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HomeMy WebLinkAboutNorth Fork Lock BoxLOCK BOX AGREEMENT Agreement made this 21 day of October , 20~ by and between North Fork Bank, a New York hank/nc corporation with an office at 275 Broad Hollow Road, Melville, New York 11747, hereinafter referred re as "the Bank", and the Town of Southold , a business with an office ar 53095 Main Road, Southold, New York 11971 hereinax'Ser referred to as "Company". Whereas, Company is a customer of the Bank and has requested that the Bank provide certain Lock Box services as more particularly set forth herein; and Whereas the Bank is wilgmg re provide such services pursuant tothe terms and conditions set forth herein. Now, therefore, in consideration of the mutual premises contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: Yees 1, In addition to the normal and customary charges assessed by the Bank in accordance with the Bank's Miscellaneous Fee Schedule (as same may be amended from time to thne), Company shall be responsible for the payment of fees reflected in the attached Schedule A. Said fees may be changed by the Bank on thirty (30) days notice to Company, and will be binding upon expiration of such period. Such payment ~ shall be made only in the event such charges and fees incurred for any ~ven month exceed the earnings credits available to Company for that month, such payment to be made by debit to any of the accounts maintained by Company at the Bank or any of the Bank's affiSates. In that regard, Company agrees to maintain sufficient balances in its accounts to pay all amounts due hereunder. For purposes of this Agreement, "eammgs credits" shall mean those credits earned by Company on its compensafmg balances maintained at the Bank at the Bank's then prevailing rate based on the type of deposit product maintained by Company during the applicable month and the balances so maintained. Earnings credits not used to offset charges and fees shall be made available to Company to offset charges and fees incurred in future months, but in no event shall any earnings credits, excess or otherwise, be paid to or otherwise made available to Company. Services The Bank will provide Company the services indicated on Schedule B. Said s~rvices may be changed by the Bamk qn thirty (30) days notice to Company and will be bincYmg upon the expiration of such perle& Any services in addition to those indicated on Schedule B w'~lI be charged according to the Bank's then current fee schedule. The Bank reserves the right to terminate or suspend services under this Agreement in the event Company fails to pay any outstanding fees or charges due. The Company appoints the Bank its attorney2m-faet to endorse checks in the name of Company and hereby agrees to indemnify and hold hmmless the Bank for acting in such capacity. Lock Box Agreement- Rev. 09/19/02 O Lock Box Agreement Page - 2 - Company's Responsibilities Company shall p<ovide the Bank in a timely manner al/information set forth on Schedule C to enable the a~ th render thc sermces nnder this Agreement. Information requirements may be changed by the Bank on ~.(30) day~ notice to Company and will be binding upon th.e expiratien of such period. Company shall have full responaibility for the timely delivery of al/required information as well as the tm~ and accmv~y of such fifformatmn. Company, and its permitted successors, assigns and legal representatives, s, ballI fgf?r inde~.l~mify thc Bank and hold it entirely hannless from and a, gain~ any and all claims, ae~ tosses, cgarges, espenseg legal fces~ costs and l/abilities qf whate~er kig, d or desertion, ~ · ,. ,~ pr , .~ ~, [g, withot~; l(finimfion, fees an6 disbursement~ of legal com~e[ ~,'S fli~ or f&g ~d,fu~lsh, saCh~onmlion. Company. sh~t have the ob~,gation, to. review:, ali records· pertaining to their account and promptly notify ~h:~ank ~f an[ error o~r,;o .rr~sa~ F~ail .ar~..by C~man.y to so review and advise the Bank promptly shall eemea a release ot~e B~rf~ Dy co~a~y from any and all habihty for any error or omission. The Bank Will( use reasonable &To'ts tO pe;ff~)rm ~,¢ s ,eUc/~es' hereunder, 'but does not guarantee either the accura?[ Or the. produ~,mn ~fthe o~tp~i The. Bank shah not be liable for any damages resulting from an~c,~o.r ~s ~cts o[omissmn? b~fond its edn!rol inch:din% but not limited to, acts of God*, mikes, !~bor or ma~eti~ shortages, acciden[ t)~ u:',mal,c to !ilcdi,:c.- a!:d i. no even~ shall the BanI~ be hable for any dan~f~ag~s ~e~sulting, ~om any~ 0f~its acts ~r 0miSSions I~emander tmldss same are ~roX/matelv ,ca,,~l h,, B~'di~il~her¢~nder ~whichsllchlhalnhl~. ~.~ csl;~ fl, c; . ' exceed in hnv event the'am~nntq pai~6y C0~mpany hereander. ' ' ~ ....... Ia th,e event Company elects to mail and prepare its ovm billing documents, the do'inherits must be appro,' .~. d by the ~an~. The quality of the ~locuments mUst be acceptable to the Bank to insure proper processing. Such standat,~s for processing mast be maintained to allow the proper crediting to C_o~:.~ny'~ account, If Company's billing documents do not meet the standards of the Bank, Coml)anv ,w}?l~e, notified and'given ~ (30) days to correct the deficiency. In thc event corrective a~tion i; n~t 'taXeni~ a ~imely manner, thd Bank will assess an Exc~-tion Handlin~ Servi~ t-~_~ _~ ,,_ ..... : .-- effec~ ~ , ;., .. -~ ~ ~ ,~o~g~ u~ ute rare men m cc~.ror Doctc t~ox processing. Bank's 4. Property All mgterials produced by the Bank and al/documentation programs and magnetic rape files are and shall remain the property of the Bank, free of any claim by Company, and same shall not be used by Company for any purpose. The Bank shall use reasonable care to endeavor to keep confidential all information furnished by Company; but failure ro do so shall not result in any liability to the Bank ~n the event of cancellation by either party according to the terms set forth in Section 6 - Cancellation, all ~mage CDs previously distributed to Company according to the Lock Box processing reqmrements remain property of Company. Lock Box Agreement - Rev. 09/19/02 Lock Box Agreemenl Page - 3 - ReneWal The pricing schedule may be changed by the Bank on thirty (30) days notice to Company and will be binding upon the expiration of such period. ~anceHafion This Agreemer~ shall continue until the earliest of (i) cancellation by either party upon n/nety (90) days prior nntiee to the other party, (i0 cancellation by either party upon ten (I0) days prior written notice' to the other parry a~ a result o£a breach of the terms of this Agreement by the other party; provided that said breach is not cured prior to the expirat~un of said ten (10) day period of the other, or (iii) cancellation by ~¢ Bankif requited by governmental authority, l'he Bank may assign its rights and Ii.abilities hereunder wSth no £urthe~' liability upon thirty (30) days prior written notice. Company may not assign its r~ghis hereunder. This Agree~:~un; expresses the entire understanding of the par~es and fhere a~e no other agreements or proViSiuns, eltl~er eXPress or implied. This agreemem may be modified or tenn/natedonly in w[;)ffng. The la~vs 0f th~ S~ate of New York shall govern this ,agreement. BOTH PARTIES WAIVE T~Ik4L BY JIYR¥ IN P~X~Y ACTIOn4' INVOLVING THIS AGREEMENT. NORTH FORK BANK ~ ~ (Print) Title: Sen±or V±ce President 10/21/02 [COMPANY]. Town of Southold By: ~ ~'~~ Name: Joshua Y. Horton (Prhlt) Title: Town Supervisor Lock Box Agreement - Rev. 09/19/02 O Lock Box Agreement Page - 4 - Remittance Processing (Lock Box) Services Schedule A Pricing Schedule Effectave: September 16, 2002 Lock Box - Pricing Schedule to Include: Set Up Fee Standard Monthly Service Fee Monthly Fee for Daily Data Transmission Depof~t Fee Sexvice charge per payment processed Micr/Ocr Cheek Clearing Fee, per item Non Machine Readable B'flls Processed I00.00 1~,00 150,0(~ .oo ,36 .08 1.00 Courier- Per Trip SBased on Courier Lock Box Agreement - Rev. 09/19/02 O Lock Box Agreement Page - 5 - Lock Box Schedule B The Bank shall adhere to the following workflow process that the Company wishes to utilize for the Lock Box Service for tax payments with North Fork Bank and provide the following services: Mail ~vlll be sent by taxpayer to Post Office Box in Laurel (Day 1). Mail will be picked up by a representative of North Fork Bank or such other thkd party Es d~signated by North Fork Bank (i.e. courier service), on a daily basis and delivered to the NFB lSrocess/ng f~e51i~ in Mattituek (Day 1). All Tax Bills and Checks w/ll be imaged. Two. CT) ROM's, wh/ch will include all items processed and/maged, will be forw~trfftd, to the Company at the end of each Tax Collection Per/od. All envelopes will be opened and checks will be examined and processed accorCYing to the Company's instructions as reflected in Appendix 1 hereto. Checks will be deposited into the Company?g account (Day 1). The Bank will maintain an image record of each check included in the~deposit. The image shall be stored off site for a period of not less than seven years. All items not accepted for deposit will be returned to their envelopes without further processing and returned to the Company the following business day (Day 2). Such items include, but are not limited to, the items listed ~n Appendix 1. An electronic data file will be created at the end of each processing day and will include derails of ail tax payments processed IDay 1). This information will be captured from the OCR (Optical Character Recognition) scan line at the bottom of each tax bill. The Company will access and retrieve this file from NFB's Intemet ~vebsi;e ro automate the posting of the Company's accounts receivable system. The file format is defined in Appendix 2. A fats/m/lc and e-mall w/Il be sent to designated parties indicating the information that was processed on the prior business day (Day 2). This facsimile and e-mail will reflect the date, the specific amount of checks that were processed and the amount of money collected. All back-up documents includ/ng advise of deposit, tax bills, items not processed, will be returned directly to Southold Town Hail via a bank courier, representative, or th/rd party acting on behalf of NFB (Day 2). Lock Box Agreement - Rev. 09/19/02 O Lock Box Agreement Page - 6 - Note: Checks received will be forwarded for collection in accordance with normal banking practice. The proecss~ng ofchecks is subject to the renns and conditions of the deposit agreement between the Company and NFB: as applied to deposits received by the Bank through other channels. Lock Box Agreement - Rev. 09/19/02 O Lock Box Agreement Page- 7 - Lock Box Service Schedule C Company's Customer List: A. B/lling address B. Maintenance amount Billing Information A. Due Date B. Late Date C. Late fees D. Ma'~ng date N/A 3. Company N/A A. Address B. Contact Name C. Phone Number Company must notify the Bank at least [wo (2) business days pr/or to the mailing date of any: A. Address changes, or N/A B. Ownership changes, or N/A C. Maintenance charge changes. N/A Company must promptly notify the Bank of any payments received and wheth~ or not such payments have been deposited in the Company's account. N/A 6. Standard Billing Format Defined in Appenc¥~x 2 Lock Box Agreement - Rev. 09/19/02 ~greement Page - 8 - Lock Box Appendix 1 'F~}~pmble l¢'avee X Pay'ecs that are not clearly defined should be returned to Southold. --'UnsCannable Tax Bills X Stubs not ac*epted ~oy the system should be retUrned to Southold Ta2x~p ~a~Eers ~am ~ffers from X pmz~ess and key flX~ ,arhe on file [ tl~0/m~e OlX:tke cheek ,>heck, L~ST DTAME~ FiRS'T :'~ull Fayr~erlt Si December and X Thx bill is equal to :tl}e ehe~k May payments received mount (total of firslmnd ¢cund lmlfamounts)', Pro,ss dm'iug Decem,b er/J~nu ar y colleetion period only. Pall Payments: December and X Tax ~lll ~ ~qual to ~ cheek May payments received mount (total of firstLan~ second half amoUms). RE~ during proc s pa.ntfe~t~ Post mark after May 31st X II'.r¢ cl;xclol:C '*o-.~ ...... .~ k ~ ,..," · ~Mayo oIth g/vC~a tax year then ~May2 o~th g/ven tax year then Checks marked "Paid in Full" retm~ to ~p~tlmld. X If~e ch~k.is marked ~'Paid in FulF, oK tO process~ Partial or Unequal Payments X Ok to Mu/ti-Payments X Ifthe ~0~ on a sixigle check (1 check) e~q~a!s the total of multiple tax b/~lta~hendo not process and return.t~, S~-~hold. Multi-Payments X ~the amo~on a s~lgle cheek (1 check) d, oe.s not equa! the total of mu/fipl~ t~ bills then do not process ~d r?turn to Southold. Payment without a tax bill X Check wl}~t h? tax bill, return to Southold, Tax bill with no payment X Tax b/ll with no check, return to Sou~0Id. [~ost daled checks X Che~Ra dated 3 da~s or mere ahead Of processing date. Retura to Southo Stale dated checks X Chocgs~dated more'~then 6 Unsi§ned Checks X Si9a td?e is lef~ blaak. - Stamp arid! pm¢ess: LoCk Box Agreement - Rev. 09/i9/02 OLock Box Agreement Page - 9 - Foreign checks X Checks not in US Currency. Return to Southold. Tax Bill from prior year(s). X Do not process, return to Southold. Correspondence written on X Return envelope and :contents the tax Dill stub or included to Southold, with tax bill. First half,payment rec8ived X process only with the first half with first and second half stub, only marking it as paid. tax bill Stubs DO NOT mark the second half as paid. Note: all unbankable items should returned to Southold in the original envelope with al/ of the contents. Revised: Wedne8dayf June 26. 2002 Lock Box Agreement - Rev. 09/19/02 Page - 10 - S~t~IS Code 6 I 1 to 6 Town identifier 15 7 to 21 Parcel identifier- Right justify and zero filled: Parcel ID (Tax Map) ~ill NumBer 6 22 to 27 Nu~mber of the,bill - Rigt~t justify and zero filled. - ~ax,.,Year, 2 28 to 29 Year the taxes were incurred. ' stH Amount Due f0r~the f rst.halftax period processing. Amount Due 1 elf 8 30 to 37 R ght justify and zero fii~d when not app icable. Amount Due 2nd Half 8 38 to 45 Amount Due for the se,~nd half tax period processing. Right justify and zero fgl~ when not a'pplidable. Total Due 8 46 to 53 Tota ;raX}am0~ht dUe ~igh~b~ti,fy. _CI~cc]~ Di~t 1 54 Mod 10 With w~ights 7 Lock Box Appendix 2 TOWN OF SOUTHOLD OCR SCAN LINE SPECIFICATIONS NOTE: The original Parcel ID's (Tax Map) all contain dots (.) and dashes (-). To accommodate the inability of scamters to correctly read these characters they have been converted on the scan line where a dot now appears as an "X" and a dash appears as a "Z". These characters MUST be converted back to the original characters in the Parcel ID field of file generated by the bank. For example; Parcel ID 78.-2-3 has converts to 78XZ2Z3 on the scan line and needs to be converted back on the import file. Lock Box Agreement - Rev. 09/19/02 © - Scan Eine Ex. 00000087 SWIS Code 6 9-14 Scan Line Ex. 473801 Parcel ID (Tax Map) 20 15-34 Scan Line Ex. 2.-4-1. Left Justified. Owners Nm'ne 30 35,64 Na Leave Blank Cu~toi~er NUmber 10 65-74 Na Leave Blank Lo/~Nhmber 25 -~5-99 Na Leave Blank iPm~ A~mot~nt 13 100-112 NFB Ex; $20~,47 = 0000000206947 zero fill ~d omit decimals and commas. Ap~)~iedDate 8 113-120 NFB Ex. 010920'02. Bank processing date.. al&By 30 1~21-150 Na / NFB If the fi~ on ~h~aayment stub i~ equal to the ~ame°~ tIie the'ok then the fieM is left blank. If the n~es are differ~n{, tlie~ data i~ to b'e 0~tain~{~ data entry, I~ all cases the field is pa~de~l ~! SO~CeS to fili~ the require~i let~gth ~ S~'~E cot~z Lock Box Appendix 2 TOWN OF SOUTHOLD PAYMENT FILE IMPORT SPECIFICATIONS NOTEI: There should be no additional blank lines or spaces after the last character (position 150) of the last line of actual data in the file. NOTE:2 The original Parcel ID's (Tax Map) all contain dots (.) and dashes (-). To accommodate the inability of scanners to correctly read these characters they have been converted on the scan line where a dot now appears as an "X" and a dash appears as a "Z". These characters MUST be converted back to the original characters in the Parcel ID field of file generated by the bank. For example; Parcel ID 78.~2-3 has converts to 78XZ2Z3 on the scan line and needs to be convened back on the import file. Lock Box Agreement - Rev. 09/19/02