Common use of SECURITY CODES Clause in Contracts

SECURITY CODES. F&M BANK shall provide a customer identification code (the “Customer ID”), a user identification code (“User ID”), and a user password (“User Password”). Each Authorized User may be required to select or create one or more alphanumeric codes, images, phrases, questions with a matching answer, or to use other types of security techniques or devices. ("User Code"). In addition to the Customer ID, User IDs and User Passwords described in this Section, each Authorized User (sometimes called a “User”) will be required to select one or more Multi-Factor Authentication options (for example, a soft token,) (“MFA Option”). The Customer ID, User ID's, User Codes and User Passwords together with the selected MFA Option shall be referred to as “Security Codes”. Company agrees that use of the Security Codes will authenticate the identity of each User and verify all requests, communications or other instructions submitted through F&M BANK Online Banking. In order to prevent unauthorized access to the Company Accounts and unauthorized use of F&M BANK Online Banking services, Company agrees to maintain the confidentiality of the Security Codes, and to instruct all Users to maintain the confidentiality of the Security Codes. Company also agrees to review promptly each statement sent by F&M BANK for any Company Account that is accessible through F&M BANK Online Banking in order to detect any unauthorized transactions. To the fullest extent permitted by applicable law, Company is responsible for all transactions on Company Accounts initiated using the Security Codes. Company is responsible for maintaining the confidentiality of all Security Codes, and for implementing the necessary internal controls, balancing and reconciliation functions, and audit procedures to prevent unauthorized use of F&M BANK Online Banking. Company agrees that the use of the Security Codes constitutes a commercially reasonable security procedure for Company. Company also agrees to be bound by all requests, communications, or other instructions to F&M BANK that are initiated using F&M BANK Online Banking and in compliance with this security procedure (including any transfer, payment instruction initiation or cancellation), regardless of whether or not Company actually authorized the request, communications and other instructions. If any request, communications or other instructions initiated through F&M BANK Online Banking and accepted by F&M BANK in compliance with this security procedure contains any error, to the full extent allowed by law, Company shall be liable for, and shall indemnify F&M BANK against any claims, losses and expenses F&M BANK may incur that arises from or relates to the erroneous request, communications or other instructions. F&M BANK’s records demonstrating compliance with this security procedure will be deemed conclusive proof that the payment order received by F&M BANK was authorized and that Company is bound by those requests, communications or other instructions. Company agrees to download and install any and all security software required by F&M BANK and to install all updates, patches and/or any other amendments or modifications to the same when directed by F&M BANK to do so. Company will not be allowed to access F&M BANK Online Banking and utilize its services unless any and all required security software is installed on all desktop computers and laptop computers accessing Online Banking. If Company requests, based on technical or administrative constraints, that F&M BANK perform any or all set-up functions for Company, F&M BANK will do so; provided, however, that Company hereby acknowledges that Company remains responsible for all access to F&M BANK Online Banking and actions taken by Authorized Users with respect to Online Services.