DEPOSIT ACCOUNT TERMS & CONDITIONS continued
HOW TRANSACTIONS POST TO YOUR ACCOUNT - We will post transactions to your account throughout the day in the order that we receive them. It is important to note that there are many ways that transactions may be presented for payment from merchants, and we are not necessarily in control of when transactions are received from them. We will start the day with posting any previous day rejected transactions based on availability of funds. These are typically transactions that could not be paid the previous day. These will occur in the time stamp order in which we received them. Credits • Generally, deposits are added to your account when they occur. This includes Cash Deposits, Online and Mobile Banking Transfers, Text Banking Transfers, Telephone Transfers and Wire Transfer Deposits. However, the full amount of the deposit may not be available to you at the time of deposit if the deposit is a check or you deposit funds at an ATM. Please refer to your Expedited Funds Availability Disclosure for details regarding the timing and availability of funds for your deposits. Throughout the day we receive data files with Automated Clearing House (ACH) transactions. Within the files we receive throughout the day we will process any ACH credits in trace number order. Debits • Checks – We receive data files throughout the day. These files are then processed during nightly processing. Within these files, checks drawn on your account are compiled and processed in serial number order during nightly processing. If you write a check from your C&N Bank account and it is negotiated at one of our branches these checks will be processed in time stamp order. • ACH Withdrawals – Throughout the day we receive data files with ACH transactions. These files are then processed during nightly processing after all ACH credits have been posted. Some examples of these transactions are automatic bill payments you have authorized, pre-authorized transactions, or automatic debits that you have set up with a merchant. We will process ACH debit items in trace number order. • ATM Withdrawals – When you withdraw from an Automated Teller Machine (ATM) and enter your personal identification number (PIN) the transaction will be processed through the PIN debit network and the funds will be deducted from your account immediately. • Debit Card Transaction using a PIN – If you use your debit card with a merchant and you enter your PIN at the time of sale then the transaction will be processed through a PIN debit network. Generally, this means that the money is usually deducted from your account immediately at the time of the transaction. However, a PIN-based transaction may not be immediately presented for payment from the merchant. • Debit Card Transaction using a Signature – These types of transactions occur when you typically sign for a purchase instead of entering your PIN. These transactions are processed through a signature-based network. Merchants may seek an authorization first for these types of transactions. This authorization request then places a hold on funds in your account until the transaction is subsequently processed by the merchant and submitted to us for payment. The authorization hold creates a hold and reduces your available balance by the amount of the transaction as described in the Available Balance Section above. Depending upon the merchant and their payment processor these transactions may be in a pending status for hours or sometimes days after the transaction has occurred. In cases where the transaction was authorized on a positive available balance and then later processed when the account has a negative available balance, the Bank will not charge an overdraft fee or return the item. These transactions are often referred to as Authorize Positive, Settle Negative transactions. Throughout the day we receive these transactions and will process the transactions in time stamp order in which they’re received. RETURNED CHECKS; CHARGE BACKS - If an item or an image of the item is returned to us unpaid for any reason (including, but not limited to insufficient funds, closed account or unauthorized check), we may charge back the amount of the item to your account, whether drawn “on us” or another financial institution. We may charge back the amount of the item even if you have already used the funds. Unless prohibited by law, we also reserve the right to charge back to your account the amount of any item deposited to your account, or cashed for you, and was paid by the payor bank and which is later returned to us with a demand that we repay the payor bank, issuer or payee based upon an allegedly forged, unauthorized or missing indorsement, claim of alteration, encoding error, counterfeit cashier’s check or other problem which in our judgment justifies reversal of credit. We may debit the account for any exchange charges on deposited items. We may overdraw your account for any such purpose and will not be liable for damages to you as a result of checks drawn on the account which are dishonored because of the charge back. We may also collect any amounts due to us because of returned checks, through the right of set-off (subject to state and federal law), from any of your accounts at C&N Bank or by directly collecting the funds from you. RIGHT OF SET-OFF - You agree that we may (without prior notice and when permitted by law) set off the funds in this account against any due and payable debt owed to us now or in the future, by any of you having the right of withdrawal, to the extent of such persons’ or legal entity’s right to withdraw. If the debt arises from a promissory note or credit agreement (collectively “Note”), “any due and payable debt” includes the total amount to which we are entitled to demand payment under the terms of the Note at the time we set off, including any balance as of the due date for which we properly accelerate under the Note. This right of set-off does not apply to this account if: (a) it is an Individual Retirement Account or other tax-deferred retirement account, or (b) the debt is created by a consumer credit transaction under a credit card plan (except under any consensual security interest under the credit card
agreement), or (c) the debtor’s right of withdrawal arises only in a representative capacity. We will not be liable for the dishonor of any check written when the dishonor occurs because we set off a debt against this account. You agree to hold us harmless from any claim arising as a result of our exercise of our right of set-off. In addition to any right of set-off, you hereby grant to the Bank a security interest in your accounts to secure all loans or other extensions of credit or obligations, now or in the future. STOP-PAYMENTS - A stop-payment order may be given orally or in writing and must be received by us in time to give us a reasonable opportunity to act. A stop-payment order must identify the account number, check number, amount of the item, date and the payee. We are not liable for failing to stop payment on a check if you provide incomplete or incorrect information regarding the check. We will honor a stop-payment request by the person who signed the particular item, and, by any other person, even though such other person did not sign the item, if such other person has the right to withdraw from this account. A release of the stoppayment request may be made only by the person who initiated the stop-payment order. A stop payment request lasts for six months unless you cancel your stop payment request. You may place a new stop payment order, which will be effective for six months from the day you place the additional order. An additional fee will be charged. TELEPHONE TRANSFERS, CALL MONITORING AND RECORDING - You may make telephone transfers of funds from this account to another one of your accounts with us under the same conditions generally applicable to withdrawals made in writing. Subject to federal and state law, we may monitor or record phone calls for security reasons, to maintain a record and to ensure that you receive courteous and efficient service. You consent in advance to any such recording. REMOTELY CREATED CHECKS; SUBSTITUTE CHECKS - Under Regulation CC, a remotely created check means a check that is not created by the paying bank and that does not bear a signature applied, or purported to be applied, by the person on whose account the check is drawn. A remotely created check may have a statement that the payor authorized someone else to draw the check on the payor’s account. You represent and warrant that each remotely created check deposited to your account was expressly and verifiably authorized by the payor in the amount and to the payee that appears on the check; that you will maintain proof of the authorization for at least two years from the date of the authorization, and provide us the proof if we ask. If a remotely created check is returned to us you owe us the amount of the remotely created check, regardless of when it was returned. To make check processing faster, federal law permits financial institutions to replace original checks with “substitute checks.” These substitute checks are similar in size to the 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. An electronic check can be used to create a substitute check since the electronic image and electronic information was derived from its paper form. You agree that you will not cash or deposit “substitute checks” as defined by federal law or Image Replacement Documents (“IRD”) that purport to be substitute checks and have not been previously endorsed by a bank. If you cash or deposit such an item, you give us the same warranties and indemnities that we, as a reconverting bank, would give under applicable law or regulation and you agree to reimburse us for claims, losses, costs and damages we may incur. We do not have to accept any other electronic or paper image of an original check. WIRE TRANSFERS – This Agreement is subject to Article 4A of the Uniform Commercial Code – Fund Transfers as enacted in the Commonwealth of Pennsylvania. If you originate a fund transfer and you identify by name and account number a beneficiary financial institution, an intermediary financial institution or a beneficiary, we and every receiving or beneficiary financial institution may rely on the identifying number to make payment. Bank and any other financial institution shall not be responsible for determining whether the beneficiary’s name and account number refer to the same person or whether a financial institution’s name and identifying number refer to the same financial institution. We may rely on the number even if it identifies a financial institution, person or account other than the one named. ACH TRANSACTIONS – If you are a party to an Automated Clearing House (“ACH”) entry, you agree that we may transmit an entry through the ACH, and you agree to be bound by the National Automated Clearing House Association (“NACHA”) Operating Rules and Guidelines, the rules of any local ACH, and the rules of any other systems through which the entry is made. Credit given by us to you with respect to an automated clearing house credit entry is provisional until we receive final settlement for such entry through a Federal Reserve Bank. If we do not receive such final settlement, you are hereby notified and agree that we are entitled to a refund of the amount credited to you in connection with such entry. Under the NACHA operating rules, which are applicable to ACH transactions involving your account, we are not required to give next day notice to you of receipt of an ACH item and we will not do so. However, we will continue to notify you of the receipt of payments in the periodic statements we provide to you. We may accept on your behalf payments to your account which have been transmitted through one or more Automated Clearing Houses (ACH). Transactions which are not subject to the Electronic Fund Transfer Act shall be construed in accordance with and governed by the laws of the state of Pennsylvania as provided by the operating rules of the National Automated Clearing House Association, which are applicable to ACH transactions involving your account.
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