Wrongful Honor. It shall constitute wrongful honor by the Bank if the Bank pays an Exception Check submitted in a timely and un-revoked Positive Pay Return Items File submitted in accordance with this Agreement. In the event that there is wrongful honor the Bank may, subject to the defenses set forth in this Agreement, be liable to the Customer for the lesser of the amount of the wrongfully paid Exception Check or the Customer’s actual damages resulting from the Bank’s payment of the Exception Check, but for no other damages suffered as a result of the wrongful honor. Notwithstanding the improper payment of an Exception Check, the Bank expressly reserves the right to assert that the Customer is liable for the amount of the wrongfully honored Exception Check on the grounds that the Exception Check was properly payable under Section 4-401(a). The Bank retains the right to assert the Customer's failure to exercise reasonable care under Sections 3-406(a) and 4-406(c). The Bank’s improper payment shall not in and of itself constitute a failure of the Bank to have exercised ordinary care under the loss allocation provisions of Sections 3-406(b) and 4-406(e). The Bank retains the right to assert the defense that the Customer has sustained no actual damages because the Bank's honor of the Exception Check discharged for value an indebtedness of the Customer.
Wrongful Honor. It shall constitute wrongful honor by Bank if Bank pays an Exception Check listed in a timely Exception Check Report unless: (a) Company issued a Pay Request, or (b) Company selected the pay default option and did not issue a Return Request. In the event that there is wrongful honor, Bank shall be liable to Company for the lesser of the amount of the wrongfully paid Exception Check or Company’s actual damages resulting from Bank’s payment of the Exception Check. Bank retains the right to assert Company’s failure to exercise reasonable care under U.C.C. sections 3-406(a) and 4-406(c). Bank retains the right to assert the defense that Company has sustained no actual damages because Bank’s honor of the Exception Check discharged for value an indebtedness of Company.
Wrongful Honor. It shall constitute wrongful honor by Bank if Bank pays an Exception Item marked as “return” listed in an Exception Decision delivered prior to the Bank’s designated Cut- off. In the event there is wrongful honor:
a) Bank shall be liable to Customer for the lesser of the amount of the wrongfully paid Exception Item or Customer’s actual damages resulting from Bank’s payment of the Exception Item. Bank retains the right to assert the defense that Customer has sustained no actual damages because Bank’s honor of the Exception Item discharged for value an indebtedness of Customer.
b) Bank retains the right to assert Customer’s failure to exercise reasonable care under U.C.C. section 3-406(a) and 4- 406 and other Applicable Law in relation to the payment or handling of any Item.
Wrongful Honor. It shall constitute wrongful honor by Bank if Bank pays an Exception Item submitted in a timely and un-revoked Return Items File.
Wrongful Honor. It shall constitute wrongful honor by Bank if Bank pays an Exception Item marked as “return” listed in an Exception Decision delivered prior to Bank’s designated Cut-off. In the event there is wrongful honor, Bank shall be liable to Company for the lesser of the amount of the wrongfully paid Exception Item or Company’ actual damages resulting from Bank’s payment of the Exception Item. Bank retains the right to assert the defense that Company have sustained no actual damages because Bank’s honor of the Exception Item discharged for value an indebtedness of Company. Bank retains the right to assert Company’s failure to exercise reasonable care under UCC section 3- 406(a) and 4-406 and other Applicable Law in relation to the payment or handling of any Item.
Wrongful Honor. It will be wrongful honor by us if we honor: (a) a Suspect Item and we have received a timely Return Request Disposition Instruction for that item from you; or (b) a Suspect Item when no disposition instruction was received regarding the item and your Payment Default Option is “Return All.” If there is wrongful honor, we will be liable to you for the lesser of the amount of the wrongfully paid item or the actual damages you suffer from our payment of the item. However, if payment of the item discharges an indebtedness or obligation of yours and because of this you have no actual damages or reduced damages, then you agree that our liability to you is reduced to the same extent. Our liability may also be limited by other provisions of these Terms or this Agreement.
Wrongful Honor. It shall not constitute wrongful honor by FI if FI pays an Exception Item listed in an Exception Item report timely provided and received by the Company and: (a) Company issued a “pay” decision; or (b) Company selected the pay “default decision” and did not issue a “return” decision. In the event that an item is wrongfully honored, FI’s liability to Company shall be limited to the lesser of the amount of the wrongfully honored Exception Item or the Company’s actual damages resulting from the FI’s payment of the Exception Item. FI retains the right to assert the Company’s failure to exercise reasonable care under UCC sections 3-406(b) and 4-406(c) as such provisions are codified in the State of Washington, or similar provisions and retains the right to assert that Company has sustained no actual damages because the FI’s wrongful honor of the Exception Item discharged for value an indebtedness of the Company.
Wrongful Honor. It will be a wrongful honor if the Bank pays an Exception Item listed in a timely manner unless Customer issued a Pay Request. In the event of a wrongful honor:
1. Bank’s only liability to Customer shall be for the lesser amount of the amount wrongfully paid or Customer’s actual damage caused by the wrongful payment. In the event that Bank fails to block a debit entry, Banks sole obligation shall be to promptly re-credit the amount thereof to Customers account, whereupon Bank shall be subrogated to all of Customer’s rights and remedies related to the entry or the transaction out of which it arose
2. Bank retains the right to assert that a Customer’s failure to exercise reasonable care was the cause of a wrongful honor.
3. Bank also retains the right to assert as a defense that Customer sustained no actual damages due to its wrongful honor.
4. In the event that Bank fails to block a credit entry, Banks sole obligation shall be transfer the subject funds back to the Originator of the entry, if Customer so requests.
Wrongful Honor. It will be a wrongful honor if the Bank pays an exception item listed in a timely manner on an Exception Check Report unless the Customer issued a Pay Request, or the Customer selected the pay default option and did not issue a Return Request to the Bank. In the event of a wrongful honor:
a. The Bank’s only liability to the Customer shall be for the lesser amount of the amount wrongfully paid or the Customer’s actual damage caused by the wrongful payment.
b. The Bank retains the right to assert that a Customer’s failure to exercise reasonable care was the cause of a wrongful honor.
c. The Bank also retains the right to assert as a defense that the Customer sustained no actual damages due to its wrongful honor.
Wrongful Honor. It will constitute wrongful honor by us if we pay an Exception Check listed in a timely Exception File contrary to a timely and properly submitted Decision. If there is wrongful honor: (a) We will be liable to you only for the amount of the wrongfully paid Exception Check or your actual damages resulting from our payment of the Exception Check, which ever amount is less; (b)We retain the right to assert that you failed to exercise reasonable care under the UCC; and (c) We retain the right to assert the defense that you have sustained no actual damages because our honor of the Exception Check discharged for value an indebtedness of yours or any other defense available to us under the UCC, this Agreement or otherwise.
