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<br />its obligations under this Agreement if its performance is delayed, hindered
<br />or becomes impossible because of any act of God or of any public enemy,
<br />hostilities, war (declared or undeclared), guerilla or terrorist activities, act of
<br />sabotage, blockade, earthquake, flood, landslide, avalanche, tremor, ground
<br />movement, hurricane, storm, explosion, fire, labor disturbance, riot,
<br />insurrection, strike, sickness, accident, civil commotion, epidemic, act of
<br />government or its agencies or officers, power interruption or transmission
<br />failure or any cause beyond the control of either party.
<br />
<br />Company’s Insurance Coverage.
<br />Many businesses carry special insurance for employee fraud/embezzlement. If
<br />Company does, Bank reserves the right to require Company to file a claim with
<br />its insurance company before making any claim against Bank. In such event,
<br />Bank will consider Company’s claim only after Bank has reviewed Company’s
<br />insurance company’s decision, and Bank’s liability to Company, if any, will be
<br />reduced by the amount Company’s insurance company pays Company.
<br />
<br />Substitute Checks
<br />A federal law, known as the “Check Clearing for the 21st Century Act” or
<br />“Check 21,” took effect on October 28, 2004. This law provides for an
<br />instrument called a “substitute check.” A substitute check contains an
<br />accurate copy of the front and back of the original draft and bears the legend:
<br />“This is a legal copy of your check. You can use it the same way you would use
<br />the original check.” As noted in the legend, a substitute check is the same as
<br />the original draft for all purposes, including proving that Company made a
<br />payment. Any Paper Item Company issues or deposits that is returned to
<br />Company may be returned in the form of a substitute check. Even if Company
<br />has cancelled Items returned with the statements for Company’s Account,
<br />Bank may in its sole discretion withhold substitute checks therefrom.
<br />Company agrees Company will not transfer a substitute check to Bank, by
<br />deposit or otherwise, if Bank would be the first financial institution to take the
<br />substitute check, unless Bank has expressly agreed in writing to take it.
<br />
<br />Deposits to Company’s Account
<br />
<br />General.
<br />Unless otherwise agreed in writing, Bank may, without inquiry, accept a
<br />deposit to Company’s Account at any time, from any person or entity, made
<br />in any manner including without limitation a deposit based on an image of
<br />an Item. Bank may also refuse to accept all or any part of any deposit. Bank
<br />may use time and place of receipt, method of delivery, and status of set up to
<br />determine when Company’s deposit is received. Bank may require that
<br />Company deposit an Item made payable to Company to Company’s
<br />Account, instead of permitting Company to cash the Item. Bank is not
<br />6.1.D. - Page 60
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