Common use of Item Processing Services Clause in Contracts

Item Processing Services. Aurum shall provide the following Basic Services to Customer: (a) Back Office Services -------------------- (i) Image Item Capture - POD/Proof and Transit ------------------------------------------ Aurum will digitize and capture the black and white images of the front and back of each Pre-encoded Item and each Over-the-Counter Item and assign a batch and sequence number to each Item. Outgoing cash letters will be prepared in accordance with Customer's cash letter requirements, which may change from time to time. As an Additional Service, Items for cash letter endpoints greater than twelve (12) will be re-passed and prepared in accordance with Customer's cash letter requirements, which may change from time to time. Aurum will complete the transmission of an Item Posting File containing all Over-the-Counter Items to Customer's Data Processing Services Provider by the timeframe documented in Section VII, Processing Times. (ii) Image Item Capture - Inclearings -------------------------------- Aurum will receive Customer's Inclearing cash letter from the Federal Reserve Bank or other financial institution and balance the Items to the cash letter amount. Aurum will digitize and capture black and white images of the front and back of each Item and assign a sequential trace number, which becomes a part of the Inclearing transaction. Items rejected from the capture will be corrected and re-entered. When all Inclearing Items are captured and balanced an Item Posting File containing all Inclearing Items will be created for transmission to Customer's Data Processing Services Provider. When required, Aurum will capture and outsort Inclearing Items creating cash letters for financial institutions who are end-customers of Customer or end-customers who utilize payable through draft processing. Aurum will complete the transmission of an Item Posting File containing all Inclearing Items to Customer's Data Processing Services Provider no later than timeframe detailed on Section VII, Processing Times. The daily incoming cash letter will be reconciled to the dollar amount charged by the Federal Reserve Bank or other financial institution. All cash letter differences, missing items, extra items, etc., will be reconciled and the proper balancing reports and/or entries will be prepared. All errors detected during the incoming cash letter process are to be adjusted the same Business Day. Aurum will notify Customer of all same day settlement adjustments prior to 14:30 on the Business Day of presentment. Aurum will provide Customer with copies of all adjusting entries that are prepared and the supporting documentation substantiating the adjustment. This documentation will be packaged and made available for pickup by Customer or Customer's courier prior to 18:00 the Business Day of presentment. (iii) Image Item Capture - Low Speed Repair ------------------------------------- Aurum will electronically repair and may physically repair the MICR Rejects.

Item Processing Services. Aurum shall provide the following Basic Services to Customer: (a) Back Office Services --------------------INCLEARING SERVICES (i) Image Inclearing Item Capture Aurum will receive Customer's Inclearing cash letter from the Federal Reserve Bank or other financial institution and balance the Items to the cash letter amount. Aurum will digitize and capture black and white images of the front and back of each Item, endorse each item and assign a sequential trace number, which becomes a part of the Inclearing transaction. Items rejected from the capture will be corrected and re-entered. When all Inclearing Items are captured and balanced an Item Posting File containing all Inclearing Items will be created for transmission and memo posting to Customer's Data Processing Services Provider. When required, Aurum will capture and outsort Inclearing Items creating cash letters for financial institutions who are end-customers of Customer or end-customers who utilize payable through draft processing. SCHEDULE A BASIC SERVICES (ii) Inclearing Item Posting File Transmission Aurum will complete the transmission of an Item Posting File containing all Inclearing Items to Customer's Data Processing Services Provider no later than 17:30 on Monday and 18:00 on Tuesday through Friday. Memo posting of Inclearings Item Posting File will be completed 2 hours after receipt of Inclearings Item Posting File from the Federal Reserve Bank. (iii) Incoming Cash Letter Balancing The daily incoming cash letter will be reconciled to the dollar amount charged by the Federal Reserve Bank or other financial institution. All cash letter differences, missing items, extra items, etc., will be reconciled and the proper balancing reports and/or entries will be prepared. Aurum will prepare Customer provided adjustment entries for all differences greater than $2.00. The adjusting entry will be image captured and inserted into the entry run. For differences of $2.00 or less the adjusting debit or credit entry will be processed to the Customer's designated general ledger account. A Customer provided adjustment entry will not be prepared for this difference. In such instances, Aurum will provide source of receipt to Customer. All errors detected during the incoming cash letter process are to be adjusted the same Business Day. Aurum will notify Customer of all same day settlement adjustments prior to 14:00 on the Business Day of presentment. Aurum will provide Customer with copies of all adjusting entries that are prepared and the supporting documentation substantiating the adjustment. This documentation will be packaged and made available for pickup by Customer or Customer's courier prior to 15:00 the Business Day of presentment. (b) EXCEPTION ITEM PROCESSING (i) Exception Item File Transmission By 04:30 the morning of each Tuesday, 03:30 the morning of each Wednesday through Friday, 06:30 on Saturday and 05:30 on Business Days following Customer holidays, the transmission of Customer's complete Account Exception Item File from Customer's Data Processing Services Provider to Aurum will be completed. (ii) Cycle Sort/Exception Item Pull Aurum will make images of Exception Items available for Customer review and extraction by 07:00 each day Monday through Saturday and Exception Items available for pickup by Customer or Customer's courier by 07:30 on Monday and Wednesday through Friday, 09:30 on Tuesday and 10:30 the Business Day following a holiday. SCHEDULE A BASIC SERVICES (iii) Outgoing Return Item Processing Items designated by the Customer as Return Items will be returned by Aurum to the Federal Reserve Bank the same Business Day; provided Customer has met the applicable Aurum Return Item deadline. Items to be returned by Aurum will be marked in accordance with Federal Reserve regulations. After Customer has reviewed its exception item reports and made the necessary pay/no-pay decisions, Customer's Data Processing Services Provider will complete transmission of a file in a format mutually agreed to by the parties containing all Return Item requests with reason for return by 14:00 each Business Day for Items captured the previous Business Day. Aurum will out sort, balance to Customer provided control total and properly stamp each Item to be returned with the Customer's designated reason, and prepare the Return Item cash letter to be picked up by the Customer or Customer's courier for delivery to the Federal Reserve Bank by 22:00 each Business Day. Such Items to be returned will be contained in a file transmitted by Customer's Data Processing Service Provider. One cash letter copy is to be retained by Aurum and one copy will be forwarded to Customer. Aurum will qualify each Return Item in accordance with Regulation "CC" specifications; provided that the applicable Return Item deadline has been met by Customer. (iv) Large Item Notification Upon at least ten (10) days prior written notice from Customer, Aurum will begin to notify the financial institution of first deposit of all dishonored checks for $2,500.00 or more, or other amount to remain in compliance with Regulation CC and any other applicable federal laws and regulations. By 23:59 of each Business Day, Aurum will have completed transmission of large item notifications for those items requiring them that were presented the previous Business Day. By 08:00 of the Business Day following dispatch of the return item cash letter and transmission of the large item notification, Aurum will make a report of all large item notices processed on the previous Business Day available for pickup by Customer or Customer's courier. (v) Change Disposition Aurum will pay or return Change Disposition Items in accordance with Customer's instructions. (c) OVER-THE-COUNTER ITEM PROCESSING (i) Over-the-Counter Item Processing Aurum will receive unencoded and pre-encoded proof work processed at Customer's and Customer's end customer locations in accordance with mutually agreed upon delivery time. Aurum will proof each transaction and encode the dollar amount of each unencoded Transit Item and Customer defined on-us Items. Proof corrections detected by Aurum will be available for pickup by Customer or Customer's courier by 07:00 the Business Day following the day of presentment. Teller balancing tapes and tapes accompanying deposits will be included in the daily work sent to Aurum by Customer, and Aurum will make said balancing tapes and item processing Exception Items such as debits or credit Items without offsets or Items from unbalanced transactions remaining at the end of each Business Day's processing available for pickup by Customer or Customer's courier by 07:00 the Business Day following the day of presentment. All Unencoded Items delivered to Aurum by the required delivery deadline will be processed to meet Customer's outgoing correspondent cash letter deadline; provided, however, that Aurum shall have at least three (3) hours to process unencoded work and three (3) hours to process pre-encoded work. Aurum will make best reasonable efforts to handle Customer's work received after the required deadline. SCHEDULE A BASIC SERVICES (ii) Proof Corrections Aurum will prepare proof corrections to Customer's end-customer on electronic forms for reasons including but not limited to: a) Error(s) found in addition or subtraction b) Check Item was listed for the wrong amount c) Tape total was listed incorrectly d) Check Item listed was not enclosed e) Check item enclosed, not listed f) Cash not included in deposit total g) Tape total not listed in deposit h) Collections not included in deposit i) Non-Negotiable Item in deposit j) Items drawn on foreign institutions Aurum will prepare proof corrections to Customer's designated general ledger account on electronic forms for reasons including but not limited to: a) Cash ticket missing b) Cash ticket for wrong amount c) Wrong cash ticket used d) Currency included in work e) Cashed check Item missing f) Cashed check Item enclosed was not listed g) Cashed check Item for wrong amount h) Other miscellaneous correction i) Items drawn on foreign institutions Any debit or credit deposit adjustment of $2.00 or less (said dollar amount may reasonably be adjusted over time, based on Customer requirements) will be charged to a sundry general ledger account, to be identified by Customer using a system generated electronic entry. Any debit or credit deposit adjustment of more than $2.00 (said dollar amount may reasonably be adjusted over time, based on current industry standard practices) will be charged to Customer's end-customer or Customer's designated general ledger account using electronic forms. All errors detected during the Over-the-Counter process are to be adjusted the same day. Copies of adjustments will be distributed as follows: - POD/Proof Original will be processed with the proof transactions; and Transit ------------------------------------------ - Offsetting side of the entry will be sent to the Customer for processing. (iii) Aurum Amount Recognition Aurum will electronically pass all captured Unencoded Items through Aurum amount recognition (AAR) software for the purpose of interpreting the courtesy amount. (iv) Image Base Key Entry Aurum will complete the electronic dollar amount information record from the MICR line for those items not recognize by AAR software. (v) Power Encode Aurum will process items through a transport that automatically encodes MICR data onto a percentage of the items without an operator keying each item. SCHEDULE A BASIC SERVICES (vi) Over-the-Counter Capture Aurum will digitize and capture the black and white images of the front and back of each Over-the-Counter Item, endorse each Item and assign a batch and sequence number to each Item. (vii) Pre-encoded Item Capture Aurum will digitize and capture the black and white images of the front and back of each Pre-encoded Item and Item, endorse each Over-the-Counter Item and assign a batch and sequence number to each Item. . (viii) Image Reject Re-entry Aurum will complete or correct the electronic information record from the MICR line. (ix) Over-the-Counter Item Posting File Transmission Aurum will complete the transmission of an Item Posting File containing all Over-the-Counter Items to Customer's Data Processing Services Provider no later than 23:00 on Monday through Thursday, 24:00 on Friday and 24:00 on Business Days following Customer holidays. (x) Cash Letters Outgoing cash letters will be prepared in accordance with Customer's cash letter requirements, which may change from time to time. As an Additional Service, Items for cash letter endpoints greater than twelve (12) will be re-passed and prepared in accordance with Customer's cash letter requirements, which may change from time to time. . (d) ITEM STORAGE, ARCHIVE AND ACCESS (i) Warehousing and Bulk File Aurum will complete the transmission of an Item Posting File containing all Over-the-Counter store Items by cycle and date according to Customer's Data Processing Services Provider by the timeframe documented statement cycle definitions in Section VII, Processing Timesa secure environment. (ii) Image Item Capture - Inclearings -------------------------------- Aurum will receive Customer's Inclearing cash letter from Conventional Statement Fine Sort At cycle time the Federal Reserve Bank or other financial institution and balance the cycled Items to the cash letter amount. Aurum will digitize and capture black and white images of the front and back of each Item and assign a sequential trace number, which becomes a part of the Inclearing transaction. Items rejected from the capture will be corrected and re-entered. When all Inclearing Items are captured and balanced an Item Posting File containing all Inclearing Items will be created scheduled for transmission return to Customer's Data Processing Services Providerend-customer will be fine sorted by account number in preparation for statement rendition. When required, Rejects from the fine sort process will be manually filed. (iii) Daily Item Fine Sort On a daily basis Aurum will capture fine sort internal Customer documents, including but not limited to: loan Items, general ledger Items and outsort Inclearing savings Items creating cash letters for financial institutions who are end-customers of Customer into amount or end-customers who utilize payable through draft processingAccount number order. Aurum will complete Daily fine sorted Items from the transmission of an Item Posting File containing all Inclearing Items to Customer's Data Processing Services Provider no later than timeframe detailed on Section VII, Processing Times. The daily incoming cash letter will be reconciled to the dollar amount charged by the Federal Reserve Bank or other financial institution. All cash letter differences, missing items, extra items, etc., will be reconciled and the proper balancing reports and/or entries will be prepared. All errors detected during the incoming cash letter process are to be adjusted the same Business Day. Aurum will notify Customer of all same day settlement adjustments prior to 14:30 on the Business Day of presentment. Aurum will provide Customer with copies of all adjusting entries that are prepared and the supporting documentation substantiating the adjustment. This documentation will be packaged and made available for pickup by Customer or Customer's courier prior to 18:00 by 08:30 the Business Day following the day of presentment. (iiiiv) Original Item Storage Aurum will retain in a secure environment the Items not returned in Customer's end-customer statements in their original media for one (1) calendar month and then return the Items to the Customer or make the Items available for pickup by the Customer or a Customer designated agent. SCHEDULE A BASIC SERVICES (v) Image Item Capture - Low Speed Repair ------------------------------------- Storage and Archive Aurum will electronically repair retain the Item Images on redundant arrays of independent disk (RAID) storage for ninety (90) Calendar Days. Prior to the expiration of the ninety (90) day RAID storage period, Aurum will transfer the Item Images to optical disk, DVD-ROMs, CD-ROM(s) or comparable storage media for near-line storage in a jukebox provided by Customer as per Aurum specifications that will be maintained by Customer at Customer's expense for retention at Customer's location(s). Aurum will also create a duplicate copy of each optical disk, DVD-ROM, CD-ROM or comparable media for Customer's off-site storage. (vi) Image Workstation Access and Retrieval Aurum will grant a license to Customer to use the applicable computer software, under which license Customer may physically repair use such applicable computer software to retrieve Item Images by utilizing Customer's equipment and telecommunications circuitry to access the MICR RejectsRAID V located at the Aurum Data Center and optical disk, DVD-ROMs, CD-ROMs or comparable storage media located at Customer's location(s). Included in the Basic Services, Aurum will provide access to Item Images for five (5) concurrent Customer sessions with access software, which may be installed on up to twenty-five (25) Customer workstations. (e) STATEMENT PRINTING, RENDITION AND MAILING (i) Conventional Statement Printing Aurum will receive one or more conventional statement print files in a format mutually agreed to by the parties from Customer's Data Processing Service Provider by 04:00 on the first Business Day following the Statement Cycle Date. Customer's Data Processing Service Provider will provide Aurum with one or more segregated print files for end-customer statements in a format mutually agreed to by the parties targeting the following segregation categories: (a) with Item enclosures less than fifty-four (54), (b) with Item enclosures fifty-four (54) or greater; (c) zero Item enclosure; and (d) special request statements. Aurum will print end-customer statements in simplex or duplex mode as is mutually agreed to by Customer and Aurum. The print quality will be consistent with that required by automated ZIP code sorting equipment and acceptable to Customer, Aurum and Customer's ZIP code sort vendor. (ii) Conventional Statement Rendering - Automated Handling Aurum will match the boxes of sorted checks with the printed statements. Each box of checks is inspected to ensure that the first check's account number matches the first statement's account number and that the last check's account number matches the last statement's account number. For statements with less than fifty-four (54) Item enclosures, Aurum will use an insertion machine to read the intelligent insertion marks or bar code imprinted on the statement and match this count against the number of Items and printed pages presented. If the counts match, the machine inserts the Items, statement and any inserts into a Customer provided standard window envelope that is of a quality consistent with that required by automated Statement Rendering equipment and acceptable to Customer and Aurum, seals the envelope and applies the proper pre-sort first class postage so that the envelope can be released to the ZIP code sort vendor. Statements fifty-four (54) or more Items are non-machineable and are rendered manually by Aurum. Aurum will review fine sort reject Items and where possible resolve Item count discrepancies prior to categorizing a statement as a Crippled Statement. If any Item count discrepancy cannot be resolved, Aurum will follow Customer's written instructions for statement handling; such instructions to be mutually agreed to in advance for statement handling. SCHEDULE A BASIC SERVICES (iii) Conventional Statement Rendering - Manual Handling Aurum will manually render conventional statements that do not qualify for automated rendering due to excessive physical page count (greater than nine (9)) or excessive Item count (fifty-four (54) or more)) will count all Items and match this count against the number of enclosures indicated on the statement. If the count matches, Aurum will insert the statement, Items and any inserts into a Customer provided envelope that is acceptable to Customer and Aurum, seal the envelope, and release the envelope to the ZIP code sort vendor. Aurum will review fine sort reject Items and where possible resolve Item count discrepancies prior to categorizing a statement as a Crippled Statement. If any Item count discrepancy cannot be resolved, Aurum will follow Customer's wr