Common use of Substitute Checks Clause in Contracts

Substitute Checks. For each original check that you deposit, you hereby authorize us (and any collecting institution, returning institution, Reserve Bank or processor which subsequently receives the original check) to create an electronic image (“check image”) of the original check, and to process that check image for collection, payment and return. You further authorize the destruction of the original check that has been imaged. We may in our sole discretion determine the manner in which to collect or return a check image. We may: (i) present or transfer the check image to the paying bank, a Federal Reserve Bank, a check clearing house, image exchange network, or other collecting bank or returning bank; or (ii) create a substitute check and collect such substitute check (governed by the Check Collection for the 21st Century Act referred to here as the “Check 21 Act”) instead of the check image. A check image or a substitute check may be collected through one or more check clearinghouses, one or more Federal Reserve Banks, or pursuant to an exchange agreement with another depository institution. In such cases, you agree that the check image or substitute check is subject to the rules of that clearinghouse, Federal Reserve Bank, or exchange agreement. You agree that we may debit your Account for any of the following items: (i) a check image of an original check drawn on your Account and presented for payment or collection, or (ii) a returned check image of an original check that was deposited by you. In these situations, we may debit your Account without receipt of, or review of, the original check associated with the check image. In our sole discretion, we may return to a presenting bank, returning bank or paying bank or post to your Account, a paper copy or paper representation of an original check (including without limitation an image replacement document or IRD, or a photocopy) drawn on or returned to your Account that does not otherwise meet the technical or legal requirements for a substitute check. You agree that a check image that is received or created by the Credit Union in the check deposit, collection or return process shall be considered a “check” and/or an “item” for all purposes under this Agreement and applicable law. In addition, a check that you deposit with us, or that you draw on your Account, may be truncated in the check collection process and replaced with a substitute check. You authorize us to pay, process or return a substitute check in the same manner as “check” or “item” under this Agreement. Substitute checks are governed under the Check 21 Act and the terms of this Agreement, to the extent not modified by the Check 21 Act. You agree to indemnify and hold harmless us, our employees and agents from any loss, claim, damage or expense that you or any other person may incur directly or indirectly as a result of any action taken by us to process a check image or substitute check instead of the original check, including the destruction of the original check, as described above, to the extent permitted by applicable law..

Substitute Checks. For each original You agree not to deposit substitute checks, as described below, or checks bearing a substitute check that legal equivalence statement (“This is a legal copy of your check. You can use it the same way you deposit, you hereby authorize us (and any collecting institution, returning institution, Reserve Bank or processor which subsequently receives would use the original check.”) to create an electronic image your account without our prior written consent. Unless we agree otherwise in writing, our acceptance of such checks shall not obligate us to accept such items at a later time, and we may cease doing so without prior notice. If we approve the deposit of substitute checks, you agree to indemnify, defend and hold us harmless from all losses, costs, claims, actions, proceedings and attorney’s fees that we incur as a result of such checks, including without limitation, any indemnity or warranty claim that is made against us because: (“a) the check image”fails to meet the requirements for legal equivalence, (b) of a claimant makes a duplicate payment based on the original check, the substitute check, or a paper or electronic copy of either; or (c) a loss is incurred due to the receipt of the substitute check rather than the original check. Upon our request, you agree to provide us promptly with the original check or a copy that accurately reflects all of the information on the front and to process that check image for collection, payment and return. You further authorize the destruction back of the original check when it was truncated. You agree not to issue checks with features or marks that has been imagedobscure, alter or impair information on the front or back of a check or that otherwise prevents us or another bank from capturing such information during automated check processing. We may in our sole discretion determine the manner in which convert original checks to collect or return a check imagesubstitute checks. We may: are required to obtain a taxpayer identification number (i“TIN”) present for each account you open or transfer the check image maintain with us. The TIN for a business is usually an employer identification number (EIN). The TIN for a sole proprietorship may be either a social security number (SSN) or an EIN. We must obtain this number even if you are not required to the paying bankfile tax returns. This number is included on reports we must file with state and federal tax authorities about interest we pay you. We may refuse to open, and we may close, any account for which you do not provide a Federal Reserve Bankcertified TIN, even if you are exempt from backup withholding and information reporting. U.S. persons, including resident aliens, may be required to complete a check clearing house, image exchange network, Form W-9 to certify their TIN and backup withholding status. To establish that you are not a U.S. citizen or other collecting bank U.S. person (including a resident alien or returning bank; non-resident alien individual), we may require you to (among other things) complete a Form W-8. We may report interest in cases where it is not mandated for us to do so. We are not responsible for your action or (ii) create inaction in selecting or completing a substitute check form, and collect such substitute check (governed by the Check Collection for the 21st Century Act referred to here as the “Check 21 Act”) instead of the check image. A check image or a substitute check no information in these matters that may be collected through one or more check clearinghouses, one or more Federal Reserve Banks, or pursuant supplied by us to an exchange agreement with another depository institution. In such cases, you agree that the check image or substitute check is subject to the rules of that clearinghouse, Federal Reserve Bank, or exchange agreement. You agree that we may debit your Account for any of the following items: (i) a check image of an original check drawn on your Account and presented for payment or collection, or (ii) a returned check image of an original check that was deposited should be relied upon by you. In these situationsall tax matters, we may debit you should consult your Account without receipt of, or review of, the original check associated with the check image. In our sole discretion, we may return to a presenting bank, returning bank or paying bank or post to your Account, a paper copy or paper representation of an original check (including without limitation an image replacement document or IRD, or a photocopy) drawn on or returned to your Account that does not otherwise meet the technical or legal requirements for a substitute check. You agree that a check image that is received or created by the Credit Union in the check deposit, collection or return process shall be considered a “check” and/or an “item” for all purposes under this Agreement and applicable law. In addition, a check that you deposit with us, or that you draw on your Account, may be truncated in the check collection process and replaced with a substitute check. You authorize us to pay, process or return a substitute check in the same manner as “check” or “item” under this Agreement. Substitute checks are governed under the Check 21 Act and the terms of this Agreement, to the extent not modified by the Check 21 Actown tax advisor. You agree to indemnify notify us and hold harmless submit a new Form W-9 or W-8, as applicable, within thirty (30) days if any certification made on the form becomes incorrect. If you fail to provide your TIN and certify that it is correct, or if you fail to certify that you are not subject to backup withholding or if the IRS notifies us that you have furnished an incorrect taxpayer identification number, then federal tax rules may require us to re-solicit your TIN and/or withhold a percentage of interest paid to you. We forward amounts withheld to the IRS. If there are any fines, penalties, or charges assessed upon us due to any incorrect name/TIN mismatch or error not caused by us, you agree to reimburse us for the fine, penalty, or charge, and we may charge your account for the same. When an account earns interest, we may report the interest paid and the amount withheld to the IRS (and to the applicable state Tax Board). You will receive a copy of the information reported to the tax authorities. This limit does not apply to withdrawals made in person, at an ATM, by mail, messenger, or telephone (via check mailed to you), or to transfers made to repay a loan with us. Nor is there any limit on the number of deposits that can be made to your account each month (e.g., in person or by preauthorized or automatic transfer). We may refuse or limit telephone and mail withdrawals, at our employees and agents from any lossdiscretion. This account may not be negotiated, claim, damage transferred or expense that you assigned without our prior written consent. We are not required to accept or recognize an attempted assignment of your account or any other person may incur directly or indirectly as a result of any action taken by us to process a check image or substitute check instead of the original checkinterest in it, including the destruction a notice of the original check, as described above, to the extent permitted by applicable law..security interest.

Substitute Checks. For each To make check processing faster, federal law permits financial institutions to replace original check that you deposit, you hereby authorize us (checks with "substitute checks." These substitute checks are similar in size to the original checks with a slightly reduced image of the front and any collecting institution, returning institution, Reserve Bank or processor which subsequently receives back of the original check. The front of a substitute check states: "This is a legal copy of your check. You can use it the same way you would use the original check." You may use a substitute check as proof of payment just like the original check. Some or all of the checks that you receive back from us may be substitute checks. An electronic check can be used to create a substitute check since the electronic image and electronic information was derived from its paper form. REMOTE DEPOSIT CAPTURE. Remote deposit capture ("RDC") allows you to make deposits to your account from remote locations by electronically transmitting digital images of your original paper checks, which are drawn on or payable through United States financial institutions in United States dollars to us. We may then use the digital image to create an electronic image (“check image”) or substitute check for collection. If you use our RDC services, if applicable, we may require you to endorse the back of the original paper check to indicate that it has been remotely deposited. For example, "for mobile deposit only" or "for mobile deposit at Sunflower Bank, N.A. only." REMOTELY CREATED CHECKS. A remotely created check, as defined in Regulation CC, means a check that is not created by the paying bank and that does not bear a signature applied, or purported to be applied, by the person on whose account the check is drawn. By having a deposit account with us, you certify that all remotely created checks deposited to your account(s) will be expressly and verifiably authorized by the payer. And we reserve the rights to refuse for deposit any such remotely created check if we have any reason to believe that the check is fraudulent in any manner and to process that obtain from you the payer's express, verifiable authorization for any such check image DEPOSITS. Deposits may be made in person, by mail, or in another form and manner as agreed by us in our sole discretion. We are not responsible for collection, payment transactions mailed until we actually receive and return. You further authorize the destruction of the original check that has been imagedrecord them. We may in our sole discretion determine the manner in which refuse to collect or return accept particular instruments as a check image. We may: (i) present or transfer the check image to the paying bank, a Federal Reserve Bank, a check clearing house, image exchange network, or other collecting bank or returning bank; or (ii) create a substitute check and collect such substitute check (governed by the Check Collection for the 21st Century Act referred to here as the “Check 21 Act”) instead of the check image. A check image or a substitute check may be collected through one or more check clearinghouses, one or more Federal Reserve Banks, or pursuant to an exchange agreement with another depository institution. In such cases, you agree that the check image or substitute check is subject to the rules of that clearinghouse, Federal Reserve Bank, or exchange agreement. You agree that we may debit your Account for any of the following items: (i) a check image of an original check drawn on your Account and presented for payment or collection, or (ii) a returned check image of an original check that was deposited by you. In these situations, we may debit your Account without receipt of, or review of, the original check associated with the check image. In our sole discretion, we may return to a presenting bank, returning bank or paying bank or post deposit to your Account, a paper copy or paper representation of an original check (including without limitation an image replacement document or IRD, or a photocopy) drawn on or returned account. Cash deposits are credited to your Account that does not otherwise meet the technical or legal requirements for a substitute check. You agree that a check image that is received or created by the Credit Union in the check deposit, collection or return process shall be considered a “check” and/or an “item” for all purposes under this Agreement and applicable law. In addition, a check that you deposit with us, or that you draw on your Account, may be truncated in the check collection process and replaced with a substitute check. You authorize us account according to pay, process or return a substitute check in the same manner as “check” or “item” under this Agreement. Substitute checks Other items you deposit are governed under handled by us according to our usual collection practices. If an item you deposit is returned unpaid, we will debit your account for the Check 21 Act item and adjust any interest earned. You are liable to us for the terms amount of this Agreement, any check you deposit to your account that is returned unpaid and all costs and expenses related to the extent not modified by collection of all or part of such amount from you. Funds deposited to your account, excluding any Time Deposit accounts, are available in accordance with the Check 21 Act. You agree to indemnify and hold harmless us, our employees and agents from any loss, claim, damage or expense that you or any other person may incur directly or indirectly as a result of any action taken by us to process a check image or substitute check instead of the original check, including the destruction of the original check, as described above, to the extent permitted by applicable law..Disclosures.

Substitute Checks. For each original You agree not to deposit substitute checks, as described below, or checks bearing a substitute check that legal equivalence statement (“This is a legal copy of your check. You can use it the same way you deposit, you hereby authorize us (and any collecting institution, returning institution, Reserve Bank or processor which subsequently receives would use the original check.”) to create an electronic image your account without our prior written consent. Unless we agree otherwise in writing, our acceptance of such checks shall not obligate us to accept such items at a later time, and we may cease doing so without prior notice. If we approve the deposit of substitute checks, you agree to indemnify, defend and hold us harmless from all losses, costs, claims, actions, proceedings and attorney’s fees that we incur as a result of such checks, including without limitation, any indemnity or warranty claim that is made against us because: (“a) the check image”fails to meet the requirements for legal equivalence, (b) of a claimant makes a duplicate payment based on the original check, the substitute check, or a paper or electronic copy of either; or (c) a loss is incurred due to the receipt of the substitute check rather than the original check. Upon our request, you agree to provide us promptly with the original check or a copy that accurately reflects all of the information on the front and to process that check image for collection, payment and return. You further authorize the destruction back of the original check when it was truncated. You agree not to issue checks with features or marks that has been imagedobscure, alter or impair information on the front or back of a check or that otherwise prevents us or another bank from capturing such information during automated check processing. We may in our sole discretion determine the manner in which convert original checks to collect or return a check imagesubstitute checks. We may: are required to obtain a taxpayer identification number (i“TIN”) present for each account you open or transfer the check image maintain with us. The TIN for a business is usually an employer identification number (EIN). The TIN for a sole proprietorship may be either a social security number (SSN) or an EIN. We must obtain this number even if you are not required to the paying bankfile tax returns. This number is included on reports we must file with state and federal tax authorities about interest we pay you. We may refuse to open, and we may close, any account for which you do not provide a Federal Reserve Bankcertified TIN, even if you are exempt from backup withholding and information reporting. U.S. persons, including resident aliens, may be required to complete a check clearing house, image exchange network, Form W-9 to certify their TIN and backup withholding status. To establish that you are not a U.S. citizen or other collecting bank U.S. person (including a resident alien or returning bank; non-resident alien individual), we may require you to (among other things) complete a Form W-8. We may report interest in cases where it is not mandated for us to do so. We are not responsible for your action or (ii) create inaction in selecting or completing a substitute check form, and collect such substitute check (governed by the Check Collection for the 21st Century Act referred to here as the “Check 21 Act”) instead of the check image. A check image or a substitute check no information in these matters that may be collected through one or more check clearinghouses, one or more Federal Reserve Banks, or pursuant supplied by us to an exchange agreement with another depository institution. In such cases, you agree that the check image or substitute check is subject to the rules of that clearinghouse, Federal Reserve Bank, or exchange agreement. You agree that we may debit your Account for any of the following items: (i) a check image of an original check drawn on your Account and presented for payment or collection, or (ii) a returned check image of an original check that was deposited should be relied upon by you. In these situationsall tax matters, we may debit you should consult your Account without receipt of, or review of, the original check associated with the check image. In our sole discretion, we may return to a presenting bank, returning bank or paying bank or post to your Account, a paper copy or paper representation of an original check (including without limitation an image replacement document or IRD, or a photocopy) drawn on or returned to your Account that does not otherwise meet the technical or legal requirements for a substitute check. You agree that a check image that is received or created by the Credit Union in the check deposit, collection or return process shall be considered a “check” and/or an “item” for all purposes under this Agreement and applicable law. In addition, a check that you deposit with us, or that you draw on your Account, may be truncated in the check collection process and replaced with a substitute check. You authorize us to pay, process or return a substitute check in the same manner as “check” or “item” under this Agreement. Substitute checks are governed under the Check 21 Act and the terms of this Agreement, to the extent not modified by the Check 21 Actown tax advisor. You agree to indemnify notify us and hold harmless submit a new Form W-9 or W-8, as applicable, within thirty (30) days if any certification made on the form becomes incorrect. If you fail to provide your TIN and certify that it is correct, or if you fail to certify that you are not subject to backup withholding or if the IRS notifies us that you have furnished an incorrect taxpayer identification number, then federal tax rules may require us to re-solicit your TIN and/or withhold a percentage of interest paid to you. We forward amounts withheld to the IRS. If there are any fines, penalties, or charges assessed upon us due to any incorrect name/TIN mismatch or error not caused by us, you agree to reimburse us for the fine, penalty, or charge, and we may charge your account for the same. When an account earns interest, we may report the interest paid and the amount withheld to the IRS (and to the applicable state Tax Board). You will receive a copy of the information reported to the tax authorities. subsequent statement period. This limit does not apply to withdrawals made in person, at an ATM, by mail, messenger, or telephone (via check mailed to you), or to transfers made to repay a loan with us. Nor is there any limit on the number of deposits that can be made to your account each month (e.g., in person or by preauthorized or automatic transfer). We may refuse or limit telephone and mail withdrawals, at our employees and agents from any lossdiscretion. This account may not be negotiated, claim, damage transferred or expense that you assigned without our prior written consent. We are not required to accept or recognize an attempted assignment of your account or any other person may incur directly or indirectly as a result of any action taken by us to process a check image or substitute check instead of the original checkinterest in it, including the destruction a notice of the original check, as described above, to the extent permitted by applicable law..security interest.

Substitute Checks. For each original You agree not to deposit substitute checks, as described below, or checks bearing a substitute check that legal equivalence statement (“This is a legal copy of your check. You can use it the same way you deposit, you hereby authorize us (and any collecting institution, returning institution, Reserve Bank or processor which subsequently receives would use the original check.”) to create an electronic image your account without our prior written consent. Unless we agree otherwise in writing, our acceptance of such checks shall not obligate us to accept such items at a later time, and we may cease doing so without prior notice. If we approve the deposit of substitute checks, you agree to indemnify, defend and hold us harmless from all losses, costs, claims, actions, proceedings and attorney’s fees that we incur as a result of such checks, including without limitation, any indemnity or warranty claim that is made against us because: (“a) the check image”fails to meet the requirements for legal equivalence, (b) of a claimant makes a duplicate payment based on the original check, the substitute check, or a paper or electronic copy of either; or (c) a loss is incurred due to the receipt of the substitute check rather than the original check. Upon our request, you agree to provide us promptly with the original check or a copy that accurately reflects all of the information on the front and to process that check image for collection, payment and return. You further authorize the destruction back of the original check when it was truncated. You agree not to issue checks with features or marks that has been imagedobscure, alter or impair information on the front or back of a check or that otherwise prevents us or another bank from capturing such information during automated check processing. We may in our sole discretion determine the manner in which convert original checks to collect or return a check imagesubstitute checks. We may: are required to obtain a taxpayer identification number (i“TIN”) present for each account you open or transfer the check image maintain with us. The TIN for a business is usually an employer identification number (EIN). The TIN for a sole proprietorship may be either a social security number (SSN) or an EIN. We must obtain this number even if you are not required to the paying bankfile tax returns. This number is included on reports we must file with state and federal tax authorities about interest we pay you. We may refuse to open, and we may close, any account for which you do not provide a Federal Reserve Bankcertified TIN, even if you are exempt from backup withholding and information reporting. U.S. persons, including resident aliens, may be required to complete a check clearing house, image exchange network, Form W-9 to certify their TIN and backup withholding status. To establish that you are not a U.S. citizen or other collecting bank U.S. person (including a resident alien or returning bank; non-resident alien individual), we may require you to (among other things) complete a Form W-8. We may report interest in cases where it is not mandated for us to do so. We are not responsible for your action or (ii) create inaction in selecting or completing a substitute check form, and collect such substitute check (governed by the Check Collection for the 21st Century Act referred to here as the “Check 21 Act”) instead of the check image. A check image or a substitute check no information in these matters that may be collected through one or more check clearinghouses, one or more Federal Reserve Banks, or pursuant supplied by us to an exchange agreement with another depository institution. In such cases, you agree that the check image or substitute check is subject to the rules of that clearinghouse, Federal Reserve Bank, or exchange agreement. You agree that we may debit your Account for any of the following items: (i) a check image of an original check drawn on your Account and presented for payment or collection, or (ii) a returned check image of an original check that was deposited should be relied upon by you. In these situationsall tax matters, we may debit you should consult your Account without receipt of, or review of, the original check associated with the check image. In our sole discretion, we may return to a presenting bank, returning bank or paying bank or post to your Account, a paper copy or paper representation of an original check (including without limitation an image replacement document or IRD, or a photocopy) drawn on or returned to your Account that does not otherwise meet the technical or legal requirements for a substitute check. You agree that a check image that is received or created by the Credit Union in the check deposit, collection or return process shall be considered a “check” and/or an “item” for all purposes under this Agreement and applicable law. In addition, a check that you deposit with us, or that you draw on your Account, may be truncated in the check collection process and replaced with a substitute check. You authorize us to pay, process or return a substitute check in the same manner as “check” or “item” under this Agreement. Substitute checks are governed under the Check 21 Act and the terms of this Agreement, to the extent not modified by the Check 21 Actown tax advisor. You agree to indemnify notify us and hold harmless us, our employees and agents from any loss, claim, damage submit a new Form W-9 or expense that you or any other person may incur directly or indirectly as a result of any action taken by us to process a check image or substitute check instead of the original check, including the destruction of the original checkW-8, as described aboveapplicable, to the extent permitted by applicable law..within thirty