Data Security Requirements Compliance Clause Samples
The Data Security Requirements Compliance clause mandates that parties adhere to specific standards and protocols for protecting sensitive data. Typically, this clause outlines the technical and organizational measures that must be implemented, such as encryption, access controls, and regular security audits, and may reference compliance with laws like GDPR or industry standards like ISO 27001. Its core function is to ensure that all parties maintain a high level of data security, thereby reducing the risk of data breaches and ensuring legal and contractual obligations regarding data protection are met.
Data Security Requirements Compliance. (i) Customer represents and warrants that it is, and during the Term of this Agreement will remain, in compliance with all applicable material Data Security Requirements at its expense.
(ii) Without liability, FDMS has the right to withhold Services, in whole or in part, and immediately suspend connectivity to the FDMS System with respect to Customer, any of Customer’s Merchants, or any of Customer’s or its Merchants’ agents or third party service providers if Customer, such Merchant, or such agent or third party service provider, as applicable, is not in compliance with all applicable Data Security Requirements until Customer, such Merchant, or such agent and third party service provider, as applicable, is in compliance with all applicable Data Security Requirements. If FDMS withholds Services or suspends connectivity pursuant to this Section 11.2(b)(ii), FDMS will give prompt notice of such to Customer.
(iii) In addition to the obligations set forth in Exhibit E of this Agreement, Customer shall indemnify and hold FDMS harmless from and against any and all Claims to the extent that the Claim is caused by, relates to or arises out of (1) any security breach in or intrusion into Customer’s computer system, or (2) the actual loss or theft of any of its information or records containing Cardholder or Transaction Card data or any bank account information of a payee or payor that is generated or stored by, or on behalf of, Customer.
(iv) As promptly as possible after it first obtains knowledge thereof, Customer shall notify FDMS of any security breach or data compromise of Customer’s computer system or the computer system of any of its Merchants or any of Customer’s or its Merchants’ agents or third party service providers. As promptly as possible after it first obtains knowledge thereof, Customer shall notify FDMS of any suspected or actual loss or theft of any information or records containing Cardholder or Transaction Card data or any bank account information of a payee or payor that is generated or stored by, or on behalf of, Customer, any of its Merchants, or any of Customer’s or its Merchants’ agents or third party service providers.
Data Security Requirements Compliance. FDMS represents and warrants that it is, and during the Term of this Agreement will remain, in compliance with all applicable material Data Security Requirements at its expense. (ii) In addition to the obligations set forth in Exhibit E of this Agreement, FDMS shall indemnify and hold Customer harmless from and against any and all liabilities, claims, suits, damages, losses, costs and expenses, including any fines, penalties, reasonable attorney fees and costs of settlement, whether third party claims, indemnity claims or otherwise (“collectively, “Claims”) to the extent that the Claim is caused by, relates to or arises out of (1) any security breach in or intrusion into FDMS’s computer system, or (2) the actual loss or theft of any of Customer’s information or records containing Cardholder or Transaction Card data or any bank account information of a payee or payor that is generated or stored by, or on behalf of, FDMS. FDMS shall not have any liability for any Claim to the extent such Claim is caused by, relates to or arises out of any security breach in the computer system of Customer, Customer’s Merchants, or Customer’s or its Merchants’ agents or third party service providers, or the actual loss or theft of any information or records containing Cardholder or Transaction Card data or any bank account information of a payee or payor that is generated or stored by, or on behalf of, Customer, Customer’s Merchants, or Customer’s or its Merchants’ agents or third party service providers.
Data Security Requirements Compliance. Customer represents and warrants that it is, and during the Term of this Agreement will remain, in compliance with all applicable material Data Security Requirements at its expense. (ii) Without liability, FDMS has the right to withhold Services, in whole or in part, and immediately suspend connectivity to the FDMS System with respect to Customer, any of Customer’s Merchants, or any of Customer’s or its Merchants’ agents or third party service providers if Customer, such Merchant, or such agent or third party service provider, as applicable, is not in compliance with all applicable Data Security Requirements until Customer, such Merchant, or such agent and third party service provider, as applicable, is in compliance with all applicable Data Security Requirements. If FDMS withholds Services or suspends connectivity pursuant to this Section 11.2(b)(ii), FDMS will give prompt notice of such to Customer. (iii) In addition to the obligations set forth in Exhibit E of this Agreement, Customer shall indemnify and hold FDMS harmless from and against any and all Claims to the extent that the Claim is caused by, relates to or arises out of (1) any security breach in or intrusion into Customer’s computer system, or (2) the actual loss or theft of any of its information or records containing Cardholder or Transaction Card data or any bank account information of a payee or payor that is generated or stored by, or on behalf of, Customer.