Terms and Conditions of Your Account

40. Addendum

ADDENDUM TO TERMS AND CONDITIONS OF YOUR ACCOUNT: This Addendum to the Terms and Conditions of Your Account (this "Addendum") supplements the Terms and Conditions of Your Account (the "Terms and Conditions"), and any other documents we give you pertaining to your account(s). To the extent there is any conflict between the provisions of the Terms and Conditions and the provisions of this Addendum, this Addendum shall control. This Addendum and the Terms and Conditions are collectively referred to as this "Agreement."
 

ITEM: The term "item" includes all orders and instructions for the payment, transfer, or withdrawal of funds from an account. As examples, item includes: a check, substitute check, purported substituted check, electronic transaction (including an ACH transaction, ATM withdrawal or transfer, or point of sale transaction) draft, demand draft, everyday non-recurring debit card transaction, recurring debit card transaction, remotely created check, remotely created consumer check, image replacement document, indemnified copy, preauthorized draft, preauthorized payment, automatic transfer, telephone initiated transfer, online banking transfer or bill payment instruction, withdrawal slip, in-person transfer or withdrawal, cash ticket, deposit adjustment, or other order of instruction for the payment, transfer, or withdrawal of funds, or an image, digital image or a photocopy of any of the foregoing. "Item" also includes any written document created or authorized in your name that would be a check or draft but for the fact that it has not been signed. "Item" may also include a check, draft, warrant, or other item deposited to your account, including a deposited item that was returned unpaid.
 

DEBIT CARD TRANSACTION TERMS: For purposes of this Addendum, "everyday non-recurring debit card transactions" are usually purchases made with your debit card or debit card number on a one-time or day-to-day basis. As examples, you use your debit card for purchases of food, groceries, and coffee. For purposes of this Addendum, "recurring debit card transactions" are usually transactions that you set up to occur automatically, such as automatic bill payments. As examples, you give merchants your debit card number to use for your rent, mortgage, utility, or car payments. We rely on the merchant that processes the transaction to determine if it is a recurring transaction or an everyday non-recurring transaction.
 

INTEREST: If your account earns interest, the following information applies: (1) We will pay interest at the annual rate specified on the Schedule, which does not reflect compounding ("Interest Rate"). The Schedule also sets forth the frequency of interest payments, the frequency of any compounding and crediting, the interest accrual basis, the balance on which interest will be paid, and any minimum balance requirements. (2) The Schedule may specify a minimum balance that you are required to maintain in your account. If the minimum balance is not maintained during a specified period, we, at our option, may not pay interest on your account and/or may charge a fee for that period. You should review any minimum balance requirements on the Schedule. (3) The initial interest rate is the current annual rate of interest that we will pay on the specified balance in your account. We may pay interest at different rates, depending on the amount deposited and the type of depositor (individual, business, non-profit organization, etc.) (4) The Schedule will indicate the interest compounding and crediting frequency for your account (if any). Compounding generally means that interest is being accrued on earned interest. Interest may be compounded more frequently than interest is credited to your account. (5) We may accrue interest on your account more frequently than we pay or credit interest. The interest that has been calculated, but not paid to the account, is called accrued unpaid interest. (6) We have the right to change the rates and fees in accordance with the terms of the Schedule.
 

DEPOSIT RULES: The following terms apply to deposits made to your account: We reserve the right to refuse any item for deposit into your account. If we offer direct deposit services for automatic preauthorized deposits to your account of Social Security payments or automatic transfers from your other accounts with us, you must notify us at least 30 days prior to the next scheduled direct deposit or preauthorized transfer if you wish to cancel the direct deposit or transfer service. The Funds Availability disclosure provided to you reflects our policies relating to the availability of deposited funds.
 

USE OF POWER OF ATTORNEY: Except as required by law, we may reject, comply with, or require an indemnity, agent certification or legal opinion prior to accepting a power of attorney or responding to agent requests under a power of attorney for any reason at our sole discretion.
 

SIGNATURE CARD; FACSIMILE SIGNATURES; INDEMNIFICATION: You authorize us to store and use Signature Card information in any reasonable form we deem necessary, including any digitized signature capture process. If you use a facsimile signature or other form of mechanically reproduced signature (such as, but not limited to, desktop publishing, digitized, or computer software generated signature), you agree you shall have the sole responsibility for maintaining security of the facsimile or mechanically reproduced signature and the device by which the facsimile or mechanically reproduced signature is affixed and you shall bear the entire risk for unauthorized use thereof whether or not you are negligent. You further agree to indemnify and hold us harmless from and against any and all loss, costs, damage, liability, or exposure (including reasonable attorneys' fees) 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 mechanically reproduced signature or the device by which it is affixed.
 

RE-PRESENTED CHECKS: If a merchant electronically re-presents a check returned due to insufficient or uncollected funds, that transaction is not covered by the Electronic Funds Transfer Act. Checks involved in this type of transaction will not be included in your statement. You may authorize a merchant to electronically collect a fee associated with the re-presentment of a check. If a merchant electronically collects a fee associated with the re-presentment of a check, the fee transaction is covered by the Electronic Funds Transfer Act and subject to the Electronic Funds Transfer Agreement and Disclosures if the fee is debited as an electronic funds transfer from a consumer account. A description of the transaction will appear on your statement.
 

STALE CHECKS: We reserve the right to pay or dishonor a check more than six (6) months old without prior notice to you.
 

TIME DEPOSITS: If your account is a time deposit, you have agreed to keep the funds on deposit until the maturity of your account. We will consider requests for early withdrawal and, if granted, the penalty provided in the Schedule will apply. (1) The early withdrawal penalty is calculated as a forfeiture of part of the accrued interest that has or would be earned on the account. If your account has not yet earned enough interest so that the penalty can be deducted from earned interest, or if the interest already has been paid, the difference will be deducted from the principal amount of your account. For fixed rate accounts, we will use the rate in effect for your deposit. (2) We may let you withdraw money from your account before the maturity date without an early withdrawal penalty: (a) when one or more of you dies or is determined legally incompetent by a court or other administrative body of competent jurisdiction; or (b) when the account is an Individual Retirement Account (IRA) established in accordance with 26 USC 408 and the money is paid within 7 days after the account is opened; or (c) when the account is a Keogh Plan (Keogh), if you forfeit at least the interest earned on the withdrawn funds; or (d) if the time deposit is an IRA or Keogh Plan established pursuant to 26 USC 401 OR 26 USC 408, when you reach age 59 1/2 or become disabled; or (e) within an applicable grace period (if any).
 

UNIFORM TRANSFERS TO MINORS: If you have established the account as a custodian for a minor beneficiary under our state version of the Uniform Transfers to Minors Act (UTMA) or the Uniform Gifts to Minors Act (UGMA), your rights and duties are governed by such Act, and the account will be deemed to be your account as custodian for the named minor beneficiary under such Act. You agree to comply with all requirements of the applicable UTMA or UGMA law, including but not limited to your requirement to (a) expend the UTMA or UGMA assets only for the use and benefit of the minor named on the account and (b) upon the earlier of the minor reaching the applicable termination age or the minor's death, transfer the account assets to the minor or to the minor's estate as appropriate. You will not be allowed to pledge the account as collateral for any loan to you. Deposits in the account will be held by us for the exclusive right and benefit of the minor. The custodian and/or any person opening the account, in their individual capacity, agree to indemnify and hold us harmless from and against any and all loss, costs, damage, liability, or exposure, including reasonable attorney's fees, we may suffer or incur arising out of any action or claim by any beneficiary or other custodian with respect to the authority or actions taken by the custodian in handling or dealing with the account.
 

AGENCY ACCOUNTS: Notwithstanding anything contained in this Agreement to the contrary (except for the subsequent sentence), an "Agency" designation may be combined with one of the other forms of account ownership; provided, however, that all owners of the account authorize the "Agency" designation. Notwithstanding the preceding sentence, we shall have no obligation to confirm that all owners of the account authorize the "Agency" designation.
 

FIDUCIARY ACCOUNTS: With respect to all fiduciary accounts, including but not limited to estate accounts, guardianship accounts, and conservatorship accounts, and any formal trust account, UTMA or UGMA account, or agency account, we reserve the right to require such documents and authorizations as we may deem necessary or appropriate to satisfy that the person(s) requesting or directing the withdrawal of funds held in the account have the authority to withdraw such funds. This applies at the time of account opening and at all times thereafter.
 

ATTORNEY CLIENT TRUST ACCOUNTS: Subject to applicable law, an Attorney Client Trust or IOLTA Trust Account is an account set up by an attorney or law firm to hold client or third party funds in trust, separate from the attorney's or law firm's funds. Upon our request, the authorized signers for an Attorney Client Trust or IOLTA Trust Account will provide documentation required by applicable state law and applicable bar association (or similar entity) rules. We act only as custodian of the trust funds and are under no obligation to act as trustee or to inquire as to the powers or duties of the attorney or law firm as trustee(s). The attorney, law firm, or any authorized individual on the account agrees to indemnify and hold us harmless from and against any and all loss, costs, damage, liability, or exposure, including reasonable attorneys' fees, we may suffer or incur arising out of any action or claim by any beneficiary or third party with respect to the authority, actions, or inaction taken by the trustee(s) or authorized individuals in handling or dealing with the account. Additional account terms are governed by a separate agreement. If this is an IOLTA Trust Account, we will not permit the lawyer or law firm to receive the interest. The interest (minus applicable fees) on an IOLTA Trust Account will be remitted to the appropriate entity, pursuant to your instructions and at your request. IOLTA Trust Accounts are used to hold an attorney's or law firm's client funds that are nominal in amount or held for short periods of time.
 

REAL ESTATE BROKER CLIENT TRUST ACCOUNTS: Subject to applicable law, a real estate broker may open account(s) to hold client or third party funds in trust, separate from the broker's funds. We act only as custodian of the funds. We are under no obligation to act as a trustee or to inquire as to the powers or duties of the broker or other authorized signer(s) as trustee(s). The broker and any authorized individual on the account in their individual capacity and jointly and severally, agree to indemnify and hold us harmless from and against any and all loss, costs, damage, liability, or exposure, including reasonable attorneys' fees, we may suffer or incur arising out of any action or claim by any client or third party with respect to the authority, actions or inaction taken by the broker or authorized signer(s) in handling or dealing with the account. Upon our request, the authorized signer(s) for this type of account will provide to us any documents required by applicable law and/or real estate professional rules.
 

GOVERNMENT/MUNICIPAL/PUBLIC FUNDS ACCOUNTS: This type of account is owned by a government or public entity. For this type of account, you agree to provide us with authorization document(s) (in a form acceptable to us) stating that we are designated as a depository for the funds of the government or public entity and such documentation shall state the individual(s) authorized to act on behalf of the government or public entity and the extent of their authority. We may rely upon such documentation until we receive written notice of a change and new authorization documents. We are not responsible for any transaction conducted by a previously authorized individual until we actually receive written notice that the authorized individual's authority has been revoked. Unless specifically stated otherwise in the authorization document(s), we can rely on one authorization for all accounts owned by the government or public entity. If required by law, you agree to enter into a Collateral Security Agreement regarding this type of account.
 

FINANCIAL INSTITUTION LIABILITY: You agree that if we do not properly complete a transaction according to this Agreement, we will not be liable in any event for losses or damages in excess of the amount of the transaction, and we will not be liable if circumstances beyond our control prevent the transaction, or the funds in your account are or may be subject to legal process or other claim. In no event will we be liable for special, consequential, or punitive damages or losses of any kind, including, but not limited to, loss of profits and opportunity or for attorneys' fees incurred by you. In receiving items from you for withdrawal or deposit, we act only as your agent. You are responsible for the condition of a check or item when you issue it.
 

CREDIT VERIFICATION: You authorize us to request and obtain one or more credit reports about you and any of your beneficial owners from one or more credit reporting agencies for the purposes of considering your application for the account, reviewing or collecting any account opened for you, or for any other legitimate business purpose. You authorize us to disclose information about your account to a credit reporting agency if your account was closed because you have abused it.
 

DORMANT ACCOUNTS: If you have not made a withdrawal from, or a deposit to, your account for an extended period of time, your account may be classified by us as dormant. Subject to applicable law, we may charge a dormant account fee on the account, and the account will be presumed to be abandoned if we have been unable to contact you. In accordance with state law, funds in abandoned accounts will be remitted to the custody of the applicable state agency, and we will have no further liability to you for such funds. We reserve the right not to send statements on accounts we consider dormant, subject to applicable law.
 

NONSUFFICIENT FUNDS - OVERDRAFTS AND DECLINED OR RETURNED ITEMS: When we determine that you do not have enough available funds in your account to cover a check or other item, then we consider the check or other item a non-sufficient funds (NSF) item. Without notice to you, we either authorize or pay the NSF item and overdraw your account (an overdraft item) or we decline or return the NSF item without payment (a returned item). We pay overdrafts at our discretion, which means that we do not guarantee that we will always, or ever, authorize and pay them. If we overdraw your account to pay items on one or more occasions, we are not obligated to continue paying future NSF items. We may pay all, some, or none of your NSF items, without notice to you. If we do not authorize and pay an overdraft, then we decline or return the transaction unpaid. An NSF fee may be assessed when the item is paid (Overdraft Fee). You will not be charged a NSF fee for items presented against insufficient funds in your account and returned unpaid (Returned Item Fee). We may also treat as an NSF item each fee that creates an overdraft and each deposited item returned to us unpaid that creates an overdraft. Please also be aware that third parties may charge you fees if transactions are declined or returned. Additional information regarding NSF fees is included in the Miscellaneous Fees list that you received at account opening. Please review the Miscellaneous Fees list for your account carefully. The Miscellaneous Fees list may be updated by us from time to time. If we overdraw your account or assess an Overdraft Fee, you agree to repay us immediately, without notice or demand from us. We may use deposits you or others make to your account to pay overdrafts, NSF fees (including Overdraft Fees), and other amounts you owe us.
 

You can avoid fees for overdrafts by making sure that your account always contains sufficient available funds to cover all of your transactions. We offer services that you can use to help you manage your account and help you avoid overdrafts, such as our Online and Mobile Banking services and Online Alerts and Notifications. Please visit our website at ucbi.com or contact our support team for more information. Also, please review our Overdraft Practice Setting and the Overdraft Protection Services we offer which are described in more detail below.
 

HOLDS: Occasionally funds in your account are not available to cover your transactions. When we determine that funds in your account are subject to a hold, dispute, or legal process, then these funds are not available to cover your transactions. As examples of these types of holds, holds include deposit holds, holds related to cash withdrawals, and authorization holds we place on the account for debit card or other transactions that have been authorized but not yet posted. Further, see Legal Actions Affecting Your Account and Resolving Account Disputes in the Terms and Conditions for additional information on freezes and holds that may be placed on the account in connection with a legal action or dispute.
 

Authorizations and Holds for Debit Card Transactions: When you use your debit card, you authorize the merchant with whom you use your card or to whom you previously provided your information to ask United Community Bank to approve the transaction you desire to make. At this time, in order for the transaction to go through, we must promise the merchant to pay for the purchase upon the merchant's request. When we give authorization to a merchant, we will reserve or place a hold on your balance, generally for three (3) business days, for the amount of the authorization. A hold generally reduces the amount of available funds in your account by the amount of the authorization request. Your debit card transaction is subsequently paid when the merchant presents it to United Community Bank for payment - that is, when the merchant asks us to transfer the funds from your account to the merchant. There may be delays of several days between the authorization and the date the transaction is presented for payment, and your transaction may post to your account after the authorization hold has lifted. We may authorize or refuse to authorize a transaction based on a different amount than the authorization request, because some merchants request authorizations for an amount that is unrelated to the actual amount of the purchase (such as self-service fuel). For some types of purchases, we may place a hold for a longer period. There are times - for example, at restaurants, hotels, or car rental agencies - that merchants will not know the exact amount of your purchase when they request the authorization. If the authorization is more or less than your actual purchase amount, the hold may remain for a day or two even after your purchase amount has been subtracted from your balance. For debit card transactions that we have already authorized, we may pay the purchase amount from your account whenever the merchant sends it to us, even if the hold has expired.
 

Overdrafts with your Debit Card: Unless you have notified us that you DO want us to pay everyday non-recurring debit card overdrafts at our discretion, we generally will not authorize such a transaction if we determine at the time of the everyday non-recurring transaction that you may not have available funds in your account to pay that transaction, and we will not charge an NSF fee.
 

When we give authorization to a merchant for your purchase, your available balance will decrease. However, the authorization will not prevent certain items, such as ACH transactions and checks, from posting to your account, which can leave your account without enough funds. To avoid Overdraft Fees, be sure to keep enough funds in your account to avoid overdrawing your account, including enough funds for previously authorized debit card transactions not yet posted to your account. The amount being held is not applied to the debit card transaction or to any specific transaction. If the hold expires and the transaction has not been paid, the amount being held is returned to your available funds. After the merchant has presented the debit card transaction for payment, we determine whether you have sufficient funds available to pay the transaction. If other account activity has caused the funds available in your account to drop before the debit card transaction is paid, you may no longer have sufficient funds to pay the merchant. If you do not have sufficient funds, the debit card transaction will cause you to overdraw your account since we must honor our promise to pay the merchant. If your account had sufficient funds to cover the everyday non-recurring debit card transaction at the time it was authorized, no Overdraft Fee will be assessed on the everyday non-recurring debit card transaction. If it is a recurring transaction, you may incur an Overdraft Fee; this may occur even if your account did have sufficient available funds when the merchant requested the authorization. We rely on transaction coding sent to us by the merchant or other third party to determine whether the transaction is everyday or recurring. If any other transaction other than an everyday non-recurring debit card transaction overdraws your account, we may assess an Overdraft Fee.

Here is an example of how that may happen: On Wednesday, we authorize a debit card transaction because, at the time, you have available funds in your account in excess of the authorization request from the merchant. Then a hold is placed on your funds for the amount of the authorization request until the merchant presents the transaction for payment. On Thursday, we process and post another transaction (such as a check you wrote) that reduces your available funds below zero. If the merchant presents the original debit card transaction on Friday, and your available funds are now below the amount needed to pay the transaction, the debit card transaction will overdraw your account and you may incur an Overdraft Fee if it is a recurring debit card transaction. Please note that we do not show holds, or distinguish between available and unavailable funds in your account balance, on your statement so when you review your statement later, it might appear that you had enough funds in your account to cover a debit for which we charged you a fee.
 

OVERDRAFT PRACTICE SETTING: We automatically apply our standard courtesy overdraft practices to all eligible accounts. This is referred to as the Courtesy Overdraft Coverage setting and is further detailed in the Courtesy Overdraft Coverage paragraph below. We also offer an optional courtesy overdraft practice setting for eligible accounts; this is referred to as the Courtesy Overdraft Coverage with ATM and Debit Card Coverage and is further detailed in the Courtesy Overdraft Coverage with ATM and Debit Card Coverage paragraph below.
 

With or without these overdraft practice settings, your account might still become overdrawn and you may still incur overdraft fees, overdrafts, or returned items. Additionally, please note: (i) we do not guarantee that we will pay any overdraft transaction; (ii) the amount available for the overdraft settings varies; (iii) you should not count on any of our overdraft settings or any of our Overdraft Protection Services being available; (iv) you should only make debit transactions when you have sufficient funds available in your account; (v) even though we may authorize and pay overdrafts, we have no obligation to approve overdrafts or to notify you when we approve overdrafts; (vi) if we exercise our right to use our discretion to pay an overdraft, we do not agree to pay overdrafts in the future and may discontinue covering overdrafts at any time without notice; and (vii) if we pay an overdraft or impose a fee that overdraws your account, you agree to pay the overdrawn amount and fee. We reserve the right to terminate these settings at any time without notice to you.
 

Please note that there are some accounts that are not eligible for these two settings. Certain other restrictions apply.
 

Courtesy Overdraft Coverage: With this standard setting, we do not authorize overdrafts for everyday non-recurring debit card transactions and ATM transactions if, at the time of an everyday non-recurring debit card transaction or ATM transaction, we determine that you may not have available funds in your account (or in any applicable Overdraft Protection Service) to cover the transaction, and in this case, we will generally decline the transaction. With this setting, we may authorize and pay overdrafts for other types of transactions when you do not have available funds in your account at the time of the transaction; these other types of transactions include: (1) checks and other transactions made using your checking account number; (2) recurring debit card transactions; (3) ACH transactions; (4) preauthorized payments; and (5) automatic and online bill payments.
 

Courtesy Overdraft with ATM and Debit Card Coverage: You must enroll (or opt-in) to authorize this setting. If you enroll (or opt-in) to this setting, you may choose to opt-out at a later time by contacting your local branch, by phone, or online at www.ucbi.com/Personal/Services/Overdraft-Protection. With this optional setting, in addition to the types of transactions we may authorize under the Courtesy Overdraft Coverage setting described above, we may authorize and pay overdrafts for ATM transactions and everyday non-recurring debit card transactions when you do not have available funds in your account at the time of the transaction.
 

OVERDRAFT PROTECTION SERVICES: You should always avoid transactions that will overdraw the available funds in your account. However, we offer certain optional Overdraft Protection Services which are described below which may help you avoid Overdraft Fees. Most accounts can be enrolled into our Overdraft Protection Services, however, you should ask us whether your account is eligible. If you choose to enroll in one of these Overdraft Protection Services, please be advised there are fees associated with your use of Overdraft Protection Services.
 

The Miscellaneous Fees list for your account explains the fees and other charges that apply to the available Overdraft Protection Services. Please review the Miscellaneous Fees list carefully. While fees may apply when you use our Overdraft Protection Services, the fees under some of the services may be less expensive than the fees for Overdraft Fees. If you wish to enroll in one of these Overdraft Protection Services, please call 1-800-UCBANK1 or visit your local United Community Bank branch. You will not be enrolled into an Overdraft Protection Service unless and until you contact us and receive a written confirmation or signed agreement.
 

Please note, for your reference, we are providing below a description of the optional Overdraft Protection Services that we offer. Some accounts may not be eligible for these services. Under some services, we make transfers in a minimum amount so we may not make a transfer if you do not have at least the minimum transfer amount available under the service. Overdraft Protection Services only apply when there are insufficient available funds in your account to cover a debit; however, please be reminded that we may pay NSF items, with no obligation to do so, and may terminate these services at any time. Rather than automatically returning unpaid all NSF items that you may have, we will consider, without obligation on our part, payment of your reasonable overdrafts.
 

You must enroll (or opt-in) to authorize these Overdraft Protection Services. If you enroll (or opt-in) to any of these services, you may choose to opt-out at a later time by visiting your local branch or calling 1-800-UCBANK1. Please note that these optional Overdraft Protection Services are services provided at our discretion. We may pay overdrafts at our discretion and reserve the right to terminate any of the Overdraft Protection Services at any time. All Overdraft Protection Services described herein are subject to other terms and conditions otherwise disclosed by us or provided to you in connection with the applicable service. Certain other restrictions apply.

Overdraft Protection Transfer from Deposit Account: This optional service allows you to link your account to another United Community Bank deposit account for overdraft protection. The other deposit account can be a second checking, money market, or a savings account.
 

If you enroll in this optional service, when you do not have enough available funds in your account to cover an item, we may automatically transfer funds from the available balance in your other linked deposit account to your account. We generally charge an overdraft protection transfer fee for each transfer. Please keep in mind that the funds deposited in your other deposit account may not be available immediately for overdraft protection transfers. For example, your funds deposited in your other deposit account may be subject to a hold. Transaction restrictions may also apply with respect to your other deposit accounts. We have the discretion to cancel this Overdraft Protection Service.
 

For example, if your account or other deposit account is closed for any reason, we may cancel this Overdraft Protection Service.
 

Please see the Miscellaneous Fees list for your account for more information about the charges associated with the Overdraft Protection Transfer from Deposit Account service.
 

Overdraft Line of Credit Protection Transfer: This optional service allows you to link your eligible United Community Bank line of credit to your account for overdraft protection.

If you enroll in this optional service, when you do not have enough available funds in your account to cover an item, we may automatically advance funds from your linked line of credit and transfer the funds to your account. Please keep in mind that the advance is made under, and is subject to, the terms and conditions described in the agreement governing the line of credit. We typically make the advance as long as you are not in default under the agreement governing the line of credit and as long as the advance does not cause you to exceed the amount of your available credit in your line of credit. Please be advised that the funds advanced are subject to the fees and finance charges under the agreement governing the line of credit. We may also charge an additional overdraft protection transfer fee to your account for each transfer.
 

Please see the Miscellaneous Fees list for your account for more information about the charges associated with the Overdraft Line of Credit Protection Transfer service and please review your line of credit agreement for more information about terms and conditions that apply to this service. We have the discretion to cancel this Overdraft Protection Service. For example, if your account or other line of credit is closed for any reason, we may cancel this Overdraft Protection Service.
 

UNDERSTANDING YOUR ACCOUNT BALANCE: Your account has two kinds of balances: the current balance and the available balance. Your current balance reflects the full amount of all deposits to your account as well as payment transactions that have been posted to your account. It does not reflect checks you have written and are still outstanding or transactions that have been authorized but are still pending. Your available balance is the amount of money in your account that is available for you to use. Your available balance is your current balance less: (i) holds placed on deposits; (ii) holds on debit card or other transactions that have been authorized but not yet posted; and (iii) any other holds such as holds related to pledges of account funds and minimum balance requirements or to comply with court orders.
 

We use your available balance to determine whether there are sufficient funds in your account to pay items including checks and drafts as well as ACH, debit card, and other transactions. Pending transactions and holds placed on your account may reduce your available balance and may cause you to overdraft your account regardless of your current balance. Although holds on debit card transactions that have been authorized and not yet posted reduce your available balance, those authorization holds will not prevent certain items, such as ACH transactions and checks, from posting to your account. In such cases, subsequent posting of the pending transactions may further overdraw your account and may be subject to additional fees.
 

You should assume that any item which would overdraft your account based on your available balance may create an Overdraft Fee.
 

HOW TRANSACTIONS ARE POSTED TO YOUR ACCOUNT: There are two main types of transactions that affect your account: credits (deposits of money into your account) and debits (payments out of your account). Posting transactions to your account impacts the balance in your account. Posting a debit decreases your balance. Posting a credit increases your balance.
 

POSTING ORDERS: You agree that we may in our discretion determine our posting orders for the transactions in your account and that we may debit, credit, authorize, accept, pay, decline, or return credits or debits, and determine holds in any order at our option. While we have the sole discretion to determine or change our posting order for the transactions in your account, this section is intended to summarize how we generally post some common transactions to your account.
 

Generally, we group different types of transactions into categories. We use several different categories for holds, credits, and debits. Most categories include more than one transaction type. After the business day ends, our system assigns each transaction received for that day to a category. We generally post all transactions within a category, using the posting order or orders that apply to that category, before we post any transactions assigned to the next category.
 

Generally, when posting your transactions, we start with the current balance in your account at the beginning of the business day. We then subtract holds from your balance and make any adjustments from the prior day (including adjustments for fees). We generally add credits to your balance and then subtract debits from your balance. A few, but not all, categories are shown below. For each debit and credit category shown below, we list some common types of debits and credits that we assign to the category.

• After we subtract from your balance holds and make any adjustments from the prior day, we add credits and deposits to your balance.
  • In some cases when you deposit an item, the full amount of the deposit may not be available to you at the time of deposit. Please refer to our current Funds Availability disclosure for details regarding the timing and availability of funds from deposits.
  • Common credits in this category include:
    • Direct deposits and ACH transactions - These transactions are posted according to the settlement date of the entry. These may be posted earlier than the settlement date at our discretion.
    • Cash and checks deposited in your account.
• Then, we subtract most types of debits from your balance.
  • Common debits in this category include:
    • Debits from checking accounts for the purpose of funding wire transfers or the purchase of negotiable instruments.

    • Debits for loan payments.

    • Withdrawals and transfers made at our ATMs or with our tellers.

    • Checks written by you that are cashed at our ATMs (if and where available) or with our tellers.

    • Debit card transactions.
• Then, we subtract from your balance many other types of electronic debits (that are not checks).
  • Common debits in this category include

    • Scheduled transfers.

    • Preauthorized or automatic payments that use your deposit account number (also known as ACH payments).
• After the above steps, for other checks your write, we subtract from your balance checks. Generally, when you write a check it is processed through a system. We receive data files of cashed checks from the system each day. The checks drawn on your account are compiled from these data files and paid each day. First, checks without a check number that we are able to read are subtracted in order from lowest to highest dollar amount. Next, for checks with a check number that we are able to read, checks are posted to your account in the order of the check number, from lowest check number to highest check number as we are able to process them.
  • For example, consider the event in which we receive six checks that are signed in your name and which are not cashed at our ATMs (if and where available) or with our tellers. Our systems are able to read only two of the check numbers: No. 800 and No. 802. The remaining four checks do not have check numbers which our system is able to identify and read. In this scenario, we subtract the four unnumbered checks in order from lowest to highest dollar amount. Next, we subtract check No. 800. Then, we subtract check No. 802.
• Finally, we subtract some remaining debits, including debits from telephone transfers.

This is a general description of certain types of transactions. These practices may change, and we reserve the right to pay or post items in any order we choose permitted by law.
 

CHANGES TO POSTING ORDER: As we noted above, you agree that we may determine in our sole discretion the orders in which we post transactions to your account.

You agree that we may determine in our sole discretion the categories, the transactions within each category, the order among and between categories, and the posting orders within each category. Generally, there are times where we revise, add, or delete categories; we may also change posting orders within categories and move transaction types among and between categories. Therefore, you agree that we may in our discretion make these changes at any time without notice to you.

If required by law to post transactions in a particular order, we may adjust the posting order to comply with such law without notice to you.
 

OUR SYSTEMS DETERMINE POSTING ORDERS AT END OF BUSINESS DAY: We receive holds, credits, and debits throughout the day. Regardless of when during the day we receive transactions for your account, you agree that we may treat them as if we received all transactions at the same time at the end of the business day.
 

During the day, we may show some transactions as processing or "pending". However, you should be aware that the transactions shown as processing have not been posted yet. The posting order for these transactions is determined at the end of the day, with the other transactions we receive for that day.
 

You should be aware that we often do not receive debits on the same day that you conduct them. As an example, when you use your debit card to pay for a purchase and sign for the transaction, we typically receive an authorization request from the merchant that same day; however, we might not receive the final debit card transaction for payment and posting until several days later.
 

We generally post credits and debits to your account, and report them on your statement, which may result in a different order than the order in which you conduct them or we receive them.
 

PAYMENT OF NSF FEES: We determine at the time we post a debit to your account whether it creates an overdraft and whether an Overdraft Fee applies.

If, on any day, the available funds in your account are not sufficient to pay the full amount of a paper or electronic check, draft, ACH transaction, request for electronic payment, or any other transaction posted to your account plus any applicable fee, we may pay or return the overdraft. Overdraft transactions can be presented for payment multiple times by the merchant requesting payment, which may be beyond our control. When several debits arrive on the same business day for payment from your account and you do not have enough funds to cover all of the debits, you understand that some posting orders may result in more overdrafts, and more fees for overdraft items, than other posting orders. You understand and agree that we may choose the posting order in our sole discretion, and may also change them from time to time regardless of whether additional fees may occur. Our determination that insufficient funds are available in your account balance may be made at any time between presentment and our deadline with only one review of the account required. You should note that sometimes we will authorize a transaction at a time when you have enough available funds to cover it, but because other transactions post before it and reduce your balance, the transaction creates an overdraft when we post it to your account. Your available balance can change several times each day and may change in a matter of minutes based on the transactions you make with others and how and when they are presented to us for payment. We do not have to notify you if your account does not have sufficient available funds to pay an overdraft.
 

Both account owner and joint owner agree that they are jointly and separately liable for negative balances on accounts in which the account owner or joint owner have an ownership interest.
 

ACCOUNT TERMINATION: You and we agree that either of us may close your account and terminate this Agreement at any time with or without cause, including for example, if a zero balance is carried on the account for the lesser of 45 days or the date your account statement is produced reflecting a zero balance. If you receive a bank statement that reflects a zero balance and contains the words "FINAL STATEMENT", our processing system has automatically closed your account. Your account may be reactivated provided you notify us immediately and make a deposit into your account. You agree that advance written notice from us will be reasonable if it is mailed to your statement mailing address immediately upon account closure. You agree that in instances of account abuse or to prevent a loss, notice is reasonably given by us if mailed immediately upon account closure. You may close any of your accounts by notifying us in writing. Further, for security reasons, we may require you to close your account and to open a new account if: there is a change in authorized signers; there has been a forgery or fraud reported or committed involving your account; any account checks are lost or stolen; you have too many transfers from your account; or, any other provision of this Agreement with you is violated. After the account is closed, we have no obligation to accept deposits or pay any outstanding checks. You agree to hold us harmless for refusing to honor any check drawn on a closed account. The termination of this Agreement and closing of an account will not release you from any fees or other obligations incurred prior to the date upon which this Agreement is terminated and an account closed, any fees assessed by us in the process of closing an account, or from your responsibility to maintain sufficient funds in an account to cover any outstanding checks or other debit items.

MISCELLANEOUS PROVISIONS: You agree not to use the account in any illegal activity. If you ask us to follow instructions that we believe might expose us to any claim, liability, or damages, we may refuse to follow your instructions or may require a bond or other protection, including your agreement to indemnify us. You agree to be liable to us, to the extent permitted by law, for any loss, costs, or expenses that we may incur as a result of any dispute or legal proceeding involving your account. Any action by us for reimbursement from you for any costs or expenses may also be made against your estate, heirs and legal representatives, who shall be liable for any claims made against and expenses incurred by us. If a court finds any provision of the Agreement to be invalid or unenforceable, such finding shall not make the rest of the Agreement invalid or unenforceable. If feasible, any such offending provision shall be deemed to be modified to be within the limits of enforceability or validity; however, if the offending provision cannot be so modified, it shall be stricken and all other provisions of the Agreement in all other respects shall remain valid and enforceable.

ARBITRATION: You and we agree that all disputes, claims and other controversies between us, arising from this account or otherwise, including without limitation contract and tort disputes ("Disputes") shall be arbitrated in the county in which the account was opened pursuant to the applicable JAMS arbitration rules or its successor in effect at the time the claim is filed, upon request of either party. All of the expenses charged by the Arbitrator, in excess of an amount that would be incurred in filing in a court of appropriate jurisdiction, shall be borne exclusively by us. The Federal Arbitration Act shall apply to the construction, interpretation, and enforcement of this arbitration provision.
 

SYSTEMS AND SOFTWARE: We shall not be responsible to you for any loss or damages suffered by you as a result of the failure of systems and software used by you to interface with our systems or systems and software utilized by you to initiate or process banking transactions whether such transactions are initiated or processed directly with our systems or through a third party service provider. You acknowledge that you are solely responsible for the adequacy of systems and software utilized by you to process banking transactions and the ability of such systems and software to do so accurately.
 

GOVERNING LAW: This Agreement shall be governed by and construed in accordance with all applicable federal laws and all applicable substantive laws of the state identified in the Terms and Conditions. In addition, we are subject to certain federal and state regulations and local clearing house rules governing the subject matter of the Agreement. You understand that we must comply with these laws, regulations, and rules. You agree that if there is any inconsistency between the terms of the Agreement and any applicable law, regulation, or rule, the terms of the Agreement will prevail to the extent any such law, regulation, or rule may be modified by agreement.
 

Limitation to right of set-off against Social Security Funds. Anything to the contrary in this Agreement notwithstanding, we will not exercise our right of set off against Social Security funds in your account except for debts relating directly to the account (such as NSF fees and account maintenance charges). You consent and agree that subsequent Social Security funds which are deposited into the account may at our discretion be used to cover NSF fees, or account maintenance fees.