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.
Appears in 4 contracts
Samples: Internet Banking Agreement, Internet Banking Agreement, Internet Banking Agreement
