Common use of Notice of Security Breach Clause in Contracts

Notice of Security Breach. If Client or its Vendor has reason to believe that a Security Procedure has or may have become compromised in any manner or is known by unauthorized persons (whether or not employed by Client), Client must immediately notify Bank by telephone and confirm the oral notification in writing within twenty-four (24) hours. Bank will act on Client’s notice as soon as practical and will replace the Security Procedure in accordance with its security requirements. Client will be solely liable for all instructions and other communications that were initiated utilizing the Security Procedure before Bank received and had reasonable opportunity to act on such notice. In the event of a security breach, Client agrees to cooperate with Bank in connection with Xxxx’s incident response investigation in a timely manner and to provide any information requested by Bank within two Business Days of the request. Client will permit Bank’s authorized persons access to Client’s computer systems in connection with such investigation. Any security breach on Client’s system is at Client’s sole risk and Client will indemnify and hold Bank harmless from and against any claim arising in connection with a data security breach, except to the extent the breach is caused by Bank’s gross negligence or the gross negligence of Bank’s Vendor. Client understands that Client is solely responsible for any damages sustained as a result, directly or indirectly, of an incident that occurs because of a virus or other breach of security on Client’s system, including any breach of Client’s system that directly or indirectly thereafter results in a transfer of funds from Client’s Accounts.

Notice of Security Breach. If Client or its Vendor has reason to believe that a Security Procedure has or may have become compromised in any manner or is known by unauthorized persons (whether or not employed by Client), Client must immediately notify Bank by telephone and confirm the oral notification in writing within twenty-four (24) hours. Bank will act on Client’s notice as soon as practical and will replace the Security Procedure in accordance with its security requirements. Client will be solely liable for all instructions and other communications that were initiated utilizing the Security Procedure before Bank received and had reasonable opportunity to act on such notice. In the event of a security breach, Client agrees to cooperate with Bank in connection with XxxxBank’s incident response investigation in a timely manner and to provide any information requested by Bank within two Business Days of the request. Client will permit Bank’s authorized persons access to Client’s computer systems in connection with such investigation. Any security breach on Client’s system is at Client’s sole risk and Client will indemnify and hold Bank harmless from and against any claim arising in connection with a data security breach, except to the extent the breach is caused by Bank’s gross negligence or the gross negligence of Bank’s Vendor. Client understands that Client is solely responsible for any damages sustained as a result, directly or indirectly, of an incident that occurs because of a virus or other breach of security on Client’s system, including any breach of Client’s system that directly or indirectly thereafter results in a transfer of funds from Client’s Accounts.