Wrongful Honor. It will be a wrongful honor if the Bank pays an exception item listed in a timely manner on an Exception Check Report unless the Customer issued a Pay Request, or the Customer selected the pay default option and did not issue a Return Request to the Bank. In the event of a wrongful honor: a. The Bank’s only liability to the Customer shall be for the lesser amount of the amount wrongfully paid or the Customer’s actual damage caused by the wrongful payment. b. The Bank retains the right to assert that a Customer’s failure to exercise reasonable care was the cause of a wrongful honor. c. The Bank also retains the right to assert as a defense that the Customer sustained no actual damages due to its wrongful honor.
Appears in 2 contracts
Sources: Treasury Management Services Agreement, Treasury Management Services Agreement