Small Business Remote Deposit Agreement

REMOTE DEPOSIT SERVICE TERMS AND CONDITIONS

Bank agrees to provide Customer with a remote deposit capture system that will enable Customer to capture images of original paper checks (“Items”) using a desktop scanner or mobile device and transmit those images remotely from Customer’s business location to Bank (“Remote Deposit Service”). Bank has the option of printing those images as substitute checks or when permitted, transmitting the images to the intermediary and/or paying bank. Customer acknowledges that acceptance of the images by the Remote Deposit Service for deposit does not guaranty that the quality and usability of the images will meet the standards of the paying bank. Funds availability will be in accordance with Bank’s standard funds availability policy. Bank reserves the right to audit Customer’s compliance with applicable laws and any procedures or requirements imposed by Bank on Customer regarding the Remote Deposit Service. If Customer refuses to comply with Bank’s requests during such audit, or if Bank concludes, in its sole discretion, that: (i) the risk of Customer is unacceptable; (ii) Customer has violated this Agreement or any compliance or legal obligations; or (iii) Customer has refused to give Bank access to Customer’s premises, Bank may terminate the Remote Deposit Service without prior written notice.

Eligible Items.

Customer agrees to only process original paper checks made payable to Customer. Bank will not process ineligible items, including but not limited to checks payable to third parties, demand drafts or remotely created checks, checks drawn on a foreign bank or payable in foreign currency, government warrants and substitute checks (paper checks created from an electronic image). All checks deposited through the Remote Deposit Service will be deposited under the provisions of the applicable Deposit Agreements as modified by this Agreement.

Equipment.

Use of the Remote Deposit Service requires the use of a desktop scanner (“Scanner”) that will be provided by Bank to Customer, or if Customer desires to use mobile deposit, a smart phone or tablet (not provided by Bank) running Bank’s mobile application (System requirements are available on Bank’s Website). Customer will properly operate the Scanner and will endeavor to keep the Scanner in good working condition.

Deposit Limits.

Bank will assign Customer a limit representing the maximum aggregate dollar amount of deposits that Customer may submit each day (“Daily Deposit Limit”) and a limit representing the maximum dollar amount per Item that a Customer may submit (“Item Deposit Limit”). Bank will review such limits periodically and update them without notice to Customer. Customer must contact Bank in order to submit a deposit that will exceed either of these limits. Bank reserves the right to approve or decline any and all limit changes at its discretion.

Deposit Deadline.

Remote deposit items submitted after the cutoff time of 4:00 PM MST/MDT may not be processed and credited until the next business day. Remote deposits are typically available the day after the deposit is processed and credited, however these deposits may be delayed further due to additional processing or other issues.  In certain instances, the bank may determine that a hold is necessary to protect the bank from potential loss on CUSTOMERS deposit.  In those circumstances, the bank will provide written notice to the customer of the delay in availability.

Security.

Customer must keep the Scanner in a secure location, must restrict access to the Remote Deposit Service to authorized personnel and must maintain commercially reasonable safeguards for the handling, imaging, storage, destruction and electronic transmission of Items.

Data Retention.

Customer will retain each original Item for a period of thirty (30) calendar days following deposit in a locked location with access restricted to authorized personnel only. Customer will destroy each Item by a commercially reasonable means on the Business Day following the thirtieth calendar day.

Preparation for Deposit.

Customer will ensure that all Items are properly payable to Customer and contain the drawer’s signature. If the image of the original Item is created and submitted to Bank using a mobile device (rather than a Scanner), Customer shall physically endorse the back of each original Item with the following (“Restrictive Endorsement”): “For mobile deposit only,” followed by Customer’s account number, followed by the signature of an Authorized User. Unless otherwise requested by Bank, Customer is not required to physically endorse original Items submitted to Bank using a Scanner. Notwithstanding the foregoing, Bank may, at any time and from time to time, require Customer to physically endorse any individual Item(s) or all Items submitted through the Remote Deposit Service (via Scanner or mobile device) using the Restrictive Endorsement or such other endorsement specified by Bank in its notice to Customer.

Review of Items and Images.

Customer agrees to review all Items prior to scanning to detect altered or counterfeit Items and will not deposit suspicious Items via the Remote Deposit Service. Customer will report all suspicious Items to Bank immediately. Customer agrees to review and validate the accuracy of each Item image captured by the Remote Deposit Service prior to submitting each deposit. Customer warrants to Bank that all Item images are properly prepared and presented in the Remote Deposit Service prior to submitting each deposit. If the Remote Deposit Service reports Item errors after imaging, Customer agrees to enter the correct information as found on the Item.

Duplicate Items.

Customer warrants to Bank that no Item will be presented for deposit more than once through use of the Remote Deposit Service or by physical deposit of the original item.

Balancing of Deposits.

Customer must balance each deposit accurately and enter the deposit total in the Remote Deposit Service prior to submitting each deposit.

Customer acknowledges that if Customer does not satisfy the foregoing requirements in the deposit of an Item or Items, Bank will have the right to put a hold on the nonconforming Item(s) and chargeback Items that are not properly payable. Customer also acknowledges that any Item returned unpaid for any reason will be debited from the Participating Account. Customer must obtain Bank’s approval to redeposit any Item returned unpaid and may only do so by physical presentment at Bank.

Bank’s Responsibilities.

Bank’s only obligation will be to utilize ordinary care in processing and depositing Items and Bank will have no liability for the processing or deposit of any Item that does not conform to the standards set forth herein.

Customer Warranties.

Customer makes the following warranties, representations and covenants with respect to use of Remote Deposit Service and each image of an original Item submitted to Bank using Remote Deposit Service:

• Each image of an Item transmitted to us is a true and accurate rendition of the front and back of the original Item, without any alteration, and the drawer of the Item has no defense against payment of the Item.
• The amount, the payee, signature(s), and endorsement(s) on the original Item are legible, genuine, and accurate.
• Each Item submitted to Bank for deposit will not be resubmitted in any format to Bank or to any other person for payment and will not cause the same drawer’s account to be debited twice.
• Other than the digital image of an original Item that Customer remotely deposits through the Remote Deposit Service, there are no other duplicate images of the original Item.
• Each original Item was authorized by the drawer in the amount stated on the original Item and to the payee stated on the original Item.
• Customer has not knowingly failed to communicate any material information to Bank.
• Customer will retain possession of each original Item deposited using the Remote Deposit Service for the required retention period and neither Customer nor any other party will submit the original Item for payment.
• Customer’s account into which Customer deposits Items using the Remote Deposit Service, and the funds from such Items, are only used for business purposes (as applicable to Customer’s account).
• Customer will not use the Remote Deposit Service or accounts for any illegal activity or transactions.
• Files and images transmitted to Bank will contain no harmful code, viruses or any other disabling features that may have an adverse impact on Bank’s network, data, or related systems.
• Customer will protect Customer’s Access Credentials for Remote Deposit Service. All uses of Remote Deposit Service using Customer’s Access Credentials will be deemed to be users authorized by Customer.