Common use of Wrongful Dishonor Clause in Contracts

Wrongful Dishonor. Except as provided below, it shall constitute wrongful dishonor by Bank if Bank dishonors a Check for which Customer has not issued a Return Request on an Exception Item. a) Bank’s liability for wrongful dishonor of an Exception Item shall be limited to the damages for wrongful dishonor recoverable under UCC Articles 3 and 4. b) Notwithstanding anything contained herein to the contrary, Bank shall have no liability to Customer for wrongful dishonor when Bank, acting in good faith, returns an Exception Item: i. That it reasonably believes was not properly payable; or ii. By reason of insufficient funds (available for withdrawal pursuant to Bank’s applicable funds availability schedule and policies) on deposit in a Designated Account necessary to satisfy Items presented for payment; or iii. If required to do so by the service of legal process of Bank or the instructions of regulatory or government authorities or courts; or iv. If Customer fails to provide proper and timely notice to pay said Item.

Wrongful Dishonor. Except as provided below, it shall constitute wrongful dishonor by Bank if Bank dishonors a Check for which Customer has not issued a Return Request on an Exception Item. a) Check contrary to Section 4 above. Bank’s 's liability for wrongful dishonor of an Exception Item Check shall be limited to the damages for wrongful dishonor recoverable under UCC Articles 3 and 4. b) . Notwithstanding anything contained herein to the contraryforegoing, Bank it shall have no liability to Customer for not constitute wrongful dishonor and when Bank, acting in good faith, returns an Exception Item: i. That Check (a) that it reasonably believes believed was not properly payable; or ii. By reason of (b) for which there were insufficient funds (available for withdrawal pursuant to Bank’s applicable funds availability schedule and policies) Available Funds on deposit in a Designated Account necessary to satisfy Items presented for paymentthe Authorized Account; or iii. If (c) if required to do so by the service of legal process of on Bank or the instructions of regulatory or government authorities or courts; or iv. If Customer fails to provide proper and timely notice to pay said Itemor (d) if any other basis exists for dishonoring the Exception Check under the Account Agreement for the Account, any other agreement, or any Law.