Common use of Positive Pay Services Clause in Contracts

Positive Pay Services. Bank will provide the Positive Pay Services for the Designated Accounts specified by Customer. On each Business Day, Customer agrees to provide Bank a Check Report or ACH transaction report (“Issue File”) by 6:00 p.m. Customer agrees to provide an Issue File before disbursing checks or ACH transactions to payees. Failure to send a Check Report prior to disbursement could result in checks or ACH transactions presented for payment that do not have a corresponding issue on file, thus these checks or ACH transactions will be treated as “exception items “ and be included in the Exception Report as “paid no issues” (PNI). There is a fee levied by Bank for every exception item reported. Bank shall compare each Presented check by check number and amount (as encoded) against all Check Reports received through that day. Bank shall compare each Presented ACH transaction to the identifying information for the ODFI or Receiver received from Customer. Bank shall (1) finally pay and charge to the applicable Designated Account all Presented Checks which match checks on the Check Reports as to check number and amount, provided that the Designated Account has sufficient Available Funds; and (2) unless service is disrupted or delayed for operational reasons, provide with an Exception Report by 7:00 a.m. on the following Business Day. Customer shall provide Bank with payment Instructions regarding the Exception Checks or Exception ACH items by 10:00 a.m. and must notify Bank of the return reason such as; forgery, invalid dollar amount, unauthorized transaction, or etc. on the same day. If Customer fails to meet this deadline, Customer authorizes and directs Bank to return the Exception Checks or Exception ACH transaction according to the default decision made by Customer on the Positive Pay Services Agreement. If Customer sends in payment Instructions after the deadline and would like a particular check or ACH transaction returned, Bank will attempt to honor the return but if the presenting bank fails to honor the return, Customer must reimburse Bank for the amount of the item and hold Bank harmless from any cost, suits, expenses, liabilities, damages and attorneys’ fees related to the return of the item.

Positive Pay Services. (For Business Clients Only) A. The Positive Pay Service is an elective feature of the Internet Banking Services, available to business clients, which enables you to notify the Bank will provide of all checks you have issued, so that the Bank can, in turn, notify you in the event the Bank receives a request to process a check that was not identified to us via the Positive Pay Service. B. If the Bank receives a request to process a check that you have not informed us about and has not been identified to us via the Positive Pay Service, we will notify you through the Internet Banking Services of such pending request. C. You may enter the details for checks issued by manually entering the Designated Accounts specified information when you connect to the Internet Banking Services or by Customerimporting a check issue file. The information you enter for each check you issue must accurately state the check number, date, and the exact dollar amount of each check drawn on an Account. You understand and acknowledge that if, as a result of a system failure or outage, the check file is not accepted via the Internet Banking Services and/or the Bank cannot process the file, the file shall be considered as not received and the Bank shall have no liability therefor. D. Payment of Presented Items and Reporting of Exception Items The Bank will compare each presented check by check number and payment amount against the information you provide via the Positive Pay Service. On each Business Day, Customer agrees the Bank: i. may pay and charge to the designated Account each presented check that matches by check number and payment amount a check that you have entered via the Positive Pay Service; ii. shall provide Bank a Check Report or ACH transaction report (“Issue File”) by 6:00 p.m. Customer agrees to provide you with an Issue File before disbursing electronic notification of any checks or ACH transactions to payees. Failure to send a Check Report prior to disbursement could result in checks or ACH transactions presented for payment that do not match the information you have a corresponding issue on file, thus these checks or ACH transactions will be treated as provided (an “exception items “ and be included in the Exception Report as “paid no issues” (PNIcheck”). There is a fee levied The Bank will notify you of any exception checks identified each Business Day by Bank for every exception item reported. Bank shall compare each Presented check by check number and amount (as encoded) against all Check Reports received through that day. Bank shall compare each Presented ACH transaction to the identifying information for the ODFI or Receiver received from Customer. Bank shall (1) finally pay and charge to the applicable Designated Account all Presented Checks which match checks on the Check Reports as to check number and amount, provided that the Designated Account has sufficient Available Funds; and (2) unless service is disrupted or delayed for operational reasons, provide with an Exception Report by 7:00 9:00 a.m. on the following Business Day. Customer Day (the “Notification Date”). E. Pay Request/Return Request You shall provide review any exception check(s) on the Notification Date, and notify the Bank with payment Instructions regarding via the Exception Checks Internet Banking Services whether to pay or Exception ACH items return each check identified in the notification by 10:00 a.m. and must notify Bank of the return reason such as; forgery, invalid dollar amount, unauthorized transaction, or etc. 1:00 p.m. on the same day. If Customer fails you do not notify the Bank otherwise prior to meet this such deadline, Customer authorizes the Bank will make final payment of the exception check(s) and directs Bank to return charge the Exception Checks or Exception ACH transaction according to designated Account(s) for the default decision made by Customer on the checks that are drawn against it. F. The Positive Pay Services Agreement. If Customer sends in payment Instructions after Service may not be used for any check that the deadline and would like a particular check Bank has already cashed, negotiated or ACH transaction returned, paid or for which the Bank will attempt is already committed to honor the return but if the presenting bank fails or pay under applicable laws, regulations or rules governing such items. G. You agree to honor the return, Customer must reimburse Bank for the amount of the item pay any and hold Bank harmless from any cost, suits, expenses, liabilities, damages and attorneys’ all fees related to the Positive Pay Services. Please refer to the Bank’s schedule of charges for Positive Pay Services, as set forth on the Fee Schedule to the Account Agreement. H. The Bank is entitled to rely on any information you provide in connection with the Positive Pay Service and shall not be responsible for detecting or remediating any errors contained in any check file, pay request or return of the itemrequest.