Common use of Wrongful Dishonor Clause in Contracts

Wrongful Dishonor. Except as provided below, it shall constitute wrongful dishonor by Bank if Bank dishonors an Exception Check that Bank has been ordered to pay pursuant to a properly submitted Pay Request. Bank’s liability for wrongful dishonor of an Exception Check shall be limited to the damages for wrongful dishonor recoverable under the U.C.C. Bank shall have no liability to Company for wrongful dishonor when Bank, acting in good faith, returns or declines to cash an Exception Check: i. That it reasonably believed was not properly payable; ii. If there are insufficient Available Funds on deposit in the Authorized Account; or, iii. If required to do so by the Services of legal process on Bank or the instructions of regulatory or government authorities or courts.