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.99 Rnanclal Institution MasterCardMsa Merchant Agreement This MasterCardNisa Merchant Agreement (this '~reement") is entered into by and betwe€n Victoria Bank & Trust ("Financial Institution"), and City of San Marcos a ("Merchant"). Under the terms of this Agreement. (i) Merchan will honor valid Visa U.SA. Inc. ("Visa") and MasterCard International Inc. ("MasterCard") cards (collectively, "Cards') when presented as paymen for goods or services, and (ii) Financial Institution will extend financial accomodations to Merchant and arrange for payments to Merchant for thE amounts of such Card related sale and lease transactions, provided that such sale and lease transactions shall comply with the terms of this Agreemen and shall represent bona fide sales or leases directly by Merchant of goods or services. 1. Merchant Sales and Leases A. Honoring Cards. Merchant will honor any valid Cards properly tendered for use. B. Advertising; Forms; equipment. Merchant shall adequately display the Visa and MasterCard service marks and promotional materials suppliec , Financial Institution. Merchant shall use the MasterCard and Visa service marks only to indicate that Merchant accepts such Cards for payment 1d shall not indicate or imply, directly or indirectly, that either MasterCard or Visa endorses' Merchant's goods or services, nor shall Merchan' fer to such Cards in stating eligibility for Merchant's goods or services. Merchant shall also adequately display applications for Visa and MasterCarc accounts with Financial Institution (or, if Financial Institution does not issue Cards, with MBank USA). Merchant's right to use or display the Visa and MasterCard service marks shall continue only until the earlier of the date this Agreement is terminated, or the date Merchant is notified by Financial institution to cease such use and display. Financial Institution will provide adequate supplies of printed forms for sales drafts, customer adjustments or credits, sales draft deposits. and other transactions between Merchant and authorized holders of Cards ("Cardholders") and between Merchant and Financial Institution, which forms shall be used by Merchant. Financial Institution will provide Merchant with imprinters on such terms as Financial Institution and'Merchant shall mutually agree upon from time to time. No advertising material, imprinters, equipment. unused forms or Merchant deposit plastic cards prOvided by Financial Institution (collectively, "Equipment") shall become Merchant's property. Merchant will protect all Equipment from loss. theft. damage or any legal encumbrance, and will allCMI Financial Institution and its agents reasonable access to Merchant's premises for installation, repair, modification, removal and relocation of Equipment. C. Certain Practices Prohibited. Merchant shall charge no service, finance, or carrying charge of any kind to Cardholders over and above Merchant's stated price for goods or services sold or leased. Merchant shall neither make cash advances on Cards nor honor Cards for anything other than bona fide sales or leases of goods or services or both made directly by Merchant in the ordináÌy course of Merchant's business. Merchant shall not establish minimum or maximum transaction amounts as a condition for transactions with Cards. D. Cardholder Identification; Card Retrieval. Merchant shall examine each Card presented to determine that the Card presented is valid and has not expired by the terms on its face. Merchant shall exercise reasonable diligence to determine that the authorized signature on any Card presented corresponds to the Cardholder's signature on the transaction sales draft. Merchant shall examine all notices received from Financial Institution (or from its supplier), or from Visa or MasterCard ("Restricted Card Lists") to determine whether a card presented is counterfeit or has been revoked. Merchant shall neither honor expired. counterfeit, or revoked Cards nor honor any Card presented by any person other than the proper Cardholder as evidenced by the authorized signature on the Card. If so directed by a Card issuer or other entity from whom authorization is requested, Merchant shall retain the Card by reasonable and peaceful means. notify Financial Institution òf the recovery of the Card, and ask f,.,r further instructions. E. Floor Umits; Authorizations. From time to time, Financia! Institution shall notify Merchant of the maximum amount for which Cards may honored (the "Floor Limit"). The Floor Limits in effect as of the date of ,this Agreement are set forth in Schedule "þ\' attached hereto When :::ard is tendered for payment of an amount exceeding the Floor Limit then in effect. MerchanLshall contact Financial Institution or its desig'lee by telephone or or.-Jme ¡ermlna! for authorization ¡O honor the Card for the requested transaction. Except for telephone or mail orders thaI are in full compliance with Section 2.8 hereof, Merchant shall also obtain authorization for any transaction that involves (i) a handvv'ritten Sales Drafl (as defined belCMI) that does not contain the imprint of both the Mercna:1t plate and the Card: (ii) a Sales Draft that is not signed by the Cardholder, (Hi) a Card that does not contain the Cardholder's authorized signature on its reverse side: (iv) suspicious or unusua: circumstances: (v) an expired Card, or (v~ a Cara whose account number is listed in a Restricted Card lis!. When requesting authorization in any such circumstance. Merci1ant shall give the specific reason(s) that authOrization is requested. In any transaction for whicn authorization is required, Mercnant shalf write on ¡he Sales Draft the authorization number or approval code given and shall complete the transaction only after receiving the necessary authorization. Merchant hereby acknowledges that an authorization received from Financial Institution qr its designee indicates the availability of credit for the Card at the time the authorization is given. but does not constitute a warranty that the person presenting the Card is the rightful Cardholder, nor an unconditional promise or guarantee that Financial Institution will arrange for payment for the debt that underlies the requested transaction (or will not charge back to Merchant a debit against any payment thus arranged for). F. Multiple Sales Drafts; Partial Payment. Merchant shall include on a single Sales Draft the total amount of all goods and services pUíchased or leased in a single transaction, except (i) when the t ~Iance of the amount due is paid by the Cardholder at the time of the transaction in cash or by check. or (i~ when the Cardholder executes two separate Sales Drafts in a delayed delivery sale. In a delayed deliverysale a deposit is made by completion of one Sales Draft and payment of the balance is tendered by completion of a second Sales Draft. The latter Sales Draft shall be conditioned upon delivery of goods or performance of services. Authorization is required if the total amount of the two Sales Drafts exceeds the Floor Limit in effect at the time of the initial transaction, and separate authorization numbers shall be assigned for each such Sales Draft. Merchant shall note on the Sales Drafts the words "deposit"' and "balance" as appropriate. The Sales Draft labeled "balance" shall not be presented to Financial Institution until the goods are delivered or services performed. Merchant shall not use two or more Sales Drafts originated by the use of a single Card, whether or not in a single transaction, to avoid obtaining required authorization. U~A-169 (REV 9/91)