v

CHEXpedite Electronic Check Recovery Merchant Application and Agreement
Corporate Resolution

  
1.   Merchant authorizes ECHO to re-present, in accordance with the RCK rules of National Automated Clearing House Association (NACHA) all returned check items forwarded to ECHO by Merchant or Merchant’s bank(s). This program is subject to a $2,500.00 per check face value limit in accordance with the RCK rules of NAHCA. ECHO retains the right to refuse to process any returned check submitted to ECHO by Merchant or Merchant's bank.  
2.   In addition to re-presentment of returned checks, Merchant authorizes ECHO to originate separate electronic debits to check writers for returned check fees. Such returned check fees shall be for the maximum amount allowed by applicable state law(s). Merchant agrees that check writer notices of such returned check fees will be posted by Merchant at all point of sale locations at all times as required by state law(s), NAHCA or ECHO.  
3.   For each returned check forwarded to ECHO, Merchant will have received written authorization fom the check writer to (a) re-present the check electronically, and (b) charge a returned check fee. Merchant's primary method of obtaining such consumer authorizations will be as described in the CHEXpedite Electronic Check Recovery Merchant Application.  
4.   Merchant agrees either (a) to complete and forward a Return Item Release Authorization Form provided by ECHO, to the depository bank(s) utilized by Merchant such that all returned checks shall be forwarded by bank to ECHO after first presentation, or (b) to advise the Merchant's bank to forward returned checks to the Merchant after first presentment.  
5.   Collected funds are paid via ACH credit to the Merchant's account specified herein on the next payment date following collection of the funds. Payment dates are the first and sixteenth day of each month (or the first banking day thereafter).  
6.   ECHO will pay the merchant 100% of funds collected on face value of the check. Partial payments received in secondary collections will be paid to Merchant on the next payment date as set forth above. ECHO will rebate to merchant 20% of returned check fees only when the following conditions are met: (a) Merchant's bank is forwarding returned items directly to the processing center, (b) both the check and the returned check fee are collected electronically, (c) collection fee transaction is not returned or otherwise charged back by the consumer or the consumer's bank, (d) the amount of the collection fee is greater than $15 dollars. ECHO as compensation for providing activity reports to Merchant will retain the first such rebate each month for each Merchant location. No rebate is paid on checks recovered by secondary collection.  
7.   Merchant agrees and authorizes ECHO to debit Merchant's account's for any items collected electronically that are subsequently returned by check writer's bank as uncollected. This authorization survives the termination of this agreement.  
8.   ECHO does not guarantee the collection or payment of any returned check presented to ECHO.  
9.   Merchants with online reporting can retrieve check images online. Check images will be stored and available online for one (1) year from the date received at ECHO. Merchants requiring an image of a check subsequent to that time will need to contact their original depository banks which are required by law to retain check images for seven years.  
10.   Paper checks will be shredded one hundred and eighty (180) days after the date received at ECHO. Prior to the date a check is shredded, on an individual check basis, Merchant may request the return of specific paper checks. ECHO will mail such checks within 3 business days of Merchant’s request. Actual receipt of the check(s) by Merchant is subject to U.S. Mail delivery standards for first class mail. Merchant agrees to idemnify and hold ECHO and ODFI harmless from any loss or failure of delivery by the U.S. Mail. A check retrieval fee of five dollars ($5) per check will be assessed to the Merchant.  
11.   No Retrieval Fees for Cancelled ECR Merchants - Upon written request from a Merchant canceling the service, all original checks not yet shredded by ECHO will be sent back to the Merchant without a retrieval fee.  
12.   Any dispute between Merchant and check writer relating to a check transaction shall be settled between Merchant and check writer. Merchant agrees to indemnify and hold ECHO and ODFI harmless from any claim, liability, loss or expenditure resulting from Merchant’s actions or in-actions, including but not limited to failing to obtain written authorizations or post check writer notices as required by NACHA and this Agreement. Notwithstanding the foregoing, ECHO agrees to indemnify and hold Merchant harmless from any claim, liability or loss by ECHO's or ODFI's actions or in-actions.  
13.   All transactions covered by this Agreement are governed by NACHA's Operating Rules, Regulation CC and E established by the Federal Reserve Board, UCC Article 4. The Electronic Funds Transfer Act and other applicable laws and regulations.  
14.   If Merchant fails to comply with any term of this Agreement or any applicable laws or regulations cited in this Agreement, then ECHO may terminate this Agreement immediately by giving notice to Merchant. If this Agreement is terminated for any reason, ECHO will have 45 days to complete the processing of all returned check items currently in the collection process at ECHO.  
15.   Either party may terminate this Agreement by giving the other party thirty (30) days written notice of termination.  
16.   ECHO may change the terms of this Agreement at any time by giving Merchant ten (10) days notice of said change. If Merchant does not agree to the change then Merchant may terminate this Agreement.  
17.   The laws of the State of California shall govern this Agreement.  
 
  CORPORATE RESOLUTION ADOPTED BY A QUORUM OF THE BOARD OF DIRECTORS
(Must be completed by all Corporations)		  
 
<%= string(75, "_")%>
  It was resolved that the officer(s) identified as the authorized signor(s) of this Application / Agreement Have the authority to execute the CHEXpeditetm Electronic Check Recovery Merchant Application and Agreement and open a DDA, if required, with First Regional Bank, on behalf of the Corporation.  
 
  Company:   
  Date adopted by the Board of Directors:   
  President:   
  Secretary:   
<%= string(75, "_")%>