PROVIDED, HOWEVER, THAT SUCH ERO SHALL HAVE NO INDEMNITY OBLIGATIONS IF THE ERO
COMPLIES WITH THE REQUIREMENTS SET FORTH IN THE PROGRAM GUIDELINES REGARDING
CHECK PRINT AUTHORIZATIONS AND DUPLICATE CHECKS.
7.3.
ESTABLISHMENT OF ACCOUNTS; AVAILABILITY OF
FUNDS.
(A)
REPUBLIC SHALL ESTABLISH AND MAINTAIN AT
REPUBLIC A SEGREGATED ACCOUNT FOR THE BENEFIT OF REPUBLIC CUSTOMERS (EACH, A
"DEPOSIT ACCOUNT"), WHICH ACCOUNT SHALL CONFORM TO THE REQUIREMENTS OF 12 C.F.R.
330.5 SO AS TO AFFORD SUCH CUSTOMERS FDIC INSURANCE WITH RESPECT TO SUCH DEPOSIT
ACCOUNTS. UPON NOTIFICATION TO JHI THAT A RAL HAS BEEN APPROVED OR THAT AN AR
HAS BEEN FUNDED, REPUBLIC SHALL TRANSFER THE AMOUNT OF THE NET LOAN PROCEEDS OR
NET REFUND, RESPECTIVELY, TO THE DEPOSIT ACCOUNT. ALL DISBURSEMENTS TO REPUBLIC
CUSTOMERS SHALL BE DRAWN ON THE DEPOSIT ACCOUNT AND SHALL BE PAID PROMPTLY UPON
PRESENTMENT. REPUBLIC SHALL MAKE ALL DISBURSEMENTS IN THE MANNER ELECTED BY THE
REPUBLIC CUSTOMER, AS SET FORTH IN THE APPLICATION AND LOAN AGREEMENT. REPUBLIC
SHALL HAVE THE RIGHT TO OFFSET AGAINST THE DEPOSIT ACCOUNT ALL FEES AND CHARGES
AUTHORIZED BY THE REPUBLIC CUSTOMER TO BE PAID TO REPUBLIC, THE ERO OR OTHERWISE
PURSUANT TO SUCH CUSTOMER'S APPLICATION AND LOAN AGREEMENT FOR A FINANCIAL
PRODUCT IN AN AMOUNT UP TO THE AMOUNT OF THE FINANCIAL PRODUCT.
(B)
UPON NOTIFICATION TO JHI THAT AN AR HAS BEEN
FUNDED, REPUBLIC SHALL TRANSFER FUNDS VIA ACH FROM THE DEPOSIT ACCOUNT INTO THE
ACCOUNT DESIGNATED FOR RECEIPT THEREOF BY THE REPUBLIC CUSTOMER. IF THE ACH
TRANSFER IS NOT SUCCESSFUL, THEN REPUBLIC SHALL DISBURSE THE REFUND VIA A CHECK
DRAWN ON THE DEPOSIT ACCOUNT AND PRINTED BY THE REPUBLIC CUSTOMER'S ERO OR
MAILED DIRECTLY BY REPUBLIC.
(C)
REPUBLIC SHALL HAVE SUFFICIENT FUNDS
AVAILABLE AT ALL TIMES TO PAY ALL DISBURSEMENTS AUTHORIZED BY REPUBLIC UNDER THE
PROGRAM.
7.4.
DEDUCTION OF ADDITIONAL CHARGES; TIMING AND
ORDER OF DISBURSEMENTS.
(A)
REPUBLIC SHALL REMIT PAYMENT TO THE
APPROPRIATE ERO OF ALL FEES AND CHARGES AUTHORIZED BY CUSTOMERS TO BE PAID TO
SUCH ERO (E.G., TAX PREPARATION AND OTHER FEES) UPON FUNDING OF NON-LOAN TYPE
FINANCIAL PRODUCTS AND UPON APPROVAL OF LOAN-TYPE FINANCIAL PRODUCTS. THE
FOREGOING SHALL BE SET FORTH IN GREATER DETAIL IN THE APPLICABLE REPUBLIC
FINANCIAL PRODUCT AGREEMENT BETWEEN SUCH ERO AND REPUBLIC AND IN THE PROGRAM
GUIDELINES.
8
(B)
ALL FINANCIAL PRODUCT DISBURSEMENTS SHALL BE
MADE TO THE CUSTOMER NET OF ALL AUTHORIZED FEES, DEDUCTIONS OR CHARGES. IF
REPUBLIC RECEIVES A STATE TAX REFUND BEFORE THE IRS TAX REFUND, THEN ANY AND ALL
REPUBLIC AND ERO FEES MAY BE DEDUCTED FROM THE STATE REFUND PRIOR TO
DISBURSEMENT TO THE CUSTOMER, UNLESS OTHERWISE PROHIBITED BY LAW. IF AN IRS OR
STATE TAX REFUND DEPOSIT IS RECEIVED IN AN AMOUNT LESS THAN ANTICIPATED, THEN
DISBURSEMENTS WILL BE MADE IN THE FOLLOWING ORDER: FIRST, TO COVER FEES OWED TO
REPUBLIC; SECOND, TO COVER ERO FEES; THIRD, TO PAY ANY OUTSTANDING RAL
OBLIGATIONS THE CUSTOMER MAY HAVE; AND FOURTH, TO PAY THE CUSTOMER DISBURSEMENT.
(C)
IF THE CUSTOMER'S REFUND RECEIVED FROM THE
IRS EXCEEDS THE