Association (Nacha). The payments are processed by a regulated payment provider and its bank partners. Common Ridge LLC instructs transfers and does not hold your money.
1. What you authorize
By accepting, you authorize the fund manager named in the call or distribution, and Common Ridge and its payment provider acting for it (together, the "Originator"), to:
- initiate debit entries to the bank account you identify, for the amount and by the date shown on the capital call that you approve, and to correct an erroneous entry as the rules allow; and
- initiate credit entries to the bank account you identify, for distributions and other amounts the fund owes you.
You authorize your bank, the depository financial institution, to post those entries to your account.
2. Authorization for each capital call
A debit is authorized for one capital call at a time. Before a debit, the service shows you the fund, the amount, the due date and the account, and asks you to confirm. This is a one-time authorization for that call. It is not a standing authorization for future calls. We record the text you accepted as a hash, with the time, your IP address and your device details.
3. Account ownership
You confirm that you own the account or are authorized to give this authorization on it, that it is a U.S. bank account, and that the name on it matches the investor entity you act for. You must keep the account open and funded when a debit is due.
4. Verification and timing
A new account is verified through Plaid or by micro-deposits, and has a cooling period before it can be debited or credited. The fund manager sets limits on amounts. Debits and credits settle on the schedule of the ACH network. Availability depends on your bank.
5. Returned or failed entries
If a debit is returned, for example for insufficient funds, the fund manager may be unable to treat your payment as made. We may retry once with your consent. Some return reasons, such as a closed account or an authorization problem, disable the account until you link it again. You remain responsible for the amount owed under your agreements with the fund. [Counsel to confirm: return fees, if any, and any pass-through of bank charges.]
6. Revoking this authorization
You may revoke an authorization by telling us, and the fund manager, in a way that gives us a reasonable chance to act before the scheduled debit. To revoke a scheduled debit, notify us at least three banking days before the debit date, in the portal or at support@commonridge.com. Revoking does not release you from an amount you owe under your agreements with the fund.
7. Unauthorized or incorrect entries
If you see a debit you did not authorize, or an incorrect amount or date, contact your bank and us right away. Rules protect consumers who report unauthorized entries on a personal account within the time stated by law and by your bank, which is generally 60 days from the statement that shows the entry. Different rules apply to business accounts. [Counsel to confirm: consumer and business account language.]
8. Records
We keep a copy of each authorization for at least two years after it is revoked or ends, and give you a copy on request.
9. Compliance
Entries are subject to the Nacha Operating Rules and U.S. law. You agree not to use the service for any transaction that violates them.