Business Mobile Deposit Application

I. Mobile Deposit Service

General Terms and Conditions (Mobile Deposit Service). This Agreement as it relates to the Mobile Deposit Service supplements the terms of other agreements Company has entered into with Bank, including, without limitation, the Terms and Conditions of Your Account and its related fee schedules and disclosures that govern the terms, conditions and fees of Company’s deposit account(s) with Bank, each as may be amended from time to time (collectively, the “Account Agreements”). In the event of a conflict between the terms of this Agreement and any of Company’s Account Agreements – with regard to the Mobile Deposit Service only – the provisions in this Agreement shall prevail. The provisions in the Account Agreements shall prevail in all other circumstances.

Mobile Deposit Service. The Mobile Deposit Service is designed to allow Company to make deposits to checking account(s) that Company designates during the enrollment process (each, a “Deposit Authorized Account”) from home or other remote locations by taking a picture (scan) of the check by an authorized mobile device and delivering the check image and associated deposit information to Bank. By using the Mobile Deposit Service, Company authorizes Bank to convert checks to images or create substitute checks for the purpose of clearing the check. Bank reserves the right to change the Mobile Deposit Service at any time and in any manner, in its sole discretion. Company’s continued use of the Mobile Deposit Service will indicate Company’s acceptance of any such changes.

Availability of the Mobile Deposit Service. When using the Mobile Deposit Service, Company may experience technical or other difficulties. Bank is not responsible for any technical or other difficulties or any resulting damages that Company may incur from time to time. The Mobile Deposit Service may have qualification requirements that will be disclosed to Company on Bank’s website. Bank reserves the right to change the qualifications at any time without prior notice. Bank reserves the right to change, suspend or discontinue the Mobile Deposit Service, in whole or in part, or Company’s use of the Mobile Deposit Service, in whole or in part, immediately and at any time without prior notice to Company.

Eligible Checks. Company agrees to scan and deposit only “checks” as that term is defined in Federal Reserve Regulation CC (“Reg CC”). Company agrees that the image of any check transmitted to Bank shall be deemed an “item” within the meaning of the applicable Uniform Commercial Code. Company agrees that Company will not use the Mobile Deposit Service to scan and deposit any checks as shown below:

1. Checks payable to any person other than Company;
2. Checks made payable to a business may only be deposited into the business account;
3. Travelers checks;
4. Checks containing any alteration to any of the fields on the front of the check or item, or which Company knows or suspects, or should have known or suspected, are fraudulent or otherwise not authorized by the owner of the account on which the check or item is drawn;
5. Checks previously converted to a “substitute check,” as defined in Reg CC;
6. Checks drawn on a financial institution located outside the United States;
7. Checks that are “remotely created checks,” as defined in Reg CC;
8. Checks not payable in United States Dollars;
9. Checks dated more than six months prior to the date of deposit;
10. Checks prohibited by Bank’s current procedures relating to the Mobile Deposit Service or which are otherwise not acceptable under the terms of Company’s Account Agreements;
11. Checks with different numerical and written amounts;
12. Checks that have been previously returned unpaid by the financial institution on which they are drawn;
13. Checks that are payable to cash;
14. Checks with endorsement restrictions except as set forth in the “Endorsements and Procedures” subsection in this Agreement, below; or
15. Checks beyond any stated use date.

Image Quality. The image of a check transmitted to Bank using the Mobile Deposit Service must consist of legible images of the front and back of the check. The image that is transmitted must be of such quality that the following information can easily be read by sight review of the image:

1. The amount of the check;
2. The identity of the payee;
3. The drawer’s signature;
4. The date of the check;
5. The check number; and
6. Information identifying the drawer and the paying bank that is preprinted on the check in the MICR line, including the routing transit number, account number, check amount when encoded, serial number and process control field.

The image quality of the check must comply with the requirements established from time to time by the American National Standards Institute (ANSI), the Board of Governors of the Federal Reserve Board, and any other regulatory agency, clearing house or association. Bank is not required to process any check image that is prohibited from being presented, that does not contain the information required, that is not legible, or that is prohibited under this Agreement, any of Company’s Account Agreements, or applicable law. Company agrees that Bank shall not be liable for any damages resulting from a check or item’s poor image quality, including those related to rejection of or the delayed or improper crediting of such a check or item or from any inaccurate information Company supplies with regard to the check or item.

Endorsements and Procedures. Company agrees to restrictively endorse any check transmitted through the Mobile Deposit Service as “For Clear Mountain Bank Mobile Deposit Only” along with Company’s signature(s) or as otherwise instructed by Bank. When depositing a check made payable to a business, Company agrees to restrictively endorse any check transmitted through the Mobile Deposit Service as “For Clear Mountain Bank Mobile Deposit Only” along with said business name, which check may only be deposited into the business account the check is made payable to. Company agrees to follow any and all other procedures and instructions for use of the Mobile Deposit Service as Bank may establish from time to time. Improper endorsement may result in rejected deposit.

Receipt of Check Images for Deposit. Bank reserves the right to reject any check image transmitted through the Mobile Deposit Service, in its discretion, without liability to Company. Bank is not responsible for check images Bank does not receive or for images that are dropped or become corrupted or illegible during transmission. All check images processed for deposit through the Mobile Deposit Service are subject to Bank’s verification and final inspection by Bank. Deposits received by 6:00PM ET (the “Cut-Off Time”) on a Business Day (as defined below) will be reviewed for acceptance on that Business Day. If Company transmits a check image to Bank after the Cut-Off Time on any Business Day, Bank shall review and process Company’s check image on the next Business Day. Bank will use commercially reasonable efforts to review and process Company’s check image. Company’s receipt of confirmation does not mean that the transmission was error-free or complete, or that Company’s Deposit Authorized Account will not be charged back for the amount of the deposit and any applicable returned deposited item or other fee under the applicable Account Agreement if the check image presented is dishonored or returned unpaid for any reason by the financial institution on which it is drawn.

For purposes of this Agreement, a “Business Day” is every calendar day except Saturdays, Sundays, and all federal holidays.

Deposit Limitations. The current daily maximum amount that can be deposited through the Mobile Deposit Service on any Business Day is $5,000.00, unless specified otherwise in the Cash Management Agreement (if applicable). Bank, however, reserves the right to impose limits on the amount(s) and/or number of transactions made by Company using the Mobile Deposit Service and to modify such limits from time to time. Funds deposited using the Mobile Deposit Service after the Cut-Off Time or on a non-Business Day (or both) will apply to the daily maximum amount for the next Business Day.

Availability of Funds. Funds deposited using the Mobile Deposit Service and received before the Cut-Off Time will generally have next Business Day availability.

Retention of Original Check; Dishonored Items. When the check image Company submitted to Bank for deposit has been credited to Company’s Deposit Authorized Account, Company must retain the physical check securely for a period of 60 days following the day the check was credited to Company’s Deposit Authorized Account. Company must store the check securely, using precautions at least as secure as Company would use to protect blank checks. Company must immediately make the original paper check available to Bank at Bank’s request, at any time. If Company fails to produce the original check within 10 days of Bank’s request during the foregoing 60-day period, Company authorizes Bank to deduct the amount in question from Company’s Deposit Authorized Account, regardless of whether such deduction may result in a negative balance on Company’s account, and to pay any such associated fees. Upon the expiration of the 60-day period, Company must securely destroy the original paper check by cross shredding or using another commercially reasonable means of destruction.

Company hereby authorizes Bank to place an extended hold on funds in any of Company’s accounts maintained with Bank as part of Bank’s collection process if Bank has reasonable cause to doubt the validity or collectability of a check image. Company agrees that dishonored check images are the sole responsibility of Company and that Bank may charge a fee for all such dishonored items.

Presentment. The manner in which the checks and other transactions are cleared, presented for payment, and collected shall be, in Bank’s sole discretion, subject to the terms of Company’s Account Agreements.

Hardware and Software. The Mobile Deposit Service currently works with a variety of mobile devices and tablets. Please see www.clearmountain.bank for current hardware specifications. Bank is not responsible for any third-party software Company may need to use the Mobile Deposit Service. Any such third-party software is accepted by Company “as is” and is subject to the terms and conditions of the software agreement Company enters into directly with the third-party software provider at time of download and installation. Company understands and agrees that Company is solely responsible for any Internet, cellular, data download and other charges that Company’s Internet service provider or wireless service provider may impose for Company’s access to the Internet or download of an application to use the Mobile Deposit Service.

Company’s Representations and Warranties. Company represents and warrants to Bank that:

1. Company is the owner or authorized signer of the Deposit Authorized Account(s) that Company registered with the Mobile Deposit Service;
2. Company will not transmit any checks that violate any of the terms of this Agreement;
3. The check images Company transmits using the Mobile Deposit Service will meet the image quality standards required by this Agreement;
4. Company will not transmit any duplicate checks;
5. Company will not deposit or re-present the original check;
6. All information Company provides to Bank in connection with the Mobile Deposit Service is accurate, true and complete; and
7. Company will comply with this Agreement, the Account Agreements, the Cash Management Agreement (if applicable) and applicable law.