Business Account Disclosures

TERMS AND CONDITIONS OF YOUR ACCOUNT

IMPORTANT ACCOUNT OPENING INFORMATION - Federal law requires us to obtain sufficient information to verify your identity. You may be asked several questions and to provide one or more forms of identification to fulfill this requirement. In some instances we may use outside sources to confirm the information. The information you provide is protected by our privacy policy and federal law.

AGREEMENT - This document, along with any other documents we give you pertaining to your account(s), is a contract that establishes rules which control your account(s) with us. Please read this carefully and retain it for future reference. If you sign the signature card or open or continue to use the account, you agree to these rules. You will receive a separate schedule of rates, qualifying balances, and fees if they are not included in this document. If you have any questions, please call us.

This agreement is subject to applicable federal laws, the laws of the state of Rhode Island and other applicable rules such as the operating letters of the Federal Reserve Banks and payment processing system rules (except to the extent that this agreement can and does vary such rules or laws). The body of state and federal law that governs our relationship with you, however, is too large and complex to be reproduced here. The purpose of this document is to:

  1. summarize some laws that apply to common transactions;
  2. establish rules to cover transactions or events which the law does not regulate;
  3. establish rules for certain transactions or events which the law regulates but permits variation by agreement; and
  4. give you disclosures of some of our policies to which you may be entitled or in which you may be interested.

If any provision of this document is found to be unenforceable according to its terms, all remaining provisions will continue in full force and effect. We may permit some variations from our standard agreement, but we must agree to any variation in writing either on the signature card for your account or in some other document. Nothing in this document is intended to vary our duty to act in good faith and with ordinary care when required by law.

As used in this document the words “we,” “our,” and “us” mean the financial institution and the words “you” and “your” mean the account holder(s) and anyone else with the authority to deposit, withdraw, or exercise control over the funds in the account. However, this agreement does not intend, and the terms “you” and “your” should not be interpreted, to expand an individual’s responsibility for an organization’s liability. If this account is owned by a corporation, partnership or other organization, individual liability is determined by the laws generally applicable to that type of organization. The headings in this document are for convenience or reference only and will not govern the interpretation of the provisions. Unless it would be inconsistent to do so, words and phrases used in this document should be construed so the singular includes the plural and the plural includes the singular.

LIABILITY - You agree, for yourself (and the person or entity you represent if you sign as a representative of another) to the terms of this account and the schedule of charges. You authorize us to deduct these charges, without notice to you, directly from the account balance as accrued. You will pay any additional reasonable charges for services you request which are not covered by this agreement.

Each of you also agrees to be jointly and severally (individually) liable for any account shortage resulting from charges or overdrafts, whether caused by you or another with access to this account. This liability is due immediately, and we can deduct any amounts deposited into the account and apply those amounts to the shortage. You have no right to defer payment of this liability, and you are liable regardless of whether you signed the item or benefited from the charge or overdraft.

You will be liable for our costs as well as for our reasonable attorneys’ fees, to the extent permitted by law, whether incurred as a result of collection or in any other dispute involving your account. This includes, but is not limited to, disputes between you and another joint owner; you and an authorized signer or similar party; or a third party claiming an interest in your account. This also includes any action that you or a third party takes regarding the account that causes us, in good faith, to seek the advice of an attorney, whether or not we become involved in the dispute. All costs and attorneys’ fees can be deducted from your account when they are incurred, without notice to you.

DEPOSITS - We will give only provisional credit until collection is final for any items, other than cash, we accept for deposit (including items drawn “on us”). Before settlement of any item becomes final, we act only as your agent, regardless of the form of indorsement or lack of indorsement on the item and even though we provide you provisional credit for the item. We may reverse any provisional credit for items that are lost, stolen, or returned. 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 which was initially paid by the payor bank and which is later returned to us due to 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. You authorize us to attempt to collect previously returned items without giving you notice, and in attempting to collect we may permit

the payor bank to hold an item beyond the midnight deadline. Actual credit for deposits of, or payable in, foreign currency will be at the exchange rate in effect on final collection in U.S. dollars. We are not responsible for transactions by mail or outside depository until we actually record them. We will treat and record all transactions received after our “daily cutoff time” on a business day we are open, or received on a day we are not open for business, as if initiated on the next business day that we are open. At our option, we may take an item for collection rather than for deposit. If we accept a third-party check or draft for deposit, we may require any third-party indorsers to verify or guarantee their indorsements, or indorse in our presence.

WITHDRAWALS -

Generally - Unless clearly indicated otherwise on the account records, any of you, acting alone, who signs to open the account or has authority to make withdrawals may withdraw or transfer all or any part of the account balance at any time. Each of you (until we receive written notice to the contrary) authorizes each other person who signs or has authority to make withdrawals to indorse any item payable to you or your order for deposit to this account or any other transaction with us.

Postdated checks - A postdated check is one which bears a date later than the date on which the check is written. We may properly pay and charge your account for a postdated check even though payment was made before the date of the check, unless we have received written notice of the postdating in time to have a reasonable opportunity to act. Because we process checks mechanically, your notice will not be effective and we will not be liable for failing to honor your notice unless it precisely identifies the number, date, amount and payee of the item.

Checks and withdrawal rules - If you do not purchase your check blanks from us, you must be certain that we approve the check blanks you purchase. We may refuse any withdrawal or transfer request which you attempt on forms not approved by us or by any method we do not specifically permit. We may refuse any withdrawal or transfer request which is greater in number than the frequency permitted, or which is for an amount greater or less than any withdrawal limitations. We will use the date the transaction is completed by us (as opposed to the date you initiate it) to apply the frequency limitations. In addition, we may place limitations on the account until your identity is verified.

Even if we honor a nonconforming request, we are not required to do so later. If you violate the stated transaction limitations (if any), in our discretion we may close your account or reclassify it as a transaction account. If we reclassify your account, your account will be subject to the fees and earnings rules of the new account classification.

If we are presented with an item drawn against your account that would be a “substitute check,” as defined by law, but for an error or defect in the item introduced in the substitute check creation process, you agree that we may pay such item.

Cash withdrawals - We recommend you take care when making large cash withdrawals because carrying large amounts of cash may pose a danger to your personal safety. As an alternative to making a large cash withdrawal, you may want to consider a cashier's check or similar instrument. You assume full responsibility of any loss in the event the cash you withdraw is lost, stolen, or destroyed. You agree to hold us harmless from any loss you incur as a result of your decision to withdraw funds in the form of cash.

Multiple signatures, electronic check conversion, and similar transactions - An electronic check conversion transaction is a transaction where a check or similar item is converted into an electronic fund transfer as defined in the Electronic Fund Transfers regulation. In these types of transactions the check or similar item is either removed from circulation (truncated) or given back to you. As a result, we have no opportunity to review the signatures or otherwise examine the original check or item. You agree that, as to these or any items as to which we have no opportunity to examine the signatures, you waive any requirement of multiple signatures.

Notice of withdrawal - We reserve the right to require not less than 7 days’ notice in writing before each withdrawal from an interest-bearing account other than a time deposit or demand deposit, or from any other savings account as defined by Regulation D. (The law requires us to reserve this right, but it is not our general policy to use it.) Withdrawals from a time account prior to maturity or prior to any notice period may be restricted and may be subject to penalty. See your notice of penalty for early withdrawal.

UNDERSTANDING AND AVOIDING OVERDRAFT, NONSUFFICIENT FUNDS (NSF) AND UNAVAILABLE FUNDS FEES -

Generally - The information in this section is being provided to help you understand what happens if your account is overdrawn. Understanding the concepts of overdrafts, nonsufficient funds (NSF) and unavailable funds is important and can help you avoid being assessed fees or charges. This section also provides contractual terms relating to overdrafts, NSF and unavailable funds transactions.

An overdrawn account will typically result in you being charged an overdraft fee or an NSF fee. Generally, an overdraft occurs when your actual balance (sometimes called the ledger balance ) in your account is not sufficient to cover a transaction. An NSF transaction is slightly different. In an NSF transaction, we do not cover the transaction. Instead, the transaction is rejected and the item or requested payment is returned. In either situation, we can charge you a NSF fee.

If you use our Overdraft Privilege that comes with your account, and we cover a transaction for which there is not enough money in your ledger balance, we will consider that an overdraft and an NSF fee will be assessed. We treat all other transactions for which there is not enough money in your ledger balance as an NSF

transaction, regardless of whether we cover the transaction or the transaction is rejected.

An Unavailable Funds (UAF) fee occurs when there is not enough money in your available balance to pay for a transaction, but we pay (or cover) the transaction anyway.

Only one charge of either type of fee, NSF or UAF, will be assessed per transaction.

Your account’s actual balance (sometimes called the ledger balance ) only includes transactions that have settled up to that point in time, that is, transactions (deposits and payments) that have posted to your account. The ledger balance does not include outstanding transactions (such as checks that have not yet cleared and electronic transactions that have been authorized but which are still pending and have not posted to your account). The balance on your periodic statement is the ledger balance for your account as of the statement date.

As the name implies, your available balance is calculated based on the money “available” in your account to make payments. In other words, the available balance takes transactions that have been authorized, but not yet settled, and subtracts them from the ledger balance. In addition, when calculating your available balance, any “holds” placed on deposits that have not yet cleared are also subtracted from the actual balance. For more information on how holds placed on funds in your account can impact your available balance, read the subsection titled “A Preauthorized hold affects your account balance.”

Overdrafts - You understand that we may, at our discretion, honor withdrawal requests that overdraw your account. However, the fact that we may honor withdrawal requests that overdraw the account balance does not obligate us to do so later. So you can NOT rely on us to pay overdrafts on your account regardless of how frequently or under what circumstances we have paid overdrafts on your account in the past. We can change our practice of paying, or not paying, discretionary overdrafts on your account without notice to you. You can ask us if we have other account services that might be available to you where we commit to paying overdrafts under certain circumstances, such as an overdraft protection line- of-credit or a plan to sweep funds from another account you have with us. You agree that we may charge fees for overdrafts. We may use subsequent deposits, including direct deposits of social security or other government benefits, to cover such overdrafts and overdraft fees.

Balance information - Keeping track of your balance is important. You can review your balance in a number of ways including reviewing your periodic statement, reviewing your balance online, accessing your account information by phone, or coming into one of our branches.

Funds availability - Knowing when funds you deposit into your checking account will be made available for withdrawal is another important concept that can help you avoid being assessed fees or charges. Please see our funds availability disclosure for information on when different types of deposits will be made available for withdrawal. For those accounts to which our funds availability policy disclosure does not apply, you can ask us when you make a deposit when those funds will be available for withdrawal. An item may be returned after the funds from the deposit of that item are made available for withdrawal. In that case, we will reverse the credit of the item. We may determine the amount of available funds in your account for the purpose of deciding whether to return an item for insufficient funds at any time between the times we receive the item and when we return the item or send a notice in lieu of return. We need only make one determination, but if we choose to make a subsequent determination, the account balance at the subsequent time will determine whether there are insufficient available funds.

A Preauthorized hold affects your account balance. What is a preauthorized hold?

When a debit card is used in a transaction that requires your signature, a hold is placed on your account for an amount sent to us by the merchant, usually the purchase amount. While this hold does not reduce your account balance, it is subtracted from that amount to arrive at your available balance. The funds on hold are no longer available for use. Once the transaction is settled by the merchant, the hold is released and the transaction posts to your account, thereby reducing your account balance.

Why would a preauthorized hold be different from the purchase amount?

Some merchants, especially gas stations, hotels, car rental companies and restaurants, will preauthorize a transaction for an amount that is higher or lower than the actual purchase amount.

Gas stations: Many gas stations will preauthorize transactions for more than the actual purchase amount because they do not know how much gas will actually be pumped at the moment you swipe your card.

Restaurants: Some restaurants will preauthorize a transaction amount larger than the actual bill in the event that you wish to add gratuity to the transaction.

Hotels: If using a debit card to make reservations, hotels will generally preauthorize a transaction amount equal to one night’s stay. Upon check-in, the hotel may add another preauthorization for the total cost of your stay. In addition, they may increase the amount slightly to cover for possible incidental expenses.

Car Rental Companies: Most car rental companies will preauthorize a transaction amount greater than the contracted rental cost to cover any additional expenses, such as refilling the gas tank or incidental damage.

It is important to note that even though the merchant may preauthorize a transaction for an amount greater than what is owed, the final transaction posting to your account should always be the final purchase amount you have authorized.

How do I avoid preauthorized holds on my account?

Whenever possible, enter your PIN when conducting debit card transactions. Most PIN based transactions post to your account immediately and will not create a preauthorization hold. Alternatively, consider using your BankNewport credit card. Using your BankNewport credit card for hotel or car rentals will eliminate significant preauthorized holds against your account.

Please refer to our separate schedule of common fees for additional information about fees that could be incurred.

Payment order of items - To assist you in handling your account with us, we are providing you with the following information regarding how we process the items that you authorize. When processing items drawn on your account, our policy is to pay them as we receive them. The Bank commonly receives items to be processed against your account multiple times per day in what is referred to as presentment files. Each presentment file received commonly contains a large amount of a specific type of item (Check, ACH, or ATM/POS). It is common for each of these presentment files to contain multiple items to be processed against your account. In this case, when multiple items are received at once, the items will be paid as follows: checks are paid in order of check number, lowest to highest; ACH items in each presentment file post credits first, then debits paid by dollar amount, lowest to highest, and generally we will receive up to four ACH presentment files per day; ATM/POS items are paid in the order they are presented. Items performed in person such as withdrawals or checks cashed with a staff member at one of our locations, are generally paid at the time they are performed.

The order in which items are paid is important if there is not enough money in your account to pay all of the items that are presented. Our payment policy may cause your larger, and perhaps more important, items to not be paid first (such as your rent or mortgage payment), but may reduce the amount of overdraft or NSF fees you have to pay if funds are not available to pay all of the items. If an item is presented without sufficient funds in your account to pay it, we may, at our discretion, pay the item (creating an overdraft) or return the item (NSF). The amounts of the overdraft and NSF fees are disclosed elsewhere. We encourage you to make careful records and practice good account management. This will help you to avoid writing checks or drafts without sufficient funds and incurring the resulting fees.

BUSINESS, ORGANIZATION AND ASSOCIATION ACCOUNTS - Earnings in the form of interest, dividends, or credits will be paid only on collected funds, unless otherwise provided by law or our policy. You represent that you have the authority to open and conduct business on this account on behalf of the entity. We may require the governing body of the entity opening the account to give us a separate authorization telling us who is authorized to act on its behalf. We will honor the authorization until we actually receive written notice of a change from the governing body of the entity.

STOP PAYMENTS - Unless otherwise provided, the rules in this section cover stopping payment of items such as checks and drafts. Rules for stopping payment of other types of transfers of funds, such as consumer electronic fund transfers, may be established by law or our policy. If we have not disclosed these rules to you elsewhere, you may ask us about those rules.

We may accept an order to stop payment on any item from any one of you. You must make any stop-payment order in the manner required by law and we must receive it in time to give us a reasonable opportunity to act on it before our stop-payment cutoff time. Because stop-payment orders are handled by computers, to be effective, your stop-payment order must precisely identify the number, date, and amount of the item, and the payee. You may stop payment on any item drawn on your account whether you sign the item or not. Generally, if your stop-payment order is given to us in writing it is effective for six months. Your order will lapse after that time if you do not renew the order in writing before the end of the six-month period. If the original stop- payment order was oral your stop-payment order will lapse after 14 calendar days if you do not confirm your order in writing within that time period. We are not obligated to notify you when a stop-payment order expires.

If you stop payment on an item and we incur any damages or expenses because of the stop payment, you agree to indemnify us for those damages or expenses, including attorneys’ fees. You assign to us all rights against the payee or any other holder of the item. You agree to cooperate with us in any legal actions that we may take against such persons. You should be aware that anyone holding the item may be entitled to enforce payment against you despite the stop-payment order.

Our stop-payment cutoff time is one hour after the opening of the next banking day after the banking day on which we receive the item. Additional limitations on our obligation to stop payment are provided by law (e.g., we paid the item in cash or we certified the item).

TELEPHONE TRANSFERS - A telephone transfer of funds from this account to another account with us, if otherwise arranged for or permitted, may be made by the same persons and under the same conditions generally applicable to withdrawals made in writing. Limitations on the number of telephonic transfers from a savings account are described elsewhere.

ONLINE BANKING TRANSFERS - A transfer of funds via Online Banking from this account to another account with us, if otherwise arranged for or permitted, may be made by the same persons and under the same conditions generally applicable to withdrawals made in writing. Unless a different limitation is disclosed in writing, we restrict the number of transfers from a business savings account to another account to a maximum of six per month (less the number of “preauthorized transfers” during the month). Other account transfer restrictions may be described elsewhere.

ATM TRANSACTIONS - There will be an ATM withdrawal/inquiry service charge fee for ATM transactions (including inquiries) performed at ATMs we do not own or operate.

AMENDMENTS AND TERMINATION - We may change any term of this agreement. Rules governing changes in interest rates are provided separately in the Truth-in- Savings disclosure or in another document. For other changes, we will give you reasonable notice in writing or by any other method permitted by law. We may also close this account at any time upon reasonable notice to you and tender of the account balance personally or by mail. Items presented for payment after the account is closed may be dishonored. When you close your account, you are responsible for leaving enough money in the account to cover any outstanding items to be paid from the account. Reasonable notice depends on the circumstances, and in some cases such as when we cannot verify your identity or we suspect fraud, it might be reasonable for us to give you notice after the change or account closure becomes effective. For instance, if we suspect fraudulent activity with respect to your account, we might immediately freeze or close your account and then give you notice. If we have notified you of a change in any term of your account and you continue to have your account after the effective date of the change, you have agreed to the new term(s).

NOTICES - Any written notice you give us is effective when we actually receive it, and it must be given to us according to the specific delivery instructions provided elsewhere, if any. We must receive it in time to have a reasonable opportunity to act on it. If the notice is regarding a check or other item, you must give us sufficient information to be able to identify the check or item, including the precise check or item number, amount, date and payee. Written notice we give you is effective when it is deposited in the United States Mail with proper postage and addressed to your mailing address we have on file. Notice to any of you is notice to all of you.

STATEMENTS - Your duty to report unauthorized signatures, alterations and forgeries - You must examine your statement of account with “reasonable promptness.” If you discover (or reasonably should have discovered) any unauthorized signatures or alterations, you must promptly notify us of the relevant facts. As between you and us, if you fail to do either of these duties, you will have to either share the loss with us, or bear the loss entirely yourself (depending on whether we used ordinary care and, if not, whether we substantially contributed to the loss). The loss could be not only with respect to items on the statement but other items with unauthorized signatures or alterations by the same wrongdoer.

You agree that the time you have to examine your statement and report to us will depend on the circumstances, but will not, in any circumstance, exceed a total of 30 days from when the statement is first sent or made available to you.

You further agree that if you fail to report any unauthorized signatures, alterations or forgeries in your account within 60 days of when we first send or make the statement available, you cannot assert a claim against us on any items in that statement, and as between you and us the loss will be entirely yours. This 60-day limitation is without regard to whether we used ordinary care. The limitation in this paragraph is in addition to that contained in the first paragraph of this section.

Your duty to report other errors or problems - In addition to your duty to review your statements for unauthorized signatures, alterations and forgeries, you agree to examine your statement with reasonable promptness for any other error or problem - such as an encoding error or an unexpected deposit amount. Also, if you receive or we make available either your items or images of your items, you must examine them for any unauthorized or missing indorsements or any other problems. You agree that the time you have to examine your statement and items and report to us will depend on the circumstances. However, this time period shall not exceed 60 days. Failure to examine your statement and items and report any errors to us within 60 days of when we first send or make the statement available precludes you from asserting a claim against us for any errors on items identified in that statement and as between you and us the loss will be entirely yours.

Duty to notify if statement not received - You agree to immediately notify us if you do not receive your statement by the date you normally expect to receive it. Not receiving your statement in a timely manner is a sign that there may be an issue with your account, such as possible fraud or identity theft.

ACCOUNT TRANSFER - This account may not be transferred or assigned without our prior written consent.

DIRECT DEPOSITS - If we are required for any reason to reimburse the federal government for all or any portion of a benefit payment that was directly deposited into your account, you authorize us to deduct the amount of our liability to the federal government from the account or from any other account you have with us, without prior notice and at any time, except as prohibited by law. We may also use any other legal remedy to recover the amount of our liability.

TEMPORARY ACCOUNT AGREEMENT - If the account documentation indicates that this is a temporary account agreement, each person who signs to open the account or has authority to make withdrawals (except as indicated to the contrary) may transact business on this account. However, we may at some time in the future restrict or prohibit further use of this account if you fail to comply with the requirements we have imposed within a reasonable time.

SETOFF - We may (without prior notice and when permitted by law) set off the funds in this account against any due and payable debt any of you owe us now or in the future. If this account is owned by one or more of you as individuals, we may set off any funds in the account against a due and payable debt a partnership owes us now or in the future, to the extent of your liability as a partner for the partnership debt. If your debt arises from a promissory note, then the amount of the due and payable debt will be the full amount we have demanded, as entitled under the terms of the note, and this amount may include any portion of the balance for which we have properly accelerated the due date.

This right of setoff does not apply to this account if prohibited by law. For example, the right of setoff does not apply to this account if: (a) it is an Individual Retirement Account or similar tax-deferred account, or (b) the debt is created by a consumer credit transaction under a credit card plan (but this does not affect our rights under any consensual security interest), or (c) the debtor’s right of withdrawal only arises in a representative capacity. We will not be liable for the dishonor of any check 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 setoff.

RESTRICTIVE LEGENDS OR INDORSEMENTS - The automated processing of the large volume of checks we receive prevents us from inspecting or looking for restrictive legends, restrictive indorsements or other special instructions on every check. For this reason, we are not required to honor any restrictive legend or indorsement or other special instruction placed on checks you write unless we have agreed in writing to the restriction or instruction. Unless we have agreed in writing, we are not responsible for any losses, claims, damages, or expenses that result from your placement of these restrictions or instructions on your checks. Examples of restrictive legends placed on checks are “must be presented within 90 days” or “not valid for more than $1,000.00.” The payee’s signature accompanied by the words “for deposit only” is an example of a restrictive indorsement.

FACSIMILE SIGNATURES - Unless you make advance arrangements with us, we have no obligation to honor facsimile signatures on your checks or other orders. If we do agree to honor items containing facsimile signatures, you authorize us, at any time, to charge you for all checks, drafts, or other orders, for the payment of money, that are drawn on us. You give us this authority regardless of by whom or by what means the facsimile signature(s) may have been affixed so long as they resemble the facsimile signature specimen filed with us, and contain the required number of signatures for this purpose. You must notify us at once if you suspect that your facsimile signature is being or has been misused.

CHECK PROCESSING - We process items mechanically by relying solely on the information encoded in magnetic ink along the bottom of the items. This means that we do not individually examine all of your items to determine if the item is properly completed, signed and indorsed or to determine if it contains any information other than what is encoded in magnetic ink. You agree that we have exercised ordinary care if our automated processing is consistent with general banking practice, even though we do not inspect each item. Because we do not inspect each item, if you write a check to multiple payees, we can properly pay the check regardless of the number of indorsements unless you notify us in writing that the check requires multiple indorsements. We must receive the notice in time for us to have a reasonable opportunity to act on it, and you must tell us the precise date of the check, amount, check number and payee. We are not responsible for any unauthorized signature or alteration that would not be identified by a reasonable inspection of the item. Using an automated process helps us keep costs down for you and all account holders.

CHECK CASHING - We may charge a fee for anyone that does not have an account with us who is cashing a check, draft or other instrument written on your account. We may also require reasonable identification to cash such a check, draft or other instrument. We can decide what identification is reasonable under the circumstances and such identification may be documentary or physical and may include collecting a thumbprint or fingerprint.

INDORSEMENTS - We may accept for deposit any item payable to you or your order, even if they are not indorsed by you. We may give cash back to any one of you. We may supply any missing indorsement(s) for any item we accept for deposit or collection, and you warrant that all indorsements are genuine.

To ensure that your check or share draft is processed without delay, you must indorse it (sign it on the back) in a specific area. Your entire indorsement (whether a signature or a stamp) along with any other indorsement information (e.g. additional indorsements, ID information, driver’s license number, etc.) must fall within 1 1 / 2 ” of the “trailing edge” of a check. Indorsements must be made in blue or black ink, so that they are readable by automated check processing equipment.

As you look at the front of a check, the “trailing edge” is the left edge. When you flip the check over, be sure to keep all indorsement information within 1 1 / 2 ” of that edge.

It is important that you confine the indorsement information to this area since the

remaining blank space will be used by others in the processing of the check to place additional needed indorsements and information. You agree that you will indemnify, defend, and hold us harmless for any loss, liability, damage or expense that occurs because your indorsement, another indorsement or information you have printed on the back of the check obscures our indorsement.

These indorsement guidelines apply to both personal and business checks.

DEATH OR INCOMPETENCE - You agree to notify us promptly if any person with a right to withdraw funds from your account(s) dies or is adjudicated (determined by the appropriate official) incompetent. We may continue to honor your checks, items, and instructions until: (a) we know of your death or adjudication of incompetence, and (b) we have had a reasonable opportunity to act on that knowledge. You agree that we may pay or certify checks drawn on or before the date of death or adjudication of incompetence for up to ten (10) days after your death or adjudication of incompetence unless ordered to stop payment by someone claiming an interest in the account.

FIDUCIARY ACCOUNTS - Accounts may be opened by a person acting in a fiduciary capacity. A fiduciary is someone who is appointed to act on behalf of and for the benefit of another. We are not responsible for the actions of a fiduciary, including the misuse of funds. This account may be opened and maintained by a person or persons named as a trustee under a written trust agreement, or as executors, administrators, or conservators under court orders. You understand that by merely opening such an account, we are not acting in the capacity of a trustee in connection with the trust nor do we undertake any obligation to monitor or enforce the terms of the trust or letters.

CREDIT VERIFICATION - You agree that we may verify credit and employment history by any necessary means, including preparation of a credit report by a credit reporting agency.

LEGAL ACTIONS AFFECTING YOUR ACCOUNT - If we are served with a subpoena, restraining order, writ of attachment or execution, levy, garnishment, search warrant, or similar order relating to your account (termed “legal action” in this section), we will comply with that legal action. Or, in our discretion, we may freeze the assets in the account and not allow any payments out of the account until a final court determination regarding the legal action. We may do these things even if the legal action involves less than all of you. In these cases, we will not have any liability to you if there are insufficient funds to pay your items because we have withdrawn funds from your account or in any way restricted access to your funds in accordance with the legal action. Any fees or expenses we incur in responding to any legal action (including, without limitation, attorneys’ fees and our internal expenses) may be charged against your account. The list of fees applicable to your account(s) provided elsewhere may specify additional fees that we may charge for certain legal actions.

ACCOUNT SECURITY -

Duty to protect account information and methods of access - It is your responsibility to protect the account numbers and electronic access devices (e.g., an ATM card) we provide you for your account(s). Do not discuss, compare, or share information about your account number(s) with anyone unless you are willing to give them full use of your money. An account number can be used by thieves to issue an electronic debit or to encode your number on a false demand draft which looks like and functions like an authorized check. If you furnish your access device and grant actual authority to make transfers to another person (a family member or coworker, for example) who then exceeds that authority, you are liable for the transfers unless we have been notified that transfers by that person are no longer authorized.

Your account number can also be used to electronically remove money from your account, and payment can be made from your account even though you did not contact us directly and order the payment.

You must also take precaution in safeguarding your blank checks. Notify us at once if you believe your checks have been lost or stolen. As between you and us, if you are negligent in safeguarding your checks, you must bear the loss entirely yourself or

share the loss with us (we may have to share some of the loss if we failed to use ordinary care and if we substantially contributed to the loss).

Positive pay and other fraud prevention services - Except for consumer electronic fund transfers subject to Regulation E, you agree that if we offer you services appropriate for your account to help identify and limit fraud or other unauthorized transactions against your account, and you reject those services, you will be responsible for any fraudulent or unauthorized transactions which could have been prevented by the services we offered. You will not be responsible for such transactions if we acted in bad faith or to the extent our negligence contributed to the loss. Such services include positive pay or commercially reasonable security procedures. If we offered you a commercially reasonable security procedure which you reject, you agree that you are responsible for any payment order, whether authorized or not, that we accept in compliance with an alternative security procedure that you have selected. The positive pay service can help detect and prevent check fraud and is appropriate for account holders that issue: a high volume of checks, a lot of checks to the general public, or checks for large dollar amounts.

TELEPHONIC INSTRUCTIONS - Unless required by law or we have agreed otherwise in writing, we are not required to act upon instructions you give us via facsimile transmission or leave by voice mail or on a telephone answering machine.

MONITORING AND RECORDING TELEPHONE CALLS AND CONSENT TO RECEIVE COMMUNICATIONS - 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.

To provide you with the best possible service in our ongoing business relationship for your account we may need to contact you about your account from time to time by telephone, text messaging or email. However, we first obtain your consent to contact you about your account in compliance with applicable consumer protection provisions in the federal Telephone Consumer Protection Act of 1991 (TCPA), CAN- SPAM Act and their related federal regulations and orders issued by the Federal Communications Commission (FCC).

  • Your consent is limited to your account, and as authorized by applicable law and regulations.
  • Your consent is voluntary and not conditioned on the purchase of any product or service from us.

With the above understandings, you authorize us to contact you regarding your account throughout its existence using any telephone numbers or email addresses that you have previously provided to us by virtue of an existing business relationship or that you may subsequently provide to us.

This consent is regardless of whether the number we use to contact you is assigned to a landline, a paging service, a cellular wireless service, a specialized mobile radio service, other radio common carrier service or any other service for which you may be charged for the call. You further authorize us to contact you through the use of voice, voice mail and text messaging, including the use of pre-recorded or artificial voice messages and an automated dialing device.

If necessary, you may change or remove any of the telephone numbers or email addresses at any time using any reasonable means to notify us.

CLAIM OF LOSS - If you claim a credit or refund because of a forgery, alteration, or any other unauthorized withdrawal, you agree to cooperate with us in the investigation of the loss, including giving us an affidavit containing whatever reasonable information we require concerning your account, the transaction, and the circumstances surrounding the loss. You will notify law enforcement authorities of any criminal act related to the claim of lost, missing, or stolen checks or unauthorized withdrawals. We will have a reasonable period of time to investigate the facts and circumstances surrounding any claim of loss. Unless we have acted in bad faith, we will not be liable for special or consequential damages, including loss of profits or opportunity, or for attorneys’ fees incurred by you.

You agree that you will not waive any rights you have to recover your loss against anyone who is obligated to repay, insure, or otherwise reimburse you for your loss. You will pursue your rights or, at our option, assign them to us so that we may pursue them. Our liability will be reduced by the amount you recover or are entitled to recover from these other sources.

EARLY WITHDRAWAL PENALTIES (and involuntary withdrawals) - We may impose early withdrawal penalties on a withdrawal from a time account even if you don’t initiate the withdrawal. For instance, the early withdrawal penalty may be imposed if the withdrawal is caused by our setoff against funds in the account or as a result of an attachment or other legal process. We may close your account and impose the early withdrawal penalty on the entire account balance in the event of a partial early withdrawal. See your notice of penalty for early withdrawals for additional information.

ADDRESS OR NAME CHANGES - You are responsible for notifying us of any change in your address or your name. Unless we agree otherwise, change of address or name must be made in writing by at least one of the account holders. Informing us of your address or name change on a check reorder form is not sufficient. We will attempt to communicate with you only by use of the most recent address you have provided to us. If provided elsewhere, we may impose a service fee if we attempt to locate you.

RESOLVING ACCOUNT DISPUTES - We may place an administrative hold on the funds in your account (refuse payment or withdrawal of the funds) if it becomes subject to a claim adverse to (1) your own interest; (2) others claiming an interest as survivors or beneficiaries of your account; or (3) a claim arising by operation of law. The hold may be placed for such period of time as we believe reasonably necessary to allow a legal proceeding to determine the merits of the claim or until we receive evidence satisfactory to us that the dispute has been resolved. We will not be liable for any items that are dishonored as a consequence of placing a hold on funds in your account for these reasons.

WAIVER OF NOTICES - To the extent permitted by law, you waive any notice of non-payment, dishonor or protest regarding any items credited to or charged against your account. For example, if you deposit an item and it is returned unpaid or we receive a notice of nonpayment, we do not have to notify you unless required by federal Regulation CC or other law.

TRUNCATION, SUBSTITUTE CHECKS, AND OTHER CHECK IMAGES - If you truncate an original check and create a substitute check, or other paper or electronic image of the original check, you warrant that no one will be asked to make payment on the original check, a substitute check or any other electronic or paper image, if the payment obligation relating to the original check has already been paid. You also warrant that any substitute check you create conforms to the legal requirements and generally accepted specifications for substitute checks. You agree to retain the original check in conformance with our internal policy for retaining original checks. You agree to indemnify us for any loss we may incur as a result of any truncated check transaction you initiate. We can refuse to accept substitute checks that have not previously been warranted by a bank or other financial institution in conformance with the Check 21 Act. Unless specifically stated in a separate agreement between you and us, we do not have to accept any other electronic or paper image of an original check.

REMOTELY CREATED CHECKS - Like any standard check or draft, a remotely created check (sometimes called a telecheck, preauthorized draft or demand draft) is a check or draft that can be used to withdraw money from an account. Unlike a typical check or draft, however, a remotely created check is not issued by the paying bank and does not contain the signature of the account owner (or a signature purported to be the signature of the account owner). In place of a signature, the check usually has a statement that the owner authorized the check or has the owner’s name typed or printed on the signature line.

You warrant and agree to the following for every remotely created check we receive from you for deposit or collection: (1) you have received express and verifiable authorization to create the check in the amount and to the payee that appears on the check; (2) you will maintain proof of the authorization for at least 2 years from the date of the authorization, and supply us the proof if we ask; and (3) if a check is returned you owe us the amount of the check, regardless of when the check is returned. We may take funds from your account to pay the amount you owe us, and if there are insufficient funds in your account, you still owe us the remaining balance.

UNLAWFUL INTERNET GAMBLING NOTICE - Restricted transactions as defined in Federal Reserve Regulation GG are prohibited from being processed through this account or relationship. Restricted transactions generally include, but are not limited to, those in which credit, electronic fund transfers, checks, or drafts are knowingly accepted by gambling businesses in connection with the participation by others in unlawful Internet gambling.

FUNDS TRANSFERS - The terms used in this section have the meaning given to them in Article 4A of the Uniform Commercial Code - Funds Transfers (UCC 4A). This section will generally not apply to you if you are a consumer. However, even if you are a consumer, this section will apply to that part of any funds transfer that is conducted by Fedwire. This section is subject to UCC 4A as adopted in the state in which you have your deposit with us. This agreement is also subject to all clearing house association rules, rules of the Board of Governors of the Federal Reserve System and their operating circulars. If any part of this agreement is determined to be unenforceable, the rest of the agreement remains effective. This agreement controls funds transfers unless supplemented or amended in a separate written agreement signed by us. This agreement does not apply to a funds transfer if any part of the transfer is governed by the Electronic Fund Transfer Act of 1978 (EFTA), except this agreement does apply to a funds transfer that is a remittance transfer as defined in EFTA unless the remittance transfer is an electronic fund transfer as defined in EFTA.

Funds transfer - A funds transfer is the transaction or series of transactions that begin with the originator’s payment order, made for the purpose of making payment to the beneficiary of the order. A funds transfer is completed by the acceptance by the beneficiary’s bank of a payment order for the benefit of the beneficiary of the originator’s order. You may give us a payment order orally, electronically, or in writing, but your order cannot state any condition to payment to the beneficiary other than the time of payment. Credit entries may be made by ACH.

Authorized account - An authorized account is a deposit account you have with us that you have designated as a source of payment of payment orders you issue to us. If you have not designated an authorized account, any account you have with us is an authorized account to the extent that payment of the payment order is not inconsistent with the use of the account.

Acceptance of your payment order - We are not obligated to accept any payment order that you give us, although we normally will accept your payment order if you have a withdrawable credit in an authorized account sufficient to cover the order. If we do not execute your payment order, but give you notice of our rejection of your payment order after the execution date or give you no notice, we are not liable to pay you as restitution any interest on a withdrawable credit in a non-interest bearing account.

Cutoff time - If we do not receive your payment order or communication canceling or amending a payment order before our cutoff time on a funds transfer day for that type of order or communication, the order or communication will be deemed to be received at the opening of our next funds transfer business day.

Payment of your order - If we accept a payment order you give us, we may receive payment by automatically deducting from any authorized account the amount of the payment order plus the amount of any expenses and charges for our services in execution of your payment order. We are entitled to payment on the payment or execution date. Unless your payment order specifies otherwise, the payment or execution date is the funds transfer date we receive the payment order. The funds transfer is completed upon acceptance by the beneficiary’s bank. Your obligation to pay your payment order is excused if the funds transfer is not completed, but you are still responsible to pay us any expenses and charges for our services. However, if you told us to route the funds transfer through an intermediate bank, and we are unable to obtain a refund because the intermediate bank that you designated has suspended payments, then you are still obligated to pay us for the payment order. You will not be entitled to interest on any refund you receive because the beneficiary’s bank does not accept the payment order.

Security procedure - As described more fully in a separate writing, the authenticity of a payment order or communication canceling or amending a payment order issued in your name as sender may be verified by a security procedure. You affirm that you have no circumstances which are relevant to the determination of a commercially reasonable security procedure unless those circumstances are expressly contained in a separate writing signed by us. You may choose from one or more security procedures that we have developed, or you may develop your own security procedure if it is acceptable to us. If you refuse a commercially reasonable security procedure that we have offered you, you agree that you will be bound by any payment order issued in your name, whether or not authorized, that we accept in good faith and in compliance with the security procedure you have chosen.

Duty to report unauthorized or erroneous payment - You must exercise ordinary care to determine that all payment orders or amendments to payment orders that we accept that are issued in your name are authorized, enforceable, in the correct amount, to the correct beneficiary, and not otherwise erroneous. If you discover (or with reasonable care should have discovered) an unauthorized, unenforceable, or erroneously executed payment order or amendment, you must exercise ordinary care to notify us of the relevant facts. The time you have to notify us will depend on the circumstances, but that time will not in any circumstance exceed 14 days from when you are notified of our acceptance or execution of the payment order or amendment or that your account was debited with respect to the order or amendment. If you do not provide us with timely notice you will not be entitled to interest on any refundable amount. If we can prove that you failed to perform either of these duties with respect to an erroneous payment and that we incurred a loss as a result of the failure, you are liable to us for the amount of the loss not exceeding the amount of your order.

Identifying number - If your payment order identifies an intermediate bank, beneficiary bank, or beneficiary by name and number, we and every receiving or beneficiary bank may rely upon the identifying number rather than the name to make payment, even if the number identifies an intermediate bank or person different than the bank or beneficiary identified by name. Neither we nor any receiving or beneficiary bank have any responsibility to determine whether the name and identifying number refer to the same financial institution or person.

Record of oral or telephone orders - You agree that we may, if we choose, record any oral or telephone payment order or communication of amendment or cancelation.

Notice of credit - If we receive a payment order to credit an account you have with us, we are not required to provide you with any notice of the payment order or the credit.

Provisional credit - You agree to be bound by the Automated Clearing House Association (ACH) operating rules that provide that payments made to you or originated by you by funds transfer through the automated clearing house system are provisional until final settlement is made through a Federal Reserve Bank or otherwise payment is made as provided in Article 4A-403(a) of the Uniform Commercial Code.

Refund of credit - You agree that if we do not receive payment of an amount credited to your account, we are entitled to a refund from you in the amount credited and the party originating such payment will not be considered to have paid the amount so credited.

Amendment of funds transfer agreement - From time to time we may amend any term of this agreement by giving you reasonable notice in writing. We may give notice to anyone who is authorized to send payment orders to us in your name, or to anyone who is authorized to accept service.

Cancelation or amendment of payment order - You may cancel or amend a payment order you give us only if we receive the communication of cancelation or amendment before our cutoff time and in time to have a reasonable opportunity to act on it before we accept the payment order. The communication of cancelation or amendment must be presented in conformity with the same security procedure that has been agreed to for payment orders.

Intermediaries - We are not liable for the actions of any intermediary, regardless of whether or not we selected the intermediary. We are not responsible for acts of God, outside agencies, or nonsalaried agents.

Limit on liability - You waive any claim you may have against us for consequential or special damages, including loss of profit arising out of a payment order or funds transfer, unless this waiver is prohibited by law. We are not responsible for attorney fees you might incur due to erroneous execution of payment order.

Erroneous execution - If we receive an order to pay you, and we erroneously pay you more than the amount of the payment order, we are entitled to recover from you the amount in excess of the amount of the payment order, regardless of whether you may have some claim to the excess amount against the originator of the order.

Objection to payment - If we give you a notice that reasonably identifies a payment order issued in your name as sender that we have accepted and received payment for, you cannot claim that we are not entitled to retain the payment unless you notify us of your objection to the payment within 60 days of our notice to you.

We may decide to close your account if a zero balance remains in your account for longer than 60 calendar days.

Illegal Internet gambling transactions are prohibited under the Unlawful Internet Gambling Enforcement Act and will not be processed.

We may, from time to time, need to temporarily suspend processing of an International Automated Clearing House Transaction (IAT) for further investigation and this may delay your settlement.

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YOUR ABILITY TO WITHDRAW FUNDS

This policy statement applies to “transaction” accounts. Transaction accounts, in general, are accounts which permit an unlimited number of payments to third persons and an unlimited number of telephone and preauthorized transfers to other accounts of yours with us. Checking accounts are the most common transaction accounts. Feel free to ask us whether any of your other accounts might also be under this policy.

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 the funds are available, you can withdraw them in cash and we will use the funds to pay checks that you have written.

Please remember that even after we have made funds available to you, and you have withdrawn the funds, you are still responsible for checks you deposit that are returned to us unpaid and for any other problems involving your deposit.

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 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 closing or on a day we are not open, we will consider that the deposit was made on the next business day we are open.

If you make a deposit at an ATM before 5:30 P.M. 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 at an ATM after 5:30 P.M. or on a day we are not open, we will consider that the deposit was made on the next business day we are open.

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.

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

LONGER DELAYS MAY APPLY

Case-by-case delays. In some cases, we will not make all of the funds that you deposit by check available to you on the first business day after the day of your deposit. Depending on the type of check that you deposit, funds may not be available until the second business day after the day of your deposit. The first $225 of your deposits, however, may be available on the first business day.

If we are not going to make all of the funds from your deposit available on the first business day after the day of your deposit, we will notify you at the time you make your deposit. We will also tell you when the funds will be available. If your deposit is not made directly to one of our employees, or if we decide to take this action after you have left the premises, we will mail you the notice by the day after we receive your deposit.

If you will need the funds from a deposit right away, you should ask us when the funds will be available.

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

We believe a check you deposit will not be paid.

You deposit checks totaling more than $5,525 on any one day. You redeposit a check that has been returned unpaid.

You have overdrawn your account repeatedly in the last six months.

There is an emergency, such as failure of 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 fifth 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 day we receive the deposit. Funds from deposits of cash, wire transfers, and the first

$5,525 of a day’s total deposits of cashier’s, certified, teller’s, traveler’s, and federal, state and local government checks will be available on the first business day after the day of your deposit if the deposit meets certain conditions. For example, the checks must be payable to you (and you may have to use a special deposit slip). The excess over $5,525 will be available on the ninth business day after the day of your deposit. If your deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, the first $5,525 will not be available until the second business day after the day of your deposit.

The first $5,525 of a day’s total deposit of all other checks will be available on the fifth business day after the day of your deposit. The excess over $5,525 will be available the ninth business day after the day of your deposit.

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SPECIFIC ACCOUNT DETAILS

BUSINESS STATEMENT SAVINGS ACCOUNT

Rate Information - At our discretion, we may change the interest rate and annual percentage yield on your account at any time.

Compounding and crediting frequency - Interest will be compounded every month. Interest will be credited to your account every month.

Effect of closing an account - If you close your account before interest is credited, you will not receive the accrued interest.

Minimum balance to open the account - You must deposit $100.00 to open this account.

Minimum balance to avoid imposition of fees - A maintenance service charge fee of $3.00 will be imposed every monthly statement cycle if the balance in the account falls below $100.00 any day of the monthly statement cycle.

Minimum balance to obtain the annual percentage yield disclosed - You must maintain a minimum balance of $100.00 in the account each day in order to obtain the disclosed annual percentage yield.

Daily balance computation method - We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.

Accrual of interest on noncash deposits - Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks).

Transaction limitations:

See Savings Account Transaction Restrictions in Common Features section.

Non-Profit Accounts: Non-profit organizations are allowed to open a Statement Savings Account with no maintenance service charge fee.

BUSINESS MONEY MARKET SAVINGS ACCOUNT

Rate Information - At our discretion, we may change the interest rate and annual percentage yield on your account at any time.

Compounding and crediting frequency - Interest will be compounded every month. Interest will be credited to your account every month.

Effect of closing an account - If you close your account before interest is credited, you will not receive the accrued interest.

Minimum balance to open the account - You must deposit $2,500.00 to open this account.

Minimum balance to avoid imposition of fees - A maintenance service charge fee of $10.00 will be imposed every monthly statement cycle if the balance in the account falls below $2,500.00 any day of the monthly statement cycle.

Minimum balance to obtain the annual percentage yield disclosed - You must maintain a minimum balance of $2,500.00 in the account each day in order to obtain the disclosed annual percentage yield.

Daily balance computation method - We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.

Accrual of interest on noncash deposits - Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks).

Transaction limitations:

See Savings Account Transaction Restrictions in Common Features section.

BUSINESS SELECT PLUS MONEY MARKET ACCOUNT

(With Business Select Plus Checking or Business Analysis Checking)

To open this account you must have either a Business Select Plus Checking or Business Analysis Checking account in the same EIN.

Rate Information - At our discretion, we may change the interest rate and annual percentage yield on your account at any time.

Compounding and crediting frequency - Interest will be compounded every month. Interest will be credited to your account every month.

Effect of closing an account - If you close your account before interest is credited, you will not receive the accrued interest.

Minimum balance to open the account - A minimum opening deposit of $2,500.00 is required to open the account.

Minimum balance to avoid imposition of fees - A maintenance service charge fee of $10.00 will be imposed every monthly statement cycle if the balance in the account falls below $2,500.00 any day of the monthly statement cycle.

Minimum balance to obtain the annual percentage yield disclosed - You must maintain a minimum balance of $0.01 in the account each day in order to obtain the disclosed annual percentage yield.

Daily balance computation method - We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.

Accrual of interest on noncash deposits - Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks).

Transaction limitations:

See Savings Account Transaction Restrictions in Common Features section.

BUSINESS ANALYSIS CHECKING ACCOUNT

Minimum balance to open the account - You must deposit $100.00 to open this account.

Earnings Credit - This account features an earnings credit which is applied to reduce or eliminate some of the fees on the account. If the earnings credit exceeds those fees for any period, you will be assessed none of those fees but you will not be paid, carry forward or otherwise receive credit for any excess earnings credit. The fees to which the earnings credit is applied are account maintenance, debit transaction items, deposits, and items deposited.

Earnings Credit Calculation - The earnings credit will be calculated by applying the periodic earnings credit rate to the average daily investable balance in the account for the period. At our discretion, the periodic earnings credit rate may change at any time. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing by the number of days in the period. The period we use is the monthly statement cycle. The investable balance is the average daily balance reduced by 10%.

Accrual of earnings credit on noncash deposits - Earnings credit begins to accrue no later than the business day we anticipate we will receive credit for the deposit of noncash items (for example, checks).

Fees:

An account maintenance fee of $20.00 will be charged each statement cycle.

Debit transaction items (excludes ATM and POS transactions) $.20 each

Deposits $.75 each

Items deposited $.08 each

An FDIC insurance assessment fee may apply. Refer to monthly Account Analysis Statement for applicable fee.

Debit transaction items include individual withdrawals, items presented by the Automated Clearing House Association (ACH), and drafts or checks paid.

Two or more accounts with the same tax identification number can be linked to offset charges with combined balances.

BUSINESS SELECT PLUS CHECKING ACCOUNT

Minimum balance to open the account - You must deposit $100.00 to open this account.

Minimum balance to avoid imposition of fees - A maintenance service charge fee of $15.00 will be imposed every monthly statement cycle if the average daily balance for the monthly statement cycle falls below $15,000.00 in combined deposit balances (checking, savings, money market and certificates of deposit) for accounts with the same Tax ID Number. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period.

Fees:

A transaction fee of $.50 will be charged for each debit transaction item, deposit, and item deposited in excess of 300 during a statement cycle (excludes ATM and POS and ACH transactions).

Paper statement fee is $3.00.

BUSINESS SELECT CHECKING ACCOUNT

Minimum balance to open the account - You must deposit $100.00 to open this account.

Minimum balance to avoid imposition of fees - A maintenance service charge fee of $5.00 will be imposed each monthly statement cycle if the average daily balance in the account falls below $1,500.00 for the monthly statement cycle. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period.

Fees:

A transaction fee of $.50 will be charged for each debit transaction item, deposit, and item deposited in excess of 50 during a statement cycle (excludes ATM and POS and ACH transactions).

Paper statement fee is $5.00.

IOLTA Checking Account

Minimum balance to open the account - You must deposit $100.00 to open this account.

IOLTA accounts are not subject to a monthly maintenance fee, per item fee, or wire transfer fee.

YOUR ACCOUNT

These are the accounts you have opened or inquired about. Further details about these accounts are inside this disclosure. If the figures are not filled in, please see the insert that is with this disclosure or your periodic statement.

□ BUSINESS STATEMENT SAVINGS ACCOUNT

Tier 2 - If your daily balance is $2,500.00 or more, the interest rate paid on the entire balance in your account will be ————— % with an annual percentage yield of

————— %.

BUSINESS NON-PROFIT CHECKING

Minimum balance to open the account - You must deposit $100.00 to open this account.

Minimum balance to avoid imposition of fees - There is no minimum balance required to avoid fees.

Fees:

A transaction fee of $.35 will be charged for each debit transaction item, deposit, and item deposited in excess of 300 during a statement cycle (excludes ATM and POS and ACH transactions).

COMMON FEATURES

Overdraft Fees: An overdraft fee applies to transactions that include checks, preauthorized debits, Point of Sale (POS) transactions, telephone transfers, ATM transactions, online bill payments, Internet banking transactions, in-person withdrawals, or items created by other electronic means.

Please refer to our separate fee schedule for additional information about charges.

We may require not less than 7 days’ notice in writing before each withdrawal from an interest-bearing account other than a time deposit, or from any other savings account as defined by Regulation D. Withdrawals from a time account prior to maturity or prior to any notice period may be restricted and may be subject to penalty. See your notice of penalty for early withdrawal.

Account organization - Business checking accounts (excluding Earnings Credit and IOLTA accounts) will consist of two subaccounts, one subaccount being a negotiable order of withdrawal subaccount and the other subaccount being a savings subaccount. At various times during a statement cycle funds may, based on various circumstances and subject to certain limitations, be transferred by us between the subaccounts. All such transfers will be in accordance with the provisions of Regulation D and other applicable laws.

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Tier 1 - If your daily balance is more than $99.99, but less than $2,500.00, the

interest rate paid on the entire balance in your account will be ————— % with an annual percentage yield of ————— %.

□ BUSINESS MONEY MARKET SAVINGS ACCOUNT

Tier 5 - If your daily balance is $75,000.00 or more, the interest rate paid on the entire balance in your account will be ————— % with an annual percentage yield

of ————— %.

Tier 4 - If your daily balance is more than $49,999.99, but less than $75,000.00, the interest rate paid on the entire balance in your account will be ————— % with an annual percentage yield of ————— %.

Tier 3 - If your daily balance is more than $24,999.99, but less than $50,000.00, the interest rate paid on the entire balance in your account will be ————— % with an annual percentage yield of ————— %.

Tier 2 - If your daily balance is more than $9,999.99, but less than $25,000.00, the interest rate paid on the entire balance in your account will be ————— % with an annual percentage yield of ————— %.

Tier 1 - If your daily balance is more than $2,499.99, but less than $10,000.00, the interest rate paid on the entire balance in your account will be ————— % with an annual percentage yield of ————— %.

BUSINESS SELECT PLUS MONEY MARKET ACCOUNT

(With Business Select Plus Checking or Business Analysis Checking)

Tier 5 - If your daily balance is $500,000.00 or more, the interest rate paid on the

entire balance in your account will be ————— % with an annual percentage yield of ————— %.

Tier 4 - If your daily balance is more than $249,999.99, but less than $500,000.00, the

interest rate paid on the entire balance in your account will be ————— % with an annual percentage yield of ————— %.

Tier 3 - If your daily balance is more than $99,999.99, but less than $250,000.00, the

interest rate paid on the entire balance in your account will be ————— % with an annual percentage yield of ————— %.

Tier 2 - If your daily balance is more than $49,999.99, but less than $100,000.00, the

interest rate paid on the entire balance in your account will be ————— % with an annual percentage yield of ————— %.

Tier 1 - If your daily balance is more than $9,999.99, but less than $50,000.00, the interest rate paid on the entire balance in your account will be ————— % with an annual percentage yield of ————— %.

®

Member FDIC
(401) 845-2265
1-877-709-2265
Rev. 4/20
BankNewport

 

Business Account Overdraft Disclosure

Life happens! BankNewport understands that unexpected overdrafts occur from time to time – Overdraft Coverage can help. We have several options to choose from.

Overdraft Coverage Options

The choice is yours. Consider these ways to cover overdrafts:

Service

Cost

Overdraft Protection Link to Another Deposit

Account you have at BankNewport1

$8 fee per transfer

Business Overdraft Protection Line of Credit1, 2,

$6 fee per transfer + 15.00% interest p.a.

Overdraft Privilege

$35.00 overdraft fee per item.

1 Contact us at 1-877-709-2265 or come by a branch to sign up or apply for these services; 2 Subject to credit approval.

Overdraft Protection services apply to many types of transactions and allow you to link other sources at BankNewport, such as another deposit account or overdraft line of credit, to your checking account to pay an overdraft transaction for a fee or finance charge. This may help prevent your account from becoming overdrawn. Please note that overdraft lines of credit are subject to credit approval.

Overdraft Privilege allows you to overdraw your account for a fee in order to pay a transaction.

Even if you have overdraft protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted.

Overdraft Privilege is available for Business checking accounts, 30 days after account opening in the amount of $1500.

Transactions Covered with

Overdraft Privilege

Extended Coverage

Checks

X

ACH - Auto Debits

X

Recurring Debit Card Payments

X

Teller Window Transactions

X

ATM Withdrawals

X

Everyday Debit Card Purchases

X

You can discontinue the Overdraft Privilege in its entirety by contacting us at 1-877-709-2265.

 

Important Information about Overdraft Fees

With the growth of electronic banking, it’s easier than ever to lose track of your account balances or forget to record transactions, resulting in an overdrawn account balance. Overdrafts occur when you do not have sufficient funds available to cover transactions made, such as checks, ATM withdrawals, debit card purchases, automatic payments or other electronic transactions.

What is an overdraft?

An overdraft occurs when a transaction posts against your account for which funds are unavailable.

Why does my statement show a Non-Sufficient Funds Charge and an Unavailable Funds Charges?

Both of these charges occur when you do not have sufficient available funds in your account to cover a transaction. A Non-Sufficient Funds Charge is assessed when a transaction exceeds the amount of funds currently on deposit with BankNewport, therefore creating a negative account balance. An Unavailable Funds Charge is assessed when a transaction exceeds the amount of available funds on deposit with BankNewport. Only one charge of either type will be assessed per transaction.

What is the difference between my account balance and available balance?

Your account balance is the actual amount of funds on deposit with BankNewport. Your available balance is the amount of actual funds on deposit minus any preauthorized debit card holds or the amount of a deposit not yet available due to the Bank’s Funds Availability Policy.

What is a preauthorized hold?

When a debit card is used in a transaction that requires your signature, a hold is placed on your account for an amount sent to us by the merchant, usually the purchase amount. While this hold does not reduce your account balance, it is subtracted from that amount to arrive at your available balance. The funds on hold are no longer available for use. Once the transaction is settled by the merchant, the hold is released and the transaction posts to your account, thereby reducing your account balance.

Why would a preauthorized hold be different from the purchase amount?

Some merchants, especially gas stations, hotels, car rental companies and restaurants, will preauthorize a transaction for an amount that is higher or lower than the actual purchase amount.

Gas stations: Many gas stations will preauthorize transactions for more than the actual purchase amount because they do not know how much gas will actually be pumped at the moment you swipe your card.

Restaurants: Some restaurants will preauthorize a transaction amount larger than the actual bill in the event that you wish to add gratuity to the transaction.

Hotels: If using a debit card to make reservations, hotels will generally preauthorize a transaction amount equal to one night’s stay. Upon check-in, the hotel may add another preauthorization for the total cost of your stay. In addition, they may increase the amount slightly to cover for possible incidental expenses.

Car Rental Companies: Most car rental companies will preauthorize a transaction amount greater than the contracted rental cost to cover any additional expenses, such as refilling the gas tank or incidental damage.

It is important to note that even though the merchant may preauthorize a transaction for an amount greater than what is owed, the final transaction posting to your account should always be the final purchase amount you have authorized.

How do I avoid preauthorized holds on my account?

Whenever possible, enter your PIN when conducting debit card transactions. Most PIN based transactions post to your account immediately and will not create a preauthorization hold. Alternatively, consider using your BankNewport credit card. Using your BankNewport credit card for hotel or car rentals will eliminate significant preauthorized holds against your account.

How can I avoid overdraft fees?

The best way to avoid overdraft fees is to manage your account carefully:

Keep your check register up to date by recording checks written, ATM withdrawals, or debit card purchases made immediately. If other persons have access to the account, be sure to record their activity as well.

Periodically check your account balances through Online Banking, Mobile Banking, performing a balance inquiry at an ATM, visiting your local branch or calling our Direct Banking Center.

Record all transactions immediately and do not assume they may take days to post. For example, even though you have written a check to pay for a purchase, do not assume it will take days to clear your account. Many times the information from your check is used to turn create an electronic transfer that can clear much faster than a check.

Consider setting up Online Banking alerts to alert you when your account balance goes below a threshold that you have set.

Consider overdraft protection services such as linking another deposit or savings account, or an overdraft protection line of credit. These services may be subject to fees, credit approval and variable interest rates. Please contact us or visit your local branch for details.

HELP US PREVENT IDENTITY FRAUD …
The Federal Trade Commission has reported that the fastest-growing crime in the United States is identity fraud. Protecting yourself from becoming a victim of this crime is very important.

HELP PREVENT FRAUD , IDENTITY THEFT AND TERRORISM

Under the USA PATRIOT Act, financial institutions have requirements that will help prevent crime and terrorism. The Act requires financial institutions to collect information from individuals or legal entities which would help establish identity.

To comply with this requirement, when establishing a relationship with us, we ask for your cooperation during the information gathering process. You may be asked additional questions to confirm your identity. You may also need to present one or more of the following:

Driver’s license

Passport and country of issuance

U.S. taxpayer identification (ID) number

Alien ID card

Any other government-issued document evidencing nationality or residence.

 

WE HOPE YOU RECOGNIZE THAT THIS ADDED PROCESS PROTECTS US ALL

SCHEDULE OF COMMON FEES FOR CHECKING & SAVINGS ACCOUNTS

Effective November 1, 2017, the following fees may be assessed against your account and the following transaction limitations, if any, apply to your account.

Account Escheatment Fee

$50.00

Account Activity Printout

$5.00

Account Research (per hour)

Minimum charge $25.00

ATM Withdrawal/Transfer/Inquiry Service

Charge (for using a non-BankNewport ATM)

$2.00

Bonds and Coupons (waived for Platinum

customers)

$20.00

Check Printing (fee depends on style of checks ordered)

Counter Checks

$1.00

Cashier’s Checks

$8.00

Deposit Bags

$20.00

Direct Deposit Fee

No Charge

Dormant Account Fee (per month)*

$5.00

Domestic Collection Fee

$25.00

Foreign Currency Orders

$12.50

Foreign Drafts (available to customers only)

$30.00

IRA Transfer Fee (outgoing)

$25.00

Large Coin/Currency Deposit

No Charge

Legal Process Fee (Levy or Attachment)

$75.00

Personal Money Order

$5.00

Photocopies (copy of check or statement)

$5.00

Photocopies for Personal Checking (after the first 12 per year)

$5.00

Replacement ATM/Debit Card

$5.00

Returned Check Fee (Deposited or Cashed)

$10.00

Special Handling (per month)

$25.00

Stop Payment Fee/ACH Stop Payment Fee

$30.00

#1 Card Order/Replacement Fee

$8.95

Overdraft Fees:

Insufficient funds fees and unavailable funds fees will be known collectively as overdraft fees.

Insufficient Funds Charge – Returned (transaction rejected)** Insufficient Funds Charge – Paid**

Unavailable Funds Charge – Returned (transaction rejected)*** Unavailable Funds Charge – Paid***

Overdraft Fees Maximum Fees per Day

Consumer Accounts Business Accounts

Overdraft Protection Transfer Fee (from loan) ****

Overdraft Protection Transfer Fee (from deposit account) ****

$35.00

$35.00

$35.00

$35.00

$175.00

$350.00

$6.00

$8.00

Safe Deposit Box Rental per Year (all boxes are 32” in length)†

2” x 5”

$50.00

3” x 5”

$60.00

5” x 5”

$65.00

3” x 10”

$90.00

5” x 10”

$100.00

10” x 10”

$164.00

10” x 15”

$179.00

15” x 15” (Washington Square Branch Only)

$204.00

15” x 30” (Washington Square Branch Only)

$254.00

30” x 30” (Washington Square Branch Only)

$304.00

26” x 21” (Barrington Branch Only)

$379.00

Safe Deposit Box Drilling

$200.00

Safe Deposit Box Rental Late Fee (30 days past due)

$15.00

Safe Deposit Box Replacement Key

$10.00

Wire Transfer Fees

Wire Transfers Incoming Credited to an Account

$15.00

Domestic Wire Transfers Outgoing (available to customers only)

$25.00

Foreign Wire Transfers Outgoing (available to customers only)

(Varies) Minimum Charge – Consumer

$45.00

(Varies) Minimum Charge – Commercial

$35.00

* Dormant Account Fee - An account is considered dormant if for 12 months no credits or debits, other than credited interest and other bank charges, have been made to the account.

** Insufficient Funds Charge – apply to transactions that include checks, preauthorized debits, Point of Sale (POS) transactions, telephone transfers, ATM transactions, Digital Banking bill payments, Digital Banking transactions, in-person withdrawals, or items created by other electronic means. An Insufficient Funds Charge is assessed when one of these transaction types exceeds the amount of the ledger balance on deposit with BankNewport. (See Important Information about Overdraft Fees for more detailed information)

*** Unavailable Funds Charge – apply to transactions that include checks, Digital Banking bill payments, Digital Banking transactions, in-person withdrawals and external withdrawals. An Unavailable Funds Charge is assessed when one of these transaction types exceeds the amount of available funds on deposit with BankNewport. (See Important Information about Overdraft Fees for more detailed information)

****An Overdraft Protection Transfer Fee is a transfer or sweep that has been preauthorized by you and occurs automatically for the purpose of transferring funds between deposit accounts or from a loan account to a checking account to provide overdraft protection.

†Safe Deposit Boxes and Safe Deposit Box sizes are not available in all branches, please ask a representative for availability.

BankNewport may require not less than 7 days’ notice in writing before each withdrawal from a NOW account or any savings account (other than a time deposit) as defined by Regulation D. Withdrawals from a time account prior to maturity or prior to any notice period may be restricted and may be subject to penalty. See your notice of penalty for early withdrawal.

Revision Date: November 2017