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Rules Affecting Originators

1. Prior to the origination of an ACH transaction an Originator must:

     - Enter into an agreement with the ODFI.

     - Obtain authorization from the Receiver. (For consumer debits        the authorization must be in writing and a copy of the        authorization must be provided to the consumer. For corporate        entries, the authorization may take the form of a written        agreement. )

     - Maintain the authorization up to 2 years beyond the life of a        transaction.

     - Send a non-dollar test entry called a pre-notification (optional).

2. The Originator must notify a consumer 10 days in advance of a change in the amount or 7 days in advance of a change in the posting date of an ACH debit

3. The Originator cannot recall valid transactions after they reach the ACH Operator. Allowances are made, however, for the reversal of erroneous transactions.

4. Transaction file records must conform to ACH format specifications.

5. Originators must not reinitiate payments that have been returned as unauthorized or are incorrect until the problem is solved; they may, however, reinitiate a transaction if the original entry was returned for insufficient or uncollected funds.

Rules Affecting ODFIs

1. Prior to the origination of entries subject to UCC-4A (wholesale credits), the ODFI must make certain disclosures regarding Transaction Settlement, Security Procedures, Choice of State Law and Provisional Payment.

2. The ODFI also makes the following warranties that:

     - Originated entries are in accordance with a valid authorization.
     - Entries are timely; that each debit entry is for a valid payment.
     - Entries comply with the Rules.
     - The Originator has complied with PIN Management Security standards if applicable (such as for debit        card transactions).
     - Transaction information complies with the Rules.
     - Reclamation entry information is accurate, complete and timely.

(ODFI warranties and liabilities apply to entries originated directly or through the use of a sending point to the ACH Operator.)

Rules Affecting RDFIs

1. An RDFI may request a copy of an authorization from the Originator but is not required to keep authorizations on file.

2. RDFIs must verify the account number on the pre-notifications they receive and must either return invalid pre-notification entries or send notifications of change to the ODFI which detail necessary corrections.

3. RDFI may rely solely upon the account number for purposes of posting to a Receiver's account.

4 An RDFI must make funds available for consumer credit entries no later than the date of settlement. If entries are available by 5:00 p.m. on the day prior to settlement, funds must be made available at the opening of business on the settlement date.

5. An RDFI may not post a debit entry to a Receiver's account prior to the settlement date.

6. An RDFI must initiate any returned entries in accordance with procedures and deadlines provided by the ACH Rules.

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