This is an authorization for electronic debits from your bank account. Read it before you accept it.
In these terms (this "Authorization"), "Loop", "we", "us" and "our" mean Loop Financial Inc. d/b/a Loop and its affiliates, successors and permitted assigns. "You" and "your" mean the business that holds a Loop Account and each person who accepts this Authorization on that business's behalf. "Bank" means the depository institution that holds your Loop Account and that acts as the Originating Depository Financial Institution ("ODFI") for entries initiated under this Authorization.
This Authorization is a Supplementary Agreement for the purposes of the Loop Platform Agreement. Capitalized terms not defined here have the meanings given to them in the Platform Agreement. Where this Authorization conflicts with the Platform Agreement, this Authorization governs.
This Authorization covers funding transfers: moving funds from a bank account you hold at another institution into your Loop Account.
Because you are debiting an account you own to credit another account you own, the Company Name shown on your statement will be your own business name.
This Authorization is for business accounts. You represent and warrant that each account you link is held by a registered business entity and is used primarily for business or commercial purposes, and is not a consumer account established primarily for personal, family or household purposes. Entries are transmitted as corporate entries under the Nacha Operating Rules.
Because these are business accounts, the consumer protections of Regulation E (12 C.F.R. Part 1005) — including its error-resolution procedures and its 60-day dispute window — do not apply. If any account you link is in fact a consumer account, tell us immediately at pad@bankonloop.com and stop using it with the Loop platform.
You authorize the initiation of electronic debit entries — and, where necessary, credit entries and adjustments to correct an error — through the Automated Clearing House ("ACH") Network against any U.S. bank account you link to your Loop Account (each, a "Linked Account"). You authorize the depository institution that holds the Linked Account to debit or credit that account accordingly, and you authorize Loop to transmit your instructions to the Bank for that purpose.
You represent and warrant that:
Linking an account you do not own is a misuse of the Loop platform and may be a violation of federal law. We may suspend or close your Loop Account for it.
Transfers under this Authorization are for variable amounts and may be one-time or recurring, as you instruct.
Amount. You set the amount of each transfer at the time you instruct it.
Timing. Each entry will be initiated on or after the date you instruct. Entries may be submitted as Same Day ACH, in which case they may settle on the same banking day. If a scheduled date falls on a weekend or bank holiday, the entry will be initiated on the next banking day. Funds may be held until the Bank has confirmed they are available.
You authorize each transfer through the Loop platform. When an authorized administrator on your Loop Account signs in using their credentials and approves a specific amount, that approval is your authorization and instruction for that entry. Each approval will identify the amount, the Linked Account and the date.
You are responsible for maintaining the confidentiality of your credentials and for keeping your list of authorized administrators current. You agree that we and the Bank may rely on any instruction we reasonably believe came from an authorized administrator.
You authorize us, the Bank and our service providers to verify the Linked Account and your ownership of it — including by initiating prenotification entries, micro-deposits or account validation inquiries, and by using bank data aggregation or open banking services you connect. You authorize the institution holding the Linked Account to disclose account status and ownership information for that purpose.
We may decline to enable a Linked Account, or suspend transfers from it, where ownership cannot be verified.
As the Originator of entries initiated under this Authorization, you agree to be bound by the Nacha Operating Rules and Guidelines, as amended from time to time. You agree not to initiate or authorize any entry that violates U.S. law, including regulations administered by the Office of Foreign Assets Control. The Bank may impose additional requirements on you as its ACH origination customer, and those requirements apply in addition to this Authorization.
You may revoke this Authorization at any time. To revoke, remove the Linked Account in the Loop platform or write to us at pad@bankonloop.com, giving the Linked Account details and the effective date.
Your notice must reach us at least 3 banking days before any scheduled transfer. A revocation does not stop an entry already in process. Revoking this Authorization does not cancel or reduce any amount you owe under the Platform Terms or any other agreement with Loop.
We or the Bank may terminate this Authorization, or stop accepting instructions against a Linked Account, at any time on written notice to you, effective when sent to the email address on file for your Loop Account unless we state a later date.
Because you originate these transfers against an account you own, a transfer will rarely be "unauthorized." If a transfer was for the wrong amount, went to or from the wrong account, or was duplicated, contact us immediately at pad@bankonloop.com. We will work with the Bank to correct it.
BUSINESS ACCOUNTS HAVE A SHORT RETURN WINDOW. Under the Nacha Operating Rules, an institution must generally return an unauthorized corporate debit by the opening of business on the second banking day following settlement. This is far shorter than the 60-day window that applies to consumer accounts. Review your account activity promptly.
Your ability to obtain a return is governed by your deposit agreement with the institution holding the Linked Account and by the Nacha Operating Rules, not by this Authorization.
If an entry is returned unpaid for insufficient or uncollected funds, it may be reinitiated up to two more times for the same amount, within 180 days of the settlement date of the original entry. A reinitiated entry will not include interest, NSF charges or any other additional amount.
Any returned-item fee payable under the Platform Terms will be charged separately, against your Loop Account, and not added to a reinitiated entry.
If an entry is returned for any other reason, we may contact you and initiate a corrected entry once you confirm the correct account details.
You authorize the initiation of reversing or correcting entries, and any debit necessary to recover funds, where an entry was made in a duplicate or erroneous amount or to the wrong account. Reversals will be initiated within the timeframes permitted by the Nacha Operating Rules — generally within 5 banking days of the settlement date of the erroneous entry.
Tell us in writing at least 15 business days before your next scheduled transfer if your Linked Account details change, and give us the details of the new account. You can update your Linked Account in the Loop platform. You authorize us and the Bank to accept and act on any notification of change received through the ACH Network regarding your account or routing information, and to update records accordingly.
If funds you have transferred are subsequently used to make a payment to a party outside the United States, that outbound payment may be classified and transmitted as an International ACH Transaction (IAT) under the Nacha Operating Rules. You authorize the inclusion of the information required for an IAT entry and its disclosure to the financial institutions in the payment chain and to regulators as required.
This Authorization and evidence of your authorization for each entry are retained for at least two years following termination or revocation, and longer where other law requires it. Proof of your authorization will be provided to the Bank or to you on request. A copy of this Authorization is available at any time in the Loop platform or on request at pad@bankonloop.com.
You accept this Authorization electronically, through the Loop platform. We record the date and time of your acceptance, the user who accepted, and the Linked Account it applies to; that record is the date of your authorization and is your signature for the purposes of the Nacha Operating Rules and the federal E-SIGN Act.
Your consent to receive this Authorization, and all related notices and records, electronically is governed by the Loop US Electronic Communications Agreement, including its hardware and software requirements and the consequences of withdrawing consent.
You agree that an electronic record of this Authorization is as valid and enforceable as a signed paper original, and that it may be produced in any proceeding.
Loop may assign this Authorization, and its rights and obligations under it, to any affiliate, successor or purchaser of all or substantially all of its business or assets, including by way of reorganization, change of control or operation of law. We will give you written notice of any such assignment, including the identity and contact information of the assignee. You may not assign this Authorization without our prior written consent.
We may amend this Authorization on 30 calendar days' written notice to you. If you do not agree to an amendment, you may revoke this Authorization under Section 8 before the amendment takes effect.
This Authorization is governed by the laws of the Province of Ontario and the federal laws of Canada applicable in it, without regard to conflict of laws rules, except to the extent that the Nacha Operating Rules and applicable U.S. federal law govern the initiation and return of ACH entries. Any legal action or proceeding arising out of or relating to this Authorization will be instituted in the courts of the Province of Ontario, and the parties submit to the exclusive jurisdiction of those courts. This matches the governing law of the Loop Platform Agreement.
Legal name: Loop Financial Inc. d/b/a Loop
Address: 1255 Bay Street, Suite 900, Toronto, Ontario M5R 2A9
Email: pad@bankonloop.com
Contact us at any time to make an inquiry, obtain information, or raise a concern about any transfer.
