AmericanBank Consumer Mobile Deposit Addendum
Please read this document carefully. This Addendum (“Addendum”) amends and becomes a part of the AmericanBank Online and Mobile Consumer Access Agreement (the "Access Agreement") between you and American Bank, sets forth the terms and conditions of AmericanBank’s Consumer Mobile Check Deposit Service (the “Mobile Deposit Service”), which allows you to deposit certain checks into qualified American Bank deposit accounts via an application (the “App”) installed on your Eligible Mobile Device. (You may review the Access Agreement by visiting AMBK.com) The Mobile Deposit Service is considered part of the App and is an additional service added by the Bank to the AmericanBank Mobile Service (the “Mobile Service”).
1. Definitions. Unless otherwise provided, words used in this Addendum that are also used in the Access Agreement have the meanings set forth in the Access Agreement, except that the terms “we,” “us,” “our,” “American Bank,” and “Bank” refer not only to American Bank or its affiliates but also to third parties who assist American Bank in providing the Mobile Deposit Service (“Third Party Service Providers”). The terms “you” and “your” refer to “Customer”.
2. Governing Agreements. Your use of the Mobile Deposit Service is subject to this Addendum and to the following, all of which are considered part of this Addendum and incorporated herewith: (i) any terms, conditions, or instructions for use of the Mobile Deposit Service posted on the Bank's internet website, AMBK.com; (ii) the Access Agreement; (iii) any separate deposit account or other agreement applicable to any deposit account (each an "Approved Account") that you maintain with the Bank for which you have requested, and the Bank has approved, linkage to the AmericanBank Online Service (the "Online Service"); (iv) the then-current rules and regulations, if any, of any funds transfer system or payment system used in connection with any Approved Account; and (v) State and federal laws and regulations, as applicable.
3. Description of the Mobile Deposit Service. In addition to those functions of the Mobile Service described in the Access Agreement, the Mobile Deposit Service enables you to use the Bank's Mobile Service,certain Eligible Mobile Devices, and the App to (i) create electronic check images of the front and back of "Eligible Items" (see "Section 8") and (ii) transmit those images and other information, including, without limitation, information captured from the magnetic ink character recognition (“MICR”) line, to us for review and processing in accordance with this Addendum. “Check Image” means the electronic image of, and other information captured from, each Eligible Item. After we receive your transmission, we will review each Check Image. For each Check Image that we determine is eligible for processing as described below we will:
A. Create a substitute check that will present directly or indirectly to the bank (a) on which the Eligible Item to which the Check Image relates is drawn, or (b) at or through which the Eligible Item is payable (each, the “Paying Bank”);
B. Include the Check Image in an electronic file for presentment directly or indirectly to the Paying Bank; or
C. Present or post any Check Image for which we are the Paying Bank.
4. Qualification. In order to utilize the Mobile Deposit Service, you must be designated as an authorized signer or owner of an active American Bank checking, savings or money market account (the “Account”) and have been approved to access the Account through the Online Service. Mobile deposits to HSA and IRA accounts are not permitted.
5. Conditions to Provision of the Service. As conditions to our provision of the Mobile Deposit Service, you must (a) maintain the Account in good standing, (b) subscribe to the Online Service, (c) provide us with your email address (effective May 1, 2016) and (d) comply with such restrictions on the Mobile Deposit Service as we may communicate from time to time.
6. Fees. The Mobile Deposit Service is provided at no charge to you. We may, upon at least 30 days prior notice to you, to the extent required by applicable law, charge a fee for use of the Mobile Deposit Service. If you continue to use the Mobile Deposit Service after the fee becomes effective, you agree to pay the fee that has been disclosed to you, as it may be amended from time to time. You further understand and agree that any fee for the Mobile Deposit Service is separate and apart from any other charges that may be assessed to you by your wireless carrier.
7. Equipment. To use the Mobile Deposit Service, you must (i) have an Eligible Mobile Device with, a data plan; and (ii) download the App to your Eligible Mobile Device. American Bank does not guarantee that your particular Eligible Mobile Device, mobile device camera, mobile device operating system or mobile carrier will be compatible with the Mobile Deposit Service.
8. Eligible Checks and Items. We can accept checks as that term is defined in Federal Reserve Regulation CC (“Reg CC”) and only those checks that are permissible under this Addendum or such other items as we, in our sole discretion, from time to time elect to include under the Mobile Deposit Service (each an "Eligible Item" and collectively "Eligible Items"). When the image of the Eligible Item transmitted to the Bank is converted to an Image Replacement Document for subsequent presentment and collection, it shall thereafter be deemed an "item" within the meaning of Articles 3 and 4 of the Uniform Commercial Code.
You agree that you will not use the Mobile Deposit Service to scan and deposit any of the following types of checks or other items which shall be considered "Ineligible Items": (i) checks payable to any person other than the person that owns the account that the check is being deposited into; (ii) checks containing an alteration on the front of the check, or which you know or suspect, or should know or suspect, is fraudulent or otherwise not authorized by the owner of the account on which the check is drawn; (iii) checks requiring multiple signatures, unless deposited into an account in the name of all payees; (iv) checks previously converted to a substitute check, as defined in Reg. CC; (v) checks drawn on a financial institution located outside the United States; (vi) checks that are remotely created checks, as defined in Reg. CC; (vii) checks not payable in United States currency; (viii) checks payable to cash; (ix) checks postdated or dated more than 6 months prior to the date of deposit; (x) checks prohibited by the Bank’s current procedures relating to the Mobile Deposit Service or which are otherwise not acceptable under the terms of your American Bank account; (xi) checks payable on sight or payable through drafts, as defined in Reg. CC; (xii) checks with any endorsement on the back other than that specified in this Addendum; (xiii) checks that have previously been submitted through the Mobile Deposit Service or through a remote deposit capture service offered at any other financial institution; (xiv) checks on which a stop payment order has been issued or for which there are insufficient funds; and (xv) U. S. Savings Bonds.
Nothing in this Addendum shall be construed as requiring us to accept any check or item for deposit unless the check or item and its electronic submission meets the requirements of this Addendum, even if we have accepted that type of check or item previously, nor shall we be required to identify or reject any checks or items that you may scan and deposit that fail to meet the requirements of this Addendum.
9. Processing your Check Image(s). If you transmit your deposit to us by no later than 5:00 p.m. Eastern Time on a Business Day (i.e., every day except Saturdays, Sundays and federal holidays), we will consider that to be the day of deposit. If you transmit your deposit after 5:00 p.m. Eastern Time on a Business Day or on a weekend or a federal holiday, we will consider that the deposit was made on the next Business Day.
10. Deposit Limits. We reserve the right in our sole discretion and from time to time to (i) impose limits on the dollar amount(s) and/or number of deposits (over a period of time set by us) that you transmit to us using the Mobile Deposit Service (“Deposit Limits”), and (ii) modify such Deposit Limits. You can deposit checks to your personal checking, savings and money market accounts, as follows:
- Aggregate daily deposit limit: up to 12 checks totaling $5,000 each business day; or
- Aggregate multi-day deposit limit: up to 12 checks totaling $20,000 within 7 calendar days, whichever occurs first.
Lower Deposit Limits apply for newer accounts. If you exceed the Deposit Limits established for you, we may in our sole discretion accept or refuse all or any portion of a submitted Check Image deposit. If at any time we accept a Check Image deposit that exceeds your Deposit Limits, we will have no obligation to do so in the future.
11. Endorsements and Procedures. Before imaging and transmitting to us any check or other item, you must endorse all items with your signature and print “For AmericanBank Mobile Deposit Only” below your signature. You agree to follow any and all other procedures and instructions for use of the Mobile Deposit Service as we may establish from time to time. You agree to supply any information in your possession that we request regarding a check or item deposited or attempted to be deposited through the Check Deposit Service.
12. Check Image Quality and Exception Items. The Check Images of Eligible Items you deposit to your Approved Account through the Mobile Deposit Service must be legible, and the Check Image must comply with the standards established from time to time by the American National Standards Institute, or any higher standard set by us, and with any requirements set by any clearing house the Bank uses or with which we have an agreement regarding processing checks or items. You agree that we shall not be liable for any damages resulting from poor Check Image quality, including those related to rejection of or the delayed or improper crediting of such a check or Item, or from any inaccurate information you supply regarding the check or Item.
Each Business Day on which we review and process your Check Images, we will use commercially reasonable efforts to review each Check Image and to reject any Check Image that we in our sole discretion determine to be ineligible for the Mobile Deposit Service (each, an “Exception Item”). “Exception Item” includes, without limitation, a Check Image that (a) is illegible or contains MICR data that is not machine-readable, or (b) is of an Ineligible Item listed in Section 8 of this Addendum. We will notify you of each Exception Item through the Mobile Service, the Online Service, or other communication channels at our discretion. If you wish to attempt to deposit any Exception Item to your Approved Account, you shall do so only by depositing by means other than the Mobile Deposit Service the original check or item on which the Exception Item is based or as otherwise agreed between us.
Even if we do not initially identify an Exception Item, as an Exception Item, when we review and process the Check Image to which the Exception Item relates, the Check Image, substitute check, or the purported substitute check created by us from it may nevertheless be returned to us because, among other reasons, the Paying Bank determines that such check or item is illegible or missing an image. Our failure to identify an Exception Item shall not preclude or limit the obligation of you to American Bank under Paragraph 22.
13. Disposal of Transmitted Checks and Items. After a check or item has posted to your Account, you agree to prominently and permanently mark the check or item as “Electronically Presented.” You agree never to re-present to the Bank or any other party a check or item that has been deposited through the Mobile Deposit Service unless we notify you that the check or item will not be accepted for deposit through the Mobile Deposit Service. You will promptly provide any check or item, or a sufficient copy of the front and back of the check or item, to us as requested to aid in the clearing and collection process, to resolve claims by third parties with respect to any check or item, or for our audit purposes. You agree to destroy or otherwise properly dispose of each original check or other item that has been accepted for deposit through the Mobile Deposit Service fourteen (14) days after the check or item has cleared following the deposit date to ensure that such original checks and items are not re-presented for payment. You understand that a paper shredder is one such method to assure disposal or destruction. Prior to such disposal or destruction, you agree to safeguard such checks and items in a secure location in order to provide them to us if requested to do so. You understand and agree that you are responsible if an original check or other item is misused following submission by Check Image deposit through the Mobile Deposit Service.
14. Receipt of Checks and Items. The Bank reserves the right to reject any check or item transmitted through the Mobile Deposit Service, at our discretion, without liability to you. Provisional credit is granted in accordance with all applicable rules of the Bank’s funds availability policy, chargeback policies, and all other rules in your American Bank deposit account agreement terms and conditions. We are not responsible for checks or items we do not receive in accordance with this Addendum or for Check Images that are dropped or damaged during transmission. A Check Image of a check or item shall be deemed received when you receive an electronic confirmation that we have received the image. Receipt of such confirmation does not mean that the transmission was error free, able to be processed or complete, or that funds will be credited for that check or item. By providing and maintaining a valid email address, you enable us to send confirmation when your deposit was received, approved, approved and adjusted, or rejected.
15. Availability of Funds. Except as may otherwise be provided herein, we will make funds available for checks and items received, accepted, and successfully processed through the Mobile Deposit Service available on the 2nd Business Day after the day we credit your deposit, unless a hold is applied. If a deposit is held (or a hold is applied), funds are posted to your Approved Account but are not immediately available to cover debits or withdrawals. Common reasons include:
- Frequent overdrafts
- Deposited check returned unpaid
- Indications a deposited check may not be paid
If we apply an additional hold, we will provide notification to you by U.S. mail. You’ll know that your deposit is available when the amount appears in the available balance of the account you selected when you submitted your mobile deposit.
16. License and Use of the App and Related Software
A. Ownership. You acknowledge and agree that we retain all ownership and proprietary rights in the Mobile Deposit Service, associated content, technology, and website(s). You further acknowledge and agree that a third party provider or licensor to American Bank ("Licensor") is the owner of all right, title and interest in and to the downloaded software comprising the App to be used for access to the Mobile Deposit Service from us and the computer programs contained therein in machine readable object code form, as well as any accompanying user documentation along with all subsequent copies, updates or versions thereof which are made available to you (if any), regardless of the media or form in which they may exist (collectively the "Software").
B. License. Subject to the terms and conditions of this Addendum, you are hereby granted a limited, nonexclusive license to use the Software in accordance with the terms of this Addendum. All rights not expressly granted to you by this Addendum are hereby reserved by the owner of the Software. Nothing in this license will entitle you to receive hard-copy documentation, technical support, telephone assistance, or updates to the Software. This Addendum and your use of the Mobile Deposit Service may be terminated in accordance with the provisions of this Addendum.
C. Restrictions. You shall not: (i) modify, revise or create any derivative works of the Software; (ii) decompile, reverse engineer or otherwise attempt to derive the source code for the Software; (iii) redistribute, sell, rent, lease, sublicense, or otherwise transfer rights to the Software; or (iv) remove or alter any proprietary notices, legends, symbols or labels in the Software, including, but not limited to, any trademark, logo or copyright.
D. Disclaimer of Warranty. THE SOFTWARE IS PROVIDED ON AN "AS IS" AND "AS AVAILABLE" BASIS WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT. NO WARRANTY IS PROVIDED THAT THE SOFTWARE WILL BE FREE FROM DEFECTS OR VIRUSES OR THAT OPERATION OF THE SOFTWARE WILL BE UNINTERRUPTED. YOUR USE OF THE SOFTWARE AND ANY OTHER MATERIAL OR SERVICES DOWNLOADED OR MADE AVAILABLE TO YOU THROUGH THE SOFTWARE IS AT YOUR OWN DISCRETION AND RISK, AND YOU ARE SOLELY RESPONSIBLE FOR ANY DAMAGE RESULTING FROM THEIR USE.
E. Limitation of Liability. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT WILL LICENSOR, AMERICAN BANK, ANY OF THEIR CONTRACTORS OR PROVIDERS, OR ANY OF EACH OF THEIR AFFILIATES BE LIABLE FOR ANY DAMAGES ARISING OUT OF THE USE OR INABILITY TO USE THE SOFTWARE, INCLUDING BUT NOT LIMITED TO ANY GENERAL, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, EVEN IF ADVISED OF THE POSSIBILITY THEREOF, AND REGARDLESS OF THE LEGAL OR EQUITABLE THEORY (CONTRACT, TORT OR OTHERWISE) UPON WHICH ANY CLAIM IS BASED. IN ANY CASE, LIABILITY OF LICENSOR, AMERICAN BANK, OR ANY OF THE OTHER PERSONS OR ENTITIES DESCRIBED IN THE PRECEDING SENTENCE ARISING OUT OF THE USE OR INABILITY TO USE THE SOFTWARE SHALL NOT EXCEED IN THE AGGREGATE THE LESSER OF $10.00 OR THE SUM OF THE FEES PAID BY YOU FOR THIS LICENSE AND THE MOBILE DEPOSIT SERVICE
F. Remedies. In the event that you attempt to use, copy, license, sublicense, sell or otherwise convey or to disclose the App or any other part of the Mobile Deposit Service, in any manner contrary to the terms of this Addendum, American Bank shall have, in addition to any other remedies available to us, the right to injunctive relief enjoining such actions.
17. Limitations. When using the Mobile Deposit Service, you may experience technical or other difficulties. We do not assume responsibility for any such difficulties or any resulting damages that you may incur. For security reasons, the Mobile Deposit Service has qualification requirements, and we reserve the right to change these qualifications at any time. We further reserve the right to change, suspend or discontinue the Mobile Deposit Service, in whole or in part, or your use of the Mobile Deposit Service, in whole or in part. We reserve the right to limit the number of Eligible Mobile Devices through which you may access the Mobile Deposit Service. Except as expressly provided in this Addendum, deposits made through the Mobile Deposit Service are subject to all limitations and terms set forth in the relevant deposit agreement governing your American Bank account(s) as they may be modified from time to time, including, but not limited to, those related to deposit acceptance, crediting, collection, endorsement, processing order and errors.
18. Mobile Deposit Unavailability. American Bank's Mobile Deposit Service may be temporarily unavailable due to system maintenance or technical difficulties beyond the control of American Bank, including those of the Internet service provider, cellular service provider, any of American Bank's Third Party Service Providers, and/or Internet software. When this occurs, either you may not be able to access the Mobile Deposit Service to initiate a deposit or a deposit you initiated may be delayed in transit to American Bank. In the event that American Bank's Mobile Deposit Service is unavailable, you may deposit original checks at our branch, through our proprietary ATM, or by mailing the original check to: American Bank 4029 W. Tilghman St., Allentown, PA 18104. In the event of the inaccessibility of American Bank's Mobile Deposit Service, or if a deposit you initiated is delayed in transit to American Bank for a reason beyond American Bank's control, American Bank shall not be liable for any damages you may incur as a result of such delay, including loss of interest on the deposit, to the same extent as provided in Paragraph 16.e. of this Addendum and Section III.I. of the Access Agreement.
19. Security of Your Eligible Mobile Device and Account Information.You are responsible for the following:
A. Maintaining confidentiality and security. Maintaining the confidentiality and security of your Eligible Mobile Device, Sign-On ID, password(s), account number(s), and/or any other security or access information, used by you to access the Mobile Deposit Service (collectively, "Security Credentials"). Other than your, Sign-On ID and Approved Account numbers, no person employed by us shall have access to your Security Credentials. From time to time, we may require you to use additional security and authentication procedures, as specified in the Access Agreement.
B. Your liability. Your liability for the Mobile Deposit Service transactions shall be as stated in the Access Agreement.
20. Presentment. The manner in which the checks and items are cleared, presented (or re-presented) for payment, and collected shall be in our sole discretion as set forth in the relevant deposit account disclosure.
21. Your Warranties to American Bank. Each time you use the Check Deposit Service, you promise, represent and warrant to American Bank the following:
You will only transmit eligible, genuine, unaltered, original checks and items that you are entitled to enforce. All checks and items will include all signatures and endorsements required for their negotiation. All checks will be payable to you for which you are a lawful and authorized signer.
A. Check Images will meet American Bank’s image quality standards in effect at the time of deposit.
B. You will not transmit an image or images of the same check or item to American Bank more than once and will not deposit or negotiate, or seek to deposit or negotiate, such check or item with any other party.
C. You will not deposit or re-present the original check or item with American Bank or any other party, and will not assign, transfer, endorse, or negotiate the original check or item to any other party following your transmission of the Check Image of the original check or item to American Bank unless following receipt of your submission, we notify you that the Check Image is ineligible and not accepted for deposit or that the Check Image or any substitute check created from the Check Image is refused by the financial institution upon which it is drawn.
D. All information you provide to American Bank is accurate and true, that you have not altered any original check or other item or any Check Image, and that you have reviewed the Check Images to ensure that all Check Images transmitted to American Bank accurately reflect the front and back of the check or item at the time it was imaged.
E. You will fully comply with this Addendum and all applicable rules, laws and regulations.
F. You will use the Mobile Deposit Service only for your own deposit accounts for which you are a lawful and authorized signer, and will not allow the use of the Mobile Deposit Service by or for the benefit of any third party.
G. You will not store or make a back-up copy of the Check Image(s).
22. Your Agreement to Indemnify American Bank. You agree to indemnify, defend, and hold harmless American Bank and its agents, directors, officers and employees from any loss for breach of any of the foregoing promises, representations and warranties or the terms of this Addendum. You also shall indemnify, defend, and hold American Bank and its agents, directors, officers and employees from and against all liabilities, damages and loss arising from any claims, suits, obligations, charges, costs or demands, brought by third parties with respect to any Check Image, substitute check, or original check or other item processed through the Check Deposit Service.
A. Any negligent or intentional act or omission by you in the performance of your obligations under this Addendum, including but not limited to, (i) duplicate scanning of the same original check or item, (ii) transmission of duplicate Check Images, (iii) calculation errors of deposit totals, (iv) numerical errors on deposit data entry, and (v) fraudulent or unauthorized use of your Eligible Mobile Device or Security Credentials;
B. The violation of any applicable law, statue, or regulation in the performance of your obligations under this Addendum;
C. Our presenting to Paying Bank a Check Image for payment; and
D. Your failure to (i) securely maintain your supported mobile wireless handheld device or the original checks or items, or (ii) properly and timely dispose of original checks or items in accordance with Paragraph 13, in which event such losses and liabilities shall include without limitation consequential damages.
23. Termination. We reserve the right to terminate, modify, add and/or remove features from the Mobile Deposit Service at any time in our sole discretion. You may reject changes by discontinuing use of the Check Deposit Service. Your continued use of the Mobile Deposit Service after the date of any such change to the Mobile Deposit Service shall constitute your acceptance, receipt of notification of, and agreement to such changes. Maintenance to the Mobile Deposit Service may be performed from time-to-time resulting in interrupted service, delays or errors in the Mobile Deposit Service, and we shall have no liability for any such interruptions, delays or errors. Attempts to provide prior notice of scheduled maintenance will be made, but we cannot guarantee that such notice will be provided.
American Bank reserves the right to refuse to honor an instruction or to suspend or terminate the Mobile Deposit Service, in whole or in part, at any time, with or without notice to you, with or without cause, including, without limitation if we have reason to believe that your account has been compromised or mismanaged in any way, such as (a) by unauthorized or erroneous use of your Access Information; or (b) we believe the Mobile Deposit Service is not being used for its intended, bona fide and lawful purposes under this Addendum and the Access Agreement; (c) we have reason to believe the Mobile Deposit Service is being used in an anti-competitive manner or contrary to our business interests; (d) your AmericanBank Online Approved Accounts are restricted or closed, access to AmericanBank Online is restricted or is closed, or if you do not use the Mobile Deposit Service for a period of time or (e) following initial enrollment you do not use the Mobile Deposit Service. Termination will not affect your liability or obligations under this Addendum, the Access Agreement or any other agreements you have with American Bank for actions American Bank has taken on your behalf.
24. Third Party Beneficiary. You agree that American Bank’s Third Party Service Providers may rely upon the provisions of this Addendum, including its disclaimer of warranties and any limitations of liability and that such Third Party Service Providers are, for the purpose of this Addendum, third party beneficiaries to this Addendum with the power to enforce this Addendum.
25. Miscellaneous. This Addendum is hereby incorporated by reference into and subject to the provisions of the Access Agreement, amendment and indemnification. If any portion of this Addendum is deemed invalid or unenforceable, the remaining portions shall nevertheless remain in force.
A. Electronic Funds Transfer Act. A mobile deposit to a consumer checking, savings or money market account is being treated as an electronic fund transfer subject to the Electronic Funds Transfer Act. For specific terms and conditions, pertaining to the electronic funds transfers, please refer to Electronic Funds Transfer Disclosure provided to you at the time you opened your account(s) or on our website, AMBK.com.
26. Notices. You agree that we may provide you with all disclosures, notices, and other communications about the Mobile Deposit Service, and any future amendments or changes or additions to this Addendum, in electronic form. We will provide all future updates to the Addendum by posting the updated Addendum on the website at AMBK.com and/or within the Mobile Deposit Service. At your request, we agree to provide you with a paper copy of this Addendum. You may request paper copies of this Addendum by calling us at 888.366.6622. Your consent to receive notices and updates in electronic form only will apply for as long as you use the Mobile Deposit Service. You may withdraw your consent at any time by requesting us to cancel the Mobile Deposit Service. We may amend or change the terms and conditions stated in this Addendum (including changes in the fees and charges hereunder) by giving notice to you in accordance with at least the minimum notice required by law or regulation before the effective date of the amendment or change. Amendments may include adding new terms or conditions and deleting existing terms and conditions. Prior notice need not be given where an immediate change in terms or conditions is necessary to maintain or restore the security of the Mobile Deposit Service or the safety of our relationship with you or is otherwise required immediately by law or applicable regulation. We shall thereafter promptly advise you of any such change in writing.