Common use of Unauthorized Transactions Clause in Contracts

Unauthorized Transactions. The Bank may process any instruction (including an amendment or cancellation instruction) that the Bank believes is transmitted or authorized by Customer if the Bank acts in compliance with the security procedures Customer and the Bank have agreed upon for the Service. The instructions will be deemed effective as if made by Customer, and Customer will be obligated to pay the Bank in the amount of such transactions, even though they are not transmitted or authorized by Customer. The Bank may elect to verify the authenticity or content of any instruction by placing a call to any authorized signer on Customer’s account or any other person designated by Customer for that purpose but the Bank is not required to do so. If the Bank is unable to verify an instruction to its satisfaction, or the Bank believes in good faith that such instruction violates a federal, state, or local law, regulation, or court instruction, the Bank may reject the instruction.

Unauthorized Transactions. The Bank may process any instruction (including an amendment or cancellation instruction) that the Bank believes is transmitted or authorized by Customer if the Bank acts in compliance with the security procedures Customer and the Bank have agreed upon for the Service. The instructions will be deemed effective as if made by Customer, and Customer will be obligated to pay the Bank in the amount of such transactions, even though they are not transmitted or authorized by Customer. The Bank may elect to verify the authenticity or content of any instruction by placing a call to any authorized signer on Customer’s an account or any other person designated by Customer for that purpose but the Bank is not required to do so. If the Bank is unable to verify an instruction to its satisfaction, or the Bank believes in good faith that such instruction violates a federal, state, or local law, regulation, or court instruction, the Bank may reject the instruction.