Common use of Security Event Clause in Contracts

Security Event. If a party learns or has reason to believe that the other party’s Confidential Information has been disclosed or accessed by an unauthorized party (each, a “Security Event”), such party will immediately give notice of such event to the other party to the extent permitted by law or law enforcement authorities. In such notification, the party will report on the nature of the incident, the estimated impact on the other and investigative action taken or planned. Security Events shall include, without limitation, violations of Applicable Law. Notwithstanding anything in this provision, each party will also comply fully with all federal, state or local laws applicable to security breaches. Except as may be required by law or law enforcement authorities, to the extent the breach involves Client Portfolio Information, PFSC will not notify any of Client’s customers or potential customers of unauthorized access of such Security Event without Client’s express consent or upon Client’s specific instruction. The party that experiences the Security Event will be responsible for the costs of any required notifications.

Appears in 3 contracts

Sources: Backup and Successor Servicing Agreement (LendingClub Corp), Backup and Successor Servicing Agreement (LendingClub Corp), Backup and Servicing Agreement (LendingClub Corp)