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14 <br />Fraud Prevention <br /> <br />Protection Against Unauthorized Items. <br />Company acknowledges that there is a growing risk of losses resulting from <br />unauthorized Items. Bank offers Services that provide effective means for <br />controlling the risk from unauthorized Items. These Services include: <br />• Positive Pay, Positive Pay with Payee Validation, or Reverse Positive Pay <br />(each offered by Bank in conjunction with Bank’s Account Reconciliation <br />Plan Service); <br /> <br />• ACH Fraud Filter; and <br /> <br />• Payment Authorization Service. <br /> <br />In addition, Bank may recommend Company use certain fraud prevention <br />practices to reduce Company’s exposure to online fraud. Each of these <br />practices is an industry “best practice”. <br />An example of a best practice is dual custody, which requires a payment or <br />user modification initiated by one user to be approved by a second user on a <br />different computer or mobile device before it takes effect. <br />Company will be treated as having assumed the risk of any loss that could <br />have been prevented by its use of any fraud prevention Service or best <br />practice Bank has recommended to Company, if Company: <br />• Declines to enroll in the fraud prevention Service(s); <br /> <br />• Enrolls in the fraud prevention Service but fails to use it in accordance with <br />the Service Documentation applicable to it; or <br /> <br />• Fails to adopt and follow a best practice. <br /> <br />Lost or Stolen Paper Items; Unauthorized Items. <br />If any of Company’s unissued Paper Items has been lost or stolen, or if <br />Company learns that unauthorized Items are being issued on Company’s <br />Account, Company agrees to notify Bank at once. To the extent that <br />Company’s failure to so notify Bank hampers Bank’s ability <br />to prevent loss, Bank will be relieved of any liability for such Items. Upon <br />receipt of any such notice, Bank may at its sole discretion and without any <br />liability to Company take one or more of the following actions: (i) close <br />Company’s Account and open a new account for Company; (ii) dishonor any <br />Paper Item Company or an Authorized Signer has indicated may have been <br />lost or stolen (unless Company or an Authorized Signer subsequently has <br />instructed Bank to honor such an Item); or (iii) pay any Paper Item <br />presented for payment on Company’s Account, provided Company has <br />6.1.D. - Page 56