Common use of Returned Entries Clause in Contracts

Returned Entries. a. Servicer shall notify you of a Returned Entry within one (1) Business Day of the receipt of such Returned Entry from the ACH Operator. Bank shall have no obligation to retransmit a Returned Entry. b. Servicer shall notify you of any Notification of Changes (“NOC”), including refused NOCs or corrected NOCs received by Bank no later than two (2) Business Days after receipt. You must respond to NOCs by investigating incorrect data and making corrections within six (6) Business Days of receipt of the NOC information or prior to initiating another Entry to the Receiver’s account, whichever is later. You shall indemnify and hold harmless Bank against any Losses incurred by Bank or any other Person arising out of your failure to make such change as required by this ACH Addendum or Applicable Law. This indemnification obligation will survive any termination of the ACH Services. c. If an Entry is returned as unauthorized or authorization is revoked, you will contact the necessary parties and resolve any dispute. During this process, you may ask Bank via Servicer to request from the RDFI a copy of the “Written Statement of Unauthorized Debit.” Bank will attempt to obtain the form and deliver it to you. You agree not to re-originate any transaction returned as unauthorized or as authorization revoked unless and until the Receiver reauthorizes the Entry or Entry stream. In the event the rate of unauthorized transactions exceeds the permissible limit based on the calculations noted in the Rules, you will share the data requested by Bank based on the Rules and will immediately begin the process of bringing the rate below that threshold.