Processing Deposits. Accepting or Cashing Items for Deposit We may accept, accept for collection only, refuse, or return all or part of any deposit. We may also impose any requirements or conditions before we accept a deposit, such as requiring an acceptable form of identification, an endorsement guarantee or requiring an item to be endorsed by all parties to whom the items are payable. For example, we may refuse an item for deposit if: an item is made out to a payee not on your account (i.e., third party payee) we cannot verify an endorsement on an item it is a non-U.S. item it is an item issued on a credit account (e.g., credit card convenience check) it is a cash deposit made into consumer accounts by non- account owners We generally cannot verify that checks, money orders, cashier’s checks or other items are authentic, valid or issued against good funds at the time you ask us to cash or deposit them. If we accept an item for deposit: we are not required to question the identity and authority of the person making the deposit and your account is overdrawn, we may use the deposit to pay the overdraft and any fees due and the deposit is not paid for any reason or is later determined to be unauthorized, we may charge your account for the amount of the deposit, even if this causes your account to be overdrawn You agree and warrant that: you will not knowingly deposit an item into your account that you know is not authorized or does not contain an authorized signature of the person on whose account it is drawn; you will not deposit with us or any other financial institution an item that has been previously or on the same day deposited using electronic deposit, such as through mobile banking or other deposit imaging service. If you make such a duplicate deposit, you agree to fully reimburse us for any Loss incurred; and you will not deposit an ECI, which is an electronic image that has all the attributes of an electronic check but is not originally derived from a paper check. You further warrant that any item you deposit has been created from a paper check. If you create or deposit an ECI, you agree to indemnify us for any Loss resulting from a breach of these warranties and to fully reimburse us for any Loss incurred. Deposit Slips You may order your deposit slips through us or you may use an outside vendor. If you order through us, we may receive compensation from our vendor. If you use an outside vendor, your deposit slips must conform to our specifications. You are responsible for any error on deposit slips provided to you by your outside vendor and any resulting Loss. Non-conforming or erroneous deposit slips from your outside vendor may cause your deposits to be refused or delayed. If errors on your deposit slips provided to you by your outside vendor are not corrected promptly, we may impose additional charges after notice to you. Checks Lost in Transit When you cash or deposit an item with us, we act as your agent to collect the item. The risk of loss of an item in the process of collection is on you. We may reverse any credit given and any interest earned or accrued for the amount of a deposited item that is lost in transit, and we may recover from any account you maintain with us the funds given to you for a cashed item which is lost in transit. You will fully cooperate to promptly assist us to find, identify or replace a lost item, including maintaining a record of the maker of items delivered to us for deposit and collection. We will not be liable to you if an item is lost in the process of collection provided we exercised ordinary care in handling the item. In no event shall we be liable to you if you cannot identify the maker of the lost item. Collection Items We may accept certain items (such as certain securities and checks payable in foreign currencies or at foreign locations) on a collection basis only. Collection items are routed and processed separately. If an item is accepted on a collection basis, we may charge a fee for the collection whether or not the item is paid. If an item we take for collection is drawn on a bank that requires a fee in advance, you will be charged the fee. We may not credit your account for any item taken for collection until we receive funds. If we do credit your account and do not receive funds, we may debit your account for the amount of the item, even if it causes your account to be overdrawn. Items drawn on banks located outside the United States may not be paid as quickly as items drawn on banks located in the United States. Demand Drafts You may not deposit a demand draft (an item which does not bear the maker’s signature but which purports to be drawn with the maker’s authorization, also called a "remotely created item") to an account with us without our prior express written consent. If a demand draft is deposited to your account, you warrant that the draft is authorized according to the terms on its face by the drawer and agree to indemnify us from all Loss related to a claim that such draft was not authorized. You agree that we may restrict your account for an amount we reasonably believe may be needed to repay the amount of any demand draft returned unpaid for any reason or returned to us with a claim that the demand draft was unauthorized. At our discretion we may place the amount of the restricted funds in a separate reserve account on our books which will not earn interest unless we otherwise agree. Our right to charge your account for any returned demand draft is not limited to the balance of any restricted funds. We may retain the restricted funds in a reserve account for such period of time as we shall determine, even if your account is closed, and our rights respecting the restricted funds shall survive termination of your account relationship with us. We may discontinue accepting demand drafts at any time without cause or prior notice. Cashed or Deposited Items Returned Unpaid If an item cashed by us for you or deposited into your account is returned to us unpaid at any time for any reason, we may, in our discretion and without notice to you: attempt to re-clear the item for payment and place a hold on any funds in your account up to the amount of the item until final payment is determined or for the length of time permitted by law; or we may return the item to you, subtract the amount of that returned item from any account of yours with us, including any investment account maintained with an affiliate, together with any interest credited or received by you from that amount and we may cancel and not pay any accrued interest on that amount. If we are unable to recover the full amount of the item and our charges from your account, we may retain the item until payment is made. If we receive notice that an item you cashed or deposited is being returned, we may place a hold on the funds in any account of yours in order to recover the amount of the item when we receive the item back or are otherwise charged for the item. We are not required to determine if an item is returned to us on time under any applicable law or regulation. A fee may be charged for each deposited item returned. Check Endorsements You must endorse checks in the area that extends 1½ inches from the trailing edge on the back of the check. The trailing edge is the left side of the check when you look at the check from the front side. The remaining area is reserved for bank endorsements and must be kept clear and unobstructed. If you endorse outside of that area or mark or otherwise obscure the area reserved for bank endorsements, we may refuse or return the item or accept the nonconforming endorsement. You agree to hold us harmless for any Loss we may suffer or incur arising from or in any way related to marks that obscure the area served for bank endorsements on items deposited or cashed by you. We may, at our discretion, endorse and/or collect items deposited to your account without your endorsement or we may require your personal or business endorsement prior to accepting an item for deposit. If you present an item for deposit or encashment that bears the endorsement of more than one named payee or a payee that is not known to us, we may refuse to accept the item and require that the endorsements be guaranteed by another financial institution acceptable to us. Items Returned or Claims for Forged or Unauthorized Signature or Endorsement or Alteration If an item cashed or deposited into your account: is returned to us with an affidavit or declaration stating that the item bears a forged or unauthorized signature or endorsement or is a counterfeit or is altered in any way; and we are requested to return funds or we are advised that such an item exists and may be returned or a credible claim may be made against us, we may hold, return or deliver the funds claimed and subtract the amount of the item from any account of yours (including any investment account of yours maintained with an affiliate), together with any interest credited or received by you from the amount and any associated fees, without prior notice to you. We are not required to question the truth of the affidavit or determine if the item and affidavit are returned to us timely or within any applicable period limiting legal action. A fee may be charged for each item returned to us. Items Missing Endorsement If we determine a check or other item cashed or deposited into your account lacks a third party endorsement, we may hold the funds until such time as the third party confirms to our satisfaction that the item was properly deposited to your account and may subtract the amount of the item from any account of yours, together with any interest credited or received by you from the amount and any associated fees, without prior notice to you. Deposit Total Adjustments If your deposit ticket differs from the amount of your actual deposit, whether your deposit was made in person, electronically, through an automated teller machine or night depository, by courier, or by any other means, we may adjust the amount of your deposit to match the actual amount of funds we receive, and a fee may be charged. The deposit adjustment will be reflected as a separate entry on your monthly statement. Overpayments and Reversals If any funds to which you are not entitled are deposited into your account for any reason, we may deduct these funds from your account, even if this causes your account to be overdrawn. If such funds were transferred from your account, we may reverse the transfer. We are not required to give you notice if we take this action. Identifying the Account for Deposit You must correctly identify the account number for the account into which a deposit is to be credited. We may credit a deposit based solely on the account number listed on the deposit slip or instruction to credit an account, regardless of whether the name on the deposit slip or instruction matches the name of the account. If you do not identify the account, we may apply the deposit or payment to any deposit account or loan you maintain with us. You are responsible for any Loss caused by your failure to properly identify the account to which a deposit is intended to be made. Direct Deposit Plan Refund Claim If a refund claim is or may be received from the originator of any deposit to your account credited pursuant to a direct deposit plan and we determine that we may have liability for any or all of the amount of the claim or the originator is otherwise entitled to the amount of the claim from you, except as otherwise required by law we may charge any account of yours with us for the amount of the claim and refund the amount to the originator without notice to you.
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