Common use of Exception Checks Clause in Contracts

Exception Checks. When Bank reviews and processes Company’s Electronic File, Bank shall reject Exception Checks including, without limitation, Electronic Images drawn on financial institutions located outside the United States, Electronic Images that are illegible, Electronic Images of checks previously converted to substitute checks, and Electronic Images with unreadable MICR information. Bank will not be liable for delays in the deposit of and funds availability for Exception Checks, even if such delays result from errors or other problems in the operation of the Equipment. Each Business Day on which Bank reviews and processes Company’s Electronic File, Bank will notify Company of all Exception Checks through a communication channel designated by Bank. Company agrees that if it wishes to attempt to deposit any Exception Check to Company’s Account, it shall do so only by depositing the original Check on which the Exception Check is based. Company acknowledges and agrees that even if Bank does not initially identify an Electronic Image as an Exception Check, the Substitute Check created by Bank therefrom may nevertheless be returned to Bank because, among other reasons, the Electronic Image is deemed illegible by Paying Bank. Bank’s failure to identify an Exception Check shall not preclude or limit the obligations of Company to Bank under Section 5 above.

Exception Checks. When Bank reviews and processes Company’s Electronic File, Bank shall reject any Electronic File, or any portion thereof, that Bank in its sole discretion determines to be ineligible for RDC (each, an “Exception Checks Check”) including, without limitation, Electronic Images of Checks drawn on financial institutions located outside the United States, Electronic Images that are illegible, Electronic Images of checks previously converted to substitute checks, and Electronic Images with unreadable MICR information. The Bank will not be liable for delays in the deposit of and funds availability for Exception Checks, even if such delays result from errors or other problems in the operation of the Equipment. Each Business Day business day on which Bank reviews and processes Company’s Electronic File, Bank will notify Company of all Exception Checks through a communication channel designated by Bank. Company agrees that if it wishes to attempt to deposit any Exception Check to Company’s Account, it shall do so only by depositing the original Check on which the Exception Check is based. Company acknowledges and agrees that even if Bank does not initially identify an Electronic Image as an Exception Check, the Substitute Check created by Bank therefrom may nevertheless be returned to Bank because, among other reasons, the Electronic Image is deemed illegible by Paying Bank. Bank’s failure to identify an Exception Check shall not preclude or limit the obligations of Company to Bank under Section 5 above4.