Common use of Rightful Payment and Dishonor Clause in Contracts

Rightful Payment and Dishonor. Except as provided herein, if Bank honors an Exception Check in accordance with the pay default option selected by Company or in accordance with a Pay Request issued by Company, such honor shall be rightful, and Company waives any right it may have to assert that the Exception Check was not properly payable under U.C.C. section 4-401. Except as provided in Section herein, if Bank dishonors an Exception Check in accordance with the return default option selected by Company or in accordance with a Return Request issued by Company, the dishonor shall be rightful, and Company waives any right it may have to assert that the dishonor was wrongful under U.C.C. section 4-402. Company agrees that Bank exercises ordinary care whenever it rightfully pays or returns an Exception Check consistent with the provisions of the Agreement.