MoneyGram 2007 Annual Report Download - page 135

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MONEY ORDERS
Company issues money orders, which are drafts drawn by Company on Company. Company is liable under the law to pay the money
orders when they are presented for payment and agrees to do so unless Company has a legal defense. Seller does not acquire any
right, title, or interest in the money orders. All money orders remain the property of the Company.
1. SALES. Seller's acceptance of any form of payment other than cash is at Seller's sole and exclusive risk, and Seller shall be liable to
Company for the face amounts of all money orders sold by Seller, regardless of whether Seller ultimately receives payment. Seller agrees
to imprint each money order with the amount. Seller will not issue a money order for more than $1000.00 per item. In addition, until
otherwise agreed, Seller shall have the right to issue money orders payable to its vendors in face amounts up to but not exceeding
$9,999.99 per item. Seller is authorized to use money orders for its own or its affiliates' obligations for payments to store vendors, on an
as-needed basis.
Seller agrees to suspend selling Company money orders immediately upon written notice from Company of termination of this Agreement.
2. COMPENSATION. As compensation for the Money Order Services, Seller agrees to make fee payments to Company or Company
agrees to make rebates to Seller as follows. The fee or rebate will be recalculated after each calendar quarter based on the previous
quarter's volume. The new fee/rebate will be effective on the first day of the following quarter. Should Seller be eligible for a fee rebate
based on the schedule below, the rebate will be paid within 30 days after the end of the applicable calendar quarter.
Average Items/Store/Month Fee or Rebate per Item
Below [*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] [*]
[*] and above [*]
Dispenser Fee: None
3. CARE OF BLANK INSTRUMENTS. Seller agrees to use reasonable care to keep blank money orders safe at all times and safeguard
equipment and unissued money orders. Company will be responsible for loss of blank money order forms only when all of the following
conditions occur:
a. Seller is not at fault, or negligent, or in breach of this Agreement;
b. Seller has given the same protection to the blank money order forms that a reasonably prudent person would give to his own
cash; and
c. Company receives notice, including the serial numbers of the missing blank money orders, by telephone within 24 hours of the
time that Seller learns (or should have known) of such loss.
4. REQUESTS FOR STOP PAYMENTS. Seller has no legal right to stop payment of Company's money order. Seller may request that
Company refuse payment of a money order sold by Seller. If Company stops payment of a money order at Seller's request, Seller agrees
to indemnify Company against claims of a holder and pay the reasonable expenses and attorneys' fees to defend any legal action that
results.
5. FINANCIAL RESPONSIBILITY. Each party agrees to maintain a sound financial condition. Company will maintain funds sufficient to pay
its money orders when they are presented for payment.
[*] Please refer to footnote on page 1. 9