Park Virtual Deposit Terms and Conditions

The Park Virtual Deposit Terms and Conditions provide the general rules that apply to the Customer’s use of Park Bank’s Park Virtual Deposit for remote deposit capture services (the “Service”). The Service provides Customers with the option of making electronic deposits to their Park Bank accounts through their flatbed scanner and mobile devices. Customer agrees that the Service shall be governed by these Terms and Conditions and other relevant terms of the agreement(s) governing the deposit account into which checks are deposited (including, but not limited to, the Park Bank Account Rules and Regulations booklet).

This Agreement establishes the terms and conditions under which Park Bank will provide the Service to you. The capitalized terms used in this Agreement are defined in this Agreement or in the Glossary attached as Exhibit A to this Agreement. The words “we,” “our,” and “us,” refer to Park Bank. The Service also includes all the software and related processing through which you will transmit checks to us for deposit to an Account from your flatbed scanner and mobile device. You, using hardware and software meeting the specifications and requirements provided by us, shall be responsible for capturing from each original check to be deposited: (i) an image of the front and back of the original check; (ii) all of the information in the MICR line on the original check; (iii) the amount of the check, as entered by you for MICR encoding purposes; (iv) additional information about the original check, including any associated electronic records derived from the original check, and (v) any other information specified by us.

When you use the Service, you agree to be bound by the terms, conditions and procedures set forth herein. We may change or discontinue these terms, conditions and procedures at any time. You will accept these changes by using the Service after the effective date in the notice. To the extent we provide other services to you, those are controlled by other agreements.

The Service allows you to prepare deposits for electronic transmission to us. Upon receipt of the transmission from you, we will verify receipt of the transmission and exchange images in the transmission with selected banks, or create Substitute Checks for clearing for non-exchange banks. We will then deposit funds to your Account. You agree to take all steps necessary to protect all of the items processed from being redeposited with us or any other financial institution, either electronically or as paper checks.

General Terms and Conditions

 

1. Acceptance and Rejection: Once we receive electronic items, we may review them to determine whether they will be accepted for processing or be rejected. We shall, in our sole discretion, determine whether electronic items are accepted for processing or rejected. It shall be your responsibility to routinely review the relevant systems for notices from us regarding whether electronic items have been accepted for processing or rejected. If you believe that electronic items have been sent to us but have not been accepted for processing or rejected, it is your responsibility to contact us to inquire about the electronic items in question.

You agree to securely safe keep the original checks which you deposit through the Service in a secure location until you have received notification via email that the original check has processed. You then agree to destroy the original checks after receiving notification from us that the check has been processed to your account to ensure that they are not separately deposited to us or any other Bank.

2. Funds Availability: Remotely deposited checks are “non-local” items as defined in Federal Reserve Board Regulation CC. Despite this fact, we shall grant provisional credit to the Account for electronic items in accordance with prudent business timeframes. You authorize us to place a hold on funds in the Account if, after performing risk management activities on remotely deposited checks in a file, we have concerns about or doubt the validity or collectability of a check. For Health Savings Accounts only, any deposit made via Virtual Deposit prior to the tax filing deadline of current year will be considered a current year contribution. Prior year contributions should be deposited in person.

3. Governing Law and Rules: Applicable federal law and the internal laws of the state of Wisconsin will govern the Service (except to the extent this Agreement can and does vary such laws). The Service is also subject to rules established by Federal Agencies, the NCHA Rules, the Clearinghouse Rules and the ECCHO Rules.

4. Ineligible Account(s): You shall maintain with us one or more transactional accounts, referred to herein as “Designated Account(s)” to which deposits may be made pursuant to this Agreement. You agree that your obligations under this Agreement, including, without limitation, any indebtedness or liability arising as a result of the provisions of this Agreement, will be secured by any collateral now or in the future held by us or on which we now or in the future have a lien or security interest for any other indebtedness you owe us, whether such other indebtedness has already been incurred or will be incurred in the future, and the instruments and agreements under which such collateral is provided are hereby amended to secure your obligations under this Agreement. You hereby assign all of your Deposit Accounts with us to us in order to secure your obligations to us under this Agreement. You expressly authorize us to debit any Account maintained by you with us and/or set off any of your obligations to us under this Agreement against any amount you owe us, in order to obtain payment of your obligations under this Agreement.

The following accounts cannot be Designated Accounts and are not eligible for deposits through the Park Virtual Deposit Service:
  • IRAs & Retirement accounts
  • Certificates of Deposits
  • Restricted accounts
  • Business accounts
You also agree that you will not use the Park Virtual Deposit service to scan and deposit any of the following checks or items:
  • Cash
  • Savings bonds
  • Traveler’s Checks
  • Bonds
  • Western Union Money Orders
  • United States Postal Service Money Orders
  • Foreign Items
  • Non-negotiable Items
  • Altered Checks
  • Incomplete Checks
  • Third-Party Checks
5. Endorsement: You agree that you will endorse the back of your original check by signing your name. For your protection, we recommend also writing “for deposit only to Park Bank” and your account number on the back of the check. You agree to follow any and all other procedures and instructions for use of the Service that we may establish from time to time.

6. Deposit Limits: We reserve the right to impose limits on the amount or number of deposits that you transmit using the Park Virtual Deposit Service. These limits may be modified from time to time.

7. Processing: You agree, represent, and warrant that you will send an electronic item for deposit only if the original check is:
  • Payable to you and not to a third party.
  • Drawn on an account owned, controlled or accessible by a person or entity other than you, any person or persons who control you or any entity that is controlled by persons who control you.
You further agree, represent, and warrant that you will not use the Service to transmit to us for deposit any electronic item reflecting:
  • any original check, the deposit of which is prohibited by our then current procedures pertaining to the Service or is in violation of any applicable law, regulation or rule;
  • any original check that you know or suspect or should suspect is fraudulent or otherwise not authorized by the owner of the account on which the original check is drawn;
  • invalid checks or image replacement documents that are derived from or that purport to be Substitute Checks;
  • any check that is drawn on or is payable by or at a bank that is located in a location that is outside of the contiguous United States, Alaska, Hawaii, the District of Columbia, Puerto Rico or the U.S. Virgin Islands;
  • any check that is not permitted for deposit into a Designated Account, as provided in these terms and conditions or the Park Bank Account Rules and Regulation booklet; or
  • any “remotely created check,” as that term is defined in Federal Reserve’s Regulation CC, that is, any check that is not created by the paying bank and that does not bear a signature applied, or purported to be applied, by the person on whose account the check is drawn.
You hereby agree, represent and warrant that every electronic item captured by you is from an original check. If you send an electronic item for deposit that was not captured from an original check, you agree to indemnify, defend and hold us harmless against any financial loss, costs (including but not limited to actual attorneys’ fees, costs of litigation and consequential losses, if any), claim, harm or damage that we suffer as a result. In our discretion, we may terminate the Service immediately if you send any electronic item that was not captured from an original check.

You further agree, represent and warrant to us that:
  • All information submitted by you to us is complete and accurate and complies with the provisions of this Agreement;
    • All signatures on the original check from which an electronic item is derived are authentic, authorized, and have not been altered, and each original check from which an electronic item is derived is authentic, authorized, and has not been forged
    • You shall not knowingly or unknowingly transmit or cause to be transmitted to us any computer virus or any malicious code and shall use your best efforts to prevent such transmissions from occurring
We are not liable for claims, expenses, losses or damages resulting from your acts or omissions or alleged acts or omissions or those of any other person, including, without limitation, with respect to any check, the drawer, the payee, any endorser and/or any collecting or returning bank, Federal Reserve Bank, financial institution, clearinghouse or payment processor. In the event we are adjudicated liable pursuant to the provisions of this Agreement, we shall only be liable for your actual damages, whether or not the likelihood of such damages was known or contemplated by us and regardless of the legal or equitable theory of liability which you may assert, including, without limitation, loss or damage from subsequent wrongful dishonor resulting from our acts or omissions pursuant to this Agreement.

8. Returned Checks: If electronic items that are deposited into your Designated Account(s) pursuant to this Agreement are dishonored, rejected or otherwise returned unpaid by the drawee bank, or are rejected or returned by a clearing agent or collecting bank for any reason, including, but not limited to, issues relating to the quality of the image, you understand and agree that an original check will not be returned to you but that we may charge back the amount of the original check and provide you with an image of the original check, a paper reproduction of the original check or a Substitute Check. Unless otherwise instructed by us, you shall not attempt to deposit or otherwise negotiate an original check that has been imaged if it has been charged back to you.

You agree that we may debit any of your accounts maintained with us to obtain payment for any electronic item that has been rejected or returned, for any adjustment related to such electronic item or for any warranty claim related to such electronic item, whether or not the rejection, return, adjustment or warranty claim was timely made. We have no duty to you or to any other person to decline, dispute, or defend any such rejected or returned item, or to dispute or defend against any such adjustment or warranty claim.

If your use of the Service causes the risk identification triggers or other benchmarks (related to, for example return rates, rejection rates and dollar and item count volumes), which are set by us in our sole discretion, to be met or exceeded, as applicable, we may, in our sole discretion, immediately terminate the Service or impose such limitations and restrictions on the Service as we deem appropriate.

9. Security Requirements: You will comply with all security procedures for the Service that we establish or set forth in any written user requirements communicated to you. You shall be solely responsible for preventing and safeguarding against unauthorized transmissions and unauthorized access to the following, all of which are referred to collectively as “Information and Systems”: (i) original checks; (ii) electronic items; and (iii) your information, systems, connections and equipment that interface with, connect to or allow access to the Service or us, and (iv) our information, systems and equipment, including but not limited to instructions, passwords, procedures, including security-related procedures or any passwords, codes or PINs used in transmitting the electronic items or related information. You shall establish, maintain and enforce physical and logical commercially reasonable security practices, techniques and procedures with respect to access, storage and maintenance to safeguard against unauthorized transmissions and unauthorized information and systems, including the security procedures set forth in Exhibit B to this Agreement. Such practices, techniques and procedures shall be no less than the security related requirements set forth in all applicable laws, regulations, regulatory guidelines and rules.

10. Indemnification: With respect to the Service and any check you send to us for deposit, you agree to indemnify and reimburse us for and hold us harmless from and against any and all losses, costs and expenses (including but not limited to actual attorneys’ fees, costs of litigation and consequential losses, if any) we incur with respect to (i) your breach of a representation, (ii) any act or omission by you in the capturing, creation or transmission of the check image or electronic deposit, including without limitation the encoding of the MICR Data from the original check; (iii) from any duplicate, fraudulent or unauthorized check, check image or Substitute Check; (iv) for any loss caused by our acceptance or creation of a check image or Substitute Check instead of presentment of the original check; (v) from any other act or omission arising out of action or inaction taken pursuant to any request by you or pursuant to this Agreement, or (vi) any warranty as set forth herein, any warranty or indemnity we make to another party, whether by operation of law or by agreement, with respect to the check, any electronic representation of the check, the electronic item, any Substitute Check based on the original check or any paper or electronic representation of a Substitute Check derived from the original check. This section shall survive the termination or the expiration of this Agreement.

Exhibit A
Glossary


Account means one or more deposit accounts maintained by you with us and used in connection with the Service.

Claim means any claim, dispute or controversy arising from or relating to your use of the Service, the terms and conditions set out in this Agreement or the validity, enforceability or scope of the provisions of this Agreement.

Clearinghouse Rules means the rules for check clearing promulgated by any clearinghouse association, check clearing consortium or any other arrangements we may participate in to collect checks, including the Clearing House Payment Company.

Codes means passwords, user IDs, personal identification numbers (“PINs”)and other security devices used by you to access the Service.

ECCHO Rules means the rules for check electronification promulgated by the Electronic Check Clearing House Organization.

MICR means Magnetic Ink Character Recognition, i.e. character recognition technology used to facilitate the processing of checks.

NCHA Rules means the rules for check clearing promulgated by the National Clearing House Association.

OFAC means the U.S. Treasury Department’s Office of Foreign Asset Control and its regulations relating to economic sanctions or embargo programs or other similar restrictions.

Operating Requirements means the operating requirements for the use of the Service set forth in Exhibit C to this Agreement.

Substitute Check means a paper reproduction of an original check that contains an image of the front and back of the original check, is suitable for automated processing in the same manner as the original check and meets other technical requirements set forth in the Check Clearing for the 21st Century Act, 12 USC SS 5001-5018 and the regulations relating to the Act.

Exhibit B
Security Procedures


1. Security Procedures. The following sets forth the Security Procedures with which you agree to comply when using the Service:
  • Before entering your password, ensure that the web site you are visiting belongs to us. This can be verified by the URL displayed in the "Address" bar. You are also advised to check that the web-site's digital certificate is issued to us.
  • Keep your user name and password confidential at all times. Do not reveal your user name or password to anyone. We are not responsible for any data breach caused by your system network and/or hardware.
  • Check your Account information and transaction histories on a regular basis to ensure there are no unauthorized transactions. We encourage daily checks whenever possible.
  • Protect yourself against computer viruses by installing the latest virus detection software and firewalls, particularly if you are linked to the Internet via broadband connections, cable modems or digital subscriber lines.
  • Update your virus detection software and firewall frequently with security patches or newer versions. Keep anti-virus subscriptions and definitions up to date.
  • Avoid downloading or installing any files or programs from unknown sources.
  • Scan any attachments you receive via email using your virus detection software and immediately delete any suspicious email messages and all attachments.
  • You are encouraged to delete junk or chain emails. Do not open any email attachments from persons you do not know or trust.
  • Use a Web browser which supports 128-byte or higher encryption to ensure that you will enjoy the highest level of security available.
2. Identification. These Security Procedures are used for the purpose of verifying the identity of the immediate source from which we receive Electronic Items and files and communications and instructions related thereto. These Security Procedures are not used to validate or verify the authenticity of the content of an Electronic Item or file or any data related to an Electronic Item or file, or of an original check underlying an Electronic Item.
3. Reasonableness of Security Procedures. You agree that these Security Procedures are commercially reasonable. You further agree that we are not obligated to or responsible for implementing other security procedures.
4. Binding Effect. You agree to be bound by any Electronic Items and files and any communications and instructions related thereto in which these Security Procedures are used. You further agree to the described responsibilities, and understand your liability for loss if the Security Procedures are not followed.
5. Reporting Any Suspected Security Breach and/or Fraud to Bank. If you suspect that your security has been breached, or if you suspect that there may have been unauthorized access to, or any that fraud has occurred or may occur with, your Park Bank account, you should contact Park Bank Ready Serve immediately at (414) 466-8000.

Exhibit C
Operating Requirements


To process a deposit you will:

  • Log into our secure distributed capture system using the Codes
  • Endorse the back of your original check by signing your name. For your protection, we recommend also writing “for deposit only to Park Bank” and your account number on the back of the check
  • Scan each check to capture the image, MICR information, and attempt to read the dollar amount of the original check (the software performs a check to validate that the image and MICR information captured meets quality guidelines)
  • Key in the dollar amount of the original check
  • Transmit images
  • Verify receipt of a message confirming successful transmission of the images
  • Safe keep the original checks which you deposit through the Service in a secure location and then, destroy them to ensure that they are not separately deposited to us or any other bank, however do not proceed with the destruction of the processed paper checks until transaction processing has been verified as accepted by us.