Deposit Account Agreement As a customer of Kennebunk Savings Bank, you have both rights
and responsibilities concerning your deposit account(s) at this bank.
When you open your account and sign your signature card, you agree
to the rules and regulations governing your account(s). These rules and
regulations are set forth in this Deposit Account Agreement and Funds
Availability Policy and in related account documents which we provide
to you when you open your account(s). These rules and regulations
cover important subjects such as deposits, withdrawals, joint accounts,
interest payments, and statements. Important disclosures are included
as well. Please read this information carefully and keep it with your
account record(s) so you will be able to use your account(s) to your
best advantage.
Information Pertaining To All Accounts
Contract
This Deposit Account Agreement and Funds Availability Policy (the
“Agreement”) contains rules and regulations applicable to your deposit
account(s) with Kennebunk Savings Bank. By signing our signature
card, you acknowledge receiving a copy of this Agreement, as well as the
Electronic Funds Transfer Disclosure, the Truth-in-Savings Disclosure,
and the Service Pricing Schedule (the “account documents”), and you
agree to be bound by (a) this Agreement and the account documents, (b)
all changes or additions to this Agreement and the account documents
which we may make in the future, and (c) all applicable present and
future federal and state laws and regulations.
Use of Words
The words “we”, “our”, “us”, and “The Bank” refer to Kennebunk
Savings Bank. The words “you” and “your” refer to each entity who has
a deposit account with Kennebunk Savings Bank either individually or
jointly with another person(s). The word “account” refers to each deposit
account you maintain with Kennebunk Savings Bank.
Service Charges and Fees
Your account is subject to, and you agree to pay, certain service
charges and fees, including, but not limited to, maintenance and processing
fees, and such other fees that are and may be established by us from
time to time. All reference to fees and services in this Agreement are
found in the Service Pricing Schedule (the “Schedule”) and are subject to
change at any time and for any reason. We may automatically deduct any
charge or fee you owe us from your account regardless of whether your
account is active or inactive (as defined below), and we are not liable for
dishonoring items when the deduction of such charge or fee results in
insufficient funds in your account to pay such items.
Amendment
We reserve the right to amend this Agreement and any of the account
documents at any time and for any reason. If we do, we will notify you
either in writing or by posting a notice in our banking offices at least
fifteen (15) days prior to the effective date of the change unless a longer
period of notice is required.
Notice
Any notice sent to your last address as shown in our records is considered
effective and binding for all purposes. You must advise us in writing
if you change your address. Any notice sent to us will be considered
effective when we receive it.
Eligibility for Interest Bearing Checking Accounts
Individuals, sole proprietorships, funds held in a fiduciary capacity,
security deposits, and other funds held under various agency agreements
if the entire beneficial interest is held by individuals, are eligible for an
Interest Bearing Checking Account. Non-profit organizations operated
for religious, philanthropic, charitable, educational, political, or other
similar purposes are also eligible. All organizations operated for profit
are not eligible.
Payable on Death Accounts
The original owners (trustees) who open this account have all the
rights of individual or joint accounts as stated below. When all the
original owners (trustees) die, the account becomes payable immediately
to those persons named as beneficiaries who are alive at the time. They
will take in joint shares. If all beneficiaries predecease original owners,
the account remains payable to the original owners.
Individual or Sole Proprietorship Accounts
Money in your account is payable to you, or by your written order,
by use of the signature which opened your account, or electronic
access device, until you change the account, or revoke any power of
attorney in force, by written notice, or until we have notice of your
death or incapacity.
Joint Accounts
If your account has more than one name on it, we will treat it as a joint
account. Each joint account holder who has a signature on file with us
can withdraw or write checks or electronically access with an ATM card
or Debit card or automatic transfer request or wire any or all of the funds
on deposit. Each joint account holder is responsible for the full amount
of any withdrawals regardless of which holder accessed the account or
what method of withdrawal was used. Each joint account holder grants
the other(s) the power of attorney with power to deposit into the joint
account monies of the other and to endorse, for deposit only, any check,
draft, or other instrument payable to the order of the other.
If execution, levy, or court order requires us to pay any money in
your account over to a creditor of any of the joint account holders or to
anyone else, we are not liable to any of you for doing so. If in using your
account you owe us any money, each joint account holder shall be jointly
and separately liable to us.
If either of the joint account holders dies, his or her share of the
account will pass to the surviving joint account holder(s). Certain
retirement benefits such as Social Security deposits do not pass to the
surviving joint account holder(s); payments made after the recipient dies
cannot be withdrawn by the remaining account holder(s).
Fiduciary Accounts
You are responsible, as Fiduciary, for the money in the account which
is payable by your written order or with an electronic access device. We
are not responsible for the proper application of funds. A copy of your
appointment and/or trust agreement must be filed with us.
Profit and Non-Profit Corporation, Partnership, and
Association Accounts
Money in your account is payable to your organization or by its order
signed or electronically accessed by the person or persons designated on
the account resolution until the resolution is modified or rescinded by a
later resolution in writing, delivered to us.
Real Estate Escrow Accounts
Certain penalties must be imposed on Real Estate Escrow Account
withdrawals made within six (6) days of opening the account. This minimum
penalty is required by law. The penalty is calculated as seven (7)
days’ simple interest on any amount withdrawn from the account during
the six (6) day period after opening the account. A Real Estate Escrow
Account has a maturity of six (6) months. However, the funds may be
entirely withdrawn prior to the maturity date upon one (1) day’s notice,
in writing, to The Bank. The interest rate in effect on the account will be
paid up until the day of withdrawal.
No partial withdrawals are allowed from this account.
Deposits
We reserve the right to refuse a deposit to your account, to limit the
amount that may be deposited, or to return or hold any part or all of a
deposit, at any time and for any reason.
You can make deposits to your account in any amount by mail, in person
at any of our banking offices, at an ATM located at one of our banking
offices, or in any other manner approved by us in writing. When you
make a deposit, you must use one of our deposit tickets and completely
fill in your name and account number. We may not accept deposits that
are mailed to us that contain currency. If you make a deposit with us, you
receive an acknowledgement in the form of a deposit receipt.
All deposits are subject to verification by us. All deposits are also subject
to our Funds Availability Policy. We reserve the right to charge your
account or otherwise obtain a refund for any item deposited or credited
to your account that is not honored by another institution for any reason.
Any foreign currency deposited to your account is converted into United
States current dollars.
We require that all checks made payable to a business, organization,
or other non-personal entity be deposited into an account bearing an
equivalent title.
Withdrawals
We reserve the right to require seven (7) days’ written notice before
you can withdraw or transfer funds from any interest-bearing account.
We reserve the right to prohibit any withdrawal if:
1) there is not a sufficient collected balance* in your account;
2) you fail to present adequate identification or documentation;
3) you fail to use or properly complete a withdrawal ticket approved
by us; or
4) we are otherwise prohibited by law or government regulations.
If you have a Savings Account or a Money Market Deposit Account,
you can make an unlimited number of withdrawals and an unlimited
number of transfers to another one of your accounts when made in
person, via mail, or via an ATM. (NOTE: Account titles must reflect the
same ownership.) In the case of Money Market Deposit Accounts, preauthorized
transfers are limited to six (6) per interest payment cycle and
no more than three (3) such transfers may be made by check. Telephone
transfers to third parties or to another one of your accounts with us are
regarded as pre-authorized transfers. We are required to monitor the
number of pre-authorized transfers made monthly. You will incur a fee
for excessive pre-authorized transfers, which is stated in the Schedule
and, if such violations persist, we may close your account or restrict your
use of it.
Interest
If your account earns interest (such as a Interest Bearing Checking
Account. Savings Account, Money Market Deposit Account, and/or
Certificate of Deposit), you earn interest as long as your account meets
the applicable minimum balance requirements outlined in the Schedule.
We compute interest according to the daily balance method:
Collected Balance x Rate x Number of Investment Days
365 Days
* Collected Balance = Current Balance - Holds - Float
Interest is accrued daily and paid monthly.
Endorsements
If you cash or deposit an item that is not properly endorsed, we
reserve the right to place an endorsement on the item. If you give us an
item which you have endorsed “without recourse”, we reserve the right
to place our unqualified endorsement on the item. In either case, we can
enforce any rights that an unqualified endorsement gives us.
Endorsements on all items must meet our endorsement standards.
You are liable for any losses or delays resulting from nonconforming
endorsements or from other material on the back of the deposited item
that makes your endorsement illegible.
Stop Payment Requests
You can ask us to stop payment on a check you have written. You may
ask us to do so in person, by telephone, or by mail. We require the exact
payee, the check date, the check number, the check amount, and the
account number on which it was drawn. We must be given a reasonable
period of time to act on any stop payment request before it can be
considered effective. Oral stop payment orders are effective for fourteen
(14) calendar days. A written stop payment order is effective for six (6)
months and may be renewed in writing. If this is a joint account, we will
accept a stop payment request from any one of the joint account holders,
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regardless of who authorized the check. If we fail to honor a valid stop
payment request, we are not liable for more than your actual loss, which
may be less than the full amount of the check. The fee assessed for each
stop payment request is listed in the Schedule. You may not stop payment
on a Certified Check, and you may not be able to stop payment on
a Treasurer’s Check.
Inactive Accounts
If you do not make any deposits to or withdrawals from your account
for twelve (12) months, and your account is a checking type account,
your account is considered inactive and we may assess an inactive account
charge (as identified in the Schedule).
If you do not make any deposits to or withdrawals from your account
for twenty-four (24) months, and balances carried are less than $200.00,
and your account is a savings type account (i.e., Statement, Passbook),
your account is considered inactive and we may assess an inactive account
charge (as identified in the Schedule). Inactive accounts are subject
to applicable state abandoned property statutes. As long as your account
is inactive, we reserve the right to reduce the frequency with which we
send you statements or to stop sending statements altogether, and to
restrict your account.
To reactivate an inactive account, contact a Bank employee at one of
our banking offices or write to us and request that we do so. We are not
obligated to honor such a request, and if we choose not to, we will mail
you a check for any remaining balance in your account.
Overdrafts
If you overdraw your account, you agree to pay a service charge
which is disclosed in the Schedule. If you write a check or make an
automatic payment in an amount that exceeds the collected balance in
your account, we have the option of either paying it or returning it. If
we pay it, you agree to reimburse us. We provide notice, by mail, of any
overdrafts. The aforementioned does not apply if you have CheckMate
protection which covers the overdraft and is within a previously established
line of credit.
We reserve the right to refuse to pay any item that is illegible or that
we deem to have been altered, and you are liable for any resulting losses
or delays.
If a check is more than six (6) months old, we reserve the right to pay
it or not without liability to you.
We reserve the right to approve any and all forms of checks used by
you to access your account. We may refuse to honor a check that does
not agree with the name on the account or with the authorized signature.
We may refuse to certify a check. You agree not to postdate checks
drawn on your account. All checks presented for payment are payable on
demand. We are not liable to you for paying a postdated check prior to
its maturity date.
In the event your checks or electronic access device are stolen or lost,
or you suspect other unauthorized use, notify us immediately.
Passbook or Statements
We do not provide statements on passbook accounts. We post all
entries for these accounts upon presentation of the passbook, subject to
the computer system being on-line.
lf you lose your passbook, you must notify us promptly and complete
a notice form to protect your account. Every effort will be made to
protect depositors against fraud, but any payment made to a person
presenting the deposit book shall be good and valid and a complete
discharge of The Bank for the amount so paid, unless the deposit book
has been lost or stolen and notice in writing given to The Bank before
such payment is made.
We do not provide statements on a Passbook Certificate of Deposit
Account or a Club Account.
If we are unable to deliver two consecutive statements to you because
of an incorrect address or any other reason, we will discontinue sending
statements until you instruct us otherwise.
Except as noted above, we mail or deliver statements to you. We
consider the statement conclusively correct in all respects, unless you
notify us of any alleged error in writing within the time period indicated
on the statement.
Closing Your Account
You can close your account at any time and for any reason by withdrawing
the balance and notifying us that you are closing it either:
1) in person, upon presentation of identification satisfactory to us,
or
2) in writing, provided a valid signature card is on file.
If you close your account within ninety (90) days of the date you
opened it, we may charge you an account closing fee, which is outlined in
our Schedule. If you redeem a Certificate of Deposit prior to its maturity
date, you are subject to an interest penalty, which is disclosed on your
Truth-in-Savings Disclosure.
We reserve the right to close your account at any time and for any
reason. If we close your account, we may not notify you in advance, but
we will mail you a check for any remaining balance in your account.
Regardless of who closes your account, we are not liable for any item
drawn on your account and presented for payment after your account is
closed. Any amount you owe us is payable at the same time and in the
same amount as if your account had not been closed.
Reporting Information
Information about your account is confidential, and we will not
disclose such information to anyone but you unless it is:
1) to a consumer reporting agency or to anyone to whom you have given
our name as a reference;
2) necessary to complete a transaction;
3) to someone to whom you authorize us in writing to provide
information;
4) in response to a claim by or against us on any item deposited or
drawn against your account;
5) required by law in response to a subpoena, warrant, summons, or any
other government or legal request for the release of information about
your account;
6) otherwise authorized under applicable law or government regulation.
Deposit Insurance Coverage
Your account is insured by the Federal Deposit Insurance Corporation
up to the maximum allowable limits.
Transferability
All accounts are nontransferable.
Assignment of Account
The assignment of a checking account is prohibited and is not
recognized under any circumstances. The assignment of any account
other than a checking account for collateral on a loan other than to us is
prohibited and is not recognized.
If You Owe Us Money
With the exception of any indebtedness which you may incur by the
use of any credit card issued by us to you, if you owe us money and it is
due, we may have the right under the law and through this Agreement to
use money in any of your accounts to pay the debt. If one or more of the
joint account holders owes us money and it is due, we may have the right
under the law to use the money in the joint account to pay the debt. We
can withdraw the money from your account to pay the debt even if the
withdrawal of the money results in a penalty to you as provided herein.
If we exercise this right, we will subsequently advise you of the amount
we have taken from your account. If we exercise this right and as a result
there are insufficient funds in your account to honor an item, we are not
liable for dishonoring that item.
You agree to pay all costs, including reasonable attorneys’ fees, which
we may incur if we start proceedings to collect any money you owe us
arising out of this Agreement or any of the account documents.
Legal Proceedings
If your account is involved in legal proceedings, your use of it may
be restricted and you may be assessed a fee, which is described in
the Schedule.
Evidence
If we go to court for any reason, we can use a photocopy, microfilm
or microfiche copy, facsimile, or digitized image copy of a check, certificate,
monthly statement, or other documents to prove what you owe us
or that a transaction has taken place. The copy has the same validity as
the original.
Severability
A determination that any provision of this Agreement or any of the
account documents or any application thereof is invalid, unenforceable,
or illegal in any respect or in any instance shall not affect the validity,
enforceability, or legality of any other provision of this Agreement and
the account documents.
Waiver
We may waive or delay enforcing any of our rights under this
Agreement or any of the account documents without losing such
rights. We may waive or delay enforcing any of our rights as to one
joint account holder without affecting the obligations of any other joint
account holder.
Liability and Disclaimer
We shall not be liable to you other than as required by law or due to lack
of good faith or due care. The standard shall be that of reasonableness for
the transaction involved, and mere clerical error or oversight without malice
shall not be deemed wrongful. We shall not be responsible for loss resulting
through error by other banks in the collection process.
Applicable Laws
This Agreement and the account documents are governed by and
interpreted according to the laws of the State of Maine. Any litigation
arising out of, or incidental to, this Agreement shall be initiated only in a
court of competent jurisdiction located within the State of Maine. If we
are required to bring action to enforce our rights under this Agreement,
you agree to make your assets subject to the Jurisdiction of such court.
INFORMATION PERTAINING TO CHECKING AND STATEMENT SAVINGS
ACCOUNTS
For regulatory accounting purposes only, we classify all statement
savings accounts as two sub-accounts: a transaction-based sub-account
which is subject to federal reserve requirements and a non-transaction
based sub-account which is not subject to federal reserve requirements.
We may choose to allocate funds between these sub-accounts to improve
our operating efficiency.
Whenever your transaction sub-account balance exceeds a threshold
amount (which we may set and change at our discretion), funds above
that amount may be allocated to the non-transaction sub-account once
each day. When these funds are internally allocated to pay items presented
against the transaction sub-account, we will transfer funds from
the non-transaction sub-account to the transaction sub-account, up to
six times per statement period. In accordance with federal regulations,
if a sixth transfer is needed, the entire balance in the non-transaction
sub-account will be transferred into the transaction sub-account. This
process may occur each month.
This does not affect your account balance, deposit and withdrawal
transactions, account statement, funds availability, service charges,
statements, account number, FDIC insurance coverage, the calculation
and amount of any interest you might earn or any other aspect of your
account. In fact, there will be no impact on your personal banking. You
will have full access to all your funds at all times. Any other rules and
regulations governing your account remain in full force and effect.
INFORMATION PERTAINING TO ALL CERTIFICATE OF DEPOSIT ACCOUNTS
Maturity Date
When you open a Certificate of Deposit Account, you agree to leave
the funds in your account for a specific length of time (e.g. term). The maturity date on your Certificate of Deposit appears on the acknowledgement
issued at the time of deposit. On the maturity date and
during the ten (10) day grace period (the length of time between the maturity
date and the date when the Certificate automatically renews) any
or all of the principal funds may be withdrawn without loss of interest.
Maturity Date on Non-Business Day
If the maturity date of your Certificate of Deposit falls on any day that
we are not open for business, funds are available to you on the first business
day after the maturity date.
Penalties for Withdrawal Prior to Maturity Date
Withdrawal of any of the principal funds prior to the maturity date
is allowed and results in a penalty as detailed in the Schedule and on
the Truth-in-Savings Disclosure. Penalties are calculated against the full
amount being withdrawn and at the simple interest rate. THIS PENALTY
MAY LOWER YOUR PRINCIPAL AMOUNT. There is no penalty
charged when funds are withdrawn during the grace period.
If you die or are declared legally incompetent by the court or
other administrative body of competent jurisdiction, we do not charge
a penalty upon withdrawal of principal prior to maturity by the duly appointed
representative of the deceased or incompetent depositor.
Withdrawals of accumulated interest earned during the current term
are allowed at any time without penalty after interest has been posted.
Additional Deposits
Additional deposits to a Certificate of Deposit Account are not accepted
during the term, except as noted in the Schedule.
Interest During the Grace Period
* If the Certificate is renewed, it will earn the new contract rate
during the grace period.
* If the Certificate is closed, no interest is paid during the grace
period.
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 will be available on the day we receive the
deposit. Once they are available, you can withdraw the funds in cash and
we will use the funds to pay checks that you have written. For determining
the availability of your deposits, every day is a business day, except
Saturdays, Sundays, and federal holidays. If you make a deposit before
closing 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
2 p.m., at our Automated Teller Machines 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
Funds you deposit by check may be delayed for a longer period of time
under 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 (6) months.
There is an emergency, such as failure of computer or communications equipment.
We will 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 eleventh business day after
the day of your deposit.
Special Rules for New Accounts
If you are a new customer, the following special rules will apply
during the first 30 days your account is open. Funds from electronic
direct deposits to your account will be available on the effective date of
the deposit. Funds from deposits of cash, wire transfers, and the first
$5000 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 ninth
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 $5000 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 $5000
will 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
eleventh business day after the day of your deposit.
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. For example, if we cash a $100.00 check for you, $100.00 of funds
already in your account will not be available until the next business day
after the day we cashed the check.
Deposits at Automated Teller Machines
Funds from any deposits (cash or checks) made at Automated
Teller Machines (ATMs) before 2 p.m. will be available on the next
business day after deposit. We own and operate ATMs at all of our banking
offices.
Your Responsibility
Any check that you deposit into your account is credited, subject to
the bank the check is drawn on making final payment to us. If the check
is returned unpaid, we have the right to immediately withdraw the
amount of the check from your account. The fact that a deposited check
has been made “available” for withdrawal does not rule out the possibility
of the item being returned. Under Maine law, you are responsible for
any check that you endorse and for any check that is deposited into your
account whether you endorse it or not.
Payment of Interest
Deposits of checks into any interest-bearing account will begin to
earn interest from day of deposit.
If you have a question or problem with Kennebunk Savings Bank
regarding your account, please contact your banking office manager
or call 1-800-339-6573 for customer service and resolve the problem
directly with us.
