Mobile Remote Deposit Capture User Agreement (“Agreement”)

This agreement contains the terms and conditions for the use of Savings Institute Bank & Trust’s SIBT Mobile Deposit service that Savings Institute Bank & Trust or its affiliates (“SIBT”, “us”, “we”, “our”, or “Bank”) may provide to you (“you”, “your”, “user”, or “Customer”). Other agreements you have entered into with SIBT, including without limitation the deposit account agreement governing your SIBT deposit account(s), continue to apply. In the event of a conflict between this Agreement and any other agreement you have entered into with SIBT, this Agreement shall govern.

  1. Services. The remote deposit capture services described in this Agreement (the “Service” or “Services”) are designed to allow you to make deposits to your checking, money market or savings accounts by capturing images of certain paper checks (each a “Check” and, if more than one, “Checks”) with your camera-enabled mobile device and delivering such images and any associated deposit information to SIBT or SIBT’s designated processor. The Service does not accept Checks for payment to SIBT for loans, overdrafts, fees, or monies owed.  The device must capture an image of the front and back of each Check to be deposited in accordance with the Procedures; must read and capture the magnetic ink character recognition (“MICR”) line on each Check; and must read and capture all such other data and information as is required by this Agreement or Federal Reserve regulations for the processing of these Checks for payment. There is currently no charge for the Services.

  2. Acceptance of these Terms. Your use of the Services constitutes your acceptance of this Agreement. This Agreement is subject to change from time to time. We will notify you of any material change via email or on our website(s) by providing a link to the revised Agreement.  Your continued use of the Services will indicate your acceptance of the revised Agreement. Further, SIBT reserves the right, in its sole discretion, to change, modify, add or remove portions of the Services. Your continued use of the Services will indicate your acceptance of any such changes to the Services. In the event that an immediate change is needed to ensure the security of the Services, we will post a notice of any such change on our website. You may choose to accept or decline such changes by continuing or discontinuing the Services.

  3. Eligibility Requirements.  . You must have a checking account, money market account or savings account at SIBT.  You must sign up for and maintain Online Banking from the Savings Institute Bank & Trust.

  4. Limitations of Services. When using the Services, you may experience technical or other difficulties, including unavailability of the Services. We shall not be responsible for any technical or other difficulties or any resulting damages that you may incur. We may impose qualification requirements on use of the Services, and we reserve the right to change the qualifications at any time without prior notice. We reserve the right to change, suspend or discontinue the Services, in whole or in part, or your use of the Services, in whole or in part, immediately and at any time without prior notice to you.

  5. Eligible Items. You agree to scan and deposit only paper checks, as defined in Federal Reserve Regulation CC (“Reg CC”). You agree that the image of each Check transmitted to SIBT shall be deemed an “item” within the meaning of Article 4 of the Uniform Commercial Code as adopted in Connecticut and Rhode Island (such scanned Check image transmitted to SIBT for credit to your account, a “Remote Item”). You agree that you will not use the Services to scan and deposit Checks or items that: (a) are payable to any person or entity other than you; (b) are drawn or otherwise issued by you or any other person on any of your accounts or any account on which you are an authorized signer or joint account holder; (c) contain obvious alteration to any of the fields on the front of the Check or item, or which you know or suspect, or should know or suspect, are fraudulent or otherwise not authorized by the owner of the account on which the Check or item is drawn; (d) were previously converted to a substitute check as defined in Reg CC without SIBT’s prior written consent; (e) were previously converted to an image replacement document as defined in Reg CC without SIBT’s prior written consent; (f) are drawn on a financial institution located outside the United States; (g) are remotely created checks, as defined in Reg CC; (h) are not payable in United States currency; (i) are dated more than six (6) months prior to the date of deposit; (j) are prohibited by the SIBT deposit account contract governing your deposit accounts at SIBT; (k) are in violation of any federal or state law, rule, or regulation; or (l) are otherwise not acceptable under the terms of your SIBT account; (m) Checks that have previously been submitted through the Service or through a remote deposit capture service offered by any other financial institution. (Checks described in clauses (a) through (m) are each a “Prohibited Check” and, collectively, “Prohibited Checks”).

  6. Image Quality. The image of an item transmitted to SIBT using the Services must be legible and contain images of the front and back of the Check. The image quality of the items 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, or any other regulatory agency, clearing house or association. These requirements include, but are not limited to, ensuring the following information can clearly be read and understood by sight review of the Check image: the amount of the Check (both written and numeric); the payee; the signature of the drawer (maker); the date; the Check number; the information identifying the drawer and the paying financial institution that is preprinted on the Check including the MICR line; and all other information placed on the check prior to the time  an image of the Check is captured (such as any required identification written on the front of the Check and any endorsements applied to the back of the Check).

  7. Endorsements and Procedures. You agree to restrictively endorse any item transmitted through the Services as “For mobile deposit only, SIBT account#____” or as otherwise instructed by SIBT. You agree to follow any and all other procedures and instructions for use of the Services as SIBT may establish from time to time.

  8. Receipt of Items. We reserve the right to reject any item transmitted through the Services, at our discretion, without liability to the Bank. We are not responsible for items we do not receive or for images that are dropped during transmission. An image of an item shall be deemed received when you receive a confirmation from SIBT through the Service that we have received the image. Receipt of such confirmation does not mean the transmission was error free or complete. Following receipt of such confirmation, SIBT may process the image by preparing a “substitute check” or clearing the item as an image.

  9. Availability of Funds. You agree that items transmitted through the Services are not subject to the funds availability requirements of Federal Reserve Board Regulation CC. Funds deposited using the Services will be available after SIBT receives final payment for the funds submitted. SIBT may, but is not required to, make such funds available sooner.

  10. Disposal of Transmitted Items. Upon your receipt of a confirmation from SIBT that we have received the image of an item, you agree to prominently mark the item as “Electronically Presented” or “VOID” and to properly dispose of the item to ensure that it is not represented for payment. You also agree never to represent the item. You will promptly provide any retained item, or a sufficient copy of the front and back of the item, to SIBT as requested to aid in the clearing and collection process, to resolve claims by third parties with respect to any item, or for SIBT’s audit purposes.

  11. Deposit Limits. We reserve the right to impose limits on the amount(s) and/or number of deposits that you transmit using the Services and to modify such limits from time to time. Unless otherwise specified by SIBT, changes to such limits shall be effective immediately upon notice to you via email or the SIBT website.  The following are the current deposit limits:

    Account Deposit Limits

    All Accounts
             $3,000.00 Daily           $6,000.00 monthly

    Any misuse of the service may result in the inability to use the mobile deposit feature.

  12. Hardware and Software. In order to use the Services, you must obtain and maintain, at your expense, compatible hardware and software as specified by SIBT from time to time. SIBT is not responsible for any third party software you may need to use the Services. Any such software is accepted by you as is and is subject to the terms and conditions of the software agreement you enter into directly with the third party software provider at time of download and installation.  We may limit access to the Services to certain types, makes and models of mobile devices.

  13. Contingency Plan. In the event you are unable to capture, balance, process, produce or transmit a file to SIBT, or otherwise comply with the terms of this Agreement or your deposit account agreement for any reason, including but not limited to, communications, equipment or software outages, interruptions or failures, you will transport or mail the originals of all Checks to the closest SIBT location. The deposit of original Checks at an office of SIBT shall be governed by the terms and conditions of the deposit account agreement governing your account(s) and not by the terms of this Agreement.

  14. Errors. You agree to notify SIBT of any suspected errors regarding items deposited through the Services right away, and in no event later than sixty (60) days after the applicable SIBT account statement is sent. Unless you notify SIBT within sixty (60) days, such statement regarding all deposits made through the Services shall be deemed correct, and you are prohibited from bringing a claim against SIBT for such alleged error.

  15. Presentment. The manner in which the items are cleared, presented for payment and collected shall be in SIBT’s sole discretion subject to the deposit account agreement governing your SIBT deposit account(s).

  16. Ownership and License. You agree that SIBT retains all ownership and proprietary rights in the Services, associated content, technology and website(s). Your use of the Services is subject to and conditioned upon your complete compliance with this Agreement. Without limiting the effect of the foregoing, any breach of this Agreement immediately terminates your right to use the Services. Without limiting the restriction of the foregoing, you may not use the Services (i) in any anti-competitive manner, (ii) for any purpose which would be contrary to SIBT’s business interest, or (iii) to SIBT’s actual or potential economic disadvantage in any aspect. You may not copy, reproduce, distribute or create derivative works from the content and agree not to reverse engineer or reverse compile any of the technology used to provide the Services.

  17. DISCLAIMER OF WARRANTIES. YOU AGREE YOUR USE OF THE SERVICES AND ALL INFORMATION AND CONTENT (INCLUDING THAT OF THIRD PARTIES) IS AT YOUR RISK AND IS PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS. WE DISCLAIM ALL WARRANTIES OF ANY KIND AS TO THE USE OF THE SERVICES, WHETHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. WE MAKE NO WARRANTY THAT THE SERVICES (i) WILL MEET YOUR REQUIREMENTS, (ii) WILL BE UNINTERRUPTED, TIMELY, SECURE OR ERROR-FREE, (iii) OR THAT THE RESULTS THAT MAY BE OBTAINED FROM THE 52314650 v4 SERVICES WILL BE ACCURATE OR RELIABLE, (iv) OR THAT ANY ERRORS IN THE SERVICES OR TECHNOLOGY WILL BE CORRECTED.

  18. LIMITATION OF LIABILITY. YOU AGREE THAT WE WILL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES, INCLUDING, BUT NOT LIMITED TO DAMAGES FOR LOSS OF PROFITS, GOODWILL, USE, DATA OR OTHER LOSSES INCURRED BY YOU OR ANY THIRD PARTY ARISING FROM OR RELATED TO THE USE OF, INABILITY TO USE, OR THE TERMINATION OF THE USE OF THE SERVICES, REGARDLESS OF THE FORM OF ACTION OR CLAIM (WHETHER CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE), EVEN IF SIBT HAS BEEN INFORMED OF THE POSSIBILITY THEREOF.

  19. User Warranties and Indemnification. With respect to each and every Check you use to create an image using the Services and every Remote Item you transmit to SIBT, you represent and warrant to SIBT that: (a) you assume responsibility for any Check that is transmitted which for any reason is not paid; (b) you are a person entitled to enforce the Check; (c) neither the Check nor the Remote Item is counterfeit; (d) neither the Check nor the Remote Item has been altered; (e) neither the Check nor any image of the Check has been paid; (f) no depository bank, drawee, drawer, or endorser will receive presentment or return of, or otherwise be charged for, an item transmitted as a Remote Item, or any Check or item derived from such Remote Item, such that said person will be asked to make a payment based on an item that it has already paid; (g) the Customer shall properly endorse each Check and deposit said Check to an account at Bank that matches the name of the Customer; (h) the Customer shall deposit only Checks made payable to the Customer; (i) neither the Check nor the image of such Check is subject to a defense or claim in recoupment that can be asserted against the Customer; (j) the Customer has no knowledge of any insolvency proceeding commenced with respect to the Customer or in the case of an unaccepted Check, the drawer; (k) all information provided by the Customer to the Bank is accurate and true; (l) files submitted by the Customer to the Bank do not contain computer viruses or malware; (m) the Remote Item is a digitized image of the front and back of the Check and accurately represents all of the information on the front and back of the Check as of the time Customer converted the Check to a Remote Item; (n) the Remote Item contains all endorsements applied by parties that previously handled the Check in any form for forward collection or return; (o) each of the Checks were duly authorized in the amount stated on the corresponding Remote Item and to the payee stated on such Remote Item; (p) the Bank will not suffer any loss as a result of Customer’s retention or destruction of the paper originals of Remote Items; and (q) the Customer has performed and will perform all of its obligations under this Agreement.

    The Customer shall be deemed to repeat and reaffirm each of the foregoing representations and warranties at the time any Check and/or Remote Item is delivered to the Bank through the Services. You agree to indemnify and reimburse SIBT for, and hold harmless SIBT from and against, any and all losses, costs, and expenses (including reasonable attorney’s fees) SIBT may incur associated with any breach of the warranties, representations, or obligations contained in this Agreement, including but not limited to, the deposit of one or more Prohibited Checks into your account. Furthermore, if, after first having obtained SIBT’s written consent to do so, you provide SIBT with an electronic representation of a substitute check for deposit into an account instead of an original Check, you agree to indemnify and reimburse SIBT for, and hold SIBT harmless from and against, any and all losses, costs and expenses (including reasonable attorney’s fees) SIBT incurs because any such substitute check resulting from such electronic representation does not meet applicable substitute check standards and/or causes duplicate payments.

  20. General Terms and Conditions.
    a. Assignment. You may not assign this Agreement.

    b. Governing Law
    . This Agreement is governed by, and shall be construed in accordance with, the laws of the State of Connecticut or the State of Rhode Island, except that any conflict of laws rule of that jurisdiction that may require reference to the laws of some other jurisdiction shall be disregarded. Any lawsuit brought to enforce any provision of this Agreement shall only be brought in a state court in Connecticut or Rhode Island.

    c. Severability
    . If one or more provision(s) of this Agreement is or are held to be invalid, illegal or unenforceable under applicable law, the offending portions of such provisions, or such provisions in their entirety, to the extent necessary, shall be severed from this Agreement, and the balance of this Agreement shall be enforceable in accordance with its terms.

    d. Contact by Bank
    . No Bank employee, or any company affiliated with SIBT, will contact you via e-mail or phone requesting your account information or security information. If you are contacted by anyone requesting this information, please contact us immediately.

    e. Security Interest
    . You grant SIBT a security interest in all accounts or other deposits (whether general or special) you have with SIBT, and in all funds in such accounts or other deposits, to secure your obligations to SIBT under this Agreement. This security interest will survive termination of this Agreement. In addition to any other rights we may have under law or other agreements we have with you, we may hold any funds on deposit with us by you after termination of this Agreement for up to 14 calendar days following the expiration of any return or chargeback rights regarding any Remote Item processed by SIBT using the Services or, if later, until any other claims to such funds have expired.

    f. Waivers
    . Any waiver by us must be in writing to be effective. Our waiver of any right will not be deemed a waiver of other rights or of the same right at another time.

    g. Headings
    . The headings set forth in this Agreement are for convenience only and will not control or affect the meaning or construction of the provisions of this Agreement.

    By clicking on the “I Accept” link, you do the following:
    1. You represent to the Bank that the device you intend to use in connection with Services meets the requirements above;

    2. You agree to receipt of this Agreement and all changes and updates to this Agreement in electronic form;

    3. You represent that you have read this Agreement and understand its terms and conditions; and

    4. You agree to the terms and conditions in this Agreement (Note: clicking “I Accept” is just as binding as manually signing the Agreement).