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Deposit Account Agreement

Book 1 of 2

Effective August 15, 2012

Table of Contents

Our Agreement with You  2

Our Relationship with You. 2

Opening Your Account 2

Ownership of Accounts  2

Individual Accounts. 2

Joint Accounts. 2

Joint Tenancy. 2

Tenants In Common. 2

Accounts with a Named Beneficiary. 2

Documented Trust Accounts. 2

California Uniform Transfers to Minors Act 2

Coogan Trust Accounts for Minor's Services. 2{C}

Fiduciary and Agency Accounts. 2

Business Accounts. 2

Attorney-Client Trust Accounts. 2

Deposits  2

Funds Availability  2

Your Ability to Withdraw Funds. 2

Longer Delays May Apply. 2

Special Rules for New Accounts. 2

Holds on Other Funds. 2

Check Cashing. 2

Other Account 2

Interest on Deposits  2

Interest Rates. 2

Interest Calculations. 2

Withdrawals  2

Authorized Signers. 2

Requirements. 2

Payment of Checks. 2

Limitations. 2

Advance Notice. 2

Presentment/Posting. 2

Account Limitations  2

Account Conversion. 2

Account Not Activated. 2

Limit on Number of Accounts. 2

Deposits. 2

Withdrawals. 2

Money Market and Savings Accounts. 2

Restricted Transactions. 2

Time Deposits. 2

Fees  2

Electronic Funds Transactions  2

Business Days. 2

Business and Other Non-Personal Accounts. 2

Change in Terms/Termination of Service. 2

Confidentiality. 2

Electronic Check Conversion. 2

International ACH Transactions. 2

ATM and Night Depository Safety. 2

Record of Your Transaction. 2

Account Statements. 2

Documentation of Transfers at ATM and POS Terminals. 2

Preauthorized Credits. 2

Preauthorized Payments. 2

Preauthorized/Automatic (ACH) & Telephone Transfers. 2

How to Stop Preauthorized Transactions from Your Account 2

How to Revoke Preauthorized Transactions from Your Account 2

Our Liability for Failing to Make Transfers. 2

Your Liability for Unauthorized Electronic Fund Transfers. 2

How to Report Unauthorized Transactions and Resolve Errors or Questions  2

Electronic Banking Card Agreement 2

ATM Card and PIN Security. 2

Non-Activated and Dormant Cards. 2

Fraud Monitoring. 2

Transaction Types and Limitations. 2

ATM Services. 2

Making Deposits at Fremont Bank ATMs . 2

Fees for ATM Transactions . 2

Limitations on Frequency and Amounts of Transfers. 2

Telephone Transfer Service. 2

Limitations on ATM Withdrawals. 2

Point-of-Sale ("POS") Transactions. 2

Purchase Transactions through VISA® Network . 2

Foreign Debit Card Transactions . 2

Additional Terms and Conditions  2

Adjustments. 2

Amendments/Changes in Account Terms . 2

Assignment of Account Ownership Interest 2

Automated Processing. 2

Business Days. 2

California Law.. 2

Cash Transaction Reporting. 2

Changes in Account Ownership, Address and Authorized Signers   2

Checks. 2

Checks Bearing Notations. 2

Check Imaging. 2

Check Processing Cutoff Hour 2

Checks Lost or Stolen. 2

Collection Items. 2

Compliance. 2

Conflicting Demands/Disputes. 2

Death or Adjudication of Incompetence. 2

Demand Drafts. 2

Deposit Insurance. 2

Dormant Accounts. 2

Endorsement Standards. 2

Facsimile Signatures. 2

Fax Instructions/Voice Mail/E-Mail 2

Full Satisfaction Checks. 2

Interbranch Services. 2

Judicial Reference. 2

Legal Process. 2

Limitation on Time to Sue. 2

Multiple Signatures. 2

Night Depository. 2

Non-Customer Transactions. 2

Notification. 2

Other Agreements. 2

Overdrafts and Non-sufficient Funds. 2

Overdraft Protection Plans. 2

Linked Account 2

Overdraft Line of Credit 2

Limits on Overdraft Protection. 2

Termination of Overdraft Protection. 2

Overdraft Privilege. 2

Payment of Photocopies. 2

Postdated Checks. 2

Power-of-Attorney. 2

Presentation of Certificate. 2

Protecting Your Account 2

Remotely Created Checks. 2

Returned Items/Transactions. 2

Right of Setoff 2

Safe Deposit Box Rental 2

Rental and Fees. 2

Unclaimed Property. 2

Notices. 2

Access to Your Safe Deposit Box. 2

Procedures for Admission to Box. 2

Deposit Box. 2

Lost Keys. 2

Other Important Information. 2

In Case of Death. 2

Power of Attorney. 2

Cancellation of Rental Agreement 2

Severability. 2

Signature Cards. 2

Signature Guarantee. 2

Stale-Dated Checks. 2

Statements, Notices, and Checks. 2

Stop Payment Requests. 2

Online Bill Payment (Checks Only) 2

Subaccounting. 2

Substitute Checks and Your Rights. 2

What Is a Substitute Check?. 2

What Are My Rights Regarding Substitute Checks?. 2

How Do I Make a Claim for a Refund?. 2

Your claim must include -- 2

Telephone and Electronic Communication Monitoring/Recording  2

Telephone Instructions. 2

Termination/Closing Your Account 2

Transfers/Assignments. 2

Unauthorized Check Transactions. 2

Waivers. 2

Wire and Other Funds Transfers  2

Processing Hours. 2

Payment Orders. 2

Rejection of Payment Orders. 2

Payment Order Accuracy. 2

ACH Provisional Credits. 2

Notices. 2

Funds Transfer System Rules. 2

Transfers to Your Account on Behalf of Third Parties. 2

Cancellation and Amendment of Funds Transfers. 2

Erroneous Funds Transfer 2

Unauthorized Funds Transfer 2

Notice of Erroneous or Unauthorized Funds Transfer 2

Circumstances Excusing Action or Omission. 2

Limitation of Liability. 2

Security Procedure. 2

Funding. 2

Data Retention. 2

Withholding of Income Tax  2

How to Obtain a Taxpayer Identification Number (TIN) 2

What Number to Give Us. 2

Payees Exempt from Backup Withholding. 2

Questions or Comments  2

Our Agreement with You

Welcome to Fremont Bank.  We offer a variety of deposit products designed to meet your needs.  We want to help you choose the products that are right for you.  That is why we've produced this Agreement.  It tells you about the terms and conditions that apply to the account you've selected.

This booklet, your signature card, the Rate Sheet provided for interest earning accounts, and the other documents which you receive when you open your account, represent our agreement with you and contain important information about your account.  Please read them carefully.  By signing a signature card, requesting an account, or maintaining an account, you acknowledge that you have reviewed, understand and agree to be governed by this agreement.

In this booklet, the words "you" and "your" refer to the owner(s) and authorized signer(s) of an account; "we", "us", "our", and "Bank" refer to Fremont Bank.

Our Relationship with You

Unless otherwise expressly agreed in writing, our relationship with you shall be that of debtor and creditor.  No fiduciary, quasi-fiduciary, or other special relationship exists between you and us.

Maintaining a good relationship with our customers is important to us.  Please contact us if you have a problem with any account or cash management service.  If we are unable to resolve a dispute for any reason, this Deposit Account Agreement contains the terms of a dispute resolution procedure (See Judicial Reference).

We owe you a duty of ordinary care than otherwise would apply by law without such policies or procedures.  Any internal policies or procedures that we may maintain in excess of reasonable commercial standards and general banking usage are solely for our own benefit and shall not impose a higher standard of care than otherwise would apply in their absence.

Opening Your Account

To help the government fight the funding of terrorism and money laundering activities, U.S. Federal law requires financial institutions to obtain, verify, and record information that identifies each person (individuals and businesses) who opens an account.

What this means for you: 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 for your driver's license or other identifying documents.  You will need at least two acceptable forms of current identification.  With limited exceptions, the Bank requires an appropriate taxpayer identification number (TIN) to open an account.

Ownership of Accounts

This section describes some of the ways that title can be held to an account.  You must clearly indicate on your signature card or application the exact way you want your account to be owned and held.  You may designate another person to write checks on the account by granting him/her a power of attorney on a form acceptable to us.  You may wish to consult with an attorney and/or tax advisor before deciding which form of ownership is best for you.  We may rely solely on our account records to determine the ownership of your account.

Individual Accounts

If you open an account in your name alone (one person), you have complete ownership interest in the account.

Joint Accounts

If your account is a joint account, each joint owner may withdraw, by any means the Bank makes available, any or all of the funds on deposit, close the account or stop payment on any check drawn on the account.  Each joint owner guarantees the signatures of the other joint owner(s) and authorizes the other(s) to endorse checks for deposit if they are payable to any of the joint owners.  Each joint owner expressly agrees that the Bank can enforce liability for overdrafts in the joint account against any joint owner individually, whether or not the owner participates in the transaction or benefits from its proceeds.  Notice provided by the Bank to any one joint owner is effective as notice to all joint owners.

Joint Tenancy

If you open an account with others in "joint tenancy," each owner will have an equal ownership interest in the account during his or her lifetime.  If one joint tenant dies, ownership of the account will automatically pass to the surviving joint tenant(s).  Unless you designate a particular form of vesting on your signature card or application, we will assume that personal accounts opened by two or more natural persons are intended to be joint tenancy accounts with right of survivorship.

Tenants In Common

If your account is opened with others as "tenants in common," each owner will have some interest in the account, but not necessarily an equal interest.  When an owner dies, his or her share does not pass automatically to the surviving owner(s).  Instead, it goes to the estate or other legal successor of the deceased owner.  Upon the death of any owner, we may continue to follow the instructions of any surviving owner or the personal representative of the deceased owner.  If there is any uncertainty or a dispute over the account or its funds, however, we may freeze funds in the account until the surviving owner(s) and the heir(s) or legal representative of the deceased owner agree on the account's disposition.

Accounts with a Named Beneficiary

(Informal Trust, Totten Trust, In Trust For, As Trustee For, or Pay(able)-on-Death Accounts)

If you open an account "in trust" or "as trustee" for someone else (e.g., your child) and there is no trust document, the account will pass to the beneficiary upon the death of the last surviving account owner.  If there is more than one beneficiary, each will receive an equal share of the funds unless you have given us other specific written instructions.  During your lifetime, you may exercise full control over the account and may make deposits to and withdrawals from the account.  The death of the beneficiary, prior to your death, revokes any rights the deceased beneficiary has in the account.  You can arrange to change the beneficiary during your lifetime by contacting your branch of account.  Tax information is reported to the Internal Revenue Service using the tax identification number of an individual owner or trustee of the account.

Documented Trust Accounts

If you establish an account in connection with a written trust, you certify and declare under penalty of perjury under the laws of the State of California that: (a) you are the only current trustee(s) of the trust; (b) you are authorized to enter into this and other agreements with us in connection with the trust; (c) no other person's authorization or court order is required for the actions you take and/or the instructions you give in connection with the account; (d) the correct name of the trust is reflected on the signature card or application for the account; and (e) the trust has not been revoked, modified, or amended in any manner which would cause these representations to be incorrect. You agree to provide us with reasonable advance notice of any amendments made to the trust, any change in trustees or beneficiaries, and any other event which might affect any right, duty or authorization of any person (including us) with respect to the trust account.

We will not be required to know, understand, interpret, or enforce the terms of any trust document which may be provided to us.  We may require you to sign a separate trust certification form in order to open or maintain an account.

California Uniform Transfers to Minors Act

(CUTMA)  Accounts

This account may be opened only by a person named as custodian of money transferred to a minor.  The account is controlled by the custodian, but is owned by the minor.  Each CUTMA account may be opened for only one minor, and only one person may be named as the custodian.  However, successor custodians can be named.  The account must contain words such as: (Name of Custodian) as custodian for (Name of Minor) under the California Uniform Transfers to Minors Act ("CUTMA").

The custodian is responsible and must deliver the property to the minor or the minor's estate upon the earlier of the minor reaching the age of 18 years, or an age stated on the signature card or application, but in no event later than 25 years of age.  To specify a delayed time for delivery by the custodian of the account balance, the account title should contain words such as: (Name of Custodian) as custodian for (Name of Minor) until age (Age of Delivery to Minor) under the California Uniform Transfers to Minors Act ("CUTMA").

Please consult your legal advisor to determine what delayed time for delivery by the custodian of the account balance is allowable under current state law.

Tax information is reported to the Internal Revenue Service using the tax identification number of the minor.  These accounts are neither eligible for ATM or VISA® Debit Card Access, nor for online banking services.

Coogan Trust Accounts for Minor's Services

California Law requires that at least 15% of an unemancipated minor's earnings from contracts for specified services (such as acting) be placed in a blocked trust account until the minor reaches the age of 18.  Prior to opening the account, the Bank may require a certified copy of the court order, a completed Trustee Statement, and/or the agency agreement.

Fiduciary and Agency Accounts

Accounts may be opened under court authorization by executors, administrators, guardians, or conservators; by trustees under written trust agreements; under operation of law (e.g. Real Estate Broker, Attorney Client, Insurance, and Travel Agent Trust Accounts); or by agents under agency agreements or powers of attorney.  Prior to opening the account, the Bank may require a certified copy of the court order, Certification of the Trust Agreement or the agency agreement.

Business Accounts

Although most of our accounts are available to businesses (e.g., sole proprietors, corporations, partnerships, and limited liability companies), some accounts and services are available only to consumers and certain not-for-profit companies.  Other accounts may be inappropriate for companies with a high transaction volume and related cash management services.  If you are a business, you agree to provide us with documentation regarding your legal status, your use of a fictitious business name, evidence that your business remains in good standing, and current financial statements upon request.

If we request documents and they are not provided to us within a reasonable time, the Bank reserves the right to close your account(s) or engage an independent search firm to obtain the documents.  If we engage a search firm, we may charge your primary business account for an investigation fee plus all fees paid by the Bank to the search firm.  Upon your request, we will provide copies of all documents obtained after payment has been made.

If you deposit funds that belong to others ("beneficial owners") in an analyzed account, you represent to us that: (a) you are authorized by the beneficial owners to benefit from the use of any associated Earnings Credit, and (b) your use of the Earnings Credit will not violate any contract, law or regulation.  You also agree to indemnify and hold us harmless from and against any and all claims, actions, proceedings, losses, costs (including attorney fees and other charges), liabilities and/or damages that arise from your use of the Service or the manner in which you compensate or charge beneficial owners for your use of our services.  This provision shall survive the termination of this Agreement.

Attorney-Client Trust Accounts

(Interest on Lawyers Trust, "IOLTA")

Attorneys may establish unsegregated client trust accounts, as required by law, for the purpose of receiving and disbursing client funds that are nominal in amount or on deposit for a short time.  Interest on these "IOLTA" accounts is paid to the California State Bar.

Deposits

We may accept items payable to any of you for deposit to your account from any source without questioning the authority of the person making the deposit.  We also may give cash back to any authorized account signer(s) or agent(s) in connection with items payable to any one or more of you, whether or not the items have been endorsed by you.

We may endorse and/or collect items deposited to your account without your endorsement, but may require your personal endorsement prior to accepting an item for deposit.  If you deposit an item which bears the endorsements of more than one person or persons who are not known to us, we may refuse the item, require all endorsers to be present, or require that the endorsements to be guaranteed by another financial institution acceptable to us before we accept the item.

We may refuse to accept an item for deposit or may accept an item on a collection basis only.  Any item that we accept for deposit or encashment is subject to later verification and final payment.  Cash deposits also are subject to later verification.  We assume no responsibility beyond the exercise of ordinary care.  We are not responsible for the negligence of other banks during the collection process.  We may deduct funds from your account if an item is lost, stolen, or destroyed in the collection process, or if it is returned to us unpaid, even if you have already used the funds.  We may require you to obtain a replacement of the original item if an item is lost, stolen, or destroyed in the collection process.

If you make a deposit or payment, which is not accompanied by instructions indicating how or where it is to be credited, we may apply it at our discretion to any loan or deposit account you maintain with us.

If you make a deposit or payment to us by mail, we will not provide a written receipt of such funds automatically.  Should you wish to confirm the deposit or payment, we recommend you do so by calling our Customer Service Center telephone number to verify.

Please be advised that deposit receipts do not necessarily indicate the correct balance in the account or the amount being deposited.

Funds Availability

Your Ability to Withdraw Funds

Our policy is to make funds from your cash and check deposits available to you on the first business day after the day we receive your deposit.  Electronic direct deposits and incoming wire transfers will be available on the day we receive the deposit.  Night depository/drop deposits made after 9 a.m. (Pacific Time) will be considered received on the following business day.  Once the funds are available, you can withdraw them in cash, and we will use the funds to pay checks you have written and other items presented for payment, and fees and expenses that you have incurred.

For determining the availability of your deposits, every day is a business day except Saturdays, Sundays, and federal holidays.  If you make a deposit at a branch before the posted cutoff time of that branch, or at an Automated Teller Machine ("ATM") by 7:00 p.m. (Pacific Time), on a business day that we are open, we will consider that day to be the day of your deposit.  However, if you make a deposit after the posted cutoff time, or on a day we are not open, we will consider that the deposit was made on the next business day we are open.

Longer Delays May Apply

In some cases, we will not make all of the funds that you deposit by check available to you on the first business day after the day of your deposit.  Depending on the type of check that you deposit, funds may not be available until the second business day after the day of your deposit.  However, the first $200 of your deposit will be available on the first business day.

If we are not going to make all of the funds from your deposit available on the first business day, and you make the deposit in person to an employee of the Bank, we will so notify you at the time you make your deposit.  However, if your deposit is not made directly to one of our employees, or if the Bank makes its determination regarding availability afterwards, then we will mail you the notice no later than the business day after we receive your deposit.  We will also tell you when the funds will be available.  However, if you need the funds from a deposit right away, you should ask us when the funds will be available.

In addition, funds you deposit by check may be delayed for a longer period under any of the following circumstances:

  •  We believe a check you deposit will not be paid.
  •  You deposit checks totaling more than $5,000 on any one day.
  •  You redeposit a check that has been returned unpaid.
  •  You have overdrawn your account repeatedly in the last six months.
  •   There is an emergency, such as failure of communications or computer equipment.

We will attempt to notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available.  They will generally be available no later than the seventh business day after the day of your deposit.

Special Rules for New Accounts

If you are a new customer, the following special rules may apply during the first 30 days your account is open.

Funds from electronic direct deposits to your account will be available on the day we receive the deposit.  Funds from deposits of cash, wire transfers, and the first $5,000 of a day's total deposits of cashier's, certified, teller's, traveler's, and federal, state and local government checks will be available on the first business day after the day of your deposit if the deposit meets certain conditions.  For example, the checks must be payable to you.  The excess over $5,000 will be available on the ninth business day after the day of your deposit.  If your deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, the first $5,000 may not be available until the second business day after the day of your deposit.

Funds from all other check deposits will be available on the ninth business day after the day of your deposit unless your deposit is held for a longer period for a reason noted in the "Longer Delays May Apply" section.

Holds on Other Funds

Check Cashing

If we cash a check for you that is drawn on another bank, we may withhold the availability of a corresponding amount of funds that are already in your account.  Those funds will be available at the time funds from the check we cashed would have been available if you had deposited it.

Other Account

If we accept for deposit a check that is drawn on another bank, we may make funds from the deposit available for withdrawal immediately but delay your ability to withdraw a corresponding amount of funds that you have on deposit in another account with us.  The funds in the other account would then not be available for withdrawal until the time periods that are described elsewhere in this disclosure for the type of check that you deposited.

Interest on Deposits

Interest Rates

Interest rates paid on our accounts are determined by the Bank, based on market conditions and other business factors.  Except for fixed rate certificates of deposit (which earn the contracted interest rate through maturity), interest rates on deposits can change as often as daily, without prior notice to you.  For current rates, you may call or visit one of our branches, or call our Customer Service Center between 8:00 a.m. and 7:00 p.m. Pacific Time, Monday through Friday (except for holidays) and Saturdays between 9:00 a.m. and 2:00 p.m. at (510) 723-5778 or, if out of the local area, (800) 359-BANK (2265).

The Annual Percentage Yield ("APY") stated for time deposits which earn compounded interest (but which permit interest to be withdrawn prior to maturity) assumes that interest remains on deposit until maturity.  A withdrawal of interest will reduce earnings.

Interest Calculations

Interest is calculated on an actual/365 day basis except for certain public funds which may be calculated on an actual/360 day basis.  Interest begins to accrue no later than the business day we receive provisional credit for the deposit of non-cash items (for example, checks).

We use the daily balance method to calculate the interest on all interest bearing accounts.  This method applies a daily periodic rate to the principal balance in the account each day.

Withdrawals

Authorized Signers

Your signature card (or electronic account opening record, or other Bank source document) identifies who is authorized to make withdrawals, write checks, transfer funds, stop payments, obtain ancillary services, and otherwise give us instructions regarding your account.  Although your card may indicate that more than one signature is required on checks and for the withdrawal or transfer of funds, that notation is principally for your own purposes.  We do not assume a duty to enforce multiple signature requirements.  As such, we assume no duty to confirm that two or more (or any combination) of authorized signers have approved any transaction.  Although we may attempt on occasion to enforce the multiple signature requirement shown on your card (e.g., by refusing to permit a transaction by less than the stated number of authorized signers), we may cease doing so at any time and without prior notice to you.  We may pay any check which bears a signature or endorsement (including a facsimile signature) resembling an authorized signature found on your account signature card or other Bank source document upon which your signature appears.

We may honor checks drawn against your account by any authorized signer, even if the checks are made payable to them, to cash, or for deposit to their personal accounts.  We have no duty to investigate or question withdrawals or the application of funds.  You agree that signatures by your authorized agents (e.g., persons acting under a power of attorney) are valid, even if the principal/agent relationship is not indicated on the check or instruction.

You agree to reimburse the Bank for any loss or expense we incur because you fail to endorse an item exactly as it is drawn.

Requirements

Checks which bear signatures that (in our opinion) do not satisfactorily compare with specimen signatures on file with us, may be returned unpaid.  All checks written on your account must be drawn in U.S. Dollars.

You agree to notify us if you will be using facsimile signatures for your accounts.  The Bank will not be liable to you for refusing to honor checks or other written instructions if the Bank believes, in good faith, that any signature on such checks or instructions is not authorized, or if you have materially altered your signature without expressly notifying the Bank.

Payment of Checks

You agree that if you utilize an automatic check writing service which operates through your personal computer, employ the use of a facsimile signature or do not otherwise provide your personal signature on a check, you agree that you shall have the sole responsibility for maintaining the security of any such computer, stamp or device or of any facsimile signature that reasonably resembles the signature you use, whether or not you are negligent.  You also agree that the treatment of each check presented against your account through the use of such a service and our rights and obligations with regard to such check will be the same as if the check was signed or initiated personally by you.  You further agree to indemnify and hold us harmless from and against any and all loss, cost, damage, liability or expense (including attorney's fees) we may suffer or incur as a result of the unlawful use, unauthorized use or misuse by any person of any such device or of any facsimile signature that reasonably resembles the signature you use.

Your account may be debited on the day a check is presented by electronic or other means, or at an earlier time based on notification received by us that such check drawn on your account has been deposited for collection at the Bank or at another financial institution.  A determination of your account balance for purposes of making a decision to dishonor a check for insufficient available funds may be made at any time between the receipt of such presentment or notice and the time of return of the check, and no more than one such determination need be made.  If the Bank dishonors any check, we shall treat any subsequent re-presentment the same as the original presentment in all respects (including imposing an additional insufficient funds or returned item fee as applicable), and shall have no duty to take any steps to prevent re-presentments of such checks.

Limitations

We may refuse or limit withdrawals from any office which is not your branch of account.  We may (but are not obligated to) require suitable identification.  At our discretion, we may require all of your signatures for the withdrawal of funds and/or the closing of an account.

Certain accounts are subject to transaction limitations and penalties for early withdrawal (See Appendix A: Account Terms and Conditions, Schedule of Fees and Charges).  We may refuse to honor any withdrawal or order if funds on deposit are insufficient or unavailable to cover the request or order, or there is a dispute or question as to the ownership of account funds.

We may impose a charge on non-customers who cash a check at one of our offices.  We also may require non-customers to present suitable identification, including a fingerprint or thumbprint, in connection with the transaction.

Advance Notice

We reserve the right to require 7 days written advance notice to withdraw or transfer funds from any account.  In addition, the Bank may require notice of any withdrawal of $5,000.00 or more in cash by no later than 11:00 a.m. four business days preceding the day of the withdrawal.

Presentment/Posting

Checks and other transactions drawn against your account may be subtracted from your daily balance on the date they are presented to us electronically or otherwise, even though final acceptance may not occur until later.  We may charge your account on the day that a check or other transaction is presented (or returned) to us directly or electronically for payment.  We may also charge your account or place a hold on funds at an earlier time if we receive notice that an item or transaction has been deposited for collection in another institution or is being processed against your account by a merchant (e.g., at a point-of-sale terminal).

Please note: Some merchants may obtain authorizations in advance for point-of-sale transactions in an amount greater than the final transaction amount.  You agree that we may place a hold on sufficient funds to cover the amount of the authorized transaction, pending its final settlement through the system, even if that amount exceeds the actual amount of the transaction.  This could affect the balance available to cover other transactions.

Transactions may not be processed in the order in which they occurred.  The order in which transactions are processed can affect the total amount of overdraft fees assessed.  We may post check items and other transactions (e.g., ATM and Point-of-Sale "POS" transactions) presented against your account in any order we choose, unless the laws governing your account either requires or prohibits a particular order.  We currently utilize the following payment process:  First, we post items cashed at Fremont Bank or its affiliates, including items used to purchase cashier's checks, travelers' cheques, gift cards etc., then checks in which final payment has occurred (finally paid), then we pay debit card transactions, then we process other debit items, including among others, wire transfers and change orders, then stop payment and safe deposit box fees, preauthorized, telephone, automatic or in person transfers, then ACH debits.  If available funds remain after processing these transactions, we pay checks from lowest check number to the highest check number.  We may change the order of posting check items and other transactions at any time.  If we do so, we will provide you with notice to the extent and in the manner required by applicable law.

Account Limitations

Account Conversion

We may convert your account to another type of account when we consider it appropriate to do so.  Reasons we may convert your account include, but are not limited to, excessive transactions on a money market or savings account, excessive activity in a non-analyzed business account or if you use your personal account as a business account.  If we convert your account, we will send you information about your new account type.

Account Not Activated

If you open an account without the minimum opening deposit, and do not make a deposit within 30 days of account opening, the Bank may, in its sole discretion, close the account without notice to you.

Limit on Number of Accounts

The Bank reserves the right to limit each account type to one per account holder or per household.  The term "household" refers to all persons occupying an individual housing unit, whether a single person or two or more unrelated persons.

Deposits

We may refuse to accept a deposit or an addition to an account, limit its size, or return all or part of it to you.  We reserve the right to limit the amount of funds that may be maintained in an account.

Withdrawals

In addition to the limitations set forth herein, cash withdrawals may be limited due to the limited amount of currency available at a particular office.  We assume no responsibility to provide personal protection for customers who elect to carry large sums of money off our premises.

Money Market and Savings Accounts

Transactions involving these accounts are limited by law.  You may only make up to six (6) combined withdrawals and/or transfers per month or statement period by means of a preauthorized or automatic transfer (e.g., automatic payments to an insurance company), draft, telephone or online transfers, debit card, or check (for accounts with check privileges).  Transfers to other Fremont Bank accounts are counted as part of the six (6) transaction limit.

If you exceed these limitations, we may refuse to honor the excessive transactions, remove your transfer privileges, close the account without prior notice, convert it to another type of account, remove the interest earning capability, and/or impose a fee for exceeding the limits (See Appendix A: Account Terms and Conditions, Schedule of Fees and Charges).  Note: We count checks for purposes of the transaction limitation as of the date we post them to your account (not as of the date you write them).  As such, a check you write during one month may not be counted until a subsequent monthly period.

The transaction limitations described above do not apply to withdrawals that you make in person, by mail, by non-bank messenger, or at an ATM.

Restricted Transactions

In accordance with the requirements of the Unlawful Internet Gambling Enforcement Act of 2006 and Regulation GG, this notice is to inform you that restricted transactions are prohibited from being processed through your account or account relationship with our institution.  Restricted transactions are transactions in which a person accepts credit, funds, instruments or other proceeds from another person in connection with unlawful Internet gambling.

Time Deposits

Unless our written agreement with you says otherwise, you do not have a right to make partial withdrawals from, or additional deposits to, an existing time deposit until maturity.  For certificates of deposit with unique terms (period), auto renewal is not available.  See Appendix A: Account Terms and Conditions, Schedule of Fees and Charges regarding penalties imposed on early withdrawals.

Fees

Our SCHEDULE OF FEES, CHARGES, AND SPECIFIC ACCOUNT TERMS AND CONDITIONS (Appendix A: Account Terms and Conditions, Schedule of Fees and Charges), together with the Rate Sheet provided for interest earning accounts, describes the most frequently encountered terms, conditions, fees, and charges associated with our accounts and services.  Some services are negotiated separately and may be subject to other written agreements with us.  Information on fees for services not covered by the SCHEDULE OF FEES, CHARGES, and SPECIFIC ACCOUNT TERMS AND CONDITIONS is available upon request.  Certain fees may also change with or without specific notice to you.

You agree to pay the fees and charges associated with your account.  Fees and charges are normally deducted automatically from your account either as incurred or on the last day of the statement period.

For current rate information, or general accounts and services information, please request a rate sheet and information from one of our branches; or obtain rate and account information from our Customer Service Center at (510) 723- 5778 or (800) 359- BANK (2265) between the hours of 8:00 a.m. and 7:00 p.m. (Pacific Time), Monday through Friday (except holidays) and Saturdays from 9:00 a.m. to 2:00 p.m. Interest rates and Annual Percentage Yields are subject to change.  At our discretion, we may change interest rates from time to time.

Electronic Funds Transactions

The following terms apply to electronic funds transactions governed by the Electronic Funds Transfer Act (e.g., consumer Automated Teller Machine "ATM", Point-of-Sale "POS" and Automated Clearinghouse "ACH" transactions).  This section also applies to ATM and debit cards issued for business and other non-personal accounts.

Business Days

For the purpose of these Electronic Funds Transactions disclosures, our business days are Monday through Friday, excluding holidays.

Business and Other Non-Personal Accounts

The error resolution and liability provisions of this Electronic Funds Transfer section as well as those on the back of periodic statements, do not apply to business or other non-personal accounts.  The owners of those accounts must notify us immediately if they discover any unauthorized transactions or errors, and must send us a written notice of the problem within a reasonable time (not to exceed 14 days from the date of discovery or their receipt of the first statement or notice reflecting the problem, whichever occurs first).  Under no circumstances will we be liable for any special or consequential damages involving such accounts.  The owners of such accounts assume sole responsibility for any unauthorized use of the account's cards and/or PIN, and shall indemnify, defend and hold the Bank harmless from all claims, actions, proceedings, losses and damages related to or arising out of any unauthorized transactions.  Unless we reasonably determine that any of you were grossly negligent or fraudulent in the handling of your Visa® Business Debit Card or account, you will not be liable for unauthorized Visa® Debit Card activity if you notify us regarding the unauthorized activity within 60 calendar days after we send or make available the first statement showing an unauthorized Visa® Business Debit Card transaction.  "Unauthorized activity" does not include any transaction by a business co-owner, a cardholder or person authorized by a cardholder, or other person with an interest in or authority to transact business on the account, or any transaction by a cardholder that exceeds the authority given by you.

Change in Terms/Termination of Service

We may add to, delete or change the terms or terminate your use of any one or all electronic fund transfer services at any time, with or without cause, by providing notice to you.  However, we may immediately terminate your electronic funds transfer service, without notice, if:

  •  Any of you breach this or any other agreement with us;
  •  We have reason to believe that there has been or may be an unauthorized use of your account;
  •  There are conflicting claims to the funds in your account;
  •  Any of you request that we do so; or
  •  Your account has been overdrawn.

Card limits are discretionary and may change without notice.

Confidentiality

We may disclose information to third parties about your account and transactions you make: where it is necessary or helpful for completing a transaction; in order to verify the existence and condition of your account for a third party, such as a credit bureau; in order to comply with government agency or court orders; as permitted by law; and with your consent.

Electronic Check Conversion

You may authorize a merchant or other payee to make a one-time electronic payment from your checking account using the information from your check to:

  •   Pay for purchases
  •  Pay bills

Should you dispute a portion of the dollar amount deducted from your account, the Bank must return or reject the entire amount of the transaction as received.  For any other error resolution refer to the merchant/payee.

International ACH Transactions

An International ACH Transaction (IAT) is an Automatic Clearing House (ACH) entry that is part of a payment or deposit transaction involving a bank that is not located in the territorial jurisdiction of the United States.

All banks that receive ACH transactions are required to meet Office of Foreign Assets Control (OFAC) compliance obligations when handling IAT entries.

Due to the requirements of OFAC, the settlement of an IAT entry may be delayed or suspended pending our review of the IAT entry, and may be terminated under applicable OFAC rules.  You agree that any delay described in the foregoing provisions of this paragraph is a permissible delay under the terms of laws and regulations applicable to the availability of funds held in deposit accounts.  In the event an IAT entry is delayed or terminated, we will provide you with such notice as may be required by the NACHA Rules, OFAC Rules, or other applicable laws and regulations.

ATM and Night Depository Safety

ATMs and night depositories are provided for your convenience.  Please be very cautious when you are using any ATM or night depository.  Be alert to your surroundings and avoid using an ATM or night depository when anyone or anything suspicious is in the vicinity.  Have your transaction ready and complete your transaction promptly and leave the area.  Do not display money taken from the ATM. Put it away and verify the amount later.  Vary the time and route you use when using an ATM or making merchant deposits in a night depository to avoid establishing a pattern.  When using a night depository, make sure that all of the items you place in the night depository unit pass all the way into the unit so they cannot be removed from the outside.  If possible, have someone you trust accompany you.  If you must use the ATM or night depository at night, make certain the area around the machine is well lighted and that no one is lingering in the darkness.  If you are using a drive up ATM or night depository, lock your car doors.  If you see anything that should worry you around an ATM or night depository, PLEASE, DO NOT USE IT.  Report all crimes to the ATM owner or operator and local law enforcement officials immediately.  We cannot guarantee your safety at an ATM or night depository.  We are not required to maintain guards or cameras at night depositories or ATMs.

Record of Your Transaction

Account Statements

A monthly account statement will be sent or made available for checking and money market accounts, and for statement savings accounts, unless there are no electronic transactions in a particular month.  In any case, you will get the statement at least quarterly.

Documentation of Transfers at ATM and POS Terminals

You can get a receipt at the time you make any transfer to or from your account using an ATM or POS terminal.  You should retain your transaction records and receipts so that you can compare them with your deposit account statement and they may serve as proof of purchase for warranty needs.

Preauthorized Credits

If you have arranged to have direct deposits made to your account at least once every 60 days from the same person or company, you can call us at (510) 723-5778 or (800) 359-BANK (2265) (from out of the local area) to find out whether or not the deposit has been made.  Please be aware that the originator of a preauthorized credit may have the right to reverse the credit.

Preauthorized Payments

If you have arranged in advance to make regular payments out of your account and they may vary in amount, the person or entity initiating the transaction must tell you at least ten (10) days before each payment when it will be made and how much it will be.  You may choose instead to get this notice only when the payment would differ by more than a certain amount from the previous payment or when the amount would fall outside certain limits that you set with the person or entity initiating the transaction.

Preauthorized/Automatic (ACH) & Telephone Transfers

This section also applies to preauthorized and automatic transactions governed by the Electronic Fund Transfer Act.  This includes preauthorized electronic funds transfers to or from a consumer account, including preauthorized electronic funds transactions made to your account from a third party (e.g., Social Security, a pension fund, or your employer) or from your account to a third party (e.g., recurring mortgage or insurance payments).  This agreement does not cover: (a) transactions initiated by check, draft or similar paper instruments that are converted to electronic Automated Clearing House ("ACH") transactions, (b) transactions received by a business or trust account, (c) individual transactions we initiate under an agreement with you, but without your specific request (e.g., automatic savings and automatic loan payments to us from your account), or (d) transfers initiated by telephone.

Please note: If recurring or other electronic payments are made into your account, the payments may be affected by a change in account status or transfer (e.g., to another office).  If you plan to transfer your account or change its status, please speak with us in advance about the impact the change may have on your electronic funds transfer services.

How to Stop Preauthorized Transactions from Your Account

If you have arranged in advance to make regular payments out of your account, you can stop any of these payments by calling us at (510) 723-5778 or (800) 359-BANK (2265) or writing to us at:  Fremont Bank, PO Box 5101, Fremont, CA 94537-5101 Attn: Customer Service Center MS 2502-SA.

We must receive your request at least three (3) business days before the payment is scheduled to be made.

If you fail to give us your request at least three (3) business days prior to a transaction, we may attempt, at our sole discretion, to stop the payment.  We assume no responsibility for our failure or refusal to do so, however, even if we accept the request for processing.

If you call, we may also require you to put your request in writing and get it to us within 14 days after you call; otherwise, the oral request may be disregarded 14 days after it has been made.  Your request should specify the exact amount (dollars and cents) of the transfer you want to stop, the date of the transfer, and the identity of the payee.  There is a charge for each stop-payment order you give (See Appendix A: Account Terms and Conditions, Schedule of Fees and Charges).

Unless you tell us that all future transfers to a specific recipient are to be stopped, we will treat your stop payment order as a request concerning the one transfer only.  You should also notify the designated payee in writing that you are stopping payment, as we generally will not do so.  If you order us to stop one of these payments at least three (3) business days before the transfer is scheduled and we do not do so, we will be liable for your losses or damages.

Note: The above procedure does not apply to recurring payments that you authorize others to initiate against your account by means of your Visa® Debit Card (e.g., monthly payments for Internet services).  You should notify the payee directly that you wish to cancel future payments.

How to Revoke Preauthorized Transactions from Your Account

You must notify the payee or merchant in the manner required in the authorization if you wish to permanently revoke or cancel preauthorized transactions.  This includes recurring Card transactions such as monthly fees for Internet services.  Keep a copy of the revocation for your records.

Our Liability for Failing to Make Transfers

If we do not complete an electronic funds transfer to or from your account on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages.  However, there are some instances for which we will not be liable, for example, if:

  •   Through no fault of ours, you do not have enough available funds in your account to make the transfer;
  •   The transfer would exceed any overdraft line of credit or Overdraft Privilege limit you have with us;
  •   If the ATM you are using does not have sufficient cash; or the funds in your account are subject to legal process, an uncollected funds hold, or are otherwise not available for withdrawal;
  •  Circumstances beyond our control (such as fire, flood, water damage, power failure, strike, labor dispute, computer breakdown, telephone line disruption, rolling blackouts, acts of terrorism, war or a natural disaster) prevent or delay the transfer, despite reasonable precautions taken by us;
  •  The system, ATM or POS, was not working properly and you knew about the problem when you started the transaction;
  •   We have reason to believe the transaction may not be authorized by you; or
  •  The information supplied by you or a third party is incorrect, incomplete, ambiguous, or untimely.

There may be other exceptions stated in other agreements we may have with you.

Your Liability for Unauthorized Electronic Fund Transfers

Tell us AT ONCE if you believe your card or PIN has been lost or stolen, or if you believe that an electronic funds transfer has been made without your permission using information from your check.  Telephoning is the best way of keeping your losses down.  You could lose all the money in your account (plus your maximum overdraft line of credit or Overdraft Privilege limit).

If you believe your card or PIN has been lost or stolen, call us at (510) 723-5778 or (800) 359-BANK (2265) or write to us at:

Fremont Bank, PO Box 5101, Fremont CA 94537-5101, Attn: Card Services Dept. MS 2501-SA.

If you tell us within two (2) business days after you learn of the loss or theft of your card or PIN, you can lose no more than $50 if someone used your card or PIN without your permission.  If you do NOT tell us within two (2) business days after you learn of the loss or theft of your card or PIN, and we can prove we could have stopped someone from using your card or PIN without your permission if you had told us, you could lose as much as $500 ($50 for VISA® Debit Cards).

Unless we determine that you were grossly negligent or fraudulent in the handling of your account or card, you will not be liable for the $50 amount described above for transactions conducted with your Card.

Also, if your statement shows transactions that you did not make, including those made by card, PIN or other means, tell us at once.  If you do not tell us within 60 days after the statement was sent or made available to you, you may not get back any money you lost after the 60 days if we can prove that we could have stopped someone from taking the money if you had told us in time.  If a good reason (such as a long trip, hospital stay, or the illness of a family member) kept you from telling us, we will extend the time periods.

You should also call the number or write to the address listed above if you believe a transfer has been made using the information from your check without your permission.

You may need to complete an Electronic Funds Transfer Error Notification form.

How to Report Unauthorized Transactions and Resolve Errors or Questions

In case of errors or questions about your electronic transactions call us at (510) 723-5778 or (800) 359-BANK (2265) or write to us at:

Fremont Bank, PO Box 5101, Fremont CA 94537-5101, Attn: Card Services Dept. MS 2501-SA as soon as you can, if you think your statement or receipt is wrong or if you need more information about an electronic transaction listed on the statement or receipt.  We must hear from you no later than 60 days after we sent or made available the FIRST statement on which the problem or error appeared.

1.       Tell us your name and account number.

2.       Describe the error or the transaction you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information.

3.       Tell us the date and amount of the suspected error.

We will determine whether an error occurred within 10 business days (20 business days for new accounts) after we hear from you and will correct any error promptly.  If we need more time, however, we may take up to 45 days to investigate your complaint or question.  If we decide to do this, we will credit your account within 10 business days (5 business days in some cases for Visa® transactions) for the amount you think is in error, so that you will have the use of the money during the time that it takes us to complete our investigation.  If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account.

For errors involving new accounts, point-of-sale, or foreign-initiated transactions, we may take up to 90 days to investigate your complaint or question.  For new accounts, we may take up to 20 business days to credit your account for the amount you think is in error.

We will tell you the results within three business days after completing our investigation.  If we decide that there was no error, we will send you a written explanation.  You may ask for copies of the documents that we used in our investigation.

Electronic Banking Card Agreement

Electronic Banking Card services are available to our checking and savings account holders.  To obtain a Fremont Bank "ATM" or VISA® Debit Card "Card", you must:

  •   Link it to an active checking or savings* account at Fremont Bank;
  •  Meet the Bank's criteria for cardholders at all times;
  •   Select your Personal Identification Number ("PIN").

* If you have only a Savings or Money Market account, it cannot be linked to VISA® Debit Card(s); only to ATM Card(s).


When you apply for, retain or use a Card, you agree to the following terms and conditions:

1.       You request the Bank to debit and credit the account(s) which you have asked us to link to the Card in accordance with the electronic instructions which you give by using the Card at Fremont Bank ATMs, other ATM networks to which the Bank subscribes, POS Terminals, or at other merchants and financial institutions displaying the VISA® logo.

2.       You agree that Fremont Bank may treat these electronic instructions as if they are written withdrawal orders, deposit orders, payment orders, or other orders bearing your genuine signature.

3.       You understand that the Card is the property of the Bank, and you will return or surrender it to the Bank or its authorized agent immediately upon request.  The Bank may terminate your card privileges at any time with or without notice to you.  You accept all liability which can be imposed upon you for each use of the Card.  You agree to notify the Bank immediately of the loss, theft, or unauthorized use of the Card.

4.       You agree that the transactions made by use of the Card are subject to all other rules and regulations governing your linked account(s), and to any other agreements between you and the Bank.  The Bank may add or discontinue services and make other changes in this Agreement, provided that you are given notification if required by law.

5.       You further agree that the Card may be linked to either an individual or joint account.  Accounts requiring two or more signatures for any transaction are not eligible.  You understand that Fremont Bank will not have any record of your Personal Identification Number "PIN" and that it is your sole responsibility to remember it.  In case you lose or forget your PIN, please visit a local branch or call Customer Service Center at (510) 723-5778 or (800) 359-BANK (2265).

ATM Card and PIN Security

Each cardholder is responsible for maintaining the security of their PIN.  You agree not to disclose or otherwise make your card or PIN available to others including Bank Personnel.  For security reasons, you agree not to write your PIN on your card or keep it in the same location as your card; the best way to keep your PIN secure is to memorize it.  Your card(s) is (are) the property of the Bank and must be returned to us upon request.

If you think your PIN has been compromised, you should immediately notify the Bank and change your PIN at any one of our branch locations or at any Fremont Bank ATM.

Non-Activated and Dormant Cards

If your Card has not been activated within 60 days of issuance or if you have activated your Card, but have had no transactions for 6 months, your primary account connected to the Card may be charged a monthly Inactive Card fee until a transaction occurs or the Card is closed (See Appendix A: Account Terms and Conditions, Schedule of Fees and Charges).

Fraud Monitoring

Card activity is monitored 24 hours a day, 7 days a week.  We use fraud monitoring tools to review how and where your card is being used.  These tools help us detect unusual transaction activity that may indicate fraudulent use, enable us to contact you if we detect unusual transaction activity and block potentially fraudulent transactions.  If we cannot reach you and fraudulent transactions are suspected on your card, the card will be blocked and will be unusable until confirmation can be obtained.  If you were contacted and are returning a call from our monitoring service you will need to provide the number where the message was left.  Or simply contact us at (800) 359-BANK (2265) should you encounter any problems using your card.  NOTE:  To minimize any disruptions with your card it is recommended that you notify the bank when travelling or when changes to your contact information are made.

Transaction Types and Limitations

You may use your card to:

  •   Withdraw cash from your account
  •  Make deposits to your account
  •   Transfer funds between your checking and savings accounts whenever you request
  •   Pay for purchases at places that have agreed to accept the card
  •   Pay bills directly by phone from your account in the amounts and on the days you request

Some of these services may not be available at all network ATMs.

ATM Services

Fremont Bank ATMs and ATM national networks in which we may participate (PLUS®, STARSM, Allpoint®, etc.) allow customers to perform the following general banking functions with their Card:

  •   Withdraw cash from designated deposit accounts
  •  Make deposits to designated deposit accounts (currently available only at Fremont Bank ATMs)
  •   Transfer funds between designated deposit accounts
  •   Transfers made after 4:30 p.m. on a business day or on a weekend or holiday will be considered effective the next business day.
  •   Make inquiries to determine available balances of designated deposit accounts1

1These transactions are not covered by the error resolution or liability provisions of this section.  Balance information may not reflect recent transactions, and may include funds which are not available for immediate withdrawal.  Deposits and payments are subject to later verification by us.

Some of these services may not be available at all network ATMs.

Most ATMs are available 24 hours a day, 7 days a week.  However, periodically they must be shut down for routine maintenance, inspection, and repair.

Making Deposits at Fremont Bank ATMs

Items that the cardholder wants to deposit to linked account(s) must be endorsed by all payees.  You may not deposit foreign currency or paper items with payment amounts stated in foreign currency.  If the cardholder makes a deposit at the ATM and the amount keyed differs from the sum of the deposited item(s), a credit or debit adjustment will be made to the account.  During the verification process, item(s) that the bank refuses to accept for deposit for any reason, (e.g. non-negotiable, endorsement exceptions, or otherwise irregular) will be returned by U.S. Mail to the address in the Bank's records for your account.  The dollar amount of such items will be deducted from the total dollar amount keyed in for the deposit.  The availability of deposits for withdrawal is described in the funds availability policy.

ATM Malfunctions: The cardholder will not hold the Bank responsible for damages that result from or are a consequence of an ATM malfunction.  The cardholder will promptly notify the Bank if an ATM fails to dispense the correct amount of cash or provide a proper receipt by calling or writing the bank at: Fremont Bank, PO Box 5101, Fremont CA 94537-5101, Attn: Card Services Dept. MS 2501-SA.

Fees for ATM Transactions

There are no fees charged by Fremont Bank for using your Card at a Fremont Bank ATM or any other ATM in the United States.  You may be charged a fee for ATM withdrawals outside the United States (See Appendix A: Account Terms and Conditions, Schedule of Fees and Charges).  When you use an ATM that is not operated by us or Allpoint®, you may be charged a fee by the ATM operator or any network used, and you may be charged a fee for a balance inquiry even if you do not complete the transaction.

Limitations on Frequency and Amounts of Transfers

Certain transaction limitations are imposed on Money Market Checking and Savings Accounts; please see Account Limitations for more detail.

Telephone Transfer Service

With this service, you can call us at (800) 359-BANK (2265) and transfer funds between your savings and checking accounts with us.  To initiate a transfer, you must provide us with your identification and the respective account numbers, as well as any PIN or Keyword Identifier we may issue you in connection with the service.  You may not disclose the PIN or Keyword Identifier to others.  Transfers will be made only from collected funds and will be available for withdrawal at the opening of the Bank's next business day.  Transfers may only be made between accounts with the same ownership and that are linked through the service.

Your call to us must be received on or before 7:00 p.m. on a business day to be processed on the same day.  Transactions occurring after that hour or on a Saturday, Sunday or holiday will be processed on the next business day.  You can obtain account information with this service.  Please note that balance information may not reflect recent transactions, and may include funds that are not available for immediate withdrawal.  The balance information feature is not subject to the error resolution or liability sections set forth below.  There is a charge for each transfer (See Appendix A: Account Terms and Conditions, Schedule of Fees and Charges).

Limitations on ATM Withdrawals

Generally, you may withdraw up to $500 at Fremont Bank ATMs, and/or at PLUS®, STARSM or Allpoint® system ATMs nationally, during each day, as long as your available deposit account balance and any available overdraft line of credit will cover the withdrawal.  Your available deposit account balance consists of your beginning of day account balance plus or minus the dollar amount(s) of any transactions posted on the same day.  As all transactions may not have completed posting for the business day, your available balance may change.  For purposes of determining when you have reached your daily limit, a day ends at 12:00 a.m. ("midnight") Pacific Time.  ATM and POS transactions occurring after 4:30 p.m. on business days or on weekends or holidays are aggregated, for purposes of this limitation, with transactions occurring on the next business day.  At some ATMs, your withdrawals may be limited to a lower amount by the provider.  For security reasons, there may be other limits on the amount or the number of withdrawals or transfers you may make at ATMs.

Point-of-Sale ("POS") Transactions

A POS transaction is a purchase made at a retail establishment through an electronic terminal using your Card.  You may use your Card and PIN to pay for goods and services purchased from merchants who accept and display the STARSM logo.  The amount of each purchase will be deducted from the checking account designated as your primary account and any available overdraft line of credit.  Savings and Money Market accounts cannot be accessed for POS transactions.  Generally, Card purchases are limited to $300 during each day, as long as your available deposit account balance, including any available overdraft line of credit, will cover the withdrawal.  For purposes of determining when you have reached your daily limit, a day ends at 12:00 a.m. ("midnight") Pacific Time.  Some merchants or retail establishments may add a surcharge to the purchase amount at some locations.  We advise you to look for information posted near the terminal or on the screen.

Purchase Transactions through VISA® Network

You may be issued a Fremont Bank VISA® Debit Card that displays the VISA® logo on the face of the card.  You may use this card to pay for goods and services and obtain cash at most retail locations that display the VISA® logo.  In addition, all terms described above under the heading "Point-of-Sale ("POS") Transactions" apply to VISA® Debit Card transactions made by POS.

The amount of each purchase will be deducted from the checking account designated as your primary account including any available overdraft line of credit.

Generally, you may use your Card at any merchant or financial institution displaying the VISA® logo up to $1,500 during each day, as long as your available deposit account balance, including any available overdraft line of credit, will cover the transactions.  This $1,500 limit includes any ATM withdrawals but does not include transfers between linked accounts.  At some ATMs or merchants, your transactions may be limited to a lower amount by the provider.  For security or other reasons, there may be other limits on the amount or the number of transactions you may make at ATMs, merchants, or financial institutions.

Your card cannot be used to transfer money into or out of your account without a PIN at ATMs and most POS terminals.  You may be asked to sign a sales slip or provide identification, rather than enter your PIN, for certain Card transactions.  At some merchants, such as gas stations, you may not be required to sign your name or enter your PIN for a Card purchase.  Please be advised that some merchants or financial institutions may assess a fee for this type of transaction.  Also, unless otherwise required by law, we are not liable for any amount if a merchant or financial institution refuses to accept your Card.

We deduct the amount of your transaction plus any charges imposed from your linked checking account designated as your primary account including any overdraft line of credit.  We may debit or place a hold on your account for a transaction either on the day it's presented to us for payment, by electronic or other means, or on the day we receive notice of the transaction, whichever is earlier.  The hold may be for the amount of the transaction, or for a pre-established amount in excess of the individual transactions (for example, hotel or car rental reservations).  The held funds will not be available for other account purposes, and we have the right to return checks or other items drawn on your account to maintain sufficient funds to pay for Card transactions.  The hold may continue even if you do not purchase any goods or services for which authorization was sought.  Please be advised that you may have to settle directly with the merchant to release a hold on your account that such merchant placed for a transaction.

If checks are returned, you agree to pay all applicable non-sufficient funds fees.

We may, but are not obligated to, allow transactions which exceed your available balance or available overdraft line of credit.  If we do, you agree to pay the overdraft.  See the Overdrafts section of this book for more information on payment of overdrafts.  You also agree to pay the overdraft charges in effect for each transaction which causes your available account balance or available overdraft line of credit to be exceeded.

NOTE: YOU MAY NOT STOP PAYMENT ON ANY PURCHASE TRANSACTIONS YOU CONDUCT WITH YOUR CARD.

Your Card is not a credit card, which means, among other things, that you may not defer payment on your transactions.  The amount of each purchase will be deducted from the checking account designated as your primary account including any available overdraft line of credit.

Please be advised that you may have to settle directly with the merchant any disputes you have about goods or services you purchase using your Card.  If a merchant or financial institution makes any misrepresentations to you regarding the goods or services you purchased, we are not responsible for any damages or liabilities that result from the misrepresentation.  (Note: You should notify us of any dispute regarding transactions that are unauthorized or an incorrect amount).

If you arrange for recurring payments (such as the monthly fee for Internet access) and wish to cancel future payments, you should do so by notifying the merchant in writing.  Please retain a copy of the notice for your records.

Foreign Debit Card Transactions

If your Card is used to conduct a transaction in a foreign currency (e.g., at a foreign ATM or POS terminal), VISA® International may convert the transaction to U.S. dollars.  The exchange rate between the transaction currency and the billing currency used for processing international transactions is either:

  •   A rate selected by VISA® from the range of rates available in wholesale currency markets for the applicable central processing date, which may vary from the rate VISA® itself receives, or
  •   The government-mandated rate in effect for the applicable central processing date.

The conversion rate may be different from the rate in effect on the date of your transaction and the date it is posted to your account.

You agree to pay the charges and accept credits for the converted transaction amounts in accordance with the terms of this section.

Additional Terms and Conditions

Adjustments

We may make adjustments to your account whenever a correction or change is required.  Adjustments might occur, for example, if deposits are recorded in the wrong amount or items you deposit are returned unpaid.  We may elect, at our discretion, not to make an adjustment to your account to correct an error which you or a third party (e.g., another financial institution) cause if the adjustment is less than $5.00 or our cost to make the adjustment is greater than the amount in question.

If there is a discrepancy in a check you have written between the amount in numbers and the amount in words or embossed numbers, the Bank may utilize either amount in paying the item or may dishonor the item, without liability.

Amendments/Changes in Account Terms

We may change, add to, delete or amend the terms of our agreement with you at any time by mailing, delivering, or making available, a notice, a statement message, or an amended agreement to any of you at the last address or e-mail address on file for you, your account, or the service in question.  Unless otherwise required by law, we may amend the agreement without prior notice (e.g., by posting the information in our offices or otherwise making it available to you).

We may substitute similar services or discontinue currently offered services for certain accounts by giving you prior notice.  We do not have to notify you, however, of any changes which are beneficial to you (e.g., a reduction or waiver of any fees or the addition of services).

We may modify this Agreement or our services without notice for security reasons, or, if based on exigent or suspicious circumstances or an extraordinary request, we believe that you, the Bank, and/or the Bank's customers may otherwise suffer adverse consequences.

Assignment of Account Ownership Interest

You will not assign or transfer any interest in your account without our prior written consent.  We are not responsible or liable to you or any third party for not acting on the terms or conditions of any assignment unless we acknowledge the assignment in writing or enter into a control agreement.  We may charge a fee for this service.  If we acknowledge an assignment and fail to comply with its terms or conditions, and our failure results in a loss that cannot be otherwise recovered, we are not liable, under any circumstances, for special or consequential damages.

Automated Processing

At Fremont Bank, as at most banks, checks are received in large volume and are processed by automated means.  Most checks are not individually examined.  These automated procedures rely primarily on information encoded onto each check or item in magnetic ink.  In recognition of this fact, you agree that in paying or processing a check or item for payment, the Bank may rely on the information encoded onto the check or item in magnetic ink (the "MICR" line) according to reasonable banking standards, whether or not that information is consistent with the other information on the check or item.  You agree to reimburse the Bank for any loss or expense we incur because you issue or deposit a check or item containing altered or extra information in the MICR line.  Although the Bank does examine certain checks under procedures which may change from time to time, you agree that reasonable banking standards allow automated processing of most checks.  You also agree that Bank employees who do examine certain checks are not handwriting experts.  This means it is essential that you take care of your checks and review your statement for fraudulent activity.

Business Days

Throughout this Agreement, we use the term "business days."  Our business days are Monday through Friday.  Saturdays, Sundays, and federal holidays are excluded.  Our business days do not necessarily correspond with our branch hours.  All branches are open Monday through Friday, except holidays; some branches are also open on Saturday and Sunday.  If the Bank receives a deposit on Saturday, Sunday, a federal holiday or after our cutoff hour on any business day, we may treat the item as if we had received it on the next business day.  Please note that our branch offices maintain different cutoff hours depending on the business day and the way you make your deposit.

California Law

Except as otherwise provided in this Agreement, California law will govern the Services and the interpretation of this Agreement.  Unless otherwise provided in this Agreement, your accounts and the Services will be subject to applicable clearinghouse, Federal Reserve Bank and correspondent bank rules.  You agree that we do not have to notify you of a change in those rules, except to the extent required by law.

Cash Transaction Reporting

The Bank Secrecy Act, a federal law, requires all financial institutions to report certain cash transactions.  We are required to obtain certain information about the individual presenting the transaction, as well as the organization or individual for whom the transaction is being conducted.  Information also must be obtained by us in connection with purchases of monetary instruments for cash.  If you have any questions about the Bank Secrecy Act, contact your local IRS office.  You may not structure your transactions intentionally to avoid our collection of information and filing of a report.

Changes in Account Ownership, Address and Authorized Signers

You agree to notify us in writing of any change in your name, address, ownership or the authorized signers on your account.  You authorize us to obtain information on your residence address from the Department of Motor Vehicles and waive your rights under California Vehicle Code §1808.21.  We may require a new signature card before any change in ownership or authorized signer(s) becomes effective.

If the authorized persons on your account change, we may continue to honor items and instructions given earlier by any previously authorized person(s) until we receive specific notice from you in writing not to do so.  (Note: A new or updated signature card, by itself, does not constitute such notice.)  In some instances, we may require you to close your account or provide us with stop payment orders in order to prevent transactions from occurring.  There may be a delay in implementing a change in the authorized persons on our records, and you agree that we shall be given a reasonable opportunity to make the changes necessary.

Checks

Check prices vary according to the types of checks you select.  You can obtain information on the current price of checks by contacting your office of account.  Check charges may vary from time to time without specific notice to you.

You are responsible for checking the accuracy of all information shown on your checks.  If you find an error, please notify us immediately.  We are not liable for losses resulting from incorrectly printed checks.

We make checks available that include fraud prevention features. If you choose not to use these or other checks that include fraud prevention features, you agree to assume a heightened degree of responsibility for safeguarding your checks, and for reviewing all returned checks and statements as soon as you receive them.

If you arrange for the printing of your own checks, the form, encoding, and format of the checks must follow our check specification requirements and be approved by us in advance.  We reserve the right to refuse checks printed by outside vendors you have selected should the printed checks fail to meet our specification requirements for processing.

Checks Bearing Notations

Although we are not obligated to, we may pay or accept checks and other items bearing restrictions or notations (e.g., "Void after 6 months," "Void over $50.00," "Payment in Full," "Two Signatures Required," and the like), whether on the front or back, in any form or format.  If you cash or deposit an item or write a check with such a notation, you agree that it applies only between you and the payee or maker.  In the absence of any specific agreement to the contrary, the notation will have no effect on us, and you agree to accept responsibility for payment of the item.  You agree to indemnify and hold us harmless from any claim or alleged loss of any maker or payee involving such notations, whether you are the maker, or payee, or the funds are otherwise deposited into an account in which you have an interest.  (See also "Full Satisfaction Checks").

Check Imaging

We do not return cancelled checks.  We will provide you imaged copies of your checks and keep a copy of your checks for seven years.  You can request a copy of a check (including the front and back of the check) by providing us with the following information: check number, amount, the payee and the date the item was paid.  There is no charge for the first two items per month that we copy for you.  After that, your account is charged a fee for each copy.  We will not be responsible for any special or consequential damages under any circumstances for our inability to provide copies of checks for any reason.  Our liability, if any, will not exceed the face amount of the check in question.

Check Processing Cutoff Hour

Our processing cutoff hour with respect to any knowledge, notice, stop payment order, or legal process received by us involving a check under California Commercial Code Section 4303(a) (5) is one hour after the opening of the banking day.  The cutoff hour with respect to setoffs exercised by us is the close of the banking day following the banking day we receive a check.

If your checks are presented for payment or acceptance on a weekend, holiday, or after 2:00 p.m. on a business day, we may treat them as if they were received on the next business day.

Checks Lost or Stolen

You agree to safeguard your blank and cancelled checks, and to take reasonable steps to prevent their unauthorized use.  If you are a business, you should store them under dual control in a secure, locked location that is accessible only to authorized personnel.

If your checks are lost or stolen, you agree to notify us immediately.  For security reasons, we reserve the right to close your account and transfer the balance to a new account.  If we do, all checks written, but not yet paid, may be returned to payees as "Account Closed," "Reported Lost or Stolen" or "Refer to Maker."  You will be responsible for issuing any replacement checks.

Collection Items

We and other institutions may refuse to accept a check for deposit or may accept it on a collection basis only.  This often occurs with foreign, questionable or damaged checks.  If we accept an item for collection, we will send it to the institution upon which it is drawn, but will not credit your account for the amount until we receive the funds from the other institution.  If we elect to credit your account before then, we may charge the amount back against your account if we do not receive payment for any reason. We may impose a fee in connection with sending and receiving checks for collection (e.g., by charging your account or deducting the fee from the amount remitted).  Other institutions that send or receive checks for collection involving your account also may impose a fee for their services.

Compliance

You agree to comply with applicable law.  You may not use your account or services for any illegal activity.  You agree to indemnify, defend and hold us harmless from every action, proceeding, claim, loss, cost and expense (including attorney's fees) suffered or incurred by us due to any U.S. or foreign government entity seizing, freezing or otherwise asserting or causing us to assert control over any account or funds in an account of yours (or ours) when purportedly caused by or arising out of your action or inaction.  This will apply whether or not such action is ultimately determined to be authorized under the laws of the U.S. of its territories, or of any foreign jurisdiction.  We are not required to inquire or determine the authority of any action taken by U.S. or foreign government entity prior to acceding to any legal process initiated by it.

Conflicting Demands/Disputes

If conflicting demands over the ownership or control of an account arise, or we are unable to determine any person's continuing authority to give instructions, we may, at our sole discretion: (1) freeze the account and withhold payment from any of you until we receive written proof (in form and substance satisfactory to us) of your right and authority over the account and its funds; (2) require the signatures of all of you for the withdrawal of funds, the closing of an account, or any change in the account regardless of the number of authorized signers on the account; and/or (3) request instructions from a court of competent jurisdiction at your expense regarding the ownership or control of the account; and/or (4) continue to honor checks and other instructions given to us by the individuals who appear as authorized signers according to our records. In no event will we be liable for any delay or refusal to follow instructions which occurs as a result of a dispute over the ownership or control of your account.  We may return checks and other items, marked "Refer to Maker" (or similar language), in the event there is a dispute or uncertainty over an account's ownership or control.

Death or Adjudication of Incompetence

You agree to notify us immediately of the death or court declared incompetence of any owner, authorized signer, or designated beneficiary on your account.  You agree that we may disregard any notice of incompetence unless the account holder has been declared incompetent by a court of appropriate jurisdiction, and we receive written notice and instructions from the court regarding the account.  We may also freeze the account, offset the account, refuse and/or reverse deposits and transactions (e.g., governmental or retirement benefit payments payable to the deceased) if an owner dies or is adjudicated incompetent.

Neither the death nor adjudication of incompetence of an account owner or authorized signer revokes the Bank's authority to accept, pay, or collect items until the Bank knows of the fact of death or adjudication of incompetence and has had a reasonable opportunity to act on it.  However, even with this knowledge, the Bank may, for ten (10) days after the date of death, pay checks drawn on or before the date of death unless ordered to stop payment by a person claiming an interest in the account.  This stop payment request must be in writing and submitted at the branch of account on the Bank's form.

Demand Drafts

You agree you will not deposit demand drafts without our express authorization.  You will hold us harmless and release us from liability for your breach of this agreement.

Deposit Insurance

Funds in deposit accounts with us are insured by the Federal Deposit Insurance Corporation (FDIC) up to the regulatory limit.  To ensure funds are fully protected, depositors should understand their coverage limits.  The FDIC provides separate coverage for deposits held in different account ownership categories.  For further information regarding insurance of accounts, you may write to the FDIC at 550 17th Street, N.W., Washington, D.C. 20429, visit their website at www.fdic.gov, or telephone the FDIC's toll-free consumer hotline at (877) 275-3342.

Dormant Accounts

Any funds held by Fremont Bank (including without limitation, funds in a checking, savings, certificate of deposit, or other account, sums for the payment of cashier's checks, teller checks, etc.) may be transferred to the unclaimed property division of the state of your last known address if no activity occurs in the account within the time period specified under such state's abandoned property law.  In complying with these requirements, the laws of the state of your last known address (as recorded on our bank records) govern the inactivity period and specific requirements applicable to your account.  If we do not have a good address recorded on your account or if your address, as recorded on our bank records, is outside of the United States, California law will govern.

Your account is usually considered abandoned if you have not performed at least one of the following activities for the period of time specified in the applicable state's unclaimed property law: made a deposit or withdrawal, written to us about the account, or otherwise shown an interest in the account, such as asking us to keep the account active.  You usually need to perform the activity; therefore, bank charges, interest payments, automatic deposits and withdrawals are usually not considered activity.  A certificate of deposit account that has not reached initial maturity will not be considered inactive, but if the account renews automatically, it can become inactive starting after the initial maturity date.

Service charges for "dormant or inactive accounts" are the same as service charges for active accounts.  Charges are not reimbursed for dormant or inactive accounts that are later reclassified as "active."  For security reasons, we may refuse a withdrawal or transfer from accounts we internally classify as dormant if we cannot reach you in a timely fashion to confirm authorization.  Statements for dormant or inactive accounts will be sent or made available semi-annually.

We may impose a fee for sending a pending escheatment notice to you prior to turning the funds over to the state.  Once funds have been delivered to the state, we have no further liability to you for the funds and you must file a claim with the state to recover the funds.

If we consider your account inactive, then (unless prohibited by federal law or the law of the state where we maintain your account) we may:

  •   charge dormant account fees on the account in addition to regular monthly service charges and other fees,
  •   stop sending statements,
  •   if the account received interest, stop paying interest on the account; and
  •   refuse to pay items drawn on or payable out of the account.

Endorsement Standards

Federal regulations provide that the top 1-1/2 inches on the back of a check (when read vertically from the trailing edge) is designated for your endorsement as payee.  If you endorse a check in the area outside of the endorsement area, mark or otherwise obscure the other area, or make an endorsement which is illegible or incomplete, you agree to hold us harmless from any loss, delay, liability, claim, or damage which occurs as a result.

Facsimile Signatures

We may refuse to accept or may pay items bearing facsimile signatures.  You agree to assume full responsibility for any and all payments made by us in reliance upon signatures that resemble the actual or facsimile signature(s) that any of you provide to us in connection with your accounts or services.  You agree to indemnify, defend and hold us harmless from any and all actions, claims, losses, damages, liabilities and expenses arising directly or indirectly from the misuse or the unlawful or unauthorized use or copying of facsimile signatures (whether affixed manually, by stamp, mechanically, electronically or otherwise).

Fax Instructions/Voice Mail/E-Mail

We may, but are not required to, act upon instructions received by fax transmission, voice mail or e-mail.  We may not review your message until the business day after its receipt.  As such, it may not be appropriate to use these methods of communication if you need to reach us with time-sensitive information.

Full Satisfaction Checks

Any payments made in full satisfaction of any dispute you have about amounts you owe the Bank under this or any other agreement must be mailed or delivered to:

Fremont Bank, 39150 Fremont Blvd., Fremont, CA 94538, Attn: Security Officer

with a description (on a separate page) of the dispute, the loan or deposit account number in question, and a statement that the payment is being tendered in settlement of the dispute.

Sending any other payments to this address may delay the crediting of your payment.

Interbranch Services

Generally, you can utilize the services of any office of Fremont Bank to make deposits and conduct your ordinary banking business.  When using any branch, you may be required to present acceptable identification.  In certain circumstances, we may not be able to complete a transaction (such as a cash withdrawal) at another branch if the branch where your account is held is closed.

The amount of cash you can receive at our locations inside supermarkets is limited on weekends and evenings.  Please see the Branch Manager where your account is domiciled if you anticipate a large cash need.

Judicial Reference

If a dispute involving $25,000 or more arises between us with respect to this Agreement, its enforcement or our related services (e.g., cash management service or safe deposit box rental), either of us may require that it be resolved by judicial reference in accordance with California Code of Civil Procedure, Sections 638, et seq.  The referee shall be a retired judge, agreed upon by the parties, from either the American Arbitration Association (AAA) or Judicial Arbitration and Mediation Service, Inc. (JAMS).  If you and we cannot agree on the referee, the party who initially selected the reference procedure shall request a panel of ten retired judges from either AAA or JAMS, and the court shall select the referee from that panel.  The costs of the reference procedure, including the fee for the court reporter, shall be borne equally by all parties as the costs are incurred.  The referee shall hear all pre-trial and post-trial matters, including requests for equitable relief; prepare an award with written findings of fact and conclusions of law; and apportion costs as appropriate.  Judgment upon the award shall be entered in the court in which such proceeding was commenced and all parties shall have full rights of appeal.  This provision will not be deemed to limit or constrain our right to set off, to obtain provisional or ancillary remedies, to interplead funds in the event of a dispute, to exercise any security interest or lien we may hold in property, or to comply with legal process involving your accounts or other property.

Legal Process

We may comply with any writ of attachment, execution, garnishment, tax levy, restraining order, subpoena, warrant, or other legal process which we believe (correctly or otherwise) to be valid.  We may honor a legal process which is served by mail or facsimile transmission, or at any one of our offices, even if the law requires personal delivery at each office where you maintain an account.  Unless restricted to a specific account, we may use funds in any account on which you are an owner, in any order, at our option.  We will not pay interest on any funds we hold or set aside in response to legal process.  We may notify you of such process by telephone, electronically, or in writing.  A fee for processing may be assessed (See Appendix A: Account Terms and Conditions, Schedule of Fees and Charges).  NOTE: If we are not fully reimbursed for our record research, photocopying, and handling costs by the party which served the process, we may charge such costs to your account in addition to the minimum legal process fee, even if later quashed or abandoned.

You agree to indemnify, defend, and hold us harmless from all actions, claims, liabilities, losses, costs, and damages associated with our compliance with any process that we believe to be valid.  This includes instances where we may remit funds demanded under an alias (where identification is verified) if we believe the debt is owed to the judgment creditor or levying party.  Accounts opened with trust or fiduciary designations (e.g., "XYZ, Inc. Client Trust Account") may be subject to levies and other legal process against your property unless our records clearly reflect the existence of an express written trust or court order.

Limitation on Time to Sue

Unless otherwise required by law, an action or proceeding by you to enforce an obligation, duty or right arising under this Agreement or by law with respect to your account or any account service must be commenced within one year after the cause of action occurs.

Multiple Signatures

If you (a) have specified that some or all checks must be signed by more than one person; (b) have specified that the authorized signers for checks in one category are different than those for another check category; or (c) utilize checks that require multiple signatures, you acknowledge that those restrictions are for your internal use only and do not bind us even if you have made us aware of them in a certificate of authority or otherwise.  We reserve the right to refuse to allow persons to open accounts with these types of restrictions.  You agree not to assert any lack of authorized signers on any check as long as it contains the signature of at least one individual who is an authorized signer for your account

Night Depository (not available in all locations)

You agree to use only Single Use Bags provided by us (for a fee) or a sealed envelope.  Business customers may also be assessed fees for this service (See Analysis Activity Charges in Appendix A: Account Terms and Conditions, Schedule of Fees and Charges).  If you are issued a key to the night depository, you will not give night depository keys to others and will immediately notify the Bank if a key is lost or stolen.  You will lock the night depository after using it.  No presumption shall arise that a bag or its contents have been removed without authorization from the depository simply because you claim something is missing.  The Bank will not be responsible for any loss caused by fire, flood, earthquake, acts of God, vandalism, burglary, or water damage.  In no event will the Bank be responsible for consequential damages or lost profits.  You agree that our liability for Night Depository service is that of a bailee of the bags and envelopes.  We are a bailee until the contents are opened and we verify and credit the contents to your account(s) or until you have signed a receipt for and accepted custody of the contents.

Night depositories are provided for your convenience.  Please be very cautious when you are using any night depository.  Be alert to your surroundings and avoid using a night depository with anyone or anything suspicious in the vicinity.  Have your deposit ready and promptly leave the area.  Vary the time and route you use to avoid establishing a pattern.  Make sure your deposit passes all the way into the unit so it cannot be removed from the outside.  If possible, have someone you trust accompany you.  If you must use the night deposit after dark, make certain the area is well lighted and that no one is lingering in the darkness.  If you see anything that should worry you around the night depository, PLEASE, DO NOT USE IT.  Immediately report all crimes or attempted crimes to local law enforcement officials.  We cannot guarantee your safety at a night depository.  We are not required to maintain guards or cameras at night depositories.

Non-Customer Transactions

If a check written by you is presented for payment in person by a non-customer (a person who does not have a depository relationship with the bank) at one of our offices, depending on the circumstances, we may, on occasion, require verbal or other authorization from you prior to paying the item.  We may require identification acceptable to the Bank, which may include two or more pieces of identification and a fingerprint or thumbprint of the non-customer.  The Bank may dishonor the item if the non-customer refuses to provide the identification the Bank requests.  We establish a threshold, which may be modified from time to time for processing in-person non-customer transactions.  We will not be responsible for adverse consequences, which may result from our inability to contact you prior to paying or declining to pay an item presented by a non-customer.

You agree that the Bank may impose a fee on the payee or other holder of a check or other item drawn against your account that is presented for payment over the counter at the Bank rather than being deposited in an account at another institution and presented for payment through the check collection system.

Notification

If you need to notify the Bank in any aspect regarding your account(s), you may do so by contacting a branch personally, writing to us, or by calling us.  This includes, but is not limited to, stop payment requests, account inquiries, reporting of lost or stolen items, and dispute notification.

Unless otherwise provided in this agreement, you must mail or deliver all notices to us in writing at the branch(es) where you maintain your account(s) or at such other address(es) as we designate.  Notices sent elsewhere may be delayed or may not reach the correct office.

When using e-mail, please be cautious.  The Bank may not immediately receive e-mail that you send.  You should not rely on e-mail if you need to communicate with the Bank immediately.  If you need to contact the Bank immediately (for example, if someone has stolen your PIN), use the procedure described in the previous section entitled "Your Liability for Unauthorized Electronic Funds Transfers".

Other Agreements

You may have another agreement with us which, by its terms, supersedes this agreement in whole or in part.  For example, if you are a governmental unit or a business customer, certain provisions of your other agreements with us (e.g., involving cash management services) may supersede some of the terms of this agreement, to the extent that they are inconsistent.

Overdrafts and Non-sufficient Funds

(ODs/NSF)

An "overdraft" ("OD" or non-sufficient funds/negative balance) occurs when the Bank pays a check or other item presented for payment on an account even though the account has insufficient funds to cover the check or item.  An overdraft may occur if an account does not have sufficient funds to cover the payment of: (A) Checks, electronic funds transfers, automatic payments, or other items presented for payment; (B) Withdrawal requests you initiate such as ATM withdrawals and everyday purchases made with a debit card; (C) An item that is returned, unpaid that was either deposited or cashed by you; (D) Charging your account for our applicable service charges and fees; (E) The deposit of items to your account which, according to our Funds Availability Policy, are treated as not yet "available" or "finally paid"; (F) An item presented for payment which exceeds the formal overdraft line of credit, overdraft linked account balance or courtesy overdraft limit.

When you conduct a transaction, make sure you have enough available funds on deposit in your account or Overdraft Protection coverage (linked account and/or overdraft line of credit) available to pay the check or other item when it is presented for payment.  Track the money you deposit into and withdraw from your account, including ATM withdrawals, purchases you make with your debit card, bills that get debited electronically from your account, and checks.  Do not assume that you can make a covering deposit before the check or item is presented for payment as these items are often presented very quickly for payment.

If you do not have sufficient available funds on deposit in your account to cover the amount of a check or transaction (e.g., automatic payment, ATM withdrawal or other electronic transaction), the check or transaction may be returned or rejected without payment.  We have no liability for returning unpaid items, even if the insufficiency of funds in your account resulted from our assessing charges against your account (such as checking account or overdraft service charges).  However, at our sole discretion, we may create an overdraft by paying the check or permitting the transaction.  Either way, there may be a service charge for each item or transaction (See Appendix A: Book 2 Account Terms and Conditions, Schedule of Fees and Charges).

Even if we've paid overdraft items before, we are not required to do it in the future.  Please note that we may discontinue permitting overdrafts without notice to you.

For personal accounts, unless you have notified us that you DO want us to pay debit card overdrafts at our discretion, we generally won't authorize a non-repeating ("everyday") debit card transaction if your available account balance isn't enough to pay that transaction.

We may take the following actions if we receive an item drawn against your account and there are insufficient available funds in your account to cover the item without prior notice to you:

  •   Pay the item and create an overdraft to your account.
  •   Return the item unpaid, or if the item is an ATM withdrawal or everyday debit card purchase, decline the transaction.
  •   Cover the item in accordance with the terms of any written overdraft protection plan that you have established on your account.
  •   Partially cover the item to the extent there are available funds in the account you have linked to your checking account for overdraft protection, and create an overdraft for any balance for which funds are not available in the linked account to cover the item.
  •  Pay the item and create an overdraft to your account.

A fee may apply depending on the action the Bank takes with respect to an item (which includes but is not limited to a check, in person withdrawal, ATM withdrawal, everyday debit card purchases, or other electronic means).  Any fees we charge to an account may cause an overdraft.  You agree that Bank fees may be charged to your account prior to any other items being paid or returned for insufficient funds resulting from the assessment of Bank fees.  You agree to pay the amount of any overdraft immediately, without notice or demand from us.  Each account owner is jointly and severally responsible for paying any overdrafts created by any authorized signer(s) or party to the account, whether or not the owner participates in the transaction or benefits from its proceeds.  You agree to reimburse the Bank for the costs and expenses (including attorney's fees and expenses) it incurs in recovering the negative balance (including overdraft and associated fees).

Overdraft Protection Plans

The Bank offers several Overdraft Protection options to help you avoid the inconvenience and expense of overdraft and returned items.

Linked Account

If there is an overdraft in your checking account, and provided that you have sufficient funds available in your linked account, funds will be automatically transferred to your checking account.  The linked account may be a savings account (including a money market account), or another checking account.  Personal checking accounts may only be linked to personal accounts, and business checking accounts may only be linked to business accounts.  Any person who is an owner of both the checking account and the linked account may request the service without the consent of other owners.  Overdraft Protection will become effective within a reasonable time after we have approved your request.

If you overdraw an account that has Linked Overdraft Protection, we will automatically transfer available funds from the linked account to the checking account that is enough to pay the overdraft amount and all transfer fees.  Transfers will appear on the periodic statements for each applicable account.  We are not required to notify you if the linked account becomes unavailable.  We'll subtract an Account Linked Transfer fee from your checking account each day we transfer funds.  If more than one checking account receives a transfer on the same day, we'll subtract a fee from each account.  The fee amount is disclosed in Appendix A: Book 2 Account Terms and Conditions, Schedule of Fees and Charges.

Overdraft Line of Credit

With this revolving line of credit account, you authorize us to make automatic advances from your Overdraft Line of Credit account to cover items presented against nonsufficient funds in your designated checking account.  We charge a transfer fee each day that an advance is made.  If the available credit is insufficient to cover the presented items in multiples of $100, but are sufficient to cover the presented items in their exact amount, we will advance the exact amount available.  Interest accrues on all advances until paid in full.  Opening an Overdraft Line of Credit requires that you fill out an Overdraft Line application and is subject to credit approval.

If you have both Linked Account and an Overdraft Line of Credit on your checking account for Overdraft Protection and the available balance of the linked account is not enough to cover the overdrawn balance, then a transfer from the overdraft line of credit will transfer funds to cover the remaining overdraft balance.  A transfer fee will be charged for each of the Linked Account and Overdraft Line transfers.

When the Bank accesses funds in your line of credit account, the Bank's fee is charged to your line of credit account according to your Overdraft Line of Credit Agreement.

Limits on Overdraft Protection

We will not transfer more than the available account balance in a linked account or the available credit in a credit account, even if the amount of the overdraft is more than that available amount.  If the available account balance isn't enough to pay all the checks and other transactions you have initiated on any day plus the transfer fee (in increments of $100.00 for an overdraft line of credit), we will transfer enough funds to pay one or more transactions, (plus the fee for a linked account).  If, on a linked account, the available account balance is enough to pay one or more transactions but not the fee, we'll transfer enough to pay just the transactions.  However, we will charge the transfer fee against the account, causing the account to be overdrawn.  Any transactions that are not paid by the transfer will either be paid or returned, and Insufficient Funds fees or Returned Item fees will be charged as if you didn't have overdraft protection.

Transfers from a linked savings account (including a money market account) used as the overdraft protection account are limited by federal law.  There must not be more than 6 overdraft protection transfers and other limited transfers per monthly statement period.  See the section entitled "Money Market and Savings Accounts" in Appendix A: Account Terms and Conditions, Schedule of Fees and Charges which explains these limits in more detail.  Overdraft Protection will not be available if the linked account is closed or blocked for usage.

Termination of Overdraft Protection

We may terminate overdraft protection at any time by sending you written notice.  Any owner of the checking account, any owner of the linked account used as the overdraft protection account, or any borrower on a credit account used as the overdraft protection account may cancel overdraft protection in person or in writing.  Cancellation will be effective after we have received notice and had reasonable time to act on it.

Overdraft Privilege

We are not obligated to pay any item initiated for payment against your account if your account does not contain sufficient available funds.  Rather than automatically returning, unpaid, all non-sufficient funds items that you may have, if your "eligible account type" has been open for at least thirty (30) days which includes at least: (A) Continuing to make deposits consistent with your past practices, and depositing at least $400 or more in your account within each thirty (30) day period, (B) You are not in default on any loan obligation to us, and (C) Your account is not the subject of any legal or administrative order or levy, such as bankruptcy or a tax lien, we will consider, without obligation on our part, approving your reasonable overdrafts up to your assigned Overdraft Protection Limit, including our fees.  We reserve the right to require you to pay your outstanding overdraft (negative) balance, including our fees, immediately or on demand.

Overdraft Privilege is a discretionary service, which means the Bank is not obligated to pay any item presented for payment if the account does not contain sufficient collected (available) funds.  Any payment by the Bank of a non-sufficient funds check or checks (or other item) does not obligate the Bank to pay an additional or subsequent non-sufficient fund check or item.  Additionally, the Bank is not obligated to provide prior written notice of a decision to refuse to pay any additional non-sufficient check or item.

This discretionary* service will generally be limited to an $800 overdraft (negative) balance for eligible consumer checking account types; or a $1,500 overdraft (negative) balance for eligible business checking account types.  Our normal fees and charges including, without limitation, our non-sufficient funds (NSF) or overdraft (OD) fees as set forth in our fee schedule (See Appendix A: Account Terms and Conditions, Schedule of Fees and Charges), will be charged for each transaction initiated for payment from your checking account that does not have sufficient collected funds.  We will charge our normal NSF/OD fee whether we approve an overdraft item for payment or return it unpaid.  Additionally, accounts overdrawn three (3) or more consecutive business days will be charged a continuous Daily Overdraft (OD) Charge as set forth in our fee schedule (See Appendix A: Account Terms and Conditions, Schedule of Fees and Charges).  The charge will begin on the third consecutive business day that the account balance is below zero and continues until the account is returned to a positive balance.

Subject to Appendix A: Account Terms and Conditions, Schedule of Fees and Charges,  all fees, including but not limited to NSF/OD fees, will be included in and count against your assigned Overdraft Privilege Limit of $800 or $1,500.  There is a maximum daily NSF fee, whether the Bank pays or returns an overdraft item for consumers; however there is no maximum daily NSF fee, whether the Bank pays or returns an overdraft item for Business accounts per day.  There is no limit on the total fees we can charge you for overdrawing your account (See Appendix A: Account Terms and Conditions, Schedule of Fees and Charges).  Whether your overdrafts will be paid is discretionary and we reserve the right not to pay.  For example, we typically do not pay overdrafts if your account is not eligible as described above, or you are not making regular deposits, or you have too many overdrafts.  We may refuse to pay an overdraft for you at any time, even though your account is eligible and even though we may have previously paid overdrafts for you.  You will be notified by mail of any non-sufficient funds items paid or returned that you may have; however, we have no obligation to notify you before we pay or return any item.  The amount of any overdrafts including our fees that you owe us shall be due and payable immediately.  If there is an overdraft paid by us on an account with more than one (1) owner on the signature card, each owner, and agent if applicable, drawing/presenting the item creating the overdraft, shall be jointly and severally liable for such overdrafts including our fees.

Ineligible Accounts and Limitations:  The Overdraft Privilege service is only available for eligible checking accounts as defined above.  Savings type accounts, money market accounts, public funds, certain charitable organizations, trust accounts and minor accounts (not of legal age) are not eligible for this service.  We may, in our sole option and discretion, limit the number of your accounts eligible for Overdraft Privilege to one account per household and/or one account per taxpayer identification number.

Transactions that May Cause or Create Overdrafts Using Your Overdraft Privilege Limit: NSF transactions initiated for payment against your checking account may be paid by us using your assigned Overdraft Privilege Limit, including our fees.  Our NSF/OD fee may be imposed for paying, or not paying, overdrafts created by: check; in-person (teller) withdrawal; ATM withdrawal; or other electronic means such as automatic payments.

Debit Card Transactions: We generally will not authorize ATM withdrawals and everyday debit card transactions (point-of-sale) on consumer accounts if your available account balance is insufficient to pay the transaction or if you have notified us not to pay debit card overdrafts or if you have not provided us with your affirmative consent (Opt-In) to pay debit card overdrafts.  If you have not Opted-In to this service and want us to pay overdrafts for ATM and everyday debit card transactions, call us at 1-877-743-2582, visit your nearest branch or visit our website.

You May Always Opt-Out: You may choose at any time to not participate in Overdraft Privilege, or revoke your consent ("Opt-Out") to have ATM withdrawals and everyday debit card transactions considered for payment by notifying one of our Service Representatives who will explain what this ("Opt-Out") means, and the potential consequences, for you.  If You Need Help: Of course, overdrafts should not be used to pay ordinary or routine expenses and you should not rely on overdrafts as a means to cover these expenses.  If at any time you feel you need help with your financial obligations please contact one of our Service Representatives at (800) 359-BANK (2265).

*ALWAYS A DISCRETIONARY SERVICE: Our Overdraft Privilege service does not constitute an actual or implied agreement between you and us.  Nor does it constitute an actual or implied obligation of or by us.  Our Overdraft Privilege service represents a purely discretionary courtesy or privilege that we may provide to you from time to time and which may be withdrawn or withheld by us at any time without prior notice or reason or cause.

Payment of Photocopies

Checks and other items are sometimes lost during processing or while in transit to us.  You agree that we may charge photocopies of items to your account without prior approval if they appear to be drawn on your account and are accompanied by a representation from another financial institution that the original item has been lost or destroyed.  We shall not be liable to you if the original items are thereafter presented and paid against your account, unless a stop payment order is in effect for the check.

Postdated Checks

We strongly discourage the postdating of checks (i.e., dating a check later than the calendar date you write it).

Unless you provide your branch of account with a written postdated check notice that describes a postdated check with reasonable certainty, we may pay or return the check at our discretion.  Your notice must include the exact amount (dollars and cents), account number, check number, date of check and the name of payee.  If you provide us with a postdated check notice in a time and in a manner which affords us a reasonable opportunity to act on it, we will not pay the item and may return it (marked "payment stopped", "postdated" or otherwise) if it is presented to us prior to the check date indicated in the order (up to 180 days from the date of the notice).  After 180 days the notice is no longer effective and must be renewed.  We may impose a fee for each notice.

If we re-credit your account after paying a postdated check over a valid and timely postdated check notice, you agree to transfer to us all of your related rights against the payee or other holder of the check, and to assist us in legal action taken against that person.

Power-of-Attorney

If you wish to appoint an attorney-in-fact, we may require written approval (in a form and content acceptable to us) from each owner of the account.  Please let us know in advance if you anticipate using a power of attorney.  Upon request, we may provide you with a power of attorney form for use with your account.  We generally will accept a Uniform Statutory Form Power of Attorney which complies with the California law.  We may require reconfirmation to accept other forms of powers of attorney, however, with or without cause.

Your power-of-attorney will continue in effect until you advise us in writing (at your branch of account) that it is revoked or is otherwise no longer effective.  You agree that we may act on the instructions of your attorney-in-fact whether or not the attorney-in-fact relationship is noted in the instruction (e.g., on any check signed by the attorney-in-fact).  We may refuse to accept or act upon a power-of-attorney which was executed by you more than two years previously.

A power-of-attorney acceptable to the Bank, which is given by one owner of a joint account, will be effective unless another owner of the account objects or provides conflicting instructions.  If such is the case, we may exercise our right to freeze the account in question until resolution.

We may require verification from a licensed physician indicating that you are/were capable of executing the Power of Attorney.  This existence of this right shall not be deemed to create any duty to demand such verification.

Presentation of Certificate

We may waive or require the presentation of certificates for withdrawals or other transactions involving accounts.

Protecting Your Account

Your duty of reasonable care in protecting your account includes an obligation to maintain your unused checks, account documentation, and any Personal Identification Number (PIN) in a safe and secure area.

We may not be liable to you if you negligently fail to protect your checks, and as a result, funds are paid from your account improperly.  You should always promptly and carefully examine account statements when you receive them.  You agree that you will not entrust the writing of checks and the reconcilement and review of account statements to the same person without your frequent monitoring.  You are still responsible for reviewing the statement yourself to look for improper or unauthorized signatures on items, missing signatures, alterations, forged endorsements, overpayments, unauthorized transactions of any sort or other irregularities.  You must report irregularities, including unauthorized signatures and alteration to us, or we will assume that all transactions are accurate and your statement is correct.

You agree not to disclose your PIN to any other person and maintain the habit of changing your PIN from time to time to prevent access to your account.

You understand and agree to take precautions to have preordered (blank) checks received by you in a secure manner and to maintain and store your checks where they are not accessible to unauthorized persons.  You agree to destroy any surplus check stock that you do not intend to use.  Make sure that when writing checks, your numbers are readable and that they begin as far to the left side of the line as possible so additional numbers cannot be easily inserted.  Sign your checks clearly, as illegible signatures are easily forged.  We may not be liable to you if you negligently write your check, and as a result, funds are paid improperly from your account.

We reserve the right to deny a claim for monetary loss due to forged, altered, or unauthorized checks or transactions if you fail to follow these precautions.  If you feel there is an error in your statement or that a withdrawal on your statement was for an incorrect account or was unauthorized, please contact us immediately.  Different rules apply to certain electronic transactions.

Remotely Created Checks

If you provide your account number to a third party in order to charge your account by means of one or more remotely created checks (i.e., items which do not bear your actual signature, but purport to be drawn with your authorization), you authorize us to pay such checks, even though they do not contain your signature.  This provision shall not obligate us to honor remotely created checks.  We may refuse to honor such checks without cause or prior notice, even if we have honored similar items previously.

You may not deposit remotely created checks to an account with us without our prior, express written consent.  You agree to indemnify, defend and hold us harmless from every loss, expense and liability related to a claim that such checks were not authorized (e.g., as to their amount and payee) by the persons on whose accounts the checks were drawn.

If you deposit such checks with us, you agree that we may withhold a portion of the proceeds of such checks or other funds in your account, in a reserve account, in an amount that we reasonably believe may be needed to cover future chargebacks, returned items, and/or claims that such checks were unauthorized.  You grant us a security interest in the reserve account.  Unless we agree otherwise in writing with you, reserve funds shall not bear interest.  Our right to charge your account for returned checks will not be limited by the balance or existence of any reserve.  Our rights with respect to the reserve, as well as the security interest granted to us, shall survive the termination of this agreement.  We may discontinue accepting remotely created checks at any time without cause or prior notice.

Returned Items/Transactions

If we are notified that an item you cashed or deposited is being returned unpaid, we may attempt to re-clear the item, place a hold on the funds in question (see "Funds Availability"), or charge your account for the amount (and any interest earned on it), whether or not the return or notice of non-payment is proper or timely.  This also applies to checks drawn on us which are not paid for any reason, and to checks that are returned to us in accordance with any law, regulation or rule (including a clearinghouse rule).  We may assess a fee for each returned item (See Appendix A: Account Terms and Conditions, Schedule of Fees and Charges) and notify you of the return orally or in writing.

If we receive an affidavit, or a declaration under penalty of perjury, from a person purporting to be the true payee or endorser, stating that an endorsement on an item deposited to your account is forged (or the item contains an alteration), we may charge the item back against your account or place a hold on the funds pending an investigation, without prior notice to you.  (Please see section titled "Unauthorized Check Transactions" for more details).

Any credit we may give you with respect to an automated clearinghouse entry is provisional until we receive final settlement for the entry.  If we do not receive final settlement, you understand and agree that we may charge your account for the amount, and that the party making payment to you (i.e., the originator of the transfer) shall not be deemed to have paid you the amount of the transfer.

If the Bank is required to reimburse the United States government for all or any portion of any benefit payments deposited through a direct deposit plan into your account for any reason, you agree that the Bank may, without prior notice to you, deduct the amount returned to the United States government from your account or any other account(s) you have with us.  This right is in addition to any other rights the Bank has under this agreement, including our right of setoff.  If there are insufficient funds available to repay the amounts claimed by the United States government, any joint account owner or the estate of any deceased account owner will remain liable for the amounts reimbursed by the Bank.

Right of Setoff

We may charge or setoff funds in your account for any direct, indirect and/or acquired obligations which any owner owes us, to the fullest extent permitted by law and regardless of the source of the funds in the account.  This provision does not apply to IRA or tax-qualified retirement accounts or where otherwise prohibited by law.  The Bank may use account funds to pay your debts and obligations to us even if the setoff results in an early withdrawal penalty or the dishonor of checks.  If your account is a checking or money market account, when we exercise our right of setoff, our duty to pay any check(s) presented for payment on your account during the business day preceding the day on which the setoff occurred may be terminated, and we have the right to return those checks unpaid without incurring liability.  If we do return checks, we also may charge a non-sufficient funds fee for each returned check or item.  We will inform you promptly by mail if we exercise our right of setoff.

Safe Deposit Box Rental

Rental of a Safe Deposit Box is contingent on maintenance of a deposit account relationship at the Bank with an average daily balance of at least $1,000.00.

Rental and Fees

The rent for your Safe Deposit Box is annual and must be paid in advance.  Current rental rates are shown in Appendix A: Account Terms and Conditions, Schedule of Fees and Charges.  Your rental will be renewed annually unless you give us written notice that you will no longer use the box, or if we terminate the rental agreement by returning or offering to return to you the rent for the unexpired term of the rental.

If your rent is unpaid, we may deny you access until your rent is paid.  If your rent is unpaid more than 30 days past due, you authorize us to deduct the rent and late fee from any deposit account on which you are a signer.  If your rent remains unpaid for six months, the Bank may, after following certain notification procedures, force your box open and may retain and ultimately sell the contents in accordance with applicable provisions of the California Financial Code.  You agree that we continue to have a lien on all contents of the box for any rent or other amount that you may owe us.

A deposit is required for your keys which is payable in advance.  The deposit for your keys will be placed in a noninterest- bearing account and will be returned to you when you surrender your box and return both of your keys.

Your box may not be sublet or your rental transferred to another person.

Unclaimed Property

We may be required to turn over Safe Deposit Box contents, or the proceeds from the sale of such property, to the state of your last known address for the period specified by state law after the:

  •  Expiration of the rental period,
  •  Termination of any rental agreement, or
  •  Your box remains in a delinquent payment status.

Notices

Any notices to you relative to your Safe Deposit Box must be in writing and personally delivered or sent to you addressed to your last known address, as shown on the Bank's records.  Notices to you will be effective when delivered or sent to you, whichever is earlier.  You agree to promptly give written notice to the Bank of any changes of address.  Notices from you will be effective at such time as the Bank has had a reasonable time to act upon the notice after it is received.  Unlike deposit accounts, the Bank will not hold for pickup any Safe Deposit Box information or notices.

Access to Your Safe Deposit Box

If you rent your box as an individual renter, only you will have access privileges, unless you have granted another individual a Power of Attorney to access the box.

If you rent your box as co-renters, we will follow the instructions for access to the box on the signature card.  If the designated number of you is not present, we will not allow you entry.

You shall have access to the box during the Bank's normal business hours, subject to satisfying the Bank's requirements as to identification.  However, access may be refused whenever the Bank reasonably determines that access to the box or vault jeopardizes the security thereof, such as during an emergency.  The Bank may also deny access to the box if, in its discretion, it believes that there are conflicting claims to the contents therein or if it is so compelled by legal process or by law.  If we are forbidden to allow access to your box due to a legal order, the box may be closed to any access until the legal action is resolved or the order is withdrawn.

Procedures for Admission to Box

The following procedures must be observed for admission to your box:

  •  An attendant must accompany you into the vault.
  •  An attendant must lock and unlock your Safe Deposit Box.
  •  You must open your container and examine its contents in the area provided for this purpose.
  •  You must remove and replace your container yourself.  We will assist you when asked, but we can assume no liability if we help.

Deposit Box

Your Safe Deposit Box is guarded by two locks, both of which must be unlocked before the box can be opened.  One can be opened only by you, the other by our attendant.

The Bank takes no responsibility for any property placed in the box.  You understand that while the Bank takes all reasonable and customary steps to assure that unauthorized access to the box does not occur and the contents of the box are not damaged, you agree the Bank shall not be responsible for any damage to or loss of any of the contents of the box occasioned by circumstances beyond the Bank's control, such as fire, flood, robbery or other unauthorized access, so long as the Bank has taken reasonable and customary steps to prevent such loss.  You shall insure the contents of the box in the amount you deem appropriate.

Lost Keys

You will receive 2 (two) keys for the box and agree that return of the key deposit will not be made until all keys are surrendered to the Bank.  If a key is lost, any other key for the box shall be immediately surrendered to the Bank and a new box shall be assigned to you or a new lock shall be installed on your box.  You agree to reimburse the Bank for any expenses it incurs in reissuing keys and in forcing entry into the box if all keys are lost.  You understand that, for your protection, the Bank does not keep duplicate keys.

Other Important Information

We will use reasonable care to prevent any unauthorized person from gaining admission to your box, but we have no further responsibility to you concerning its contents.  You agree not to place in the box any material or substance which could cause damage to the box, any other box in the vault or the vault itself.  Our relationship with you is that of landlord and tenant, not bailor and bailee.

You agree that we will not be liable to you if any unauthorized person opens your box, as long as we have used ordinary care in preventing such an occurrence.  It shall not be presumed that an unauthorized person opened your box simply because you claim something is missing.  You agree that, in the event of any loss or damage to your box or its contents, we will not be liable to you for: (a) any consequential, special or incidental damages; (b) any loss or damages caused, directly or indirectly, in whole or in part, by your negligence or failure to abide by these terms; or (c) any loss resulting from an accident, fire, flood, water damage (including damage from fire suppression systems), mold, tarnish, rust, insects, burglary, civil unrest, war, acts of God, or any cause which is beyond our reasonable control.  If we are liable to you for any loss or damage, we may (a) pay you the face value or fair market value of the items (valued as of the date of the loss), or (b) replace the items.  NOTWITHSTANDING ANY TERMS OF THIS AGREEMENT TO THE CONTRARY, YOU AGREE THAT OUR LIABILITY FOR ANY LOSS OR DAMAGE TO YOUR BOX OR ITS CONTENTS, HOWEVER OCCURRING, SHALL NOT EXCEED $5,000.  IF YOU WANT TO INSURE WHAT YOU KEEP IN THE BOX, YOU SHOULD CONTACT AN INSURANCE COMPANY.  We do not insure the contents of your box.  We assume no responsibility to others with respect to any property that you may store for them in your box.

In Case of Death

We should be notified in writing of the death of anyone who has access to your box.  After receiving written notice of death, we will release the contents of your box as follows:

  •  If your box is rented by you alone, or as a co-renter with another person or persons requiring multiple signatures for access, the contents will be released to your executor, administrator, or legal representative or to one of your heirs who has followed the applicable law for probate of a decedent's estate, and to the surviving co-renter(s) (if applicable).
  •  If your box is rented with another person or persons, the contents will be released to the surviving co-renter(s), your executor, administrator, or legal representative or to one of your heirs who has followed the necessary probate steps.

Note: If the box is rented to a corporation or association, access by surviving signers will not be limited by reason of the death of one of the signers.

Power of Attorney

You may grant a Power of Attorney to another person to access the box.  The written appointment of your Attorney-in- Fact may be made on the form we provide.  Any other form of Power of Attorney must comply with the requirements of California law and is subject to review by the Bank before access to your box will be permitted.  We recommend that your Attorney-in-Fact be introduced by you in person at the Branch office where your box is maintained.

If a personal introduction to your Attorney-in-Fact is not possible, we will ask you to submit signed, written instructions directing us to allow safe deposit box access to your Attorney-in-Fact, along with certain information about that person.  However, we are under no obligation to question the validity of your signature or the instructions, or the accuracy of the information provided, and we cannot be held responsible for any adverse consequences for following your instructions in good faith.  We have the right to require your Attorney-in-Fact to provide satisfactory identification.

Cancellation of Rental Agreement

We reserve the right to cancel your rental at any time by sending written notice to the address you have given us and by refunding the rent for any unexpired portion of the rental term.  If we cancel your rental agreement or your rent is overdue for 6 months or more, we may open the box forcibly not less than 30 days after we notify you in writing of our intention to do so.  This written notice may be given to you in person or sent to the address you have provided.  If this happens, we will open your box only in the presence of two bank employees.  We will hold the contents in custody until you pay the overdue rent, plus the cost of opening the box and storing the contents.  If you do not call for the contents of the box, we will dispose of them as the law allows or requires.  If you cancel the rental, you may forfeit the unearned portion of the rent.

Severability

If any of the provisions of this Agreement are determined to be void or invalid, the remainder of the Agreement shall remain in full force and effect.

Signature Cards

The signatures on the signature card may be used from time to time to verify the signatures on items drawn on the account.  You agree to notify us if you will be using facsimile signatures for your account(s).  The Bank will not be liable to you for refusing to honor checks or other written instructions if the Bank believes, in good faith, that any signature on such checks or instructions is not genuine or authorized, or if you have materially altered your signature without expressly notifying the Bank.

Signature Guarantee

(Not available in all locations)

Our Securities Transfer Agents Medallion Program (STAMP) Signature Guarantee service is available for securities transactions by appointment from 9:00 a.m. to 5:00 p.m. on the Bank's business days to mortgage loan customers of any duration, or deposit account customers who have maintained their account satisfactorily for six months.  To schedule an appointment, contact the Customer Service Department at the branch where your account is held.

Stale-Dated Checks

You agree that we may pay or reject a check which is presented to us for payment more than six months after its date (a "stale-dated" check), even if the presentation occurs after the expiration of a stop payment request.  We normally do not examine the date on checks presented for payment.  You agree that we are not required to identify stale-dated checks or to seek your permission to pay them.

Statements, Notices, and Checks

If we provide you with a notice or statement, electronically or otherwise, you must promptly and carefully review it to determine if any errors or problems exist.  You agree to notify us immediately of any error, discrepancy or unauthorized transaction you discover on any statement, notice or check.  A statement will be considered correct and check images genuine if you have not reported errors or omissions within 30 (thirty) days.  All deposits and credits are subject to final payment.  If you are a business, you agree not to entrust the writing of checks and the reconcilement and review of your account statements and notices to the same person without frequent monitoring.  We may deny a claim for monetary loss due to forged, altered or unauthorized checks if you fail to follow these procedures.

Statements are normally mailed to the last address listed with us for your account.  If you ask us to hold statements and notices for you, we may mail them to you or destroy them if they are not picked up within 60 days.  Notify us promptly if you do not receive your statement by the date you normally would expect to receive it.

If you receive your statement notification via email, and the email is returned to us, we may cancel electronic delivery of your statements and mail them to the last address listed with us for your account.  If this occurs, you may need to reapply for electronic statements.

Statements and notices sent or made available to any of you are deemed to be received by all of you.  If we hold them at your request or because you fail to provide us with a current address, they will be deemed delivered to you when they are prepared (for held statements), mailed (for returned mail), or otherwise made available to you.  We may hold statements if the Post Office notifies us that your mail is undeliverable.  At our discretion, we may destroy mail that is returned to us or determined to be undeliverable.  (For fees on held statements see Appendix A: Account Terms and Conditions, Schedule of Fees and Charges).

We may, at our discretion, automatically combine statements on like-ownership accounts.

When we inform you of changes affecting your rights and obligations, we do so by delivering or otherwise making a notice available to you.  In some cases we may post a notice of change in our branches or on our website.  We may mail the notice to you at the last address we show for your account, or if we have agreed on this method, we may provide it to you electronically.  We may provide a notice as a message on your account statement or as an insert to your statement.

Stop Payment Requests

A stop payment on a check is valid for only one-hundred eighty days (180 days) from the date of a stop payment request.  If the check is presented after that date it may be paid unless the stop payment order has been renewed.  A stop payment on an EFT/ACH debit is valid until the presentment of one debit entry or the withdrawal of the stop payment order by you.  If you want the debit permanently stopped, you must have first revoked your authorization by notifying the Originator of the debit in the manner specified in the authorization.  (See How to Revoke Preauthorized Transactions from Your Account).

Any owner or authorized signer on your account may request us to stop payment on a check or ACH debit, even if that person was not the maker of the check or the one who authorized the ACH debit.  Your stop payment request must include sufficient information for us to positively identify the item (i.e., the EXACT amount (dollars and cents) AND the account number, check number, check date, and the name of the payee).  We will not be liable for paying an item over a stop payment request if the request is incomplete or incorrect.

Stop payment requests must be received by us at a time, and in a manner which affords us a reasonable opportunity to act upon them.  If the item is a check, the request must be received prior to any applicable cutoff hour and the Bank must have a reasonable time to act on the request prior to the cutoff hour.  If the item is an ACH debit, the request must be received by the Bank at least three (3) business days before the scheduled payment date.  You may also be able to stop payment on certain other electronic transfers, such as those you authorize individually by telephone or on the Internet, or transactions resulting from conversion of your checks, provided you notify us in time for us to act on your request.

The request will not be effective if we have already cashed the check or are already committed to honor or pay the item under applicable laws, regulations or rules governing checks or ACH items.  You may not stop payment on electronic point-of-sale, ATM or VISA® Debit Card transactions, debits to your account for cashier's checks, certified checks, teller's checks, or payments guaranteed by us.  Under certain circumstances, however, you may be able to claim a refund on lost, stolen or destroyed cashier's checks 90 days following the date of their issuance.

In the case of an ACH debit, you understand that the originator has the capability to change the amount of the debit and that the Bank may not be able to stop any ACH debit other than one conforming EXACTLY to the description you have given; however, you will be entitled to challenge the debit by filing an Electronic Funds Transfer Error Notification within 60 days after the date your statement is made available to you (See How to Report Unauthorized Transactions and Resolve Errors or Questions).

For checks only, unless renewed, the stop payment request may be disregarded one-hundred eighty days (180 days) after the date it is received by the Bank.  The request will be cancelled if the account is closed or transferred.  Even if the account is later reopened, a new request must be given.

There is a charge for each stop payment request and renewal.  Stop payment requests for checks are valid for 180 days, whether written, oral, or electronic.  After that time, the check may be paid and charged to your account unless you renew the stop payment request for an additional fee.

We may accept oral, written, electronic, or telephone stop payment requests.  If we elect to act upon an oral stop payment request, you agree that upon confirmation at the completion of your request session, you will notify us if you do not agree with the request.  Our records will be conclusive evidence of the existence, details of, and our decision, regarding any stop payment request or its revocation.

If we pay an item on which there is a valid and timely stop payment request, we may be responsible to you for up to the face amount of the item if you can establish that you suffered a loss because we paid the item.  If we re-credit your account after paying an item over a valid and timely stop payment request, you agree to transfer to the Bank all of your rights against the payee or other holder of the item, to submit a signed statement describing the dispute with the payee or holder, and to assist the Bank in any legal action taken against that person in the future.  Anyone holding the item, including the Bank, may be entitled to enforce payment against you despite the stop payment request.

You agree to defend, indemnify and hold the Bank harmless from any liability, expense, loss or damage, (including attorney's fees and court costs) incurred as a result of the Bank's compliance with your instructions to stop or delay payment (collectively "Expenses") and you agree to reimburse the Bank for the amount of all Expenses incurred upon demand.  At the Bank's option, Expenses may be charged against any account you maintain at the Bank, whether or not a demand has previously been made.

Online Bill Payment (Checks Only)

You must contact Customer Service at (800) 359-BANK (2265).  The Bank can only stop payment for an online bill payment that is in the form of a check and the check has not cleared your account.  The Bank must have a reasonable opportunity to act on any stop payment request after the payment has been processed.  Although the Bank will make every effort to accommodate your request, the Bank will have no liability for failing to do so.  There is a charge for each stop-payment order you give (See Appendix A: Account Terms and Conditions, Schedule of Fees and Charges).

Subaccounting

For each checking account, Fremont Bank may establish a master account and two subaccounts.  All information that is made available to you about your account will be at the master account level.  The subaccounts are comprised of a savings subaccount and a checking subaccount.  On the first day of each month, Fremont Bank will allocate funds between the two subaccounts, as it deems appropriate.  Items received by Fremont Bank that are drawn against your master account will be presented for payment against the checking subaccount.  Funds will be transferred from the savings subaccount to cover items presented against the checking subaccount as may be needed.  On the sixth transfer from the savings subaccount during a statement period all of the funds on deposit in the savings subaccount will be transferred to the checking subaccount for the remainder of the statement period.  If your checking account earns interest, the use of subaccounts will not affect the interest you earn.  If it does not earn interest, no interest will be paid on either subaccount.

Substitute Checks and Your Rights

Important Information About Your Checking Account

You agree not to deposit substitute checks (described below) or checks bearing a substitute check legal equivalence statement ("This is a legal copy . . .") to your account without our prior written consent.  Unless we agree otherwise in writing, our acceptance of such checks shall not obligate us to accept such items at a later time, and we may cease doing so without prior notice.

If we allow you to deposit substitute checks, you agree to indemnify, defend and hold us harmless from all losses, costs, claims, actions, proceedings and attorney's fees that we incur as a result of such checks, including without limitation, any indemnity or warranty claim that is made against us because: (a) the check fails to meet the requirements for legal equivalence, (b) a claimant makes a duplicate payment based on the original check, the substitute check, or a paper or electronic copy of either; or (c) a loss is incurred due to the receipt of the substitute check rather than the original check.  Upon our request, you agree to provide us promptly with the original check or a copy that accurately reflects all of the information on the front and back of the original check when it was truncated.

You agree not to issue checks with features or marks that obscure, alter or impair information on the front or back of a check or that otherwise prevents us or another bank from capturing such information during automated check processing.

What Is a Substitute Check?

To make check processing faster, federal law permits banks to replace original checks with "substitute checks."  These checks are similar in size to original checks with a slightly reduced image of the front and back of the original check.  The front of a substitute check states: "This is a legal copy of your check.  You can use it the same way you would use the original check."  You may use a substitute check as proof of payment just like the original check.

Some or all of the checks that you receive back from us may be substitute checks.  This notice describes rights you have when you receive substitute checks from us.  The rights in this notice do not apply to original checks or to electronic debits to your account.  However, you have rights under law with respect to those transactions.

What Are My Rights Regarding Substitute Checks?

In certain cases, federal law provides a special procedure that allows you to request a refund for losses you suffer if a substitute check is posted to your account (for example, if you think that we withdrew the wrong amount from your account or that we withdrew money from your account more than once for the same check).  The losses you may attempt to recover under this procedure may include the amount that was withdrawn from your account and fees that were charged as a result of the withdrawal (for example, bounced check fees).

The amount of your refund under this procedure is limited to the amount of your loss or the amount of the substitute check, whichever is less.  You are also entitled to interest on the amount of your refund if your account is an interest-bearing account.  If your loss exceeds the amount of the substitute check, you may be able to recover additional amounts under other law.

If you use this procedure, you may receive up to $2,500 of your refund (plus interest if your account earns interest) within 10 business days after we received your claim and the remainder of your refund (plus interest if your account earns interest) not later than 45 calendar days after we received your claim.

We may reverse the refund (including any interest on the refund) if we later are able to demonstrate that the substitute check was correctly posted to your account.

How Do I Make a Claim for a Refund?

If you believe that you have suffered a loss relating to a substitute check that you received and that was posted to your account, please contact us at:

Fremont Bank, Attn: Research 2501SA

P.O. Box 5101, Fremont, CA  94537

You must contact us within 40 calendar days of the date that we mailed (or otherwise delivered by a means to which you agreed) the substitute check in question or the account statement showing that the substitute check was posted to your account, whichever is later.  We will extend this time period if you were not able to make a timely claim because of extraordinary circumstances.

Your claim must include --

  •  Your name and account number, and a description of why you have suffered a loss (for example, you think the amount withdrawn was incorrect);
  •  An estimate of the amount of your loss;
  •  An explanation of why the substitute check you received is insufficient to confirm that you suffered a loss; and
  •  A copy of the substitute check and/or the following information to help us identify the substitute check:  identifying information, (for example the check number, the name of the person to whom you wrote the check, the amount of the check including exact dollars and cents, and  the date of the check).

Telephone and Electronic Communication Monitoring/Recording

We sometimes monitor, record and retain telephone conversations, electronic communications, and other data transmissions for quality and control purposes and   we generally do not record conversations without notice to you.  If we do record, we do not have to keep the recordings, unless otherwise required by law.  YOU ACKNOWLEDGE AND AGREE ON BEHALF OF YOURSELF, YOUR EMPLOYEES AND YOUR AGENTS, THAT WE MAY MONITOR AND RECORD COMMUNICATIONS AT ANY TIME WITHOUT FURTHER NOTICE TO THE PARTIES TO SUCH COMMUNICATIONS.

Telephone Instructions

At our discretion, we may accept telephonic instructions from you in connection with your account.  Our understanding of instructions and our records shall be conclusive evidence of the actual instructions given.  We are not required to accept instructions or permit withdrawals by telephone, and this does not constitute an agreement by us to do so.  Telephone transactions involving certain accounts are also subject to transaction limitations.

Termination/Closing Your Account

Any authorized signer(s) may close your account at any time, with or without cause.  We are not required to provide notice of such closure to any other authorized signer(s) on the account.  We may automatically close your account if the account balance is zero.  A charge on certain accounts will be imposed if they are closed within six (6) months (See Appendix A: Account Terms and Conditions, Schedule of Fees and Charges).  We reserve the right to collect any and all accrued service charges and fees for the current statement period.

At our sole discretion, we reserve the right to require the signatures of the same number of account owners and authorized signers as are required to draw a check before closing an account.

We may terminate your account relationship with us at any time, with or without cause, by giving oral, electronic or written notice to any of you.  If the funds are not withdrawn, we may send a check for the collected account balance to any of you at the last address we have on file for the account.  Thereafter, the funds may stop earning interest (even if the check is returned or remains uncashed for any reason).

We may report information regarding the history of your account to an account verification service or a credit-reporting agency, and that company may make information reported to it available to other financial institutions and to other credit reporting agencies.  Should you dispute the information reported, you may write to us at:

Fremont Bank, P.O. Box 5101 Fremont, CA 94537-5101

We may dishonor any check, item, or transaction presented for payment after an account is closed.  At our sole discretion, we may honor checks, items, and orders presented or occurring after an account is closed if the transaction is guaranteed by us to third parties (e.g., under a check guarantee or as part of an electronic fund transfer arrangement) or you fail to give us a timely stop payment request for any outstanding checks.  You remain responsible for such items and transactions which may be treated as overdrafts.

Transfers/Assignments

Unless otherwise agreed by us in writing, all accounts are nontransferable and non-negotiable.  You may not grant, transfer or assign any of your rights to an account without our prior written consent.  We are not required to accept or recognize an attempted assignment of your account or any interest in it.

Unauthorized Check Transactions

If you discover a check forgery, alteration or other unauthorized transaction involving your account, you agree to notify us immediately by telephone, followed promptly by a written notice to your branch of account of the relevant facts.  You agree to maintain a current check register and to carefully and promptly review all statements and notices we send or make available to you.

You are in the best position to discover and report an unauthorized charge to your account.  If you fail to notify us within a reasonable time (not exceeding 21 days after your statement date), of an unauthorized signature, alteration, forgery, counterfeit check, or other unauthorized debit to your account, we will not be responsible for subsequent unauthorized transactions by the same wrongdoer if we act in good faith.  Without regard to care or lack of care of either you or us, if you do not discover and report an unauthorized signature, alteration, forgery, counterfeit check, or other unauthorized debit to your account within 60 days after the date of your statement or the date information about the item or transaction is made available to you, whichever is earlier, you are precluded from asserting the unauthorized transaction against us.  (Note: Different notification and liability rules apply to certain electronic fund transfers).  See Electronic Funds Transaction section.

If you claim a credit or refund because of an unauthorized transaction, you agree to provide us with a declaration containing whatever reasonable information we require regarding your account, the transaction and the circumstances surrounding the claimed loss.  We must receive your declaration within 10 days of our request.  You also agree to make a report to the police and to provide us with a copy of the report, upon request.  We will have a reasonable period of time to investigate the circumstances surrounding any claimed loss.  During our investigation, we will have no obligation to provisionally credit your account, unless otherwise required by law (e.g., in connection with certain consumer electronic fund transfer services).

Our maximum liability will never exceed the amount of actual damages proven by you.  Our liability will be reduced: (a) by the amount of the loss that is caused by your own negligence or lack of care; (b) to the extent that damages could not have been avoided by our exercise of ordinary care; and (c) by any loss recovery that you obtain from third parties (apportioned in accordance with this provision).  We will not be liable for any loss that is caused in part by your negligence if we acted with ordinary care.  Unless otherwise required by law, we will not be liable for incidental, special or consequential damages, including loss of profits and/or opportunity or for attorney's fees incurred by you, even if we were aware of the possibility of such damages.

You agree to pursue all rights you may have under any insurance policy you maintain in connection with any loss associated with your account and to provide us with information regarding coverage.  Our liability will be reduced, proportionately in accordance with our responsibility for any loss, by the amount of any insurance proceeds you receive or are entitled to receive for the loss.  If we reimburse you for a loss and the loss is covered by insurance, you agree to assign us your rights under the insurance policy to the extent of our reimbursement, in accordance with this provision.

(Note: Different notice and liability rules apply to certain electronic fund transfer transfers).  See Electronic Funds Transaction section.

Waivers

We may delay enforcing our rights under this agreement without losing them.  Any waiver by us shall not be deemed a waiver of other rights or of the same right at another time or of the same right with respect to other customers.  You waive diligence, demand, presentment, protest, and notice of every kind, except as set forth in this Agreement.

Wire and Other Funds Transfers

The following provisions apply to payment orders governed by Division 11 of the California Commercial Code (e.g., wire transfers, telephone transfers, and ACH transactions involving business accounts).  They do not apply to the transactions described in the "Electronic Funds Transactions" section of this booklet or to payments by check, draft or similar instrument.  If you have a separate agreement with us with respect to payment orders, the terms of that agreement will supersede any conflicting terms in this Agreement.

Processing Hours

Our processing hours for payment orders vary from office to office and by method of delivery of the request.  Information about our processing hours is available upon request.

Any payment order request, or notice amending or canceling such request, which we receive after our processing cutoff hour, may be treated as if received on our next funds transfer business day.

Payment Orders

An instruction to us to pay (or cause another bank to pay) money to a beneficiary is a "payment order," sometimes referred to as a funds transfer request.  Wire transfers are an example of a payment order.  There are several different methods that can be used to initiate a payment order, including personal appearance at a branch (where you can complete a Funds Transfer Instruction Form).  For business transactions, we also make Online Banking available and we recommend that it be used.  Online Banking is a personal computer web-based service that offers a number of security procedures to detect unauthorized payment orders, and allows you to choose a security procedure that is commercially reasonable for the size, type and frequency of your normal payment orders.  If you refuse to use Online Banking for your business transactions, you agree that you will be bound by any payment order, whether or not authorized, issued in your name and accepted by us in compliance with whatever security procedure is chosen by you.  You understand that your decision not to use Online Banking increases the risk of an unauthorized payment order, and agree to accept any losses that may result from them.  You understand that nothing in this paragraph obligates us to accept (or refuse) payment orders from you.

Rejection of Payment Orders

We may reject any payment order without cause or prior notice.  We may notify you of any rejection orally, electronically, or in writing.  We shall not be liable to you for any rejection, and we are not obligated to pay you interest for the period prior to the time you receive notice of the rejection.  We will notify you of a rejection no later than the business day after the transfer would have been transmitted by us (or, for incoming and "on us" transfers, on the payment date or our next business day, whichever is later).

Payment Order Accuracy

You must accurately describe the beneficiaries of your payment orders and the financial institutions of your beneficiaries.  If you identify intermediary banks in your payment order requests, they also must be described accurately.  If you describe any beneficiary or institution inconsistently by name, bank identifier or account number, we and other institutions may process the order solely on the basis of the account number, even if the order identifies a person or entity different from the named beneficiary or entity.

ACH Provisional Credits

Credit for an ACH transfer is provisional until the receiving financial institution obtains final settlement.  If final settlement does not occur, the originator of the transfer is not deemed to have made payment to the beneficiary, and the beneficiary's bank is entitled to a refund of the provisional credit.

If we give you provisional credit for an ACH transfer, but do not receive final payment, you become obligated to us for the full amount without prior notice or demand.

Notices

Under the Operating Rules of the National Automated Clearing House Association, which are applicable to ACH transactions involving your account, we are not required to give next day notice to you of an ACH transfer and we will not do so.  However, we will continue to notify you of the receipt of transfers in the periodic statements we provide to you.  You can also contact our Customer Service Center between the hours of 8:00 a.m. to 7:00 p.m., Monday through Friday, or your office of account during normal business hours, to determine if a transfer has been credited to your account.

Funds Transfer System Rules

Except as otherwise set forth in this Agreement, you agree to be bound by all ACH and Federal Reserve rules and regulations which apply to a domestic funds transfer.  International funds transfers are covered in a separate agreement.  You agree not to violate the laws of the United States, including without limitation, the economic sanctions administered by the U.S. Treasury's Office of Foreign Asset Control (OFAC).

Transfers to Your Account on Behalf of Third Parties

If you know that a third party intends to receive a payment order which will be sent to us in care of your account(s), you agree to immediately notify us in writing of the proposed incoming funds transfer.  You also agree to notify the intended recipient that we are under no obligation to accept such a payment order and may, in fact, reject it at our sole discretion and without notice to you or the intended recipient.

Cancellation and Amendment of Funds Transfers

Neither you nor any other person has a right to cancel or amend any payment order after we have received it.  Although we may attempt to act on any amendment or cancellation request you make (e.g., if it is received in a time and manner, which permits us to do so), we assume no responsibility for failing or refusing to do so, even if we could have effected the change or cancellation.  Furthermore, unless otherwise agreed by us, neither you nor any other person shall be able to cancel or amend any incoming payment order we credit to your account.  You agree to indemnify, defend and hold us harmless from any loss, damage, claim, action, and liability that results, and any charges and costs we incur, in connection with any request by you to amend or cancel a payment order.

Erroneous Funds Transfer

If you give us a payment order (including an amendment or cancellation request) which is erroneous in any way, you agree to pay the amount of such payment order whether or not the error could have been detected by any security procedure.  You understand that our security procedures are not designed to detect errors (e.g., duplicate payments).

Should the Bank detect an error on one or more occasions, it shall not be construed as obligating the Bank to detect errors in any future payment order.

Unauthorized Funds Transfer

We may process any payment order (including an amendment or cancellation request) we believe is transmitted or authorized by you if we act in compliance with a security procedure agreed upon by you and us.  Such payment orders will be deemed effective as if made by you, and you will be obligated to pay us the amount of such orders, even though they are not transmitted or authorized by you.  Unless we agree on another security procedure, you agree that we may confirm the authenticity and content of payment orders (among other ways) by placing a call to any of you.  If we cannot reach you, or if the payment order is not confirmed or approved in the manner we require, we may refuse to execute the payment order.

Notice of Erroneous or Unauthorized Funds Transfer

You agree to notify us immediately if you discover: (i) any error or discrepancy between your records and any notice or statement you receive from us, or (ii) any transfer you believe was not authorized by you.

If you fail to notify us immediately of such discovery of any, error, discrepancy or unauthorized transfer within fifteen days following our first sending or providing you a notice or statement which contains evidence of such error, discrepancy, or unauthorized transfer, you agree that, in addition to any other limitations on our liability: (a) in the case of an erroneous funds transfer, you will be liable for all losses up to the amount thereof (as well as any loss of interest), which result from your failure to give us such notice or which might have been prevented by your giving us such notice; and (b) in the case of an unauthorized funds transfer, we will not be liable for any loss of interest which results from your failure to give us such notice or which might have been prevented by your giving us such notice.

Circumstances Excusing Action or Omission

We shall not be liable for any failure or delay in processing a payment order which occurs, directly or indirectly, as a result of any strike, interruption of communication facilities, computer or equipment failure, labor dispute, fire, flood, earthquake, other acts of God, war, riot, emergency condition, the actions or omissions of third parties, or any cause which is beyond our reasonable control.  You agree that we may refuse to process or delay processing any payment order if the order would violate any guideline, rule, policy, or regulation of any government authority or funds transfer system.

Limitation of Liability

Our liability for any act or failure to act shall not exceed any direct resulting loss, if any, which you incur and payment of interest.  UNLESS OTHERWISE REQUIRED BY LAW, WE SHALL NOT BE LIABLE FOR ANY CONSEQUENTIAL, INDIRECT OR SPECIAL DAMAGE WHICH YOU MAY INCUR IN CONNECTION WITH FUNDS TRANSFERS, including (without limitation) loss or damage from any wrongful dishonor resulting from our acts or omissions in connection with a funds transfer.

Security Procedure

We may require different security procedures depending on the method you use to initiate payment orders.  We may refuse to provide the service if you fail to follow security procedures established by us.  We may institute or change security procedures from time to time at our sole discretion.

Funding

You agree to provide immediately available funds prior to the date the payment order is requested.  We, at our option, may charge any of your accounts or make demand on you for immediate payment thereof. 

You authorize us to charge your account for any payment order we reasonably believe is authorized by you.  We are not obligated to honor a payment order which (1) exceeds your collected funds on deposit with us, (2) is not authenticated pursuant to the applicable security procedures or is not otherwise in accordance with this agreement, (3) we have reason to believe may not be authorized by you, (4) is incomplete or ambiguous, (5) involves funds subject to hold, dispute or legal process preventing their withdrawal, or (6) is otherwise deemed unsatisfactory to us in our sole discretion.

If there are insufficient funds in your account to cover your obligations under this agreement, you agree that we may debit any account maintained by you with us or that we may set off against any amount we owe you.  If we create an overdraft to complete a payment order, you agree to immediately repay us in the amount of the overdraft, whether or not demand is made, as well as any other applicable charges previously disclosed.

Payment orders executed by us and debited to an account will be reflected on your account statement.

Data Retention

You shall retain data on file adequate to permit reprocessing of payment orders and amendments to or cancellations of payment orders for thirty (30) days following the date of their execution by us upon our request.

Withholding of Income Tax

Unless you are exempt under federal law, we are required to withhold a portion of your taxable interest and certain other payments (this is referred to as backup withholding) if: (1) you fail to supply us, under penalties of perjury, with your correct taxpayer identification number (TIN); (2) you fail to provide us with the required certified information; (3) the IRS instructs us to withhold; or (4) the IRS notifies you that you are subject to backup withholding.  You must provide your TIN whether or not you are required to file a tax return.  You also must certify that you are not subject to backup withholding.

We may report interest and other payments to you to the Internal Revenue Service (IRS), along with your TIN.

We may refuse to open, and we may close, any account for which you do not provide a certified TIN, even if you are exempt from backup withholding and information reporting.  To avoid possible erroneous backup withholding, an exempt payee should furnish its TIN and indicate on the signature card that it is exempt.

A non-resident alien or foreign entity not subject to information reporting must certify its exempt status by completing an appropriate IRS certification form (e.g., W-8BEN).  Non-resident aliens may be required to certify their exempt status every three years (or earlier upon request) to avoid backup withholding.

You may be subject to civil and criminal penalties if you fail to provide us with a correct TIN or falsify information with respect to withholding.  For additional information on interest reporting and withholding, contact your tax advisor or the IRS.

How to Obtain a Taxpayer Identification Number (TIN)

If you don't have a TIN you can apply for one on Form SS-5, Application for Social Security Number Card, or Form SS-4, Application for Employer Identification Number, at the local office of the Social Security Administration or the IRS.

What Number to Give Us

For this type of account:                    Give the TIN of:

  1. Individual

The individual

  2. Two or more individuals (joint account)

The actual owner of the account or, if combined funds, the first individual on the account

  3. Custodian account of a minor (Uniform Transfers to Minors Act)

The minor

  4. The usual revocable savings trust (grantor is also trustee)

The grantor-trustee

  5. So-called trust account that is not a legal or valid trust under state law

The actual owner

  6. Sole proprietorship

The owner

  7. A valid trust, estate, or pension trust

Legal entity

  8. Corporate

The corporation

  9. Association, club, religious, charitable, educational, or other  tax-exempt organization

The organization

 10. Partnership, Limited Liability Company, or Limited Liability Partnership

The partnership, LLC or LLP

 11. A broker or registered nominee

The broker or nominee

  12. A public entity

The public entity

Payees Exempt from Backup Withholding

The following payees are exempt from backup withholding: (1)a corporation; (2) an organization exempt from tax under section 501(a), or an IRA, or a custodial account under section 403(b)(7); (3)  The United States or any of its agencies or instrumentalities; (4) a state, the District of Columbia, a possession of the United States, or any of their political subdivisions or instrumentalities; (5) a foreign government or any of its political subdivisions, agencies, or instrumentalities; (6) an international organization or any of its agencies or instrumentalities; (7) a foreign central bank of issue; (8) a dealer in securities or commodities required to register in the United States or a possession of the United States; (9) a real estate investment trust; (10) an entity registered at all times during the tax year under the Investment Company Act of 1940; (11) a common trust fund operated by a bank under section 584(a); (12) a financial institution; (13) a middleman known in the investment community as a nominee or listed in the most recent publication of the American Society of Corporate Secretaries, Inc., Nominee List; and (14) a trust exempt from tax under section 664 or described in section 4947.

Questions or Comments

If you have any questions or comments, you can contact us at:

Fremont Bank

PO Box 5101

Fremont CA 94537-5101

Or call us at:

(510) 792-2300 or

(800) 359-BANK (2265)

You may also visit us at www.fremontbank.com

As a community bank, we look forward to working with you to serve all your financial needs.  We are committed to superior service and if, for any reason, we should fail to exceed your expectations, please let us know.  We thank you for your continued support of Fremont Bank.

Note:  The fees, rates and benefits described in this booklet and in Appendix A: Account Terms and Conditions, Schedule of Fees and Charges were current as of the date of publication, but are subject to change.  You can obtain current information by calling us at the number set forth above.  Prices listed are subject to sales tax wherever applicable.
 


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