AND
LENDER, (A) OF ANY ERROR IN AN ADVICE OF DEPOSIT WITHIN THIRTY (30) CALENDAR
DAYS AFTER BORROWER AND/OR LENDER RECEIVE SUCH ADVICE OF DEPOSIT AND (B) OF ANY
ERROR IN A BANK STATEMENT WITHIN THIRTY (30) CALENDAR DAYS AFTER BORROWER AND/OR
LENDER RECEIVE SUCH BANK
2
STATEMENT.
THE LIABILITY OF REGULUS AND WELLS FARGO FOR SUCH ERRORS IS LIMITED
AS PROVIDED IN SECTION 21 OF THIS AGREEMENT.
6.
ACCOUNT DOCUMENTATION.
BORROWER AND LENDER UNDERSTAND THAT THIS
AGREEMENT COVERS THE LOCKBOX SERVICE AND, EXCEPT AS SPECIFICALLY PROVIDED IN
THIS AGREEMENT, DOES NOT COVER THE HANDLING OF THE LENDER ACCOUNT.
EXCEPT AS
OTHERWISE SPECIFICALLY PROVIDED IN THIS AGREEMENT, THE LENDER ACCOUNT WILL BE
HANDLED AND ITEMS DRAWN ON OR DEPOSITED INTO THE LENDER ACCOUNT WILL BE
PROCESSED BY WELLS FARGO, AND NOT REGULUS, AS WELLS FARGO WOULD PERFORM SUCH
RESPONSIBILITIES WITH RESPECT TO ANY OTHER DEMAND DEPOSIT ACCOUNT AT WELLS
FARGO.
AS A RESULT, THE LENDER ACCOUNT WILL BE SUBJECT TO, AND WELLS FARGO'S
OPERATION OF THE LENDER ACCOUNT WILL BE IN ACCORDANCE WITH, THE TERMS AND
PROVISIONS OF WELLS FARGO'S DEPOSIT ACCOUNT OPENING DOCUMENTATION AND OTHER
WELLS FARGO ACCOUNT RELATED DOCUMENTATION (COLLECTIVELY, "ACCOUNT
DOCUMENTATION"), INCLUDING, BUT NOT LIMITED TO, WELLS FARGO'S DEMAND DEPOSIT
ACCOUNT DISCLOSURE STATEMENT FOR THE LENDER ACCOUNT AS IN EFFECT AND DELIVERED
TO LENDER FROM TIME TO TIME, A COPY OF WHICH BORROWER AND LENDER ACKNOWLEDGE
HAVING RECEIVED.
NOTWITHSTANDING ANY PROVISIONS OF ANY ACCOUNT DOCUMENTATION,
HOWEVER, ALL ACCOUNT FUNDS SHALL BE THE SOLE AND EXCLUSIVE PROPERTY OF LENDER.
7.
CUSTOMER SERVICE.
BORROWER AND LENDER UNDERSTAND THAT WELLS
FARGO, AND NOT REGULUS, WILL PROVIDE CUSTOMER SERVICE FOR THE LOCKBOX SERVICE.
AS A RESULT, ANY QUESTIONS OR PROBLEMS THAT BORROWER OR LENDER HAVE WITH RESPECT
TO THE LOCKBOX SERVICE SHOULD BE ADDRESSED TO WELLS FARGO'S SERVICE CENTER.
WELLS FARGO WILL FACILITATE THE RESOLUTION OF ANY PROBLEM BETWEEN BORROWER OR
LENDER AND REGULUS, BUT BORROWER AND LENDER UNDERSTAND THAT REGULUS WILL BE
SOLELY RESPONSIBLE FOR ANY PROBLEMS CAUSED BY ITS PERFORMANCE OR FAILURE TO
PERFORM THE LOCKBOX SERVICE.
8.
RETURNED ITEMS.
ALL CHECKS OR OTHER ITEMS CREDITED TO THE LENDER
ACCOUNT AND RETURNED TO WELLS FARGO UNPAID FOR ANY REASON WILL BE HANDLED BY
WELLS FARGO IN THE FOLLOWING MANNER:
(A)
ANY CHECK WITH A FACE AMOUNT LESS THAN ONE THOUSAND DOLLARS
($1,000.00) WHICH IS RETURNED BECAUSE OF INSUFFICIENT FUNDS WILL AUTOMATICALLY
BE REDEPOSITED BY WELLS FARGO A SECOND TIME.
(B)
ANY CHECK WHICH HAS BEEN RETURNED A SECOND TIME OR WHICH IS
RETURNED FOR REASONS OTHER THAN INSUFFICIENT FUNDS OR WHICH HAS A FACE AMOUNT OF
ONE THOUSAND DOLLARS ($1,000.00) OR MORE AND IS RETURNED FOR INSUFFICIENT FUNDS
WILL BE CHARGED BACK TO BORROWER'S WHOLESALE DEMAND DEPOSIT ACCOUNT MAINTAINED
WITH WELLS FARGO SPECIFIED AT THE END OF THIS AGREEMENT (THE "BORROWER
ACCOUNT").
(C)
IF THERE ARE INSUFFICIENT FUNDS IN THE BORROWER ACCOUNT TO COVER
ANY CHARGEBACK, LENDER AGREES THAT WELLS FARGO MAY CHARGE THE LENDER ACCOUNT FOR
THE AMOUNT OF THE INSUFFICIENCY, UP TO THE AMOUNT OF THE