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Clearing House Electronic Check Clearing System ("CHECCS") Rules of Membership

IP.com Disclosure Number: IPCOM000242143D
Original Publication Date: 2005-Jul-29
Included in the Prior Art Database: 2015-Jun-19

Publishing Venue

Undisclosed

Abstract

Membership rules for the Clearing House Electronic Check Clearing System.

This text was extracted from a PDF file.
This is the abbreviated version, containing approximately 19% of the total text.

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THE CLEARING HOUSE PAYMENTS COMPANY L.L.C. CLEARING HOUSE ELECTRONIC
CHECK CLEARING SYSTEM ("CHECCS")

RULES OF MEMBERSHIP

As amended through July 29, 2005


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THE CLEARING HOUSE PAYMENTS COMPANY L.L.C. - 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. § 46l(b), may apply to become a Participant in CHECCS ("Participant").

(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 The Clearing House Payments

Company L.L.C. ("TCH") the Participant Agreement and Indemnity set forth in Appendix A of these rules or such other agreement as has been approved by the Chief Executive Officer ("CEO") of TCH 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 TCH.

(b) A prospective Participant will be evaluated in accordance with procedures established by TCH. A prospective Participant becomes a Participant of CHECCS upon notification from the CEO of TCH or his or her designee that its application to become a Participant has been approved by TCH.

Copyright © 2005 The Clearing House Payments Company L.L.C. All rights reserved.


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3. Designation of Third-Party Agent

A Participant may designate one or more banks or nonbanks as its third-party agent(s) to perform any of its functions provided for under the CHECCS Operating Rules. A Participant making a designation pursuant to this section (i) must execute and deliver to TCH the Third Party Agent Form set forth in Appendix B of these rules or such other agreement as has been approved by the CEO of TCH or his or her designee and (ii) shall be fully responsible for all obligations arising from the acts or omissions of its third-party agent(s).


4. 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 a Participant of CHECCS without the payment of any additional dues or assessments occasioned by such merger or consolidation, provided that the surviving or resulting institution continues to meet the requirements of sections
1 and 2 above.


5. Merger or Consolidation of a Participant and a NonParticipant

(a) In the event of a merger or consolidation of one or more Participants and one or more nonParticipants under circumstances where a Participant is to be the surviving or resulting institution, the latter may continue to be a Participant of CHECCS upon the payment of such additional dues and assessments, if any, as shall have been prescribed by TCH as applicable to such mer...