Protecting Information; Security Breach Clause Samples

Protecting Information; Security Breach. Company shall notify Bank of any actual or suspected loss, theft, unauthorized disclosure of, access to, use of, or other compromise to the confidentiality, security, or integrity of any cardholder or card transaction data or other personal information regarding any individual (collectively, a “Security Breach”) as soon as possible after Company’s discovery thereof, unless requested otherwise by law enforcement or other regulatory authority (a ‘Law Enforcement Delay’), provided that Company will provide information regarding such a Law Enforcement Delay as part of its notification to Bank under this paragraph and shall indemnify Bank for any and all losses, expenses, costs and penalties incurred by Bank in connection with a Law Enforcement Delay. Company shall, at its cost and expense, take actions, including those as Bank or Card Associations may require, in response to a Security Breach to stop the occurrence of and mitigate the damages caused by the current Security Breach and to prevent a future Security Breach. Such actions may include, without limitation, notifying regulatory agencies, law enforcement officials, Card Association officials, or affected individuals or entities; submitting to forensic examinations; and bearing all costs of providing notice to affected individuals and other third parties, providing free credit and fraud monitoring to affected individuals, reissuance of Transaction Cards, and other concessions to affected individuals as required by the Rules or Applicable Law or ACH Rules. In the event Bank believes notice to affected individuals or government agencies, consumer reporting agencies, or any other person or entity is required, and there is no law or regulation that identifies the party responsible for giving such notice, Bank, in its sole discretion, shall determine which party will give such notice. Any notice provided as a result of a Security Breach shall be approved by Bank prior to its being given.”