Guide to Accounts and Services

Transcription

1 Guide to Accounts and Services Including: Account Agreement and Disclosure Terms and Conditions Arbitration Provision Funds Availability Policy Electronic Funds Transfer Service Disclosure and Agreement Effective January 1, 2013

2 Table of Contents Introduction...1 Changes To Agreement...1 Account Agreement and Disclosure...2 CONSUMER SERVICES...2 Checking Accounts...2 Value Checking...2 Regular Checking...2 Interest Checking...3 Investor s Money Market Checking...3 Regular Savings Accounts...4 Gold Money Market Savings...5 BUSINESS SERVICES...7 Business Checking Accounts...7 Checking for Small Business...7 Business Checking...7 Interest Checking for Businesses and Non-profits...7 Analyzed Business Checking (Account Analysis)...8 Addendum for Checking Accounts...9 Regular Savings for Business...9 Business Money Market Savings...10 CD S AND RETIREMENT PLANS...11 Certificates of Deposit / Jumbo Certificates Month Retirement Plans...13 Profit Sharing / Money Purchase / Traditional IRA / Roth IRA / Education IRA / IRA Rollover / Simplified Employee Pension Plans (SEP)...13 Ownership of Accounts...14 Individual Accounts...14 Multiple Party Accounts...14 Individual and Joint Trustee Accounts...15 Fiduciary Accounts...15 Uniform Transfer to Minor Accounts...15 Business Accounts...16 Notice of Withdrawal...16 Payment of Interest...16 Account Terms and Conditions...16 Account Conversions...16 Adverse Claims...16 Application of Deposits Including Government Benefit Payments...17 Cash Transactions...17 Cashier s Checks...18 Change of Address, Name and Authorized Signer...18 Checks Bearing limiting Notations...18

3 Checks Containing Contradictory Terms...19 Checks More Than Six Months Old...19 Claim of Loss...19 Closing or Suspending Accounts...20 Cutoff Hour for Legal Process and Stop Payments...20 Death or Incompetence...20 Demand Drafts...21 Deposits to Accounts...21 Digital Check Images...21 Dormant Accounts and Escheat...22 Early Account Closure...22 Electronic Re-Presentment...22 Endorsements/Back of Check...23 Examining Checks and Other Statement Entries...23 Facsimile Transmission of Information...24 Federal Deposit Insurance...24 Foreign Checks...24 Identification of Presenter...25 Items Resulting from Voluntary Disclosure of Account Information...25 Joint Accounts...25 Legal Process...25 Lost Items...26 Multiple Signature Accounts...26 Non-Sufficient Funds (NSF), Overdrafts and Uncollected Funds (Standard Overdraft Practices)...26 Opt-in for Every Day Debit Card and ATM Overdraft Consideration...27 Postdated Checks...28 Power of Attorney...28 Preauthorized Savings Transfer to Cover Overdrafts...28 Printed Checks / Deposit Slips...29 Privacy...29 Processing of Items and Transactions...30 Refusal of Checks...30 Returned Items...30 Right of Setoff...32 Safeguarding Checks...32 Schedule of Fees and Charges...32 Severability...33 Signatures...33 Statements...33 Stop Payment Order...34 Taxpayer information...35 Third-Party Endorsements...37 Transferring Ownership...37

4 Unlawful Internet Gambling Enforcement Act...37 Waiver...37 Arbitration Provision for Our Account Agreement...38 Your Ability to Withdraw Funds...41 Longer Delays May Apply on a Case-by-Case Basis...41 Extended Exceptions...42 Special Rules for New Accounts...42 Electronic Fund Transfer Service...43 Gold Miner Card /Visa Check Card...43 ATM Networks...44 Point of Sale and VISA Purchase Transactions...44 Electronic Check Conversions...45 Personal Identification Number (PIN)...46 Customer Liability for Lost Card,PIN,Check Information or for an Unauthorized EFT...46 Documentation of ATM Transactions...47 ATM Safety...47 Gold Miner /VISA Check Card Fees...48 VISA Check Card Foreign Currency Transactions...48 Unlawful Card Use...49 Inactive Gold Miner and VISA Check Cards Hour Telephone Banking...49 Transferring Funds with the 24 Hour Telephone Banking Services...50 To Block Your Account from Telephone Access Hour Telephone Banking Service Charges & Privileges...50 Internet Banking...50 Mobile Banking...51 Preauthorized Electronic Payments and Deposits...51 Your Right to Stop Payment of Preauthorized ACH Transfers...52 Service Charges For Preauthorized Payments and Deposits...53 Our Liability To Complete Transactions...53 Disclosure of Account Information to Third Parties...54 Errors Or Questions About Your Electronic Transfers...54 Wire Transfer Service...55 Fedwire...56 Fees and Charges...56 Outgoing Wire Transfer Payment Orders...56 Payment Order Initiation and Authorized Representatives...57 Incoming Wire Transfers...58 El Dorado Savings Bank Business Days...58

5 Introduction Welcome to El Dorado Savings Bank and thank you for opening an account. Please read this Guide to Accounts and Services carefully and keep it for your records. The Guide to Accounts and Services and the Schedule of Fees and Charges are part of the contract between you and us for your deposit relationship with us (Agreement). When you open an account and sign our Signature Card, you and each authorized signer on your account agree that the account and any other personal accounts you have with us are subject to this Agreement, to related fees and service charges, and to our policies and practices. This Agreement supersedes all previous Agreements. Your rights and obligations under this Agreement are governed by the laws of the State of California, the State of Nevada if your account is with a Nevada Branch, and federal law. If state and federal law are inconsistent, federal law governs. Throughout this Agreement, the words you, your, and yours refer to each account owner, El Dorado Savings Bank, Bank, we, us, and our refer to El Dorado Savings Bank. We provide a copy of this Agreement to you when you open your account. You may obtain additional copies at our branch offices or by calling our Customer Service Department at Changes To Agreement We may change this Agreement at any time. For example, we may add new terms and conditions and we may delete or amend existing terms and conditions. We generally send advance notice to you of the change. If a proposed change is favorable to you, however, we may make the change at any time without advance notice. Your continued use of your account or your permitting it to remain open is indication of your acceptance of the change. 1

6 Account Agreement and Disclosure C O N S U M E R S E R V I C E S Checking Accounts Value Checking Minimum balance to open this account is $50. There is no minimum balance fee imposed on this account. This is a non-interest bearing account. This account provides electronic delivery of your monthly statement through our Internet Banking Service. If you want a monthly paper statement on this account with digital images of your checks, there will be a monthly fee of $3 as indicated in our Schedule of Fees and Charges. If there is no activity on your Value Checking account for any monthly statement cycle and your minimum balance for the cycle is less than $300 your account will be charged a $3 inactivity fee. To avoid this fee you must maintain a minimum balance of more than $300 or make sure that there is some activity on the account such as any deposit or withdrawal or any debit card or Gold Miner ATM card transaction. Additional disclosures for your account are included in the other documents provided to you along with this Guide to Accounts and Services. Regular Checking Minimum balance to open this account is $100. A minimum balance fee of $7 will be imposed every statement cycle if the balance in the account falls below $500 any day of the cycle. There is no minimum balance fee when you maintain the direct deposit of your payroll payments into your Regular Checking account. This is a non-interest bearing account. Additional disclosures for your account are included in the other documents provided to you along with this Guide to Accounts and Services. 2

7 Interest Checking Minimum balance to open this account is $100. Your interest rate and annual percentage yield may change. At our discretion, we may change the interest rate on your account daily without notice. Interest begins to accrue on the day of deposit if the deposit is made on a business day. Saturday is not considered a business day for the purpose of interest accrual on a deposit. Interest is payable up to but not including the day of withdrawal. Interest will be compounded every month and will be credited to your account every month. You must maintain a minimum balance of $500 in the account each day to obtain the disclosed annual percentage yield. No interest is earned for any day in which the balance of the account falls below $500. A minimum balance fee of $8 will be imposed every statement cycle if the account falls below $1,000 any day of the cycle. Seniors (aged 55 and over) pay no minimum service charge regardless of balance. There is a limit of one account per senior. 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. Additional disclosures for your account are included in the other documents provided to you along with this Guide to Accounts and Services. Investor s Money Market Checking Minimum balance to open this account is $5,000. Your interest rate and annual percentage yield may change. At our discretion, we may change the interest rate on your account daily without notice. Interest begins to accrue on the day of deposit if the deposit is made on a business day. Saturday is not considered a business day for the purpose of interest accrual on a deposit. Interest is payable up to but not including the day of withdrawal. 3

8 Interest will be compounded every month and will be credited to your account every month. The interest rate and annual percentage yield are variable and tiered according to the following structure: Rate tier 1:...$5,000 - $14,999 Rate tier 2:...$15,000 - $24,999 Rate tier 3:...$25,000 - $49,999 Rate tier 4:...$50,000 - $99,999 Rate tier 5:...$100,000 and above Your account will earn at the rate and annual percentage yield in effect for the rate tier in which your balance falls at the close of each business day. No interest is paid on balances below $5,000. We use the minimum 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. A minimum balance fee of $15 will be imposed for every statement cycle if the average daily balance of the account falls below $5,000 any day of the cycle. This account offers the following benefits: El Dorado Savings Bank will waive the fees we normally charge for withdrawals and inquiries at other institutions ATMs. Surcharge reimbursement up to $10 per monthly cycle. El Dorado Savings Bank will credit your account up to $10 for surcharges assessed by other financial institutions when you use their ATMs. Additional disclosures for your account are included in the other documents provided to you along with this Guide to Accounts and Services. Regular Savings Accounts Minimum balance to open this account is $100. Your interest rate and annual percentage yield may change. At our discretion, we may change the interest rate on your account daily without notice. Interest begins to accrue on the day of deposit if the deposit is made on a business day. Saturday is not considered a business day for the purpose of interest accrual on a deposit. Interest is payable up to but not including the day of withdrawal. 4

9 Interest will be compounded every month and will be credited to your account every month. You must maintain a minimum balance of $300 in the account each day to obtain the disclosed annual percentage yield. No interest is earned for any day in which the balance of the account falls below $300. A minimum balance fee of $3 will be imposed every month if the balance of the account falls below $300 any day during the month (This fee will be waived for minors and on accounts held in trust for minors). You must maintain a minimum balance of $10 in your account or the account may be closed. An early closure fee, if applicable, will be charged as indicated in our Schedule of Fees and Charges. 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. Cash withdrawals, and transfers from your regular savings account, may be made at any time, without limitation, at any branch location, ATM or shared network ATM as long as you have sufficient available funds in your account. A Consumer Regular Savings account may be linked to a consumer checking account with the same ownership to cover overdrafts. See the Preauthorized Savings Transfer to Cover Overdrafts section and the Opt-In for Everyday Debit Card and ATM Overdraft Consideration (Consumer Accounts only) section in this Guide to Accounts and Services for details. Additional disclosures for your account are included in the other documents provided to you along with this Guide to Accounts and Services. Gold Money Market Savings Minimum balance to open this account is $5,000. Your interest rate and annual percentage yield may change. At our discretion, we may change the interest rate on your account daily without notice. Interest begins to accrue on the day of deposit if the deposit is made on a business day. Saturday is not considered a business day for the purpose of interest accrual on a deposit. Interest is payable up to but not including the day of withdrawal. 5

10 The interest rate and annual percentage yield are variable and tiered according to the following structure: Rate tier 1:...$5,000 - $14,999 Rate tier 2:...$15,000 - $24,999 Rate tier 3:...$25,000 - $49,999 Rate tier 4:...$50,000 - $99,999 Rate tier 5:...$100,000 and above Your account will earn at the rate and annual percentage yield in effect for the rate tier in which your balance falls at the close of each business day. No interest is paid on balances below $5,000. Interest will be compounded every month and will be credited to your account every month. 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. Cash withdrawals, and transfers from your Gold Money Market Savings Account, may be made at any time, without limitation, at any branch location, ATM or shared network ATM as long as you have sufficient available funds in your account. A minimum balance fee of $15 will be imposed every month if the average daily balance in your Gold Money Market Savings Account falls below $5,000. A Gold Money Market Savings account may be linked to a consumer checking account with the same ownership to cover overdrafts. See the Preauthorized Savings Transfer to Cover Overdrafts section and the Opt-In for Everyday Debit Card and ATM Overdraft Consideration (Consumer Accounts only) section in this Guide to Accounts and Services for details. Additional disclosures for your account are included in the other documents provided to you along with this Guide to Accounts and Services 6

11 B U S I N E S S S E R V I C E S Business Checking Accounts Checking for Small Business Minimum balance to open this account is $100. A minimum balance fee of $8 plus a fee of $0.25 for each check processed in excess of 50 will be imposed every statement cycle if the balance in the account falls below $1,500 any day of the cycle. This is a non-interest bearing account. Additional disclosures for your account are included in the other documents provided to you along with this Guide to Accounts and Services. Business Checking Minimum balance to open this account is $100. A minimum balance fee of $10 plus a fee of $0.25 for each check processed in excess of 100 will be imposed every statement cycle if the balance in the account falls below $2,000 any day of the cycle. This is a non-interest bearing account. Additional disclosures for your account are included in the other documents provided to you along with this Guide to Accounts and Services. Interest Checking for Businesses and Non-profits This account is restricted to non-profits, sole proprietors and government agencies. Minimum balance to open this account is $100. Your interest rate and annual percentage yield may change at our discretion; we may change the interest rate on your account daily without notice. Interest begins to accrue on the day of deposit if the deposit is made on a business day. Saturday is not considered a business day for the purpose of interest accrual on a deposit. Interest is payable up to but not including the day of withdrawal. Interest will be compounded every month and credited to your account every month. You must maintain a minimum balance of $2,500 each day to obtain the disclosed annual percentage yield. No interest is earned for any day in which the balance of the account falls 7

12 below $2,500. A minimum balance fee of $15 plus a fee of $0.25 per check processed in excess of 100 will be imposed every statement cycle if the balance in the account falls below $2,500 any day of the cycle. 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. Additional disclosures for your account are included in the other documents provided to you along with this Guide to Accounts and Services. Analyzed Business Checking (Account Analysis) Minimum balance to open this account is $100. This is a non-interest bearing account. A monthly maintenance fee of $15 plus standard analysis charges apply to your account. Standard analysis charges are outlined in the Business Banking brochure provided to you upon the opening of your account or notification that your account has become subject to Account Analysis. The maintenance fee plus standard analysis charges may be offset by an earnings credit based upon the collected balance in your account. An earnings credit is calculated if the average daily collected balance in a statement cycle period is $1,000 or more. See the Account Analysis disclosure brochure for details regarding the earnings credit calculation. If an earnings credit is calculated for your account in a statement cycle, it is not interest and will not be posted to your account. The earnings credit is used only to offset the maintenance fee and standard analysis charges accrued in that statement cycle. Any excess earning credit may not be carried forward to subsequent statement cycles. Additional disclosures for your account are included in the other documents provided to you along with this Guide to Accounts and Services. 8

13 Addendum for Checking Accounts Checking accounts consist of a checking sub account and a savings sub account. The Bank may periodically transfer funds between these two sub accounts. If your account is a type on which interest is paid, your interest calculation will remain the same. Otherwise, the savings sub account will be non-interest bearing. The savings sub account will be governed by the rules governing our other savings accounts. This process will not affect your available balance, the interest you earn, FDIC insurance, or your monthly statement. Regular Savings for Business Minimum balance to open this account is $100. Your interest rate and annual percentage yield may change. At our discretion, we may change the interest rate on your account daily without notice. Interest begins to accrue on the day of deposit if the deposit is made on a business day. Saturday is not considered a business day for the purpose of interest accrual on a deposit. Interest is payable up to but not including the day of withdrawal. Interest will be compounded every month and will be credited to your account every month. You must maintain a minimum balance of $300 in the account each day to obtain the disclosed annual percentage yield. No interest is earned for any day in which the balance of the account falls below $300. A minimum balance fee of $3 will be imposed every month if the balance of the account falls below $300 any day during the month (This fee will be waived for minors and on accounts held in trust for minors). You must maintain a minimum balance of $10 in your account or the account may be closed. An early closure fee, if applicable, will be charged as indicated in our Schedule of Fees and Charges. 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. You are permitted six preauthorized or third-party transfers from your regular savings account each month. Three of these may be Point-of-Sale transactions or similar orders. 9

14 Telephone transfers using a customer service representative, and electronic transfers initiated through our Internet Banking Service or 24 Hour Telephone Banking Service are included in the six transfers per month limit. Preauthorized transfers to cover an overdraft in your linked checking account are also subject to the six per month limit and a per transfer fee (See our Schedule of Fees and Charges). Preauthorized transfers from your regular savings account to pay debts owed to the bank are permitted without limitation. Cash withdrawals, and transfers from your regular savings account, may be made at any time, without limitation, at any branch location, ATM or shared network ATM as long as you have sufficient available funds in your account. Additional disclosures for your account are included in the other documents provided to you along with this Guide to Accounts and Services. Business Money Market Savings Minimum balance to open this account is $5,000. Your interest rate and annual percentage yield may change. At our discretion, we may change the interest rate on your account daily without notice. Interest begins to accrue on the day of deposit if the deposit is made on a business day. Saturday is not considered a business day for the purpose of interest accrual on a deposit. Interest is payable up to but not including the day of withdrawal. Interest will be compounded every month and will be credited to your account every month. The interest rate and annual percentage yield are variable and tiered according to the following structure: Rate tier 1:...$5,000 - $14,999 Rate tier 2:...$15,000 - $24,999 Rate tier 3:...$25,000 - $49,999 Rate tier 4:...$50,000 - $99,999 Rate tier 5:...$100,000 and above Your account will earn at the rate and annual percentage yield in effect for the rate tier in which your balance falls at the close of each business day. No interest is paid on balances below $5,000. We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the 10

15 principal in the account each day. A minimum balance fee of $15 will be imposed every statement cycle if the average daily balance of the account falls below $5,000 any day of the cycle. You are permitted six preauthorized transfers from your Business Money Market Savings Account each month. Telephone transfers using a customer service representative, and electronic transfers initiated through our 24 Hour Telephone Banking Service are included in the six transfers per month limit. For each transaction that exceeds these limits we will charge you an Excess Transaction Fee of $15. Preauthorized transfers to cover an overdraft in your linked checking account are also subject to the six per month limit and a per transfer fee (See our Schedule of Fees and Charges). Preauthorized transfers from your Business Money Market Savings account to pay debts owed to the bank are permitted without limitation. Cash withdrawals, and transfers from your Business Money Market Savings account, may be made at any time, without limitation, at any branch location, ATM or shared network ATM as long as you have sufficient available funds in your account. Additional disclosures for your account are included in the other documents provided to you along with this Guide to Accounts and Services. CDS A N D R E T I R E M E N T P L A N S Certificates of Deposit / Jumbo Certificates A Certificate of Deposit is not transferable. El Dorado Savings Bank offers Certificates of Deposit and Jumbo Certificates of Deposit for terms ranging from one month to five (5) years. The provisions of this disclosure apply to both Certificates of Deposit and Jumbo Certificates of Deposit. The minimum balances to open requirements associated with Certificates of Deposit are set forth in the accompanying Savings Rate Sheet. Jumbo Certificates of Deposit require a minimum balance to open of $99,000. You must maintain at least the minimum balance set forth in the Savings Rate Sheet, for the term selected, to keep the account open. 11

16 Your account will mature at the end of the term as disclosed to you in your Certificate of Deposit. Interest begins to accrue on the day of deposit if the deposit is made on a business day. Saturday is not considered a business day for the purpose of interest accrual on a deposit. You will be paid the disclosed interest rate until the maturity date of your account. Interest will be compounded every month and will be credited to your account monthly and upon maturity. Interest is payable up to but not including the day of withdrawal. 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. This account will automatically renew at maturity. You will have seven calendar days from the maturity date to withdraw your funds without being charged a penalty. After the account is opened, you may not make deposits into, or withdraw principal from, the account until the maturity date. In the event of any withdrawal of principal from this account prior to the maturity date, you will forfeit an amount equal to the following, regardless of the length of time the funds withdrawn have remained in the account: Term Early Withdrawal Penalty Less than 3 months All interest paid, credited or accrued on the amount withdrawn from the most recent of the date of deposit or the date of renewal. 3 to 12 months Three months interest, whether earned or not, on the amount withdrawn at the nominal interest rate being paid on the account. More than one year Six months interest, whether earned or not, on the amount withdrawn at the nominal interest rate being paid on the account. If you make a withdrawal from the account, which reduces the balance below the minimum balance requirement, the account will be closed and the penalty will be imposed on the entire balance. 12

17 Any annual percentage yield disclosed assumes the interest remains on deposit until maturity and that you always satisfy the minimum balance requirements. Additional disclosures for your account are included in the Certificate of Deposit and other documents provided to you along with this Guide to Accounts and Services. 18 Month Retirement Plans Profit Sharing / Money Purchase / Traditional IRA / Roth IRA / Education IRA / IRA Rollover / Simplified Employee Pension Plans (SEP) Minimum balance to open this account is $250. You will be paid the disclosed interest rate until the maturity date of your account. Interest will be compounded annually, and will be credited to your account at year end and at maturity. Interest begins to accrue on the day of deposit if the deposit is made on a business day. Saturday is not considered a business day for the purpose of interest accrual on a deposit. Interest is payable up to but not including the day of withdrawal. You may make deposits into this account. Minimum deposit amount is $10. You may not make withdrawals from this account until the maturity date. This account will automatically renew at maturity. You will have seven calendar days from the maturity date to withdraw your funds without being charged a penalty. 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. If any of the deposit is withdrawn before the maturity date, a penalty of an amount equal to six months of interest, whether earned or not will be imposed. This penalty will not be imposed for a withdrawal following the death, or adjudication of incompetence of the account holder, or for periodic distribution if the account holder has attained the age of 59 1/2 or is disabled. In addition, if there is a premature distribution from your account before you reach the age of 59 1/2 you may be subject to a penalty tax by the federal and/or state government. You should check with your accountant before you take a premature distribution from your retirement 13

18 account. Additional disclosures for your account are included in the other documents provided to you along with this Guide to Accounts and Services. Ownership of Accounts Individual Accounts An individual account is an account in the name of one depositor only. Only that person may write checks against the account or withdraw money, regardless of who actually owns the funds. Multiple Party Accounts Joint Tenants With Right of Survivorship If your account is a joint account with right of survivorship, upon the death of one of the joint account holders, that person s ownership interest in the account will immediately pass to the other joint account holder(s). Joint as Tenants in Common If your account is a multiple party account without right of survivorship, upon the death of one of the account holders, that person s ownership interest will pass to the estate of the deceased account holder. Unless that account record reflects otherwise, each account holder will be deemed to own an equal percentage of the funds in the account. Community Property Account If your account is a community property account, the funds in your account are specified to be the community property of the named parties, who must be husband and wife. The ownership during the lifetime and after the death of a spouse is determined by state community property law and may be affected by a will. Each multiple party account holder, without the consent of any other account holder, may and hereby is authorized by every other account holder, to make any transaction permitted under the terms of the Signature Card and Guide to Accounts and Services. Each multiple party account holder is authorized to act for the other account holder(s) and we may accept orders and instructions regarding the account from any account holder, subject to the signature requirements on the Signature Card. Your obligations under the terms of the Signature Card and Guide to Accounts and Services are joint and several. 14

19 This means that each account holder is fully and personally obligated under the terms of the Signature Card and Guide to Accounts and Services, including liability for overdrafts and debit balances Further, the account is subject to the right of setoff. Individual and Joint Trustee Accounts ( Totten Trusts ) A trust account is an account payable to the account holder(s) (trustee(s)) during their lifetime(s) and to a designated beneficiary(ies) upon the trustee(s) death. As the trustee(s) of the account, you may withdraw money from the account and may, by written direction to us, change the beneficiary under the account. When the trustee(s) dies, the account is owned by the beneficiary. If the account is held by more than one trustee, the rules pertaining to ownership as Joint Tenants set forth above, will apply. If there is no surviving beneficiary upon the death of the last trustee, state law will determine the ownership of the funds in the account. Fiduciary Accounts Fiduciary accounts are opened by a person acting in a fiduciary capacity. This account may be opened and maintained only by a person or persons named as trustee(s) under written trust agreements or as executors, administrators, conservators and guardians under court orders. You will be asked to complete a Trust Certification, which gives the Bank the specifications under which to open the account. Other documentation may be required. Uniform Transfer to Minor Accounts If you have established the account as a custodian for a minor beneficiary under the California or Nevada version of the Uniform Transfer to Minors Act or the Uniform Gifts to Minors Act, your rights and duties are governed by the Act. You will not be allowed to pledge the account as collateral for any loan to you. Deposits in the account will be held by us for the exclusive right and benefit of the minor. 15

20 Business Accounts If the account is owned by a corporation, partnership, sole proprietorship, unincorporated association, etc. then the account owner must provide us with evidence to our satisfaction of the authority of the individuals who sign the signature card to act on behalf of the account owner. Notice of Withdrawal El Dorado Savings Bank reserves the right to require at least seven (7) days advanced notice in writing prior to each withdrawal from an interest bearing account other than a Certificate of Deposit. Payment of Interest As an alternative to having interest credited to your account as stated, you may request that interest be payable monthly, quarterly, semiannually or annually by transfer to an El Dorado Savings Bank Checking Account or Savings Account. The disclosed annual percentage yield assumes that principal and interest remain on deposit until maturity. A withdrawal of interest reduces the annual percentage yield earned on the account. Account Terms and Conditions Account Conversions We may either close or convert your account to another type of account when we consider it appropriate or necessary to do so. For example, we may close your account, revoke privileges, or convert your account to another account type if you make frequent transactions on a money market account, if your account has excessive deposit activity or if you use a personal account for business purposes. If we convert your account, we will send you information about your new account. Adverse Claims If a dispute arises over any person s authority to give us instructions concerning your account, we may require the signatures of all authorized signers on any checks and other instructions. Whether the dispute involves authorized signers, account holders, or third parties, we may also freeze the account until we receive evidence satisfactory 16

21 to us that the dispute has been resolved. If we do so, we may stamp checks presented for payment Refer to Maker (or similar language) and return them. However, we may, without liability to us, continue to honor checks and other instructions given to us by the individuals who appear as authorized signers according to our records. Application of Deposits Including Government Benefit Payments El Dorado Savings Bank will, to the fullest extent permitted by law, treat funds deposited to your account the same regardless of the source of the deposit. This includes, without limitation, deposits of Social Security, Supplemental Security Income and any other state or federal government benefit payments, direct deposit or otherwise, you may receive. You agree that if your account is overdrawn, or has service charges due at the time of deposit of a government benefit payment you authorize us, without specific consent, to apply the deposit(s) against the overdraft balance or charges due on your account. Further, you understand and agree you are under no obligation to deposit government benefits into your account and may discontinue doing so at any time. Each deposit of a government benefits payment to your account by direct deposit or otherwise, shall confirm your consent for us to apply such payments against an overdraft condition or service charges due. Cash Transactions Federal and state laws and regulations require all financial institutions to report certain types of currency transactions to federal and state agencies. Each of our offices or departments must complete a Currency Transaction Report at the time of each reportable transaction. In order to complete the report, we are required to obtain certain information about the individual conducting the transaction, as well as about the individual or organization for which the transaction is being conducted. If this information is not provided, we are required to refuse to handle the transaction. Further, we are required to maintain or disclose information about certain transactions to the Internal Revenue Service and other federal and state agencies. If you have any questions about the reporting requirements, contact your local Internal Revenue Service office. 17

22 Cashier s Checks If you are the purchaser, remitter, or payee of a cashier s check which is lost, stolen or destroyed and you provide us with our Cashier s Check Stop Payment Request, signed by both the purchaser and payee we will repay the amount of the lost cashier s check on the 90th day after it was originally issued. However, if the check is properly presented before the 90 day period expires, regardless of whether you have provided us with a Cashier s Check Stop Payment Request, we may pay the check. We will charge you a fee for each stop payment order, as indicated in our Schedule of Fees and Charges. Change of Address, Name and Authorized Signer You must notify us promptly in writing of any change in your name, address, or the authorized signers on your account. Until we have been properly notified (which may include providing us with new signature cards), we will continue to send statements and notices to the name and address listed in our files and to accept instructions from the persons listed in our files as authorized signers. Checks Bearing Limiting Notations Unless you have made special arrangements with us, we may pay or accept checks and other items bearing restrictions or notations (e.g., Void after 90 days, Paid in Full, Void Over $100 ), whether on the front or back, in any form or format. Such notations shall have no effect on us, and we will not be responsible for any losses, claims, and damages, or expenses that result from the placement of these or other notations on your checks. You agree to assume all risks and losses resulting from our acceptance or payment of items which may not conform to the purportedly restrictive language. You agree to indemnify, defend and hold us harmless for our acceptance or payment of such items. If you are seeking to pay a debt owed to us with a check marked payment in full or similar language, you must send that check to El Dorado Savings Bank, Chief Financial Officer, 4040 El Dorado Road, Placerville, CA 95667, or the restrictive language will have no effect on us. 18

23 Checks Containing Contradictory Terms You agree that if a check contains contradictory terms, typewritten terms prevail over printed terms, handwritten terms prevail over both and numbers prevail over words. Checks More Than Six Months Old Upon presentment of a check for payment more than six months after its date, we may charge your account for the check; however, we are not obligated to do so. If you want to ensure that we do not pay such a check, you should place a stop payment order on it. If a stop payment order has expired and the stale-dated check is subsequently presented for payment, we may pay the check and charge it to your account. 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 circumstances surrounding the loss. We will have a reasonable period of time to investigate the facts and circumstances surrounding any claim of loss. In no event will we be liable for special or consequential damages, including loss of profits or opportunity or for attorneys fees incurred by you. You also agree to pursue all rights you may have under any insurance coverage you maintain and to provide us with all reasonable information about your coverage, including the name of your insurance carrier, policy number, policy limits and applicable deductibles. Our liability is reduced by the amount of all insurance proceeds you receive or are entitled to receive. At our request, you agree to assign to us your rights under your insurance policy. You also have an obligation to notify law enforcement authorities to aid in the investigation of any criminal act relating to your account. We may deny a claim of monetary loss due to forged, altered, or unauthorized checks if you did not maintain proper control over your account or if you do not notify us of the existence of a forgery or of an unauthorized withdrawal within 60 days after you receive the statement reflecting that forged or unauthorized transaction. In the event of multiple signature forgeries, alterations, or unauthorized transactions by the same person, we may deny a claim of monetary loss that 19

24 occurs later than 60 days after you receive the first statement reflecting a forged, altered, or unauthorized transaction made by that person Closing or Suspending Accounts We may honor any authorized signer s request to close or suspend an account. At our discretion, we may require the signatures of all account holders and/or authorized signers before permitting the withdrawal of funds or the closing or suspension of an account. We may return checks or other items, marked Refer to Maker (or similar language), in the event there is a dispute over the ownership or control of an account. We may close your account at any time, with or without cause, and remit the collected balance to you at the last address we have on file for you. Any uncollected funds will be remitted later when they become collected. We may treat your account as closed if there are not funds in the account at the close of a statement period even if the zero balance was caused by the imposition of bank charges. You may close your account at any time upon notice to us, subject to any applicable early withdrawal penalty. We may dishonor any check, withdrawal order, item or transaction presented for payment after an account is closed by you or by us. In addition, we may refuse to permit withdrawals or transfers from any account for security reasons. Cutoff Hour for Legal Process and Stop Payments As authorized by California Commercial Code Section 4-303, we have established a cutoff hour for the purpose of receipt of legal process and of stop payment orders of 11:00 AM. Death or Incompetence You agree to immediately notify us regarding the death or court-declared incompetence of any owner or authorized signer on your account. Until we receive such notice in writing, we may continue to honor items drawn on your account by the authorized signer(s). We may freeze, refuse and reverse any transactions or deposits (for example, automatic federal direct deposits of benefit payments belonging to the decedent) if any owner or authorized signer dies or is declared by a court to be incompetent. In some cases we may require a certified copy of a certificate of death 20

25 prior to permitting transactions on an account held in the name of a decedent. Demand Drafts A demand draft is a paper debit item, drawn on a checking account, which does not bear your actual signature, but purports to be drawn with your authorization. This does not obligate us to honor demand drafts. We may refuse to honor demand drafts without cause or prior notice, even if we have honored similar items previously. Demand drafts may not be drawn on a El Dorado Savings Bank savings account. You agree we are under no obligation to verify whether the name and account number shown on demand drafts are consistent. If any information on a demand draft is incomplete, inaccurate, or in error, you agree that we may, at our sole discretion, either pay the demand draft and charge your account for the item as drawn or refuse to honor the demand draft and without prior notice to you return the item unpaid. Deposits to Accounts We may accept deposits to your account from any source and need not question the authority of the person to make the deposit. We also reserve the right to reject any deposit at our option. All deposits are subject to later verification, adjustment and collection by us. Deposit receipts do not necessarily indicate the correct balance in the account or the amount being deposited. You authorize us to supply any missing endorsements on deposited checks. If we receive a deposit on a non-business day, or after the hours set forth in the El Dorado Savings Bank Business Days section of this Agreement, we may treat it as if we had received it on the next business day. If you use one of our night depositories for making a deposit to your account, your deposit will be deemed received and will be credited to your account on the next business day after the day you placed the deposit in the night depository. Also, if you use the night depository, you will be bound by the terms and conditions of our Night Depository Agreement whether you have signed that Agreement or not. Digital Check Images When checks drawn on El Dorado Savings Bank checking accounts are presented for payment they are imaged. This means that digital images, rather than microfilm copies, 21

26 are made and stored on electronic media. Original checks are destroyed. We provide digital images of your canceled checks with your monthly bank statement. Digital images of canceled checks are considered legal documents for proof of payment. You agree that digital imaging of canceled checks is an acceptable means of retaining evidence of your check transactions. We store digital images of all paid checks for a period of seven years from the date the check was paid. Dormant Accounts and Escheat Your checking account may be considered inactive after six months and placed in dormant status after 12 months. Savings accounts may be considered inactive after 12 months and placed in dormant status after 24 months. To preclude your account from becoming subject to these additional controls you must perform one of the following activities within one year for checking accounts and two years for savings accounts: Make a deposit or withdrawal Write to us about the account Otherwise contact us about the account, such as telephoning and talking to one of our branch representatives If you do not take any of the above actions for three years, we are required to escheat the funds in the account to your state of residence as indicated in our records. If your account is escheated, you may reclaim the funds by submitting proof of ownership to the state. For applicable fees see our Schedule of Fees and Charges. Early Account Closure Should you close your checking or savings account within 90 days of its opening date, your account may be subject to an Early Closure Fee. Please see our Schedule of Fees and Charges for the current fee. Electronic Re-Presentment Under certain circumstances, your account may be debited electronically for checks previously returned for nonsufficient funds or uncollected funds, and re-presented for payment by the payee s bank. These electronically represented check entries will appear on your statement with the description Electronified Check. 22

27 Endorsements/Back of Check For several reasons we restrict how you endorse checks that you ask us to cash or deposit and what you may place or have preprinted on the backs of checks. Marks which obscure a depository bank s endorsement can lead to returned check processing delays. You agree to hold us harmless from any loss, liability, or damage we incur due to endorsements, terms, carbon bands, or other marks or information which obscure the area reserved for the depository bank s endorsement between 1 1/2 inches from the trailing edges and 3 inches from the leading edge of the checks you write or deposit. Examining Checks and Other Statement Entries We receive a great many checks. This and our need to comply with Expedited Funds Availability regulations require that we use automated check processing methods. Like most other banks we select some checks for review on the basis of certain criteria that change from time to time. This means that most checks are processed based upon information contained within the MICR (Magnetic Ink Character Recognition) line at the bottom edge of the checks. Checks are not individually examined for dates, maker signatures, or endorsements. You agree that we will have exercised ordinary care if we examine only those items we have identified according to certain internal criteria which may change from time to time. Since most checks are not individually examined, it is very important that you take care of your checks, promptly review all entries on your statement when received, and immediately report any suspicious or unauthorized activity to us. You agree that automated processing of your checks is reasonable and you accept responsibility for preventing and reporting counterfeit checks, forgeries, alterations, and other unauthorized uses of your checks or accounts. You agree that the exercise of ordinary care will not require us to detect forgeries, alterations, or counterfeit items that could not be detected by a person observing reasonable commercial standards. Since some types of check fraud have become more difficult to detect, we may choose in some cases to make further inquiries about certain checks or other paper items which are presented to us for payment against your account. If we are unable to contact you, or take other steps to determine with reasonable certainty that these payments are authorized by 23

28 you, we may refuse to accept a check presented in a banking office, or return checks or other paper items unpaid without any liability to you. Facsimile Transmission of Information You may, from time to time, request that we send information to you via facsimile (FAX) transmission. Errors in transmission or delivery sometimes occur and our sending information via FAX transmission is a special accommodation to you. Therefore, if we agree to send information via FAX transmission, you assume the risk that the information could be obtained by an unintended party and agree to indemnify, defend and hold us harmless from all costs (including attorney s fees), actions, damages, claims and demands related to or arising from our sending information via FAX transmission. You also agree to pay any fees associated with this service and to notify us within a reasonable time, not to exceed 30 minutes from the time of the request, if you do not receive the requested FAX. Your failure to notify us within this period will be deemed your acknowledgment that the information requested was received. Federal Deposit Insurance Funds in your deposit accounts with us are insured to at least $250,000 by the Federal Deposit Insurance Corporation (FDIC), and backed by the full faith and credit of the United States government. For information about FDIC coverage please refer to FDIC s brochure Your Insured Deposits, or visit Foreign Checks Checks drawn on foreign banks, including Canadian banks, are not subject to the same laws and regulations as checks drawn on U. S. domestic banks. We may refuse to accept a check for deposit or collection that is drawn on a bank or branch located outside the U. S. We do not accept checks or other instruments payable in a currency other than U.S. dollars. If we accept a foreign check for deposit or collection you agree to accept all risks associated with the collection process. Unlike domestic items, foreign items may be returned unpaid weeks or even months after we process them. You agree to accept all risks of a late return. If we credit your account with the proceeds of a foreign item such credit is provisional. We may reverse the credit at any 24

29 time if the foreign item is returned unpaid or is initially paid but later returned for fraud. We may charge you a fee for collection of Canadian or other Foreign checks. Identification of Presenter We may refuse to pay a check drawn on your account if it is presented to us by someone we cannot identify to our satisfaction. We may require an endorsement or signature guarantee from another financial institution before we will cash a check drawn on your account when presented for payment by someone who is not our customer. Items Resulting from Voluntary Disclosure of Account Information If you voluntarily disclose your account number to another person orally, electronically, in writing, or by other means, you are deemed to authorize each item, including electronic debits that result from your disclosure. We may charge your account and pay any items resulting from your disclosure Joint Accounts If your account is a joint account, and a dispute arises over any person s authority to give us instructions concerning the account, we may require the signatures of all authorized signers on any checks, withdrawal requests, or orders. We may also refuse to honor any checks, withdrawal requests, or orders until such a dispute is resolved. At our sole discretion, we may continue to honor checks, withdrawal requests, or orders by persons with actual, implied, or apparent authority on our records. Notice to one joint account owner is notice to all of the account owners. Legal Process We may comply with any writ of attachment, execution, garnishment, levy, injunction, restraining order, subpoena, warrant or other legal process which we believe in good faith to have been properly served and to be otherwise valid and which we believe applies to your account, even if we are not a party. We may accept and act upon legal process served by mail, by facsimile transmission, and at locations other than the branch or office where the account, property or records are held. We may charge you a fee for handling such process. If we are not fully reimbursed for our research and handling costs by the party which served us with the process, we may also charge such costs to any of your accounts or 25

30 otherwise look to you for payment of our charges. You agree to indemnify, defend and hold us harmless from any and all actions, claims, liability, losses, costs and damages associated with our compliance with any process that we believe to be valid. We may notify any authorized person of receipt of a legal process by telephone or at the last address on file for your account. Lost Items We act only as your collection agent when receiving items for deposit or cash. You should be aware that we reserve the right to reverse the credit for any deposited item or charge your account for cashed items should they become lost, mutilated, or destroyed while in the process of collection. Whether or not we reverse a credit, you agree to assist us in collecting the amount of any lost items by providing us with any such information and other assistance as we request. We may charge your account when a photocopy of a check you have written is presented to us for payment in place of a lost original, unless a stop payment order is in effect for the check. Multiple Signature Accounts We do not offer accounts on which two or more signatures are required for a withdrawal. If you indicate on your checks, signature card or other account documents that more than one signature is required for a withdrawal, this indication is for your own internal procedures and is not binding on us. We may pay out funds from your account if the check, item, or other withdrawal instruction is authorized or signed by any one of the persons authorized to sign on the account. We are not liable to you if we do this. Non-Sufficient Funds (NSF), Overdrafts and Uncollected Funds (Standard Overdraft Practices) You agree that nothing in this Guide to Accounts and Services or any other document signed or provided in connection with the opening of your account, conveys to you a right to overdraw the account, present items against insufficient funds, or otherwise to maintain your account in a negative balance condition. If you do not have sufficient available funds on deposit in your account to cover the amount of a check or other debit transaction (e.g., recurring debit card purchase, ACH preauthorized withdrawal, automatic payment, or other electronic fund transfers), the 26

31 check or transaction may be returned or rejected without payment as a non-sufficient funds item. However, at our sole discretion, we may create an overdraft by paying the check or permitting the transaction. In that event, you agree to immediately reimburse us for the full amount of the negative balance, with or without demand from us. You further agree that we will apply the next incoming deposit(s), regardless of source, to clear the overdraft until the overdraft condition no longer exists. Whether we return or pay a check or other debit transaction depends upon several things, such as the amount of the check or other debit transaction and the past activity in your account. Whether we pay or return a check or other debit transaction drawn against insufficient funds, we may impose a fee as set forth in our Schedule of Fees and Charges for each such item or transaction. We are not obligated to continue paying checks or transactions which create an overdraft even if we have done so in the past and we may refuse to do so in the future without any notice to you. Each account holder is jointly and severally responsible for paying any overdrafts created by any other account holder(s) or any other authorized signer(s) on the account regardless of whether the account holder signed the check or authorized the withdrawal that created the overdraft or benefited from the payment. In the event of an overdraft for any reason, we may elect to file a lawsuit against you to recover the amount of the overdraft. As a part of such a lawsuit, we shall be entitled to an award of the actual costs and reasonable attorney s fees incurred therein, in addition to the above-described fee and any other damages or remedies available to us under applicable law. We also offer a link to an El Dorado Savings Account which may provide a less expensive method of covering overdrafts than our Standard Overdraft Practices. For further information, see the Preauthorized Savings Transfer to Cover Overdrafts section in this Guide, or call our Customer Service Center at (800) Opt-in for Every Day Debit Card and ATM Overdraft Consideration (Consumer Accounts Only) If you want us to apply the preceding Non-Sufficient Funds (NSF), Overdrafts and Uncollected Funds (Standard Overdraft Practices) section to your ATM and every day debit card transactions, you will need to opt-in for such 27

32 consideration. If you choose not to opt-in and attempt an ATM withdrawal or every day debit card transaction that would exceed the collected balance in your account, authorization for such transaction will be denied. For further information regarding opt-in and for assistance in determining whether it is right for your account, please contact your branch office or call our Customer Service Center at (800) Postdated Checks We may, without incurring liability to you, pay or accept for deposit, or refuse to pay or accept for deposit, any check presented for payment or deposit prior to the date written on the check unless you provide us with a Stop Payment Order not to pay a specific check prior to its date. Our criteria for Stop Payment Order acceptance may be found in a separate section of this Guide to Accounts and Services. Power of Attorney If you want to grant someone power of attorney over your account, we may require you to complete our Power of Attorney form, which is available at any branch. Under most circumstances, we also accept the Uniform Statutory Form Power of Attorney contained in the California Civil Code, or other forms. However, we must review any such form before accepting it, therefore using another form may delay our acceptance of a power of attorney. If you do not use one of our forms or another form that is acceptable to us, we may refuse with or without cause to honor any power of attorney you grant. We may require a separate form for each account for which you want to grant power of attorney. We may require approval, in writing, by all signers on an account, of any power of attorney authorized to draw against the account. Preauthorized Savings Transfer to Cover Overdrafts If you hold both a consumer checking account and a consumer savings account (Regular Savings or Gold Money Market Savings), and ownership is the same for both accounts, you may use our preauthorized automatic transfer to prevent overdrafts on your checking account. Once your accounts are linked and a debit transaction is presented that would overdraw your checking account, as long as sufficient 28

33 available funds exist in your linked savings account, an automatic transfer will occur to cover the overdraft. A fee is assessed for each automatic transfer but it is lower than our NSF/Overdraft fee. See our current Schedule of Fees and Charges for the transfer fee amount. Note: If you want Preauthorized Savings Transfers to cover overdrafts on your ATM and Every Day (non-recurring) VISA Debit Card transactions, you will need to opt-in (see Opt-In section). Opt-In is required because automatic transfers occur as needed when a transaction posts to your account. If you do not opt-in and attempt a card transaction that would exceed the balance of your checking account, the authorization will be declined even though you may have sufficient funds in your linked savings account to cover the transaction. Printed Checks / Deposit Slips You must verify the accuracy of all information shown on your checks. If you find an error, do not use the check. Notify us immediately of the error. Also you may not use check stock that cannot be photocopied. Our liability in matters resulting from incorrectly printed checks you have obtained through us is limited to the replacement or cost of the checks, whichever is less. You agree to defend, indemnify, and hold us harmless against liability we may incur from incorrect information on any check you write. If information is incorrect on any deposit slip you use, we may take additional time processing your deposit without incurring liability to you. You agree to use only checks obtained through us, or if obtained elsewhere, approved by us in advance. If we encounter excessive rejects during processing, we may ask you to have your checks reprinted at your expense. After attempting to correct the problem with your checks, and if the problem persists, we may charge your account for extra handling. We will not be responsible for any costs or losses that may result if our equipment is not able to read and process checks you provide or obtain elsewhere without our prior approval. Privacy At El Dorado Savings Bank, protecting the privacy of your personal information is important to all staff and management. We value your business and the trust you put in El Dorado Savings Bank. To help you better understand 29

34 how your personal information is protected at El Dorado Savings Bank please refer to our Personal Information Privacy Protection Policy. This policy is available in all banking offices, on our Web Site at com, and is mailed as required by law and regulations to all customers of El Dorado Savings Bank. Processing of Items and Transactions We accept, pay or charge to the appropriate account, your checks and other items in the following order: All paper and electronic deposits and credits are posted first, followed by ATM and VISA Check Card debit transactions, checks and other paper debit transactions you may have authorized, and finally Automated Clearing House (ACH) debit transactions. Within each priority or category items are posted in the order in which they are presented to us. El Dorado Savings Bank does not adjust or manipulate the posting priority to enhance NSF or Overdraft Fee revenue. Refusal of Checks We may refuse to accept a check you wish to deposit for any reason. For example, we normally do not accept checks for deposit that have previously been dishonored, checks (including Cashier s Checks) more than 90 days old, or checks with certain types of restrictive endorsements. Returned items This section applies to items you have deposited or that we have cashed for you and includes items drawn on us as well as items drawn on other financial institutions. If a cashed or deposited item is returned to us at any time for any reason, including for any breach or warranty claim, or according to any law, regulation or rule (including a clearinghouse rule), by the bank on which it is drawn or any collecting bank, we may accept that return item and charge the item back against your account without regard to whether the other bank finally paid the item or returned the item in accordance with any applicable midnight deadline or clearinghouse rule. We may debit your account for any interest you may have provisionally earned on the item. We may debit your account for a returned item, including an indemnified copy of the original item, or an image replacement document (IRD), at any time on or after the day it is returned to us by electronic, automated clearing house (ACH) or other means or on the day we receive 30

35 notice that the item is being returned to us whichever is earlier. We are not liable for any action or inaction to recover payment of a returned item. If one of your cashed or deposited items has been paid by the financial institution on which it is drawn and is later returned to us with a claim that there is a breach of warranty (for example it bears a forged or missing endorsement or is altered in any way), that the item is counterfeit, bears an unauthorized signature, contains an encoding error or should not have been paid for any other reason, we may debit your account for the amount of the item (plus any associated fees) and pay the amount to the claiming party. We are not obligated to question the truth of the facts that are asserted, to assess the timeliness of the claim or to assert any defense. We do not need to notify you in advance of our actions related to the claim. If you do not have sufficient available funds to cover a returned item, we may overdraw your account and charge an overdraft fee. We are not liable to you if there are insufficient funds to pay your items because we withdraw funds due to a hold or debit to your account in connection with a returned item. You agree to immediately repay an overdraft caused by a return of a cashed or deposited item. In some cases the financial institution on which the returned check or other item is drawn may send us an electronic notice of return, an indemnified copy of the original, or an image replacement document (IRD) instead of returning the item. We may act on, and you agree to be bound by, the electronic notice of return, or indemnified copy or IRD just as if the original item had been returned. We may re-present a returned check for payment to the institution upon which it is drawn but are not required to do so. If we choose to present the check again, we may do so without telling you the check was not paid or that we are presenting it again. If you have authorized us to re-present items on your behalf, you waive any right to receive notice if the item is returned again for any reason. We may charge a fee for each returned item re-presented or charged back to your account (see our current Schedule of Fees and Charges for our current fee). In the event any item presented for deposit is returned for any reason, we may elect to file a lawsuit against you to recover the amount of any loss resulting from the return of any such item. As a part of such a lawsuit, the prevailing party shall be entitled to an award of the actual costs and reasonable attorney s fees incurred therein, in addition to the above-described fee and any other damages or remedies 31

36 available to the prevailing party under applicable law. Right of Setoff The law provides that we may, but are not obligated to, take funds on deposit in your account to satisfy a debt you owe us which is not paid when due. This is called the right of setoff. If we exercise this right of setoff, we will comply with all applicable laws and regulations, and we will notify you promptly of action taken. To the fullest extent permitted by law, all sums in a deposit account are subject to our right of setoff for liabilities owed to us by: any one or more of the account holders, including any other person who is a joint account holder; any partnership of which you are a general partner; or any other person or entity with whom you are a co-obligor, or who has agreed to act as surety or guarantor, or for whose debits you are liable or may be contingently liable. If we exercise our right of setoff against an account that is subject to an early withdrawal penalty, the account will be assessed the applicable early withdrawal penalty. Safeguarding Checks You agree to safeguard your blank checks and to take reasonable steps to prevent their unauthorized use. You agree to notify us immediately if it appears that any blank checks are missing or otherwise unaccounted for. Further, you agree to accept responsibility for any failure to safeguard your blank checks. We may require you to accept a new account number if one or more of your blank checks are lost or stolen. Contact us immediately by calling the telephone number on your account statement or if you lose your blank checks, or write to us promptly at El Dorado Savings Bank, Savings Department, 4040 El Dorado Road, Placerville, CA We may deny a claim of monetary loss due to forged, altered, or unauthorized checks if you did not maintain proper control over your account, or over the checks and the individuals who had access to information about your account. Schedule of Fees and Charges We may establish fees applicable to deposit accounts, and such fees will be set forth in the Schedule of Fees and Charges or other documentation provided to you for the account or service. We reserve the right to change our fees and charges from time to time without notice, except as may be required by law. You also authorize us to debit your 32

37 account for any charges you incur related to the account even if such debit will overdraw the account. Severability If any provision of this Guide to Accounts and Services is determined to be void or invalid, the rest of the document will remain in full force and effect. Signatures If you authorize us to accept facsimile signatures or other signature devices (such as a stamp), you agree to assume full responsibility for any and all payments made by us in reliance upon facsimile or other signature devices resembling signatures which have been provided to us by authorized persons. You agree to indemnify and hold us harmless from any and all losses, claims, damages, liability, costs and expenses arising directly or indirectly out of the misuse or the unlawful or unauthorized use of the facsimile or other signature device. Statements We will provide checking and selected savings account holders with statements listing their account transactions. Any Annual Percentage Yield applicable to your account for the period covered by the statement will be contained in the statement. You agree to examine your statements and digital check images, if any, and other items as soon as you receive them. You assume full responsibility for monitoring and reviewing the activity of your account and the work of your employees, agents and accountants. If your account is a business, association or fiduciary account, you agree to have an individual who is not authorized to sign checks on your account inspect your statements and digital check images, if any, on a regular basis to look for improper or unauthorized signatures, alterations, forged endorsements, overpayments or other irregularities, and to ensure that your accounts are being handled in a proper manner. You agree to notify us immediately if you think there is an error or an unauthorized transaction shown on your statement. If you fail to notify us within 60 days of the statement mailing or delivery date, we will assume the statement is correct. If we send you a statement or item which contains or discloses an improper or unauthorized signature or an alteration, you must notify us of that fact within 60 days after we mail or deliver the item or 33

38 statement to you. If you do not, we may refuse to reimburse you for subsequent unauthorized transactions by the same wrongdoer(s). In addition, if you do not report an unauthorized or improper signature, an irregularity, or alteration within one year of the date of the statement, digital check images, if any, or other item that is mailed or delivered to you, the account balance and transactions indicated on your statements will be considered correct and we will have no further responsibility or liability to you with respect to those statements, digital check images, and other items. We may deny a claim of monetary loss due to forged, altered, or unauthorized checks if you did not maintain proper control over your account, or over the checks and the individuals who had access to information about your account. The forgoing provisions apply whether your statement is printed and mailed to your address, held for pick-up in your branch office, or provided electronically via our Internet Banking Service. Stop Payment Order If you want to stop payment on a check you have written, you must call us immediately and also file a written stop payment order at the branch office which holds the account before the check is finally paid by us. Any authorized signer on the account may furnish a stop payment order. For example, a joint account holder may stop payment on a check written by another account holder. If this is a personal account, after your death, any person who claims an interest in the account can stop payment on a check you have written. You must furnish us the following information before we can stop payment on a check: your account number, the check number and the exact amount of the check. We may also request the name of the payee and the date of the check, but this information is not normally essential to stop payment on the check. Complete accuracy is essential since all stop payment orders are processed by computer. If you do not or cannot give us the exact information we require, we will still attempt to stop payment of the check, but we cannot be responsible for failing to do so. We must receive your stop payment order in sufficient time before your check is paid to act on the order. If you do not give us sufficient time, your order will not be effective. If you telephone us with stop payment instructions, your telephone stop payment order remains in effect for 14 34

39 calendar days only. To extend the order beyond 14 calendar days you must follow up by completing and signing our written stop payment order. Each written stop payment order will remain in effect for six months and must be renewed by you every six months to remain in effect. If you do not renew the stop payment order when it expires and the item is presented for payment, we may pay the check and charge it to your account. If we pay a check which has a valid stop payment order on it with correct information, we may be responsible to you for up to the face amount of the item if you establish that you have suffered a loss because we paid the item. You agree to assign to us all of your rights against the payee and/or any other holder of the check. You also agree to cooperate fully with us in any legal actions that we subsequently take against such persons. Anyone holding the check, including the Bank, may be entitled to enforce payment against you despite the stop payment order. You agree to indemnify, defend and hold us harmless from all costs (including attorney s fees), actions, damages, claims and demands related to or arising from our action in stopping payment on the check. A service charge is assessed for each Stop Payment Order. See our current Schedule of Fees and Charges for the current amount. Taxpayer Information General: Federal and state law require that we report annually to you, to the Internal Revenue Service (IRS), and to the California State Franchise Tax Board, any interest payments that total $10 or more during the tax year on each of the accounts you hold with us. When accounts are opened, we are required by federal law to obtain, and each U.S. citizen or resident must provide to us, a certified U.S. Taxpayer Identification Number (TIN), as well as correct information regarding your backup withholding status. For individuals, the TIN to provide is your Social Security Number (SSN). If an account has more than one owner, we report taxpayer information for the first person listed. For all other entities, the TIN to provide is the entity s Employer Identification Number (EIN). Backup Withholding: If you fail to furnish us with your certified TIN, if the IRS notifies us that the TIN you gave us is incorrect, or if the IRS notifies you that you failed to report all your interest and dividends on your tax return, 35

40 then we are required to withhold 31% of your earned interest and provide it to the IRS. This percentage, referred to as backup withholding, is not a tax and you may claim any amount withheld and paid to the IRS as a credit on your federal income tax return. Accounts held by exempt foreign persons are exempt from taxpayer information reporting, unless we must provide backup withholding to the IRS. For accounts with more than one owner, all owners must qualify and certify their status as exempt foreign owners. For U.S. tax purposes, you generally may qualify as an exempt foreign person if you meet all of the following conditions: You are not a citizen or resident of the U.S. ; You do not have a U.S. Immigration Card; You are not present in the U.S. for at least 31 days during the current year, or if you are present for this period of time, the total number of days you were present in the U.S. during the current and 2 preceding years does not equal or exceed 183 days, when multiplied as follows: For days in the current year, multiply by 1; for days in the first preceding year, multiply by 1/3; and for days in the second preceding year, multiply by 1/6. The definition of exempt foreign person also generally includes foreign diplomats, foreign teachers, foreign students, and, provided that the deposit account is not connected to a U.S. trade or business, foreign partnerships, estates, or trusts. Some additional limited exemptions exist for more information, consult your tax advisor. If you are married to a U.S. citizen or resident and have made an election under section 6013(g) or (h) of the Internal Revenue Code, you may not claim to be an exempt foreign person. As an exempt foreign person, you must give us the address of your permanent foreign residence. You must also renew your status as an exempt foreign person every third calendar year. If you fail to renew your status by the last day of the third calendar year, your interest payments are subject to the 31% backup withholding. If you become a U.S.citizen or resident after opening your account, you must notify us within 30 days and provide us with your certified TIN. 36

41 Penalties: If you fail to furnish us with a correct TIN, you may be subject to a $50 IRS fine. If you make a false statement that has no reasonable basis and that results in our failure to institute backup withholding when we would have been required to do so, you may be subject to a $500 IRS penalty. If you deliberately falsify information, you may be subject to criminal penalties. Third-Party Endorsements Checks and other items you want to deposit or cash must be endorsed by all parties to whom the items are payable. We may require that any third-party endorsements made by a person or entity other than you be verified or guaranteed. Transferring Ownership Your account is for your use only. Ownership of your account is transferable only on our records. You may not transfer or assign ownership of your account to another party without our written consent. Even if we consent, we may require that you close the account and that the new account holder open a new account in their name. We may refuse to acknowledge or accept attempted pledges or assignments of an account or purported security interests in an account. Unlawful Internet Gambling Enforcement Act Pursuant to the requirements of the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA), by your continued use of your business account at El Dorado Savings Bank, you agree that neither you nor any other person having an ownership interest over your business account may use the account to process or facilitate payments for internet gambling transactions. For further information regarding your responsibilities under UIGEA, including the types of transactions that may be restricted or prohibited by law, please refer to Waiver We may delay enforcing our rights under these Terms and Conditions without losing them. Any waiver by us shall not be deemed a waiver of other rights or of the same right at another time. You waive diligence, demand, presentment, protest and notice of every kind, except as otherwise set forth in this Guide to Accounts and Services, and the Account Terms and Conditions. 37

42 Arbitration Provision for Our Account Agreement (a) Dispute Resolution by Arbitration: Any and all claims, controversies, or disputes arising out of or related in any way to this Agreement shall be subject to binding arbitration pursuant to the Federal Arbitration Act. This Arbitration Provision is made pursuant to a transaction involving a federally-chartered savings bank and interstate commerce, and shall be governed by the Federal Arbitration Act (the FAA ), 9 U. S. C. Sections 1-6. This Arbitration Provision applies to, without limitation, (1) all issues concerning any transaction governed by this Guide to Accounts and Services; (2) initial claims, counterclaims, crossclaims, and third-party claims, whether arising in law or equity, and whether based upon federal, state, or local law; contract; tort; fraud or other intentional tort; constitution, common law, or statute; (3) any issue as to whether any such claims, controversies, or disputes are subject to arbitration; and (4) any claims, controversies, or disputes that would otherwise be subject to class actions. This means that all claims, controversies or disputes that are the subject of class actions will also be subject to binding arbitration under the FAA and this Arbitration Provision. THE ARBITRATOR SHALL NOT CONDUCT CLASS ARBITRATION; THAT IS, THE ARBITRATOR SHALL NOT ALLOW YOU OR US TO SERVE AS A PRIVATE ATTORNEY GENERAL, AS A REPRESENTATIVE, OR IN ANY OTHER REPRESENTATIVE CAPACITY FOR OTHERS IN THE ARBITRATION. (b) Consent to Arbitration: You and we understand and agree that you and we are choosing arbitration rather than litigation to resolve disputes. You and we understand that you and we have the right to litigate disputes but that you and we prefer to do so through arbitration. In arbitration, you may choose to have a hearing and be represented by counsel. THEREFORE, YOU UNDERSTAND THAT BY ASSENTING TO THIS ARBITRATION PROVISION, YOU VOLUNTARILY AND KNOWINGLY: (1) WAIVE ANY RIGHTS TO HAVE A TRIAL BY JURY TO RESOLVE ANY CLAIM OR DISPUTE ALLEGED AGAINST US OR RELATED THIRD PARTIES; 38

43 (2) WAIVE YOUR RIGHT TO HAVE A COURT, OTHER THAN A SMALL CLAIMS COURT, RESOLVE ANY CLAIM OR DISPUTE ALLEGED AGAINST US OR RELATED THIRD PARTIES; AND (3) WAIVE YOUR RIGHT TO SERVE AS A REPRESENTATIVE, AS A PRIVATE ATTORNEY GENERAL, OR IN ANY OTHER REPRESENTATIVE CAPACITY, AND/OR TO PARTICIPATE AS A MEMBER OF A CLASS OF CLAIMANTS, IN ANY LAWSUIT FILED AGAINST US AND/OR RELATED THIRD PARTIES (c) Procedure for Arbitration: Any claimant under this Arbitration Provision must first submit to the other party a written notice of the claimant s claim against or dispute with the other party. That notice must include an explanation of the claim and a statement of the claimant s request for resolution. The party receiving the claim or dispute shall then be entitled to a period of period of 30 days to cure that claim or dispute. If either party fails to do so, that party shall be liable for all costs and expenses, including reasonable attorneys fees, incurred by the other party with respect to compelling and pursuing the arbitration. If the parties are unable to resolve the claim or dispute within this 30-day period, then the claim or dispute shall be resolved by arbitration. Arbitration may be heard, at the claimant s election, by the American Arbitration Association, the National Arbitration Forum, or any other arbitration forum as both parties may agree, and shall be conducted under the rules of the arbitration forum selected. The arbitrator shall apply applicable substantive law consistent with the FAA and applicable statutes of limitation, and shall honor all claims of privilege recognized by law. The arbitration shall take place in the federal district of your residence. Each party, you and we, shall bear our own costs and expenses, including attorneys fees that we incur with respect to the arbitration. However, if circumstances relating to the dispute (including, among other things, the size and nature of the dispute, the nature of the services that we have provided you, and your ability to pay) indicate it would be unfair or burdensome for you to pay the arbitration filing fees, we will advance the initial filing, administration, and hearing fees required 39

44 by the arbitrator, who will ultimately decide who will be responsible for paying those amounts. (d) Interpretation of this Arbitration Provision: Any dispute as to the validity of the portion of this agreement that prohibits class arbitration shall be a matter for resolution by a court and not by the arbitrator. In the event that the court deems the portion of this agreement that prohibits class arbitration to be unenforceable, then the ensuing class action shall be heard by the court and not by the arbitrator. (e) Statutes of Limitations: All statutes of limitations that are applicable to any claim or dispute shall apply to any arbitration between you and us. (f) Attorneys Fees: The arbitrator may, but is not required to, award reasonable attorneys fees to the prevailing party if allowed by statute or applicable law. (g) Enforcement of Award: The award of the arbitrator shall be binding and final after 15 days have passed and judgment upon the arbitrator s award may thereafter be entered in any court having jurisdiction. (h) Appeal Procedure: Within 15 days after an award by the arbitrator, any party may appeal the award by requesting in writing a new arbitration before a panel of three neutral arbitrators designated by the same arbitration service. The decision of the panel of three neutral arbitrators will be immediately binding and final. (i) Small Claims Court: Notwithstanding any other provision of this Arbitration Provision, either you or we shall retain the right to seek adjudication in Small Claims Court of any matter within its jurisdiction. Any matter not within the Small Claims Court s jurisdiction shall be resolved by arbitration as provided above. Any appeal from a Small Claims Court judgment shall be conducted, at the appellant s option, either (a) in accordance with the provisions of Sections of the California Code of Civil Procedure, or (b) in accordance with Section (h) of this Arbitration Provision. (j) Exception for Collection of Overdrafts: Notwithstanding any other provision of this Agreement, we shall retain the right to seek adjudication in the Superior Court of the State of California or the Judicial Court of the State of Nevada 40

45 of any matter relating to or arising out of any overdraft as described in the Non-Sufficient Funds (NSF), Overdrafts and Uncollected Funds (Standard Overdraft Practices) section of this document or any returned item as described in the Returned Items section of this document. As a part of such a lawsuit, the prevailing party shall be entitled to an award of the actual costs and reasonable attorney s fees incurred therein, in addition to any fee provided for herein and any other damages or remedies available to the prevailing party under applicable law. (k) Opting Out of Arbitration: You may elect to opt out of this Arbitration provision by sending or delivering written notice to us that you wish to opt out of this Arbitration Provision. Send the notice to El Dorado Savings Bank, Office of the President, 4040 El Dorado Road, Placerville, CA This notice must be received by us by the end of the 30th calendar day after you received this Guide to Accounts and Services. Your Ability to Withdraw Funds Our policy is to make funds from your deposit available to you on the first business day after the day we receive your deposit. Electronic direct deposits will be available on the day we receive the deposit. Once they are available, you can withdraw the funds in cash and we will use the funds to pay checks that you have written. For determining the availability of your deposits, every day is a business day except Saturdays, Sundays and federal holidays. If you make a deposit on a day we are not open, we will consider that deposit was made on the next business day we are open. Longer Delays May Apply on a Case-by-Case Basis In some cases, we will not make all 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. However, the first $200 of your deposits will be available on the first business day after the day of your deposit. If we are not going to make all the funds from your deposit available on the first business day after the day of 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 41

46 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 or the business day after the facts have become known to us. If you will need the funds from a deposit right away, you should ask us when the funds will be available. Extended Exceptions In addition, funds you deposit by check may be delayed for a longer period under the following circumstances: A check you deposited was previously returned unpaid You have overdrawn your account repeatedly in the last six months The check(s) you deposited on this day exceed $5,000 You have not had an established account for more than 30 days An emergency, such as failure of communications or computer equipment, has occurred We believe that check(s) you deposited will not be paid. We will notify you if we delay your ability to withdraw funds for any reasons, and we will tell you when the funds will be available. They will generally be available no later than the seventh 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 after your account is opened. 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 $5,000 of a day s total deposits of cashier s, certified, teller s, travelers 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 check must be payable to you. The excess over $5,000 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 $5,000 will not be available until the second business day of your deposit. Funds from all other check deposits will be available on the 15th business day after the day of your deposit. 42

47 Electronic Fund Transfer Service By accepting Electronic Fund Transfer (EFT) services offered by us, such as, Gold Miner Card, VISA Check Card, Telephone Banking Service, Automated Clearing House (ACH) transaction processing, Internet Banking and Mobile Banking you agree to the terms and conditions in this Guide to Accounts and Services and other specific disclosures provided for the services selected. Gold Miner Card /Visa Check Card The Gold Miner ATM Card is available to most El Dorado Savings Bank customers who have checking, regular savings or money market deposit accounts (savings). The El Dorado Savings Bank VISA Check Card is available to most El Dorado Savings Bank checking account customers. These cards allow you to access your El Dorado Savings Bank checking or savings account at any NYCE or PULSE Network, or CIRRUS SYSTEM ATM. The cards also allow you to access your El Dorado Savings Bank checking account for Point of Sale (POS) transactions with merchants displaying the NYCE or PULSE symbols. In addition, the El Dorado Savings Bank VISA Check Card allows you to access your checking account to pay for goods and services at merchant locations displaying the VISA logo. ATM, POS, and VISA network purchase transactions are subject to the terms and limitations provided herein. You can use your Gold Miner Card or VISA Check Card, together with your Personal Identification Number (PIN), to access your checking or savings account at all El Dorado Savings Bank ATMs. These ATMs are located at all El Dorado Savings Bank offices and are available 24 hours a day, 7 days a week. Services offered through El Dorado Savings Bank ATMs: Withdraw cash from your linked El Dorado Savings Bank checking or savings account You may withdraw up to $600 per calendar day if you have sufficient available funds in your accounts Make deposits to your linked El Dorado Savings Bank checking or savings account Make transfers between your linked El Dorado Savings Bank checking and savings accounts Obtain balance information on your linked El Dorado Savings Bank checking or savings account 43

48 Gold Miner Cards and VISA Check Cards are the property of El Dorado Savings Bank and are provided as a service to our customers. We reserve the right to limit or cancel all card privileges at any time without prior notice, subject to applicable laws and regulations. If we cancel your card you are required to return the card when asked. In addition, you may cancel the card privileges at any time by cutting your card in half and delivering or mailing it to your local El Dorado Savings Bank branch. Please include a written request to cancel. You must be 18 years old or older to obtain a Gold Miner Card or a VISA Check Card. Issuance of the Gold Miner Card or the VISA Check Card may be subject to El Dorado Savings Bank s approval of your application. ATM Networks Since El Dorado Savings Bank is a member of the NYCE, PULSE and CIRRUS SYSTEM networks you can use your Gold Miner Card or VISA Check Card at any ATM displaying the NYCE, PULSE or CIRRUS SYSTEM symbol to: Withdraw cash from your linked El Dorado Savings Bank primary checking or savings account. You may withdraw up to $600 per calendar day if you have sufficient available funds in your account. Make transfers between your linked El Dorado Savings Bank primary checking and savings accounts. Obtain balance information on your linked El Dorado Savings Bank primary checking and savings account. Please note: deposits are only possible at El Dorado Savings Bank ATMs. Point of Sale and VISA Purchase Transactions Through Point of Sale devices displaying the NYCE or PULSE symbol, you may use your Gold Miner Card or VISA Check Card to pay for purchases of merchandise, gas or food from your checking account. POS transactions cannot be made with a Gold Miner Card linked only to an El Dorado Savings Bank savings account. For the Gold Miner Card, POS transactions are subject to a withdrawal limit of up to $3,000 per calendar day if you have sufficient available funds in your checking account. The merchant must have a magnetic strip reader and pin pad that provides for the entry of the cardholder s PIN. For the VISA Check Card, POS and VISA purchase limits 44

49 are combined to a limit of $3,000 per calendar day if you have sufficient available funds in your checking account ($4,000 for Investor s Money Market Account holders). For some VISA Check Card customers the per calendar day limit may be modified. If the daily limit is modified the cardholder may be notified. When you use your El Dorado Savings Bank VISA Check Card for a POS purchase transaction you are generally required to swipe your card through a magnetic stripe reader and enter your PIN via a PIN pad, however some merchants processing POS purchase transactions through the NYCE network may authorize your transaction without requiring you to enter your PIN. Generally these PIN-less or on-demand transactions are for small amounts. Regardless of whether you are asked to provide a PIN, these are not VISA transactions. They will appear on your monthly checking account statement with a POS designation. When you use your VISA Check Card at a merchant displaying the VISA logo and you choose to authorize the transaction by your signature, you will be required to swipe your card through a magnetic stripe reader and sign the merchant s copy of the purchase receipt. The merchant will provide you with a copy of your signed receipt. These transactions which will also appear on your monthly checking statement are processed through the VISA system and are considered VISA transactions. When you use your VISA Check Card for VISA transactions you agree that these are transactions upon which you may not place a stop payment order. If you have a dispute over the quality of goods or services delivered or the failure to receive goods or services as promised, you are responsible for resolving the dispute directly with the merchant. We cannot credit your account for the disputed amount. If you have questions about your VISA Check Card, your rights and responsibilities, or a particular transaction please contact our Card Services Department at (800) or your branch manager. Electronic Check Conversions You may authorize a merchant or other payee to make a one-time electronic transfer from your checking account using information from your check to pay for purchases or pay bills. 45

50 Personal Identification Number (PIN) ATM and POS access to your account is through use of a PIN. Since your PIN is a security code designated to protect against unauthorized use, the following must be observed: Keep your Gold Miner Card or VISA Check Card in a safe place. No one but you should use it. However, if you give someone your Gold Miner ATM Card or El Dorado Savings Bank VISA Check Card and PIN, any transactions performed are considered authorized transactions. Memorize your PIN. Do not write your PIN on your card. Never reveal your PIN to anyone. Advise us at once of any loss or theft of your Gold Miner Card or VISA Check Card and/or PIN. Failure to comply with the above conditions may result in the cancellation of your Gold Miner Card or VISA Check Card. Customer Liability for Lost or Stolen Card, PIN, Check Information or for an Unauthorized EFT Contact El Dorado Savings Bank at once if you believe your Gold Miner Card or VISA Check Card has been lost or stolen, your PIN has been discovered, or that someone has transferred money from your checking or savings account without permission. Tell us at once if you believe an electronic fund transfer has been made without your permission using information from your check. Telephoning is the best way of reducing your losses. If you do not contact us, it could result in a loss of all the funds in your linked accounts. If you tell us orally, we will require that you send us your complaint or question in writing within ten business days. If you need to report your card as lost or stolen during normal business hours call your local branch office or and ask for Card Services. After hours you should call to report your card as lost or stolen. You should also call the numbers listed above if you believe a transfer has been made using information from your check without your permission If you believe your Card or PIN has been lost or stolen and you notify us within two business days after you learn of the loss, your maximum loss will be $50 on the Gold Miner 46

51 Card, and nothing on the VISA Check Card. If you do not notify us within two business days after you learn of the loss or theft of your Card or PIN, and we can prove we could have stopped someone from using your Card or PIN if you had notified us, you could lose as much as $500 on the Gold Miner Card and $50 on the VISA Check Card. If you fail to report an unauthorized EFT, including those made by card, code, or other means, within 60 days after the first statement showing the unauthorized EFT was sent to you, your maximum liability is the amount of all unauthorized electronic fund transfers that occurred after the 60-day period and before you notified us of the loss, but only if we can demonstrate that such transfers would not have occurred if you had notified us within 60 days after the statement was sent to you. Documentation of ATM Transactions ATM transaction receipts are optional. If you so request, you will receive a transaction receipt (unless a malfunction prevents the printing of one). ATM receipts reflect information you entered into the ATM at the time of transaction and therefore their validity is subject to our review and verification of the transaction. All transactions performed with your Gold Miner Card or VISA Check Card are reflected on your monthly checking or savings account statement. ATM Safety When using your Gold Miner Card or VISA Check Card it is important to observe your surroundings, particularly at night. Park nearby in a well-lighted area and be sure to lock your vehicle when you leave it. Do not display your cash at the ATM. Keep your account information confidential and always take your receipt(s) with you. If you notice any suspicious activity, do not use the ATM. Instead, consider going to another ATM, or coming back another time. 47

52 Gold Miner/VISA Check Card Fees At this time there is no annual fee charged for the Gold Miner Card or VISA Check Card. We do not charge a fee when you use your Gold Miner Card or VISA Check Card at an El Dorado Savings Bank ATM or at NYCE or PULSE Point of Sale devices. Service charges for inquiries, transfers, cash advances and cash withdrawals at non El Dorado Savings Bank ATMs, and for replacement cards, are shown in our Schedule of Fees and Charges. You may be required to pay a surcharge for cash withdrawal transactions at ATMs not owned by El Dorado Savings Bank. Any such fee must be disclosed at the ATM terminal and you should be given the opportunity to terminate the transaction. In addition, you may be charged a fee for a balance inquiry even if you do not complete a fund transfer. You may also be charged a fee for a POS transaction. Fees of this nature should be shown on your receipt issued at the time of the transaction. Such fees will be included in your transaction amount but will not be separately shown on your monthly account statement from El Dorado Savings Bank. Transactions using your Gold Miner Card or VISA Check Card will affect your account the same as any other withdrawal. Therefore, they could result in account charges if the transactions caused your balance to fall below the minimum balance required to avoid a monthly service charge, or if your balance is insufficient to cover outstanding checks, Gold Miner Card or VISA Check Card transactions, or other outstanding debits. VISA Check Card Foreign Currency Transactions If you make a transaction in currency other than U. S. dollars, VISA will convert the transaction into a U. S. dollar amount. The conversion rate will be determined using VISA s currency conversion procedures then in effect. The conversion rate may be different from the rate in effect on the date of your transaction and the date it is posted to your account. Currently, VISA uses a currency conversion rate of either: (1) a range of rates available in wholesale currency markets, or (2) a government mandated rate. In addition, VISA then charges a one percent (1%) International Service Assessment (ISA) fee. We will charge your account the converted U. S. dollar amount determined by VISA as described above plus VISA s ISA fee. 48

53 Unlawful Card Use Your Gold Miner Card and VISA Check Card must not be used for an unlawful purpose. You agree you will not use your card or account for any transaction that is illegal under applicable law. El Dorado Savings Bank may decline to authorize any transaction that is considered an illegal activity. In addition, at our option, you agree we may cancel your card and close your account without prior notice to you. Inactive Gold Miner and VISA Check Cards Monthly we review all open Gold Miner and VISA Check Cards for activity. Cards that have been inactive for 12 months are automatically deactivated. If your card has been deactivated due to inactivity, and you contact us within 6 months after closure, we may reactivate your card. 24 Hour Telephone Banking El Dorado Savings Bank s 24 Hour Telephone Banking Service allows access to selected account information on checking, savings and real estate loans through a touch tone telephone. The telephone number for this service is You may also sign up for the ability to transfer funds between your El Dorado Savings Bank checking and savings accounts, and make your El Dorado Savings Bank real estate loan payment. Access to account information and transfers is granted only after you have entered the last four digits of the account s primary Social Security Number and have established a four digit PIN for that account. You will be able to perform the following on your checking and savings accounts: Obtain balance and payment information. Review withdrawals and deposits. You will be able to perform the following on your real estate loan: Obtain balance and payment information. Review interest paid information. 49

54 Transferring Funds with the 24 Hour Telephone Banking Services If you would like to use the funds transfer feature in our 24 Hour Telephone Banking Service you will need to complete and return to us a Transfer Authorization form. To obtain this form please call us during normal business hours at or contact your local branch office. Once we have approved the completed authorization form you will be allowed to transfer funds between your checking and savings accounts. You will also be able to make your El Dorado Savings Bank real estate loan payment from your El Dorado Savings Bank checking or savings account. Transfers will be completed only when sufficient available funds exist in the transfer from account to satisfy your request. In order to complete a telephone transfer, both accounts must have the same Social Security Number, you must know the PIN on both accounts and both accounts must have been authorized for transfers. In addition, if your account is a business savings account, you can only make six telephone transfers in a statement cycle from the savings account. See the Regular Savings for Businesses and the Business Money Market Savings sections in this Guide to Accounts and Services. Funds transferred and loan payments made after 5:00 PM may not be reflected until the next business day. To Block Your Account from Telephone Access If you do not want your account(s) accessible through the 24 Hour Telephone Banking Service, please call us during our normal business hours at 1-(800) or contact your local branch office. We will block access on those accounts you specify. 24 Hour Telephone Banking Service Charges & Privileges Any service charge for using the 24 Hour Telephone Banking Service will be shown in our Schedule of Fees and Charges. The privileges provided by this service may be cancelled by us at any time. Internet Banking Upon completion of El Dorado Savings Bank s Internet Banking Application and receipt and acceptance of our Internet Banking Service Agreement and Disclosure Statement, you may use our Internet Banking Service to: 50

55 Transfer money between your linked deposit accounts with us. Make your El Dorado Savings Bank loan payments from a linked deposit account. View balances or activity in your linked accounts. Communicate with us via as described in our Internet Banking Service Agreement. Pay your bills. Please refer to our Internet Banking Service Agreement and Disclosure Statement for all terms and conditions regarding your use of this service. Mobile Banking Our Mobile Banking service provides secure and convenient access to your El Dorado Savings Bank Internet Banking account through your web enabled cellphone (smartphone). Our Mobile Banking service is only available for customers who are registered to use our Internet Banking system. You must accept our Mobile Banking Service Agreement and Disclosure before you can sign on with Mobile Banking. You may use our Mobile Banking service to: Transfer money between your linked deposit accounts with us. View balances or activity in your linked accounts. Use it to pay your bills. Contact El Dorado Savings Bank customer service. Please refer to our Mobile Banking Service Agreement and Disclosure for all terms and conditions regarding your use of this service. Preauthorized Electronic Payments and Deposits If you have arranged for preauthorized electronic deposits to your checking or savings account from a third party, or preauthorized electronic payments from your checking account to a third party the following applies to you: Consistent with the rules of the National Automated Clearing House Association, we do not give next day notice to you that an Automated Clearing House (ACH) electronic deposit was credited to your account. Both electronic deposits and payments are recorded on your monthly statement or in your passbook. You may call during normal business hours to confirm 51

56 the electronic deposits and payments. You may also call our 24 hour Telephone Banking Service at , or use our Internet Banking or Mobile Banking Service to confirm electronic deposits, payments and reversals. Any ACH electronic deposit we credit to your account is provisional until we receive final settlement for the deposit through a Federal Reserve Bank. If we do not receive such final settlement, we will reverse the credit we gave you for the amount of the deposit. We may, at our option, act upon a cancellation request made by an originator by debiting (withdrawing) the deposit from your account and sending the funds back to the originating bank. If we receive an electronic deposit order and the account number for the designated beneficiary is a valid bank account number, we may credit the deposit order to the account whether or not the beneficiary s name corresponds with the name on the account. If we fail to credit your account for a deposit order we accepted, consequential damages are limited to interest at the Federal Funds Rate. However, we will not be liable if the error or delay was unintentional and resulted from a bona fide error, or was caused by circumstances beyond our control. The right to receive certain recurring deposits (for example, monthly Social Security Deposits) ceases upon death. Sometimes when the source of the deposits is unaware of the recipient s death, the deposits may continue after death. In such event, we have the right to debit the account, or any other account you have with us, for all amounts received after the date of death and return them to the payor. We may also use any other legal remedy to recover the amount of our liability. If the decedent s account was a joint account, the remaining account owners will be responsible for any overdraft created by such returns. Your Right to Stop Payment of Preauthorized ACH Transfers You can stop any regular preauthorized payments that will be made from your account. To stop these payments telephone us at or your local branch office during our normal business hours. You agree to indemnify, defend and hold us harmless from all costs (including attorney s fees), actions, damages, claims and demands relating to or arising from our action in stopping payment on your electronic transfer. 52

57 We need to receive your stop payment request at least three business days before the payment is scheduled to be made. If you call we will require your request in writing. Stop payment requests not received in writing expire after 14 calendar days. If we receive your request to stop one of these payments, three business days or more before the payment is scheduled, and we fail to do so, we will be liable for your losses or damages equal to the amount of the stopped item. We will charge you for each stop payment order you have us place (see Schedule of Fees and Charges). Your stop payment order will only affect the particular payment you described in your request. To ensure that the originator does not process the payment, you should inform the party of your stop payment order. (The originator is the person, organization, or financial institution you authorized to make payments from your account.) A stop payment request will only stop a particular payment from being made. If you want all scheduled future payments to be cancelled, you must tell us. If these regular payments vary by more than a pre-disclosed amount, the person you are going to pay should tell you at least 10 days before each payment when it will be made and how much it will be. Service Charges For Preauthorized Payments and Deposits Any service charges for preauthorized electronic payments or deposits, stop payment orders and ACH transactions services will be shown in our Schedule of Fees and Charges. Our Liability To Complete Transactions If we do not complete a transaction from your account on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages. However, there are some exceptions. We will not be liable for instance: If, through no fault of ours, you do not have available funds in your account to make the transaction, or if your checking or savings account has been closed or is not in good standing. If the automatic teller machine where you are making the transaction does not have enough cash. If the automatic teller machine was not working properly or is temporarily out of service and you knew 53

58 about the breakdown when you started the transaction. If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken. If available funds in your account are subject to legal process or other claims. If we have been prevented from completing any transaction due to mechanical or system failures. There may be other exceptions not specifically mentioned in our agreement with you. Disclosure of Account Information to Third Parties We will disclose information to third parties about your account or the transfer you make: Where it is necessary for completing transfers. In order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant. In order to comply with government agencies or court order. If you give us written permission. Please refer to our Personal Information Privacy Protection Policy for more information. Errors Or Questions About Your Electronic Transfers In case of errors or questions about your electronic transfers, or if your Gold Miner Card or VISA Check Card is lost or stolen, contact the branch office where your account is located or you may contact us during our normal business hours at: Call after hours Or Write El Dorado Savings Bank EFT Services 4040 El Dorado Road Placerville, CA You should contact us if you think your statement or receipt is wrong or if you need more information about a transfer listed on the statement or receipt. We must hear from you no later than 60 days after we sent the first statement on which the problem or error appeared. You must provide the 54

59 following information: Tell us your name and account number. Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information. Tell us the dollar amount of the suspected error. If you tell us orally, we require that you send us your complaint or question in writing within 10 business days We will tell you the results of our investigation within 10 business days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days to investigate your complaint or question. If we decide to do this, we will credit your account within 10 business days for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. For errors involving new accounts, Point of Sale and International transactions we have 90 days to investigate and resolve the error. For new accounts, we may take up to 20 business days to credit your account for the amount you think is in error. For VISA Card purchases these time periods are 5 business days to investigate and resolve an error, or 5 business days to credit your account and 90 days to investigate and resolve the error. If we do not receive your complaint or question in writing within 5 business days, we may not credit your account prior to resolution. If we decide there was no error, we will send you a written explanation within three business days after we finish our investigation. You may ask for copies of the documents we use in our investigation. Wire Transfer Service The Bank offers both incoming (credits to your account) and outgoing (debits from your account) wire transfer services to depositors only. All incoming and outgoing wire transfers (sometimes referred to herein as Payment Order ) are subject to this section. Wire transfers are subject to Article 4A of the Uniform Commercial Code, as adopted by the state whose law applies to the account which you are using for the funds transfer service.. This section does not apply to transactions governed by the Electronic Funds Transfer Act, Federal Reserve Board Regulation E, or transfers by check, draft, or other written item. El Dorado Savings receives and sends wire transfers in U. S. Dollars only. 55

60 Fedwire Fedwire is the electronic funds transfer system of the U. S. Federal Reserve Banks. When you send a payment order or receive a funds transfer, we or other banks involved in the funds transfer may use Fedwire. If any part of a funds transfer is carried out by Fedwire, your rights and obligations are governed by Regulation J of the U. S. Federal Reserve Board. Fees and Charges The applicable wire transfer service fees are reflected in the current Schedule of Fees and Charges. For the purposes of these services, Domestic refers to the 50 states of the United States. International and Foreign refer to foreign countries and parts of the United States that are not considered states (e. g., U. S. Territories). You also agree to pay any costs assessed by third parties for processing any special request related to a Payment Order. Intermediary and receiving banks, including the beneficiary s bank, may assess a fee for processing a Payment Order. Any of these fees may be debited from the amount of the wire. Outgoing Wire Transfer Payment Orders Processing Requests and Cutoff Times We have Cutoff Times for processing Payment Orders, and we process Payment Orders on a same-day basis until such Cutoff Times. Cutoff Times may vary depending on the type of Payment Order and may be changed by us at any time without notice. We will provide you our current Cutoff Times upon request. We treat Payment Orders we receive after a Cutoff time as received on the next Business Day. Amendment or Cancellation of Requests You have no right to amend or cancel a Payment Order after we receive it. If you ask us to do this, we may make a reasonable effort to act on your request prior to the time we execute such Payment Order. However, we are not liable to you if, for any reason, a Payment Order is not amended or cancelled. Inconsistent Names and Account Numbers We and any other party executing or receiving a Payment Order, including the beneficiary s bank, may rely on the number you provide in the Payment Order that identifies the beneficiary and on any other numbers you provide that identify the beneficiary s bank and any intermediate financial institutions included in the Payment Order, even if such numbers 56

61 do not correspond to the name of the beneficiary or the financial institution. We and any other receiving financial institution have no obligation to determine whether a name and number that you provided identify the same person or institution. You acknowledge that payment of a Payment Order initiated by you might be made by the beneficiary s bank on the basis of an identifying or bank account number that you provided even if that number identifies a person different from the named beneficiary. Transmission of Requests You authorize us to select any intermediary bank, funds transfer system, or means of transmittal to send your Payment Order. Our selection may differ from that indicated in your instructions. We shall not be responsible for any acts or omissions of any funds transfer system, any Federal Reserve Bank, any intermediary bank or any recipient of any Payment Order in any way related to your Payment Order, or any cancellation or amendment thereof, and no such entity or person shall be deemed to be our agent. Rejection of Requests The Bank may reject for any reason a Payment Order, including, without limitation, any Payment Order that (a) we believe contains incorrect, incomplete ambiguous or missing information, (b) involves funds that are subject to lien, security interest, hold, dispute or legal process prohibiting transfer or withdrawal, or (c) would violate any applicable law or regulation. We will notify you of any rejection of a Payment Order from your account orally, electronically or in writing, at our option. We are not liable to you for the rejection or obligated to pay interest for the period before you receive notice of the rejection. Interest Compensation If we are obligated to pay for a loss of interest that results from our error or delay regarding your Payment Order, we will calculate the interest as follows: We use a rate equal to the average of the Federal Funds rates set by the Federal Reserve Bank of New York. Payment Order Initiation and Authorized Representatives A Payment Order may be initiated in the manner and by the means agreed to by the Bank by any person who is an owner or Authorized Signer on the account from which the Payment Order is to be made, provided we receive confirmation of identification satisfactory to us in our discretion. In such case, no additional confirmation of authorization is required. 57

62 Incoming Wire Transfers We may receive wire transfers directly to your account through a funds transfer system or through some other communications system. We may reject an incoming wire transfer for any reason. We are not obligated to notify you if we reject any incoming wire transfer to your account. Notice of Incoming Wire Transfers We notify you about incoming wire transfers by listing them on your account statement. We send statements by mail or electronic delivery. We are not obligated to send you a separate notice of each incoming wire transfer. If you are expecting a wire transfer and want to find out if it has been credited to your account, call Customer Service at (800) or use our Internet Banking service to determine if a credit has been posted. Errors and Questions about Your Payment Orders You must notify us at once if you think a Payment Order or incoming wire transfer shown on your account statement or customer advice is incorrect. Notwithstanding anything else in this Agreement providing a longer time, you must send us a written notice describing any discrepancy no later than ten calendar days after the date you receive the first notice or statement on which the problem or error appears. If you fail to notify us within this ten calendar day period, the Bank is not liable for any loss of interest because of an unauthorized or erroneous Payment Order or an erroneous funds transfer. El Dorado Savings Bank Business Days All of our branch offices are open 9:00 AM to 5:00 PM Monday through Thursday and 9:00 AM to 6:00 PM on Friday. While some branches may be open with reduced hours on Saturdays, Saturday is not considered a business day. 58

63 (800) El Dorado Savings Bank (11/12) Member FDIC