13 Hoosier Banker April 2016 Continued on page 14. or instruction of the customer restricting acceptance of payment orders issued in the name of the customer.3 Also, if a bank has established commercially reasonable security procedures that a customer has declined to use, and the customer instead agrees in writing to be bound by payment orders issued in its name and accepted by the bank in accordance with another security procedure, then the customer will bear the risk of loss from a fraudulent payment order.4 Thus, it is vitally important to ensure that your bank’s treasury management agreement addresses security procedures, so that you can take advantage of the risk allocation rules of Article 4A. Improve the Customer Experience While Shortening Time to Revenue Are you using separate agreements for each treasury management service you offer, or did your bank start with a single agreement when it first launched ACH services, then tack on provisions over time so that it has become a rambling mansion of an agreement? Whether you are using separate agreements for each service offering or one long agreement that addresses all treasury management services, it can improve the customer experience to restructure the material into a master agreement, designed to include supporting addenda for each service offered. This structure will speed up initial onboarding and will simplify the addition of future services for the customer. Further, from an administrative and legal perspective, using a master agreement structure ensures that defined terms, standard terms and conditions, and security procedures are addressed consistently across all service offerings. Ensure Legal Enforceability, and Manage Regulatory Risk Does your bank’s treasury management agreement: TODD ANDRITSCH tandritsch@equiasalliance.com 11416 Forest Knoll Circle Fishers, IN 46037 Tel: 317.517.5000 www.equiasalliance.com Equias Alliance helps banks in Indiana, and across the country, meet their financial goals, manage benefit liabilities and enhance shareholder value with a custom designed BOLI program. Todd and the team at Equias Alliance want to be your source for strategic benefit and BOLI solutions. In Indiana, The Checkered Flag for BOLI is Todd Andritsch! The American Bankers Association (through its subsidiary, the Corporation for American Banking) has endorsed services provided by Equias Alliance. Todd Andritsch is a registered representative of and securities are offered through ProEquities, Inc., a Registered Broker/Dealer, and member FINRA and SIPC Equias Alliance LLC is independent of ProEquities, Inc. ©2016 Equias Alliance EA-Ad-03-2016-Indiana-HP-01ab.indd 1 3/3/16 10:01 AM • Accurately reflect its current service offerings? • Dovetail with your deposit account and other bank agreements? • Include provisions required by rules mandates or “recommended” by regulation? It is not uncommon for a bank’s treasury management agreement to be out of sync with its current service offerings. For example a marketing initiative results in an inadvertently architected “upside down column” in the treasury agreement, which refers to the bill pay service as “PayEase,” but the business unit is selling a service called “EasyPay.” In some cases, a service is discontinued, yet is still addressed in the agreement. More often, a service is added or a functionality is changed, but the agreement does not address it. This confusion creates legal risk. If the agreement does not properly address the service and the related obligations the customer is assuming, the legal enforceability of the
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