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Electronic Clearing Services L.L.C. ("ECS") Clearing House Electronic Check Clearing System ("CHECCS") Rules of Membership

IP.com Disclosure Number: IPCOM000242132D
Original Publication Date: 2003-Apr-05
Included in the Prior Art Database: 2015-Jun-19
Document File: 7 page(s) / 46K

Publishing Venue

Undisclosed

Abstract

Membership rules for the Electronic Clearing Services L.L.C. ("ECS") Clearing House Electronic Check Clearing System

This text was extracted from a PDF file.
This is the abbreviated version, containing approximately 33% of the total text.

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February 5, 2003

Electronic Clearing Services L.L.C.
("ECS") CLEARING HOUSE ELECTRONIC

CHECK CLEARING SYSTEM ("CHECCS")

RULES OF MEMBERSHIP


1. Eligibility for Participation

(a) Any "depository institution" as defined in § 19(b) of the
Federal Reserve Act, 12 U.S.C. § 461(b), may apply to become
a Participant in CHECCS.

(b) A prospective Participant must have been assigned a valid
routing number in accordance with procedures established by
the American Bankers Association.


2. Procedures for Approval of Applicants


(a) A prospective Participant must:

(i) execute and deliver to ECS the

Participant Agreement and Indemnity set
forth in Appendix A of these rules or
such other agreement as has been
approved by the President of ECS or his
or her designee; and

(ii) have agreed to pay all such fees, dues,
operating charges, and assessments, if
any, and have paid such application fee,
if any, as shall have been prescribed by
ECS.

(b) A prospective Participant will be evaluated in accordance
with procedures established by ECS. A prospective

Copyright © 1999 The Small Value Payments Company L.L.C. All rights reserved.


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Participant becomes a Participant of CHECCS upon
notification from the President of ECS or his or her
designee that its application to become a Participant has
been approved by the Board of Directors of ECS.


3. Participant Categories

(a) CHECCS shall have three categories of Participants as
follows:

(i) A member in good standing of The Small

Value Payments Company L.L.C. ("SVPCo")
shall become an Owner Participant of
CHECCS if it has met the requirements of
sections 1 and 2(a).

(ii) Any other depository institution may become an

Associate Participant of CHECCS if it has met the
requirements of sections 1 and 2.

(iii) An "affiliate," as defined in §

2(k) of the Bank Holding Company
Act and Regulation Y promulgated
thereunder, 12 C.F.R. § 25.2(a), of
an Owner or Associate Participant
of CHECCS may become an Affiliate
Participant of CHECCS if it has met
the requirements of sections 1 and
2.


4. Designation of Third-Party Service Provider

A Participant may designate a commercial data processing

Copyright © 1999 The Small Value Payments Company L.L.C. All rights reserved.


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service organization, a person operating a data transmission
facility, or another Participant (each such person referred
to as a "Third-Party Service Provider") to act on its behalf
as agent to exchange items and electronic information
through CHECCS. A Participant making a designation pursuant
to this section (i) must execute and deliver to ECS an
agreement in a form as approved by the President of ECS or
his or her designee and (ii) shall be fully responsible for
all obligations arising from the acts or omissions of its
Third-Party Service Provider.


5. Merger or Consolidation of Participants

In the event of the merger or consolidation of two or more
Participants, the surviving or resulting institution may
continue to be or become a Participant of CHECCS without the...