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DEPOSIT
ACCOUNT AGREEMENT AND DISCLOSURE
INTRODUCTION.
In this Deposit Account Agreement
and Disclosure, each and all of the depositors are referred to as
"you" and "your." The Financial Institution is referred to
as "we," "our," and "us." This Deposit Account
Agreement contains the terms and conditions governing certain of your deposit
accounts with us. As used in this document, the term "Agreement"
means this document, the signature card, a rate and fee schedule (which may be
in the form of a Rate and Fee Schedule, Time Certificate of Deposit, or
Confirmation of Time Deposit, hereinafter called the "Schedule"),
Truth in Savings disclosures, a Funds Availability Policy Disclosure, and an
Electronic Funds Transfer Agreement and Disclosure, if applicable. Each of you
signing the signature card for a deposit account acknowledges receipt of this
Agreement, and agrees to the terms set forth in the Agreement, as amended from
time to time. You agree that we may waive, in our sole discretion, any fee,
charge, term, or condition set forth in this Agreement at the time the Account
is opened or subsequent thereto, on a one-time basis or for any period or
duration, without changing the terms of the Agreement or your obligation to be
bound by the Agreement, and we are not obligated to provide similar waivers in
the future or waive our rights to enforce the terms of this Agreement.
DEPOSIT ACCOUNTS.
From time to time, we may offer or
you may open a variety of deposit accounts. Each such account (the
"Account") is subject to the general terms and conditions and any
specific terms and conditions relating to that type of account that may be set
forth in this Agreement. If you open multiple Accounts, you may receive
Schedule information for each Account, but this Agreement will cover all your
Accounts with us. Each of you will be jointly and severally liable to us for
debit balances in the Account, including without limitation overdrafts and
Account charges, and jointly and severally promise to pay, upon demand, any and
all debit balances, all fees and charges, and our reasonable attorneys' fees
and costs and expenses of collection, including but not limited to those
incurred at trial and on any appeal.
INTEREST.
If your Account earns interest, the
following information applies: (A) Payment of Interest. We will pay
interest at the annual rate specified on the Schedule, which does not reflect
compounding ("Interest Rate"). The Schedule also sets forth the
frequency of interest payments, the frequency of any compounding and crediting,
the interest accrual basis, the balance on which interest will be paid, and any
minimum balance requirements. (B) Minimum Balance Requirements. The
Schedule may specify a minimum balance that you are required to maintain in
your Account. If the minimum balance is not maintained during a specified
period, we, at our option, may not pay interest on your Account and/or may
charge a fee for that period. You should review any minimum balance
requirements on the Schedule. (C) Initial Interest Rate. The initial
interest rate is the current annual rate of interest that we will pay on the
specified balance in your Account. We may pay interest at different rates,
depending on the amount deposited and the type of depositor (individual,
business, non-profit organization, etc.). (D) Interest Compounding and
Crediting. The Schedule will indicate the interest compounding and
crediting frequency for your Account (if any). Compounding generally means that
interest is being accrued on earned interest. Interest may be compounded more
frequently than interest is credited to your Account. (E) Interest Accrual.
We may accrue interest on your Account more frequently than we pay or credit
interest. The interest that has been calculated, but not paid to the Account,
is called accrued unpaid interest. (F) Changes. We have the right to
change the rates and fees in accordance with the terms of the Schedule. We also
reserve the right to change any other term of this Agreement at our sole
discretion.
FEES AND CHARGES.
Subject to applicable law, you
agree to pay us the fees and charges shown in the Schedules as are applicable
to your Account or for other services performed by us. You agree the fees and
charges may be changed by us from time to time and authorize us to charge your
account for their payment whether or not each charge results in an overdraft of
your account. Existing and future charges may be based upon the overall costs
of providing account services and mayor may not be based upon the direct cost
or expense associated with providing the particular service involved. The
charges may be based on consideration of profit, competitive position,
deterrence of misuse of account privileges by customers, and the safety and
soundness of the financial institution. We will notify you of the changes, to
the extent required by law.
BALANCE METHODS.
As used in this Agreement, the
"average daily balance" method means "the application of a
periodic rate to the average daily balance in the account for the period,
determined by adding the full amount of principal in the account for each day
of the period and dividing that figure by the number of days in the
period." The "daily balance" method means "the application
of a daily periodic rate to the full amount of principal in the account each
day."
DEPOSIT RULES.
The following terms apply to
deposits made to your Account: (A) Endorsements. You authorize us to
accept transfers, checks, and other items for deposit to your Account if they
are made payable to, or to the order of, anyone or more of you, whether or not
they are endorsed by you. You authorize us to supply missing endorsements, and
you warrant that all endorsements are genuine. All checks and other items
deposited to your Account should be endorsed payable to the order of us for
deposit only, followed by your signature and Account number. All endorsements
must appear on the back of the check or other item within the first 1-1/2
inches from the left side of the item when looking at it from the front. While
we may accept non-conforming endorsements, you will be responsible for any loss
incurred by us due to the delay in processing or returning the item for
payment. (B) Final Payment. All non-cash items (for example, checks)
deposited to your Account are posted subject to our receipt of final payment by
the payor bank. Upon receipt of final payment, the item becomes a collected
item. If final payment is not received or if any item you have deposited or
cashed is charged back to us for any reason, you authorize us to charge any of
your Accounts, without prior notice and at any time, for the amount of the
returned item, our returned item fee, any interest paid on that item, and any
other fee we may incur. If an item to be charged back is lost in the process of
collection or unavailable for return, we may rely upon a photocopy of the item
or upon any other generally accepted notification of return of the item, in
charging you or any of your Accounts for the amount of the returned item. We
reserve the right to refuse any item for deposit into your Account. (C)
Direct Deposits. If we offer direct deposit services for automatic
preauthorized deposits to your Account of Social Security payments or automatic
transfers from your other accounts with us, you must notify us at least 30 days
prior to the next scheduled direct deposit or preauthorized transfer if you
wish to cancel the direct deposit or transfer service. If any amount deposited
must be returned to the government for any reason, you authorize us to deduct
the amount from your Account as provided in the Final Payment paragraph above. (D)
Crediting of Deposits. The Funds Availability Policy Disclosure provided to
you reflects our policies relating to the availability of deposited funds.
WITHDRAWAL RULES.
The following terms apply to
withdrawals from your Account: (A) Manner of Withdrawal. You may make
withdrawals from your Account in any manner that is permitted by us for the
type of Account that you have opened. Withdrawals by mail will be posted to
your Account as of the day the transaction is processed by us. We may refuse to
accept any check other than standard checks provided by us, or approved by us
in advance. Withdrawals and transfers from your Account may be restricted as
provided in the Agreement, or in the Schedule, or by applicable law. (B)
Withdrawal Restrictions and Overdrafts. We do not have to allow you to make
a withdrawal from your Account if you don't have sufficient available funds in
the Account to cover the full amount of the withdrawal. If there are available
funds to cover some, but not all, of the withdrawals or other debits (such as
charges) to your Account, we may post those withdrawals or other debits for
which there are sufficient available funds in any order we may choose at our
sole discretion. If there are insufficient available funds to cover some of the
withdrawals or debits presented against your Account, such items will be
handled in accordance with our overdraft procedures or in accordance with any
other agreement you may have with us (such as an overdraft protection program).
Even if we choose to pay one or more overdrafts, we are not obligated to cover
any future overdrafts. We may determine the balance of your account in
connection with determining whether payment of an item will create an overdraft
at any time between the time we receive the item and the deadline for us to
take action on the item. We are not required to determine your account balance
more than one (1) time during this period. A service charge may be assessed on
any item that will overdraw the available account balance, regardless of
whether we payor dishonor (return) the item. You agree, immediately upon notice
from us, to deposit funds sufficient to cover any overdraft plus service
charges, if required. We will not be liable for the dishonor of any item when
the dishonor occurs because we setoff a debt against your account. We also may
refuse to allow a withdrawal if there is a dispute about the Account (unless a
court has ordered us to allow the withdrawal), the Account is garnished or
attached, the Account has been pledged as collateral for a debt, the
availability of the funds on deposit cannot be verified, any required
documentation has not been presented, or you fail to repay an obligation to us
on time. (C) Notice Requirements. Federal regulations require us to
retain the right to require you to give at least seven (7) days notice in
writing prior to any intended withdrawal from a savings, negotiable order of
withdrawal ("NOW"), or money market account. Although we usually pay
withdrawals or checks without notice on these accounts, doing so does not mean
that we give up this right. (D) Postdated Items. You agree that when you
write a check, you will not date the check in the future. If you do and the
check is presented for payment before the date of the check, we may pay it or
return it unpaid. You agree that if we pay the check, the check will be posted
to your Account on the date we pay the check, even though the posting date is
prior to the date of the check. You further agree that we are not responsible
for any loss to you in doing so. We will not honor a postdated check if we
receive advance notice from you at such a time and in such a manner as to
afford us reasonable opportunity to act. The notice must be in writing, and it
must specify the date, amount, and number of the check, along with the name of
the payee. Notices are effective for the time periods stated under STOP PAYMENT
ORDERS. You agree that we may return a postdated check to the presenter. (E)
Power of Attorney. The person executing a power of attorney will be
referred to as the principal and the person acting for the principal as the
agent. We may refuse to comply with a power of attorney for reasonable cause,
or until we receive an affidavit from the agent stating that the Power of
Attorney presented is a true copy and that, to the best of the agent's
knowledge, the principal is alive and that the relevant powers of the agent
have not been altered or terminated. (F) Signatures. You recognize that
we have adopted automated collection and payment procedures so that we can
process the greatest volume of items at the lowest possible cost to our
customers. In light of this, you agree that we do not fail to exercise ordinary
care in paying an item solely because our procedures do not provide for the
sight examination of items with a face amount below an amount specified by us
from time to time. You authorize us to store and use Signature Card information
in any reasonable form we deem necessary, including any digitized signature
capture process. If you use a facsimile signature or other form of mechanically
reproduced signature (such as, but not limited to, desktop publishing,
digitized, or computer software generated signature), you agree you shall have
the sole responsibility for maintaining security of the facsimile or
mechanically reproduced signature and the device by which the facsimile or
mechanically reproduced signature is affixed and you shall bear the entire risk
for unauthorized use thereof whether or not you are negligent. You agree that
no facsimile or mechanically reproduced signature we have been authorized to
honor may be considered a forgery or an unauthorized signature, but that such
facsimile or mechanically reproduced signature shall be effective as your
signature or endorsement whether or not you have been negligent. You further
agree to indemnify and hold us harmless from and against any and all loss,
costs, damage, liability, or exposure (including reasonable attorney's fees) we
or you may suffer or incur as a result of the unlawful use, unauthorized use,
or misuse by any person of any such facsimile or mechanically reproduced
signature or the device by which it is affixed. If you use any form of
facsimile or mechanically reproduced signature device, you agree to deliver a
sample to us if we request it. (G) Preauthorized Drafts. If you
voluntarily give information about your Account (such as our routing number and
your account number) to a party who is seeking to sell you goods or services,
and you do not physically deliver a check to the party, any debit to your
account initiated by the party to whom you gave the information is deemed
authorized by you. (H) Check Legends. We may disregard information on
any check or item other than the signature of the drawer, the identification of
the drawee financial institution and payee, the amount, the endorsements, and
any other information that appears on the MICR line. In addition, we are not
responsible to take action on, or for failure to notify you of restrictive
language placed on checks or other items, including but not limited to terms
such as, "Void after 90 Days," "Paid in Full," "Two
Signatures Required," "Void Over $100" or similar statements. In
accordance with reasonable banking standards, most checks and other items are
processed through automated processing and, except in limited circumstances and
in our discretion, most items are not individually examined. You agree that we
act within reasonable banking standards by processing most checks and other
items through automated processing systems. We may agree to adhere to
extraneous legends if you notify us of such legends and we have agreed in
writing to honor such legends.
STALE CHECKS.
We reserve the right to payor
dishonor a check more than six (6) months old without prior notice to you.
CHECKING ACCOUNTS.
If your account is a checking
account, the following terms may apply. No interest will be paid on any demand
deposit checking account with us. If we offer NOW (interest bearing checking
accounts, the account must consist solely of funds in which the entire
beneficial interest is held by one or more individuals in an individual
capacity, a sole proprietor, or a governmental unit, but not professional
corporations or business partnerships. A NOW account may also be held by a for
profit organization serving in a fiduciary or trustee capacity for an entity
that is itself permitted to hold a NOW account. Otherwise, an organization may
hold a NOW account only if it is operated primarily for religious,
philanthropic, charitable, educational, or other similar purpose.
SAVINGS ACCOUNTS.
If your account is an interest
bearing account and is not a NOW account or time deposit, the following terms
may apply. (A) Transfers and Withdrawals. If your Account is a savings
or money market deposit account, federal law requires that an Account Holder
may make no more than six (6) transfers and/or withdrawals during anyone (1)
calendar month or statement cycle (the period from one statement to the next)
or similar period of at least four weeks, to another of your accounts with us
or to a third party by means of a preauthorized or automatic transfer, or
telephonic (including data transmission) agreement, order or instruction. No
more than three (3) of the six (6) transfers may be made by check, draft, debit
card, or similar order made by you and payable to third parties. If you exceed
more than three (3) such transfers, we need not honor the item. A
"preauthorized transfer" includes any arrangement by us to pay a
third party from your account upon written or oral instruction (including an
order received through an automated clearing house (ACH) or any arrangement by
us to pay a third party from your account at a predetermined time or on a fixed
schedule. (B) Excess Transactions. In accordance with federal law, if
you have more than the allowable preauthorized transfers or preauthorized
checks or drafts (for money market accounts) in anyone period, your Account may
be subject to closure by us and the funds placed in another account that you
are eligible to maintain, or we may take away the transfer and draft
capabilities of the account. In addition to the above preauthorized transfers,
you may make unlimited withdrawals (payments directly to you or transfers of
funds from your Account to any of your other deposit accounts or loan accounts
with us), either in person at our locations, by mail, messenger, telephone (via
check mailed to you), or use of an ATM card (if applicable).
TIME DEPOSITS.
If your Account is a time deposit,
you have agreed to keep the funds on deposit until the maturity of your
Account. If your Account has not matured, any withdrawal of all or part of the
funds from your Account may result in an early withdrawal penalty .We will
consider requests for early withdrawal and, if granted, the penalty provided in
the Schedule will apply. (A) Penalty. The early withdrawal penalty is
calculated as a forfeiture of part of the accrued interest that has or would be
earned on the Account. If your Account has not yet earned enough interest so that
the penalty can be deducted from earned interest, or if the interest already
has been paid, the difference will be deducted from the principal amount of
your Account. For fixed rate Accounts, we will use the rate in effect for your
deposit. (B) Exceptions. We may let you withdraw money from your Account
before the maturity date without an early withdrawal penalty: (1) when one or
more of you dies or is determined legally incompetent by a court or other
administrative body of competent jurisdiction; or (2) when the Account is an
Individual Retirement Account (IRA) established in accordance with 26 USC 408
and the money is paid within seven (7) days after the Account is opened; or (3)
when the Account is a Keogh Plan (Keogh), if you forfeit at least the interest
earned on the withdrawn funds; or (4) if the time deposit is an IRA or Keogh
Plan established pursuant to 26 USC 408 or 26 USC 401, when you reach age 59
1/2 or become disabled; or (5) within an applicable grace period (if any).
STOP PAYMENT ORDERS.
Subject to certain limitations, you
may order us to stop payment on any check or other item payable for your
Account, whether drawn by you or any other account holder. The stop payment
request will be effective if we receive the order at such time and in such
manner as to afford us a reasonable opportunity to act upon the order. The stop
payment order is effective for six (6) months, but it lapses after fourteen
(14) calendar days if the original order was oral and was not confirmed in
writing within that period. A stop payment order may be renewed for an
additional six (6) months if renewed during the effective time period. We will
require you to provide the date, the amount, and the number of the item,
together with the name of the payee. If you give us incorrect information, we
will not be liable for failing to stop payment on the item. Our acceptance of a
stop payment order will not constitute a representation that the item has not
already been paid or that we have a reasonable opportunity to act upon the
order. You may not stop payment on an official, certified, cashier's, or
teller's check issued by us, or request us to stop payment if we have otherwise
become accountable for the item. In addition, you may not stop payment on
checks governed by separate agreement, such as a check guaranty agreement.
Further, you may not stop payment on an item after acceptance of the item by
us.
Based upon the type of
account ownership that you have designated, the following terms and conditions
apply.
INDIVIDUAL ACCOUNTS.
An Individual Account is an account
in the name of one depositor only. Only that person may write checks against
the Account or withdraw money, regardless of who actually owns the funds.
MULTIPLE-PARTY ACCOUNTS.
This section
pertains to multiple party accounts:
(A) Joint Account
Ownership. An
account with two or more Account Holders is a joint account. Unless you
designate otherwise on the Signature Card, joint Account Holders will be
considered joint tenants with right of survivorship.
(1) Joint Tenants With Right of Survivorship.
If your Account is a joint account
with right of survivorship, upon the death of one of the joint Account Holders,
that person's ownership interest in the Account will immediately pass to the
other joint Account Holder(s).
(2) Joint With No Right of Survivorship. If your Account is a joint
account with no right of survivorship (Joint as Tenants in Common), upon the
death of one of the joint Account Holders, that person's proportionate
ownership interest will pass to the estate of the deceased Account Holder.
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Each joint Account Holder,
without the consent of any other Account Holder, may, and hereby is authorized
by every other joint Account Holder, to make any transaction permitted under
the Agreement, including without limitation: to withdraw all or any part of the
account funds; to pledge the account funds as collateral to us for any
obligation, whether that of one or more Account Holders or of a third party; to
endorse and deposit checks and other items payable to any joint Account Holder;
to give stop payment orders on any check or item, whether drawn by that Account
Holder or not; and, to close the account, with the disbursement of account
proceeds as instructed by the joint Account Holder. Each joint Account Holder is
authorized to act for the other Account Holder(s) and we may accept orders and
instructions regarding the account from any joint Account Holder. If we believe
there to be a dispute between joint Account Holders or we receive inconsistent
instructions from the Account Holders, we may suspend or close the account,
require a court order to act, and/or require that all joint Account Holders
agree in writing to any transaction concerning the account.
Your obligations under the
Agreement are joint and several. This means that each joint Account Holder is
fully and personally obligated under the terms of the Agreement, including
liability for overdrafts and debit balances as set forth above, irrespective of
which joint Account Holder benefited from the withdrawal. If you establish a
joint account without the signature of the other joint Account Holder(s), you
agree to hold us harmless for our reliance upon your designation of the other
joint Account Holder(s) listed on our documents. Further, the Account is subject
to the right of setoff as set forth below.
(B) Totten Trust
Account. A Totten
Trust Account is an informal trust account, reflected on our records, but
without a written trust agreement, where the Account is owned by the trustee.
The beneficiaries have no right to any funds in the Account during the
trustee's lifetime. As the owner of the Account, the trustee may withdraw money
from the Account and may, by written direction to us, change the beneficiary
under the Account. When the trustee dies, the Account is owned by the named
beneficiary or beneficiaries. If the Totten Trust Account is held by more than
one trustee, the trustees will be subject to the rules pertaining to joint
account ownership as set forth above. If there is no surviving beneficiary upon
the death of the last trustee, state law will determine ownership of the funds
in the Account.
(C) P.O.D. Account.
A Payable on Death (P.O.D.) Account
is an account payable to the Account Holder during his or her lifetime. As the
owner of the Account, you may withdraw money from the Account and may, by
written direction to us, change the P.O.D. payee(s) under the Account. When the
Account Holder dies, the Account is owned by the P.O.D. payee(s). If the P.O.D.
Account is held by more than one person, each Account Holder will be subject to
the rules pertaining to joint account ownership as set forth above. If there is
more than one surviving P .O.D. payee, the respective interest of each shall be
deemed to be in equal shares, unless otherwise stated in the Financial
Institution's deposit account records and as allowed by applicable state law.
If a living trust is designated as a P.O.D. beneficiary/payee, we may require
Account Holder to deliver a copy of certification of trust or other documents
and authorizations as we may deem necessary or appropriate. If there is no
surviving P .O.D. payee upon the death of the last owner, state law will
determine ownership of the funds in the Account.
(D) Additional
Authorized Signatory. style='font-size:10.0pt;font-family:
Arial'>An individual designated as Additional Authorized Signatory shall have
authority during the owner's lifetime to withdraw moneys from the deposit
account or represented by a certificate of deposit. Upon the owner's death, all
of the funds shall become part of the deceased owner's estate, subject to the
deceased person's will or applicable law. We may release all moneys in the
Account or represented by a certificate to, or honor checks or orders drawn by,
or withdrawal requests from, such authorized signatory until notified of the
revocation of such authority.
ADDITIONAL ACCOUNT
TYPES. This section
applies to other deposit account types:
(A) Formal Trust
Account. A Formal
Trust Account is an account held by one or more trustees for the benefit of one
or more beneficiaries according to a written trust agreement. Upon our request,
the trustee(s) will supply to us a copy of any trust agreement covering the
account. We act only as custodian of the trust funds and are under no
obligation to act as a trustee or to inquire as to the powers or duties of the
trustee(s). The trustee(s) and/or any person opening the Account, in their
individual capacity and jointly and severally, agree to indemnify and hold us
harmless from and against any and all loss, costs, damage, liability, or
exposure, including reasonable attorney's fees, we may suffer or incur arising
out of any action or claim by any beneficiary or other trustee with respect to
the authority or actions taken by the trustee(s) in handling or dealing with
the Account.
(B) Uniform Transfer to
Minors. If you have
established the account as a custodian for a minor beneficiary under our state
version of the Uniform Transfers to Minors Act or the Uniform Gifts to Minors
Act, your rights and duties are governed by the Act. You will not be allowed to
pledge the account as collateral for any loan to you. Deposits in the account
will be held by us for the exclusive right and benefit of the minor. The
custodian(s) and/or any person opening the Account, in their individual
capacity, agree to indemnify and hold us harmless from and against any and all
loss, costs, damage, liability, or exposure, including reasonable attorney's
fees, we may suffer or incur arising out of any action or claim by any
beneficiary or other custodian with respect to the authority or actions taken
by the custodian(s) in handling or dealing with the Account.
(C) Agency Account.
An Agency Account is an account to
which funds may be deposited and withdrawals made by an Agent designated by the
owner of the funds. An Agent has full authority with regard to the Account but
does not have an ownership interest in the account. An Agency Account is
revocable at any time by notifying us in writing. An Agency designation may be
combined with one of the other forms of account ownership.
(D) Business Accounts.
If the Account is not owned by a
natural person (a corporation, partnership, limited liability company, sole
proprietorship, unincorporated association, etc.), then the Account Holder must
provide us with evidence to our satisfaction of the authority of the
individuals who sign the signature card to act on behalf of the Account Holder.
On any transactions involving the Account, we may act on the instructions of
the person(s) authorized in the resolutions, banking agreement, or certificate
of authority to act on behalf of the Account Holder. You agree to notify us in
writing of any changes in the person(s) authorized or the form of ownership. If
we receive conflicting instructions or a dispute arises as to authorization
with regard to the handling of the Account, you agree we may place a hold on
the Account until such conflict or dispute is resolved to our satisfaction and
we will not be liable for dishonored items as a result of such hold.
(E) Fiduciary Accounts.
With respect to all fiduciary accounts,
including but not limited to estate accounts, guardianship accounts, and
conservatorship accounts, and any Formal Trust Account, Uniform Transfers to
Minors Act Account, or Agency Account, we reserve the right to require such
documents and authorizations as we may deem necessary or appropriate to satisfy
that the person(s) requesting or directing the withdrawal of funds held in the
Account have the authority to withdraw such funds. This applies at the time of
account opening and at all times thereafter.
ASSIGNABILITY.
The account established under this
Agreement is not assignable or transferable except with our consent. We must
approve any pledge of the Account and any such pledge remains subject to any
right we have under the Agreement and applicable state and federal law. If
ownership is proposed to be transferred, we may require the Account be closed
and a new account opened in the name of the transferee or pledgee.
FINANCIAL INSTITUTION
LIABILITY. You
agree that if we do not properly complete a transaction according to the
Agreement, we will not be liable in any event for losses or damages in excess
of the amount of the transaction, and we will not be liable if circumstances
beyond our control prevent the transaction, or the funds in your Account are or
may be subject to legal process or other claim. In no event will we be liable
for consequential damages. In receiving items from you for withdrawal or
deposit, we act only as your agent. You are responsible for the condition of a
check or item when you issue it. If a check or item is returned or payment is
delayed as a result of any writing or marking that you or a prior endorser
placed on the front or back of the check or item, you will be responsible for
any cost and liabilities associated with such return or delay. We reserve the
right to refuse any item for deposit or to reverse credit for any deposited
items or to charge your Account for items should they become lost in the
collection process.
RIGHT OF SETOFF.
Subject to applicable law, we may exercise
our right of setoff or security interest against any and all of your Accounts
(except IRA, Keogh plan and Trust Accounts) without notice, for any liability
or debt of any of you, whether joint or individual, whether direct or
contingent, whether now or hereafter existing, and whether arising from
overdrafts, endorsements, guarantees, loans, attachments, garnishments, levies,
attorneys' fees, or other obligations. If the Account is a joint or
multiple-party account, each joint or multiple-party account holder authorizes
us to exercise our right of setoff against any and all Accounts of each Account
Holder.
DORMANT ACCOUNTS.
If you have not made a withdrawal
from, or a deposit to, your Account for an extended period of time and we have
been unable to contact you, your Account may be classified by us as dormant.
Subject to applicable law, we may charge a dormant account fee on the Account,
and the Account will be presumed to be abandoned. In accordance with state law,
funds in abandoned accounts will be remitted to the custody of the applicable
state agency, and we will have no further liability to you for such funds. We
reserve the right not to send statements on accounts we consider dormant,
subject to applicable law.
ACCOUNT STATEMENTS.
You are responsible for promptly
examining your statement each statement period and reporting any irregularities
to us. The periodic statement will be considered correct for all purposes and
we will not be liable for any payment made and charged to your Account unless
you notify us in writing within certain time limits after the statement and
checks are made available to you. We will not be liable for any check that is
altered or any signature that is forged unless you notify us within Thirty (30)
calendar days after the statement and the altered or forged item(s) are made
available. Also, we will not be liable for any subsequent items paid, in good
faith, containing an unauthorized signature or alteration by the same wrongdoer
unless you notify us within Ten (10) calendar days after the statement and
first altered or forged items were made available. Except for transactions
covered by the Electronic Fund Transfer Act, you must also report any other
Account problem within Thirty (30) calendar days or lose your right to assert
the problem against us. If you have requested us to hold your Account
statements, we have the right to mail your statements if you have not claimed
them within Thirty (30) calendar days. If we truncate your checks, you
understand that your original checks will not be returned to you with your
statement. You agree that our retention of checks does not alter or waive your
responsibility to examine your statements or change the time limits for
notifying us of any errors.
WHOLESALE WIRE AND ACH
TRANSACTIONS. With
respect to wire transfers or other transfers of funds not governed by the
Electronic Funds Transfer Act, you agree to enter into and comply with our wire
transfer (if applicable) agreement and to comply with our security procedures
and this section. We advise you that any receiving financial institution
(including us) is entitled to rely on any account or bank number you have
provided even though that account or bank number may identify a party different
from the person or entity you have described by name in any transfer order.
(A) Provisional Payment.
Credit given by us to you with
respect to an ACH credit or wholesale (wire) funds transfer entry is
provisional until we receive final settlement for such entry through a Federal
Reserve Bank. If we do not receive final settlement, you are hereby notified
and agree that we are entitled to a refund of the amount credited to your
Account in connection with such entry, and the party (the originator of the
entry) making payment to you via such entry shall not be deemed to have paid
you the amount of such entry.
(B) Notice of Receipt.
We will notify you of the receipt
of payments in the periodic account statements we provide to you. You
acknowledge that we will not give next day notice to you of receipt of an ACH
or wholesale (wire) funds transfer item.
NOTICES.
The following terms apply to
notices relating to your Account. (A) Notice of Amendments. You agree
that the terms and conditions of the Agreement, including without limitation
all rates, fees, and charges, may be amended by us from time to time. We will
notify you of amendments as required by applicable law. Your continued use of
the Account evidences your agreement to any amendment. Notices will be sent to
the most recent address shown on our records for your Account. Only one notice
will be given in the case of joint account holders. (B) Account Changes.
Any account holder or person authorized to sign on an account is required to
notify us in writing if any account holder or other person authorized to sign
on an account dies or is declared incompetent by a court. It is your
responsibility to notify us of any change in your address or name. We are
required to honor items drawn only on the listed Account name. Further, we are
required to attempt to communicate with you only at the most recent address
provided to us.
ACCOUNT TERMINATION.
You agree that we may close any of
your accounts and terminate this Agreement at any time by written notice. You
agree that written notice from us will be reasonable if it is mailed to your
statement mailing address immediately upon account closure. You may close any
of your accounts by notifying us in writing. We will consider your Account
closed When requested to by the Customer or by the Bank with just cause. When an
interest bearing account is closed, there may be accrued interest that has not
been credited to the account. In that case, we will pay you the interest UNLESS
we have told you otherwise. Further, for security reasons, we may require you
to close your Account and to open a new account if: there is a change in
authorized signers; there has been a forgery or fraud reported or committed
involving your Account; any Account checks are lost or stolen; you have too
many transfers from your Account; or, any other provision of our Agreement with
you is violated. After the Account is closed, we have no obligation to accept
deposits or pay any outstanding checks. You agree to hold us harmless for
refusing to honor any check drawn on a closed account. The termination of this
Agreement and closing of an account will not release you from any fees or other
obligations incurred prior to the date upon which this Agreement is terminated
and an account closed, any fees assessed by us in the process of closing an
account, or from your responsibility to maintain sufficient funds in an account
to cover any outstanding checks or other debit items.
GOVERNING LAW.
This Agreement shall be governed by
and construed in accordance with all applicable federal laws and all applicable
substantive laws of the State of Tennessee in which we are located and where
you opened your account. In addition, we are subject to certain federal and
state regulations and local clearing house rules governing the subject matter
of the Agreement. You understand that we must comply with these laws,
regulations, and rules. You agree that if there is any inconsistency between
the terms of the Agreement and any applicable law, regulation, or rule, the
terms of the Agreement will prevail to the extent any such law, regulation, or
rule may be modified by agreement.
SHARING INFORMATION.
In addition to situations described
elsewhere in the Deposit Account Agreement and Disclosure or other agreements
related to your Account, we will disclose information about your Account and
transfers and deposits you make when we are required to do so by statute or by
court or governmental agency order, or when you give us our written direction
to do so. Unless specifically prohibited by applicable state law, we may, in
our discretion, disclose information about your Account and transfers and
deposits you make for the purpose of verifying or completing a transaction or
to verify the existence and condition of your Account. You authorize us to
request and obtain one or more credit reports about you from one or more credit
reporting agencies for the purposes of considering your application for the
Account, reviewing or collecting any Account opened for you, or for any other
legitimate business purpose. You authorize us to disclose information about
your Account to a credit reporting agency if your Account was closed because
you have abused it. Unless otherwise instructed by you, we may also provide
certain other information about you or your Account to our subsidiaries or
affiliates (persons related by common ownership or affiliated by corporate
control) in relation to products or services they may offer.
SYSTEMS AND SOFTWARE.
We shall not be responsible to you
for any loss or damages suffered by you as a result of the failure of systems
and software used by you to interface with our systems or systems and software
utilized by you to initiate or process banking transactions whether such
transactions are initiated or processed directly with our systems or through a
third party service provider. You acknowledge that you are solely responsible
for the adequacy of systems and software utilized by you to process banking
transactions and the ability of such systems and software to do so accurately.
MISCELLANEOUS
PROVISIONS. If you
or your Account becomes involved in any legal proceedings, your use of the
Account may be restricted. We shall be entitled to act upon any legal process
served upon us which we reasonably believe to be binding, with no liability to
you for doing so. You understand that supervisory personnel may randomly
monitor customer service telephone conversations to ensure that you receive
accurate, courteous, and fair treatment. If you ask us to follow instructions
that we believe might expose us to any claim, liability, or damages, we may
refuse to follow your instructions or may require a bond or other protection,
including your agreement to indemnify us. You agree to be liable to us, to the
extent permitted by law, for any loss, costs, or expenses that we may incur as
a result of any dispute or legal proceeding involving your Account. You
authorize us to deduct any such loss, costs, or expenses from your Account
without prior notice to you or to bill you separately. This obligation includes
disputes between you and us involving your Account and situations where we
become involved in disputes between you and an authorized signer, a joint
owner, or a third party claiming an interest in your Account. It also includes
situations where any action taken on your Account by you, an authorized signer,
a joint owner, or a third party causes us to seek the advice of an attorney,
whether or not we actually become involved in a dispute. Any action by us for
reimbursement from you for any costs or expenses may also be made against your
estate, heirs and legal representatives, who shall be liable for any claims
made against and expenses incurred by us. If a court finds any provision of the
Agreement to be invalid or unenforceable, such finding shall not make the rest
of the Agreement invalid or unenforceable. If feasible, any such offending
provision shall be deemed to be modified to be within the limits of
enforceability or validity; however, if the offending provision cannot be so
modified, it shall be stricken and all other provisions of the Agreement in all
other respects shall remain valid and enforceable.
YOUR ABILITY TO WITHDRAW
FUNDS AT TENNESSEE COMMERCE BANK. style='font-size:10.0pt;
font-family:Arial'> Our policy is to make funds from your cash and check
deposits available to you on the first business day after the day we receive your
deposit. However, funds from electronic direct deposits will be available on
the day we receive the deposit. Once the funds are available, you can withdraw
them in cash and/or we will use them to pay checks that you have written. For
determining the availability of your deposits, every day is a business day,
except Saturdays, Sundays, and federal holidays. If you make a deposit before
4:00 P. M. Central Time on a business day that we are open, we will consider
that day to be the day of your deposit. However, if you make a deposit after
4:00 P. M. Central Time or on a day we are not open, we will consider that the
deposit was made on the next business day we are open.
Reservation of Right to
Hold. In some
cases, we will not make all of the funds that you deposit by check available to
you on the first business day after the day of your deposit. Depending on the
type of check that you deposit, funds may not be available until the fifth
business day after the day of your deposit. The first $100 of your deposit,
however, may be available on the first business day after the day of your
deposit. If we are not going to make all of the funds from your deposit
available on the first business day, we will notify you at the time you make
your deposit. We will also tell you when the funds will be available. If your
deposit is not made directly to one of our employees, or if we decide to take
this action after you have left the premises, we will mail you the notice by
the business day after we receive your deposit. If you need the funds from a
deposit right away, you should ask us when the funds will be available.
Longer Delays May Apply.
We may delay your ability to
withdraw funds deposited by check into your account an additional number of
days for these reasons:
*You deposit checks
totaling more than $5,000 on anyone day.
* You redeposit a check that has been returned unpaid.
* You have overdrawn your account repeatedly in the last six months.
* We believe a check you deposit will not be paid.
* There is an emergency, such as failure of computer or communications
equipment.
We will notify you if we delay your ability to withdraw funds for any of these
reasons, and we will tell you when the funds will be available.
They will generally be
available no later than the eleventh business day after the day of your
deposit.
Holds On Other Funds. If we
cash a check for you that is drawn on another financial institution, we may
withhold the availability of a corresponding amount of funds that are already
in your account. Those funds will be available at the time funds from the check
we cashed would have been available if you had deposited it. If we accept for
deposit a check that is drawn on another financial institution, we may make
funds from the deposit available for withdrawal immediately but delay your
availability to withdraw a corresponding amount of funds that you have on
deposit in another account with us. The funds in the other account would then
not be available for withdrawal until the time periods that are described
elsewhere in this disclosure for the type of check that you deposited.
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