Common use of Maintenance and Destruction of Original Check Clause in Contracts

Maintenance and Destruction of Original Check. Customer shall securely store all original Checks for a period of not less than ninety-one (91) days after Customer has received notice from Bank that the File containing the images of such Checks has been accepted (such period the "Retention Period"). During the Retention Period, Customer shall take appropriate security measures to ensure that: (a) only authorized personnel shall have access to original Checks, (b) the information contained on such Checks shall not be disclosed, (c) such Checks will not be duplicated or scanned more than one time, and (d) such Checks will not be deposited or negotiated in any form. Customer shall, along with the original Checks, maintain a copy of the transaction receipt generated by the Remote Deposit Services. Customer shall implement proper security procedures and internal controls to ensure the confidentiality of any information that is considered to be confidential personal information that is retained by Customer. Customer shall destroy original Checks upon the expiration of the Retention Period applicable to such Checks. Such destruction must meet minimum standards for the destruction of confidential personal information in compliance with applicable laws and regulations. Such destruction must render the Checks unreadable, unusable, and unrecoverable (cross-cut shredding or incineration). Customer will use commercially reasonable methods of destruction approved by Bank to destroy original Checks after expiration of the Retention Period. If Customer uses a third-party shredding service, any storage bins shall employ a metal lock that prevents access to the contents except when in the control of the third-party shredding service. Customer will promptly (but in all events within five (5) Business Days) provide any retained Check (or, if the Check is no longer in existence, a sufficient copy of the front and back of the Check) to Bank as requested to aid in the clearing and collection process or to resolve claims by third parties with respect to any Check. For additional requirements relative to your state, please see the Appendix. These requirements in the Appendix are IN ADDITION to the requirements of this Section. In case of conflict, the stricter destruction requirement will control. Customer shall stamp the original Check as “Electronically Deposited at Southern First Bank,” (or another method to indicate that it has been submitted via the Remote Deposit Service to Bank) before or during the process of scanning the Check in accordance with this Agreement. Each File transmitted by Customer to Bank shall contain Images of the front and the back of the Checks scanned and remotely deposited by Customer. Each Image of each Check shall be of such quality that the following information can clearly be read and understood by sight review of such Image: