Pinnacle Bank HSA Investment Account Terms and Conditions

Transcription

1 Pinnacle Bank HSA Investment Account Terms and Conditions 1. Investment Advice You agree and acknowledge that when you use the investment portion of your HSA, you, are solely responsible for determining the nature, potential value and suitability for you of any particular investment allocation, selection and strategy. 2. Investment Accounts May Lose Value. Any amounts in excess of the threshold you direct to be transferred from your Pinnacle Bank HSA Checking Account to your Pinnacle Bank HSA Investment Account, an investment custodial account, are not deposits or obligations of the mutual funds, or any bank, are not insured by the FDIC or by any other governmental agency, and are subject to investment risks, including the possible loss of the principal amount invested, and may fluctuate in value. 3. Investment Options Annual Services Fees. You understand and agree that the following service fees will be charged in connection with your use of the Pinnacle Bank HSA Investment Account and you authorize these fees to be deducted monthly from the balance in your Pinnacle Bank HSA Checking Account: a. Monthly Investment Options Service Fee for the Pinnacle Bank HSA Investment Account. The self-directed Pinnacle Bank HSA Investment Account includes a variety of mutual funds selected for Pinnacle Bank as custodian, by Devenir Investment Advisors, LLC, (Devenir) a registered investment adviser. The Pinnacle Bank HSA Investment Account is available when your HSA Checking Account Balance exceeds $2,000. When you activate the Pinnacle Bank HSA Investment Account, you pay a monthly HSA Investment Account service fee of $3.00 per month that is deducted from your HSA Checking Account Balance. b. Purpose of Monthly HSA Investment Account Service Fee. The Monthly Investment Options Account Service Fee is used to pay: Matrix Settlement and Clearing Services (Matrix) for services it provides in connection with the trading the investment options on behalf of the custodian. Devenir Group, LLC for investment recordkeeping services it provides in connection with the investment options. Devenir for investment advisory services it provides in connection with the Bank Investment Program and the investment options available under it.

2 c. Change in monthly service fee for HSA Investment Account services. Pinnacle Bank may, at its discretion, change the service fee associated with your HSA Investment Account. Should Pinnacle Bank decide to change the service fee on your account, we will provide you with written notice of the new service fee amount at least 30 days prior to the change. 4. Fees for Distributions. Pinnacle Bank does not charge a fee for distributions from your Pinnacle Bank HSA Checking Account or your Pinnacle Bank HSA Investment Account. If a distribution involves the liquidation of shares of a mutual fund that imposes a redemption fee, that fee will apply according to the terms of the fund's prospectus. 5. Fees for Rollovers. Pinnacle Bank does not currently charge a fee if you transfer your HSA account balance to another HSA provider. Should Pinnacle Bank decide to charge a fee for transfers to other providers, we will provide you with written notice of the new fee amount at least 30 days prior to the change. All rollovers or transfers out of your HSA Investment Account will require you to liquidate all holdings for cash distribution through Pinnacle Bank. If a rollover distribution involves the liquidation of shares of a mutual fund that imposes a redemption fee, that fee will apply according to the terms of the fund's prospectus. 6. Mutual Fund Fees and Expenses. In addition to the Pinnacle Bank HSA Investment Account service fee, mutual funds available through your HSA Investment Account may also charge fees and expenses, including 12b-1 fees, as stated in each mutual fund's prospectus. Some mutual funds may impose exchange fees and/or redemption fees. 7. Payments to Service Providers. Some or all of the mutual funds available as investment options under the Pinnacle Bank HSA Investment Account, or their affiliated advisors and distributors may make payments to the respective providers, or its affiliates for administrative, recordkeeping, transfer agent and distribution services they provide in connection with the distribution of the mutual fund. The mutual funds may make certain plan expense payments to Devenir Group, LLC for recordkeeping services it provides in connection with the Pinnacle Bank HSA Investment Account. These plan expense payments may be used in part to offset custodial fees charged by Matrix Settlement and Clearing and the investment advisory fees charged by Devenir. Without these plan expense payments, the Pinnacle Bank HSA Investment Account service fees described in Section 3 above could be higher. This may create an incentive for Devenir, acting

3 as investment adviser to the Pinnacle Bank HSA Investment Account, to select mutual funds for the Pinnacle Bank HSA Investment Account with respect to which the mutual funds will make plan expense payments. 8. Distributions from the Pinnacle Bank HSA Investment Account: Authorization for Withdrawals. Distribution requests are always paid first from your Pinnacle Bank HSA Checking Account balance. If your distribution request exceeds your Pinnacle Bank HSA Checking Account balance, it will be up to you to liquidate mutual funds in your Pinnacle Bank HSA Investment Account and move those dollars to your Pinnacle Bank HSA Checking Account to cover distribution requests. 9. Confirmation of Transactions. For investments in the Pinnacle Bank HSA Investment Account, you agree to electronic confirmation of your trades. You may obtain immediate confirmation of any transaction in the Pinnacle Bank HSA Investment Account by either using the e-delivery, print screen function following each transaction or checking your account online through the Transaction History tab. 10. Prospectus. Before you make any investment, you should carefully review the fund s prospectus and consider its objectives, associated risks and any fees or expenses that may apply. Investing entails the risk of loss of principal. You acknowledge and agree that a prospectus has been made available to you electronically prior to and following the purchase of any investments in this program. 11. Use of Investment Accounts. You confirm and agree with respect to your use of the investment account options: a. That Pinnacle Bank as custodian is responsible for meeting all requirements to report information to you and your beneficiaries, including without limitation, proxy and prospectus information on any investments you hold in the investment custodial account. b. That you must direct the investment of your health savings account assets allocated to the Pinnacle Bank HSA Investment Account through Matrix by giving your investment directions directly to Pinnacle Bank s designated investment recordkeeper. Pinnacle Bank s investment recordkeeper will directly communicate all such directions to Matrix. Matrix is authorized and directed to follow all such directions received from Pinnacle Bank s investment recordkeeper.

4 c. That Pinnacle Bank s investment recordkeeper will have total responsibility for maintaining all records regarding your investment custodial account balances with Matrix. d. That your Pinnacle Bank HSA Investment Account is eligible to participate in the investment custodial account with Matrix because it is a "Health Savings Account" as defined under Section 223(d) (1) of the Internal Revenue Code of e. That under the terms of your Pinnacle Bank HSA Investment Account, your investment assets may be aggregated in Pinnacle Bank s investment custodial account for investment purposes with the assets of other HSA account holders. f. That trade orders must be submitted through the investment website or IVR no later than 3:00 p.m. Central for same business day execution and when submitting a buy and sell order on the same business day, the sell order will be executed same business day and the buy order executed the next business day. Settlement takes place on the third business day. 12. Access, Passwords and Security. You will be responsible for the confidentiality and use of your access number(s), password(s) and account number(s). You agree to hold harmless Pinnacle Bank, from any damages of any kind resulting from your decision to disclose your access number(s), password(s), or account number(s) to any third party, including but not limited to, entities that aggregate account information or website content, or persons who are or claim to be acting as your agent, proxy, or investment manager. You agree immediately to notify Pinnacle Bank if you become aware of: o o Any loss or theft of your access number(s), password(s) and/or account number(s); or Any unauthorized use of any of your access number(s), password(s) and/or account number(s). 7. Indemnification. You agree to defend, indemnify and hold Pinnacle Bank, Devenir Group, LLC, Matrix and Devenir harmless from and against any and all claims, losses, liability costs and expenses (including but not limited to attorneys' fees) arising from your violation of this Agreement, state or federal securities laws or regulations, or any third party's rights, including but not limited to infringement of any copyright, violation of any propriety right and invasions of any privacy rights. This obligation will survive the termination of this Agreement. 8. Modifications.

5 This Agreement may be modified by Pinnacle Bank upon written notice to you provided, however, that if Pinnacle Bank sends you written notice, via electronic communication or otherwise, of a modification, you confirm your acceptance of the modification by not closing and/or by continuing to use your Pinnacle Bank HSA Investment Account. 9. Amendments and Governing Law. We may amend these Terms and Conditions to the HSA Custodial Agreement at any time. We will provide you with a copy of any amendment at least 30 days before the amendment becomes effective. We may give you notice of this amendment by posting it on the Pinnacle Bank website. This agreement shall be construed and interpreted in accordance with the laws of the state of Tennessee, except to the extent federal law applies. PROSPECTUS E-CONSENT All the mutual funds are offered by prospectus only. Prospectuses contain more complete information on management fees, charges, and other expenses, and should be read carefully before investing. Electronic Delivery Consent You consent to receive the prospectuses electronically and to read and agree to the prospectuses terms before investing. Information on System Requirements: The mutual funds online prospectuses are contained in hypertext markup language (HTML) and in Adobe Acrobat's Portable Document Format (PDF). You may access a prospectus in HTML format without additional software. To access a prospectus in PDF, you must install the Adobe Acrobat Reader on your computer, which may be obtained free of charge from Adobe's web site. Electronic delivery is provided free of charge, however, other online service provider charges may apply. A free paper copy of the prospectus is available to you from your personal financial advisor, or by calling the mutual funds investor services directly. Prospectuses are not an offer to sell or a solicitation of an offer to buy shares in the fund, nor shall any such shares be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.

6 TRADING DISCLOSURE The mutual fund performance data quoted represents past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Prospectuses containing complete information, including most recent month-end total returns, management fee charges and expenses, are available through the links on the website or by calling the toll free telephone number for each fund. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be more or less than their original cost. An investment in mutual funds is insured by SIPC and is not insured by the FDIC. Although money market funds seek to preserve capital, it is possible to lose money by investing in these funds. All funds in your HSA Investment Account are purchased at NAV without a front end load. Each fund company may charge a short-term redemption fee if held for less than the time fame listed in the prospectus.