Common use of Claims that Third Parties Make Against Us Clause in Contracts

Claims that Third Parties Make Against Us. You understand that we are required to make certain warranties and have certain indemnity and other responsibilities to third parties with respect to deposits made to your account (for example, we may have responsibility to third parties for items that you deposit with forged, unauthorized or missing endorsements, and items that have been altered or improperly encoded) and that other claims may be made against us by third parties arising out of handling your deposits (all such claims referenced in this sentence are referred to collectively as “Warranty Claims”). Warranty Claims include claims: (i) that are made after the drawee’s midnight deadline; and (ii) asserted by electronic, paper or other means. If we receive notice of a Warranty Claim, we may place a hold on your account for the amount of the claim. If you request us to, or if we are otherwise required to, dispute or defend against any Warranty Claim (for example, by asserting that the paying bank is required to assert its defenses against its customer), and if we agree to do so, you are responsible for reimbursing our costs and expenses (including reasonable attorneys' fees). We may deduct from your account the amount of any Warranty Claim that we pay in good faith. We may exercise the rights set forth in this paragraph, even if doing so may create an Overdraft in your account. If sufficient funds are not available in your account, you agree to reimburse us for the amount of such claim. Our rights of deduction and reimbursement are absolute and unconditional, shall survive any termination of our relationship with you, and shall not, for any reason whatsoever, be subject to any reduction, setoff, defense, counterclaim, deferment or right of recoupment. We are not required to give you notice prior to exercising our rights under this section. These rights apply to, among other things, direct deposits of government benefits, wire transfers into your account, other direct deposits coming from third parties, deposits made after dissolution (including deposits of checks made payable to you), and deposits that are claimed to have been altered, improperly endorsed, mis-encoded or otherwise in violation of applicable warranties under the Uniform Commercial Code, and items you created (or instructed us to create) that were not properly authorized.

Claims that Third Parties Make Against Us. You understand that we are required to make certain warranties and have certain indemnity and other responsibilities to third parties with respect to deposits made to your account (for example, we may have responsibility to third parties for items that you deposit with forged, unauthorized or missing endorsements, and items that have been altered or improperly encoded) and that other claims may be made against us by third parties arising out of handling your deposits (all such claims referenced in this sentence are referred to collectively as “Warranty Claims”). Warranty Claims include claims: (i) that are made after the drawee’s midnight deadline; and (ii) asserted by electronic, paper or other means. If we receive notice of a Warranty Claim, we may place a hold on your account for the amount of the claim. If you request us to, or if we are otherwise required to, dispute or defend against any Warranty Claim (for example, by asserting that the paying bank is required to assert its defenses against its customer), and if we agree to do so, you are responsible for reimbursing our costs and expenses (including reasonable attorneys' fees). We may deduct fees).BWacek tmo Taoypdeduct from your account the amount of any Warranty Claim that we pay in good faith. We may exercise the rights set forth in this paragraph, even if doing so may create an Overdraft in your account. If sufficient funds are not available in your account, you agree to reimburse us for the amount of such claim. Our rights of deduction and reimbursement are absolute and unconditional, shall survive any termination of our relationship with you, and shall not, for any reason whatsoever, be subject to any reduction, setoff, defense, counterclaim, deferment or right of recoupment. We are not required to give you notice prior to exercising our rights under this section. These rights apply to, among other things, direct deposits of government benefits, wire transfers into your account, other direct deposits coming from third parties, deposits made after dissolution (including deposits of checks made payable to you), and deposits that are claimed to have been altered, improperly endorsed, mis-encoded misencoded or otherwise in violation of applicable warranties under the Uniform Commercial Code, and items you created (or instructed us to create) that were not properly authorized.