Common use of Customer’s Responsibility Clause in Contracts

Customer’s Responsibility. In connection with the Product and Remote Deposit Capture Service or Mobile Banking Deposit Service, Customer shall comply with the following: (i) For commercial depositors, Customer will be responsible for training its employees in the use of the Product and Remote Deposit Capture Service or Mobile Banking Deposit Service. (ii) Customer will create images of Checks at Customer’s location by use of a Capture Device and Software approved or provided by the Bank. Customer will enter all amounts and any other required information correctly. (iii) Customer will only submit Items for processing to the Bank that meet the definition of “Item” as provided in this Agreement and will ensure that the Items scanned meet the standards for image quality established by the American National Standard Institute (ANSI) required by Regulation CC, or other standards established or required by the Bank or applicable law. Customer will not process any Non-qualifying Items. The Bank’s processing of any Non-qualifying Items shall not constitute a waiver by the Bank or obligate it to process such Non-qualifying Items in the future. The Bank may discontinue processing of Non-qualifying Items at any time, without cause or prior notice. (iv) Unless prior approval is granted by the Bank in writing, Customer will not attempt to scan and transmit to the Bank any Item which is drawn on a deposit account of Customer at the Bank or any other financial institution, or a deposit account of any business entity of which Customer is a principal, officer or authorized signer. (v) Customer will not attempt to scan and transmit to the Bank any previously truncated and reconverted Substitute Check. Any previously truncated and reconverted Substituted Check must be physically deposited with the Bank. Notwithstanding the foregoing, the Bank may redeposit any returned Substitute Check or Image Exchange Item consistent with the terms of the deposit account agreements. (vi) Customer will (i) ensure that Items are restrictively endorsed or otherwise processed to permit only financial institutions to acquire rights of a holder in due course in the collection process of Items, (ii) handle, process, maintain and destroy Original Checks as set forth in this Agreement and in the Documentation, and (iii) ensure that no financial institution (depositary, collecting or payor), drawee, drawer or endorser receives presentment or return of, or otherwise is charged for an Item more than once in any form. (vii) Customer will use the Product and Remote Deposit Capture Service or Mobile Banking Deposit Service, including the entering, processing and transmittal of Imaged Items, in accordance with the Documentation. In addition, Customer will provide, at its own expense, an internet connection, such as via a digital subscriber line (DSL) or other connectivity having equivalent or greater bandwidth and all other computer hardware, software, including but not limited to a compatible Web browser, and other equipment and supplies required to use the Remote Deposit Capture Service, all of which must satisfy any minimum requirements set forth in the Documentation or as otherwise may be acceptable to the Bank. Customer will provide, or obtain from another party selected by Customer at Customer’s expense, support and maintenance of such internet connection and all other computer hardware, software, and equipment required to use the Remote Deposit Capture Service, including without limitation troubleshooting internet connectivity issues with Customer’s internet service provider (ISP), and the Bank will not be responsible therefore. (viii) Customer will balance the dollar amount of each deposit to the sum of Checks prior to transmitting to the Bank. (ix) Customer will: (i) maintain a daily control record of all Checks, including transaction counts and dollar amounts; and (ii) balance transactions transmitted from the previous business day and immediately notify the Bank of any error or discrepancy discovered. Timeframes in which Customer must notify the Bank of any errors or discrepancies related to transactions, including without limitation Items deposited via the Remote Deposit Capture Service or Mobile Banking Deposit Service, are provided in the deposit account agreements governing the applicable account. If Customer fails to notify the Bank of any errors or discrepancies within such timeframes, then the underlying transaction(s) will be deemed correct and Customer will be precluded from asserting any error or discrepancy against the Bank. (x) Unless the Bank specifically agrees otherwise in writing, Customer will not use the Remote Deposit Capture Service or Mobile Banking Deposit Service to deposit any Check or Checks that exceed the transaction limitations or file limitations or both (collectively the “Transaction Limits”) that may be established by the Bank. The Transaction Limits may be changed in the Bank’s sole discretion from time to time. A change in the Transaction Limits shall be effective upon the Bank providing notice of the change to Customer. (xi) Customer shall be responsible for verifying the Bank’s receipt of Customer’s transmission(s) by verifying that deposits have been posted to the appropriate accounts, in addition to cooperating in any investigation and resolving any unsuccessful or lost transmissions with the Bank. (xii) The Bank may from time to time send a notice to Customer requesting the installation or implementation of any changes (including without limitation a hardware or software upgrade) to the Product or Remote Deposit Capture Service (or both) in order to ensure compliance with regulatory changes or developments, to protect the integrity and security of the Product and Remote Deposit Capture Service, or for any other reason determined by the Bank (a “Change/Upgrade Notice”). Customer shall be responsible for installing or implementing the changes described in the Change/Upgrade Notice within 5 days from the date the Bank sent the notice. Customer will also ensure that the equipment for the Remote Deposit Capture Service is clean and operating properly, and inspect and verify the quality of images and ensure that the digitized images of Items are legible for all posting and clearing purposes. (xiii) Customer shall exercise due care in preserving the confidentiality of any user identification, password, test key, or other code or authentication method provided by the Bank or otherwise required for use of the Remote Deposit Capture Service and shall further prevent the use of the Remote Deposit Capture Service by unauthorized persons. Customer assumes full responsibility for the consequences of any missing or unauthorized use of or access to the Remote Deposit Capture Service or disclosure of any confidential information or instructions by Customer, its employees and agents (as applicable). (xiv) System applies a virtual endorsement containing deposit account information. Prior to scanning and submitting Original Check customer will use a restrictive endorsement stamp or otherwise place restrictive endorsement language on back of check below the space reserved for virtual endorsement. Language should include the following at minimum: “For Remote Deposit Only to Mission Valley Bank.” If not directed otherwise by the Bank, Customers will store Original Checks in a safe and secure environment for a minimum of 14 days and a maximum of 30 days after such Item has been digitized and processed. Customer shall take appropriate security measures to ensure that: (a) only authorized personnel shall have access to Original Checks, (b) that the information contained on such Original Checks or on any corresponding Imaged Items are not disclosed to third parties; (c) such Checks will not be duplicated or scanned more than one time; and (d) such Checks will not be re- deposited or renegotiated in any form. Customer will promptly (but in any event within 5 business days) provide any retained Original Check (or, if the Original Check is no longer in existence, a sufficient copy of the front and back of the Original Check) to the Bank as requested to aid in the clearing and collection process to resolve claims by third parties with respect to any Item or as the Bank otherwise deems necessary. Customer will use a commercially reasonable method which is consistent with any requirements of Regulation CC and the Bank to securely and permanently destroy Original Checks after Customer’s retention period has expired. (xv) Customer understands and agrees that an Item that is not paid by a Payor Financial Institution, or is otherwise returned for any reason, will be returned to Customer and the account charged for the amount of the Item plus any associated fees, which may be changed from time to time in the Bank’s discretion. The Bank’s right to charge the account will apply without regard to whether the Item is timely returned to the Bank or whether there is any other claim or defense that the Item has been improperly returned to the Bank. (xvi) If the account is, or at any time becomes, an account that is jointly owned by two or more parties (a “joint account”), Customer warrants that all joint account owners of the account agree to the terms and conditions of this Agreement and that this Agreement binds all owners of the account. Each joint account owner further agrees that notice to one joint account owner is notice to all joint account owners. All joint account owners are jointly and severally liable to the Bank for any amounts owed to the Bank under this Agreement, including without limitation any fees for the Product and Remote Deposit Capture Service, any and all overdrafts to the account, and any amounts charged to the account for deposited Items that return as unpaid provided, however, that no fees for the Product or Remote Deposit Capture Service will be charged to a personal (non-business) account of an individual consumer.

Customer’s Responsibility. In connection with the Product and Remote Deposit Capture On-Site Teller Service or Mobile Banking Deposit Service, Customer shall comply with the following: (i) For commercial depositors, Customer will be responsible for training its employees in the use of the Product and Remote Deposit Capture On-Site Teller Service or Mobile Banking Deposit Service. (ii) Customer will create images of Checks at Customer’s location by use of a Capture Device and Software approved or provided by the Bank. Customer will enter all amounts and any other required information correctly. (iii) Customer will only submit Items for processing to the Bank that meet the definition of “Item” as provided in this Agreement and will ensure that the Items scanned meet the standards for image quality established by the American National Standard Institute (ANSI) required by Regulation CC, or other standards established or required by the Bank or applicable law. Customer will not process any Non-qualifying Items. The Bank’s processing of any Non-qualifying Items shall not constitute a waiver by the Bank or obligate it to process such Non-qualifying Items in the future. The Bank may discontinue processing of Non-qualifying Items at any time, without cause or prior notice. (iv) Unless prior approval is granted by the Bank in writing, Customer will not attempt to scan and transmit to the Bank any Item which is drawn on a deposit account of Customer at the Bank or any other financial institution, or a deposit account of any business entity of which Customer is a principal, officer or authorized signer. (v) Customer will not attempt to scan and transmit to the Bank any previously truncated and reconverted Substitute Check. Any previously truncated and reconverted Substituted Check must be physically deposited with the Bank. Notwithstanding the foregoing, the Bank may redeposit any returned Substitute Check or Image Exchange Item consistent with the terms of the deposit account agreements. (vi) Customer will (i) ensure that Items are restrictively endorsed or otherwise processed to permit only financial institutions to acquire rights of a holder in due course in the collection process of Items, (ii) handle, process, maintain and destroy Original Checks as set forth in this Agreement and in the Documentation, and (iii) ensure that no financial institution (depositary, collecting or payor), drawee, drawer or endorser receives presentment or return of, or otherwise is charged for an Item more than once in any form. (vii) Customer will use the Product and Remote Deposit Capture On-Site Teller Service or Mobile Banking Deposit Service, including the entering, processing and transmittal of Imaged Items, in accordance with the Documentation. In addition, Customer will provide, at its own expense, an internet connection, such as via a digital subscriber line (DSL) or other connectivity having equivalent or greater bandwidth and all other computer hardware, software, including but not limited to a compatible Web browser, and other equipment and supplies required to use the Remote Deposit Capture On-Site Teller Service, all of which must satisfy any minimum requirements set forth in the Documentation or as otherwise may be acceptable to the Bank. Customer will provide, or obtain from another party selected by Customer at Customer’s expense, support and maintenance of such internet connection and all other computer hardware, software, and equipment required to use the Remote Deposit Capture On-Site Teller Service, including without limitation troubleshooting internet connectivity issues with Customer’s internet service provider (ISP), and the Bank will not be responsible therefore. (viii) Customer will balance the dollar amount of each deposit to the sum of Checks prior to transmitting to the Bank. (ix) Customer will: (i) maintain a daily control record of all Checks, including transaction counts and dollar amounts; and (ii) balance transactions transmitted from the previous business day and immediately notify the Bank of any error or discrepancy discovered. Timeframes in which Customer must notify the Bank of any errors or discrepancies related to transactions, including without limitation Items deposited via the Remote Deposit Capture On-Site Teller Service or Mobile Banking Deposit Service, are provided in the deposit account agreements governing the applicable account. If Customer fails to notify the Bank of any errors or discrepancies within such timeframes, then the underlying transaction(s) will be deemed correct and Customer will be precluded from asserting any error or discrepancy against the Bank. (x) Unless the Bank specifically agrees otherwise in writing, Customer will not use the Remote Deposit Capture On-Site Teller Service or Mobile Banking Deposit Service to deposit any Check or Checks that exceed the transaction limitations or file limitations or both (collectively the “Transaction Limits”) that may be established by the Bank. The Transaction Limits may be changed in the Bank’s sole discretion from time to time. A change in the Transaction Limits shall be effective upon the Bank providing notice of the change to Customer. (xi) Customer shall be responsible for verifying the Bank’s receipt of Customer’s transmission(s) by verifying that deposits have been posted to the appropriate accounts, in addition to cooperating in any investigation and resolving any unsuccessful or lost transmissions with the Bank. (xii) The Bank may from time to time send a notice to Customer requesting the installation or implementation of any changes (including without limitation a hardware or software upgrade) to the Product or Remote Deposit Capture On-Site Teller Service (or both) in order to ensure compliance with regulatory changes or developments, to protect the integrity and security of the Product and Remote Deposit Capture On-Site Teller Service, or for any other reason determined by the Bank (a “Change/Upgrade Notice”). Customer shall be responsible for installing or implementing the changes described in the Change/Upgrade Notice within 5 days from the date the Bank sent the notice. Customer will also ensure that the equipment for the Remote Deposit Capture On-Site Teller Service is clean and operating properly, and inspect and verify the quality of images and ensure that the digitized images of Items are legible for all posting and clearing purposes. (xiii) Customer shall exercise due care in preserving the confidentiality of any user identification, password, test key, or other code or authentication method provided by the Bank or otherwise required for use of the Remote Deposit Capture On-Site Teller Service and shall further prevent the use of the Remote Deposit Capture On-Site Teller Service by unauthorized persons. Customer assumes full responsibility for the consequences of any missing or unauthorized use of or access to the Remote Deposit Capture On-Site Teller Service or disclosure of any confidential information or instructions by Customer, its employees and agents (as applicable). (xiv) System applies a virtual endorsement containing deposit account information. Prior to scanning and submitting Original Check customer will use a restrictive endorsement stamp or otherwise place restrictive endorsement language on back of check below the space reserved for virtual endorsement. Language should include the following at minimum: “For Remote Deposit Only to Mission Valley Bank.” If not directed otherwise by the Bank, Customers will store Original Checks in a safe and secure environment for a minimum of 14 days and a maximum of 30 days after such Item has been digitized and processed. Customer shall take appropriate security measures to ensure that: (a) only authorized personnel shall have access to Original Checks, (b) that the information contained on such Original Checks or on any corresponding Imaged Items are not disclosed to third parties; (c) such Checks will not be duplicated or scanned more than one time; and (d) such Checks will not be re- deposited or renegotiated in any form. Customer will promptly (but in any event within 5 business days) provide any retained Original Check (or, if the Original Check is no longer in existence, a sufficient copy of the front and back of the Original Check) to the Bank as requested to aid in the clearing and collection process to resolve claims by third parties with respect to any Item or as the Bank otherwise deems necessary. Customer will use a commercially reasonable method which is consistent with any requirements of Regulation CC and the Bank to securely and permanently destroy Original Checks after Customer’s retention period has expired. (xv) Customer understands and agrees that an Item that is not paid by a Payor Financial Institution, or is otherwise returned for any reason, will be returned to Customer and the account charged for the amount of the Item plus any associated fees, which may be changed from time to time in the Bank’s discretion. The Bank’s right to charge the account will apply without regard to whether the Item is timely returned to the Bank or whether there is any other claim or defense that the Item has been improperly returned to the Bank. (xvi) If the account is, or at any time becomes, an account that is jointly owned by two or more parties (a “joint account”), Customer warrants that all joint account owners of the account agree to the terms and conditions of this Agreement and that this Agreement binds all owners of the account. Each joint account owner further agrees that notice to one joint account owner is notice to all joint account owners. All joint account owners are jointly and severally liable to the Bank for any amounts owed to the Bank under this Agreement, including without limitation any fees for the Product and Remote Deposit Capture On-Site Teller Service, any and all overdrafts to the account, and any amounts charged to the account for deposited Items that return as unpaid provided, however, that no fees for the Product or Remote Deposit Capture On-Site Teller Service will be charged to a personal (non-business) account of an individual consumer.