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HomeMy WebLinkAbout04-6097 Chun T Chen 1127 Cocklin St Mechanicsburg, PA 17055 (717)503-7281 Chun T Chen PLEAS 112 Cocklin Street COUNTY M~naourg,PA17~ Plaintiff, v. M&T Bank 2775 Paxton Street Harrisburg Defendant, COURT OF COMMON CUMBERLAND TERM NO. 0 'I -t(J 97 CIVIL ACTION COMPLAINT NOTICE TO DEFEND You have been sued in court. If you wish to defend against the claims set forth in the foIIowi.lg pages, you must take action within twenty (20) days after this Complaint and Notice are served, by 8I'fl&.itt9 a written appearance personally or with an attorney in filing a writing document to defend your defenses or objections to the claims set forth against you. You are warned that if you fail to do 80 the caee may proceed without further notice for any money claimed in the Complaint or for any other claim or relief requeJterJ by the plaintiff. You must lose money or property or other rights important to you, YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU 00 NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FINO OUT WHERE YOU CAN GET LEGAl HELP. CUMBERLAND COUNTY BAR ASSOCIATION 32 SOUTH BEDFORD STREET (717)-249-3166 Complaints: 1. Plaintiff is Chun T Chen. The location of residence is 1127 Cocklin Street. Mechanicsburg, PA 17055. 2. Defendant is M& T Bank. The origin of the checking account was opened in M& T Bank, 2n5 Paxton Street, Harrisburg. The local M&T branch near the plaintiff's residence is 5219 Sinpson Feny Rd, Mechanicsburg, PA 17050. 3. The account was opened in Harrisburg. but the transactions had occurred in two different locations, Harrisburg and UtdutiGaburg 8rMch. 3. The client has a cIl3Od.lIIj account contract with M&T Bank, ending July of 2007. 4. The client is a sole plop.~ of computer ~ owning an online and selling products on ebayas his souree of income. 5. If one side fails to stick to herlherlits part of the bargain. there is a breach. A breach occurs when: one perty to a oodbllCl mekes it impossible for the other parties to the contract to petfonn; a party to the \iUfdwtd does 8Om8Ihing against the intent of the conbaJt. or. party absolutely refuees to perform the oontracl 6. The breach of the fiducieIy duty owed to the pW.df is -matefiar with a monetary value of $9,000 I1!Ilumed check. 7. A tort case involved a ~:_."-I!INI charge with five to six times of over drafting fees and a returned check to the customer. 8. The contractor failed to petfonn ita duty when the auditor (s) should have audited the check for any ~ rniMt8IlemeIo or fraudulent Ir8nlIIdions under the statutory of fraud 9. If for the fact that the chedt is fraud, the bank should notify the client between the business days, Nov.16 and Nov. 19. 10. The auditorleecurity offtcef should a.e investigated or be conoemed about the problem with the check from l6far7ML; Benk. it'l.* lid of chargill numerous questions about the clienfs background. 11. The auditor should be able to tell a difi(...~ between a fraudulent check and a fine check, giving ___ that the cheek is ell.. or bud. 12. The -ctue carew responII)iIilywas violated from failing to dGtlDdRlQ fraud for the client under Rule 201-Genenl1 Standards. 13. The intem8I auditor did not comply to GAAP rule tOr prewIfIting the fraudulent check in th.... buein.. I t days. The bank violates SeOOon 1831 n. Accounting ~jf.dWes. standards. and requirMlenls and sedion 1815. Deposit insurance. 14. The bank did not corrrf)ly SeOOon 3910. audit authority of general accounting oftice. 15. Under section 1831g. .oo..b-* between depository institutions and persons providing goods, pIOducIs, or services- which .. enforced by showing the bank's books and transactions conoeming to bank fraud. 16. The b8nk .~~ to diIcIo8e tranelction informetion dem8nded by the client ~nceming to his recent activity. except the dl8t1t's privacy protected by the Bill of Rights. 17. AIIhough the statue of l.ulb6:.\ exiIts ... . year lr.liIaIk..' IIIweuit, the contract had never ended, and it wiIIl8st until July, the year 2007. Wdh the contrad had never been terminated. overcharging and over draft fees must be restated, with absolutely or no additional charge for its services. 18. The balance on the shAf.:..R;.d is incorrect having the amounts of total charged approximately $4500, an il'lCOl'leCt or mistake transaction made on the account, which needs an readjustment 19. If the bank had disclosed :.,rOl..wtion to the client if a check is fraud, no incident would occur between the client and bank. Information misrepresentation is a civil and aiminaI ofrfntU depending on the matter of the case. 20. The bank had wrongfully overcharged the client with numerous overcharging fees due to unknown reasons. The client had asked the bank. which refused to clarify the questions, or if the questions were anstWf8d, they were muddle with undefined 8lU11L.S. 21. Under section 687f., the security officer was unlawful acts as officers, directors, 8IIlJ:by4O$, or agel. wiI be proaecuted for breech of truet when the employee should have iflVelti9;.k.J the bank's background thoroughly and carefuHy, in:Iteed of asking runerous questions oonceming to client's background. 22. Negligence. Due to failure to act in detoctW.g a fraudulent check or pr&v~,tHlQ ovetct.arging fees from mistakes. 23. The client is seeking for equity trubnent of compensatory cI8mege6. attorney fees and cos1s, and consequential and incidental damages for $100,000 in setttement. 24. FinaHy, the bank cc..fLI~ fraud from failing to detect . check fraud and to recover the incidental chaIged of five to six times overcharging and over drafting fees. ~-r: L ChUV\ T. CheX\ t1 \ -1) 503-7aB ( 1. Piaint- CHUN TAO CHEN 1127 COCKLIN STREET MECHANICSBURG, PA 17055 2. The name(s) and last known addressees) of the Defendant(s) are: M&T Bank 2775 Paxton Street Harrisburg. PA 17111 M&T Bank 5219 Simpson Ferry Rd Mechanicsburg, PA 17055 Bank Tellers Belinda-Branch Manger Steve Bears-Securily Officer (District Auditor) Thomas A Miller-Branch Sales Associate 3. On July of the year 2007 contract ended, executed and has not yet completed upon the premises hereinafter descriJed to M&T Bank which U1e conIract is recorded in the office of the M&T Bank in Harrisburg. The contract should be enforced by the law until the eAf):ration date July. 2007. 4. The contract is enforced by abiding the two parties between M&T Bank (contractor) and Chun T. Chen (plaintiff). 5. Statement for the Plainlilfs chcGUIQ account statement Checking Account Number-951116199 Date 11/2312004 Beginning Balance: Fraudulent or returned check: Owe or insufficient: 6. Estimated Costs Personal expense fees: Actual Western Union Service Charge Fees and Money Order Sent: $2,625.00 $5093.45 $9,000.00 $4,140.55 Opportunity costs incuned in business: Personal written docut.le.dation service fees: $2,000.00 Costs of time inamed in sole proprietor business: $10,000.00 Reputation damage $ 5,000.00 Personal attorney or providing own document fees: Over drafting costs: Traveling Expenses: Other liabilities, readjustment of my account Infonnation, negligence, or punitive damage: $5,000.00 $200.00 $100.00 $75,075.00 Verificanc" /' I _ -r-' (I \ I, LJ\Un I L-l\CV\ , have read the foregoing and hereby affirm that it is true and correct to the best of my personal knowledge, or information and belief. This Verification and statement is made subject to the penalties of 18 Pa. C.S. ss4904 relating to unsworn falsification to authorities; I verify that all the statements made in the f()(6y~~ are true and COIf(.d and that false staternen1s may subject me to the penalties of 18 Pa. C.S. 854904. MACR0PC4ME /' BY u_ T L-- ~ RJ ~ 0 ""'" r- c;:::> 0 lh ~B r~~ c:, () "L- -n 0 >-; . V\ rq T, ::f - .' n :;,7"' i ~ 111r,J CJ\ r.-' I TJrn 0', ~!J, Y - ,?f:~~ () ~, U\. ....."'.. ~ --0 ~i:~ ?"-~~ ~t~ ,-- =< .1 <::::> ~ (:-) ~ C:) ~ IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CHUN T. CHEN, Plaintiff Docket No. 04-6097 v. M&T BANK, Defendant NOTICE TO PLEAD TO: Chun T. Chen You are hereby notified to file a written response to the enclosed New Matter and Counterclaim within twenty (20) days from service hereof or a judgment may be entered against you. Date: December 22, 2004 STE~ Mark D. Bradshaw, Esquire Attorney I.D. 61975 4750 Lindle Road P.O. Box 11670 Harrisburg, P A 17108 (717)561-5258 Attorneys for M&T Bank Corporation 1 12l2l104/SLl 499950vl/99999.9999 .. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYL VANIA CHUN T. CHEN, Plaintiff Docket No. 04-6097 v. M&T BANK, Defendant DEFENDANT'S ANSWER WITH NEW MATTER AND COUNTERCLAIM AND NOW COMES the defendant, M&T Bank ("M&T"), by and through its counsel, Stevens & Lee, and makes the following Answer With New Matter and Counterclaim to Plaintiffs Complaint, stating in support thereof as follows: 1. Admitted upon information and belief. 2. Admitted. 3. Admitted. 3. (sic-second paragraph numbered "3") Admitted in part and denied in part as stated. It is admitted that plaintiff Chen has a checking account with M&T Bank, and that the terms and conditions governing said account were agreed to at the time the account was opened. The original terms and conditions governing this account (opened at the time with Allfirst Bank) are attached hereto and made a part hereof as Exhibit "A". Following the acquisition of AlHirst by defendant M&T, the terms and conditions governing Plaintiff's account were amended as provided in the Allfirst terms and conditions. Thus, the current terms and conditions governing Plaintiffs account with M&T are attached hereto and made a part hereof as Exhibit "B". Plaintiffs averment that the checking account contract runs through July of2007 is denied as a 2 12/21/04/5 LI 499950v 1/99999.9999 ... legal conclusion requiring no responsive pleading. To the extent any factual response is required, the account is terminable at will by either party. 4. Denied. Following reasonable investigation Defendant lacks information sufficient to form a belief as to the truth ofthe averments of Paragraph 4 and the same are therefore denied. 5. Denied. The averments of Paragraph 5 constitute legal conclusions requiring no responsive pleading. 6. Denied. The averments of Paragraph 6 constitute legal conclusions requiring no responsive pleading. By way of further answer, Plaintiff was or should have been aware either that the $9,000 check was fraudulent and/or counterfeit, or, alternatively, that the $9,000 credit provided to Plaintiffs account was provisional and conditional in nature unless and until Defendant finally collected the $9,000 in issue from the payor hanlc 7. Denied. The averments of Paragraph 7 constJitute legal conclusions requiring no responsive pleading. To the extent any response is deemed required overdraft fees were appropriately charged to Plaintiffs account due to the failure and refusal of the payor bank to honor the $9,000 deposit Plaintiff made. 8. Denied. The averments of Paragraph 8 are denied as both unintelligible and as conclusions of law requiring no response. 9. Denied. The averments of Paragraph 9 constitute legal conclusions requiring no responsive pleading. By way of further answer, defendant M&T Bank can only notify its customer that a check has been dishonored by a payor bank once it is, itself, notified of said dishonor by the payor bank. In this instance, M&T Bank was not notified by the payor bank before November 19, 2004, and therefore it was impossible for M&T Bank to notify Plaintiff 3 12/21/04/SLI 499950v1/99999.9999 " .- within that time frame. By way of further answer, as between M&T Bank and Plaintiff, Plaintiff had, at a minimum, inquiry notice that the circumstances surrounding the $9,000 check were SUSpICIOUS. M&T, on the other hand, had no such notice. 10. Denied. The averments of Paragraph 10 constitute legal conclusions requiring no responsive pleading. To the extent any factual response is deemed required, the averments of Paragraph 11 constitute evidence of Plaintiff's misunderstanding of the manner in which checks are handled and settled or dishonored within the banking system. 11. Denied. The averments of Paragraph 11 constitute legal conclusions requiring no responsive pleading. To the extent any factual response is deemed required, the averments of Paragraph 11 constitute evidence of Plaintiff's misunderstanding of the manner in which checks are handled and settled or dishonored within the banking system. 12. Denied. The averments of Paragraph 12 constitute legal conclusions requiring no responsive pleading. To the extent any factual response is deemed required, the averments of Paragraph 12 constitute evidence of Plaintiff's misunderstanding of the manner in which checks are handled and settled or dishonored within the banking system. 13. Denied. The averments of Paragraph 13 constitute legal conclusions requiring no responsive pleading. To the extent any factual response is deemed required, the averments of Paragraph 13 constitute evidence of Plaintiff's misunderstanding of the manner in which checks are handled and settled or dishonored within the banking system. 14. Denied. The averments of Paragraph 14 constitute legal conclusions requiring no responsive pleading. To the extent any factual response is deemed required, the averments of Paragraph 14 constitute evidence of Plaintiff's misunderstanding of the manner in which checks are handled and settled or dishonored within the banking system. 4 12/21/04/SLI 499950v1l99999.9999 15. Denied. The averments of Paragraph 15 constitute legal conclusions requiring no responsive pleading. To the extent any factual response is deemed required, the averments of Paragraph 15 constitute evidence of Plaintiffs misunderstanding of the manner in which checks are handled and settled or dishonored within the banking system. 16. Denied. The averments of Paragraph 16 constitute legal conclusions requiring no responsive pleading. To the extent any factual response is deemed required, the averments of Paragraph 16 constitute evidence of Plaintiffs misunderstanding of the manner in which checks are handled and settled or dishonored within the banking system. 17. Denied. The averments of Paragraph 17 constitute legal conclusions requiring no responsive pleading. To the extent any factual response is d(:emed required, the averments of Paragraph 17 constitute evidence of Plaintiff s misunderstanding of the manner in which checks are handled and settled or dishonored within the banking system. 18. Denied. The averments of Paragraph 18 constitute legal conclusions requiring no responsive pleading. To the extent any factual response is deemed required, the averments of Paragraph 18 constitute evidence of Plaintiffs misunderstanding of the manner in which checks are handled and settled or dishonored within the banking system. 19. Denied. The averments of Paragraph 19 constitute legal conclusions requiring no responsive pleading. By way of further answer, defendant M&T Bank can only notify its customer that a check has been dishonored by a payor bank once it is, itself, notified of said dishonor by the payor bank. In this instance, M&T Bank was not notified by the payor bank before November 19,2004, and therefore it was impossible for M&T Bank to notify Plaintiff within that time frame. By way of further answer, as between M&T Bank and Plaintiff, Plaintiffn 5 12/21104/SLl 499950vl/99999.9999 had, at a minimum, inquiry notice that the circumstances surrounding the $9,000 check were SUSpICIOUS. M&T, on the other hand, had no such notice. 20. Denied. The averments of Paragraph 20 constitute legal conclusions requiring no responsive pleading. To the extent any factual response is d'eemed required, the averments of Paragraph 20 constitute evidence of Plaintiffs misunderstanding of the manner in which checks are handled and settled or dishonored within the banking system. 21. Denied. The averments of Paragraph 21 constitute legal conclusions requiring no responsive pleading. To the extent any factual response is dleemed required, the averments of Paragraph 21 constitute evidence of Plaintiffs misunderstanding of the manner in which checks are handled and settled or dishonored within the banking system. 22. Denied. The averments of Paragraph 22 constitute legal conclusions requiring no responsive pleading. To the extent any factual response is deemed required, the averments of Paragraph 22 constitute evidence of Plaintiffs misunderstanding ofthe manner in which checks are handled and settled or dishonored within the banking system. 23. Denied. To the contrary, as reflected on Plaintiffs account statement, and in correspondence directed to Plaintiffby M&T, Defendant has been damaged by reason of a negative account balance in Plaintiffs account in the amount of$[4,172.55]. Any suggestion that Defendant M&T bears any liability to Plaintiff under these circumstances is mistaken. By way of further answer, Plaintiffs demand for $100,000 is self-evidently frivolous. 24. Denied. The averments of Paragraph 24 constitute legal conclusions requiring no responsive pleading. 6 12/21/04/SLI 499950vl/99999.9999 L NEW MATTER 25. On or about November 16,2004 Plaintiff deposited at M&T what appeared to be a cashiers' check dated March 11, 2004, payable to him. 26. In accordance with the terms and conditions governing Plaintiffs account with defendant M&T, and pursuant to the provisions of the Expedited Funds Availability Act, Defendant granted provisional credit to Plaintiff in the amount of $9,000 while awaiting notification from the payor bank as to settlement or dishonor of this item. 27. In accordance with the account agreement (Exhibit "A" hereto) as amended (Exhibit "B" hereto), and in accordance with the provisions of applicable law, the $9,000 credit extended to Plaintiff was provisional in nature only. 28. A provisional credit is, in effect, a loan afforded by the collecting bank (here M&T) to its customer pending final settlement of a deposited it(:m from the initiating or payor bank. 29. In the event the payor bank dishonors the deposited item for any reason, the collecting bank (here M&T Bank) has an express statutory right to charge-back the customer's account for the value ofthat deposit. See, e.g. 13 Pa. C.S. ~4214. 30. Upon being notified by the payor bank that it dishonored this $9,000 check, defendant M&T immediately charged back Plaintiff's account according to the account agreement and applicable law. 31. For reasons known only to Plaintiff, in the intervening time period, Plaintiff withdrew $2500 in cash which he then, upon information and belief, wired by Western Union to unknown third parties. These third parties were, upon information and belief, involved in furnishing Plaintiff with the counterfeit $9,000 check in the first place. 7 12121104/SLl 499950vl/99999.9999 32. Plaintiff appears to have become a victim of a variation on what is known as the "Nigerian banking scam". 33. No one associated with M&T played any role in encouraging Plaintiff to transact business with these third parties. 34. As between Plaintiff and M&T, only Plaintiff had inquiry notice that these transactions might be fraudulent in nature. 35. M&T has the right to charge back Plaintiffs check account under these circumstances, as a matter of the contract by and between the parties, as a matter of state law, uniform commercial code provisions, and as a matter of federal banking law. COUNTERCLAIM 36. Defendant M&T incorporates by reference the responsive averments of Paragraphs 1 through 24 as set forth in full herein as well as Paragraphs 25 through 36 as though set forth in full herein. 37. As a result of the transactions described herein above, Plaintiffs present account balance with M&T Bank is negative, $[4,172.55]. 38. Representatives of defendant M&T have made demand upon Plaintiffthat he reimburse the Bank for this amount, thereby bringing his account balance to at least zero. 39. Plaintiff has refused to reimburse the Bank the amount of this loan implied at law. 40. M&T Bank is entitled to be reimbursed this amount, together with its attorneys' fees incurred in collection as specifically provided in the account terms and conditions. 8 12/21/04/SLl 4999S0v 1/99999 .9999 WHEREFORE, defendant M&T Bank respectfully requests judgment in its favor and against Plaintiff, together with costs and attorneys' fees, all as provided by law. Respectfully submitted, STEVENS & LEE~ By: ~ Mark' D. Bradshaw Attorney LD. No. 61975 4750 Lindle Road P.O. Box 11670 Harrisburg, PA 17108-1670 (717) 561-5258 Attorneys for Defendant 9 12/21/04/SLI 499950vl/99999.9999 I ~/ z~/t!r{ I ' FROM M&T Bank PHONE NO. 717+731 +412191:' Dec. 21 2004 1214:I2II21PM P2 VERIFICATION I, STEVEN E. BEAR, verify that the attached Answer With New Matter and Counterclaim is based upon the facts of which I have personal knowledge or information furnished to me by counsel; that the language of the document is that of counsel and not my own; and that the facts set forth in the foregoing document are true ,and correct to the best of my knowledge, information and belief. I understand that the statements herein are made subject to the penal lies of 18 Po. C.S.A. ~ 4904 relaling~~:: Steven E. Bear Date: DecemberJ!. 2004 \ 2116104151,1 499950.....' 100000.000 II allfirst' Allfirst Bank Allfirst Financial Center, D.a. Mnnb... FDIC Sept 2002 ALL 3240 (0209) PK 25 : ,;:.. 21 f.l'Rules for (:onsumer Deposit Accounts lncluding Funds Availabili~y' and Electronic Funds Transfer Disclosures ,"c' "'-.ti",~~,~?"... . ' EXHIBIT I A ; .."",'...;.--....-..;........i...~~~J~~.A........ ,_.:.:.~...,,_ ,,'.'J ~~. Welcome Terms Governing Your Account welcome to Alljirst Bank and tlurnk you for banking with us. This Agreement has been prepared to explain the terms and conditions which govern the deposit account(s) you established with Alljirst Bank, or Alljirst Financial Cen- ter, NA referred to in the Agreement as the Bank. we are committed to making your banking as easy and convenient as possible. we offer a wide range offinancial services and provide convenient branch and automated teller machine locations. You can be assured that we understand your needs and can address your individual financial situation. we look forward to serving you. Table of Contents Terms Governing Your Account......................... 3 Account Ownership. . . . . . . . . . . . . . . . . . . . . .. .. .... ... .....4 Deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Funds Availability.... . . . . ...... .... . ....................5 Withdrawals. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . .. .........8 Service Charges.... . . ... ... .. . .. .. . ... ...... ............8 Statement Review. . . . . . . . . . . . . . . . . . . . . . . ... . ... .... . ...8 Changes or Amendments. ....... . ... . ..................8 Inactive Accounts.. . . .. ... .... .... ... ........... ........8 Closing Your Account........................... ... ..... 9 Legal Proceedings. . .. .... ......... .. . . . . ................9 If You Owe Us Money.......................... ..... .... 9 Jurisdiction/Waiver of Jury Trial........................ 9 Waiver. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. 10 Notices. .. . . . . .. . . . .. .. . .. .. .. .. .. . . . . . . .. . .. .. .... .... 10 Checking Accounts and Related Services............... 10 Direct Deposit Services.. ....... ..... .,. .... .. ... ......12 Overdraft protection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ., 12 Savings and Money Market Deposit Accounts.......... 13 Time Deposit Accounts ....... .. ..... .. .... ... ......... 14 Protecting Your Privacy. ... .. . ... . . ... . . . . .. .. . . ....... 15 Electronic Banking. . ... . .. ..... .. . .. . . ...... ......... ., 19 Account Ownership. . . . . . . . . .. . . . . . . . . . . . . . . . . . . .. .. . . . 32 Accounts Not Subject to Maryland Multiple Party law ..33 Contract Codes. . . . . . . . . . . . . . . . . . . . . . ........... . .... ..33 - -J/ .;;:~ - ".': This booklet describes the terms and conditions of the deposit account(s) you have opened with the Bank. Throughout, the words we, our, and us will refer to the Bank and you and your will refer to YOU, the depositor. Please review these Rules and keep them with your other account records. All deposit accounts governed by these Rules are insured by the Fed- eral Deposit Insurance Corporation to the maximum amounts allowed and according to Federal regulations governing insured deposits. The Rules set forth herein, together with the Account Disclosures. the Account Agreements, forms. brochure materials and general Bank poli- cies (collectively, the Rules), govern all deposit accounts offered by the Bank. Some deposit accounts involve special rules that are not set forth in these Rules, such as retirement accounts. While the Rules are generally applicable to these accounts, these accounts are also subject to additional rules which reflect their unique charac- teristics. Further information is available at the Bank on these accounts. You, as a deposit customer, and the Bank agree to abide by the Rules outlined in these various materials. The rights and obli- gations set forth in these Rules may be modified only in writing, either by a separate notice on or with your periodic statement or by posting a notice at the branch office. Your account and these Rules are governed by the laws and regulations of the United States (Federal law) and the applicable laws of the jurisdiction where your account is established. Once you sign the Account Agreement, receive the documentation and use the account, you have accepted the Rules. You have the right to dispute the accuracy of information we have reported to a Consumer Reporting Agency. If you wish to do so, write to us at the address listed below. Please include your name, address, account number and a brief description of the problem. In order to improve customer service, customer information may be shared among the affiliates of the Bank. However, you have the right to opt out of this information sharing, other than the sharing of transaction or experience information, by notifying us in writing at the address listed below within 30 days of when this notice is given. Please include your name, address, account num- ber, telephone number and Social Security number. Each customer on a joint account may direct that only his or her information not be shared among affiliates. Customer Information Services Mail Code 501-120 PO Box 1596 Baltimore, MD 21203 3 ...... - Account Ownership Accounts may be opened by individuals, joint owners, persons holding custodial or trust power for another, unincorporated associations, estates or other ownership designations approved by the Bank. Within each jurisdiction where the Bank operates its branches there are some legal variations in the way accounts may be titled. To allow for these variations, the Bank uses a list of contract codes to identify the legal agreement between the Bank and the owner(s) and other persons listed on the account Each con- tract code is explained in the listing on the pages at the end of this booklet The contract code selected by you with assistance from the Bank representative establishing your account is shown on your Account Agreement and in the Bank's computer system. Please review the explanation of your account contract code(s) carefully and be sure it accurately reflects the ownership of the funds in your account(s). If you have any questions. your Bank representative will be happy to assist you. If your account was established before the implementation of the Bank's contract code system, or if your account was assumed by the Bank from another financial institu- tion, a Bank representative can assist you in revising your account to select a contract code. Unless agreed to in writing by us, accounts are not transferable or assignable except upon the books of the Bank. Ownership Disputes: If a dispute arises relative to who is the rightful owner of the funds on deposit in your account, we may, in our sole discretion, restrict any further withdrawals from the account or your other accounts until the dispute is resolved in writ- ing by the parties claiming ownership rights. or by court order. In these cases, or in the case of the death of an account owner, funds in the account will not be released until all required legal documents are delivered to us. Deposits General Deposit Rules: In receiving items for deposit or collection, we act as your collecting agent and assume no responsibility beyond the exercise of due care. We reserve the right to refuse, limit or return any deposit. You will receive provisional credit for each deposit once we have received and verified the items in detail, including verification of the actual amount deposited. If an error is discovered in any deposit to your account, we can make correcting entries. If a check you deposited is dishonored, that is, if it is not paid to us by the institution it is drawn on, we may charge the amount of the check to any account held by you at the Bank. We have the right to endorse any checks. drafts or other items deposited to your account which do not require a personal endorsement. In some cases, a check, draft, bond coupon or other item may be accepted for collection only. This means we have the right to col- lect the item from the financial institution it is drawn on before we make the principal or interest available to you for withdrawal. If 4 .---,., '.Ie" there are special fees for collecting your depOSit, they may be li4 deducted from the proceeds. Funds Availability Section I-General: Our policy is to make funds deposited to your consumer checking account available to you on the first business day after we receive your deposit. Electronic direct deposits will be available on the day we receive your deposit. Once the funds are available, you can withdraw them in cash and we will use the funds to pay checks you have written. If you attempt to draw funds before they are available, under this Funds Availability policy, the unavail- able funds fee will apply. For determining the availability of your deposits. every day is a business day, except Saturdays, Sundays, and Federal holidays. If you make a deposit before 2:00 p.m. with a teller on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit after 2:00 p.m. with a teller or on a non-business day, we may con- sider that deposit to be made on the next business day. Deposits after 12:00 noon or on a non-business day at an automated teller machine may also be considered to be made the next business day we are open. Section 2 - Same Day Availability: If cash deposits are made in person to one of our tellers, these funds will be available on the day of deposit. Also, funds from electronic direct deposits to your account will be available on the day we receive the deposit. Funds deposited to your account by checks drawn on Allfirst Bank are considered checks drawn on-us. On-us funds will be made available to pay checks presented to your account the night of the business day you deposit the check and will be available for other types of withdrawals (cash, cashed checks. ATM or debit card transactions) at the start of the business day following the day of deposit Section 3-Longer Delays May Apply: In some cases, we will not make all of the funds that you deposit by check available to you on the first business day after the day of your deposit. Depending on the type of check that you deposit, funds may not be available until the fifth business day after the day of your deposit However, the first $100 of your day's deposit will be avail- able on the business day following the day we receive your deposit. If we are not going to make all of the funds from your deposit avail- able on the first business day after the day of your deposit, we will inform you at the time you make your deposit and tell you when the funds will be available. If your deposit is not made directly to one of our employees, or if we decide to take this action after you have left the premises, a notice will be mailed to you no later than the day after we receive your deposit If you need to be sure when a particular deposit will be made available for withdrawal, please ask us. 5 , ,,,~,~~..... ,c.;' ."_ In addition, funds you deposit by check may be delayed for a longer period under the following exception circumstances: · We believe that a check you deposit will not be paid. · You deposit checks totaling more than $5,000 on anyone business day. · You re-deposit a check that has been returned unpaid. · You have overdrawn your account on six or more business days during the past six months, or on two or more business days during the past six months in the amount of $5,000 or more. · There is an emergency, such as failure of communications or computer equipment. We will notify you if we delay your ability to withdraw funds and we will tell you when the funds will be available. Funds will generally be available no later than the eleventh business day after the day of your deposit. Section 4-Special Rules for New Accounts: If you are a new customer, the following special rules will apply in accordance with the Expedited Funds Availability Act during the first 30 days your'ii'i, account is open. Funds from electronic direct deposits to your .:. account will be available on the day we receive the deposit. Funds . from deposits of cash, wire transfers, and the first $5,000 of a day's total deposits of US. Postal money orders, cashiers, certified, ; tellers, travelers, Federal, state and local government checks as' well as Federal Reserve and Federal Home Loan Bank checks will be! available on the business day following the day of your deposit if the deposit meets certain conditions. For example, the checks must be payable to you. The excess over $5,000 will be available on the seventh business day after the day of your deposit. If your deposit of these checks (other than a US. Treasury check) is not made in per- son to one of our employees, the first $5,000 will not be available until the second business day after the day of your deposit. Funds from all other check deposits will be available on the eleventh business day after the day of your deposit. Section 5 - Holds on Other Funds: If we cash a check for you that is drawn on another bank, we may withhold the availability of a corresponding amount of funds that are already in your account. Those funds will be available at the time funds from the check we cashed would have been available if you had deposited it. If we accept for deposit a check that is drawn on another bank, we may make funds from the deposit available for withdrawal imme- diately, but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available for withdrawal until the time period that would apply for the type of check that you deposited. 6 Section 6 -Interest-bearing Checking Accounts: For interest- bearing checking accounts, funds you deposit will begin to accrue interest from the day the Bank receives credit for the funds. Section 7 -Check Endorsement Rules: When you deposit a check, it is necessary to endorse the back of the check with your signature and/or any other type of endorsement. To ensure the prompt and accurate return of checks, the law requires that the top 11/2 inches on the back of the check be reserved for the signature and account number of the payee (the individual to whom the check is made payable) and, if applicable, the signature and account number of other endorsers. (See the check sample below.) You agree to reimburse us for any loss we incur because an item was not endorsed exactly as drawn. Do not write on the remainder of the back of the check. This space is to be used by financial institutions only. If you deposit or redeposit checks with writing in the area reserved for financial institutions, there could be a delay in returning the check if the check is dishonored. If there is a delay in the return of a dishon- ored check due to writing in the area reserved for financial insti- tutions, you will not be able to dispute the late return with the Bank. You may, of course, seek payment from the party who wrote the check. PAYEE! DEP08ITOR EIlDOIlSEIIENTS -1.5"-+1 ~ aD. "'0 0.. .. <> c .. 4=1:1:00: ~]~~ ~ ..:to: i ~1 ..,. : \ ... g ... i 101 is ~ .... $- / .. <> .. % <>D. M! .. <> if .IOHll DOE JANE DOE 20_ ""TO );'''''''"'' JOHN Q. PUBUC Routing Number Section 8-Customer Responsibility: Although funds have been made available to you and you have withdrawn them, you are still responsible for problems with the deposit, such as checks that you deposited being returned unpaid. You represent and warrant to us that all endorsements on any check you cash or deposit are genuine and complete, and that the check has not been altered or forged in any way. When checks are disputed or returned to us for these or other reasons, we will deduct the amount of the disputed/returned check from any of your accounts with the Bank. 7 Withdrawals To make withdrawals in whole or in part from any account, you must have your signature on file with us as an owner, joint owner, an attorney-in-fact or the authorized fiduciary for that account. We may also request appropriate identification. In our sole discretion, we may payor refuse to pay any item you write that is incomplete or conditional. For example, terms such as .not valid over $100. or .void after 30 days. or a failure to com- plete the numerals of the check amount, may be disregarded in the processing of the check. We may refuse any check or other item drawn against your account 01 used to withdraw funds from your account if it is not on a form approved by us. Service Charges We may charge you for the various services provided in connection with your account(s). Service charges may be applied directly against the account. These prices are published, are made available to you at the time you open your account, and may be changed from time to time, at our option, upon 30 days' notice. Statement Review IMPORTANT: You should review your periodic account statement and any accompanying items immediately upon receipt of your statement. Report any forgeries. alterations, or unauthorized trans- actions immediately in writing, ~n if you don't have time to balance all your valid transactions. You agree that the bank will be . ~ relieved of liability if you fail to report forgeries, alterations or unauthorized transactions within thirty (30) days from the date the statement containing those items was mailed to you. Failure to ~port these items within 30 days means you will lose your nght to recover any loss. In addition, the Bank will not be liable if items are forged or altered so cleverly that such fraud could not reasonably be detected. Changes and Amendments We may change or amend these Rules on thirty (30) days' notice, and you will be bound by those changes and amendments. Unless otherwise required by law, any changes may be communicated either by posting notice in our branch offices or by sending written notice to you by mail to your last known address, or by information sent with your periodic statement. lnactive Accounts Your account will be considered inactive if you have not made a deposit to or withdrawal from your account (or to a time deposit which has matured), or transacted business or corresponded with us concerning your accounts during a reasonable period of time. If your account is inactive, we may close the account, and appli- cable charges may be assessed. The account is presumed abandoned 8 after five years of inactivity (in Pennsylvania, the District of Colum- bia (D.C), Delaware and Virginia) and after four years of inactivity in Maryland. As of June 30, 2003, Maryland accounts will be con- sidered abandoned after three years of inactivity. After the period of inactivity, funds in the account will be surrendered (escheated) to the appropriate state entity. Closing Your Account You or the Bank can close your account at any time unless it is in dispute or subject to court proceedings. Reasons why the bank might close your account include, but are not limited to: 1. To comply with any federal regulations which: restrict the notice or number of withdrawals permitted from an account, require the reporting of cash transactions on the account, or involve the fail- ure of a customer to provide satisfactory forms of identification or tax information. 2. For any fraud, abuse or mis-representation made by an account holder in the opening or operation of an account or to a bank representative. 3. For illegal, unauthorized or negligent activity on an account or with the card, phone or internet access to the account. If we close your account, we will send you a check for the available balance in the account to the address on our records. Such closing will not release you from your liability on outstanding items. Lega 1 Proceedings If your account is the subject of legal proceedings, your use of it may be restricted by law. You agree to reimburse us for any expenses and reasonable attorneys' fees that we may pay as a result of such legal proceedings. lfYou Owe Us Money We can use the money from any account you have with us to pay your indebtedness to us by virtue of a loan, including an overdraft or other direct or indirect extensions of credit. If one or more joint account owners owes us such indebtedness, we can use any funds in any account of any of the owners to pay such indebtedness, even if you didn't draw the item or receive the direct benefit. However, this contractual right of offset does not apply to any debt arising from a consumer transaction subject to the Federal Truth-in-Lend- ing Act in which an offset is prohibited by that Act, or in which this contractual right of offset requires specific disclosure and such disclosure was not given. Jurisdiction/Waiver of Jury Trial Any lawsuit regarding your account must be brought in an appro- priate court in the state where you opened the account and you agree to submit to the personal jurisdiction of that State. 9 " ..........~ __. '.,"'n""';':-.o.._..'_~..o;w~~- "". - ~~';;~"";";"_6"""-_ .....,-""'- YOU FURTHER AGREE TO WAIVE YOUR RIGHT TO A JURY TRIAL IN DISPUTES WITH THE BANK CONCERNING YOUR ACCOUNT. Waiver We reserve the right to waive the enforcement of any of the Rules with respect to a transaction or series of transactions. Such waiver would not affect our right to enforce any of the Rules with respect to other customers or our right to enforce any of the Rules with respect to later transactions with the same customer. Notices Written notices sent to us are not effective until receipt. Any written notice the Bank gives to you is effective when it is deposited in the U.s. mail and addressed to you at your statement mailing address. Notice to anyone owner of an account is notice to all owners of the account. Checking Accounts and Related Services We offer different types of checking accounts which are subject to various minimum balance and service charge requirements. If you have one of these checking accounts, you may also request and, if approved by us, obtain other services associated with your check- ing account These include overdraft protection, a line of credit, an ATM Card, a Visa" Check Card, telephone banking, pre-authorized transfers and many other services. Checking accounts will consist of two sub-accounts: a checking account and a reserve account. These accounts are treated as a sin- gle account for the purposes of certain record keeping, fees, min- imum balances, and paying items presented against the account. The periodic statement of activity on the account and any record of the account at any teller machine, will reflect the account as a single account and will not reflect the sub-accounts in any way. If you opened an interest-bearing checking account, your reserve account will earn interest at the current rate paid on the interest- bearing checking account. Federal regulations require the Bank to reserve the right to require at least seven days' written notice prior to withdrawal or transfer of any funds in an interest-bearing checking account and its related reserve sub-account. If you opened a non-interest-bearing account, neither sub-account will earn interest. The "threshold balance" is the designated amount generally needed to cover checks and other debits in the checking account. Any amount above the threshold balance will be automatically trans- ferred from the checking account into the reserve account. All access to funds will be through the checking account. In the event that your debit activity exceeds your threshold balance, we will auto- matically transfer from the reserve account the amount required 10 - - to cover your debit(s) and replenish the threshold balance. Upon the sixth transfer from the reserve account, we will transfer the entire reserve account balance back to the checking account for the remainder of the calendar month. At the beginning of the next month, we will automatically transfer the checking account balance in excess of your threshold balance back to the reserve account. You agree that these transfers will happen without your request, and will not be displayed on your monthly statement. Checking Accounts: In addition to the general rules explained in the previous sections, the following provisions also apply to your checking account. ": Overdrofts: If you write a check for more money than the collected balance in your account, you may be overdrawn. We have the right to return the check and to charge a fee for each item returned. We are not required to permit overdrafts but, if we do, you agree that we may charge interest at the highest rate permitted by law and/or a handling fee for the overdraft If your checking account is a joint account and becomes overdrawn, you authorize us at our discretion, to use funds from any of the accounts of any owner to pay the overdraft. If we determine that overdrafts against your account are excessive, we may charge special fees and/or close the account at our discretion. Stopping Pbyment on 0 Check: If you don't want us to pay a check you've written, you can order us to stop payment A verbal stop pay- ment order is only valid for 14 days unless confirmed in writing within that time. Your written stop payment order must include your name, your account number, the number and the date of the check, the name of the payee and the exact amount We may charge a fee for each stop payment order. You authorize us to accept a stop payment order from any authorized signer, ever if another authorized signer signed the check. Your stop payment order takes effect when it is recorded in your account records on file with us, which may be the next business day after your stop payment order is received. Your written stop payment order will be effec- tive for six months and may be renewed for another six months by writing us again. You agree to indemnify and to hold us harm- less for the amount of the check on which a stop payment is made and for all expenses and costs incurred by refusing payment of the check. Post Doted Checks: If you issue a post -dated check, we will not be liable if it is paid before the date of the check. Stole-Doted Checks: Payment of checks which are more than six months old may be rejected by the Bank, but the Bank is not required to dishonor such a check. If you want the Bank to dishonor a stale-dated check, you must issue a stop payment order for the check; otherwise, in most cases, a stale-dated check will be paid from your available balance. 11 t. '''"~~ '~<<.>,-,~~"""-,,j Check Safekeeping and Other Services: (a) If you utilize check safekeeping or any other system offered for the retention of checks, a copy of any check will be provided to you upon request subject to applicable fees. Original canceled checks are retained by the Bank for only 60 days after they post to your account, and thereafter only film or photocopies of checks are available. If for any reason the Bank cannot provide a copy of a check, the Bank's liability will be limited to the lesser of the face amount of the check or actual damages sustained by you. (b) Certain additional services not normally performed are available from the Bank. If other services are requested and provided, appropriate fees will be charged. Payment of Interest: For payment of interest on interest-bearing checking accounts, refer to the Savings and Money Market Deposit Accounts section. Withdrawals: Federal regulations require us to reserve the right to require not less than seven (7) days' written notice of your intention to withdraw funds on deposit from an interest-bearing checking account Direct Deposit Services For added convenience and protection, the Bank offers Direct Deposit services to your checking, savings and money market account. This service ensures the safe deposit of your Social Secu- rity, payroll, or other checks even when you are away from home. To Find Out Whether A Deposit Has Been Made: If you have arranged to have Direct Deposits made to your account at least once every sixty (60) days from the same person, company or govern- mental agency, you can call us to find out whether or not the deposit has been made at 1-800-533-4630 and follow the menu options. Documentation of Direct Deposits: If the Direct Deposit is made to a checking, savings, or money market account, you will receive a monthly statement. Overdraft Protection Open-End Line of Credit Agreement: An open-end line of credit, available for use as a loan or for overdraft protection, may be associated with your checking account at your request and upon approval of your credit application. All of our standard reg- ulations pertaining to checking accounts, including those regula- tions pertaining to service charges, shall apply to the checking account portion of any open-end line of credit account. The credit portion of such credit accou nt is governed by the terms of the agreements provided to you at the time you open your open-end line of credit account. 12 _... Savings Account Agreement: If you have savings overdraft protection, the Bank will transfer funds from the one savings account designated, in the amount necessary or available, to cover the overdraft and the associated fee for posted checks and other debits. Overdraft protection transfers are subject to the withdrawal limitations on savings accounts as described in the Savings and Money Market Accounts section. Savings and Money Market Deposit Accounts In addition to the information explained previously, the following provisions also govern your savings account: Withdrawals: You may withdraw money from your account in whole or in part in any amount at any time. However, we may at any time require that you give written notice of an intended with- drawal not less than seven (7) days before such withdrawal is made. We reserve the right to define excess withdrawal activity on savings deposit accounts, to restrict such withdrawals, and to charge fees for withdrawals which exceed established limits. Withdrawals by check from negotiable order of withdrawal accounts (Le., interest-bearing checking accounts), and from money market deposit accounts are subject to the same rules and regulations governing our checking accounts. Federal regulations on savings and money market accounts place limits on certain types of transactions. Although there are no lim- its on the number of transfers or withdrawals made in person or through ATMs, there are limits on certain other transfers and withdrawals. You may not make more than six transfers or with- drawals (including pre-authorized or automatic transfers, tele- phone transfers and overdraft protection transfers) per monthly statement or account processing cycle to another account you have at the Bank or to a third party, and no more than three of the six permitted transfers and withdrawals may be made by check or debit card to a third party. The date that the transfer or check is posted to the account determines the date of transfer or withdrawal. If you exceed the number of transactions permissi- ble by law, we reserve the right to charge your account and to change your account to a transaction account, to restrict the num- ber and type of transfers or withdrawals from the account, or to close the account. Payment of Interest: Interest payments, if not withdrawn, will bear interest the same as a deposit of cash. All interest rates applicable to deposit accounts are annual interest rates unless otherwise specified. Accounts closed between interest payment periods may not receive interest for the partial period. We may establish a min- imum balance or a minimum average balance for your account, below which a lower interest rate or no interest will be accrued or credited, or below which interest will be credited only at maturity. 13 I - ,~.,. - -~_..... . Stop Payments: The same rules governing stop payments for checking accounts apply to savings and money market accounts accessed by check. Time Deposit Accounts General Information: If you have purchased a Time Deposit Account, ( a .Certificate of Deposit" or .CD"), it matures at a spe- cific date. You have agreed, by opening this account, to keep the funds on deposit for the stated term. Your account matures at the end of the specified term. Unless otherwise stated in the Account Disclosure, your account is automatically renewable, but can be redeemed within a period of ten (10) calendar days beginning on and including the day after it matures. No interest will be paid on a Time Deposit after the maturity date if not automatically renewed. If you do not redeem your Time Deposit during this ten-day period, it will automatically renew for the term and interest rate in effect on the maturity date for that account classification. If your account classification is no longer offered, we reserve the right to substitute another account type. The date of renewal will determine the new maturity date. If your Time Deposit matures and is automatically renewed, the Bank reserves the right to change the method of interest rate determination. Payment of Interest: Interest payments, if not withdrawn, will bear interest the same as a deposit of cash. All interest rates applicable to deposit accounts are annual interest rates unless otherwise specified. Additional information regarding your interest payment may be noted on your Certificate of Deposit, if applicable. Early Withdrawal penalties: Your Certificate of Deposit may not be withdrawn before maturity, except with our consent If such a withdrawal is permitted, early withdrawal penalties will be assessed. Current early withdrawal penalties are outlined in the spe- cific Account Disclosure. Copies are available in our Bank offices on request. In the event of the death or legal incompetence of one of the owners of the account, the Certificate of Deposit may be redeemed without penalty. The following information pertains to the interest rates and balances used to calculate early withdrawal penalties: a. If you have an account with a fixed rate, the rate used to calculate the early withdrawal penalty will be the rate in effect as of the most recent renewal. b. If your account has a floating rate, the rate used to calculate the early withdrawal penalty will be the simple average of the rates in effect since the original date or the most recent renewal date. c. The balance as of the date of the early withdrawal will be the balance used to calculate the penalty if the entire amount is withdrawn. If only part of the balance is withdrawn, the penalty will be calculated on the amount that is withdrawn. 14 Protecting Your Privacy PRIVACY POLICY OF AllFIRST FINANCIAL INC. Our Promise: We always have and we always will protect your privacy. At Allfirst and our family of companies, your privacy is important to us. We recognize and respect your wish for privacy and we will continue to protect the information you share with us either in per- son, by telephone, mail, or the Internet. We always have and we always will protect your privacy. This Privacy Policy explains how we safeguard the information you have entrusted to Allfirst It also explains how we use this infor- mation to better provide you with products and services. Also included in our policy statement are a number of options for you to manage your personal information. . Safeguarding Your Information . Collecting Customer Information . Sharinglnfonnation . Maintaining Accurate Information . Telling Us Your Contact Preferences . Reducing Direct Marketing From Other Companies . A1lfirst Financiallnc. Family of Companies Safeguarding Your lnformation Keeping current and former customer information secure is one of our most important responsibilities. All of our employees and com- panies that are hired to work for us are held accountable for adhering to strict standards to prevent misuse of your personal information. We safeguard your information in the following ways: · Generally, employee access to your information is restricted to individuals using it to maintain your accounts and to consider your requests for additional services. · We emphasize the importance of confidentiality and privacy through training, operating procedures, and our "Business Principles and Ethics" policy. · We maintain security standards and procedures designed to protect your customer information and to prevent unauthorized access to such information. · We test and update our technology to improve the protection of information about you. Collecting Customer lnformation The primary reasons that we collect and maintain information about you is to allow us to serve you and to better administer your customer relationship, The categories of customer information that we collect are as follows: 15 ; ..L.:"-~_::'- -, · Information we receive from you on applications and other forms, such as your name, address. phone number, assets, income, other debt or insurability information. · Information about your transactions and account experience with us and with other companies in the Allfirst family, such as your account balance, debit card or ATM usage, check order or check stop payment request, and our responses or actions. · Information from a consumer reporting agency such as your credit history. · Information from other outside companies to verify information you have given to us such as your employment history, loan balances, or your property insurance coverage. · General information, such as demographic information, that is not used for determining credit approval, insurance, or employment eligibility. Sharing lnformation -lnformation Shared within Al1ftrst As a diverse financial services organization, the AJlfirst family of companies offers services such as banking, securities brokerage, insurance sales, and consumer and mortgage loans. For nearly 200 years, our customers have trusted us to safeguard their personal financial information. We pledge to continue to honor that trust. For a complete list of Allfirst companies, please see the section titled, "Allfirst Financial Inc. Family of Companies." By sharing customer information among the Allfirst family of companies, we can identify the products and services that may be of interest to you or are available to you because of the account relationships you have with Allfirst This sharing of information can save you time and money. Certain business lines or divisions within the Allfirst family of com- panies have more stringent rules in place regarding the ability to share information with affiliates. For example, if you maintain a trust or investment advisory relationship, any information regarding these relationships is not available to employees outside of our trust or investment advisory companies. Similarly, medical and health information related to your past or present physical health or condition that may be included in an insurance application is shared only with Allfirst employees who need it to process your application. Also, our contractual relationships with our customers may con- tain other information-sharing requirements or limitations that are applicable to different types of relationships. For instance, we pro- vide annual statements of condition to our customers who maintain individual retirement accounts with us. The statements combine information on the certificates of deposit and other savings related investments maintained through Allfirst Bank, with aggregate infor- mation regarding the value of securities or mutual fund invest- ments held in their IRA through Allfirst Brokerage Corporation. If 16 we did not have the ability to share information within the Allfirst family of companies, this convenience would not be available to our customers. lnformation Shared with Other Companies We share customer information (noted in section "Collecting Cus- tomer Information") as allowed by law with a select number of com- panies outside of the Allfirst Financial family. They either perform marketing services on our behalf or we have joint marketing rela- tionships with them. For example, we turn to other companies for services like letter mailings and new product research and devel- opment We maintain other relationships with select companies that offer specialized financial products or services,like consumer credit cards and insurance products. Although these companies are not owned by or affiliated with Allfirst, they work closely with us to meet your financial needs. lnformation Used to Service Your Accounts We use third parties to assist us in servicing some of our products (e.g. check printing, trust, and investment advisory). For instance, even though information regarding trust or investment advisory accounts is not shared within the Allfirst family of companies or with other companies, a third party service provider may have access to this information to service your account. These third party service providers are contractually bound to hold all customer information strictly confidential. Similarly, information about shareholders of ARK Funds is not accessible to third parties except to service providers and then only as necessary to make transactions, distribute statements and shareholder reports, and occasionally to inform shareholders of new ARK services. Any company outside of Allfirst that has access to customer infor- mation is required to agree to strictly safeguard the confidential- ity of this information. They are not allowed to disclose this information to anyone else or use this information in any way with- out our permission. In some cases, we may participate with other financial services companies to deliver products and services, like insurance, credit cards, mortgages, and investment products. When we do, you may be covered by the other company's privacy policy. By sharing information among the Allfirst family and with com- panies that work for us, we are able to provide you with suitable financial products and services that are: · delivered conveniently and promptly, and · based on your overall financial relationship with us. However, there are times that we may be legally required to disclose information about you, such as in response to a subpoena or to comply with a legally permitted inquiry by a governmental agency or regulator. We may also exchange your customer information with others to perform necessary credit checks, collect or report debts owed to us, protect our rights or property, per your request, or for other legally permissible purposes. Information is also shared 17 '. -.,.~~..........,,_.~'..;~.~,,_! with consumer reporting agencies. In accordance with standard banking industry practice, and allowed by federal and state law, Allfirst routinely provides data about customer loan repayment and other transactions to consumer reporting agencies and other financial institutions to prevent or reduce the risk of fraud. Maintaining Accurate lnformation We continually strive to maintain complete and accurate infor- mation about you and your accounts. If you believe that our records contain inaccurate or incomplete information about you, please let us know immediately. We will investigate the matter and take prompt steps to make appropriate corrections. Telling Us Your Contact Preferences Third-Party Marketing If you prefer, you may direct us not to disclose nonpublic personal information about you with nonaffiliated third parties, except as per- mitted by law. Additionally, you can choose not to re~eive notifi- cations about any offers made by telephone, mail or e-mail. Whatever your preferences, we will honor your requests. To tell us your pref- erences, contact us by calling 1-877-238-0353. Please allow up to four weeks for the change. If two or more customers jointly obtain a financial product or service from Allfirst ijoint customers), we will treat a do-not share instruction by one of the joint account customers as applying to that customer only. We will make an exception when the customer notifies us that he or she is acting on behalf of other joint customers on that account. We are committed to providing you with accurate, dependable, and timely account service. To do that, there will be times when we will contact you. These contacts may include following-up on a serv- ice request or mailing your account statement. However, we may include marketing materials in these statements. Reducing Direct Marketing From Other Companies If you want to reduce the number of offers you receive from companies outside the Allfirst family, write to the Direct Marketing Association [DMA): For advertising received by mail: Mail Preference Service c/o Direct Marketing Association PO Box 9008 Farmingdale, NY 11735-9008 For odvertising received by phone: Telephone Preference Service c/o Direct Marketing Association PO Box 9014 Farmingdale, NY 11735-9014 18 You need to include all information about each name that you want removed from these lists including name, address. phone number, social security number, and former name or address if these have recently changed. It may take up to 12 weeks for the DMA to make the change. Allfirst is not associated with the DMA and ('annot guarantee their actions. If you want to have your name removed from most pre-approved offers write to the following credit reporting agencies or call '1-888-567 -868B. Include your name, address. telephone number, and ~.ocial security number. Equifax, Inc. Options 1'0 Box 740123 Atlanta, GA 30374-0123 Experian Consumer Opt-Out !}01 West Bond Uncoln, NE 68521 Trans Union u.C's Name Removal Option PO Box 97328 .Jackson, MS 39288-7328 All1irst Financiallnc. Family of Companies Allfirst Financial is more than a bank. Our family of companies makes it possible for us to provide you with a variety of financial solutions quickly and conveniently. Banks Allfirst Bank Allfirst Financial Center National Association Allfirst Trust Company National Association Allfirst Trust Company of Pennsylvania National Association Brokerage and Investments Allfirst Brokerage Corporation Allied Investment Advisors Zirkin-Cutler Investments, Inc. ARK Funds and Annuities Insurance and Annuities Allfirst Annuities Agency Corporation Allfirst Insurance Corporation Allfirst life Insurance Corporation Electronic Banking 1. Card Services - ATM; Point-of-Sale; Automated Telephone Access; Internet Banking: AlM Card /V1S3<e Check Card / PIN Only An ATM Card or Visa Check Card (Card) allows you to make deposits, withdraw cash, make transfers between your checking and savings accounts and your line of credit accounts, obtain 19 account balances, and pay bills at our automated teller machines (ATMs), and to purchase goods or services from participating merchants. NOTE: The Visa Check Card is NOT a Credit Card. All merchant purchases made by the use of this card will be debited from your primary checking account. Through the automated telephone system, your Personalldenti- fication Number (PIN) and account number may be used with a TouchTone' telephone to transfer funds between checking and savings accounts, make payments to your line of credit from }' checking and savings accounts and obtain balance and transac- tion information. You may also make withdrawals, transfer funds between your checking and savings accounts and make balance I inquiries at any participating network ATMs. ~ The Allfirst Internet Banking Service allows you to enroll using your ATM or VisaeD Check Card and Personal Identification Num- ber (PIN), giving you access to some of your deposit and credit accounts. You can check balances, access transaction informa- tion, transfer funds and pay bills. For savings and money mar- ket accounts limited by Federal regulations to three or six withdrawals per monthly statement, please remember that Internet Banking transfers and bill payments will count toward those limits. To find out about Internet Banking accessibility, call 1-800-321-2640. Many account types are eligible for card services and the following provisions apply to all ATMMsa Check Card Cardholders: a. Upon approval of your Card, the Bank will issue you a plastic card. You may choose your own PIN, or the Bank will assign one if you request, for use with your checking or savings accounts and optional line of credit account The Bank reserves the right in our discretion to not issue or reissue a card to any customer or to invalidate a card through regular maintenance, or to terminate card usage for negligence or misuse. b. The use of your Card in an ATM or at a participating merchant, or the use of your account 'number and PIN via the automated telephone service, or the use of your card number and PIN to enroll in the Internet Banking Service constitutes your acceptance of the provisions of this Agreement regarding your checking, savings account and/or your line of credit account. c. You promise to respect the secrecy and confidentiality of your PIN and agree to guard its privacy. The use of your Card is ~ restricted to the individual to whom the Card is issued. To reduce I the possibility of someone using the Card without your permis- sion, DO NOT write your PIN on your Card, store the Card and PIN I together, or carry the PIN with you. DO NOT give your PIN to I anyone. including Bank employees. If you permit another . person to use your Card or PIN, you will be responsible for all the transactions conducted by that person or other persons with whom they share the Card or PIN. d. Deposits and payments through an ATM may be verified before the deposit or payment entry is made on our records. 20 e. The Card is our property. Unless prohibited by law, the Bank may restrict or terminate the use of the Card at anytime and you will return the Card to us. We may restrict use of the Card in our discretion for transactions involving, but not limited to, fraud, gambling, pornography, illegal drugs, or other activities of questionable legal validity. f. A Visa Check Card may not be used for any illegal transaction. g. We may amend the rules and regulations governing use of the Card from time to time, with reasonable notice to you. 2. Computer and other Types of Transfers In addition to the types of transfers described in the preceding para- graphs, the Bank periodically introduces new methods by which you may make funds transfers, such as through the personal com- puter. In some cases. you will receive a separate agreement and Reg- ulation E disclosure for the particular access device, containing details about the kinds of transfers available, any limitations on transfers, service fees, and other important information. 3. Foreign Exchange/Currency Conversion: If you use your Card for transactions in a currency other than U.S. dollars, the transactions will be converted to U5. dollars, generally using either a government-mandated rate, increased by one per- cent (1 %), or wholesale market rate in effect the day before the transaction processing date, increased by one percent (1%). If a credit is subsequently given for a transaction, it will be decreased by one percent (1 %). If the credit has a different processing date, then the exchange rate of the credit can be greater/less than that of the original transaction. The currency conversion rate on the day before the transaction processing date may differ from the rate in effect at the time of the transaction or on the date the transaction is posted on your account. You agree to accept the converted amount in U5. dollars. 4. Pre-Authorized Holds: When you use your Card at a point-of-sale location or when you use the Visa, or other network enhancement feature of the Card to obtain goods or services or to obtain cash, the merchant may attempt to obtain pre-authorization from us for the transaction. We place a four (4) business day hold on your account for the amount of the pre-authorization request (which may vary in some cases from the amount of the actual purchase, depending on the mer- chant's request). If the pre-authorization amount varies from the amount of the actual (posted) transaction, payment of the trans- action will not remove the hold, which will remain on the account until four (4) business days have expired. This hold may affect the availability of funds from your deposit account to pay checks or for other electronic transfers. We will not be responsible for damages or for wrongful dishonor or if any item is not paid because of the hold. 21 5. Bill Payment Note: All references to the "Service" reflect the bill payment service offered by Allfirst Bank. S.A Bill Payment Processing and Rules We use many of the following terms in this Bill Payment portion of our Agreement. The term "Payee" means the person or entity to whom you wish a bill payment to be directed; "Payment Instruction" means the information provided by you to the Bank for a bill payment to be made to the Payee (such as, but not lim- ited to, Payee name, Payee account number and payment date); "Payment Account" means your checking account from which all bill payments will be made; "Business Day" means Monday through Friday, excluding federal holidays; "Scheduled Payment Date" means the business day of your choice upon which your bill payment is scheduled to begin processing; "Processed Payment Date" means the business day your Payment Account will be deb- ited from your account; and, "Cutoff lime" means 12:05 a.m. (five minutes after midnight) Eastern lime on any business day and is the time by which you must transmit Payment Instructions to have them considered entered on that particular business day. The Bank uses a third party to provide the bill payment service to you, referred to as the "Bill Payment Service Provider", and you agree that the Bank may share information about your account with the bill payment service provider in order to complete pay- ments you have instructed or to resolve payment or posting matters. By providing us with the names and account information of those Payees to whom you wish to direct payment, you author- ize us to follow the Payment Instruction we receive through the payment system. When the Bank receives a Payment Instruc- tion, you authorize us to debit your Payment Account on the selected Scheduled Payment Date and remit funds to the Payee on your behalf. While it is anticipated that most transactions will be processed and completed on the next business day after your Scheduled Payment Date, and arrive approximately five business days after your selected Scheduled Payment Date, it is understood that due to cir- cumstances beyond the control of the Bill Payment Service Provider, particularly delays in handling and posting payments by slow responding Payees or financial institutions, some transactions may take a day or even a few days longer to be credited by your Payee to your Payee account. For this reason, it is necessary that all Scheduled Payment Dates selected by you be no less than five business days before the actual payment due date, not the late date and/or a date in the grace period. Payment instructions entered after the Cutoff Time or on non-business days will be con- sidered entered on the next business day. If you properly follow the procedures described herein, and we fail to send a payment according to the Payment Instructions received, the Bank's Bill Pay- ment Service Provider will bear responsibility for late charges ($50 maximum). In any other event, including, but not limited to, choosing a Scheduled Payment Date less than five business days 22 before the actual due date, the risk of incurring and the respon- sibility for paying any and all late charges or penalties shall be borne by you. ~ A bill payment is a "Pending Payment" starting from the time you enter Payment Instructions until the payment is "In Process." A bill payment is "In Process" starting on the Scheduled Payment Date and continuing through the next business day. A bill payment is considered "Completed" on the next business day after the Processed Payment Date. You may cancel or edit any Pending Pay- ment (including recurring payments) by following the directions in the online Service. There is no charge for canceling or editing a Pending Payment. We may not have a reasonable opportunity to act on any stop payment or cancellation order given after a pay- ment is In Process and it is not possible to stop or cancel a pay- ment which is completed. If you desire to cancel or stop any payment which is In Process you must call an Allfirst Internet Banking Specialist at 1-800-321-2640. Although we will make every effort to accommodate your request we will have no liability for failing to do so. Stop payment requests sent to us via electronic mail or in any other manner will not reach us in time for us to act on your request Such stop payment requests will be accepted only if we have reasonable opportunity to act on such requests. If you call, we may also require you to present your request in writing within 14 days after you call. '> The Bank's Bill Payment Service Provider will use its best efforts to make all your payments properly. However, the Bank shall incur no liability if it is unable to complete any payments initiated by you through the bill payment service because of the existence of any one or more of the following circumstances: 1. If, through no fault of ours, your Payment Account does not contain sufficient funds to complete the transaction or the transaction would exceed the credit limit of your overdraft account; 2. The bill payment processing center is not working properly and you know or have been advised about the malfunction before you execute the transaction; 3. The Payee mishandles or delays a payment sent by the Bill Payment Service Provider; 4. You have not provided the Bank with the correct name, phone number or account information for the Payee; or, 5. Circumstances beyond the Bank's or its service provider's con- trol (such as, but not limited to, fire, flood, or interference from an outside force) prevent the proper execution of the transac- tion and the Bank or its provider has taken reasonable precau- tions to avoid those circumstances; 6. Withdrawals from your account(s) have been prohibited by law, a court order such as a garnishment, or other dispute or legal process; 23 7. Your computer, Internet service provider, or browser was not working properly, and this problem should have been apparent to you when you attempted to authorize a banking transaction or payment. Provided none of the foregoing seven exceptions are applicable, if the service provider causes an incorrect amount of funds to be removed from your Payment Account, or causes funds from your Payment Account to be directed to a Payee which does not com- ply with your Payment Instructions, the service provider shall be responsible for returning the improperly transferred funds to your Payment Account and for directing to the proper Payee any previously misdirected transactions. 5.B Prohibited Payments The following payments are prohibited through the Bill Payment Service: 1. Tax payments, 2. Court ordered payments, and 3. Payments to Payees outside of the United States. The foregoing shall constitute the Bank's and its service provider's entire liability and your exclusive remedy. In no event shall either the Bank or its service provider be liable for any direct, indirect, spe- cial, incidental, consequential, or exemplary damages, including lost profits (even if advised of the possibility thereof) arising in any way out of the installation, use or maintenance of the equipment, software, and or the service. 5.C Exclusions of Warranties The bill payment service and related documentation are provided 'as is' without any warranty of any kind, either expressed or implied, including, but not limited to, the implied warranties of mer- chantability and fitness for a particular purpose. 5.D Password and Security You agree not to give or make available your Internet Services Username, Card Number, Password or PIN or other means to access your account to any unauthorized individuals. You are responsible for all bill payments you authorize using the Bill Payment Service. If you permit other persons to use your Inter- net Services sign on or other means to access your account, you are responsible for any transactions they authorize. If you believe that your Internet Services Password or other means to access your account has been lost or stolen, or that someone has made an attempt to use the bill payment service without your consent, or has transferred money without your permission, you must notify us at once by calling 1-800-533-4630. In an effort to provide the highest degree of confidentiality and security, the Bank requires the use of browsers that provide 128-bit encryption. The higher the level of encryption, the harder it is for unauthorized people to read information. Commercial off- the-shelf browsers typically support 4O-bit encryption, however 24 many browser suppliers (Netscape and Microsoft) offer special 128-bit encryption versions, available for download from their respective web sites. The Bank requires that customers protect their valuable financial information by using the most secure encryption possible. S.E Fees Accounts enrolled in bill payment will be charged the Online Bill Payment Fee as shown on your Account Disclosure and on the bill payment terms and conditions displayed online at the time of enrollment. Any fees will be charged regardless of whether the bill payment service was used during the billing cycle. You agree to pay such charges and authorize the Bank to charge your designated Payment Account for these amounts and any additional charges that may be incurred by you. Any fees associated with your stan- dard deposit accounts will continue to apply. You are responsible for any and all telephone access fees and/or Internet service fees that may be assessed by your telephone and/or Internet service provider. S.F In the Event a Transaction is Returned In using the bill payment service, you are requesting the Bank and its Bill Payment Service Provider to make payments for you from your Payment Account If we are unable to complete the transaction for any reason associated with your Payment Account, such as, insufficient funds in your Payment Account to cover the transaction, the transaction may not be completed. 5.G Alterations and Amendments The Rules, applicable fees and service charges may be altered or amended by the Bank from time to time. In such event, the Bank shall send notice to you at your address as it appears on the Bank's records. Any use of the Bill Payment Service after we send you a notice of change will constitute your agreement to such change(s). Further, the Bank and service provider may, from time to time, revise or update the program services, and/or related material, which may render all such prior versions obsolete. Consequently, we reserve the right to modify the service to terminate all prior ver- sions of the programs, services, and/or related material and to limit access to the bill payment service provider's more recent revisions and updates. S.H Changes or Termination You agree to notify Customer Service in writing at least 10 business days in advance of any change in your Payment Account or your banking status. In the event you wish to discontinue the bill pay- ment service, you must contact the Internet Banking Customer Service Department in writing. Such notice of service discontinu- ance must be supplied 10 days prior to the actual discontinuance date and must be sent to: ALLFI RST 499 Mitchell Street - Mailcode 501-440 Millsboro, DE 19966 25 __J.... The Bill Payment Service Provider will terminate service to you after 90 days of inactivity, which means no payments made over the pre- vious 90 days and with no future payments pending. This discon- tinuation will only apply to those customers where the bill payment fee is zero. The Bank or Bill Payment Service Provider may termi- nate service to you for other reasons at any time as deemed appro- priate. Neither termination nor discontinuation shall affect your liability or obligations under these Rules. 5.1 Payee Limitation The Bill Payment Service Provider reserves the right to refuse to pay any Payee to whom you may direct a payment. The Bill Pay- ment Service Provider is obligated to notify you promptly if it decides to refuse to pay a Payee designated by you. This notifi- cation is not required if you attempt to make a prohibited payment under the Rules. 5J Information Authorization Your enrollment in the bill payment service may not be fulfilled if the Bank or the Bill Payment Service Provider cannot verify your iden- tity or other necessary information. Through your enrollment in the Service, you agree that the Bank and the Bill Payment Service Provider reserves the right to request a review of your credit rat- ing at its own expense through an authorized bureau. In addition, you agree that the bill payment service provider or the Bank reserves the right to obtain financial information regarding your account from a Payee or financial institution to resolve payment or posting problems. 5.K Disputes In the event of a dispute regarding the bill payment service, you, the Bank and the Bill Payment Service Provider agree to resolve the dispute by looking to these Rules. You agree that the Rules are the complete and exclusive statement of the agreement concerning the bill payment service, which supersedes any proposal or prior agree- ment, oral or written, and any other communications between you and us concerning the bill payment service. If there is a con- flict between what an employee of the Bank says and the terms of these Rules, the terms of the Rules will prevail. 6. FEDERAL REGULATIONS These disclosures summarize your rights and responsibilities under the Electronic Fund Transfer Act Please read them and keep them in a convenient place. The Bank discloses the following informa- tion to customers who participate in "Electronic Fund Transfers" (as defined in the Federal Electronic Fund Transfer Act) with the Bank as required by the Federal EFT Act. The information provided is intended to be all-inclusive on electronic fund transfer services offered by the Bank, and some specific services described below may not apply to your account. 6.A CONSUMER UABIUTY Tell us AT ONCE if you believe your Card and/or PIN and/or Inter- net Services Password has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You could lose all the 26 money in your account (plus your maximum overdraft line of credit). If you believe your Card and/or PIN and/or Internet Services Password has been lost, stolen or used without your permission and you tell us within 2 business days after you learn of the loss, theft or misuse, you can lose no more than $50 for the unauthorized use. If you do NOT tell us within 2 business days after you learn of the loss, theft or misuse of your Card and/or PIN and/or Internet Ser- vices Password, and the Bank can prove the Bank could have stopped someone from using your Card and/or PIN and/or Internet Services Password without your permission if you had told us, you could lose as much as $500. Also, if your statement or Internet Banking transaction record shows transfers that you did not make, tell us at once. If you do not tell us within 60 days after the statement was mailed to you, you may not get back any money you lost after the 60 days if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason (such as a long trip or a hospital stay) kept you from telling us, the Bank will extend the time periods. Failure to report an unauthorized transfer or error within 1 year of the mailing of the first statement containing unauthorized or erroneous transfers means you will lose your right to recover any loss. WARNING: As part of the security system for the protection of your Card and/or PIN, the Bank may use hidden cameras and other security devices to determine who is using a Card at an ATM. Wrongful use of a card may result in prosecution. 6.B CONTACT IN THE EVENT OF UNAUTHORIZED TRANSFER If you believe that your Card and/or PIN and/or Internet Services Password has been lost or stolen or that someone has transferred or may transfer money from your account without your permission. call 1-800-533-4630 or write: ALLFIRST Error Resolution - Mail Code 101 -825 P.O. Box 17033 Baltimore, MD 21297-0529 If unauthorized activity occurs with the Card, you agree to coop- erate during the investigation and to complete an Affidavit of Unauthorized ATM Card or Visa Check Card Transactions form. The Bank may require your personal interview and/or filing of a police report. Failure to cooperate by providing the Bank information necessary for the investigation of a claim, may result in the Bank terminating its investigation. D.C BUSINESS DAYS: For purposes of these disclosures, our Jusiness days are Monday through Friday. Bank holidays are not ncluded. 27 6.D TRANSFER TYPES AND UMITATIONS 1. Account Access You may use your ATM Card / Visae Check Card and PIN (if required) at various terminals to: · Withdraw cash from your checking or savings account{s). · Make deposits to your checking or savings account(s). . Transfer funds between your checking and your savings account{s) and to your credit line account. · Pay bills normally accepted in our bank offices. · Withdraw up to $100 against the daily aggregate of ATM deposits. . Obtain an advance on your existing line of credit (if you qualify for this service). · Obtain an interim statement on some types of accounts. · Perform account balance inquiries on some types of accounts. · Pay for goods and services at merchant locations that have agreed to accept the Card. The use of a Card to purchase goods and services at merchant locations or to withdraw cash will constitute a simultaneous withdrawal from and/or demand upon your account, even though the transaction may not actually be posted to your account until a later date. Credits to your account from a merchant (i.e returns) will be posted to your account upon receipt from the merchant. Transactions will be posted to your account in the order and with the same legal effect as checks drawn on the account. You do not have the right to stop payment on any transaction originated by the use of a Card and/or PIN. Automated Telephone System Account Number and PIN required. · Transfer funds between your checking and your savings account(s) and to your credit line account. · Verify deposits, checks paid and other transactions. · Report a lost or stolen Card. · Perform account balance inquiries on some types of accounts Internet Banking Internet Services Username and Password required. · Transfer funds between your checking and your savings account(s) and to your credit line account. . Create future funds transfers between your checking and your savings account(s) and to your credit line account . Pay bills directly from your checking or money market account for amounts and on days that you initiate through the online bill payment service. 28 . Obtain an online statement on some types of accounts. . Obtain online check images. . Perform account balance inquiries on some types of accounts. 2. Limitations on frequency of transfers You may make an unlimited number of cash withdrawals from automated teller machines each day. You may make an unlimited number of point of sale purchases each day. You may make an unlimited number of telephone transfers through our automated telephone system each day. 3. Limitations on dollar amounts of transfers For security reasons, there are limitations on the total amount of cash that you may withdraw per day from automated teller machines and on purchases from participating merchants. You may transfer up to the available balance of your accounts through the automated telephone system or internet banking. 4. Limitations on Interl'!et Banking transfcrs bctwccn accounts You may only make transfers between accounts for which your Card has been authorized. 6.E FEES The Bank may charge a fixed amount for direct debits to your account and/or average or minimum balance charges. If we decide to change or increase charges for electronic fund transfer services from those in effect and given to you at the time you ini- tiated the service, the Bank will mail you reasonable notice to your last known address. Our current charges are outlined in the Account Disclosures. Copies are available in our bank offices on request. When you use an ATM not owned by us, you may be charged a fee by the ATM operator or any network used (and you may be charged a fee for a balance inquiry even if you do not complete a fund transfer). 6.F CONFIDENTIAUTY You agree that the Bank may disclose information to third parties about your account or the transfers you make: 1. Where it is necessary for completing transfers, or correcting or resolving questions about your transactions. 2. In order to verify the existence and condition of your account for a third party, such as a credit bureau, payee or merchant, or 3. In order to comply with government agency or court orders, or 4. When necessary, to Visa U.5A, its members, or their respective contractors for the purpose of providing Emergency Cash and Emergency Card Replacement Services, or 29 . ....J..:.... ., - ',. ~., ':",~'"",:~ "..;:l:.,...",,~L:..~ A"-"!!ti"~~Yd-~SJ;:':~,:_>.."~ . 5. If you give us your written permission 6.6 DOCUMENTATION 1. Terminal Transfers - You can get a receipt at the time you make any transfer to or from your account using one of our automated teller machines. 2. Pre-authorized Credits - If you have arranged to have direct deposits made to your account at least once every 60 days from the same person or company, the person or company making the deposit will tell you every time they send us the money. You can call us at 1-800-533-4630 to find out whether or not the deposit has been made. 3. Periodic Statements - You will get a monthly account statement (unless there are no transfers in a particular month. In any case you will get the statement at least quarterly). 4. Passbook account where the only possible electronic fund trans- ': fers are pre-authorized credits - if you bring your passbook to . us. we will record any electronic deposits that were made to your account since the last time you brought your passbook in. 6.H PRE-AUTHORIZED TRANSFERS (PATs): You may authorize us to transfer any or all of your funds in an account at the Bank to another account which you own at the Bank. or to third parties of your choosing. Your order may be on a one- time basis. on a periodic basis. or on a regularly recurring basis in' amounts you specify. Your written authorization may be required . for automatic pre-authorized transfers which move funds in a set . amount on a regular basis. . . 1. Right to Stop Payment and Procedure for Doing so If you have told us in advance to make regular PATs from your account and you wish to stop any of these payments, call . 410-244-4300 or 1-800-533-4630, or write: Allfirst Stop Payment - Mailcode 501-220 25 South Charles Street Baltimore MD 21201 Call or write us in time for us to receive your request 3 business days or more before the payment is scheduled to be made. If you call, we may also require you to put your request in writing and get it to us within 14 days after you call. We will charge you for each stop payment order you give. Our current charges are out- lined in the specific Account Disclosure. Copies are available at our Bank offices upon request 2. Notice of Varying Amounts: If these regular payments may vary in amount, the person you are going to pay will tell you, 10 days before each payment, when it will be made and how much it will be. (You may choose instead to get this notice only when the payment would differ by more than a certain amount from the previo~' payment, or when the amount would fall outside certain limits that you set.) 30 ~/.AJ~'.~;,:,_,.~.c,. .... 3. Liability for Failure to Stop Payment of Pre-Authorized Transfer: If you order the Bank to stop one of these payments 3 busi- ness days or more before the transfer is scheduled, and the Bank does not do so, the Bank will be liable for your losses or damages. 6.1 FINANCIAL INSTITUTION'S LIABILITY If we do not complete a transfer to or from your account on time or in the correct amount according to our agreement with you, the Bank will be liable for your losses or damages. However, there are some exceptions. The Bank will not be liable, for instance: (1) If, through no fault of ours, you do not have enough money in your account to make the transfer. (2) If the transfer would go over the credit limit on your overdraft line (if you have one). (3) If the automated teller machine where you are making the transfer does not have enough cash. (4) If the terminal, system or push button telephone that you are using to perform the transfer was not working properly and you knew about the breakdown when you started the tra nsfer. [5) If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken. [6) There may be other exceptions stated in our agreement with you. ISJ ERROR RESOLUTION In case of errors or questions about your Electronic Transfers, call 1-800-533-4630 or write: Allfirst Error Resolution - Mail Code 101-825 P.O. Box 17033 Baltimore, MD 21297-0529 <IS soon as you can, if you think your statement or receipt is wrong or if you need more information about a transfer listed on the state- ment or receipt The Bank must hear from you no later than 60 days after we sent you the ARST statement on which the problem or error appeared. (1) Tell us your name and account number. (2) Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information. . (:1) Tell us the dollar amount of the suspected error. II' you tell us orally, we may require that you send us your complaint or question in writing to the above address within 10 business days. 31 We will determine whether an error occurred within 10. business days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45- days to investigate your complaint or question. If we decide to do this, we will credit your account within 10" business days for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. We may ask you to put your complaint or question in writing. If we do not receive it within 10 business days. we may not credit your account We will tell you the results within three business days after com- pleting our investigation. If we decide that there was no error, we will send you a written explanation. You may ask for copies of the documents that we used in our investigation. We may revoke any provisional credit provided to you if we find that an error did not occu r. . The applicable time is 20 business days in place of 10 business days for completing an investigation if the notice of error involves an electronic fund transfer to or from the account within 30 days after the first deposit to the account is made. - The applicable time is 90 days in place of 45 days for completing" an investigation if the notice of error involves an dectronic fund transfer that: a. Was not initiated within a state b. Resulted from a point-of-sale debit card transaction; or. ;,\ c. Occurred within 30 days after the first deposit to the. account was made. Special note for Visa Check Card Purchases: If you have a problem with the quality of goods or services that you purchased with a debit card, and you have tried in good faith to cor-'. rect the problem with the merchant, contact us for further assis- tance. Please understand that Allfirst has no financial liability in this situation. Account Ownership As explained on Page 4, the Bank uses a system of contract codes to . explain the legal relationship between the Bank and persons listed on the account Please read your contract code (found on your Account Agreement! and its related explanation carefully. In Maryland and Virginia, the law permits account owners to des- ignate a Payable on Death Beneficiary, namely a person or persons to receive the money in your accounts upon the death of all own- -: ers. These payable on death beneficiaries are identified with a code of PODBEN which is explained in the following listing. All owners . of a joint account must agree to the designation or deletion of the PODBENs. For accounts established at First National Bank of Mary7. land or York Bank and Trust prior to August 7, 1998, if you named; PODBENs on a checking account or any savings accounts relat~ to that checking account, the designation will apply to all accounts. 32 in that relationship. After August 7. 1998, PODBEN designations must be named for each account number individually. Appointing a Convenience Person: You may appoint another person (an attorney-in-fact) to act on your behalf and conduct transactions on your account. This can be done by providing us with a copy of a written power of attorney drawn by your inde- pendent attorney in a form satisfactory to us or, in Maryland, by your designation of a Convenience Person (CovPr) on your account records at the Bank. If you appoint a CovPr it means that the CovPr may act on your behalf to deposit to, withdraw from or close your account, to sign checks and documents on your behalf and to receive information or make most changes to the account. This power to act for you will be a 'durable' power of attorney which means the CovPr's power to act will continue even though you may become disabled or incompetent to handle your own affairs. A CovPr's authority to act can be canceled at any time by any owner of the account by notifying the Bank in writ- ing and allowing us a reasonable time to update our records. The CovPr does not inherit the money in the accounts upon the owners' deaths, unless the CovPr is also named as a payable on death beneficiary. The CovPr's creditors cannot garnish the funds in the account to pay debts owed by the CovPr. If you appoint a CovPr, please be sure to instruct your branch representative as to which specific accounts you want the Convenience Person to be able to access. Accounts Not Subject to Maryland Multiple Party Account Law In Maryland, accounts with multiple owners which were not opened or revised after September 27, 1993, are not covered by Md. Financial Institutions Code Section 1-204. Such accounts are titled as follows: Name 1 in trust for self and Name 2, Name 3, as joint owners, subject to the order of either (any) party, balance upon death of one to belong to the survivor(s). Each owner may endorse, deposit, withdraw and conduct business with the account, unless restricted by contract. Contract Codes ADM Administrator! Administratrix Identifies the person who has been appointed by the Regis- ter of Wills in the Commonwealth af Pennsylvania and other states to conduct affairs for the estate of a deceased person. This appointment is usually made in the absence of an existing will. AND Joint Tenants with Right of Survivorship AND all oWners must sign for transactions Each owner Uoint tenant) is considered to own the full bal- once in a Certificate of Deposit account and upon the death 33 . :. ,:'. ~..'"J~~ ~~._., of one of the owners the bolance in the account belongs to the survivor{s). To conduct withdrawals, make changes or close the account, all owners must sign. In Maryland, these accounts are governed by Md. Ann. Code, Financiallnstitu- tions Sec. 1-204, and in Virginia by Code of Virginia Title 6.1 Section 125.1 etc., or the applicable laws of the state in which the account is opened. Effective November 1998, this contract type may only be established on Certificote of Deposit Accounts. COVPR Convenience Person (permitted under Ma'Yland law only) A convenience person is oppointed by the occount owner{s) as a limited, durable power of attarney. This means the power is limited to the accounts designated by the owner{s) and that the power continues in effect even though the owner{s) become mentally incompetent The convenience person may deposit or withdraw money. make some changes to the account, and receive information about the account. However. the conven- ience person is in a position of trust to the account owner{s) and should not withdraw the money for his or her own personal use. The convenience person is not entitled to the money in . the account when the account owner dies. Any account owner can remove or revoke the convenience person at any time by .. notifying the Bank in writing. Accounts which name a con- . venience person are governed by Md. Ann. Code, Financial' Institutions Sec. 1-204. .. COVPR/PODB Convenience Person and Payable on Death Beneficiary (permitted under Ma'Yland law only) This identifies 0 person who has been appointed by the owner{s) of the account as both 0 Convenience Person and is nomed as a Payable on Death Beneficiary. These accounts are governed by , Md. Ann. Code, Financial Institutions Sec 1-204. CUS Custodian Identifies the adult who holds funds in trust for a child. Most. commonly used to identify the adult on a Uniform Transfers to Minors Act account Only the custodian is authorized to conduct activity on the account DCUTMA Minor under District of Columbia Uniform Transfers to Minors Act Identifies a minor child under the District of Columbia Uniform Transfers to Minors Act DUTMA Minor under Delaware Unifonn Transfers to Minors Act Identifies a minor child under the Delaware Uniform Transfers to Minors Act. 34 _~...~10""_~>- ESC AGENT Escrow Agent Identifies the person who has been oppointed authorized signer on funds held in escrow. EST OF Estate of Identifies the name of the person who has died. EXR Executor/Executrix Identifies the person or persans who have been named in the will to conduct affairs for the estate of a deceased person and to ~hom Let~ers. Testamentary have been issued by the Register of Wills In the Cammon wealth of Pennsylvania or other state. FBO/FOR For Benefit of/For A person or organization identified with this code is the benefi- ciary of funds in a type of trust account, but does not have the a~thority to withdraw them. In Pennsylvania, under an unwritten "Simple" or "lmtotive" trust situation, also re~ to as an "In Trust For" (ITF) account, a maximum of two beneficiaries are permit- ted by Pennsylvania law. Upon the death of the last surviving trustee of a tentative trust, funds in the account will be paid to the then living beneficiaries in equal shares, and if no beneficiaries are living, funds in the account will be paid to the estate of the last trustee to die. A beneficiary of a tentative trust is not entitled to money from or information about the account until the death of all owners/trustees. GDN Guardian Identifies the person who has been appointed legal guardian over the property of another person (either a minor or a person disabled or incompetent). lNCMP Incompetent Identifies a person, legally determined by a court, who lacks the stable mental condition to conduct his ar her own affairs. This person may not withdraw money from the account An original or certified copy of the caurt order must be on file, lNCMP U/C/O Incompetent. Under Court Order Identifies a person, legally determined by a court, who lacks the stable mental condition to conduct his or her own affairs and for whom money is held by a guardian or trustee subject only to Withdrawal under the terms stated in the court order or upon further order of the court. This person may not with- draw money from the account An original or certified copy of the court order must be on file. 35 JTNOS Joint Tenant NO SURVIVORSHIP (Virginia only) Identifies each of two or mo~ owners of an account During their lifetimes, each of the owners hove the right to moke with- drawals and deposits, receive information about the account, and make some changes to the account. At the death of one owner. the funds in the account belong to the estate of the deceased and to the surviving owners, in the same proportions as they made deposits before death. J1WROS Joint Tenants with Right of SUTVivorship Identifies each of two or more owners of an account. Each owner has the right ta deposit, withdraw, close, receive information or make some changes to the account unless a restriction has been placed on the occount In the event of death of one of the joint owners, the funds belong to the surviving owner(s). Once a joint account is apened, one owner connot ~move another from the title of the account without the written consent of the owner whose name is to be removed. In Maryland, these accounts are governed by Md Ann. Code, Rnanc:iallnstitutions Sec. 1-204 and in Virginia by Code of Virginia Title 6.1 Section 125.1, or the applicable laWs of the state where the account is opened. MNR Minor A child who has not yet reached the legal age of adulthoad. MNRUCO Minor, under Court Order Identifies a child for whom money is held by a guardian or trustee subject only to withdrawal under the terms stoted in the court order or upon receipt of a valid court order. Original or certified copy of the court order must be on file. MUTMA Minor under Maryland Unifonn Transfers to Minors Act Identifies the child for whom money is held in trust under the Maryland Uniform Transfers to Minors Act. The child is nat permitted to make withdrawals from the account but at age 27 can demand that the custodian make money in the account available to the child. OR Joint Tenants with Right of Survivorship Identifies each of two or more owners of an account. Each owner has the right ta deposit withdraw, close, receive infor- mation or make some changes to the account unless a restric- tion has been placed on the account In the event of the death of one of the joint owners, the funds belong to the surviving owner(s). 36 Once a joint account is opened, one owner cannot remove another from the title of the account without the written consent of the owner whose name is to be removed. At First National Bank and York Bank as of faff 7995, this cade is issued only for Time Deposit accounts. At Dauphin Bank, Valley Bank, Bank of Pennsylvania and Farmers Bank, as of November 7998, this code is only issued for Time Deposit accounts. OWNER Sole Owner of the Account Identifies the one person who owns the funds in the account. Upon this persons death, money in the account wiff be poid to his/her estote unless a PODBEN (when permitted by law) hos been named. Only the OWNER may deposit withdraw, close, change or receive informotion on the account unless a POA or COVPR has been named. POA Power of Attorney Identifies the person who is appointed under a Pawer of Attorney. also coffed the attarney-in-fact This person is named in either the Banks written power of attorney form or one drawn by the account owner's lawyer, if in a form acceptable to the Bank. The POA may withdraw money. close the account make deposits, sign checks and documents, receive informa- tion and make some changes to the account in place of the owner. The Bank's written power of attorney form wiff be a "durable" power of attorney, which means the attorney-in- facts power to act will continue even though the account owner may become disabled or incompetent ta handle his/her own affairs. An attorney-in-fact's authority to act can be cancelfed at any time by the account owner notifying the Bank in writing and alfowing us a reasonable time to update our records. POA/PODB (Ma'Yland and Virginia only) Power of Attorney and Payable on Death Beneficiary Identifies a person who has been named as both a Power of Attorney and a Payable on Death Beneficiary on someone elses account. PODBEN Payable on Death Beneficiary (Permitted under MaTYland and Virginia law only) Identifies a person who is named to receive money in the account after all owners have died. Upon the death of the last surviving owner. funds in the account will be paid to the then living PODBENs in equal sha~s, and if no PODBENs are living, funds in the account will be paid to the estate of the last owner to die. The PODBEN is not entitled to money from or information about the account until the death of all owners. The PODBEN can be revoked at any time by the owners of the account Accounts in Maryland which name a PODBEN are governed by Md. Ann. Code, Rnancial lnstitutions Sec. 7-204 and 37 such accaunts in Virginia are governed by Code of Virginia Title 6.1 Section 125.1 etc. P/R Personal Representative Identifies the person or persons who have been appointed under state law. through "Letters of Administration" or under a document called "Letters Testamentary" to conduct affairs for the estate of a deceased person. PS1GN Parent Signature Indicates the Parent Signer under a JUNIOR SAVER account pre- viously established at Washington Federal Savings Bank. Both the parent's and child's signatures are required on all trans- actians, but the child is the only owner of the funds in the account. PUTMA or PAUTMA Minor Under Pennsylvania Uniform Transfers to Minors Act Identifies the child for wham money is held in trust under the Pennsylvania Uniform Transfers to Minors Act The child is not permitted to make withdrawals from the acroun~ but at age 21 can demand that the custodian make money in the account available to the child. REP PAYEE Representative Payee Identifies the person appointed in trust to receive another person's (the beneficiary's) social security checks or other fed- eral or state paid money. Only the Representative Payee con withdraw from the account TRT Trustee Identifies a person who has contral over money in trust for someone else. The trustee is the authorized signer on the account but should only' use the maney for the intended beneficiary or purpose. TRTIEN Owner ITrustee under a Tentative Trust [also referred to as an "In Trust For" (lTF) account] (available in Pennsylvania only) Identifies the owner/grantor/trustee(s) under an unwritten "simple" or "tentative" trust situation, also known as a Totten Trust. Prior ta fall 1995, the York Bank records identified these accounts with the terms "/TF" or "In Trust For~ For accounts opened prior to November 1998 at Dauphin Bank or its related bank divisions, this type account was also identified with the des- ignatian "ITF" or "In Trust For~ Under the Bank's current system, the owner. grantor or trustee of the account is identified with the code TRTTEN, as the trustee under a tentative trust. These 38 accounts are governed by Penna Statutes Annot, Title 7. Section 605. For the owner/trustees (TRTTfNs) under a tentative trust either may conduct transactions on the account separately. unless the account is designated on the Bank records as all owners/trustees must sign~ In the event of the death of one of the joint TRTTENs, the funds belong to the surviving TRTTEN(s). Upon the death of the last surviving TRTTEN, funds in the account will be paid to the then living beneficiaries in equal shares, and if no beneficiaries are living, funds in the account will be paid to the estate of the last TRTTfN to die. A maximum of two beneficiaries are permitted by Pennsylvania law for a ten- tative trust. A beneficiary is not entitled to money from or information about the account until the death of all owners/gran tors/trustees. TRTSMP Trustee under a Simple Trust (Not available in Pennsylvania) The Trustee is the only authorized signer under a "simple trust' situation. When the trustee dies, the money in the account belongs to the beneficiary named on the account These accounts are governed by Md. Ann. Code, Financial Institutions Sec 1-204 when established thraugh a branch locoted in Maryland and governed by Code of Virginia Title 6.1 Section 125.1 etc. when established thraugh a branch located in Virginia or the applicable lows of the state where the account is opened. TRT 13 Trustee under Md. Annotated Code Estates and Trust Article 13 (Available in Mal)'land only) Identifies a person appointed as trustee over funds for a child under the special circumstances of Md. Code Estates and Trust Article 13. The trustee may not withdraw funds unless (s)he obtains a court order. At age 18, the minor may withdraw the funds without a court order. In the event of the death of the trustee, the court should appoint a substitute trustee until the child reaches age 1 B. U/w/O Under will of Identifies the name of a deceased person who created a trust fund in his/her will. VUTMA Minor child under the Virginia Uniform Transfers to Minors Act Identifies the child for whom money is held in trust under the Virginia Uniform Transfers to Minors Act. The child is not permitted to make withdrawals from the accoun~ but at age 18 or 21 (as indicated) can demand that the custodian make money in the account available ta the child. 39 " \ l:\ Manufacturers and Traders Tmst Company EXHIBIT J-B- .. \ ..~="r~' r .'" "':___""" J ~ ~ . ,..,=. TABLE: OF CONTENTS [i\TR( lDUCTION I kfi 11 !tl( 'IlS of Some Terms ..................................................... 1 (;O\"~mll1g DOCllmcnts ........... .................................................... 1 Kinch of Accounts ........................................................................ 1 ~' AI L KINDS Of DEPOSIT ACCOUNTS ^ laking Df Deposits ...................................................................... 2 Deposit of Checks and Othcr Items .............................................. 2 I imitations on Deposits ................................................................ 2 Yerificarion of Checks and Other Noncash Items Receivcd for Deposit ........................................ 2 (:ollection and Cashing of Checks and Othcr Items .................... 2 Busincss Days .............................................................................. 3 (:rediting of Deposits .................................................................... 3 Making of Withdrawals ................................................................ 3 Signaturcs and Identification ........................................................ 3 (:harging of Withdrawals .............................................................. 3 Obtaining More Money Than is Available for Withdrawal ............ 4 IfIndebtedness is Not Paid .......................................................... 4 Acting for You .............................................................................. 5 Automatic Transfer ...................................................................... 5 liabilities and Expenses ................................................................ 5 Fees ................................................. ............................................. 6 Changes in Fees ............................................................................ 6 Closing Account .......................................................................... 6 Statements, Notices and Changes of Address ................................ 6 Statements .................................................................................... 6 Passbook ...................................................................................... 7 Inactivity ...................................................... ................................ 7 Abandoned Funds Charges .......................................................... 8 Changcs in Governing Documents .............................................. 8 No Notice or Loss of Rights ........................................................ 8 Giving Op of Rights .................................................................... 8 Transfer of Rights ........................................................................ 8 If Acco'.lllt is Open in Names of2 or More Individuals ................ 8 Tentative Trust Accounts ............................................................ 10 Deposits in Trust and Payable on Death Accounts .................... II Reasomble Time to Act .............................................................. 13 Disputes Involving Your Account .............................................. 13 Legal Proceedings ...................................................................... 15 Transactions on Accounts with Pending Disputes ...................... 15 Evidence ........ ............................................................................ 15 Conflicts .......................................... .......................................... 15 Continued Effectiveness ............................................................ 15 What Law Applies ...................................................................... 15 '" T f ! (flECKING AND SAVINGS ACCOUNTS Notices of Withdrawal ................................................................ 15 Refusal to Allow Withdrawal ...................................................... 16 Our Policy in Regard to Payment of Checks 1 () Stale, Postdated or Restricted Checks ......... I 6 Check Cashing at Our Branches ............ 16 Check Cashing Fees ........................................... ] 7 Check Cashing Identification Requirements ..... ] 7 Preauthorized Debits .................................................................. ] 7 Standard of Care ........................................................... 17 Stopping Payment of Check ......................................... 18 Interest-Bearing Checking Accounts ............................... 19 Non-Interest-Bearing Checking Accounts .................... ]9 If Fees Exceed Balance Available for Withdrawal ........................20 Electronic Presentment of Checks .............................................. 20 Electronic Representment of Checks Returned for Insufficient or Uncollected Funds ...................... 20 . Checks Issued and Sent Through the United States Mail or Delivered To a Drop Box To Merchants and Other Vendors In Payment for Goods or Services .............................................. 20 TIME DEPOSIT ACCOUNTS Automatic Renewal ...................................................................... 21 Delay In Withdrawal .................................................................... 21 On and After Final Maturity Date ................................................21 Limitation on Ear]y Withdrawal ..................................................21 Penalty for Ear]y Withdrawal ...................................................... 22 JOINT ACCOUNT WITH RIGHT OF SURVIVORSHIP For Accounts at Our New York Banking Offices: Introduction ........... .................................. ................................... 22 Joint Tenancy ..............................................................................22 Survivorship ............... ..... ................................ ......... ................... 22 Withdrawals . ............................................................................... 22 Creditors ...................................................................................... 23 For Accounts at Our Pennsylvania Banking Offices: Introduction ................................................................................ 23 Ownership During Lifetime ofJ oint Account Parties ......... ......... 23 Right of Survivorship ..................................................................23 Withdrawals .................. .............................................................. 23 Creditors........ ............................................... ............. .................. 24 For Accounts at Our Mary]and, Virginia, Washington, D.C. and Delaware Banking Offices: Introduction . ............................................................................... 24 Administration of Joint Account During lifetime ofJoint Account Parties ................................................24 Right of Survivorship ..................................................................24 Withdrawals ................................................................................ 24 Creditors ............................................................. ......................... 25 For Accounts at Our West Virginia Banking Offices: Introduction ......................... ....................................................... 25 Administration OfJoint Account During Lifetime OfJoint Account Parties ................................................25 Right Of Survivorship .................................................................. 25 .. \ .~--...~,a:ll'. Wit hdr.l\\ .ds ( '!'editor, .... .................................25 .......,......................... 26 J( liNT .\C< ()t':\T WlTIIOl'T RIGHT OF SURVIVORSHIP For AccollnU, .n Our Virginia Banking Offices Only: ]ntnlducti:1I1 ................ ......................................................26 Admumtratl"n ofJoint Account During Liktirnc of J"int Account Parties ................................................26 Death "f Joint Account Party ......................................................26 Withdrawals .................. .............................................................27 Creditors ................ ....................................................................27 NOTICE Cm.;CERNING MULTIPLE-PARTY ACCOUNTS For Accountl. at Our Maryland, Virginia, Washington, D.C. .Uld Delaware B.mking Offices Only................................................ 27 ] )ISCLOSURE STATEMENT REQUIRED BY ELECTRONIC FUND TRANSFER ACT Definitions of Some Terms .......................................................... 28 Types "fElectronic Transfers ...................................................... 28 Limitations on Electronic Transfers ............................................ 29 Statement; .................................................................................. 29 Passbook ......................................................... ........................ ..... 29 Verifying Electronic Transfers ......................................................29 liability for Failure To Make Electronic Transfers ......................29 CancellinE; Authorization for a Series of Preauthorized Electronic Transfers .......................................... 30 Stopping Payment Of Particular E]ectronic Transfers .................. 30 Electronic Transfers Varying In Amount .................................... 31 Business Days .............................................................................. 31 Notice of Unauthorized Electronic Transfer ................................ 31 Liability for Unauthorized Electronic Transfers .......................... 31 Disclosure .................................................................................... 31 In Case of Errors or Questions About Your Electronic Transfers ........................................................ 31 . I 1 D]SCLOSURE REQUIRED BY AUTOMATED CLEARING HOUSE RULES Introduction ................................................................................ 32 Provisional Settlement ................................................................ 32 No Special Notice of ACH Credit or Debit ................................ 33 Right To :lkcredit for Unauthorized ACH Debit Entry .............. 33 Right To :lkcredit for Improper Debit Entries ............................ 33 Right To :lkcredit In the Case of a Stop Payment of a Check To Which an Electronic Represented Check Entry Relates ...... 35 Right To :lkcredit in the Case of a Stop Payment of a Check Used as a Source Document To Which an Accounts Receivable Debit Entry Relates ................................................ 35 Stopping Payment of an ACH Debit Entry ................................ 35 What Law Applies ........................................................................ 36 .. \ INTROIDUCTION DEFINITIONS OF SOME TERMS In till' .lgrcemcnt and the Specific feaulres and Terms provided to you with thl~ ,1~rn:'mcllt: 1. "'\\'c," "llS," "our" and "ours" mean Manufaculrers and Traders Trust (:olllp,lI1l', One M&T Plaza, Buffalo, New York 14203; 2. "'Yllll" and "your" mean any individual signing a Deposit Account (lpl'Iling Request provided by us; 3. "'Your account" means any deposit account we open in response to that I kposit Account Opening Request; and 4. I r your accollnt is a Time Deposit accOlillt, "term of your account" means: The period beginning on the date the opening deposit in your acco llilt is made and ending on the first maturity date of your account; or b. Any period beginning on any maturity date of your account and end- ing on the next maturity date of your account. GOVERNINIG DOCUMENTS Tht governing documents for your account will be: 1. This agre ement; 2. rhe Spedfic Features and Terms; 3. l\pplicable fee schedules; 4. ~1&T Bank's Availability Disclosure for Consumer Deposit Accounts; and 5. The Deposit Account Opening Request in response to which we open your account. Other than any agreement between you and us concerning deposits in or ,virhdrawals Ii-om your account made in a particular way, the governing docu- ments for your account are the final and complete agreement between you and liS concerning your account. Any statement concerning your account made by any of our employees or anyone else is not part of that agreement. '1. t, KINDS OF ACCOUNTS This agreemmt and the Specific Features and Terms provided to you with this agreement contain provisions concerning a number of kinds of accounts whkh we may offer from time to time. For example, this agreement contains prmisions concerning: 1. Checkin!~ accounts, both interest-bearing Checking accounts and non- interest-bearing Checking accounts (including non-interest-bearing Negotiable Order of Withdrawal (NOW) accounts); 2. Savings accounts, both Statement Savings accounts and Passbook Savings accounts: and 3. Time Deposit accounts, including Holiday and Savings Club accounts. T 0 determill<~ which provisions are applicable to your account, please refer to the headings and subheadings in this agreement and the Specific Features and Tenns which contain information concerning various aspects of your account (for example, fees and, if your account is an interest-bearing account, the computation and payment of interest). 1 -''''''~''' '.~ _ ~.7""'i.-\?'o~.t" ALL KINDS OF DEPOSIT ACCOUNTS MAKING OF DEPOSITS Any deposit in your account can be made in person at any of our hanking offices. Any deposit in your account other than the opening lieI" "It III \'Our account can be made or ordered in any other way we authorize. !:'or n,lll1ple, depending on the kind of account your account is, the deposit IllJY be .1 hie to be made: 1. By mail; 2. By automatic transfer of money from any other deposit accown \\ II h us; 3. By automatic transfer of money from any organization with which pn>per arrangements for the transfer exist when the deposit is to be madc; ()r 4. At any electronic facility that for the purpose of the deposit honol' ,1 card tied to your account. DEPOSIT OF CHECKS AND OTHER ITEMS We can, but we will not have to, deposit in your account, or allow an\'one dse to deposit in your account, any money in the form of a check or othcr item payable or endorsed to you or your order, even if you have not endorsed the check or other item. We can, but we will not have to, endorse the check or other item for you. UMITATlONS ON DEPOSITS We can fur any reason refuse or limit the amount of any deposit in your account. VERIFICATION OF CHECKS AND OTHER NONCASH ITEMS RECEIVED FOR DEPOSIT Deposits of checks and other noncash items are accepted without our \ erity- ing, at the time of the transaction, the actual receipt by us of the same or the respective amounts thereof, regardless of whether the deposit trans,Ktion takes place at a teller window at one of our branches or at an automated teller machine or is accomplished using any other facilities or means, and, in all cases, are subject to subsequent confirmation by us, after the deposit I rans- action has taken place, that the checks and/or other noncash items indicated on the deposit slip provided by the depositor have actually been received and are in the amounts as shown thereon. Accordingly, neither the deposit slip provided by the depositor with a deposit of checks and/or other noncash items nor any transaction ticket issued by us with respect to the same ,1t the time of the deposit transaction shall constitute an acknowledgment of, or oth- erwise evidence, our actual receipt of any checks and/or other noncash items or the amounts thereof. COLLECTION AND CASHING OF CHECKS AND OTHER ITEMS If money is deposited in your account in the form of a check or other item, you must pay us, and we can charge your account for the amount of; any special fee we pay to collect the money. We can charge your account for the amount of the check or other item if we cannot collect the money or if any claim with respect to the check or other item is raised against us at any time. We will not have to obtain a protest covering the check or other item if we cannot collect the money. A protest is a certificate stating that a check or other item has not been paid. We can charge your account for the amount of any check or other item that we cash fur you if we cannot collect the money represented by the check or other item or if any claim with respect to the check or other item is raised against us at any time. 2 .. \ _....~, ~ ~. BUSINESS DAYS ()ur hlllll1es; days are Monday through Friday, excluding federal holidays. CREDITING OF DEPOSITS Moncv deposited in your accOlmt will be credited to your account either the da\ th~ money is deposited in your account or our next business day, depend- mg. 011 when and where the deposit is made. As a general rule, money deposited in your account will be credited to your account our next business day If the deposit is made on a Saturday, Sunday or federal holiday, or on .an.Y other day if the deposit is made after 2:30 p.m. (12:00 p.m. if the depoSIt IS made at a proprietary automated teller machine, 2:00 p.m. if the deposit is made at any of our Southern New York Region branches, or 3:00 p.m. if the deposit is made at any of our Albany or Syracuse Region branches). Monel' deposited in your account cannot be withdrawn from your account befor~ it is l redited to your account and available for withdrawal from your account. MAKING OF WITHDRAWALS Any withdrawal from your account can be made in any way we authorize. For example, depending on the kind of account your account is, the withdrawal may be able to be made: 1. By a check written on your account; 2. In person at our banking office where your account is open or, as a gener- al rule at any of our other banking offices, by presenting a properly com- pleted' and signed withdrawal form for your account and, if we issue a passbook for your account, the passbook; 3. By automatic transfer of money to any other deposit account with us, to any loan account with us or to any organization with which proper arrangements for the transfer exist when the withdrawal is to be made; or 4. At any eectronic facility that for the purpose of the withdrawal honors a card tied to your account. We can charge your account in any order convenient to us for withdrawals from your account regardless of the ways the withdrawals are made. SIGNAnJRES AND IDENTIFICATION Your signature or that of someone else authorized to sign a check written on your account: or a withdrawal form for your account will be the only signature required on any check written on your account or any withdrawal furm for your account unless the Deposit Account Opening Request in response to which we open your account provides differently, in which case the check or withdrawal ~Jrm must be signed as the Deposit Account Opening Request provides. When anyone seeks to make or order any withdrawal from your account, we ,:an require proof satisfactory to us of his or her identity. Also, we can require proof satisfactory to us that any signature on any check written on your account or any withdrawal form for your account is authentic. 'I . CHARGING OF WITHDRAWALS Money withdrawn from your account will be charged against your account either the day the money is withdrawn from your account or our next busi- ness day, depending on when and where the withdrawal is made. As a general rule, money withdrawn from your account will be charged against your account our next business day if the withdrawal is made on a Saturday, Sunday or federal holiday, or on any other day if the withdrawal is made after 2:30 p.m. (12:00 p.m. if the withdrawal is made at a proprietary automated teller machine, 2:00 p.m. if the withdrawal is made at any of our Southern New York Region branches, or 3:00 p.m. if the withdrawal is made at any of our Albany or Syracuse Region branches). 3 OBTAINING MORE MONEY THAN IS AVAILABLE FOR WITHDRAWAL If any amount of money obtained from us (whether by our paying a check written on your account, our allowing cash to be obtained at any of our bank- ing offices or any electronic facility or in any other way) is to be withdrawn from your account but exceeds the balance available tor withdrawal from your account, you must immediately pay us the excess unless it is lent under a line of credit account tied to your account. We may pay any electtonic debit or check that overdraws your account, even though our payment of the electronic debit or check causes your account to be overdrawn or increases the amount of an existing overdraft on your account. Our decision to pay an electronic debit or check may cause there to be insufficient available funds to pay other items drawn on or chargeable to your account that could have been paid had we not paid the overdraft item. Our payment on any day of any electronic debit or check that overdraws your account will not obligate us to pay any other electronic debit or any check that is processed by us for payment on that day or on a subsequent day against insufficient available funds in your account. We may charge you an insufficient funds fee for each electronic debit and each check that is processed by us for payment if the amount of the item exceeds the balance available for withdrawal from your account at the time it is processed by us for payment. We may charge this fee whether or not we pay the overdraft item. The amount of the fee will be deducted from the balance in your account, reduc- ing the balance in your account that is available to pay other items drawn on or chargeable to your account. If your account becomes overdrawn, you agree to immediately repay to us the amount of the overdraft and further agree that we may apply any later deposits made into your account, including deposits of recurring federal government benefit payments (such as social security or supplemental security income bene- fits, whether made by direct deposit or otherwise), to any such overdraft as well as any overdraft fees and other service charges you owe to us by way of setoff. IF INDEBTEDNESS IS NOT PAID To secure the payment of all indebtedness from you to us existing now or coming into existence in the future, you grant to us a security interest in the money in your account except to the extent that doing so would result in a penalty for purposes of any tax or would be prohibited by applicable law. If any indebtedness from you to us existing now or coming into existence in the future is not paid by the date it becomes due, we can, except to the extent that doing so would result in a penalty for purposes of any tax or would be prohibited by applicable law, take all money in your account to pay in any order we choose that indebtedness and all other indebtedness from you to us existing at the time we take money to do so, whether or not the other indebt- edness is then due and even if it is contingent (for example, indebtedness as a guarantor). We can do so even if: 1. The money that we take was deposited in your account by someone else or is interest paid on money deposited in your account by someone else; 2. Your account is not open in the name of someone else who, in addition to you, is obligated to pay us any indebtedness that we take the money to pay; or 3. Your account is open in the name of someone else who is not obligated to pay us any indebtedness that we take the money to pay. We will not be liable if, as a result of taking the money, we do not allow or make any withdrawal from your account. Our claim to the money under this section will be superior to any claim to the money by anyone else. 4 .. '>. ACTING f:OR YOU Anyone other than you can be authorized to make or order any deposit in or withdrawal from your account or to do any other thing concerning your account (for example, you can authorize someone else to authorize us to make deposits in or withdrawals from your account by automatic tranSfer of money). The authority must be given in a document satisfactoty to us. We can require the person to whom the authority is given to sign a document for our record~. Until the authority is revoked by you or someone else entitled to do so and we receive and have a reasonable time to act on a written notice of the revocation, we can assume without question that the person to whom the authority is given is authorized to make or order any deposit in or withdrawal from your account or to do any other thing concerning your account speci- fied in the document giving the authority. AUTOMA'fIC TRANSFER Depending on the kind of account your account is, we can be authorized to make any c.eposit in or withdrawal from your account by automatically tranS- ferring money: 1. From any other deposit account with us; 2. To any other deposit account with us; 3. To any loan account with us; 4. From any organization (for example, a governmental body or your employer) with which proper arrangements for the tranSfer are made; or 5. To any organization (for example, an insurance company) with which proper arrangements for the tranSfer are made. The authority must be given in a document satisfactoty to us. Unless any agreement between you and us concerning deposits in or with- drawals from your account made by automatic transfer of money provides differently: 1. We can, but we will not have to, make any deposit in or withdrawal from your a,count by automatic transfer of money if the amount of money availabl: to be tranSferred is less than the amount scheduled to be tranS- ferred. If we do not transfer the amount scheduled to be tranSferred, we can, but we will not have to, tranSfer the amount of money available to be transferred. 2. You can at any time cancel our authority to make any future deposit in or withdr.lwal from your account by automatic tranSfer of money by notifY- ing us in writing that you are doing so. The cancellation will not take effect until we receive the notice and have a reasonable time to act on it and, until the cancellation takes etfect, we can assume without question that we have the authority. 3. We can at any time cancel any obligation of ours to make any future deposit in or withdrawal from your account by automatic transfer of money by notifYing you orally or in writing that we are doing so. The cancell~,tion will take etfect when we send or deliver the notice to you unless we tell you in the notice that it will take etfect later. UABlunES AND EXPENSES You must pay any liability or expense we incur in connection with any deposit in or withdrawal from your account or any other thing concerning your accowlt. For example, if we hire an attorney to defend or enforce any of our rights with respect to your account or to perform any other legal service in connection with your account, you must pay us the attorney's fee and all legal expenses we pay in connection with the defense, enforcement or other legal service. 5 FEES Accompanying this agreement are Specific Features and Terms and a fee schedul~ whi~h include information concerning fees you may have to pay in connection with your account. We can charge your account for the amOlillt of any fee applicable to your account. We will not be liable if we do so and, as a result, we do not allow or make any withdrawal from your account. CHANGES IN FEES We can at any time establish a new fee or change an existing fee applicable to your account. If we establish a new fee or increase an existing fee applicable to your account, we will send or deliver to you any notice of the new fee or increase that applicable law requires us to send or deliver to you. If applicable law does not require us to send or deliver any notice of the new fee or inc~ease t<;> ~ou, we will. either send or deliver a notice of it to you or post a notice of It ill our banking offices before the date it takes effect. We will not have to notifY you if we decrease or eliminate an existing fee applicable to your account, except as otherwise provided by law. CLOSING ACCOUNT If your .account is a Checking or Savings account, we can close your account at any tIme for any reason. If your account is a Time Deposit account, we can close your account for any reason: 1. On or after the final maturity date of your account; or 2. At any time after the amount on deposit in your account falls below the minimum deposit required to open a Time Deposit account with us of the same type on the date we open your account or, ifwe automatically renew your account, on the most recent maturity date of your account. If we close your account, we will send or deliver to you a notice of the closing and a check for the amount of any money remaining in your account after we 0arge your account for all applicable fees and other charges. We will not be liable if, after we close your account, we do not allow or make any deposit in or withdrawal from your account. STATEMENTS, NOnCES AND CHANGES OF ADDRESS Any statement for your account we send you or any notice concerning your account or any govemmg document for your account we send you will be sent to your current mailing address shown in our records concerning your account. We can send the statement or notice by regular mail. If your mailing address changes, you must promptly notifY us in writing of the new address. STATEMENTS If ~our account is an account for which we provide statements, there may be limits on how much .time you will have to do certain things if you suspect that we made an error WIth respect to your account during the period covered by ~~ statement for your account we send or deliver to you (for example, by fuiling to credit to your account money deposited in your account). Unless the suspected error involves an electronic fund transfer to or from your account and eIther your account or any other deposit account involved in the electronic fund transfer is established primarily for personal, family or house- hold pmposes, the limits are as follows: 1. UnIess the suspected error is the payment of a check written on your account that bears ~ fo~ged endorsement, you must notifY us in writing of the suspected error ill tIme for us to receive the notice within 14 days after the date we se~d or deliver the statement to you. If you do not do so, you will lose any. nght to make any cla,im against us based on the suspected errOr. Also, if the suspected error IS the payment of a check written on your account that is altered or bears a forged or otherwise unauthorized signature, you may lose any right to make any claim against us based on 6 , \ any alteration or forged or otherwise unauthorized signature made by the same p~rson on any other check written on your account. 2. If the ~uspected error is the payment of a check written on your account that bears a forged endorsement, you must notifY us in writing of the sus- pected error in time for us to receive the notice within 90 days after the date we send or deliver the statement to you. If you do not do so, you will lose anv right to make any claim against us based on the suspected error. 3. If you ~;ue us because of the suspected error, you must do so within I year after the date we send or deliver the statement to you even if you notifY us of the wspected error as required by this section and even if you sue us in connection with any lawsuit we bring against you. PASSBOOK If your account is an account for which we issue a passbook, the passbook will be your rewrd of transactions involving your account. If there is a conflict between the passbook and our records, our records will control. If your account is dosed, you must surrender the passbook to us for cancellation. If the passbook is lost, stolen or destroyed, you must immediately notifY us in writing of lhe loss, theft or destruction. Before allowing any withdrawal from your account or issuing a new passbook for your account, we can require a document satisfactory to us stating the facts concerning the loss, theft or destruction. Also, we can require that we be protected against all liabilities and expenses (for example, an attorney's fee) we incur as a result of allowing the withdrawal or issuing the new passbook. Among the things we can require is a written agreement, satisfactory to us, to pay all those liabilities and expenses. INAcnvrrv Most, if not all, states as well as certain other jurisdictions (which include Puerto Rico, the VIrgin Islands and the District of Columbia) have unclaimed property la'.vs which declare deposit accounts maintained with a bank to be abandoned after a prescribed period of inactivity. As a general rule, for escheatment pmposes, your account, regardless of the location of our banking office at which it is established or maintained, is subject to the abandoned property law of the state or other jurisdiction of your last known address, as reflected in our books and records with respect to your account, and will be turned over to such state or jurisdiction after the lapse of the period of inactiv- ity leading to abandonment under such state's or other jurisdiction's aban- doned property law. If such state or other jurisdiction does not have a law that provides for the escheatment of your account to that state or other juris- diction, or, if your last known address cannot be determined from our books and records, your account is subject to escheatment to New York State (as the state of our corporate domicile), in accordance with New York State's aban- doned property law. The prescri bed period of inactivity leading to the abandonment of a deposit account m~intained with us varies from state to state. For example, in cases where your account is subject to the abandoned property laws of New York State, Pennsylvania, VIrginia or Delaware, the prescribed period of inactivity leading tOlbandonment of your account is five years; in cases where your account is subject to the abandoned property laws of Maryland or the District of Columbia, the prescribed period of inactivity leading to abandonment is three years; in cas,::s where your account is subject to the abandoned property laws of West VIrginia, the prescribed period of inactivity leading to abandonment is five years if yow' account is a non-interest-bearing account and seven years if your account is an interest-bearing account. These prescribed periods of inactivity as well as the prescribed periods of inacrivity under the laws of other states and jurisdictions are subject to change in accordance with changes in applicable law. As a genera; rule, the prescribed period of inactivity under applicable law with respect to time deposits is deemed to begin on the first maturity date of your account, without regard to whether or not your account is subject to auto- matic renewal. 7 A state's or other jurisdiction's abandoned property laws, where applicable to your account, include rules that permit us to recognize certain deposit account activity and contact with us by the account owner to prevent escheat- ment. Generally, any withdrawal from your account or written response by you or your legal representative to our notices asking that you or your legal representative acknowledge your interest in the account will prevent your account's escheatment. A written notice of pending escheatment will be sent to you and to each other person in whose name the account is opened at the most recent address we have in our records concerning your account. ABANDONED FUNDS CHARGES If your account becomes inactive, to the extent permitted by applicable law, we may charge your account for (i) an allocated share of such advertising expenses that we may incur in connection with the publication of any notice that your account will be turned over to a state or other governmental authority as abandoned property, (ii) the postal cost of any notice that we are required to send to you by registered or certified mail, return receipt request- ed, or by any other means of delivery, to inform you that your account will be turned over to a state or other governmental authority as abandoned proper- ty, and (iii) such other amount as shall reimburse us for the handling and pro- cessing cost associated with the turnover of your account to a state or other governmental authority as abandoned property. CHANGES IN GOVERNING DOCUMENTS No change in any governing document for your account can be made except in a writing signed by us. We can change any governing document for your account at any time. If the change adversely affects you, we will send or deliv- er to you any notice of the change that applicable law requires us to send or deliver to you. If applicable law does not require us to send or deliver any notice of the change to you, we will either send or deliver a notice of it to you or post a notice of it in our banking offices before the date it takes effect. NO NOTICE OR LOSS OF RIGHTS We can exercise, give up, fail to exercise or delay exercising any of our rights with respect to you or your account without notifying you. By exercising, fail- ing to exercise or delaying the exercise of any of the rights, we will not lose it or any other of the rights. By giving up any of the rights on any occasion, we will not lose it on any other occasion or lose any other of the rights. GIVING UP OF RIGHTS None of our rights with respect to you or your account can be given up by us except in a writing signed by us. TRANSFER OF RIGHTS We will not be bound by any ttansfer of any of your rights with respect to your account to anyone else until we have received the document making the transfer, an officer of ours has acknowledged in writing that we have received the document and we are satisfied that the transfer is legal and properly made. IF ACCOUNT IS OPEN IN NAMES OF 2 OR MORE INDIVIDUALS If your account is open in the names of 2 or more individuals: 1. After the death of any of those individuals, we will not have to allow or make any withdrawal from your account until we receive all doruments that we believe applicable law requires us to have before the withdrawal is made. 2. Unless the Deposit Account Opening Request in response to which we open your account provides differently, until we receive and have a rea- 8 .. \ sonable time to act on a written notice indicating differently, any of those individuals acting alone is authorized to make or order any deposit in or withdnlwal from your account or to do any other thing concerning your account even if he or she has not deposited any money in your account. 3. Unless the Deposit Account Opening Request provides differently, each of those individuals acting alone is the agent of each of the rest of them for the purpose of making or ordering any deposit in or withdrawal from your account or doing any other thing concerning your account. For example, in connection with any deposit in your account, unles~ th.e Deposit Account Opening Request provides differently, any of those mdi- viduals acting alone can endorse any check or other item payable or endorsed to any other of them or to the order of any other of them. 4. All those individuals will be, individually and together, liable in connec- tion with your account and under the governing documents for your account. We can sue any of them in connection with your account or under :my governing document for your account whether or not we sue anyone else. 5. We can, but we will not have to, require that each of those individuals sign any document authorizing someone other than you to make or or~er any deposit in or withdrawal from your account or to do any other thing conceming your account (for example, authorizing us to make deposits in or withdrawals from your account by automatic transfer of money). 6. We can, but we will not have to, require that each of those individuals sign any document authorizing us to make any deposit in or withdrawal from your account by automatically transferring money from or to any other deposit account with us, to any loan account with us or from or to any orl1:anization. Unless that document provides differently, any of those individ~als acting alone can cancel the authority, and, if any of them does so, we will not have to notifY any other of them. 7. We can but we will not have to, require that each of those individuals sign any document making any transfer of any of their rights with respect to your account. 8. If we receive notice from any of those individuals notifying us not to allow withdrawals from your account, we can, but will not have to, require that each of those individuals sign any document authorizing us to resume allowing withdrawals from your account. 9. If YOW' account is an account for which we issue a passbook and the pass- book is lost, stolen or destroyed, we can, but we will n<;>t have to, require that each of those individuals sign any document stating the fucts con- cernin:~ the loss, theft or destruction and any agreement to pay allliabili- ties and expenses we incur as a result of allowing a withdrawal from your account or issuing a new passbook for your account. 10. Ifwe dose your account, we can send or deliver to any of those individu- als, on behalf of all of them, a check payable to the order of any of them for the amount of money remaining in your account after we charge your accowlt for all applicable fees and other charges. 11. We caa send or deliver any statement for your account or any notice con- cerning your account or any governing document for your account to any of thol;e individuals, and it will be effective fur all of them. 12. In the event that a guardian shall be appointed for any of those individu- als, we can, but we will not have to, require that the guardian and each other individual in whose name the account is open (other than the indi- vidual for whom the guardian has been appointed) sign any document authOJizing each withdrawal made from your account or authorizing us to permit: withdrawals from your account upon authorization received from the guardian or any other individual in whose name the account is open (other than the individual for whom the guardian has been appointed) acting alone. Upon being notified of the appointment of a guardi:m for any or those individuals, we can, but we will not have to (a) WIthout 9 authorization from or notice to the guardian, permit any of the other individuals in whose name the account is open, acting alone, to withdraw funds from the account by check, withdrawal order or any other means allowed by us, or (b) without authorization from or notice to any of the other individuals in whose name the account is open, permit the guardian, acting alone, to withdraw funds from the account by check, withdrawal order or any other means allowed by us. 13. In the event that any of those individuals shall, by power of attorney, des- ignate an attorney-in-fact to act for him or her with respect to matters pertaining to your account, to the extent of the authority granted in the power of attorney, such attorney-in-fact shall have the authority to make any deposit into, order any withdrawal from or otherwise do any other thing with respect to your account to the same extent as the individual who shall have appointed him or her as attorney-in-fact. Whenever we are provided with a power of attorney executed by any of those individuals, we can, but we will not have to, notifY anyone or more of the individuals in whose name the account is open (other than the individual who exe- cuted the power of attorney) of the appointment of the attorney-in-fact and the authority of such attorney-in-fact with respect to matters pertain- ing to your account. TENTATIVE TRUST ACCOUNTS (For Accounts at Our Pennsylvania Banking Offices Only) If your account is opened in the name of one or more individuals as trustee( s ) for (or in trust for) an individual beneficiary or fur two individual beneficiaries jointly or for two individual beneficiaries successively (i.e., for the first named individual if he or she survives all of the named depositors and for the second named individual if the first named individual does not survive all of the named depositors) or for a beneficiary that is a non-profit organization, with- out any notice to us of the existence or of the tenns of a living or testamen- tary trust upon which such account title is based, the account will be consid- ered for all purposes as a tentative trust and the following rules will apply to the account: 1. During the lifetime of the depositor(s) (i.e., trustee(s)) or any of them if there is more than one depositor, the depositor(s) shall have sole control over the funds on deposit in the account and the individual(s) or non- profit organization named as beneficiary shall have no authority to with- draw funds from or otherwise instruct us as to the disposition of funds in the account. 2. During the lifetime of the depositor(s), he, she or they may at any time revoke or change any designation of beneficiary with respect to the account by providing us with written notice of the revocation or change on such form as may be prescribed by us for such pwpose. No revocation or change of beneficiary shall be or become effective until noted in our records with respect to the account. If there is more than one depositor, we may require that all depositors named on the account execute the pre- scribed revocation or change of beneficiary form before we will note the revocation or change of beneficiary designation in our records for the account. We reserve the right not to permit the designation of more than one beneficiary for any account established with us as a tentative trust. 3. Upon the death of the depositor (or all of the depositors if there is more than one), the funds remaining on deposit in the account shall be payable as follows: (i) If the account is stated to be held in trust for an individual who is named as the sole beneficiary, the funds in the account shall be payable to such beneficiary provided he or she has not predeceased the depositor; if such beneficiary has predeceased the depositor, the funds in the account shall be payable to the deceased depositor's estate (i.e., the estate of the last depositor to die). 10 .. \ (ii) If the account is stated to be held in trust fur a non-profit organiza- tion that is named as the sole beneficiary, the funds in the account shall be payable to such beneficiary provided the non-profit organiza- tion remains in existence at the death of the depositor; if such non- profit organization shall have ceased to exist prior to the depositor's de:ath, the funds in the account shall be payable to the deceased depositor's estate (i.e., the estate of the last depositor to die). (iii) If the account is stated to be held in trust for two individuals who are named jointly as beneficiaries, unless our records for the account indi- cate the depositor's intention to have been otherwise, the funds in the acwunt shall be payable (a) in equal shares to the two beneficiaries provided neither of them has predeceased the depositor, or (b) in full to the beneficiary surviving the depositor's death in each case where th,: other beneficiary has predeceased the depositor, or (c) in full to th,: deceased depositor's estate (i.e., the estate of the last depositor to die) in each case where each of the two beneficiaries has predeceased th.: depositor. (iv) If the account is stated to be held in trust for two individuals who are named successively as beneficiaries, the funds in the account shall be payable (a) in full to the first named beneficiary (i.e., the primary ben- eficiary) provided he or she has not predeceased the depositor, or (b) in full to the beneficiary named in the alternative to the first named beneficiary (i.e., the successor beneficiary) provided he or she shall not have predeceased the depositor and the primary beneficiary shall have predeceased the depositor, or (c) in full to the deceased depositor's estate (i.e., the estate of the last depositor to die) in each case where both the primary beneficiary and the successor beneficiary shall have prc:deceased the depositor. In any case where an account is stated to be held in trust for two indi- vid uals as named beneficiaries and it is not indicated in our records fur the account whether the interests of the beneficiaries are joint or suc- ce!sive, the account shall be considered as being held in trust fur both su<:h individuals jointly, and, unless our records for the account indi- cate the depositor's intention to have been otherwise, upon the death of the depositor, the funds in the account shall be payable in accor- dance with the rules set forth in paragraph (iii) above. 4. We reserve the right to withhold payment of funds in the account to any named beneficiary who may become entitled to such payment until we have received all such documentation and identification as we may require or applicable law requires in order for us to make the payment. S. In the event any funds in the account shall become payable to a named beneficiary who is a minor, we can, but we will not have to, make pay- ment of such funds to or upon the order of the minor without the inter- vention of a parent or guardian of the minor. We may, but we will not have to, require the intervention of a parent or guardian of the minor as a condition to making any such payment. J DEPOSITS IN mUST AND PAYABLE ON DEATH ACCOUNTS (For Accounts at Our Maryland, Virginia, Washington, D.C., West Virgiinia and Delaware Banking Offices Only) If your acwunt is opened at one of our Maryland, Virginia, Washington, D.C., Wesl' Virginia or Delaware banking offices in the name of one or more individuals as trustee( s) for (or in trust for) one or more persons named as beneficiaries or is opened at one of our Maryland, Virginia or West Virginia banking oEcrces in the name of one or more individuals payable on death (or P.O.D.) to one or more P.O.D. payees (each such designated beneficiary or P.O.D. payee is hereinafter referred to in this section as a "beneficiary") without any notice to us of the existence or of the terms of a living or testa- mentary tmst upon which such account title is based, the following rules will apply to the: account: 11 1. During the lifetime of the depositor(s) (i.e., the trUstee(s) in the case ofan account opened with the designation "as trUstee( s) for" or "in trust for" reflected in the account title) or anyone of them if there is more than one depositor, the depositor( s) shall have sole control over the funds on deposit in the account and the named beneficiary or beneficiaries shall have no authority to withdraw funds from or otherwise instruct us as to the disposition of funds in the account. 2. During the lifetime of the depositor(s), he, she or they may at any time revoke or change any designation of beneficiary with respect to the account by providing us with written notice of the revocation or change on such form as may be prescribed by us for such purpose. No revocation or change of beneficiary shall be or become effective until noted in our records with respect to the account. If there is more than one depositor, we may require that all depositors named on the account execute the pre- scribed revocation or change of beneficiary form before we will note the revocation or change of beneficiary designation in our records for the account. We reserve the right not to permit the designation of more than one beneficiary for any account established with us as a trust or payable on death account. 3. Upon the death of the depositor (or all of the depositors if there is more than one) the funds remaining on deposit in the account shall be payable as follows: (i) If the account is stated to be held in trust for or payable on death to an individual who is named as the sole beneficiary, the funds in the account shall be payable to such beneficiary provided he or she has not predeceased the depositor (or anyone of the depositors if there is more than one); if such beneficiary has predeceased the depositor (or anyone of the depositors if there is more than one), the funds in the account will be payable to the deceased depositor's estate (or the estate of the last depositor to die if there is more than one depositor). (ii) If the account is stated to be held in trUSt for or payable on death to two or more individuals who are named jointly as beneficiaries, the funds in the account shall be payable (a) in equal shares to all of the beneficiaries surviving the depositor's death (or the death of the last depositor to die if there is more than one depositor, (b) in full to the beneficiary sUlViving the depositor's death (or the death of the last depositor to die if there is more than one depositor) in each case where all other beneficiaries have predeceased the depositor (or the last depositor to die if there is more than one depositor), or (c) in full to the estate of the deceased depositor (or the estate of the last deposi- tor to die if there is more than one depositor) in each case where none of the beneficiaries survives the death of the depositor (or the death of the last depositor to die, if there is more than one depositor). 4. We reserve the right to withhold payment of funds in the account to any named beneficiary who may become entitled to such payment until we have received all such documentation and identification as we may require or applicable law requires in order for us to make the payment. 5. (i) If your account is opened at one of our Maryland, Virginia, Washington, D.C. or Delaware banking offices, in the event any funds in the account shall become payable to a named beneficiary who is a minor, we can, but we will not have to, make payment of such funds to or upon the order of the minor without the intervention of a par- ent or guardian of the minor. We may, but we will not have to, require the intervention of a parent or guardian of the minor as a con- dition to making any such payment. (ii) If your account is opened at one of our West Virginia banking offices, in the event any funds in the account shall become payable to a named beneficiary who is a minor, we can make payment of such funds to or upon the order of the minor, unless, prior to making such payment, we are in receipt of a specific direction in writing from the 12 .. \ parent or guardian of the minor not to make such payment, in which ca.!:e, we can make payment of the funds to such parent or guardian fol' the benefit of the minor. REASONABLE TIME TO ACT A reasonable time for us to act on any notice, order or other communication or docUITIl:nt will not end until at least the close of business on our first bank- ing day following our banking day we receive the notice, order or other com- munication or document. ~ DISPUTES INVOLVING YOUR ACCOUNT IT IS IMPORTANT THAT YOU READ THIS ENTIRE SECTION VERY CAREFULLY. THIS SECTION PROVIDES FOR RESOLU- TION OIl DISPUTES INVOLVING YOUR ACCOUNT THROUGH FINAL AND BINDING ARBITRATION BEFORE ONE NEUTRAL ARBITRATOR INSTEAD OF IN A COURT BY A JUDGE OR JURY OR THROUGH A CLASS ACTION. 1. Conditions Precedent to Arbitration. Before you take a dispute or con- trovers~ to arbitration, you must first contact us about the dispute or con- troversy and give us an opportunity to resolve it. Similarly, before we take a dispute or controversy to arbitration, we must attempt to resolve it with you. If the dispute or controversy cannot be resolved within 60 days from the date you or we are notified about it, the matter that is in dispute or subject to controversy may proceed to arbitration in accordance with the provisions of this section. 2. Agreement to Binding Arbitration. Each dispute or controversy that arises out of or is related to your account with us, or any service we pro- vide in connection with your account, or any matter relating to your or our rights and obligations provided for in this agreement or any other agreement between you and us relating to your account or a service pro- vided by us in connection with your account, whether based on statute, contract, tort, fraud, misrepresentation or any other legal or equitable the- ory, induding any claim for interest and attorney's fees, where applicable (any "Claim"), must be determined on an individual basis by binding arbitration in accordance with the Federal Arbitration Act ("FM" - Title 9 of the United States Code) under the auspices of the American Arbitralion Association ("AM"). Judgment on an arbitration award may be entered in any court having jurisdiction. Any issue regarding whether a particular dispute or controversy is a Claim that is subject to arbitration will be decided by the arbitrator. If any part of the relief request is not expressly stated as a dollar amount, the dispute or controversy will not be a Claim that is subject to arbitration. 3. AppliC<lble Arbitration Rules. If the amount in contrOversy is less than $10,000, the Consumer Arbitration Rules of the AAA will apply. Otherwise, the Commercial Arbitration Rules of the AM will be applica- ble (the Consumer and Commercial Arbitration Rules are sometimes hereinafter collectively referred to as the" Arbitration Rules"). Information about the arbitration process, the Consumer or Commercial Arbitration Rules, the AM's fees and the nearest AM Case Management Center is available from the AM online at www.adr.org. Information about AAA procedures, rules, fees and nearest offices will also be made available: to you by contacting the corporate headquarters of the AM at 1-800-778-7879. 4. Representation. You may, but you do not have to, hire an attorney to represent you in any arbitration. 5. Number of Arbitrators and Qualifications. Only ONE arbitrator will be selected. Each arbitrator shall be a licensed attorney who has engaged in the private practice of law continuously during the 10 years immediately J 13 preceding the arbitration or a retired judge of a court of general or appel- late jurisdiction. 6. Language. The language of the arbitration shall be in English. Any party desiring or requiring a different language shall bear the expense of an interpreter. 7. Rules Governing Arbitration. You and we acknowledge that this agree- ment evidences a transaction involving interstate commerce. The FM shall govern the interpretation, enforcement and proceedings pursuant to the arbitration provisions in this section. All statutes of limitation, defens- es, and attorney-client and other privileges that would apply in a court proceeding will apply in the arbitration. In conducting the arbitration and making the award, the arbitrator shall be bound by and shall strictly enforce the terms of this agreement and may not limit, expand or other- wise modifY its terms. 8. Tolling of Statute of Umitations. The filing of a demand for arbitration in accordance with the Arbitration Rules will suspend any requirement to file a notice of claim or to commence an action until the conclusion of the arbitration process. 9. Remedies Available. The arbitrator will have no authority to award puni- tive or other damages not measured by the prevailing party's actual dam- ages, except as may be required by statute. Subject to the foregoing limi- tation, the arbitration award shall provide only such relief as a court of competent jurisdiction could properly award under applicable law, and, in each case, shall award to the prevailing party all of its costs and fees. "Costs and fees" means all reasonable pre- and post-award expenses of arbitration, including attorney's fees, arbitrator's fees, administrative fees, travel expenses, out-of-pocket expenses (for example, copying and tele- phone), court costs and witness fees. However, the arbitrator may not award damages that are not expressly authorized or are expressly prohibit- ed by this agreement. The award shall be in writing, shall be signed by the arbitrator and shall include a statement regarding the reasons for the dis- position of each and evety Claim raised during the arbitration. 10. No Consolidation of Action or Class Actions. There will be no class Claim (i.e., Claims by or on behalf of other persons will not be considered in or consolidated with the arbitration proceedings between you and us). 11. Other Actions Available; No Waiver of Right to Arbitrate. The arbi- tration provisions contained in this section do not limit your or our right, whether before, during or after the pendency of any arbitration proceed- ing, to exercise self-help remedies such as the right of set-off or to obtain provisional or ancillary remedies or injunctive or other traditionally equi- table relief (other than a stay of arbitration) necessary to protect the rights or property of the party seeking relief pending the arbitrator's determina- tion of the merits of the Claim. The taking of any of the actions described in the preceding sentence by either party or the filing of a court action by a party shall not be deemed to be a waiver of the right to demand arbitra- tion of any Claim asserted as a counterclaim or the like in response to any such action. 12. Survivability. The foregoing "Dispute Resolution" provisions, in which you and we have agreed to arbitrate disputes, will survive the termination of your account with us, whether evidenced by this agreement or otherwise. YOU ACKNOWLEDGE THAT YOU HAVE CAREFULLY READ THE FOREGOING DISPUTE RESOLUTION PROVISIONS IN WHICH YOU AND WE HAVE AGREED TO ARBITRATE DIS- PUTES. YOU UNDERSTAND THAT THESE PROVISIONS LIMIT OR WAIVE CERTAIN OF YOUR RIGHTS WITH RESPECT TO CLAIMS THAT YOU ARE AGREEING TO ARBITRATE PUR- SUANT TO THESE PROVISIONS. YOU UNDERSTAND THAT THERE WILL BE NO CLASS CLAIMS IN ARBITRATION. YOU FURTHER UNDERSTAND THAT DISCOVERY - THE ABILITY 14 ... \ TO OBTAlN INFORMATION FROM THE OTHER PARTY - MAY BE MOR1: LIMITED IN ARBITRATION THAN IN A COURT PROCEEDING, AND THE RIGHT AND GROUNDS OF APPEAL FROM AN ARBITRATOR'S AWARD ARE MORE LIMITED THAN IN AN APPEAL FROM A COURT JUDGMENT. IN ADDmON, YOU UNDERSTAND THAT CERTAIN OTHER RIGHTS YOU HAVE IN A COURT PROCEEDING ALSO MAY NOT BE AVAIL- ABLE IN ARBITRATION. LEGAL PROCEEDINGS If y?ur account. becomes involved in any legal proceeding (including any arbi- tranon proceeding between you and us), we can restrict deposits in and with- drawals from your account. TRANSACTIONS ON ACCOUNTS WITH PENDING DISPUTES We will not be liable if, because of any dispute concerning your account, we do not allow or make any deposit in or withdrawal from your account. Also we will not be liable if, despite any dispute concerning your account, we all~ or make any deposit in or withdrawal from your account. EVIDENCI: In any legal proceeding (including any arbitration proceeding between you and us) involving your ~ccount or any governing doaunent fur your account, any copy of that govemmg document kept by us in the regular course of our busi- ness is to be admitted in evidence as an original of that governing document. CONFUClrs If any p~ of the Specific Features and Terms conflicts with this agreement, the Specific Features and Terms will control. If any part of any governing doc- ument for your account conflicts with applicable law, the law will control and that governing document will be considered changed to the extent nece'ssary to comply with the law. CONTINUlED EFFECTIVENESS If any part of any.governing document for your account is determined by a court to be mvalld, the rest of that governing document and the other governing doc'Uffients fur your account will remain in effect. WHAT LA.W APPUES Any legal question concerning your account or any governing document fur your account will be decided in accordance with: 1. The law of the state or other jurisdiction in which your account is domi- ciled without regard to the law of any other state or other jurisdiction; and 2. To the extent applicable, federal law. 1 CHECKING AND SAVINGS ACCOUNTS NOTICES OF WITHDRAWAL !f your account is an interest-bearing Checking account, a non-interest-bear- mg NOW account or a Savings account, we can require that we receive a writ- ten nonce of the date and amount of any intended withdrawal from your account at least 7 days before the date the intended withdrawal is to be made. 15 REFUSAL TO AllOW WITHDRAWAL Under certain circumstances, we can refuse to allow a withdrawal from your account. For example, we can refuse to allow a withdrawal from your account if: 1. Your account is an interest-bearing Checking account, a non-interest- bearing NOW account or a Savings account and we require that we receive a written notice of the date and amount of the withdrawal at least 7 days before the date the withdrawal is to be made and we have not received the notice; 2. The withdrawal would consist of money deposited in your account in the form of a check or other item and not yet available for withdrawal from your account; 3. There is a dispute concerning your account; 4 . Your account is pledged as collateral for any indebtedness; 5. The withdrawal would consist of money we are holding to pay any income tax on interest earned on money in your account; 6. Your account is a Checking account, the withdrawal is not sought to be made by a check written on your account and any limitation we impose on the number and amounts of withdrawals from your account made in other ways has been exceeded or, as a result of the withdrawal, would be exceeded; 7. Your account is a Savings account, the withdrawal is not sought to be made in person at our banking office where your account is open and any limitation we impose on the number and amounts of withdrawals from your account made in other ways has been exceeded or, as a result of the withdrawal, would be exceeded; 8. The withdrawal would consist of money we have taken to pay any indebt- edness to us; 9. We receive a notice not to allow the withdrawal from you or someone else authorized to notifY us not to do so; 10. The withdrawal would consist of money we have been ordered to pay to or hold for someone else; or 11. We have not received any document or identification we require or applic- able law requires in connection with the withdrawal. OUR POUCY IN REGARD TO PAYMENT OF CHECKS In accordance with our current policy, checks written on your account which are received by us for payment on any business day will generally be processed for payment in high-to-low dollar amount order, based upon the then avail- able funds in your account. We reserve the right to change our policy at any time. If we do so, we will provide you with notice to the extent and in the manner required by applica- ble law. STALE, POSTOATED OR RESTRICTED CHECKS We can, but we will not have to, pay any check written on your account even if the check: 1. Is dated more than 6 months before the date it is presented to us fur pay- ment; 2. Is dated after the date it is presented to us for payment; or 3. Bears a restrictive legend (such as "void if not paid within 30 days" or "not good for more than $100") that would be violated by our paying the check. CHECK CASHING AT OUR BRANCHES You agree that we may properly refuse to cash a check drawn on your account 16 .. \ , I 1 with us at any of our branch offices for someone to whom the check is payable if that person is not a deposit customer of ours, as long as the branch at which the check is sought to be cashed generally does not cash checks drawn on the account of any customer of ours that are presented fur payment at the branch by persons who are not our deposit customers, other than pay- roll checks that have been issued by a deposit customer that are cashed by the branch for persons who are not our deposit customers pursuant to a check cashing arrangement that the branch has agreed to with its customer. You fur- ther agree that our refusal to cash your written check in any such instance shall not constitute a wrongful dishonor of the check by us and that we shall have no liability to you in connection with our refusal to cash the check, regardless of the consequences to you because of our so doing. CHECK It:ASHING FEES If you issue a check drawn on your account with us and someone who is not a deposit customer of ours seeks to cash it at one of our branch offices, we reserve the right ::0 charge a service tee to that individual as a condition to cashing the check. By continuing to maintain your account with us, you agree that it shall not constitute wrongful dishonor if we refuse to pay such a check because the individual seeking to cash the check declines to pay such service tee. CHECK leASHING IDENTlRCATlON REQUIREMENTS If you issue a check drawn on your account with us and someone who is not a deposit customer of ours seeks to cash it at one of our branch offices, we have the right not to pay the check if the person who presents it for payment fails to provide us with such reasonable identification as we may request, and, if presentm:nt by such person of the check is made on behalf of another person, such reasonable evidence of his or her authority to do so as we may request. You agre e that our reasonable identification requirements may include such documentary forms of identification (such as a passport or driver's license) and/or physical furms of identification (such as a thumbprint signature) as we may from time to time establish. PREAUll1l0RIZED DEBITS If you vcluntarily give information about your account (such as our routing number :md your account number) to a person who is seeking to sell you goods or services and you do not physically deliver a check to that person, any debit to your account initiated by the person to whom you gave the informa- tion shall be deemed to be authorized by you. I I I STANDJIUID OF CARE You acknowledge that modem check processing is automated and agree that our duty of ordinary care in check processing shall be satisfied if we have regu- lar routiTIe procedures for identifYing unauthorized check transactions (whichemay, but need not, include procedures fur verifYing check signatures) and we follow those procedures. You agree that we do not fail to exercise ordinary care in paying a check drawn on your account solely because our procedures do not provide for a sight-review by us of checks drawn on our deposit cus- tomers' accounts, or provide for such sight-review in the case of checks above an establIShed threshold amount or on a sample basis. You further recognize that automated check processing procedures rely primarily on information encoded onto each check in magnetic ink and agree that, in paying any check drawn on your account, we may properly disregard all information on the check (including any legend or language written on the check that restricts or imposes conditions on its payment) other than the identity of the drawee bank, the: amount of the check and any other information encoded onto the check in magnetic ink according to generally accepted banking standards, whether or not that information is consistent with other information included on the check. 17 STOPPING PAYMENT OF CHECK You or anyone else authorized to si h ck . order us not to payor certify f a c.e wntten on your account can check was signed by someone e:::t ~ e~ wnttehn on your account even if the 1 Th' . e not ave to follow the order unless: . e order illcludes: a. The exact account number of your account' b. The exact amount, date and number (if an;) of the check' c. The name, exactly as it appears 0 th h ck f ' order the check is payable; and nee e , 0 everyone to whose d. The name exactly as it th the check. ' appears on e check, of everyone who signed 2. If the check is a certified check or an official M&T B . tlOnal requirements of a licabl I ank check, all addi- given until a specified rJ:~ after ~:wh(fo: .examl?le, the order not being document statin that th ch c ec IS certified and our receipt of a M&T Bank li g e ec~. has been lost, stolen or destroyed) and . po cy are mer. AdditIonal restrictions may apply. We will not have to follow the order until h record it against your account The d ~ ave had a reasonable time to after the date it is recorded a' ain or er cease to be effective 6 months order can be given orally (for !x~t{o;: aClco~t unless it .is renewed. The confirmation of the order recorded ~~ Is ~~~ 0:J' We ~ send. a written canceled in writing by ou A st remam eikctIve unless months at a time An y 'a1 fthoP payment order can be renewed for 6 b. . yrenew 0 eordermustbed . " e receIved by us in a reasonable time for u o!1e ill .wntmg and must befure the previous order ceases to be ffi s ~o re~~rd It agamst your account on the date it is recorded against YOur e eCtIve. d e. renewal will take effect months after that date. account an will cease to be effective 6 You or anyone else authorized to si a ch ck . cancel any order not to payor cerm;n h cl :-vntten on your account can t?e order was given by someone else ~ ~ wntt~n on your account even if tIon unless it is in writin and tiI' e not ave to follow the cancella- against your account. g un we have had a reasonable time to record it We will in good faith rry: 1. Not to payor certifY any check written been properly ordered not to pay or certify~':n~our account that we have 2. To payor certify any check written on . not to payor certifY has been properly c~~:~~count fur which an order We may be responsible if we fail to exercise ordin,ro . -J care to: 1. AVOId paying or certitying an ch k . have been properly ordered nor to ec wntrtifyte.n on your account that we 2. Filth payorce ;or ~~~ one !o~~~c~=t~lIation of any order not to payor certify a check We will have exercised that ordinouy care if: 1. We act in good faith; and 2. We have a reasonable system fur comm . . cancellations of orders of that t umcatmg orders of that type and to receive the check and w type obol ~ employees who would be likely routine. ' e reasona y lollow the system as a matter of We shall not be responsible for a' an ch . even if we have been properly ord~r~ng t tY eckth wnchtten ?n your account, o 0 pay e eck if: 1. Our payment of the check di h db' . obligation to pay; or sc arges a e t you owe that you had a legal 2. We pay the check upon our receipt f . . fonn of an ACH d b' 0 a notIce of Its presentment in the d b. e It enrry to your account in case h th e It enrry relates to a check that is eI tr . all s were eACH ec OIlIC y represented for payment 18 .. \ after its return for insufficient or uncollected funds, or to a check you have issued and sent through the United States mail or delivered to a drop box to a mecchant or other vendor in payment for goods or services that, in accordance with prior notice provided to you by the merchant or other vendormd pursuant to the Rules of the National Automated Clearing House Association (the "ACH Rules"), such merchant or other vendor convertt:d to an ACH debit enrry for electronic presentment against your account, unless (i) you notity us, within 15 days from the date we send or deliver } our statement on which the ACH debit enrry appears, that, at the time tht: ACH debit enrry was recorded against your account, the check to which it relates was subject to an existing stop payment order, and we do not recredit your account for the amount of such check promptly upon Ol1r receipt of such notification, or (ii) we are able to recover the amount of the check from the financial institution that transmitted the ACH dc:bit enrry to us. INTEREsr-BEARING CHECKING ACCOUNTS For internal bank operating purposes, each interest-bearing Checking account consists of two subaccounts: an interest-bearing checking subaccount and a savings subaccount. For all other purposes, an interest-bearing Checking account is treated as a single account. Both subaccounts pay an identical inter- est rate and. annual percentage yield on account balances. The statement fur the account and any record of the account at an automated teller machine will reflect the ;lCCOunt as a single account and will not reflect the subaccounts in any way. All terms and conditions of this agreement, all the provisions of the Specific Features and Terms governing the account, including (but not limited to) those that llovern the way the account may be used, the interest the account eams, mini:num balance requirements and funds availability, and all account fees and cr.arges, apply to the account as a whole without reference to the subaccounts, except as provided in this section. For internal bank operating purposes, all checks and other debits against an interest-be2ring Checking account are paid from, and all deposits to an inter- est-bearing Checking account are credited to, the checking subaccount. At various tim:s during each calendar month, if the checking subaccount balance exceeds a Ihreshold amount set by us, all funds in excess of the threshold amount may be transferred to the savings subaccount. We also make tranSfers from the available funds in the savings subaccount to the checking subaccount as needed 1:0 pay checks and other debits presented against the account. On the sixth trmsfer from the savings subaccount in a calendar month, the entire balance of the savings subaccount is tranSferred to the checking subaccount for the remainder of the calendar month. These transfers to and from the checking subaccount will be the only transactions on the savings subaccount. Because the subaccounts are for internal bank operating purposes only, you cannot access the savings subaccount directly. These bank -initiated tranSfers between the subaccounts are not shown on the statement for the account and are not subject to any fees. NON-INTEREST -BEARING CHECKING ACCOUNTS For intemu bank operating purposes, each non-interest-bearing Checking account consists of two subaccounts: a non-interest-bearing checking subac- count and a non-interest-bearing savings subaccount. For all other purposes, a non-intere:.t-bearing Checking account is treated as a single account. Neither subaccounl: pays any interest. The statement for the account and any record of the account at an automated teller machine will reflect the account as a single account and will not reflect the subaccounts in any way. All terms and conditions of this agreement, all the provisions of the Specific Features ~t1d Terms governing the account, including (but not limited to) those that govern the way the account may be used, minimum balance requirements and funds availability, and all account fees and charges, apply to 19 u.t'/.p", W," -{ " 1 i \ I i the account as a whole without reference to the subaccount', except ,1S f'l'O vided in this section. For internal bank operating purposes, all checks and other debits against .J non-interest-bearing Checking account are paid from, and all deposits t() .J non-interest-bearing Checking account are credited to, the checking sub.le- count. At various times during each calendar month, if the checking SUb.ll count balance exceeds a threshold amount set by us, all funds in excess of the threshold amount may be transferred to the savings subaccount. We ,lis" make transfers from the available funds in the savings subaccount to the checking subaccount as needed to pay checks and other debits presented against the account. On the sixth transfer from the savings subaccount in :1 calendar month, the entire balance of the savings subaccount is transfen'ed to the checking subaccount for the remainder of the calendar month. Thest transfers to and from the checking subaccount will be the only transactions 011 the savings subaccount. Because the subaccounts are for internal bank operat, ing purposes only, you cannot access the savings subaccount directly. These bank-initiated transfers between the subaccounts are not shown on the state, ment for the account and are not subject to any fees. IF FEES EXCEED BALANCE AVAILABLE FOR WITHDRAWAL If the amount of any fee applicable to your account exceeds the balance avail, able for withdrawal from your account when the fee is charged against your account, and your account is tied to a line of credit account, you will be con, sidered to have made a request for a loan under that line of credit account in the amount of that excess. ELECTRONIC PRESENTMENT OF CHECKS You agree that we can pay any check drawn by you (or someone authorized by you) on your account in advance of our receipt of the actual check, if we have received from the bank in which the check was deposited electronically transmitred information identifYing the check that includes our routing num- ber, your account number and the sequence number and dollar amount of the check. ELECTRONIC REPRESENTMENT OF CHECKS RETURNED FOR INSUFFICIENT OR UNCOLLECTED FUNDS If, because of insufficient or uncollected funds in your account, a check drawn on your account that is presented to us for payment is returned unpaid, we can, but we will not have to, debit your account for the amount of the check if, subsequent to our dishonor of the check, it is electronically represented to us for payment through the Automated Clearing House network in the fonn of a debit entry to your account. In the event we pay any such electronically represented check, payment of the check will be reflected on your statement covering the period in which it was paid, but the check will not be returned with your statement. CHECKS ISSUED AND SENT THROUGH THE UNITED STATES MAIL OR DEUVERED TO A DROP BOX TO MERCHANTS AND OTHER VENDORS IN PAYMENT FOR GOODS OR SERVICES We can debit your account for the amount of any check that you have issued and sent through the United States mail or delivered to a drop box to a mer- chant or other vendor in payment for goods or services if, in accordance with ACH Rules, such check is converted by the merchant or other vendor to an electronic debit entry to your account and is transmitted to us for payment through the Automated Clearing House network. In the event we pay any such electronic debit entry to your account, its payment will be reflected on your statement covering the period in which it was paid, but the check to which the electronic debit entry relates will not be returned with your statement. 20 ~ \ .~,' .~ p-' f ~ ,~'T}~-Pi,,~ ' .;, ,- ~4~""'~"""'I'J~""""""''"''''"'''--;''''''''''' ''l TIME I)IEPOSIT ACCOUNTS . The 1dlo\'o in~\ rules :\pply ;" Time Deposit accounts established WIth us, other 111.\11 l-lolid.J\' or SaYll1gs Club -llCount,. AUTOMATIC RENEWAL. . esa I: If your KCOlmt tS suhject to alltomanc renewal, the followmg ruJ pp Y . . 1 '. "0 we will automatlcally renew your t. E^-cep\ a; pro, !ded 10 t us dSCC on, h maturity date of your account, ,lCCount .It the end of the ay ~n eac nt on deposit in your account as whiCh !TIt'ans that we w]l1 treat t eaa::t until a new maturity date. The of that rime as on depmlt. m your c th rority date on which the auto- term of)' our account beglllll~g on aI ~om~e term of your account ending matie renewal t,\kl" place will e equ. f1 om you a written request to us on that maturity date unless we receIVe r that it be different. .' th 'ty date on f 'count begmnmg on e matun 2. During the term o. your ac interest earned on money in which the automaUc renewal tak~s p~a~:;e and method no less tavorable your acwunt Will be comp~:o~sre~t tavorable to a depositor to be used to you than th.e Dte and m in an other automatically renew- in computing mterest earned on money f the Ysarne type opened on that able Time DepoSit account ~th dUS 0 't equal to the balance of your maturity date with an opemng ethPos1 turity date and having the new account 3S of the end of the d~y on at ma matUlity date as its first matunty date. d f th d on . count at the en 0 e ay 3. We ",ill110t automatlcally renew your ac tu . 11' date of your account if: . any ;~~or: that maturity date, we send or deliver to ~ou a written notice a. th . will not automatically renew your account, . at \ ,e . written notice not to b. On or before that maturity date't ';;.~:cye~~ ~r someone else autho- autonatically renew your accoun rized to notity us not to do so; or . W' are prohibited by applicable law from domg so. c. C . ccount at the end of the day on 4. If we do not automatically renew yo~ a . date will be the final any maturity date of your account, at matunty maturity :late of your account. DELAY IN WITHDRAWAL. unda or federal holiday, [f ,my maturity date of your account l\\:ea:~ar~ She wi~drawn from your money then in your acco~lllt may no aCCOlmt until onr next busmess day. ON AND AI=TER FINAL MATURITY DATE . d aft th final maturity date of your account, money III your aCcOl~t On an er e. d de osit with us until a new matunty wiJInot be automatically treate as on J: if th final maturity date is a c1ate and will not earn interest, exc~t at, willeearn interest through the Saturday, SWlday or fed~ra1 h:da~er e~o~~ maturity date at the interest ~~: ~:~~:~c~tb~~~: da/ before the final maturity date. UMITATION ON EARLY WITHDRAWAL befo th first We will not have to allow mone6ede~::~~;:: ;c;::ount ~fo~ that maturity date. of your account to WI .' t on or after any maturity date, to allow money ~epo~~:;~:rma~~~ccount before the maturity date of your account to e WI . an ce period for next maturity date of your ac:unt or't ~~~~u:~ as ~~eposit in your your account, to allow moneyd at w~ a .thdrawn from your account before account until a new matunty ate to e WI the new mamrity date. 21 ------- PENALTY FOR EARLY WITHDRAWAL A pen<ilty may be imposed if money deposited in your account before the first matunty date ~f your account is withdrawn from your account before that ~atunty date, if money deposited in your account on or after any maturity ate of your account is withdrawn from your account before the next maturi- ty date of your account or if money that we at any time treat as on deposit in your account until a new maturity date is withdrawn fro bet< th. m your account ore. e new matunty date. The penalty will be imposed unless the with- <!rnwal IS made before the first maturity date, next maturity date or new matu- nty date and after any owner of your account dies or is declared legally incom- pete~t b~ ~oUrt or administrative body. The amount needed to cover the pen ty e t~en first from the amount remaining on deposit in our account and then, ifnecessary, from the amount of the withdrawal. y JOINT ACCOUNT WITH RIGHT OF SURVIVORSHIP FOR ACCOUNTS AT OUR NEW YORK BANKING OFFICES: INTRODUCTION Ify<;>ur account is opened in the names of two or more individual . t will b a JOillt account with right of survivorship unless it is a fiduciary 0; ~ustodi~ account. New York State law requires us to give all of you this notice t . som.e of ~e le!?a1 con.sequences of opening a joint account ~~w;.:;h~ sUMvorshi~. It IS not ~ten~ed to explain all those legal consequences and cbonsde9uebnl y, consultanon WIth an attorney before opening your accoun~ may e a VIsa e. JOINT TENANCY All money deposited in your account and all interest earned on mone in our account will. ~ presumed by New York State law to become the ~ Y of all of you as JOillt tenants no matter who deposits money in your a!co~: SURVIVORSHIP :vter any of you dies, we can, unless a coUrt tells us not to do so treat mone ill your account as the sole property of those of you who survive. ' y WITHDRAWALS If we do not receive a written notice signed by any of you and notifYin not to d~ so, we can, without incurring any liability to an of ou a g us ~~~~k ;mtten.~n your account and signed by any ofyou,Yhon~r::.n~ ~~~ allo: or a WI drawal of money from your account given by any of you or wheth:n~ of hOu t? wI~draw money from your account. We can do so made b r e c /ck. IS ~tten, the other order is given or the withdrawal is y any 0 y:ou while ~ of you are alive or by any of you who survives after <I?J~ you dies. Thus, if we do not receive the written notice any of you can ~ w.or order.the withdrawal of all money in your acco~t. After we receive the wntten nonce, we can require that any withdrawal f fr your acco~t be authorized in a writing signed by or on be~ rr;.~ey f om who are alive when we receive the written notice. 0 0 you 22 .. \ CREDITOIRS We may b~ required by legal papers served on us to pay money in your account to satisfY indebtedness of any of you arising from a judgment or in any other way. Also, we may be able to take money in your account to pay indebtedness of any of you to us. FOR ACCDUNTS AT OUR PENNSYLVANIA BANKING OFFICES: INTRODUCTION If your aC(Qunt is opened in the names of two or more individuals and is payable on request to one or more of them, it will be a joint account with right of su rvivorship, without regard to whether mention is made in the account opening documents or in any other record maintained by us with respect to the account of any right of survivorship, unless it is a fiduciary or custodial account or an account in the name of a husband and wife as tenants by the entireties. OWNERSHIP DURING UFmME OF JOINT ACCOUNT PARnES All money deposited in a joint account and all interest earned on money in the account is presumed by Pennsylvania law to belong, during the lifetime of all account parties (i.e., all individuals in whose name the joint account is opened), to such parties in proportion to the net contributions made by each of them to the balance on deposit in the account unless there is clear and con- vincing evidence of a different intent. The respective ownership rights of the joint accOlmt parties shall not affect our administration of the account, our rights with respect to the account or the terms and conditions that govern the account, including, among other things, our ability to payout any money in the account during the lifetime of the joint account parties upon the autho- rized order of any of them, without regard to their ownership of the funds in the accoUl1 t. RIGHT OIF SURVIVORSHIP Any sum remaining on deposit in a joint account upon the death of an account party is presumed by Pennsylvania law to belong to the surviving account party or account parties as against the estate of the deceased account party un/e:is there is clear and convincing evidence of a different intent at the time the a,:count was established. If there are two or more surviving account parties, their respective ownership interests in the account during their life- time shall be in proportion to their respective ownership interests in the account p]~or to the death of the deceased account party augmented by an equal per capita share for each surviving account party of any interest the deceased "ccount party may have owned in the account immediately befOre his or her death and the right of survivorship continues as between the surviv- ing aCCOUl1t parties. Upon the death of a party to a joint account, in the absence of a coUrt order telling us not to do so, we can payout any money in the accowlt upon the authorized order of any surviving account party, with- out regard to the ownership of the funds in the account and notwithstanding that we m ~y have received any notice from the estate of the deceased account party or any other third party claiming ownership rights to the money on deposit in the joint account. WITHDRAWALS If we do not receive a written notice signed by any of you and notifYing us not to do so, we can, without incurring any liability to any of you, pay any check wrilten on your account and signed by any of you, honor any other order for ~ withdrawal of money from your account given by any of you or allow any of you to withdraw money from your account. We can do so whether tae check is written, the other order is given or the withdrawal is 23 ., made by any of you while all of you are alive or by any of you who swvives after any of you dies. Thus, if we do not receive the written notice, any of you can withdraw or order the withdrawal of all money in your account. After we receive the written notice, we can require that any withdrawal of money from your account be authorized in a writing signed by or on behalf of all of you who are alive when we receive the written notice. CREDITORS We may be required by legal papers served on us to pay money in your account to satisfY indebtedness of any of you arising from a judgment or in any other way. Also, we may be able to take money in your account to pay indebtedness of any of you to us. FOR ACCOUNTS AT OUR MARYLAND, VIRGINIA, WASHINGTON, D.C. AND DELAWARE BANKING OFFICES: INTRODUcnON If your account is opened in the names of two or more individuals and is payable on request to or upon the order of one or more of them, it will be a joint account with right of swvivorship, without regard to whether mention is made in the account opening documents or in any other record maintained by ~ with respect to the account of any right of swvivorship, unless it is a fiduaary or custodial account, or the account is opened at any of our Virginia banking offices and the account opening docwnents specifically identifY the ownership of the account as being joint without swvivorship. ADMINISTRATION OF JOINT ACCOUNT DURING UFETlME OF JOINT ACCOUNT PARTIES The respective ownership rights of joint account parties in and to the monies on deposit in their joint account and any interest earned thereon shall not affect our administration of the account, our rights with respect to the account or the terms and conditions that govern the account, including, among other things, our ability to payout any money in the account during the lifetime of the joint account parties upon the authorized order of any of them, without regard to their ownership of the funds in the account. RIGHT OF SURVIVORSHIP Upon the death of a party to a joint account with right of survivorship, in the absence of a court order telling us not to do so, we can payout any money in ~e account upon the authorized order of any surviving joint account party, Without regard to the ownership of the funds in the account and notwith- standing that we may have received any notice from the estate of the deceased joint account party or any other third party claiming ownership rights to the money on deposit in the joint account. WITHDRAWALS If we do not receive a written notice signed by any of you and notifYing us not to do so, we can, without incurring any liability to any of you, pay any check written. on your account and signed by any of you, honor any other order for a WithdraWal of money from your account gIVen by any of you or allow any of you to withdraw money from your account by any means we make available for the withdrawal of funds from deposit accounts opened with us. We can do so whether the check is written, the other order is given or the withdraw~ is made by any of yO? while all of you are alive or by any of you who SUrYIVes after any of you dies. Thus, if we do not receive the written notice, any of you can withdraw or order the withdrawal of all money in your account. After we receive a written notice from any of you directing that we 24 "- \ - not allow anyone or more of you to withdraw .or order the withdrawal, by check or otherwise, of money in your account, W1thO?t the consent of one or more other parties to the account, to the extent perrmtted by law, we can, but will not tave to, require that any withdrawal of money from your ac~ount be authorized in a writing signed by or on behalf of all of you who are alive when we receiV': the notice. CREDITIDRS We may be required by legal papers served o~ .us to pay I?oney in yo~r account to satisfY indebtedness of any of you ansmg from a Judgment or m any other way. Also, we may be able to take money in your account to pay indebtedness of any of you to us. FOR ACCOUNTS AT OUR WEST VIRGINIA BANKING OFFICES: INTRODUCTION If your account is opened in the names of two or more individ~als .and is payable on request to or upon the order of one or more of them, It ~ be .a joint account with right of survivorship, without regard to whether m~ntl<.>n IS made in the account opening documents or in any o~er re~ord mam~ed by us with respect to the account of any right of sUMVorship, unless It IS a fiduciary or custodial account. ADMINISTRATION OF JOINT ACCOUNT DURING UFETlNIE OF JOINT ACCOUNT PAR11ES The respl:ctive ownership rights of joint acc?unt parties in and to the monies on depo!it in their joint account and any mteres~ earned. thereon shall not affect our administration of the account, our nghts WIth resp~ct to .the account or the terms and conditions that govern th~ account, mclu~g, among other things, our ability to p~y out any money m. the account dunng the lifetime of the joint account parties upon the au~onzed order of any of them, without regard to their ownership of the funds III the account. RIGHT OF SURVIVORSHIP Upon thl: death of a party to a joint account, in the .absence of a court order telling us not to do so, we can payout any money m ~e account upon the authorized order of any surviving joint account. party, ~thout regard to the ownership of the funds in the account and notWIths~ding that we may have received ;my notice from the estate of the deceased Jomt account parry <,>r any other third party claiming ownership nghts to the money on depoSit m the joint account. WITHOllAWALS If we do not receive a written notice signed by any of you and notifYing us not to do so, we can, without in~g any liability to any of you, pay any check written on your account and Signed by any of you, honor any other order for a withdrawal of money from your account glVen by any of you or allow any of you to withdraw money from your acc~:)Unt by any means ~ make ava:lable for the withdrawal of funds from depoSlt accoun~ oJilCned With us. We c~n do so whether the check is written, the other ~rder IS gtVen or the withdrawal is made by any of you while all of you are alive or. by any o~ you who survives after any of you dies. Thus, if ~e do not receive the ~tten notice any of you can withdraw or order the Withdrawal of ~ mo~ey m your acco~t. After we receive a written notice from any of you dire~g that we not allO'N anyone or more of you to withdraw or order the WithdraWal, by check or otherwise, of money in your account, without the .consent of on~ or more orb er parties to the account, we can either (a) reqwre that any W1th- 25 .---...- 'fll.'n~"'l\_ _lm~ltllillRfm't:t:ilr~""" ' 'r' drawal of money from your account be authorized \l1 a writing, >Jgned by " on behalf of all of you who are alive when we receive the nooce, or (b) treJI the notice as a request to end the joim account relatiollship, in wllleh case, In may close the account in the name of whomever ohou sent us the notice or transfer the balance remaining on deposit in the aCCOlUJI to another account opened with us in the name of such party. CREDITORS Unless we receive prior written notice not to permit It, all of the money in your account may be pledged as security fi)r a loan or debt by allY of you. We may be required by legal papers served on us to pay money in your account to satisJy indebtedness of anyone of you arising from a judgment or in any other way. Also, we may be able to take money in your account to pay indebtedness of any of you to us. JOINT ACCOUNT WITHOUT RIGHT OF SURVIVORSHIP FOR ACCOUNTS AT OUR VIRGINIA BANKING OFFICES ONLY INTRODUCTION If your account is opened in the names of two or more individuals and is payable upon request to or upon the order of one or more of them, it will be a joint account with no right of survivorship only if the account opening doc- uments (or, in the absence of account opening documents, other records maintained by us) with respect to the account specifically identiJy the owner- ship of the account as being joint without survivorship. ADMINISTRATION OF JOINT ACCOUNT DURING UFmME OF JOINT ACCOUNT PARTIES The respective ownership rights of joint account parties in and to the monies on deposit in their joint account and any interest earned thereon shall not affect our administration of the account, our rights with respect to the account or the terms and conditions that govern the account, including, among other things, our ability to payout any money in the account during the lifCtime of the joint account parties upon the authorized order of any of them, without regard to their ownership of the funds in the account. DEATH OF JOINT ACCOUNT PARTY Upon the death of a party to a joint account with no right of survivorship, in the absence of a court telling us not to do so or our receipt of a written notice ,)f such party's decease, we can payout any money in the account upon the authorized order of any surviving joint account party, without regard to the ownership of the funds in the account. Upon our receipt of written notice Ihat a party to a joint account has died, we may properly refilse to permit any fUrther withdrawals from the account ordered by any surviving joint account party or parties until we have been provided with written instructions, in form and substance satisfactory to us, signed by all of the remaining joint account parties and the legal representative of the deceased joint account party's estate (or such other person who is legally authorized to act on behalf of the deceased joint account party), advising us as to the disposition of the funds remaining in the joint account or the person or persons authorized to order the withdrawal offunds from the account if the account is to remain open, or, alternatively, we are in receipt of a court order directing us as to whom to make payment of the funds in the account. 26 ... \ ~_~r-"'~'C-. '.111 ~ ,~~ ~. [ n .W'.' WITHDRAWALS . . It \\ c de not rec<.:i\'c \\ tilten notice signed by any of you and no~~ ~h~~~ to do so wc C 111 without mcumng any liability to any of you, PthY Yd f1 \I ntlcn ,;]1 YOl;r ,;ccount md signed by any of you, honor any 0 er or er or .l \\ilhdraw;U of money !Tom your accou.nt glVen by any of yo~ o~~~~va:r. 01' you t-J withdraw money from your account by any means e . W .\hle for the withdrawal of fu~ds from depOSit accounts opened WI~U~th~ . 10 S::J whether the check IS wntten, the other order IS given or e h c.m 'a] i: made by anv oEvou while all of you are alive or by any of you w 0 ~l::VeSc atl;r any O(YOll -dies if we have not received writt~n nonce. of th~ death. Thus, if we do not receive the wntten nonce (or ~ wntt:~on~eo~~1 onc of you has died), .my of you can wIthdraw or order ti e;:m anWy of you mane in our account. After we recelVe a wntten no .ce direcdng ~at we not allow anyone or more of.you to WIthdraw or.:der:e \\~thdrawal by check or otherwise, of money m your account, WI ou~ ~ consent of ~ne or more other parties to the ac~unt, to t?~::1 ~r::~~ \'" law we can but will not have to, reqmre at any WI h 'J" . d' ..' d by all of you w 0 are trom vour account be authonze m a wnong slgne ,llive When we receive the notice. CREDITORS . We may be required by legal papers served o~ .us to pay '!loney III YO';1r \Ccount to satislJ indebtedness of any of you ansmg from a Judgment or Ul :my other way. Also, we may be able to take money in your account to pay an in,kbtedlless of any of you to us. NOTICE CONCERNING MUa.:1rIPLE-PARTY ACCOUNTS FOR ACOOUNTS AT OUR MARYLAND, VIRGINIA, WASHI~IGTON, D.C. AND DELAWARE BANKING OFRCES ONLY. If vour a,-count with us is a "multiple-party account," unless the Dep?slt \ccount "Opening Request, signature card, or l?ther ~co':lnt openI~g ~lOL"llment signed by the parties thto thfune adscc?untchPro~~~~ s~~~r: th~ j th f party to the account e m su a . . f this L ea 0 a ..' d 'th the terms and proVISlOns 0 ,urvivin party or partles ill accor ance W1 . f g c A "multiple-party account" includes any of the fullowmg types 0 ,Igreemen ,. ,ICCOunts with us: . d . 1,1) Payable On Death or P.O.D. acco';1llt, ~hich ~:y~c:~~c~~U::y ~ the name of one (1) or more pattles w ere ,., d drawn u on: (i) by one (1) party during the party s life~e ~ .' .upon such p~'s death, by one (1) or more P.O.D. payees (I.ebefdivi~~ designated on the account as persons to whom the account ongs t the death of all parties to the account and who do n?t ~ssess a presen ri ht to draw upon funds in the account during the ~Oll1e ?f any p~ t; the account), or (ii) by one (If)allor mfore~~::~y ~~(~~r:~ lifetimes and upon the death 0 0 suc "'--'. ' e POD ay~s as more particularly described in the seroon of this agre - ~e~t tild "Deposits In Trust And Payable On Death Accounts"; . (b) Trust Account, ~hich is ~y ac~ount (ot,her ::m ~ fiducia;ro}C~~~\ ~~ ing from a fidUCIary relauonship) establishe bem efie. ~ where (i) none more ,arties as truStees for one (1) or more n ~anes.. !ish d ofthe1beneficiaries is also a trustee, (ii) the trust relauonship IS ~~ti~n by the account agreement and not under a tesramentaryfrtrUstth' e t th h 'gnificance apart om e acroun , of trUsr or a trust agreement at as Sl than th and (iii") there is no corpus of or property held by the trUst other e 27 /- funds in the account, and (iv) the terms of the account provide for the funds in the account to be drawn upon (A) by one (1) party (i.e., trustee) during the party's lifetime and, upon such party's death, by one (1) one or more beneficiaries, or (B) by one (1) or more parties during their respective lifetimes and, upon the death of all of such parties, by one (1) or more beneficiaries, as more particularly described in the section of this agreement titled "Deposits In Trust And Payable On Death Accounts"; (c) Joint Account, which is any account other than a Payable On Death account or a Trust account established in the name of two (2) or more parties, as more particularly described in the section of this agreement titled "Joint Account With Right of Survivorship." DISCLOSURE STATEMENT REQUIRED BY ELECTRONIC FUND TRANSFER ACT DERNmONS OF SOME TERMS In this disclosure statement: 1. "We," "us," "our" and "ours" mean Manufacturers and Traders Trust Company, One M&T Plaza, Buffalo, New York 14203; 2. "You" and "your" mean all the individuals signing a Deposit Account Opening Request provided by us; 3. "Your Checking account" means any Checking account we open in response to that Deposit Account Opening Request if the account is established primarily for personal, f.unily or household pwposes; 4. "Your Savings account" means any Savings account we open in response to that Deposit Account Opening Request if the account is established primarily for personal, f.unily or household pwposes; and 5. "Electronic transfer" means any transfer of funds to or from your Checking account or your Savings account that is part of a series autho- rized in advance and begun through an electronic tetnlinal, telephone, computer or magnetic tape other than any transfer of funds under any agreement between you and us providing that, without a specific request from you, we will make transfers of funds from us to your Checking account or your Savings account or from your Checking account or your Savings account to us, to any loan account with us or to any other deposit account with us open in your name, whether alone or also in the name of someone else, or in the name of a member of your f.unily, whether alone or also in the name of someone else. An electronic transfer does not include, for purposes of this disclosure statement, any transfer of funds to or from your Checking account or your Savings account that is made by use of your M&T ATM Card or Visa. debit card (which we refer to as an M&T Check Card or a Portfolio Management Account card) or the access device associated with such card at electronic fucilities at which your card or access device may be used. Electronic fund transfers to or from your Checking account or your Savings account that are made by use of your M&T ATM Card or Visa debit card or the access device associated with the card, including, but not limited to, electronic fund transfers made at our automated teller machines (ATMs), the M&T Telephone Banking Center automated voice response unit, and ATMs and point-of- sale tetnlinals in networks of shared electronic facilities in which we partic- ipate (for example, NYCE., Cirrus., STAR. or Visa networks) are subject to and governed by the terms and conditions set forth in our Electronic Banking Card and Telephone Transaction Disclosure and Agreement. TYPES OF ELECTRONIC TRANSFERS The following kinds of transactions involving your Checking account or your 28 .. \ r Savings account are types of electronic transfers: 1. Tht: direct deposit of Social Security benefits to the account by the federal government; 2. The: direct deposit of your pay to the account by your e~ployer if begun by an electronic tetnlinal, telephone, computer or magnetIc tape; 3. The: direct deposit of dividends or simalilar rlecuhrring payments to the account if begun by an electtonic termin , te ep one, computer or mag- netic tape; and 4. The transfer from the account of insurance premiums or similar recurring payments if begun by an electronic terminal, telephone, computer or magnetic tape. UMmmONS ON ELECTRONIC TRANSFERS .., No more than 6 transactions of the following kinds of transactIons mvolvmg your Savings account can be made during any calendar month: 1. Electronic transfers from the account; 2 Other preauthorized or automatic or telephonic transfers of funds from . thelCcount to another deposit account with us or to a third parry; and 3. Transfers of funds from the account to a third parry made by a check, draft or other order or by using an e1ecttonic banking card. No more than 3 of the 6 transactions can be transfers of funds fro~ your account to a third party made by a check, draft or other order, or by usmg an electronic banking card. STATEMENTS We will send or deliver a statement fur your Checking account to you appr?x- imatel once a month. Unless your Savings account is an account fur which . Y assbook we will send or deliver a statement for the account to we ISSU(: a P" d fro th you at kast quarterly if no e1ectromc transfers have been ma e to or m fue account. A statement for your Savings account (other than an account r which we issue a passbook) will also be sent to you on. the monthly cycle date for your Savings account if there have been .e1eerromc transfers made to or from the account in the period since th.e pnor monthly cycle date. If your Savings account is linked to your Chec~g account .for sta~ement purposes, the statfment for your Savings account will be combmed WIth the statem~nt for your Checking account and will be sent to you on the. monthly cycle te for your Checking account. Any statement fur your Checking account ?r your Savings account will s~ow all transactions credited to or charged agamst the account during the penod covered by the statement. PASSII,OOK If your Savings account is an account for which we issu~ a passbo?k and you bring the passbook to any of our banking offices, we will record m ~e pass- book at: electronic transfers made to the account since the last tIme we recorded electronic transfers in the passbook. VERIA'ING ELECTRONIC TRANSFERS If you have arranged with us to have electronic transfers made to yo~r) Checking account or your Savings account, you can telephone us at (7L 626-1900 or 1-800-724-2440 to find out whether any of the rransfers been made. UABILlITY FOR FAlWRE TO MAKE ELECTRONIC lftANSFERS With some exceptions we will be liable to the extent provided by a.ppliC3b~e law for damages you 'suffer as a result of our fuilure .to make an e1ectrolllc transfer on time and in the correct amount according to any agreement 29 I , I \ I , between you and us concerning the transfer. Examples of exceptions to our liability are as follows: 1. The transfCr is to be made from your Checking account or your Savings account, and through no fault of ours the amount of the transfer exceeds the balance available for withdrawal from the account plus, if the account is your Checking account and the account is tied to (a) a line of credit account, the amount of credit then available under the line of credit account or (b) another deposit account as a source of overdraft protection, the amount then available for withdrawal from sum other deposit account; 2. The transfer is to be made from your Checking account or your Savings account, and money in the account is subject to a court order restricting its removal from the account or is the subject of a dispute; 3. An occurrence beyond our control (such as a fire or flood) prevents the transfer despite our exercise of reasonable care to prevent the occurrence and our exercise of diligence to make the transfCr despite the occurrence; 4. A technical malfunction known to you at the time the transfer should have been made prevents the ttansfer; or 5. Our fuilure to make the transfCr is justilied by any provision of any agree- ment between you and us concerning your Checking account, your Savings account, any line of credit account tied to your Checking account or ttansfers to or from any of the accounts or by applicable law. CANCEWNG AUTHORIZATION FOR A SERIES OF PREAUTHORIZED ELECTRONIC TRANSFERS If you authorize us to make a series of electronic transfers consisting of insur- ance premiwns or similar recurring payments from your Checking account or your Savings account, you can cancel the authority and stop all future ttans- fers in the series by telephoning us at (716) 626-1900 or 1-800-724-2440, or by writing Manufacturers and Traders Trust Company, P.O. Box 767, Buffalo, New York 14240-0767, Attention: M&T Telephone Banking Center. We will not have to treat the cancellation as effective until 3 of our business days after the date we receive it. If you telephone the cancellation to us, we can require you to get a written confirmation of it to us within 14 days after the date you telephone it to us. In that case, the cancellation will cease to be binding on us 14 days after the date it was telephoned to us unless we receive the written confirmation during the 14 days. However, even ifwe do not receive the confirmation during the 14 days, we can continue to follow the cancellation even though it is no longer binding on us. You must confirm to us that you have notified the person to whom the series of transfers was to be made of the cancellation and provide a copy of that notice to us. We will be liable for damages you suffer as a result of our fuilure to comply with the cancellation at any time it is binding on us. STOPPING PAYMENT OF PARTICULAR ELECTRONIC TRANSFERS If you have arranged with us to make electronic transfers from your Checking account or your Savings account, you can order us to stop payment of any of the transfers. You can do so by telephoning us at (716) 626-1900 or 1-800- 724-2440, or by writing Manufacturers and Traders Trust Company, P.O. Box 767, Buffalo, New York 14240-0767, Attention: M&T Telephone Banking Center, in time for us to receive the order at least 3 of our business days before the date the transfer is schednled to be made. If you telephone the order to us, we can require you to get a written confirmation of it to us within 14 days after the date you telephone it to us. In that case, the order will cease to be binding on us 14 days after the date it was telephoned to us unless we receive the written confirmation during the 14 days. However, even ifwe do not receive the confirmation during the 14 days, we can continue to follow the order even though it is no longer binding on us. 30 .. \ T While we are following the order, we can, but we will not have to, allow any other e1ecttonic transfer from the account to the person to whom the trans~er was to be made. We will be liable for damages you suffer as a result of our fuil- ure to wmply with the order at any time it is binding on us. ELECl'RONIC TRANSFERS VARYING IN AMOUNT . At least 10 days before the date we make any of a series of related .electtOru~ ttansfers that may vary in amount and that are to be made to a parncular per son from your Checking account or your Savings account, we or that person will send or deliver to you a written notice of the amount of the tran~fer and the datI' the transfer is to be made. As an alternative to having the nonce sent or deli...~red to you before each of the transfCrs is made, you may be able to choose to have it sent or delivered to you only when the amount of any of the transfers will differ by more than a cen;ain am<;>unt set by you fr.o~ tJ:1e amount of the previous transfer in the senes or will fall outside certatn limits set by you. BUSINIESS DAYS . Our bminess days are Monday through Friday, excluding federal holidays. NOTICE OF UNAUTHORIZED ELECTRONIC TRANSFER If you believe that any e1ecttonic transfCr may have been or may be made without your authorization, you must contact us at once. You ~ do so by telepho.ning (716) 626-1900 or 1-800-724-2440, or by wntJDg Manu- facturers and Traders Trust Company, P.O. Box ?67, Buffalo, New York U:240-0767, Attention: M&T Telephone Banking Center. UABllrrY FOR UNAUTHORIZED ELECTRONIC TRANSFERS If any statement fur your Checking account or your Savings account ~ sc:n<I or deliver to you shows any electtOnic ttansfCr made without your authonzan~ <;>r any error in the account and you do not report the transfi:r or error to.us WIthin 60 days after the date we send or deliver the statement to you, you will have ~ bear the loss of money taken from the account after the end of those: ~ days we can show that the loss would not have occurred except fur your. failure to report the transfer or error to us. For a good reason (sum as. a long tnp or hos- pit~ stay by you), we will extend those 60 days a reasonable orne. DISCUlSURE In the t<~guIar course of our business, we will disclose info~atio~ a~t your CheckID account or your Savings account or any transacn~n lllvolving the accoun; in accordance with the M&T Bank CorporatIOn Consumer Information Poliey. IN CA~iE OF ERRORS OR QUESnONS ABOUT YOUR IELECTRONIC TRANSFERS TeI(phone us at (716) 626-1900 or 1-800-724-2440, or write us at: Manufacturers and Traders Trust Company P.O. Box 767 BufJaIo, New York 14240-0767 Attmtion: M&T Telephone Banking Center as soon as you can if you think your statement is wrong or if you need more information ;bout a transfer listed on the statement. We must h: from yO'a no later than 60 days after we sent the FIRST statement on whi the problem or error appeared. 1 Tell us your name and account number. 2: Des('ribe the error or the transfer you are unsure about, and explain as 31 clearly as you can why you believe it is an error or why you need more informatIon. 3. Tell us the dollar amount of the sUspected error. If you tell us ,:r~lIy, ';e ?Jay reqw,re that you send us your complaint or questI,:n III wntIng wltrun 10 busllless days. Please note that any notice transnutted to M&T Bank at any address other than the address indicated in this section, including but not limited to any e-mail address or web site will not constitute valid notice. , We will tell you the results of our investigation within 10 business days after we hear from you and will correct any error promptly. If we need more time how- ever, we may take ~p to 45 days to. investigate your complaint or question. If we decIde to do ~, w,e ~ recredit your accowlt within 10 business days for the amount you. think IS III error, so that you will have the use of the money dunng the ~e It takes .us t? complete our investigation. If we ask you to put your complamt or questIon m wntIng and we do not receive it within 10 busi- ness days, we may not recredit your account. If the transfer was started outside any state, territory or possession of the United States, the District of Columbia and Puert~ Ri~o, the 45-day period referred to in this section will be 90 days. If your claun mvolves an. eI.ectronic transfer to or from an account you have With us that took place Within 30 days after the first deposit to the account was made, each lO-business-day period referred to in this section will be 20 busi- ness days and the 45-day period refl:rred to in this section will be 90 days. 'Ye will tell you the results within 3 business days after we finish our investiga- ~on. If we deCIde that th~re was no error, we will send you a written explana- tIon. You may ask for copIes of the documents that we used in our investigation. DISCLOSURE REQUIRED BY AUTOMATED CLEARING HOUSE RULES INTRODUCTION Many preautho~ized electronic fund transfers are effected through the Automated Cleanng House (ACH) system. Each ACH payment is called an "e.ntry." If you have authorized recurring payments to or from your account usmg the ACH. system (fur example, if you have authorized direct deposit of you~ paycheck mto your Checking account, or if you have authorized direct debIt of your Checking acco~nt for dues payments to a health club), you should take note of the fullowmg Rules of the National Automated Clearing House Association (the ACH Rules). PROVISIONAL SEn1.EMENT Because ACH payments are arranged for in batches in advance each ACH payment is provisional until each financial institution involved has received fina! pa~ent for the ACH entry. For example, if you have authorized regular deblt entnes to your M&T Checking account to pay your health club dues by ACH cre~t entries to the health club's account at another bank, both ACH en~es ~ be made on the date you have authorized, but on a provisional baSIS. . If In fact you do not have sufficient available funds in YOur M&T depOSIt account on the payment date to pay M&T Bank for the amount of the ~ntry, so that M&T Bank can pay the health club's bank for the amount credited to the health club's account, the ACH entries will be reversed. In such.a case, your monthly dues payment to the health club would remain ~pJ1d. The club would be entitled to charge you a penalty or a returned- Item charge as well. Your account will also be liable fur an insufficient funds fee assessed by M&T Bank. Payment i~ also provisional if ~ou are th~ receiver of an ACH credit entry. For example, If you have authonzed the InSurance company that issued your 32 ... \ ~J ~~ ::...____'- ".....::..'1~ 1aJI annuity to make annuity p~yments by direct deposit into your M&T Bank depOSit account from the msurance company's deposit account at another bank, the ACH entry would be credited to your account on the scheduled paymellt date. However, if in fact the insurance company had insufficient funds in its deposit account, that bank would reverse the ACH debits to the insurar,ce company's account, and M&T Bank would not receive final settle- ment at the end of the day. In such a case, the credit to your M&T Bank account would have to be reversed. The armuity payment would still be due and payable to you under your annuity contract, but you would have to obtain it directly from the insurance company, not from M&T Bank. NO Sf'ECIAL NOTICE OF ACH CREDIT OR DEBIT We will not send you any special notice of receipt of an ACH entry fur credit or debil: to your deposit account. For example, if you have authorized direct deposit of your paycheck to your M&T Bank Checking account, the credits will appear on your statement but we will not send you a special confirmation upon receipt of the ACH credit for your account. RIGHT TO RECREDIT FOR UNAUTHORIZED ACH DEBIT ENTRY An una'Jthorized debit entry may occur if a party whom you have never authorized to originate debits to your account misuses your bank and account numbers, obtained from your lost or stolen checkbook or via telephone fraud or other fraud. You are urged to keep your account number confidential. An unauthorized ACH debit entry can also occur by mistake, if the originator was authorized by you but starts the debits befure your authorization takes effect, or if the originator fuils to terminate the debits when the agreed sum is paid in filll, or otherwise according to your written notice of revocation. If you find in reviewing your statement that an unauthorized ACH debit entry has been made against your account, you have the ri~t to prom~t recredit of the unauthorized amount to your account. To obtam the recredit you must: I. Notily us and provide us with a written affidavit in the ACH form avail- able at your branch, within IS days after the date we send or deliver your statement on which the unauthorized entry appears (or, where applicable, within such other period of time wruch may be prescribed by the Electronic Fund Transfer Act and Regulation E of the Federal Reserve Board issued pursuant thereto in connection with unauthorized electronic fund l:tansfers made from your account); and 2. Provide us with all the information we request in order to process the recreclit. RIGHT TO RECREDIT FOR IMPROPER DEBIT ENTRIES An improper ACH debit entry refers to (a) an electronic represented check entry debited to your account that was originated by or on behalf of a payee of a check drawn on your account to collect the amount of the check after it has been returned unpaid fur insufficient or uncollected funds in eases where (i) ~e payee of tne check to which the electronic represented check entry relates did not provide you with a notice, in advance of the payee's receipt of such check, infoffiling you that, if the check is returned for insufficient or uncolle~ funds, it may be collected electronically, (ii) the check to which the e1ectrolU~ repre- sented check entry relates is ineligible for electronic representment usmg the ACH systtm because it does not satisJy all of the eligibility requU:ements pre- scribed by the ACH Rules, (ill) all signatures on the check to which the elec- tronic repr,:scnted check entry relates are not authentic or authorized, (iv) the check to which the electronic represented check entry relates has been altered, (v) the amount of the electronic represented check entry was not a~tely obtained from the check to which it relates, or (vi) both the e1ectroruc repre- sented check entry and the check to which it relates have been presented fur payment, (b) an accounts receivable debit entry to your account (i.e., a transac- 33 ;-~ tion involving a meek written on your account that is sent by you through the United States mail or delivered by you to a drop box to a merchant, vendor or other payee, who, pursuant to prior notice provided to you, uses the cheek as a source document to capture infurmation contained on the cheek fur the pur- pose of converting it to an electronic debit entry to your account in accordance with the terms of the meek) in cases where (i) the originator of the debit entry did not provide you with notice, in advance of receiving your cheek, informing you that the receipt of your check by the originator will authorize an ACH debit entry to your account in accordance with the terms of the cheek, (ii) the cheek used as the source document was improper (i.e., it was not eligible for use as a source document under the ACH Rules), (iii) both the accounts receivable debit entry and the meek to whim it relates (i.e., the meek used as a source document) have been presented for payment, or (iv) the amount of the accounts receivable debit entry was not accurately obtained from the meek to which it relates (i.e., the check used as a source document), and (c) a point-of purchase debit entry to your account (i.e., a transaction involving an in-person purchase of goods or services by you in whim the merchant or other vendor, based on your written authorization, obtains from you at the point of purchase a check which the merchant or other vendor uses as a source document OJ col- lect your routing number, account number and meek serial number to generate an ACH debit entry to your account and which is then voided by the merchant or other vendor and returned to you) in cases where (i) the debit entry for whim you are seeking recredit was not authorized by you, (ii) the check used as the source document was improper (i.e., it was not eligible for use as a source document under the ACH Rules), or (iii) both the point-of-purchase debit entry and the meek to whim it relates (i.e., the check used as a source docu- ment) have been presented for payment. A meek to whim an electronic represented meek entry relates is ineligible fur electronic representment through the ACH system ifit (i) is not an "item" with- in the meaning of the 1990 Official Text of Revised Article 4 of the Unifurm Commercial Code, (ii) is not a negotiable demand draft drawn on or payable through a financial institution that is a Participating Depository Financial Institution as defined in the ACH Rules (i.e., generally, a financial institution that is authorized to participate in the ACH network), other than a Federal ReseNe Bank or Federal Home Loan Bank, (iii) is in an amount of $2,500 or more, (iv) does not include on its fuce that the meck was returned due to "Not Sufficient Funds," "NSF," "Uncollected Funds" or comparable language, (v) is dated more than 180 days from the date on whim the related electronic represented meek entry was transmitted to us, (vi) is drawn on a non-consumer account, or (vii) has been previously presented to us fur payment (A) more than twice in paper furm, if the entry is an initial electronic represented cheek entry, or (B) more than once in paper form and more than once as an electronic represented meek entry, if the entry is a reinitiated electronic represented check entry. Payment instruments that are ineligible for use as a source document for accounts receivable debit entries and point-of-purchase debit entries include (i) mecks drawn on corporate or business accounts, (ii) third-party checks, (iii) credit card cheeks, (iv) obligations of a financial institution (such as travel- er's cheeks, cashier's meeks, official cheeks and money orders, among other things), (v) checks drawn on the Treasury of the United States, a Federal Reserve Bank or a Federal Home Loan Bank, (vi) checks drawn on a state or local government, and (vii) cheeks payable in a medium other than United States currency. For point-of-purchase debit entries, a previously voided check that has been used as a source document for such a transaction may not be used again fur another sum transaction. If you find in reviewing your statement that an improper ACH debit entry has been made against your account, you have the right to prompt recredit of the amount of the improper debit to your account. To obtain the reeredit you must: 1. NotiJy us and provide us with a written affidavit in the ACH form avail- able at your branch, within 15 days after the date we send or deliver your statement on which the improper ACH debit entry appears; and 34 ... \ 2. Provide us with such information we request in order to process the recredit. RIGHT'ro RECREDIT IN THE CASE OF A STOP PAYMENT OF A C'iECK TO WHICH AN ELECTRONIC REPRESENTED CHECK ENTRY RELATES In accordance with ACH Rules, if we debit your account fur an ACH debit entry to pay a check drawn on y.our ac~ount that is electronically represented for payment after its return for illsuffiac:nt or uncollected funds, and, at the time we receive the entry, we are ill recelpt from you of an order to stop ~y- ment on the meck to which the entry relates that has been recorded agamst your account and has not ceased ~o be effective, you have. the right to 'prompt recredit of the amount of the debit to your account, prOVided you notiJy us of the stop payment order within 15 days from the date we send or deliver your statemenl: on whim the ACH debit entry appears. RIGHT 1ro RECREDIT IN THE CASE OF A STOP PAYMENT OF A CtlECK USED AS A SOURCE DOCUMENT TO WHICH AN AC<<:OUNTS RECEIVABLE DEBIT ENTRY RELATES In accord ance with ACH Rules, if we debit your account to p~y an accounts receivable debit entry that was originated using a check wntten on your account ~s a source document, and, at the time we receive the entry, we are in receipt from you of an order to stop payment on such check ~at has been recorded against your account and has not ceased to be. effecove, you have the right to prompt recredit of the amount of the ~e~lt to your account, provided you notiJy us of the stop payment ord~r Wlthin 15 days frot;n the date we ~;end or deliver your statement on which the accounts receivable debit enol' appears. STOPPING PAYMENT OF AN ACH DEBIT ENTRY You or anyone else authorized to sign a cheek or withdrawal slip written on your account can order us not to pay a future ACH ~ebit entry scheduled fur debit against your M&T Bank account, even though It may have been autho- rized by someone else. However, we will not have to follow the order unless: 1. The order includes: a. The exact account number of your account; b. The exact routing and transit number of the bank to which the entry is to be sent; c. The exact account number of the bank account to be credited with th,~ entry; and d. The exact date when the entry is scheduled to be made. 2. a. If the order relates to an ACH debit to your account that is attribut- able to (i) an electronic represented check entry.' (ii) an ~ccou~ts re,:eivable debit entry, (iii) a point-of-purchase debit entry, (IV) a Sill- gk-entry WEB entry (i.e., a one-time. tr~sfer of. funds from y?~ account initiated pursnant to an authonzaoon obtamed by the ongt- nator of the entry via the Internet from you or someone else autho- rized to sign a cheek on or withdraw funds from your account), o.r (,:) a TEL entry (i.e., a one-time transfer of funds from your ac~o~t wo- ate d pursuant to an oral authorization obtained by the ongmator of th,: entry over the telephone from you or someone else authorized to sign a check on or withdr~w fund~ from your account), we have received the order at sum orne and ill such maruler as to affurd us a reasonable opportunity to act upon the order prior to our acting on the debit entry. b. If the order relates to an ACH debit to your account that is not attrib- 35 ""'Olt en"":';""Y,. <II} -ccolirIt. reCei\< bl -~'<: reeeh/ed th -}', a Sl11g/e-e/JQy % _ Ie "-,bi, "':"'<1"", P'"""" '" ' _ " k.s, 3 /W, .. 0"" .Gl.,..", 'i:" '" """" " ''';Z' "'d, ~ ""'On .. ~ "'~ ]f "" On!,'. , """" 0( ""'" ~ M """ "''''On, ;..' '~"'", ,,", i,,, ~': ~ "'riting, " 0iJ1_ : "',Oy" ~ '" .::."': ,'" - ""Jj. ('" '" ""', """ """",,, ". ~ "'- 6 "'" . '-.. .."", 'On":'f!<, by "kPhn,,) "'ffi"'" _ """"", "" "'j ,"" "" "" """, "'"- '-"""'" 0(""" . "-, "" 0iJ1 "Od '" '" "" be aC<:OUnt "~I"r" 1) OlJ the cOnfirm .: We ha~e J:ecOrded "Ih; to You for YO/Jr ' -""""'" "', ''''""" ." ~"', """ '" 6 """"'", ." -, .. '" "'''iity """~ """'. if ",",,,,, "''"' be "~'i:"'" ..., _, 0(:; -0" "" _;" t""< YO" . -, ""'" u" ,;; .. '" · -""" .;:" - "''''' be do"" ~ ' -if , "" .... " ;, """"'" "" ~ '" be ~: 1;; .. '" """'" i, .;:"... "'" """"'" "" "'" if"" .""'" """ "<oc"" ;", '"""", 0iJ1 ,.., <ff~ """ YOn '" "''''''' cl 0iJ1 _ '" be d1i ,'" '" ' yo", %... " '"~ "'. "'" 6 '" be if""", :: -0"" _ ,J" . ""'" '" ~ . ''''' cl". w, 0iJ1 yo", '-, "'" if ~ '" Poy '" .CI1 <kb;, >i "" ...."", On 1. ]f t/, "'" b,,,, '" ~I!ow t/, , - "'" '" p,y "" "'Oy '"th"""'if ' ' '''''''''"'''' "'", , """"""'" "",,-. , _ by _ ._, th , ' .. '" '" 0,' _". '" ~", "'" ' "~ """ "'" '" ..,,-..""', "'Oy 'W7,::'''''''' debit ~,;; ':';:_, ~:.f~ ~bi, '" """ """ """'"' .:'1;, "'. T'EL "'"' '" .;:;:~ deb;, "" ""'Y, '" '''''''''' - '" ""'"'" -'" '''-''''"'''' ':1::' """'- .2 lfth OUr actil)g OlJ th e oPPoItl.znity to ...."e <ll}d in . , """""" , "'" Po- "'.""" th ._, " . "" 'tI,,,, '" .. "',,", _. , "", "Jat IS attrib b ~, orcier /JOt , Cd ""'. '" .. · '" '" , '" p,y '" .Gl if . deb;, "'''> "Y' '" -. "".'Oy """" .... '" '* ,'bi, '" yo", at least 3 ,:;.~.ab.llJgfe-entJy tvE'B ~.ble debit enh-,. a pcr:olJIe repreSe/Jt. h 'UU 'l11kin.. d eQ,,'y Or a TEL ".Y, Ol11t-Of;p/Jrr-L '" ." "'" · "'" Pri", '" th "'Oy '" h _ W, 0iJ1 ""_"", '" ' ""'""", ""'"' '" """"'" " '" gOod "it/, ,,,, """'" "'_, Y "', "'0; "'if ""'" 1. Not '" .." "'" """.Ot b exeCllte <II} A. ee/J properly ord y Cl{ debit CntJy . 2, To "''''.'' "" .:;: "'" '0 Poy; "'" .""'" yo", "'".,,, "'" '" .,,, nOt to Pay has be debJt entJy again W, "",. be . '" """"" """"'" "Y~" """",, Ji;, wI,; h 1 ~iF",.". , "'_ . Jl Void PaYin to eXercise ordin been proh",r.fyg <ll}y A.CJ{ debit em . alJ' care to: .2 r- ordered n t lJ' ag<linSt " . Polio. d, 0 '" Poy; '" " ""' "''''''' th "'Oy""": Ptnp" """'dl,.,~ 0( " "" b,,, We WiUh t YOUr accolirIt. <llJy Order QOt to a '" ~"", ~ . p Y", .CI1 <kb;, 1. We aCt in . 'dinary care iF. .2 We gOod. f<lith; <llJd . have a J:easO/Jable C<II}celJatiOn. of 011 SYStem fOr cOm/)) . . '" -, <be. if", 0("", typ, '0 ~ ""'" 0( " """" 0(",<,.. Gl de", "'''> "'" . "'" """""'.... .... . ,,~ 2"'- "'" '. , -biy '"""" ,,;:~ ~ likely 117I471.411' """" ~. In. the 1l1a' . APflLJES tr. '10f/ty of Case ..r "'" "'"' tk""" , ."'" """," . .Clf. .(1{ Po '_,."", "- "~"""""'. ~ """ ~ "'biq, ;:"'. '" -oJ by :t"'i" <be """""'. Wi1l \, _ '" "'. I by "" .CI1lQ,j """"'" . """kiJ if "" 0( <be "'. _ by ","" %t, """ ;', "'" "''' .... ,,:;, , !:r ~ ~ '" """" ~, '" "'" lQ,k, , ...."'" 0iJ1 b" ""''''''''.", . construed in a~Cor. - ~t"""""; , ~- 4", 36 . \ ... \ ,~...- ...",..,.~<- ." 'J"~- ''f''~~,-"....... .-'i !1 M&fBank c'2003 ,\ 1.1 11 II t.ldli I"ers ;md Traders Trust Company Member FDIC SR-501 (6103) i , I IN THE COURT OF COMMON PL,EAS OF CUMBERLAND COUNTY, PENNSYL VANIA CHUN T. CHEN, Plaintiff Docket No. 04-6097 v. M&T BANK, Defendant CERTIFICATE OF SERVICE I, Mark D. Bradshaw, Esquire, hereby certify that I caused a true and correct copy ofthe foregoing Answer with New Matter and Counterclaim to he served upon the following person, by depositing the same in the United States Mail, postage pre-paid, addressed as follows: Chun Tao Chen 1127 Cocklin Street Mechanicsburg, P A 17055-3959 ~~ Mark D. Bradshaw Date: December ?t 2004 12/21104/SLl 499950v 1/99999.9999 (") c: ;::JlII' -...".... ~~v r,', , V<' - ~C..; ~f~ :::'3 -:;. '" = = ..l:"" o rr, (J ", CD o TI -l :r.:." m-.- r- -om :nO 0.1 ::;J~ <=> ::rj 7(') ;~5rf1 ~=A '1< :D o-C:: -,., -,. -- N w -.J IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLV ANlA CHUN T CHEN, PLANTIFF Vo . 6 ~ - /; () q 7 v. M&TBANK DEENDANT NOTICE TO PLEAD TO: M&T BANK You are thereby warned being sued, and I have provided a written response to the enclosed New Matter. Please to be advised that you are therefore providing me for a defendant date, if not, the judgment will provide one for you. Date December 28, 2004 '7T CHEN / ----~ ~ ( // /""' (/' IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYL VAN!..: CHON T CHEN, PLANTIFF 0'/- rJO .~{)9 7 v. M&TBANK DEFENDANT PLANTIFF'S ANSWER WITH NEW MATTER FROl\1[ THE DEFENDANT 25. Denied. The Plaintiff cannot remember the exact date on the check and was charged with trespassing from M&T Bank property. Therefore the plaintiff cannot recognized the check's date. 26. Denied. The Plaintiffwas told that the check is cleared with further a due, it passed beyond the point, Expedited Funds Availability Act. 27. Denied. The averment of paragraph 26 constitute legal1conclusion requiring no responsive pleading. 28. Denied. The averment of paragraph 27 constitute legall;x>nclusion requiring no responsive pleading. The contract ended when it expired, nevertheless M&T Bank had never told the plaintiff that the contract had ended. 29. Denied. The averment of paragraph 28 constitute legall:~onclusion requiring no responsive pleading. The plaintiffhad the contract with Daull1hin all in the beginning. 30. Denied. The issue is restated over and over concerning with the bank misstatement on its behalf to see if the check is cleared. 31. Denied. The defendant is accusing the Plaintiff with an involvement with illegal activity without a further a due evidence to a criminal charge. 32. Denied. The defendant should be questioned the third l>arty about the scam instead of concerned with the check. 33. Denied. Since M&T bank took the check, M&T is part of the transaction. Thus, three parties involvement should be resulting the issue of distributing the check system. 34. If the Plaintiffis notified by the bank, it is obvious that the bank should audit the check with more careful manner. The Defendant is stating the fact against themselves. 35. Denied. The facts were not established or questions in :fact whether if the check is the averment of paragraph 29 constitute legal conclusions requiring no responsive pleading. 36. Admit. 37. Denied. 38. Denied. The plaintiff only request for reimburse the barlIe. the amount of the loan for the reason if the plaintiff loses lawsuit, no interest rates woulld have incurred. Thus no extra cost should be added. 39. Denied. 40. Denied. WHEREFORR plainti1f, Chun T Chen respectfuDy requests judgment in favor and against defendant, with costs and lawsuit filing cost, as all provided by law. Respectfully submitted, CJym ~ Ch__ ( UL (C0 VERFICATION I, Chun T Chen, verify that the attached Answer witJl1 defendant's complaints is based upon the facts of which I have personal knowledge or information furnished to me by counsel; that the language of the document is my own words; I understand that the statements herein are made subject to the penalties of 18 Pa CSA section 4904 relating to ~(; unworn falsification to authorities. ( ( l//t ,- Chun T Chen Date: December 28, 2004 '>- co ~ cr- -<( ;-- ':J WJ~~ o~ o~ :Ie f..) ~ ri: '.-' CI:;;( , :~) :::i fI :? ~_.. :~~ 0 C1'\ ao: N WC- <-> dl:D dlU ~ l.J..fE 0 tne.\... ~ ...::r :;::) u_ C=> 0 c:::::l (.) C"o.l IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, ?ENNSYL V ANIA CHUN T CHEN, PLANTIFF \)0 LICi& 'I \02>, D'-1 ~ ("bt:t-::r v. M&TBANK DEENDANT NOTICE TO PLEAD TO: M&T BANK You are thereby warned being sued, and I have provided a written response with the enclosed New Matter. Please to be advised that you are therefore providing me for a defendant date; if not, the judge will provide one for you. Date December 28, 2004 CVCHEN - / . TLA- ~'b w<' \ IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYL V ANL- CHUN T CHEN, PLANTIFF v. M&TBANK DEFENDANT PLANTIFF'S ANSWER WITH NEW MATTER FROM: THE DEFENDANT 25. Denied. The Plaintiff cannot remember the exact date 011 the check and was charged with trespassing from M&T Bank property due to the circumstances of questioning Mr. Bears with the check. The Planiff was unable to gather any supporting evidence with the check. Therefore the plaintiff cannot recognized the check's date. 26. Denied. The Plaintiff was told that the check is cleared liS it is passed beyond Expedited Funds Availability Act. 27. Denied. The averment of paragraph 26 constitute legal c:onclusion requiring no responsive pleading. 28. Denied. The averment of paragraph 27 constitute legal (:oncIusion requiring no responsive pleading. The contract ended when it expired; nevertheless M&T Bank had never informed the contract had ended to the PlantifI 29. Denied. The averment of paragraph 28 constitute legal conclusion requiring no responsive pleading. The plaintiffhad the contract with Dauphin Bank in the beginning. With the check was defined cleared passing beyond the limit of Expedited Funds Availability Act, there was no collection or any amounts should be owed to the Bank. 30. Denied. The issue is restated over and over concerning with the bank misstatement on its behalf It is bank responsibility to verifY if the check is cleared. 31. Denied. The defendant is accusing the Plaintiff with an involvement with illegal activity without sufficient evidence for a criminal charge. 32. Denied. The defendant should be questioned the third party about the scam instead of questioning the plaintiff about the check. 33. Denied. Since M&T bank took the check, M&T is part of the transaction. Thus, there are three parties involvement, Pla.ntifl: Defendant, and transaction occurred between the Plantiff and unknown party. 34. If the Plaintiff is notified by the bank, it is obvious that the bank should audit the check with more careful manner. The Defendant is stating tbe fact against themselves, 35. Denied. The facts were not established. The Plantiffis maJcing complaint to distribute whether if the Plantiff should pay for the amounts looney demanded by the bank or the Planiff should be rewarded for the damages done by the Bank. 36. Admit. 37. Denied. 38. Denied. The plaintiff only request for reimburse the bank the amount of the loan for the reason if the plaintiff loses lawsuit, no interest rates would have incurred. Thus no extra cost should be added. 39. Denied. 40. Denied. WHEREFORE, plaintiff, Chun T Chen respectfully requests judgment in favor and against defendant, with costs and lawsuit filing cost, all as provided by law. Respectfully submitted, Chun T Chen __ r LA / LA- VERFICATION I, Chun T Chen, verify that the attached Answer witb defendant's complaints is based upon the facts of which I have personal knowledge or information furnished to me by counsel; that the language of the document is my own words; I understand that the statements herein are made subject to the penalties of 18 Pa CSA section 4904 relating to unworn falsification to authorities. ?- TC Chun T Chen Date: December 28, 2004 o ~~ .r:- o ,......, = C':> c.n C- :::~ ~ ~ ~ ni:rJ r- -0 fn -QCJ 0' -./ (") f3~i ;~! "..1 "-< , 01 ~, ->0. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CHUN T. CHEN, Plaintiff Docket No. 04-6097 v. M&T BANK, Defendant PETITION FOR APPOINTMENT OF ARBITRATORS TO THE HONORABLE, THE JUDGES OF SAID COURT: I, Mark D. Bradshaw, Esq., counsel for the defendant in the above action respectfully represent that: 1. The above-captioned action is at issue. 2. The claim of the plaintiff in the action is $4,140.55. The counterclaim of the defendant in the action is $4,172.55. The foHowing attorneys are interested in the case as counselor are otherwise disqualified to sit as arbitrators: none of which Defendant is aware. WHEREFORE, your petitioner prays your Honorable Court to appoint three (3) arbitrators to whom the case shaH be submitted. Date: January 7, 2005 STEVENS & LEE ~~0A, Mark D. Bradshaw, Esquire Attorney 1.0.61975 4750 Lind1e Road P.O. Box 11670 Harrisburg, PA 17108 (717)561-5258 0] /Q7105/SL t S05190v I 166255.049 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYL VANIA CHUNT. CHEN, Plaintiff Docket No. 04-6097 v. M&T BANK, Defendant CERTIFICATE OF SERVICE I, Mark D. Bradshaw, Esquire, hereby certify that I caused a true and correct copy of the foregoing Petition to be served upon the following person, by depositing the same in the United States Mail, postage pre-paid, addressed as follows: Chun Tao Chen 1127 Cocklin Street M~"'"i"b"",. PA 17055.3959 ~~~ Mark D. Bradshaw Date: January 7, 2005 0] I07i05/SL] s05190v 1/66255 .049 ~ ~ ........ f._"I C) ~ It) c'.:;) C:.:, -n ,,-,, \). ~- :;:~'~ --- () ~...-" V) .,... 1; - -tJ r-...) V, ...c r ..c:. - -- ..() ::-? - E- " ~-'- ;;::- ~ '. - IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CHUN T. CHEN, Plaintiff Docket No. 04-6097 v. M&T BANK, Defendant PETITION FOR APPOINTMENT OF ARBITRATORS TO THE HONORABLE, THE JUDGES OF SAID COURT: I, Mark D. Bradshaw, Esq., counsel for the defendant in the above action respectfully represent that: 1. The above-captioned action is at issue. 2. The claim of the plaintiff in the action is $4,140.55. The counterclaim of the defendant in the action is $4,172.55. The following attorneys are interested in the case as counselor are otherwise disqualified to sit as arbitrators: none of which Defendant is aware. WHEREFORE, your petitioner prays your Honorable Court to appoint three (3) arbitrators to whom the case shall be submitted. Date: January 7,2005 STEVENS & LEE -~~\, Mark D. Bradshaw, Esquire Attorney LD. 61975 4750 Lindle Road P.O. Box 11670 Harrisburg, PA 17108 (717)561-5258 01/07/05/SLl 505190v\l66255.049 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CHUNT. CHEN, Plaintiff Docket No. 04-6097 v. M&T BANK, Defendant CERTIFICATE OF SERVICE I, Mark D. Bradshaw, Esquire, hereby certify that I caused a true and correct copy ofthe foregoing Petition to be served upon the following person, by depositing the same in the United States Mail, postage pre-paid, addressed as follows: Chun Tao Chen 1127 Cocklin Street Mttru",j"b"", PA 17055'3959~~ Mark D. Bradshaw Date: January 7, 2005 Ol!07/05/SLI505190vl/66255.049 ~~ II) --- - ~ V, ...0 .J:. ...() - -bel. -- II( IV- o -J r ~ J- <-" ~:% d' <-- ~-# ~ .- t'" o ..n -' '"1:--1"". \-np :~~?, ,.,-1'\ ,'~' ~,.;- :;:;..( ) _::.~ f"\ :~~\ ~.. ':-;':} .4 -n ..' _i'''' t:? .- .;;:- ~ IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CHUN T. CHEN, Plaintiff Docket No. 04-6097 v. M&T BANK, Defendant ORDER _ /J /1) L AND NOW, Januaryd!2-, 2005, in consideration of the foregoing petition, . . xi I /JJ~/~ '_ / . sq., :4O/A'l/~7'?k~q.,and ~ ,Esq., are appointed arbitrators in the above-captioned action as prayed for. By the Court, PJ. 0l/07/05/SLI 505190v1/66255.049 " " }\U";'. 22:t: t."ld O~ V\li''''' rn['\"? ~ I,'~ :'ULj.(, "l"1I L;..... :',):,~j~:lJ 3H1 :ICJ ..C\:f\!:J CHUN T. CHEN : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA V. : CIVIL ACTION - LAW : NO. 04-6097 CIVIL TERM M&T BANK IN RE: ARBITRATION PANEL ORDER OF COURT AND NOW, April 26, 2005, the appointment of Christopher J. Keller, Esquire, as arbitrator in the above matter is vacated, and Anthony Lucido, Esquire, is appointed in his stead. By the Court, GeO,Wl P.J. Bradley Griffie, Esquire Chairman of the Arbitration Panel 200 North Hanover Street Carlisle, PA 17013 A.' 4.)' OJ 4f<f />n,.~A /) r" Court Administrator VIN\i/\lA:JNj{jd \."I'''r.~ "- r', "-'.'-"1~:) J :1'11: I' ,I', ;.._._.'-.'L.'.;' _ , !'..' ',. " ~:" " J OS : III~V 92 ~dV SOOZ Ai::NIONOi-llOdd 3Hl .:lO 38i~30-0:nI:l V. : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION - LAW CHUN 1. CHEN : NO. 04-6097 CIVIL TERM M&T BANK ~N RE: ARBITRATION PANEL ORDER OF COURT AND NOW, May 6, 2005, the appointment of Anthony Lucido, Esquire, as arbitrator in the above matter is vacated, and Jennifer B. Hipp, Esquire, is appointed in his stead. By the Court, P.J. vrBradley Griffie, Esquire Chairman of the Arbitration Panel 200 North Hanover Street Carlisle, PA 17013 ) ~nnifer B. Hipp, Esquire 1 West Main Street Shiremanstown, PA 17011-6327 o frO 9 -{J5 Court Administrator .' .~ l Z 11 :j 'u ,','" r< ::;- :) cnWl ..IL.-IU~ Lhut' T. Ch~" (f).r T ~M k.. RECEIVED AUG 22 ZOOS!", In The Court of Common Pleas of Cumberland Plaintiff County, Pennsylvania No. (/ 'I - ro 0 9 7 Defendant Civil Action - Law. Oath We do solemnly swear (or affirm) that we will support, obey and defend the Constitution of the United States and the Constitution oftms Commonwealth and that we will discharge the duties of our office with fidelity. . ,.,._of(~':1 L. G,", fA c Name (Chainnan) b,',H\( d-ASSbcr.,cks Law F:irm ;;)00 Nor1L HIM.CN4" St Address ('~,.lls k , City, ' fA 170 /1 Zip ~ \4-'''f? Sign e h- u;r~..~v-v /Signature ~-<;" c:,,-.... '^ ::::r. .\-la..rnv,a. '" Name je I-\V\i~..f"" \3. l.t~ Name ~~ j"'V 1; I+:j'? Law Firm ~........~.. ~l\.'" Law Finn I ~ . W\C\ ',\^. S{.Hc{ Address I -::t'n\: ,,\p r<r-10 Address ~i('tt"t\\I."'~ ?I't \-;'01\ City, Zip Cc...\; ~\~ City, ~ Zip 170,-:5 Award We, the undersigned arbitrators, having been duly appDinted and sworn (or affirmed), make the following award: (Note: If damages for delay are awarded, they shall be separately stated.) 0" tl.~ h..;,,+if-r~ (OiY'flc.i,...-t rJc--h"d 1" ~""r: O...~^...(n~T- D^ J)~~~<\.-t"" (1"u^~rd",,,", I..-e ~--d iA ~~or of' Oe...~o." I ." f1...~ c......6cJ"-T tf j '-1, / 7 do . S.5. (D<;:.ff. -f:r....J.<!.. ~n.; r1 \'1 PI...;,... ''i. ~ Date of Hearing: f?11 ~ ()) DateofAward:~ . Arbitrator, dissents. (Insert nanle if applicable.) (Chainnan) Notice of Entry of Award Now, the I r day of ~ . >.. ,2Cln<" , at /0 : 1<> , A.M., the above award was entered upon the do'cket and notice the of given by mail to the parties Dr their attorneys. Arbitrators' compensation to be paid upon appeal: $ ~<fo.OI> By: rothonotary Deputy v () ~ ~ @' ~ ".. =rl f0 rnf2 -01"1'1 ex> ;~~}:, ~~l~~ J'?" ,_).-T. ;1i.: ,~_....O _ [5.-11 o ::.:~ _ ib c:> ::< G 1 ~~>\' . . ~ f' "1- ~ "- ~ p v "- )'s t 3