Common use of Customer Acting as Third-Party Sender Clause in Contracts

Customer Acting as Third-Party Sender. Due Diligence; Bank Approval of Originators. In any case in which Customer proposes to act as a Third-Party Sender with respect to the initiation of Entries on behalf of other Originators, Customer shall perform due diligence on each proposed Originator and provide a summary of the results of the due diligence to Bank upon such form, and in such format, as Bank may from time to time require. Customer’s due diligence shall include, but not be limited to, the following: a. Performing an initial check on the name of the proposed Originator against the list of prohibited persons and organizations published by OFAC prior to entering into any agreement to provide ACH services to such Originator and repeating such check monthly, or as often as the OFAC listing is updated, to ensure no match is found. b. Implementing the requirements of Bank’s Customer Identification Program (“CIP”) for ACH Originators as may be adopted and provided to Customer from time to time. c. Obtaining general information on the proposed Originator including name, address, taxpayer identification or social security numbers, copies of corporate organization documents, identity of owners, type of business, purpose for the transactions and similar general information. This information must be compiled and provided to Bank as required by Bank. d. Obtaining sample copies of ACH authorizations, customer contracts and related materials to be used by the Originator. Bank will review the due diligence information provided by Customer and approve, deny or request additional information regarding the proposed Originator in a timely fashion. Customer will not transmit Entries from the proposed Originator until receipt of Bank’s written approval. Contract Requirements. Customer shall enter into an agreement with each Originator pursuant to which the Originator is bound by the Rules and assumes the responsibilities of an Originator under the Rules. Such agreement must contain an acknowledgment that Entries that violate the laws of the United States may not be initiated. Customer shall provide Bank with the form of agreement to be used by Customer with respect to this requirement, and Customer shall provide Bank with any amendments to such form agreement.

Customer Acting as Third-Party Sender. Due Diligence; Bank Approval of Originators. In any case in which Customer proposes to act as a Third-Third- Party Sender with respect to the initiation of Entries on behalf of other Originators, Customer shall perform due diligence on each proposed Originator and provide a summary of the results of the due diligence to Bank upon such form, and in such format, as Bank may from time to time require. Customer’s due diligence responsibilities shall include, but not be limited to, the following: a. Performing an initial check on the name of the proposed Originator against the list of prohibited persons and organizations published by OFAC List prior to entering into any agreement to provide ACH services to such Originator and repeating such check monthly, or as often as the OFAC listing List is updated, to ensure no match is found.; b. Implementing and administering the requirements of Bank’s Customer Identification Program (“CIP”) for ACH Originators as may be adopted and provided to Customer from time to time.; c. Obtaining general information on the proposed Originator including name, address, taxpayer identification or social security numbers, copies of corporate organization documents, identity of owners, type of business, purpose for the transactions Transactions and similar general information. This information must be compiled and provided to Bank as required by Bank.; d. Obtaining sample copies of ACH authorizations, customer contracts and related materials to be used by the Originator; e. Setting and enforcing Transaction exposure limits; f. Auditing and testing Originator authorization processes and quality; g. Monitoring forward and return Transaction volumes, dollars and rates; and h. SEC Code specific risk management requirements and warranties as required by the Operating Rules. Bank will review the due diligence information provided by Customer and approve, deny or request additional information regarding the proposed Originator in a timely fashion. Customer will not transmit Entries from the proposed Originator until receipt of Bank’s written approval. Contract Requirements. Customer shall enter into an agreement with each Originator pursuant to which the Originator is bound by the Rules and assumes the responsibilities of an Originator under the Rules. Such agreement must contain an acknowledgment that Entries that violate the laws of the United States may not be initiated. Customer shall provide Bank with the form of agreement to be used by Customer with respect to this requirement, and Customer shall provide Bank with any amendments to such form agreement.