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NO Non -Conforming Check means any cheek presented for payment to Bank which does not bear all information required for a Conforming Check. b) In connection with Same Day Positive Pay and Next Day Positive Pay, Customer shall deliverto the Bank the Issue File, or update thereto, by data transmission to the Bank prior to disbursing checks to payees. In the event that the Customer cannot generate the Issue File, the Customer is responsible for notifying Bank Issue Files received by 7:30 AM CST/CDT on the date of check(s) disbursement will be loaded and available for Teller Positive Pay System. In determining which of the Customer's checks drawn on the Bank have been duly issued, all items presented over -the counter on Same Day Positive Pay and Next Day Positive Pay accounts will be subject to verification from the Customer's Issue File through Bank's Teller Positive Pay system. If the item presented for payment over-the-counter is determined by Bank to be a Non -Conforming Check in any respect, the item presented will not be honored aid the transaction will be terminated. Non -Conforming Checks presented over-the- counter are not subject to the notification and pay/return decision procedures otherwise described herein for Non -Conforming Checks, c) Any Conforming Check presented to Bank shall be deemed properly payable with respect to the Customer's signature and the amount of the check, and in the case of over-the-counter transactions through Bank's Teller Positive Pay System where Customer has famished payee names in the Issue File, or if Customer has elected the Payee Name Verification service, also with respect to the payee. The Bank shall be under no obligation to verify the Customer's signature or the absence of any alterations thereon. Likewise, the Bank shall be under no obligation to verify the payee name on the check in comparison with the Customer's Issue File except in the case of over-the-counter transactions through Bank's Teller Positive Pay System where Customer has furnished payee names in the Issue File, or where Customer has elected the Payee Name Verification service. d) In the event a Non -Conforming Check is presented to the Bank (other than presentment over-the-counter), Bank shall notify the Customer by facsimile transmission or online of such Non -Conforming Check. For Same Day Positive Pay, the Bank's notice shall be given by 3:30pm CST/CDT on the day of presentment of the Non-Conforaing.Check For NextDay Positive Pay, the Bank's notice shall be given by 10:00am CST/CDT on the next banking day following posting of the check. If Bank systems or communications failure occurs, the Bank may notify the Customer by telephone. The Customer shall instruct the Battik to Pay or Return (No Pay) the Non -Conforming Check(s) at the following times: 1. For SameDay Positive Pay Customers - no later than 1:00 p.m. CST/CDT on the next banking day after the Bank's notification to Customer. 2. For NextDay Postdve Pay Customers - no later than 2:00 p.m. CST/CDT on the same day of the Bank's notification to Customer. Customer's instructions shall be delivered according to the elections in the Service Schedule. If Customer has elected to deliver instructions via iTreasury, and if iTreasury is inoperable, Customer may deliver instructions via fax (205-261-6449) or via telephone (800-787-3905). Absent any contrary timely instruction from the Customer, and subject to any default elections made in the Service Schedule, the Bank will pay the Non- ConformingCheWs), and, in so doing, the Bank shall incur no liability to Customer for improperly paying the item(s). Paid items) omitted from the Customer Issue File will be subject to a paid -no -issue fee per items) paid. Customer agrees that if Bank acts in accordance with the procedures set forth in this Article and the Service Setup in paying or retunhifig item(s), Bank will be deemed tohave exercised ordinary care. e) Notwithstanding any term or provision herein to the contrary, if Customer has elected the Payee Name Verification service, Customer acknowledges and agrees that Bank will not verify a check payee name in the event a presented check is deemed a Non -Conforming Check due to a discrepancy in either the encoded check serial number or the encoded amount. In such cases, Customer shall bear any and all risk of payee name mistake or alteration in the event Customer's instructions call for Bank to pay the Non -Conforming Check f) In order to stop payment on a check included in the Issue File, the Customer shall deliver a stop payment order via telephone, iTreasury, or in writing priorto the presentment ofthe item. A cancel or void in the Issue File should only be used if a check has not been disbursed. Bank's system will not recognize cancels as stop payments. If a stop payment order is placed after an item has been memo posted to Banks -system, the stop payment will not be placed. Stop payment orders are subject to the terms and conditions ofthe deposit agreement governing Customer's account g) In connection with Same Day Positive Pay or Next Day Positive Pay, Customer may elect Stale Date Verification whereby Customer may request that the Bank return unpaid any checks which are presented for payment a specified number of days following the date listed on the Customer's check(s). Customer must specify the number of days Customer selects in the Service Schedule. All checks presented for payment after the selected number of days following the date shown on the check will be retuned as "refer to maker" until this service is cancelled by the Customer. The Bank is not obliged to honor any stale date notice on the Customer's check unless the Customer has selected Stale Date Verification. Any claimed loss from the payment of checks not in accordance with the time limits listed by Customer in the Service Schedule will be governed by the same legal principles as those concerning improper payment over a binding stop payment. 24 of 29 P63