The Sender Agrees to Indemnify Each Reserve Bank For

The sender agrees to indemnify each Reserve Bank for:

A) Any loss or expense resulting from sender's lack of authority
B) Any action taken by the Reserve Bank within the scope of its authority in the handling of the item
C) An electronic item that is not a substitute check is not liable for any amount paid by a Reserve Bank that is attributable to the Reserve Bank's own lack of good faith or failure to exercise ordinary care
D) Any warranty made by the Reserve Bank under Regulation J, Regulation CC, or the UCC