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"covered account" as defined in 16 C.F.R. § 681.1 (as applicable to Covered Entity as a "creditor" and <br /> therefore to Business Associate as a "service provider" providing any service to Covered Entity), <br /> Business Associate agrees to: (i) fully adopt and comply with the Red Flag Rules currently in effect and <br /> as may be promulgated in the future; (ii) adopt a Red Flag program that is compliant with federal <br /> regulations as promulgated in 16 C.F.R. § 681.1; and (iii) take all necessary and appropriate steps to <br /> ensure that its activities undertaken as a part of this Agreement are conducted in accordance with the Red <br /> Flag Rules and its Red Flag program, including, without limitation, ensuring the adoption of and <br /> continued compliance with reasonable policies and procedures designed to detect, prevent, and mitigate <br /> the risk of identity theft, detecting any Red Flag that may arise during the term of this Agreement, <br /> reporting any such Red Flag to Covered Entity, and taking any such further steps as may be necessary to <br /> prevent or mitigate identity theft. <br /> VIII. TERM AND TERMINATION <br /> a. Term. The Tenn of this Agreement shall be effective as of the date first written above, <br /> and shall terminate upon the later of the following events: (i)in accordance with Section VIII.c.,when all <br /> of the Protected Health Information provided by Covered Entity to Business Associate or created or <br /> received by Business Associate on behalf of Covered Entity is destroyed or returned to Covered Entity or, <br /> if such return or destruction is infeasible,when protections are extended to such information; or(ii) upon <br /> the expiration or termination of the last of the Agreements. <br /> b. Termination for Cause. Upon Covered Entity's knowledge of a material breach of this <br /> Agreement by Business Associate, Covered Entity shall have the right to immediately terminate this <br /> Agreement and the Agreements. If termination is not feasible, Covered Entity shall report such violation <br /> to the Secretary. <br /> C. Effect of Termination. <br /> 1. Except as provided in paragraph 2. of this subsection, upon termination of this <br /> Agreement, the Agreements or upon request of Covered Entity, whichever occurs first, Business <br /> Associate shall within ten (10) days return or destroy all Protected Health Information received <br /> from Covered Entity, or created or received by Business Associate on behalf of Covered Entity. <br /> This provision shall apply to Protected Health Information that is in the possession of <br /> subcontractors or agents of Business Associate. Neither Business Associate nor its <br /> subcontractors or agents shall retain copies of the Protected Health Information. <br /> 2. In the event that Business Associate determines that returning or destroying the <br /> Protected Health Information is infeasible, Business Associate shall provide within ten(10) days <br /> to Covered Entity notification of the conditions that make return or destruction infeasible. Upon <br /> mutual agreement of the Parties that return or destruction of Protected Health Information is <br /> infeasible, Business Associate shall extend the protections of this Agreement to such Protected <br /> Health Information and limit further uses and disclosures of such Protected Health Information to <br /> those purposes that make the return or destruction infeasible, for so long as Business Associate <br /> maintains such Protected Health Information. <br /> IX MISCELLANEOUS <br /> a. Indemnification. Business Associate shall indemnify and hold Covered Entity harmless <br /> from and against all claims, liabilities, judgments, fines, assessments, penalties, awards, or other <br /> expenses, of any kind or nature whatsoever, including,without limitations, attorneys' fees, expert witness <br /> fees, and costs of investigation, litigation or dispute resolution, relating to or arising out of any breach or <br /> 8 <br />