625 8th Avenue
PO Box 280
Howard lake, MN 55349
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." The term "Agreement"
means this Deposit Account Agreement and Disclosure, 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 it
applies. You agree that you received a copy of the Agreement. You
agree to the terms of the Agreement. We may change the Agreement
from time to time. If we choose, we don't have to collect any fee
or charge or enforce the Agreement.
PRIVACY POLICY
Confidentiality
and Security of Nonpublic Personal Information: We restrict
access to nonpublic personal information about you to those employees
who need to know that information to provide products or services
to you. We maintain physical, electronic, and procedural safeguards
that comply with federal standards to guard your non public personal
information.
Nonpublic
Personal Information We Collect. We collect nonpublic personal
information about you from the following sources:
- Information
we receive from you on applications or other forms
- Information
about your transactions with us, our affiliates, or others
- Information
we receive from a consumer reporting agency
Nonpublic
Personal Information We Disclose. We do not disclose nor do
we reserve the right to disclose, any nonpublic personal information
about our customers or former customers to anyone, except to other
nonaffiliated third parties as permitted by law.
Notify
Us of Inaccurate Information We Report To Consumer Reporting Agencies.
Please notify us if we report any inaccurate information about your
account(s) to a consumer reporting agency. Your written notice describing
the specific inaccuracy(ies) should be sent to us at the following
address: Security State Bank of Howard lake PO Box 280 625 8th Avenue
Howard lake, MN 55349
DATE
ACCOUNT OPENED. If you open an account with us after 3:00 PM
on a business day that we are open, we will consider that the transaction
was made at the opening of the next business day for account opening,
effective date and issue date purposes.
DEPOSIT ACCOUNTS. We may offer a variety of deposit accounts.
Each of these accounts is covered by the general terms of the Agreement.
Each type of account is also covered by specific terms in the Agreement
for that type of account. If you open more than one account, you
may receive a Schedule for each account. The Agreement covers all
of your accounts with us. You will pay us all overdrafts, fees,
charges, and our reasonable costs of collection and attorneys' fees
relating to your accounts.
INTEREST. If your Account earns interest, the following information
applies: (A) Payment of Interest. We will pay interest at
the annual rate stated in the Schedule. The Schedule also states
how often interest is paid, how often interest is compounded, the
balance on which interest is paid, and any minimum balance for the
account. (B) Minimum Balance Requirements. The Schedule may
state a minimum balance that you must keep in your Account. If you
don't keep the minimum balance during a certain period, we may choose
not to pay interest on your Account and we may charge you a fee
for that period. You should review any minimum balance in the Schedule.
(C) Initial Interest Rate. The initial interest rate is the
current annual rate of interest that we will pay on the 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. Your Account has an interest compounding feature
if a compounding frequency is stated in the Schedule. Interest compounding
generally means that interest is being accrued on earned interest.
We may compound interest more often than we pay interest on your
Account. (E) Interest Accrual. We may accrue interest on
your Account more often than we pay interest. For example, we may
calculate interest daily and pay interest to your Account monthly
or quarterly. The interest that has been calculated, but not paid
to the account, is called accrued unpaid interest. (F) Changes.
We may change the rates and fees according to the Schedule. We also
may change any other term of this Agreement.
FEES AND CHARGES. You agree to pay us certain fees and charges
for account and banking services, as allowed by law. We may take
the
fees and charges out of your Account. We also may charge you for
other services such as wire transfers of funds and cashier's checks.
Some of the fees and charges that we may require you to pay are
stated in the Schedule. We may change the fees and charges at any
time after notifying you of the changes, as allowed 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, even if these items are not endorsed by any of you. We may
add missing endorsements. When you deposit items to your Account,
you certify that all endorsements are genuine. You should endorse
all checks and other items deposited to your Account 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. We may accept
items with endorsements that do not follow these rules. If any endorsement
causes delay in processing or returning the item for payment, you
will be responsible for our loss due to the delay.
(B)
Final Payment. If you deposit any item to your Account that
is not cash, we post the deposit to your Account subject to final
payment of the item. If we do not receive final payment, or if the
amount of any item is charged back to us for any reason, we may
charge you or any of your Accounts for the amount of the returned
item plus any interest. We may also charge you or any of your Accounts
a returned item fee and any other fee that we have to pay. 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 may refuse to accept any item for deposit
in your Account. (C) Notice of Stop Payment, legal Process, or
Setoff. We may refuse to pay any check that we receive on any
banking day if we receive a stop payment order or legal process
or we setoff against your Account by 3:00 PM of the next banking
day. We may pay the check if we receive any information, notice,
stop payment order or legal process after that time. Other parts
of this Agreement may affect stop payment orders, setoffs and legal
process.
(D)
Direct Deposits. We may offer you direct deposit services. These
services allow you to receive automatic preauthorized deposits to
your Account, such as electronic transfers of Social Security payments
or automatic transfers from your other accounts with us. You may
cancel any direct deposit or transfer service by notifying us at
least 30 days before the next scheduled direct deposit or pre authorized
transfer. If any deposited amount is returned to the government
for any reason, we may withdraw the amount from your Account. (E)
Crediting of Deposits. The Funds Availability Policy Disclosure
that we give you states our policies on when deposits may be withdrawn.
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 we allow for the
type of account that you have opened. Withdrawals by mail are posted
to your Account as of the day we process the transaction. We may
refuse to pay any check, except for checks that we give you and
checks that we approve. Other provisions of the Agreement or the
Schedule or applicable law may restrict withdrawals and transfers
from your Account. (B) Withdrawal Restrictions and Overdrafts.
We do not have to allow you to withdraw money from your Account
if you don't have enough money in the account to cover the full
amount of the withdrawal. If there is enough money 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 is enough money in any order we choose. If there are
not enough available funds to cover some of the withdrawals or debits
against your account, we may handle such items by following our
overdraft procedures or 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 charge you a service charge if there are not
enough available funds to cover checks or other items on your Account.
We may refuse to let you withdraw money if any of the following
happens: (1) There is a dispute about the Account (unless a court
orders us to allow the withdrawal); (2) The Account is garnished
or attached; (3) The Account has been pledged as collateral for
a debt; (4) We cannot verify the availability of funds on deposit;
(5) Any required document has not been presented; or (6) You fail
to repay an obligation to us on time. (C) Notice Requirements.
Federal regulations allow us to require you to give us at least
7 days notice, in writing, before you make a withdrawal from a savings,
negotiable order of withdrawal ("NOW") or money market
account. Although we usually pay withdrawals or checks without a
7 day notice on these accounts, doing so does not mean that we give
up the right to the notice. (D) Postdated Items. If you write
a check and date it in the future, it is a postdated check. You
will not write a postdated check. If you write a postdated check
and the check is presented for payment before the date of the check,
we may choose to pay the check or return it unpaid. If we pay the
check, we will post the check to your Account on the day we pay
the check, even though that date is before the date of the check.
We are not responsible for any loss to you by 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. We may return a postdated check. (E) Power of Attorney.
A person signing a power of attorney is called a principal. A person
who acts for the principal is called the agent. We may refuse to
comply with a power of attorney if we have a good reason. Also,
we may require an affidavit by the agent stating that the power
of attorney form is a true copy and that, to the best of the agent's
knowledge, the principal is alive and that the powers of the agent
have not been changed or cancelled. (F) Signatures. We may
use the signature on your signature card to verify the signatures
on items drawn on your Account. We may store the signature card
information and signature in any reasonable form, including any
digitized signature capture process. If you use any facsimile signature
device, you must give us a sample of the signature. You agree to
be responsible for any liability we may have that results from the
use of any facsimile signature device, including attorneys' fees
and legal expenses. (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) Electronic Check
Conversion. You may authorize a merchant to use your check as
a source of account information to initiate an electronic withdrawal
from your account. The merchant uses the check information, along
with the transaction amount, to initiate an ACH debit transaction.
The transaction is electronically transferred through the ACH system
and the funds will be debited directly from your account and deposited
automatically into the merchant's account. After the information
is gathered from the check, the merchant should mark it void and
return it to you. You should sign and receive a receipt documenting
the transaction. A description of the transaction will appear on
your monthly statement from us. Checks used in these types of transactions
will not be returned with your statement. If you are a consumer
and you authorize a merchant to use your check for this type of
transaction, the transfer is governed by the Electronic Funds Transfer
Act and subject to the Electronic Funds Transfer Agreement and Disclosure.
(I) Re-presented Checks. A merchant may also re-present a check
returned for insufficient or uncollected funds electronically. The
merchant must provide notice to you, before accepting your check,
that your returned check may be collected electronically. Checks
used in these types of transactions will not be returned with your
statement. When a merchant re-presents a check electronically, that
transaction is not covered by the Electronic Funds Transfer Act.
However, if the merchant charges you a fee as a result of the returned
check and the fee is electronically debited from your account that
transfer will be covered by the Electronic Funds Transfer Act and
subject to the Electronic Funds Transfer Agreement and Disclosure.
(J) 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.
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) Money Market Accounts. If your Account
is a money market account, federal law requires us to limit you
to no more than 6 preauthorized transfers in any calendar month,
statement cycle (the period from one statement to the next) or similar
period. Pre authorized transfers are transfers or withdrawals which
you have authorized in advance to transfer money from your Account
to someone else or to another account that you have with us. Preauthorized
transfers include: (1) Transfers by check, draft, debit card, or
other instrument paid to someone else. You cannot make more than
3 of these transfers in any 1 period. If you make more than 3, we
do not have to honor the transfers. (2) Transfers to someone else
that you ask for over the telephone. (3) Preauthorized or automatic
transfers. (B) Savings Accounts. If your Account is a Savings
Account, you cannot make more than 6 preauthorized withdrawals or
transfers in any calendar month or statement cycle or similar period
of at least 4 weeks. Preauthorized transfers include: (1) Withdrawals
to someone else that you ask for over the telephone. (2) Withdrawals
by pre authorized or automatic transfer to someone else. (C)
Excess Transactions. If you have more than the maximum number
of transfers or withdrawals from your money market or your savings
account, we can close your Account after giving you any notice and
place'the funds in another account that you are eligible to maintain,
or we may take away the transfer and draft capabilities of the account,
as required by federal law. Except for preauthorized transfers or
withdrawals, you can make unlimited withdrawals from your account.
You can do this in person at our office, by mail, messenger, telephone
(by check mailed to you), or use of an ATM card (if you have one).
This includes payments to you and transfers from your Account to
another deposit or loan account that you have with us.
TIME DEPOSITS. If your Account is a time deposit, you agree
to keep the money on deposit until maturity of your Account. If
you withdraw any of the money before maturity, you may have to pay
an early withdrawal penalty. We will consider your request for withdrawal
before maturity. If we let you withdraw funds before maturity, the
penalty in the Schedule will apply. (A) Penalty. By paying
an early withdrawal penalty, you forfeit part of the interest that
has been earned or would be earned on your Account. If your Account
has not earned enough interest, or if the interest has been paid,
we take the difference from the principal amount of your Account.
For fixed rate accounts, we use the rate on 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 ruled legally incompetent by
a court or government body; (2) when the account is an Individual
Retirement Account (IRA) established in accordance with 26 USC 408
and the funds are paid within 7 days after the account is opened;
or (3) when the account is a Keogh Plan, if you forfeit at least
the interest earned on the withdrawn funds; or (41 for a time deposit
that 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 a certain grace period (if any).
STOP PAYMENT ORDERS. You may order us to stop payment on
any check or item payable from your Account. Your right to do so
may be limited. Your order is effective if we receive it soon enough
to give us a reasonable opportunity to act on it. The stop payment
order is effective for 6 months, but it lapses after 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
6 months if renewed during the effective time period. We require
you to give us the date, the amount, the number of the item, and
the name of the payee. If you give us incorrect information, we
are not responsible for failing to stop payment. If we accept a
stop payment order it does not mean that the item has not already
been paid or that we have a reasonable opportunity to act on the
order. You may not stop payment on a certified check or a cashier's
check. Also, you may not stop payment on any check covered by a
separate agreement, such as a check guaranty agreement. You may
not stop payment on an item after we have accepted it.
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 only one person. Only that person may write checks
on the Account or withdraw money. It does not matter who really
owns the money in the Account.
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. Joint Account Holders are treated
as joint tenants with right of survivorship, unless you state otherwise
on the Signature Card.
- (1)
Joint Tenants With Right of Survivorship. If
your Account is a joint account with right of survivorship,
and one of the joint Account Holders dies, that person's ownership
interest 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), and one of the joint Account Holders dies, that
person's ownership interest will pass to his or her estate.
- (3)
Community Property Account. If your Account is a community
property account, the money in your Account is the community
property of the named parties who are husband and wife. The
ownership of the Account during the lifetime and after the death
of a spouse is determined by state law and may be affected by
a will. (This type of account is applicable only in those states
recognizing community property law.)
Each joint Account Holder, without the consent of any other Account
Holder, may make any transaction allowed under the Agreement, including
the following: (1) withdraw all or any part of the money in the
Account; (21 pledge the Account as collateral to us for any obligation;
(31 endorse and deposit checks and other items payable to any joint
Account Holder; (4) give stop payment orders on any item, even if
the item was drawn by someone else; and (5) close the account, and
decide how to pay the money in the Account. Any joint Account Holder
may act for the other Account Holder(sl. We may accept orders and
instructions regarding the Account from any joint Account Holder.
If we believe that there may be a dispute between joint Account
Holders or if we receive inconsistent instructions, we may suspend
or close the Account (after giving any notice required by law),
we may require a court order to act, and we may 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 Agreement for all of your obligations. This includes liability
to us for overdrafts and account charges. Each joint Account Holder
is liable for all overdrafts and account charges, even if only one
Account Holder caused this to happen, knew about it, or received
a benefit from any overdraft or account charges. Also, we may use
our right of setoff against the Account. The right of setoff is
explained in the Agreement.
(B) Totten Trust Account. A Totten Trust Account is an informal
trust account, without a written trust agreement. The trustee is
the owner of the Account. The beneficiaries have no right to any
funds in the Account while the trustee is still living. As the owner
of the Account, the trustee may withdraw money from the Account.
Also, the trustee may change the beneficiary by notifying us in
writing. 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 are covered by the above
rules for joint accounts. If there is no surviving beneficiary when
the last trustee dies, state law will determine who owns the money
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, the Account Holder may withdraw money
from the Account. Also the Account Holder may change the P.O.D.
payee on the Account. When the Account Holder dies, the Account
is owned by the P.O.D. payees. If the P.O.D. Account is held by
more than one person, each Account Holder is covered by the above
rules for joint accounts. If there is no surviving P.O.D. payee
when the last Account Holder dies, state law will determine who
owns the money in the Account.
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. The trustees must give us
a copy of any trust agreement covering the Account if we ask for
it. We act only as a custodian of the trust funds. We are not required
to act as a trustee or to ask about the powers or duties of any
trustee. Upon our request, the trustee(s) will supply to us a copy
of any trust agreement covering the account.
(B)
Uniform Transfer to Minors. If you open the Account as a custodian
for a minor beneficiary under the state's Uniform Transfers to Minors
Act or Uniform Gifts to Minors Act, your rights and duties are governed
by the Act. You may not pledge the Account as collateral for any
loan to you. We will hold all deposits in the Account only for the
benefit of the minor.
(C)
Agency Account. An Agency Account is an account with money deposited
and withdrawn by an Agent. The owner of the funds choqses the Agent.
The Agent has the right to deposit and withdraw money, but does
not own the account. An Agency Account can be cancelled at any time
by notifying us in writing. An Agent may be used with one of the
other types of account.
(D)
Business Accounts. If the Account is not owned by a natural
person, the Account Holder must give us a form that shows who can
sign for the Account Holder. This applies to corporations, partnerships,
sole proprietorships, associations, and similar organizations.
(E)
Attorney Client Trust Subject to applicable law, an Attorney
Client Trust is an account set up by an attorney or law firm to
hold client or third party funds in trust, separate from the attorney's
or law firm's funds. Upon our request, the authorized signers for
an Attorney Client Trust will provide documentation required by
applicable state law and applicable bar association (or similar
entity) rules. 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 attorney or law firm as trustee(s). The
attorney, law firm, or any authorized individual on the account
agrees 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 third party with respect to the authority,
actions, or inaction taken by the trustee(s) or authorized individuals
in handling or dealing with the account. Additional account terms
are governed by a separate agreement.
(F) Real Estate Broker Client Trust Accounts A real estate
broker may open account(s) to hold client or third party funds in
trust apart from the broker's other funds. We act only as a custodian
of the trust funds. We are not required to act as a trustee or to
ask about the powers or duties of any broker as trustee. Upon our
request, the broker will give us any documents required by law and/or
real estate professional rules.
FINANCIAL INSTITUTION LIABILITY. If we do not properly complete
a transaction according to the Agreement, we are not liable for
losses or damages greater than the amount of the transaction, or
if money in your Account is affected by some legal process or other
claim. We are not liable for consequential damages (indirect losses
or injuries that result from an act). When we receive items from
you for withdrawal or deposit, we are acting 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.
If any deposited item is lost in the collection process, we may
reverse credit for the deposited item or charge your Account for
the item.
RIGHT OF SETOFF. We may use our right of setoff against any
or all of your accounts (except IRA, Keogh plan and Trust Accounts)
without notice, if allowed by law. This means that we may charge
your deposit accounts for any of your liabilities or debts to us.
If the Account is a joint account, we may set off against any and
all accounts of each Account Holder, even though only one joint
Account Holder owes us money.
DORMANT ACCOUNTS. Your Account is dormant if you have not
made a withdrawal from it or deposit to it for a long period of
time and we have been unable to reach you. If your Account is dormant,
we may, if allowed by law, charge a dormant account fee on your
Account. Your Account is abandoned if you have not made a deposit
or withdrawal and we have had no contact with you for a period of
years set by the state law. Funds in abandoned accounts will be
sent to a state agency, in accordance with state law. After the
funds have been sent to the state, we are not responsible for them.
If you choose to reclaim the funds, you may apply to the state agency.
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
each account statement and reporting any problems to us. Each statement
will be considered correct and we will not be responsible 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 altered
check or any check with a forged signature unless you notify us
within 60 calendar days after the statement and the altered or forged
item(s) are made available. We are also not liable for any later
items paid in good faith containing an unauthorized signature or
alteration by the same person unless you notify us within 30 calendar
days after the statement and the first altered or forged item were
made available. Except for transactions covered by the Electronic
Fund Transfer Act, you must also report any other account problem
within 60 calendar days. If you do not do this, you lose your right
to assert the problem against us. If you have asked us to hold your
Account statements, we may mail them to you if you have not claimed
them within 30 calendar days. We might not return the original checks
to you with your statement. If we keep the checks, it does not change
or reduce your responsibility to examine your statements, or change
the time limits for notifying us of any errors.
WHOLESALE WIRE AND ACH TRANSACTIONS. From time to time you
may be a party to an Automated Clearing House ("ACH")
entry or a wholesale (wire) funds transfer which may be credited
to your Account. The Uniform Commercial Code Article 4A governs
wholesale wire transfers as well as any commercial ACH credit entry
and any consumer ACH credit entry excluded from the Electronic Funds
Transfer Act. The Electronic Funds Transfer Agreement and Disclosure
provided to you (if applicable) reflects our policies relating to
the electronic funds transfers governed by the Electronic Funds
Transfer Act.
(A)
Provisional Payment. Credit given by us to you with respect
to an ACH credit or wholesale (wire) funds transfer entry is provisional
until wereceive final settlement for such entry through a Federal
Reserve BankIf we do not 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. We may change the
terms and conditions of the Agreement from time to time. We will
notify you of any changes to the Agreement, if required by law.
By using the Account after we notify you, you agree to all changes.
We will send notices to the most recent address shown on our records
for your Account. Notice to only one of you is required for a joint
account. (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. You are responsible
for notifying us of any change in your address or your name. We
are required to pay items drawn only on the listed Account name.
We are required to try to communicate with you only at the most
recent address you have given to us.
ACCOUNT TERMINATION. We or you may close your Account at
any time without reason. Before we close your Account, we will give
you notice required by law. If we close your Account, we will send
the balance on deposit to your most recent address shown on our
records. We will consider your Account closed when the account balance
reaches zero. 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. You may close your Account by notifying us in writing.
We are not responsible for payment of any check, withdrawal, or
other item once your Account is closed.
GOVERNING LAW. The Agreement is governed by all applicable
federal laws and regulations and laws and regulations of the state
of Minnesota in which we are located and any local clearinghouse
rules. You understand that we have to comply with these laws, regulations
and rules. If the Agreement is not consistent with any law, regulation
or rule, then the law, regulation or rule will govern.
FEES AND EXPENSES. If there is a legal action, or if there
is a dispute involving your Account, you agree to pay us our reasonable
attorneys' fees, legal expenses and costs, if allowed by law. This
includes those fees, expenses and costs on any appeal. You also
agree that we may deduct all of the fees, expenses and costs from
your Account, or we may bill you. We do not have to notify you before
we deduct those amounts from your Account.
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.
CREDIT
VERIFICATION. We may request and obtain one or more credit reports
and other information about you from one or more credit reporting
agencies or financial institutions so we can consider your Account
application, or review or collect your Account, or for any other
legitimate business purpose.
MISCELLANEOUS PROVISIONS. If you or your Account are involved
in any legal action, your use of the Account may be limited. You
agree not to use the Account in any illegal activity. We may comply
with any court order or other legal process that we receive. We
will not be liable to you if we do so. Our managers may listen to
your telephone conversations with us to make sure that you are treated
accurately, courteously and fairly. If you ask us to follow instructions
that we believe may expose us to claim, action, suit, expense, liability,
or damages, we may refuse to follow your instructions or may require
a bond or other protection. An example of the kind of protection
we may request would be your promise to defend us against such exposure
and to pay all of our legal fees and costs for the defense. 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 that any provision of the Agreement is invalid
or cannot be enforced, the rest of the Agreement will not be affected.
If allowed by law, the invalid or unenforceable provision will be
automatically changed so that it is enforceable or ~alid. If it
cannot be made valid and enforceable, it will be automatically deleted
from the Agreement. All other provisions of the Agreement will remain
valid and enforceable.
