Common use of Wrongful Dishonor Clause in Contracts

Wrongful Dishonor. With the exceptions that follow, it will be wrongful dishonor by us if we dishonor: (a) an Exception Item and we have received a timely Pay Instruction for that item from you; or (b) when no Pay Instruction was received from you regarding the item and your Payment Default Method is “Pay All.” If there is wrongful dishonor, we will be liable to you, but our liability will be limited to the damages for wrongful dishonor recoverable under California Commercial Code Divisions 3 and 4. Our liability may also be limited by other provisions of these Terms or the DADS, unless otherwise prohibited by a law that may not be altered or waived by the parties. As exceptions to the above regarding wrongful dishonor, we will have no liability for wrongful dishonor if we return an item (a) we reasonably believed was not properly payable; (b) there are insufficient available funds on deposit in the Account on which it is drawn; (c) you have otherwise failed to meet any requirement of these Terms; or (d) we are required or permitted not to honor it by any law, rule or regulation (including clearinghouse, ACH or card association rules), or by any other agreement between you and us (e.g., due to service of legal process on us, sanctions laws, to protect ourselves against loss on the item or any overdraft or loan, at the instructions of regulatory or government authorities or courts or otherwise)

Wrongful Dishonor. With the exceptions that follow, it will be wrongful dishonor by us if we dishonor: (a) an Exception a Suspect Item and we have received a timely Pay Request Disposition Instruction for that item from you; or (b) when no Pay Instruction disposition instruction was received from you regarding the item and your Payment Default Method is “Pay All.” If there is wrongful dishonor, we will be liable to you, but our liability will be limited to the damages for wrongful dishonor recoverable under California Commercial Code Divisions 3 and 4. Our liability may also be limited by other provisions of these Terms or the DADSthis Agreement, unless otherwise prohibited by a law that may not be altered or waived by the parties. As exceptions to the above regarding wrongful dishonor, we will have no liability for wrongful dishonor if we return an item or Converted Check Entry because: (a) we reasonably believed it was not properly payable; (b) there are insufficient available funds on deposit in the Account on which it is drawn; (c) you have otherwise failed to meet any requirement of these Terms; or (d) we are required or permitted not to honor it by any law, rule or regulation (including clearinghouse, ACH or card association rules), or by any other agreement between you and us (e.g., due to service of legal process on us, sanctions laws, to protect ourselves against loss on the item or any overdraft or loan, at the instructions of regulatory or government authorities or courts or otherwise).