Fraud Losses on Accounts Sample Clauses

Fraud Losses on Accounts. (a) Notwithstanding Bank’s right to chargeback to Retailer any Indebtedness under Section 7.1, if Bank determines in its reasonable discretion that the basis for such chargeback right constitutes Uncontrollable Fraud, then, with respect to each such incidence of Uncontrollable Fraud during any Program Year (and without limiting Retailer’s obligation with respect to amounts payable for any other reason under Section 7.1, including without limitation amounts payable as a result of fraud performed by or in collusion with Retailer’s employees, contractors or agents), Bank’s right to chargeback the related charge or credit under Section 7.1 shall be limited to fifty percent (50%) of the aggregate amount otherwise subject to chargeback until the Fraud Cap then in effect for such Program Year has been reached. Once the Fraud Cap has been reached for any Program Year, Retailer shall be responsible and liable for all subsequent chargebacks attributable to Uncontrollable Fraud and shall pay Bank such amount as set forth in Section 7.2(b). As used herein, the following terms shall have the following meanings: (i) “

Fraud Losses on Accounts. With respect to amounts payable under Section 7.1 in connection with Uncontrollable Fraud (and without limiting LESCO's obligation with respect to amounts payable for any other reason under Section 7.1), LESCO agrees to pay to Bank promptly upon demand, an amount equal to all losses, including accrued finance charges and fees, incurred by Bank in any given Program Year resulting from Uncontrollable Fraud, once such losses exceed the amount of the Fraud Cap established for such Program Year. Bank may make demand for payment hereunder from time to time at any time during a Program Year (or set off such amounts pursuant to Section 3.1(b)) after the losses, including accrued finance charges and fees, incurred by Bank and resulting from Uncontrollable Fraud exceed the Fraud Cap for such Year. In calculating fraud losses, an incident of Uncontrollable Fraud will be attributed to the Program Year in which the fraudulent act was perpetrated and not to the Year in which such fraud is discovered (if different from the Year of perpetration). The "Fraud Cap" for the first Program Year shall be (REDACTED). As used herein, the following terms shall have the following meanings: (a) "Uncontrollable Fraud" shall mean acts of fraud perpetrated by persons other than employees, contractors or agents of LESCO, which acts of fraud occur despite LESCO's full compliance with this Agreement and the Operating Procedures then in effect; and (b) "Fraud Cap" means, for any Program Year after the first Program Year, an amount equal to the product of (i) Net Program Sales for the immediately preceding Program Year, and (ii(REDACTED); the percentage used in calculating the Fraud Cap shall be subject to review and adjustment by Bank at the beginning of each Program Year.