$1 Million FraudFree Guarantee

IMPORTANT TERMS AND CONDITIONS

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SafeChain Financial, Inc.’s $1 Million FraudFree Guarantee offered via SafeWire


Last updated: October 24, 2018

SafeChain has set aside cash, credit instruments, and other sources of funds (the “Reserve”) in the aggregate amount of $1,000,000.00, and that Reserve is the basis of the $1 Million FraudFree Guarantee (hereinafter “FraudFree Guarantee”). In the future, SafeChain may replace the current source of funds in the Reserve with one or more insurance products, such as a contract performance bond, and we may further change how the Reserve is funded from time to time. This Reserve allows SafeChain to offer the FraudFree Guarantee against wire fraud occurring in a residential (non-commercial) real estate transaction in the United States by customers using the SafeWire solution offered by SafeChain, as further detailed below (a “Qualified Transaction”). However, there are important limitations on the FraudFree Guarantee about which you should be aware, including:

1. The $1,000,000.00 of coverage is a maximum, aggregate amount of protection available to all customers using SafeWire. Meaning, if SafeChain has claims against the Reserve, the total amount of available coverage for later claims decreases. Accordingly, SafeChain can only provide coverage under the FraudFree Guarantee up to the amount of Reserve available or remaining at the time that a claim is made; provided that the maximum amount of any claim covered by the FraudFree Guarantee will be limited to $1,000,000.00 even if the Reserve has available funds in excess of $1,000,000.00 at the time a claim is made.

2. To the extent SafeChain uses third party products to fund the Reserve, such as credit instruments and insurance products, those products may expire, or the credit provider or insurance carrier may terminate the product or coverage, in which case SafeChain may not be able to provide, or will need to decrease, the coverage under the FraudFree Guarantee. SafeChain reserves the right to discontinue the FraudFree Guarantee at any time, and will notify affected customers of its discontinuance or expiration as soon as reasonably practical.

3. A claim must fit within the description of a Qualified Transaction to be eligible for the FraudFree Guarantee. See the section below entitled “Description of Qualified Transactions” for a comprehensive list of SafeWire transactions that qualify for coverage under the FraudFree Guarantee.

4. For a Qualified Transaction to be covered by the FraudFree Guarantee, the transaction must be performed using SafeWire, the closing must occur, and all wires must be sent while the Reserve is funded and is being offered to the SafeWire customer.  The FraudFree Guarantee will not apply to, and SafeChain will not be responsible for, claims made after termination or expiration of the FraudFree Guarantee or the Reserve, regardless of whether or not the affected customer has been notified of such termination or expiration.    

5. SafeChain has its own customer terms and conditions for the SafeWire solution, which can be found at SafeChain’s website (or in a separate written agreement between the customer and SafeChain, if applicable). All such terms and conditions apply to the FraudFree Guarantee. If the customer breaches the terms and conditions while using the SafeWire solution, SafeChain (or SafeChain’s insurance carrier or credit provider) may deny coverage under the FraudFree Guarantee.  

THE FRAUDFREE GUARANTEE: SUBJECT TO THE OTHER PROVISIONS CONTAINED IN THESE TERMS AND CONDITIONS, SAFECHAIN GUARANTEES THAT, DURING THE PERIOD AND TO THE EXTENT THAT THE RESERVE IS AVAILABLE, IF A SAFEWIRE CUSTOMER LOSES MONEY DUE TO WIRE FRAUD WHILE ATTEMPTING TO CLOSE A SALE OR A REFINANCE OF A RESIDENTIAL REAL ESTATE TRANSACTION IN THE UNITED STATES USING A FINANCIAL INSTITUTION LOCATED IN THE UNITED STATES, FUNDS IN THE RESERVE WILL BE USED TO REIMBURSE THE CUSTOMER FOR SUCH LOSSES TO THE EXTENT THERE ARE FUNDS AVAILABLE IN THE RESERVE AT THE TIME OF THE LOSS BUT IN NO EVENT MORE THAN $1,000,000 FOR ANY CLAIM.

To Make a Claim: To make a claim under the FraudFree Guarantee, you must call (614) 362-8058 or email our Customer Service Department at support@safewire.com within one (1) business day of discovering the potential or actual wire fraud. SafeChain (or our insurance carrier or credit provider) may deny coverage if the notice occurs later.

PLEASE NOTE THAT THE FraudFree Guarantee IS A LIMITED GUARANTEE. THIS LIMITED GUARANTEE GIVES YOU SPECIFIC LEGAL RIGHTS AND YOU MAY ALSO HAVE OTHER RIGHTS, WHICH VARY FROM STATE TO STATE. 

LIMITATION OF LIABILITY

THE REMEDIES DESCRIBED ABOVE ARE YOUR SOLE AND EXCLUSIVE REMEDIES AND SAFECHAIN’S ENTIRE LIABILITY UNDER THE FRAUDFREE GUARANTEE. OUR LIABILITY (EXCLUSIVE OF PROCEEDS PAID OUT OF THE RESERVE) SHALL UNDER NO CIRCUMSTANCES EXCEED THE ACTUAL AMOUNT PAID BY YOU FOR THE USE OF THE SAFEWIRE SOLUTION, NOR SHALL WE UNDER ANY CIRCUMSTANCES BE LIABLE FOR ANY CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES OR LOSSES, WHETHER DIRECT OR INDIRECT, REGARDLESS OF: (A) WHETHER THE DAMAGES WERE FORESEEABLE; (B) WHETHER OR NOT SAFECHAIN WAS ADVISED OF THE POSSIBILITY OF THE DAMAGES; AND (C) THE LEGAL OR EQUITABLE THEORY (CONTRACT, TORT OR OTHERWISE) ON WHICH THE CLAIM IS BASED, AND NOTWITHSTANDING THE FAILURE OF ANY AGREED OR OTHER REMEDY OF ITS ESSENTIAL PURPOSE. EVEN IF THE RESERVE HAS ADDITIONAL FUNDS AVAILABLE, THE MAXIMUM AMOUNT OF ANY CLAIM COVERED BY THE FRAUDFREE GUARANTEE WILL BE LIMITED TO NO GREATER THAN $1,000,000.00.

SOME STATES DO NOT ALLOW THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE ABOVE LIMITATION OR EXCLUSION MAY NOT APPLY TO YOU.

Description of Qualified Transactions

In order to be eligible for coverage under the FraudFree Guarantee, the transaction must be the type of Qualified Transaction described below. Generally, a Qualified Transaction will either be a refinancing or a purchase/sale of a residential property. In a refinancing transaction (“Refinancing”), the homeowner is the borrower of the borrowed funds. In a purchase/sale transaction (“Purchase Transaction”), the buyer is the “payor” of funds and may also be a borrower of funds, and the seller is the recipient or “payee” of funds. Title companies are usually involved in the wire transfers of funds associated with the Refinancings or Purchase Transactions, and often title companies are the paying customer of SafeWire. In both Refinancings and Purchase Transactions, the borrower must be a person whose identity has been verified by SafeWire, and in Purchase Transaction, both the buyer and seller must be persons whose identities were verified by SafeWire (in each case, a person whose identity has been successfully verified by SafeWire is called a “SafeWire Verified Party”).

 

There are four types of Qualified Transactions:

1. Recipient of funds in a Refinancing

a) the party making the claim under the FraudFree Guarantee (“Claimant”) is a SafeWire customer receiving funds via wire transfer;

b) the Claimant has made a good faith attempt to do one of the following: (1) inform the borrower of the SafeWire process through the real estate agent; (2) inform the borrower of the SafeWire process by calling the borrower or (3) send a SafeWire invitation to the borrower, in each case within 1 day of receiving the Refinancing contract;

c) the Claimant used SafeWire to authenticate the identity of the homeowner/borrower in a Refinancing;

d) the borrower has successfully completed a SafeWire verification with no security concerns indicated on the verification panel, becoming a SafeWire Verified Party;

e) the SafeWire Verified Party has either viewed or downloaded the Claimant’s appropriate bank account information through the SafeWire verification process;

f) the SafeWire Verified Party accurately submits the SafeWire customer’s banking information to the SafeWire Verified Party’s bank in an attempt to transmit funds via wire transfer to such SafeWire customer;

g) funds are debited from the SafeWire Verified Party’s account but are not credited to the intended SafeWire customer’s account;

h) good faith attempts have been made by Claimant and the SafeWire Verified Party to retrieve or locate the missing funds for at least two (2) full business days, but such attempts have been unsuccessful, indicating potential wire fraud; and

i) the Claimant has not used traditional tools other than SafeWire to communicate sensitive banking or wire instructions information to the SafeWire Verified Party, including email or phone.

 

2. Sender of funds in a Refinancing

a) the Claimant is a SafeWire customer sending funds via wire transfer;

b) the Claimant has made a good faith attempt to do one of the following: (1) inform the borrower of the SafeWire process through the real estate agent; (2) inform the borrower of the SafeWire process by calling the borrower or (3) send a SafeWire invitation to the borrower, in each case within 1 day of receiving the Refinancing contract;

c) the Claimant used SafeWire to authenticate the identity and banking information of the borrower in a Refinancing;

d) the borrower has successfully completed a SafeWire verification with no security concerns indicated on the verification panel, becoming a SafeWire Verified Party;

e) the SafeWire Verified Party has successfully verified (without security concerns) a bank account where they want to receive funds;

f)  the Claimant accurately submits the SafeWire Verified Party’s banking information to Claimant’s bank in an attempt to transmit funds to such SafeWire Verified Party via wire transfer;

g) funds are debited from the Claimant’s account but not credited to the intended SafeWire Verified Party’s account;

h) good faith attempts have been made by Claimant and the SafeWire Verified Party to retrieve or locate the missing funds for at least two (2) full business days, but such attempts have been unsuccessful, indicating potential wire fraud; and

i) the Claimant has not used traditional tools other than SafeWire to communicate sensitive banking or wire instructions information to the SafeWire Verified Party, including email or phone.


3. Recipient of funds in a Purchase Transaction

a) the Claimant is a SafeWire customer receiving funds via wire transfer;

b) the Claimant has made good faith attempt to do one of the following: (1) inform the recipient of funds of the SafeWire process through the real estate agent; (2)  inform the recipient of funds of the SafeWire process by an email or a phone call; or (3) send a SafeWire invitation to the recipient of funds, in each case within 1 day of receiving the Purchase Transaction contract;

c) the Claimant used SafeWire to authenticate the identity of each of the buyer and seller in a Purchase Transaction;

d) Each of the buyer and seller has successfully completed a SafeWire verification with no security concerns indicated on the verification panel, with each becoming a SafeWire Verified Party;

e) the SafeWire Verified Parties have either viewed or downloaded the Claimant’s appropriate bank account information through the SafeWire verification process;

f) the SafeWire Verified Parties accurately submit the SafeWire customer’s banking information to the borrower’s bank in an attempt to transmit funds via wire transfer to such SafeWire customer;

g) funds are debited from the borrower’s account but not credited to the intended SafeWire customer’s account;

h) good faith attempts have been made by Claimant and the SafeWire Verified Parties to retrieve or locate the missing funds for two (2) full business days, but such attempts have been unsuccessful, indicating potential wire fraud; and

i) the Claimant has not used traditional tools other than SafeWire to transfer sensitive banking or wire instructions information to a SafeWire Verified Party, including email or phone.

 

4. Sender of funds in a Purchase Transaction

a) the Claimant is a SafeWire customer sending funds via wire transfer;

b) the Claimant has made good faith attempt to one of the following: (1) inform the sender of funds of the SafeWire process through the real estate agent; (2) inform the sender of funds of the SafeWire process by an email or phone call; or (2) send a SafeWire invitation to the sender of funds, in each case within 1 day of receiving the Purchase Transaction contract;

c) the Claimant used SafeWire to authenticate the identity of each of the buyer and seller, and to authenticate the banking information of the seller, in a Purchase Transaction;

d) Each of the buyer and seller has successfully completed a SafeWire verification with no security concerns indicated on the verification panel, with each becoming a SafeWire Verified Party;

e) the seller has successfully verified (without security concerns) a bank account where they want to receive funds;

f) the Claimant accurately submits a SafeWire Verified Party’s banking information to Claimant’s bank in an attempt to transmit funds via wire transfer to such SafeWire Verified Party;

g) funds are debited from the Claimant’s account but not credited to the intended SafeWire Verified Party’s account;

h) good faith attempts have been made by Claimant and the SafeWire Verified Parties to retrieve or locate the missing funds for two (2) full business days, but such attempts have been unsuccessful, indicating potential wire fraud; and

i) the Claimant has not used traditional tools other than SafeWire to transfer sensitive banking or wire instructions information to a SafeWire Verified Party, including email or phone.

 

In each of the foregoing instances, a transaction will be excluded from being a Qualified Transaction and will not covered by the FraudFree Guarantee if the title company associated with the transaction engages in fraudulent, criminal, willfully misleading, or grossly negligent conduct that facilitates the wire fraud.





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