Section 1.  THE SERVICE.

These Return Service Terms (the “Service Terms”) set forth the terms under which Customer can manage Returned Checks (defined below), expediting the collection process and increasing the likelihood of recovering payments (the “Service”). The Service is also subject to the General Provisions of the Treasury Management Terms and Conditions Agreement (the “Agreement”) as if fully incorporated herein and all Applicable Laws. In the event of a conflict between these Service Terms and other terms in the Agreement, these Service Terms shall control. Unless otherwise defined herein, any capitalized terms shall have the meaning as set forth in the Agreement. Any reference to the Agreement herein shall be deemed to include these Service Terms.

“Returned Checks” are checks that Customer has deposited into the Account(s) designated by Customer in the Operational Instructions that have been returned to Bank by the paying bank for any reason.  


Bank offers the following options as part of the Service which Customer can select by completing the corresponding section of the applicable Operational Instructions:

Alternate Address and Advice Option. Returned Checks will be mailed to the address provided by Customer in the Operational Instructions along with a standard advice or a cash letter advice, whichever is indicated. An “Advice” is the paper notice a Customer receives regarding a Returned Check.

Extra Advice Copy Option. Extra copies of Advices can be mailed and/or faxed to additional locations as noted in applicable Operational Instructions. Images of Returned Checks will be included if indicated.

Notification Instructions. Bank will fax images of Returned Checks that meet the dollar threshold indicated by Customer each Business Day. Notification can be sent immediately, hourly, or at end of day, each as defined in applicable Operational Instructions.

Redeposit Instructions. Bank will redeposit Returned Checks that were returned due to non-sufficient funds pursuant to Customer’s specifications as indicated in applicable Operational Instructions.

Image Options. If Customer selects Extra Advice Copy Option with images or Notification Instructions, Bank will fax images of the front and/or back of the Returned Check and/or re-deposit, as indicated by Customer in applicable Operational Instructions.

Additional Data Options. Customer can receive a data file of Returned Check information via the File Delivery Channel, with data options and transmission schedule as indicated in the applicable Operational Instructions. 

Online Return Item Viewing. Customer can view online images of Returned Checks through the Channel as indicated in the Operational Instructions.

Consolidated Returns. Customer can use a specialized endorsement to route all Returned Checks to Bank for processing, regardless of where the check was originally deposited. In the Operational Instructions, Customer must designate an Account for settlement of Returned Checks from other banks. Customer must maintain a sufficient balance in such Account to offset the Returned Checks. Customer is responsible for including the specialized endorsement in the form and format required by Bank.