Common use of Processors Clause in Contracts

Processors. You authorize the Bank to use Processors (which, for purposes of the Lockbox Services may include other banks, financial institutions and third parties, and their subcontractors) to provide any one or more of the Lockbox Services to you. You authorize the Bank to act (such as opening accounts and providing instructions) as your agent and on your behalf with Processors as necessary or appropriate to do so. Wherever under this Service Description you authorize the Bank to take action or inaction, such authorization shall also serve as authorization for a Processor to take such action or inaction. At the Bank’s option, the Bank may use a commingled account at a Processor and process as agent for you and for others through the commingled account, or the Bank may establish a separate account for you at a Processor and process as your agent through the separate account. The Bank’s responsibility for Processors and liability for action or inaction by a Processor is limited as set forth in this Agreement. If the Bank uses a correspondent financial institution to process payments, deposits to a Lockbox Account: (i) may be delayed by one banking day; (ii) may be affected by local bank holidays; and (iii) the availability may depend on the availability of the correspondent institution and any required third-party service provider or funds transfer system.