{"component": "clause", "props": {"groups": [{"snippet_links": [{"key": "exception-item", "type": "definition", "offset": [59, 73]}, {"key": "received-by-the-company", "type": "definition", "offset": [129, 152]}, {"key": "default-decision", "type": "clause", "offset": [228, 244]}, {"key": "in-the-event", "type": "clause", "offset": [285, 297]}, {"key": "liability-to-company", "type": "clause", "offset": [339, 359]}, {"key": "lesser-of", "type": "definition", "offset": [384, 393]}, {"key": "actual-damages", "type": "definition", "offset": [463, 477]}, {"key": "resulting-from-the", "type": "clause", "offset": [478, 496]}, {"key": "payment-of-the", "type": "clause", "offset": [502, 516]}, {"key": "right-to", "type": "definition", "offset": [548, 556]}, {"key": "failure-to-exercise", "type": "definition", "offset": [578, 597]}, {"key": "reasonable-care", "type": "clause", "offset": [598, 613]}, {"key": "sections-3", "type": "clause", "offset": [624, 634]}, {"key": "state-of-washington", "type": "clause", "offset": [694, 713]}, {"key": "similar-provisions", "type": "clause", "offset": [718, 736]}, {"key": "for-value", "type": "definition", "offset": [879, 888]}, {"key": "indebtedness-of-the-company", "type": "clause", "offset": [892, 919]}], "size": 3, "samples": [{"hash": "jmiFvu0bCsb", "uri": "/contracts/jmiFvu0bCsb#wrongful-honor", "label": "Business Manager and E Sign Agreement", "score": 33.5764992765, "published": true}, {"hash": "fq8x4RFvC9f", "uri": "/contracts/fq8x4RFvC9f#wrongful-honor", "label": "Business Manager and E Sign Agreement", "score": 25.3107460643, "published": true}, {"hash": "13RM7NsU17K", "uri": "/contracts/13RM7NsU17K#wrongful-honor", "label": "Business Manager and E Sign Agreement", "score": 24.440109514, "published": true}], "snippet": "It shall not constitute wrongful honor by FI if FI pays an Exception Item listed in an Exception Item report timely provided and received by the Company and: (a) Company issued a \u201cpay\u201d decision; or (b) Company selected the pay \u201cdefault decision\u201d and did not issue a \u201creturn\u201d decision. In the event that an item is wrongfully honored, FI\u2019s liability to Company shall be limited to the lesser of the amount of the wrongfully honored Exception Item or the Company\u2019s actual damages resulting from the FI\u2019s payment of the Exception Item. FI retains the right to assert the Company\u2019s failure to exercise reasonable care under UCC sections 3-406(b) and 4-406(c) as such provisions are codified in the State of Washington, or similar provisions and retains the right to assert that Company has sustained no actual damages because the FI\u2019s wrongful honor of the Exception Item discharged for value an indebtedness of the Company.", "hash": "93cea0d72c6a59e40a0e0e2a52c6b4fe", "id": 4}, {"snippet_links": [{"key": "by-the-bank", "type": "clause", "offset": [35, 46]}, {"key": "exception-check", "type": "definition", "offset": [67, 82]}, {"key": "positive-pay", "type": "definition", "offset": [120, 132]}, {"key": "return-items", "type": "clause", "offset": [133, 145]}, {"key": "in-accordance-with", "type": "definition", "offset": [161, 179]}, {"key": "in-the-event", "type": "clause", "offset": [196, 208]}, {"key": "the-bank-may", "type": "clause", "offset": [238, 250]}, {"key": "subject-to-the", "type": "definition", "offset": [252, 266]}, {"key": "in-this-agreement", "type": "clause", "offset": [286, 303]}, {"key": "customer-for", "type": "clause", "offset": [322, 334]}, {"key": "lesser-of", "type": "definition", "offset": [339, 348]}, {"key": "actual-damages", "type": "definition", "offset": [417, 431]}, {"key": "resulting-from-the", "type": "clause", "offset": [432, 450]}, {"key": "payment-of-the", "type": "clause", "offset": [458, 472]}, {"key": "no-other-damages", "type": "clause", "offset": [498, 514]}, {"key": "notwithstanding-the", "type": "definition", "offset": [559, 578]}, {"key": "improper-payment", "type": "clause", "offset": [579, 595]}, {"key": "right-to", "type": "definition", "offset": [651, 659]}, {"key": "properly-payable", "type": "definition", "offset": [796, 812]}, {"key": "section-4", "type": "definition", "offset": [819, 828]}, {"key": "failure-to-exercise", "type": "definition", "offset": [889, 908]}, {"key": "reasonable-care", "type": "clause", "offset": [909, 924]}, {"key": "sections-3", "type": "clause", "offset": [931, 941]}, {"key": "failure-of-the", "type": "clause", "offset": [1031, 1045]}, {"key": "ordinary-care", "type": "definition", "offset": [1069, 1082]}, {"key": "provisions-of", "type": "clause", "offset": [1109, 1122]}, {"key": "for-value", "type": "definition", "offset": [1313, 1322]}, {"key": "of-the-customer", "type": "clause", "offset": [1339, 1354]}], "size": 6, "samples": [{"hash": "6E8Y6LXNwmD", "uri": "/contracts/6E8Y6LXNwmD#wrongful-honor", "label": "Business Online Banking Services Terms and Conditions", "score": 35.7355178638, "published": true}, {"hash": "it6eBJ0XB0U", "uri": "/contracts/it6eBJ0XB0U#wrongful-honor", "label": "Business Online Banking Services Terms and Conditions", "score": 35.3640785859, "published": true}, {"hash": "8DMpYMupR0s", "uri": "/contracts/8DMpYMupR0s#wrongful-honor", "label": "Business Online Banking Services Terms and Conditions", "score": 35.183997006, "published": true}], "snippet": "It shall constitute wrongful honor by the Bank if the Bank pays an Exception Check submitted in a timely and un-revoked Positive Pay Return Items File submitted in accordance with this Agreement. In the event that there is wrongful honor the Bank may, subject to the defenses set forth in this Agreement, be liable to the Customer for the lesser of the amount of the wrongfully paid Exception Check or the Customer\u2019s actual damages resulting from the Bank\u2019s payment of the Exception Check, but for no other damages suffered as a result of the wrongful honor. Notwithstanding the improper payment of an Exception Check, the Bank expressly reserves the right to assert that the Customer is liable for the amount of the wrongfully honored Exception Check on the grounds that the Exception Check was properly payable under Section 4-401(a). The Bank retains the right to assert the Customer's failure to exercise reasonable care under Sections 3-406(a) and 4-406(c). The Bank\u2019s improper payment shall not in and of itself constitute a failure of the Bank to have exercised ordinary care under the loss allocation provisions of Sections 3-406(b) and 4-406(e). The Bank retains the right to assert the defense that the Customer has sustained no actual damages because the Bank's honor of the Exception Check discharged for value an indebtedness of the Customer.", "hash": "ccfec0b6d249a40930c3619698b57a83", "id": 1}, {"snippet_links": [{"key": "by-bank", "type": "clause", "offset": [35, 42]}, {"key": "an-exception", "type": "clause", "offset": [56, 68]}, {"key": "exception-check-report", "type": "definition", "offset": [94, 116]}, {"key": "pay-request", "type": "definition", "offset": [146, 157]}, {"key": "default-option", "type": "definition", "offset": [191, 205]}, {"key": "return-request", "type": "definition", "offset": [226, 240]}, {"key": "in-the-event", "type": "clause", "offset": [242, 254]}, {"key": "to-company", "type": "definition", "offset": [306, 316]}, {"key": "lesser-of", "type": "definition", "offset": [325, 334]}, {"key": "actual-damages", "type": "definition", "offset": [398, 412]}, {"key": "resulting-from", "type": "definition", "offset": [413, 427]}, {"key": "payment-of-the", "type": "clause", "offset": [435, 449]}, {"key": "right-to", "type": "definition", "offset": [484, 492]}, {"key": "failure-to-exercise", "type": "definition", "offset": [510, 529]}, {"key": "reasonable-care", "type": "clause", "offset": [530, 545]}, {"key": "sections-3", "type": "clause", "offset": [559, 569]}, {"key": "for-value", "type": "definition", "offset": [736, 745]}, {"key": "indebtedness-of-company", "type": "clause", "offset": [749, 772]}], "size": 4, "samples": [{"hash": "gYr27dlpmiP", "uri": "/contracts/gYr27dlpmiP#wrongful-honor", "label": "Internet Banking Agreement", "score": 30.408332373, "published": true}, {"hash": "essKZFgUonn", "uri": "/contracts/essKZFgUonn#wrongful-honor", "label": "Internet Banking Agreement", "score": 30.408332373, "published": true}, {"hash": "bs3GrfuMmFt", "uri": "/contracts/bs3GrfuMmFt#wrongful-honor", "label": "Internet Banking Agreement", "score": 30.408332373, "published": true}], "snippet": "It shall constitute wrongful honor by Bank if Bank pays an Exception Check listed in a timely Exception Check Report unless: (a) Company issued a Pay Request, or (b) Company selected the pay default option and did not issue a Return Request. In the event that there is wrongful honor, Bank shall be liable to Company for the lesser of the amount of the wrongfully paid Exception Check or Company\u2019s actual damages resulting from Bank\u2019s payment of the Exception Check. Bank retains the right to assert Company\u2019s failure to exercise reasonable care under U.C.C. sections 3-406(a) and 4-406(c). Bank retains the right to assert the defense that Company has sustained no actual damages because Bank\u2019s honor of the Exception Check discharged for value an indebtedness of Company.", "hash": "0ed8d6dfb86637a41c5691563d91b8ca", "id": 2}, {"snippet_links": [{"key": "by-bank", "type": "clause", "offset": [35, 42]}, {"key": "exception-item", "type": "definition", "offset": [59, 73]}, {"key": "to-the-bank", "type": "clause", "offset": [141, 152]}, {"key": "in-the-event", "type": "clause", "offset": [176, 188]}, {"key": "customer-for", "type": "clause", "offset": [241, 253]}, {"key": "lesser-of", "type": "definition", "offset": [258, 267]}, {"key": "actual-damages", "type": "definition", "offset": [331, 345]}, {"key": "resulting-from", "type": "definition", "offset": [346, 360]}, {"key": "payment-of-the", "type": "clause", "offset": [368, 382]}, {"key": "right-to", "type": "definition", "offset": [416, 424]}, {"key": "for-value", "type": "definition", "offset": [544, 553]}, {"key": "of-customer", "type": "clause", "offset": [570, 581]}, {"key": "failure-to-exercise", "type": "definition", "offset": [630, 649]}, {"key": "reasonable-care", "type": "clause", "offset": [650, 665]}, {"key": "section-3", "type": "clause", "offset": [679, 688]}, {"key": "other-applicable-law", "type": "clause", "offset": [711, 731]}, {"key": "in-relation-to", "type": "clause", "offset": [732, 746]}, {"key": "the-payment", "type": "clause", "offset": [747, 758]}], "size": 4, "samples": [{"hash": "EDcfPjxxYF", "uri": "/contracts/EDcfPjxxYF#wrongful-honor", "label": "Treasury Management Master Agreement", "score": 22.7967145791, "published": true}, {"hash": "fv9rQK5Rwup", "uri": "/contracts/fv9rQK5Rwup#wrongful-honor", "label": "Treasury Management Master Agreement", "score": 22.2409308693, "published": true}], "snippet": "It shall constitute wrongful honor by Bank if Bank pays an Exception Item marked as \u201creturn\u201d listed in an Exception Decision delivered prior to the Bank\u2019s designated Cut- off. In the event there is wrongful honor:\na) Bank shall be liable to Customer for the lesser of the amount of the wrongfully paid Exception Item or Customer\u2019s actual damages resulting from Bank\u2019s payment of the Exception Item. Bank retains the right to assert the defense that Customer has sustained no actual damages because Bank\u2019s honor of the Exception Item discharged for value an indebtedness of Customer.\nb) Bank retains the right to assert Customer\u2019s failure to exercise reasonable care under U.C.C. section 3-406(a) and 4- 406 and other Applicable Law in relation to the payment or handling of any Item.", "hash": "0c15768a76c51f69a1ae49f0e2675d75", "id": 3}, {"snippet_links": [{"key": "return-request", "type": "definition", "offset": [94, 108]}, {"key": "disposition-instruction", "type": "definition", "offset": [109, 132]}, {"key": "no-disposition", "type": "clause", "offset": [184, 198]}, {"key": "default-option", "type": "definition", "offset": [260, 274]}, {"key": "lesser-of", "type": "definition", "offset": [353, 362]}, {"key": "actual-damages", "type": "definition", "offset": [409, 423]}, {"key": "payment-of-the", "type": "clause", "offset": [444, 458]}, {"key": "you-agree", "type": "clause", "offset": [619, 628]}, {"key": "our-liability-to-you", "type": "clause", "offset": [634, 654]}, {"key": "to-the-same-extent", "type": "definition", "offset": [666, 684]}, {"key": "provisions-of", "type": "clause", "offset": [729, 742]}, {"key": "these-terms", "type": "clause", "offset": [743, 754]}, {"key": "this-agreement", "type": "clause", "offset": [758, 772]}], "size": 3, "samples": [{"hash": "5IpQ7oT2B6i", "uri": "/contracts/5IpQ7oT2B6i#wrongful-honor", "label": "Deposit Agreement", "score": 25.3093771389, "published": true}, {"hash": "4PNpwGrjdRH", "uri": "/contracts/4PNpwGrjdRH#wrongful-honor", "label": "Deposit Agreement", "score": 24.1690622861, "published": true}], "snippet": "It will be wrongful honor by us if we honor: (a) a Suspect Item and we have received a timely Return Request Disposition Instruction for that item from you; or (b) a Suspect Item when no disposition instruction was received regarding the item and your Payment Default Option is \u201cReturn All.\u201d If there is wrongful honor, we will be liable to you for the lesser of the amount of the wrongfully paid item or the actual damages you suffer from our payment of the item. However, if payment of the item discharges an indebtedness or obligation of yours and because of this you have no actual damages or reduced damages, then you agree that our liability to you is reduced to the same extent. Our liability may also be limited by other provisions of these Terms or this Agreement.", "hash": "7131b069c08579b86b8c04f3f1b6c308", "id": 5}, {"snippet_links": [{"key": "by-bank", "type": "clause", "offset": [35, 42]}, {"key": "exception-item", "type": "definition", "offset": [59, 73]}, {"key": "return-items", "type": "clause", "offset": [111, 123]}], "size": 3, "samples": [{"hash": "d2PG9SNSkhV", "uri": "/contracts/d2PG9SNSkhV#wrongful-honor", "label": "Commercial Digital Banking Agreement", "score": 34.7580094578, "published": true}], "snippet": "It shall constitute wrongful honor by Bank if Bank pays an Exception Item submitted in a timely and un-revoked Return Items File.", "hash": "b5b35673ddd97bb81c462759fc23d5d3", "id": 6}, {"snippet_links": [{"key": "the-bank", "type": "clause", "offset": [31, 39]}, {"key": "exception-item", "type": "definition", "offset": [48, 62]}, {"key": "in-a-timely-manner", "type": "definition", "offset": [70, 88]}, {"key": "pay-request", "type": "definition", "offset": [114, 125]}, {"key": "in-the-event-of-a", "type": "clause", "offset": [127, 144]}, {"key": "customer-shall", "type": "clause", "offset": [189, 203]}, {"key": "lesser-amount", "type": "definition", "offset": [215, 228]}, {"key": "caused-by", "type": "clause", "offset": [287, 296]}, {"key": "block-a", "type": "definition", "offset": [351, 358]}, {"key": "debit-entry", "type": "definition", "offset": [359, 370]}, {"key": "sole-obligation", "type": "clause", "offset": [378, 393]}, {"key": "of-customer", "type": "clause", "offset": [508, 519]}, {"key": "rights-and-remedies", "type": "clause", "offset": [522, 541]}, {"key": "related-to", "type": "clause", "offset": [542, 552]}, {"key": "the-transaction", "type": "clause", "offset": [566, 581]}, {"key": "right-to", "type": "definition", "offset": [624, 632]}, {"key": "failure-to-exercise", "type": "definition", "offset": [658, 677]}, {"key": "reasonable-care", "type": "clause", "offset": [678, 693]}, {"key": "actual-damages", "type": "definition", "offset": [810, 824]}, {"key": "credit-entry", "type": "definition", "offset": [895, 907]}, {"key": "the-subject", "type": "clause", "offset": [949, 960]}, {"key": "the-originator", "type": "clause", "offset": [975, 989]}], "size": 2, "samples": [{"hash": "9g9JoHqd1XE", "uri": "/contracts/9g9JoHqd1XE#wrongful-honor", "label": "Treasury Management Services Agreement", "score": 26.3661875428, "published": true}, {"hash": "727tnfEQ50a", "uri": "/contracts/727tnfEQ50a#wrongful-honor", "label": "Treasury Management Services Agreement", "score": 25.6187542779, "published": true}], "snippet": "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:\n1. Bank\u2019s only liability to Customer shall be for the lesser amount of the amount wrongfully paid or Customer\u2019s 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\u2019s rights and remedies related to the entry or the transaction out of which it arose\n2. Bank retains the right to assert that a Customer\u2019s failure to exercise reasonable care was the cause of a wrongful honor.\n3. Bank also retains the right to assert as a defense that Customer sustained no actual damages due to its wrongful honor.\n4. 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.", "hash": "d4e40793a7faf3a3e574fde5a08525f6", "id": 7}, {"snippet_links": [{"key": "by-bank", "type": "clause", "offset": [35, 42]}, {"key": "exception-item", "type": "definition", "offset": [59, 73]}, {"key": "to-bank", "type": "definition", "offset": [141, 148]}, {"key": "in-the-event", "type": "clause", "offset": [171, 183]}, {"key": "to-company", "type": "definition", "offset": [230, 240]}, {"key": "lesser-of", "type": "definition", "offset": [249, 258]}, {"key": "actual-damages", "type": "definition", "offset": [320, 334]}, {"key": "resulting-from", "type": "definition", "offset": [335, 349]}, {"key": "payment-of-the", "type": "clause", "offset": [357, 371]}, {"key": "right-to", "type": "definition", "offset": [405, 413]}, {"key": "for-value", "type": "definition", "offset": [533, 542]}, {"key": "indebtedness-of-company", "type": "clause", "offset": [546, 569]}, {"key": "failure-to-exercise", "type": "definition", "offset": [614, 633]}, {"key": "reasonable-care", "type": "clause", "offset": [634, 649]}, {"key": "other-applicable-law", "type": "clause", "offset": [692, 712]}, {"key": "in-relation-to", "type": "clause", "offset": [713, 727]}, {"key": "the-payment", "type": "clause", "offset": [728, 739]}], "size": 2, "samples": [{"hash": "kgp66NjUIfE", "uri": "/contracts/kgp66NjUIfE#wrongful-honor", "label": "Treasury Management Services Agreement", "score": 35.4617871459, "published": true}, {"hash": "1zFzb4tyBQp", "uri": "/contracts/1zFzb4tyBQp#wrongful-honor", "label": "Treasury Management Services Agreement", "score": 27.8856947296, "published": true}], "snippet": "It shall constitute wrongful honor by Bank if Bank pays an Exception Item marked as \u201creturn\u201d listed in an Exception Decision delivered prior to Bank\u2019s designated Cut-off. In the event there is wrongful honor, Bank shall be liable to Company for the lesser of the amount of the wrongfully paid Exception Item or Company\u2019 actual damages resulting from Bank\u2019s payment of the Exception Item. Bank retains the right to assert the defense that Company have sustained no actual damages because Bank\u2019s honor of the Exception Item discharged for value an indebtedness of Company. Bank retains the right to assert Company\u2019s failure to exercise reasonable care under UCC section 3- 406(a) and 4-406 and other Applicable Law in relation to the payment or handling of any Item.", "hash": "0ab31ddfd79b6975b4ce3b1282406b4c", "id": 8}, {"snippet_links": [{"key": "we-pay", "type": "clause", "offset": [43, 49]}, {"key": "exception-check", "type": "definition", "offset": [53, 68]}, {"key": "exception-file", "type": "definition", "offset": [88, 102]}, {"key": "contrary-to", "type": "definition", "offset": [103, 114]}, {"key": "actual-damages", "type": "definition", "offset": [281, 295]}, {"key": "resulting-from", "type": "definition", "offset": [296, 310]}, {"key": "payment-of-the", "type": "clause", "offset": [315, 329]}, {"key": "right-to", "type": "definition", "offset": [391, 399]}, {"key": "to-exercise", "type": "clause", "offset": [423, 434]}, {"key": "reasonable-care", "type": "clause", "offset": [435, 450]}, {"key": "for-value", "type": "definition", "offset": [610, 619]}, {"key": "indebtedness-of", "type": "clause", "offset": [623, 638]}, {"key": "available-to", "type": "definition", "offset": [666, 678]}, {"key": "agreement-or", "type": "definition", "offset": [702, 714]}], "size": 2, "samples": [{"hash": "iF7lOcuimlo", "uri": "/contracts/iF7lOcuimlo#wrongful-honor", "label": "Business Online Banking Services Agreement", "score": 29.0670222587, "published": true}, {"hash": "f2GuuddRv0N", "uri": "/contracts/f2GuuddRv0N#wrongful-honor", "label": "Online Banking Services Agreement", "score": 27.9375051492, "published": true}], "snippet": "It will constitute wrongful honor by us if we pay an Exception Check listed in a timely Exception File contrary to a timely and properly submitted Decision. If there is wrongful honor: (a) We will be liable to you only for the amount of the wrongfully paid Exception Check or your actual damages resulting from our payment of the Exception Check, which ever amount is less; (b)We retain the right to assert that you failed to exercise reasonable care under the UCC; and (c) We retain the right to assert the defense that you have sustained no actual damages because our honor of the Exception Check discharged for value an indebtedness of yours or any other defense available to us under the UCC, this Agreement or otherwise.", "hash": "aaa19f49c25a8d917b81a85ff7f94041", "id": 9}, {"snippet_links": [{"key": "exception-item", "type": "definition", "offset": [48, 62]}, {"key": "in-a-timely-manner", "type": "definition", "offset": [70, 88]}, {"key": "exception-check-report", "type": "definition", "offset": [95, 117]}, {"key": "pay-request", "type": "definition", "offset": [147, 158]}, {"key": "default-option", "type": "definition", "offset": [193, 207]}, {"key": "return-request", "type": "definition", "offset": [228, 242]}, {"key": "to-the-bank", "type": "clause", "offset": [243, 254]}, {"key": "in-the-event-of-a", "type": "clause", "offset": [256, 273]}, {"key": "the-customer-shall", "type": "clause", "offset": [322, 340]}, {"key": "lesser-amount", "type": "definition", "offset": [352, 365]}, {"key": "caused-by", "type": "clause", "offset": [428, 437]}, {"key": "right-to", "type": "definition", "offset": [484, 492]}, {"key": "failure-to-exercise", "type": "definition", "offset": [518, 537]}, {"key": "reasonable-care", "type": "clause", "offset": [538, 553]}, {"key": "actual-damages", "type": "definition", "offset": [678, 692]}], "size": 2, "samples": [{"hash": "9g9JoHqd1XE", "uri": "/contracts/9g9JoHqd1XE#wrongful-honor", "label": "Treasury Management Services Agreement", "score": 26.3661875428, "published": true}, {"hash": "727tnfEQ50a", "uri": "/contracts/727tnfEQ50a#wrongful-honor", "label": "Treasury Management Services Agreement", "score": 25.6187542779, "published": true}], "snippet": "It will be a wrongful honor if the Bank pays an exception item listed in a timely manner on an Exception Check Report unless the Customer issued a Pay Request, or the Customer selected the pay default option and did not issue a Return Request to the Bank. In the event of a wrongful honor:\na. The Bank\u2019s only liability to the Customer shall be for the lesser amount of the amount wrongfully paid or the Customer\u2019s actual damage caused by the wrongful payment.\nb. The Bank retains the right to assert that a Customer\u2019s failure to exercise reasonable care was the cause of a wrongful honor.\nc. The Bank also retains the right to assert as a defense that the Customer sustained no actual damages due to its wrongful honor.", "hash": "227446c8fbd00d05b47585929c79e84e", "id": 10}], "next_curs": "ClcSUWoVc35sYXdpbnNpZGVyY29udHJhY3RzcjMLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2Ihd3cm9uZ2Z1bC1ob25vciMwMDAwMDAwYQyiAQJlbhgAIAA=", "clause": {"size": 39, "parents": [["remedies", "Remedies"], ["customers-remedies", "Customers Remedies"], ["positive-pay-services-terms-and-conditions", "Positive Pay Services Terms and Conditions"], ["miscellaneous", "Miscellaneous"], ["check-positive-pay-service", "Check Positive Pay Service"]], "title": "Wrongful Honor", "children": [], "id": "wrongful-honor", "related": [["lost-stolen-mutilated-or-destroyed-rights", "Lost, Stolen, Mutilated, or Destroyed Rights", "Lost, Stolen, Mutilated, or Destroyed Rights"], ["no-surrender", "No Surrender", "No Surrender"], ["lost-stolen-or-mutilated-note", "Lost, Stolen or Mutilated Note", "Lost, Stolen or Mutilated Note"], ["falsification", "Falsification", "Falsification"], ["lost-stolen-destroyed-or-mutilated-notes", "Lost, Stolen, Destroyed or Mutilated Notes", "Lost, Stolen, Destroyed or Mutilated Notes"]], "related_snippets": [], "updated": "2025-07-07T12:37:53+00:00", "also_ask": ["What key elements must be included to clearly define 'wrongful honor' and limit liability?", "How can parties negotiate carve-outs or exceptions to minimize exposure under this clause?", "What are the most common legal pitfalls or ambiguities that courts scrutinize in wrongful honor provisions?", "How does the treatment of wrongful honor differ across major jurisdictions or under UCP rules?", "What evidence or standards do courts typically require to establish a 'wrongful honor' in litigation?"], "drafting_tip": "Define 'wrongful honor' precisely to prevent misinterpretation; specify remedies for wrongful honor to ensure enforceability; allocate liability clearly to avoid disputes.", "explanation": "The Wrongful Honor clause defines the consequences and procedures when a bank or financial institution pays out on a financial instrument, such as a letter of credit, in violation of the terms and conditions specified in the agreement. In practice, this clause typically applies if the bank honors a demand for payment that should have been refused, for example, due to missing or non-compliant documentation. Its core function is to allocate responsibility and potential liability for such mistaken payments, thereby protecting parties from losses caused by improper disbursements."}, "json": true, "cursor": ""}}