Schedule of Terms and Conditions

This is the Schedule of Terms and Conditions for Meridian Credit Union Limited’s INTERAC e-Transfer® and INTERAC e-Transfer® for Business Services, and forms part of the Electronic Services Agreement – Business (“ESA”) between the Member and Meridian, as specified in section 6 of the ESA, as well as the Business Services Agreement – Operating Terms and Conditions between the same parties (“BSA”).

1. Definitions and Interpretation

All capitalized terms have the meanings given in section 1 of the ESA and the BSA. In addition, for the purpose of these Services, the following defined terms will be used:

“Autodeposit” means the service provided by Interac, which allows the Member to register as a Recipient that does not need to respond to e-Transfer security questions;

“e-Transfer” means the transfer of funds to Recipients using their email address, mobile number, account number or other permitted contact information;

“e-Transfer Request Money” means a request for an e-Transfer made by a Requestor to a Responder;

“Harmful Content” has the meaning given in Section 7.2;

“Interac” means Interac Corp.;

“Person” means an individual, a corporation, partnership, limited liability company, association, trust, unincorporated organization, legal entity or organization;

“Recipient” means the Person, including the Member, as the case may be, receiving the e-Transfer;

“Requestor” means a Person, including the Member, who is the requestor of an e-Transfer Request Money;

“Responder” means a Person, including the Member, who is the responder to an e-Transfer Request Money;

“Sender” means a Person, including the Member, who initiates an e-Transfer;

“Third Party” means any person, firm, corporation, association, organization, or entity, including, without limiting any of the foregoing, a customer of the Member; and

“Wrongful Activity” means any use or attempted use of the INTERAC e-Transfer or INTERAC e-Transfer® for Business Services by the Member or any Third Party, acting alone or in concert with another Person or other Persons, that is fraudulent, unauthorized, made in bad faith or otherwise improper, whether for financial gain or some other improper purpose .

2. Services

2.1 Description of the Services

(a) The INTERAC e-Transfer Service may be used by the Member to send and receive e-Transfers, send and receive e-Transfer Request Moneys, and/or register for Autodeposit, in each case, in accordance with these terms and conditions. If the Member is the Recipient of an e-Transfer sent by another Person or the Requestor or Responder of an e-Transfer Request Money, in each case, these terms and conditions apply.

(b) The INTERAC e-Transfer® for Business Service is an optional enhanced version of the INTERAC e-Transfer Service that Meridian may elect to offer to its members.

2.2 Accounts

These Services may only be used for e-Transfers in Canadian dollars to and from Canadian dollar bank accounts in Canada. No foreign currency transactions are permitted.

2.3 Instrument

Each of e-Transfer and e-Transfer Request Money is an Instrument under the Agreement. For greater certainty, e-Transfers and e-Transfer Request Moneys are not bills of exchange and no part of this Service is subject to the Bills of Exchange Act (Canada).

2.4 Limits

At its unfettered discretion, Meridian may establish and change certain restrictions on the Member’s use of these Services, including without limitation limits and restrictions on dollar amounts. Other Persons, including other financial institutions and INTERAC, may also set limits, including, without limitation, on dollar amounts of e-Transfers sent using these Services. Such limits are beyond the control of Meridian, and therefore the Member agrees to accept them.

2.5 Fees and Charges

The Member agrees to pay Meridian’s fees and charges for these Services, and to reimburse Meridian for any fees, charges, taxes, or other amounts payable to other Persons from time to time, as described below. The Member acknowledges that other Persons, including INTERAC, other financial institutions, and telecommunication service providers may charge the Member, when it is acting as Sender, Recipient, Requestor, or Responder, fees and charges for services provided to Meridian to enable Meridian to provide these Services to the Member, including for accessing, sending, receiving, and processing e-Transfers, e-Transfer Request Moneys, and/or Autodeposits.

3. Technology and Specifications

3.1 Specifications

The Member will ensure e-Transfers, e-Transfer Request Moneys, and Autodeposits comply with Applicable Laws and the specifications and quality standards prescribed by Meridian, other financial institutions, and INTERAC in connection with these Services.

3.2 Service Requirements

The Member must be a current user of at least one channel of the Electronic Services offered by Meridian, and not in breach of any provisions of the ESA or BSA in order to be eligible to use, or continue to use, these Services. Depending on which channel or channels of Electronic Services the Member uses, some features of these Services may not be available to the Member, as all features are not available on all such channels.

3.3 Technology Requirements

The Member must obtain and maintain, at its own expense, computer hardware, operating systems, and software that are compatible with Meridian’s systems and approved for such use by Meridian, and which are up-to-date and unaltered from manufacturer specifications. The Member acknowledges and agrees that Meridian shall not be held responsible for, and makes no representations or warranties of any nature, with respect to any of its channels, hardware, operating systems, and software provided by any other Person. The Member acknowledges and agrees that Meridian may, in its sole and unfettered discretion make changes to these Services from time to time, without prior notice to the Member. Such changes may cause the Member’s systems to be no longer compatible with these Services, and, if that happens, the Member agrees that Meridian shall have no liability to the Member or any customer of the Member for any consequential losses.

4. Security and Services Materials

4.1 Security

The Member agrees to comply with all security procedures, standards, and other requirements prescribed by Meridian, other financial institutions, and INTERAC for the delivery of these Services to the Member. As and when new features to enhance the security of these Services become available, the Member hereby undertakes to implement them as soon as practically possible. This includes any options available for password and pass phrase reset, dual administration, and multiple approval rules. To the extent that the Member does not comply with this undertaking, the Member agrees that it releases Meridian from any and all liability to the Member for any losses that the Member would not have suffered had it comply with this undertaking, and will indemnify and save harmless Meridian from and against and Third Party claims that would not have arisen had the Member complied with this undertaking. This section 4.1 is in addition to, and not in derogation of, any other defences and indemnity covenants that may be available to Meridian under other terms of the ESA or BSA.

4.2 Services Materials

The Member will ensure the confidentiality, security, and proper use of all Services Materials, including tokens, login IDs, passkeys, passwords, pass phrases, personal verification questions, security answers and questions, and other Security Devices, and channels used in connection with these Services. The Member will immediately notify Meridian, verbally and in writing, if any Services Materials or channels are lost or stolen or if there is any unusual, suspicious, actual or suspected fraudulent, or other unauthorized use in relation to these Services.

4.3 Information Icons, Help Content, and Links

Meridian, at its discretion, may from time to time post important additional terms and conditions displayed on its website or place information icons or links on screens when the Member is using these Services. The Member agrees that the content of such posts, icons, and links form part of this Agreement and is binding upon the Member as of the time of posting or placement. The Member agrees to regularly check the website and its online banking channel for such messages and access and review them.

5. Transaction Processing – This section applies exclusively to the INTERAC e-Transfer Service

5.1 Initiating an INTERAC e-Transfer

After the Member initiates an e-Transfer or when a post-dated or recurring e-Transfer is initiated, the amount of funds being transferred will be withdrawn from the applicable Account and an email or text message will be sent to the Recipient using the information provided by the Member. The email or text message will identify the Member as the Sender and include the amount of funds, the name of the Recipient, and inform the Recipient that the Member is using this Service. Before using this Service to send an e-Transfer to a Recipient, the Sender is responsible to ensure the Recipient is aware they will be receiving the e-Transfer and can claim the e-Transfer in accordance with these terms and conditions.

5.2 Initiating an e-Transfer Request Money

To send an e-Transfer Request Money, the Member must provide the Responder’s email address, mobile number, or other permitted contact information. After the Member initiates an e-Transfer Request Money or when a post-dated or recurring e-Transfer Request Money is initiated, an email, text message, or other message will be sent to the Responder at the email address, mobile number, or other permitted contact information that the Member provides. The email, text message, or other permitted message may identify the Member as the Requestor, display the e-Transfer Request Money amount, and indicate that the Member is sending an e-Transfer Request Money.

5.3 No Interest.

After initiating an e-Transfer, funds will be held by Meridian until Meridian receives notice that the Recipient has successfully claimed the e-Transfer, the e-Transfer has been automatically deposited, or the e-Transfer has been canceled and reclaimed in accordance with these terms and conditions. Funds will not earn interest while being held by Meridian during this time.

5.4 Claiming or Declining an e-Transfer When a Security Question and Answer Feature is used

A Recipient may claim or decline an e-Transfer using the online or mobile banking services of their financial institution, and the Member acknowledges and agrees that the financial institution, and Meridian, may charge the Member additional fees in those circumstances. If a security question and answer feature is used, to claim or decline an e-Transfer, the Recipient must respond correctly to a security question created by the Sender and used for verification purposes. A Recipient who successfully claims an e-Transfer using the online or mobile banking services of a financial institution should generally receive funds immediately. However, the actual time to receive funds will vary and may take significantly longer depending on the circumstances. The Member acknowledges and agrees that Meridian makes no representations or warranties regarding the time required to complete an e-Transfer. A Recipient has thirty (30) calendar days from the date an e-Transfer is sent using this Service to claim the e-Transfer, and upon expiry of this time period without a claim being made for the payment, the e-Transfer will automatically expire. An e-Transfer sent from another financial institution to Meridian will also expire after a prescribed period of time.

5.5 Claiming an e-Transfer When a Security Question and Answer Feature is Not Used

If the Recipient has registered for Autodeposit, the Sender is not required to use the security question and answer feature. The e-Transfer funds sent by the Sender will be automatically deposited into the Recipient’s Account. If the Member is a Responder, the e-Transfer Request Money funds will be automatically deposited to the Requestor’s Account without requiring the Requestor to answer a security question. A Recipient or Requestor who successfully receives an e-Transfer using the online or mobile banking services of a financial institution should generally receive funds immediately. However, the actual time to receive funds will vary and may take significantly longer depending on the circumstances. Meridian makes no representations or warranties regarding the time required to complete an e-Transfer.

5.6 Security Question and Answer

The Member, acting as a Sender, will comply with the requirements prescribed by Meridian, other financial institutions, and INTERAC with respect to security questions and answers. The Member will ensure security questions and answers are unique and not easily guessed, including by not using a birth date, name, telephone number, social insurance number, or sequential numbers, or any other security question or answer or password used by the Member for other purposes. The Member will ensure that security questions and answers are known only to the Person the Member intends to claim the e-Transfer, and not disclosed to any other Person. The Member will not use the email, text message, or any optional message that may accompany the e-Transfer to send, by way of reply, an e-Transfer security question or answer to the Person the Member intends to claim e-Transfer. If the Member is a Recipient, the Member will not disclose the e-Transfer security question or answer to anyone, or include either of them in any ordinary email message.

5.7 Reliance

The Member acknowledges and agrees that Meridian and other financial institutions are entitled to pay an e-Transfer to a Person who (i) correctly responds to the security question and answer; (ii) is the Requestor who sent the e-Transfer Request Money that the Member responds to; or (iii) the Autodeposit Recipient registered at the email address, mobile number, or other permitted contact information provided by the Sender, in each case, whether or not such Person is, in fact, the intended Recipient. INTERAC keeps on file only one security question and answer per Recipient. If a security question or answer is changed for a Recipient, it overrides any previously saved security question and answer for that Recipient and applies to all outstanding e-Transfers for the Recipient. The new security question or answer will enable the Recipient to accept any previously sent e-Transfers that have not yet been claimed, expired, or cancelled. If the Member does not want the Recipient to receive an outstanding e-Transfer, the e-Transfer must be canceled by the Member before it is claimed.

5.8 Cancelling an e-Transfer

Unless the Member is a Responder or the Recipient has registered for Autodeposit, the Member can request that an e-Transfer be cancelled within thirty (30) calendar days from the date the e-Transfer is sent using this Service, provided the e-Transfer has not been declined or claimed by the Recipient. Meridian will use commercially reasonable efforts to cancel an e-Transfer at the Member’s request. The Member hereby releases Meridian from any claims the Member may have, and will hold harmless and indemnify Meridian from and against Third Party claims, in respect of any losses resulting from the fulfillment of, or the failure to fulfill, a request for a change or cancellation of an e-Transfer.

5.9 Cancelling an e-Transfer Request Money

A Requestor can request that an e-Transfer Request Money be cancelled within thirty (30) calendar days from the date the e-Transfer Request Money is sent using this Service, provided the e-Transfer Request Money has not been declined or fulfilled by the Responder. Meridian will use commercially reasonable efforts to cancel an e-Transfer Request Money at the Requestor’s request. The Member hereby releases Meridian from any claims the Member may have, and will hold harmless and indemnify Meridian from and against Third Party claims, in respect of any losses resulting from the fulfillment of, or the failure to fulfill, a request for a change or cancellation of an e-Transfer Request Money.

5.10 Declined, Cancelled, or Expired e-Transfer

If an e-Transfer sent using this Service is declined, cancelled, or expires, Meridian will attempt to redeposit the value of the e-Transfer in the Account from which the funds originated or, at Meridian’s sole discretion, either deposit the value of such e-Transfer into another account of the Member or hold the funds at a Meridian branch. Additional fees may apply.

5.11 Status of e-Transfer and e-Transfer Request Money

The Member is exclusively responsible for promptly verifying the status of any e-Transfers and e-Transfer Request Moneys by checking the information posted to the Member’s account or messaged to the Member through the Member’s online banking service channel, and will immediately report any missing information or discrepancies in writing to Meridian. The Member may also receive messages from time to time from Meridian or INTERAC by email send to the Member’s email address, text messages to the Member’s mobile number, or through any other messaging method approved by the Member, concerning the status of any e-Transfers and e-Transfer Request Moneys. Nevertheless, the Member agrees that the Member shall bear exclusive responsibility for determining the status of such items.

5.12 Financial Institution Limitations

Certain financial institutions may not offer some or any features of the INTERAC e-Transfer® Service. Depending on (i) which financial institution an e-Transfer or e-Transfer Request Money is originating from or sent to; (ii) whether the Recipient has registered for Autodeposit; (iii) whether the Recipient is using the online or mobile banking services of Meridian or another financial institution; and (iv) which electronic channel the Member is using, a transfer of funds using this Service may not be able to be completed, and in such event, the Member agrees that Meridian will have no responsibility or liability to the Member or any other Person for any losses resulting for such a failure. The Member agrees that it is exclusively responsible for ensuring that the transfer of funds using this Service can be completed in each such circumstance, and releases Meridian from any claims it may have, and will indemnify and hold harmless Meridian from and against any Third Party claim, in respect of any losses resulting from the failure in each such circumstance.

6. Transaction Processing – This section applies exclusively to INTERAC e-Transfer® for Business Service

INTERAC e-Transfer® for Business is an optional enhanced version of Interac e-Transfer that permits real-time transaction processing. Interac e-Transfer for Business has the following enhanced features:

Standardized ISO Messaging: Interac e-Transfer for Business conforms to ISO 20022, a standardized set of payment messages that is used by payment networks and businesses on a global basis. This offers Canadian businesses a product with all the speed, familiarity and convenience of Interac e-Transfer, along with additional, powerful features to help them manage and analyze their cash flow while streamlining end to end processing.

Real-Time Confirmation: The ability to send and receive funds instantly with real-time confirmation through their financial institution or platforms enabled by their financial institution. Transactions are processed in real-time, with confirmation of payment delivered within 5 seconds and funds available to the recipient immediately.

Higher Limits: Higher transaction limits of up to $25,000 allow companies to send payments with all the benefits of using Interac e-Transfer for Business which include near-real time or real time transactions and richer data than traditional wire and cheque payments, all of which helps to maximize working capital efficiencies.

Account Number Routing: Account number routing allows for greater security, flexibility and simplicity by directly sending and receiving payments using account numbers. This enhancement, alongside higher limits and rich remittance data delivers on the need for fast, automated payments that streamline reconciliation and solve for inefficiencies in existing accounting processes, particularly when integrated with their accounting software.

7. Privacy and Confidentiality

7.1 Accuracy of Information

The Member acknowledges that it is exclusively responsible for the accuracy and completeness of all information provided in connection with these Services, including for ensuring a correct and operational email address, mobile number, or other permitted contact information is provided for the Recipient or Responder, as applicable, and for making any necessary changes. The Member is responsible for ensuring that the Recipient or Responder, as applicable, has consented to the provision and use of the Recipient’s or Responder’s, as applicable, contact information for the purposes of sending the e-Transfer or e-Transfer Request Money, as applicable, using theses Services, and otherwise to the extent necessary for the collection, use, and disclosure of the Recipient’s or Responder’s, as applicable, information in connection with this Service, all in full compliance with all Applicable Laws. The Member represents and warrants in favour of Meridian, in each case, that it has complied with all such laws. The Member represents and warrants that when using the Service that it will at all times comply with all the requirements of Canada’s Anti-Spam Legislation (CASL) in initiating an electronic message to a Recipient or Responder.

7.2 Message Content

Meridian will not examine any optional message or information accompanying an e-Transfer or e-Transfer Request Money, and Meridian assumes no responsibility for the contents of such messages or information. Communications should not be addressed to Meridian, any other financial institution, or INTERAC, using the optional message. The Member is exclusively responsible for the contents of any messages or information sent or received using these Services, and is prohibited from sending or receiving a message or information that is potentially harmful in any way (“Harmful Content”).

For greater certainty, Harmful Content includes: (i) information or content that is harmful to Meridian, the Sender, Recipient, Requestor, Responder, or any other Person; (ii) personal information of an individual unless the individual has provided appropriate consent to the collection, use, and disclosure of the personal information in accordance with Applicable Laws, including personal information protection laws; (iii) a uniform resource identifier such as a uniform resource locator (URL), hyperlink, Disabling Code, or deceptive or malicious content; (iv) content or information that is offensive, defamatory, illegal, relates to illegal activities, or the inclusion or transmission of which is otherwise in contravention of Applicable Laws; (v) content or information that infringes intellectual property rights; and/or (vi) content or information intended to market products or services. The Member agrees to indemnify and hold harmless Meridian, from and against any Third Party claims in respect of losses arising from the Member’s use of these Services, including as a result of any messages or information sent or received using these Services.

7.3 Personal Information

The Member acknowledges that the inclusion in messages personal health information or other sensitive personal information, including social insurance numbers and Ontario health card numbers, is prohibited by law. Subject to this restriction, to the extent a message includes any personal information or information about the Member or any other Person, the Member represents and warrants that, in each such case, appropriate consents to include the information in the message have been provided or obtained in compliance with Applicable Laws, including personal information protection laws.

7.4 Disclosure and Use

The Member agrees that all information collected by, and provided to, Meridian in connection with these Services may be used and disclosed by Meridian to other Persons, including INTERAC and other financial institutions, to the extent a reasonable person would agree it would be appropriate and necessary to enable Meridian to provide these Services. The Member also authorizes Meridian and INTERAC to use this information for preparing, using, and distributing statistical, profiling, performance, or operation reports relating to these Services. For greater certainty, this consent is in addition to any other consent provided by the Member with respect to the collection, use, and disclosure of information.

8. Intellectual Property

8.1 Prohibited Use

The Member agrees that it will not reproduce, republish, download, post, transmit, distribute, modify, or otherwise use, in whole or in part, in any form whatsoever, any trademarks, logos, works, or other intellectual property in these Services, including text, images, illustrations, software, HTML codes, audio clips, or videos, and whether belonging to Meridian, INTERAC, or any other Person, except to the extent permitted in writing by Meridian.

9. Termination

9.1 Termination by INTERAC

In addition to other termination rights in the ESA of BSA, Meridian may suspend or terminate either or both of these Services, in whole or in part, immediately, without prior notice if required by INTERAC or if either or both of these Services is/are no longer available.