E. Check Processing and Routing –

Cashing of University checks The University requires that the bank cash checks drawn off of University bank accounts (on-us) presented at local bank branch locations by University students, employees, research participants and vendors at no cost to the University or check holder. Prior to cashing the check, the bank must verify each check presented is valid using the Positive Pay data provided by the University daily.

The Vendor and University will jointly establish specific formatting requirements for the University's checks. The University requires cancelled checks to be returned in Electronic format.

• F.Stop Payment Orders – The University requires the ability to initiate stop payment orders electronically.
• G.Electronic Information Reporting – The Vendor must specify what information will be provided to the University concerning the daily and monthly status of the University's accounts. The University requires the ability to monitor its accounts electronically and on-demand.
• H.Direct Payroll and Financial Aid Deposits – The Vendor must describe its ability to process direct payroll deposits into Employees' accounts and direct financial aid and refund deposits into Students' accounts. The Vendor must also provide detailed information outlining the process and the specific requirements the University must meet. The Vendor should specify any limitations on its ability to access specific financial institutions by geographical location or other criteria. The University requires the ability to initiate direct deposits electronically.
• I.Overdraft Protection – The University requires the Vendor to provide overdraft protection on its accounts. The Vendor must describe its policies governing overdrafts, its procedures for processing them, and what actions are required of the University if an overdraft occurs.
• J.Locking Bags – The Vendor must provide acceptable locking bags to the Cashiers at no cost.
• K.International Banking Services – The Vendor must have the ability to process international banking transactions and must specify its policies and procedures for processing international bank drafts and wire transfers.
• L.Collateralization – The University prefers One Hundred Five Percent (105%) collateralization of its accounts. The Vendor must pledge United States government securities as collateral and must provide safekeeping receipts to the University. The Vendor must specify in detail its policies and procedures for insuring compliance with KRA 41.240 insuring adequate and acceptable collateralization of the University's accounts. The Vendor's policies and procedures must conform to the standards of the Federal Deposit Insurance Corporation (FDIC) and sound banking practices.