Common use of Our Responsibility for Honoring Transactions Clause in Contracts

Our Responsibility for Honoring Transactions. You acknowledge and agree that we will not be liable for honoring drafts, automated clearinghouse Transactions and other transfers from your account that purport to have been authorized by you or that we otherwise receive in the ordinary course of business (“Incoming Items”). These Incoming Items may include, but are not limited to: (i) substitute checks (and you agree that even if a substitute check does not satisfy all technical requirements for that status, such check may be deemed properly payable if the original check would have been properly payable had it been presented) and check images; (ii) transfers that appear to have been authorized by you, such as a preauthorized electronic funds transfer, a transfer initiated over the Internet or the telephone or a point of purchase Transaction where the merchant has converted your paper check into an electronic Transaction; or (iii) transfers that a third party may be permitted to initiate under applicable rules, such as a transfer that represents a permitted reversal or reclamation of an earlier transfer, a transfer pertaining to a destroyed or insufficient funds check, a transfer where a payee is permitted to convert your check into an electronic check Transaction and transfers pursuant to check truncation programs in which we may participate. None of this, however, is intended to excuse us from reimbursing you as required by applicable law for the amount of any such transfers that are in fact unauthorized.