Browse Prior Art Database

The Small Value Payments Company L.L.C. ("SVPCo") Clearing House Electronic Check Clearing System ("CHECCS") Rules of Membership

IP.com Disclosure Number: IPCOM000242144D
Original Publication Date: 1999-Feb-25
Included in the Prior Art Database: 2015-Jun-19
Document File: 7 page(s) / 239K

Publishing Venue

Undisclosed

Abstract

Membership rules for the Small Value Payments Company L.L.C. ("SVPCo") 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.

Page 01 of 7

February 25, 1999

THE SMALL VALUE PAYMENTS COMPANY L.L.C. ("SVPCo") 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 SVPCo 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 SVPCo 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 SVPCo.


(b) A prospective Participant will be evaluated in accordance

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


Page 02 of 7

-2-

with procedures established by SVPCo. A prospective Participant becomes a Participant of SVPCo upon notification from the President of SVPCo or his or her designee that its application to become a Participant has been approved by SVPCo.


3. Particioant Categories

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

(i) A member in good standing of 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.


Page 03 of 7

-3-

service organization, a person operating a data transmission facility, or another Participant (each such person referred to as a uThird-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 the Clearing House an agreement in a form as approved by the President of the Clearing House 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 CHE...