Common use of Checks Deposited Clause in Contracts

Checks Deposited. Customer represents and warrants to Bank with respect to each Check: a. Customer will only scan and deposit check(s) as that term is defined in Federal Reserve Board Regulation CC (“Reg CC”), payable to Customer. Customer agrees that the image of the check that is transmitted to Bank (each such check and other item a “Check” and, if more than one, “Checks”) shall be deemed an “item” within the meaning of Article 4 of the Uniform Commercial Code (1990 Official Text); b. Any image Customer transmits will meet the standards for image quality established by the American national standards Institute ( ANSI) or other applicable standards established by Bank, the Board of Governors of the Federal Reserve System, and any other applicable regulatory agency, clearing house or association; c. Any information Customer transmits to Bank accurately represents all of the information on the front and back of any check as of the time such check was truncated, including without limitation: payment instructions placed on the check by, or as authorized by, the drawer, such as the amount of the Check, the payee, the drawer’s signature; the information identifying the drawer and the paying bank that is preprinted on the Check, including the MICR line; and any other information placed on the Check prior to the time an image of the Check is captured, such as any required identification written on the front of the Check and any endorsements applied to the back of the Check; and d. Customer shall not attempt nor permit duplicate presentment of a Check in any form, including as an Imaged Item, a paper negotiable instrument or otherwise and Customer will not deposit or otherwise negotiate the original Item(s) from which the Image(s) was created e. That no subsequent transferee, including but not limited to Bank, a collecting or returning bank, drawer, drawee, payee or endorser, (i) will be asked to pay the original Item from which the Image(s) was created or a duplication (whether paper or electronic, including ACH entries) of the Item(s), or (ii) shall sustain a loss as the result of the fact that the Image was presented for payment or returned instead of the original Check/Item. f. Customer will only transmit checks payable to Customer. If Customer is engaged or intends to engage in any business that would result in Customer being a “money service business” as defined in the Federal Bank Secrecy Act and its implementing regulations, Customer agrees to immediately notify Bank of same, and agrees that Bank at its sole discretion may refuse to provide or terminate (as applicable) this Service. g. Customer will not remotely deposit Items that: (i) are payable to any person or entity other than Customer, (ii) are drawn, or otherwise issued, by Customer or any affiliate of Customer on any account of Customer or of such affiliate, (iii) are prohibited by Bank’s Procedures or are in violation of any law, rule or regulation, (iv) Customer knows or suspects, or should know or suspect, to be fraudulent or otherwise not authorized by the legal owner of the account on which the Item is drawn, (v) have been previously endorsed by 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 Bank’s prior written consent, (vi) are drawn on financial institutions that are located outside of the United States or Territories of the United States, (vii) is a Remotely Created Check, or (h) which are not acceptable to Bank for deposit into a deposit account as provided in the Deposit Account Agreement (Checks described in clauses (i) through (vii) each a “Prohibited Check” and, collectively, “Prohibited Checks”). h. Any Third Party Agent utilized by Customer is familiar with, and shall at all times be in compliance with the terms hereof, including without limitation, image quality, prohibition of duplicate items, and proper storage and destruction of original checks.

Checks Deposited. Customer represents and warrants to Bank with respect to each Check: a. Customer will only scan and deposit check(s) as that term is defined in Federal Reserve Board Regulation CC (“Reg CC”), payable to Customer. Customer agrees that the image of the check that is transmitted to Bank (each such check and other item a “Check” and, if more than one, “Checks”) shall be deemed an “item” within the meaning of Article 4 of the Uniform Commercial Code (1990 Official Text); b. Any image Customer transmits will meet the standards for image quality established by the American national standards Institute ( (ANSI) or other applicable standards established by Bank, the Board of Governors of the Federal Reserve System, and any other applicable regulatory agency, clearing house or association; c. Any information Customer transmits to Bank accurately represents all of the information on the front and back of any check as of the time such check was truncated, including without limitation: payment instructions placed on the check by, or as authorized by, the drawer, such as the amount of the Check, the payee, the drawer’s signature; the information identifying the drawer and the paying bank that is preprinted on the Check, including the MICR line; and any other information placed on the Check prior to the time an image of the Check is captured, such as any required identification written on the front of the Check and any endorsements applied to the back of the Check; and d. Customer shall not attempt nor permit duplicate presentment of a Check in any form, including as an Imaged Item, a paper negotiable instrument or otherwise and Customer will not deposit or otherwise negotiate the original Item(s) from which the Image(s) was created e. That no subsequent transferee, including but not limited to Bank, a collecting or returning bank, drawer, drawee, payee or endorser, (i) will be asked to pay the original Item from which the Image(s) was created or a duplication (whether paper or electronic, including ACH entries) of the Item(s), or (ii) shall sustain a loss as the result of the fact that the Image was presented for payment or returned instead of the original Check/Item. f. Customer will only transmit checks payable to Customer. If Customer is engaged or intends to engage in any business that would result in Customer being a “money service business” as defined in the Federal Bank Secrecy Act and its implementing regulations, Customer agrees to immediately notify Bank of same, and agrees that Bank at its sole discretion may refuse to provide or terminate (as applicable) this Service. g. Customer will not remotely deposit Items that: (i) are payable to any person or entity other than Customer, (ii) are drawn, or otherwise issued, by Customer or any affiliate of Customer on any account of Customer or of such affiliate, (iii) are prohibited by Bank’s Procedures or are in violation of any law, rule or regulation, (iv) Customer knows or suspects, or should know or suspect, to be fraudulent or otherwise not authorized by the legal owner of the account on which the Item is drawn, (v) have been previously endorsed by 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 Bank’s prior written consent, (vi) are drawn on financial institutions that are located outside of the United States or Territories of the United States, (vii) is a Remotely Created Check, or (h) which are not acceptable to Bank for deposit into a deposit account as provided in the Deposit Account Agreement (Checks described in clauses (i) through (vii) each a “Prohibited Check” and, collectively, “Prohibited Checks”). h. Any Third Party Agent utilized by Customer is familiar with, and shall at all times be in compliance with the terms hereof, including without limitation, image quality, prohibition of duplicate items, and proper storage and destruction of original checks.