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Home My WebLink About06-6279COMMERCE BANK/HARRISBURG, COURT OF COMMON PLEAS OF N.A., CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff NO. VS. : JURY TRIAL DEMANDED BARRETT COMPANY, INC., Defendant NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff(s). You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. LAWYER REFERRAL SERVICE Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 COMMERCE BANK/HARRISBURG, COURT OF COMMON PLEAS OF N.A., CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff NO. VS. JURY TRIAL DEMANDED BARRETT COMPANY, INC., Defendant NOTICIA LE HAN DEMANDADO A USTED EN LA CORTE. Si usted quiere defenderse de estas demandas expuestas en las paginas siguientes, usted tiene viente (20) dias de plazo al partir de la fecha de la demanda y la notificacion. Usted debe presentar una apariencia escrita o en persona o por abogado y archivar en la corte en forma escrita sus defensas o sus objeciones a las demandas en contra de su persona. Sea avisado que si usted no se defiende, la corte tomara medidas y puede entrar una orden contra usted sin previo aviso o notificacion y por cualquier queja o alivio que es pedido en la peticion de demanda. Usted puede perder dinero o sus propiedades o otros derechos importantes para usted. LLEVE ESTA DEMANDA A UN ABODAGO IMMEDIATAMENTE. SI NO TIENE ABOGADO O SI NO TIENE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA O LLAME POR TELEFONO A LA OFICINA CUYA DIRECCION SE ENCUENTRA ESCRITA ABAJO PARA AVERIGUAR DONDE SE PUEDE CONSEGUIR ASISTENCIA LEGAL. LAWYER REFERRAL SERVICE Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 457255v1 l 1 COMMERCE BANK/HARRISBURG, N.A., Plaintiff VS, BARRETT COMPANY, INC., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. JURY TRIAL DEMANDED COMPLAINT AND NOW, comes Commerce Bank/Harrisburg, N.A. ("Commerce") by and through its attorneys, Mette, Evans & Woodside, and hereby files the following Complaint against Barrett Company, Inc. ("Barrett"), in support of which it avers as follows: 1. Commerce is a commercial bank with offices at 3801 Paxton Street, Harrisburg, Pennsylvania 17111. 2. Defendant Barrett is a Pennsylvania business corporation duly formed under the laws of the Commonwealth of Pennsylvania with offices located at 1525 Cedar Cliff Drive, Camp Hill, Pennsylvania 17011. 3. Barrett maintains a checking account, deposit account number 513209643 ("Account") at Commerce. 4. The Account was opened on April 12, 2001, in accordance with the Deposit Agreement which is attached hereto and incorporated herein by reference as Exhibit "A." 5. The history of the Account shows a pattern of large deposits made to the Account followed by withdrawals from the Account via written checks, electronic/online debits, and partial transfers of the account balance into various other accounts. 6. The history of the Account also shows that the withdrawals from the Account combined with the transfers to various accounts continuously caused overdrafts on the Account. 4 The Account shows hundreds of dollars worth of returned check fees and related transaction fees as a result. 7. Prior to 2005, the overdrafts and fees incurred by Barrett were covered by subsequent deposits to the Account. In or about September, 2005, the Account again became negative due to written check withdrawals, electronic/online debits and transfers as described in Paragraph 5 herein. 8. On or about September 17, 2005, the account balance became negative in the amount of $13,122.82. 9. Since September, 2005, Defendant has failed to deposit in the Account any sums to cover the negative balance. 10. Pursuant to the Deposit Agreement, Barrett is responsible to reimburse Commerce for the negative account balance that currently exists on the Account in the amount of $13,122.82 as well as any applicable transaction fees. 11. Commerce has made demand upon Barrett for repayment of the amount owed to Commerce. 12. Despite Commerce's continued demands on Barrett to repay the balance owed, Barrett has refused and continues to refuse to make payment to Commerce. 13. To date, Barrett still owes Commerce the amount of $13,122.82 together with any applicable transaction fees and interest at the legal rate. COUNTI BREACH OF CONTRACT 14. The averments contained in paragraphs 1 through 13 are incorporated by reference. 2 15. Pursuant to the Deposit Agreement between the parties, Barrett is obligated to repay to Commerce the amount of $13,122.82 as Commerce made paid these funds from Barrett's Account pursuant to the Deposit Agreement for the benefit of Barrett. 16. To date, no repayment has been received by Commerce. 17. The current balance owed to Commerce by Barrett is $13,122.82 together with any applicable transaction fees and interest at the legal rate. 18. Barrett has breached its contract with Commerce. 19. Barrett is liable to Commerce for $13,122.82 together with any applicable transaction fees and interest at the legal rate. 20. All conditions precedent have been met. WHEREFORE, on the basis of the foregoing allegations, Commerce hereby demands judgment in favor of Commerce and against Barrett in the amount of $13,122.82, plus prejudgment interest accruing at the legal rate per day from September 17, 2005, plus post judgment interest accruing at the legal rate from the date of the judgment until such time as payment is made in full, together with the costs of this action and the attorneys' fees incurred by Commerce. COUNT II (ALTERNATIVE COUNT TO COUNT I) UNJUST ENRICHMENT 21. The averments contained in paragraphs 1 through 20 are incorporated by reference. 22. Commerce has conferred a benefit upon Barrett in the amount of $13,122.82, said amount representing the funds paid from Barrett's Account at the direction of Barrett that have not been repaid to Commerce. 23. Defendant received and retained this benefit. 24. Defendant Barrett has not returned these monies despite its obligation to do so pursuant to the Agreement. 25. It is inequitable for Defendant Barrett to retain these monies. WHEREFORE, on the basis of the foregoing allegations, Commerce hereby demands judgment in favor of Commerce and against Barrett in the amount of $13,122.82, plus prejudgment interest accruing at the legal rate per day from September 17, 2005, plus post judgment interest accruing at the legal rate from the date of the judgment until such time as payment is made in full, together with the costs of this action and the attorneys' fees incurred by Commerce. Respectfully submitted, METTE, EVANS & WOODSIDE By: Attorneys for Plaintiff Date: October, 2006 457255v1 4 3401 North Front Street P.O. Box 5950 Harrisburg, PA 17110-0950 (717)232-5000 - Phone (717)236-1816 - Fax Table of Contents General Rules Governing Deposit Accounts Deposit Rules ............................................................. ...1 Withdrawal Rules ....................................................... ...2 ACH and Wire Transfer ............................................. ...4 Account Statement ................................................... ...5 Miscellaneous Provisions ........................................... ...5 Ownership of Accounts ............................................... ...7 Individual, Joint, Trusts . ........................................... ...7 Uniform Gifts to Minor ............................................... ...9 Agency, Business, and Fiduciary ............................... ...9 Specific Account Provisions ....................................... .10 Checking Accounts ................................................... .10 Savings Accounts ......................................................12 Time Deposits ............................................................15 Deposited Funds Availability ........................................ 17 Substitute Checks and Your Rights ............................ 19 Electronic Funds Transfer Disclosure ........................ 21 Pre-authorized Payments ............................................ 24 Error Resolution .......................................................... 26 ATM Safety Tips .......................................................... 27 Fees and Charges .......................................................... 28 Privacy Notice ................................................................ 29 DEPOSIT ACCOUNT RULES AND REGULATIONS eWMM ,1q Your account is governed by all rules and regulations of applicable federal law and the laws of your state where the laws of the Commonwealth of Pennsylvania are inap- plicable. Reference to "your state" means the state in which the account was opened. In this Deposit account Agreement and Disclosure, each and all of the depositors are referred to as "you" and "your." As used in this Agreement, "Commerce", "Bank", "we", "us" or "our" means Commerce Bank/Harrisburg, N.A. As used in this document, the term "agreement" means this document, the signature card, a rate and fee schedule (the Schedule), Truth in Savings Disclosures, a Funds Availability Policy Disclosure (if applicable) and Privacy Notice. Each of you signing the signature card for a deposit account acknowledges receipt of this Agreement, and agrees to the terms set forth in the Agreement, as amended from time to time. You agree that we may waive, in our sole discretion, any fee, charge, term, or condition set forth in this Agreement at the time the account is opened or subsequent thereto, on a one-time basis or for any period or duration, without changing the terms of the Agreement or your obligation to be bound by the Agreement, and we are not obligated to provide simi- lar waivers in the future or waive our rights to enforce the terms of this Agreement. IDENTIFICATION. Important Information For Opening A New Account. To help the government fight the fund- ing of terrorism and money laundering activities, Federal law required all financial institutions to obtain, verify, and record information that identifies each person who open an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identify- ing documents. DATE ACCOUNT OPENED. If you open an account with us after 6:00 PM on a business day that we are open, we will consider that the transaction was made at the open- ing of the next business day for account opening, effec- tive date and issue date purpose. BUSINESS DAY. Transactions made after 6:00 PM and on Saturdays, Sundays and some legal holidays are consid- ered as part of the next banking day. DEPOSIT RULES. The following apply to deposits made to your account: A receipt may be provided or made available upon request for all deposits to your account. However, the amount on your deposit receipt is based solely on your deposit ticket. Credits for all deposits are subject to final verification. Endorsements. Any item deposited to your account that lacks an endorsement may be, or may be deemed to be, endorsed by the Bank on your behalf. With respect to any such item, the Bank's rights and your liabilities shall be determined as though you actually endorsed and deposited the item. All endorsements must appear on the back of the checks or other item within the first 1-1/2 inches from the left side of the item. While we may accept non-conforming endorsements, you will be responsible for any loss incurred by us due to the delay in processing or returning the item for payment. Final Payment. Without prior notice and at any time, items deposited to your account, including checks, drafts, and automatic clearing house ("ACH") entries, may be charged back against your account, or any other account of yours at the Bank, if for any reason final payment is not received or if the Bank is informed that your deposit is being returned unpaid. We reserve the right to refuse any item for deposit into your account. Direct Deposits. You must notify us at least thirty (30) days prior to the next scheduled direct deposit or preau- thorized transfer if you wish to cancel the direct deposit or transfer service. If any amount deposited must be returned to the government (Social Security payments for example) for any reason, you authorize us to deduct the amount from your account. The Bank will not give you next day notice of receipt of any ACH or wire transfer deposited into your account but will provide such notice to you on your next periodic account statement. You may contact the Bank to confirm the ACH or wire transfer deposit. WITHDRAWAL RULES. The following terms apply to withdrawals from your account. Manner of Withdrawal. Withdrawals or transfers of funds from your account may be done by you by mail, by check, by debit card, by preauthorized transactions (elec- tronic or paper) or through an automatic teller machine (ATM) as permitted by us for the type of account you have opened. We may refuse to accept any check other than standard checks provided by us, or approved by us in advance. You agree to maintain adequate safeguards to ensure the authorized use of the forms and access codes/devices you retain to make withdrawals from your account. Withdrawal Restrictions and Overdrafts. We do not have to allow you to make a withdrawal from your account if you don't have sufficient available funds in the account to cover the full amount of the withdrawal. If there are available funds to cover some, but not all, of the withdrawals or other debits to your account, we may post those withdrawals or other debits for which there are suf- ficient funds in any order we choose at our discretion. If we choose to pay one or more overdrafts, we are not obligated to cover any future overdrafts. A service charge may be assessed on any item that will overdraw the avail- able balance, regardless of whether we pay or dishonor (return) the item. You agree, immediately upon notice from us, to deposit funds sufficient to cover any overdraft plus service charges, if required. We will not be liable for the dishonor of any item when the dishonor occurs because we setoff a debt against your account. We also may refuse to allow a withdrawal if there is a dispute about the account (unless a court has ordered us to allow the withdrawal), the account is garnished or attached, the account has been pledged as collateral for a debt, the availability of the funds cannot be verified, any required documentation has not been presented, or you fail to repay an obligation to us on time. Postdated Items. You agree that when you write a check, you will not date the check in the future. If you do and the check is presented for payment before the date of the check, we may either pay it or return it unpaid. You agree if we pay the check, the check will be posted to your account on the day we pay the check. You further agree that we are not responsible for any loss to you in doing so. Power of Attorney. The person executing a power of attorney will be referred to as the principal and the person acting for the principal as the agent. We may refuse to comply with a power of attorney for reasonable cause, or until we receive an affidavit from the agent stating that the Power of Attorney presented is a true copy and that, to the best of the agent's knowledge, the principal is alive and that the relevant powers of the agent have not been altered or terminated. Signatures. You authorized us to store and use Signature Card information in any reasonable form we deem necessary, including any digitized signature capture process. If you use a facsimile signature or other form of signature, you agree you shall have the sole responsibility for maintaining security of the facsimile signature or device by which it is affixed and you shall bear the entire risk for unauthorized use thereof whether or not you are negligent. Preauthorized drafts. If you voluntarily give information about your account (such as our routing number and your account number) to a parry who is seeking to sell goods or services, and you do not physically deliver a check to the party, any debit to your account initiated by the party to whom you gave this information is deemed authorized by you. Legends. We are not required to honor any restrictive legends on checks unless we have agreed in writing to the restrictions. Examples of legends are "must be pre- sented within 90 days" or "not valid for more than $1,000.00." Stale Checks. We reserve the right to pay or dishonor a check more than six (6) months old without prior notice to you. ACH AND WIRE TRANSFER. This agreement is subject to Article 4A of the Uniform Commercial Code - Funds Transfer as adopted in the state in which you have your account with us. If you originate a fund transfer for which Fedwire is used, an intermediary financial institution or a beneficiary, we and every receiving or beneficiary institu- tion may rely on the identifying number to make payment. We may rely on the number even if it identifies a financial institution, person or account other than the one named. You agree to be bound by the automated clearing house association rules. These rules provide, among other things, that payments made to you, or originated by you, are provisional until final settlement is made through a Federal Reserve Bank or payment is otherwise made as provided in Article 4A-403(a) of the Uniform Commercial Code. If we receive credit to an account you have with us by wire or ACH, we are not required to give you any notice of the payment order or credit. Electronic Check Conversion a/Wa Point-of-purchase (POP) entry. These are one-time electronic debit entries that merchants and service providers originate to con- sumer accounts to facilitate in-store purchases or goods and services. Your check is used as a source of informa- tion for the check number, your account number, and the number that identifies your financial institution. The check itself is not the method of payment. The merchant then voids the check and returns it to the customer. Re-presented check (RCK) entry. These are debit entries used by merchants and their third-party service providers to re-present certain NSF checks. Internet- Initiated Entries (WEB): These are ACH entries by a third party to debit your checking account that you authorized through the internet. The account holder authenticates their identity by entering a PIN code. Telephone- Initiated Entries (TEL): These are ACH entries by a third party to debit your checking account that you authorized via the telephone. Accounts Receivable Entries (ARC): These are con- sumer checks converted to an ACH entry by a lockbox or dropbox operator. The consumer is notified in advance that his/her check will be converted. ACCOUNT STATEMENT You are responsible for promptly examining your statement each statement peri- od and reporting any irregularities to us. The periodic statement will be considered correct for all purposes and we will not be liable for any payment made and charged to your account unless you notify us in writing within cer- tain time limits after the statement and checks are made available to you. We will not be liable for any check that is altered or any signature that is forged unless you notify us within a reasonable period of time, not to exceed Thirty (30) calendar days after the statement and the altered or forged item(s) are made available. Also, we will not be liable for any subsequent items paid, in good faith, containing an unauthorized signature or alteration by the same wrongdoer unless you notify us within Thirty (30) calendar days after the statement and first altered or forged items were made available. If you have requested us to hold your account statements, we have a right to mail your statements if you have not claimed them within Sixty (60) calendar days of issuance. If we truncate your checks, you understand that your original checks will not be returned to you with your statement. You agree that our retention of checks does not alter or waive your responsibility to examine your statements or change the time limits for notifying us of any errors. DORMANT ACCOUNTS AND ESCHEAT LAWS. We will deem your account to be dormant if you do not make any deposits or withdrawals from the account after a certain period of time. A dormant account remains subject to service charges and may be assessed a dormancy fee. Funds in dormant accounts will be escheated to the state of your last known address in which your account is maintained in accordance with applicable law. RIGHT OF SETOFF. Subject to applicable law, we may exercise our right of setoff or security interest against any and all of your Accounts (except IRA, Keogh plan and Trust Accounts) without advance notice, for any liability or debt of any of you whether joint or individual, whether direct or contingent, whether now or hereafter existing, and whether arising from overdrafts, guarantees, loans, attachments, garnishments, levies, attorney's fees or other obligations. If the Account is a joint or multiple- party account, each holder authorizes us to exercise our right to setoff against any and all Accounts of each Account holder. MISCELLANEOUS PROVISIONS. If you or your account become involved in any legal proceedings, your use of the account may be restricted. We shall be entitled to act upon any legal process served upon us which we reason- ably believe to be binding, with no liability to you for doing so. You understand that supervisory personnel may randomly monitor customer service telephone con- versations to ensure that you receive accurate, courteous, and fair treatment. If you ask us to follow instructions that we believe might expose us to any claim, liability, or damages, we may refuse to follow your instructions or may require a bond or other protection, including your agreement to indemnify us. You agree to be liable to us, to the extent permitted by law, for any loss, costs, or expenses that we may incur as a result of any dispute or legal proceeding involving your account. You authorize us to deduct any such loss, cost, or expense from your account without prior notice to you or to bill you sepa- rately. This obligation includes disputes between you and us involving your account and situations where we become involved in disputes between you and an author- ized signer, a joint owner, or third party claiming an inter- est in your account. It also includes situations where any action taken on your account by you, an authorized sign- er, a joint owner, or a third party causes us to seek the advice of an attorney, whether or not we actually become involved in a dispute. Any action by us for reimbursement from you for any costs or expenses may also be made against your estate, heirs and legal representatives, who shall be liable for any claims made against and expenses incurred by us. If a court finds any provision of the Agreement to be invalid or unenforceable, such finding shall not make the rest of the Agreement invalid or unen- forceable. If feasible, any such offending provision shall be deemed to be modified to be within the limits of enforceability or validity; however, if the provision cannot be so modified, it shall be stricken and all other provisions of the Agreement in all other respects shall remain valid and enforceable. Illegal Transactions: VISA Card and/or account may not be used for any illegal activity or transaction. Further, I may not use my VISA/ATM Card or VISA Debit Card to purchase goods or services on the Internet that involve gambling of any sort. Such transactions include, but are not limited to, online gambling transaction, and any bet- ting transaction including the purchase of lottery tickets or casino chips, or off-track betting and wagering. However, in the event that a charge or transaction described in this disclosure is approved and processed, I will still be liable for the charge. Any financial service provided by Commerce may be used for any transaction permitted by law. You agree that illegal use of any financial service will be deemed an action of default and/or breach of contract and such service and/or related services may be terminated at Commerce's discretion. You further agree, should any ille- gal use occur, to waive the right to sue Commerce for such illegal activity or activity indirectly related to it. You also agree to indemnify and hold Commerce harmless from any suits or other legal action or liability, directly or indirectly resulting from such illegal use. Termination of deposit relationship. This agreement between you and the bank, as it relates to deposit accounts offered by the bank, can be terminated by either you or the bank at any time by a notice in writing. Such a termination will not release you from any fees or other obligations incurred before the termination, those you incur in the process of closing out your account, or for your liability on outstanding items. You agree that notice of termination of this agreement by the bank will be reasonable if it is mailed to your statement mailing address at least ten calendar days prior to the date of termination. OWNERSHIPS OF ACCOUNTS: Individual Accounts. An individual account is an account in the name of one depositor only. Only that per- son may write checks against the account or withdraw money, regardless of who actually owns the funds. Multi-Party Accounts. This section pertains to multiple party accounts: A joint account opened in the Commonwealth of Pennsylvania is subject to the provision of the Pennsylvania Multiple Party Deposit account Act referred to in these rules and regulations as the `Act," 20 PA. C.S.A. Section 6301 et seq. (a) Joint Account Ownership. An account with two or more account holders is a joint account. Unless you designate otherwise on the Signature Card, joint account holders will be considered joint tenants with right of survivorship. (1) Joint Tenants with Right of Survivorship. If your account is a joint account with right of survivorship, upon the death of one of the joint account holders, that person's ownership interest in the account will immediately pass to the other joint account holder(s). (2) Joint as Tenants in Common. If your account is a joint account without right of survivorship, upon the death of one of the joint account holders, that person's proportionate ownership interest will pass to the estate of the deceased account holder. Each joint account holder, without the consent of any other account holder, may, and hereby is authorized by every other joint account holder, to make any transaction permitted under the Agreement, including without limita- tion, (1) to withdraw all or any part of the account funds, (2) pledge the account funds as collateral to us for any obligation, whether that of one or more account holders or of a third party, (3) to endorse and deposit checks and other items payable to any joint account holder, (4) to give stop payment orders on any check or item, whether drawn by that account holder or not, and (5) to close the account, with the disbursement of account proceeds as instructed by the joint account holder. Each joint account holder is authorized to act for the other account holder(s) and we may accept orders and instructions regarding the account from any joint account holder. If we believe there to be a dispute between joint account holders or we receive inconsistent instructions from the account holders, we may suspend or close the account, require a court order to act, and/or require that all joint account holders agree in writing to any transaction concerning the account. Your obligations under the Agreement are joint and sever- al. This means that each joint account holder is fully and personally obligated under the terms of the Agreement, including liability for overdrafts and debit balances as set forth above, irrespective of which joint account holders benefited from the withdrawal. If you establish a joint account without the signature of the other joint account holder(s), you agree to hold us harmless for our reliance upon your designation of the other joint account holder(s) listed on our documents. Further, the account is subject to the right to setoff as set forth below. (b) Totten Trust Accounts. A Totten Trust account is an informal trust account, reflected on our records, but without a written trust agreement, where the account is owned by the trustee. The beneficiaries have no right to any funds in the account during the trustee's lifetime. As the owner of the account, the trustee may withdraw money from the account and may, by written direction to us, change the beneficiary under the Agreement. When the trustee dies, the account is owned by the named beneficiary or beneficiaries. If the Totten Trust account is held by more than one trustee, the trustees will be subject to the rules pertaining to joint account ownership as set forth above. If there is no surviving beneficiary upon the death of the last trustee, state law will determine ownership of the funds in the account. (c) P.O.D. account. A Payable on Death (P.O.D.) account is an account payable to the account holder during his or her lifetime. As the owner of the account, you may withdraw money from the account and may, by written direction to us, change the P.O.D. payee(s) under the account. When the account holder dies, the account is owned by the P.O.D. payee(s). If the P.O.D. account is held by more than one person, each account holder will be subject to the rules pertaining to joint account ownership as set forth above. If there is more than one surviving P.O.D. payee, the respective interest of each shall be deemed to be in equal shares, unless otherwise stated in the Financial Institution's deposit account records and as allowed by applicable state law. If there is no surviving P.O.D. payee upon the death of the last owner, state law will determine ownership of the funds in the account. Additional account Types. This section applies to other deposit account types: (a) Formal Trust account. A Formal Trust account is an account held by one or more trustees for the benefit of one to more beneficiaries according to a written trust agreement. Upon request, the trustee(s) will supply to us a copy of any trust agreement covering the account. We act only as custodian of the trust funds and are under no obligation to act as a trustee or to inquire as to the powers or duties of the trustee(s). The trustee(s) and/or any person opening the account, in their individual capacity and jointly and severally, agree to indemnify and hold us harmless from and against any and all loss, costs, damage, liability, or exposure, including reasonable attorney's fees, we may suffer or incur arising out of any action or claim by any beneficiary or other custodian with respect to the authority or actions taken by the custodian in handling or dealing with the account. (b) Uniform Transfer to Minors. If you have established the account as a custodian for a minor beneficiary under your state version of the Uniform Transfers to Minors Act or the Uniform Gifts to Minor Act, your rights and duties are governed by the Act. You will not be allowed to pledge the account as collateral for any loan to you. Deposits in the account will be held by us for the exclusive right and benefit of the minor. The custodian and/or any person opening the account, in their individual capacity, agree to indemnify and hold us harmless from and against any and all loss, costs, damage, liability, or exposure, including reasonable attorney's fees, we may suffer or incur arising out of any action or claim by any beneficiary or other custodian with respect to the authority or actions taken by the custodian in handling or dealing with the account. (c) Agency account. An Agency account is an account to which funds may be deposited and withdrawals made by an Agent designated by the owner of the funds. An Agent has full authority with regard to the account but does not have an ownership interest in the account. An Agency account is revocable at any time by notifying us in writing. An Agency designation may be combined with one of the forms of account ownership. (d) Business Accounts. If the account is not owned by a natural person (a corporation, partnership, limited liability company, sole proprietorship, unincorporated associations, etc.), then the account holder must provide evidence to our satisfaction of the authority of the individuals who sign the signature card to act on behalf of the account holder. On any transactions involving the account, we may act on the instructions of the person(s) authorized in the resolutions, banking agreement, or certificate of authority to act on behalf of the account holder. You agree to notify us in writing of any changes in the person(s) authorized or the form of ownership. If we receive conflicting instructions or a dispute arises as to authorization with regard to the handling of the account, you agree we may place a hold on the account until such conflict or dispute is resolved to our satisfaction and we will not be liable for dishonored items as a result of such hold. (e) Fiduciary Accounts. With respect to all fiduciary accounts, including but not limited to estate accounts, guardianship accounts, and conservatorship accounts, and the accounts described in subsections (a) through (c) above, we reserve the right to require such documents and authorization as we may deem necessary or appropriate to satisfy that the person(s) requesting or directing the withdrawal of funds held in the account have the authority to withdraw such funds. This applies at the time of account opening and at all times thereafter. SPECIFIC ACCOUNT PROVISIONS A. CHECKING ACCOUNTS. Federal Regulations require us to retain the right to require you to give at least seven (7) days written notice in writing prior to any intended withdrawal. Although we usually pay checks or withdrawals without prior notice on these accounts, doing so does not mean that we give this right. If your account is a YES checking account, it is a master deposit account which will consist of two subaccounts: a transaction account and non- transaction account. The maintenance of the two subaccounts and the transfers between them as described below is for the purpose of improving our efficiency and will have no effect on your account or your ability to use it. The amount of charges you incur (if any), and your monthly checking statement will not be affected. We will maintain separate infor- mation on each subaccount for regulatory reporting process, but all information reported to you will be consolidated. 10 At the beginning of each month we will allocate the balance In your account between the two sub- accounts based on an allocation formula which we may change from time to time. Ali checks, withdrawals, debits, and other changes against your account will be presented against the funds in your transaction account. If additional funds are needed to cover your transaction, we will automatically transfer, without charge, available funds in your non- transaction sub-account to your transaction account. If excess funds accumulate in the transaction account, we may automatically transfer funds to the non-transaction sub-account. Federal regulations limit preauthorized transfers from your non- transaction account to six during a monthly statement period. Upon the sixth transfer from the non-transaction account to the transaction account during a monthly statement period, the entire bal- ance in the non-transaction account will be trans- ferred to the transaction account for the remainder of the statement period. At all times, the combined col- lected balance in the two sub-accounts will be avail- able to pay items presented for payment. If your account is a checking account (Totally FREE Checking or Student Banking Checking), the fol- lowing terms apply. No interest will be paid on any demand deposit checking account with us. Totally FREE Checking or Student Banking Checking account Fees. There is no minimum balance requirement to open and maintain a Totally FREE Checking or Student Banking Checking. There is no monthly service charge. You have unlimited check writing privileges. See the Fee Schedule for other fees that apply to this account. Interest Bearing Checking. If your account is a negotiable order of withdrawal (NOWJ also known as an interest bearing checking account (Interest Checking or 50 Plus account), the account must consist solely of funds in which the entire beneficial interest is held by one or more individuals in an indi- vidual capacity, a sole proprietorship, or a govern- mental unit, but not professional corporations or business partnerships. An interest bearing checking account may be held by a for-profit organization serving in a fiduciary or trustee capacity for an entity that is itself permitted to hold an interest bearing checking account. Otherwise, an organization may hold an interest bearing checking account only if it is operated primarily for religious, philanthropic, charitable, educational, or other similar purpose. Federal regulations require us to retain the right to require you to give at least seven (7) days notice in writing prior to any intended withdrawal. Although 11 we usually pay withdrawals or checks without prior notice on these accounts, doing so does not mean that we give this right. Your account will be recorded on our internal records as two subaccounts for regulatory and accounting purposes. This internal accounting will not effect your account balance, fees, statements, interest earnings, or use in any way. Refer to Fee Schedule for minimum balance requirements to earn interest and avoid monthly service fees. Rate Information. The interest rate and annual percentage yield may change and fees may reduce earnings. At our discretion, we may change the interest rate at any time. Interest will begin to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks). Interest will be compounded daily and will be credited to the account monthly. If the account is closed before interest is credited you will not receive the accrued interest. You can obtain the current rate information for the applicable account at any Commerce branch office. Balance Information. We use the daily balance method to calculate the interest on the account. This method applies a daily periodic rate to the principal in the account each day. We will use an interest accrual basis of 365 for each day in the year. You must maintain the account minimum balance requirements to obtain the disclosed annual percentage yield. Fees may reduce earnings. Interest Checking account Fees and Balance Requirement. There is a minimum balance requirement of $1,000.00 for this account type. If the balance should fall below the minimum, a $5.00 monthly service charge will be assessed on Consumer Accounts and $12.00 on entities that are permitted to have an interest bearing checking account. You must maintain a minimum balance of $1,000.00 in the account each day to obtain the disclosed annual percentage yield. See the Fee Schedule for other fees that apply to this account. Fees may reduce earnings. 50 Plus Checking account Fees and Balance Requirement. There is no minimum balance requirement for this account type. You must maintain a minimum balance of $1.00 in the account each day to obtain the disclosed annual percentage yield. See the Fee Schedule for other fees that apply to this account. B. SAVINGS ACCOUNTS. If your account is an interest bearing account and Is not a checking account or time deposit, the following terms may apply. Federal regulations require us to retain the right to require you to give at least seven (7) days 12 notice in writing prior to any intended withdrawal. Although we usually pay withdrawals or checks without prior notice on these accounts, doing so does not mean that we give this right. Rate Information. The interest rate and annual percentage yield may change and fees may reduce earnings. At our discretion, we may change the interest rate at any time. Interest will begin to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks). If the account is closed before interest is credited you will not receive the accrued interest. You can obtain the current rate information for the applicable account at any Commerce branch office. Interest on Savings Accounts will be compounded daily and will be credited quarterly to Passbook and Premier Savings Accounts and monthly to Statement Savings Accounts. Interest on Money Market Accounts will be compounded daily and will be credited to the account monthly. The Premier Money Market account has a simple interest calculation method and is credited to the account monthly. Balance Information. We use the daily balance method to calculate the interest on the account. This method applies a daily periodic rate to the principal in the account each day. We will use an interest accrual basis of 365 for each day in the year. You must maintain the account minimum balance requirements to obtain the disclosed annual percentage yield. Transfer and Withdrawal Limitations. if your account is a savings or money market deposit account, federal law requires that an account holder may make no more than six (6) transfers and/or withdrawals during any one (1) calendar month to another transaction account of your accounts with us or to a third party by means of preauthorization or automatic transfer, or telephonic (including data transmission) agreement, order or Instruction. No more than three (3) of the six (6) transfers may be made by check, draft, debit card, or similar order made by you or payable to third parties including Point of Sale (POS) transactions. A "preauthorized transfer" includes any arrangement by us to pay a third party from your account upon written or oral instruction (including an order received through an automated clearing house (ACH) or any arrangement by us to pay a third party from your account at a predetermined time or on a fixed schedule. Transfers and withdrawals made in person, by messenger, by mail or at an ATM are unlimited. If you exceed the transfer limitations, on the third month occurrence 13 within a 12 month period the following will occur; a) consumer money market account types will change to an Interest Checking, (please refer to this product description for details); b) consumer savings products will convert to a savings transaction account, (this will not effect your balance, fees, statements, or use in any way but will effect your interest earnings); and all other account disclosures remain unchanged. Money Market Personal account Fees and Balance Requirements. There is a $1,000.00 minimum balance requirement for this type of account. If the balance should fail below the minimum, a $10.00 monthly service fee will be assessed. You must maintain a minimum balance of $1,000.00 in the account each day to obtain the disclosed annual percentage yield. See the Fee Schedule for other fees that apply to this account. Premier Money Market Personal account Fees and Balance Requirements. There is a $25,000.00 minimum balance requirement for this type of account. If the balance should fall below the minimum, a $12.00 monthly service fee will be assessed and the Money Market Personal account rate will be earned. You must maintain a minimum balance of $1,000.00 in the account each day to obtain the disclosed annual percentage yield. A `Simple" interest rate method is used to calculate the amount of interest earned on the collected balance. See the Fee Schedule for other fees that apply to this account. Statement Savings account and Passbook Savings account Fees and Balance Requirements. There is a $100.00 minimum balance requirements for this type of account. If the balance should fall below the minimum, a $2.00 monthly service fee will be assessed. You must maintain a minimum balance of $1.00 in the account each day to obtain the disclosed annual percentage yield. See the Fee Schedule for other fees that apply to this account. Young Savers Statement Savings and Passbook Savings account Fees and Balance Requirements. This account is a no minimum/no fee savings plan for customers who are 21 years of age or younger. The service charge on this account is waived. See the Fee Schedule for other fees that apply to this account. Premier Savings account Fees and Balance Requirements There is a $25,000.00 minimum balance requirement for this type of account. If the balance should fall below the minimum, a $12.00 14 monthly service fee will be assessed. You must maintain a minimum balance of $1.00 in the account each day to obtain the disclosed annual percentage yield. See the Fee Schedule for other fees that apply to this account. Holiday Club Accounts. Equal installment payments of any amount can be deducted weekly or biweekly from a checking, money market or statement savings account or payments may be made with a coupon, or regular savings deposit ticket. Interest compounds daily and will be credited to the account at maturity. If the account is closed before interest is credited, you will not receive the accrued interest. Funds are disbursed in early October. Automatic transfers continue unless the account is closed by the customer. The account can be opened at any time during the year. C. TIME DEPOSITS Certificate of Deposits and Individual Retirement Accounts (IRAs) are available. Contact the branch for current interest rate and annual percentage yields. The following types of IRAs are available: Traditional, Roth and Educational IRAs. Certificate of Deposit Terms. Terms range from six (6) month to as long as five (5) years. Rate Information. This is an interest bearing account. The interest rate is the annual rate of interest paid on the account which does not reflect compounding. The interest rate and annual percentage yield will not change for the term of the account. Interest begins to accrue on the business day you deposit noncash items (for example, checks). Interest will be compounded daily and will be credited to the account monthly. Interest on your account will be credited as agreed to at account opening. Balance Information. We use the daily balance method to calculate the interest on the account. This method applies a daily periodic rate to the prin- cipal in the account each day. We will use an interest accrual of 365 for each day in the year. Limitations. You must deposit $500.00 to open a Certificate of Deposit and $250.00 to open an Individual Retirement account Certificate of Deposit. You may not make additional deposits into this account. You may not make withdrawals from your account until maturity. 15 Certificate of Deoostt Add-On-IRA Rate Information. This is an interest bearing account. The interest rate is the annual rate of interest paid on the account which does not reflect compounding. At our discretion, we may change the interest rate at any time. Interest begins to accrue on the business day you deposit noncash items (for example, checks). Interest will be compounded daily and will be credited to the account quarterly. Interest on your account will be credited by adding Interest to the principal. Balance Information. We use the daily balance method to calculate the interest on the account. This method applies a daily periodic rate to the principal in the account each day. We will use an interest accrual of 365 for each day in the year. You must maintain a minimum balance of $25.00 to obtain the annual percentage yield. Limitations. You must deposit $100.00 to open account. Additional deposits can be made at a minimum of $25.00. You may make partial withdrawals or close the account at any time. Early Withdrawal Penalty. Deposited funds will not be available for withdrawal for six days after the deposit. The amount you withdraw and choose to keep and not roil-over must be included in your gross income as ordinary income in the year in which you receive it. In addition, unless a special exception applies, you will be subject to the 10% excise tax if you have not attained age 59 1/2. All Time Deposits: The annual percentage yield assumes interest will remain on deposit until maturity. A withdrawal will reduce earning. This account will automatically renew. You will have 10 days after the maturity date to withdraw funds without penalty, Early Withdrawal Penalty. You agree to keep the funds on deposit until the Maturity Date. Any withdrawal of all or part of the funds from your account prior to maturity may result in an early withdrawal penalty. We will consider requests for early withdrawal and, if granted, the penalty as specified will apply. If you withdraw any of the principal before the maturity date on certificate of deposits with a term less than thirteen (13) months, we will impose a penalty of 90 days loss of interest. If you withdraw any of the principal before the maturity date on certificate of deposits with a term greater than thirteen (13) months, we will impose a penalty of 180 days loss of interest. If the account is 16 closed before interest is credited, you will not receive the accrued interest. Minimum Required Penalty. If you withdraw monies within six (6) days after the date of deposit, the Minimum Required Penalty is seven (7) days' simple interest on the funds. If partial early with- drawal(s) are permitted, we are required to impose the Minimum Required Penalty on amount(s) with- drawn within six (6) days after each partial withdrawal. The early withdrawal penalty may be more than the Minimum Required Penalty. You pay the early withdrawal penalty by forfeiting part of the accrued interest on the account. If your account has not earned enough interest, or if the interest has been paid, we take the difference from the principal amount. Exceptions. We may let you withdraw money from your account before the Maturity Date without an early penalty: (1) when one or more of you dies or is determined legally incompetent by a court or other administrative body of competent jurisdiction; or (2) when the account is an Individual Retirement account (IRA) established in accordance with 26 USC 408 and the money is paid within seven (7) days after the account is opened; if you forfeit at least the interest earned on the withdrawn funds; or (3) if the account is an IRA established pursuant to 25 USC 408, when you reach the age 59 1/2 or become disabled; or (4) within an application grace period (f any). Automatic Renewal Policy. If the account will automatically renew, the principal amount and all paid earned interest that has not been withdrawn will automatically renew on each maturity date for an identical period of time as the original deposit term. Interest on renewed accounts will be calculated at the interest rate then in effect for time deposits of that Deposit Amount and term. If you wish to with- draw funds from your account, you must notify us during the grace period after the maturity date. Surrender of Instrument. We may require you to endorse and surrender the certificate of deposit instrument to us when you withdraw funds, transfer or close your account. If you lose the Certificate Agreement, you agree to sign an affidavit of lost instrument, or other Agreement we may require, and agree to hold us harmless from liability, prior to our honoring your withdrawal or request. YOUR ABILITY TO WITHDRAW FUNDS Our policy is to make funds from your cash and check 17 deposits available to you on the first business day after the day we receive your deposit. Electronic direct deposits will be available on the day we receive the deposit. Once they are available, you can withdraw the funds in cash and we will use the funds to pay checks that you have written. 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 6:00 P.M. 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 6:00 P.M. or on a day we are not open, we will consider that the deposit was made on the next busi- ness day we are open. Reservation of Right to Hold. In some cases, we will not make all of the funds that you deposit by check avail- able to you on the first business day after the day of your deposit. Depending on the type of check you deposit, funds may not be available until the fifth business day after the day of your deposit. The first $100 of your deposit, however, may be available on the first business day after the day of your deposit. If we are not going to make all of the funds from your deposit available on the first business day, we will notify you at the time you make your deposit. We will also 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 action after you have left the premises, we will mail you the notice by the business day after we receive your deposit. If you need the funds from a deposit right away, you should ask us when the funds will be available. Longer Delays May Apply. Funds you deposit by check may be delayed for a longer period under the following circumstances: • We believe a check you deposit will not be paid. • You deposit checks totaling more than $5,000 on any one day. • You redeposit a check that has been returned unpaid. • You have overdrawn your account repeatedly in the last six months. • There is an emergency, such as failure of computer or communications equipment. We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available no later than the eleventh business day after the day of your deposit. 18 Special Rules for New Accounts. If you are a new cus- tomer, the following special rules will apply during the first 30 days your 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 cashier's, certified, teller's, traveler's, and federal, state and local government checks will be available on the first business day after the day of your deposit if the deposit meets certain conditions. For example, the checks must be payable to you (and you may have to use a special deposit slip). 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 U.S. Treasury check) is not made in person to one of our employees, the first $5,000 will not be avail- able until the second business day after the day of your deposit. Funds from all other check deposits will be avail- able no later than the 11 th day after the day of your deposit. Deposits at Automatic Teller Machines. If permitted by the ATM owner, funds from any deposits (cash or checks) made at automatic teller machines (ATMs) we do not own or operate will not be available until the fifth business day after the day of your deposit. Funds from any deposits (cash or checks) owned and operated by Commerce Bank will be available the first business day after your deposit. All ATMs that we own and operate are identified as our machines. IMPORTANT INFORMATION ABOUT YOUR CHECKING ACCOUNT Substitute Checks and Your Rights What is a substitute check? To make check processing faster, federal law permits banks to replace original checks with "substitute checks." These checks are similar in size to original checks with a slightly reduced image of the front and back of the origi- nal check. The front of a substitute check states: "This is a legal copy of your check. You can use it the same way you would use the original check." You may use a substi- tute check as proof of payment just like the original check. Some or all of the checks that you receive back from us may be substitute checks. This notice describes rights you have when you receive substitute checks from us. The rights in this notice do not apply to original checks or to electronic debits to your account. However, you have rights under other law with respect to those transactions. 19 What are my rights regarding substitute checks? in certain uses, federal law provides a special procedure that allows you to request a refund for losses you suffer if a substitute check is posted to your account (for exam- ple, if you think that we withdrew the wrong amount from your account or that we withdrew money from your account more than once for the same check). The losses you may attempt to recover under this procedure may include the amount that was withdrawn from your account and fees that were charged as a result of the withdrawal (for example, bounced check fees). The amount of your refund under this procedure is limited to the amount of your loss or the amount of the substitute check, whichever is less. You also are entitled to interest on the amount of your refund if your account is an inter- est-bearing account. If your loss exceeds the amount of the substitute check, you may be able to recover addi- tional amounts under other law. If you use this procedure, you may receive up to $2,500 of your refund (plus interest if your account earns interest) within 10 business days after we received your claim and the remainder of your refund (plus interest if your account earns interest) not later than 45 calendar days after we received your claim. We may reverse the refund (including any interest on the refund) if we later are able to demonstrate that the substi- tute check was correctly posted to your account. How do I make a claim for a refund? If you believe that you have suffered a loss relating to a substitute check that you received and that was posted to your account, please contact us at 1-888-937-0004 or write us at Commerce Bank, Attn: Customer Service Department, 3801 Paxton Street, Harrisburg, PA 17111. You must contact us within 40 calendar days of the date that we mailed the substitute check in question or the account statement showing that the substitute check was posted to your account, whichever is later. We will extend this time period if you were not able to make a timely claim because of extraordinary circumstances. Your claim must include: • A description of why you have suffered a loss (for example, you think the amount withdrawn was incorrect); • An estimate of the amount of your loss; • An explanation of why the substitute check you received is insufficient to confirm that you suffered a loss; and • A copy of the substitute check and/or the following information to help us indentify the substitute check: (indentifying information, for example the check number, the name of the 20 person to whom you wrote the check, the amount of the check). ELECTRONIC FUNDS TRANSFER AGREEMENT AND DISCLOSURE Indicated below are types of Electronic Funds Transfers we are capable of handling. Some of which may not apply to your account. Please read this disclosure care- fully because it tells you your rights and obligations for transactions listed. You should keep this notice for future reference. Business days. For purposes of these disclosures, our business days are Monday through Friday. Holidays are not included. Commerce Bank Check Card Brief Description: Commerce Bank's Check Card com- bines the convenience of unlimited ATM (automatic teller machine) banking with the ability to pay purchases directly from your checking account at any world-wide business displaying the Visa logo. Types of Transfers: You may use the automatic teller machine (ATM) card and personal identification number (PIN) issued to you to initiate transactions at ATMs within the networks identified on your card and such other facili- ties as we may designate from time to time. At present you may use your card to (some of these services may not be available at all ATMs): • Withdraw cash from your checking or savings account. • Make deposits to your checking or savings account. • Transfer funds between your checking and savings accounts. • Pay for purchases at places that have agreed to accept the card or code. • Obtain balance information on your deposit accounts. Limitations on Frequency and Amount. • For security reasons, there are limits on the frequency and amount of transfers you can make. • You may withdraw up to a maximum of $500.00 (if there are sufficient funds in your account) per day at ATMs. • You may buy up to $2,000.00 worth of goods or services per day at any location that accepts Visa. You will receive a merchant receipt at the time you make your transaction. You may conduct a cash advance up to $500.00 at any location that accepts Visa (if there are sufficient funds in your account). You may purchase up to a maximum of $2,000.00 21 per day (if there are sufficient funds in your account) as a Point of Sale Debit. Fees and Charges • We do not charge for ATM transactions. • There is no Annual Card Fee. • There is a Replacement Card Fee of $5.00 per card. • We do not charge for Visa Check card transactions. • A surcharge may be imposed by other parties when transactions are initiated from ATMs not operated by Commerce. Electronic Transfer AD Types of Preauthorized Transfers: You may arrange for us to complete the following preauthorized transfers to or from your deposit account. • Pay certain recurring bills from your checking or savings account. Limitations on Frequency and Amount. • None Fees and Charges • We do not charge for direct deposits to any type of account. • We do not charge for preauthorized payments from any type of account. Electronic Funds Transfer GOV Types of Preauthorized Transfers: You may arrange for us to complete the following preauthorized transfers to your deposit account. • Accept direct deposit from the U.S. Treasury Department to your checking or savings account. Fees and Charges • None Electronic Funds Transfer WEB or TEL Brief Description: This is an electronic funds transfer ini- tiated by a third party after the third party receives the consumer's authorization, account information and finan- cial information via the internet or over the telephone. These transactions will be processed as ACH-type trans- actions. Electronic Funds Transfer POP or ARC Brief Description: This is an electronic funds transfer ini- tiated by a third party in which a consumer's check is converted to an ACH transaction. Point-of-Purchase (POP) entries are transactions by a merchant. Accounts 22 Receivable entries (ARC) are by a lockbox or dropbox operator. 1-800-YES-2003 Types of Audio Response Services. You may access your deposit accounts by using a separate personal iden- tification number (PIN) assigned to you and your account number in our audio response system. At the present time you may use the system to: • Transfer funds between your deposit accounts. • Give you tax information on interest earned or paid on your accounts. • Obtain balance information on your deposit accounts. • Verify the last date and amount of your payroll deposit. • Determine if a particular check has cleared your account. • Obtain information on your loan accounts. Limitation on Frequency and Amount: • The amount of your transfers is limited to the available balance in your accounts. • There is no limit on the amount of any transfer or withdrawal from the funds in your deposit account, Confidentiality. We will disclose information to third par- ties about your account or the transfers you make: • Where it is necessary for completing transfers, or • In order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant, or • In order to comply with government agency or court orders, or • If you give us your written permission. Documentation • 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 or purchases at a point-of-sale terminal. • Preauthorized 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, you can call us at 1-800-YES-2003 to find out whether or not the deposit has been made. • 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. You will get a quarterly 23 statement from us on your savings account if this is the only account you maintain and the only possible electronic fund transfers to or from the account is a preauthorized credits. PREAUTHORIZED PAYMENTS Right to stop payment and procedure for doing so. If you have told us in advance to make regular payments out of your account, you can stop any of these payments. Here's how: Call us at 1-888-937-0004 or write us at Commerce Bank, Attn: Customer Service Department, 3801 Paxton Street, Harrisburg, PA 17111, in time for us to receive your request three 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 $20.00 for each stop payment order you give. 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 previous payment, or when the amount would fall outside certain limits that you set.) Liability for failure to stop payment preauthorized transfer. If you order us to stop one of these payments three business days or more before the transfer is sched- uled, and we do not do so, we will be liable for your loss- es or damages. 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, we will be liable for your losses or damages. However, there are some exceptions. We will not be liable, for instance: • If, through no fault of ours, you do not have enough money in your account to make the transfer. • If the transfer would go over the credit limit on your overdraft line. • If the automated teller machine where you are making the transfer does not have enough cash. • If the terminal or system was not working properly and you knew about the breakdown when you started the transfer. • If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken. • If the money in your account is subject to legal process or other claim restricting such transfer. 24 • There may be other exceptions stated in our agreement with you. Consumer liability. Tell us AT ONCE if you believe your card, ATM PIN, POS card or PIN, Audio Response Pin or Commerce Online code or PIN has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account (plus your maximum overdraft line of credit). If you tell us within two business days, you can lose no more than $50 if someone used your card or code without your permission. If you do NOT tell us within two business days after you learn of the loss or theft of your card or code, and we can prove we could have stopped someone from using your cans or code without your permission if you had told us, you could lose as much as $500. Also, if your statement 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, we will extend the time periods. Liability for Unauthorized VISA Point of Sale Debit Card Transactions. Please notify us (immediately) if you believe your Visa point of sale debit card has been lost or stolen or if you have any unauthorized transactions. Federal Regulation E, the Electronic Funds Transfer Act covers all consumer ATM, Intedink, non-Visa branded and Visa Check Card PIN based transactions. Provisional credit for losses from unauthorized card use may be pro- vided within ten business days of notification of the loss. To notify us of lost or stolen cards, or of unauthorized transactions, call or write us at the telephone number and address set forth below. This will help prevent unautho- rized access to your account and minimize any inconven- ience. Visa is a registered trademark of Visa Intemational. Contact in event of unauthorized transfer. If you believe your card or PIN has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, call or write us at the telephone number or address listed in this brochure. 25 In Case of Errors or Questions About Your Electronic Transfers Telephone us at 1-888-937-0004 or write: Commerce Bank Attn: EB Department 3801 Paxton Street Harrisburg, PA 17111 as 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 statement or receipt. We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared. • Tell us your name and account number (if any). • 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. • Tell us the dollar amount of the suspected error. If you tell us orally, we may require that you send us your complaint or question in writing within 10 business days. 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 ques- tion. 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. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account. We will tell you the results within two business days after completing our investigation. If we decide that there was no error, we will send you a written explanation. You may ask for copies of the documentation that we used in our investigation. For errors involving new accounts, foreign intiated transactions or a point-of-sale debit card transac- tions, we may take up to 90 days to investigate. For new accounts, we may take up to 20 business days to credit your account for the amount you think is in error. Personal Identification Number. The ATM PIN or Audio Response PIN issued to you is for your security purposes. The numbers are confidential and should not be disclosed to third parties or recorded on the card. You agree not to disclose or otherwise make your ATM PIN or Audio Response PIN available to anyone not authorized to sign on your accounts. Enforcement. In the event either party brings a legal action to enforce this Agreement or collects amounts 26 owing as a result of any account transactions, the prevail- ing party shall be entitled to reasonable attorneys' fees and costs, including fees on any appeal, subject to any limits under applicable law. Termination of ATM and Audio Response Services. You agree we may terminate this Agreement and your use of the ATM Cana or Audio Response services if. • You or any unauthorized user of your ATM PIN or Audio Response PIN breach this or any other agreements with us; • We have reason to believe that there has been an unauthorized use of your ATM PIN or Audio Response PIN; • We notify you or any other party to your account that we have cancelled or will cancel this Agreement. You or any other party to your account can terminate this Agreement by notifying us in writing. Termination of this Agreement will not affect the rights and responsibilities of the parties under this Agreement for transactions initiated before termination. Deposits at Automatic Teller Machines. Funds from any deposits (cash or checks) made at automatic teller machines (ATMs) we do not own or operate will not be available until the fifth business day after the day of your deposit. Funds from any deposits (cash or checks) owned and operated by Commerce Bank will be available the first business day after your deposit. All ATMs that we own and operate are identified as our machines. ATM SAFETY TIPS As issuers of Automatic Teller Machines (ATM) access devices, we have provided for your information a list of safety precautions regarding the use of automated teller machines. Please read the following safety tips: • Beware of your surrounding, particularly at night. • Your activity at the ATM facility is recorded by a surveillance camera or camera. • If the ATM facility has a door, make sure it is closed before beginning your transaction and after you have completed your transaction. • if another person is uncomfortably close to you, ask the person to step back before you complete your transaction. • Refrain from displaying your cash at the ATM. As soon as your transaction is complete, place your money in your purse or wallet. Count the cash later in the safety of your car or home. • Don't lend your ATM cans to anyone. • Remember, do not leave your card at the ATM. • Protect the secrecy of your Personal Identification Number (PIN). • Prevent others from seeing you enter your PIN by 27 using your body to shield their view. • If you notice anything suspicious or if any other problem arises after you have begun an ATM trans- action, you may want to cancel the transaction, pocket your card and leave. You might consider using another ATM or coming back later. • If you have any complaints regarding the security of the ATM, please direct your complaints to Commerce Bank/Harrisburg, N.A. at (888) 937-0004 or the Pennsylvania Department of Banking at (717) 787-2665. FEES AND CHARGES The fnllowina fees aoniv to all of your accounts with us: CH evocatb t Pe ment 5 TM Transactions FREE Bond Coupon Envelope Cashed or De Posited Item Returned 7 er Rem Cashier Checks 7 Check Ceddled 8 Closing Acourrt (90 Days) _$3 Mail Request Closin 7 Collectlom 17.50 Commerce Check/ATM Card FREE Custom Account Research 15 hour Dormant Account Z 12 permxth kx pred6ryAtrey Makat 2 per month for Savings account Le A_ al Order per Account 100 Mona Order each Non-Sufficient Funds 5 Ver Item Not Service FREE verdraft Item Pek1 $35 per Item _ Penn Arcade Coin Counter FREE Returned Check SF Uncollected Funds Overdrafts $35 per Item safe Deposit Drilling Safe Deposit Lost K 10 S ecial Statement 7 Stop Payment Order S25 per Rem ekes 24 hours to be effective Uncollected Funds 5 per Item Wire Transfer Domestic - Incoming 10 Ire Transfer Domestic - Out oi 17 v4lre Transfer International - Incoming 10 wne TTranaftr international - Outgoing S35 " FDIC and Commerce Bank do not insure safe deposit box contents Fees are subject to change. 28 Important Information About Your Privacy This notice provides detail about the information we col- lect and disclose, and explains how we handle privacy as it relates to you and your accounts. Our Commitment To You We want you to know that your relationship with us is treated with the confidentiality that you expect and deserve. Trust, privacy and confidentiality are the guiding principles upon which Commerce's relationship with you is built. Because we are committed to serving the needs of our customers, we will take all reasonable steps to pro- tect the privacy of their relationship with us. Protecting Customer Information Access to your personal information is limited to those Commerce employees who need to know the information to provide products and services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to protect your nonpublic information. What You Can Do To Protect Your Financial Information • Routinely review and reconcile your account statements. • If you become aware of incorrect information either in our records or as reported by Commerce, please notify us at 1-888-937-0004 and we will promptly make the necessary corrections. • Safeguard and protect your account records and other information pertaining to your relationship with Commerce. • Do not disclose your confidential nonpublic information (personal identification number, social security number, account numbers, etc.) to unknown persons whether over the telephone, on-line, or through the mail. Information We Collect We collect nonpublic personal information about you to help serve your financial needs, provide customer service, offer new products or services, and fulfill legal and regulatory requirements. These types of nonpublic personal information may include: • Information we received from you on ban applications or other forms. • Information about your transactions with Commerce or others. • Information from outside companies or third parties (i.e.credit bureaus) such as motor vehicle reports and demographic information. 29 We collect only the information necessary to deliver quality products and services to our customers. Information We Share We are permitted by law to share nonpublic information about you to outside companies or non-affiliated third parties who participate with us in supplying products and services to customers such as check printing and credit bureaus, government entities in responding to subpoenas and other legal processes, or those companies with whom you have requested us to share information. These nonaffiliated third party companies are not permitted to use our customer information for any purposes other than the services intended. We will share your information with these companies only if they agree to treat it confidentially. The type of information we may share is: • Information we receive from you on loan applications or other forms, such as name, address, social security number, assets and income. • Information about transactions with Commerce, such as account balances and payment history. We do not sell, rent or otherwise provide customer information to outside companies so they can market non-financial services to you. Commerce may make a decision to sell a particular line of business (for example, mortgage servicing rights). Usually, an integral part of that business is its customer database. Commerce reserves the right, in circumstances such as these, to transfer ownership of such customer databases to the purchaser. We do not share any nonpublic personal information about our customers or former customers to anyone, except as permitted by law. Accuracy of Information If you believe we have reported inaccurate information about your account to any consumer reporting agency, please let us know in writing. Be sure to include your complete name, current address, social security number, telephone number, account number, type of account, specific item of dispute, and the reason you believe the information is wrong. Please notify us and we will make the necessary corrections promptly. Send your notice to: Commerce Bank Attn: Customer Service Department 3801 Paxton Street Harrisburg, PA 17111 30 Notes 31 Notes 32 VERIFICATION I, Mindi Sprout, of Commerce Bank/Harrisburg, NA, have read the following Complaint and hereby verify that the allegations set forth therein are true and correct to the best of my knowledge, information and belief. I understand that any false statements made herein are subject to the penalties of 18 Pa. C.S.A. §4904, relating to unsworn falsification to authorities. Date: MINDI SPR UT J r.-? FJ l ? `11 ? V ()\ i Vs r '+F 1 ? 00 0 -F oo b ct SHERIFF'S RETURN - REGULAR CASE NO: 2006-06279 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND COMMERCE BANK/HARRISBURG NA VS BARRETT COMPANY INC WILLIAM CLINE , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT & NOTICE was served upon BARRETT COMPANY INC DEFENDANT the , at 1430:00 HOURS, on the 1st day of November , 2006 at 429 SOUTH 18TH STREET CAMP HILL, PA 17011 by handing to KAREN LOOSE, OFFICE MANAGER, ADULT IN CHARGE a true and attested copy of COMPLAINT & NOTICE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: So Answers: Docketing 18.00 Service 13.20 °• ,."?r °'" Postage .39 Surcharge 10.00 R. Thomas Kline .00 41.59v/? 11/02/2006 -?-/0 L (,9& METTE EVANS WOODSIDE Sworn and Subscibed to By: ?- before me this day Deputy Sheriff of A. D. Curtis R. Long Prothonotary office of the Protbonotarp Cumberranb ttCountp Renee K. Simpson Deputy Prothonotary John E. Slike Solicitor ?- ^j 9 CVIL TERM ORDER OF TERMINATION OF COURT CASES AND NOW THIS 28TH DAY OF OCTOBER, 2009, AFTER MAILING NOTICE OF INTENTION TO PROCEED AND RECEIVING NO RESPONSE - THE ABOVE CASE IS HEREBY TERMINATED WITH PREJUDICE IN ACCORDANCE WITH PA R C P 230.2. BY THE COURT, CURTIS R. LONG PROTHONOTARY One Courthouse Square - Carlisle, Pennsylvania 17013 - (717) 240-6195 - Fax (717) 240-6573