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: (i) that Bank has been ordered to pay pursuant to a Pay Decision, or (ii) for which Customer has not issued a Return Decision under the pay default option by the deadline set forth in the Services’ Setup Form(s). 3.3.1 Bank's liability for wrongful dishonor of an Exception Check shall be limited to the damages for wrongful dishonor recoverable under U.C.C. Articles 3 and 4. 3.3.2 Notwithstanding Section 3.3.1, Bank shall have no liability to Customer for wrongful dishonor when Bank, acting in good faith, returns an Exception Check: (a) that it reasonably believed was not properly payable; or (b) if there are insufficient Available Funds on deposit in the Authorized Account; or (c) if required to do so by the service of legal process on Bank or the instructions of regulatory or government authorities or courts.

Wrongful Dishonor. Except as provided below, it shall constitute wrongful dishonor by the Bank if the Bank dishonors an a Check Exception Check: (i) that Bank has been ordered to pay pursuant to a Pay Decision, or (iia) for which the Customer has not issued a Return timely Pay/No Pay Decision under instructing the pay default option by Bank to Pay said Check Exception or (b) the deadline set forth in Customer selected the Services’ Setup Form(s)Pay Auto Exception Decision and did not issue a timely Pay/No Pay Decision. 3.3.1 a. The Bank's liability for wrongful dishonor of an Exception Check Item shall be limited to the damages for wrongful dishonor recoverable under U.C.C. Articles 3 and 4. 3.3.2 b. Notwithstanding Section 3.3.13.2a and 3.3a, the Bank shall have no liability to the Customer for wrongful dishonor when the Bank, acting in good faith, returns an Exception CheckItem: (a) that 1. That it reasonably believed was not properly payable; or (b) if 2. If there are insufficient Available Funds on deposit in the Authorized Account; or (c) if required to do so by the service of legal process on Bank the Bank; or the instructions of regulatory or government authorities or courts.