Your account(s) may not be transferred or reassigned without our prior written consent.
Right of Set Off
If you owe us money or are past due on any obligation to us, we can use the funds in any of your accounts with us to repay the amount you owe us, without going through any legal process or court proceeding. In other words, we reserve the right to set off any liability primary or secondary, direct or contingent, past, present or future, sole or joint – that you owe to us, against any individual or joint Deposit Account you have with us. To the extent that we charge your account, we are relieved from any liability in connection with the funds we use. Further, you grant us a lien on and security interest in the funds on deposit in each of your accounts as security for all of your liabilities and obligations to us, now or in the future. We will notify you if we have exercised our right of set off.
You agree to examine and reconcile your periodic statement upon receipt and promptly notify us by telephone or by email of any discrepancy or the unauthorized payment of any item. If you fail to do so, you will have to either bear the loss yourself or share the loss with us (depending on whether we used appropriate care and/or whether we in any significant way contributed to the loss). You agree that you will examine your statement with care within a reasonable period of time not to exceed 30 days from when the statement is first sent or made available to you.
Investigation of Claims
If you fail to discover or notify us of any unauthorized signature, forgery or alteration on the face or back of the check or any unauthorized draft or item on your account within 30 days after the monthly statement is made available to you, you cannot make any claim against us with respect to the check, draft, or item. In addition, we are not liable for an item that has been forged or altered in such a way that a reasonable person could not discover the forgery or alteration. You are in the best position to detect an unauthorized signature, a forged endorsement, a material alteration, an unauthorized paper draft or any unauthorized item on your account.
If you notify us of an unauthorized signature, forgery or alteration on the face or back of any check, any unauthorized paper draft, or any unauthorized item on your account within the time period required by the terms of this disclosure, we may investigate your claim for up to 60 days after receipt from you of all information we may request from you regarding such claim.
During any investigation of your claim of any unauthorized signature, forgery, alteration, unauthorized paper draft, or unauthorized item with respect to your account, we may elect to freeze or not credit you for the amount of such item(s) until we have completed our investigation.
We are not responsible for any temporary unavailability of funds in your account during the time in which the disputed item(s) are under investigation. This includes forged checks, unauthorized paper drafts and unauthorized items.
Account Liability/Customer Assistance
If you notify us of any alleged fraudulent or unauthorized item or transaction affecting your account and we elect to credit your account for the amount of any such alleged fraudulent or unauthorized item or transaction, you agree to fully cooperate with us and assist us during any investigation or proceeding.
If you refuse or fail to fully cooperate and assist us in any investigation or proceeding involving such unauthorized items by or for your benefit, then, at our election, you must repay to us the amount of any prior account credit for the unauthorized item(s), and we may deduct such amounts from your account without further notice. In addition, you agree to hold the Bank harmless for any loss you incur as a result of the unauthorized item(s).
Accounts that are inactive for a period of time may be considered to be dormant or abandoned. If this happens, the funds in your account may be to required to be turned over to the state of your last known address. Each state has varying laws as to when the account is subject to escheat. We will make all reasonable efforts to contact you before transferring your account(s) to an applicable state. For accounts with international addresses, the funds will be transferred to the State of Delaware.
Duty of Care
In accordance with reasonable banking standards, most checks and other items presented to us for payment are processed through automated processing and, except in limited circumstances and subject to such reasonable sampling procedures as we establish at our discretion, most items are not individually examined to verify your signature or verify that the item is otherwise properly payable. You agree that we act within reasonable banking standards by processing most checks, paper drafts and other items through automated processing systems.
If you have moved outside of the United States or have frequent international transactions, you may be contacted about the international activity in your account and for further verification of your address. If you are moving, traveling, or will be temporarily residing overseas, we recommend you contact us to prevent any disruption in your account activity. Your account may be closed.
Inactive and Dormant Accounts
We may consider a Deposit Account to be “inactive” after a period of no owner-initiated activity. After a period of “inactive” status, we may consider a Deposit Account to be “dormant.” After a period of dormancy, we may take steps to initiate escheatment (see the “Escheatment” section, above).
If the account is an interest-bearing account, the account will continue to earn interest, and all accounts will be subject to service charges in accordance with our Schedule of Fees. If an account becomes inactive or dormant, we will notify you in writing with specific instructions on how to restore the account to an active status without the need to make any transactions.
Death or Incompetence
You or your appointed party, designee, or appointed individual agree to notify us promptly if any agent or person with signatory rights on your account dies or becomes legally incompetent or incapacitated. We may continue to honor such checks and items until (a) we know of the fact of death or of a legal determination of incompetence or incapacitation and (b) we have had a reasonable opportunity to act on that knowledge. You agree that, even if we have knowledge of death of an agent or person with signatory rights, we may pay or certify checks drawn on or before the date of death for up to 10 days after that date, unless ordered to stop payment by someone claiming an interest in the account. We may require additional documentation to confirm any claims made on the account.
Before using any form of facsimile signature in connection with a Deposit Account, you agree to submit a sample to us and to execute and deliver agreements in a form we require. When you use a facsimile signature, you agree that you shall have the sole responsibility for ensuring the security of the facsimile signature, and you bear the entire risk for unauthorized use thereof, whether or not you are negligent, except where it may be required by law.
You agree that no facsimile signature we have been authorized to honor may be considered a forgery or an unauthorized signature, and that such facsimile shall be effective as your signature or endorsement, whether or not you have been negligent. You further agree to indemnify us and hold us harmless from and against any and all losses, costs, damages, liabilities or exposures we or you may suffer or incur as a result of the unlawful use, unauthorized use, or misuse by any person of any such facsimile or automated signature or the device by which it is affixed.
Fees and Charges
You agree to pay the charges as shown on the Schedule of Fees, which is provided with these disclosures and posted on our website. Fees or charges incurred on your account will be deducted directly from the account balance. We will not be held liable for any items that are dishonored or any other debts that may occur from the deduction of charges as stated in this Agreement.
Your account may earn interest at such a rate and compounding frequency as we disclose to you. We will not change the rate or Annual Percentage Yield on a time deposit prior to the next maturity date.
IRS Backup Withholding
If you do not provide us with your correct Tax Identification Number (Social Security Number or Employer Identification Number) and the required certification, or if we receive a notice from the Internal Revenue Service (“IRS”), the interest earned on your account may be subject to federal backup withholding at the IRS-mandated rate.
Levies, Garnishments, and Other Legal Processes
If your account becomes subject to legal action, such as a tax levy or third-party garnishment, we reserve the right to refuse to pay any money from your account, including checks or other items presented for payment, until the action is resolved. If we are required to pay an attachment, garnishment or tax levy, we are not liable to you. Payment is made after satisfying any fees, charges or other debts owed to us. You agree that you are responsible for any expenses, including legal expenses and fees we incur due to a garnishment, levy or attachment on your account. We may charge these expenses to your account. Until we receive the appropriate court documents, we may continue to process transactions against your account, even if we have received an unofficial notification of an adverse claim. You will indemnify us for any losses if we do this.
You will provide us with any Signature Cards and other documentation or information that we request in connection with a Deposit Account. Your failure to provide this information may result in federal backup withholding and prohibit transactions in which these documents are required for verification purposes. We may incorporate the Signature Card in the application for the account.
You agree to provide us with accurate and complete financial and other information we request in connection with a Deposit Account. Information concerning a Deposit Account may be reported to credit reporting agencies and will be made available when requested by proper legal procedures.
An account opened for personal use cannot be used for business purposes. If your personal account is identified as being used as a business account, it will be closed.
If you wish to close your Deposit Account with the Bank, you agree to notify us of this intention in writing.. After a Deposit Account is closed, we have no obligation to accept deposits or pay outstanding items, but may do so at our discretion and any access device will no longer be active. You agree to hold us harmless for honoring or refusing to honor any check, paper draft, or other item on a closed account. A Bank check for the balance in the account will be sent to the address on file within 14 business days of your final transaction and/or of receiving all required documentation for closing the account. All related closing fees as noted in our Schedule of Fees may be deducted from the final balance. If your balance is $2.00 or less, the Bank will not send a check for the balance. The Bank reserves the right to close your account at any time.
Internal Accounting of Balances
The following is a summary of the functionality of your account. This is an explanation of how your account is structured and does not reflect any changes to your account functionality at this time. Your checking account will consist of two (2) “Sub-Accounts” on the books of the Bank: (1) either a demand deposit (non-interest-bearing) account or a NOW (interest-bearing) account; and (2) a savings deposit, as those terms are defined under federal law. The two will be treated as a single account for Customer use, and you will see no effect.
All deposits and other credits will be posted to, and checks and debits will be deducted from, the demand deposit or NOW account. Whenever the demand deposit or NOW account balance exceeds a “threshold amount” (which we may establish and change at our discretion), we may transfer funds above that amount to the savings deposit. As these funds are needed to pay items presented against your checking account, the appropriate amount will be transferred back to the demand deposit or NOW account, up to six (6) times per statement cycle. If a sixth transfer is needed, the entire balance of the savings deposit will be transferred into the demand deposit or NOW account. This process may be repeated each month.
For interest-bearing checking accounts, we will pay the same rate of interest on balances in both sub-accounts. Your periodic statement will show a single annual percentage yield earned on the combined balances.
Links to Other Websites
These terms and conditions, our website, and our affiliates’ websites may contain links to third party websites (websites that are not controlled or offered by The Bancorp Bank). We hereby disclaim liability for any information, materials, products or services on any of the third party sites linked to by these terms and conditions, our website, or our affiliates’ websites. By linking to a third party website, we do not endorse or recommend any products or services offered or information contained on that website, nor are we liable for any failure of products or services offered or advertised at those sites. Such third party websites may have privacy policies different from ours and each third party websites may provide less security than we do on our sites.