Lost Drafts and Cheques Sample Clauses
The Lost Drafts and Cheques clause outlines the procedures to follow if a draft or cheque issued under an agreement is lost, stolen, or destroyed before it is cashed or deposited. Typically, this clause allows the payee to request a replacement instrument, often requiring the payee to provide an indemnity or affidavit to protect the issuer from potential double payment. Its core function is to ensure that payment obligations can still be fulfilled despite the loss of negotiable instruments, while also protecting the issuer from financial risk.
Lost Drafts and Cheques. In the event a draft or cheque issued or sold by AFEX on behalf of Client is not received by the Beneficiary for any reason, Client agrees to notify AFEX as soon as Client becomes so aware. Upon notification to AFEX of the Beneficiary’s non-receipt, AFEX will use reasonable efforts to place a recall or stop payment on the instrument as soon as practicable. Client agrees to indemnify AFEX against any Losses incurred as a result of the stop payment or recall request. If AFEX determines that the draft or cheque has been redeemed, AFEX shall be under no obligation to issue a refund or replacement. If AFEX determines that the draft or cheque has not been redeemed and a stop payment or recall has been successful, AFEX may issue a refund or issue a replacement. In such event, Client agrees to take all reasonable steps to ensure no attempt is made to redeem the original draft or cheque and, if found, it is returned to AFEX. If Client recovers such draft or cheque, Client shall hold it in trust for AFEX.
Lost Drafts and Cheques. In the event a draft or cheque issued or sold by Cambridge on behalf of Client is not received by the Beneficiary for any reason, Client agrees to notify Cambridge as soon as Client becomes so aware. Upon notification to Cambridge of the Beneficiary’s non-receipt, Cambridge will use reasonable efforts to place a recall or stop payment on the instrument as soon as practicable. Client agrees to indemnify Cambridge against any Losses incurred as a result of the stop payment or recall request. If Cambridge determines that the draft or cheque has been redeemed, Cambridge shall be under no obligation to issue a refund or replacement. If Cambridge determines that the draft or cheque has not been redeemed and a stop payment or recall has been successful, Cambridge may issue a refund or issue a replacement. In such event, Client agrees to take all reasonable steps to ensure no attempt is made to redeem the original draft or cheque and, if found, it is returned to Cambridge. If Client recovers such draft or cheque, Client shall hold it in trust for Cambridge.