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					        LOTTERY COLLECTION AND DISBURSEMENT SERVICES
                   REQUEST FOR PROPOSAL

                                     Table of Contents



I.    PURPOSE AND INTENT                                         1

II.    TERMS AND CONDITIONS                                      3

A.     Applicable Rules and Regulations                           3

B.     Project Management                                         4

C.     Timetable of Events                                        4

D.     Mandatory Bidders' Conference                              5

E.    RFP Questions from Bidders                                  5

F.     Revisions to the Request for Proposal                      6

G.     Proposal Due Date                                          6

H.     Oral Presentation and Vendor Site Visitation/Inspection    6

I.    Contract Award                                              7

J.     Length of Contract                                         7

K.     Contract Extension                                         8

L.     Vendor Right to Protest                                    8

M.     Termination of Contract                                    9

N.     Contract Continuity/Transitional Period                    9

O.     Unanticipated Services                                     9

P.     Unanticipated Curtailment of Branch Services               9

Q.     Prime Contractor Responsibilities                         10

R.     Subcontracting                                            10

S.     Assignment                                                11

T.     Cost Liability                                            11




LOTTERY RFP 2005                       Page 1
U.       Ownership of Material                                                            11

V.       Data Confidentiality                                                             11

W.       Promotional Use Prohibited                                                       12

X.       Accounting Records                                                               12

Y.       Severability                                                                     13

Z.       Indemnification                                                                  13

AA.      Insurance                                                                        13

BB.      Conflict of Interest                                                             14

CC.      Public Records                                                                   15

DD.      Single Response                                                                  15


III.     OTHER MANDATORY PROVISIONS                                                       16

A.       Financial Statements                                                             16

B.       Stockholder Disclosure Form                                                      16

C.       Non-Discrimination Law                                                           16

D.       Collateralization of Deposits                                                    16

E.       Proof of Registration Requirements                                               17

F.       Executive Order No. 129                                                          18

G.       Executive Order No. 134                                                          19

H.       Disaster Recovery Plan                                                           23

I.     Image Processing of Public Records and Certification of Image Processing Systems   23


IV.      PAYMENT METHOD AND TERMS                                                         24

A.       Compensating Balances                                                            24

B.       Payment Terms                                                                    24

C.       Monthly Analysis                                                                 25


V.       SCOPE OF WORK                                                                    26

A.       General Requirements                                                             26




LOTTERY RFP 2005                         Page 2
B.      Accounts to be Established                  27

C.      Account Data Information and Requirements   27

D.      Web Based Inquiry/Communication System      42

E.      Report Requirements                         48

F.      Vendor Contact Personnel                    53

G.      Training                                    54

H.      Conversion/Implementation                   55


VI.       EVALUATION CRITERIA                       56

VII.      VENDOR RESPONSE                           57

VIII.     COST SCHEDULE                             66




LOTTERY RFP 2005                     Page 3
     LOTTERY COLLECTION AND DISBURSEMENT SERVICES
                REQUEST FOR PROPOSAL

                             Exhibits Table of Contents

     EXHIBIT A:    Future Direction of OIT - Security for Asset Classification and
                   Control


     EXHIBIT B:    Stockholder Disclosure Form


     EXHIBIT C:    Department of the Treasury Collateralization Policy Statement


     EXHIBIT D:    Executive Order 134 Certification


     EXHIBIT E:    Disclosure of Political Contributions


     EXHIBIT F:    Continuing Disclosure of Political Contributions


     EXHIBIT G:    Lottery Accounts Structure and Funds Flow


     EXHIBIT H:    Lottery Collection Revenue Account ACH Transaction Detail for
                   Fiscal Year 2004

     EXHIBIT I:    Lottery Collection Revenue Account Transaction Type Statistics
                   in Fiscal Year 2004


     EXHIBIT J:    Lottery Disbursement Account Activity for Fiscal Year 2004


     EXHIBIT K:    Age Outstanding Transfer Report


     EXHIBIT L:    Full Reconcilement Balance Sheet




LOTTERY RFP 2005                  Page 4
     EXHIBIT M:    Full Reconcilement Balance Sheet Supplemental Information


     EXHIBIT N:    Magnetic Media Reporting Specifications


     EXHIBIT O:    Electronic Images - System Certification, Storage, Backup, and
                   Disaster Prevention/ Recovery


     EXHIBIT P:    Destruction Requirements for State Records Canceled Checks and
                   Electronic Images


     EXHIBIT Q:    Executive Order 129 Certification


     EXHIBIT R:    Lottery Collection Annuity Account Activity for Fiscal Year 2004




LOTTERY RFP 2005                Page 5
     LOTTERY COLLECTION AND DISBURSEMENT SERVICES
                REQUEST FOR PROPOSAL


I.   PURPOSE AND INTENT


     The purpose of this request is to solicit proposals from qualified New Jersey vendors for
     the placement of three (3) State Accounts and for the accurate and timely processing
     of all services associated with these accounts. The accounts are as follows:


                                     Lottery Collection Revenue Account
                             1
                                     (ZBA Master Account)
                                     Lottery Collection Annuity Account
                             2
                                     (ZBA Sub Account)
                                      Lottery   Disbursement    Account
                             3
                                     (ZBA Sub Account)



     The State reserves the right to consolidate the accounts or increase the number of
     accounts, as the need arises, during the course of this contract term.


     For all three (3) accounts, the vendor must provide Cash Accounting a Web Based
     Inquiry/Communication System, and provide Lottery inquiry capability only for the Lottery
     Collection Revenue Account and Lottery Collection Annuity Account.


     As a prerequisite for the Lottery Collection Revenue Account, the selected vendor must
     have the capability to receive Lottery ACH debit information by electronic transmission
     and initiate ACH debit and receive ACH credit transactions in the standard NACHA
     CCD format.


     All Lottery retailers are required to maintain their lottery accounts in an institution with
     electronic ACH capabilities.


     The Lottery Collection Annuity Account will be funded by ACH credits and check
     deposits received from approximately 13 insurance companies. The balance of this


LOTTERY RFP 2005                    Page 1
     account will be moved daily via a ZBA transaction to the Lottery Collection Revenue
     Account and occasionally, funds will be transferred via an internal transfer (Book to
     Book) to the Lottery Disbursement Account.


     The Lottery Disbursement Account must be established as a positive pay and controlled
     disbursement account. This account will be funded by ZBA transfers from the Lottery
     Collection Revenue Account and internal transfers (Book to Book) from the Lottery
     Collection Annuity Account. The Lottery Disbursement Account must have the capability
     of processing both check and wire transfer payments on a regular basis.


     Below is the summary list of vendor services, not necessarily all inclusive, that will be
     required for consideration of an award. The detailed specifications are delineated in the
     Scope of Work Section of this RFP.




                      Controlled disbursement, ZBA and positive pay account capability and
               1
                      reporting
               2      Electronic transmission and receiving capability
               3      Check cashing capability
                      Check depository capabilities within Mercer County, or some other
               4
                      acceptable alternative
               5      Web Based Inquiry/Communication System
               6      Full Account reconciliation services
               7      Monthly bank statements
               8      ACH sending and receiving capabilities in the CCD format
               9      Wire transfer with daylight overdraft coverage capabilities
              10      Automated daily balance reporting (prior day and intra day information)
              11      Intra-day reporting capabilities (wire transfer information)
              12      Timely reports per RFP specifications
              13      Timely, reliable customer service
              14      Paid check imaging and document destruction




LOTTERY RFP 2005                   Page 2
II.   TERMS AND CONDITIONS


      A.   Applicable Rules and Regulations


           The vendor must be a state or nationally chartered bank, with branches in the
           State of New Jersey, employ New Jersey residents, and be in compliance with all
           federal and/or New Jersey State laws governing all services to be awarded.


           The vendor must be a member of an automated clearing house association and be
           in compliance with all rules and regulations set forth by the National Automated
           Clearing House Association (NACHA), local ACH association(s) and ACH
           operators.


           The vendor must be a member of the Federal Reserve direct wire system.


           It is agreed and understood that any contract placed as a result of this proposal
           shall be governed and construed and the rights and obligations of the parties
           hereto shall be determined in accordance with the laws of the State of New Jersey.

           The TERMS AND CONDITIONS, OTHER MANDATORY PROVISIONS and
           PAYMENT METHOD AND TERMS of this Request for Proposal (RFP) will
           supersede any and all conflicting terms and conditions, including bank
           agreements, submitted by the bank/contractor. The State of New Jersey will not
           modify its terms and conditions or execute separate bank agreements.


           Proposals that do not conform with or that take exception to the State of New
           Jersey’s terms and conditions, other mandatory provisions and payment methods
           and terms, as set forth in this RFP, will be considered non-responsive and
           therefore rejected.


           The entire content of this RFP, all addenda and the bank's proposal will become
           the basis for any award and contract. These documents shall, whenever possible,
           be construed in harmony.     However, if there is a conflict between the terms




LOTTERY RFP 2005                   Page 3
          contained in these documents, the order of precedence shall be: (1) the
          addendum(s); (2) the RFP; and (3) the bank’s proposal.


     B.   Project Management


          The Office of Management and Budget, Treasury Cash Accounting Unit will be
          responsible for the day to day operational administration of the account(s) and will
          be the contact agency for operational issues after contract award.

          The Project Manager for this program for the State of New Jersey is:

                           Robert Giallella
                           State of New Jersey
                           Department of the Treasury
                           Office of Management & Budget
                           33 West State Street, 3rd Floor
                           PO Box 224
                           Trenton, New Jersey 08625-0224
                           Phone: (609) 984-3496
                           Email: Robert.Giallella@treas.state.nj.us

          The Cash Management Unit will be responsible for any contract related issues.


     C.   Timetable of Events


          The State reserves the right to modify any of the cited dates upon notification to
          the vendors.



                                     Event                             Date
                         Issuance of Request                    April 1, 2005
                         Mandatory Bidders' Conference         April 27, 2005
                         Proposal Due Date                      May 20, 2005
                         Anticipated Award Date                 July 7, 2005
                         Conversion/System Testing              July 8, 2005
                         Contract Commencement                October 3, 2005




LOTTERY RFP 2005                   Page 4
     D.   Mandatory Bidders' Conference


          Attendance at the following bidders' conference is a prerequisite for proposal
          submission.

                DATE:         April 27, 2005
                TIME:         10:00 a.m.
                PLACE:        State of New Jersey
                              Purchase Bureau Conference/Bid Room, 9th Floor
                              33 West State Street
                              Trenton, New Jersey


          During the conference, RFP requirements will be reviewed and questions from the
          interested bidders addressed.


          Any deferred questions will be responded to in writing and distributed only to those
          vendors in attendance at the conference. Oral explanations given anywhere but at
          the bidders' conference shall not be binding.



     E.   RFP Questions from Bidders


          Before the mandatory bidder’s conference, interested bidders may submit written
          questions regarding this document to the Cash Management Unit, on or before
          April 20, 2005 to the following address:

                           Charlene M. Mello
                           State of New Jersey
                           Department of the Treasury
                           OMB, Cash Management Unit
                           33 West State Street, 5th Floor
                           P.O. Box 221
                           Trenton, New Jersey 08625-0221

           Or questions can be emailed to the following address:

                           Charlene.Mello@treas.state.nj.us




LOTTERY RFP 2005                   Page 5
     F.   Revisions to the Request for Proposal


          If it becomes necessary to revise any part of the RFP prior to the mandatory
          conference, time permitting, revisions will be made in the form of a written
          addendum and provided to all vendors who received the initial document.            If
          revisions are necessary after the mandatory conference, the revisions will be
          provided only to those vendors who attended the conference.


     G.   Proposal Due Date


          In order to be considered for selection, one original, clearly marked "ORIGINAL",
          signed by an officer who is authorized to bind the respondent contractually, and
          six (6) copies of the proposal must arrive on or before the date specified in the
          Timetable of Events, and addressed as follows:


                Charlene M. Mello
                Department of the Treasury
                Office of Management and Budget
                Cash Management Unit
                P.O. Box 221
                Trenton, New Jersey 08625 -0221


     H.   Oral Presentation and Vendor Site Visitation/Inspection


          Vendors who submit a proposal may be required to give an oral presentation to the
          evaluation committee. This will provide an opportunity for the vendor to clarify or
          elaborate on its proposal. However, an oral presentation does not provide the
          vendor the opportunity to change the original bid or correct any deficiencies in its
          proposal. Vendors should not construe the invitation for an oral presentation to
          imply any acceptance or rejection of bids.


          The Department of the Treasury, Cash Management Unit, will schedule the
          presentations.


          At the time of proposal evaluation, the State reserves the right to inspect the
          vendor's facilities, including any and all subcontractors' facilities. Any time after
          award, the State reserves the right to inspect the vendor's facilities, including any


LOTTERY RFP 2005                   Page 6
          and all subcontractors' facilities, without prior notice by the State. However, if
          circumstances    warrant    prior   notice   because   of   security   or   proprietary
          considerations, please include an explanation of such reservation in your
          response. Failure to comply with this request may result in disqualification or
          termination of the contract.


          Prior to contract award, the oral presentation and vendor site inspection may be
          combined.


     I.   Contract Award


          The entire contents of this RFP, all addenda and the vendor's proposal will
          become the basis for any award resulting from this solicitation.


          The State of New Jersey reserves the right to reject any or all proposals, to award
          to other than the low bidder, to award in whole or in part, and to waive any minor
          informalities not in compliance with the specifications of this request if deemed in
          the best interest of the State to do so.


          Any statistics or values shown in the RFP are either based on past history, or best
          estimates. The future quantities, values or activities may be more or less than
          those noted herein and could change during the course of the contract term.


     J.   Length of Contract


          The contract will be for a three (3) year term. The vendor may not open, close or
          modify accounts until officially notified by the Department of the Treasury, Cash
          Management Unit.


          Any agreement executed as a result of this acquisition process is contingent upon
          the State Legislature appropriating such funds as necessary, to the extent such
          funds are necessary, to pay the vendor for services rendered.




LOTTERY RFP 2005                     Page 7
     K.   Contract Extension


          The State will have the option to extend the contract for two (2) one year
          periods, or any portion thereof, if it is deemed in the best interest of the State to do
          so. The vendor will be notified of the State’s intent at least 90 days prior to the
          expiration date of the existing contract. The vendor will have 15 calendar days to
          respond to the State’s request. If the vendor agrees to the extension, all terms,
          conditions and pricing of the original contract and any mutually agreed to changes
          will apply.


          At the time of contract extension, an increase in price will be considered. The unit
          prices during the extension periods may be adjusted utilizing the Consumer Price
          Index unadjusted for All Urban Consumers, New York-Northern New Jersey Region
          and Philadelphia-South Jersey Region using a 2/3 to 1/3 weight respectively, as
          published by the Bureau of Labor Statistics of the United States Department of
          Labor.    For price adjustments during the option periods, the prices may be
          increased by the same percentage as the percentage increase shown in the index
          for January of the extension year compared to the Index for January of the prior
          year or for the most recent reported twelve-month period.          At the time of the
          extension option, the vendor must include in their response to the State the price
          increases, from and to, for each of the line item charges, along with supporting
          Labor Statistics documentation. The State will then independently verify the price
          adjustment.

     L.   Vendor Right to Protest

          A vendor’s right to protest RFP specifications and intent of contract award is
          governed by N.J.A.C 17:12.


          For all cash management contract protests, although N.J.A.C 17:12 references the
          Director of the Division of Purchase and Property, the Treasurer (or designee) shall
          be the individual authorized to decide these protests.




LOTTERY RFP 2005                    Page 8
     M.   Termination of Contract


          The State reserves the right to terminate any agreement entered into as a result of
          this RFP providing written notice has been given to the vendor at least 30 days
          prior to such proposed termination date unless otherwise provided herein.           At
          contract termination, the vendor must cooperate fully with the State and the new
          contract vendor to affect a smooth transition, which would include transferring all
          necessary databases, files and other information needed for the continued
          operation of the application.


     N.   Contract Continuity/Transitional Period


          In the event the service or services are scheduled to end by contract expiration or
          by termination by the State (at the State's discretion), and if requested by the State,
          the vendor must continue the service(s) until new services can be completely
          operational. At no time shall this transitional period extend more than 180 days
          beyond the expiration date of the existing contract. The vendor will be reimbursed
          for this service at the rate in effect when this transitional period clause is invoked
          by the State.


     O.   Unanticipated Services


          Should additional State initiated work be required which is beyond the scope of this
          RFP, the State of New Jersey reserves the right to negotiate with the awarded
          vendor reasonable fees for services unanticipated or not existing at the time of
          contract award. If required, the State will request a written cost estimate and a
          schedule of the work plan. The State must approve the fees and/or work plan prior
          to initiation of the work. Upon failure to arrive at a negotiated fee schedule and/or
          work plan, the State may, at its option, contract for the services through a
          competitive process.


    P.    Unanticipated Curtailment of Branch Services


          If at any time during the term of the contract, the bank reduces or otherwise alters
          the level of Branch Services detrimentally to the State that were in place at the
          beginning of the contract, the Bank must make arrangements, at its own expense,


LOTTERY RFP 2005                    Page 9
          to maintain the level of Branch service that was in effect at contract initiation. This
          requirement will be of significant importance relative to the Lottery Disbursement
          Account.


    Q.    Prime Contractor Responsibilities


          The   selected    vendor,    and     any   successor   vendor,   (in   the   event    of
          merger/acquisition or other change in operating status), will be required to assume
          sole responsibility for the complete effort of any contract(s) awarded to the vendor
          subsequent to its bid submission, and assume all cost incurred by the State,
          directly or indirectly, in connection with or as a result of the transition.         If a
          merger/acquisition has been announced prior to or during the vendor’s proposal
          preparation period, identify all relevant or emerging dates surrounding the merger
          relative to official name change, system changes, account number changes, etc. if
          known at the time of bid submission.


          The State will consider the prime contractor, to be the sole point of contact with
          regard to contractual matters. The prime contractor is responsible for the
          professional quality, technical accuracy, timely completion of any and all services
          awarded to the vendor as a result of the solicitation, and without additional
          compensation, correct or revise any errors, omissions, or other deficiencies in their
          products, services, reports, equipment, information, etc. in order to meet the
          requirements as specified herein. The successful vendor will furnish the names of
          the officers and management personnel who will be utilized in the fulfillment of any
          agreement resulting from this request.


     R.   Subcontracting


          All subcontractors must be approved by the State. If the vendor has knowledge
          prior to proposal submission date that any part of the work covered by this request
          will be subcontracted, the vendor must identify the subcontracting organization, its
          officers and the contractual arrangements made therewith, and state what services
          are to be subcontracted.


          If, during the contract term, the vendor desires to employ or replace any
          subcontractor, the vendor must provide 90 days written notice to the State. The


LOTTERY RFP 2005                     Page 10
          State will evaluate the replacement firm's qualifications. No replacement firm shall
          begin work without prior State approval.


          The prime contractor is totally responsible for adherence by the subcontractor to all
          provisions of the contract between the vendor and the State. Nothing contained in
          these specifications or subsequent specifications shall be construed as creating
          any contractual responsibility between the subcontractor(s) and the State.


     S.   Assignment


          The vendor is prohibited from assigning, transferring, conveying, subletting or
          otherwise disposing of this agreement or its rights, title or interest therein or its
          power to execute such agreement to any other person, company or corporation
          without the previous consent and approval, in writing, by the State. Unless
          otherwise agreed to in writing by the State, the assignee shall bear all cost
          incurred by the State, directly or indirectly, in connection with or as a result of
          such an assignment.


     T.   Cost Liability


          The State of New Jersey assumes neither responsibility nor liability for costs
          incurred by vendors prior to issuance of an agreement, contract or purchase order.


     U.   Ownership of Material


          Ownership of all data, material and documentation originated and prepared
          exclusively for the State pursuant to any contract shall belong exclusively to the
          State and shall be delivered to the State upon 30 days notice by the State.


     V.   Data Confidentiality


          All data contained in the documents or files supplied by the State are to be
          considered confidential and shall be solely for the use of the State. All Account
          files are presently designated “Confidential” as defined in EXHIBIT A Future
          Direction of the Office of Information and Technology (OIT) - Security for
          Asset Classification and Control. The bank must define their process for


LOTTERY RFP 2005                    Page 11
          meeting the “Confidential” requirements. They must have the ability to secure the
          data as “Secret” if OMB requires this level of security in the future.


          The standard for all bank transmission is presently Connect: Direct Secure+. The
          Secure+ option provides strong authentication, data encryption and data integrity
          checking. It uses X.509 certificates to positively identify the entities with which vital
          data is shared and uses Secure Socket Layer (SSL) technology for data
          encryption. The vendor must document their ability to support Connect: Direct
          Secure+ and maintain software compatibility with the State on all patches and new
          releases of the product.


          The Standard Entry Class (SEC) Code that is presently used by the various
          accounts is CCD.      The State plans on taking advantage of all advancements
          offered by the ACH Network. The vendor must be able to demonstrate that they
          have the ability to support these updates to the electronic funds transfer system.


          The vendor will be required to use reasonable care to protect the confidentiality of
          the data. Any use, sale or offering of this data in any form by the vendor, its
          employees, subcontractors, or assignees is prohibited and may cause termination
          and legal action to be taken, with all cost of any such legal action to be borne by
          the vendor.

     W.   Promotional Use Prohibited


          Banks will be prohibited from advertising or promoting any trade or business by
          reference to any agreement or services performed hereunder, including the
          issuance of news releases, resulting from any award.

     X.   Accounting Records


          The vendor is required to maintain accounting records and other documentation
          needed for the execution of any and all agreements. This will include, but not be
          limited to, copies of deposits, monthly invoices and monthly analyses. These
          records must be made available to the State at all reasonable times during the




LOTTERY RFP 2005                     Page 12
           contract term and for a period up to seven (7) years from the date of final
           payment.


           The State reserves the right to have its personnel, its designated representatives
           or its auditors, monitor and audit as often as the State deems necessary, the
           activities and related processing and accounting records of the vendor and all
           subcontractors, to ensure proper compliance to the terms as specified within this
           document.


           The vendor(s) must provide adequate facilities for the State auditors to use when
           they perform their regular and random audits.

     Y.    Severability


           In the event that any provision of this RFP or any agreement executed in
           accordance herewith shall be held invalid or unenforceable by any court of
           competent jurisdiction, such holding shall not invalidate or render unenforceable
           any other provision.


     Z.    Indemnification


           The vendor shall assume all risk of and responsibility for and agrees to indemnify,
           defend and hold harmless the State and its employees from and against any and
           all claims, demands, suits, actions, recoveries, judgments, costs and expenses in
           connection therewith on account of the loss of life, property, or injury or damage to
           the person, body or property of any person or persons whatsoever, which shall
           arise from or result directly or indirectly from the work and/or materials supplied
           under any agreement. This indemnification obligation is not limited by, but is in
           addition to the insurance obligations contained in this agreement.

     AA.     Insurance


             The vendor will furnish to the State such evidence of insurance as the State may
             require at the time of award and for all periods during the term of the agreement
             and any extensions to the agreement.


LOTTERY RFP 2005                    Page 13
           For all coverage and renewals, the documents must contain the provision that
           the insurance provided shall not be canceled for any reason except after 30 days
           written notice to the State of New Jersey, Department of the Treasury. All
           insurance shall be written for not less than any limits of liability herein specified or
           required by law, whichever is greater.


           1. Comprehensive General Liability policy as broad as the standard coverage
               forms currently in use in the State of New Jersey, which shall not be
               circumscribed by any endorsements limiting the breadth of coverage. The
               policy shall be endorsed to include:



                         Broad Form Comprehensive General Liability
                         Products/Completed Operations
                         Premises/Operations



               The limits of liability for bodily injury and property shall not be less than $1
               million per occurrence as a combined single unit.


           2. Automobile Liability Insurance, which shall be written to cover any automobile
               used by the insured. Limits of liability for bodily injury and property damage
               shall not be less than $1 million per occurrence as a combined single limit.


           3. Worker’s Compensation Insurance applicable to the laws of the State of New
               Jersey and Employers Liability Insurance with limits not less than:


                           $100,000 Bodily Injury Each Occurrence
                           $100,000 Disease Each Employee
                           $500,000 Disease Aggregate Limit


     BB.   Conflict of Interest


           No award will be made to a vendor who in the opinion of the Department of the
           Treasury has interests, business ventures, proprietorships, employment, or


LOTTERY RFP 2005                   Page 14
           public office, which would create a conflict of interest. The State reserves the
           right to question vendors with respect to actual or potential conflicts of interest.


     CC.   Public Records


           The entire content of each bid response is a public record and, as required by
           New Jersey Law, is available for public inspection. Persons who wish to read
           proposals should make an appointment by calling the Department of the
           Treasury, Office of Management and Budget, Cash Management Unit at: (609)
           777-3925 or (609) 292-8172.

     DD.   Single Response


           A single response to this RFP may be deemed a failure of competition; and, at
           the option of the Treasurer, the RFP may be canceled. Likewise, receipt of only
           one response may allow the Treasurer to claim it as a valid sole source
           acquisition of services.




LOTTERY RFP 2005                      Page 15
III.   OTHER MANDATORY PROVISIONS

       A.   Financial Statements


            As part of the proposal the prime vendor and any subcontractors directly involved
            with providing any part of the services, must submit their latest audited financial
            statements, or financial comments if a privately held company.

       B.   Stockholder Disclosure Form


            The vendor and all its known subcontractors must complete the enclosed
            Stockholder Disclosure Form and submit it with the proposal. See EXHIBIT B for
            the Stockholder Disclosure Form.

       C.   Non-Discrimination Law


            All parties to any contract with the State of New Jersey agree not to discriminate
            in employment and agree to abide by all anti-discrimination laws including those
            contained within N.J.S.A. 10:2-1 through N.J.S.A. 10:2-4, N.J.S.A 10:5-1 et seq.
            and N.J.S.A. 10:5-31 through 10:5-38, and all rules and regulations issued there
            under. For additional information on the Non-discrimination Law, you may call
            the Law Reference Library at (609) 292-6230 or visit: http://www.njleg.state.nj.us
            and select Law and Constitution and then Statutes.

       D.   Collateralization of Deposits


            The State Treasurer shall require from the bank a deposit of bonds, notes,
            certificates of indebtedness of bill or other obligations of or guaranteed by the
            United States; or other obligations of or guaranteed by the State of New Jersey;
            or any other obligation now or hereafter authorized by law as security for public
            deposits.


            For the total bank balances resulting from the account, the collateralization
            requirement must adhere to EXHIBIT C Department of the Treasury
            Collateralization Policy Statement.




LOTTERY RFP 2005                   Page 16
     E.   Proof of Registration Requirements

           Public Law 2001, Chapter 134 requires all contractors and subcontractors
           providing goods/services to State agencies and authorities to provide the
           contracting agency with proof of registration with the Department of the
           Treasury, Division of Revenue.


           The Division of Revenue’s Client Registration Bureau provides proof of
           registration certificates to all registrants. Business Registration Certificates
           (BRC) list basic business identification information and unique registration
           sequence numbers that can be verified by the Client Registration Bureau.


           Pursuant to an amendment to NJSA 52:32-44, State and local entities are
           prohibited from entering into a contract with an entity unless the contractor has
           provided a copy of its business registration certificate as part of its bid
           submission. As mandated by this bill, failure to submit a copy of the Business
           Registration Certificate within the bid proposal will be deemed non-responsive
           and therefore will result in disqualification of the bid proposal.


           This statute also requires that all contract vendors also submit a copy of the
           Business Registration Certificate for each subcontractor they intend to use prior
           to contract implementation. The law prohibits contractors from entering into a
           contract with a subcontractor who has not provided the contractor a copy of its
           business registration certificate.


           The basic registration process involves filing Form NJ-REG. An overview of the
           NJ-REG process is found on http://www.state.nj.us./njbgs/bgsclientreg.html. This
           page contains links to downloadable instructions and paper forms. NJ-REG may
           be filed on-line, from http://www.state.nj.us/njbgs/services.html, by selecting “On-
           Line Services, One-Stop Business Filing and Registration” and then “Register a
           Business for Tax and Employer Purposes”.


           Any questions in regard to business registration requirements can be directed to
           the Division of Revenue at (609) 292-1730.




LOTTERY RFP 2005                   Page 17
     F.    Executive Order No. 129


           1.      Under the Executive Order 129 issued on September 9, 2004 (“E.O.
                   No. 129”), the State shall not award a contract to a vendor that submits
                   a bid proposal to perform services, or have its subcontractor[s]
                   perform services, outside the United States, unless one of the
                   following conditions is met:

                   a.      The vendor or its subcontractor provide a unique service, and no
                           comparable,     domestically-provided    service   can    adequately
                           duplicate the unique features of the service provided by the
                           vendor or and/or its subcontractor; or


                   b.      A significant and substantial economic cost factor exists such that
                           a failure to use the vendor’s and/or the subcontractor’[s] services
                           would result in economic hardship to the State; or


                   c.      The Treasurer determines that a failure to use the vendor’s and/or
                           its subcontractor’s services would be inconsistent with the public
                           interest.

           2.      Source Disclosure Requirements

                   Pursuant to E.O. No. 129, all vendors seeking a contract with the State of
                   New Jersey must disclose:

                   a.      The location by country where services under the contract will be
                           performed; and

                   b.      The location by country where any subcontracted services will be
                           performed.

                   The State prefers the vendor submit with its bid proposal EXHIBIT Q
                   Executive Order 129 Certification, filled out with the sourcing
                   information required for itself and any proposed subcontractor, identified
                   in its proposal.




LOTTERY RFP 2005                      Page 18
                   If the certification is not submitted with the bid proposal, it shall be
                   submitted within five (5) business days of the State’s request for the
                   information.


                   Failure to submit sourcing information when requested by the State shall
                   preclude award of a contract to the vendor.


           3.      Breach of Contract of Executive Order 129


                   A shift to outsourced services during the term of the contract shall be
                   deemed a breach of contract.

                   If, during the term of the contract, the contractor or subcontractor, who
                   had on contract award declared that services would be performed in the
                   United States, proceeds to shift the performance of the services outside
                   of the United States, the contractor shall be deemed in breach of the
                   contract, which contract shall be subject to termination for cause, unless
                   the Treasurer shall have first determined in writing that extraordinary
                   circumstances require a shift of services or that a failure to shift the
                   services would result in economic hardship to the State.

                   The         link        to        Executive         Order          129     is
                   http://www.state.nj.us/infobank/circular/eom129.htm. It is important to
                   note    that E.O. No. 129 applies to all service contracts.


     G.    Executive Order No. 134

           In order to safeguard the integrity of State government procurement by imposing
           restrictions to insulate the award of State contracts from political contributions
           that pose the risk of improper influence, purchase of access, or the appearance
           thereof, Executive Order 134 was signed on September 22, 2004 (“EO 134”).
           Pursuant to the requirements of EO 134, the terms and conditions set forth in this
           section are material terms of any contract resulting from this RFP:




LOTTERY RFP 2005                      Page 19
          1.       Definitions

                   For the purpose of this section, the following shall be defined as follows:


                   a.     Contribution – means a contribution reportable as a recipient
                          under    “The    New     Jersey    Campaign      Contributions    and
                          Expenditures Reporting Act.” P.L. 1973, c. 83 (C.10:44A-1et seq.),
                          and implementing regulations set forth at N.J.A.C. 19:25-7 and
                          N.J.A.C. 19:25-10.1 et seq. Currently, contributions in excess of
                          $400 during a reporting period are deemed “reportable” under
                          these laws. As of January 1, 2005, that threshold will be reduced
                          to contributions in excess of $300.


                   b.     Business Entity – means any natural or legal person, business
                          corporation, professional services corporation, Limited Liability
                          Company,     partnership,   limited   partnership,   business    trust,
                          association or any other legal commercial entity organized under
                          the laws of New Jersey or any other state or foreign jurisdiction. It
                          also includes (i)all principals who own or control more than 10
                          percent of the profits or assets of a business entity or 10 percent
                          of the stock in the case of a business entity that is a corporation
                          for profit, as appropriate; (ii)any subsidiaries directly or indirectly
                          controlled by the business entity; (iii)any political organization
                          organized under 26 U.S.C.A. 527 that is directly or indirectly
                          controlled by the business entity, other than a candidate
                          committee, election fund, or political party committee; and (iv)if a
                          business entity is a natural person, that person’s spouse or child,
                          residing in the same household.


           2.      Breach of Terms of Executive Order 134 Deemed Breach of
                   Contract


                   It shall be a breach of the terms of the contract for the Business Entity to
                   (i)make or solicit a contribution in violation of this Order, (ii)knowingly
                   conceal or misrepresent a contribution given or received; (iii)make or
                   solicit contributions through intermediaries for the purpose of concealing
                   or misrepresenting the source of the contribution; (iv)make or solicit any
                   contribution on the condition or with the agreement that it will be


LOTTERY RFP 2005                   Page 20
                   contributed to a campaign committee or any candidate of holder of the
                   public office of Governor, or to any State or county party committee;
                   (v)engage or employ a lobbyist or consultant with the intent or
                   understanding that such lobbyist or consultant would make or solicit any
                   contribution, which if made or solicited by the business entity itself, would
                   subject that entity to the restrictions of EO 134; (vi)fund contributions
                   made by third parties, including consultants, attorneys, family members,
                   and employees; (vii)engage in any exchange of contributions to
                   circumvent the intent of EO 134; or (viii)directly or indirectly through or by
                   any other person or means, do any act which would subject that entity to
                   the restrictions of EO 134.


           3.      Certification and Disclosure Requirements


                   a.     The State shall not enter into a contract to procure from any
                          Business Entity services or any material, supplies or equipment,
                          or to acquire, sell or lease any land or building, where the value of
                          the transaction exceeds $17,500, if that Business Entity has
                          solicited or made any contribution of money, or pledge of
                          contribution, including in-kind contributions to a candidate
                          committee and/or election fund of any candidate for or holder of
                          the public office of Governor, or to any State or county political
                          party committee during certain specified time periods. Accordingly,
                          the Business Entity shall submit with its bid proposal Executive
                          Order 134 Certification(s) in the form set forth in EXHIBIT D
                          Executive Order 134 Certification attached hereto, certifying
                          that no contributions prohibited by Executive Order 134 have been
                          made by the Business Entity. A separate Certification is required
                          for each person or organization defined above as a Business
                          Entity. Failure to submit the Certification(s) with the Bid Proposal
                          will be deemed non-responsive and therefore will result in
                          automatic rejection of the bid proposal.


                   b.     Prior to awarding any contract or agreement to any Business
                          Entity, the Business Entity proposed as the intended awardee of



LOTTERY RFP 2005                   Page 21
                          the contract shall report all contributions the Business Entity made
                          during the preceding four years to any political organization
                          organized under 26 U.S.C.527 of the Internal Revenue Code that
                          also meets the definition of a “continuing political committee”
                          within the mean of N.J.S.A. 19:44A-3(n) and N.J.A.C. 19:25-1.7, in
                          the form of the Disclosure attached hereto as EXHIBIT E
                          Disclosure of Political Contributions. A separate Disclosure is
                          required for each person or organization defined above as a
                          Business Entity. Upon receipt of a Notice of Intent to Award a
                          Contract, the intended awardee shall submit to the Office of
                          Management       and   Budget,    Cash    Management       Unit,   the
                          Disclosure(s) within five (5) business days of the State’s request.


                   c.     Further, the Contractor is required, on a continuing basis, to report
                          any contributions it makes during the term of the contract, and any
                          extension(s) thereof, at the time any such contribution is made. A
                          copy of the Continuing Disclosure of Political Contributions is
                          attached hereto as EXHIBIT F Continuing Disclosure of
                          Political Contributions. A separate Disclosure is required for
                          each person or organization defined above as a business entity.


           4.      State Treasurer Review


                   The State Treasurer or his designee shall review the Disclosures
                   submitted pursuant to this section, as well as any other pertinent
                   information concerning the contributions or reports thereof by the
                   intended awardee, prior to award, or during the term of the contract, by
                   the contractor. If the State Treasurer determines that any contribution or
                   action by the contractor constitutes a breach of contract that poses a
                   conflict of interest in the awarding of the contract under this solicitation,
                   the State Treasurer shall disqualify the Business Entity from award of
                   such contract.




LOTTERY RFP 2005                    Page 22
     H.    Disaster Recovery Plan

           As part of any contract award, the vendor(s) must maintain a disaster recovery
           plan designed to minimize any disruption to the services being performed. The
           bank’s disaster recovery plan, contingency and backup procedures should be
           made available for review by the State, within ten (10) days of a request by the
           State. As part of the State’s Disaster Recovery Exercises, these items will be
           subject to annual review.

           The bank must be able to demonstrate, during an inspection of operations and a
           review of documented procedures that in the event of a system breakdown or
           catastrophic event, State operations will be minimally affected and State records
           recovered intact. Given the worst case scenario, the vendor must be completely
           functional within 24 hours of a major disaster.


           The bank must fully cooperate during any and all disaster recovery testing
           operations initiated by the State. It must be ready to receive and validate test files
           transmitted or delivered from a State of New Jersey disaster recovery exercise.


           For disaster and recovery purposes, the bank must be able to receive and
           process data files from the State in the following formats: electronic transmission
           or CD ROM. In addition, the bank must be able to demonstrate that sufficient
           safeguards are in place to prevent test files from being loaded into a production
           environment.

     I.    Image Processing of Public Records and Certification of Image Processing
           Systems


           The Division of Archives and Records Management (DARM) has set forth the
           standards, procedures and rules for image processing of public records for the
           preservation, examination and use of such records, including indexing and
           arrangement thereof as required by Public Law 1953, c. 410 (NJSA 47:3-26) as
           amended, and PL 1994, c. 140 (NJSA 47:1-12).


           Please access the DARM website for the standards, procedures and rules for
           image processing of public records at the following two sites:
           http://www.state.nj.us/state/darm/links/njac-15-3-4.html.
           http://www.njarchives.org/links/njac-15-3-5.html


LOTTERY RFP 2005                   Page 23
IV.   PAYMENT METHOD AND TERMS


      The State will pay for vendor services with fees and compensating balances when they
      exist. It is the State’s intent to maintain compensating balances at a minimum and to
      pay for services primarily with fees. However, at the discretion of the Department of the
      Treasury, cumulative excess balance credits, if available from other State demand
      account balances, may be used as compensation for the services rendered under this
      contract.


      A.   Compensating Balances

           The compensating balance must be considered as the total average collected
           balance of the account(s) less the 10% non-earning Federal Reserve requirement.
           It is the State’s policy to avoid the maintenance of sizable balances. However, for
           any balances that do exist, the State requires full compensating balance credit.


           The basis for the earnings rate will be determined from the average of each
           month’s 13-week Treasury Bill auctions. All auctions for which the settlement date
           falls in that month will be included in the month’s simple average. The coupon
           equivalent yield of each auction will be used.


           The earnings rate developed will be applied each month against the average daily
           net collected balance of the account(s) to determine the value of bank services
           earned that month with compensating balances.             If the earnings of the
           compensating balances exceed the value of total bank services provided in any
           month, the excess will be applied to subsequent monthly analyses on a continuous
           basis without regard to calendar year end.


      B.   Payment Terms


           If necessary, the bank will invoice the State monthly. The bank must provide the
           invoice within 30 days after the close of each month (on a calendar month basis) for
           which services were provided.      The standard State of New Jersey purchase




LOTTERY RFP 2005                    Page 24
          voucher and instructions for preparation of the form will be provided to the bank
          after contract award.


          One combined invoice and analysis will be required for all three (3)
          accounts.


          If necessary, the vendor will invoice the Department of Treasury monthly at the
          following address:

                 Charlene M. Mello
                 Department of Treasury
                 Office of Management and Budget
                 Cash Management Unit 5th Floor
                 P.O. Box 221
                 Trenton, New Jersey 08625-0221


     C.   Monthly Analysis


          Together with the invoice, the vendor must provide a monthly analysis that will
          contain the monthly average collected balance for the accounts.          The average
          Treasury Bill yield will be used to calculate the compensating balance earnings for
          the month. The contract prices will be applied against the total volumes for each
          billable category to establish the total billing for the month.     The State will be
          invoiced for the total billing less the compensating balance credits for that month.




LOTTERY RFP 2005                    Page 25
V.   SCOPE OF WORK


     A.    General Requirements


          The State’s requirements include the establishment and maintenance of three (3)
          bank accounts, and the accurate and timely processing of all banking services
          related to these accounts, including, but not limited to, controlled disbursement,
          positive pay, and zero balance accounts, bank reconciliation for all accounts, wire
          transfer and ACH services, deposits, lockbox services, document destruction, web
          based inquiry and processing (i.e., stops, cancels, issues and paid check imaging)
          along with a variety of reporting and communication needs.


          The accounts must be established as “Preferred Status” accounts; that is, to
          establish a credit line that will be sufficient to cover all daylight overdrafts without
          penalty or additional charge to the State, and honor all checks presented for
          payment regardless of the current balance in the accounts. In the rare situation that
          an overnight overdraft occurs, the State requests that the bank honor all checks and
          wires without penalty or additional charge to the State. In particular, the bank will
          cover overdrafts on those occasions when there is a non-bank holiday. Some of the
          State holidays listed below are not bank holidays.



                                     New Year's Day
                                     Martin Luther King Jr. Day
                                     Lincoln's Birthday
                                     Washington's Birthday
                                     Good Friday
                                     Memorial Day
                                     Independence Day
                                     Labor Day
                                     Columbus Day
                                     Election Day
                                     Veteran's Day
                                     Thanksgiving Day
                                     Christmas Day




LOTTERY RFP 2005                     Page 26
        The State reserves the right to consolidate existing accounts or establish additional
        accounts as needed during the contract term.


     B. Accounts to be Established


        The Department of the Treasury, Cash Management Unit is solely responsible for the
        opening and closing of all accounts.


        The State will establish three (3) Lottery Accounts in the vendor bank as
        follows:


                                 Lottery Collection Revenue Account
                           1
                                 (ZBA Master Account)
                                 Lottery Collection Annuity Account
                           2
                                 (ZBA Sub Account)
                                 Lottery   Disbursement     Account
                           3
                                 (ZBA Sub Account)



        See EXHIBIT G for the Lottery Accounts Structure and Funds Flow.


     C. Account Data Information and Requirements

         1. Lottery Collection Revenue Account


           a. General Account Information

               The State will establish a State Lottery Collection Revenue Account in the
               vendor bank primarily for the weekly ACH collection of lottery revenue. Each
               of the approximately 6,000 Lottery Retailer Accounts will either be debited or
               occasionally, retailers will initiate ACH credits based on their weekly sales,
               net of cash payouts for the week. Currently, the Division of State Lottery
               receives approximately $21.5 million in weekly receipts from the retailers
               throughout the State.


               On a weekly basis, the Federal Internal Revenue Service will initiate an ACH
               debit against the Lottery Collection Revenue Account for the Federal taxes
               due the IRS. The average IRS transaction is for approximately $1.5 million.


LOTTERY RFP 2005                  Page 27
             On a weekly basis, ACH credit payments are initiated against the Lottery
             Collection Revenue Account to issue refund payments to Lottery Retailers.
             Also, weekly ACH credit adjustments are received into the account.


             On occasion, wire transfers are issued to and received from the State of
             Virginia, the clearing state for the multi state Mega Millions Game. In Fiscal
             Year 2004, 15 wires were initiated against the Lottery Collection Revenue
             Account totaling $67,138,154 and 11 wires were received into the Lottery
             Collection Revenue Account totaling $18,881,747.


             Lottery personnel will make manual check deposits into the Lottery
             Collection Revenue Account. To accommodate the manual check deposits,
             the vendor must provide depository capabilities within Mercer County either
             through a branch or correspondent vendor relationship or provide some
             other acceptable alternative.


             ZBA Transfers occur daily between the Lottery Collection Revenue Account
             and the Lottery Disbursement and Collection Annuity Accounts.


             The Cash Accounting Unit will also initiate, as needed, internal transfers
             (Book to Book) from the Lottery Collection Annuity Account to the Lottery
             Disbursement Account.


             The Division of Investments will also require access to a Web Based Wire
             Transfer System to initiate the wire transfers to and from the Cash
             Management Fund.


             See EXHIBIT H for the Lottery Collection Revenue Account ACH
             Transaction Detail in Fiscal Year 2004.


             See EXHIBIT I for the Lottery Collection Revenue Account
             Transaction Type Statistics in Fiscal Year 2004.




LOTTERY RFP 2005                Page 28
           b.   Lottery Retailer Information

                All Lottery retailers must maintain their own ACH accessible Lottery Account.
                Lottery will maintain their own agent ACH debit/credit authorization forms
                throughout the life of the payments and for a minimum of two years after the
                termination or revocation of such authorization.


                Each of the approximately 6,000 Lottery Retailer Accounts will either be
                debited or occasionally, retailers will initiate an ACH credit based on their
                weekly sales, net of cash pay-outs for the week. Each Thursday, by the
                close of the retailers’ day or the retailers’ electronic funds transfer deadline,
                whichever is earlier, all retailers must have the total amount due Lottery in
                collected funds, on deposit, in their Lottery Account.

           c. ACH Transmittal Information

                Lottery will electronically transmit the ACH debit information in the standard
                NACHA CCD format to the selected vendor every working Thursday,
                normally by 9:00 a.m. E.S.T., but it can be as late as 12:30 p.m. E.S.T. In
                the event of holidays, Lottery will notify the vendor in advance as to what
                day they plan to transmit. An annual transmission schedule will be provided
                to the vendor each year.      In the event of a faulty transmission, Lottery will
                initiate a second or subsequent transmission.


                The vendor must guarantee ACH credit to the State Lottery Collection
                Revenue Account every Friday morning, unless there was a change in the
                State-scheduled transmission day. The vendor will be liable to the State (at
                the three month T-Bill yield) for any lost earnings to the State as a result of a
                vendor delay in crediting the Lottery Collection Revenue Account.


                   The Division of Lottery requires all file transmissions to utilize FTP (File
                   Transfer Protocol).

           d. Control Summary Report

                For each weekly ACH cycle, Lottery will transmit a file to the vendor and
                produce a hard copy of the Control Summary Report. The report will include
                the following information:



LOTTERY RFP 2005                    Page 29
                               Tape control number
                               ACH customer I.D. (State of New Jersey, Lottery)
                               Weekly cycle information (date, weekly revenue period)
                               Beginning and ending payment
                               Total number of items
                               Total dollar amount to be collected

                If there is a discrepancy between the summary information and the
                transmission data, the vendor must immediately notify Lottery of this
                discrepancy via telephone, and follow up with an e-mail. Lottery contacts and
                contact information will be provided upon contract award.


           e. Prenotification Compliance

                The originating vendor will process the prenotification (Pre-Notes) information
                on the day of transmission receipt. On average, there will be approximately
                35 Pre-Notes on the weekly transmission.


                Live ACH entries will be initiated, absent any Pre-Notes fail information, in the
                next billing cycle following the six-day prenotification response period.


                All returned Pre-Notes and NOCs must be accessible to Lottery via a Web
                Based Inquiry/Communication System.


                See EXHIBIT H Lottery Collection Revenue Account ACH Transaction
                Detail for Fiscal Year 2004 which includes the number of Pre-Notes.



           f.   ACH Fails

                In fiscal year 2004, there was an average of 125 ACH fails per month.


                See EXHIBIT H Lottery Collection Revenue Account ACH Transaction
                Detail for Fiscal Year 2004 which includes the number of ACH fails.




LOTTERY RFP 2005                    Page 30
              The vendor must not reinitiate a return entry due to insufficient or uncollected
              funds even though the NACHA rules allow for this procedure.                Lottery
              immediately contacts the Lottery agent after the initial fail notification and the
              agent must remit the Lottery receipts by certified check directly to Lottery for
              deposit into the Lottery Collection Revenue Account.


              All ACH fails, regardless of the dollar value, must be accessible to Lottery via
              the Web Based Inquiry/Communication System. In the event of a system
              failure, the following is available as a backup for reporting purposes:


                      An e-mail containing the ACH fail as an attachment file.
                      Telephone notification with hard copy to follow within two days.


              The ACH fail notification must contain the following information:


                    Retailer ABA number
                    Retailer vendor account number
                    Date of fail
                    Debit/credit amount
                    Retailer I.D. number
                    ACH trace number
                    Reason for fail


              This fail information is used by Lottery to create an internal report. (This
              internal report is not the responsibility of the vendor).

           g. ACH Security Procedures

              When data is received or transmitted electronically to the vendor or by the
              vendor, the vendor must utilize the proper security techniques to ensure the
              protection of the data and the system.

           h. Manual Check Deposits

              Manual check deposits will be made to the Lottery Collection Revenue
              Account by Division of Lottery personnel. In Fiscal Year 2004, 5,230 checks




LOTTERY RFP 2005                   Page 31
                were deposited to the Lottery Collection Revenue Account. Almost all the
                checks deposited were certified checks.


                The vendor must provide depository capabilities within Mercer County either
                through a branch or correspondent vendor relationship or provide some other
                acceptable alternative. An example of an acceptable alternative would be
                vendor supplied secure and insured overnight shipping bags for next day
                delivery to the vendor with immediate credit to the Lottery Collection Revenue
                Account. All alternative solutions must be identified and the detailed cost
                associated with any alternative solution must be shown on the Cost
                Schedule.


                Manual check deposits are made into the Lottery Collection Revenue
                Account as the result of:


                            Lottery credit adjustments to the account.
                            New     retailers’   weekly       checks   remitted     during   the
                            prenotification testing period.
                            Retailers’ checks remitted during the prenotification testing
                            period when an account change is made.
                            Retailers’ checks presented to Lottery as a replacement for an
                            ACH failure.


                Within 24 hours of receipt of a dishonored check, the dishonored check,
                together with the debit memo must be forwarded to the Department of the
                Treasury, Cash Accounting, with a copy sent to the Division of Lottery.

           i.   Deposit Slips

                The vendor must initially provide 250 four (4) part deposit slips to
                accommodate the manual check deposit requirement.                 Additional deposit
                slips must be provided as needed during the term of the contract.

           j.   Wire Transfer Requirements

                The bank should provide to the State a Web Based Wire Transfer System.
                The system should be capable of warehousing data for up-to two (2) weeks



LOTTERY RFP 2005                    Page 32
              until the transmission execution date. The system should have the capability
              of establishing repetitive wires requiring only date and amount updates. The
              system proposed should also provide the State the ability to complete draw-
              downs from other State bank accounts located at other banks. The system
              must contain the proper security features to insure the protection of the data
              and to maintain the integrity of the system.


              The bank should provide adequate operational training to State personnel,
              including user manual and instruction in its use.     The State should have
              access to a telephone hot line “help desk” during normal State working hours
              8:30 a.m. to 4:30 p.m. E.S.T. The bank must provide on-going maintenance
              and emergency service when necessary. The bank must have a manual wire
              transfer backup procedure established in the event of an electronic failure.


              The bank must promptly respond to all State wire transaction instructions. It
              is the intention of the State to fully fund all electronic payments on the
              transaction date. At any time during the day, as a result of the electronic
              payments, the State’s account(s) could be placed in a temporary overdraft
              position. The State expects the bank to immediately initiate all electronic
              payments taking into consideration the State’s total aggregate account
              balance.


              The bank must explicitly state in its proposal if there are any restrictions,
              current or anticipated, self imposed or regulatory, that will prevent the bank
              from immediately complying with the State’s request to transfer funds at the
              start of the workday.


     2.   Lottery Collection Annuity Account


           a. General Account Information


              The Lottery Collection Annuity Account is the clearing account for the annuity
              payments received from the various insurance companies. The insurance
              companies remit the annuity payments to Lottery via ACH credits and check
              deposits. Currently, there are approximately 13 companies under contract
              with Lottery that provide the annuity payments to Lottery on a scheduled


LOTTERY RFP 2005                 Page 33
              basis. Approximately 1,300 payments from all sources were received in the
              Annuity Account in Fiscal Year 2004 for a total dollar value of $166 million.


              See EXHIBIT R for the Lottery Collection Annuity Account Activity for
              Fiscal Year 2004

              The vendor must provide Lottery with a Web Based Daily Detail Report for all
              payment types of the daily deposit activity into the Lottery Collection Annuity
              Account. This report must be available for viewing by 4:00 p.m. E.S.T and
              must contain the following information:


                     Type of transaction, (ACH and Check)
                     Transaction ID (If any)
                     Sending Company (Insurance Company)
                     Name of recipient/annuitant (If available)
                     Date of deposit
                     Amount of deposit


           b. ACH Activity


              Approximately 830 ACH transactions were received in the Lottery Collection
              Annuity Account in Fiscal Year 2004.


              See EXHIBIT R for the Lottery Collection Annuity Account Activity for
              Fiscal Year 2004


           c. Wholesale Lockbox Services


              The vendor must establish a Post Office Box located either within the State of
              New Jersey or within a 50 mile radius of the New Jersey State border.
              Approximately 440 check payments were received in Fiscal Year 2004. It will
              be the vendor's responsibility to process and deposit the checks on the same
              day received.


              The check payments will be made payable to the New Jersey Lottery with the
              payee and Annuity Account Number referenced. The vendor does not need



LOTTERY RFP 2005                 Page 34
               to compare the amount of the check with the amount appearing on any forms
               enclosed. A remittance document may or may not accompany the check(s).
               Lottery will provide the vendor with a complete list of the Insurance
               Companies that remit payments via check. Lottery will update the list of
               Insurance Companies as needed.


               Within 24 hours of receipt of a dishonored check, the dishonored check,
               together with the debit memo must be forwarded to the Department of the
               Treasury, Cash Accounting Unit, with a copy sent to the Division of Lottery.


               All monies received in the Lottery Collection Annuity Account will ZBA into the
               Lottery Collection Revenue Account. The account balance monitoring and
               funding procedures will be a daily activity.


               The Cash Accounting Unit will also initiate, as needed, internal transfers
               (Book to Book) from the Lottery Collection Annuity Account to the Lottery
               Disbursement Account.


           d. Annuity Purchases


               Annuities are purchased as needed from the insurance companies via
               checks issued against the Lottery Disbursement Account. In Fiscal Year
               2004, 18 checks were drawn off of the Lottery Disbursement Account to
               make annuity purchases.


     3.   Lottery Disbursement Account


          The Lottery Disbursement Account will be established as a positive pay, controlled
          disbursement account. The account will be funded by:


                      ZBA transfers from the Lottery Collection Revenue Account
                      Internal transfers (Book to Book) from the Lottery Collection Annuity
                      Account




LOTTERY RFP 2005                   Page 35
         a.        Positive Pay and Check Disbursement Information


                   In Fiscal Year 2004, approximately 4,100 checks per month were issued
                   from the Lottery Disbursement Account. The check disbursements will be
                   based on a schedule pre-determined by Lottery. Lottery will electronically
                   transmit the check issue data to the vendor on the check mailing date.


                   With positive pay service, paid-no issue, debit/credit items or rejects
                   should not exist on the bank reconciliation. These conditions should be
                   researched by the bank, and if they are then found to be valid items, they
                   are to be stripped and re-entered into the system or corrected as
                   required.


                   See EXHIBIT J for the Lottery Disbursement Account Activity for
                   Fiscal Year 2004.


         b.        Outstanding Check File


                   The check issue information will be used by the bank to create an
                   outstanding check file. Each day as the checks are cleared by the bank,
                   a computer match will be made against the outstanding file by check
                   number and dollar amount. The bank will be required to reconcile the
                   Lottery Disbursement Account and maintain a daily outstanding check file
                   for the account.


                   Checks that are not bank errors and do not exactly match to the issue file
                   are exception items. If the exception cannot be corrected by the bank,
                   the item(s) should be presented to the State’s Cash Accounting Unit for
                   review and "pay/no pay" instructions.       The bank should reject all
                   exception items unless the State indicates otherwise.


                   All paid items must remain on the bank’s check status/stop payment
                   inquiry system for a minimum of five (5) full calendar months plus the
                   current month before the earliest month's paid items are purged. The
                   State should immediately be able to view the paid items and outstanding
                   check information via the Web Based Inquiry/Communication System.


LOTTERY RFP 2005                  Page 36
                   See SECTION V., Letter D., Web Based Inquiry/Communication
                   System.


                   Outstanding check information should remain on the system until the
                   bank is advised to remove it by the State.           Checks that have stop
                   payments placed on them by the State should be identified on the bank’s
                   system and on bank ARP reports. If an item is canceled with a stop, the
                   check should be removed from the outstanding file totals but the stop
                   remain on the system until notified by the State.


                   It will be the State's policy to periodically cancel all outstanding checks
                   that are over one year old and transfer the funds to the State's Unclaimed
                   Property Unit.    The State intends to make this transfer at least twice a
                   year.   See EXHIBIT K Aged Outstanding Transfer Report for more
                   detailed information.


                   The numbering sequence and system programs used by the State for
                   several programs limit the number of digits assigned to check numbers.
                   This limits the number of checks that can be issued before check
                   numbers have to be recycled. In order to avoid reconciliation problems
                   associated with the duplication of check numbers, the bank should have
                   the capability to purge check issue, check payment, stop payment etc.
                   information from the bank’s system on a periodic basis. The State will
                   advise the bank when the purge of data will be required because of this
                   recycling necessity.


           c.      Check Issue Transmission Requirements


                   The standard for all bank transmissions for the State of New Jersey is
                   presently Connect: Direct Secure+. The Secure+ option provides strong
                   authentication, data encryption and data integrity checking. It uses X.509
                   certificates to positively identify the entities with which vital data is shared
                   and uses Secure Socket Layer (SSL) technology for data encryption. The
                   vendor must document its ability to support Connect: Direct Secure+ and
                   maintain software compatibility with the State on all patches and new
                   releases of the product.


LOTTERY RFP 2005                    Page 37
                   Occasionally, the State may transmit a separate file to the bank on
                   Saturday and/or Sunday. The bank’s system must be able to accept the
                   Saturday and/or Sunday file as a discrete file and not as a correction/re-
                   write of the previous day’s file.


                   The bank will be notified immediately in the event of a transmission
                   failure; likewise, the bank should notify the State if a transmission is not
                   received in the timeframe established between the State and the bank.


                   Upon successful receipt of the file, the bank must send an electronic
                   confirmation to Lottery and OIT Production Services indicating that the file
                   was received.     The confirmation email should indicate the number of
                   records and dollar amounts that were included in the transmission.


                   When data is received, delivered manually or transmitted electronically to
                   the bank or by the bank, the bank must utilize adequate security
                   techniques in order to insure the protection of the data and the integrity of
                   the system. See EXHIBIT A Future Direction of OIT – Security for
                   Asset Classification and Control for additional details.


                   In the event of a faulty transmission, it is the State’s intent to re-send the
                   full transmission.   If six (6) hours have lapsed without a successful
                   transmission it is the State’s intent to provide a hard copy of the report
                   and a CD ROM of the transmission. The bank should be able to provide
                   and incur the expense of a courier service to pick up the backup
                   transmission.


           d.      Check Cashing Requirements


                   Upon presentation of acceptable identification (to be identified in your
                   proposal), the bank must cash all checks presented for payment at ALL
                   member bank locations in New Jersey or other New Jersey locations as
                   contracted by the bank, and at no cost to the recipient. Check cashing is
                   a valuable state-wide service for the recipients of New Jersey checks.
                   The bank’s capability and commitment to provide a state-wide check


LOTTERY RFP 2005                   Page 38
              cashing service over the life of this contract will be a factor considered in
              the technical analysis of this proposal.


              The bank must list all its check cashing facilities in the State of New
              Jersey and particularly note the branch offices or check cashing facilities
              in the Mercer County area.


              A check may not be cashed if any one or more of the following conditions
              exist:
                             Post dated check
                             Improperly endorsed check
                             Endorsement missing
                             Incorrect or missing “Authorized Signature” (The list
                             of authorized signer(s) will be provided).
                             Check amount altered and/or payee name


         e.    Stop Payments


               The State must be able to issue stop payments and remove stop
               payments on checks.      The stop payment and remove stop payment
               order will be placed by the Treasury, Cash Accounting Unit via the Web
               Based Inquiry/Communication System to be provided by the bank. Cash
               Accounting should be able to place range stops and batch-input multiple
               stop payments without requiring the user to refresh the screen after each
               entry or transmission.    The State requests that stop payments not be
               labeled or treated as cancellations or voids on the bank reports or on the
               Check Inquiry System. Rather the stop payments items should clearly be
               labeled as a “stop payment”.


               For the Lottery Disbursement Account, 14 stop payments were placed in
               Fiscal Year 2004.


               In the event of web server failure, a back-up stop payment procedure
               (telephone or facsimile transmission) should be maintained. The stop
               payment order will be considered effective for that day's clearances
               when placed via the Web Based Inquiry/Communication System, or


LOTTERY RFP 2005                    Page 39
                   upon receipt of a facsimile transmission or telephone call, and continue
                   in effect until released by the State.


                   In the event of a TELEPHONE stop payment order, the bank should
                   record the date, the time, the name of the bank representative receiving
                   the order, and the name of the State representative placing the stop
                   order.   The bank should confirm all telephone and facsimile stop
                   payment orders by facsimile transmission no later than 10:00 a.m.
                   E.S.T. the following day.

                   An original check on which a stop payment has been placed will remain
                   as a stopped item indefinitely on all systems unless the stop is officially
                   removed by the State, or until the check is officially canceled or
                   transferred by the State to the Unclaimed Property Fund.


             f.    Replacement Checks


                   Replacement checks will be issued by Cash Accounting. Replacement
                   checks will contain up to ten (10) digit check numbers. In Fiscal Year
                   2004, 128 Replacement Checks were issued by Treasury, Cash
                   Accounting totaling approximately $693,272.


                   The replacement check information may be part of the electronic check
                   issue transmission.       In the event the replacement check issue
                   information cannot be entered on the transmission, the bank should be
                   able to receive the replacement check and cancellation data via the Web
                   Based Communication/Inquiry System. The system should be able to
                   accept multiple check issues and multiple check cancellations on a
                   single screen without requiring the user to refresh the screen after each
                   entry or transmission. The State also requires a manual back-up system
                   be established in case of server failures.


                   When the State issues a replacement check, it will assign a new/unique
                   check number to the replacement check. Only after the stop payment
                   order for the original check is confirmed, will the State issue a




LOTTERY RFP 2005                  Page 40
                   cancellation order for the original check to be removed from the
                   outstanding check file.


             g.    Forgery Investigation


                   The vendor will be responsible for the investigation of all forgery claims
                   and subsequent payment(s) to the State. There were approximately 18
                   forgeries investigations initiated in Fiscal Year 2004.


                   The State will initiate a forgery investigation by forwarding the original
                   notarized forgery affidavit and an imaged copy of the original check to
                   the bank. The bank will assign a unique case number to each
                   investigation and forward an acknowledgment via facsimile upon receipt
                   of the forgery claim to the Cash Accounting Unit with the case number,
                   name of payee, and check number included in the correspondence.


                   If the claim is honored, the bank will prepare and send to the State a
                   cashier’s check and at the option of the State, make the check payable
                   to either:


                   1.     The State of New Jersey, with the name of the payee
                          (claimant) or case number referenced, or
                   2.     The claimant, with the case number referenced and
                          forwarded to Treasury, Cash Accounting.


                   If the claim is honored, the forgery affidavit and canceled check will not
                   be returned to the State.


                   If the claim is denied, the original forgery affidavit, canceled check and
                   "Letter of Denial" should be returned to the State along with a letter
                   stating the reason for non-payment of the claim. The cause for denial of
                   the claim should be consistent with the general law of negotiable
                   instruments and accepted by the State.


                   Forgery claims should be resolved by the vendor bank within 45
                   calendar days of receipt of the forgery affidavit. If the forgery claim


LOTTERY RFP 2005                  Page 41
                    cannot be cleared within the aforementioned time frame, (e.g., the
                    cashing bank does not make restitution or provide a "Letter of Denial"),
                    the vendor bank will issue a cashier’s check(s) to the State for the
                    outstanding item(s).


                    The bank will prepare a monthly status report of forgery investigations
                    listed in account number order.      This report should be forwarded to
                    Treasury, Cash Accounting during the first week of every month. For
                    each outstanding forgery claim, the following information should be
                    included on the monthly status report provided:


                                     1        Bank Account Number
                                     2        Payee Name
                                     3        Check Number
                                     4        Date Check Issued
                                     5        Check Amount
                                     6        Date of Receipt of Forgery Affidavit
                                     7        Status of Claim
                                     8        Bank Assigned Case Number


                   If a forgery is not corrected within 60 days after notification by the State,
                   the State reserves the option to withhold the total check amount under
                   investigation from the bank’s monthly invoice submitted to the State.


    D.      Web Based Inquiry/Communication System


            The bank must provide the State with web access to account(s) information.


            Only authorized State personnel will be permitted to initiate inquiries.       The
            authorized personnel will be identified after contract award.


            1.     Check Inquiry System


                 Direct access to check account activity is required. Data should be stored
                   and available for web inquiry covering a minimum of (18) months of the



LOTTERY RFP 2005                   Page 42
                   most recent outstanding items, and a minimum of six (6) months of paid
                   activity.


                   Approximately 425 account inquiries were made by Treasury, Cash
                   Accounting in Fiscal Year 2004.


                   Inquiries will include, but not be limited to, a check’s status regarding the
                   following classifications:



                               Paid
                               Outstanding (Not Paid)
                               Stop
                               Not Found



                   The Web Based Check Inquiry System should be updated daily to reflect
                   new issues, paid items, canceled items and stop payments. The system
                   should also grant authorized users the ability to enter check cancellation
                   information of the original check. The bank should be able to receive and
                   process the replacement check information via the Web Based Check
                   Inquiry System.


            2.      ACH Inquiry System


                    The bank must provide an ACH Web Based Inquiry/Communication
                    System for the reporting of all ACH fails, NOCs and other ACH
                    transactions.


                    The ACH fail information (Pre-Notes or ACH) should contain the following
                    information:



                                    1         Account Number
                                    2         Incorrect Account Number
                                    3         Effective Date




LOTTERY RFP 2005                        Page 43
                                    4         Amount
                                    5         Reason for Fail
                                    6         Individual ID
                                    7         Individual Name
                                    8         ACH Trace Number



            3.     Imaging, Storage, Retrieval, and Destruction of Canceled Checks


                   The State requires that the vendor provide the following services:
                   imaging, storage, retrieval, and destruction services for canceled check
                   as it offers efficient use of state and bank resources. Checks are required
                   to be scanned, converted to electronic images, stored on computer
                   media, and retrieved via the Internet. See EXHIBIT O Electronic Images
                   - System Certification, Storage, Backup, and Disaster Prevention/
                   Recovery. The bank will also be responsible for the storage of canceled
                   checks until authorized for destruction by the State. See EXHIBIT P
                   Destruction Requirements for State Records Canceled Checks and
                   Electronic Images.


                   The State prefers that imaging, retention (electronic and paper), retrieval,
                   and destruction services be reviewed by the New Jersey Division of
                   Archives and Record Management (NJDARM) and certified by the New
                   Jersey    State       Records   Committee    (SRC),   as   per   New   Jersey
                   Administrative Code (NJAC) 15:3-4 Image Processing of Public records
                   and 15:3-5 Certification of Imagine Processing Systems. See EXHIBITS
                   O and P for certification and record destruction requirements,
                   respectively.


                   The public records image processing system certification process
                   typically takes approximately 4–6 months to complete; therefore, the
                   successful bidder should commit the necessary resources to insure
                   certification.       The process requires the State, in partnership with the
                   successful bidder, to submit an application for “Certification of Imaging
                   Process System” to NJDARM. NJDARM representatives will require a
                   site inspection of the image processing system and a review of system



LOTTERY RFP 2005                        Page 44
                   maintenance, operation and administration, backup, disaster recovery,
                   and data migration
                   All processes involved in the imaging system should be documented.
                   The process concludes at a public meeting with mandatory attendance of
                   both the Bank and State.


                   The State recognizes that information submitted may contain confidential
                   and/or proprietary information about internal bank operations and
                   computer systems. For this section only, the bidder should print on each
                   appropriate page of their response (footer) “Confidential - Exempted from
                   Open Public Records Act P.L. 2001 Chapter 404 and N.J.S.A. 47:1a-1 et
                   seq. (Trade secrets and proprietary information, computer security,
                   security measures and techniques, advantage to bidders.)”


                   The bank should store the electronic image and canceled checks until
                   authorized for destruction by the SRC and NJDARM. Essentially, the
                   bank’s image storage system becomes the repository for official state
                   records; and, therefore, the bank is responsible for retaining and
                   disposing of public records in accordance with NJAC requirements for
                   imaging, record retention and destruction as described in EXHIBIT P
                   Destruction Requirements for State Records Canceled Checks and
                   Electronic Images. Under no circumstances shall the bank release any
                   state record including copies and images of checks, bank statements,
                   logs, etc., to anyone except authorized individuals of the State.      All
                   requests for State records should be referred to the Office of
                   Management and Budget (OMB). Images should be stored in a manner
                   that allows immediate retrieval via the Internet for checks imaged within
                   one (1) year of cancellation and 24 hours for older records.

                   a.     Retrieval

                          The State retrieves approximately 250 check images annually.
                          The front and back of a check constitutes one (1) image. The
                          majority of image retrieval activity usually occurs within nine (9)
                          months from check issue date; however, the State occasionally
                          needs to retrieve images dating back seven (7) years from date



LOTTERY RFP 2005                  Page 45
                   of issue. Internet retrieval of documents should be through a web
                   based application capable of operating within Microsoft Windows
                   98, NT or 2000 over a TCP/IP network.         The bank’s application
                   should be compatible with Netscape 6.0 or better or Microsoft
                   Explorer 5.1 and better.


                   Only authorized state or bank personnel should be permitted to
                   initiate inquires. In order to adequately protect state records the
                   following security features should be built into the application:


                          i.      The vendor must establish 128-bit encryption
                                  connection (or better) secured directly between
                                  client and vendor’s servers (https.);
                          ii.     Vendor’s system should include password access
                                  to the bank’s website;
                          iii.    Vendor’s system should offer client access control
                                  that allows OMB to internally establish State users
                                  and     user    passwords.          OMB      estimates
                                  approximately ten 10 user accounts; and,
                          iv.     Vendor’s system should provide the ability for OMB
                                  to limit State user’s access to designated bank
                                  accounts.


                   The bank may offer additional security features that may be
                   beneficial to the State. These features should be listed in the
                   Bank’s proposal as an optional service.


                   Images retrieved should display both front and back of check, print
                   locally as a single document, and include a certification of
                   authenticity statement on the print out.


                   The bank’s web applications should provide the State the ability to
                   perform successful searches based on the following criteria:




LOTTERY RFP 2005           Page 46
                             Individual and multiple check searches;
                             Information contained in MICR line including;
                                a.   Account Number
                                b.   Amount
                                c.   Check Number and Data Range
                             Data Range searches that enable users to define a period of time
                             during which a check may have been cashed as the State has the
                             potential to re-cycle check serial numbers every 3-5 years.




                   b.        Additional Features


                             The bank’s system should have the following additional features.
                             Please indicate if the proposed bank system currently has these
                             features and provide a brief description of each.



                        a.   User option to submit bulk (10+ check images) request with
                             overnight processing (batch processing).
                        b.   Ability to receive image (front & back) as a single file attachment
                             (one image = one attachment) via email. The check serial
                             number should be used as the attachment file number.
                        c.   Ability to integrate images with correspondence letters that
                             will print and save at the designated State office. The State will
                             provide the bank with template letters.




                   c.        Image Retrieval Performance


                             The State recognizes that Internet usage and bandwidth between
                             the State and Bank impact response times; however, the State
                             expects the following processing time performance once an
                             inquiry has been received by the bank system:




LOTTERY RFP 2005                     Page 47
                        1.    For search inquiries of checks(s) imaged (paid) within
                              90 days of the inquiry date, the bank system should
                              return the first image within 20 seconds of receiving
                              the request.
                        2.    For search inquiries of check(s) imaged (paid) greater than
                              90 days from the inquiry date, the bank system should return
                              the image within 40 seconds of receiving the request.
                        3.    If at anytime the bank system projects retrieval times greater
                              than the above specifications, the bank system should
                              present the option to batch process with completion no later
                              than 9:00 a.m. the next business day.



                       If during the course of retrieval, the bank is unable to produce a
                      legible copy of an image, the bank, at no additional cost to the state,
                      should obtain a copy of the check from the bank of first deposit within
                      five (5) business days.


    E.      Report Requirements


            The State requires the bank to submit manual and computer generated reports
            reflecting the checks and ACH transactions processed.           The Web Based
            Inquiry/Communication System should have report generating capabilities
            allowing reports to be generated which include 18 months worth of outstanding
            check items. The user should be able to create queries so the report can be
            sorted by the following headings:


                                      Account Name
                                      Account Number
                                      Date/Period Covered
                                      Beginning Check Number
                                      Issue Date
                                      Pay Date


            The types of reports provided must include, but are not limited to, the following:


LOTTERY RFP 2005                 Page 48
        1.   Daily Automated Balance Reporting

             All accounts identified in EXHIBIT G Lottery Accounts Structure and
             Funds Flow and any future accounts established will require daily
             automated balance reporting in unencrypted BAI2 format via the internet
             without the use of a secure card random assigned personal identification
             number (PIN), or other means that would inhibit the automated retrieval of
             the bank data.    Any encryption format required by the bank must be
             compatible with the automation of the retrieval process of the bank report,
             such that a bank report can still be retrieved and unencrypted in an
             automated fashion.


             Every working day, by 7:30 a.m. E.S.T., the bank must electronically
             provide access to account balance information in unencrypted BAI2
             format via the internet without the use of a secure card random assigned
             personal identification number (PIN), or other means that would inhibit the
             automated retrieval of the bank data.


             For each account the report must include at a minimum the following data
             fields:


                               1          Ledger balance
                               2          Collected balance
                               3          Total credits
                               4          Total debits
                               5          1-day float
                               6          2-day float


             For all the reporting fields, there should always be data reported.
             Therefore, if there is no amount reported, the bank should input 00.00 in
             the specific amount field.




LOTTERY RFP 2005                   Page 49
                   As technology improves, the State requires that the chosen vendor
                   remain flexible, throughout the term of this contract and any extensions,
                   as it relates to the method of balance reporting in unencrypted BAI2
                   format via the internet without the use of a secure card random assigned
                   personal identification number (PIN), or other means that would inhibit the
                   automated retrieval of the bank data.

            2.     Daily Controlled Disbursement Reporting

                   For all the controlled disbursement accounts, the bank must provide daily
                   same day automated controlled disbursement reporting in unencrypted
                   BAI2 format via the internet without the use of a secure card random
                   assigned personal identification number (PIN), or other means that would
                   inhibit the automated retrieval of the bank data.


                   The State requires electronic final notification of same day total check
                   presentments per account in unencrypted BAI2 format via the internet
                   without the use of a secure card random assigned personal identification
                   number (PIN), or other means that would inhibit the automated retrieval of
                   the bank data, no later than 10:15 a.m. E.S.T.


                   As part of the controlled disbursement services requested, the selected
                   vendor must have the capability of electronically providing the State with
                   aggregate check and ACH clearance/settlement totals by account in
                   unencrypted BAI2 format via the internet without the use of a secure card
                   random assigned personal identification number (PIN), or other means
                   that would inhibit the automated retrieval of the bank data.


            3.     Monthly ARP Reconciliation Report


                   The bank should provide a monthly ARP recap report that is in a layout
                   consistent with and contains the same information displayed in EXHIBIT
                   L Full Reconcilement Balance Sheet.          This recap report should be
                   provided on paper as well as on CD ROM to Treasury, Cash Accounting




LOTTERY RFP 2005                   Page 50
                   to be received by 3:00 p.m. E.S.T. five (5) business days after the
                   activity date.


                   All items listed on the reconcilement should be supported by
                   supplemental or subsidiary reports similar to those shown in EXHIBIT M
                   for Full Reconcilement Balance Sheet - Supplemental Information.


                   These reports should be furnished on paper and CD ROM within five (5)
                   business days after the activity date.


            4.     Account Detail Consolidated Recap Report


                   The bank should provide Treasury, Cash Accounting, recap reports on
                   paper as well as on CD ROM to be received no later than 3:00 p.m.
                   E.S.T. five (5) business days after the activity date. This report should
                   detail check issue, paid, stop and cancel information for the reconciliation
                   period and all outstanding items for the past eighteen (18) months.     The
                   report should include total number and dollar amount for paid and
                   outstanding items. See EXHIBIT M for examples of the documents that
                   support the Full Reconcilement Balance Sheet - Supplemental
                   Information.


            5.     Monthly Status of Forgery Investigations


                   See SECTION V. Letter C. Part 3.g. Forgery Investigation for the detail
                   forgery information and report requirements.


            6.     Aged Outstanding Transfer Reports


                   This report is a sequential listing of all outstanding items on the bank
                   system as of a certain period requested by the State. This information is
                   used by Treasury, Cash Accounting to transfer outstanding funds
                   approximately twice a year to the State’s Unclaimed Property Fund. The
                   bank should prepare the aged outstanding transfer report on paper and
                   on Magnetic Media. This report requirement may change to an electronic



LOTTERY RFP 2005                    Page 51
                   transmission or a CD ROM in the future.          See EXHIBIT N for the
                   Magnetic Media Reporting Specifications.


                   All aged outstanding reports are to be delivered (on paper and on
                   Magnetic Media) by 3:00 p.m. E.S.T. on or before the tenth business day
                   following the request date.


            7.     MICR Rejection Analysis Report


                   This report must be produced monthly and made available in hardcopy,
                   email or secure web page format. The report should contain the total
                   number of checks processed and the total number of failures including
                   the reason for the failure (i.e., signal strength, extraneous ink, waveform,
                   character formation, character spacing, character placement, skewing).


           8.      Bank Statements


                   A monthly bank statement is required for each of the Lottery Accounts.


                   The monthly bank statements should be received by Treasury, Cash
                   Accounting, no later than 3:00 p.m. E.S.T., five (5) working days after
                   the activity date. Appropriate detailed debit and credit memos and bank
                   ARP reconciliation reports should be included with the statement.


           9.      Check Specifications


                   The State will order all laser check stock and print the checks with
                   specifications as follows:


                   28 lb. Paper MICR/OCR Bond
                   7.5" long, 2.75" high


                   Checks may have up to a ten (10) digit check number printed on the
                   upper right hand corner of the check which will be MICR encoded on the
                   bottom of the check.



LOTTERY RFP 2005                   Page 52
                   The State retains the right to change the check specification requirements
                   upon 90 days prior written notice to the bank.


           10.     Check Testing


                   Initially and if new accounts are added, the State will provide the bank
                   between 10 and 25 checks per account for testing purposes. If the bank
                   requires more than 25 checks, please stipulate the quantity required in
                   your proposal submission. Test checks will be made available to the
                   bank when requested. The State should not incur cost for MICR testing
                   services. MICR testing results should be available to the State within five
                   (5) working days.



     F.    Vendor Contact Personnel


           The bank should appoint a senior officer (vice-president or above) and a qualified
           substitute as a representative for contact and liaison with the State.        This
           representative will be solely responsible for insuring that the contract
           requirements are met, implementing State instructions and resolving problems
           that may arise on a day-to-day basis during the term of the contract.


           The bank should provide the lines of communication (proper contact personnel,
           names, locations and telephone numbers) for immediate response to any request
           for information pertaining to these accounts.


           The State requires that the vendor designate a minimum of two individuals for
           each category noted below (not necessarily all inclusive) who will be responsible
           for the daily inquiries, problems, initial and on-going training, etc.




LOTTERY RFP 2005                   Page 53
                               1          ARP Reconciliation
                               2          ACH transmission and tapes
                               3          ACH inquiries, fails, Pre-Notes
                               4          Check status inquiry problems
                               5          Controlled disbursement reporting
                               6          Wire room
                               7          Daily balance reporting
                               8          Check testing
                               9          Bank Statements, credits and debits
                               10         Invoice and bank analysis
                               11         Forgeries
                               12         Training




           In the event a personnel change results in a different liaison being assigned to
           the State, written notification should be provided to Treasury, Cash Management
           15 days prior to the change becoming effective.


     G.    Training


           The bank should be certain that the Web Based Inquiry/Communication System
           is operating satisfactorily and that State personnel have been properly trained on
           the operating system.


           The bank should provide adequate training both initially and on-going to ensure
           that State personnel thoroughly understand all report information and can identify
           the codes indicated on all reports. All ARP processes and reports should be
           reviewed by Treasury Cash Accounting personnel prior to start up. All systems
           should be explained and demonstrated to Treasury, Cash Accounting personnel
           during the implementation and testing phases.


           A minimum of one set of operating manuals should be provided to Treasury,
           Cash Accounting with any subsequent additions, deletions or revisions to the
           manuals forwarded to Treasury, Cash Accounting promptly. A training outline,



LOTTERY RFP 2005                    Page 54
           synopsis of the major training categories, schedule and trainer's name should be
           included in the bank's response.


     H.    Conversion/Implementation


           The bank must provide a detailed implementation schedule to include training
           and testing starting with the anticipated award date through contract
           commencement, and beyond if applicable (for any possible follow-up issues).
           Provide details where relevant.     Include both the bank and State personnel
           resources that will be required to fulfill the tasks or milestones as proposed.




LOTTERY RFP 2005                  Page 55
VI.   EVALUATION CRITERIA


      The State must be satisfied that the bank has the necessary technical expertise,
      experience and resource capabilities to satisfactorily perform the requisite services
      stated in this request. The State reserves the right to obtain any information from an
      independent source to evaluate these criteria. Selection of other than the apparent low
      bid will be fully documented. An award will be made to that responsible bidder whose
      bid, conforming to the RFP, will be most advantageous to the State, price and other
      factors considered.


      The following general criteria, not necessarily listed in order of significance, will be used
      to evaluate the vendors' proposals.        A more detailed evaluation worksheet may be
      developed which may expand on the technical requirements of the RFP. The State
      reserves the right to request additional information prior to contract award.


                      The bank's overall response to all questions in SECTION VII.
                      Response to possible follow-up inquiries.
                      The bank's financial condition and ratings.
                      Clarity and completeness of the required reports.
                      Web Based Inquiry/Communication System reliability, capabilities, ease
                      of use.
                      The adequacy of the security measures and contingency plans.
                      The bank's commitment to provide adequate technical and personnel
                      resources to satisfactorily meet the requirements of the RFP.
                      Check cashing and depository capabilities
                      The State's overall assessment of client references and the bank’s
                      overall experience with providing similar services.
                      Quality of customer service resources provided and turnaround times for
                      problem resolution.
                      Completeness and feasibility of the bank’s implementation, testing and
                      training plans.
                      Check imaging capabilities.
                      Any other information that would assist the State in the selection process.
                      Cost.




LOTTERY RFP 2005                      Page 56
VII.   VENDOR RESPONSE


       The vendor shall prepare responses to the questions listed below which will demonstrate
       the vendor’s understanding, experience and ability to adequately provide the services as
       required in this Request for Proposal (RFP). The vendor must address each question in
       its entirety providing details when warranted. The vendor is encouraged, in its response
       document, to expand upon any issue, RFP statement or RFP requirement that it deems
       not adequately addressed by this RFP.


       Each vendor is given latitude with respect to the detail it elects to offer. However,
       vendors are cautioned that insufficient detail may result in a determination that the bid
       proposal is materially non-responsive and will result in disqualification of the bid
       proposal.

       Proposals that do not conform with or that take exception to the State of New Jersey’s
       requirements as set forth in Section II. Terms and Conditions, Section III. Other
       Mandatory Provisions and Section IV. Payment Method and Terms will be
       considered materially non-responsive and therefore rejected.


       Vendors are instructed to clearly identify any requirement listed in Section V. Scope of
       Work of this RFP that the vendor cannot satisfy.            Any deviation to the technical
       specifications must be clearly noted and fully explained. The State reserves the right to
       accept any minor deviations if it is deemed to be in the best interest of the State.


       The vendor assumes responsibility for the complete effort required in this RFP. No
       special consideration shall be given after the bids are opened because of a
       bidder’s failure to be knowledgeable of all the requirements of this RFP.              By
       submitting a proposal in response to this RFP, the bidder represents that it has satisfied
       itself, from its own investigation, of all the requirements of this RFP.


       It is requested that all pages for the response be numbered and that responses
       reference the original questions




LOTTERY RFP 2005                       Page 57
     The vendor shall prepare responses to all the questions listed below which will
     demonstrate its understanding, experience and ability to adequately provide the services
     as required in this RFP.


     1.    Briefly acknowledge your understanding and acceptance of all the TERMS AND
           CONDITIONS, OTHER MANDATORY PROVISIONS and PAYMENT METHOD
           AND TERMS as stated in the RFP.


     2.    Include a narrative description and a diagram of the corporate structure of which
           the bank is a part. Identify the bank processing location(s) that will be utilized in
           providing services for the Division of Lottery.


     3.    Identify any and all subcontractors, its officers, the contractual arrangements
           made therewith and state what services will be subcontracted.


     4.    Provide the names and contact information for the officers and management
           personnel (including subcontractors’ personnel) who will be responsible for the
           fulfillment of the services requested herein; e.g. operations, reporting/bank
           statements,    invoices/analysis,   file   transmission   issues,   ACH     credit/debit
           functionality, wire transfers, web based inquiry/communication system, disaster
           recovery,   technology    issues,   customer      services,   lockbox   services,   and
           error/adjustments inquiries. Specifically identify and include the physical location
           (address), telephone, fax numbers and email addresses for the primary contacts
           and backup individuals who will respond to the day-to-day communications from
           the Division of Lottery and the Treasury, Cash Accounting Unit.


     5.    For reference purposes, provide the names, addresses, contacts and telephone
           numbers of three (3) of your present customers for whom the bank is providing
           similar services as those requested herein; collection accounts, depository
           accounts, lockbox services, paid check imaging and retrieval services, wire
           transfers, ACH credit/debit services, and web based inquiry/communication
           services. If possible, provide references with collection volumes equal to or
           greater than those of the Division of Lottery.         Include any other information
           concerning the bank’s experience that would assist the State in evaluating the
           bank’s capabilities.



LOTTERY RFP 2005                    Page 58
 6.   Respond to SECTION III. OTHER MANDATORY PROVISIONS:


      a. Financial Statements: Bank and any direct subcontractors must include their
           most recent audited financial statements or financial comments if a privately
           held company.


      b. Stockholder Disclosure Form: Bank and all subcontractors must complete a
           Stockholder Disclosure Form and include copies with each bank proposal.
           See EXHIBIT B Stockholder Disclosure Form.


      c. Non-discrimination Law: Bank must acknowledge anti-discrimination law
           N.J.S.A. 10:2-1 through N.J.S.A. 10:2-4, N.J.S.A 10:5-1 et seq. and N.J.S.A.
           10:5-31 through 10:5-38, and abide by all rules and regulations issued there
           under.


      d. Collateralization of Deposits: Confirm the bank’s ability to adhere to the
           Department of Treasury Collateralization Policy, refer to EXHIBIT C
           Department of the Treasury Collateralization Policy Statement.


      e. Proof of Registration Requirements: Bank and must submit a copy of the
           Business Registration Certificate(s).     As mandated by Public Law 2001,
           Chapter 134, failure to submit a copy of the Business Registration Certificate
           within the bid proposal will be considered materially non-responsive and
           result in disqualification of the bid proposal.


      f.   Executive Order No. 129: Confirm the bank’s and all subcontractors’ ability to
           adhere to Executive Order No. 129. The State prefers the vendor submit with
           its bid proposal EXHIBIT Q Executive Order 129 Certification, filled out with
           the sourcing information required for itself and any proposed subcontractor,
           identified in its proposal.


           If the certification was not submitted with the bid proposal, confirm the bank’s
           ability to submit the required document within five (5) business days of the
           State’s request for the information.




LOTTERY RFP 2005                         Page 59
            g. Executive Order No. 134: Vendors must complete and submit EXHIBIT D


                 Executive Order 134 Certification within the bid proposal.


            h. Disaster Recovery Plan: Bank must include a summary of its Disaster
                 Recovery Plan in the bank’s proposal and detailed plans must be made
                 available for State review. Specifically address your contingency plans for
                 data processing systems, equipment, power, information reporting, or other
                 failures that could affect services or information reporting of data.


            i.   Image Processing of Public Records and Certification of Image Processing
                 Systems: Please confirm the bank has reviewed the DARM certification and
                 possesses the technical capabilities to become certified.


     7.    Does the bank use any statistical quality control measures to evaluate treasury
           services? If so, provide the results for those services requested in this RFP for
           calendar year 2004 or the bank’s last twelve months data.


     8.    Describe      the     bank’s     customer      service     operations,        procedures,
           turnaround/response times, and staffing. Complete customer service capabilities
           and resources may be reviewed at an oral presentation or viewed and critiqued by
           the Evaluation Committee if a site visit is requested by the State.


     9.    How many checks will the bank require for initial testing purposes and how often
           will testing be required? What is the bank’s standard turnaround time to deliver
           the results of the initial MICR testing?       Describe the bank’s MICR Rejection
           Standards and what penalties will be incurred by the State if these standards are
           not met.


     10.   Can the bank electronically provide the daily required automated balance reporting
           as defined in the RFP by 7:30 a.m. E.S.T. in the unencrypted BAI2 format to
           Treasury, Cash Management Unit?


     11.   Describe the bank's Controlled Disbursement capabilities, number of current
           customers using this service and the number of controlled disbursement accounts.
           What are the percentages of the daily clearings to be received for each


LOTTERY RFP 2005                     Page 60
           presentment?     Can aggregate check and ACH clearance/settlement totals be
           provided?


     12.   For the month of June, 2004, what was the earliest and latest time that final
           presentment was provided to the bank's Controlled Disbursement Clients? Confirm
           the bank will accommodate the State’s 10:00 a.m. E.S.T. final presentment
           requirement. On occasion when the bank does not meet the 10:00 a.m. E.S.T
           deadline, what other alternative will be used?


     13    Describe the bank's Zero Balance Account (ZBA) capabilities.


     14.   Explain the bank's ACH transmission capabilities, including receiving and sending
           format capabilities, system constraints, backup procedures and ACH security
           controls. Also, address the bank's internal security controls regarding the
           prevention of fraud, errors, duplicate transmission, duplicate returns, over-writes
           and the prevention of file loss.


           Provide the bank’s ACH debit and credit volume activity for the 1st Quarter of
           2005.


     15.   How will the bank notify the State of ACH failures?


     16.   Considering the required RFP time schedules, what are the bank's transmission
           deadlines for the receipt of the ACH files and check issue information? Please
           include in the proposal a file layout for the Checks Issued File and ACH File that
           will be transmitted to the bank from the State.


     17.   Will the bank require Pre-Note testing for current pre-authorized recipients and is
           there a per item charge for this testing? (For new recipients after contract award,
           the State acknowledges that Pre-Notes will be considered a billable item).


     18.   Confirm the bank’s ability to meet the “Confidential” level of data confidentiality
           requirements as outlined in EXHIBIT A Future Direction of OIT - Security for
           Asset Classification and Control. Describe the bank’s willingness and ability to
           secure the data as “Secret” if OMB requires this level of security in the future.



LOTTERY RFP 2005                    Page 61
     19.   Confirm that the bank can accommodate the standard method of transmission
           Connect: Direct Secure + and explain how your bank will maintain software
           compatibility on all patches and new releases of this product.


     20.   Summarize the payment services methods of the bank and the customizing
           options of the wire transfers such as creating templates and grouping the
           templates. What is the time interval between the acceptance of the wires and the
           actual transfer of funds? Can payments be warehoused and if so, how far in
           advance?


     21.   Explain the bank's Positive Pay Procedures. Will the exception items be scrubbed
           prior to requesting the “pay/no pay” decision by the State?


     22.   Describe in detail the bank's Automated Reconciliation Service.


     23.   The bank should include in its proposal a sample report or mock-up of all the ARP
           reports as stipulated in the RFP with explanations for codes, abbreviations, etc.
           Please indicate the bank’s ability to provide the reports on the specified media (i.e.
           hard copy, electronic transmission, web based, CD ROM, or fax).


     24.   Describe the features of the bank’s Web Based Inquiry/Communication System
           and reporting system. Provide screen samples and descriptions of the various
           modules or functions available including ACH inquiry.


     25.   Describe in detail, the log on and off procedures for the Web Based
           Inquiry/Communication System as well as system administration capabilities.
           Specifically, address if the State can access other State Lottery Accounts without
           having to return to the “Main Menu” for each different account. Will users be
           logged out after a specified period of inactivity? If available, please provide a
           demonstration via on-line or CD ROM that illustrates the bank’s Web Based
           Inquiry/Communication System capabilities.


     26.   For the Web Based Inquiry/Communication System, how extensive is the history
           file maintained for online access to check disbursement and ACH transactions,
           including stop payments, paid and outstanding checks and miscellaneous ARP



LOTTERY RFP 2005                    Page 62
           items. How long are paid item transactions accessible on-line before they are
           purged from the system?


     27.   Can   stop     payments    be   placed   directly   via   the   bank’s   Web    Based
           Inquiry/Communication System? What is the minimum and maximum number of
           stop payments that can be placed for checks in a sequential check number
           series/range at one time? Can multiple stop payments be placed on the same
           screen for other than range stops?        Can multiple stop payments for multiple
           accounts be placed on the same screen?


     28.   Explain the bank’s backup system for stop payment requests. For how long will a
           stop payment be effective?          Does the bank use stop payments to reduce
           outstanding checks in its ARP Reconciliation? How soon does a stop payment
           become effective after it is placed on the Web Based Inquiry/Communication
           System?


     29.   Through what method can the bank receive the replacement check issue
           information?    Describe the primary and backup methods/procedures used for
           issues, cancellations, stop payment, etc. Provide file format requirements for
           electronic transmission of the data.


     30.   When manually entering check cancellation and replacement check issue
           information on the Web Based Inquiry/Communication System, can cancellations
           and issues be entered without changing screens? Can more than one cancel or
           issue be entered on the same screen?          Can cancels and issues for different
           accounts be entered on the same screen?


     31.   Describe the bank’s ability to meet the State’s requirement to provide the Aged
           Outstanding Transfer Report in hard copy and on Magnetic Media?           Confirm the
           bank’s willingness and ability to assist the Division of Lottery through the transition
           process if an alternative method of delivery is desired during the contract term.


     32.   Describe the bank’s check cashing identification requirements.              Include a
           statement that the bank will cash all properly endorsed checks presented for
           payment, with no cost to the recipient, at all the bank's branches at a minimum
           within the State of New Jersey.


LOTTERY RFP 2005                     Page 63
     33.   Define the bank’s depository capabilities within Mercer County, identify the
           location of your bank branch or correspondent bank nearest to the Division of
           Lottery, Brunswick Avenue, Trenton, New Jersey            08625.    If an alternative
           depository service is to be provided, please fully explain any alternative solution to
           this depository requirement. All associated costs must be included on the Cost
           Schedule.


     34.   Confirm the bank’s ability to comply with SECTION V. Letter C. Part 3.g. Forgery
           Investigations. Can the bank meet the forgery and improperly endorsed check
           requirements including the stipulated 45 day turnaround time for payment to the
           State? What assurances can the bank provide the State that your bank will be
           proactive/aggressive regarding forgery investigations?


     35.   Define the bank’s ability to fulfill the requirements outlined in Exhibit O Electronic
           Images      -   System     Certification,   Storage,     Backup      and    Disaster
           Prevention/Recovery.      Explain the bank’s check imaging, storage and check
           destruction procedures including all benefits and disadvantages.        In particular,
           explain the retrieval process and controls, which will insure that all canceled
           checks, are imaged and all images are correctly indexed. Include five samples for
           evaluation purposes. Indicate the length of time checks are retained after they are
           scanned and the destruction methods used.

     36.   Provide a detailed implementation schedule to achieve our October 3, 2005
           contract commencement requirement. Include delivery dates for each of         the
           elements you define as critical steps towards implementation.           Include time
           frames for opening bank accounts, setting up the lockbox, establishing access
           to the web based inquiry/ communication system, file transmission/testing and
           training. Define both bank and State personnel commitment requirements during
           conversion.


     37.   Include a training outline and schedule specifying topics, the time allocated for
           each, and identify the trainer(s).   Training must include reviews and demos of all
           system applications, report explanations and code interpretations.




LOTTERY RFP 2005                    Page 64
     38.   The vendor must, if requested, provide a detailed disaster recovery plan,
           contingency procedures and backup provisions prior to contract award. This may
           be requested at an oral presentation. Include a brief description of your disaster
           recovery, contingency and backup plans in your proposal with a statement that
           your detailed plans will be made available within five (5) days upon request by the
           State.


     39.   Confirm the bank’s ability to meet ALL the requirements outlined in this RFP,
           including: controlled disbursement, positive pay, zero balance accounts, ACH
           services, bank reconciliations, document destruction, report specifications,
           security levels, turnaround times, web based inquiry and processing and wire
           transfers,   as stipulated in the RFP.   The bank must reveal any/all services
           defined in the RFP that it cannot provide according to the specifications. The
           bank should indicate why they cannot deliver the service or standard requested
           and offer reasonable alternatives.




LOTTERY RFP 2005                   Page 65
VIII.        COST SCHEDULE

             Prices submitted are to be firm and fixed for the term of the contract. All prices proposed
             are inclusive of all vendor supplied forms, postage, supplies, equipment, delivery
             (courier service), boxes, overhead, FDIC charges, profit, etc. as required to meet the
             RFP specifications.       *All methods of measurements that differ from the pre-establish
             methods listed below must be clearly identified for each priced item.


             Following are the pricing categories that may be appropriate for this RFP. It is not
             necessary to provide pricing for each category. When completing the pricing schedule,
             place a "NA" in each category for which a charge is not applicable.



                           Account Services and Maintenance

        1          Account Maintenance Fee                             $              /Account/Month

        2          ZBA Maintenance Services                            $              /Account/Month

        3          Controlled Disbursement Account Maintenance         $              /Account/Month

                   Daily Balance Reporting (Prior Day and Intra Day)
        4                                                              $              /Month
                   (Automated to Treasury Workstation)

        5          Funds Transfer (Fed Wires In)                       $              /Per Transfer

        6          Funds Transfer (Fed Wires Out)                      $              /Per Transfer

        7          Internal Transfers (Book to Book Transfers)         $              /Per Transfer

        8          Branch Deposits (Checks)                            $              /Per Deposit

        9          Deposit Tickets (4-Part)                            $              /Per Ticket

                                         ACH Services

        10         ACH File Transmission                               $              /Per File

        11         ACH Debit Origination Fee                           $              /Per Debit

        12         ACH Item Received                                   $              /Per Item

        13         Debit Block Service                                 $              /Account/Month

        14         ACH Credit (CCD, CCD+, PPD)                         $              /Per Item




LOTTERY RFP 2005                               Page 66
   15     ACH Returns                                         $   /Per Item

                             Check Services

   16     Check Paid Positive Pay                             $   /Per Check

   17     Forgery Investigation                               $   /Per Item

   18     Stop Payment Web Based                              $   /Per Stop

   19     Stop Payment Manual                                 $   /Per Stop

   20     Deposited Item                                      $   /Per Check

   21     Checks Redeposited                                  $   /Per Check

   22     Returned Item (Check)                               $   /Per Check Returned

                            Lockbox Services

   23     Lockbox Setup Charge (One Time Fee)                 $   /Per Lockbox

   24     Lockbox Maintenance Fee                             $   /Per Lockbox/Month

   25     Lockbox Items Processed                             $   /Per Item

   26     Lockbox Deposited Item                              $   /Per Item

                           Web Based Services

   27     Web Based Product Maintenance                       $   /Month

   28        Web Based Account Inquiry                        $   /Per Inquiry

   29        Web Based ACH Inquiry                            $   /Per Inquiry

   30     Web Based Paid Check Image Maintenance              $   /Month

   31     Web Based Paid Check Image (All Checks Processed)   $   /Per Item Imaged

                                    (OR)

   32     Web Based Paid Check Image (Per Item Viewed)        $   /Per Image Viewed

   33     Programming Fees (If Applicable)                    $   /Per Hour (Indicate the est. # of

                                                                  hours)




LOTTERY RFP 2005                     Page 67

				
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