Business Deposit Account Contract
Table of Contents
CONTRACT TERMS AND DISCLOSURES
1. This is a Contract Between You and Your Credit Union
2. Organization of Your and Our Agreement
3. Membership at the Credit Union
6. Account Access and Transactions
9. Dividends/Interest and Rates
11. Account Insurance Coverage
12. Lost Checks, Drafts, and Cards
13. Membership, Account, Service, and Transaction Information
14. All Accounts are Non-Transferable, Non-Assignable, and Non-Negotiable
15. Notice by Us to You & Notice by You to Us
16. Your Statement About Your Account(s), Services, and Obligations
18. Exceptions to this Contract
19. Lien and Security Interest in Account Funds
21. Legal Action Against Your Account for Funds or Information
23. Our Responsibility for Errors
24. Accounts Determined Inactive
25. Funds Presumed Unclaimed Property
27. Termination of Your Membership at Credit Union
28. Deceased Account Owners, Claims and Transactions
29. Your Irrevocable Waiver of Your Rights to Make Testamentary Dispositions
30. This Contract and State and Federal Law
Funds Availability Disclosures
2. Reservation of Right to Hold
5. Special Rules for New Accounts
Electronic Fund Transfer Disclosures
3. Security of Personal Identification Number
6. Credit Union Liability for Failure to Make Transactions
7. Termination of EFT Services
2. Member Information We Collect
3. Member Information We Share
4. Our Confidentiality and Security Safeguards
6. Protecting Children’s Information Privacy
Important Information About Procedures for Opening a New Account
Part 2 - Your and Our Business Deposit Account Contract
CONTRACT TERMS AND DISCLOSURES
1. This is a Contract Between You and Your Credit Union
a. Contract for Accounts and Services. You understand that Parts 1 and 2 create a legally binding Business Deposit Account Contract (“Contract”) that governs your accounts and services with our Credit Union. This Part 2 explains the specific Contract terms, disclosures, responsibilities and liabilities of membership, account ownership and related services for your accounts with us. By applying for membership, opening an account, requesting a service, and signing or otherwise validating Part 1 of this Contract, you and Authorized Persons signing on your behalf are agreeing to the terms and conditions, and the accompanying responsibilities and liabilities of this Contract which includes our Electronic Fund Transfer disclosures, Funds Availability disclosures, Privacy Policy and Rate and Fee disclosures. You promise that all the information provided by you to us in Part 1 of this Contract is complete and true, and has been completed according to your instructions, as confirmed by your signature on or validation of Part 1 of this Contract, and/or through your use of an account or a service. You agree that we may rely exclusively on the terms of Parts 1 and 2 of your and our Contract, and further agree that we have no obligation to rely on any other documents, unless otherwise required. It is the essential purpose of this Contract to fairly apportion the responsibilities and liabilities of membership, account ownership, and services used by each member between that member and the Credit Union, which in turn enables the Credit Union to provide the best products and services possible, in the most cost effective manner, for the benefit of all members of the Credit Union.
b. Questions? Please Ask Us. Please read and keep this Contract so that you can refer to it anytime you have a question about your membership, an account, or a service. You understand and acknowledge that you may contact us anytime we are open for business to obtain additional copies of this Contract, and that you can also access Part 2 of this Contract and all our disclosures anytime on our website at www.cosden.org. As an owner of this Credit Union it is particularly important that you read and follow the terms of this Contract so that we can meet your account and account related service needs, and in order for you to carry out your responsibilities and avoid any losses or liability. You further understand that this Contract is written in English, and that it is your responsibility to get help from us and persons of your own choosing (such as family, friends, employers, etc.) should you have any language difficulties in reading and understanding this Contract. Should you have any questions about a matter addressed in this Contract (Parts 1 and 2), please contact us toll free at 800-725-2673 or 432-264-2600 during business hours and/or www.cosden.org, and we will be happy to answer your questions about and/or explain any matter addressed in our Contract.
c. Important Definitions for Your and Our Contract. In this Contract the words “we,” “our,” and “us” mean the Credit Union, and the words “you” and “your” mean you the account owner(s) (“member” or “owner”), including Representatives and Signers (“Authorized Persons”) who may be authorized to conduct transactions on the account in a representative capacity, as applicable. A “Representative” may conduct transactions on, change or close an account, and may add, change or terminate a service for an account. A “Signer” may only conduct transactions on and receive information about an account, but may not change or close an account, or add, change or terminate a service for an account (see Section 5).
The word “Business” (and “Organization”) means a corporation, limited liability company, partnership, unincorporated association, or similar organization, group or entity that is eligible for membership at the Credit Union.
The terms “people” or “person” mean human beings.
An “account” means any savings or share, checking or share draft, or certificate or share certificate account that you own at the Credit Union.
The word “transaction” means: (i) any action, instruction, order, or request that would increase or decrease the balance in an account, or would impose a lien or security interest on funds in the account, and (ii) any other request for services or information in connection with the account. The term “transaction” does not include changing or closing an account. You may conduct a transaction by any means that we allow, such as in person, by phone, at an Automated Teller Machine (ATM), our services that can be accessed through the internet or by card or mail.
d. Right to Rely on this Contract. You acknowledge the receipt of and agree to the terms, responsibilities, and liabilities of this Contract given to you in person and/or e-mailed to you at the address in Part 1 if provided, which includes the Electronic Fund Transfer disclosures, Expedited Funds Availability disclosures, Privacy Policy, Rate and Fee disclosures, our Bylaws and policies, and to any changes that we make to them from time to time. You understand and agree that we may optically scan, image, or film your original Part 1, and agree that the electronic copy is of Part 1 is binding on you and us. You further understand and agree that you may change, close, or terminate your accounts, services, or membership with us at any time according to terms of this Contract.
For all transactions on the account, and for any changes to, distributions from, or closure or termination of any account or service, you agree that we may rely exclusively on the terms of Parts 1 and 2 of this Contract, our Bylaws, and any changes we make to these documents from time to time. Further, you agree that any additional accounts or services that you request will also be governed by Parts 1 and 2 of this Contract, our Bylaws and policies, and any changes we make to them from time to time.
e. How Accounts are Titled. Accounts are generally titled so that the name used on the account matches the Social Security Number or Employer Identification Number that you have provided for the account in order to satisfy legal and data processing requirements. Upon your request we can include a full description, explanation or any legal title you need in Part 1 of the Contract to explain the purpose of the account and/or the ownership of the funds held in the account.
2. Organization of Your and Our Agreement
In Part 1 of your and our Contract, you have provided us with your information to apply for membership, selected the ownership and survivorship features for your account(s), selected services, and certified to the Internal Revenue Service (IRS) that the name, Social Security Number (SSN) or Employer Identification Number (EIN) and address that you have provided are correct (or that you are exempt or the number is unnecessary), that you are a US citizen or US person, and whether or not you are subject to backup withholding.
This Part 2 of this Contract sets forth the specific terms, responsibilities, and liabilities of membership, account ownership, and related services with us. It is organized chronologically, starting with important terms that you should know about this Contract, followed by membership, creation of accounts and related services, account and service maintenance issues, and finally addresses a number of account and service termination issues. Part 2 concludes with four (4) important disclosures that also affect your account and services: the Electronic Fund Transfer disclosures, Expedited Funds Availability disclosures, Privacy Policy and our Rate and Fee disclosures. Again, should you have any questions about a matter addressed in this Contract, (Parts 1 and 2) please contact us toll free at 800-725-2673 or 432-264-2600 during business hours and/or www.cosden.org, and we will be happy to answer your questions about and/or explain any matter addressed in our Contract.
3. Membership at the Credit Union
a. Requirements of Membership. To become a member of our Credit Union, you (as a person or business) must be in our field of membership as described in our Bylaws or Charter and open and maintain at least one share or savings account with the minimum required membership share or savings amount, as described in the Bylaws. If you are an owner, partner, principal, shareholder, or member of a business or organization, that business may join as a member of the Credit Union and have its own accounts if it is principally comprised of people who are eligible for membership with us. Before opening the account, we may require any authorized Person to provide proof that the business is lawfully formed (e.g., by production of Articles of Incorporation, Operating or Partnership Agreement, business license, etc.), and to establish both his or her authority to act as an authorized person for the account or service for the business (e.g., notarized board resolution, partnership letter, etc.) and his or her identity as an authorized person.
b. Identification, Tax Identification Number, and Backup Withholding. To join our Credit Union, open, own, be on an account and apply for or use a service, in addition to providing us with your current name, street (or physical) address (and if different, your mailing address), and phone number, we will require you to provide us with current government issued picture identification and a Social Security Number Employer Identification Number and certify for Internal Revenue Service (IRS) reporting purposes that the number matches the name and address and indicate whether you are currently subject to backup withholding, and whether you are a US citizen or US person. For your and our protection, you agree that we may retain a copy or image of your current government issued picture identification for identity verification for any and all transactions or matters related to your account or services. If the IRS indicates that there is a problem with the name and number provided by you for the account on Part 1 of this Contract or otherwise notifies us, your account may become subject to backup withholding, which will require us to withhold and pay a portion of the dividends, interest or other payments to the IRS.
c. Authorization to Obtain Information. You agree that we may check financial information about you and any authorized person to evaluate account, employment and credit history, which includes obtaining reports from third parties and credit reporting agencies, to confirm your and any authorized person’s eligibility for accounts and services we may offer.
By signing Part 1 of this Contract, and/or through the use of an account or service, your have acknowledged and informed us of the person(s) authorized to act on behalf of the business on its accounts and related services (again referred to as authorized persons). You agree to notify us of any change in authority of any authorized person. We may rely on the written authorization in Part 1 until you tell us in writing of any changes and we have had a reasonable time to act upon such notice.
The business and each corporate officer, partner, member, or manager, as applicable, who signs Part 1 of this Contract warrants that the business has been duly formed and currently exists and certifies the following:
a. Authorized Persons. The authorized person(s) named on Part 1 of this Contract is or are authorized to act on your behalf on your account and services based upon the designated authority and Certificate of Authority as stated below.
i. Representatives. Representatives are vested with full authority to open and close accounts on behalf of the business, use all services, and add and remove signers on behalf of the business, and to conduct transactions on the accounts. The owner and representative(s) understands that any representative acting alone may change or close the account, and that his or her signature on Part 1 of this Contract confirms his or her agreement to any later change made to, or closure of, the account by any other representative on the account.
ii. Signers. Signers are vested with limited authority to conduct transactions on the accounts including the following, but may not make changes to or close an account; (1) Depositing, withdrawing and transferring funds into, out of and between one or more accounts; (2) Signing drafts, checks and other orders for payment or withdrawal; (3) Issuing instructions regarding order for payment or withdrawal; (4) Endorsing any check, draft, share certificate and other instrument or order for payment owned or held by the business; and (5) Receiving any information about the account.
b. Certificate of Authority. Each authorized person named on Part 1 of this Contract certifies and agrees that the business’s accounts and services will be governed by the terms stated in this Contract (Part 1 & 2), as amended from time to time. You direct us to accept and pay without further inquiry any check, draft or item, bearing the signature of an authorized person, drawn against any of the your accounts. Any one representative or signer is expressly authorized to endorse all checks, drafts or items payable to or owned by the business for deposit with or collection by us and to perform any other transaction permitted under this Contract. The authority given to the authorized persons named on Part 1 of this Contract will remain in full force until written notice of revocation is delivered to and received by us. Any such notice will not affect any checks, drafts or items in process at the time notice is given. A representative will notify us of any change in the business’s composition, assumed business names, or any aspect of the business affecting the deposit account Contract relationship between you and us before any such change occurs. We have no duty to inquire about the powers and duties of any authorized person and have no notice of any breach of fiduciary duties by any authorized person unless we have actual notice of wrongdoing.
c. Liability. You agree that we will not be liable for any losses due to your or your representative’s failure to notify us of such changes in the business’s composition, assumed business names, or any aspect of the business that affects this Contract. You and each authorized person signing Part 1 of this Contract agree to indemnify and hold us harmless of any claim or liability as a result of unauthorized acts of any authorized person or former authorized person or acts of any authorized person upon which we rely before notice of any account change or change of the business.
6. Account Access and Transactions
a. Authorized Signatures. You understand that the signature that you provide to us on Part 1 of this Contract is essential to us in identifying you and allowing you to conduct authorized transactions on the account or otherwise, and that we may require you to provide us with your signature and current government issued picture identification to conduct a transaction. Any person who signs Part 1 of this Contract as an authorized person may conduct transactions on the account or use the services provided with the account.
If you authorize the use of any facsimile signature device, you agree that we may pay or honor any check, draft, order or item, or conduct any transaction that contains what appears to be your authorized facsimile signature, even if the signature is not authorized. If more than one signature or endorsement is required on a check, draft, order or item drawn on or deposited to your account, you agree that we may pay or accept that check, draft, order or item regardless of the number of signatures on it if the check, draft, order or item is issued or deposited by an authorized person under this Contract, or otherwise authorized to issue or deposit checks, drafts, orders or items drawn on or deposited to your account. If you provide your account information, code, or Personal Identification Number (PIN) to any person or third party to conduct transactions, you agree that until you provide us with notice revoking your authorization, all transactions conducted by that person or third party are authorized and genuine, even if they are not conducted for your benefit or according to your instructions. You agree that we may disregard all information on a check including notes and legends except for your signature, the amount of the check and the information contained in the Magnetic Ink Character Recognition (MICR) line at the bottom of the check, which contains your account number, amount of check, and check number.
b. Transaction Options. You may conduct transactions on your account by any means we permit, including in person, by check or debit card, telephone, automated teller machines (ATMs), the mail, automatic transfer, or our services that can be accessed through the internet. If we require you to use a specific form to conduct and complete a transaction, and you do not use that form, for both your and our protection you agree that we may refuse to honor, perform, or complete the transaction. Whether a transaction is honored, performed, or completed or not, you are responsible for any loss or liability incurred by us as a result of your failure to use a required form or adhering to the terms and responsibilities of this Contract.
c. Account Transfers by Wire or ACH. We offer wire transfers or Automated Clearing House (ACH) transfers that allow you to send or receive debits or credits to your account. Should you use these services and receive funds by wire or ACH transfer you agree to confirm the transfers by reviewing your periodic statement, and agree that we have no duty to notify you when the funds are received. While we may conditionally and provisionally credit your account for an ACH transfer, if we are not finally and ultimately paid (do not receive final settlement) for the transfer we may reverse the credit to your account or alternatively you agree to reimburse us for the amount of the reversed transfer. We may require that wire transfers be authorized in writing. When you initiate a wire transfer, you may identify either the recipient or any financial institution by name and by account or identifying number. We and other institutions may rely on the account or other identifying number you give as the proper identification number, even if it identifies a different person or institution. You agree that we may confirm the information on all wire requests before sending the wire. Once we have sent an outgoing wire, the transfer is final and cannot be stopped. If you provide incomplete or inaccurate written or oral transfer instructions, we will not be responsible for any resulting wire transfer losses, delays or failed transactions. You understand international wire transfers may not be completed for up to four weeks or longer. Wire transfers are governed by Federal Reserve Regulation J if the transfer is cleared through the Federal Reserve. ACH transactions are governed by the rules of the National Automated Clearing House Association.
d. Limitations on Account Transactions.
i. Account Withdrawal Limitations. You must have sufficient funds available in your account (or have or be eligible for one of our overdraft programs) to withdraw funds from your account. If a check, draft, item, or other transfer or payment order is presented against insufficient funds in your account, you will be charged a fee as stated in the Rate and Fee disclosures. If there are sufficient funds to pay some but not all checks, drafts, items, or other transfer or payment orders drawn or presented against the account, we may pay or allow withdrawals for those checks, drafts, items, or other transfer or payment orders for which there are sufficient funds in any order we choose.
There are a number of circumstances where you may not be able to withdraw funds from your account including, but not limited to, the following: (1) you try to withdraw or make a transfer request by any method we do not permit; (2) you, a signer, an agent, or any person fails to present authoritative documentation or identification we require to access the account or make a withdrawal; (3) disputes or uncertainty occur over who owns the account or the funds held in the account (see Section 21.); (4) funds from deposited checks are not yet available for withdrawal or deposited checks have been returned unpaid and we have charged them back against the account; (5) the funds held in the account are held as security (collateral) for an obligation to us; (6) the funds are held or offset under our Consensual security interest or statutory lien rights (see Section 19) because you or another account owner owes money to us; or (7) we have been served with a garnishment, levy, or other similar legal process or notice affecting the account.
Additionally, for the protection of all members and the Credit Union, you agree that we may require you to provide us with written notice of your intent to make a withdrawal from your account at least seven (7) days and up to sixty (60) days before the time that you would like to make the withdrawal.
ii. Account Transfer Limitations. On all savings, share, or money market accounts (all non-transaction accounts), we will allow you make up to six (6) preauthorized, automatic, telephonic, audio response, or internet transfers to another of your accounts or to the account of any other person or organization during each calendar month. Only three (3) of these six (6) transfers can be made by check or debit card purchase to another person or organization. Your limit of six (6) preauthorized transfers includes those transactions where you order us to pay a person or organization from your account including Automated Clearing House (ACH) transactions. The date we use to determine the number of transactions is the date a transaction is posted to your account rather than the date you initiate the transaction. If you exceed these limitations in any calendar month, we can refuse or reverse the transfer, close your account, and charge a fee as stated in the Rate and Fee disclosures. Transactions that are not covered by these limitations include (1) transfers from your account to pay a loan with us, and (2) transfers to your other accounts with us or withdrawals by check mailed directly to you, if the transfer or withdrawal is conducted in person, by mail or at an automated teller machine.
iii. Account Transaction Volume Limitations. We may limit the number of items deposited and the frequency of deposits and other transactions that you can make each day to your account. The date we use to determine the number of transactions is the date a transaction is completed by us rather than the date you initiate the transaction. Should the transactions on your account exceed the limitations we establish, we may limit your account transaction activity, charge a fee as stated in the Rate and Fee disclosures, or close your account. You agree that if we allow or honor a transaction that exceeds these restrictions (a nonconforming transaction), we are not required to allow or honor any future transaction that exceeds these restrictions.
iv. Limits on ATM Transactions. For your and our protection, we may limit the amount of cash withdrawals at ATMs. Our current limitations on ATM cash withdrawals are stated in the Rate and Fee disclosures of this Contract.
a. Checks You Write on Your Account, Completion of Checks, and Your Check Register. When you write a check drawn on your account, in addition to writing in your payee’s name and completing the numerical and written amount sections of the check and signing your name, it is also important that you draw a line after both the payee’s name and after the written amount sections of the check to protect yourself against alterations or forged endorsements. Also when completing date, payee and amount lines on your check, always begin by writing the information in at the start of the far left side of these lines to avoid leaving any spaces: this will protect you from your check being altered. Once you have completed a check you should write the check number, amount, date, payee’s name, and purpose for writing the check in your check register. This helps you to keep track of the balance that you have in your account, and allows you to detect and report checks with alterations and forged drawer’s signatures. Please use dark permanent ink (preferably black ink) to complete your checks. You agree that you are responsible for any losses incurred for your checks because you do not use a dark permanent ink when writing your checks. You should also keep your checks in a secure location and separate from your picture identification. If the account is a multiple owner account each owner may sign, issue, and endorse checks in the other owner(s) name. You agree that if you write a check that you are ordering us to pay that check and that such payment is proper, regardless of whether you completed or signed or check.
You understand and agree that it is your obligation to review your periodic statement and report any unauthorized amounts or unauthorized checks or other transactions on your account. You can determine an unauthorized amount because the amount on the statement does not match the amount you recorded on your check register. Similarly, you can detect forged drawer’s signature on checks, counterfeit checks and unauthorized remotely created checks or drafts, because there is a check number on your statement for a check that you did not write. You understand and agree that you only have thirty (30) calendar days from the mailing date of your statement to notify us of alterations to the amount of the check and of checks with forged drawer’s signatures, counterfeit checks or unauthorized remotely created checks, or we will not be able to credit your account for the unauthorized amount or the check.
b. Use of Our Forms. You agree to use check forms we offer through an authorized vendor. If you use a check form not provided by an authorized vendor, you understand that we may not pay the check and agree that such nonpayment is not wrongful. Alternatively, if we pay a check or draft drawn on your account that is not our check form you agree to be responsible for any loss and fees incurred as a result of using that check form.
c. Lost or Stolen Checks? Notify Us Immediately! If your checkbook, a box of checks or any individual check is lost or stolen notify us immediately toll free at 800-725-2673 or 432-264-2600 during business hours and/or www.cosden.org. The sooner you contact us, the less liability you will have for unauthorized checks, drafts, orders or other items on your account, and the sooner we can provide you with a new account and new checks for that account.
d. Our Use of Automated Collection and Payment Processes. You understand that we use automated collection and payment processes and procedures, so that we can process the greatest volume of checks, drafts, and items in the most cost effective manner for the benefit of all members. These automated processes and procedures rely on and can only recognize information that is written (encoded) in the Magnetic Ink Character Recognition (MICR) line at the bottom of the check, draft, or item which contains your account number, amount of check, and check number. So that we may achieve these cost efficiencies for all members, you agree that when we pay or take a check, draft, or item for deposit and collection that we may disregard all other information on the check, draft, or item other than the drawer’s signature, the identity of the payor-drawee financial institution, the amount of the check, draft, or item and the information encoded in MICR line, whether or not that information is consistent with other information on the check, draft or item. You also agree that we do not fail to use ordinary care in paying any check, draft, or item without physically or visually examining checks, drafts, or items.
e. Signatures by Family Members, Friends and Employees. If a family member, friend or employee writes a check drawn on your account payable to any person or organization, you authorize the signature, completion and payment of that check and agree that you will address the matter to recover any loss for payment of the check with the family member, friend or employee. You understand and agree that you, like each member of our Credit Union, are in the best position to address the signature with your family member, friend or employee, rather than imposing the expense of resolving the matter on all members of the Credit Union.
f. Conversion of Checks to Electronic Fund Transfers. In some circumstances, a person, merchant, or other organization can convert your check and check information (your checking account and check routing, account, and serial number) to an electronic fund transfer (EFT) and debit your account. The conversion of your check to an EFT is covered by this Contract and our Electronic Fund Transfer disclosures. You agree that we may honor the EFT and debit your account just as if the original check were presented for payment. Should a person, merchant or other organization convert your check to an EFT you will have to contact that person, merchant or organization about obtaining a copy of your check. You understand that if we dishonor and return your check to a merchant for insufficient funds, a merchant may try to re-present the check electronically as an EFT. The EFT that represents the dishonored check, will be treated as a re-presented check under this Contract.
g. Dates on Checks. When you write a check you agree that we may pay the check regardless of the date or legends restricting payment to certain periods of time (“stale dated” or “void” check). However, you agree that we are under no obligation to pay a check presented for payment before its date or more than six (6) months after its date. You understand that the reason dates or legends are ineffective is because you are generally obligated to pay dishonored checks up to three (3) years or more from the date you wrote the check, and our processing equipment and systems may not include examination of the check for the date. If you do not want us to pay your outstanding check you may stop payment on that check as addressed in Section 7.h. If you notify us not to pay a check before its date (often referred to as a “postdated check”) by phone, mail, or in person, that notice will only be effective if it allows us a reasonable amount of time to act on the notice to not pay and return the check, and you provide us with your name and account number, the check number, the date of the check, the name of the payee, and the amount of the check. You understand that failure to provide us with either timely notice (that allows us a reasonable amount of time to not pay the check) or the complete and accurate information about the check and the account as required, may result in payment of the check. If you provide us with timely notice and complete and accurate information about the check and the account as required, we will not pay and return the check as postdated and charge you a fee as stated in the Rate and Fee disclosures. You may provide us with oral notice of the postdated check that will expire after fourteen (14) days unless you confirm that notice in writing, in which case the notice will be effective for six (6) months, and can be renewed for an additional six (6) months for the fee as stated in the Rate and Fee disclosures. You understand and agree that we have no duty to notify you when your notice will or has expired.
h. Stop Payment Orders on Your Checks. You may request us to stop payment on any check drawn on, or ACH debit scheduled from, your checking account. If you notify us to stop payment on a check, that order will be effective only if it allows us a reasonable amount of time to act on the order to not pay and return the check or ACH, and you provide us with your name and account number, the check or ACH number, the date of the check or ACH, the name of the payee and the amount of the check or ACH. You understand that failure to provide us with either a timely stop payment order that allows us a reasonable amount of time to not pay the check or ACH or the complete and accurate information about the check or ACH and the account as required, may result in payment of the check or ACH. If you provide us with a timely stop payment order and complete and accurate information about the check or ACH and the account, we will stop payment on and return the check or ACH, and charge you a fee as stated in the Rate and Fee disclosures. You may provide us with an oral stop payment order that will expire after fourteen (14) days unless you confirm that order in writing, in which case the notice will be effective for six (6) months, and can be renewed for an additional six (6) months for a fee as stated in the Rate and Fee disclosures. We have no duty to notify you when your stop order will or has expired. You understand that although payment of the check or ACH may be stopped, you may be subject to legal action brought by any and all persons who, and organizations that, have possession of your returned check. In the unlikely event we pay a check or ACH over a timely, accurate, and complete stop payment order and are required to credit your account, you agree to sign a statement explaining the dispute with your payee, and assist us in taking legal action against any and all persons or organizations to recover our loss. You understand that if you repeatedly place stop payment orders on your checks that would otherwise be returned for insufficient funds we may consider that account abuse and may close your account under this Contract.
i. Stopping Payment On, Unused, Lost, or Stolen Credit Union Checks. If we issue to you one of our checks and you endorse that check over to another person, or give that check to the payee that you requested us to make the check payable to, and afterwards do not want that person to receive payment for the check because you are displeased with the person or the transaction the check was issued for, we will not be able to stop payment on the check. It is your sole responsibility to ensure that you want the person or the payee to receive payment for the check before you endorse the check over to that person or give the payee the check. If you have any doubt about the person or payee or the transaction, do not endorse the check over to that person or give the payee the check since we will not be able to refuse to pay the check. If you do not use or negotiate one of our checks, you may return it to us, and ask for a refund for the amount of the check.
If one of our checks in your possession is purportedly lost, stolen or destroyed, you agree to sign a statement or notice and either post a bond, provide us with collateral or a security interest in collateral, or wait ninety-one (91) days from the date of the check, to receive a replacement check for our check that was lost, stolen or destroyed. If you purportedly do not receive one of our checks that was sent or mailed to you, you agree to sign a statement or notice and at our discretion either post a bond or provide us with collateral or a security interest in collateral, to obtain a replacement check for our check that you claim you did not receive.
j. Payment of Checks that Overdraw Your Account.
i. Account and Lending Overdraft Payment Programs. We may provide check overdraft payment protection programs. If you qualify for one or more of these programs and we agree to provide the service to you, we will pay checks drawn on your account with insufficient funds by transferring funds from another account or pursuant to a loan agreement to your checking account, and charge you a fee as stated in the Rate and Fee disclosures. Transfers from your account(s) to your checking account are covered by this Contract, whereas transfers from a loan to your checking account are governed by a separate loan agreement. You agree that we may apply funds deposited to your account(s) to your outstanding overdrafts and fees regardless of the source, which specifically includes directly deposited government entitlements or benefits such as social security deposits.
ii. General Overdraft Payment Program. If you own a checking account and are in good standing, you may use our courtesy overdraft program which allows you to overdraft your account up to a set limit of $300. To be in good standing requires that you own a checking account for at least sixty (60) days, be eighteen (18) years of age or older, and to have not caused us a loss. If you qualify, we will pay your overdrafts up to a total of $300 and charge you a fee as stated in the Rate and Fee disclosures. If you use this program, we will notify you of the amount paid, including the fee per transaction, and you will have thirty (30) calendar days to reimburse us for paid items and fees. For more information on this program, please contact us toll free at 800-725-2673 or 432-264-2600 during business hours and/or www.cosden.org.
k. Checks are Paid in Any Order. You understand that when you write or order checks, drafts, or items drawn on your account that we may pay those checks, drafts, or items in any order. If you write or otherwise order multiple checks, drafts, or items drawn on your account, you should be certain there are enough funds in your account to pay those checks, drafts, or items or those checks, drafts, or items will be handled according to the overdraft and insufficient funds terms of this Contract, or paid under one of our check overdraft programs if applicable.
l. Insufficient Funds to Pay a Check. If the funds in your checking account are not sufficient to pay checks, drafts, or other items presented and drawn on your account, those checks, drafts, and items will be handled according to our overdraft procedures and any overdraft service or Contract you have with us. You understand and agree that we have no duty to notify you if there are insufficient funds to pay your check, draft, or item. If we pay a check, draft, item, or transfer that would overdraw your account beyond an agreement or service we have agreed to provide you, it does not mean that we will pay a check, draft, item, or transfer that will overdraw your account in the future. If we pay a check, draft, item, or transfer that would overdraw your account you agree to repay us the amount of that paid check, draft, item, or transfer and any fee for that service immediately (or at the latest pursuant to any agreement or service we have agreed to provide you). Should we dishonor and return a check, draft, or item drawn on an account with insufficient funds, your account will be charged a fee for the dishonored and returned check, draft, or item as stated in the Rate and Fee disclosures. You also understand and agree that we are not liable if we refuse to pay a check, draft, or item drawn on your account and return it when nonpayment occurs as a result of our charging your account for any obligation you owe us. Finally, if we are repeatedly presented with checks drawn on your account for insufficient funds, we may consider that account abuse and may close your account under this Contract.
m. Non-Member Presenters of Checks. For both your and our protection and to cover costs incurred by all members for the presentment of checks over the counter, you understand that we may require any non-member presenting a check drawn on your account to provide both his or her current government issued picture identification and, at our option, sign a statement of receipt and/or place his or her thumbprint on your check. You agree that if a non-member presenting your check fails to carry out these presentment requirements, we are not liable for refusing to pay the check and that such nonpayment is not wrongful. Checks presented after our 5:00 p.m. cut off hour may be treated as if presented on the next business day that we are open.
n. Right to Refuse Payment for Fraud or Illegibility. For your and our protection, you agree that we may refuse to honor any check, draft, order, item or instruction if we believe any signature, instruction, provision, term or the form itself is not genuine or is altered or that is illegible or written in a language other than English. You agree that our nonpayment or nonaction under any of these circumstances is not wrongful.
a. Summary of Our Service. You understand that when we take checks, drafts or items that you wish to deposit that are not drawn on us, we are providing you a service in that we are saving you the time and expense of having to present the checks, drafts or items to the institution they are drawn on in person. In return for this service, you understand and agree that we may hold the funds represented by your deposit for a period of time, as explained in our Funds Availability disclosure in this Contract. Additionally, if the hold on your deposited funds is for an extensive period of time, we will provide you with notice of the status of your deposit and when the funds’ availability will be determined. While we want to provide you with the service of taking deposits, you understand that we place holds on funds represented by your deposit so that you do not become indebted to us for the amount of the deposit if a check, draft or item is dishonored, returned or claim is made on the deposited funds. If you do not want us to provide this service and place a hold on the funds represented by your deposit, please tell us before we have processed the check, draft, or item and we will return it to you so that you can obtain payment elsewhere. Further, you agree for your and our protection that, after your deposit and before processing the check, we may return the deposited check, draft or item to you so that you can obtain or recover payment elsewhere. Finally, you understand that whenever you make a deposit with us and the deposit is dishonored, returned or claim is made on the deposited funds, you are obligated to reimburse us for the amount of the deposit and any costs and fees as stated in this Contract in general and the Rate and Fee Disclosures specifically.
b. How You Can Deposit Funds. You may deposit funds to your account by any means we permit, including in person, by check, telephone, automated teller machines (ATMs), the mail, automatic transfer, or our services that can be accessed through the internet.
c. Our Rights Upon Your Deposit. You understand that by offering to accept your deposits, we are providing a service to you and that we may accept, provide credit for, hold funds related to the amount of the deposit, refuse, reject, or return the deposit as we believe necessary for your and our protection. The availability of funds from your deposit may be held for a period of time depending on the type of deposit (cash, check, wire, etc.) and circumstances surrounding the deposit (the amount of the deposit, the source of the funds, etc.) (please see our Funds Availability disclosures in this Contract for information about our hold policy for checking accounts). After your deposit and before processing the check, draft or item for collection and payment, should we believe that the deposited check, draft, or item may be dishonored, returned or subject to a claim, you agree that we may return the deposited check, draft or item to you so that you can obtain or recover payment elsewhere. If we choose to hold the funds from your deposit beyond any applicable hold period stated in the Funds Availability Disclosures, we will notify you about the reason for and the length of time of the hold. If you do not want a hold placed on the funds from a deposited check, draft or item, please tell us before we have processed the check, draft, or item and we will return the check, draft or item to you so that you can obtain or recover payment elsewhere.
d. Authority to Negotiate Checks and Endorsements. We may accept checks, drafts, and other items for deposit into any of your accounts. Checks deposited should be endorsed by you for your protection, though we may allow you to deposit them without your endorsement. If the account is a multiple owner account each account owner may endorse checks for one another. For your and our protection, you agree that we may confirm the endorsement on any check that we take for deposit, and may require you to carry out specific endorsement requirements for business, insurance, or government checks before taking those checks for deposit. We may require proof of your authority to endorse any check on behalf of another person or organization before taking the check for deposit.
e. How to Endorse Your Check. When you receive a check made payable to you and wish to deposit that check in your account with us, we recommend that you endorse (sign) the back of check with the words “For Deposit” and then sign your name beneath that language, and beneath your signature write your account number. Endorsing the check in any other manner may risk your account not being credited for the check. You agree not to deposit any substitute check or similar item that you have created or for which no financial institution has provided any substitute check warranties and indemnity. If you do so, you agree to indemnify us for all losses that we incur in connection with the substitute check or item. You further agree not to deposit any substitute check without our consent.
Your endorsement must go on the back of the check at the top edge (and be no more than 1½ inches from the back top edge of the check). You understand and agree that we may ignore any other language or markings within or outside of your endorsement space on the check or draft, and that you will be responsible for any loss that results due to a delay or error in processing the check or draft for payment caused by endorsements, language, or markings inside or outside of the designated space. Please use dark permanent ink (preferably blue or black ink) to endorse your checks. You should also write your account number below the endorsement, and if available use our deposit slips and envelopes when making your deposit. You agree that you are responsible for any losses for a check deposited by you in event you do not use a dark permanent ink when endorsing the check.
f. Acceptance of Checks for Deposit is a Service to You. In handling checks, drafts, items, or money for deposit or collection we are providing you a service (assisting you in collecting payment for the deposit) and act only as your agent, and assume no responsibility for the check, draft, or item beyond that of the use of ordinary care. We are not responsible for any deposit sent by mail or made at an unstaffed facility (for example, an automated teller machine that is not at a branch) until we actually receive the deposited item or money. We are not responsible for the negligence or default of any correspondent or for loss in transit, and each correspondent will only be liable for its own negligence. You understand and agree that we have the right to send any deposited check, draft, or item for collection, which means we will hold the funds represented by the check, draft, or item until the check, draft or item is finally paid. You further understand and agree that we have the right to charge your account for any check, draft, or item taken for deposit should it become lost in the collection process.
g. Your Options for Direct Deposit. We offer direct deposit options that allow you to preauthorize deposits to your accounts (such as payroll, Social Security, retirement, or other government deposits) or preauthorize transfers from your accounts with us. You must initiate direct deposits on a direct deposit authorization form acceptable to the initiator of the deposit. You agree that we may refuse and return any or all funds transfers. Should we be required to reimburse the federal or state government for any benefit payment directly deposited into your account, unless otherwise prohibited, you agree that we may deduct the reimbursed amount from your account, and may recover any amount owed according to the terms of this Contract. If you file for bankruptcy and do not cancel any direct deposit authorization to your accounts, you agree that your employer should continue to make and that we should continue to apply your direct deposits according to the instructions you have given to us.
h. When Your Deposits will be Credited to Your Account. Deposits to your account will generally be credited on the business day of the deposit, unless the deposit is made after our 5:00 p.m. cut off hour or on a Saturday, Sunday, or holiday, in which case your deposit will be credited to your account on the next business day. Deposits made by you at unstaffed facilities (for example, an automated teller machine that is not at a branch) will be credited to your account on the day funds are removed and processed by us. Deposits of coin or currency will not be finally credited until we have counted the deposit and confirmed the amount. If there is a discrepancy between the amount shown on the deposit slip and the amount we count, we will send a notice of the discrepancy to you in the mail. Credit to your account for funds deposited is conditional (provisional) until we are finally and ultimately paid (i.e., when we receive final payment). Checks, drafts, or items drawn on an institution or organization located outside the United States are handled on a collection basis only and, if accepted for deposit, the deposited funds will likely be held for an extended period of time.
You understand that we have a 5:00 p.m. cut off hour to accept deposits. This means that all deposits received after our 5:00 p.m. cut off hour on a day that we are open for business, will be treated as if received on the next business day that we are open. Additionally you should be aware that all deposits received on Saturday, Sunday, federal holiday, or any day that we are not open for business will be treated as if received on the next business day that we are open.
i. Deposits Made at a Night Depository. If you make deposits at a night depository, you agree to use any special bag or container that we provide. You will be liable for any damage to the night depository or delay in crediting deposits due to the use of containers other than those we supply. You understand and agree that night depositories are only accessed once on each business day that we are open for business. Bags or envelopes placed into the night depository before we access it are processed on that business day. Bags or envelopes placed into the night depository after we access it are processed on the next business day. Night depositories are opened and items placed in the depository are removed and logged in the presence of two of our representatives. The contents of each envelope or bag are counted, and we issue a credit to the account specified on the deposit ticket accompanying the deposit for the amount of the deposit as indicated by our count. You agree that we are a bailee of items placed in the night depository (simply in possession of the container) until we have opened the containers, verified the contents and credited the contents to your account or returned the bag and contents to you. You agree that our count of any deposit placed into the night depository is the final determination of the contents of a bag or envelope placed in the depository. We will use reasonable efforts to notify you of any difference in the amount of the deposit as we counted it and the amount shown on the deposit ticket. However, we will not be liable for any delay or failure to notify you of any difference in the amount counted and that shown on the deposit ticket. No deposit is considered to have been made until we have removed it and processed it as explained in this Contract, and a credit has been issued to your account. You understand and agree that the procedures explained in this Contract are commercially reasonable, and that if we follow these procedures, we are not negligent in handling items placed into the night depository.
j. Erroneous Deposits to Your Account. If a deposit or other credit is made in error to your account that you are not entitled to (whether by check, cash, automated clearing house transfer, wire transfer or otherwise), you understand and agree that we may debit your account for the amount of the erroneous deposit, and may do so without notice to you, regardless of when the original deposit took place. If you withdraw any or all of the funds erroneously deposited to your account, you further understand and agree that you are obligated to reimburse us for the amount of the erroneous deposit or credit, and any costs and fees as stated in this Contract and its Rate and Fee disclosures.
k. Deposits Not Paid and Returned, and Claims on Deposits. All deposits or other credits (including checks, drafts items, Automated Clearing House (“ACH”) transfers, wire transfers, etc.) credited to your account are conditioned on being paid (provisional), which means that if we do not receive final payment on any deposit, we will charge your account for the amount of the item and a return fee as stated in the Rate and Fee disclosures. Additionally, if we incur a fee or any expense to collect any item, we may charge that fee or expense to your account. After we have received final payment, we refer to these deposits as collected items. If any check, draft or item deposited to your account is returned to us unpaid we have the right to charge back against your account the amount of the unpaid check, draft or item in addition to any fee as stated in the Rate and Fee disclosures, whether the amount of check, draft or item was available for your use or not. If any check, draft, or item you deposit in your account is returned to us for any reason, you waive your right any notice of nonpayment or dishonor for the check, draft, or item. You agree that we may pursue collection of a previously dishonored or not paid check, draft or item at any time, including giving a payor-drawee bank extra time beyond any midnight deadline limits.
Additionally, if anyone else makes a claim against us based on a check, draft or item you have deposited (including but not limited to, claims for breach of warranty based on forged or missing endorsements, for alteration, or for conversion), we may charge your account for the amount of the check, draft or item even if you have already received final credit and have already withdrawn the funds.
l. Endorsements by Family Members, Friends or Employees. If a family member, friend or employee endorses a check made payable to you to any person or organization, you authorize the endorsement of the check as your endorsement and agree that you will address the matter to recover any loss for the endorsement of the check with the family member, friend or employee. You understand and agree that you, like each member of our Credit Union, are in the best position to address the endorsement with your family member, friend or employee, rather than imposing the expense of resolving the matter on all members of the Credit Union.
9. Dividends/Interest and Rates
The dividends/interest earned on your account(s), the dividend rates, balance requirements, annual percentage yields, compounding, crediting, and terms are provided to you in this Contract in the Rate and Fee disclosures and your periodic statement. You understand and agree that we will change the account dividend rates and annual percentage yields from time to time as addressed in the Rate and Fee disclosures.
All fees charged against you or your account are for services we provide to you, or as a result of actions you take or transactions you conduct under this Contract, or third person’s or organization’s actions against you or your account(s) with us. The purpose and amount of each fee is provided to you in the Rate and Fee disclosures and noted in your periodic statement. We charge fees so that each member is responsible for the expense of each service or transaction used or incurred by that member, rather than imposing that cost on all members of the Credit Union. You understand and agree that we may change account fees from time to time and that we will notify you of such changes as required.
11. Account Insurance Coverage
We are committed to providing a safe and sound capital structure through the retention of earnings to assure the protection of our members’ savings and deposits. In addition to the strength of our capital, member’s-depositors’ funds are insured at a minimum of $100,000 per member-depositor by the National Credit Union Share Insurance Fund (NCUSIF). Our staff is available to discuss your federal account insurance needs, and can assist you with your questions.
12. Lost Checks, Drafts, and Cards
If a check, one of our checks, your checkbook, a box of checks, credit card, debit card, ATM card, or your personal identification number (PIN) is lost or stolen call us immediately toll free at 800-725-2673 or 432-264-2600 during business hours. The sooner you contact us, the less liability you will have for unauthorized transactions on your account, and the sooner we can provide you with new checks, accounts, cards, and PINs.
13. Membership, Account, Service, and Transaction Information
Only an owner, representative, or signer specifically named on an account is entitled and can have access to information concerning membership, the account, a service or a transaction related to the account. If there are multiple representatives or signers on an account, any representative or signer may obtain or consent to the release of all information about membership, the account, a service or a transaction pertaining to that account. You understand and agree that you will be charged an hourly research fee for any time spent by us addressing your information requests, as stated in the Rate and Fee disclosures. We will not release your information to anyone without your consent unless they present us with a valid subpoena, summons, search warrant or court order (and p
