Common use of Compliance with Security Procedures Clause in Contracts

Compliance with Security Procedures. a. If an Entry (or a request for cancellation or amendment of a File) received by the Bank purports to have been transmitted or authorized by the Business Entity, it will be deemed effective as the Business Entity's Entry (or request) and the Business Entity shall be obligated to pay the Bank the amount of such Entry (or request) even though the Entry (or request) was not actually authorized by the Business Entity, whether or not the Bank acted in compliance with the security procedure referenced in Schedule A. If signature comparison is to be used as a part of that security procedure, the Bank shall be deemed to have complied with that part of such procedure if it compares the signature accompanying a file of Entries (or request) with the signature of an Authorized Representative of the Business Entity and, on the basis of such comparison, believes the signature to be that of such Authorized Representative.

Compliance with Security Procedures. a. a) If an Entry (or a request for cancellation or amendment of a File) received by the Bank purports to have been transmitted or authorized by the Business Entity, it will be deemed effective as the Business Entity's Entry (or request) and the Business Entity shall be obligated to pay the Bank the amount of such Entry (or request) even though the Entry (or request) was not actually authorized by the Business Entity, whether or not the Bank acted in compliance with the security procedure referenced in Schedule A. If signature comparison is to be used as a part of that security procedure, the Bank shall be deemed to have complied with that part of such procedure if it compares the signature accompanying a file of Entries (or request) with the signature of an Authorized Representative of the Business Entity and, on the basis of such comparison, believes the signature to be that of such Authorized Representative.