Common use of Financial Institution Clause in Contracts

Financial Institution. If you give the Credit Union a payment order which identifies an intermediary or beneficiary’s financial institution by both name and an identifying number, a receiving financial institution may rely on the number as the proper identification even if it identified a different person than the named financial institution. This means that you will be responsible for any loss or expenses incurred by a receiving financial institution which executes or attempts to execute the payment order in reliance on the identifying number you provided.

Financial Institution. If you give the Credit Union credit union a payment order which identifies an intermediary or beneficiary’s financial institution by both name and an identifying number, a receiving financial institution may rely on the number as the proper identification even if it identified identifies a different person than the named financial institution. This means that you will be responsible for any loss or expenses incurred by a receiving financial institution institution, which executes or of attempts to execute the payment order in reliance on the identifying number you provided.