Financial institutions should be aware that subsection 2.12.3 of the internal regulation contains compensation that ODFI grants to a RDFI when the first requests the return of a defective registration or credit holder without the authorisation of the initiator. Nacha publishes the attached form entitled “Compensation Agreement – Request for Restitution of Ach Entry Funds” (“Compensation Agreement”) for use by financial institutions in certain situations where an ODFI seeks restitution of funds from an ACH transaction, and the RDFI wishes to receive written compensation in addition to the compensation contained in the nacha operating rules (“Rules”. Nacha encourages financial institutions to familiarize themselves with this agreement and to examine the situations in which they can be used, as their use will reduce delays and costs associated with negotiating the terms of agreements between financial institutions.  ACH PROCESSOR is responsible for the delivery of ACH services in accordance with the provisions of this Agreement and applicable rules and regulations. ACH PROCESSOR assumes no responsibility for errors, acts or non-acts committed by others (direct or indirect), including, but not limited to, the financial institution, banks, communications providers, common airlines or clearing houses through which entries may have been transmitted and created. ACH PROCESSOR is not responsible for the losses, responsibility or delays resulting from fires, earthquakes, wars, riots, shocks or breakdowns, acts of government, labour disputes, failures in communication networks, criminal or unlawful acts of third parties not under the control or use of ACH PROCESSOR, legal constraints or other events beyond the control of ACH PROCESSOR. ACH PROCESSOR is not liable to the Customer for delays in receiving or transmitting funds or errors in third-party credit or debit inflows, including the Automated Clearing House, a custodian financial institution or a customer representative. Subsection 2.12.3 ODFI Compensation for Returns Requested An ODFI that requires a RDFI to return a registration or credit not subject to the authorisation of the initiator is compensated by the RDFI for all claims, claims, losses, commitments and expenses, including legal fees and expenses directly or indirectly resulting from the compliance of such a request by the RDFI. The customer agrees to obtain the permission of the recipients in accordance with the requirements of the rules and regulations before debiting or crediting the receivers` accounts. The client manages copies of authorizations for a period of two years from the date the data set was established. With respect to all entries from the customer processed by ACH PROCESSOR, the Customer assures and guarantees the Customer that (1) each recipient has authorized the debit and or credit from his account, (2) each entry is duly authorized for an amount agreed by the recipient and (3) any entry in all other points.
The client undertakes to compensate ACH PROCESSOR, including its directors, executives, employees and related companies, for all claims, receivables, losses, liabilities, fees or expenses (including fees and legal fees) related to any violations of these insurances and guarantees. These assurances and guarantees by the customer and its obligation to compensate under this contract apply to the termination of the contract.
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