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THE COMMUNITY NATIONAL BANK DEPOSIT ACCOUNT AGREEMENT This document contains important information about your rights and obligations as an account holder or depositor at The Community National Bank. Please keep this disclosure for future reference. Some of the information disclosed in this booklet applies only to consumer accounts. Sections that are not applicable to business entities and accounts are noted as such. This disclosure includes information about the following types of accounts: Interest Bearing Accounts:
Non-Interest Bearing Accounts:
* Available only to businesses
I. GENERAL RULES FOR DEPOSIT ACCOUNTS AGREEMENT - The following printed terms will govern the operation of your account. The Community National Bank (CNB) may vary the terms by clearly writing or typing in this statement or in a separate written agreement. In this statement, "we", "us", and "our" refer to CNB. "You" and "your" refer to the account holder(s). This agreement includes your promise to pay the charges listed in the deposit account disclosure and your permission for us to deduct these charges, as earned, directly from your account balance. You also agree to pay any additional reasonable fees we may impose for services you request which are not contemplated by this agreement. Each signer on an account agrees to be jointly and severally liable for any account deficit resulting from charges or overdrafts, whether caused by you or another person authorized to withdraw from an account, together with costs we incur to collect the deficit including, to the extent permitted by law, our reasonable attorney's fees. This agreement incorporates clearinghouse rules and federal and state law, except to the extent that this agreement can and does vary such rules of law. OWNERSHIP OF ACCOUNT - The following provisions explain the rules applicable depending on the form of ownership specified on your signature card. Only the portion corresponding to the form of ownership specified will apply. Individual Account - Such an account is issued to one person who does not intend by opening this account to create any survivorship rights in any other person. Joint Account With Survivorship - (Not as tenants in common) - This type of account is issued in the name of two or more persons. Each of you intends that, upon your death, the balance in the account (subject to any previous pledge to which we have consented) will belong to the survivor(s). If two or more of you survive, you will own the balance in the account as joint tenants with survivorship and not as tenants in common. One joint account holder cannot remove another from the title of the account. Joint Account With No Survivorship - (As tenants in common) - This type of account is issued to two or more persons, but none of you intends, merely by opening this account, to create any right of survivorship in any other persons. We encourage you to agree and tell us in writing of the percentage of the deposit contributed by each of you. This information will not, however, affect the "number of signatures" necessary for withdrawal. One joint account holder cannot remove another from the title of the account. Account in the Name of a Minor - Under Ohio Law, anyone under the age of 18 is considered to be a minor, and a minor cannot be bound by a contract unless the law specifically allows it. Therefore, any minor who would like to open a checking account will be required to have a parent or legal guardian named as a joint account holder. The named parent or legal guardian will agree to indemnify the bank in the case of any losses (e.g. overdrafts) resulting from any transaction conducted by the minor. Trust or Pay-On-Death Account - If two or more of you create this type of account, you own the account jointly with survivorship. Beneficiaries acquire the right to withdraw only if: 1) all persons creating the account die, and 2) the beneficiary is then living. If two or more beneficiaries are named and survive the death of all persons creating the account, such beneficiaries will own this account in equal shares without the right of survivorship. The person(s) creating either of these account types reserves the right to: 1) change the beneficiary, 2) change account types, and 3) withdraw all or part of the deposit at any time. We will not release any funds, however, until all legal documents have been delivered to us. Corporate, Partnership and Other Organizational Account - CNB reserves the right to require the governing body of the legal entity to give us a separate authorization telling us who is authorized to act on its behalf. CNB will honor such an authorization until we receive written notice of a change from the governing body. DEPOSITS - You may make deposits to any of your accounts with us in person at any of our branch offices or by mail. Deposit accounts, except Business Checking accounts, may also make deposits at any CNB Automated Teller Machine (ATM) or other machine we have approved. You may also authorize direct deposits to any deposit account. We reserve the right to endorse and deposit any non-cash items submitted for deposit to your account. Also, we reserve the right to refuse any deposit in whole or in part. Any items accepted for deposit (including items drawn on us) will be given provisional credit only until collection is final (and actual credit for deposits of, or payable in, foreign currency will be at the exchange rate in effect on final collection in U. S. Dollars). We are not responsible for transactions initiated by mail or outside depositories until we receive them. We reserve the right to charge back your account or otherwise obtain a refund from you for any item or automated clearinghouse (ACH) entry deposited or credited to your account that is not finally paid for any reason. As set forth in the Schedule of Fees, a fee will be imposed for each returned deposited item. For Christmas Club and Savings Club accounts, deposits will be made through an internal funds transfer from your Basic, Personal, NOW or Checking Account. You will pre-authorize the frequency (i.e. weekly, bi-weekly, monthly, etc.) and dollar amount of each transfer. All internal funds transfer authorizations from your checking to your Club account continue in effect until you change or cancel them by notifying us in person or by mail. You may make additional deposits in person at any of our branches, by mail, by ATM or by making a transfer from any of your accounts electronically. WITHDRAWALS - You may make withdrawals from your account upon identification satisfactory to us. Withdrawals from any of your accounts can be made at any of our branch offices as well as other methods that we make available for your convenience. Unless otherwise indicated on the signature card where you have signed, any one of you who signs the signature card for the account opened may withdraw or transfer all or any part of the account balance at any time on forms approved by us. Each of you authorizes each other person signing the signature card to endorse any item payable to you or your order for deposit to this account or any other transaction with us, until we receive notice to the contrary. We do not have to cash such items or accept them for deposit. The fact that CNB may honor withdrawal requests that overdraw the finally collected account balance does not obligate us to do so. CNB will not be obligated to honor such requests unless required by law. Right To Refuse - The rules for withdrawals vary according to the account type. CNB reserves the right to refuse any withdrawal or transfer request that is for an amount less than any minimum withdrawal or that exceeds any frequency limitations. On interest bearing accounts other than time deposits, CNB reserves the right to require at least seven days written notice before any withdrawal or transfer as required by federal law. Withdrawals from a time deposit account prior to maturity or prior to the expiration of any notice period may be restricted and may be subject to penalty. This is described fully in Section II, Early Withdrawal Penalty. Checking and NOW Accounts- If you have a Basic, Personal, NOW or Checking account with us, you may make a withdrawal by writing a check, initiating a pre-authorized transfer, using an Access Device or an ATM/Debit card. You may use the card at an authorized facility, such as an ATM, or at merchants who have agreed to accept the card. Business and Cash Management Checking Accounts - If you have a Business, Cash Management Master or Cash Management Zero Balance Checking account with us, you may make a withdrawal by writing a check or by initiating a pre-authorized transfer. Statement Savings and Multi-Savings Accounts - If you have a Statement Savings or Multi-Savings account with us, you may make withdrawals in person at any of our branches or by mail using our withdrawal slips. You may also withdraw using an ATM card at an Automated Teller Machine. Within any monthly statement cycle, you may make up to six (6) pre-authorized, automatic, telephonic or computer transfers to other accounts of yours or to third parties. These transfers do not include in-person withdrawals or withdrawal at ATMs. If you exceed these limits, we reserve the right to limit your withdrawals, terminate your transfer privileges or close your account. Christmas Club and Savings Club Accounts - No withdrawals may be made from Club accounts prior to the check cut date. If you wish to make a withdrawal prior to the check cut date, the withdrawal must be for the entire account balance and the account will be closed. We reserve the right to not open future Club accounts if previous Club accounts were closed due to early withdrawals. For Christmas Club accounts, a check will be sent to you on November 1 (or on the next business day if the first falls on a Saturday or Sunday) for the entire balance in your account. For Savings Club accounts, you will tell us when the check will be sent to you. You may change the check cut date for Savings Club accounts at any time by notifying us in person or by mail. Money Market Deposit Accounts - You may make withdrawals from your Money Market Deposit Account (MMDA) in person at any of our branches or by mail by writing a check. You may also make withdrawals using an ATM card at an ATM. Within any monthly statement cycle, you may make a combined total of six (6) pre-authorized, automatic, telephonic or computer transfers and checks. Of these (6) transfers, no more than three (3) may be checks or debits to third parties. These transfers do not include in-person withdrawals or withdrawals at ATMs. If you exceed these limits, we reserve the right to convert your MMDA to a NOW account. Checks - If you use checks to withdraw money from your account, the check must be on a preprinted form that we have supplied or on a form to which we have given prior approval. We reserve the right to not accept checks that do not meet our processing standards. If any check you have written is not delivered to the payee, or is lost or stolen, please notify us immediately. OVERDRAFTS - We will not be required to permit any withdrawal from your account if there is not enough money in the account to cover the withdrawal. If we do permit such a withdrawal, you agree to pay the overdrawn amount as soon as we give you notice of the overdraft. There will be a fee as outlined in the Schedule of Fees for each check or pre-authorized debit that overdraws your Basic, Personal, NOW or Checking account; MMDA; Business and Cash Management Master or Cash Management Zero Balance account, whether or not we honor it. There will also be a fee if we permit a withdrawal from an Automated Teller Machine (ATM) and the withdrawal overdraws your account. OVERDRAFT PROTECTION - You may apply for an Overdraft Protection of Credit that can act as overdraft protection for your Basic, Personal, NOW, Business and Cash Management Master Checking accounts, if you have an Overdraft Protection Line of Credit, we will automatically lend you, up to prescribed limits, the amount needed to cover checks or withdrawals that would overdraw your account. Information about applicable interest rates, terms and conditions and applications for an Overdraft Protection Line of Credit are available at any of our branch offices. DEFAULTS - Your account will be in default if we find that: 1) any of your loan(s) with us is past due or otherwise in default; 2) you have repeatedly overdrawn any account; 3) you do not repay immediately any overdraft; 4) you do not fully comply with any term or condition of the agreement or of any other deposit or credit agreement you may have with us; 5) you give false or misleading information about any of your deposit or credit relationships with us; 6) we, in our sole discretion, are not satisfied with your condition or affairs, financial or otherwise; or 7) we, in our sole discretion, believe that your financial condition has suffered an adverse change. We reserve the right to close any account that we find to be in default. ACCOUNT TRANSFER AND ASSIGNMENT - Your account may not be assigned or transferred without our written consent. To assign an account you must follow our procedures. Additional details are available at any of our branch offices. No assignment will be effective until it is recorded in our records. STATEMENTS - We send statements for Basic, Personal, NOW, Business and Cash Management Checking accounts; Money Market Deposit accounts; Statement Savings and Multi-Savings accounts; and Christmas and Savings Club accounts. If there is an error in your statement, please notify us immediately. If you do not notify us of an unauthorized signature or alteration within a reasonable time (not to exceed 30 days) after we send or make available to you your statement and items: 1) you cannot assert the unauthorized signature or alteration against us (if we prove the loss was by reason of your failure to notify us as described above), and 2) you cannot assert any unauthorized signature or alteration by the same wrongdoer on items paid by us after the reasonable time mentioned above elapses, but before we receive your notice. CNB loses these protections if we fail to exercise ordinary care in paying an item with an unauthorized signature or alteration, unless you do not notify us of the problem within 60 days of when we send or make available to you your statement and items. You must report any other account problem (e.g. erroneous statement, missing signatures, unauthorized endorsement, etc.) within this 60 day period or lose your right to assert the problem against us. We will send your statement to the address we have for you in our records, unless you have requested another arrangement in writing. If any statement is returned to us because of an incorrect address, we may stop sending statements to you. DIRECT DEPOSIT - If, in connection with a direct deposit plan, we deposit any amount to your account which should have been returned to the Federal Government for any reason, you authorize us to deduct the amount of our liability to the Federal Government from this account or from any other account you have with us without notice at any time, except as prohibited by law. We may also use any other legal remedy to recover the amount of our liability. STOP PAYMENTS - We will honor a stop payment request by the person who signed the particular item and by any other person having the right to withdraw from this account equal to or greater than the person signing the particular item. To be effective, a stop payment order must be received in time to give us reasonable opportunity to act on it, and must precisely identify the check number, date, amount of the item, and name of the payee. A stop payment is valid for six (6) months and may be renewed. If you call, we will require you to put your request in writing within 14 days. If written authorization is not received within 14 days, the stop payment will be removed. As set forth in the Schedule of Fees, a fee will be imposed for each stop payment order you give. LEGAL PROCEEDINGS - If your account becomes involved in legal proceedings, your use of it may be restricted. We will, to the extent required by law, notify you in writing whenever such a restriction (such as an attachment) is placed on your account. We will impose a fee for responding to legal orders. MINIMUM BALANCE - If a "minimum balance" is specified for an account, the term applies in two situations: 1) the minimum daily balance required to avoid the imposition of service charges, and 2) the minimum daily balance required to earn interest in an interest bearing account. LOST OR STOLEN CERTIFICATES - If your Certificate of Deposit is lost, stolen or destroyed we will ask you to complete a written request, in the form that we require, to pay the money in your account to you or issue you a new certificate. We will not pay you the money or transfer the money into a new Certificate of Deposit until we receive your properly completed request and you present satisfactory identification to us. A 24 hour waiting period may be imposed prior to the reissuance of the certificate of deposit. There will be a fee for lost, stolen or destroyed certificates as outlined in the Schedule of Fees. RIGHT OF SET-OFF - We may, without notice and when permitted by law, set-off the funds in your account (s) against any due or payable debt owed to us now or in the future, by any of you having the right to withdraw, to the extent of such persons' or legal entity's right to withdraw, even if withdrawing the money results in an interest penalty to you. If your joint account holder owes us money, we also reserve the right to use funds from your joint account to pay the debt. POSTDATED CHECKS - You agree not to write postdated checks (a check that is dated in the future) on your account. We will assume that ail checks presented are payable on demand. We will charge against your account a check that is otherwise properly payable from the account even though payment was made before the date of the check unless you give us written notice of the postdating, describing the check with reasonable certainty. Notice is effective for 14 days from the date of receipt. As set forth in the Schedule of Fees, a fee will be imposed for each postdated check order you give. We may pay post-dated checks drawn on your checking or NOW account with overdraft protection. We will not be responsible if we are unable to pay other checks drawn on that checking account or NOW account because we paid a post-dated check. NOTICES - If your account is a joint account, we can notify one of you and the notice will be effective for all account holders. Any notice we send to you will be considered effective when it is personally delivered to you or mailed, postage prepaid, to the last address we have on record for you. Similarly, one of you can notify us and we will consider it to be notice for all of you. Notices from you will be considered effective when we receive it personally delivered or mailed to: The Community National Bank
CREDIT REFERENCES AND REPORTING INFORMATION - You agree that we may obtain any credit reference necessary. e have the right to report information about your account to any consumer reporting agency or to anyone you give our name to as a reference. AMENDMENTS AND TERMINATION - We may amend these rules at any time upon reasonable notice to you by posting notices of the changes in our buildings and branches, by enclosing notices in statements or by mailing notices to you. For all consumer accounts, if a change restricts, limits or reduces your rights, we will give you at least 30 days notice. Such notice will be deemed to have been sufficiently given when sent by U. S. mail, postage prepaid, to you at the last address we have for you in our records. You agree to provide us a current address to which all correspondence will be addressed. For all non-consumer accounts, we will provide notice within a reasonable time frame. These rules and regulations will be governed by the laws of the State of Ohio. If there is any conflict between these rules and regulations and applicable Federal and State taw, the rules and regulations will be considered changed to the extent necessary to comply with the law. This agreement will terminate whenever your account is closed. CLOSING OF ACCOUNTS By Customer - There is no requirement that you keep your deposit account, other than a Certificate of Deposit or IRA Certificate of Deposit open until a specific date. If you close your checking account, we may terminate any other related account. Any balance in any remaining related account may be transferred to another of your accounts or sent to you at our option. If you close your account during a statement period on any day other than your cycle date, you will lose all the interest you could have earned during the period. If you close your checking or savings account, any ATM card that may be used on the account, and any Overdraft Protection Line of Credit attached to such checking account, will be automatically terminated. Any amount you owe us for the Overdraft Protection Line of Credit may become immediately due and payable in full without notice. You will pay a penalty if you make a withdrawal from a Certificate of Deposit or IRA Certificate of Deposit before its maturity as explained in Section II, Early Withdrawal Penalty. By Bank - We reserve the right to close any deposit account, other than an IRA Certificate of Deposit, or IRA Money Market Deposit, at any time for any reason, including an excessive number of deposits or withdrawals. If we close an account, any balance in the account that you have not withdrawn will be transferred to another account of yours or sent to you, at our option. We will usually try to give you notice when we intend to close an account, but no such notice will be required. If we close your checking account, or if we reduce your Overdraft Protection Line of Credit to zero, you will immediately be barred from further use of your Overdraft Protection Line of Credit. Any amount you owe us will be payable at the same time and in the same amounts as if we had not taken such action. However, in some circumstances, any amount you owe us for the Overdraft Protection Line of Credit may become immediately due and payable in full. ABANDONED PROPERTY - If there has been no activity in your account for the period prescribed by the Ohio Escheat Law, and if you do not contact us about your account during that time, we are required by law to send the account balance to the Department of Commerce of the State of Ohio. You may avoid the abandonment process by making contact with us, or by making a deposit or withdrawal, on at least an annual basis.
II. INFORMATION FOR CERTIFICATES OF DEPOSIT, IRA CERTIFICATES OF DEPOSIT AND IRA MONEY MARKET DEPOSIT ACCOUNT ADDITIONAL DEPOSITS - Once a Certificate of Deposit or IRA Certificate of Deposit is opened, no additional deposits may be made until the maturity date. Additional deposits may be made, up to the maximum contribution, to IRA Money Market Deposit accounts. NOTIFICATION OF APPROACHING MATURITY - For Certificates of Deposit and IRA Certificates of Deposit with a term of 32 days or more, we will send you a notice at least two (2) weeks before the maturity date. For Certificates of Deposit and IRA Certificates of Deposit with terms of 31 days or less, we will send you a notice at least five (5) days before the maturity date. You may instruct us in person or in writing what to do with your deposit. RENEWAL POLICY - If your certificate matures and we have received no instruction from you, unless we notify you otherwise in advance, your account will automatically renew on the maturity date for the same term (number of days) at the current interest rate payable on new time deposits with the same term. You may prevent the automatic renewal by notifying us before the maturity date or before the end of the grace period. During the grace period (ten (10) calendar days from the renewal date), you may redeem the certificate in full with no penalty. Also, you may change the term of the certificate (this may affect your interest rate), withdraw a portion of the balance, or add to the balance. If you choose to have your certificate not renew automatically at maturity and we do not hear from you, interest will not be paid beyond the maturity date. EARLY WITHDRAWAL PENALTY - if the certificate is withdrawn before the maturity date the following terms, conditions and penalties will apply: We do not have to permit early withdrawals on this account. The depositor, by making a deposit and accepting the Certificate, agrees that the deposit evidenced by this Certificate will be kept on deposit until the maturity date stated on the face of the Certificate. Additionally, the depositor acknowledges that in the event that the bank permits withdrawal prior to the stated maturity date, a penalty will be calculated and imposed. On each early withdrawal we do permit, we will charge a penalty calculated as follows: All interest that could have been earned on the amount withdrawn (funds that are subject to penalty) equal to one-half the remaining term (time remaining until maturity) of the Certificate of Deposit. The minimum early withdrawal penalty is seven (7) days simple interest calculated on any amount withdrawn within the first six days after the account is opened. If the account is a variable rate account, we will calculate the penalty using the interest rate being applied at the time of withdrawal. If there is enough accrued interest to cover the penalty, we will deduct the penalty from the accrued interest. If there is not enough accrued interest, we will deduct the remainder of the penalty from the principal of the account. In certain circumstances such as the death or incompetence of an owner of this account, the law permits, or in some cases requires, the waiver of the early withdrawal penalty. Other exceptions may also apply, for example, if this account is part of an Individual Retirement Account. Any penalty imposed for early withdrawal will be in addition to any penalty imposed under the Individual Retirement Disclosure Statement. Any of the above penalties may result in a reduction to the principal sum of the account affected. No partial withdrawal are allowed. Full withdrawals are subject to the above penalties. PROMOTIONAL RATES - Promotional rates on CDs may not be combined with any other offer such as bonus rates.
III TAX INFORMATION / INSTRUCTION GENERAL INFORMATION - We must now withhold 31% of the taxable interest paid on your account if:
TAXPAYER IDENTIFICATION NUMBER – There are two types of taxpayer identification numbers:
Generally speaking, interest or dividends earned on an account should be reported to the IRS under the name and taxpayer identification numbers of the person or entity who owns the principal in the account. This person should report this interest on his/her/their income tax return. Section 6109 of the Internal Revenue Code requires you to provide your taxpayer identification number to us whether or not you file a tax return. These numbers are used to identify the interest and dividends paid to you. BACKUP WITHHOLDING - To prevent backup withholding on the interest and dividend payments you receive, you must certify that the taxpayer identification number you provide is correct and that you are not subject to backup withholding because of a failure to report interest and dividend payments. In order to make these certifications, check the "TAXPAYER I.D. NUMBER" and "BACKUP WITHHOLDING" statements on the signature card and account agreement and sign where indicated. (If you are subject to backup withholding, you should still provide and certify your taxpayer identification number.) EXEMPT RECIPIENTS - Certain types of accounts are exempt from backup withholding and certain payments of interest are not subject to backup withholding. Review the descriptions following and check the 'EXEMPT RECIPIENT" statement on the signature card and account agreement, if applicable, and sign where indicated. You should also supply and certify your taxpayer identification number. If you do not have a taxpayer identification number or you do not know your number, contact the local office of the Social Security Administration or the Internal Revenue Service. NOTICE TO NON-RESIDENT ALIENS - In order to prevent the reporting of your interest payments, you should provide your name, address, taxpayer identification number (if any) and certify under penalties of perjury your non-resident alien status. To do this, check the "NON-RESIDENT ALLEN" statement on the signature card and account agreement and sign where indicated. Failure to provide this certification may result in backup withholding. This certification must be renewed every three (3) years. Canadian residents may be subject to additional reporting requirements. PENALTIES – In addition to 31% withholding, you may be subject to the following penalties:
EXEMPTIONS FROM BACKUP WITHHOLDING - Payees specifically exempted from backup withholding on ALL payments include the following: (Section numbers refer to the Internal Revenue Service Code):
Payment of interest not generally subject to backup withholding include the following:
Exempt payees described above should complete the appropriate section on the signature card and account agreement. Because certain payments exempt from backup withholding are subject to information reporting, you should certify your taxpayer identification number, if any, and then certify that you are exempt or a nonresident alien. Payments that are not subject to information reporting are also now subject to backup withholding. For details, see Internal Revenue Code sections 6041 through 6050, and the regulations under such sections. For details on backup withholding, see section 3406. |