Deposit Agreement

Thank you for your interest in an account with East West Bank. This Agreement, Signature Card you sign, Annual Percentage Yield and Account Terms Disclosure, and evidence of account (if applicable) contain the rules, terms and conditions that govern your deposit account with us.

Please read this Agreement carefully and keep it for your records. Our staff is committed to continuing its tradition of being a good neighbor and community leader through friendly, sincere and efficient service and participation in community affairs. Should you have any questions, please refer them to one of our branch representatives or a branch manager.

NOTE:

• Used in this Agreement, the words “we”, “us”, “our” or “the Bank” mean East West Bank, and the words “you”/“your” mean the owners and authorized signers on the account. The words “authorized signer(s)” refer to the person(s) authorized to sign checks and/or give us instructions regarding your account, including account holder(s), authorized signer(s), attorney(s)-in-fact, and any other agent(s) of yours. The word “signature card” includes any signature card or new account application (including an electronic application) signed and/or completed by you and recorded on the records of East West Bank; the word “account” means any account issued by and recorded on the records of East West Bank; the word “service” means any account-related service offered by and recorded on the records of East West Bank; and the word “card” or “ATM/Visa Check Card” means any ATM Card or Visa Check Card issued by East West Bank, including any additional cards or renewals.
• The headings in this Agreement are for convenience only and are not part of these rules, terms and conditions.

 

ABOUT THE AGREEMENT

When you open an account with us or subscribe to one of our services, you (and all other authorized signers, designated agents, and the person or entity you represent if you sign as a representative of another) agree to and are bound by the rules, terms, and conditions described in this Agreement, and all other documents you sign or receive in connection with the account or service. You agree to pay any applicable fees, including all taxes, tariffs and assessments levied or imposed by any government agency in connection with your account or account-related services (excluding any income tax payable by us), and you give us the right to collect the fees, as incurred by you, directly from the account balance. You also agree to pay such additional reasonable charges we may impose for services you request which are not contemplated by this Agreement.

We may add to, delete or change these rules, terms, and conditions by either giving notice to any of you personally or sending a notice to any of you at the last address (location or e-mail) shown on our records. Unless otherwise required by law, we may amend this Agreement without prior notice (e.g., by posting the information in our offices, on our website, or otherwise making it available to you). You may choose to accept or decline these amendments by continuing or discontinuing the account(s) or the service(s) to which these changes relate. Continued use of your account or service with us after the effective date of a change will be further evidence of your agreement to the change.

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., reduction of fee or addition of a service).

Unless otherwise provided in this Agreement, we may comply with applicable clearinghouse, Federal Reserve Bank and correspondent bank rules in processing transactions. You agree that we may act in accordance with those rules and that we do not have to notify you of a change in such rules, except to the extent required by law.

We reserve the right to waive the enforcement of any of these rules, terms or conditions. We also reserve the option to waive, reduce or reverse charges or fees. Any waiver or reversal will only apply to that specific instance and not to future situations or other provisions, regardless of how similar they may be, and is not sufficient to modify the terms and conditions of this Agreement. You waive diligence, demand, presentment, protest and notice of every kind, except as set forth in this Agreement.

Either East West Bank or you may terminate this contractual Agreement, upon written notice. Termination does not release you from the payment of outstanding obligations (including accrued fees, overdraft balances, penalties, indemnity obligations or the liability for checks in process) or for obligations that arise after the account is closed, such as from a deposited check that is returned.

NOTE:

• THIS AGREEMENT CONTAINS THE TERMS OF OUR DISPUTE RESOLUTION PROGRAM. THE TERMS OF THE PROGRAM ARE CONTAINED IN THE SECTION ENTITLED “DISPUTE RESOLUTION.” PLEASE READ THEM CAREFULLY.

 

FDIC INSURANCE

East West Bank is considered a “single” insured bank for FDIC insurance coverage purposes. You acknowledge and understand that any account(s) in the United States that you open at East West Bank will be, for FDIC insurance purposes, considered together with any account(s) you currently have or will open at East West Bank. Your deposits are insured up to an aggregate of at least $250,000 by the Federal Deposit Insurance Corporation (FDIC). To find out more about FDIC insurance, please refer to one of our informational brochures, available at our branch locations. You may contact the FDIC directly at 550 17th Street NW, Washington, D.C. 20429, or by calling its tollfree consumer hotline at (877) ASK–FDIC or visiting their website at www.FDIC.gov

 

CURRENCY TRANSACTION REPORTS (“CTRS”)

The following information is designed to help you understand the requirements of the Federal law governing the reporting of certain large currency transactions.

Why does the Bank ask you for identification and personal information? Federal law requires financial institutions to report currency (cash or coin) transactions over $10,000 conducted by, or on behalf of, one person, as well as multiple currency transactions that aggregate to be over $10,000 in a single day. These transactions are reported on Currency Transaction Reports (“CTRs”). The federal law requiring these reports was passed to safeguard the financial industry from threats posed by money laundering and other financial crimes. To comply with this law, financial institutions must obtain personal identification information about the individual conducting the transaction such as Social Security number as well as driver’s license or other government-issued document. This requirement applies whether the individual conducting the transaction has an account relationship with the institution or not.

There is no general prohibition against handling large amounts of currency and the filing of a CTR is required regardless of the reasons for the currency transaction. The Bank collects this information in a manner consistent with your right to financial privacy.

If you have further questions, please contact FinCEN’s Regulatory Helpline at (800) 949–2732.

 

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT

To help the government fight the funding of terrorism and money-laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.

What this means to you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

 

SIGNATURE CARD AND AUTHORIZED SIGNERS

The account signature card gives important information about your account, such as the ownership, identification, and customer contact information. For your protection, please make sure the information provided on your signature card is accurate.

At our discretion, you agree to provide us with information and documentation satisfactory to us, to identify all authorized signers and, if applicable, the organization or business. You may indicate the number of required authorized signers for an account on the signature card, and any of the authorized signers, without notice to the other authorized signers, may sign checks, make withdrawals, transfer funds, close the account, endorse for deposit to this account checks that are payable to any of you, authorize, amend or cancel Automated Clearing House entries and any other types of electronic funds transfers, initiate stop payment orders, or give us instructions and/or changes regarding the account.

Massachusetts Accounts Only

• By signing a signature card, you authorize the Bank to honor all instructions given by the account holders or authorized signers, except that for a joint account, no access device may be issued to any account holder until all joint account holders have signed the initial request for such an access device.

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 for your own purposes. We do not assume a duty to support multiple signature requirements. As such, we assume no duty to confirm that two or more (or any combination) of the 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 signer. Although we may attempt on occasion to enforce the multiple signature requirements shown on your card (e.g., by refusing to permit a transaction authorized by less than the stated number of authorized signers), we may cease doing so at any time and without prior notice to you.

We have no duty to question withdrawals or the application of funds. We may, but are not obligated to, honor checks and other instructions where the authorized signer’s name and/or signature is written in characters or otherwise not in English.

If a dispute or question arises (whether by us, you or a third party) over any person’s authority to give us instructions concerning the account, we may choose to handle the situation according to the terms described in this Agreement. (See Disputes, under the Additional Terms and Conditions section, for additional information.)

You agree to notify us immediately, in writing, if you change your business capacity (e.g., sole proprietor to corporation) or the authorized signers on your account. Unless you notify us in writing, we may continue to honor checks, withdrawals, and instructions by previously authorized signers.

NOTE:

• A new or updated signature card, by itself, does not constitute such notice, nor does it constitute notice to terminate any pre-existing payment or transfer plan.

In some instances, we may require a new signature card and/or for 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 signers on our records, and you agree that we will be given a reasonable opportunity to make the necessary changes. (See Transfer of Ownership, under the Account Ownership section, for additional information.)

 

ACCOUNT OWNERSHIP

This section describes some of the ways that title can be held to an account. You must clearly indicate on your signature card the exact account ownership you desire for your account. The type of account ownership you select may determine how the property is passed on after the death of one or more of the account owners. You may wish to consult with an attorney and/or tax advisor before deciding which form of account ownership is best for you. Specific account ownership types may be prohibited from establishing certain types of accounts. We may rely solely on our account records to determine the ownership of your account.

California, Georgia, Massachusetts, Nevada, Washington Accounts

Individual Accounts – If you open an account with yourself as an “individual” account owner, you will have a sole ownership interest in the account during your lifetime.

Joint Tenancy Accounts – If you open an account with others in “joint tenancy,” each owner will have an equal ownership interest in the account during his or her lifetime. If one joint tenant dies, ownership of the account will automatically pass to the surviving joint tenant(s). Unless you designate a particular form of vesting on the signature card, we will assume that personal accounts opened by two or more natural persons are intended to be joint accounts with rights of survivorship

• Washington Accounts Only
  Joint Account without Right of Survivorship – If you open an account with others in “joint tenancy without right of survivorship,” each owner will have an equal ownership interest in the account during his or her lifetime. If one joint tenant dies, the ownership interest of that person will automatically pass to the named payable-on-death payee(s) of that person or, if none, to the estate of that person. In other words, there is no right of survivorship on this account.

Tenants in Common Accounts – If your account is opened with others as “tenants in common,” each owner will have some interest in the account, but not necessarily an equal interest. When an owner dies, his or her share does not pass automatically to the surviving owner(s). Instead, it goes to the estate or other legal successor of the deceased owner. We may hold the funds in a tenants in common account and refuse transactions until the surviving account owner(s) and the personal representative or heirs of the deceased owner agree on the account’s disposition. We may refuse to freeze the account, however, until we receive a death certificate or other proof, satisfactory to us, of an account owner’s death.

Community Property Accounts – If you and your spouse reside in a community property state and open a “community property” account, each of you will have an equal interest in the account. The community property ownership vesting must be clearly stated on the signature card; otherwise, the account will be considered a joint tenancy account. If one of you dies, one-half of the account will belong to the surviving spouse; the deceased spouse’s share of the account will go to his or her estate and may be effected by a will. We may hold one-half of the funds on deposit in a community property account and refuse transactions as to those funds until the surviving spouse and the personal representative or heirs of the deceased spouse agree on the account’s disposition. We may refuse to freeze the account, however, until we receive a death certificate or other proof, satisfactory to us, of a spouse’s death.

“In Trust” Accounts – If you open an account “in trust” or “as trustee for” someone else (e.g., your child) and there is no trust document (what is often referred to as a “totten trust” or “payable-on-death” account), the account will pass to the beneficiary upon the death of the last surviving account owner. If there is more than one beneficiary, each will receive an equal share of the funds unless you have given us other specific written instructions. During your lifetime, you may exercise full control over the account and may make deposits to and withdrawals from the account. The death of the beneficiary, prior to your death, revokes the trust. You can arrange to change the beneficiary during your lifetime by contacting your branch of account.

Massachusetts Accounts Only: 18–65 Accounts – Pursuant to Massachusetts law, residents of Massachusetts who are 65 years of age or older or 18 years of age or younger and otherwise meet the Bank’s requirements for opening an account, qualify to have one checking account and/or one savings account under the Massachusetts 18–65 rule.

For joint accounts, each account holder must meet the 18–65 requirements except (1) the spouse of an eligible account holder, or (2) an adult cosigner on a minor’s account. You can ask for the 18–65 status for an existing account or a new account.

If your account is established with 18–65 status, you will not be required to pay fees for the following services:

• Monthly account maintenance;
• Basic checks imprinted with your name;
• Check writing (no limits);
• Withdrawals in the form of cashier’s checks or money orders;
• Wire transfers;
• Stop payment orders;
• Returned third-party checks cashed against or deposited to your account

We may assess a non-sufficient funds fee for each check or transaction presented for payment if your account does not have sufficient funds, whether or not we pay the check. The Bank may charge you for optional services that are not part of your account, such as traveler’s checks or custom-printed checks. You should check your bank statements each month to ensure that we are not charging you any extra fees, and notify us promptly if you find any discrepancies. If you are eligible for 18-65 status it is your responsibility to notify us. We are not liable for any fees assessed to your account prior to notification.

Upon your request we will provide you, without charge, up to 10 paid check copies (front and back) per calendar year. If a request is made by an account holder who is legally blind, we will make accommodations to provide additional cancelled checks or other information thereon as is possible.

New York Accounts

Individual Accounts – If you open an account with yourself as an “individual” account owner, you will have a sole ownership interest in the account during your lifetime.

Joint Tenancy Accounts – If you open an account (e.g., make a deposit of cash, securities or other property) in your name and the name of another person or persons and in a form to be paid or delivered to any or the survivor of them, it will be considered a “joint account.” The owner of a joint account refers to the depositor and any other person or persons named on the account. With respect to any joint account, the following rules apply: (1) the deposit, and any additions thereto, shall become the property of each owner as joint tenants and, as such, the Bank may release the entire account to any owner during the lifetime of all owners; (2) the Bank may honor checks or orders drawn by, or withdrawal requests from, any owner during the lifetime of all owners; (3) the Bank may be required by service of legal process to remit funds held in the joint account to satisfy a judgment entered against, or other valid debit incurred by, any owner of the account; (4) the Bank may honor checks or orders drawn by, or withdrawal requests from, the survivor(s) after the death of any owner(s); (5) the Bank may treat the account as the sole property of the survivor(s) after the death of any owner(s); and (6) unless the Bank receives written notice signed by any owner not to pay or deliver any joint deposit, or addition or accrual thereon, the Bank shall not be liable to any owner for continuing to honor checks or other orders drawn by, or withdrawal requests from, any owner, and after the receipt of such notice, the Bank may require the written authorization of any or all joint owners for any further payments or deliveries.

Tenants in Common Accounts – If your account is opened with others as “tenants in common,” while each owner is living, any one of them may withdraw part or all of the funds in the account without the signature of any other owner. However, this account is different from a “joint account,” in that when an owner dies, the ownership interest of that person will automatically pass to the named payable-on-death payee(s) of that person or, if none, to the estate of that person. In other words, there is no right of survivorship on this account.

Joint accounts and tenants in common accounts all have the following characteristics in common. Each person named in the account, without the consent of any other account holder, may (and hereby is authorized by every other person named on the account to) make any transaction permitted under this Agreement, including, without limitations: (1) to withdraw all or any part of the account funds; (2) to pledge the account funds as collateral to us for any obligation, whether that of one or more account holders or of a third party; (3) to endorse and deposit checks and other items payable to any joint account holder; (4) to give stop payment orders on any check or item, whether drawn by that account holder or not; and (5) to close the account, with the disbursement of account proceeds as instructed by the person closing the account. Each joint account holder is authorized to act for the other account holder(s) and we may accept orders and instructions regarding the account from any joint account holder. If we believe there to be a dispute between joint account holders or we receive inconsistent instructions from the account holders, we may suspend or close the account, require a court order to act, and/or require that all joint account holders agree in writing to any transaction concerning the account.

Your obligations under this Agreement are joint and several. This means that each joint account holder is fully and personally obligated under the terms of this Agreement, including liability for overdrafts and debit balances as set forth above, irrespective of which joint account holder benefited from the withdrawal. If you establish a joint account without the signature of the other joint account holder(s), you agree to hold us harmless for our reliance upon your designation of the other joint account holder(s) listed on our documents. Further, the account is subject to the Bank’s right of set-off.

“Totten Trust” Accounts – A “totten trust” is an informal trust account, reflected on our records, but without a written trust agreement, where the account is owned by the trustee. The beneficiaries have no right to any funds in the account during the trustee’s lifetime. As the owner of the account, the trustee may withdraw money from the account and may, by written direction to us, change the beneficiary under the account. Unless the trustee expressly revokes, terminates, or modifies the trust account in the trustee’s will, then when the trustee dies, the account will be owned by the named beneficiary or beneficiaries. If the totten trust account is held by more than one trustee, the trustees will be subject to the rules pertaining to joint account ownership as set forth in this Agreement. If there is no surviving beneficiary upon the death of the last trustee, state law will determine ownership of the funds in the account.

Texas Accounts

Texas Uniform Single- or Multiple-Party Account Selection Notice – Your designation of one of the following account types on your signature card establishes the type of your account under Chapter XI of the Texas Probate Code:

• Single-Party Account without a P.O.D. (payable on death) Designation: The party to the account owns the account. On the death of the party, ownership of the account passes as part of the party’s estate under the party’s will or by intestacy.
• Single-Party Account with a P.O.D. (payable on death) Designation: The party to the account owns the account. On the death of the party, ownership of the account passes to the P.O.D. beneficiaries of the account. The account is not part of the party’s estate.
• Multiple-Party Account without Right of Survivorship: The Parties to the account own the account in proportion to the parties’ net contributions to the account. We may pay any sum in the account to a party at any time. On the death of a party, the party’s ownership of the account passes as a part of the party’s estate under the party’s will or by intestacy.
• Multiple-Party Account with Right of Survivorship: The parties to the account own the account in proportion to the parties’ net contributions to the account. We may pay any sum in the account to any party at any time. On the death of a party, the party’s ownership of the account passes to the surviving parties.
• Multiple-Party Account with Right of Survivorship & P.O.D. (payable on death) Designation: The parties to the account own the account in proportion to the parties’ net contributions to the account. We may pay any sum in the account to any party at any time. On the death of the last surviving party, the ownership of the account passes to the P.O.D. beneficiary(ies).
• Convenience Account: The parties to the account own the account. One or more convenience signers to the account may make account transactions for a party. A convenience signer does not own the account. On the death of the last surviving party, ownership of the account passes as a part of the last surviving party’s estate under the last surviving party’s will or by intestacy. We may pay funds in the account to a convenience signer before we receive notice of the death of the last surviving party. The payment to a convenience signer does not affect the parties’ ownership of the account
• Trust Accounts (Totten Trust/Payable-on-Death/Informal Trust): The parties named as trustees to the account own the account in the proportion to the parties’ net contributions to the account. A trustee may withdraw funds from the account. A beneficiary may not withdraw funds from the account before all trustees are deceased. On the death of the last surviving trustee, the ownership of the account passes to the beneficiary(ies). The trust account is not a part of the trustee’s estate and does not pass under the trustee’s will or by intestacy, unless the trustee survives all of the beneficiaries and all other trustees.

Community Property Accounts – If you and your spouse reside in a community property state and open a “community property” account, each of you will have an equal interest in the account. The community property ownership vesting must be clearly stated on the signature card; otherwise, the account will be considered a joint tenancy account. If one of you dies, one-half of the account will belong to the surviving spouse; the deceased spouse’s share of the account will go to his or her estate and may be effected by a will. We may hold one-half of the funds on deposit in a community property account and refuse transactions as to those funds until the surviving spouse and the personal representative or heirs of the deceased spouse agree on the account’s disposition. We may refuse to freeze the account, however, until we receive a death certificate or other proof, satisfactory to us, of a spouse’s death.

Special Reporting Obligations for Texas Business Account Customers – Texas Finance Code Chapter 277 provides that Texas business deposit customers must provide certain information to us when opening their accounts. For purposes of this Agreement, you are a “Texas business deposit customer” if you maintain a business deposit account with us in Texas and you are a “business” as defined in Texas Finance Code ¨ 277.001(1), which includes a sole proprietorship, partnership, corporation, or any other legal entity formed for the purpose of making a profit. This law also provides that we must request that the Texas business deposit customer provide us with updated information at least annually.

By opening and maintaining a business account with us in Texas, you agree to provide us any updated information as required by Texas Finance Code Chapter 277 (described below) no later than December 31st of each year during which you maintain your account with us. You do not need to make any annual report if the information you previously provided has not changed during the preceding year. You only need to make the report required by Chapter 277 if there have been any changes in the information described below during the preceding year.

If your business is a sole proprietorship, we are required by Chapter 277 to request that you provide updated information for the following data:

• Business owner’s name
• Physical address of the business
• Business owner’s home address
• Business owner’s driver’s license number or Department of Public Safety personal identification card number

If your business is a corporation, partnership, limited partnership, or limited liability company, we are required by Chapter 277 to request that you provide updated copies of the business’s certificate of incorporation, partnership agreement, certificate of limited partnership or articles of organization, as appropriate. If such business has adopted an assumed name, we are required by Chapter 277 to request that you provide a copy of the assumed name certificate.

Please include the title of the account and account number with any information updates.

Please Send Information Updates To:

East West Bank
9300 Flair Drive, 4th Floor
El Monte, CA 91731
Customer Service Center at 1.888.895.5650.

Other Account Types

Documented Trust Accounts – If you establish an account in connection with a written trust you certify that: (1) you are the only current trustee(s) of the trust; (2) you are authorized to enter into this and other agreements with us in connection with the trust; (3) no other person’s authorization or court order is required for the actions you take and/or the instructions you give in connection with the account; and (4) the correct name of the trust is reflected on the signature card for the account. You agree to provide us with reasonable advance notice of any amendments made to the trust, any change in trustees or beneficiaries, and any other event that might affect any right, duty or authorization of any person (including us) with respect to the trust account.

Upon our request, you agree to provide us with a written and notarized trust certification, or any other documentation we may require, pertaining to the account. We will not be required to know, understand, interpret or enforce the terms of any trust documentation that may be provided to us.

Uniform Transfers to Minors Act Accounts – If you have established an account as a custodian for a minor beneficiary under an applicable state version of the Uniform Transfers to Minors Act or the Uniform Gifts to Minors Act, your rights and duties are governed by that Act. This account and any funds deposited to it are considered a complete and irrevocable transfer to the minor. The funds in the account belong to the minor but are controlled by and carried in the name of the custodian. The minor’s tax identification number is used for the account, as they are the beneficial owner. When the minor reaches the age of majority, or other age at which withdrawal is permitted, it is the legal obligation of the custodian to turn the funds over to the minor. We are not responsible to determine whether the use of the funds by the custodian is for the benefit of the minor.

Partnership Accounts – If you open an account as a “partnership,” any general partner may have signature and other authority to bind the partnership unless you have specifically advised us, in writing, otherwise; furnishing a copy of the partnership agreement is not considered specific advice and we will not be responsible to know, understand, interpret or enforce the partnership agreement. Upon our request, you agree to provide us with any documentation we may require pertaining to the account.

Sole Proprietorship Accounts – If you open a business account as a “sole proprietor,” your business may not be a corporation, partnership, association, or limited liability company. A sole proprietorship account may only be established by an individual depositor or a husband and wife.

Corporation Accounts – If you open a business account as a “corporation,” your business must be properly incorporated. Upon our request you agree to provide us with any documentation we may require pertaining to the account, including additional supporting documentation for “Out-of-State” or “Out-of-Country” foreign entities.

Limited Liability Company Accounts – If you open a business account as a “limited liability company,” your business must be properly established as a “limited liability company,” and the account title must reflect this designation. Upon our request you agree to provide us with any documentation we may require pertaining to the account.

Attorney-Client Trust Accounts – If you want to open an “IOLTA” (Interest on Lawyers Trust Account), you must indicate that on your signature card. Otherwise, we may assume that it is not an IOLTA account.

Transfer of Ownership – While checks drawn on your account are negotiable, the account itself and any certificate of deposit, passbook or other indicator of ownership is not negotiable or transferable except on our books and records, unless the account document(s) for the account explicitly states it is negotiable or transferable. We must approve any pledge of the account as security for a debt, and any pledge remains subject to our right of set-off and security interest. We may, but are not required to, allow any authorized signer(s) to request the removal or addition of an authorized signer(s) without the consent of the other authorized signer(s), although in such case we may require that the account be closed and a new account opened. It is the responsibility of the authorized signer initiating the request to notify all other authorized signer(s), including the removed authorized signer(s), as applicable. Signers removed from an account remain liable for items negotiated, but not yet paid, prior to their removal from the account. (See the Signature Card and Authorized Signers section for additional information.)

Retirement Accounts – We offer a wide selection of retirement account options. Please refer to the Retirement Plan Disclosures or other documents, received at account opening or periodically thereafter, for specific information regarding the rules and regulations governing retirement accounts, specifically concerning IRS penalties for the distribution of funds.

Please note, that although retirement accounts do have specific regulatory rules, your retirement account with us is still governed by the terms and conditions (where applicable) that are listed in this Agreement.

 

GENERAL TERMS AND CONDITIONS

Annual Percentage Yield – The Annual Percentage Yield (APY) means a percentage rate reflecting the total amount of interest paid on an account, based on the interest rate and the frequency of compounding for a 365- day period. Annual Percentage Yield assumes that interest remains in the account until maturity. If compounding occurs during the term of the account and interest may be withdrawn prior to maturity, a withdrawal will reduce your earnings.

Business and Banking Days – Our business and banking days are Monday through Friday. Saturdays, Sundays, and federal holidays are not considered business or banking days, even if we are open.

Deposit of Items – Deposits may be made to your account (if applicable) in person at any one of our branch locations, by mail, by proprietary (East West Bank and East West Bank-owned) ATM, by authorized night deposit box, or, as agreed upon by you and the Bank, directly to an authorized Bank processor. We are not responsible for deposits initiated by mail, messenger or depository boxes until we actually receive or credit them to your account. Except for deposits made at a proprietary ATM (e.g., ATMs operated by East West Bank), all deposits received after the “close of business” (as posted at the branch location) on a business day we are open, or received on a day on which we are not open for business, will be treated and recorded as if initiated on the following business day that we are open. Proprietary ATM transactions initiated on a Sunday and federal holidays or after 3:00 p.m. (local time zone) on a business day or Saturday will be treated and recorded as if initiated on the following business day that we are open. (See the Holds for Uncollected Funds/Delayed Funds Availability section for additional information.)

An authorized person should complete a deposit ticket for each deposit made. Deposits received without proper instructions may either be applied, at our discretion, to any loan or deposit account you maintain with us or returned to the sender. We may accept deposits to your account from any source and need not question the authority of the person making the deposit.

We may choose to accept an item for deposit on a collection basis only. If an item is accepted on a collection basis, we may charge a fee for the collection (See Bank Fee Schedule ) and will not credit your account with the funds until we receive them from the payor financial institution. If we elect to credit your account before then, we may charge your account for the amount if we do not receive payment for any reason. The institution upon which the item is drawn may also charge you a fee in connection with the collection. (See Foreign Transactions, under the General Terms section, for additional information.)

You warrant that all endorsements on items deposited to your account are genuine, and authorize us to supply any missing endorsement. On accounts with multiple authorized signers, you authorize all other authorized signers to act as your attorney-in-fact to endorse any check or debit payable to any one or more of the authorized signers on your account. You agree to reimburse us for any loss, cost or expense we incur as a result of your failure to endorse an item exactly as drawn. If we receive an affidavit or declaration stating that one or more endorsements on a check or other item is forged, we may rely upon the truthfulness of the affidavit and “restrict” the amount or charge back the amount of the check or item to your account, without prior notice to you and pending our investigation, even though you have already had use of the funds.

We reserve the right to refuse to accept any item for deposit, including but not limited to items that bear more than one endorsement or the endorsement of individuals who are not known to us. On previously endorsed items we reserve the right to refuse the item for deposit, to require the endorser to be present before we accept the item for deposit, or to require that their endorsement be guaranteed by their financial institution.

Adjustments – We may make adjustments to your account whenever we deem a correction or change is required. Adjustments might occur, for example, if deposits are recorded or keyed in for the wrong amount or items you deposit are returned unpaid. We may elect, at our discretion, to not 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. The election will represent an indirect service charge to your account.

All deposits are on a provisional basis only, even if we cash an item or give you immediate credit; any credit to an account is subject to final verification, payment and adjustment by us. We may (but are not obligated to) require suitable identification for any “less cash” transactions. Deposit receipts do not necessarily indicate the correct balance in the account or the amount being deposited. All deposits are subject to later verification, adjustment and collection by us.

Discrepancies – 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 paying the item or may dishonor the item, without liability.

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) assertions that we are responsible or legally liable for actions or inactions by you, including without limitation that actions or inactions were not authorized or violated the rights of owners of the account, payees, or makers of items deposited or withdrawn, or other third parties, and (c) our actions and omissions, provided that they are taken/omitted in accordance with this Agreement or your instructions. This provision shall survive the termination of this Agreement.

Foreign Transactions – Transactions must be in U.S. Dollars. If you use an Automated Teller Machine or conduct a point-of-sale transaction, a point of purchase transaction, or an electronic funds transfer in a foreign country, or if you write a check in foreign currency, we reserve the right to reject or accept the item. If we choose to process the transaction, your account will be charged at the foreign currency exchange rate imposed by us or the third-party processor, and an additional processing fee may apply. (See Bank Fee Schedule )

If you receive a credit or deposit to your account in foreign currency, we reserve the right to reject or accept the transaction and/or, at our discretion, process it on a collection basis. If accepted, your account will be credited at the foreign currency exchange rate imposed by us or the third-party processor. This exchange rate may be different than the exchange rate in effect on the day you initiated the transaction. An additional processing fee may apply. (See Bank Fee Schedule )

Collection of Items – When you cash or deposit a check or other item with us, or when we receive an item for collection, we are acting only in the role of the depositor’s agent and assume no responsibility beyond the exercise of ordinary care, nor will we be liable for the acts of agents, subagents or others, nor for any casualty, in the course of collection. The risk of loss of an item in the process of collection is on you. In no event shall we be liable to you if you cannot identify the maker and amount of the lost item.

We reserve the right to reverse any credit given and any interest earned or accrued for any deposited items lost in transit, or charge your account for any cashed items, should they become lost while in the process of collection. All items are credited subject to final payment and receipt of proceeds by us. You agree to do all things reasonably within your ability to assist us in finding, identifying, reconstructing, replacing and collecting lost items, including but not limited to maintaining a record of the maker of items delivered to us for deposit and collection.

We also reserve the right to pursue collection of previously dishonored item(s), and in so doing permit the payor bank to hold an item beyond the midnight deadline.

Withdrawals (Generally) – We reserve the right to refuse any withdrawal or transfer request which is attempted by any method not specifically permitted, which is greater in number than the frequency permitted, which is for an amount less than the amount permitted, or which will reduce the account below the required minimum balance. Even if we honor a non-conforming request, repeated abuse of the stated limitations (if any) may force us to close your account. We will use the date a transaction is posted by us (as opposed to the date you initiate it) to apply frequency limitations and may impose an excess activity fee. (See Bank Fee Schedule )

At our option, withdrawals may be made only upon your written order or that of any of the authorized signer(s) (unless otherwise noted on the signature card). We may pay any check which bears a signature or endorsement (including a facsimile signature) resembling the authorized signature(s) on file for your account. We do not have to require a written order, however, if we are authorized to allow a withdrawal by other means (e.g., by telephone or at an automated teller machine). We may (but are not obligated to) require suitable identification and/or receipt of passbook for any withdrawal or account closure.

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. Checks or withdrawal requests without the designated number of signatures or which bear signatures that (in our opinion) do not satisfactorily compare with specimen signatures on file with us may be refused or returned unpaid.

All checks written on your account must be in U.S. dollars (unless you have opened up a foreign currency account, in which case other arrangements may apply).

We reserve the right to refuse or limit withdrawals from any office that is not your branch of account. If your funds are deposited in a foreign branch of the Bank, the funds shall be payable only at the branch of deposit, unless otherwise agreed to by the Bank. We may also refuse to honor checks drawn on your account if they are directly presented to us by someone we cannot identify to our satisfaction. We may require reasonable identification, which may include without limit documentary identification and/or physical documentation (e.g. fingerprint, etc.), before cashing checks presented to us. We reserve the right to limit the dollar amount of withdrawals or other payments in cash, and may, at our discretion, fulfill the request by providing an East West Bank-issued negotiable instrument in lieu of cash.

Depending on your account type, withdrawals may occur upon presentation of a preprinted personalized check, a temporary check, a counter-check or another form of withdrawal, including a withdrawal order initiated by a third party drawing a draft on your account or initiating an electronic funds transfer if the third party is authorized to do so by you or any other authorized person. In this respect, if you authorize a company to pay bills for you or to draw items against your account without your signature on them (for example, through a money management or similar software program or an automatic payment plan offered by someone from whom you have purchased goods or services or borrowed money), you understand and agree that because we will not be able to determine whether a given item is actually authorized by you, we are authorized to honor any items that are prepared by such company whether or not you have actually authorized the company to draw that item on your behalf and even though the item will not bear your signature or that of any other person (if such items are written, they usually are “signed” signature on file or words of similar effect; if they are presented through an automated clearing house (“ACH”), there may be no signature field). Moreover, if you voluntarily give your account number to a third party by telephone or other agreement, this act may be deemed by us to authorize the recipient of the information to initiate debits to your account, even though you may not have specifically authorized a particular transaction. In these situations, we may have no obligation to reimburse you for our payment of any item issued by this third party. Under certain conditions we may, in our sole discretion, also follow other forms of withdrawal instructions from you or others with signing authority over your account, such as instructions given by letter, facsimile, electronically, or over the telephone.

 

ACCOUNT LIMITATIONS

Deposit Limitations – In addition to all other limitations set forth in this Agreement, 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.

Withdrawal Limitations – As required by federal law, we reserve the right to require 7 days advance written notice of an intended transfer or withdrawal of funds from any savings account, Money Market Deposit Account, or interest-bearing checking account. We currently do not exercise this right and have not exercised it in the past.

Money Market and Savings Accounts – Transactions involving these accounts are limited by law. As allowed for by the account, you may only make up to six withdrawals and transfers, each calendar month or statement cycle, by check, draft, point-of-sale or debit card, preauthorized or automatic transfers, or telephonic agreement, order or instruction (including data transmission). Preauthorized or automatic transfers, and telephonic transfers include, but are not limited to, automatic payments to non-related financial institution loans, automatic overdraft transfers, Online Banking transactions, transfers authorized by facsimile transmission, and Automated Telephone Transfers (VRU). If you exceed this limitation, we may refuse to honor the excessive transaction(s), 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. (See Bank Fee Schedule )

NOTE:

• We count checks for purposes of the transaction limitations 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 cycle may not be counted until a subsequent statement cycle. Given these limitations, you should not use Money Market or Savings Accounts as your bill payment account.

We may refuse or limit telephone and mail withdrawals, at our discretion. There is no limit to the number of withdrawals you can make in person at your branch of account, by mail or messenger, or through an automated teller machine (if your account allows access). 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).

Fixed-Rate, Fixed-Term Certificate Accounts – Unless our written agreement with you says otherwise, you do not have a right to make partial withdrawals from, or additional deposits to, an existing certificate of deposit. (See the Annual Percentage Yield and Account Terms Disclosure, received at account opening, for information regarding penalties imposed on withdrawals.)

Bonus or Special Promotion – Unless specifically stated otherwise, any bonus or special promotion we are offering will not apply to automatically renewing time deposits.

 

ADDITIONAL TERMS AND CONDITIONS

Facsimile Signatures – We may refuse to accept facsimile signatures. If we do accept a facsimile signature(s), you agree that we may treat such signature(s) as authorized. You agree to assume full responsibility for any and all payments made by us in reliance upon a facsimile signature(s) resembling a signature(s) that has been provided to us by any of you. You agree that it is your responsibility to safeguard mechanisms that create facsimile or mechanical signatures, and to indemnify and hold us harmless from any and all losses, claims, damages, liability, costs and expenses arising directly or indirectly out of the misuses or the unlawful or unauthorized use of the facsimile signature(s) by any person.

Fax/E-Mail/Voicemail Instructions – We may, but are not required to, act upon instructions received by FAX transmission, telephone voicemail or answering machine, or e-mail. If, at our discretion, we act upon your instruction, you agree to accept any risk associated with your use of these means of communication.

Fingerprinting – If a person to whom you gave your check asks us to cash the check, we may require that they place their fingerprint on the check. If they refuse to provide their fingerprint, we may refuse to cash the check without any liability on our part. (See Withdrawals (Generally), under the General Terms section, for additional information.)

Minors’ Accounts –We may refuse to honor checks or transfer instructions issued by minor (under 18 years of age) beneficiaries of a payable on-death account or minor joint tenants of a joint account, and may close the account upon the death of the principal(s) or adult joint tenant(s). At our option, funds held in an account for the benefit of a minor may be paid to the minor; or to the minor and the minor’s parent(s), guardian or other legal representative. The existence of this right shall not be deemed to impose any duty on us to include the minor’s parent(s), guardian, or other legal representative as co-payee(s).

New Account Verification – We may use a third-party service to verify and obtain information regarding your previous banking relationships. You agree that by requesting to open an account or service with us, or by becoming an authorized signer on an account, that we may obtain credit information from a check or credit reporting agency, and/or by other means. We may obtain this information at the time you open the account, request the service, at any time while your account and/or service is open, or if you owe us an amount related to a closed account or service. Adverse information may be used as cause to decline an account. We may also report the closure of your account to such third-party services.

Power of Attorney – We are sometimes asked to honor instructions from someone claiming to act as your agent. We reserve the right to refuse to act upon those instructions for any reason, including when the instructions are not clear to us or do not appear to be authorized by you. To reduce the possibility of this occurrence, we suggest that if you wish to appoint an agent to transact business with us on your account, that you consider using our standard power of attorney form, and further suggest that you review this form with your lawyer. You agree to be bound by and responsible for the acts of your attorney-in-fact, even if the attorney-in-fact relationship is not indicated on the check withdrawal order or other instruction. You agree not to hold us responsible for any unauthorized transaction or any loss or damage that may be incurred as a result of the decision we make whether to follow the instructions given by someone acting or claiming to act as your agent so long as our decision is made in good faith.

Check Orders/Forms – You agree to use the checks and forms as supplied by us or our authorized check printer. You are responsible for ensuring the accuracy of all information shown on your checks. If you find an error, please notify us immediately. Our liability is limited to the replacement or replacement cost of checks.

If you arrange for the printing of your own checks, verification of the form, encoding, format and proper printing of the checks are your responsibility. Your checks must follow our check specification requirements and be approved by us in advance. If you fail to obtain approval, these items may not be accepted by us for payment. 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.

We reserve the right to return unprocessed, any other check, form or order incompletely or defectively drawn

Account Analysis – You agree that if you deposit funds that belong to others (beneficial owners) in an analyzed account, you represent to us that (1) you are authorized by the beneficial owners to benefit from the use of any associated earnings credit, and (2) your use of the earnings credit will not violate any contract, law or regulation. You also agree to indemnify, defend and hold us harmless from and against any and all claims, actions, proceedings, losses, costs (including attorney fees and other charges), liabilities and/or damages that arise from your use of the Service or the manner in which you compensate or charge beneficial owners for your use of our services. This provision shall survive the termination of this Agreement.

Payment of Photocopies – Checks and other items are sometimes lost during processing or while in transit to us. Photocopies of items you have written, deposited, cashed, or otherwise negotiated may be charged to your account without your prior approval if they appear to be drawn on your account. We shall not be liable to you if the original items are thereafter presented and paid against your account unless a stop payment had been placed on the items, according to the terms in this Agreement, prior to presentment of the photocopies. (See Stop Payment Orders on Your Account, under the Additional Terms and Conditions section, for additional information.)

Cut-off Times – Our processing cut-off hour with respect to any knowledge, notice, stop payment order, or legal process received by us involving a check, that is against a sum in an account and would require us to reverse an item paid the prior day to comply, is 10:00 a.m. (local time zone) the banking day following the day the item was paid. This will only be valid for items that were not paid in cash, certified by us, or settled for without having a right to revoke the settlement. The cut-off hour with respect to set-offs exercised by us is the close of the banking day following the banking day we receive a check. The cut-off 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.

Stop Payment Orders on Your Account – If a check written on your account or an ACH debit to your account or an electronic transaction initiated by the use of a check (e.g., point of purchase “POP”, etc.) has not yet been paid, any authorized signer on the account and/or any individual authorized to access your account through the Online Banking or Automated Telephone Transfer service may be able to prevent its being paid by initiating a stop payment order, irrespective of who signed the check or authorized the transaction, or how many authorized signatures were required on the check. Placing a stop payment order on ACH items, or other electronically presented payments, does not cancel your authorization to the originator of the transfer. You are responsible for notifying the originator, in writing, with your request to cancel your authorization.

To be effective, a stop payment order must be received in sufficient time to enable us to act on it. For ACH and electronically presented payment transactions we must receive your request three (3) business days or more before the payment is scheduled to be made. (See Stop Payment of Pre-Authorized Transfer, under the Electronic Funds Transfers section, for additional information.)

Stop payment orders on checks are good for six months and then will automatically expire. If the check is still outstanding after that time, another stop payment order may be requested. If the check is presented after the stop payment order has expired, you agree that we may pay the check against funds in your account, but are not obligated to do so. Our records will be conclusive evidence of the existence and details of any stop payment initiated by you

Stop payments initiated using the Online Banking or Automated Telephone Transfer services are not considered accepted until we provide a stop payment confirmation to you. The ability to place a stop payment through the Online Banking or Automated Telephone Transfer service may be limited by system availability. If the system is not available to accept your stop payment order, the stop order may be placed by contacting any East West Bank branch during normal business hours.

In order to process your request, you must provide us with the exact amount (dollars and cents), check number (if applicable), account number and payee of the item. If you provide us with any incorrect information or do not give us sufficient time to act on your stop payment request, we will not be responsible for our failure to stop payment on the check/transaction.

A fee may be charged for each stop payment order or renewal thereof. (See Bank Fee Schedule )

Stop Payments, Bank-Issued Checks – You do not automatically have the right to stop payment on a Bankissued check you receive or purchase from us, and we may refuse to stop payment on a Bank-issued check or payment guaranteed by us. If any of the above items are lost, stolen, or destroyed, we may, at our sole discretion, stop payment if you and/or the payee sign a stop payment order and provide us with a surety bond in an amount and duration acceptable to us. Under certain circumstances, you may be able to claim a refund on a lost, stolen, or destroyed Bank-issued check 90 days following the date of its issuance. At our sole discretion, claims will be required to be submitted in writing, on a Bank form, and signed by you and/or the payee. If the Bank-issued check is presented during the 90-day waiting period, we may pay the item to a person entitled to enforce the check. If this happens, we will not pay your claim.

A fee may be charged for each stop payment order received. (See Bank Fee Schedule)

Stop Payments, Money Orders – Under certain circumstances, you may be able to place a stop payment on a Bank issued money order that has been lost, stolen, or destroyed and has not yet been paid. At our sole discretion, stop payment orders will be required to be submitted in writing, on a Bank form, and signed by you.

A fee may be charged for each stop payment order received. (See Bank Fee Schedule)

Lost or Stolen Checks – You agree to notify us immediately if any checks, drafts or other payment orders have been lost or stolen. We may close your current account and may open a new account, of the same type and features, for you. All inclearing items will then be returned, unless you specifically request that a particular check be paid (to do so you must provide us with specific information regarding the item). Once you make such a request you agree to indemnify and hold us harmless should the item be altered or forged. You will be responsible for issuing any replacement checks.

You will be responsible for notifying any outside agencies who make deposits to or withdrawals from your account (e.g., payroll, insurance, etc.) of your new account number as soon as possible. Failure to do so may lead to delays or nonprocessing of the transaction(s).

Stale Dated Checks –You agree 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 or postdated check 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.

Postdated Checks – Unless prohibited by state law, if you postdate a check we have the option to either pay the check against your account or refuse to pay it, unless you have given us advance notice, in writing, not to pay the postdated check and describe the check by providing us with the exact amount (dollars and cents), issuance date on the check, check number, account number and payee of the item.

Dating a check later than the actual calendar date you write it does not guarantee that payment will be delayed. Thus, it is not recommended that you postdate a check. You agree that the Bank will not be liable to you for charging your account before the indicated date on a properly payable but postdated check. If the postdated check is returned because there were insufficient funds in your account, you will be charged the standard fee. (See Bank Fee Schedule )

To be effective, a request not to pay a postdated check must be received in sufficient time to enable us to act on it. A request not to pay is good until the issuance date on the check (as provided by you) and then will automatically expire, allowing the check to pay. Our records will be conclusive evidence of the existence and details of any postdated check notification initiated by you.

We may pay the item as of the check issuance date, even if you have given us a request not to pay. If you do not want the item to be payable as of the issuance date, you must place a stop payment order. (See Stop Payments on Your Account, under the Additional Terms and Conditions section, for additional information.) For a stop payment order to be effective, we must receive your request in sufficient time to act on it before the check has paid.

A fee may be charged for each item that you requested us not to pay. (See Bank Fee Schedule)

Demand Drafts – If you use or authorize another to issue a demand draft against your account or voluntarily give information about your account (such as our routing number and your account number) to a third party who is seeking to sell you goods or services, and you do not deliver a check physically signed by you to the third party, any demand draft or other debit to your account initiated by the third party to whom you gave the information is deemed authorized even if it differs in amount, frequency or timing from your intentions or agreement with that third party. This provision does not obligate us to honor demand drafts. We may refuse to honor demand drafts without cause or prior notice, even if we have honored similar items previously. We are not under any obligation to verify whether the name and account number shown on the demand draft are consistent. (See Withdrawals (Generally), under the General Terms section, for additional information.)

You may not deposit demand drafts (items not bearing the maker’s signature, but purporting to be authorized by the maker) to an account with us without our prior, express written consent. If you deposit demand drafts with us, you agree that we may withhold a portion of the proceeds of such drafts or other funds in your account or 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 drafts 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 demand drafts will not be limited to the balance or existence of any reserve, and you agree that the opening and maintenance of a reserve account is not intended to constitute, nor shall it constitute, our sole or exclusive remedy, nor an election of remedy.

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 demand drafts at any time without cause or prior notice.

You agree that you will not hold us responsible for any loss, damage or other problems resulting from your having used or authorized another to create a demand draft.

Insufficient Funds – Checks, withdrawals, automatic transfers, ACH debits, ATM/Visa Check Card transactions, or other items drawn on your account against an insufficient available balance, which is not covered by available overdraft protection (under the terms of an East West Bank overdraft plan), are subject to either payment, which would create an overdraft on your account, or return of the item to the entity from whom it was received.

You agree that we have no liability for returning unpaid items, even if the insufficiency of available funds in your account resulted from our assessing fees against your account. Each item or transaction presented against an insufficient available balance is subject to a fee that will be charged against the account. (See Bank Fee Schedule )

You agree to pay us the amount of any overdraft immediately, without notice or demand from us. You agree to cover any service charges resulting from a transaction presented against insufficient available funds. Additionally, you agree to cover any service charges and/or accrued interest that may result from a transaction that overdraws your account.

Each of you is jointly and severally responsible to us for paying any and all overdrafts created by any one of the authorized signers (including your authorized agents and/or attorney-in-fact), irrespective of who signed the check or item creating the overdraft, benefited from the payment, or contributed funds to the account. Honoring of past items against an insufficient available balance does not obligate us to honor them in the future and we will not send prior notice of checks returned. Please note that we may discontinue permitting overdrafts without notice to you. We reserve the right to terminate any account with excessive insufficient funds activity.

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, or charge your account for the amount (and any interest earned on it), whether or not the return or notice of nonpayment 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 (See Bank Fee Schedule ) 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 you.

Check Processing – We operate an automated check processing system. In order to facilitate the processing of items in a timely and cost-effective manner; you agree that we may rely solely upon magnetic ink character recognition (MICR) to process checks written against your account. This means we may not visually examine each of your checks to determine if they are properly completed and endorsed. Although we may review checks from time to time, you understand that reasonable commercial standards do not require us to do so. As such, you agree to review all statements and checks as soon as you receive them and to notify us immediately of any discrepancy.

Order of Payments – The order in which we process your checks, ATM transactions, point-of-sale payments and other transactions depends on a number of factors such as the serial number of the check; when the transaction occurred; the order in which it was presented to us; whether it has been approved or otherwise guaranteed by us; the amount; and the type of transaction; among other variables. Generally, we will process previously authorized transactions such as wire transfers, internal transfers, and ATM or Debit Card transactions before we pay your checks, although there may be some exceptions. Generally, checks without a serial number will be processed in order of amount (low to high) and checks with a serial number will be paid based on the serial number (low to high), although we are not obligated to do so, and we may change the order in which we process your transactions without prior notice to you unless otherwise required by law. Paying larger checks and transactions first can result in increased fees. If you want to avoid non-sufficient funds (NSF) charges and the possibility of returned items, you should ensure that your account contains sufficient collected funds for each of your transactions.

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.

Electronic Imaging of Checks – Check imaging is a process of capturing, indexing, storing and retrieving electronic images of checks. Imaging systems replace the handling, distribution and storage of checks with electronic images. The images are retained by the Bank for a period of seven years from the date of posting. We may, at our discretion, create an electronic image of a check drawn on or deposited to your account. By using your account you agree to this procedure and authorize us to destroy the original items and checks. You agree to allow any imaged document, or copy thereof, to serve as an original item for any and all purposes, including charging your account or determining the validity of any signature or otherwise.

Upon request by you, we will provide you, without charge, with legible copies of two checks from each account statement. Additional imaged copies of cancelled checks are subject to the applicable service charges. (See Bank Fee Schedule ) You may request these copies by contacting your branch office. To produce a copy we will need your account number, check number, exact amount of check and the date the check was paid. You agree that if we provide your requested copies within five business days that we will have provided the copies within a reasonable time. If we need more time, we will inform you when the copy will be available.

Check Truncation – Certain products may come with or allow you to request check truncation (sometimes referred to as check “safekeeping” or “storage”). Truncated checks and other items will be deemed to be made available to you when your statement is made available. If your account has check truncation your checks will be electronically imaged and these images will be stored free of charge for seven years. We are under no obligation to retain the original items, unless required by law. If your checks are truncated, you can request up to two free photocopies per statement cycle. Additional copies may be requested for a fee. (See Bank Fee Schedule ) You agree that an electronic image of the check will suffice as a copy.

You agree that your statement, which includes the check/item number, dollar amount and date posted to your account, provides sufficient information to allow you to identify and authenticate any and all transactions, including whether they are altered, forged or otherwise unauthorized. Whether or not you receive your cancelled checks, you are required to review your statement and notify us of any errors or discrepancies in the time limit required. (See Unauthorized Transactions, under the Additional Terms and Conditions section, for specific time frame information.)

Electronic Redeposit of Returned Checks – You agree that for items we have previously returned unpaid due to insufficient or uncollected funds, we may, at our discretion, accept checks redeposited electronically by another financial institution. Transactions involving electronically redeposited checks may appear on your statement as an electronic debit, indicating the check number involved. If we accept an electronic image of a check, you agree that the original check may be destroyed.

Checks Bearing Restrictive Notations – We may pay or accept checks and other items bearing restrictions or notations (e.g., “Void after 90 days”, “Paid in full”, etc.), whether on the front or the back, in any form or format. Such notations shall have no effect on us, and you agree to assume the risks and losses resulting from our acceptance or payment of items that may not conform with the purportedly restrictive language. You agree we will not be liable for our refusal to honor such restrictions (whether or not we have previously honored or dishonored similar restrictions). You agree to indemnify, defend and hold us harmless from any claimed or alleged loss associated with our acceptance or payment of such items.

Improper Endorsement Under Regulation CC – You agree to assume responsibility for any loss resulting from a delay in the return of an item you deposited, cashed, or otherwise negotiated with us, due to endorsements that are not legible because of markings on the back of the item at the time it was presented. You agree to endorse each check within the top 1 1⁄2 inches on the back of the item (when viewed vertically from the trailing edge). Additionally, you agree to assume responsibility for any delay in return caused by the condition of the check arising after issuance until deposit, for example, a payee endorsement that violates Regulation CC placement standards.

Periodic Statement and Notice Responsibilities – If we provide you with a statement and/or notice, electronically or otherwise, you agree to inspect your statements and, if included, cancelled checks or check images, and/or notices as soon as you receive them and to report any errors, irregularities or unauthorized transactions to us immediately. If you fail to do so, you may become responsible for the losses resulting from such failure.

You assume full responsibility for monitoring and reviewing the activity of your account and the work of your employees, agents and accountants. If you are a business, you agree to have at least two persons review your statements, notices and returned checks, and agree not to entrust the writing of checks and the reconcilement and review of your account statements, checks 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. (See Unauthorized Transactions and Customer Responsibilities and Limit on Time to Assert Claims, under the Additional Terms and Conditions section, for additional information.)

We are not required to send statements on accounts that are “inactive”, “dormant”, “bad address”, or in a default status.

Unauthorized Transactions – You are in the best position to discover and report any unauthorized debit to your account. If you discover a forgery, alteration, counterfeit check or other unauthorized withdrawal or debit involving your account, you must promptly notify your branch of account, in writing, of the relevant facts. It is important that you carefully and promptly review all statements and notices we send to you. If you fail to notify us within a reasonable period of 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 may not be responsible for subsequent forgeries or alterations by the same wrongdoer. (See Customer Responsibilities and Limit on Time to Assert Claims, under the Additional Terms and Conditions section, for additional information. See the href="#HoldsForUncollectedFunds">Holds for Uncollected Funds/ Delayed Funds Availability section for information regarding claims pursuant to a substitute check, covered under the “Check 21 Act”.)

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 funds transfers. See the Electronic Funds Transfers section for additional information.)

If you claim a credit or refund because of a forgery, alteration or any other unauthorized withdrawal, you agree to provide us with a declaration containing whatever reasonable information we require concerning your account, the transaction, and the circumstances surrounding the claimed loss. 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 funds transfer services).

If, after conducting an investigation, we determine that you are entitled to a credit, the credit shall be limited to the amount withdrawn from the account. This limit shall be reduced, whether in whole or in part, by the percentage of the loss caused by any of the following: (1) any action or omission by you or anyone acting pursuant to your express or implied authority, (2) any action or omission of any third party which we could not have discovered using reasonable and ordinary care; or (3) any action or omission of any third party which could have been prevented by you in the exercise of ordinary care. In no event shall the Bank, or any of its employees, agents, or subcontractors be liable for any special or consequential damages, including, but not limited to, lost profits.

You also agree that we will have no liability for items paid that were forged or altered in a manner such that the fraud could not be reasonably detected by us.

You agree to pursue all rights you may have under any insurance policy covering any loss 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. You waive all rights of subrogation against us with respect to any insurance policy or bond.

Positive Pay Fraud Prevention Option – On certain business products we may make our Positive Pay service available. Positive Pay can be extremely helpful in preventing fraudulent checks from being charged against your account. If your product is offered with the Positive Pay service and if you choose not to use the service, you agree to assume a heightened degree of responsibility for safeguarding your checks, supervising persons who have access to your checks and statements, reviewing all returned checks and statements, and immediately reporting any unauthorized check transactions involving your account. If you do not enroll in the Positive Pay service and a fraudulent check loss occurs despite our exercise of good faith and ordinary care, you agree to assume responsibility for the loss to the extent that it could have been prevented by your use of the service.

Protecting Your Account – Your role in preventing misuse of your account(s) and/or service(s) is extremely important. You agree to exercise reasonable control over all bank checks, unissued checks, passbooks, certificates, ATM/Visa Check Cards, facsimile signatures, codes and personal identification numbers related to any account(s) and/or service(s) you have with us. It is your responsibility to keep these items safe and secure, and to immediately discover and report to us if they are lost, stolen or otherwise misused. In addition, if you are an Online Banking customer, please be aware that we are not able to detect if there is spyware or other viruses on your computer, or if your Internet access is not secure, so that it is of necessity your responsibility to ensure that you conduct your Online Banking transactions from a secure computer. It is highly recommended that Online Banking customers use security programs to protect their computer. If we become aware that your account(s) or service(s) is or may be compromised we may require that you close the account and/or service and, at our discretion, open a new one. If you refuse to close the account or service, we will be released from any liability for subsequent losses due to fraud or misuse. In addition to any other rights we may have, we may deny a claim or loss due to forged, altered or unauthorized signature if you do not properly protect against improper access to your checks, statements and other account information. (See Unauthorized Transactions and Customer Responsibilities and Limit on Time to Assert Claims, under the Additional Terms and Conditions section, for additional information.)

The following are some of the things that you can do to protect your account:

• Store blank and cancelled checks, deposit and withdrawal slips, and account statements under dual control in a secure, locked location that is accessible only to authorized personnel. Destroy unused deposit slips, checks, receipts, cancelled checks and statements before discarding them. Notify us immediately if any of these items are lost, stolen or missing. Write checks in permanent ink and ensure that all lines are filled completely. Numbers should be legible, and begin on the far left of the line so that additional numbers cannot be added. Personally sign your checks using a clear and legible signature, and never give anyone a “blank” pre-signed check.
• You should not use your account to cash checks for others who are not well known to you. Although we may make funds provisionally available to you and may take steps to determine whether a check will be paid, you are responsible for any loss that occurs if the check is returned to us for any reason (e.g., because it is counterfeit). Our employees cannot promise that checks drawn on or issued by other institutions, including cashier’s checks, will be paid. Do not leave outgoing mail in an unlocked collection area or mailbox. Deposit it in a locked Postal Service mailbox.
• Do not give any account information or personal identification numbers or codes to callers, even if they claim to be a Bank employee or from a law enforcement agency. Notify us immediately if you do not receive a new check order within 14 business days. Always use tamper resistant check stock, and never print your social security number or driver’s license number on your checks.
• Notify us immediately if any document containing your identification is lost, stolen or missing. Maintain accurate records of your transactions and reconcile your account statements as soon as they are made available to you. When reviewing your statements pay close attention to (1) checks cashed out of sequence, (2) checks made payable to cash, (3) balance discrepancies or unexpected fluctuations, and (4) check numbers that have previously cleared or are for any amount different than originally issued.
• For Online Banking customers, use security programs to protect your computer and to alert you to the existence of spyware or other undesired software programs or viruses, and regularly change your password(s).

Address Changes – You agree to notify the branch where your account is held, or any other location as we may designate for notices in our agreements with you, in the event of a change in your address, mailing address, e-mail address or telephone number. Your request will apply to all accounts and or services on which you are an owner, unless you specifically state otherwise. You agree to give us sufficient time to process this change on our records. You authorize us to obtain information on your residence address from the Department of Motor Vehicles and waive your rights under California Vehicle Code 1808.21 or similar applicable state law.

Mailing/Delivering Statements and Notices – We may send your statements and notices to any authorized person on your account by mailing or delivering the documents to the last address on file for the account. In some cases, statements and notices may be delivered through electronic communication, as agreed upon by you and us. Notice to any one of you is considered notice to all.

You assume full responsibility for notices, vouchers, checks, items, statements and other documents that are lost, destroyed or stolen while in the mail or in transit to or from you or a third party. You agree to promptly return any checks or other items that do not belong to you.

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.

If a statement and/or notice are returned to us by the Postal Service or other means, for any reason, we may hold subsequent statements and notices of any kind until we receive corrected address information from you.

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), or at such other address(es) as we designate. Notices sent elsewhere may be delayed or may not reach the correct office.

Determination of Account Balance – When determining an account balance to pay a check or item, we will make our available balance determination any time between presentment of the check for payment and our midnight deadline, and will be required to make only one review of the account balance before making our decision to pay or return the check or item.

Subaccounts – For regulatory reporting and reserve purposes, we divide checking accounts into two subaccounts: a checking subaccount and a savings 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.

Large Cash Transactions – Cash transactions are subject to availability of cash, and the limitations of the branch location where the request is being made. You agree, that at our discretion, we may either partially or completely fulfill your cash withdrawal request or the cash withdrawal request of someone seeking to cash a check drawn on your account, by issuing a cashier’s check or requiring that you or they go to a specific branch location to obtain the cash.

For large cash transactions, exceeding $10,000, we reserve the right to require advance notification and may require that you or they provide additional security measures (such as an armored car service) and/or deliver the cash to a specified location. In addition, for large cash transactions we reserve the right not to disburse such cash until we have had the opportunity to first contact you to obtain confirmation that the person seeking to receive the cash is in fact authorized to do so and is the person to whom you intended to give the check, and/or to obtain additional identification for the person seeking to obtain the cash, including a bank signature guaranty from the person’s own bank.

Escheat (Transfer) of Dormant Accounts – If, for an extended period of time (as defined by your applicable state law) there is no activity by you on your account(s) we are required by law to escheat (transfer) the balance of your account to the applicable state agency. If permitted by state law, and to the extent allowable, we may charge your account for costs incurred in delivery of the funds and/or property to the state and may discontinue interest payments on any interest bearing accounts (See Bank Fee Schedule ).

You can prevent your account from becoming dormant by doing any one of the following within the applicable time period: (1) make a deposit or withdrawal; (2) present passbook or other similar evidence of account for updating; (3) cash an interest check; (4) correspond electronically or in writing with us concerning the account; or (5) otherwise indicate an interest in the account (e.g., by a letter or other record on file with us). We may consider an account inactive even if you maintain another active account with us.

You may reclaim account funds that are turned over to the applicable state by presenting adequate proof of ownership to the state.

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 authorization.

Direct Deposit/Preauthorized Withdrawals – You may authorize others to access your account on a regular basis to make electronic deposits (credits) to your account. For example, you may authorize your employer to electronically deposit your payroll into your account. Certain government benefit programs may also pay you through periodic electronic deposits to your account. If, in connection with a direct deposit plan, we deposit any amount in your account which should have been returned to the originator (usually a government agency) for any reason (e.g., the death of a beneficiary), you authorize us to deduct the amount of our liability to the originator from this account or from any other account you have with us, without prior notice and at any time, except as prohibited by law. We may also use any other legal remedy to recover the amount of our liability.

You may authorize others to access your account on a recurring basis to make electronic transfers from (or debits to) your account. For example, you may authorize an insurance company to make periodic withdrawals to pay your insurance premiums. Additionally, you may authorize others to make electronic transfers from your account on a non-recurring (single entry) basis. For example, some merchants offer you the opportunity to use a check to initiate an electronic payment, and then return the paper check to you. These items are referred to as point of purchase or “POP” transactions.

Telephone Transfer – At our discretion, we may accept telephonic instructions from you in connection with your account. Our understanding of the 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, and this does not constitute an agreement by us to do so. Telephone transactions involving certain accounts are also subject to transaction limitations. (See the Annual Percentage Yield and Account Terms Disclosure, received at account opening, for additional information regarding transfer restrictions, and the Bank Fee Schedule for applicable fee information.)

Closing an Account – We reserve the right to close your account at any time with or without cause by giving oral, electronic or written notice to any of you. We also reserve the right to: (1) refuse to open any new account, (2) refuse to accept further deposits to any existing account, (3) discontinue or limit the use of checks drawn on, or ATM/Visa Check Card(s) linked to, any checking or savings account, (4) terminate other account related services such as Online Banking and Bill Payment, and, if applicable, (5) report your name, address, taxpayer identification number (TIN), driver’s license number, and date/reason we closed the account to an account verification service, such as Chex Systems, if your account was closed with or without cause. The account verification service may supply this information to others. This may adversely impact your ability to establish an account at any financial institution for up to 5 years from the date of the report. If your account is closed by us, we may issue a single cashier’s check for the account balance, jointly payable to all account holders, and may mail or deliver the check to any one of the account holders.

If for any reason we close your account, notification will be delivered to any one of the authorized signers on the account at the last address shown on our records. The notice may advise you to withdraw any part of or the entire amount on deposit by a specified date, may include a check for the account balance (including any interest and less any applicable service charge(s) or federal withholding), and/or may specify a date after which no payment will be made on any check or item presented for payment.

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 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., an electronic funds transfer) 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.

Telephone and Electronic Communication Monitoring/Recording – We may monitor telephone conversations and electronic communications for quality and control purposes. We usually do not record conversations without notice to you.

Document Retention – We may store certain or all documents relating to your account and your cash management, credit, investment, insurance, or other relationships with us, in electronic form (“imaging”) and may destroy the originals thereof. You agree that documents imaged and stored in accordance with our standard procedures for storing such documents may be relied upon to the same extent as the originals and shall be admissible in any court or other proceedings involving the same. (See Electronic Imaging of Checks, under the Additional Terms and Conditions section, for additional information regarding check imaging.)

Release of Account Information – Our disclosure of consumer information regarding your account(s) and/or transaction(s), and your ability to limit the sharing of certain information, is governed by our Privacy Policy. Please refer to the East West Family of Companies Privacy Notice for Consumers for specific information.

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.

Death or Adjudication of Incompetency – You agree to notify us immediately of the death or court-declared incompetence of any owner, authorized signer, or designated beneficiary on your account. You agree that we may disregard any notice of incompetency unless the accountholder has been declared incompetent by a court of appropriate jurisdiction and we receive written notice and instructions from the court regarding the account. We may also 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. You also agree that we will be given a reasonable opportunity to act on any such notice.

Upon the death of any owner of the account, ownership of the deceased owner’s share will pass based on the type of account. Under certain circumstances, payment from the account may be made to the heirs or personal representative of a deceased party. We may require letters testamentary or other appropriate documentation, duly issued and received by us to consider payment to such representatives. (See the Account Ownership section for additional information.)

If we have any question as to the ownership of funds or the amount of funds that belong to any person upon the death of an owner, we may freeze all or part of the account, pending receipt of proof (satisfactory to us) of each person’s right to the funds. Even with this knowledge, for 10 days after the date of death, we may pay checks drawn on or before that date, unless a stop payment is ordered or an adverse claim is made by a person claiming an interest in the account. Additionally, we may off-set, refuse and/or reverse deposits and transactions (e.g., government or retirement benefit payments payable to a deceased account holder). (See Disputes, under the Additional Terms and Conditions section, for additional information.)

Bank Policies and Procedures – Any internal policies and procedures that we may maintain are solely for our own benefit and shall not impose a higher standard of care then otherwise would apply in their absence.

Set-off and Security Interest – You hereby grant us a security interest in all accounts at our Bank and all property in our possession as collateral for all indebtedness and amounts owned by you to us from time to time, whether or not applicable loan or other documents refer to this security interest.

You agree that we may set-off funds in all accounts maintained by you with us (or any affiliate of ours) against any due and payable debt owed to us now or in the future, without prior notice and at any time, to the full extent of the law, including, but not limited to, agreeing that we may use the account to pay the debt even if the withdrawal results in an interest penalty or dishonor of subsequent checks.

In the case of a joint account, tenancy in common, or partnership, each of you authorize us to exercise set-off and enforce our security interest in the account, to satisfy any one of your individual obligations, even though only one of you is the defaulting debtor and irrespective of who signed the check creating the overdraft, who benefited from the overdraft, or who contributed funds to the account. Additionally, each of you agrees that we may use the funds in your individual account(s) to satisfy obligations of the account.

In the event of the death of any joint account holder, the rights of survivorship of the remaining account holder(s) is expressly subject to our right of set-off and consensual security interest.

Our right to set-off and consensual security interest in this account does not apply to this account if: (1) it is an IRA or tax-deferred retirement account; (2) the debt is created by a consumer credit transaction under a credit card plan; or (3) the debtor’s right of withdrawal only arises in a representative capacity.

Governing Law – This Agreement shall be governed by and construed in accordance with all applicable federal laws and all applicable substantive laws of the state where your account is held. If any terms of this Agreement come into conflict with applicable law, those terms will be nullified to the extent that they are prohibited by such law, and the applicable law will govern.

Contract Language – English is the language that governs our relationship with you. Although we may translate our agreements, disclosures, advertisements, etc. into another language for you, unless we are otherwise required by law, if there is a discrepancy between our English language materials and our materials in another language, the English language version governs.

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 applicable law. Payments in connection with the business of unlawful internet gambling by you or by a person with whom you do business are prohibited from being processed through your account or your relationship with us. In the event that such restricted payments occur or are believed to be occurring through your account or your relationship with us, we reserve the right to prohibit further payment transactions by you and/or to close your account immediately. If we are uncertain regarding the legality of any transaction, we may refuse the transaction or freeze the amount in question while we investigate the matter. 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.

Limiting Our Liability – Subject to any contrary provisions of the California Commercial Code, and other applicable laws and regulations that cannot be waived or modified by agreement of the parties, we are not responsible for any loss, expense or liability arising out of deposit, funds transfer, safe deposit box, or other relationships contemplated by this agreement for:

• any delay, inaccuracy, mis-execution, events, or causes not within our reasonable control, including losses or delays resulting from materials sent through U.S. mail or other vendors;
• failure of others to accept payment;
• subsequent wrongful dishonor resulting from our acts or failure to act; and
• accidents, strikes, fire, flood, war, terrorism, riot, equipment failure, acts of third parties or acts of God.

In addition, we shall be excused from failing to accept, execute or settle with respect to a funds transfer request if to do so would result in the Bank having exceeded any limitation upon its intra-day net funds position established pursuant to a present or future risk control program of the Federal Reserve, or any rule or regulation of any other U.S. or state governmental regulatory authority.

Our maximum liability will never exceed the amount of actual damages proven by you. In the case of funds transfers, we make no warranty that the intended recipient of your funds transfer will receive the funds transferred. Our liability will be reduced (1) by the amount of loss that is caused by your own negligence or lack of care; (2) to the extent that damages could not have been avoided by our exercise of ordinary care; and (3) by any loss recovery that you obtain from third parties (apportioned in accordance with the 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, without limitation, loss of profits and/or opportunity, loss or damage from subsequent wrongful dishonor resulting from our acts or omissions pursuant to this Agreement, or for attorney’s fees (including in-house attorney 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 or bond you maintain in connection with any loss associated with your account, and any other rights against third parties, and to provide us with information regarding coverage and rights against third parties. Our liability will be reduced by the amount of any insurance or bond proceeds or recoveries from third parties you receive or are entitled to receive for the loss. If we reimburse you for a loss and the loss is covered by insurance, by a bond or by claims against third parties, you agree to assign us your rights under the insurance policy, bond or from third parties to the extent of our reimbursement, in accordance with this provision. You hereby waive all rights of subrogation against us with respect to any insurance policy, bond or third parties.

Customer Responsibilities and Limit on Time to Assert Claims – You agree to exercise reasonable control over all bank checks, unissued checks, certificates of deposit, passbooks, check cards (of any kind), personal identification numbers (PINs), ATM access cards and any other item, instrument, or card related to your account. It is your responsibility to keep any of the above safe and secure and to promptly discover if any of them are missing in time to prevent misuse. You agree to notify us immediately if any of these items may be lost, stolen or used without your authorization, or if you believe there is an error in your periodic statement or that an unauthorized transaction has occurred or may occur on your account. You acknowledge that your account may have to be closed if any of these events occurs. (See Unauthorized Transactions and Protecting Your Account, under the Additional Terms and Conditions section, for additional information.)

If you are an Online Banking customer, please be aware that we are not able to detect if there is spyware or other viruses on your computer or if your Internet access is not secure, so that it is of necessity your responsibility to ensure that you conduct your online banking transactions from a secure computer. There are computer viruses that exist that may enter your computer without your knowledge and also without your knowledge send to a third party information about your account gained from your computer, such as for example keystrokes of your account number and passwords. It is highly recommended that Online Banking customers use security programs to protect their computer and alert them to any viruses, and that they regularly change their password(s).

You agree to review your statements, checks and other records sent or made available to you with reasonable promptness, which you agree does not exceed 21 days after your statement date or the date the information is otherwise made available to you. If you do not receive your statement by the date you usually receive it, call us at once. You assume full responsibility for monitoring and reviewing the activity of your account and the work of your employees, agents, accountants, whether or not you actually receive the statements, and whether or not the statements contain the items bearing an unauthorized signature or alteration. (See Periodic Statement and Notice Responsibilities, under the Additional Terms and Conditions section, for additional information.)

You must notify us as soon as possible if you believe there is an error, forgery, alteration, unauthorized transaction or other problem (individually and/or collectively referred to herein as “problem”) related to your account. You agree that 21 days after we have mailed the statement to the mailing address you have provided to us, or otherwise made the information available to you, is a reasonable amount of time for you to review your account activity and report any problem related to your account and we will not be responsible for any subsequent unauthorized activity or other problems that might have been corrected if you had reviewed your statement and reported any problems within such period. In addition, you agree not to assert a claim concerning any problem unless you have notified us of such problem within 60 days after we mailed you the statement or otherwise made the information available to you, and to exhaust all of your remedies against your insurance or bonding company before filing a claim against us for unauthorized transactions in which your employee has been involved. You agree that any recovery you receive will be applied toward the loss you claim against us. (See Limiting Our Liability, under the Additional Terms and Conditions section, for additional information.)

Notwithstanding the foregoing, and in addition to any rights we may have under applicable law, if you fail to discover and report to us any problem related to your account(s) within 60 days of the date the statement on which such problem is reflected is mailed or the information is otherwise made available to you (or other shorter period provided by law), you agree for all purposes to accept the balance indicated in our records as correct and relieve us of further responsibility or liability to you with respect to such problem. You are precluded from asserting, and waive any right to assert, any such problem against us in any proceeding including, without limit, arbitration or court proceeding, after such period.

Except for shorter periods provided under this Agreement or by applicable law, any action or proceeding brought by you to enforce any obligation, duty, or right arising under or relating to this Agreement or otherwise relating to your account(s) or service(s) provided to you hereunder, must be commenced within 1 year after the cause of action occurs.

You agree that you will not deposit any item into your account, which does not bear either a true original signature of the person on whose account the item is drawn or an authorized mechanical reproduction of that person’s signature, without our prior express written consent, which may be withheld at our discretion. If we do consent to deposit of such items such consent may be withdrawn at any time without cause or prior notice.

Disputes – Sometimes we are brought into the middle of a dispute among the account holders or authorized signers over an account or a dispute between account holders or authorized signers claiming to be owners of or the person entitled to control or withdraw funds from a deposit account. When we know or suspect that this is happening, we may choose any of the following courses of action:

• We may ignore instructions (such as an instruction by one account holder or authorized signer not to honor items or other withdrawal orders by another account holder or authorized signer) for the account unless all account holders or authorized signers sign the withdrawal, deposit, check or instructions;
• We may freeze the account and withhold payment from all of you until we receive written proof (in a form and substance satisfactory to us) of your right and authority over the account and its funds;
• We can require that all account holders or authorized signers sign any instruction, check, item or other withdrawal order even though the signature card for the account does not require all those signatures to authorize a withdrawal. If your account is a corporate, limited liability company, partnership or other entity account, we may require specific signatures or other authorization from directors, partners, managers or owners of the entity or, if a power of attorney account, we may require approval of the principal, or if a trust account, we may require approval of other trustees or the beneficiary(ies);
• We can return checks or other items, marked “Refer to Maker” (or similar language), or we may “restrict” the account, until satisfactory evidence has been received by us confirming your right or authority over the account or that the dispute has been resolved, or we can close the account and issue a single cashier’s check for the account balance jointly payable to all account holders, and we may mail or deliver that check to any one of the account holders;
• We may request instructions from a court of competent jurisdiction at your expense regarding the ownership or control of the account;
• At our discretion and without liability to us, we may or may not continue to honor checks, withdrawals or other instructions given to us by any individual(s) with actual, implied or apparent authority on our records to access the account;
• We can deposit the account balance with the clerk of court connection with an interpleaderaction we bring or in response to a court action naming us as a party. The court would then decide who is entitled to the funds. If we make an interpleader deposit with the court, the court may be asked to award us our costs, including attorney’s fees (including in-house attorney fees), for the lawsuit. The law provides that this award is payable out of the deposit;
• We can close your account (see Closing an Account, under the Additional Terms and Conditions section);
• We can take any other action we believe to be reasonable under the circumstances even if the action is not listed here. These actions include, but are not limited to, any specific procedures that may be applicable under a law or regulation;
• The existence of the rights set forth above shall not impose an obligation on us to assert such rights or to deny a transaction.

In no event will we be liable for any delay or refusal to follow instructions that occur as a result of a dispute or uncertainty over the ownership or control of your account. You agree not to hold us responsible for, and to indemnify and defend us against, damages that may result from any decisions we make in this regard as long as our decision and action (or inaction) is made and taken in good faith.

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.

Severability – If any of the provisions of this Agreement are determined to be void or unenforceable, the remainder of this Agreement shall remain in full force and effect.

Waiver – Waiver of any of the provisions of this Agreement will not constitute a waiver of other provisions.

Non-Assignability – This Agreement is made exclusively for your and our benefit, and you may not assign this Agreement without our written consent. As such, no other person shall have any right against you or us hereunder.