Common use of Wrongful Dishonor Clause in Contracts

Wrongful Dishonor. Except as provided below, it shall constitute wrongful dishonor by Bank if Bank dishonors a Check for which Company have not issued a Return Request on an Exception Item. Bank’s liability for wrongful dishonor of an Exception Item shall be limited to the damages for wrongful dishonor recoverable under UCC Articles 3 and 4. Bank shall have no liability to Company for wrongful dishonor when Bank, acting in good faith, returns an Exception:

Wrongful Dishonor. Except as provided below, it shall constitute wrongful dishonor by the Bank if the Bank dishonors an Exception Item (a) that the Bank has been ordered to pay pursuant to a Check “Pay” decision, or (b) for which the Company have has not issued a Return Request on an Exception Item“Return” decision under the pay default option. In the event of a wrongful dishonor: (1) The Bank’s liability for wrongful dishonor of an Exception Item shall be limited to the damages for wrongful dishonor recoverable under UCC Articles 3 and 4. Bank shall have no liability to Company for wrongful dishonor when Bank, acting in good faith, returns an Exception:applicable provisions of the UCC.