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Deposit Account Agreement

1. AGREEMENT.  The purpose of this agreement is to summarize the rules applicable to common transactions, establish rules to govern transactions and circumstances that the law does not regulate, and establish rules for certain events or transactions that the law already regulates but permits variation by agreement.
     Unless it would be inconsistent to do so, words and phrases used in this agreement should be construed so that the singular includes the plural and the plural includes the singular. As used in this agreement, the words “Bank”, “we”, “our,” and “us” refer to Foresight Bank; the word "Account" means every demand deposit, savings, money market, and health savings account you have with us; and the words “you” and “your” refer to the Account owner(s).

     This agreement is subject to federal and state law (including the Uniform Commercial Code as adopted by the State of Minnesota); the rules, regulations, and orders of the Federal Reserve Board; and the rules, regulations and orders of any Federal Reserve Bank or clearinghouse of which we are or may become a member.  We may permit some variations from the standard agreement, but any such variations must be agreed to us in writing.  

2. MODIFICATIONS.   We may change the terms of this agreement by giving you notice of the change either by posting notice in a conspicuous manner for 30 days, mailing the notice to you at your address in our records, or including notice of the change to you with any periodic statement. Notice from us to any one of you is notice to all of you. This agreement may also be amended by a writing signed by us and at least one Account owner. If any agency that governs or otherwise regulates us requires us to change any term in this agreement or an interest rate on your Account without giving any notice, we may do so without any liability to you. Unless otherwise agreed in writing, we may change the interest rate(s) paid on your Account without any advance notice.
 
3. TERMINATION.  We may close your Account at any time upon reasonable notice to you. You agree that that no advanced notice of termination is required when the Bank has a reasonable suspicion that fraudulent or unlawful conduct has occurred with regard to the Account. Notice from us to any one of you is notice to all of you. Termination will not release your contractual obligations, including liability for outstanding items, fees, and costs.
 
4. ACCOUNT TRANSFER.  This Account may not be transferred or assigned without our prior written consent.
 
5. LIABILITY.  Each of you agrees, for yourself (and the person or entity you represent if you sign as a representative of another) to the terms of this agreement and the schedule of charges that may be imposed. You authorize us to deduct these charges directly from the Account balance as accrued. You also agree to pay such additional reasonable charges we may impose for services you request that are not contemplated by this agreement. Each of you also agrees to be jointly and severally liable for any Account deficit resulting from charges or overdrafts, whether caused by you or another authorized to withdraw from this Account, together with the costs we incur to collect the deficit including, to the extent permitted by law, our reasonable attorneys' fees.
 
6. EXPENSES.  You will be responsible for all fees and expenses (including our internal expenses we incur in responding to legal actions against your Account, such as garnishments, executions, tax levies, and forfeitures). You agree to pay any costs, including but not limited to attorney’s fees, incurred by us to enforce the terms of this agreement whether or not a lawsuit is commenced. We may charge these expenses and fees against your Account.
 
7. JURISDICTION.  You irrevocably submit to the jurisdiction of any Minnesota Federal Court and the Minnesota Courts in Olmsted and Wabasha Counties over any action or proceeding arising out of this agreement. To the extent that you are not located in Minnesota, you agree that by consenting to this agreement you have sufficient contacts with the State of Minnesota such that the jurisdiction of the courts stated herein are appropriate and you irrevocably waive the defense of inconvenient forum or lack of jurisdiction.
 
8. WAIVER OF JURY TRIAL.  You and the Bank irrevocably waive all right to trial by jury in any action, proceeding, or counterclaim arising out of or relating to this agreement, or any instrument or document delivered hereunder. The foregoing waiver of right to trial by jury includes a waiver of the right to trial by jury with respect to determinations of awards or claims related to attorney's fees or the reasonableness thereof.
 
9. SECURITY AGREEMENT.  You give us a security interest and lien on all funds in your Account to secure your performance of this agreement.
 
10. OVERDRAFTS.  You agree to repay us promptly if you overdraw your Account.
 
11. SETOFF.  You understand that we have the right of "setoff." This means that we may charge against any amount then on deposit in your Account (and any certificate of deposit accounts), any debts or liabilities you owe to us, whether due by reason of stated maturity, acceleration, or otherwise. Such debts or liabilities include debts either secured or unsecured that you owe individually or together with someone else.
     If there is more than one owner on the Account, we may apply our right of setoff to fully or partially satisfy the debts and liabilities of any of the Account owners. Each joint owner authorizes us to exercise the right of setoff and enforce our security interest in the entire joint Account, even though only one of the joint owners is the debtor; these rights exist irrespective of who contributed funds to the joint Account. Similarly, we can enforce overdraft liability in the joint Account against any joint owner individually. Garnishments against any joint owner are subject to the Bank's right of setoff and security interest.

     We may exercise our right of setoff at any time and for any reason allowed by law. For example, we may exercise our right of setoff if you die, file for bankruptcy, or we believe in good faith that you are not able or willing to fulfill your obligations to us. We may consider this agreement as your consent to exercise our right of setoff should any present or future law require your consent.

12. STATEMENTS.  You must inform us of an unauthorized signature or alteration on an item within 30 days after we send or make your statement and items available to you. If you do not, you lose any claim you may have against us due to the unauthorized signature or alteration. You also lose any claim against us on any later item paid after the 30-day period runs but before we receive notice if the item was signed or altered by the same wrongdoer. You must inform us of any other sort of account problem within 60 days of when we make the statement and items available to you or you will lose any claim against us related to the problem.
 
13. DEPOSITS.  Any items, other than cash, accepted for deposit (including items drawn “on us”) will be given provisional credit only until collection of the item 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 United States Dollars). Subject to any other limitations, interest will be paid only on collected funds. We are not responsible for transactions initiated by mail or outside the Bank until we actually record them. All transactions received after our daily "cut-off time" on a business day we are open, or received on a day in which we are not open for business, will be treated and recorded as if initiated on the next following business day that we are open.
 
14. WITHDRAWALS.  Any one of you, including authorized signers, may withdraw or transfer all or any part of the Account balance at any time using methods approved by us.
     We reserve the right to refuse any withdrawal or transfer request that is attempted by any method not specifically permitted, which is greater in number than the frequency permitted, or which is for an amount less than any minimum withdrawal denomination. Even if we honor a non-conforming request, we are not obligated to do so again and repeated abuse of the stated limitations (if any) may eventually force us to close your Account. We will use the date a transaction is completed by us (as opposed to the date you initiate it) to apply the frequency limitations. Withdrawals will first be made from collected funds, and we may refuse any withdrawal request against uncollected funds even if our general practice is to the contrary. The fact that we may honor withdrawal requests that overdraw the finally collected Account balance does not obligate us to do so again.
     If you have a savings or money market account, we have the right to require that you give us written notice of any intended transfer or withdrawal from the Account not fewer than 7 days before you make the transfer or withdrawal. The number of certain types of withdrawals and transfers that can be made from a savings or money market deposit account also may be limited.
     When we receive notice of the death or incompetence of any one of the Account owners, we may restrict or prohibit further withdrawals until we are satisfied that our obligations under the law and this agreement have been satisfied.
 
15. PREAUTHORIZED CHECKS.  If you voluntarily give information about your Account (such as our routing number and your Account number) to another party, and you do not physically deliver a check to the party, any payment from your Account initiated by the party to whom you gave the information is deemed authorized.
 
16. COLLECTION OF CHECKS, FUNDS AVAILABILITY.  You cannot withdraw funds that you deposit, and we will not use those funds to cover checks that you write, until the funds are available. We have given you a separate disclosure to keep, telling you when the funds you deposit will be available. The fact that we may make funds available earlier than disclosed does not obligate us to do so again.
     You understand that we have the right to charge items such as checks against your Account at any time after we learn they have not been paid. We may do this even if you have made withdrawals against those deposited items. In cashing, receiving, or otherwise dealing with items deposited in your Account, we are acting as your agent. We have no responsibility to you beyond our duty to use reasonable care in acting as your agent.
 
17. PAYMENT OF CHECKS.  In paying a check, we may disregard special instructions or extraneous legends on the check, such as “void in excess of $500” or “void if not paid within 60 days,” unless you have notified us of such special instructions or legends and we have agreed in writing to honor such special instructions or legends. We may also disregard the requirement for more than one signature if at least one authorized signature appears on the check, unless we have otherwise agreed in writing.
     We may pay a check on a date before the date written on the check. We also may pay a check that is more than 6 months old. We will have no liability for paying such checks before the date written or after 6 months, even if the payment of them causes other checks not to be paid.
 
18. STOP PAYMENTS.  You may stop payment on any check, provided that we receive the stop payment order in a manner and at a time that gives us a reasonable opportunity to act. To stop payment, you must provide us with your name, Account number, payee’s name, the check number, and the exact amount of the check. If you tell us to stop payment on the telephone, we will keep the order in effect for 14 days. For the order to last longer than 14 days, you must deliver to us within the 14 days a written order on the form required by us. That written order will be in effect for 6 months.
 
19. WIRE TRANSFERS. 

Unless you and the Bank have a written wire transfer agreement in place that applies to your Account, this section 19 governs wire transfers from your Account. 

A. Authority. Subject to the terms and conditions of this agreement, you authorize us to process funds transfers to and from your Account as a method to effectuate domestic and international wire transfers. You authorize each Account owner and each authorized signer to initiate payment orders, payment order cancellations, and payment order amendments (each, a "Request") using one or more of the following communication methods: oral (including in-person and telephonic methods) and writing (including paper, mail, fax, and electronic communication such as e-mail). You authorize each owner of the Account and each authorized signer to confirm Requests.

B. Definitions. Unless otherwise specifically defined, the terms in section 19(B) of this agreement shall have the same meanings as defined in Article 4A of the Uniform Commercial Code as adopted by the State of Minnesota.

C. Limitations. We will not accept a Request that seeks to transfer more than $2,999,999.99. To the extent allowed by applicable law, we reserve the right to reject a Request for any reason or for no reason.

D. Security Procedures.  You agree that the following security procedures are a commercially reasonable method of preventing a Request that is unauthorized or inaccurate. You agree that you will review the security procedures on a periodic basis to confirm that the security procedures remain commercially reasonable. You agree that you are responsible for assuring confidentiality of the security procedures set forth in this agreement, and agree to implement a comprehensive program to ensure the safeguards of the security procedures and information.

  • We will confirm the identity of a person making a Request in person at one of our locations by examining a government-issued form of identification or by personal knowledge of the person’s identity, and we will have that individual sign a document that confirms the details of the Request.
  • If a Request is made by a person who is not physically present at one of our locations, we will confirm the identity of that person by asking the person to provide two items of non-public information (such as the person’s Social Security number or date of birth, or non-public Account information), and we will confirm the details of Request. After receiving a Request that involves a funds transfer exceeding $10,000.00 that is not made in person at our main office or a branch, we will telephone an owner or authorized signer on the Account, confirm the identity of that person by asking the person to provide two items of non-public information (such as the person’s Social Security number, date of birth, or non-public Account information), and confirm the details of the Request.
  • We will implement commercially reasonable alternative security procedures when you request them and we agree in writing to implement them through a separate agreement. If you believe or have reason to believe that the confidentiality of the non-public information of any account owner or authorized signer has been compromised, notice of that fact shall be given to us immediately, but in no event more than one business day from the date of discovery.

E. Accuracy of Transfer Instructions.  You agree that we (and any other financial institution used to carry out the Request) rely on the funds transfer instructions you provide and we are not responsible for their accuracy, nor do we undertake any responsibility to verify their accuracy. You agree that the beneficiary's financial institution may apply the payment on the basis of identifying information or account number even if it identifies a person other than the named beneficiary. In that case, you will be solely responsible for recovering the payment and we will have no liability.

F. Amendment.  After we receive your Request, you have no right to cancel or amend the Request. We may attempt to act on the cancellation or amendment, but we will have no liability if such cancellation or amendment is not effected.

G. Processing Cut-Off Times.  We accept Requests and incoming wire transfers to your Account up to 4:00 PM (Rochester, MN time) on funds-transfer business days, which are Monday through Friday except holidays observed by the Federal Reserve System, Christmas Eve, and New Year’s Eve. We may treat a Request received after a processing deadline as received at the opening of the next funds-transfer business day.

H. Confirmation.  After each payment order is processed, we will provide you with confirmation of the transfer to the address contained in our records. You agree to examine and immediately notify us within 14 days after the mailing date of the confirmation or statement, whichever is sooner, of any discrepancy or error.

I. Currency Conversion.  Unless specified to the contrary, a Request by you shall be sent in United States Dollars. You agree that if you request a transfer of funds in a currency other than United States Dollars, we will convert the currency at our current exchange rate for the specified foreign currency. If any funds are transferred to you in a currency other than United States Dollars, we will convert the foreign currency into United States Dollars at our current exchange rate for such currency at the time of the transfer. If we do not have current exchange rates for the particular foreign currency involved, we will use our best efforts to convert the currency promptly through reasonable commercial or banking channels, and you will pay us a reasonable fee for such services. In no event will we be liable to you for any losses arising from currency conversions effected by us in good faith within a reasonable time after receiving funds for conversion.

J. Limitation on Liability.  You agree that we shall have no liability for delays or mistakes, provided we act in good faith and with reasonable care. Except as specifically set forth in this agreement, we disclaim all warranties of any kind, express or implied, including without limitation the warranty of merchantability, fitness for a particular purpose or non-infringement of intellectual property or third-party rights. Except as specifically set forth in this agreement, we will not be liable for any direct, indirect, incidental, special, consequential or punitive damages of any kind resulting from the services provided under this agreement. These limitations shall apply whether or not the likelihood of such losses or damages was known by either party.

K. Fees.  You agree to pay our applicable fees and costs to process your Request. The fees and costs may change at any time without notice.

L. No Unlawful or Prohibited Use.  As a condition making a Request, you agree that the Request will not be made for any purpose that is unlawful or is not permitted, expressly or implicitly, by the terms of this agreement or by any applicable laws or regulations

20. AUTOMATED CLEARING HOUSE (ACH).  You agree to be bound by Automated Clearing House Association rules. These rules provide, among other things, that payments made to you, or originated by you, are provisional until final settlement is made through a Federal Reserve Bank or payment is otherwise made as provided in Article 4A-403(a) of the Uniform Commercial Code. If we do not receive such payment, we are entitled to a refund from you in the amount credited to your account and the party originating such payment will not be considered to have paid the amount so credited. If we receive a credit to an account you have with us, we are not required to give you any notice of the payment order or credit.
 
21. DIRECT DEPOSITS. If, in connection with a direct deposit plan, we deposit any amount in your Account that should have been returned to the Federal Government or any state government for any reason, you authorize us to deduct the amount of our liability to the Federal Government or state government from your Account or from any other Account you have with us, without prior notice and at any time, except as prohibited by law. We may also use any other legal remedy to recover the amount of our liability.
 
22. TELEPHONE TRANSFERS.  A transfer of funds from this account to another account with us, by telephone, if otherwise permitted or arranged for, may be made by the same persons and under the same conditions generally applicable to withdrawals made in writing. The number of transfers from savings accounts and money market accounts to other accounts and third parties is limited by regulation. Other account transfer restrictions are shown elsewhere in this agreement.
 
23. DORMANT ACCOUNTS. If your Account does not have any withdrawal or deposit activity (other than posting interest or any fees) for a period of 36 months and it has a balance less than $100.00, a dormant account fee of $3.00 per statement cycle will be charged to your account.

24. JOINT ACCOUNT.  An Account owned by two or more persons (whether owned as joint tenants with right of survivorship or as tenants in common) is treated as a "Joint Account." With a Joint Account, all deposits are the property of the persons named as owners on the Joint Account, and we may release all or any part of the amount in the Joint Account to honor checks, withdrawals, orders or requests from any person named as an owner or as an authorized signer on the Joint Account.
     Unless specifically stated otherwise on our signature card for a Joint Account, each joint owner intends and agrees that the Joint Account balance upon his or her death shall be the property of the surviving joint owner, and if more than one joint owner survives, they shall remain as joint owners with the right of survivorship between them. This type of account ownership is known as joint tenants with right of survivorship, and not as tenants in common.
     You will own a Joint Account as tenants in common if the Joint Account is issued to two or more persons and our signature card for the Joint Account specifically states that it is owned as tenants in common. If the Joint Account is owned as tenants in common, each joint owner will be deemed to own an equal share of the Joint Account unless you tell us in a writing signed by each of you the percentage of the deposit contributed by each of you. This information will not affect the number of signatures necessary for withdrawal.
     Each owner on a Joint Account may pledge the deposits as collateral, with or without the consent of the remaining joint owner(s) on the Account. We may use all or any portion of the funds to satisfy a debt or judgment of any joint owner on the Joint Account if ordered to do so by a court or similar authority. All owners on the Joint Account are jointly and severally liable to us for any account deficit, including overdrafts, without regard to who caused or benefited from the overdraft, together with costs and reasonable attorney’s fees the Bank incurs to collect the deficit.
     You agree that we can follow the directions given, and take action requested by, any owner, even if the directions or actions to be taken are inconsistent with directions or instructions to act given by another owner. We are also not liable for continuing to honor checks or other orders drawn on the Joint Account by any owner or withdrawals made by any owner even after receiving notice from another owner not to do so. If we do receive notice, we may, but are not obligated to, refuse to honor any checks, orders or withdrawals from the Account unless all owners agree in writing.
     Each owner on a Joint Account may withdraw, by any means the Bank makes available, any or all of the funds on deposit, close the Joint Account, enter into special agreements regarding the Joint Account, stop payment on any check drawn on the Joint Account, order checks for the Account, and order debit cards for any owner or authorized signer of the Account. Each joint owner guarantees the signatures of the other joint owners and authorizes the other joint owners to endorse checks for deposit if they are payable to any of the joint owners, subject to the Bank’s further approval.
 
25. TRUST AND PAYABLE-ON-DEATH ACCOUNTS.  payable-on-death (“POD”) beneficiary acquires the right to withdraw on an Account with only one owner if that owner dies and the POD beneficiary is still living. In the case of a Joint Account owned as joint tenants with right of survivorship, a POD beneficiary acquires the right to withdraw only if all Account owners die and the POD beneficiary is still living. In the case of a Joint Account owned as tenants in common, a POD beneficiary acquires the right to withdraw (a) only if the Account owner who designated the POD beneficiary dies, (b) only if the POD beneficiary is still living, and (c) only to the extent of the applicable deceased Account owner's percentage ownership of the Account.
     If two or more POD beneficiaries are named and are living at the time of the applicable Account owner’s death, such beneficiaries will own the Account (without right of survivorship) according to any percentages indicated in the written records of the Bank; otherwise, the surviving beneficiaries will own equal shares (without right of survivorship).
     The person(s) creating a trust or payable-on-death Account reserve(s) the right to change beneficiaries, change account types, and withdraw all or part of the Account balance at any time.
 
26. ORGANIZATION ACCOUNTS.  We will usually require a separate authorization form designating the person(s) permitted to withdraw from any Account owned by a legal entity (such as a corporation) or other organization. We will honor such an authorization according to its terms until it is amended or terminated in a duly authorized form accepted by us.
 
27. FACSIMILE SIGNATURE.  We may pay any checks bearing or purporting to bear a facsimile signature of any owner or authorized signer, regardless of by whom or by what means the actual or purported facsimile signature thereon may have been affixed on the check, if such facsimile signature resembles the facsimile signature filed with us from time to time by you.
 
28. AUTHORIZED SIGNERS.  An authorized signer is someone to whom you give all rights you have now or in the future to make withdrawals, make deposits, order checks for the Account, and order debit cards for any owner or authorized signer of the Account. Merely by designating an authorized signer you do not intend to give any ownership rights in the Account to the authorized signer.
 
29. FEES AND SERVICE CHARGES.  We may charge reasonable fees for services, including but not limited to a reasonable fee for maintaining the Account (whether it is active or not). All these fees may be charged to your Account. You will not hold us accountable for refusing to honor checks because of insufficient funds as a result of these charges.
 
30. SEVERABILITY.  If a court holds any term in this agreement to be invalid, illegal, or unenforceable, the other agreement terms shall not be impaired or affected.
 
31. AUTOMATED PROCESSING OF ITEMS.  You recognize that the Bank has adopted automated collection and payment procedures so that it can process the greatest volume of items at the lowest possible cost to all customers. These automated procedures rely primarily on information encoded onto each item in magnetic ink. In recognition of this fact, you agree that in paying or taking an item for collection, the Bank may disregard all information on the item other than the drawer’s signature, the identity of the drawee bank, the amount of the item, and any other information encoded onto the item in magnetic ink according to general banking standards, whether or not that information is consistent with other information on the item. You agree to reimburse the Bank for any loss or expense it incurs because you issue or deposit an item containing such extra information. Furthermore, you agree that the Bank does not fail to exercise ordinary care in paying an item solely because its procedures do not provide for the sight examination of items with a face amount below an amount specified by the Bank from time to time.
 
32. REQUESTS FOR INFORMATION.  You agree to provide us with all information necessary to comply with all banking and other applicable laws or regulations.
 
 
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