TERMS AND CONDITIONS GOVERNING YOUR PERSONAL DEPOSIT ACCOUNTS
- WELCOME
- Welcome. This Personal Deposit Account Agreement together with the applicable Rates and Fees Schedule, Disclosures (each as defined below) and signature card, each as may be amended from time to time (individually and collectively, the “Agreement”) provides the terms and conditions of your personal deposit accounts with us. Please read it carefully and retain it with your account records. If you have any questions regarding your accounts, please call us at (888) 226-0819, Monday to Friday 9:00 a.m. to 6:00 p.m. All times are Eastern Time. You may also visit us online anytime at www.unionfsb.com.
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Definitions. When we use the words “you.” “your” and “yours” in this Agreement they refer to the person(s) who maintains one or more personal deposit accounts with us, including, but not limited to, all owners and signers on the account. The words “we,” “us,” “our” and “Bank” refer to Union Federal Savings Bank. Unless specified otherwise, the word “account(s)” refers to any deposit account that you have with us, or that we may offer now or in the future, used for personal, family, or household purposes. When we refer to a general group or category of accounts in this Agreement (such as “money market accounts” or “certificates of deposit,”), we mean any and all such accounts in that category that we may offer or that you may have. When we use the word “check” in this Agreement, we mean checks or other items, such as drafts or electronic images, presented to us for payment by another financial institution or that you deposit into your account. Our use of the term “Losses” in this Agreement means any and all kinds of claims, fines, penalties, fees, costs, expenses, and liabilities, including, without limitation, attorneys’ fees and litigation costs.
- Scope of This Agreement. This Agreement governs all personal accounts you have established with us. It replaces and supersedes any prior deposit agreement you may have had with us. If you sign our signature card or if you open, maintain, or use an account with us, you agree to the terms and conditions of this Agreement, including, but not limited to, (a) the fees and charges listed in the applicable Bank Schedule of Rates and Fees (the “Rates and Fees Schedule”); and (b) any other account materials, documents and disclosures, including, but not limited to, our Funds Availability Policy and Substitute Check Disclosure (collectively the “Funds Availability Policy”) and Electronic Fund Transfers Disclosure (all such materials, documents and disclosures are collectively referred to as “Disclosures”) required by us in connection with your account.
This Agreement comprises your agreement with us and is our legally binding contract with you. This Agreement is also subject to federal law and, to the extent not preempted, applicable state law (collectively “Applicable Law”). When you open an account with us, our deposit relationship with you is that of debtor and creditor. Unless other documents we provide to you state otherwise, you agree and acknowledge that we are not in any way acting as a fiduciary for you or for your benefit.
- Organization of This Agreement. This Agreement sets forth the terms and conditions that are applicable to all of your accounts. More specific rules regarding the accounts that you open, including rate and balance requirements, are provided to you in our Rates and Fees Schedule. Special rules and disclosures governing Electronic Fund Transfers are provided to you separately in our “Electronic Fund Transfers Disclosure.” Your ability to withdraw funds from your accounts is provided to you in our “Funds Availability Policy.” The Rates and Fees Schedule and Disclosures are part of this Agreement, each as may be amended from time to time.
- The Accounts We Offer. We offer a variety of accounts designed to meet your needs. We may, from time to time, create new types of accounts to better serve you. Occasionally we may discontinue certain accounts or types of accounts, and we reserve the right to do so without notice at any time. Accounts that have been discontinued may not appear in our most current Agreement. If you have questions or need more information or details about the types of accounts that we offer, please call us at (888) 226-0819, Monday to Friday 9:00 a.m. to 6:00 p.m. All times are Eastern Time. You may also visit our website (www.unionfsb.com) at your convenience.
- RULES FOR OPENING AND CLOSING AN ACCOUNT
Your Eligibility, Generally. Individuals and unincorporated non-business associations may open and maintain personal accounts with us. Corporations, unincorporated business associations, partnerships, nonprofit organizations, governmental entities and sole proprietorships may not open accounts with us under this Agreement.
Unless Applicable Law requires otherwise, you must be at least 18 years old to open an account for which you are the sole owner. If you are a minor, you must be at least 16 years old to establish an account with us and you must, unless Applicable Law requires otherwise, have a person 18 or older as a joint owner on the account. If you are a joint owner on an account with a minor, you agree to indemnify us from any and all kinds of Losses directly or indirectly arising from the minor’s use or maintenance of the account. - Verifying Your Identity. When you open an account with us, you give us information about yourself and confirm that it is correct. We enter the information into our records regarding your account. We may rely on that information until you notify us of a change and we have had a reasonable time to act on the new information.
To help the government fight the funding of terrorism and money laundering activities, the USA PATRIOT Act requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. This means that when you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
- Credit Inquiries. You authorize us to make any inquiries that we consider appropriate to help us determine if we should open, maintain or close your account and/or pay any item affecting your account. This may include verification of employment and credit reports or other reports from account information services and credit reporting agencies (including, but not limited to agencies that compile information regarding your deposit account performance at other banks).
Account Opening Documentation Requirements. As part of our account opening process, we will require you to sign an account signature card and provide us with any other documentation that we may require. If you desire to establish a joint account with us, each joint account owner must sign our signature card and provide us with any other documentation that we may require.
You must sign and return the signature card for your account within forty-five (45) days of completing the account application and funding process. If you fail to do so we reserve the right (in our sole discretion) to prevent further deposits to or withdrawals from your account until your signed signature card is returned. If the signed signature card is not returned for your account within ninety (90) days of completing the account application and funding process your account will be closed. However, if your account is a joint account, and your signature card is signed by only one account owner, instead of closing the account, we may, in our sole discretion, convert the account to an individual account in such instances.
Any documentation that you provide to us in connection with establishing your account must be in a form that is satisfactory to us. We may change these documentation requirements, at our discretion, from time to time and without prior notice to you. Certifying Your Taxpayer Identification Number. When you open an account with us, we will request that you provide us with a certification of your correct taxpayer identification number (“TIN”). Applicable Law requires that these certifications be given under penalty of perjury. If you do not provide us with such a certification, Applicable Law requires us to withhold a certain percentage of taxable interest, dividend and certain other payments that we make to you. This is commonly referred to as “backup withholding.” You must provide us with your TIN even if you do not have to file a tax return and you must also certify that you are not subject to backup withholding. We are not required to open (and may close) an account for you if you do not provide and certify your TIN, even if you are exempt from backup withholding and information reporting. We are required to report certain dividend, interest and other payments we make to you to the Internal Revenue Service (“IRS”). We include your TIN in those reports.
You may be subject to civil and criminal penalties if you fail to provide us with a correct TIN or falsify withholding information. For additional information on interest reporting and withholding, contact your tax advisor or the IRS. -
Account Opening. For your convenience, we may allow you to apply for accounts in a variety of different ways. However, we will consider your account to be open only after (a) we have received and approved all account opening documentation we may require, (b) your account has been appropriately funded, and (c) you have satisfied any other requirements we may have. -
Closing Your Account. Your account may be closed at any time by you or us without advance notice except that we reserve the right to require you to give us seven (7) days prior written notice of any intended withdrawal from an interest-bearing account other than a certificate of deposit. If we close your account, we will provide to you notice of such closure if required by Applicable Law and mail a check to you at the address we currently show for your statement in our records or otherwise remit any balance in your account to you. If your account reaches a zero balance, we may (but are not obligated to) consider your account closed. We may either return deposits, and other items that we receive after your account is closed or, in the case of deposits, reopen the account and accept the deposit, without our being liable to you. This Agreement continues to govern matters related to your account even after your account closes. Closure of your account by you or us will not release you from any fees or other obligations incurred before the closure, those you incur in the process of closing out your account, or for your liability for outstanding items.
- ACCOUNT OWNERSHIP CATEGORIES
Signature Card Designation. The ownership category of your account is designated on the signature card you sign when you open the account. We may rely on those designations for all purposes relating to your account.
Individual Accounts. By opening an individual account, you are considered by us to be the sole owner of the account. This is regardless of whether any person is designated as a “payable on death” payee or “in trust for” payee. You may designate another person to conduct transactions on the account by granting them a limited power of attorney on a form acceptable to us, without granting them any ownership interest in your account. Otherwise, you will be the only person authorized to use the account. -
Joint Accounts With Right of Survivorship (Not as Tenants in Common). If your account is in two names, it is a joint account. Joint accounts are limited to no more than two joint account owners. Joint accounts are with the right of survivorship. This means that upon the death of either joint owner, the account balance is owned by the surviving owner, subject to our right to reimbursement from the account and our right of setoff and security interest in the account and the estate of the deceased joint owner has no interest in the account.
You understand that as a joint owner of the account, each of you is considered jointly and severally liable to us for the entire amount of any obligation (such as any fees on your account) or liability to us regarding the account, or for any Losses regarding the account. Each joint owner appoints the other as his/her agent to deposit, withdraw and transfer funds, instruct us to stop payment on any item drawn on the account and to release or cancel stop payment requests (even if not initiated by him/her), obtain any and all information from us about the account, and conduct any and all other business on the joint account including, but not limited to, pledging or encumbering the account (where we may allow you to do so), or closing the account. Acting as an agent, any joint owner can endorse checks, drafts or other payment orders made out to any other joint owner for deposit into the joint account. Any joint owner or owners may appoint an attorney-in-fact for the account, but we reserve the right to require the consent of all joint owners before allowing such an appointment. All such appointments of an attorney-in-fact must be done in compliance with the requirements of the section of this Agreement dealing with Power of Attorney Appointments.
One joint owner is not authorized to remove another joint owner from the title of the account without the written consent of the other joint owner but may, however, withdraw all of the funds from the account or close the account at his/her discretion and without the permission, knowledge, or consent of any other joint owner. While you may request that the names on your account be connected with the word “and,” you agree that we may treat the account like any other joint account, and that we may rely on the instructions and/or signature of either joint account owner, and the rules in this Agreement will apply to your account so titled.
If one of the joint owners of the account owes us money that is due, we can, to the extent permitted by this Agreement and not prohibited by Applicable Law, use the funds in the joint account to pay the debt, regardless of who deposited the funds into the joint account. Similarly, from time to time we may be required by Applicable Law to remit funds held in the joint account to satisfy a judgment, execution, levy or court order entered against, or other valid debts incurred by, either owner of the joint account. We may do so regardless of who deposited the funds into the joint account.
If we receive conflicting instructions from the owners of the joint account, we have the right to refuse further payment except on a final court order or a release that is in a form acceptable to us and that is signed by all joint owners of the account.
Totten Trust Accounts. Subject to Applicable Law and the Bank’s acceptance, you may, without a written trust document, designate on the signature card an account to be payable on your death to one (1) designated beneficiary. Such accounts may be generally known as “Totten Trusts,” “transfer-on-death,” or “in trust for” accounts. You are solely responsible for meeting the terms of Applicable Law in establishing such accounts including, without limitation, any titling requirements. We make no representations as to whether the establishment or use of such an account designation is appropriate for you. You may want to consult your attorney, tax professional or estate planning advisor before making such a designation. You have the right at all times to change or remove such beneficiary from the account, close the account, or withdraw some or all of the funds from the account.
If you open this type of account, the account and the funds in it belong to you during your lifetime and, until your death, the beneficiary has no interest in the account and may not access the account nor the funds in the account. Upon your death, or if there is a joint owner, upon the death of the surviving co-owner, all the funds in the account shall be owned by the person then living who is named as beneficiary on the account. The money in this type of account will not be inherited by your heirs or controlled by your will. We have no obligation to notify any beneficiary of the existence of any account or the vesting of any interest in any account.
Power of Attorney Appointments. If you would like to appoint someone as your attorney-in-fact to access your account and/or the funds in it, we may require you to complete our power of attorney form to do so. To the extent permissible by Applicable Law, we may reject a power of attorney form that you provide to us that is not the original or is not on a Bank form or, if applicable, the statutory form or for any other reason. If a power of attorney is accepted by us, any action by us is in reliance on your attorney-in-fact and will be binding on you if we take action before we receive and have a reasonable opportunity to act upon: (a) a signed, written revocation of the power of attorney or (b) a certified copy of your death certificate. You authorize and direct us to receive, accept, pay and/or apply, without any duty of inquiry, without limit as to amount, and without regard to the application of the proceeds, any draft, or other instrument for the payment of money drawn by your attorney-in-fact on or payable from your account(s) including, but not limited to, those endorsed to the order of your attorney-in-fact or otherwise for the personal credit of your attorney-in-fact. We are not liable for the misapplication of funds from your account by the attorney-in-fact, or if the attorney-in-fact exceeds his/her authority or otherwise does not comply with Applicable Law.
Other Agency and Fiduciary Accounts. Any individual acting as a legal guardian, personal representative, trustee, custodian or in some other fiduciary capacity (collectively, “Fiduciary”) must be so designated to the Bank on the signature card. It will otherwise be assumed that you own the account in an individual capacity. The Bank is authorized to follow the directions of your Fiduciary regarding your account until it receives written notice that the agency has been terminated and it has had a reasonable time to act upon the notice. The Bank is not liable for the misapplication of funds from your account by your Fiduciary. This Agreement, in conjunction with the terms of any Fiduciary agreement, trust agreement or affidavit of trust, court order or other document on which the account is opened (collectively “Fiduciary Agreement”), when in a form acceptable to the Bank, will govern the account, and the Bank has the right to request documentation as is necessary to open the account. All Fiduciary account owners and beneficiaries agree that the Bank will not be liable if the Fiduciary commits a breach of trust or breach of fiduciary duty, or fails to comply with the terms of any written Fiduciary Agreement or comply with Applicable Law. The Bank is not responsible for enforcing the terms of any written Fiduciary Agreement or Applicable Law against the Fiduciary and can rely on the genuineness of any document delivered to it, and the truthfulness of any statement made to it by a Fiduciary.
GENERAL TERMS AND CONDITIONS GOVERNING YOUR ACCOUNT
Signatures on the Account
Reliance on Your Signature Card. If for any reason you have not signed a signature card or we do not have your signature card, we will not be liable to you for honoring any signed instructions if we believe in good faith that the signature(s) appearing on such instructions are authorized. We make no representations as to the appropriateness or effect of the ownership and beneficiary designations, if any, specified on your account records, except as they determine to whom we pay account funds.
Facsimile Signatures. We may from time to time and in our sole discretion allow you to use a facsimile signature on a withdrawal slip or other account form. A “facsimile signature” is any method you use to imprint your signature on such documents other than your handwritten signature. For example, this could include the use of signature stamps or plates, computer-generated symbols and signatures produced by digital or other electronic means. You are fully responsible for the use of such facsimile signatures, and you authorize us to accept and pay any draft or other instrument for the payment of money appearing to bear or bearing your facsimile signature (regardless of to whom such item is made payable) and to rely on such facsimile signature on any draft or other instrument for the payment of money, withdrawal slip or other account document as though you had signed your own name to such document. We may rely on such facsimile signature even if it was placed on the draft or other instrument for the payment of money, withdrawal slip or account document by someone other than you and/or without your authority. Alternatively, we reserve the right to reject any draft or other instrument for the payment of money, withdrawal slip, or other account document that bears or appears to bear a facsimile signature. You should maintain close control over your facsimile signature device and promptly review your account records for unauthorized use of the device.
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Deposits to the Account
General Deposit Rules. You can make deposits to your account in person at our branch, by mail or by any other method we make available. We are not responsible for deposits made by mail until we actually receive them. We encourage you to use the personalized deposit slips that we make available to you in order to help us credit deposits to your account as soon as possible and to minimize errors. If you do not use your personalized deposit slips that we provide to you, you agree that we will not be liable to you for any errors resulting from your use of counter or other form of deposit slip, whether completed by you or one of our employees. We have the right, but are not obligated, to endorse any non-cash items submitted for deposit into your account and deposit them into your account. We also have the right to not accept items that contain multiple, missing or improper endorsements, and to limit, refuse, hold, or return any deposit. You agree to reimburse us for any and all kinds of Losses we incur because you fail to endorse an item exactly as drawn, you deposit an item with a missing endorsement, or resulting from or arising out of any return of any deposited item for any reason whatsoever. You agree that our count of the coins and currency in your deposit shall be conclusive as to the amount. We will make any necessary adjustments to your account for any discrepancies with which we agree and notify you. We reserve the right to make adjustments to your account, in our sole discretion, for computation or other errors to your account.
Check Endorsement Standards. To ensure that checks you deposit into your account are processed without delay, you must endorse them correctly. The area reserved for your signature is on the back of the check, within 1-1/2 inches from the “trailing edge” of the check. The “trailing edge” is defined as the left side of the check when viewing it from the front. Turn the check over and sign your name. Do not make any additional marks or notations on the back of the check. The portion of the check not reserved for your endorsement must remain blank for processing purposes. We will not be responsible for any Losses you incur if your check is improperly endorsed. You will be liable for unpaid checks returned late because your endorsement, a prior endorsement, or information you have printed on the back of the check obscures other endorsements.
Direct Deposits. You agree that we may reverse any direct deposit that is made to your account without prior notice to you at any time if: (a) we credited your account in an incorrect amount, (b) the deposit represents a duplicate credit to your account, (c) you were not entitled to the deposit, or (d) you were not the intended recipient of the deposit. This right is in addition to any other rights that we may have under this Agreement or Applicable Law, including our right of setoff and any security interest that we may have in your account.
Deposit of Foreign and Other Non-Routine Items. Checks drawn on banks located outside the United States, bond coupons and other non-routine items will be accepted for collection only. These items are not governed by our Funds Availability Policy. These items will not be posted to your account, and you will not receive credit for such items until we receive final credit from the bank on which it is drawn. You agree that when we receive final credit for an item that we have accepted for collection, we may subtract any applicable fee as may be disclosed in the Rates and Fees Schedule for processing such non-routine items from the amount finally credited to us, before we credit your account for the remaining amount. From time to time and in our sole discretion we may make exceptions to this policy. We are not, however, under any obligation to do so, and we will not be liable to you if we do not do so.
Collection of Items. In receiving checks and other items for deposit or collection, we act as your collection agent and assume no responsibility beyond the exercise of ordinary care. Any special handling instructions are effective only if made in writing and given to us along with the check or item in question. We will not be liable for default or negligence of our correspondent banks or for loss in transit, and each correspondent bank will only be liable for its own negligence. You are responsible for reconstruction and proof of loss of any items, including checks and other negotiable instruments, included in deposits which are lost or stolen in transit before we have received and accepted the deposit. Further, you agree to fully cooperate and assist in the reconstruction and proof of loss of any items, including checks and other negotiable instruments, included in deposits that are lost or stolen in transit after we have received and accepted the deposit. Checks and other items and their proceeds may be handled in accordance with applicable regulations and operating circulars of the Federal Reserve, clearinghouse association or funds transfer system rules, and contractual arrangements with other financial institutions. All deposited checks and items (including those drawn on another account at the Bank) are credited subject to final payment and our receipt of proceeds. Until we receive final payment, any credit that we provide to you for the deposit is provisional only.
You authorize us to pursue collection of previously dishonored checks and items, and in so doing, we may permit the payor bank to hold an item beyond the midnight deadline. You also authorize us to convert, at our sole discretion, any checks that you deposit into your account and that are returned for uncollected or insufficient funds to an electronic transaction.
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Return of Deposited Items. If a check or other item you deposit or we cash is returned to us for any reason, at any time, we may debit your account for the amount of the check or item without regard to whether the bank on which the check or item was drawn returned it before its midnight deadline. Furthermore, if after a check or other item deposited into your account is finally paid, it is returned to us by the bank on which it is drawn because someone has made a claim that the check or other item was altered, forged, unauthorized, or should not have been paid for some other reason, we may debit your account for its amount. All returns of checks or other items discussed in this section are hereinafter referred to as “Returned Deposited Items.” In each of the foregoing situations, we may also debit your account for any interest you may have provisionally earned on the amount of the Returned Deposited Item.
In some cases the financial institution on which the Returned Deposited Item is drawn may send us an electronic notice of return instead of returning it. We may act on, and you agree to be bound by, the electronic notice of return just as if the original check or item had been returned. We may debit your account for the amount of the Returned Deposited Item at any time on or after the day it is returned to us by electronic or other means, or the day we receive notice that it is being returned to us – whichever is earlier. If you have insufficient available funds to cover the amount of the Returned Deposited Item, we may overdraw your account in accordance with this Agreement. You agree to repay us the amount of such overdrafts immediately.
For each Returned Deposited Item that was drawn in a foreign currency, we charge your account the U.S. dollar equivalent of the item. We may calculate the U.S. dollar equivalent by using our applicable exchange rate that is in effect when we process the Returned Deposited Item.
We may charge you a fee for each Returned Deposited Item. The amount of such fee(s) is disclosed in your Rates and Fees Schedule.
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Withdrawals from the Account
Presentment of Debit Transactions. All items drawn on your account, and other items or instructions seeking to debit money from your account (such as in-person withdrawals at our branch, automated clearinghouse (“ACH”) debits, online bill payment and/or transfer instructions, automatic transfers, and/or other forms of electronic fund transfers) are all individually and collectively considered “Debit Transactions” on your account. The decision to pay Debit Transactions, or to return them unpaid, is made on the day that the Debit Transaction is presented to us. Our decision to pay or return your Debit Transaction is based on funds available in your account and other factors (for example, whether there are any withdrawal limits applicable for the account). We may determine your account balance for the purpose of deciding to pay or return your Debit Transaction at any time between the receipt of such presentment and the return of the item. No more than one such determination need be made. -
Overdrafts. If you initiate any Debit Transaction in an amount that exceeds the available balance in your account, it is within our sole discretion to pay the Debit Transaction, thereby creating an overdraft on your account, or return it unpaid. We have no obligation to permit overdrafts on your account, and our decision to permit you to create an overdraft on your account does not require us to do so in the future. We are not required to send you prior notice on any Debit Transactions returned for insufficient available funds. We will not be liable to you or any other person for our decision to pay the Debit Transaction or return it unpaid. We may impose, and you agree to pay, an Insufficient Available Funds Fee or Overdraft Fee, as disclosed in your Rates and Fees Schedule for each Debit Transaction that we return or pay.
We make the decision whether to pay your Debit Transactions, or return them unpaid, based on the funds available in your account, the amount of your Debit Transaction, and other considerations. We may accept, pay or charge to your account your Debit Transactions in any order we choose even if (a) paying a particular Debit Transaction results in an insufficient balance in your account to pay one or more other Debit Transactions that otherwise could have been paid out of your account; or (b) using a particular order results in the payment of fewer Debit Transactions or the imposition of additional fees. The order in which we decide to process your Debit Transactions may not be the same order in which they were received by us or the same as the order in which you initiated them. In general, we process your Debit Transactions at the end of each business day, Monday through Friday in low to high dollar amount. If there are insufficient funds to cover all of your Debit Transactions processed on any given day, this method may result in additional Insufficient Available Funds Fees or Overdraft Fees. We may establish different processing priorities or categories for some Debit Transactions. We reserve the right to change or vary from our policy at any time without notice to you.
You agree to immediately repay the amount of any overdraft created on your account, and the amount of any Overdraft Fee(s) that may be imposed on your account. For joint accounts, all account owners agree that this obligation of repayment is joint and several, regardless of who may have initiated the Debit Transaction that caused the overdraft and resulting Overdraft Fee(s) and to reimburse us for Losses we incur in collecting the overdraft from you. You also agree that these amounts may be repaid out of any subsequent deposit to your account or set off against such deposit to your account including, without limitation, deposits of Social Security, Supplemental Security Income or other government benefits.
Automatic Transfer Service. You may establish an automatic transfer service with us to have funds transferred automatically from one of your accounts with us to one or more other accounts that you have with us, or to repay a loan that you have with us. Federal regulation places limits on the number of automated transfers you make from your savings and money market accounts.
In most cases, we make transfers periodically on the days and for the amounts that you specify. However, loan payment transfers must be made on the loan due date each month. If a scheduled transfer falls on a weekend or bank holiday, it may be made the next business day. You agree to maintain a sufficient available balance in the account(s) from which transfers will be made. If you do not maintain a sufficient available balance in such account(s), we may, in our sole discretion, complete the transfer of the amount requested, thereby creating an overdraft on the account from which the transfer is made. You agree to repay us the amounts of such overdrafts and the amount of any Overdraft Fee(s) immediately. Alternatively, if you do not have enough available funds in your account to complete the transfer, we may refuse to make the transfer at all or in the full amount requested and we reserve the right to immediately cancel this service. Otherwise, you may cancel this service by providing us with notice of your termination in writing. This will be effective no later than five (5) business days after our receipt of your termination request. In addition to our ability to terminate this service due to insufficient funds, we may also terminate it for any or no reason by sending you written notice.
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Money Market Transaction Limitations. You may make an unlimited number of withdrawals or transfers from your money market account so long as they are done in person at our branch location. However, federal regulations limit your ability to make withdrawals and transfers from money market accounts to another of your accounts with us or to third parties by preauthorized or automatic means, personal computer (including online banking or bill payment services) or telephone (including facsimile or data transmission) to six (6) per statement cycle period. If you exceed this transaction limitation on a regular basis, we will close your account. Our money market account does not currently include check writing capabilities.
Remotely Created Checks. If you provide the Bank’s routing and transit number and your account number to a third party over the phone (such as a telemarketer) or via the Internet, you authorize us to debit from your account the amount(s) of one or more “remotely created checks.” A remotely created check is a check created by the third party that, although it does not bear your signature, purports to be drawn on your account with your authorization. Although we are authorized to honor such remotely created checks, we are not obligated to do so and we may refuse to honor any such remotely created checks in our sole discretion. We may return such remotely created checks even if we have honored similar remotely created checks in the past. You agree that we are not liable to you for any Losses that may result from either honoring or dishonoring any such remotely created checks drawn on your account.
Earning Interest and Paying Fees on Your Account
Interest. Some accounts earn interest. You may obtain current rate information by calling us at (888) 226-0819, Monday to Friday 9:00 a.m. to 6:00 p.m. All times are Eastern Time. You may also obtain information regarding rates by visiting our website online anytime at www.unionfsb.com, or by asking one of our branch representatives. Specific information regarding our rates may be found in the Rates and Fees Schedule. -
Fees. You agree to pay all fees that apply to your account or the services described in or incorporated into this Agreement. If your account is a joint account each account owner is jointly and severally liable for all fees on the account. All fees for your account are disclosed in the Rates and Fees Schedule, the terms of which are incorporated into and are part of this Agreement. Fees may be deducted from your account as incurred by you and without prior notice to you, and if there are not sufficient funds available in your account to cover the fees that you owe us, we may overdraw your account. You agree to repay us the amount of such overdrafts immediately. We will not be liable for dishonoring Debit Transactions because of insufficient available funds resulting from proper deduction of fees, and you agree to repay immediately all amounts that you owe us. We may, in our sole discretion, change the fees applicable to your account. As may be required by Applicable Law, we will provide you with notice of any changes in our fees. Such notice will be sent to you at the address shown in our records. If your account is closed (either by you or by us), you remain responsible for all fees incurred in connection with your account.
- Safeguarding Your Account
Reviewing Your Account Statements. You are in the best position to discover issues or problems with your account, such as forged, unauthorized or missing signatures or endorsements, a material alteration, a missing or diverted deposit or any other error or discrepancy relating to a draft or other instrument for the payment of money, deposit or other credit or debit to your account. Therefore, you must promptly and carefully examine your statements that we make available to you. If you think that an unauthorized person has withdrawn funds from your account, that one or more deposits is not reflected on your statements, or that there is any other type of error or discrepancy in your statements, you should notify us immediately and in no event later than thirty (30) calendar days (unless a longer period of time is required by Applicable Law) after we send you or otherwise make your account statement available to you. If you do not provide us with notice within this time frame, you may have to share any Losses that may occur on the account due to unauthorized signatures or alterations on your account, or bear the Losses entirely (depending on whether or not we used ordinary or if our actions or inactions substantially contributed to the Losses). This could include subsequent Losses perpetrated by the same individual.
Additionally, if you fail to report unauthorized transactions reflected on your statement (except for electronic fund transfers) within sixty (60) calendar days following the closing date reflected on your statement, you will not be able to assert any claims for Losses against us for items on that statement, regardless of whether we exercised ordinary care. Your rights regarding electronic fund transfers that you believe are unauthorized are discussed in the Electronic Banking Services portion of this Agreement.
Lost, Stolen or Destroyed Passbooks. If you have such an account and you lose your passbook, or if your passbook is stolen or destroyed, you must notify us as soon as possible. We will close your account and issue you a replacement passbook only if you (or, if your account is a joint account, all joint account owners) complete any documentation that we may require and provide us with identification that we deem appropriate under the circumstances. We may also require you to pay us any Passbook Replacement fee that is disclosed in the Rates and Fees Schedule. We reserve the right to require you to give us a surety bond or an indemnification agreement before we will agree to issue a replacement passbook to you. Once we issue the replacement passbook to you, we will have no further liability for the original passbook.
Change of Address. We will rely on your address as it appears on our records for any and all communications we send to you unless you notify us in writing of a change of address at
UNION FEDERAL SAVINGS BANK
P.O. Box 848114
Boston, Massachusetts 02284-8114
and we have had a reasonable opportunity to act on such notice. It is your responsibility to notify us of any changes in your address. You also agree that if the U.S. Postal Service or one of its agents notifies us of a change in address for you, we may change your address based on this information. We have no liability to you if we change your address based on such information, even if the information provided by the U.S. Postal Service or its agent is incorrect.
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Recording and Monitoring Telephone Calls. We may record or monitor telephone calls between you and us for training, customer service, and other purposes. We need not remind you of our recording or monitoring before each call unless required to do so by Applicable Law.
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Requests for New Documentation. From time to time we may request additional information from you to protect your account and our systems from fraud or other problems. This information may include new sample signatures and other information that we must obtain under Applicable Law. You agree to assist us by promptly complying with any such request. You also agree to hold us harmless for refusing to pay or release funds or to take any other action relating to your account where the refusal is based on your failure to provide the signatures or documentation requested by us from time to time.
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Disputes Involving Your Account
Legal Process. If legal action such as an attachment, garnishment, levy or other state or federal legal process is brought against your account (individually and collectively, “Dispute(s)”), we may refuse to allow any withdrawals or transfers from your account until the Dispute is released or we are notified by the proper persons or authorities that it has been resolved. You agree that we will not be liable to you for making a payment to any third party involved in a Dispute even if such payment leaves insufficient available funds in your account to cover any outstanding Debit Transactions on your account. We will not contest a Dispute on your behalf. We may take action we determine to be appropriate under the circumstances to comply with a Dispute, even if the Dispute purports to affect the interests of less than all of the owners of a joint account. We will notify you whenever we are notified of a Dispute, and place such restrictions on your account, to the extent permitted by Applicable Law. Without prior notice to you, we may charge against or deduct from your account, or otherwise bill you directly, an amount representing our Losses incurred in responding to or processing a Dispute as permitted by Applicable Law. We may also assess and debit from your account any applicable Legal Process Fee set forth in the Rates and Fees Schedule that may be assessed as a result of the Dispute in accordance with Applicable Law.
Conflicting Claims Involving Your Account. If we receive notice of an actual or potential claim from a third party regarding your account, or if we believe that a conflict exists between account owners and/or authorized signers on the account, or if there appears to be a controversy over matters such as ownership of the account or who has the authority to withdraw funds, we may:
- Continue to rely on the signature card(s) or other documents and to process your account in what we believe is good faith conformity with such signature cards and documents;
- Honor the competing claim upon our receipt of evidence we deem satisfactory to justify the claim;
- Freeze all or part of the funds in your account until the dispute is resolved to our reasonable satisfaction; or
- Close the account and send a check for the balance remaining in the account, payable to you or to you and each claimant, or to pay the funds into a court of appropriate jurisdiction for resolution.
Without prior notice to you, we may charge against or deduct from your account, or otherwise bill you directly, an amount representing our Losses incurred in handling the conflicting claims on your account as permitted by Applicable Law. We may also assess and debit from your account any applicable fees set forth in the Rates and Fees Schedule that may be assessed as a result of the Dispute in accordance with Applicable Law.
Documentation as Evidence. If we go to court for any reason, whether the proceeding is instituted by you, us or some other third party, we may introduce into evidence a copy, printout, microfilm, microfiche or electronic version of any document evidencing a transaction under this Agreement and such copy, printout, microfilm, microfiche or electronic version shall be deemed as valid as the original document.
Limited Liability. Unless we acted in bad faith, we are not liable to you for delays, errors, or Losses that occur on your account because of our performance (or failure to perform) services under this Agreement. In addition to that limitation, we are also not liable to you for mistakes or delays on your account that are caused by circumstances beyond our control, such as acts of civil, military or banking authorities, national emergencies, insurrection, war, riots, acts of terrorism, failure of transportation, communication or power supply, or malfunction of or unavoidable difficulties with our equipment. IN NO EVENT WILL YOU OR ANY PERSON ACTING ON YOUR BEHALF BE ABLE TO RECOVER FROM US ANY CONSEQUENTIAL, EXEMPLARY, INDIRECT OR PUNITIVE DAMAGES OR LOST PROFITS, EVEN IF YOU ADVISE US OF THE POSSIBILITY OF SUCH DAMAGES OR LOSSES.
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Indemnity. You agree to indemnify and hold us, our shareholders, directors, officers, employees, and agents (and our affiliates and subsidiaries and the shareholders, directors, officers, employees and agents of our affiliates and subsidiaries) harmless from and against any and all Losses arising from or in connection with the services provided under this Agreement, except for Losses due to our own gross negligence or willful misconduct. Additionally, you further agree to hold us, and our shareholders, directors, officers, employees, and agents (and our affiliates and subsidiaries and the shareholders, directors, officers, employees and agents of our affiliates and subsidiaries) harmless from Losses arising out of actions taken or omitted in good faith by us in reliance upon instructions from you, an authorized signer or Fiduciary, or any person acting on your behalf. We are not responsible for any actions or omissions by any third party that is not under our direct control.
Reimbursement for Losses. If we undertake any action(s) to collect debt or other amounts that you owe us under this Agreement, or if we defend ourselves in a lawsuit that you bring against us and we prevail in that action, you agree to reimburse us for our Losses to the fullest extent permitted by Applicable Law. We may deduct the amount of these Losses from your account without notice to you.
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Your Instructions. In our sole discretion, we may follow your instructions concerning your account, whether such instructions are provided by you in writing, electronically, orally (including our recording of your oral instructions) or by other means, and we may do so without any liability to you. We reserve the right to refuse to follow any instructions that you give us that we believe may expose us to potential liability. We will not have any liability to you if we do not follow your instructions in these situations. If, however, we decide to follow your instructions in these situations we reserve the right to ask you for certain protections such as a surety bond or an indemnity agreement in a form that is satisfactory to us.
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Disputes Involving Reports of Account Performance. If you maintain your account in an unsatisfactory manner, you understand that we may report information about you and any other joint account holders or authorized signers to a consumer reporting agency (including, but not limited to agencies that compile information regarding your deposit account performance with us and at other banks). If you disagree with the accuracy of the information reported please call us at (888) 226-0819, Monday to Friday 9:00 a.m. to 6:00 p.m. All times are Eastern Time, or write to us at:
UNION FEDERAL SAVINGS BANK
P.O. Box 848114
Boston, Massachusetts 02284-8114
Miscellaneous Terms and Conditions
and Conditions
Set Off of Deposits in Your Account. If you owe us money as a borrower, guarantor, judgment debtor or otherwise (including any obligation to a financial institution acquired by us) and that money is due, you grant us a security interest in your account(s) with us and you also
grant us the right to set off the funds in any account(s) you have with us to pay money owed to us (which may include, without limitation, charges and fees found in the Rates and Fees Schedule which are owed to us). You agree that we may exercise these rights to the fullest extent permitted by Applicable Law and that these rights are different from, and in addition to all other rights we have under this Agreement or Applicable Law. You understand and agree that the security interest you have granted us by this Agreement is consensual and is in addition to any other right of set off we may have under Applicable Law.
In the case of a joint account, each joint owner agrees that we may use the money in his/her joint account(s) to satisfy any of his/her individual obligations. This right exists regardless of who contributed the funds to the joint account. Each joint account owner also understands and agrees that we may also set off funds in his/her individual accounts to satisfy obligations on which s/he may be jointly and severally liable to us.
We may exercise our rights under this section without recourse to other collateral, if any, and even if our action causes you to lose interest, have checks or other Debit Transactions drawn on your account returned unpaid, incur an early withdrawal penalty or any other consequence. If we exercise our right to set off, we will notify you to the extent required by Applicable Law. Except to the extent prohibited by Applicable Law, we may set off all of the funds in your joint account. Our right of set off and our security interest may not apply to your account if: (a) your account is an IRA or other form of tax-deferred retirement account; (b) the debt is created under the terms of a credit card agreement; (c) your rights of withdrawal on the account arise only in a representative capacity, or (d) the right of set off or the granting or exercise of a security interest in your account is prohibited by Applicable Law. To the extent that any of the funds to be set off are entitled to an exemption from execution, levy, attachment, garnishment, seizure or other legal or equitable process (such as, but not limited to, Social Security, Supplemental Security Income, Veterans or other federal or state benefits), then you agree, to the maximum extent allowed by Applicable Law, to hereby knowingly, affirmatively, and unequivocally waive such exemption.
Assignment, Pledge or Transfer of your Account. As a general rule, your accounts are not negotiable or transferable. We may, in our sole discretion and with our written consent, allow you to assign or pledge your savings account and CD account(s). We may, as a condition of your assigning or pledging such accounts, require that you complete certain documentation in a form that is satisfactory to us. We may allow you, in our sole discretion, to pledge some of your accounts as collateral for loans made by us.
Accounts Considered Dormant or Abandoned. Your accounts and deposits may be presumed dormant or abandoned after a certain period of time as determined by Applicable Law. Dormant accounts may be subject to the Account Inactivity Fee disclosed in the Rates and Fees Schedule. Standard account service and maintenance fees may also be imposed on accounts presumed to be dormant and/or abandoned. Accounts that are presumed to be abandoned will be escheated in accordance with Applicable Law.
Changing this Agreement. We have the right to change the terms of this Agreement, the fees and charges we impose on your account, and any and other terms and conditions described in other documents provided to you (including, but not limited to, our Rates and Fees Schedule and Disclosures) and any policy or procedure affecting your account at any time. We will provide you with notice of such changes when and as required by Applicable Law. All such changes will be effective upon the date shown on the notice. However, if the change is in your favor (such as the termination or reduction of a fee), we may provide you notice of the change after it is effective. All such notifications will be effective if mailed to the address of the account in our records. If any such notice is returned to us as undeliverable, the changes described in that notice are still binding on you. This Agreement may not be amended or modified orally.
Disclosure of Information. We respect your right of privacy. Information about your account or any transactions between you and the Bank will not be disclosed to third parties except in accordance with Applicable Law and the Bank’s Privacy Policy.
Statements. Depending on the type of account and services you have, we may send or otherwise make available to you a periodic statement detailing activity on your account. We may change the frequency of such statements without notice, unless we are required to notify you of such a change by Applicable Law. We will send you periodic statements electronically with your consent, in accordance with Applicable Law. You also have the right under Applicable Law to at any time withdraw your consent to receive your statements electronically. The manner in which you may withdraw your consent (and the consequences for doing so) is provided to you when you consented to receiving your statement and the Disclosures electronically. If you have any questions regarding how you may do so, please call us at (888) 226-0819, Monday to Friday 9:00 a.m. 6:00 p.m. All times are Eastern Time.
You will not receive a statement for your Passbook Savings account(s). We may record all transactions on your Passbook Savings account upon your presentment of the book to us.
If your periodic statement is returned to us as undeliverable because you provided us with inadequate delivery instructions or otherwise did not notify us of a change in your address, or if you asked us to hold statements for you and you did not return to claim them, we will not re-send your account statement. However, in these cases, you agree that for all purposes under this Agreement your statement shall be deemed available to you as of the statement date printed on your statement.
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Waiver of Notice. By signing the signature card, you waive any notice of non-payment, dishonor or protests regarding any items credited to or charged against your account. For example, if a check that you deposited is dishonored and returned to the Bank, the Bank is not required to notify you of the dishonor.
Notices. Any notice that you give to the Bank is effective only once it is actually received. If you have been instructed to use a specific address for a certain type of notice, it must be received by the Bank at that address to be effective. Any notice that the Bank gives to you is effective when it is deposited in the United States Mail, postage prepaid, and addressed to you at the mailing address we have on file for you. As described elsewhere in this Agreement all changes described in such notices are effective upon the date shown on the notice. Our notice to you will be effective even if it is returned as undeliverable because you did not update us regarding a change in your address in accordance with this Agreement. Notice to any one owner of an account is notice to all owners of that account.
Death or Incompetence. We may continue to accept, pay or collect items until we know of the fact of death or incompetence of an account owner. Even with such knowledge, we may, for ten (10) days after the date of death, pay Debit Transactions initiated or drawn on or before the date of death unless ordered to stop payment on such Debit Transactions in accordance with the terms of this Agreement.
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Copies. We may provide you with copies of your statements, drafts or other instruments for the payment of money, deposit slips, withdrawal slips and other account records. We may also, at your request, conduct research on your account. Unless stated otherwise by this Agreement, we may assess you a fee for producing such copies or conducting such research. The amounts of these fees are set forth in our Rates and Fees Schedule. We may deduct these fees from your account as incurred by you, without notice to you.
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Waiver. We reserve the right to waive the enforcement of any of the terms of this Agreement with respect to any transaction or series of transactions. Any such waiver will not affect our right to enforce any of our rights with respect to other customers, or to enforce any of our rights with respect to later transactions with you. Whether we enforce or waive our rights does not obligate us to enforce or waive similar rights in the future, nor will such waiver modify this Agreement.
Severability. If any provision(s) of this Agreement shall for any reason, including under any Applicable Law, be held to be invalid, illegal or unenforceable, the remaining provisions of this Agreement shall remain in full force and effect. -
Choice of Law. Your accounts with us are governed by federal law and, to the extent not preempted by federal law, the law of the State of Rhode Island. -
Singular and Plural. Unless it would be inconsistent to do so, words and phrases used in this Agreement should be construed so that the singular includes the plural and the plural includes the singular.
Section Headings. The headings used in this Agreement are for convenience only. They do not limit or define your or our rights or obligations under this Agreement.
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