What Is An Account Disclosure Agreement

A. Account Classification/Account Ownership Name The classification of your account as a personal account (consumer), receiver or fiduciary account or business account and the mode of ownership of your account are shown on the signature card you sign when you open the account. We can count on the classification and form of ownership of your account for all purposes related to the account, as specified on the signature card. The following provisions describe the rules applicable to the various nomenclatures and forms of ownership available. Your account only applies to classification provisions and conditions on your signature card. Your signature on the signature card indicates shares on how the account is set up and how accurate the title is. If you share questions about the legal effect of the classification or form of ownership, you should consult your own lawyer, as you are solely responsible for the legal effect of creating your account or how it is managed with us. We assume no legal responsibility to inform you of the impact of the classification or form of ownership of your account on your legal interests. (Back to the top) D. Applicable law Your deposit relationship with us is subordinated in the first place to this Contract. It is also subject to the laws of the United States, the rules and regulations of the Board of Governors of the Federal Reserve system and various federal reserve banks, the rules and regulations of the competent banking authorities and other government authorities, and the laws of the state in which your account is located.

Your account is considered a “resident” in the state in which our institution is located, in which your account originally opened, which may be the state in which you reside. Accounts opened online are deemed to be established in the state of Kansas. If the terms and conditions of this Agreement were to be in violation or restricted by existing laws, these conditions would be interpreted in such a way that they would comply with that Law, but the rest of the Convention would not be affected by those laws and would remain fully in force and effective. (Back to the top) 2. Electronic cheque conversion You allow us to take into account electronic debits from your account resulting from electronic cheque conversions. An electronic cheque conversion is done when you give a paper cheque to a merchant or other recipient and allow that person to register the routing, account and serial numbers of that paper check in order to initiate an electronic charge on your account. This applies regardless of whether the test is empty, partially completed or fully completed and signed. If the cheque is presented to a point of sale or other beneficiary or sent to a merchant or lock-box and later converted into an electronic transfer; or if the cheque is kept by you, the merchant or another beneficiary. When one of your paper cheques is converted, it is collected electronically and debited from your account much faster than a paper cheque. This means that (1) You have a reduced right to stop payment, (2) You must ensure that your account has sufficient collected resources to cover the charge, and (3) we do not have an image or copy of the cancelled cheque. If a merchant uses a blank cheque to launch a post at the point of sale, the merchant must return the cancelled cheque to you.

You should treat the cancelled cheque with care, as someone else who takes possession of it could use the information to induce additional charges on your account. A merchant or other beneficiary who receives your cheque in the mail or accepts your cheque at the point of sale and decides to turn it into an electronic debit during the back-office processing must inform you of the conversion.