Common use of Transaction Limits Clause in Contracts

Transaction Limits. In utilizing the ACH network in performance of the Service, Bank must make certain warranties on behalf of Customer. Specifically, Bank is charged with assuring the financial soundness of the Customer to make the intended Entries. To comply with applicable regulations, Bank must set transaction limits commensurate with Customer’s legitimate business needs and financial condition. The maximum value of originated transactions (“Processing Limits”) will be initially set by mutual agreement between Customer and Bank, subject to change from time to time at the Bank’s discretion based on Customer’s changing business needs and financial condition. Processing Limits may be expressed as a daily maximum, an unsettled transaction maximum (defined as transactions submitted by Customer but which have not reached the settlement date) or both. In the event Customer submits transactions which exceed an established limit, Bank in its sole discretion may elect to not process Customer’s originated ACH transactions. Customer should be aware of its current established limits at all times and is responsible for determining whether the limits are established at levels appropriate for Customer’s operations and should promptly advise Bank if the established limits are inappropriate for any reason. Customer acknowledges that (i) Bank may, for its own benefit or purposes from time to time or on a more regular basis, check, verify or confirm that the Entries do not exceed established limits, but that Customer shall have no right to rely on Bank’s enforcement of such limits. Customer agrees that Customer shall have no right, claims, or demand against Bank arising from Bank’s effecting one or more Entries which, individually or when aggregated, exceed any established limits or exceed the Customer’s funds, credit or collateral held by Bank. Entries received by the Bank that have exceeded Customer’s Processing Limits are suspended and subject to officer approval for release. If Customer’s Entries exceed the applicable daily limit, please contact Client Services at 0-000-000-0000 to resolve the issue.