Common use of Inconsistency of Name and Account Number Clause in Contracts

Inconsistency of Name and Account Number. The Third-Party Sender acknowledges and agrees that, if an Entry describes the Receiver inconsistently by name and account number, payment of the Entry transmitted by Financial Institution to the RDFI may be made by the RDFI (or by Financial Institution in the case of an On-Us Entry) on the basis of the account number supplied by the Third-Party Sender, even if it identifies a person different from the named Receiver, and that the Third-Party Sender’s obligation to pay the amount of the Entry to Financial Institution is not excused in such circumstances. Third-Party Sender is liable for and must settle with Financial Institution for any Entry initiated by Third-Party Sender that identifies the Receiver by account or identifying number or by name and account or identifying number.