Common use of LIABILITY FOR UNCOMPLETED OR ERRONEOUS TRANSFERS Clause in Contracts

LIABILITY FOR UNCOMPLETED OR ERRONEOUS TRANSFERS. (1) If an uncompleted or erroneous transfer occurs because the District used the Contractor’s EFT information incorrectly, the District remains responsible for— (i) Making a correct payment; and (ii) Recovering any erroneously directed funds. (2) If an uncompleted or erroneous transfer occurs because the Contractor’s EFT information was incorrect, or was revised within 30 days of District release of the EFT payment transaction instruction to the Federal Reserve System, and— (i) If the funds are no longer under the control of the payment office, the District is deemed to have made payment and the Contractor is responsible for recovery of any erroneously directed funds; or (ii) If the funds remain under the control of the payment office, the District shall not make payment and the provisions of paragraph (d) shall apply.