Common use of CANCELED CHECKS Clause in Contracts

CANCELED CHECKS. All checks presented for payment become Bank’s property upon payment. Bank may, at its option, not include Business Customer’s canceled checks in the periodic statement Bank provides to Business Customer. This practice is called truncation. Bank may instead maintain a computer-generated image of the checks. Business Customer’s statement will include the check number, date the check was paid, and amount of the check, and, for statements with check imaging, a computer-generated image of the front of each check. If Business Customer is a Firstrust Online Banking customer, Business Customer may view images of the front and back of the checks using Bank’s website. Firstrust Online Banking is Bank’s Online Banking Service and is further described in Section IV of this Agreement. These images will be posted at the website for a limited time after the checks are listed on the statement. After Bank makes the computer- generated image of the check, the original will be destroyed. Bank will store the computer-generated images of the checks as long as is legally required. At Business Customer’s request, Bank will use its best efforts to provide Business Customer with a copy or computer-generated image of the checks. A fee may be imposed for each copy in accordance with the Commercial Banking Fee Schedule(s). Business Customer agrees that by retaining the computer-generated image of the check and providing Business Customer with an image of the check with the statement, and/or at Bank’s website, Bank has made the check available to Business Customer in a reasonable manner. Business Customer is still responsible for examining its statements and notifying Bank of any errors or unauthorized transactions within the time periods described under the section “Notification of Errors, Unauthorized Signatures, Forgeries, Alterations,” even if Bank images the checks. Like a canceled check, a copy or computer-generated image of a check is legally acceptable as proof of payment and for other record keeping purposes. Computer-generated images are acceptable to the IRS. If for any reason Bank cannot provide a copy of a check, or satisfy Business Customer’s request by other means, Bank may be liable only for the face amount of the check or Business Customer’s actual damage, whichever is less. Bank may also use check imaging for drafts, credit or debit advices or other paper items presented on Business Customer’s Accounts. All image records of the transactions in Business Customer’s Account(s) are the property of the Bank.

CANCELED CHECKS. All checks presented for payment become Bank’s property upon payment. Bank may, at its option, not include Business Customer’s canceled checks in the periodic statement Bank provides to Business Customer. This practice is called truncation. Bank may instead maintain a computer-computer- generated image of the checks. Business Customer’s statement will include the check number, date the check was paid, and amount of the check, and, for statements with check imaging, a computer-generated image of the front of each check. If Business Customer is a Firstrust Online Banking customer, Business Customer may view images of the front and back of the checks using Bank’s website. Firstrust Online Banking is Bank’s Online Banking Service and is further described in Section IV of this Agreement. These images will be posted at the website for a limited time after the checks are listed on the statement. After Bank makes the computer- computer-generated image of the check, the original will be destroyed. Bank will store the computer-generated images of the checks as long as is legally required. At Business Customer’s request, Bank will use its best efforts to provide Business Customer with a copy or computer-generated image of the checks. A fee may be imposed for each copy in accordance with the Commercial Banking Fee Schedule(s). Business Customer agrees that by retaining the computer-generated image of the check and providing Business Customer with an image of the check with the statement, and/or at Bank’s website, Bank has made the check available to Business Customer in a reasonable manner. Business Customer is still responsible for examining its statements and notifying Bank of any errors or unauthorized transactions within the time periods described under the section “Notification of Errors, Unauthorized Signatures, Forgeries, Alterations,” even if Bank images the checks. Like a canceled check, a copy or computer-computer- generated image of a check is legally acceptable as proof of payment and for other record keeping purposes. Computer-generated images are acceptable to the IRS. If for any reason Bank cannot provide a copy of a check, or satisfy Business Customer’s request by other means, Bank may be liable only for the face amount of the check or Business Customer’s actual damage, whichever is less. Bank may also use check imaging for drafts, credit or debit advices or other paper items presented on Business Customer’s Accounts. All image records of the transactions in Business Customer’s Account(s) are the property of the Bank.