Wrongful Honor. It will be a wrongful honor if the Bank pays an Exception Item listed in a timely manner unless Customer issued a Pay Request. In the event of a wrongful honor: 1. Bank’s only liability to Customer shall be for the lesser amount of the amount wrongfully paid or Customer’s actual damage caused by the wrongful payment. In the event that Bank fails to block a debit entry, Banks sole obligation shall be to promptly re-credit the amount thereof to Customers account, whereupon Bank shall be subrogated to all of Customer’s rights and remedies related to the entry or the transaction out of which it arose 2. Bank retains the right to assert that a Customer’s failure to exercise reasonable care was the cause of a wrongful honor. 3. Bank also retains the right to assert as a defense that Customer sustained no actual damages due to its wrongful honor. 4. In the event that Bank fails to block a credit entry, Banks sole obligation shall be transfer the subject funds back to the Originator of the entry, if Customer so requests.
Appears in 2 contracts
Sources: Treasury Management Services Agreement, Treasury Management Services Agreement