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Last modified
7/17/2007 8:40:51 AM
Creation date
12/2/2004 10:30:05 AM
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Roseville City Council
Document Type
Council Resolutions
Resolution #
9802
Resolution Title
North Star Bank Automated Clearinghouse Agreement
Resolution Date Passed
8/28/2000
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<br />3. Security Procedure; <br /> <br />(a) CompaJiy and Financial Institution shall comply with the seëurityþrQCedurerequirements <br />described in Schedule B attach.edhereto with respéct to ·Entries tranSmitted by Company to <br />FinancialInstitution. Company acknowledges that the purpose of such security procedure is <br />forverificatiOD of authenticity and not to detect an error in the transmission or content of an <br />Entry. No security procedure for the detection of any such error has been agreed upon <br />between the Financial InstituûonandCompany. <br /> <br />(b) Company is strictly responsible to establish and maintain the procedures to safeguard against <br />unauthorized transmissions. Company wammts that no individual will be allowed to initi. <br />transfetsin the a.bsencê of proper SUpervision and safeguards, and agrees to take reasonable <br />steps to maintain the confidentiality . of the security p..oceduresand any logons, passwords, <br />codes. security devices and related instructions provided by the Financiallnstitutíon in <br />connection with the security pröceduresdescribedin Schedule. B for the access rights granted <br />under Schedule Aor Schedule C. IfCompany~lieves or suspeçts that any suçh infon:nation <br />or instructions have been knoWn øraccessed by unauthorized persons. Company agrees to <br />notify Financial Institution immediately followed by written confmnation.Theoccurrence <br />Qf unauthorized access will not atfect any transfers made in good faith by Financial <br />Institution :prior to receipt of such notification and Within areasónabletime perioclthereäfter <br />to prevent unautbonzed transÎcrs. . <br /> <br />4. Compliance With Secwity Procedure. <br /> <br />(a) If an Entry (ora request for cancellation or amendment of an Entry) teeeivèd by Financiàl <br />Institution p1J.1'pOL1S to have been transmitted or authorized by Company, it will be deemed <br />effective asCQrilpany's EIltJý(orrequest) IµId Company shall be obligated to pay Financial <br />Institution the amount of such Entry even though the Entry (or request)was not8uthorized <br />by Company, provided FiMQCialInstituûoo accepted tbe.entryin good faith and acted in <br />compliance with·the security pra<:edure referred to in Schedule B with respect to such entry~ <br />If signatw'e comparisonis to be used as apart of that security procedure. Financial Institution <br />shá11 be deemed to have complied witb that part of SUCh procedure if it èompares the <br />signatureat.:companying a file ofEnmes (or request for cancellation or amendment of an <br />Entry) received with the signature of ~ aüthorized repi'Csentaûve of Compaùy (an <br />"Authorized Representative") and, on the basis of such comparison, believes the signature <br />ac<:ompenying s:uchfile to be that of51lch authorized representative. <br /> <br />(b) If an entry (or request for cancellation or amendmetlt of an Entry) received by Financial <br />Instituti9llWas tranSmitted.otauthorized by Company. CQrnpany shall pay.Financial <br />Institutionthè amount oftheEritry, wh~tber or notFinancial Institution complied with the <br />security procedure referred to in Schedule B with respect to that Entry and whether or not <br />thät Entry was erroneoUS in Bny respect or thatetror would haVe been detected if Financial <br />Instituûon had complied with such procedure. <br /> <br />Page 2 of12 <br />
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