Automated Clearing House Contracts Involving the ODFI, Originator and Third Party Sender
By: Jeffrey D. Dunn NACHA Operating Rules require that an Originator (the individual, corporation or entity that initiates credit or debit entries into the ACH Network) must enter into a contract with the Originating Depository Financial Institution (“ODFI”) unless the Originator has contracted directly with a Third Party Sender. NACHA Operating Rules require the ODFI-Originator contract to contain provisions that (a) bind the Originator to the NACHA Operating Rules, and (b) require the Originator to acknowledge that entries may not be initiated in violation of U.S. laws. Other provisions in the contract should (a) define the parameters of the relationship between the two parties, (b) identify processing requirements for specific payment applications, (c) establish liability and accountability for certain procedures related to the selected payment applications. TO READ MORE, CLICK THE PDF ICON BELOW: View as PDF |