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Sponsor Bank Arrangements

Last modified on March 28, 2025

These Sector Terms are incorporated into the Agreement and apply to Customer’s use of RPD where Customer provides services to Customer Clients through a depository financial institution that has contracted with Customer (“Sponsor Bank”), who provides regulated financial services to Customer Clients, such as money transfer services or a depository account (“Sponsor Bank Arrangement”). These Sector Terms set forth additional covenants, representations, and warranties that Customer agrees to in order to use RPD.

The Parties agree as follows:

  1. Section 4.1(a) of the Ripple Payments Direct Terms is deleted in its entirety and replaced with the following:

“(a) it has all necessary power and authority to execute, deliver, and perform the Agreement and to enter into the Transactions, specifically including cross-border Transactions or Transactions that may involve payment of Transaction Currencies to or from foreign jurisdictions;”

  1. Customer represents and warrants, and will demonstrate or document to the satisfaction of Ripple upon reasonable demand, the following:
    1. Sponsor Bank has all necessary licenses, charters, exemptions, or other regulatory approvals to provide the financial services under the Sponsor Bank Arrangement in all jurisdictions where such services are provided.
    2. Each depository or transaction account provided by the Sponsor Bank to facilitate money transfer services is owned and controlled exclusively by the Sponsor Bank rather than Customer, such as an account under the EIN or tax ID number of the Sponsor Bank and titled for the benefit of Customer Clients or substantially similar titling (each a “Sponsored Account”).
    3. The provision of financial services to Customer Clients by the Sponsor Bank is clearly and appropriately disclosed to all Customer Clients, including, at a minimum, in written agreements agreed to by Customer Clients and in appropriate places on Customer’s website, app, or platform through which such services are provided or advertised.
  2. Customer covenants and agrees to the following:
    1. Customer will promptly notify Ripple in writing if there is, or if Customer anticipates, any change in the arrangement with the Sponsor Bank that will or reasonably may disrupt Customer’s ability to conduct Transactions under the Agreement, including such scenarios as: (i) termination or suspension of the services provided by, or the agreement with, the Sponsor Bank, (ii) an adverse change in Applicable Law, or (iii) a material regulatory enforcement action against either the Sponsor Bank or Customer. Immediately after receiving such notice, Ripple may, at its sole discretion, suspend, terminate, restrict or limit Customer’s access to RPD, or take any other action Ripple deems necessary.
    2. Customer will promptly notify Ripple in writing if Customer transitions to a new Sponsor Bank or enters a new Sponsor Bank Arrangement with an additional Sponsor Bank during the term of the Agreement, including the identity of the new Sponsor Bank. Before commencement of Transactions involving the new Sponsor Bank, Ripple, at its sole discretion, may require Customer to obtain and provide written confirmation from the new Sponsor Bank that (i) the new Sponsor Bank understands that Customer will be using RPD to conduct cross-border transfers and that the Sponsor Bank permits such activity and (ii) the Sponsor Bank agrees that it is responsible to Customer Clients for any funds received. If Ripple determines, in its sole discretion, that the transition to a new Sponsor Bank would likely result in a violation of Applicable

 

Law, a material disruption of Transactions, or any other negative impact on RPD or on Ripple, Ripple may suspend, terminate, restrict or limit Customer’s access to RPD or take any other action Ripple deems necessary.

  1. All Transaction Amounts will be handled exclusively by the Sponsor Bank and/or clear and settle to a Sponsored Account, and will not, for any period of time, settle to any bank account owned and controlled by Customer in the course of any Transaction, except upon the express written consent of Ripple.
  2. Customer will promptly provide any other information or documentation reasonably requested, relating to the Sponsor Bank Arrangement, requested by Ripple. Ripple will have the right, but not the obligation, to review and approve any Sponsor Bank Arrangement before its use in connection with Transactions. Ripple will have the right, in its sole discretion, to allow or disallow the use of any Sponsor Bank Arrangement in connection with Transactions.