Note: This Deposit Account Agreement is being provided to you so you are aware of the terms that govern your account with Impact Bank.
Thank you for opening an account with Impact Bank. This Agreement explains the terms and conditions of the checking, savings and money market and time deposit accounts we offer. At account opening, you also received a copy of our Truth In Savings Disclosure, including rate and fee information, a Funds Availability Policy Disclosure, and an Electronic Funds Transfer Disclosure, if applicable, all of which are part of this Agreement. Some deposit accounts and services such as IRAs, Internet Banking, Internet Bill Payment, and automated telephone transfers are also subject to separate agreements and disclosures. In this Deposit Agreement, each and all of the depositors are referred to as "you" and "your." Impact Bank is referred to as “Bank”, “we”, “our” and “us”. By maintaining an account with us, you consent to the terms of this Agreement.
Effect of State and Federal Laws and Regulations. If a law or regulation conflicts with any provision of this Agreement, the applicable law or regulation will control. Where a law or regulation may be varied by agreement, the terms of this Agreement will control. If there is a conflict between this Agreement and something said by one of our employees, we will follow this Agreement. You agree to this method of settling any differences.
Ownership and Authorized Signatures. For all purposes relating to your account, the Bank will act on the direction or signature of the person(s) on the Signature Card or other evidence of account. We will require such person's signature on the Card before honoring his or her transaction requests. You authorize us to rely on the Signature Card or other evidence of account, without further inquiry.
In some cases, you may be permitted to require more than one authorized signature for transactions against your account by designating a specific number of required signatures on the Signature Card or in other acceptable written form. In the absence of such designation, we may honor any order or instruction against your account which bears at least one authorized signature. We may honor withdrawal instructions on an account from any authorized signer even if payable to them, for their benefit, to cash or for deposit to their personal account. We will not be responsible for investigating or questioning withdrawals by persons authorized to act on your account. We will not be liable to you for refusing to honor signed instructions if we believe in good faith that the signature is not genuine.
Privacy. The Bank will obey an order or subpoena for information about your account issued by a Court or an authorized governmental body which appears valid on its face and names one or more owner(s) of an account. We will also release information when necessary to complete a transaction, when an inquiry is made concerning sufficiency of funds to cover a check you have written and as stated in our Electronic Funds Transfer Disclosure. You authorize us to release this information without prior notice to you.
Garnishments, Levies and Other Legal Proceedings. If your account becomes involved in a legal proceeding, your use of it may be restricted. The Bank may notify you of the legal proceeding by telephone or at the account address in our records. We will not resist or challenge any legal process directed against your account. If we are served with an order of garnishment or tax levy naming some, but not all, of the joint owners, we are required to hold all funds in the joint account, up to the dollar limit of the garnishment or levy. Unless you notify us in writing that you wish to continue separate accounts, the joint account will be reestablished with the same joint owners as of the date we answer the garnishment or levy. We are not required to assert any exemptions you may have under state law. We will rely solely on our account records in responding to a garnishment, levy or other Court proceeding. If you believe that the garnishment, levy or other order is improper, you must take action through the Court to resolve the issue. If we receive notice of legal action against your account, we may exercise our right of offset or assert our security interest to collect money you owe us. We may charge your account a fee for responding to a garnishment or levy. We will suspend payment of a check drawn on your account upon receipt of a garnishment, levy or other legal proceeding, unless we have certified or otherwise guaranteed the check; we have paid the check in cash; we have settled for the check without the right to revoke settlement; our Legal Process Cutoff Hour has passed; or we have otherwise become legally accountable for the check. Our Legal Process Cutoff Hour is 9:00 a.m. of the next banking day after the banking day on which we receive the check. We may change our Legal Process Cutoff Hour from time to time by posting notice of the change in our offices.
You agree to be liable to us, to the extent permitted by law, for any loss, costs, or expenses that we may incur as a result of any dispute or legal proceeding involving your Account. You authorize us to deduct any such loss, costs, or expenses from your Account without prior notice to you or to bill you separately. This obligation includes disputes between you and us involving your Account and situations where we become involved in disputes between you and an authorized signer, a joint owner, or a third party claiming an interest in your Account. It also includes situations where any action taken on your Account by you, an authorized signer, a joint owner, or a third party causes us to seek the advice of an attorney, whether or not we actually become involved in a dispute.
Right of Setoff. If you owe the Bank money and it becomes due, we have the right under the law (called setoff) and under this Agreement (by which you grant us a security interest in your account) to use the money from your account to pay the debt owed the Bank (including but not limited to overdrafts, endorsements, guarantees, loans and other obligations) even if withdrawal results in an interest penalty or dishonor of checks. In the case of a partnership or joint account, each partner or joint owner agrees that we can use all money in the partnership or joint account to satisfy the individual obligations of any partner or joint owner, irrespective of who contributed funds to the partnership or joint account. Similarly, each partner or joint owner agrees that we may use the money in his or her individual account to satisfy obligations arising from the joint account or partnership account. This right of setoff and security interest applies to present and future indebtedness owed the Bank but does not apply to retirement accounts.
Joint Accounts. Whenever we refer to a "joint account" or "joint owner" in this Agreement or any other account document, we mean that the owners hold the account as joint tenants with rights of survivorship and not as tenants in common. Unless otherwise stated on your Signature Card or other evidence of account, you agree that it is your intention to create a joint tenancy with the right of survivorship and not tenants in common in any account you own jointly with another person(s). If one or more of the joint owners dies, you agree that his or her interest in the account shall pass to the surviving owner or owners, subject to our right of setoff and security interest described above. You must make special arrangements with us for any tenants in common (joint tenants without survivorship) account. Tenants in common accounts must be expressly identified on the Signature Card or other evidence of account. Unless otherwise stated on your Signature Card or other evidence of account, any one or more of the joint owners, their legal representative(s), or an agent appointed in writing by any one or more joint owner(s), may withdraw part or all funds on deposit, close or give us other instructions regarding the joint account, including pledging the account funds as collateral to us for any obligation, whether that of one or more Account Holders or of a third party. We will continue to follow such instructions until we receive written notice to change them and have had a reasonable opportunity to act upon the change notice. Each joint owner appoints the other(s) as his or her agent(s) to endorse, deposit, withdraw, and conduct business for the account. Acting as an agent, any joint owner may endorse an item payable to the order of any other joint owner or owners of the account. Once endorsed the money may be taken in cash or deposited in the joint account. If we make any payment following these rules, you release us from liability. Once a joint account is opened, one owner cannot remove another from the title of the account. We have the right to endorse any checks, drafts, or other items payable to the order of any joint owner and deposit them in the joint account.
Payable On Death Accounts. If your account is not a business or fiduciary account, you may designate one or more individuals, fiduciaries or nonprofit religious or charitable organizations to receive payment of the balance of your account upon your death by signing a Payable On Death Account Contract with us. We will not pay the balance of the account under the Payable On Death Account Contract until after the death of the last surviving joint owner. Any one or more joint owner(s) may revoke the Payable On Death Account Contract at any time by providing written notice to us. We will deem the Payable On Death Account Contract to be revoked by any new signature card which changes ownership of the account. The Bank will not accept a Payable On Death Account Contract if any of the account holders is a minor.
Trust, Custodial or Other Fiduciary Accounts. If you create a trust, custodial or other fiduciary account, you authorize the Bank to act on the signature and follow the direction of your trustee, custodian or other named fiduciary. Upon our request, the trustee(s), custodian, or other fiduciary will supply to us a copy of any trust agreement or other legal documentation covering the account. You agree that we are not responsible for monitoring or supervising the actions of your fiduciary or for your fiduciary's noncompliance with any law or trust or custodial document(s), whether or not the Bank has knowledge of the contents of such documents. You agree to assume full responsibility for and to indemnify us against the acts of your fiduciary. You agree that your fiduciary is fully authorized to open or close the account, make withdrawals, endorse items payable to you, draw checks and other items against the account, incur and pay charges, change ownership, authorize additional signers and conduct all other business on your fiduciary account.
If you act as custodian, trustee or other fiduciary on an account, you represent and warrant to the Bank each time you transact on the account, that you are duly authorized with full power and authority to undertake the transaction. You promise to act on the account in accordance with your duties as custodian or trustee and to assume full responsibility for all transactions on or against the account. You agree to indemnify and hold us harmless against any liability, claim or expenses which the Bank may incur as a result of your handling of the account.
Relationship Accounts. For the purpose of providing benefits to you or your joint owner(s) based on your or your joint owner(s) overall banking relationship with us, you consent to the combination of the balances of two or more products to create a "relationship". The current Truth in Savings Disclosure for any product shall control the definition of Relationship for that product. You authorize any and all joint owner(s) on your account(s) as your agent(s) to release information about your account balances included in the Relationship to individuals who also have account balances as part of the Relationship even if such individual(s) is not a joint owner on your account(s).
Accounts for Minors. You may open a joint account with a minor child under the age of 18 years. You and the minor will hold the account as joint tenants with rights of survivorship and not as tenants in common. If the minor is under the age of 16 years, we reserve the right to refuse to transact business on the account for the minor. If the minor is age 16 years or older, unless you instruct us that the minor is not to have the ability to sign on the account, we may pay out any sum deposited and any interest earned upon the written order of the minor.
We may open an account in a minor's name only, if the minor is of sufficient age and a parent or guardian signs a written guaranty.
Business Accounts. Corporations, partnerships, sole proprietorships, limited liability companies, and unincorporated associations 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 holder. On any transactions involving the account, we may act on the instructions of the person(s) authorized in the resolutions, banking agreement, or certificate of authority to act on behalf of the account holder. You agree to notify us in writing of any changes in the person(s) authorized or the form of ownership. If we receive conflicting instructions or a dispute arises as to authorization with regard to the handling of the account, you agree we may place a hold on the account until such conflict or dispute is resolved to our satisfaction and we will not be liable for dishonored items as a result of such hold.
Death or Incompetence. A customer's death or a legal adjudication of incompetence does not revoke our authority to accept, pay or collect items until we know of the fact and have a reasonable opportunity to act upon it. Even with knowledge, we may, for 10 days after the date of death, pay checks drawn on or before the date of death, unless ordered to stop payment by a person claiming an interest in the account.
Stopping Payment On Money Orders, Cashier's, Teller's or Official Checks (Bank Checks). Your ability to stop payment on a Bank Check you purchase from us is limited and should not be confused with your right to stop payment on a personal check written on your account. You may only request stop payment if a Bank Check has been lost, stolen or destroyed. We may impose a 90-day waiting period after issuance of the Bank Check before we refund or reissue it. We may require you to post an acceptable indemnity bond if you request refund or reissuance of a Bank Check before the waiting period expires. We will require you to present an acceptable written claim before refunding or reissuing a Bank Check. You may not stop payment on an item after acceptance of the item by us.
Inactive Accounts. If you do not make deposits to or withdrawals from your account for a period of 12 months, or if it reaches and maintains a zero balance, we may deem your account to be inactive. An inactive account remains subject to service charges and may be assessed additional fees. Under certain circumstances, we must turn over unclaimed funds in inactive accounts to the state of Kansas.
Accounts Are Not Assignable. Accounts are not transferable except on the Bank's books and records. If ownership is to be transferred, we may require that the account be closed and a new account opened. We must give our written consent to a pledge of an account as collateral for a loan from another lender. The pledged account remains subject to our right of setoff and our prior security interest.
Statements and Addresses for Notice. You will receive periodic statements for your account(s). We will rely on the address in our records for all mailings concerning your account. If a statement, interest check or any other written communication concerning your account is returned because of incorrect address, we will suspend further mailing until we receive a correct address. You are responsible for notifying us of any change of address. All statements, notices and other documents are deemed delivered to you on the date we place them in the mail, or if we do not have a current address, when prepared by us. Notice to any account owner or authorized signer shall be considered notice to all account owners and signers. Written notice you give to the Bank is effective when actually received by our personnel at one of our banking offices and we have had a reasonable opportunity to act on it.
Service Charges and Fees. You agree to pay any service charges and fees on your account as described in our Truth in Savings Disclosures and Fee Schedule (for Personal Accounts) or the Business Accounts Product Information. Any service charges and fees may be deducted from your account without prior notice to you. The Bank may dishonor checks or other withdrawal orders because of insufficient funds resulting from deduction of fees and charges.
Change of Terms. We may change the terms of this Agreement, including the information disclosed in our Truth in Savings Disclosures, Fee Schedule, or the Business Accounts Product Information, from time to time at our discretion. We will provide notice of changes in terms as required by law. For time deposits, the change will be effective on the next maturity date after the effective date of the change notice. Continuation of your account after the effective date of our notice, will be deemed acceptance of the changes in our notice.
Waiver of Rights by the Bank. We may delay or waive any fee or enforcement of any other terms of this Agreement for any transaction or series of transactions. Any such waiver will not affect our right to enforce this Agreement with respect to other transactions and is not sufficient to modify the terms and conditions of this Agreement. Waivers must be written and signed by an authorized officer to be binding on us.
Termination or Suspension of Account. This Agreement may be terminated and your account closed at any time by you or the Bank. If we close your account, we may send you written notice that the account is closed on the date we close the account. You agree to notify us of your intention to close your account, and we hereby reserve the right to request the notice in writing. Such closing will not release you from fees or other obligations incurred before the termination; fees you incur in the process of closing your account; or liability on outstanding items. We may pay or dishonor any item presented for payment after the account is closed without prior notice to you. You remain liable to us for such transactions and agree to make payment to us immediately upon demand.
We may close or suspend any account or refuse any transaction at the request of any signer. If a dispute arises over the ownership of, or the right to withdraw funds from an account, we may also suspend the account and hold the funds on deposit until the dispute is resolved. We may require the signatures of all authorized signers and/or a court order before permitting withdrawal of funds or closing of a disputed account. You agree to be responsible for any loss or expenses we incur as a result of a dispute between you and an authorized signer, another joint owner, or a third party claiming an interest in your account.
At our option, we may close an account which reaches a negative balance, without prior notice to you.
Financial Institution Liability. You agree that if we do not properly complete a transaction according to the Agreement, we will not be liable in any event for losses or damages in excess of the amount of the transaction, and we will not be liable if circumstances beyond our control prevent the transaction, or the funds in your account are or may be subject to legal process or other claim. In no event will we be liable for consequential damages.
Miscellaneous Provisions. You authorize us to request and obtain one or more credit reports about you from one or more credit reporting agencies for the purposes of considering your application for this account, reviewing or collecting any account opened for you, or for any other legitimate business purpose. You authorize us to disclose information about your account to a credit reporting agency if your account was closed because you have abused it. You understand that supervisory personnel may randomly monitor customer service telephone conversations to ensure that you receive accurate, courteous, and fair treatment. If you ask us to follow instructions that we believe might expose us to any claim, liability, or damages, we may refuse to follow your instructions or may require a bond or other protection, including your agreement to indemnify us. If a court finds any provision of the Agreement to be invalid or unenforceable, such finding shall not make the rest of the Agreement invalid or unenforceable. If feasible, any such offending provision shall be deemed to be modified to be within the limits of enforceability or validity; however, if the offending provisions cannot be so modified, it shall be stricken and all other provisions of the Agreement in all other respects shall remain valid and enforceable.