Common use of Security Event Clause in Contracts

Security Event. i. In the event that Subscriber or a Permitted User learns or has reason to believe that any NMLS data, including Public Use Information accessed through NMLS B2B ACCESS℠, has been disclosed or accessed by an unauthorized party as a result of an act or omission of Subscriber or a Permitted User, including by Subscriber’s employees, directors, officers, agents, representatives, independent contractors or any third party engaged by Subscriber (a “Security Event”), Subscriber shall immediately notify SRR and investigate. ii. In the event of a Security Event that potentially involves individually identifiable information (e.g., social security numbers, driver’s license numbers or dates of birth), Subscriber shall: I. Notify SRR immediately, II. After consultation with SRR, notify the individuals whose information was disclosed that a Security Event has occurred, and III. Be responsible for any other legal obligations, up to $5 million ($5,000,000.00) per Security Event, that may arise under applicable law in connection with such a Security Event.