Common use of Cap Clause in Contracts

Cap. If a Fax Instruction involves a transaction with a total amount exceeding the cap from time to time set by the Bank (“Cap”), the Bank shall, promptly upon its receipt of such Fax Instruction (“Cap Instruction”), contact the Contact Person via phone to confirm the content of such Cap Instruction. If the Bank fails to get in touch with the Contact Person to confirm the content of a Cap Instruction for whatever reasons, the Bank may refuse to act or execute such Cap Instruction unless the Bank and the Customer otherwise agree in writing. The Bank shall notify the Customer of the amount of the Cap upon the latter’s application for the services hereunder or upon the former’s change in the Cap. Notwithstanding the above, the Bank reserves the right (but is not obligated) to confirm via phone with the Contact Person about the content of a Fax Instruction which is not a Cap Instruction whenever deemed necessary by the Bank. If the Bank fails to get in touch with the Contact Person to confirm the content of a Fax Instruction for whatever reasons, the Bank may refuse to act or execute such Fax Instruction unless the Bank and the Customer otherwise agree in writing. It is acknowledged and agreed by the Customer that if the Bank, without contacting the Contact Person, acts in accordance with a Fax Instruction which is not a Cap Instruction, any and all liabilities or responsibilities arising from or in connection with such Fax Instruction shall be for the account of the Customer.