Statewide Alternative Banking Services

MARYLAND STATE TREASUR ER’S OFFICE

LOUIS L. GOLDSTEIN TREASURY BUILDING
80 CALVERT STREET, ROOM 109
ANNAPOLIS, MARYLAND 21401

REQUEST FOR PROPOSALS (RFP) FOR

STATEWIDE ALTERNATIVE BANKING SERVICES

RFP # SABS- 0126 2024

ISSUE DATE: JANUARY 2 6, 2024

STO strongly encourage s MBE participation in all its solicitation s, especially when
there is /are no stated goal(s). To the extent that MBEs employed in this industry are
interested but are not fully qualified to respond, please contact the Procurement
Officer listed on the Key Information Summary Sheet for further information.

A Prospective Offeror that has received this document from a source other than eMarylandMarketplace
(eMMA ) https://procurement.maryland.gov should register on eMMA . See Section 4.2 .

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VENDOR FEEDBACK FORM
To help us improve the quality of State solicitations, and to make our procurement process more
responsive and business frie ndly, please provide comments and suggestions regarding this solicitation.
Please return your comments with your response . If you have chosen not to respond to this solicitation,
please email or fax this completed form to the attention of the Procurement Officer (see Key Information Summary Sheet below for contact information).
Title : STATEWIDE ALTERNATIVE BANKING SERVICES – RFP # SABS -01262024
1. If you have chosen not to respond to this solicitation, please indicate the reason(s) below:
Other commitments preclude our participation at this time
The subject of the solicitation is not something we ordinarily provide
We are inexperienced in the work/commodities required
Specifications are unclear, too restrictive, etc. (Explain in REMARKS section)
The scope of work is beyond our present capacity
Doing business with the State is simply too complicated . (Explain in REMARKS sect ion)
We cannot be competitive . (Explain in REMARKS section)
Time allotted for completion of the Proposal is insufficient
Start -up time is insufficient
Bonding/Insurance requirements are restrictive (Explain in REMARKS section)
Proposal requirements (other than specifications) are unreasonable or too risky (Explain in
REMARKS section)
MBE or VSBE requirements (Explain in REMARKS section)
Prior State of Maryland contract experience was unprofitable or otherwise unsatisfactory .
(Explain in REMARKS section)
Payment schedule too slow
Other: __________________________________________________________________
2. If you have submitted a response to this solicitation, but wish to offer suggestions or express
concerns, please use the REMARKS section below . (Attach addi tional pages as needed.)
REMARKS:
____________________________________________________________________________________
____________________________________________________________________________________
Vendor Name: ________________________________ Date: _______________________
Contact Person: _________________________________ Phone (____) _____ - _________________
Address: ______________________________________________________________________
E-mail Address: ___________________________________________________________

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KEY INFORMATION SUMMARY SHEET
Request for Proposals Statewide Alternative Banking Services
Solicitation Number: RFP # SABS -01262024
RFP Issue Date: January 26, 2024
RFP Issuing Office: Maryland State Treasurer’s Office (“STO” or the “Office”)
Procurement Officer: Kris Chewlin
Maryland State Treasurer’s Office
80 Calvert Street, Room 109
Annapolis, MD 21401

e-mail:
Office Phone: kchewlin@treasurer.state.md.us
(410) 260- 7428
Proposal s are to be sent to: eMMA Portal or via Trackable Mail or Hand Delivery

Questions Due Date and Time February 15 , 2024 at 2:00 PM EST
Offerors are to submit questions to the Procurement Officer via email
at: kchewlin@treasurer.state.md.us
Proposal Due (Closing) Date
and Time: March 7 , 2024 at 2:00 PM EST
Offerors are reminded that a completed Feedback Form is requested
if a no- bid decision is made (see page i i).
Oral Presentation s (for short -
listed offerors)
Week of March 18th -21st, 2024 at the STO’s location in Annapolis
MD.
MBE Subcontracting Goal: There are no MBE goals related to this RFP.
VSBE Subcontracting Goal: There are no VSBE goals related to this RFP
Contract Type: Fixed Fee ; Fees will not be adjusted during the first three years of the
initial five -year term of the Contract. Price adjustments will be
permitted to reflect the Consumer Price Index (CPI) based on the end
of the third year of the initial Contract period and upon subsequent
renewal option periods.
Contract Dura tion: Five (5) Year base period with two (2) two -year renewal opt ion
periods

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TABLE OF CONTENTS – RFP
1 Minimum Qualifications ...................................................................................................................... 1
1.1 Offeror Minimum Qualifications ................................................................................................. 1
2 Contractor Requirements: Scope of Work ........................................................................................ 3
2.1 Summary Statement ..................................................................................................................... 3
2.2 Order of Precedence .................................................................................................................... 3
2.3 Banking Services Requirements .................................................................................................. 3
2.4 Security and Anti -Fraud Requirements ....................................................................................... 9
2.5 Disbursement Services .............................................................................................................. 11
2.6 Depository Services ................................................................................................................... 15
2.7 Banking Information - CSA ...................................................................................................... 16
2.8 STO/Agency Testing Environment ........................................................................................... 20
2.9 Other Services for Consideration .............................................................................................. 20
2.10 Term .......................................................................................................................................... 21
3 Contractor Requirements: General .................................................................................................. 22
3.1 Contract Initiation Requirements ............................................................................................... 22
3.2 End of Contract Transition ........................................................................................................ 22
3.3 Invoicing .................................................................................................................................... 22
3.4 Disaster Recovery and Data ...................................................................................................... 23
3.5 Insurance Requirements ............................................................................................................ 24
3.6 Security Requirements ............................................................................................................... 25
3.7 SOC 2 Type 2 Audit Report ...................................................................................................... 27
3.8 Experience and Personnel .......................................................................................................... 28
3.9 Substitution of Personnel ........................................................................................................... 28
4 Procurement Instructions .................................................................................................................. 29
4.1 Pre-Proposal Conference ........................................................................................................... 29
4.2 eMaryland Marketplace Advantage (eMMA) ........................................................................... 29
4.3 Questions ................................................................................................................................... 29
4.4 Procurement Method ................................................................................................................. 29
4.5 Proposal Due (Closing) Date and Time ..................................................................................... 29
4.6 Multiple or Alternate Proposals ................................................................................................. 30
4.7 Economy of Preparation ............................................................................................................ 30
4.8 Public Information Act Notice .................................................................................................. 30

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4.9 Award Basis ............................................................................................................................... 30
4.10 Oral Presentation ....................................................................................................................... 30
4.11 Duration of Proposal .................................................................................................................. 30
4.12 Revisions to the RFP ................................................................................................................. 30
4.13 Cancellations ............................................................................................................................. 31
4.14 Incurred Expenses ..................................................................................................................... 31
4.15 Protest/Disputes ......................................................................................................................... 31
4.16 Offeror Responsibilities ............................................................................................................. 31
4.17 Acceptance of Terms and Conditions ........................................................................................ 31
4.18 Proposal Affidavit ..................................................................................................................... 32
4.19 Contract Affidavit ...................................................................................................................... 32
4.20 Compliance with Laws/Arrearages ........................................................................................... 32
4.21 Verification of Registration and Tax Payment .......................................................................... 32
4.22 False Statements ........................................................................................................................ 32
4.23 Payments by Electronic Funds Transfer .................................................................................... 33
4.24 Electronic Procurements Authorized ......................................................................................... 33
4.25 Living Wage Requirements ....................................................................................................... 34
4.26 Conflict of Interest Affidavit and Disclosure ............................................................................ 35
4.27 Maryland Healthy Working Families Act Requirements .......................................................... 36
5 Proposal Format ................................................................................................................................. 37
5.1 Two Part Submission ................................................................................................................. 37
5.2 Proposal Delivery and Packaging .............................................................................................. 37
5.3 Volume I - Technical Proposal .................................................................................................. 39
5.4 Volume I I - Financial Proposal ................................................................................................. 42
6. Evaluation and Selection Process ...................................................................................................... 43
6.1 Evaluation Committee ............................................................................................................... 43
6.2 Technical Proposal Evaluation Criteria ..................................................................................... 43
6.3 Financial Proposal Evaluation Criteria ...................................................................................... 43
6.4 Selection Procedures .................................................................................................................. 43
6.5 Documents Required upon Notice of Recommendation for Contract Award ........................... 44
Attachment A. Financial Proposal Instructions & Form .................................................................. 45
Attachment B. Proposal Affidavit ....................................................................................................... 47
Attachment C. Maryland Living Wage Affidavit of Agreement for Service Contracts ................ 55

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Attachment D. Conflict of Interest Affidavit and Disclosure ........................................................... 59
Attachment E. Contract ....................................................................................................................... 60
Attachment F. Collateral Security Agreement .................................................................................. 72
Attachment G. Designation of Depository .......................................................................................... 76
Attachment H. Contract Affidavit ...................................................................................................... 79
Appendix 1. – Section 6 -201(e) of the State Finance and Procurement Article of the Annotated
Code of Maryland ............................................................................................................................... 82
Appendix 2. – Section 6 -202 of the State Finance and Procurement Article of the Annotated Code
of Maryland ......................................................................................................................................... 83
Appendix 3. – Section 6 -209 of the State Finance and Procurement Article of the Annotated Code
of Maryland ......................................................................................................................................... 85
Appendix 4. – Section 6 -222 of the State Finance and Procurement Article of the Annotated Code
of Maryland ......................................................................................................................................... 86
Appendix 5. – Section 6 -203 of the State Finance and Procurement Article of the Annotated Code
of Maryland ......................................................................................................................................... 89

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1 Minimum Qualifications
Offeror Minimum Qualifications
As part of the determination t o be considered reasonably susceptible of being selected for award, the
Offeror shall specifically and clearly state in its proposal that it meets the re quirements in this section.
1.1.1 The Offeror is a financial institution as defined in Section 6 -201(e) of the State Finance
and Procurement Article of the Annotated Code of Maryland ( Appendix 1).
1.1.2 The Offeror must be certified by or a member in compliance with the Federal Deposit
Insurance Corporation (“FDIC”).
1.1.3 The Offeror shall maintain its KBRA rating or similar financial strength rating from a nationally recognized statistical rating o rganization o f at least a “B-” or IDC Financial
Publishing, Inc. numerical performance rating/grade of at least a “158” for the duration
of this contract (and/or) effective services rendered by the State Treasurer’s Office
(STO). Should the Offeror’s ratin g drop below a “B-” or “158”, the STO at their
discretion, may dismiss the Offeror, require additional collateral of the Offeror, or take
other actions to protect the funds and interest of the State of Maryland, as necessary.
1.1.4 The Offeror must have the abil ity to clear transactions or cash through all major book
entry or electronic securities depositories, such as the DTC/ID system and the Federal
Reserve System.
1.1.5 The Offeror must have a plan for business continuity and recovery as a result of a
disaster , cyber security data breach, internal embezzlement , etc.
1.1.6 The Offeror shall provide collateral for accounts in accordance with the requirements
set forth in §§ 6- 202 (1-10 & 13) , 6-209, and 6- 222 of the State Finance and
Procurement Article. (See Appendices 2, 3, and 4 respectively). Except as required or
permitted under § 6 -202 with respect to letters of credit provided as collateral, the
collateral shall be on deposit in the na me of the Treasurer, State of Maryland, either (a)
with the Federal Reserve Bank of Boston or (b) at the sole discretion of the Treasurer,
on deposit with an independent financial institution acceptable to the Treasurer or the
Treasurer’s Designee.
1.1.7 The O fferor must be a member of the National Automated Clearing House Association
(NACHA) and follow the rules outlined in the latest published ACH manual and process Electronic Funds Transfers (“EFTs”) in the manner prescribed by NACHA.
1.1.8 The Offeror must be aud ited annually by an independent certified public accounting
firm and an unqualified opinion must be issued by the auditor in connection with the
audit. Include Offeror’s most recent audited financial statements. One copy of the
financial report with all a ttachments is to be included in original volume only.
1.1.9 Offeror call centers providing customer service, and brick and mortar financial
institutions for service, as indicated in th is RFP, must be located within the geographical
boundaries of the United State s.
1.1.10 The Offeror must provide customer support in English and Spanish languages.
1.1.11 The Offeror must provide Information Technology (IT) services for customers with
non-visual access in accordance with the requirements set forth in §3.5 -311 of the State
Finance and Procurement Article. It is vital that the respective IT solution does not
require or rely on partnered software (plugin or 'overlay') to make the original IT

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solution accessible. This applies to products being built from the ground up,
Commercial off -the-shelf (COTS), Modifiable off -the-shelf (MOTS), and Government
off-the-shelf (GOTS).
1.1.12 The Offeror will immediately notify the STO of any overdraft in any account created
pursuant to this RFP that has not been fully funded within one business day.
1.1.13 The Off eror must be willing to complete any reporting forms associated with or
necessary for compliance for each respective agency’s state programs.
1.1.14 The Offeror will provide banking solutions as described within this RFP for all State
funds and will offer alterna tive solutions should there be more cost effective or efficient
options available.
1.1.15 The Offeror is required to review, analyze and evaluate the specific banking requirements and operations of each applicable agency and provide a comprehensive
banking plan of action to accommodate each agency’s unique needs. The Offeror must
present customized business documents to the agency, with a copy of such documents
to the Contract Monitor, outlining the responsibilities of both Offeror and agency prior to initiating t ailored banking services.

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2 Contractor Requirements: Scope of Work
Summary Statement
The Maryland State Treasurer’s Office (the “Office”) is requesting proposals to provide banking
services for State agencies with a need for alternative banking services to include depository, payment
processing and disbursement of funds.

2.1.1 It is the State’s intention to obtain goods and services , as specified in this RFP , from a
Contract between one selected Offeror and the State.
2.1.2 The STO intends to make a single award as a result of this RFP. See RFP Section 4.9
Award Basis for more Contract award information.
2.1.3 An Offeror, either directly or through its subcontractor(s), must be able to provide all
goods and services and meet all of the requirements requested in this solicitation and
the successful Offeror (the Contractor) shall remain responsible for Contract
performance regardless of subcontractor participation in the work.
Order of Precedence
The Contract between the parties will be embodied in the Contract doc uments which will consist of the
following, listed in their order of precedence:
1) the executed Contract;
2) the RFP; and
3) the Offeror's proposal.

The Office will not accept any modifications to the order of precedence provision of this solicitation.

Banking Services Requirements
In its proposal, each Offeror must clearly state that it meets the following requirements. (There may be
additional detail found in other areas of the RFP that provide explanations regarding the need for many of
the numbered requirements below). By stating “YES”, and providing brief supporting comments related to
the requirement, the Offeror ack nowledges that they meet each requirement .

1. Deposit ticket processing
2. Deposit item processing
3. ACH incoming/outgoing
4. Account maintenance
5. Daily FTP items
6. Online Image files of paid checks
7. Online stop payment system
8. Online Balance reporting
9. Online Positive Pay

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10. Controlled Disbursement
11. Sweep Services
12. Intra -day balance reporting
1 3. Automated account reconciliation

All services noted shall be performed in accordance with standards established by the Comptroller of the
Currency and the Federal Reserve System.
The State reserves the right to advertise the name and location of Offeror facilities in all areas of the St ate
at its sole discret ion.
Offeror is required to maintain a technological infrastructure capable of segregating all banking operations,
data, processes, reporting, online portal/treasury website access, and agency user online access, ensuring
distinct h andling for each agency separately.
This separation mandate extends to all other agencies, banking services, banking contracts or banking-
related data, regardless of the tax identification number that is used for each agency.

2.3.1 Check Cashing - The Offero r must cash for an individual, without fee, any State of
Maryland check drawn against its financial institution at any one of its branch es.
Subsequently, the Offeror must agree to cash for an individual, without fee, any State of Maryland check drawn on any financial institution under the amount of $2,000 signed
by the Maryland State Treasurer. Reasonable identification may be required at the time
of presentment .
2.3.2 Investment s - The Offeror must propose a system for safe invest ing of daily balance s
in the accounts subject to this RFP. Investment Services must meet the criteria of the
Maryland State Treasurer’s Office Investment Policy . Offeror must work in tandem
with the State’s contracted custodian for safekeeping of funds. Any direct investment
of State funds must meet the requirements of Section 6 -222 of the State Finance and
Procurement Article (Appendix 4). Applicable i nvestment earnings must be deposited
into the appropriate accounts monthly (ICS & CDARS products/services shall not be
used).
2.3.3 Vault Service (Agency Courier- Vault Off -Site Deposit Processing) - The Offeror
must provide Vault Off -Site Depository Services upon request for each Agency. The
Offeror is responsible for accepting, reviewing, and processing agency deposits
delivered by the designated courier accurately, as initiated and coordinated by the
Agency. All deposits received from the Agency's designated courier must be processed
and deposited on the same business day by the Offeror's Vault processing Unit.
a. The Offeror must provide the agency with confirmation via secured email, notifying
the agency of each processed item(s)/sealed deposit bag(s) dropped off by the
agency courier daily.

b. Item(s)/sealed deposit bag(s) dropped off by the agency designated cour ier that
visibly appear to be tampered with or not sealed must be returned to the designated
agency that initiated and coordinated the courier drop- off by the Offeror's Vault
Unit.

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c. The Offeror must promptly notify and provide documentation to each designa ted
agency of any errors in processing, calculation, or missing items caused by the
Offeror's Vault Unit within 48 business hours after the item(s)/sealed deposit bag(s)
was processed.

d. The Offeror is required to maintain a running customer service log, in excel format
separately for each agency, detailing issues resolved or pending further review or
investigation and providing a case number. All customer service issues, deposit
investigations, or deposit discrepancies must be reviewed, investigated, and
resolved within 30 business days by the Offeror from the agency incident report
date.

e. The Offeror must select, set up, and designate the Vault location(s) to be utilized
for processing, based on the closest proximity to the Agency Office or Satellite
Office location. The Agency must be given the choice and option by the Offeror to
select the Vault Unit location(s) they prefer for processing their agency - courier
dropped off deposits.

f. The Offeror must not impose restrictions or limitations on item(s)/sealed deposit
bag(s) dropped off by Agency designated courier based on quantity, volume,
amount, or size.

2.3.4 Reporting -
• Each morning the Offeror must make available to the Applicable Agency the actual ledger
balance in each account and any pending debit or credit items via an automated account
monitoring system. The Offeror must also provide an intra -day automated account
monitoring system for each account. In the event that the automated account monitoring
system is not available, the Offeror must present the s ame information, at the same time,
to the applicable agency by hard copy or email.

• The Offeror must provide the following daily reports:

a. A report indicat ing the beginning daily balance, appropriate payment activity and
daily ending balance ;

b. A daily bank statement which includes all paid items ; and
c. A daily listing of each total of the following: 1) manually issued items ; 2) stop
payments issued ; 3) stop payments removed ; 4) void or cancelled checks ; 5) checks
paid on issued items ; 6) any checks paid on non- issued items ; and 7) closing balance
in the account. This report should also detail the debit memos issued and any other
transactions affecting the a ccount .

d. A summary of the transactions noted above (1- 7) by category of item noting the
volume of each type of transaction and the total dollar value of those items;

e. A daily numeric listing of checks paid and checks outstanding noting the paid or
issued date, the check number and amount.

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• The Offer or must provide the following monthly reports:

a. On a monthly basis the Offeror must provide reports for the Agency accounts
detailing the daily account balance, the amount invested, the daily investment rate, and the interest earned. These reports must be made available to the applicable
agency by the
tenth day of the subsequent month.

b. The Offeror must provide detailed reporting related to account balances and
investment earnings for all accounts by the tenth day of the subsequent month.

c. The Offeror must provide a monthly report on the market value of collateral
pledged that must equal at least the highest daily account balance, less the deposit
insurance for account balances up to the maximum allowable by FDIC. This report
must be made a vailable to the applicable agency by the tenth day of the subsequent
month, listing the highest daily balance for each account and an itemized listing of collateral (pledged). Examples of preferred report format are available upon
request.

d. A full monthly reconciliation service report of all accounts to include at a
minimum: the items reported as issued electronically, a file of outstanding items, canceled items, paid items, and serial numbers of rejected items. Each file entry
shall indicate by ite m the payee’s name, item amount, item issue date and the item
paid date;
e. A monthly listing of each total of the following: 1) manually issued items; 2) stop
payments issued; 3) stop payments removed; 4) voided or cancelled checks; 5)
checks paid on iss ued items; 6) checks paid on non- issued items; and 7) closing
balance in the account.

This report should also detail the debit memos issued and any other transactions
affecting the account;

f. A summary of the transactions noted above (1- 7) by category of item noting the
volume of each type of transaction and the total dollar value of those items;

g. A monthly numeric listing of checks paid and checks outstanding noting the paid
or issued date, the check number and amount .

• Additionally, the Offeror must periodically render adhoc reports as necessary for
investigative purposes or as deemed necessary by applicable agencies.

• Any fees associated with the use of the account monitoring system to satisfy the reporting requirements under this RFP mu st be included in the Offeror ’s proposal.

2.3.5 Account Contact - The Offeror must identify the team that will be the State’s principal
contact within the Offeror's organization who will respond to all questions and inquiries
concerning the operation of the accounts. This team should be knowledgeable of the
account operations and capable of solving issues and resolving problems. The

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individuals on this team must also have sufficient authority to solve routine problems
and command the resources necessary to address complex issues.
2.3.6 Forgery - The Offeror is required to es tablish an automated process for the request and
submission of check forgery/fraudulent affidavits by each agency. Additionally, by the 7th business day of the subsequent month, the Offeror must furnish a 'Custom Report'
in excel or adobe pdf format to eac h agency separately, providing a status update on
each affidavit pending investigation. This report on check forgery/fraudulent affidavits
should encompass all pertinent details, including information on the forged checks, the
banking institution that proc essed the fraudulent item, the most recent contact with said
financial institution, and an update on the ongoing investigation.

The State will transmit any information concerning forged items immediately to the
bank; however, after the bank has made a val id attempt to recover the funds paid as a
result of a forgery, the State will hold the bank harmless up to the amount the item was
originally cashed as long as the original item was a valid item issued by the State, and
a valid stop payment had not been ob tained on the item.

2.3.7 The Offeror must provide the State the ability to offset service charges by having
residual collected balances accrue earnings credits. The decision to implement this
option will be at the State’s sole discretion. NOTE: Please do NOT cite proposed
earnings credit rates in this section. Proposed rates should be included in the Price
Proposal section.
2.3.8 Next Business Day - Deposited Check and Negotiable Instruments Availability -
The Offeror must provide next business day availability/ clearing for all checks and
negotiable instruments deposited into each Agency designated account from the prior
business day.
2.3.9 All checks and negotiable instruments deposited the prior business day must be made
available/cleared to the agency for next business day operations, including withdrawals, transfers, investing, and other operational requirements.
2.3.10 The Offeror must offer fully collateralized Certificates of Deposit (CD) to interested
agencies as a means of safekeeping of funds without cost or penaltie s for early
withdrawal.
2.3.11 Offeror must have the ability to create, format, and electronically transmit images
(front/back) of cleared paid checks daily in designated file formats and systems
parameters outlined by STO Information Technology. Offeror will arc hive images for
7 years). Each image file should be named after the corresponding check number.
Offeror shall provide an online treasury banking portal that will allow three Global
Administrators with independent authority to approve, sign, grant, and make changes to
sub-online users and will not require dual approval authority. Copies of archived images
shall be made available to the Agency within 48 business hours.
2.3.12 The Offeror shall render timely , monthly invoices identifying the volume and charges
per ca tegory for the previous month for each applicable agency ; as indicated in the price
proposal. Accounts shall not be auto debited for bank service fees at any time. Invoices
shall be forwarded to the applicable agency at the designated address.
2.3.13 The Offeror must provide domestic and foreign wire transfer services, with an option
for stand- alone wire templates.

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2.3.14 The Offeror must offer customized Commercial Escrow Account setup with the
following options:

a. Master Account with Sub Escrow Accounts linked to the Master Account; and
b. Individual escrow accounts not connected to a Master Account.

2.3.15 The Offeror must accept and process foreign check items and deposit them into
designated Agency accounts without requiring additional approval fro m State
representatives.

2.3.16 The Offeror must provide Letters of Credit or Bank Credit Letter requests by the
designated State Agency and must:
a. Be issued to the applicable State Agency;
b. Be held in the name of the applicable State Agency; and
c. Be completed and issued by the Offeror within five (5) business days of request.

2.3.17 The Offeror must receive and process all types of standard deposit activity, including
but not limited to pre -encoded check deposits as well as un -encoded check deposits,
over-the-counter deposits, secure night -drop deposits, wire transfers, and ACH credit s
and debits. T he accounts must be zero -balance accounts (ZBA), when applicable , with
the ability to collect and provide availability of funds to overnight investment accounts
(ICS and CDARS products/services shall not be used) , designated State Agency
Com mercial Demand Deposit Accounts or to Commercial Money Market or
Commercial Savings Accounts at the end of each business day.

2.3.18 Image cash letter deposits and pre- encoded check deposits will be presented daily to the
Depository Account. The timing and location for receipt of these deposits as well as the
availability schedule for deposited items must be included with the response. Copies of
receipted deposit tickets must be provided to the applicable Agency electronically or
via US Mail .

2.3.19 The Offeror shall promptly deliver Returned Deposited items to the applicable Agency.

2.3.20 The Offeror must agree to provide High- Volume check printing for use by the agencies
which must meet the following requirements:

a. High -Volume check printing must contain payee positive pay with review and
confirmation of every check.

b. The Offeror must accept and process an electronic bank file transmittal with
specified information included in each file.

c. The Offeror must agree to print checks within 48 business hours of requests.

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d. The Offeror must be equipped to pull, hold or void a single check or multiple
checks via email or phone.

f. The Offeror must provide options for mailing printed checks to include timing of
mailings and service providers.

g. The Offeror must be able to accommodate custom check printing for each agency
that chooses to utilize the High -Volume check printing service.
h. The Offeror must be equipped to issue checks in U.S. Dollars and distribute to
foreign addresses.

i. Expiration date of 180 days shall be reflected on the front of each check.

j. The Offeror will distribute all returned checks back to the applicable agency, daily.

Security and Anti-Fraud Requirements
2.4.1 Account Validation Services (AVS) - The Offeror must provide an automated account
verification service to confirm account information in order to mitigate and reduce
fraudulent account activity. AVS requirements are as such:
a. The Offeror must provide a validation capability for 1) Account validity and 2)
Account ownership for specified bank account information.
b. The Offeror must provide the option to submit bank account information
electronically and must work with the agenc y to customize upload formats and
requirements as necessary.
c. The Offeror must provide a confirmation receipt within 45 minutes of submission.
d. The Offeror must provide reporting of validation decisions to fit the agency’s needs.
The Offeror shall not rely on manual branch check verifications and may perform internal branch check verification in combination or in lieu of the following check security services.

2.4.2 Payee Positive Pay – The Offeror must provide Payee Positive Pay service for all State
Accounts to reduce and mitigate check fraud. Requirements are as such:

a. All checks must be reviewed and electronically transmitted for further review by the
applicable agency . Should the presented check not meet the accurate payee positive
paycheck file information. The Offeror must allow a decision deadline of 3:30pm
EST.

b. The Ag ency shall compile and maintain a valid issued items file and shall transmit an
updated file to the Offeror every business day. The Offer must review all incoming
items presented against the issued file, and the Offeror shall electronically report
suspect items presented for payment for payment acceptance or rejection.

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c. The Offeror must possess the systematic infrastructure and software capability to
customize the payee positive pay return/reject decision names/parameters per the
needs of the applicable age ncy.

2.4.3 Check Presentment Controlled Disbursement – The Offeror must allow for in- branch check
presentment as well as night drop deposits. The Offeror must provide check -controlled
disbursement to analyze, examine and enhance cash management controls. Controlled
Disbursement requirements are as such:

a. The Offeror must manage two check total presentments each morning by an agreed upon time by the Agency and the Offeror.
b. The check presentment totals must be sent via email twice daily to all applicable
representatives of each designated agency.
c. The Offeror must have the capability to execute controlled disbursement check
clearing and electronic ACH credit and debits from the same Agency bank account or
two or more separate agency bank accounts . The Offeror must have the ability to
customize bank account setup for each agency.

2.4.4 Image Cash Letter – The Offeror may use an image cash letter (ICL) to securely transmit
daily collected deposit data image files for processing and credit to applic able agencies
with next -day availability. Requirements for ICL are as such:
a. The Offeror may use ICL as a secondary main depository depositing method with
written approval by the STO to securely transmit daily files for processing.
b. The Offeror must be able to execute the primary depositing method without reliance
on ICL automated processes.
c. The Offeror must fully test, provide a visual demo, and implement all technical
requirements before any ICL implementation execution. This must be completely
automated a nd independently executed by the Offeror and approved by the STO prior
to implementation. The ICL file format may require customization by each applicable
agency.
d. ICL must be implemented and executed in accordance with Federal, State, and industry complian ce regulations. (Check 21 Act)
e. The Offeror is responsible for the inspection and verification of check scanners to ensure the check images are in high quality and high resolution and must make improvements to quality, as necessary.
f. The Offeror must have th e ability to generate a unique 10- digit deposit ticket number
and auxiliary number that will be permanently encoded into the ICL file. This number
will be posted on the State main depository bank BAI file for the STO to complete daily reconciliation. This must be completely automated and independently executed
by the Offeror and approved by the STO prior to implementation. The ICL file format
may require customization by each applicable agency.

2.4.5 Prenote Verification – The Offeror mus t have the ability to initiate, send, receive, and
execute bank prenote verification, including verification of the account name(s) and
preferably account address. Prenote verification must accurately match and confirm the
following information:

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a. Account Routing Number
b. Bank Account Number

The Offeror must acknowledge, recognize, and implement alternative systems or methods that
comply with Federal and State Holiday schedules. Unless specifically instructed by an Agency,
there shall be no banking proc esses including internal branch check verification, payee positive
pay, and bank file transmittals executed on recognized State Holidays. These bank operations
will resume on the subsequent business day.

Disbursement Services
2.5.1 The Offeror should have a systematic infrastructure and current technological capability
to receive and transmit agency -specific payment files to designated recipient banks
electronically, processed through the automatic clearing house to credit each speci fied
bank account.
a. This includes providing and sending confirmation bank file transmittals to each
specific agency for all cleared debit/payment transactions, processed payments,
electronic payments rejected or returned (ensuring required funds are credit ed back to
each agency -specific account), as well as processing present ments and recording
cleared automated and manually written checks issued by each specific agency,
aligning with the outlined services within this contract.

2.5.2 The Offeror must have the technological infrastructure to receive and transmit bank files
using all the referenced different platforms specific to each agency such as FTP, SFTP,
HTTPS, APIs, or MFT externally to the Offerors online portal or treasury website.

2.5.3 Each Agency will outlin e their specific technical banking requirements for transmitting
bank files, receiving bank files, and required custom data and the Offeror is responsible
for implementation and execut ion.

2.5.4 Upon receipt of each bank file transmittal, the Offeror must confi rm acceptance of the
bank file within 30 minutes, validate the transmitted file within 2 hours, provide
confirmation of the file successfully processed within 2hours and 30m inutes. The
Offeror must advise each agency of a ny corrupt, invalid or out -of-balan ce file within 45
minutes to allow sufficient time to re -creat e the file or correct control total entries in
order to ensure that the transactions are made on schedule.

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2.5.5 The Offeror must be able to accommodate the use of application programming
interfaces ( API) for use in exchange and validation of data.1
2.5.6 Offeror must automatically transmit and receive prior day transaction activities/daily
processed items via BAI2 file format no later than 5:30 am to the designated file name,
folder, systems, and platform outlined by each Agency IT Department . The Offeror
must have the capability to change or alter bank file transmittal names per the request
of each Agency.

2.5.7 Offeror must accept, receive, and transmit high- volume, high- capacity gigabyte bank
file transmittal s without any system limitations .

2.5.8 The Offeror will create, format, and electronically transmit clear paid check files daily in the designated file formats within system parameters outlined and instructed by
each Agency. Offeror will retain transmitted bank files, BAI Files, Paid Check files, and other "bank reconciliations files designated by each Agency for up to two weeks
after file posting date and, upon request by each Agency, the Offeror will make every
attempt to resend the "requested bank file or reporting file by end of the business day
but within 8 business hours at least.

2.5.9 The Offeror must have the ability to transmit and receive bank files within a Managed
File Transfer (MFT) platform; accep t, process, transmit, and confirm bank files with
addendum records to financial institutions nationwide. Bank file transmittals will
include addendum records ("advices") in the following formats , which must be
transferred with the payment transactions to t he receiving financial institution.
a. CCD (Cash Concentration or Disbursement) CCD addenda are used for corporate
payment sand include additional payment -related information such as invoice numbers
or payment notes.
b. CTX (Corporate Trade Exchange): Like CCD, CTX addenda are used for corporate
payments, allowing for more extensive remittance information to be included with the
transaction.
c. PPD or PPD+ (Prearranged Payment and Deposit Entry): PPD addenda are commonly
used for direct deposits, recurring payments , or other types of consumer payments,
providing additional details related to the transaction.
d. BOC (Back Office Conversion): BOC addenda are used for converting paper checks
received by a merchant or biller into ACH payments, providing related information
about the original check.
e. ARC (Accounts Receivable Entry): ARC addenda are used for converting checks
received via the mail into ACH transactions.
f. Service Message (SVC): SVC addenda are used to provide service- related messages
or instructions regarding th e ACH transaction.

1 An API, stands for application programming interface, is a set of protocols that enable different software
components to communicate and transfer data. APIs work by sharing data between applications, systems, and
devices. This happens through a request and response cycle. A user initiates a request for data by interacting with an
application. The request is sent to the API, which retrieves the data and returns it to the user.

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g. Payment Related Information (PRD): PRD addenda are used to include additional
information related to a payment, such as invoice numbers, payment details, or other
pertinent information.
h. WEB (Internet -Initiated Entries): WEB addenda are associated with consumer -
initiated online payments, providing context or additional details related to these
transactions.
i. TEL (Telephone -Initiated Entries): TEL addenda are used for telephone -initiated
payments, allowing additional information to accompany the transaction.
j. Tax Payment (TXP) addendum is utilized within the ACH system to provide additional
details and tax- related information along with the payment transaction. It specifically
serves as a structured format for transmitting tax payment -related data.
k. Tax Payment Plus (TXP+) addendum is an extension or an enhanced version of the
TXP (Tax Payment) addendum used in the ACH system. It is specifically designed to
provide even more comprehensive and detailed tax- related information along with the
payment transaction.

2.5.10 The Offeror must provide two senior technical representative contacts that each Agency
IT Department can contact directly for technology, transmittal, testing, configuration
issues, and new technology imple mentations.
a. The Offeror's two senior technical representatives must possess the technical
knowledge and scope to implement technology resolution, troubleshooting, testing,
and configurations related to the bank file transmittals.
b. The Offeror's two senior technical representatives will also create and submit any
technology tickets for the offeror tracking purposes and coordinate meetings with the Offeror's other internal technology departments.

2.5.11 ACH Transactions
a. Online ACH Origination - International and D omestic
The Offeror is required to furnish an online website or treasury portal for use by all
applicable State agencies facilitating the submission, processing, currency conversion,
and transmission of ACH payments domestically and internationally. The system must
possess the necessary capabilities to trace, research and initiate the reversal/recall of
domestic and international ACH transactions within five (5) business days after the
settlement date.
b. All ACH failures/returns must be accessible through the Offeror’s online
platform/system by 6:00 a.m. Est local time on the subsequent business day after receiving the failure notification from the receiving bank. The Offeror is required to
generate a distinct 'Custom Report' exclusively for ACH failures/retur ns for each
Agency separately. This segregated 'Custom Report' should be readily available on the
Offeror’s online banking platform/system every business day.
• Each Agency’s online portal must possess the capability to search, view, print,
and download/save all ACH failures/returns in Microsoft Excel and Adobe .pdf
formats. Users should be able to search for ACH fail ed items by selecting an
account number and return date within the Offeror’s online portal/treasury
website.

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• The Offeror's acknowledgment of ACH failure/return notifications guarantees
the return of ACH funds to the initiating agency's designated bank account.
c. The Offeror is required to provide a wire transfer system accessible via the Offeror's
online portal/treasury website for each agency separ ately. This system must facilitate
the initiation and transfer of funds both domestically and internationally.
• The online wire transfer system must include FX conversion rate functionality,
enabling the conversion and calculation of USD currency to the designated
foreign monetary rate, all within the Offeror's online portal/treasury website.
• For Domestic wire transfers, the Offeror must allow submissions every business
day until 4:30 pm. For Foreign wire transfers, submissions should be accepted
until 4: 00 pm each business day. All Domestic and Foreign wire transfer
requests must be confirmed, processed, and settled within a guaranteed 30-
minute window after submission.
• Furthermore, the Offeror's online wire transfer system must possess systematic
infrast ructure and capabilities allowing real -time visibility for other agency
specific users to identify which agency user submitted the wire transfer request
and the agency user who approved it; all within the Offeror's online
portal/treasury website.

2.5.12 Stop Payments
The Offeror must provide an online portal for agencies to use for the investigation of
check status; this portal must provide the ability for State agencies to request stop
payments for single or multiple checks in one sequence with confirmation of stops
delivered to the applicable agency. Stop payments shall remain in effect for a period of
(3) two years and may then be cancelled. These cancellations must be reported
separately.
a. All stop payments requested by 5:00 EST will be effective the same day. The Offeror
must provide email confirmation and identifying numbers for all stop payments, daily.
b. The Offeror must accept, receive, and process Stop Payment requests in the form of
a bank file transmittal from each agency. The Offer or must also provide confirmation
of the transmitted stop payment request via the bank file transmittal to each specific
agency before the end of each submission business day.

2.5.12 Stop Payment Custom Reporting

a. Automated Checks and original hand- written chec ks subject to stop payments placed
manually or by online agency users must be distinctly marked on the Offeror’s online
banking platform/system and on bank statements with a clear 'stop payment' indicator.
Stop payments should not be utilized to reduce the outstanding check totals.

b. The Offeror must provide report verification of stop payments within 24 hours of a
request and provide an identifying number for all stop payments placed.

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