Common use of Wholesale Lockbox Processing Clause in Contracts

Wholesale Lockbox Processing. Bank is authorized to remove and examine the contents of each envelope in accordance with Bank's wholesale Lockbox servicing guidelines and shall observe the following guidelines provided in this Section. Bank shall capture, format and send remittance data to Customer via information reporting or data transmission in accordance with the Implementation Documents. a) Payee. Checks made payable to the Acceptable Payees listed in the Implementation Documents or any reasonable derivation thereof is acceptable for deposit. Checks made payable to others may be returned by Bank as exceptions. Customer warrants that each Acceptable Payee is Customer, its affiliate, or an entity that has authorized Customer to act on its behalf for the Services provided herein. If the Acceptable Payee is an affiliate of Customer or an entity which authorized Customer to act on such entity's behalf, Customer represents and warrants that such affiliate or entity has authorized Checks payable to it to be credited to the Lockbox Account. Bank may require written authorization from any Acceptable Payee or written evidence that an Acceptable Payee has authorized Customer to act on its behalf. If Customer designates ‘Accept All Payees’ in the Implementation Documents and Bank accepts such designation, Bank shall process all Checks for credit to the Lockbox Account regardless of the payee name on the Check. Such designation may be subject to additional Bank fees. Customer agrees to indemnify and hold Bank harmless for any claims, fines, expenses, and damages that arise out of Bank’s processing of Checks based on Customer’s ‘Accept All Payees’ designation.