Common use of Cancellation or Amendment of an Entry Clause in Contracts

Cancellation or Amendment of an Entry. (i) Except for those instances, if any, in which a mandatory right is conferred by the Rules, Customer shall have no right to the cancellation or amendment of an Entry or file, to require the return of or adjustment to an Entry or to stop the payment or posting of an Entry, once the Entry or file has been received by Bank. However, Bank shall use reasonable efforts to act on a request by Customer for cancellation or amendment of an Entry if the request is received by Bank prior to its transmittal of the Entry or, in the case of an On-Us Entry, prior to its crediting the Receiver’s account. However, Bank shall have no liability to Customer if such cancellation or amendment is not effected. Customer shall reimburse Bank for any expenses, losses, or damages Bank may incur in effecting or attempting to affect Customer’s request for the cancellation or amendment of an Entry. (ii) If an Entry (or a request for cancellation or amendment of an Entry) received by Bank purports to have been transmitted or authorized by Customer, it will be deemed effective as Customer’s Entry (or request) and Customer shall be obligated to pay Bank the amount of such Entry as provided herein even though the Entry (or request) was not authorized by Customer. (iii) If an Entry (or request for cancellation or amendment of an Entry) received by Bank was transmitted or authorized by Customer, Customer shall be obligated to pay the amount of the Entry whether or not that Entry was erroneous in any respect or that error could have been detected by Bank.