Article e14: Force Majeure
“A bank assumes no liability or responsibility for the consequences arising out of the interruption of its business, including but not limited to its inability to access a data processing system, or a failure of equipment, software or communications network, caused by Acts of God, riots, civil commotions, insurrections, wars, acts of terrorism, cyberattacks, or by any strikes or lockouts or any other causes, including failure of equipment, software or communications networks, beyond its control.”
Explanation and Examples
1. “A bank assumes no liability or responsibility for the consequences arising out of the interruption of its business”
- Explanation: This clause means that if a bank’s operations are disrupted, it will not be held responsible for any negative outcomes that result from such interruptions. This protection is crucial for banks, as their operations are highly sensitive to disruptions.
- Example: Suppose a bank is unable to process transactions due to an unexpected power outage. According to this clause, the bank would not be liable for any issues that arise from the inability to complete transactions during the outage.
2. “Including but not limited to its inability to access a data processing system”
- Explanation: This phrase extends the bank’s liability protection to situations where it cannot access its data systems, which are critical for its operations.
- Example: If a bank’s data processing system is offline due to a cyberattack, and the bank is unable to provide services such as account management or fund transfers, the bank will not be liable for the resulting inconveniences or losses.
3. “Or a failure of equipment, software or communications network”
- Explanation: This clause covers any failures in the bank’s equipment, software, or communications infrastructure, which could impact its ability to perform its functions.
- Example: If a bank’s server crashes, preventing customers from accessing their accounts online, the bank is not responsible for any issues or losses that occur as a result of this failure.
4. “Caused by Acts of God”
- Explanation: Acts of God refer to natural events that are beyond human control, such as natural disasters. The bank is not liable for disruptions caused by these events.
- Example: During a major earthquake, if a bank’s operations are disrupted due to damage to its facilities, it will not be held liable for any inconvenience or losses experienced by customers.
5. “Riots, civil commotions, insurrections, wars, acts of terrorism”
- Explanation: This clause includes various forms of social and political unrest that could disrupt banking operations. The bank is not responsible for issues arising from these events.
- Example: If a bank’s services are interrupted due to a war or a riot near its branch, it will not be liable for any delays or losses that customers might face as a result.
6. “Cyberattacks”
- Explanation: This covers attacks on the bank’s digital systems, such as hacking or malware, which can disrupt services. The bank will not be held liable for issues resulting from these attacks.
- Example: If a bank’s systems are compromised due to a cyberattack, causing a temporary loss of online banking services, the bank is not responsible for any resulting financial losses or service disruptions.
7. “Or by any strikes or lockouts”
- Explanation: This part addresses labor disputes that could affect the bank’s operations. If a strike or lockout impacts the bank, it will not be liable for the consequences.
- Example: If bank employees go on strike and the bank cannot process transactions or provide customer service, the bank will not be held liable for any disruptions or financial losses incurred by customers.
8. “Or any other causes, including failure of equipment, software or communications networks, beyond its control”
- Explanation: This clause is a catch-all for any other unforeseen or uncontrollable events that disrupt the bank’s operations, not explicitly listed in the previous clauses.
- Example: If a sudden and severe network outage prevents the bank from processing transactions, and this issue is beyond the bank’s control, the bank will not be responsible for any problems resulting from this outage.