Wrongful Dishonor. Except as provided in this section, it shall constitute wrongful dishonor by Bank if Bank dishonors an Exception Check: (a) that Bank has been ordered to pay pursuant to a Pay Request, or (b) for which Company has not issued a Return Request under the pay default option. Bank’s liability for wrongful dishonor of an Exception Check shall be limited to the damages for wrongful dishonor recoverable under U.C.C. Articles 3 and 4. Notwithstanding the foregoing, Bank shall have no liability to Company for wrongful dishonor when Bank, acting in good faith, returns an Exception Check: (i) that it reasonably believed was not properly payable; (ii) if there are insufficient Available Funds on deposit in the Authorized Account; or (iii) if required to do so by the service of legal process on Bank or the instructions of regulatory or government authorities or courts.
Appears in 4 contracts
Samples: Internet Banking Agreement, Internet Banking Agreement, Internet Banking Agreement
