Common use of RISKS AND DUTIES Clause in Contracts

RISKS AND DUTIES. Except for loss caused exclusively by Alterna's gross negligence or intentional or wilful misconduct, and subject to the limitations of liability in this Agreement or the Account Agreement, the member assumes all risk of loss due to the use of the Services, including, without limitation, the risk of Third Party fraud and internal fraud of the member. The member further agrees that they will notify Alterna immediately: a. of any suspected or actual misuse or unauthorized use of the PAC and/or PIW; or b. if the PAC and/or PIW becomes known to anyone other than the member; and c. if the member receives Notification of any Transaction affecting the Account that alerts the member of Account activity that was not authorized by them. The member will change the PAC and/or PIW if either of the notification requirements above in a) or b) arises. The notification requirement above in b) does not apply if the member or Signing Officer has disclosed the PAC to a Third Party for a personal financial management service similar to that described in article 31, Personal Financial Management. The member acknowledges that the member is responsible for all use made of the PAC and/or PIW and that Alterna is not liable for the member's failure to comply with any part of this Agreement. The member is liable for all authorized and unauthorized use, including all Transactions. The member is also liable for all fraudulent or worthless deposits made into the Account. Without limiting the generality of the foregoing, the member expressly acknowledges and agrees that the member shall be bound by and liable for any use of the PAC or PIW by a member of the member's, Signing Officer's, ▇▇▇▇▇▇▇▇'s, or Non Signer's household. The member acknowledges that the member is liable for all transfers authorized by any Signing Officer to linked accounts. The member bears all risk for all such Transactions. Where the member knows of facts that give rise or ought to give rise to suspicion that any Transactions, instructions in respect of the Accounts, or Instruments deposited to the Accounts are fraudulent, unauthorized, counterfeit, or induced through or in any way tainted by fraud or unlawful conduct, or otherwise likely to be returned to Alterna or found invalid for any reason, the member has a duty to make reasonable inquiries of proper parties into such Transactions, instructions, or Instruments, as the case may be, to determine whether they are valid authorized Transactions, instructions, or Instruments, as the case may be, before negotiating or, alternatively, accessing any funds derived from such Transactions, instructions, or Instruments, and to disclose to Alterna the member's suspicion and the facts upon which the member's suspicion is based (“Suspicious Circumstances”). Alterna may, in its sole discretion, investigate any Suspicious Circumstances disclosed by the member, but Alterna does not owe the member any obligation to undertake its own investigation of Suspicious Circumstances. Alterna may place a hold on all or some of the member's Accounts pending investigation of any improper use of any Account. Any hold imposed by Alterna pursuant to any of the terms of this Agreement, or investigation undertaken by Alterna, is imposed or undertaken by Alterna at Alterna's sole discretion and for Alterna's sole benefit. Release of a hold by Alterna is not a confirmation that a Transaction, instruction, or Instrument is in fact good and may not be relied upon as such by the member. If, to the satisfaction of Alterna, any improper use is established, Alterna can withdraw or suspend the Services and/or operation of the Account without notice.

RISKS AND DUTIES. Except for loss caused exclusively by AlternaAlterna Bank's gross negligence or intentional or wilful misconduct, and subject to the limitations of liability in this Agreement or the Account Agreement, the member client assumes all risk of loss due to the use of the Services, including, without limitation, the risk of Third Party fraud and internal fraud of the memberclient. The member client further agrees that they will notify Alterna Bank immediately: a. of any suspected or actual misuse or unauthorized use of the PAC and/or PIW; or b. if the PAC and/or PIW becomes known to anyone other than the memberclient; and c. if the member client receives Notification of any Transaction affecting the Account that alerts the member client of Account activity that was not authorized by them. The member client will change the PAC and/or PIW if either of the notification requirements above in a) or b) arises. The notification clientnotification requirement above in b) does not apply if the member or Signing Officer has disclosed the PAC to a Third Party for a personal financial management service similar to that described in article 31, Personal Financial Management. The member client acknowledges that the member client is responsible for all use made of the PAC and/or PIW and that Alterna Bank is not liable for the memberclient's failure to comply with any part of this Agreement. The member client is liable for all authorized and unauthorized use, including all Transactions. The member client is also liable for all fraudulent or worthless deposits made into the Account. Without limiting the generality of the foregoing, the member client expressly acknowledges and agrees that the member client shall be bound by and liable for any use of the PAC or PIW by a member client of the memberclient's, Signing Officer's, ▇▇▇▇▇▇▇▇'s, or Non Signer's household. The member client acknowledges that the member client is liable for all transfers authorized by any Signing Officer to linked accounts. The member client bears all risk for all such Transactions. Where the member client knows of facts that give rise or ought to give rise to suspicion that any Transactions, instructions in respect of the Accounts, or Instruments deposited to the Accounts are fraudulent, unauthorized, counterfeit, or induced through or in any way tainted by fraud or unlawful conduct, or otherwise likely to be returned to Alterna Bank or found invalid for any reason, the member client has a duty to make reasonable inquiries of proper parties into such Transactions, instructions, or Instruments, as the case may be, to determine whether they are valid authorized Transactions, instructions, or Instruments, as the case may be, before negotiating or, alternatively, accessing any funds derived from such Transactions, instructions, or Instruments, and to disclose to Alterna Bank the memberclient's suspicion and the facts upon which the memberclient's suspicion is based (“Suspicious Circumstances”). Alterna Bank may, in its sole discretion, investigate any Suspicious Circumstances disclosed by the memberclient, but Alterna Bank does not owe the member client any obligation to undertake its own investigation of Suspicious Circumstances. Alterna Bank may place a hold on all or some of the memberclient's Accounts pending investigation of any improper use of any Account. Any hold imposed by Alterna Bank pursuant to any of the terms of this Agreement, or investigation undertaken by AlternaAlterna Bank, is imposed or undertaken by Alterna Bank at AlternaAlterna Bank's sole discretion and for AlternaAlterna Bank's sole benefit. Release of a hold by Alterna Bank is not a confirmation that a Transaction, instruction, or Instrument is in fact good and may not be relied upon as such by the memberclient. If, to the satisfaction of AlternaAlterna Bank, any improper use is established, Alterna Bank can withdraw or suspend the Services and/or operation of the Account without notice.