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15 <br />instructed Bank to pay such Paper Item and given Bank the number of that <br />Paper Item. If Bank opens a new account for Company and Company has <br />authorized a third party to automatically make regular deposits to or <br />withdrawals from Company’s Account (such as wire or ACH transfers), Bank <br />shall have no liability to Company if Company does not receive any regularly <br />scheduled deposit or if a regularly scheduled payment is not made for <br />Company due to Company’s failure to notify that third party in a timely <br />fashion of the number of Company’s new Account. <br /> <br />Preventing Misuse of Company’s Account. <br />Company agrees to take reasonable steps to ensure the integrity of <br />Company’s internal procedures with respect to Company’s Account and <br />Items drawn on Company’s Account or deposited to it. To help prevent <br />embezzlement and protect Company’s business assets, Bank <br />recommends Company: <br />• Assign responsibilities for Company’s Account to multiple individuals. <br />Those who reconcile statements for Company’s Account should be <br />different from those who issue Items drawn on Company’s Account. <br /> <br />• Reconcile statements for Company’s Account as received and notify Bank <br />immediately of any problem. <br /> <br />• Contact Bank immediately if Company does not receive the statement for <br />Company’s Account when Company would normally expect to. <br /> <br />• Watch for Paper Items cashed out of sequence or made out to cash. These <br />are classic red flags for embezzlement. <br /> <br />• Secure Company’s supply of Paper Items at all times. Stolen Paper Items <br />are a common method of embezzlement. <br /> <br />• Periodically reassign accounting duties such as reconciling Company’s <br />Account or making a deposit. <br /> <br />• Review transaction activity on Company’s Account for unexpected <br />fluctuations. For example, compare the percentage of cash deposits to total <br />deposit size. Most businesses will maintain a constant average. A large <br />fluctuation might indicate embezzlement. <br /> <br />• Destroy any Paper Item that Company does not intend to use. <br /> <br />• Use tamper-resistant Paper Items at all times. <br /> <br />• Notify Bank immediately when an Authorized Signer’s authority ends so that <br />his/her name can be removed from all signature cards and Online Banking <br />access, and any Cards that Bank has issued to him/her can be cancelled. <br /> <br />6.1.D. - Page 57