Indemnification Clauses & Agreements | Learn About Law

[@shekhartalashilkar7063]

Excellent And Enriching informative lecture. Thank you very much.

[@PhillipRay-j5h]

A banking institution received my money in someone else account. they still hold my money and will not send back to the sending institution so it can be resent to me as i am the correct person to receive funds. They said the the sending bank needs to send a letter of Indemnity before they will send back the funds. The bank said they cant and wont so I'm left without the money sent to me without this letter of indemnity which i can not get. is there a way for me to write this letter to hold them harmless if they just send my money to the correct account? they recovered my money and are just holding it. What do i do about this letter of IMDEMITY?

[@Learn-about-law]

Hi, Phillip! Thanks for your question about indemnification and how it applies to your situation with the bank. Indemnification clauses and agreements are in many legal documents and basically protect one party from certain liabilities or claims. In this case, the bank is asking for a Letter of Indemnity (LOI) to protect itself from liability if there is an issue or dispute about returning the funds to the right account. What is a LOI? A Letter of Indemnity is a written undertaking by one party to another to pay for any losses or liabilities that may arise from a particular transaction. In banking, an LOI may be asked when a bank is returning or transferring funds and wants to be sure it won’t be held liable if a dispute arises about that transfer later on. In your case, the bank is asking the sending bank to provide this LOI so that if they return the funds to the sending bank or directly to you, they won’t be liable for any later claims or losses from this transaction. Can You Write This Yourself? A Letter of Indemnity would usually come from the party involved in the transaction (in this case the sending bank) as they are the one who could potentially be liable. But since the sending bank is not willing to provide this letter, you are in a tough spot. You can try to provide your own indemnification, but this might not be acceptable to the receiving bank because: Risk of Enforcement: Banks want indemnities from entities with legal and financial standing to cover potential losses (another bank or insurance). Legal Acceptance: The bank may have internal policies that do not accept indemnity letters from individuals. Legal Options: Contact the Receiving Bank: Explain your situation and ask if they would accept a Letter of Indemnity from you, holding them harmless if they return the funds. You may want to work with an attorney to draft this letter to address the bank’s concerns. Escalate the Issue: If the receiving bank insists on an LOI from the sending bank, consider escalating the issue through both institutions’ legal or compliance departments. Sometimes higher-level people may approve alternative solutions. Consult with Legal Counsel: If neither bank is cooperating, a formal demand letter from an attorney may be necessary. You may need to take legal action to recover your funds if the bank is holding your money without just cause. File a Complaint: Consider filing a complaint with the banking regulator or ombudsman that oversees banks in your country. Sometimes external pressure can prompt faster resolution. You can try to write a Letter of Indemnity but the success of this depends if the bank would accept it from an individual. I would recommend consulting with an attorney to explore other options to get your funds back. Please note, that this is for information purposes only and not legal advice or the establishment of an attorney-client relationship. Feel free to reach out to us at 630.324.6666.

[@sighteternal497]

Great video.

[@Learn-about-law]

Thanks for watching!

[@remakbar3813]

Some indemnity clauses state that a “Subcontractor shall indemnify and hold harmless the Contractor…..and its Client against loss…” In such case a question in essence is how will the Client be able to enforce any claim against Subcontractor directly?