Common use of Certificate of Deposit Clause in Contracts

Certificate of Deposit. A certificate of deposit account is not payable, in whole or in part, before maturity date and no interest accrues after date of maturity. There are additional terms and conditions that apply to certificates of deposit accounts and to other segregated interest bearing accounts which are set forth in Bank disclosure documents and/or in certificate of deposit receipts. To the extent that any conflict exists between the additional terms set forth in Bank’s disclosures and/or receipts and this Agreement, the terms of this Agreement (together with its Addendums and Amendments) will control. A certificate of deposit is a segregated account and is represented only by bookkeeping entry on Bank’s records, but distinguished from other types of deposits by a single global account number. A single Deposit Account Agreement (booklet)/Depositor’s Agreement (signature card), together with a single global account number, may control all certificate of deposit accounts of the same Depositor(s) and no additional agreements will be required to establish such additional certificate of deposit accounts. Any certificate of deposit that is automatically renewable will receive the then prevailing rate of interest paid by Bank on certificates of deposit of similar amounts and term for an additional term equal to or substantially similar to the previous term of the certificate of deposit, unless otherwise agreed in writing by the Bank and Depositor, notwithstanding anything contained herein or in Bank’s disclosures and/or certificate of deposit receipt to the contrary. For automatically renewable certificates of deposit, evidence of their current existence must be established by presentation of the certificate or execution of a “lost certificate affidavit.” In addition to the execution of a “lost certificate affidavit”, Depositor must present either a renewal notice from Bank or IRS Form 1099-INT from the Bank. In the event these documents are not presented, the Bank will presume that the certificate of deposit has been previously presented and paid, and its liability for such certificate of deposit shall be terminated. Depositor has no right to make additional deposits to an existing certificate of deposit account. Bank may, in its sole and absolute discretion, allow additional deposits to existing certificate of deposit accounts. Depositor has the right to terminate the certificate of deposit or withdraw the funds there from within ten (10) days after the date of maturity of the deposit. An interest rate applicable to a certificate of deposit account is subject to modification by Bank at each maturity date and/or on the date of any withdrawal of funds from the certificate of deposit account. If Depositor requests withdrawal of a certificate of deposit or any part thereof prior to the agreed maturity date, and Bank, in its sole and absolute discretion, consents to Depositor’s withdrawal request, Bank may charge a penalty as provided in the Certificate of Deposit disclosure documents. Nothing herein implies that Bank will consent to a request to allow additional deposits and/or for an early withdrawal and may decline any such request, even if prior requests have been approved.