Common use of Additional Limitation of Liability Clause in Contracts

Additional Limitation of Liability. Although Check Block is intended to prevent any check from posting to a designated Account, Bank does not waive any defense or subrogation arising under the Uniform Commercial Code or common law if a check is paid. Bank shall have no liability if a check: (i) was written or issued by you, an employee or agent who is otherwise authorized by you to make transfers, payments or withdrawals from the designated Account; (ii) was written or issued through the misconduct of your own employee or agent; (iii) discharged or was applied to a bona fide obligation of you; or (iv) is held by us with the rights of a holder in due course (which right shall not be denied on the basis of our knowledge that you are enrolled in Check Block). We retain all defenses based on your own negligence contributing to the creation, alternation or payment of an unauthorized item.