Common use of Checks Deposited and Security Interest Clause in Contracts

Checks Deposited and Security Interest. Member hereby agrees that it will only scan and deposit a check(s) as that term is defined in Federal Reserve Board Regulation CC (“Reg CC”). Member agrees that the image of the check that is transmitted to AMHFCU (each such check and other item a “Check” and, if more than one, “Checks”) shall be deemed an “item” (“Item”) within the meaning of Article 4 of the Uniform Commercial Code (1990 Official Text). Member further agrees that it will not remotely deposit any check(s) or other item(s) that: (a) are payable to any person or entity other than Member, (b) are drawn, or otherwise issued, by Member or any affiliate of Member on any account of Member or of such affiliate, (c) are prohibited by AMHFCU’s then current procedures pertaining to the Service (the “Procedures”) or are in violation of any law, rule or regulation, (d) Member knows or suspects, or should know or suspect, is fraudulent or otherwise not authorized by the owner of the account on which the Check is drawn, (e) have not been previously endorsed by AMHFCU and are either “substitute checks” (as defined in Reg CC or other applicable federal law or regulation) or “image replacement documents” that purport to be substitute checks, without AMHFCU’s prior written consent, (f) are drawn on financial institutions that are located outside of the United States or Territories of the United States, (g) is a Remotely Created Check, as that term is defined in Reg CC, or (h) which are not acceptable to AMHFCU for deposit into a deposit account as provided in the Deposit Agreement, which is incorporated herein by reference and made a part hereof (Checks described in clauses (a) through (h) each a “Prohibited Check” and, collectively, “Prohibited Checks”). If Member deposits a Prohibited Check, Member agrees to indemnify and reimburse AMHFCU for, and hold AMHFCU harmless from and against, any and all losses, costs and expenses (including reasonable attorneys fees) AMHFCU may incur associated with any warranty, indemnity or other claim related thereto. Furthermore, if, after first having obtained AMHFCU’s written consent to do so, Member provides AMHFCU with an electronic representation of a substitute check for deposit into an Account instead of an original Check, Member agrees to indemnify and reimburse AMHFCU for, and hold AMHFCU harmless from and against, any and all losses, costs and expenses (including reasonable attorneys fees) AMHFCU incurs because any such substitute check resulting from such electronic representation does not meet applicable substitute check standards and/or causes duplicate payments. Member grants AMHFCU a security interest in all Accounts or other deposits (whether general or special) of Member at AMHFCU, and in all funds in such Accounts or other deposits, to secure Member’s obligations to AMHFCU under this Agreement. This security interest will survive termination of this Agreement. AMHFCU may hold any funds on deposit with AMHFCU by Member after termination of this Agreement for up to 14 calendar days following the expiration of any return or chargeback rights regarding any Item processed by Member using the Service or, if later, until any other claims to such funds have expired.

Checks Deposited and Security Interest. Member hereby agrees that it will only scan and deposit a check(s) as that term is defined in Federal Reserve Board Regulation CC (“Reg CC”). Member Customer agrees that the image of the check that is transmitted to AMHFCU Bank (each such check and other item a “Check” and, if more than one, “Checks”) shall be deemed an “item” (“Item”) within the meaning of Article 4 of the Uniform Commercial Code (1990 Official Text). Member Customer further agrees that it will not remotely deposit any check(s) checks or other item(s) items that: : (a) are payable to any person or entity other than Member, Customer, (b) are drawn, or otherwise issued, by Member Customer or any affiliate of Member Customer on any account of Member Customer or of such affiliate, , (c) are prohibited by AMHFCUBank’s then current procedures pertaining to the Service (the “Procedures”) or are in violation of any law, rule or regulation, , (d) Member Customer knows or suspects, or should know or suspect, is fraudulent or otherwise not authorized by the legal owner of the account on which the Check is drawn, , (e) have not been previously endorsed by AMHFCU a bank and are either “substitute checks” (as defined in Reg CC or other applicable federal law or regulation) or “image replacement documents” that purport to be substitute checks, without AMHFCUBank’s prior written consent, , (f) are drawn on financial institutions that are located outside of the United States or Territories of the United States, , (g) is a Remotely Created Check, as that term is defined in Reg CC, or or (h) which are not acceptable to AMHFCU Bank for deposit into a deposit account as provided in the Deposit Account Agreement, which is incorporated herein by reference and made a part hereof (Checks described in clauses (a) through (h) each a “Prohibited Check” and, collectively, “Prohibited Checks”). If Member deposits Customer may be required to maintain a Prohibited Check, Member agrees to indemnify and reimburse AMHFCU for, and hold AMHFCU harmless from and against, any and all losses, costs and expenses reserve (including reasonable attorneys fees“Settlement Reserve”) AMHFCU may incur associated with any warranty, indemnity or other claim related thereto. Furthermore, if, after first having obtained AMHFCU’s written consent to do so, Member provides AMHFCU with an electronic representation of a substitute check for deposit into an Account instead of an original Check, Member amount to be solely determined by Bank. Customer acknowledges and agrees to indemnify and reimburse AMHFCU for, and hold AMHFCU harmless from and against, that any and all losses, costs and expenses (including reasonable attorneys fees) AMHFCU incurs because Settlement Reserve will be deposited in a Designated Account for exclusive use by Bank for purposes of offsetting any such substitute check resulting from such electronic representation does not meet applicable substitute check standards and/or causes duplicate paymentsof Customer’s obligations under this Section Four. Member Customer grants AMHFCU Bank a security interest in all Accounts or other deposits (whether general or special) of Member at AMHFCU, and in all funds in such Accounts or other deposits, any Settlement Reserve to secure Member’s obligations enable Bank to AMHFCU enforce any obligation owed by Customer under this AgreementSection Four without notice or demand to Customer. This security interest will Customer’s obligation to maintain a Settlement Reserve shall survive the termination of this Agreement. AMHFCU may hold any funds on deposit Business Check Express Service, with AMHFCU by Member after termination such obligation lasting until all of customer’s obligations under this Agreement for up to 14 calendar days following the expiration of any return or chargeback rights regarding any Item processed by Member using the Service or, if later, until any other claims to such funds Section Four have expiredbeen fully offset.

Checks Deposited and Security Interest. Member hereby agrees that it will only scan and deposit a check(s) as that term is defined in Federal Reserve Board Regulation CC (“"Reg CC”"). Member agrees that the image of the check that is transmitted to AMHFCU (each such check and other item a “"Check” " and, if more than one, “"Checks”") shall be deemed an “"item” " (“"Item”") within the meaning of Article 4 of the Uniform Commercial Code (1990 Official Text). Member further agrees that it will not remotely deposit any check(s) or other item(s) that: (a) are payable to any person or entity other than Member, (b) are drawn, or otherwise issued, by Member or any affiliate of Member on any account of Member or of such affiliate, (c) are prohibited by AMHFCU’s 's then current procedures pertaining to the Service (the “"Procedures”") or are in violation of any law, rule or regulation, (d) Member knows or suspects, or should know or suspect, is fraudulent or otherwise not authorized by the owner of the account on which the Check is drawn, (e) have not been previously endorsed by AMHFCU and are either “"substitute checks” " (as defined in Reg CC or other applicable federal law or regulation) or “"image replacement documents” " that purport to be substitute checks, without AMHFCU’s 's prior written consent, (f) are drawn on financial institutions that are located outside of the United States or Territories of the United States, (g) is a Remotely Created Check, as that term is defined in Reg CC, or (h) which are not acceptable to AMHFCU for deposit into a deposit account as provided in the Deposit Agreement, which is incorporated herein by reference and made a part hereof (Checks described in clauses (a) through (h) each a “"Prohibited Check” " and, collectively, “"Prohibited Checks”"). If Member deposits a Prohibited Check, Member agrees to indemnify and reimburse AMHFCU for, and hold AMHFCU harmless from and against, any and all losses, costs and expenses (including reasonable attorneys fees) AMHFCU may incur associated with any warranty, indemnity or other claim related thereto. Furthermore, if, after first having obtained AMHFCU’s 's written consent to do so, Member provides AMHFCU with an electronic representation of a substitute check for deposit into an Account instead of an original Check, Member agrees to indemnify and reimburse AMHFCU for, and hold AMHFCU harmless from and against, any and all losses, costs and expenses (including reasonable attorneys fees) AMHFCU incurs because any such substitute check resulting from such electronic representation does not meet applicable substitute check standards and/or causes duplicate payments. Member grants AMHFCU a security interest in all Accounts or other deposits (whether general or special) of Member at AMHFCU, and in all funds in such Accounts or other deposits, to secure Member’s 's obligations to AMHFCU under this Agreement. This security interest will survive termination of this Agreement. AMHFCU may hold any funds on deposit with AMHFCU by Member after termination of this Agreement for up to 14 calendar days following the expiration of any return or chargeback rights regarding any Item processed by Member using the Service or, if later, until any other claims to such funds have expired.

Checks Deposited and Security Interest. Member hereby agrees that it will only scan capture and deposit a check(s) as that term is defined in Federal Reserve Board Regulation CC (“Reg CC”). Member agrees that the image of the check that is transmitted to AMHFCU HFCU (each such check and other item a “Check” and, if more than one, “Checks”) shall be deemed an “item” (“Item”) within the meaning of Article 4 of the Uniform Commercial Code (1990 Official Text). Member further agrees that it will not remotely deposit any check(s) or other item(s) that: : (a) are payable to any person or entity other than Member, , (b) are drawn, or otherwise issued, by Member or any affiliate of Member on any account of Member or of such affiliate, , (c) are prohibited by AMHFCUHFCU’s then current procedures pertaining to the Service (the “Procedures”) or are in violation of any law, rule or regulation, , (d) Member knows or suspects, or should know or suspect, is fraudulent or otherwise not authorized by the owner of the account on which the Check is drawn, , (e) have not been previously endorsed by AMHFCU a HFCU and are either “substitute checks” (as defined in Reg CC or other applicable federal law or regulation) or “image replacement documents” that purport to be substitute checks, without AMHFCUHFCU’s prior written consent, , (f) are drawn on financial institutions that are located outside of the United States or Territories of the United States, , (g) is a Remotely Created Check, as that term is defined in Reg CC, or or (h) which are not acceptable to AMHFCU HFCU for deposit into a deposit account as provided in the Deposit Agreement, which is incorporated herein by reference and made a part hereof (Checks described in clauses (a) through (h) each a “Prohibited Check” and, collectively, “Prohibited Checks”). If Member deposits a Prohibited Check, Member agrees to indemnify and reimburse AMHFCU HFCU for, and hold AMHFCU HFCU harmless from and against, any and all losses, costs and expenses (including reasonable attorneys fees) AMHFCU HFCU may incur associated with any warranty, indemnity or other claim related thereto. Furthermore, if, after first having obtained AMHFCUHFCU’s written consent to do so, Member provides AMHFCU HFCU with an electronic representation of a substitute check for deposit into an Account instead of an original Check, Member agrees to indemnify and reimburse AMHFCU HFCU for, and hold AMHFCU HFCU harmless from and against, any and all losses, costs and expenses (including reasonable attorneys fees) AMHFCU HFCU incurs because any such substitute check resulting from such electronic representation does not meet applicable substitute check standards and/or causes duplicate payments. Member grants AMHFCU HFCU a security interest in all Accounts or other deposits (whether general or special) of Member Member’s at AMHFCUHFCU, and in all funds in such Accounts or other deposits, to secure Member’s obligations to AMHFCU HFCU under this Agreement. This security interest will survive termination of this Agreement. AMHFCU HFCU may hold any funds on deposit with AMHFCU HFCU by Member after termination of this Agreement for up to 14 calendar days following the expiration of any return or chargeback rights regarding any Item processed by Member using the Service or, if later, until any other claims to such funds have expired. Member may be required to maintain a reserve (“Settlement Reserve”) of an amount to be solely determined by the HFCU. Member acknowledges and agrees that any Settlement Reserve will be deposited in a HFCU account for exclusive use by the HFCU for purposes of offsetting any of Member’s obligations under this Agreement. Member grants the HFCU a security interest in any Settlement Reserve to enable the HFCU to enforce any obligation owed by Member under this Agreement without notice or demand to Member. Member’s obligation to maintain a Settlement Reserve shall survive the termination of this Agreement, with such obligation lasting until all of Member’s obligations under this Agreement have been fully offset.