Common use of Exception Items Clause in Contracts

Exception Items. Each Business Day by the designated time, Bank shall make reasonable efforts to report to Customer any Items that do not match the Check Issue File and, if requested and available, provide the front and back images of those Items for that day’s presentment; provided, however, no images shall be provided in the case of electronically converted Items. Customer agrees to review and make payment decisions on the Exception Items prior to Bank’s established Cut-off. a) If Customer’s requested default setup is for Bank to pay all Exception Items, then Bank is authorized to finally pay any Exception Item unless Customer has instructed Bank to return the Exception Item prior to the established Cut-off. b) If Customer’s requested default setup is for Bank to return all Exception Items, then Bank is authorized to return any Exception Item unless Customer instructs bank to pay an Exception Item prior to the established Cut-off. c) Bank may rely on any instructions received from Customer that Bank reasonably believes to be genuine. Bank shall have no responsibility for any liability, loss or damage resulting from: (i) payment in accordance with this Section of any Paid No Issue Item that is altered or unsigned or which bears the forged or unauthorized signature of Customer; (ii) the return of any Paid No Issue Item to the depository bank in accordance with this Section; or (iii) Customer’s failure to meet Bank’s established Cut-offs. Customer may be required to place a stop Payment Order on any returned Paid No Issue Item, which shall be subject to Bank’s customary stop payment fee. Bank’s failure to report a discrepancy will not discharge Customer’s obligation with regard to any Item, and shall not obligate Bank to return any Item if it is otherwise properly payable.

Exception Items. Each 3.1 ATB Financial will notify the Customer of any cheque that is presented for payment on a Cheque Management Account where Cusmtoer Cheque Exception any Exception through ATBOnline Business. 3.2 The Customer will instructATB Financialwhether to honour or return any cheque giving rise to an Exception or Critical Amount Exception (as defined below) by selecting the desired action in ATBOnline Business Day no later than 10:59 AMMountain time on the day in which the Exception first appears on ATBOnline Business. 3.3 In the event that ATB Financialdoes not receive instructions by the designated stipulated time for any Exceptions or Critical Amount Exceptions, tehCustomer authorizesATB Financialto take whatever action ATB Financialdeems necessary in our sole and absolute unfettered discretion, including honouring or ion Form, and as may be modified from time to time, Bank shall make reasonable efforts to report to Customer any Items that do not match the Check Issue File and, if requested and available, provide the front and back images of those Items for that day’s presentment; provided, however, no images shall be provided in the case of electronically converted Items. Customer agrees to review and make payment decisions on the Exception Items prior to Bank’s established Cut-off. a) If Customer’s requested default setup is 3.4 Any cheques presented for Bank to pay all Exception Itemspayment on a Cheque Management Account for whichATB Financialhas not received a complete Data File orATB Financial does not have Customer Cheque Information, then Bank is authorized to finally pay any Exception Item unless Customer has instructed Bank to return the Exception Item including,without limitation, cheques issued prior to the established Cut-offcommencement of the Cheque Management Service, will appear as an Exception. b) 3.5 If Customer’s requested default setup is ATB Financialallows, and the Customer selects the critical amount option through the Implementation Form, any cheque prseented for Bank to return all payment that Critical Amount Exception Items, then Bank is authorized to return any and the Customer will be notified of such Critical Amount Exception Item unless Customer instructs bank to pay an Exception Item prior to the established Cut-off.through ATBOnline Business c) Bank may rely 3.6 Cheques issued on any instructions received from Customer that Bank reasonably believes to be genuine. Bank shall have no responsibility for any liability, loss or damage resulting from: (i) payment in accordance with this Section of any Paid No Issue Item that is altered or unsigned or which bears the forged or unauthorized signature of Customer; (ii) the return of any Paid No Issue Item to the depository bank in accordance with this Section; or (iii) Customer’s failure to meet Bank’s established Cut-offs. Customer may be required to place a stop Payment Order on any returned Paid No Issue Item, which shall be subject to Bank’s customary stop payment fee. Bank’s failure to report a discrepancy Cheque Management Account will not discharge Customer’s obligation with regard to any Itembe cashed or certified by ATB Financial, unless otherwise agreed towinriting between the Customer and shall not obligate Bank to return any Item if it is otherwise properly payableATB Financial in respect of a Cheque Management Account.

Exception Items. Each On the Business Day following presentment of any Item to Bank, the Service will, by the designated timeException Cut-off Time, Bank shall make reasonable efforts electronically compare the information for each Item to report to Customer any Items that do not match the Check Information contained in the Issue File and, if requested and available, provide Bank will notify Client of any Exception Items by the front and back images of those Items for that day’s presentment; provided, however, no images shall be provided in the case of electronically converted Items. Customer agrees to review and make payment decisions notification method selected on the Exception Items prior to Bank’s established CutSet-offup Schedule. a) If Customer’s requested default setup is for the Item serial number and amount match, such Item shall be deemed conclusively authorized by Client to be paid by Bank to pay all Exception Items, then Bank is authorized to finally pay any Exception Item unless Customer has instructed Bank to return the Exception Item prior to the established Cut-offwithout further examination by Bank. b) Bank will deem a presented Item as an Exception Item if the following occurs: i) The amount does not match the amount of the Check as reflected in the Issue File; ii) A presented Check serial number does not appear in the Issue File; iii) The Issue File reports a Check as voided by Client; iv) The payee does not match the list (when Payee Verification is requested). v) If Customer’s requested default setup the Item is communicated to Bank as fraudulent. (Additional action may be required in this instance.) c) If the Check Information for such Item does not match, Bank will review such Item for evidence of MICR misencoding or misreading. If Bank determines that there has been a MICR misencoding or misreading, Bank shall make the necessary corrections and such Item shall be deemed conclusively authorized by Client to be paid. If Client discovers the encoding error, Client should instruct Bank to return all Exception ItemsReturn the Item. Bank shall make the necessary correction and such Item shall be deemed conclusively authorized by Client to be paid. d) If there has been no MICR misencoding or misreading with respect to such Item, then or if after such correction the Check Information for such Item still does not match the Check Information in the Issue File, Client is required to make a decision through the Service. A User must provide to Bank is authorized to return a “pay” or “return” decision on any Exception Item unless Customer instructs bank to pay an Exception Item prior to for that Business Day by the established Cut-off. c) Bank may rely on any instructions received from Customer that Bank reasonably believes to be genuineDecision Cut- off Time. Bank shall have no responsibility for any liability, loss or damage resulting from: (i) payment in accordance with this Section of any Paid No Issue Item that is altered or unsigned or which bears the forged or unauthorized signature of Customer; (ii) the will return of any Paid No Issue such Item to the depository bank in accordance unpaid if a “return” decision is provided by a User. Bank will pay such Item if a “pay” decision is provided by a User. If Bank does not receive any such instruction with this Section; respect to a “pay” or (iii“return” decision, Bank will follow Client instructions as outlined on the Set-up Schedule. e) Customer’s failure to meet Nothing herein shall affect Bank’s established Cut-offs. Customer may be required to place a stop Payment Order on any returned Paid No Issue Item, which shall be subject to Bank’s customary stop payment fee. Bank’s failure to report a discrepancy will not discharge Customer’s obligation with regard to any Item, and shall not obligate Bank right to return any Item to the depository bank (i) if it the Account on which such Item was drawn does not contain sufficient Available Funds to pay such Item or (ii) if Bank in its sole discretion determines that such Item is otherwise not properly payable.

Exception Items. Each Business Day by the designated time, Bank shall make reasonable efforts to report to Customer any Items that do not match the Check Issue File File, and, if requested and available, provide the front and back images of those Items for that day’s presentment; provided, however, no images shall be provided in the case of electronically converted Items. Customer agrees to review and make payment decisions on the Exception Items prior to Bank’s established Cut-off. a) If Customer’s requested default setup is for Bank to pay all Exception Items, then Bank is authorized to finally pay any Exception Item unless Customer has instructed Bank to return the Exception Item prior to the established Cut-off. b) If Customer’s requested default setup is for Bank to return all Exception Items, then Bank is authorized to return any Exception Item unless Customer instructs bank to pay an Exception Item prior to the established Cut-off. c) Bank may rely on any instructions received from Customer that Bank reasonably believes to be genuine. Bank shall have no responsibility for any liability, loss or damage resulting from: (i) payment in accordance with this Section of any Paid No Issue Item that is altered or unsigned or which bears the forged or unauthorized signature of Customer; (ii) the return of any Paid No Issue Item to the depository bank in accordance with this Section; or (iii) Customer’s failure to meet Bank’s established Cut-offs. Customer may be required to place a stop Payment Order on any returned Paid No Issue Item, which shall be subject to Bank’s customary stop payment fee. Bank’s failure to report a discrepancy will not discharge Customer’s obligation with regard to any Item, Item and shall not obligate Bank to return any Item if it is otherwise properly payable.