Common use of Recourse Liability Clause in Contracts

Recourse Liability. Bank shall extend credit in the amount requested for Big Ticket Recourse Accounts, and, except as otherwise provided herein, Zale shall be liable for and bear all of the losses resulting from charge off of the principal balances of such Big Ticket Recourse Accounts in accordance with this Agreement, including, without limitation: (i) any existing principal balance at the time the Account becomes a Big Ticket Recourse Account and (ii) all subsequent charges to the Big Ticket Recourse Account for the duration of the Account. Zale’s recourse liability for Big Ticket Recourse Accounts shall be calculated on a monthly basis and charged against the Big Ticket Reserve Account as set forth in this Section 3.21(a) up to the amount of such Account approved by Zale as set forth in this Section 3.21(a). Any Accounts in the Big Ticket Recourse Program will be subject to Chargeback to Zale for Cardholder fraud as set forth in this Section 3.21(a). If the ▇▇▇▇ Credit Services Department requests that Bank approve, and Bank so agrees, any such Account prior to Bank’s satisfactory completion of its normal authentication procedures, Zale shall bear one hundred percent (100%) of the principal amount of any loss on such Big Ticket Recourse Account resulting from Cardholder fraud. With respect to all other Big Ticket Recourse Accounts, Zale shall be responsible only for the principal amount of fraud losses in excess of the credit limit that Bank would otherwise have approved. Bank shall have no recourse to Zale with respect to the charge off of principal balances resulting from Big Ticket Recourse Account credit line increases that were not expressly approved by Zale. As of the Effective Date, Bank does not reclassify Big Ticket Recourse Accounts to non-recourse status on its data processing system. Bank may develop means that Bank determines, in its sole discretion, will allow Big Ticket Recourse Accounts to be reclassified to non-recourse status. In such event, Bank shall consider reclassification of zero balance Big Ticket Recourse Accounts and the removal of such Accounts from the Big Ticket Recourse Program. Upon removal of any Account from the Big Ticket Recourse Program, Zale shall have no further liability for any such Account under this Agreement. Bank may, at its option, request that Zale bear the costs associated with any systems development related to the means as set forth in this Section 3.21(a)(ii). If Zale elects not to bear such costs, Bank shall have no further obligation to review Big Ticket Recourse Accounts for potential removal from the Big Ticket Recourse Program. The parties hereto hereby agree that the rights and obligations set forth in this Section 3.21(a)(ii) shall survive the termination of this Agreement.

Recourse Liability. Bank Citibank shall extend credit in the amount requested for Big Ticket Recourse Accounts, and, except as otherwise provided herein, Zale shall be liable for and bear all of the losses (the “Big Ticket Losses”) resulting from charge off of the principal balances of such Big Ticket Recourse Accounts in accordance with this Agreement, the Merchant Services Agreement including, without limitation: (i1) any existing principal balance at the time the Account becomes a Big Ticket Recourse Account and (ii2) all subsequent charges to the Big Ticket Recourse Account for the duration of the Account. Zale’s recourse liability for Big Ticket Recourse Accounts shall be calculated on a monthly basis and charged against the Big Ticket Reserve Account as set forth in this Section 3.21(a) outlined below up to the amount of such Account approved by Zale as set forth in this Section 3.21(a)provided herein. Any Accounts in the Big Ticket Recourse Program will be subject to Chargeback chargeback to Zale for Cardholder fraud as set forth in this Section 3.21(a)to the extent provided below. If the ▇Z▇▇▇ Credit Services Department requests that Bank approveCitibank, and Bank so agreesCitibank agrees to, approve any such Account prior to BankCitibank’s satisfactory completion of its normal authentication procedures, Zale shall bear one hundred percent (100%) % of the principal amount of any loss on such Big Ticket Recourse Account resulting from Cardholder fraud. With respect to all other Big Ticket Recourse Accounts, Zale shall will be responsible only for the principal amount of fraud losses in excess of the credit limit that Bank Citibank would have otherwise have approved. Bank Citibank shall have no recourse to Zale with respect to the charge off of principal balances resulting from Big Ticket Recourse Account credit line increases that were not expressly approved by Zale. As of the Effective Datedate of this Letter Agreement, Bank Citibank does not reclassify Big Ticket Recourse Accounts to non-recourse status on its data processing system. Bank may Citibank may, in the future, develop means that Bank Citibank determines, in its sole discretion, will allow Big Ticket Recourse Accounts to be reclassified to non-recourse statusstatus in a controlled and efficient manner. In such event, Bank shall Citibank will consider reclassification of zero balance Big Ticket Recourse Accounts and the removal of such Accounts from the Big Ticket Recourse Program. Upon removal of any Account from the Big Ticket Recourse Program, Zale shall have no further liability for any such Account under this Letter Agreement. Bank Citibank may, at its option, request that Zale bear the costs associated with cost of any unique systems development related to the means as set forth in this Section 3.21(a)(ii)described above. If Zale elects not to bear such coststhe cost, Bank Citibank shall have no further obligation to review Big Ticket Recourse Accounts for potential removal from the Big Ticket Recourse Program. The parties hereto hereby agree that In the rights event Citibank is reimbursed by Zale for any loss on any Big Ticket Account as provided herein and obligations set forth all or a portion of such Account is subsequently collected by Citibank, Citibank shall promptly (and in this Section 3.21(a)(iiany event within 10 days of receipt of any such amount) pay fifty percent (50%) of any such collected amount to Zale. This provision shall survive the termination of this the Merchant Services Agreement.