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(i) Checks drawn on banking institutions outside the U.S. or in currencies other than U.S. Dollars; (ii) Irregular checks (e.g., where the numerical and written amounts are different); (iii) Previously -returned checks; (iv) Checks payable to or in cash; (v) Checks exceeding any Customer transaction or file limits as Bank may establish from time to time; and (vi) Checks that are postdated or more than six (6) months old. 3.1.2 The following check types are restricted for use with and may only be processed using the Services with prior approval by Bank (as further described below): (i) Checks payable to a third party (rather than to Customer) (hereinafter "Third Party Checks"); and (ii) Remotely -created checks (or remotely created payment orders deposited into or cleared through the check clearing system) (hereinafter, collectively referred to simply as "remotely -created checks" unless otherwise expressly specified). Notwithstanding the foregoing, under no circumstances may Customer use the Services to deposit any check types that Customer is banned or prohibited from using or accepting under applicable law, including, by way of example only, the use or acceptance by sellers and telemarketers of remotely created payment orders (which include remotely -created checks) as defined and described in the Federal Trade Commission's Telemarketing Sales Rule. 3.2 Third Party Checks. Customer shall request approval from Bank prior to any use of the Services to process Third Party Checks, which permission Bank may grant or refuse in its sole and exclusive discretion. Such use of the Services and the scope of permitted Third Party Checks may be limited or restricted by Bank in its sole and exclusive discretion, including without limitation to those Third Party Checks that have been properly endorsed over to Customer as further described below. 3.2.1 If approved to use the Services to process Third Party Checks, Customer shall make the following additional representations and warranties upon each delivery to Bank of an Electronic File (as defined below) containing Third Party Checks: (i) All endorsement(s) on the original Third Party Checks are legible, genuine and accurate; Customer has instituted procedures to ensure that each original Third Party Check was authonzed by the drawer in the amount stated on the original Third Party Check and to the payee(s) stated on the original Third Party Check; Each Third Party Check contains all endorsements applied by the prior payee(s) stated on the original Third Party Check and has been properly endorsed by such payee(s) for payment over to Customer; Customer is authorized to enforce each Third Party Check that is transmitted to Bank using the Services, and Customer is authonzed to obtain payment of and each Third Party Check is properly payable to and enforceable by Customer; Consistent with the terms of this Appendix as well as the Account Agreement, if a Third Party Check is returned, Customer owes Bank the amount of the Third Party Check, regardless of when the Third Party Check is returned. Bank may withdraw funds from Customer's Account to pay the amount owed to Bank, and if there are insufficient funds in Customer's Account, Customer will owe the remaining balance; and Except where otherwise provided, all other provisions of this Appendix shall apply to Third Party Checks and to Customer's use of the Services in conjunction with Third Party Checks. 3.3 Remotely -Created Checks. A remotely -created check, unlike a typical check or draft, is not created by the paying or drawer bank and does not contain the signature of the account -holder (or a signature purporting to be the signature of the account -holder). In place of a signature, the check generally has a statement that the account -holder authonzed the check or has the account -holder's name typed or printed on the signature line. Customer shall request approval from Bank prior to any use of the Services to process remotely -created checks, which permission Bank may grant or refuse in its sole and exclusive discretion. Such use of the Services and the scope of permitted remotely -created checks may be limited or restricted by Bank in its sole and exclusive discretion, and/or by applicable law 3.3.1 If approved to use the Services to process remotely -created checks, Customer shall be deemed to make the following additional representations and warranties upon each delivery to Bank of an Electronic File containing remotely -created checks: (i) Customer has received express and verifiable authorization to create the check in the amount and to the payee that appears on the check; (ii) Customer will maintain proof of the authorization for at least two (2) years from the date of the authorization, and supply Bank with such proof, if Bank requests it, within five (5) Business Days of the request; and (iii) Consistent with the terms of this Appendix as well as the Account Agreement, if a remotely -created check is returned, Customer owes Bank the amount of the check, regardless of when the check is returned. Bank may withdraw funds from Customer's Account to pay the amount owed to Bank, and if there are insufficient funds in Customer's Account, Customer will owe the remaining balance. NC 4814.6754-1549 41 of 58 022016 P55