Tyler Technologies, Inc. or its affiliate (“Tyler”) will provide government (“Client”) with remote electronic access to AP Automation Disbursements as specified on the applicable Investment Summary during the term of the agreement between Client and Tyler (together with these Terms of Use, the “agreement”), subject to Client’s compliance with the agreement. Client agrees that its use of AP Automation Disbursements Software and Services will be subject to the terms and limitations of the agreement.

Section A – Definitions

Capitalized terms not otherwise defined will have the meaning assigned to such terms in the agreement.

• “AP Automation Payee End User Agreement” means the terms and conditions that govern recipient’s use of AP Automation Disbursements.
• “Disbursements Software and Services” means Tyler’s proprietary disbursements software, APIs, processes, user interfaces, know-how, techniques, designs, ideas, concepts, and other tangible or intangible technical material or information provided to Client through remote electronic access. Disbursements Software and Services are a part of Tyler’s AP Automation Disbursements product.
• “Investment Summary” means a document listing the pricing and product description associated with this agreement.
• “Sponsor Bank” means the third-party provider that may be used to facilitate disbursement services provided on behalf of the Client.

Section B – Disbursements Terms and Conditions

1. The AP Automation Disbursements Software and Services provides a digital disbursements service on a single platform through the use of Tyler and third-party issuers, banks, and other third-party providers. Tyler reserves all rights not expressly granted to Client in these Terms of Use; any license or rights to use AP Automation Capture, including the Disbursements Software and Services, is set forth in the agreement. Tyler’s software and documentation are protected by copyright and other intellectual property laws. Tyler owns all title, copyright, and other intellectual property rights in its software and documentation.
2. Tyler is entitled to rely on the information and instructions provided by Client and recipients. Client will provide Tyler with the payment recipient details, such as amounts owed, account information, mailing address, or payment details. Client represents and warrants that it has the right to provide this information to Tyler and Tyler is entitled to use the information for the purposes described herein. Recipient may also provide such information to Tyler. Tyler does not control the inputs affecting the amount that is to be withdrawn from the Client and/or paid to the recipients, and Tyler is not liable for transfers of incorrect amounts, or to incorrect bank accounts, digital wallet accounts, card accounts or any manner of end point provided by Client or recipient, in the case of Client, recipient or third party errors or fraud. Client is responsible to keep such information and instructions current and accurate. Client agrees that such information and instructions constitute the Client’s authorization and instruction to Tyler to authorize such transfers.
3. Once Client has provided its authorization for a payment, Client may not be able to cancel the payment and Client agrees to take full responsibility for the payment recipient details provided pursuant to this section, plus fees due to Tyler for such disbursements. Client understands and agrees to pay Tyler for all such amounts, regardless of whether Client’s information or instructions contained an error. Client agrees to take full responsibility for the payment amount that is provided or due to Tyler to fulfill the disbursement obligations and shall regularly audit its own bank accounts.
4. Client is responsible for maintaining the security of all access credentials granted to it, for the security of its information systems used to access Disbursements Software, and for its end users’ use of Disbursements Software. Client is responsible for all activities conducted under its login credentials, even if they were caused by a bad actor. Tyler has the right at any time to terminate or suspend access to any user if Tyler reasonably believes that such termination or suspension is necessary to preserve the security, integrity, or accessibility of Disbursements Software, any Client Data, Tyler, or Tyler's other customers.
5. Client is solely responsible for (i) using frequently updated, industry standard virus and malware protection software to prevent the introduction of viruses and other malware into the services from Client’s network or hardware; and (ii) identifying and preventing any unauthorized access to, use of, or disclosure of the services or any content on the services by advising Tyler promptly, but in no event more than two business days after Client learns of such access, use or disclosure. In addition, Client agrees to access, and require users of the Tyler solutions to access, the services in a secure manner in compliance with Tyler’s reasonable standards established from time to time.
6. Recipients will be required to accept the AP Automation Payee End User Agreement through the registration process and pass any applicable identity verification requirements prior to receiving disbursements. If Client’s intended recipient is not registered to receive disbursements, at the time Client’s sends disbursement instructions, the recipient will receive payment via a check. If the recipient does not cash the check, Tyler will return the amount of the disbursement to Client, less any applicable fees. Tyler will have no further responsibility to Client or the recipient regarding such disbursement after Tyler returns the unclaimed balance to Client.
7. Client agrees that it is solely responsible for its relationship with recipients. Tyler is not responsible for Client’s communications with recipients in connection with the products or services provided.
8. Tyler is authorized to market disbursement options and related services to recipients through various outreach methods as part of the Disbursements Software and Services. This may include engaging third party services to participate in or provide marketing efforts or sending recipient information to third parties for analysis related to such efforts.

Section C – Compliance

1. Client shall at all times be responsible for its compliance with applicable laws, operating rules, and regulations, including but not limited to the Operating Rules and Guidelines of the National Automated Clearing House Association (“NACHA”), the Electronic Funds Transfer Act (“EFTA”), Regulation E of the EFTA, applicable data privacy and data protection laws, and the Fair Credit Reporting Act (“FCRA”).
2. Client shall comply with PCI DSS version 4.0 and any more current versions or amendments thereto, including, without limitation, any relevant maintenance, inspection, scanning, remediation and training obligations set forth therein.
3. Client authorizes Tyler to, directly or through a third party service, screen recipients to validate identity before processing a disbursement. Tyler will not be required to make any disbursement to a recipient that does not pass any such screening.
4. Client acknowledges and agrees that it shall not use the Disbursements Software or Services for speculative purposes or to make any payments relating to: money services businesses, virtual currency, materials that incite violence, hatred, or racism, or are considered obscene, or to any entity that Client or third-party providers has notified you has a fraud or chargeback risk or appears on OFAC sanctioned lists. The Client will not send funds for illegal, unlawful, or fraudulent activity.
5. Client acknowledges and agrees that the Disbursements Software and Services shall not be used to make or facilitate any transaction that is fraudulent or illegal in any applicable jurisdiction. Tyler shall have the right in Tyler’s sole determination, to prevent anyone who may potentially be violating any federal or state law, rule or regulation, or any operating rules, or that is suspected of fraud, from accessing the Disbursements Software or Services. Tyler reserves the right to monitor activity on any system and to shut down and/or suspend processing services in the event that it determines that there is illegal, unusual, or suspect activity occurring in relation thereto. Tyler shall have no liability to Client for any adverse financial or other consequences that may result from any action taken pursuant to this section.
6. If any change in the Disbursements Software and Services are required by applicable laws, rules, regulations, or other operating rules of the applicable payment networks, issuers or other relevant financial institution, Tyler will promptly notify Client of such modifications or changes and make modifications or changes, as necessary to, (i) the Disbursements Software and/or (ii) the manner and methods used to provide the Disbursements Services hereunder, as soon as practicable after Tyler has been notified of such required changes by the payment network, issuer or financial institution or learns of an applicable law, rule or regulatory change. Any such modification or change so required shall be made without the need for Client approval. Tyler shall use its reasonable efforts to give Client timely notice of all material changes to the program or system which are being made to comply with any known changes in federal or state laws, rules or regulations or the operating rules of the payment networks, issuer or other relevant financial institution.
7. As required by the EFTA and Regulation E, if Client is providing a government benefit, including but not limited to distributing needs-tested benefits and/or gate money, then:
   1. Client shall strictly ensure that any person to whom a card may be issued under the Agreement is, in advance of the issuance of the funds, provided with a clear and conspicuous choice of payment other than the card, such as, but not limited to, payment by check (the “Payment Choice Requirement”).
   2. Upon Tyler’s request no more frequently than quarterly, Client will promptly provide Tyler with a written certification with respect to Client’s compliance with the Payment Choice Requirement.
   3. Client’s noncompliance with the Payment Choice Requirement shall (A) constitute a material breach of this agreement by Client and give Tyler the right to immediately terminate this agreement upon written notice to Client, and (B) entitle Tyler to indemnification by Client from and against any and all claims, actions, liability, judgments, damages, costs, fines, penalties, and expenses, including reasonable attorneys’ fees to the extent arising from Client’s noncompliance with the Payment Choice Requirement, which indemnification obligation shall survive the termination or expiration of the Agreement.
8. Tyler will communicate with the Sponsor Bank and or issuer on the Client’s behalf for the purpose of providing the Sponsor Bank and/or issuer with the details of the disbursement of payments to the specified recipients in accordance with the instructions provided by Client and/or the recipients.
9. Tyler is a licensed money service business (“MSB”) under the supervision of the Financial Crimes Enforcement Network and applicable state regulatory authorities overseeing MSBs. Tyler may provide all or a portion of the AP Automation Disbursements Software and Services in its capacity as an MSB, including where required by law. Neither Tyler, nor its affiliates, are a bank. Any banking service provided as part of the AP Automation Disbursements Software and Services is provided by the Sponsor Bank or applicable issuer. No provision of this agreement should be read or interpreted to authorize or require Tyler to perform any action that would cause Tyler or its affiliates to be subject to, or in violation of, any federal, state or local law or regulation applicable to banks or other financial institutions or financial service providers.

Section D – Funding Model

1. Tyler will debit the payments from the Client's account, and Client agrees to the following:
   1. Client shall identify and hereby authorizes Tyler to conduct an Automated Clearing House (“ACH”) debit from and/or ACH credit to the bank account at the depository financial institution identified by Client (the "Designated Account") as needed to facilitate payments.
   2. Client agrees to maintain the Designated Account. Client hereby authorizes Tyler to withdraw funds from the Designated Account without signature or notice to initiate all offsets, deductions, and other transactions due Tyler as provided for in this agreement or from the services provided pursuant to this agreement. Client further agrees to execute any additional documents that may be required for Tyler to enforce its rights under this agreement. Client is solely responsible for all fees associated with maintaining the Designated Account. Tyler shall notify Client if at any time there are insufficient funds in the Designated Account to cover any amount that is due and owing to Tyler. Client shall promptly pay such amount to Tyler.
   3. This authorization is to remain in full force and effect until Tyler has received written notification from Client of its termination in such time and in such manner as to afford Tyler and the depository financial institution named below a reasonable opportunity to act on it. Client shall give Tyler no less than three (3) banking business days’ notice if the Designated Account is to be changed so as to allow sufficient time for Tyler to make the necessary system modifications.
   4. Client acknowledges and agrees that (a) payments are credited in real-time to recipients; (b) Tyler operates on a good funds model, and (c) funds must be available and on deposit at Tyler’s financial institution before payments can be made.
   5. It is not a requirement for Tyler to float funds to recipients; provided, however, if Tyler floats funds to meet a Client disbursement direction, Client will reimburse Tyler for any such floated amount.
2. Client understands that ACH debits and checks take approximately five (5) business days for funds to be fully collected for disbursements. Client understands that it must monitor and maintain sufficient funds for disbursement.
3. Client agrees that if Tyler is required to provide Client a receipt at the time the funds are pushed or debited for the disbursement(s), then Tyler may provide Client with one receipt per day, regardless of the number of transactions each day.
4. Client agrees that it authorizes Tyler to distribute payments on its behalf, and Tyler, or its affiliate, NIC Services, LLC, is acting as an agent of Client when receiving funds from Client and disbursing payments to recipients.

Updated 09/27/2024

• Section A – Definitions
• Section B – Disbursements Terms and Conditions
• Section C – Compliance
• Section D – Funding Model

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