Will a System Transfer be completed if my Nintendo 3DS is faulty and is exchanged?

Nintendo will not be liable for the loss of any saved data or user generated content on your Nintendo 2DS, Nintendo 3DS or Nintendo 3DS XL which occurs either because of defective materials, workmanship or manufacturing or as a result of the replacement or repair of the Nintendo 2DS, Nintendo 3DS or Nintendo 3DS XL in accordance with its warranty. Nintendo recommends backing up any saved data to an SD Card. Refer to your Nintendo 2DS, Nintendo 3DS or Nintendo 3DS XL Operations Manual for details.