DEPOSIT ACCOUNT AGREEMENT
Welcome to Nara Bank. This Deposit Account Agreement, your signature card, Truth in Savings Account Disclosure, and other disclosures that you receive when you open your account, represent our agreement with you and contain important information about your account. Please read them carefully. By signing our signature card, requesting an account, or maintaining an account, you acknowledge that you have reviewed, understand and agree to be governed by these terms. YOUR ATTENTION IS DRAWN TO THE JURY TRIAL WAIVER AND JUDICIAL REFERENCE PROVISIONS AND THE SEPARATE CONSUMER PRIVACY POLICY DISCLOSURE.
Terms. In this Deposit Account Agreement, the words "you" and "your" refer to each depositor and authorized signers of an account; "we," "us" and "Bank" refer to Nara Bank.
Our Relationship. Unless otherwise expressly agreed in writing, our relationship with you will be that of debtor and creditor. No fiduciary, quasi fiduciary or other special relationship exists between you and us. We owe you a duty of ordinary care. Any internal policies or procedures that we may maintain in excess of reasonable commercial standards and general banking usage are solely for our own benefit and shall not impose a higher standard of care than otherwise would apply in their absence.
Identification. To help the government fight the funding of terrorism and money laundering activities, federal law requires financial institutions to obtain, verify, and record information that identifies each person (individuals and businesses) who opens an account. When you apply for 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 for your driver's license, passport, corporate records or other identifying documents.
DEPOSITS
Source. We may accept items payable to any of you for deposit to your account from any source without questioning the authority of the person making the deposit. We also may give cash back to any authorized account signer(s) or agent(s) in connection with items payable to any owner, whether or not the items have been endorsed by the owner. If you make a deposit or payment that is not accompanied by instructions indicating how or where it is to be credited, we may apply it at our discretion to any loan or deposit account any of you maintains with us. If you deposit funds belonging to third parties in an analyzed account, you represent that your use of any related earnings credit will not violate any applicable law, regulation, obligation, or agreement with such parties.
Endorsements. We may endorse and/or collect items deposited to your account without your endorsement, but may require your personal endorsement prior to accepting an item for deposit. If you deposit an item that bears the endorsements of more than one person or persons who are not known to us, we may refuse the item, require all endorsers to be present, or require that the endorsements be guaranteed by another financial institution acceptable to us before we accept the item.
Items Sent For Collection. We and other institutions may refuse to accept a check or other item for deposit or may accept it on a collection basis only. This often occurs with foreign, questionable or damaged items. If we accept an item for collection, we will send it to the institution upon which it is drawn, but will not credit your account for the amount until we receive the funds from the other institution. If we elect to credit your account before then, we may charge the amount back against your account if we do not receive payment for any reason. We may impose a fee in connection with sending and receiving items for collection (e.g., by charging your account or deducting the fee from the amount remitted). Other institutions that send or receive items for collection involving your account also may impose a fee for their services.
Verification and Collection. Any item that we cash or accept for deposit is subject to later verification and final payment. We may deduct funds from your account if an item is lost, stolen or destroyed in the collection process, if it is returned to us unpaid, or if it was improperly paid, even if you have already used the funds. Cash deposits also are subject to later verification.
ACH Provisional Credits. Credit for an automated clearing house ("ACH") transfer is provisional until final payment is received by the beneficiary financial institution. Until that happens, the party originating the transfer is not deemed to have made payment to the beneficiary, and the beneficiary’s bank is entitled to a refund of the provisional credit. If we give you provisional credit for an ACH transfer, but do not receive final payment, we may charge back your account and you may become obligated to us for the full amount without prior notice or demand.
Notice of Incoming Transfer. We are not required to give you a separate notice of our receipt of an ACH transfer. If we accept ACH credits to your account, you will receive notice of the credit on your next regular periodic statement. Although we may send notice of a non ACH incoming funds transfer (e.g., a wire transfer), we assume no obligation to do so. Transfers to your account will be reflected on your regular periodic statement. You may also contact any branch during normal business hours to determine if a transfer has been credited to your account.
FUNDS AVAILABILITY
(For California Deposit Accounts)
Determining the Availability of a Deposit. For determining the availability of your deposits, every day is a business day except Saturdays, Sundays, and holidays. If you make a deposit at a branch in California before 4:00 p.m. P.S.T. Monday through Thursday, or before 6:00 p.m. P.S.T. on Friday, on a business day that we are open, we will consider that day to be the day of your deposit. Deposits made through our ATMs must be done before 3:00 p.m. P.S.T. Monday through Friday, on a business day that we are open in order to be considered deposited on that day. If you make a deposit after these times or on a day we are not open, we will consider that the deposit was made on the next business day we are open.
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, generally funds will be available no later than the sixth business day after the day of your deposit. The first $100 of the aggregate deposits, however, will be available on the first business day after the date 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 this action after you have left the premises, we will mail you the notice by the day after we receive your deposit. If you will need the funds from a deposit right away, you should ask us when the funds will be available.
In addition, 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.
Time period adjustment for withdrawal by cash or similar means. We may extend by one business day the time when funds deposited by local or non-local checks are available for withdrawal by cash or similar means. However, we will make $400 of these funds available for withdrawal by cash or similar means by no later than 5:00 p.m. on the business day on which the funds are scheduled to be made available (the day the funds must be made available to pay checks drawn on the account). This $400 is in addition to the $100 which must be made available on the business day following the banking day of deposit. Any remaining funds will be available for withdrawal on the following business day on which the funds are scheduled to be made available.
FUNDS AVAILABILITY
(For New York and New Jersey Deposit Accounts)
Funds Availability. Our policy is to delay the availability of funds from your cash and check deposits. During the delay, you may not withdraw the funds in cash and we will not use the funds to pay checks that you have written. Please remember that ever after we have made funds available to you, and you have withdrawn funds, you are still responsible for checks that you deposit that are returned to us unpaid or for any other problem involving your deposit.
Determining the Availability of a Deposit. The length of the delay is counted in business days from the day of your deposit. Every day is a business day except Saturdays, Sundays, and holidays. If you make a deposit before 3:30p.m. E.S.T. (or 3:00p.m. E.S.T. for the Manhattan Branch) or before 3:00 p.m. E.S.T. at an Automated Teller Machine ("ATM") located at one of our branches 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 3:30p.m. E.S.T. (or 3:00p.m. E.S.T. for the Manhattan Branch) or after 3:00 p.m. E.S.T. at an ATM located at one of our branches or on a day we are not open, we will consider that the deposit was made on the next business day we are open. The length of the delay varies depending on the type of deposit and is explained below.
Same Day Availability. For consumer accounts only, funds from electronic direct deposits to your account will be available on the day we receive the deposit.
Next-Day Availability. Funds from the following deposits are available on the first business day after the day of your deposit:
U. S. Treasury checks that are payable to you
Wire Transfers
Checks drawn on Nara Bank
Electronic payments for non-consumer accounts
If you make the deposit in person to one of our employees, funds from the following deposits are also available on the first business day after the day of your deposit:
Cash
State and local government checks that are payable to you
Cashier’s, certified, and teller’s checks that are payable to you.
Federal Reserve Bank checks, Federal Home Loan Bank checks, and postal money orders, if these items are payable to you.
If you do not make your deposit in person to one of our employees (for example, if you mail the deposit), funds from these deposits will be available on the second business day after the day we receive your deposit.
Other Check Deposits. The delay for other check deposits depends on whether the check is a local or nonlocal check. To see whether a check is a local or a nonlocal check, look at the routing number on the check.
(For New York Deposit Accounts Only)
If the first-four digits of the routing number are 0213, 0220, 0223, 2213, 2220, and 2223, and the check is drawn on a bank within New York State, then the check is considered a nonlocal in-state check. Otherwise, if the first four digits of the routing number is not listed above, and the check is drawn on a bank outside of New York State, the check is considered a nonlocal out of state check.
Some checks are marked "payable through" and have a four-or nine-digit number nearby. For these checks, use the four-digit number (or the first four digits of the nine-digit number), not the routing number on the bottom of the check, to determine, if these checks are local, nonlocal in-state, or nonlocal out-of-state. Our policy is to make funds from local, nonlocal in-state, or nonlocal out of state checks available as follows.
1. Local checks. The first $100 from the aggregate deposit of local checks will be available on the first business day after the day of your deposit. The remaining funds will be available on the second business day after the day of your deposit. For example, if you deposit a local check in the amount of $700 on a Monday, $100 of the deposit is made available on Tuesday. The remaining $600 is made available on Wednesday.
2. Nonlocal in-state checks. The first $100 from the aggregate deposit of non-local checks will be available on the first business day after the day of your deposit. The remaining funds will be available on the third business day after the day of your deposit. For example, if you deposit a $700 non-local check on a Monday, $100 of the deposit is made available on Tuesday. The remaining $600 is made available on Thursday.
3. Nonlocal out-of-state checks. The first $100 from the aggregate deposit of a nonlocal out of state checks will be made available on the first business day after the day of your deposit. The remaining funds will be made available on the fifth business day after the day of your deposit. For example, if you deposit a $700 nonlocal out of state check on Monday, $100 of the deposit is made available on Tuesday. The remaining $600 is made available on Monday of the following week.
In order to determine the availability of your funds, you should look at the bank address which appears on the check or the routing number on the check (see diagram above). You can always ask a customer service representative to assist you in determining the availability of your funds from any particular check.
If you deposit two or three of the above categories of checks, only $100 from all three check categories combined will be available on the first business day after the day of your deposit; not $100 from each category of checks.
(For New Jersey Deposit Accounts Only)
If the check has routing numbers other than those shown above, the check is a nonlocal check. Some checks are marked "payable through" and have a four-or nine-digit number nearby. For these checks, use the four-digit number (or the first four digits of the nine-digit number), not the routing number on the bottom of the check, to determine, if these checks are local or nonlocal. Our policy is to make funds from local and nonlocal checks available as follows:
1. Local checks. The first $100 from the aggregate deposit of local checks will be available on the first business day after the day of your deposit. The remaining funds will be available on the second business day after the day of your deposit. For example, if you deposit a local check in the amount of $700 on a Monday, $100 of the deposit is made available on Tuesday. The remaining $600 is made available on Wednesday.
2. Nonlocal checks. The first $100 from the aggregate deposit of a nonlocal out of state checks will be made available on the first business day after the day of your deposit. The remaining funds will be made available on the fifth business day after the day of your deposit. For example, if you deposit a $700 nonlocal out of state check on Monday, $100 of the deposit is made available on Tuesday. The remaining $600 is made available on Monday of the following week.
(For New York and New Jersey Deposit Accounts)
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 11th business day after the day of your deposit.
Time period adjustment for withdrawal by cash or similar means. We may extend by one business day the time when funds deposited by local or non-local checks are available for withdrawal by cash or similar means. However, we will make $400 of these funds available for withdrawal by cash or similar means by 2:00 p.m., but no later than 5:00 p.m. on the business day on which the funds are scheduled to be made available (the day the funds must be made available to pay checks drawn on the account). This $400 is in addition to the $100 which must be made available on the business day following the banking day of deposit. Any remaining funds will be available for withdrawal on the following business day on which the funds are scheduled to be made available.
Special Rules for New Accounts.
If you are a new customer, 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. The excess over $5,000 will be available on the ninth 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 available until the second business day after the day of your deposit. Funds from all other check deposits will be available on the 11th business day after the day of your deposit.
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 immediately, but delay your ability 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 periods that are described elsewhere in this disclosure for the type of check that you deposited.
If you need clarification regarding our hold policy, please write to us at 3731 Wilshire Boulevard Suite 1000, Los Angeles, CA 90010, or call us in California at 213-639-1700 and in New York and New Jersey at 212-268-4111. You may also call our toll free number 888-811-NARA (6272) (for calls outside Los Angeles County regardless of whether you are in-state or out-of-state).
SUBSTITUTE CHECKS
You agree not to deposit substitute checks, as described below, or checks bearing a substitute check legal equivalence statement ("This is a legal copy ...") to your account without our prior written consent. Unless we agree otherwise in writing, our acceptance of such checks shall not obligate us to accept such items at a later time, and we may cease doing so without prior notice. If we approve the deposit of substitute checks, you agree to indemnify, defend and hold us harmless from all losses, costs, claims, actions, proceedings and attorney’s fees that we incur as a result of such checks, including without limitation, any indemnity or warranty claim that is made against us because: (a) the check fails to meet the requirements for legal equivalence, (b) a claimant makes a duplicate payment based on the original check, the substitute check, or a paper or electronic copy of either; or (c) a loss is incurred due to the receipt of the substitute check rather than the original check. Upon our request, you agree to provide us promptly with the original check or a copy that accurately reflects all of the information on the front and back of the original check when it was truncated.
You agree not to issue checks with features or marks that obscure, alter or impair information on the front or back of a check or that otherwise prevents us or another bank from capturing such information during automated check processing.
We may convert original checks to substitute checks.
The following notice applies to consumer accounts and supersedes, where inconsistent, other terms in this agreement with respect to substitute checks.
Substitute Checks and Your Rights – Important Information About Your Account
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 original 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 substitute 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.
What Are Your Rights Regarding Substitute Checks?
In certain cases, 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 example, 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 interest-bearing account. If your loss exceeds the amount of the substitute check, you may be able to recover additional 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 substitute check was correctly posted to your account.
How Do You 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 immediately at (213) 639-1700 followed by a written claim. You must submit your written claim within 40 calendar days of the date that we mailed (or otherwise delivered by a means to which you agreed) 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 written claim must include –
Your name and account number;
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 identify the substitute check: the check number, the date of the check, the name of the person to whom you wrote the check, and the exact amount of the check (dollars and cents).
INTEREST ON DEPOSITS
Interest Rates. Interest rates paid on our accounts are determined by our management, based on market conditions and other business factors.
Please see your Truth in Savings Account Disclosure for details regarding how we calculate and pay interest, and the penalties we impose for early withdrawals from time certificates of deposit.
WITHDRAWALS
Authorized Signers. Your signature card or electronic account opening record identifies who is authorized to make withdrawals, write checks, transfer funds, stop payments, obtain ancillary services (e.g., electronic fund transfer services or wire transfers), and otherwise give us instructions regarding your account. Any authorized signer may open additional Bank accounts (except New Jersey multiple party deposit accounts) for you in the same name and tenancy. Although your card may indicate that more than one signature is required on checks and for the withdrawal or transfer of funds, that notation is principally for your own purposes. We do not assume a duty to enforce multiple signature requirements. As such, we assume no duty to confirm that two or more (or any combination) of authorized signers have approved any transaction. Unless we enter into a separate written agreement to the contrary, we may act upon the instructions of any one authorized signer. Although we may attempt on occasion to enforce the multiple signature requirement shown on your card (e.g., by refusing to permit a transaction by less than the stated number of authorized signers), we may cease doing so at any time and without prior notice to you.
If we agree in writing to enforce a multiple signature requirement for check withdrawals, you agree to order checks that bear a legend above the signature lines that two signatures (or more, if applicable) are required.
We may pay any check that bears a signature or endorsement (including a facsimile signature) resembling an authorized signature on file with us. You agree that signatures by your authorized agents (e.g., persons acting under a power of attorney) are valid, even if the principal agent relationship is not indicated on the check or instruction.
We may honor checks drawn against your account by authorized signers, even if the checks are made payable to them, to cash, or for deposit to their personal accounts. We have no duty to investigate or question withdrawals or the application of funds.
Requirements. We may refuse to pay any check that does not have the required number of signatures or that bears a signature that (in our opinion) does not satisfactorily compare with the specimen signature on file with us. All checks written on your account must be drawn in U.S. Dollars. If your checks are presented for payment or acceptance on a weekend, a holiday, or after our processing cutoff hour, we may treat them as if we had received them on the next business day.
We may process your checks, ATM transactions, point-of-sale payments and other transactions in any order we choose. Although we generally pay checks presented over-the-counter first, followed by other checks in serial number order (rather than in the order in which they are presented), we are not obligated to do so and may change, at any time, the order in which we process your transactions without prior notice to you. We generally pay over-the-counter checks before other checks. If you want to avoid being charged for nonsufficient fund (NSF) and the possibility of returned items, you should ensure that your account contains sufficient collected funds for each of your transactions at all times.
If there is a discrepancy in a check you have written between the amount in numbers and the amount in words or embossed numbers, we may utilize either amount in our discretion in paying the item or may dishonor the item, without liability.
We may waive or require the presentation of passbooks and certificates for withdrawals or other transactions involving accounts.
Limitations. We may refuse or limit withdrawals from any office that is not your branch of account. We may (but are not obligated to) require suitable identification and/or presentation of account ownership records for any withdrawal or account closure. At our discretion, we may require all of your signatures for the withdrawal of funds and/or the closing of an account. We may require non-customers to present suitable identification, including a fingerprint, in connection with the cashing of checks.
Certain accounts are subject to transaction limitations and penalties for early withdrawal (See the Truth in Savings Account Disclosure). We may refuse to honor any withdrawal or order if funds on deposit are insufficient or unavailable to cover the request or order or there is a dispute or question as to the ownership of account funds (See"Conflicting Demands/Disputes" under "Additional Terms/Conditions").
Advance Notice. We reserve the right to require 7 days advance notice to withdraw or transfer funds from any account, but may at any time permit any withdrawal from the account without such notice and without hereby waiving the right to require notice as to any other withdrawal. We currently do not exercise this right and have not exercised it in the past.
Cutoff Hour. If we receive an item for payment on a weekend, a holiday or after 2:00 p.m. on a business day, we may treat it as if we had received it on the next business day.
Electronic Presentment/Posting. We may charge your account on the day that a check or other transaction is presented (or returned) to us directly or electronically for payment. We may charge your account or place a hold on funds at an earlier time if we receive notice that a check or other item deposited to your account is being returned, or if we receive notice that your check or electronic payment (e.g., at a point-of-sale) is being processed for collection. Please note: Some merchants may obtain authorizations in advance for point-of-sale transactions in an amount greater than the final transaction amount. You agree that we may place a hold on sufficient funds to cover the amount of the authorized transaction, pending its final settlement through the system, even if that amount exceeds the actual amount of the transaction. This could affect the balance available to cover other transactions.
ACCOUNT LIMITATIONS
Deposits. We may refuse to accept a deposit or an addition to an account, limit its size, or return all or part of it to you. We reserve the right to limit the amount of funds that may be maintained in an account.
Cash Withdrawals. Cash withdrawals or payments at any branch may be restricted due to the limited amount of currency on hand. If we do not have sufficient cash for a large withdrawal or payment, we may make arrangements for a later cash payment or offer to make payment with a Bank check. We assume no responsibility to provide personal protection for customers who elect to carry large sums of money off our premises.
Non-Customer Check Cashing. We may impose a charge on non-customers who cash a check at one of our offices. We may also require non-customers to present suitable identification, including a fingerprint, in connection with the transaction. If the person cashing a check fails to or refuses to satisfy our requirements, we may refuse to cash the check. We are not liable to you for refusing to cash the check or charging a check cashing fee for checks.
Money Market and Savings Accounts. Transactions involving these accounts are limited by law. You may only make up to six withdrawals and/or transfers each monthly statement cycle by check (for accounts with check privileges), preauthorized or automatic transfer (e.g., automatic payments to an insurance company), draft, point-of-sale debit card ATM/Debit Card, telephone and/or Online/Internet Banking. Only three of these six transactions may be by check, draft, point-of-sale debit card, or similar order to third parties. If you exceed these limitations, we may refuse to honor the excessive transactions, remove your transfer privileges, close the account without prior notice, convert it to another type of account, and/or impose a fee for exceeding the limits. Note: We count checks for purposes of the transaction limitation as of the date we post them to your account (not as of the date you write them). As such, a check you write during one statement period may not be counted until a subsequent statement period.
We may refuse or limit telephone and mail withdrawals, at our discretion. The law does not limit the number of withdrawals you can make in person at your branch of account or at an ATM. Nor is there any limit on the number of deposits that can be made to your account each month (e.g., in person or by preauthorized or automatic transfer).
Time Certificates of Deposit. Unless our written agreement with you says otherwise, you do not have a right to make early or partial withdrawals from, or additional deposits to, an existing time certificate of deposit. See our Truth in Savings Account Disclosure regarding penalties imposed on early withdrawals.
FEES
Our Truth in Savings Account Disclosure describes the most frequently encountered fees associated with our accounts and services. Some services are negotiated separately and may be subject to other written agreements with us. Information on fees for services not covered by the schedule is available upon request.
Monthly service charges are earned the first day of the statement period and collected on the last day of the statement period or the date the account is closed. Service charges are not prorated for partial months. Certain fees may change without specific notice to you. Account owners must promptly pay the fees and charges associated with their accounts and services, and are jointly and severally liable for such fees. We may deduct account fees automatically from your accounts.
REGULATION GG – UNLAWFUL INTERNET GAMBLING ACT OF 2006
The Unlawful Internet Gambling Act prohibits any person engaged in the
business of betting or wagering (as defined by the Act) from knowingly accepting
payments in connection with the participation of another person in unlawful
internet gambling. The Department of Treasury and Federal Reserve Board have
issued a joint final rule, Regulation GG, to implement this Act.
As defined in Regulation GG, unlawful Internet gambling means to “place,
receive or otherwise knowingly transmit a bet or wager by any means which
involves the use, at least in part, of the Internet where such bet or wager is
unlawful under any applicable Federal or State law in the State or Tribal lands
in which the bet or wager is initiated, received or otherwise made”.
The unlawful Internet gambling transactions are prohibited from being
processed through your account or banking relationship with us.Please contact us
if you like additional information on Regulation GG.
ELECTRONIC FUND TRANSFERS
Preauthorized/Automatic Transfers. The following sets forth your rights and responsibilities concerning Electronic Fund Transfers ("EFTs"). Pre-authorized electronic fund transfers may be to your account from a third party (e.g., Social Security, a pension fund or your employer) or from your account to a third party (e.g., checks converted to electronic automated clearing house ("ACH") transactions, and recurring mortgage or insurance payments through the ACH). Pre-authorized transfers do not include: (a) transactions initiated by check, draft or similar paper instrument, (b) transfers to or from business or other non-personal accounts, (c) individual transfers we initiate under an agreement with you, but without your specific request (e.g., automatic savings and automatic loan payments to us from your account), or (d) transfers initiated by telephone. Please note: If federal recurring or other electronic payments are made into your account, the payments may be affected by a change in account status or transfer (e.g., to another office). If you plan to transfer your account or change its status, please speak with us in advance about the impact the change may have on your electronic fund transfer services.
Telephone Banking Service. You can access this service by calling 213-383-8111 or 888-811-NARA (6272) if you are calling from outside Los Angeles County to transfer funds between your accounts with us and to obtain account information.
Personal Identification Number. We will provide you with a personal identification number ("PIN") in order to access this service and provide us with instructions. We highly recommend you change your initial PIN that we provide to you You agree not to disclose your PIN to others and to safeguard its confidentiality. We will not be responsible for unauthorized use of your PIN.
Transfers. We will only transfer funds between Bank accounts with the same authorized signers. Transfers cannot be made from time deposits. If we receive your transfer instruction prior to our daily cutoff hour of 5:00 p.m. P.S.T., we will make the funds available for use or withdrawal at the opening of our next business day.
Account Information. You can obtain balance and transaction information regarding your Bank accounts. Please note that balance information may not reflect recent transactions, and may include funds that are not available for immediate withdrawal. The balance information feature is not subject to the error resolution or liability sections set forth below.
Cutoff Hour. We will act upon instructions received from 9:00 a.m. to 5:00 p.m. P.S.T. Monday - Friday. If we receive a transfer or payment instruction outside of those hours or on a Saturday, Sunday or holiday, it may not be processed until the next business day.
Electronic Check Conversion. You may authorize a merchant or other payee to make a one-time electronic payment from your checking account using information from your check to pay for purchases or pay bills.
Applying for EFT Services. Any authorized signer on an account that requires only one signature for the withdrawal of funds may apply for electronic fund transfer services on behalf of all of you. Once an electronic fund transfer service is established, any authorized signer on your account may act alone in conducting electronic fund transactions, regardless of the number of required signers indicated on the account application.
Record of Your Transaction
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 your branch to find out whether or not the deposit has been made.
Account Statements. Except for time certificate of deposits, you will get a monthly account statement unless there are no transfers in a particular month. In any case you will get a statement at least quarterly.
Preauthorized Transfers. If you have arranged in advance to make regular payments out of your account and they 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.
Passbook Accounts. Upon request if you bring your passbook to us, we may record any electronic deposits that were made to your account since the last time you brought in your passbook.
Our Liability For Failing To Make Transfers. If we do not complete an electronic fund transfer to or from your account on time or in the correct amount according to our agreement with you, we will be liable only for your actual losses or damages. However, there are some exceptions. We will not be liable, for example, if:
Through no fault of ours, you do not have enough available funds in your account to make the transfer;
The transfer would exceed the credit limit of any overdraft line you have with us;
Circumstances beyond our control (such as fire, flood, water damage, power failure, strike, labor dispute, computer breakdown, rolling blackout, telephone line disruption or a natural disaster) prevent or delay the transfer despite reasonable precautions taken by us;
The funds in your account are subject to legal process, an uncollected funds hold, or are otherwise not available for withdrawal;
We have reason to believe the transaction may not be authorized by you; or
The information supplied by you or a third party is incorrect, incomplete, ambiguous or untimely.
There may be other exceptions stated in our agreement with you.
Lost or Stolen PIN or Unauthorized Transactions. If you believe your PIN has been lost or stolen, that someone has transferred or may transfer money from your account without your permission, or that a transfer has been made using information from your check without your permission, immediately write to us at 3731 Wilshire Boulevard Suite 1000, Los Angeles, CA 90010, or call us in California at 213-639-1700 and in New York and New Jersey at 212-268-4111. You can also call our toll free number 888-811-NARA (6272) (for calls outside Los Angeles County regardless of whether you are in-state or out-of-state).
Your Liability for Unauthorized Electronic Fund Transfers. Tell us AT ONCE if you believe your PIN has been lost or stolen, or if you believe that an electronic fund transfer has been made without your permission using information from your check. 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 after you learn of the loss or theft of your PIN, you can lose no more than $50 if someone used your PIN without your permission.
If you do not tell us within two business days after you learn of the loss or heft of your PIN and we can prove that we could have stopped someone from using your PIN 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, including those made by a code or otherwise, 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 period.
Business and Other Non-personal Accounts. The provisions in this Electronic Fund Transfers section dealing with "Our Liability for Failing to Make Transfers," "Your Liability for Unauthorized Electronic Fund Transfers," and "In Case of Errors or Questions About Your Electronic Fund Transfers" (and related provisions on the back of periodic statements) do not apply to business or other non-personal accounts. The owners of non-personal accounts must notify us immediately if they discover any unauthorized transactions or errors, and must send us a written notice of the problem within a reasonable time (not to exceed 14 days from the date of discovery or their receipt of the first statement or notice reflecting the problem, whichever occurs first). Under no circumstances will we be liable for any special or consequential damages involving such accounts.
We may process transactions that are initiated by means of a PIN for non-personal accounts, even if the transactions are not initiated or authorized by the owners, unless we are notified in advance that the PIN has been lost or stolen. The owners of non-personal accounts assume sole responsibility for any unauthorized use of the account’s PIN, and shall indemnify, defend and hold the Bank harmless from all claims, actions, proceedings, losses and damages related to or arising out of any unauthorized transactions.
How to Stop Preauthorized Transfers From Your Account. If you have told us in advance to make regular payments out of your account, you can stop any of these payments by writing to us at: Nara Bank, 3731 Wilshire Boulevard., Suite 1000, Los Angeles, California 90010, or by calling us in California at 213-639-1700 and in New York and New Jersey at 212-268-4111. You can also call our toll free number 888-811-NARA (6272) (for calls outside Los Angeles County regardless of whether you are in-state or out-of-state) or contact one of our branches near you.
We must receive your request at least three business days before the payment is scheduled to be made. (Note: If you fail to give us your request at least three business days prior to a transfer, we may attempt, at our sole discretion, to stop the payment. We assume no responsibility for our failure or refusal to do so, however, even if we accept the request for processing.) If you call, we may require you to put your request in writing to us and to provide us with a copy of your notice to the payee, revoking the payee’s authority to originate debits to your account, within 14 days after you call. If we do not receive the written confirmation within 14 days, we may honor subsequent debits to your account. For individual payments, your request should specify the exact amount (dollars and cents) of the transfer you want to stop, the date of the transfer, and the identity of the payee. We may treat your stop payment order as a request concerning the one transfer only. We may impose a fee for your stop payment order request.
If you order us to stop one of these payments at least three business days before the transfer is scheduled and we do not do so, we will be liable for your losses or damages.
In Case of Errors or Questions About Your Electronic Fund Transfers (For Personal and Non-business Accounts Only). Call or write to us at the telephone number/address described above as soon as you can if you think your statement or receipt is wrong or if you need more information about an electronic transaction. 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.
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.
In addition, it would be helpful if you provided us with any supporting documentation related to the 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 (20 business days if the transfer involved a new account) after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 (90 days if the transfer involved a new account, a point of sale transaction, or was a foreign transaction) 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 that it takes us to complete our investigation. In certain instances, we may provide credit sooner. 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.
For errors involving new accounts or foreign-initiated transactions, we may take up to 90 days to investigate your complaint or question. For new accounts, we may take up to 20 business days to credit your account for the amount you think is in error.
We will tell you the results within three 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 documents that we used in our investigation.
Fees . If you exceed the transaction limitations for Savings and Money Market Accounts, we may impose a charge. Please see your Truth in Savings Account Disclosure for details.
Business Days. For purposes of these disclosures, our business days are Monday through Friday, excluding holidays.
Release of Account Information. We may release information regarding your account and the transactions you perform in accordance with our separate Consumer Privacy Policy Disclosure.
Limitations. Certain transaction limitations are imposed on Money Market and Savings Accounts (See "Money Market and Savings Accounts" under "Account Limitations").
Change in Terms/Termination of Service. We may add to, delete or change the terms or terminate your use of our electronic fund transfer services at any time, with or without cause. We may terminate or suspend your electronic fund transfer service immediately if: any of you breach this or any other agreement with us; we have reason to believe that there has been or may be an unauthorized use of your account; there are conflicting claims to the funds in your account; or any of you requests that we do so.
Automated Teller Machine and Debit Cards. If you are approved for an ATM or debit card, the agreement applicable to that service will accompany your card(s). You agree to be bound by its terms and conditions unless you promptly cut the card(s) in half and notify us in writing that you do not agree to the terms. Your use of the card(s) will be additional evidence of your agreement to the terms.
Online/Internet Banking. You may use your computer to obtain account information and make certain transfers. When you subscribe to this service, we will provide you with a separate agreement and disclosures for the service.
PRIVACY POLICY
Please see our separate Consumer Privacy Policy Disclosure.
DISPUTE RESOLUTION
Jury Trial Waiver (New York and New Jersey) . If you maintain your account in New York or New Jersey, you and we each waive our respective rights to a trial before a jury in connection with any disputes related to your account or account services. This includes any claim by us, or by you, claims brought by you as a class representative on behalf of others, and claims by a class representative on your behalf as a class member (so-called "class action" suits). You irrevocably submit to the jurisdiction of any state or federal court in any county in which we maintain an office in an action or proceeding arising out of or relating to an account; and irrevocably agree that all claims brought by you shall be heard and determined in such court. You waive the right to interpose any set-off or counterclaim (other than compulsory counterclaims) and waive any objection based upon forum non conveniens or venue and waive any claim for consequenti al, punitive or special damages.
Judicial Reference (California) . If you maintain your account in California and a dispute involving $25,000 or more arises between us with respect to this Agreement, its enforcement or our services, either of us may require that it be resolved by judicial reference in accordance with California Code of Civil Procedure, Sections 638, et seq. The referee shall be a retired judge, agreed upon by the parties, from either the American Arbitration Association (AAA) or Judicial Arbitration and Mediation Service, Inc. (JAMS). If you and we cannot agree on the referee, the party who initially selected the reference procedure shall request a panel of ten retired judges from either AAA or JAMS, and the court shall select the referee from that panel. The costs of the reference procedure, including the fee for the court reporter, shall be borne equally by all parties as the costs are incurred. The referee shall hear all pre-trial and post-trial matters, including requests for equitable relief; prepare an award with written findings of fact and conclusions of law; and apportion costs as appropriate. Judgment upon the award shall be entered in the court in which such proceeding was commenced and all parties shall have full rights of appeal. This provision will not be deemed to limit or constrain our right to set off, to obtain provisional or ancillary remedies, to interplead funds in the event of a dispute, to exercise any security interest or lien we may hold in property, or to comply with legal process involving your accounts or other property. Venue for any action brought in accordance with this provision shall be in State of California.
ADDITIONAL TERMS AND CONDITIONS
Adjustments. We may make adjustments to your account whenever a correction or change is required. Adjustments might occur, for example, if deposits are recorded in the wrong amount or items you deposit are returned unpaid. We may elect, at our discretion, not to make an adjustment to your account to correct an error which you or a third party (e.g., another financial institution) cause if the adjustment is less than $5.00 or our cost to make the adjustment is greater than the amount in question.
Amendments/Changes in Account Terms. We may change or amend (which incudes add to, delete or alter) the terms of our agreement with you at any time by mailing, e-mailing or delivering a notice, a statement message or an amended agreement to any of you at the last address (location or e-mail) on file for you, your account, or the service in question. Unless otherwise required by law, we may amend the agreement without prior notice (e.g., by posting the information in our offices, on our/your web site, or otherwise making it available to you).
We may substitute similar services or discontinue currently offered services for certain accounts by giving you prior notice. We do not have to notify you, however, of any changes that are beneficial to you (e.g., a reduction or waiver of any fees or the addition of services) or if the change is required for security reasons.
Attorney-Client Trust Accounts. Attorneys may establish unsegregated client trust accounts, as required by law, for the purpose of receiving and disbursing client funds that are nominal in amount or on deposit for a short time. Interest on these "IOLTA" or "IOLA" accounts is paid to the State Bar. If you want to open an IOLTA or "IOLA" account, you must indicate that on your signature card. Otherwise, we may assume that it is not an IOLTA or "IOLA" account.
Bank by Mail. You agree that all transactions by mail shall be undertaken at your sole risk and shall be subject to rules and regulations applicable to withdrawals and deposits in general. You shall not include any currency in any deposit by mail and shall hold the Bank harmless from any liability in connection with currency allegedly lost through deposit by mail.
Changes in Account Ownership, Address and Authorized Signers . You agree to notify us immediately in writing of any change in your name, address, business capacity (e.g., sole proprietor to corporation), or the authorized signers on your account. We may require a new signature card to be delivered to us before any change in ownership or authorized signers becomes effective. We may require some or all of the pre-existing signers to approve the change.
If the authorized persons on your account change, we may continue to honor items and instructions given earlier by any previously authorized person(s) until we receive specific notice from you in writing not to do so (Note: A new or updated signature Card, by itself, does not constitute notice to terminate any pre-existing payment or transfer plan). In some instances we may require you to close your account or provide us with stop payment orders in order to prevent transactions from occurring. There may be a delay in implementing a change in the authorized persons on our records, and you agree that we will be given a reasonable opportunity to make the changes necessary.
We may rely solely on our account records to determine the ownership of your account.
Checks. Check prices vary according to the types of checks you select. You can obtain information on the current price of checks by contacting your office of account. Check charges may change from time to time without specific notice to you. You are responsible for verifying the accuracy of all information shown on your checks and deposit tickets. If you find an error, please notify us immediately. We are not liable for losses resulting from incorrectly printed checks or deposit tickets.
If you arrange for the printing of your own checks, the form, encoding and format of the checks must follow our check specification requirements and be approved by us in advance. If you do not purchase your checks through us, we may charge a fee for each check that is rejected during processing due to poor print quality, or if it fails to meet our specifications. You agree not to issue checks with features or marks that obscure, alter or impair information on the front or back of a check or that otherwise prevents us or another bank from capturing such information during automated check processing.
We make checks available that include fraud prevention features. If you choose not to use them or other checks that include fraud prevention features, you agree to assume a heightened degree of responsibility for safeguarding your checks, and for reviewing all returned checks and statements as soon as you receive them.
You agree to safeguard your blank and canceled checks, and to take reasonable steps to prevent their unauthorized use. If you are a business, you should store them under dual control in a secure, locked location that is accessible only to authorized personnel. If your checks are lost or stolen, you agree to notify us immediately. For security reasons, we reserve the right to close your account and transfer the balance to a new account. If we do, all checks written but not yet paid may be returned to payees as "Account Closed" or "Refer to Maker." You will be responsible for issuing any replacement checks.
Checks Bearing Notations. Although we are not obligated to, we may pay or accept checks and other items bearing restrictions or notations (e.g., "Void after 6 months," "Two Signatures Required," "Void over $50.00," "Payment in Full," and the like), whether on the front or back, in any form or format. If you cash or deposit an item or write a check with such a notation, you agree that it applies only between you and the payee or maker. The notation will have no effect on us, and you agree to accept responsibility for payment of the item.
Check Endorsement. Federal regulations provide that the top 1-1/2 inches on the back of a check (when read vertically from the trailing edge) is designated for your endorsement as payee. If you endorse a check in the area outside of the endorsement area, mark or otherwise obscure the other area, or make an endorsement which is illegible or incomplete, you agree to hold us harmless from any loss, delay, liability, claim, or damage which occurs as a result.
Check Imaging/Truncation. If you receive our check imaging service, we will send images of your canceled checks to you with your monthly statements. With check truncation, we will maintain a record of your cancelled checks. Your cancelled checks and substitute checks will not be returned to you and may be destroyed shortly after we process your statement. We will maintain an image of each check for seven years. You can obtain copies of your checks by sending us a written request with the following information: your name, account number, check number, the amount of the check, and (if known) the date the check was paid. There is no charge for the first two items per statement that we copy for you. After that, we will charge your account a fee for each copy (including the front and back of the check). We will not be responsible for any special or consequential damages under any circumstances for our inability to provide copies of checks. Our liability, if any, will not exceed the face amount of the check in question. You agree to provide us with reasonable proof of any loss.
Check Processing Cutoff Hour. If we receive an item for payment on a weekend, a holiday or after 2:00 p.m. on a business day, we may treat it as if we had received it on the next business day. Our processing cutoff hour with respect to any knowledge, notice, stop payment or postdated check order, or legal process received by us involving a check is 10:00 a.m. on the banking day following the banking day on which we receive the check. The cutoff hour with respect to setoffs exercised by us is midnight of the banking day following the banking day we receive a check, or such later time by which we must return the check. The cutoff hour determines our obligation under state law to pay or return certain checks that have been received (but not finally paid) by us on the previous banking day.
Check Signature Verification. We may process certain checks mechanically, based on the information encoded on the items. This means that we may not visually examine each of your checks to determine if they are properly completed and endorsed, and we assume no duty to identify and/or return duplicate checks, checks with duplicate serial numbers, misencoded items, or checks lacking an encoded serial number. Although we may review checks from time to time, you understand that reasonable commercial standards do not require us to do so.
Compliance. You agree not to violate the laws of the United States, including without limitation, the economic sanctions administered by the U.S. Treasury’s Office of Foreign Asset Control. You agree to comply with all applicable laws and you may not use your account or our services for any illegal activity. You agree to indemnify, defend and hold us harmless from every action, proceeding, claim, loss, cost and expense (including attorney’s fees) suffered or incurred by us due to any U.S. or foreign government entity seizing, freezing or otherwise asserting or causing us to assert control over any account or funds in an account of yours (or ours) when purportedly caused by or arising out of your action or inaction. This will apply whether or not such action is ultimately determined to be authorized under the laws of the U.S. or its territories, or of any foreign jurisdiction. We are not required to inquire or determine the authority of any action taken by the U.S. or foreign government entity prior to acceding to any legal process initiated by it.
Conflicting Demands/Disputes. If we believe, in our sole judgment, that following an owner’s instructions might at anytime expose Bank to any claim, suit loss expense or liability, we may request indemnity (or security for it) satisfactory to the Bank before following instructions. If there is any uncertainty or conflicting demands regarding the ownership of an account or its funds, we are unable to determine any person’s authority to give us instructions, we are requested by any governmental agency to freeze the account or reject a transaction due to the suspected financial abuse of an elder or dependent adult, or we believe a transaction may be fraudulent or may violate any law, or receive conflicting demands or inconsistent instructions, we may, at our sole discretion: (1) freeze the account and refuse transactions until we receive written proof (in form and substance satisfactory to us) of each person’s right and authority over the account and its funds; (2) refuse transactions and return checks, marked "Refer to Maker" (or similar language); (3) require the signatures of all authorized signers for the withdrawal of funds, the closing of an account, or any change in the account regardless of the number of authorized signers on the account; (4) request instructions from a court of competent jurisdiction at your expense regarding the account or transaction; and/or (5) continue to honor checks and other instructions given to us by persons who appear as authorized signers according to our records. The existence of the rights set forth above shall not impose an obligation on us to assert such rights or to deny a transaction.
Consent to Gather Information. As authorized signer or account holder of an account, you authorize us to obtain information from time to time regarding your credit history from credit reporting agencies and other third parties. You authorize us to obtain address information from the California Department of Motor Vehicles or any other government agency. As such, you waive your rights under California Vehicle Code §1808.21 (or equivalent).
Death or Adjudication of Incompetence. You agree to notify us immediately of the death or court declared incompetence of any owner, authorized signer or designated beneficiary on your account. We may disregard any notice of incompetence unless the person in question has been declared incompetent by a court of appropriate jurisdiction and we receive written notice and instructions from the court regarding the account. We also may freeze, offset, refuse and/or reverse deposits and transactions (e.g., governmental or retirement benefit payments payable to the deceased) if an owner dies or is adjudicated incompetent.
If your account ownership records indicate that the account is held in "joint tenancy," upon the death of any owner, the deceased owner’s share passes automatically to the surviving owner(s) unless there is clear and convincing evidence of a different intent on the signature card. If the account is held as "tenants in common," a deceased owner’s share passes to the estate or other legal representative of the deceased tenant. If the account is held by a husband and wife as "community property," ownership of the account will be determined by community property law and may be affected by a will. "Pay On Death" and Totten Trust ("In trust for") accounts pass automatically (and in equal shares unless otherwise indicated in our records) to the named beneficiaries who survive the last surviving owner.
After the death of an owner of an account (or in the case of a joint account, any owner) we may retain the funds in the account unless and until the Bank is satisfied that it may do otherwise without incurring liability or potential liability (including liability or potential liability for estate taxes).
Deposit Insurance. Your accounts with us are insured to the regulatory limits by the Federal Deposit Insurance Corporation (FDIC). For further information regarding insurance of accounts, you may write to the FDIC at 550 17th Street, N.W., Washington, D.C. 20429, telephone the FDIC’s toll free consumer hotline at 877-275-3342, or visit its website at www.fdic.gov.
Facsimile Signatures. We may refuse to accept or may pay items bearing facsimile signatures. You agree to assume full responsibility for any and all payments made by us in reliance upon signatures that resemble the actual or facsimile signature(s) that any of you provide to us in connection with your accounts or services. You authorize us to pay any check that appears to bear your authorized facsimile signature, without further inquiry. You agree to indemnify, defend and hold us harmless from any and all actions, claims, losses, damages, liabilities and expenses (including attorney’s fees) arising directly or indirectly from the misuse or the unlawful or unauthorized use or copying of facsimile signatures (whether affixed manually, by stamp, mechanically, electronically or otherwise).
Fax Instructions/Voice Mail/E-Mail. We may, but are not required to, act upon instructions received by fax transmission, voice mail or e-mail. We may not review your message until the business day after its receipt. As such, it may not be appropriate to use these methods of communication if you need to reach us with time-sensitive information.
Financial Statement. You will provide us with a current financial statement upon request.
Governing Law. Except as otherwise provided in this Agreement, the laws of the state where we maintain your account will govern your account and the interpretation of this agreement, and your accounts and services will be subject to applicable clearinghouse, Federal Reserve Bank and correspondent bank rules. You agree that we do not have to notify you of a change in those rules, except to the extent required by law.
Inactive Accounts. An account is considered "inactive" when a depositor has not initiated any credit or debit for one year. Service charges for "inactive accounts" are the same as service charges for active accounts. Charges are not reimbursed for inactive accounts that are later reclassified as "active." We may be required to turn over (escheat) account funds to the state of your last known address if you fail to conduct transactions involving your account or otherwise communicate with us about the account for the period specified by state law. You can prevent this by making a deposit or withdrawal or notifying the Bank in writing that you are aware of the account’s existence. We may consider an account inactive even if you maintain another active account with us, and may escheat funds in the inactive account to the state. We may impose a fee for sending a dormant account notice to you prior to turning the funds over to the state. If funds are remitted to the state, you may file a claim with the state to recover the funds. For security reasons, we may refuse a withdrawal or transfer from accounts we internally classify as dormant if we cannot reach you in a timely fashion to confirm the transaction’s authorization.
Indemnification. Except as otherwise set forth in this Agreement, you agree to indemnify, defend and hold us harmless from all claims, actions, proceedings, fines, costs and expenses (including, without limitation, attorney fees) related to or arising out of: (a) your actions and omissions in connection with your accounts or our services, (b) our actions and omissions, provided that they are taken/omitted in accordance with this Agreement or your instructions, and (c) incurred in connection with any legal proceedings or process (including subpoena) relating to any account. The Bank may apply any funds in your account to the payment of any such costs and expenses and you will be responsible for the balance. The provisions of this paragarph shall survive the termination of this Agreement.
Legal Process. We may comply with any writ of attachment, execution, garnishment, tax levy, restraining order, subpoena, warrant or other legal process which we believe (correctly or otherwise) to be valid and withhold funds in any account affected thereby until such process is annulled or dismissed. We may notify you of such process by telephone, electronically or in writing. If we are not fully reimbursed for our record research, photocopying and handling costs by the party that served the process, we may charge such costs to your account, in addition to our minimum legal process fee. You agree to reimburse us for any cost or expense, including attorney fees, which we incur in responding to legal process related to your accounts.
We may not pay interest on any funds we hold or set aside in response to legal process. You agree that we may honor legal process that is served personally, by mail, or by facsimile transmission at any of our offices (including locations other than where the funds, records or property sought is held), even if the law requires personal delivery at the office where your account or records are maintained. You acknowledge that accounts opened with trust or fiduciary designations (e.g., "XYZ, Inc. -- Client Trust Account") may be subject to levies and other legal process against your property unless our records clearly reflect the existence of an express written trust or court order.
Limitation on Time to Sue. Unless otherwise required by law, an action or proceeding by you to enforce an obligation, duty or right arising under this agreement or by law with respect to your account or any account service must be commenced within one year after the cause of action accrues.
New Account Verification. We may use a third party service to verify and obtain information regarding your previous banking relationships. We may also report the status, history and/or closure of your account to such third party services.
Other Agreements. You may have another agreement with us which, by its terms, supersedes this agreement in whole or in part. For example, if you are a governmental unit or a business customer, certain provisions of your other agreements with us (e.g., involving cash management services) may supersede some of the terms of this agreement, to the extent that they are inconsistent.
Overdrafts. If you do not have sufficient available funds on deposit to cover the amount of a check or other transaction (e.g., in-person withdrawal, ATM withdrawal, automatic payment, or other electronic transaction), we may return the check or reject the transaction without payment without liability, regardless of the frequency by which we may have previously honored such items. Although it is not general policy of the Bank to do so, we may elect, however, in our sole discretion to create an overdraft by paying the check or permitting the transaction. Either way, there will be a service fee for each item or transaction. We also may impose a fee for overdrafts created by fees or deposited items that are returned. In the absence of a separate written overdraft facility agreement providing otherwise, each overdraft created in an account shall bear interest at the Bank’s prevailing rate until the overdraft has been paid.
If we permit an overdraft or otherwise allow your account balance to drop below zero, you agree to pay the amount of the overdraft promptly, without notice or demand from us. You agree that we may use subsequent deposits and other credits to the account, including without limitation deposits of government, welfare, retirement and Social Security benefits, to cover any overdraft existing in your account, to the fullest extent permitted by law.
Each account owner is jointly and severally responsible for paying any overdrafts created by any authorized signer(s) or party to the account, whether or not the owner participates in the transaction or benefits from its proceeds.
Our payment of any checks or allowance of transactions that create overdrafts in no way obligates us to continue that practice at a later time. We may discontinue permitting overdrafts without cause or notice to you. We discourage the practice of overdrawing accounts.
"Pay-on-Death" Accounts. This type of account passes to the designated beneficiaries on the death of an owner (or all of the owners if this is a joint account). During their lifetime, the owner(s) may exercise full control over the account and may make deposits to and withdrawals from the account. Upon the death of the last surviving owner, the account funds pass to the surviving beneficiaries. If there is more than one surviving beneficiary, each will receive an equal share of the funds, unless we have been instructed otherwise by the owner(s) in writing. The owner(s) may change beneficiaries during their lifetimes by updating our account documentation. Owners should keep us informed about each beneficiary’s address.
Photocopies . Checks and other items are sometimes lost during processing or while in transit. If a photocopy of a check or other item that appears to be drawn on your account is presented to us for payment in place of the original, we may pay the photocopy if it is accompanied by a representation from another financial institution that the original item has been lost or destroyed. We will not incur any liability in the event the original item is later presented to and paid by us, unless a stop payment order is in effect for the check.
Postdated Checks. Unless you provide your branch of account with a written postdated check notice that describes a postdated check with reasonable certainty, we may pay or return the check at our discretion. Your notice must include the exact amount (dollars and cents), account number, check number, date of check and the name of payee. If you provide us with a postdated check notice in a time and in a manner which affords us a reasonable opportunity to act on it, we will not pay the item and may return it (marked "payment stopped", "postdated" or otherwise) if it is presented to us prior to the date indicated in the order (up to six months from the date of the notice). After six months, a notice is no longer effective and must be renewed. We may impose a fee for each notice. If we re-credit your account after paying a postdated check over a valid and timely postdated check notice, you agree to transfer to us all of your related rights against the payee or other holder of the check, and to assist us in legal action taken against that person.
Power of Attorney. Any owner may provide us with a power of attorney. You should notify us in advance if you plan to create a power of attorney involving your account. Upon request, we may provide you with a power of attorney form for that purpose. We generally will accept an irrevocable Uniform Statutory Form Power of Attorney that complies with applicable state law. We may refuse to accept forms of powers of attorney, however, with or without cause.
We may act on the instructions of an attorney in fact whether or not the attorney in fact relationship is noted in the instruction (e.g., on any check signed by the attorney in fact). You can revoke your power of attorney by sending a written notice to us at your branch of account. We assume no duty to monitor the actions of your attorney-in-fact to ensure that (s)he acts for your benefit.
Remotely Created Checks and Demand Drafts. If you provide your account number to a third party in order to charge your account by means of one or more remotely created checks or demand drafts (i.e., items which do not bear your actual signature, but purport to be drawn with your authorization), you authorize us to pay such items, even though they do not contain your signature and may exceed the amount you authorized to be charged. This provision shall not obligate us to honor such items. We may refuse to honor such items without cause or prior notice, even if we have honored similar items previously.
You may not deposit remotely created checks or demand drafts to an account with us without our prior, express written consent. You agree to indemnify, defend and hold us harmless from every loss, expense and liability related to a claim that such items were not authorized (e.g., as to their amount and payee) by the persons on whose accounts the items were drawn.
If you deposit remotely created checks or demand drafts with us, you agree that we may withhold a portion of the proceeds of such items or other funds in your account in a reserve account, in an amount that we reasonably believe may be needed to cover future chargebacks, returned items, and/or claims that such items were unauthorized. You grant us a security interest in the reserve account. Unless we agree otherwise in writing with you, reserve funds shall not bear interest. Our right to charge your account for returned items will not be limited by the balance or existence of any reserve. Our rights with respect to the reserve, as well as the security interest granted to us, shall survive the termination of this agreement. We may discontinue accepting remotely created checks and demand drafts at any time without cause or prior notice.
Returned Items/Transactions. If we are notified that an item you cashed or deposited is being returned unpaid, we may attempt to reclear the item, place a hold on the funds in question (see "Funds Availability") or charge your account for the amount (and any interest earned on it), whether or not the return or notice of non-payment is proper or timely. This also applies to checks drawn on us which are not paid for any reason, and to checks that are returned to us in accordance with any law, regulation or rule (including a clearinghouse rule). We may assess a fee for each returned item and notify you of the return orally, electronically, or in writing.
If we receive an affidavit or a declaration under penalty of perjury stating that an endorsement on an item deposited to your account is forged, that the item contains an alteration, or that there has been a breach of warranty in connection with the item, we may charge the item back against your account or place a hold on the funds pending an investigation, without prior notice to you.
Security Interest. You grant us a security interest in your account for amounts owing to us under this Agreement by any owner. This provision does not apply to IRA or tax-qualified retirement accounts or where otherwise prohibited by law.
Setoff. We may charge or set off against funds in your account for any direct, indirect and/or acquired obligations (whether now existing or hereafter arising, direct or contingent, matured or unmatured, joint or several) that any owner owes us, regardless of the source of the funds in the account, to the fullest extent permitted by law. This provision does not apply to IRA or tax-qualified retirement accounts, to consumer credit card obligations, or where otherwise prohibited by law.
Severability. If any of the provisions of this agreement are determined to be void or invalid, the remainder of the agreement shall remain in full force and effect.
Stale Dated Checks. You agree that we may pay or reject a check which is presented to us for payment more than six months after its date (a "stale dated" check), even if the presentation occurs after the expiration of a stop payment order. We normally do not examine the date on checks presented for payment. You agree that we are not required to identify stale dated checks or to seek your permission to pay them.
Statements, Notices and Checks. If we provide you with a notice or statement, electronically or otherwise, you must promptly and carefully review it to determine if any errors or problems exist. You agree to notify us immediately of any error, discrepancy or unauthorized transaction you discover on any statement, notice or check. If you fail to do so, you may become responsible for the losses resulting from such failure. If you are a business, you agree not to entrust the writing of checks and the reconcilement and review of your account statements and notices to the same person without frequent monitoring. We may deny a claim for monetary loss due to forged, altered or unauthorized checks if you fail to follow these procedures.
Statements are normally sent to the last address listed with us for your account. If you ask us to hold statements and notices for you, we may mail them to you or destroy them if they are not picked up within 30 days. Notify us promptly if you do not receive your statement by the date you normally would expect to receive it.
Statements and notices sent or made available to any of you are deemed to be received by all of you. If we hold them at your request or because you fail to provide us with a current address, they will be deemed delivered to you when they are prepared (for held statements), mailed (for returned mail) or otherwise made available to you. We may hold statements if the Post Office notifies us that your mail is undeliverable. At our discretion, we may destroy mail that is returned to us or determined to be undeliverable.
You must mail or deliver all notices to us in writing at the branch(es) where you maintain your account(s), at the address indicated on your statement, or at such other address(es) as we designate (e.g., in connection with cash management services). Notices sent elsewhere may be delayed or may not reach the correct office.
Stop Payment Orders. Any owner or authorized signer on your account may request us to stop payment on a check or transaction. Your stop payment order must include the following information: account number, check number, exact amount (dollars and cents), check or transaction date and the name of the payee. We will not be liable for paying a check or transaction over a stop payment order if the order is incomplete or incorrect. We must receive stop payment orders during regular banking hours at a time and in a manner which affords us a reasonable opportunity to act upon them.
There is a per check/transaction charge for each stop payment order. Stop payment orders shall be kept in force for six months. After that time, the check may be paid and charged to your account unless you renew the stop payment order for an additional fee.
We prefer written stop payment orders signed by you or stop payment orders made through Online/Internet Banking at www.narabank.com. We are not required to accept oral stop payment orders. If we elect to act upon an oral stop payment order, upon request, you must confirm the order in writing and deliver it to us. If you fail to do so within 14 calendar days, we may release the stop payment. Our records will be conclusive evidence of the existence, details of, and our decision regarding any oral stop payment order or its revocation.
The rules set forth above also apply to Nara Bank Money Orders.
You may not stop payment on point-of-sale Debit Card transactions, cashier’s checks, or checks or payments guaranteed by us. Under certain circumstances, however, you may be able to claim a refund on lost, stolen or destroyed cashier’s checks 90 days following the date of their issuance. Please note that electronic stop payment requests (through our Online/Internet Banking service) may not be effective in stopping the payment of checks that have been posted to, but not finally paid from, your account on the preceding day. In order to prevent those checks from being paid, you must contact one of our customer representatives in person, by telephone or in writing within one hour after we open on the day following the day we post the items to your account. You also should contact a representative if you wish to stop the payment of a check that has been converted to an electronic transaction by a merchant.
Subaccounts. For regulatory reporting and reserve purposes, we divide checking accounts into two subaccounts: a checking subaccount and money market subaccount. If your checking account earns interest, we will pay the same interest rate on both subaccounts. If it does not earn interest, no interest will be paid on either subaccount. In either case, your account will continue to operate, from your perspective, as one account.
We may establish a threshold for the balance maintained in the checking subaccount and may transfer funds periodically from one subaccount to the other to meet that threshold and cover transactions against your account. Your account statements will not reflect the existence of the subaccounts, and our periodic reallocation of funds between subaccounts will not affect your ability to withdraw funds, the interest rate (if any), fees, or other features of your checking account. You agree that we may treat the subaccounts as one and the same account if we receive a levy, subpoena or other legal process regarding either subaccount or your checking account.
Telephone and Electronic Communication Monitoring/Recording. We may monitor and record telephone conversations and electronic communications for quality and control purposes without prior notice to you. We usually do not record conversations without notice to you.
Telephone Banking Service. You can obtain information about your account by calling 213-383-8111 or 888-811-NARA (6272) (if you are calling from outside of Los Angeles County). The types of information provided, service hours and other features may change from time to time without notice. Please note that balance information may not reflect recent transactions, and may include funds that are not available for immediate withdrawal. We assume no responsibility if our telephone information service becomes unavailable for any reason.
Except for calls made through our Telephone Banking Service, we reserve the right to accept or reject telephonic instructions from you in connection with your account. Our understanding of instructions and our records shall be conclusive evidence of the actual instructions given. We are not required to accept instructions or permit withdrawals by telephone outside our Telephone Banking Service, and this does not constitute an agreement by us to do so. Please note that telephone transactions involving Savings and Money Market Accounts are subject to transaction limitations (See "Money Market and Savings Accounts" under "Account Limitations").
Termination/Closing Your Account. Subject to limitations applicable under state law to a New Jersey Consumer Checking Account, any authorized signer(s) may close your account at any time, with or without cause. We are not required to provide notice of such closure to the other authorized signers on the account. We may automatically close your account if the account balance is zero.
We may terminate your account relationship with us at any time, with or without cause, by giving oral, electronic or written notice to any of you. If the funds are not withdrawn, we may send a check for the collected account balance to any of you at the last address we have on file for the account. Thereafter, the funds will stop earning interest (even if the check is returned or remains uncashed for any reason).
We may impose a charge on certain accounts if they are closed within the first 90 days (See our Truth in Savings Account Disclosure).
We may dishonor any check, item or transaction presented for payment after an account is closed. At our sole discretion, we may honor checks, items and orders presented or occurring after an account is closed if the transaction is guaranteed by us to third parties (e.g., under a check guarantee or as part of an electronic fund transfer arrangement) or you fail to give us a timely stop payment order for any outstanding checks. You remain responsible for such items and transactions, which may be treated as overdrafts.
Transfers/Assignments. Unless otherwise agreed by us in writing, all accounts are non transferable and non negotiable. You may not grant, transfer or assign any of your rights to an account without our prior written consent. We are not required to accept or recognize an attempted assignment of your account or any interest in it, including a notice of security interest.
Unauthorized Transactions and Errors. If you discover an error, check forgery, alteration or other unauthorized activity involving your account, you must notify us immediately by telephone, and promptly notify your branch of account in writing of the relevant facts, including a description of the transaction or error and the identity of any suspected perpetrator. You agree to maintain a current check register and to carefully and promptly review all statements and notices we send to you. If you elect not to receive copies of your paid checks, your statements will be deemed to provide sufficient information about your checks and other transactions for you to determine whether there was an error or unauthorized transaction if the statements provide you with the check or transaction number, amount, and date of payment.
You are in the best position to discover and report any errors or unauthorized transactions involving your account. If you fail to notify us within a reasonable time (not exceeding 21 days after your statement date) of an unauthorized signature, alteration, forgery, counterfeit check, or other unauthorized debit to your account, we will not be responsible for subsequent unauthorized transactions by the same wrongdoer if we act in good faith.
Without regard to care or lack of care of either you or us, if you do not discover and report an error or an unauthorized signature, alteration, forgery, counterfeit check, or other unauthorized debit to your account within 60 days after the date of your statement or the date the information about the item or transaction is made available to you, whichever is earlier, you are precluded from asserting the error or unauthorized transaction against us. (Note: Different notification and liability rules apply to certain electronic fund transfers. See the "Electronic Fund Transfers" section.)
If you claim a credit or refund because of an error or unauthorized transaction, you agree to provide us with a declaration containing whatever reasonable information we require regarding your account, the transaction, and the circumstances surrounding the claimed loss. We must receive your declaration within 10 days of our request. If applicable, you also agree to make a report to the police and to provide us with a copy of the report, upon request. We will have a reasonable period of time to investigate the circumstances surrounding any claimed loss. During our investigation, we will have no obligation to provisionally credit your account, unless otherwise required by law (e.g., in connection with certain consumer electronic fund transfer services).
Unless otherwise required by law, our maximum liability will never exceed the amount of actual damages proven by you. Our liability will be reduced: (a) by the amount of the loss that is caused by your own negligence or lack of care; (b) to the extent that damages could not have been avoided by our exercise of ordinary care; and (c) by any loss recovery that you obtain from third parties (apportioned in accordance with this provision). We will not be liable for any loss that is caused in part by your negligence if we acted with ordinary care. Unless otherwise required by law, we will not be liable for incidental, special or consequential damages, including loss of profits and/or opportunity, or for attorney’s fees incurred by you, even if we were aware of the possibility of such damages.
You agree to pursue all rights you may have under any insurance policy you maintain in connection with any loss associated with your account and to provide us with information regarding coverage. Our liability will be reduced, proportionately in accordance with our responsibility for any loss, by the amount of any insurance proceeds you receive or are entitled to receive for the loss. If we reimburse you for a loss and the loss is covered by insurance, you agree to assign us your rights under the insurance policy to the extent of our reimbursement, in accordance with this provision.
(Note: Different notice and liability rules apply to certain electronic fund transfers. See the "Electronic Fund Transfers" section.)
Uniform Transfers to Minors Act Accounts. A person (called a "custodian") may open an account under the provisions of state law dealing with transfers or gifts to minors. Although the custodian controls the account, the minor is deemed its owner.
Waivers. We may delay enforcing our rights under this agreement without losing them. Any waiver by us shall not be deemed a waiver of other rights or of the same right at another time. You waive diligence, demand, presentment, protest and notice of every kind, except as set forth in this agreement.
WITHHOLDING OF INCOME TAX
Unless you are exempt under federal law, we are required to withhold a portion of your taxable interest and certain other payments (this is referred to as backup withholding) if: (1) you fail to supply us, under penalties of perjury, with your correct taxpayer identification number (TIN); (2) you fail to provide us with the required certified information; (3) the IRS instructs us to withhold; or (4) the IRS notifies you that you are subject to backup withholding. You must provide your TIN whether or not you are required to file a tax return. You also must certify that you are not subject to backup withholding.
We may report interest and other payments to you to the Internal Revenue Service (IRS), along with your TIN.
We may refuse to open, and we may close, any account for which you do not provide a certified TIN, even if you are exempt from backup withholding and information reporting. To avoid possible erroneous backup withholding, an exempt payee should furnish its TIN and indicate on the signature card that it is exempt.
A non resident alien or foreign entity not subject to information reporting must certify its exempt status by completing an appropriate IRS certification form (e.g., W-8 BEN). Non resident aliens may be required to certify their exempt status every three years (or earlier upon request) to avoid backup withholding.
You may be subject to civil and criminal penalties if you fail to provide us with a correct TIN or falsify information with respect to withholding. For additional information on interest reporting and withholding, contact your tax advisor or the IRS.
QUESTIONS OR COMMENTS
If you have any questions or comments, you call us in California at 213-639-1700 and in New York and New Jersey at 212-268-4111. You can also call our toll free number 888-811-NARA (6272) (for calls outside Los Angeles County regardless of whether you are in-state or out-of-state). You also can write to us at: 3731 Wilshire Boulevard, Suite 1000, Los Angeles, California 90010.
Note: The fees, rates and benefits described in this booklet and in our Truth in Savings Account Disclosure were current as of the date of publication, but are subject to change. You can obtain current information by calling us at one of the numbers shown above. Prices listed are subject to sales tax wherever applicable.
All applicants must be a U.S. Citizen or Resident alien residing in California, New York, or New Jersey and must be at least 18 years of age.
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