Common use of Responsibility for the Detection of Errors in Payment Orders; Liability of the Parties Clause in Contracts

Responsibility for the Detection of Errors in Payment Orders; Liability of the Parties. The purpose of any Fund Designated Security Procedure or Custodian Designated Security Procedure is to confirm the authenticity of any FT Instruction and is not designed to detect errors or omissions in such FT Instructions. Therefore, the Custodian is not responsible for detecting any Trust and/or Sponsor error or omission contained in any FT Instruction received by the Custodian. In the event that the FT Instruction either (i) identifies the beneficiary by both a name and an identifying account number and the name and number identify different persons or entities, or (ii) identifies the beneficiary by both a name and an identifying number and the number identifies a person or entity different from the beneficiary identified by name, execution of the relevant payment order, payment to the beneficiary, cancellation of the payment order or actions taken by the Custodian or the Trust and the Sponsor in respect of such payment order may be made solely on the basis of the number. The Custodian shall not be liable for interest on the amount of any FT Instruction that was not authorized or was erroneously executed unless the Trust and the Sponsor so notifies the Custodian within thirty (30) days following the Trust and the Sponsor’s receipt of notice that such FT Instruction was processed. Any compensation payable in the form of interest shall be payable in accordance with UCC 4A. If a FT Instruction in the name of the Fund and the Sponsor and accepted by the Custodian was not authorized by the Trust and/or the Sponsor, the liability of the parties will be governed by the applicable provisions of UCC 4A.