AUTOMATED CLEARING HOUSE CREDIT AND DEBIT ENTRY AGREEMENT

SAME DAY ENTRY ADDENDUM

Lake Shore Savings Bank

Last updated April 23, 2021

This SAME DAY ENTRY ADDENDUM (this “Addendum”) is entered into by Lake Shore Savings Bank, a federal savings bank having its chief executive office at 128 East 4th Street, Dunkirk, NY 14048 (the “Bank”), and the legal entity (including sole proprietors) identified on the registration page (the “Company”), as an addendum to an Automated Clearing House Credit and Debit Entry Agreement (the “Original Agreement”) previously entered into by the Bank and the Company. This Addendum amends and becomes a part of the Original Agreement. The terms of the Original Agreement are hereby ratified, affirmed and incorporated herein and shall continue to apply in all respects, as amended hereby. As used herein, the term “Agreement” shall mean the Original Agreement, as amended by the Addendum. The Company agrees with the Bank as follows:

  1. Definitions. Capitalized terms use in this Addendum but not defined in this Addendum shall have the meanings set forth in the Agreement. In addition: 
    1. Same Day Entry (ies)” means one or more Entries that are received by the Bank on the same Business Day as its effective date of entry or otherwise has a Same Day Indicator. 
    2. Same Day Indicator” means that the Entry is identified as a “Same Day Entry” in the Business Online Banking submission or otherwise from time to time provided by the Operating Procedures. 
  2. Same Day Entries. 
    1. The Bank may, in its sole discretion, allow the Company or its Third-Party Processor to originate Same Day Entries. The approval by the Bank of the Company election with respect to the origination of Same Day Entries may be withheld by the Bank in its sole discretion for any reason.
    2. Same Day Entries are subject to value limit and cutoff set forth in any applicable Operating Procedure or otherwise imposed by the Bank. Effective March 16, 2018, funds associated with Same Day Entry will be made available by 5:00 p.m. Eastern Time. 
    3. The Company or its Third-Party Processor may indicate its election to transmit Same Day Entries to the Bank by either: 
      1. By entering as the effective date of entry for the Entry the date on which the Company transmits the File containing the Entry to the Bank. The Company acknowledges and agrees that the Bank may rely solely upon the date entered in the effective date of entry field of the File containing the Entry to determine whether the Entry is intended by the Company to be a Same Day Entry 
      2. By electing to use the effective entry date as the current date (or prior date) and processing the file prior to the 2:45 PM cut-off time you denote the intent for Same Day processing and settlement and the desired settlement time. The Company acknowledges and agrees that the Bank may rely solely on the presence or absence of such Same Day Indicator of the File containing the Entry to determine whether the Entry is intended by the Company to be a Same Day Entry. 
    4. The Bank reserves the right, in its sole discretion, to reject any File or Entry if the effective date of entry for the Entry is on the Business Day on which the Bank receives the File with the Entry, unless (i) the Company has previously elected to originate Same Day Entries and the Bank has approved of the Company’s election to originate such Entries, (ii) the Company or its Third-Party Processor has indicated its election to transmit Same Day Entries to the Bank by either of the methods described in clause (c)(i) or (c)(ii) above, and (iii) the Same Day Entries otherwise complies with this Agreement, the Rules and each Operating Procedure and Security Procedure. 
    5. Notwithstanding the foregoing, the Bank may, in its sole discretion, process Entries received from the Company as Same Day Entries (even if there are no indications from the Company or its Third-Party Processor to elect Same Day Entry) if the Company or its Third-Party Processor has entered a past date as the effective date of entry. In the event the Bank does so, the Company hereby authorizes the Bank to do so and agrees that the Bank shall have no liability to the Company or its Third-Party Processor for any losses arising from the Bank so processing such Entries. 
    6. Entries that exceed $100,000 will not be considered Same Day Entries and may not be processed by the Bank on the Business Day they are received by the Bank. The Bank shall have no liability to the Company or its Third-Party Processor arising from the Bank not processing such Entries as Same Day Entries. In the event such Entries are processed by the Bank as Same Day Entries, the Bank shall have no liability to the Company or its Third-Party Processor for any losses arising from the Bank so processing such Entries.