Deposit Agreement

Commerce Bank Deposit Agreement & Disclosures

Effective March 2013
Missouri, Kansas, Illinois, Oklahoma and Colorado.

Table of Contents

  1. General Provisions
    1. Legal Effect of Agreement
    2. Subject of Agreement
    3. Effect of State and Federal Laws and Regulations
    4. Governing Law/Jurisdiction
    5. Liability
    6. Indemnification/Limitation of Liability
    7. Monitoring and Recording Telephone Calls/Videotaping
    8. Waiver of Rights by Bank
    9. Customer’s Waiver of Notice
    10. Claims and Disputes Concerning Ownership or Authority With Respect to Your Account
    11. Amendment of Agreement
    12. Termination of Agreement/Closing Account
    13. FDIC Insurance
    14. Fair and Accurate Credit Transaction Act of 2003
  2. Ownership of Accounts
    1. Important Information About Procedures for Opening a New Account
    2. Account Ownership and Eligibility
    3. Individual Personal Accounts
    4. Joint Personal Accounts
    5. Transfers to Minors Accounts
    6. Payable On Death Accounts
    7. Agency and Fiduciary Accounts (Including Powers of Attorney)
    8. Business and Other Non-Personal Accounts
  3. General Rules Governing Deposit Accounts
  • Funds Availability Policy
  • Federal Electronic Fund Transfer Act Disclosure ATM Card Agreement
  • Notice of ATM/Night Deposit Facility User Precautions
  • Substitute Check Policy Disclosure
  • I. GENERAL PROVISIONS

    A. Legal Effect of Agreement

    When you open or maintain a deposit account with Commerce Bank (“account”), you are agreeing to the terms of this Agreement. It is a legally binding contract. “Account” means checking, savings, money market accounts or certificates of deposit, whether evidenced by a certificate or in book entry form. In this Agreement, the words “we,” “us,“ and “our” mean Commerce Bank and the words “you” or “your” mean the holder(s) of the account (“accountholder(s)”) identified on the signature card or other account documents and anyone else with the authority to deposit, withdraw, or exercise control over the funds in the account. For purposes of this Agreement, “business day” means any day except Saturdays, Sundays and federal holidays. Read this information carefully and keep it with your other account records.

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    B. Subject of Agreement

    This Agreement includes the terms that apply to your account with us, or any one of our predecessors and replaces and supersedes any previous deposit agreements. It also contains important regulatory disclosures relating to the availability of deposited funds and electronic fund transfers. The types of accounts offered by us, service charges, other fees and terms are described in separate brochures that are part of this Agreement. Some accounts involve special rules, in addition to those in this Agreement. For example, accounts in an Individual Retirement Account are, in addition to this Agreement, subject to your Individual Retirement Account Custodial Agreement. A computer, ATM Card, bankcard with ATM access, and debit card may access accounts. These services are subject to additional agreements that address the unique characteristics of these services. Non-personal account holders may also be subject to our Treasury Services Agreement and related service agreements. If any of the terms of this Agreement conflict with the terms of any other specific service agreements with us, the terms of the specific service agreements will govern. The headings in this Agreement are for convenience or reference only and will not govern the interpretation of the provisions.

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    C. Effect of State and Federal Laws and Regulations

    Much of our relationship with you is regulated by state and federal laws and regulations, including the laws of the United States, the Uniform Commercial Code, regulations of the Board of Governors of the Federal Reserve System, operating letters of the various Federal Reserve Banks, and regulations, rules and interpretations of regulatory agencies, clearinghouse associations and fund transfers systems (together referred to as “applicable law”). If any terms of this Agreement come into conflict with applicable law, those terms will be nullified to the extent that they are inconsistent, and the applicable law will govern. If any provision of this Agreement is declared to be invalid, unenforceable or illegal, that part will not affect the validity of the other provisions.

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    D. Governing Law/Jurisdiction

    This Agreement will be governed by applicable federal law and, to the extent not preempted by applicable federal law, by the applicable law of the state in which the account was, or is considered, opened (“account domicile state”). Any account opened by mail, telephone or electronic means will be considered opened in Missouri, unless the first named account holder resides in a state in which we maintain a branch. In that event, the account will be considered opened in the state in which the first-named account holder resides. Any lawsuit regarding your account must be brought in a proper court in the account domicile state. You submit to the jurisdiction of the account domicile state.

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    E. Liability

    You agree, for yourself (and the person or entity you represent if you act as a representative of another) to the terms of this Agreement and the schedule of charges. You authorize us to deduct these charges directly from the account balance as accrued. You will pay any additional reasonable charges for services you request which are not covered by this Agreement. Each of you also agrees to be jointly and severally (individually) liable for any account shortage resulting from charges or overdrafts, whether caused by you or another with access to your account. This liability is due immediately, and can be deducted directly from the account balance whenever sufficient funds are available. You have no right to defer payment of this liability, and you are liable regardless of whether you signed the item or benefited from the charge or overdraft.

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    F. Indemnification/Limitation of Liability

    You agree to reimburse us for any losses, liabilities, expenses and, to the extent permitted by law, costs including reasonable attorneys’ fees and collection agencies’ fees, we incur with respect to the collection of overdrafts or otherwise in connection with your account. You agree to pay our attorneys’ fees and costs, in addition to any obligations described above, in the event that we shall prevail in any legal proceeding arising out of your account or this Agreement. We will not be responsible for any loss to you caused by an event that is beyond our control, including, but not limited to, natural disasters, wars, riots, strikes, computer failure, or the loss of power, communication or transportation facilities.

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    G. Monitoring and Recording Telephone Calls/Videotaping

    We may monitor or record phone calls for security reasons and to ensure that you receive courteous and efficient service. You consent in advance to any such monitoring or recording. We need not remind you of our monitoring or recording before each phone conversation. We may videotape any transactions on our premises. We may choose to monitor or record phone calls or videotape transactions in our sole discretion, unless required by law. Any such recordings and/or videotapes are our exclusive property.

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    H. Waiver of Rights by Bank

    We reserve the right to waive or delay the enforcement of any of the terms of this Agreement with you with respect to any transaction or series of transactions. Any such waiver or delay will not affect our right to enforce any of our rights with respect to other customers, or to enforce any of our rights with respect to later transactions with you and is not sufficient to modify the terms and conditions of this Agreement. For example, our payment of over drafts on your account does not waive our right to return items or other debits for insufficient funds. If a fee is waived because of a certain condition, for example, you are a minor, or because of your employment by a specified employer, or your membership in Senior Partners or your participation in a package account product or private banking, the fee may be assessed without notice upon termination of that condition.

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    I. Customer’s Waiver of Notice

    You waive any notice of non-payment, dishonor or protest regarding any items credited to or charged against your account. For example, if a check that you deposited is dishonored and returned to us, we are not required to notify you of the dishonor.

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    J. Claims and Disputes Concerning Ownership or Authority With Respect to Your Account

    If another person or entity makes a claim against the funds in your account, or if we have reason to believe there is or may be a dispute over matters such as the ownership of the account or the authority to withdraw funds, we may, in our sole discretion, (1) continue to rely on current signature cards, resolutions, or other account documents, (2) honor the competing claim upon receipt of evidence we deem satisfactory to justify such action, (3) place a hold on all or part of the funds until the dispute is resolved to our satisfaction, or (4) pay the funds into an appropriate court of law for resolution pursuant to an inter pleader action. You agree that we may withhold from funds subject to an inter pleader action our costs, including reasonable attorneys’ fees. We will not be liable for any items or debits that are dishonored as a consequence of holding or interpleading funds for these reasons.

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    K. Amendment of Agreement

    Unless otherwise required by law, we may amend this Agreement by posting notices in our branches, sending you a notice or including a message on or with your bank statement. We may change the terms in our fee schedules without notice to you, unless required by law. Applicable law may change from time to time without notice to you unless required by law. Your continued use of your account after the effective date of any amendment or change, or after a reasonable time, not to exceed ten (10) calendar days, if no such date is stated, will constitute your acceptance of the terms of the amendment or change. We may amend the terms of the fee schedules or other terms applicable to a particular account, based upon the account relationship or other factors.

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    L. Termination of Agreement/Closing Account

    We may terminate this Agreement and close any account and return the balance to you at anytime, in our sole discretion, with or without prior notice. If your account reaches a zero balance, we reserve the right to consider the account closed. You may terminate this Agreement and close your account at anytime upon notice to us. We may require, in our discretion, that such notice be given in writing or in person. If you close your account, you must terminate all banking services related to the account (for example, debit cards or internet banking) and preauthorized debits and credits (for example, bill payments, payroll or social security). A subsequent deposit or credit may re-open the account. Termination of this Agreement will not release you from any fees or other obligations incurred before the termination, those you incur in the process of closing your account or those you incur if the account reopens due to a subsequent deposit or credit or failure to terminate any banking service related to the account. Termination of this Agreement does not release you from liability on outstanding items. This Agreement will continue to govern matters relating to your account which arose before termination or which may arise later.

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    M. FDIC Insurance

    Funds in your account(s) with us are insured by the Federal Deposit Insurance Corporation (FDIC) and backed by the full faith and credit of the United States. The amount of insurance coverage you have depends on the number of accounts you have with us that are of different “ownership.” An individual account is one unique form of “ownership”; a joint account, a pay-on-death account, and a self directed qualified retirement account (e.g., an IRA) are examples of some of the others. Deposit insurance for a person’s self directed qualified retirement account is at least $250,000. Deposit insurance for the other ownerships is also at least $250,000 per interest of the owner. If you want a more detailed explanation or additional information, you may ask a Commerce banker or contact the FDIC. You can also visit the FDIC website atwww.fdic.gov and click on the Deposit Insurance link. The link includes detailed contact information as well as a deposit insurance estimator.

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    N. Fair and Accurate Credit Transaction Act of 2003

    We may report information about your account to credit bureaus. Late payments, missed payments or other defaults on your account may be reflected in your credit report.

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    II. OWNERSHIP OF ACCOUNTS

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

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    B. Account Ownership and Eligibility

    These rules apply to your account depending on the form of ownership and beneficiary designation, if any, specified on the account records. We reserve the right to refuse some forms of ownership on any or all of our accounts. We make no representations as to the appropriateness or effect of the ownership and beneficiary designations, except as they determine to whom we pay the account funds. We may discontinue offering or change eligibility for any of the account types. In the event the signature card and/or other form of resolution or authorization is unavailable or incomplete, information from our deposit system or other records may be relied upon to determine the form of ownership of the account.

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    C. Individual Personal Accounts

    You are the sole holder of the account. You may appoint an attorney-in-fact with respect to the account. Other wise, you are the only person authorized to use the account.

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    D. Joint Personal Accounts

    A personal account in the names of two or more persons is held in joint tenancy with right of survivorship and not as tenants in common. Upon the death of a joint holder, the survivor(s) agree to promptly notify us. The balance in the account belongs to the surviving account holder(s), subject to our right of setoff and security interest in the account (or right to charge the account for any debt the deceased joint holder or any surviving joint holder may have owed us). Any accounts held by husband and wife are as tenants by the entirety if this form of ownership is recognized by the account domicile state. If two or more joint holders survive, the survivors hold the account as joint tenants with right of survivorship. Some of the other rules that govern joint accounts are described in Section III B of this Agreement.

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    E. Transfers To Minors Accounts

    Accounts established under the Uniform Transfers To Minors Law, or corresponding state law, are governed by the applicable state law. We have no duty or agreement whatsoever to monitor or insure that the acts of the custodian (or successor custodian) are for the child’s benefit. The child’s SSN/TIN is used for the Backup Withholding Certification. Only one custodian and one minor are permitted on each account.

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    F. Payable On Death Accounts

    An account with payable on death beneficiary(s) (POD Account) is governed by the applicable law of the account domicile state. Accounts in Missouri are established pursuant to section 362.471 R. S. Mo. and not under the Nonprobate Transfers Law of Missouri. If the POD Account has two or more joint holders living, the account will be treated as a joint account. If there is more than one account holder, upon the death of one of the joint holders, the balance in the account belongs to the surviving account holder(s), subject to our right of set off and security interest in the account (or right to charge the account for any debt the deceased joint holder or any surviving joint holder may have owed us). A POD Account belongs to the holder(s)during their lifetimes and not to the POD beneficiary or beneficiaries. A beneficiary acquires the right to withdraw only if (1) all account holders die, and (2) the beneficiary is then living. If two or more beneficiaries are named and survive the death of all holders, these beneficiaries will own the account in equal shares, without right of survivorship. We may request proof of death of the original holder(s) and any beneficiaries and require identification from any person requesting funds from the account. Upon request for payment by any beneficiary, we will pay to all of the beneficiaries surviving at the death of the last surviving holder, the entire proceeds of the account either by check payable jointly to all these beneficiaries or by separate checks in equal shares. If the account was opened at a branch located in Kansas, the funds may be subject to a claim of the Secretary of Social and Rehabilitation Services pursuant to K.S.A. 39-709(g). Account holders may at any time remove any or all of the beneficiaries or name additional beneficiaries; provided, however, all of the account holders must agree to the change on a form acceptable to us.

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    G. Agency and Fiduciary Accounts (Including Powers of Attorney)

    Any individual or entity acting as an agent, guardian, conservator, personal representative, trustee, custodian, attorney-in-fact or in some other fiduciary capacity (“Agent”) must be designated to us as such on the signature card or other account documentation or record. We are authorized to follow the directions of an Agent regarding an account until we receive written notice that the agency or fiduciary relationship has been terminated and we have a reasonable opportunity to act on such notice, not to be less than five (5) business days, provided we may recognize such termination earlier. We are not liable for misapplication of funds from your account by your Agent. Agent or fiduciary shall be solely responsible for acting in accordance with applicable laws and the terms of any court order, trust or other document establishing and covering the agent or fiduciary relationship. We are not responsible for insuring compliance with such laws, court orders or documents. When an account is held in the name of two or more persons as Agents or in a fiduciary capacity, each authorizes the other to act independently with respect to the account. We are not required to recognize any power of attorney. If we do allow the transaction of business by its use, you and all joint account holders will be bound by the actions taken by the person holding your power of attorney. We also reserve the right to restrict the types or sizes of transactions we will permit an attorney-in-fact to conduct on a case-by-case basis and may require the attorney-in-fact to present the original power of attorney before conducting any transaction. You must notify us in writing, as provided in this Agreement, of the revocation of any power of attorney.

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    H. Business and Other Non-Personal Accounts

    Business accounts are those established by any sole proprietorship, partnership, corporation, fiduciary, limited liability company, limited liability partnership, association or other entity, other than in an individual capacity, operated for profit. Other non-personal accounts include those established by a corporation, association or other organization operated primarily for religious, philanthropic, charitable, educational, fraternal or other similar purposes and not operated for a profit; and accounts established by governmental units including the United States, any state of the United States, or any county, municipality, or political subdivision thereof, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, American Samoa, Guam or political subdivision there of.

    We may require a resolution, authorization, agreement or other documents to evidence the authority of individuals to act on behalf of the business or other non-personal account holder. We are not required to recognize any resolution or authorization that is not our form. The business or other legal entity agrees to provide us promptly a new resolution, authorization or other documentation as we may request upon any change in authority. We are authorized to follow the directions of a person designated as having authority to act on the entity’s behalf in all matters and transactions with respect to the account until we receive a written resolution or authorization effecting a change in the authorized signers and have a reasonable time to act on such change, not to be less than five (5) business days, provided we may recognize such change earlier.

    Each person whose name appears on the signature card, or any resolution or authorization, represents and agrees that such person is authorized to execute all documents in the capacity stated therein, has furnished all documents necessary to evidence that authority and will furnish any other documents in such form as we may request from time to time. If the account is under a trade name, you certify that you are doing business under that name and that no one else has any right, title or interest in that trade name. You shall indemnify us against any loss or liability, including court costs and attorneys’ fees to the extent permitted by law, arising from our acceptance for payment or credit, checks or other items drawn to the order of that trade name.

    Earnings in the form of interest or credits will be paid on the collected balance, which includes deposits of cash and checks drawn on us and non-cash items (for example, checks) for which we have received credit in accordance with schedules adopted from time to time by us. Interest will be charged on the use of uncollected funds.

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    III. GENERAL RULES GOVERNING DEPOSIT ACCOUNTS

    A. Customer Responsibilities

    1. Prompt Review of Account Statements. Statements will be mailed to you at the address shown on our deposit records or otherwise made available to you. At our option, and with no further notice to you, we may choose not to send your account statement when there is no activity on your account for one statement period. If you request that we hold your mail, you agree that we have made your statements and items available to you when the statement is issued. You must promptly review statements and any accompanying items. Notify us in writing of any dispute or difference of account for any reason, including but not limited to, any unauthorized debit, any unauthorized signature, lack of signature, alteration or other irregularity. If we make an encoding error on a deposit made by you, such error must also be reported to us. You must report any such irregularity promptly, and in no event later than 30 days after your statement and items were received or otherwise made available to you. You will be deemed to have received your statement five (5) business days after its date, absent proof of an earlier or later actual delivery date. Failure to report such irregularity within 30 days shall preclude you from recovering any amounts from us. By law, we may be relieved of any potential liability for multiple unauthorized signatures or alterations by the same wrongdoer if you do not notify us in writing within 30 days after your statement containing the first such irregularity was received or otherwise made available to you. In no case shall we be liable if items were counterfeit, forged or altered so cleverly that a reasonable person could not detect the fraud, including unauthorized use of a facsimile, electronic or imaged signature mark or symbol. No legal proceeding or action shall be brought by you against us to recover any amount alleged to have been improperly paid out of the account due to an unauthorized signature, alteration or other defect unless (1) you have given the written notice provided above, and (2)such action shall have been commenced within one (1) year after the date the statement containing such defect was received or made available to you.
    2. Claim of Loss. If you claim a credit or refund because of a forgery, alteration, or any other unauthorized withdrawal, you agree to cooperate with us in the investigation of the loss, including giving us an affidavit containing whatever reasonable information we require concerning your account, the transaction and the circumstances surrounding the loss. You will notify law enforcement authorities of any criminal act related to the claim of lost, missing, or stolen checks or unauthorized withdrawals. Your requesting that the bank delay action or engaging in informal workout arrangements will impair our rights and be considered a waiver of your claim. We will have a reasonable period of time to investigate the facts and circumstances surrounding any claim of loss. We will not be liable for special or consequential damages, including loss of profits or opportunity, or for attorney’s fees incurred by you. You agree that you will not waive any rights you have to recover your loss against anyone who is obligated to repay, insure, or otherwise reimburse you for your loss. You will pursue your rights or, at our option, assign them to us so that we may pursue them. Our liability will be reduced by the amount you recover or are entitled to recover from these other sources.
    3. Check Orders. All checks, withdrawal forms and deposit slips must be on forms obtained through us or which we approve in advance. You are responsible for verifying the accuracy of all information on such forms. Our liability, if any, for any printing errors on forms obtained through us is limited to the cost of replacement. We are not responsible for errors or losses resulting from improper printing on forms not obtained through us or approved by us in advance.
    4. Check Safekeeping. If your account provides for copies of your items to be held by us rather than returned to you, you waive any right to receive cancelled checks or other items with your statement, which will be considered to be made available to you when you receive your statement. We will keep a microfilm, digital or similar record of the front and back of each check as long as required by law. We may charge a fee for providing copies to you. We may provide copies upon written or verbal request. We have no duty to retain the original of any cancelled items. You continue to be responsible for notifying us promptly in writing of any dispute or difference of account for any reason including unauthorized signature, lack of signature, alteration, or irregularity within the time period described in Section III A 1.
    5. Customer Information. We provide for your convenience various methods by which you can obtain information on your accounts, including ATM, telephone and computer. You acknowledge that our reasonable security measures cannot absolutely ensure against “unauthorized” inquiries. You, therefore, agree that we will not be responsible for the release of information to anyone not authorized by you who has gained possession of your ATM access device or who has learned your identifying characteristics such as personal identification number (PIN) or social security number. You agree that if you give your account number to a third person by telephone or otherwise, who is seeking to sell you goods or services, that act authorizes that third person to initiate debits to the account even if a particular transaction was not authorized. You authorize us to obtain credit bureau and account information reports, verification of employment and other information we may need in connection with your accounts at any time.
    6. Change of Address. You are responsible for notifying us of any change in your address or your name. We may accept a notice of change from any joint holder on a joint account, the account holder’s agent or fiduciary or any authorized signer on a business or other non personal account. Change of address or name should be made in writing by at least one of the account holders, however, we may, solely at our option, accept a verbal change of address. Informing us of your address or name change on a check reorder form is not sufficient. We will attempt to communicate with you only by use of the most recent address you have provided to us.
    7. Notices. All notices concerning your account are effective when mailed or delivered to the address we have for you in our account records. Notice from us to any one holder of an account constitutes notice to all holders of the account. Unless otherwise provided in this Agreement, any notice you give to us must be in writing and is effective when it is actually received by us and we have a reasonable opportunity to act, not to be less than five (5) business days. Written notice to us must be sent to ATTN: Branch Manager, Commerce Bank at the address of the branch at which the account was opened. If the branch at which the account was opened has been closed, or if the account was opened by mail, telephone or electronic means, notice must be sent to Commerce Bank, ATTN: Branch Manager, 1000 Walnut, Kansas City, MO 64106. We may, in our discretion, act upon verbal notice from you except with respect to oral stop payment notices.
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    B. Joint Accounts

    Each joint holder authorizes us to deposit in the account, with or without endorsement, all checks, drafts and other instruments for the payment of money made payable to all or any joint holder. Each joint holder authorizes each other joint holder to 1)withdraw, by any means we make available, any or all of the funds on deposit; 2) make deposits to the account; 3) endorse for deposit to the joint account any item payable to any joint holder(s); 4) instruct us to stop payment on any item drawn on or debit to the account regardless of which joint holder drew the item or authorized the debit; 5) draw upon any overdraft or other line of credit which may be established in connection with the account; 6) pledge the account as security for any debts, whether individual, joint, corporate or otherwise; 7) close the account at any time; 8) appoint an agent or attorney-in-fact with respect to the account; and 9) conduct business concerning the account without the knowledge and consent of the other joint holders. We may give cash back to any one of you.

    You agree to be jointly and severally liable to us for any account deficit and service charges regardless of which of you caused the deficit or incurred the service charges, or benefited from the overdraft or charges. Each joint holder authorizes us to exercise setoff and enforce its security interest in the entire joint account, even though only one of the joint holders is the debtor. Garnishment against any joint holder(s) are subject to our right of setoff and security interest and may cause the account to be frozen or debited whether or not all joint account holders are named in the garnishment. You agree that any one joint holder may pledge the account, including certificates of deposit, and that the lien created by the pledge will survive the death of the joint holder who made the pledge. Notice to any one joint holder constitutes notice to all joint accountholders.

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    C. Deposits

    Refer to Bank’s Funds Availability Policy to determine when funds from your deposits will be available to you for withdrawal.

    1. 1. Items Deposited. We may refuse, accept for collection only, or return all or part of any deposit even if, and after, the deposit has been credited to your account. We act only as your collection agent for transmitting items through our correspondent banks or directly to the paying bank, in accordance with our customary practices and applicable law.

      We assume no responsibility beyond the exercise of due care and shall not be liable for losses caused by a correspondent’s or sub-agent’s failure to act or willful or negligent action, or for loss in transit. Credit for items deposited is provisional and subject to revocation if the item is not paid for any reason. We reserve our rights under applicable law, including without limitation, the right to accept or reject a check for deposit, to revoke a provisional settlement, charge back an account, or claim are fund of a provisional credit. We shall not be deemed to have received items sent by mail or placed in an ATM, night depository or any other type of depository until after we have received actual delivery of those items sent by mail or removed the contents from such depositories. All deposits received by us after our cutoff hour or on Saturday, Sunday or a bank holiday, including items received through the mail or removed from depositories after hours, will be deemed deposited on the next banking day. If we elect to return any deposit, notice will be mailed to you and the deposit shall cease to bear interest, if applicable, after the mailing of notice. You will be responsible for any loss or expense caused by your failure to properly identify the account to which a deposit is made or intended to be made.

      Check 21. You may not deposit any substitute check that has not previously been handled by a bank in the U.S. collection process, unless we enter into a written agreement with you to do so. This means that you cannot deposit a substitute check you create, or one that is created by another person, without such written agreement with us. If you do deposit such a substitute check, you will be responsible for any losses we sustain, and will defend and hold us harmless from any Check 21 Act warranty, indemnity or expedited re credit claim.

      Deposit of Remotely Created Checks. You agree to take back any remotely created check deposited into your account that is returned. We may reverse any credit made to your account for the remotely created check, or otherwise collect from you the amount of the remotely created check. You agree that you will not deposit a remotely created check drawn on a person’s bank account without that person’s express, verifiable authorization, and that you will maintain a record of the express verifiable authorization for 24 months from the date of the authorization.

    2. Authorization to Pay Overdrafts and Deduct Fees from Government Benefit Check and Direct Deposits. If you make deposits of government benefits to your account, whether by check or direct deposit, including but not limited to, Social Security, SSI or veterans ‘benefits, you understand and agree that once the funds are deposited they will be treated the same as any other funds in your account. This means that the funds may be applied to the payment of overdrafts and bank fees, including, but not limited to, NSF and overdraft fees, and maybe applied by setoff or security agreement to any indebtedness due to us.
    3. Verification of Deposits. Deposits and receipts are subject to subsequent verification and correction if necessary. If we determine that a deposit does not contain all items or cash claimed to be deposited, we may correct the error and adjust the account balance, even if you have already with drawn all or part of the deposit. You will have the burden of proving that our records are erroneous with respect to any disputed item or dispute over cash claimed to be deposited.
    4. Endorsements. We may accept for deposit any items payable to you or your order, even if they are not endorsed by you. We may supply any missing endorsement(s) for any item we accept for deposit or collection, and you warrant that all endorsements are genuine.

      To ensure that your deposited item is processed without delay, you must endorse it (sign it on the back) in a specific area. Your entire endorsement (whether a signature or a stamp) along with any other endorsement information (e.g. additional endorsements, ID information, driver’s license number) must fall within 1 1/2” of the “trailing edge” of a check. As you look at the front of a check, the “trailing edge” is the left edge. When you flip the check over, be sure to keep all endorsement information within 1 1/2” of that edge.

      It is important that you confine the endorsement information to this area since the remaining blank space will be used by others in the processing of the check to place additional needed endorsements and information. You agree that you will indemnify, defend, and hold us harmless for any loss, liability, damage or expense that occurs because your endorsement, a prior endorsement or information you have printed on the back of the check obscures our endorsement. We may, but are not required to, refuse to accept a check whose back is unreasonably obscured. These endorsement guidelines apply to both personal and business checks.

      We may require that certain government checks, insurance company items or other special types of checks be personally endorsed by each of the payees. You agree to reimburse us for any loss or expense it incurs because you fail to endorse an item or fail to endorse an item exactly as it is drawn.

    5. Encoding and Endorsing. If you undertake to provide our endorsement or encode the amount on items deposited, you agree to adhere to any standards which are set forth in federal and state law. You are responsible for any damages to us caused by such endorsement or encoding.
    6. Items Returned. If a deposited item is returned to us by the bank on which it was drawn, we may accept that return and charge the item back against your account without regard to whether the other bank returned the item before its midnight deadline or otherwise finally paid the item. At our option and without prior notice to you, we have the right to pursue collection of previously dishonored items, including permitting a paying bank to hold an item beyond its midnight deadline in an attempt to recover payment. You waive presentment, notice of dishonor and protest, and agree that we have no obligation to notify you of any deposited item that is returned to us. Without prior notice to you, we may charge back any item at any time before final payment, whether returned or not. We may process a copy or other evidence of the returned item in lieu of the original. Unless prohibited by applicable law, if an item deposited to your account or cashed for you has been paid by the paying bank and that bank later returns the item to us due to an allegedly forged, unauthorized or missing endorsement, claim of alteration, encoding error or other problem which in its judgment justifies reversal of credit, we reserve the right to charge back the item to your account.
    7. Return of Direct Deposit. If we are required to reimburse the Federal Government for all or any portion of any benefit payments deposited into your account through a direct deposit plan for any reason, you agree that we may, at any time and without prior notice to you, deduct the amount returned to the Federal Government from your account or from any other account you have with us, unless the deduction is prohibited by law.
    8. Foreign Currency. If we take an item payable in foreign currency for deposit or collection, you bear all exchange rate risk. We may not credit the item to your account until we receives the proceeds in U.S. dollars. Actual credit for deposits of, or payable in, foreign currency will be at the exchange rate in effect on final collection in U.S. dollars.
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    D. Withdrawals

    1. Federal Limitations on Withdrawals

      (a) Transaction Limitations. For savings and money market accounts you may make up to six transfers or withdrawals by means of a preauthorized, automatic, or telephonic transfer to another account of yours or to a third party during any calendar month (or statement cycle of at least four weeks). A preauthorized transfer includes any arrangement with us to pay a third party from your account at (i) a predetermined time; (ii) on a fixed schedule or (iii) upon oral or written orders including orders received through the automated clearing house (ACH). If the transfer or withdrawal is initiated in person, by mail, by messenger, or at an ATM then there is no limit on the number of payments that may be made directly to you, directly to us for amounts you owe us, or transfers to your other Commerce accounts you have with us. Withdrawals by phone are also unlimited if you are requesting that a check be mailed to you. Telephone instructions to transfer between accounts with us or to third parties are regarded as preauthorized transfers. If you abuse these limitations, we may close the account or, at our option, reclassify the account as a regular checking account.

      (b) Notice of Intended Withdrawal. Under federal law, we must reserve the right to require you to give us seven (7) days prior notice of your intent to withdraw funds from an interest checking, regular savings or money market account.

    2. Order of Posting. We have the right to process transactions (both deposits/credits and withdrawals/debits) in any order we decide, except to the extent limited by law, regulation or judicial authority, even if paying a particular debit results in an insufficient available balance in your account to pay one or more debits that otherwise could have been paid. In general, we determine the balance from which debits may be paid and post transactions to your account in the following order:

      BalanceWe take the current balance from the end of the previous Business Day and subtract:
      • Funds Availability and other holds (such as a garnishment)
      • Pending debits such as debit card transactions or ATM withdrawals
       
      Deposits and other credits received before the deposit cutoff timeExamples of deposits and other credits include:
      • Posted deposits such as your paycheck
      • Funds now available from pending deposits such as an ATM deposit
      • Transfers into your account such as wire transfers or ACH credits
      • Transfers into your account such as those made online or by phone
       
      Bank-initiated debitsExamples of bank-initiated debits include:
      • Monthly Service Charges (if there are sufficient funds in the account)
      • Charges for additional services such as a stop payment order
      • Overdraft or Insufficient Funds (NSF) fees
      • Returned Deposited Item fees
      highest to lowest dollar amount
      Priority DebitsExamples of priority debits include:
      • Withdrawals and checks cashed with a teller
      • Wire transfers
      • Account transfers such as those made online or by phone
      highest to lowest dollar amount
      Everyday debit card and ATM transactions (including PIN-based transactions with a Commerce credit card or ATM Card)Examples of everyday debit card and ATM transactions include:
      • One-time purchase paid with your debit card, such as at a grocery store, gas station or restaurant
      • Cash withdrawal at an ATM
      Chronological order, if known. Otherwise, lowest to highest dollar amount
      Checks, automated payments (ACH) and other debitsExamples of checks, ACH and other debits include:
      • Checks you have written that have posted to your account
      • Online Banking bill payments
      • Preauthorized fund transfers such as insurance premiums or car payments
      highest to lowest dollar amount

      Authorization Holds For Card Transactions.

      PIN Transactions. PIN-based purchases of goods or services using your Commerce Visa® Check Card (debit card), Commerce credit card or ATM Card reduce the available balance in your account for the authorization amount requested by the merchant and generally post to your account the same or next business day.

      Non-PIN transactions with your debit card. When we approve a non-PIN debit card transaction (which may or may not require your signature), we may immediately reduce the available balance in your account by the authorization amount requested by the merchant even though we have not received the transaction electronically for payment. This authorization amount will not be available to you for withdrawal or to pay debits on your account until our receipt of the transaction OR no more than three business days after the transaction date, whichever first occurs. If funds are not available for checks or other debits, you may be subject to overdraft or insufficient funds fees.

      We encourage you to keep careful records and practice good account management. This practice will help you avoid, (1) writing checks or authorizing debits, such as online bill payments or recurring preauthorized debits, without sufficient available funds, and (2) incurring the resulting fees.

      We may refuse any check or other item or debit drawn against your account or used to withdraw funds from your account if it is not on a form approved by us. We also reserve the right to refuse any check, other item or debit drawn against your account or used to withdraw funds from your account if made in a manner not specifically authorized for your account, if made more frequently or in a greater number than specifically permitted for your account, or if made in an amount less than the minimum withdrawal or transfer specifically permitted for your account.

      Check 21. You may not use any checks that contain a back ground image, latent security feature, paper stock, ink or other characteristic that interferes with our or any other bank’s ability to produce a digital image of your check. If you do, you will be responsible for any losses you or another person suffers because of the inability to produce a readable digital image of your check. You will defend and hold harmless the bank from any Check 21 Act warranty, indemnity or expedited recredit claim.

    3. Telephone Transfers. A telephone transfer of funds from your account to another account with us, if otherwise arranged for or permitted, may be made by the same persons and under the same conditions generally applicable to withdrawals made in writing. Telephone instructions to transfer between accounts with us or to third parties are regarded as preauthorized transfers for purposes of the limitations set forth in Section III D 1(a).
    4. Insufficient Funds/Overdrafts. We are not obligated to pay an item presented if your account does not contain sufficient available funds. The presentment of an item for which there are insufficient funds(NSF) in the account will result in a service charge regardless of whether we, at our option, pay or dishonor the item. In addition, if payment is not received for any deposited item, the amount of the item will be charged back to your account and may create an overdraft for which you will be charged a fee. We are not required to give you prior notice of an NSF check. You agree to deposit, or pay on demand, sufficient funds to cover the amount of any overdraft together with any overdraft fees and to reimburse us for any costs we incur in collecting the overdraft from you including, without limitation, attorneys’ fees and the costs of litigation to the extent permitted by law. Our payment of any item or other debit that causes an overdraft on one or more occasions does not obligate us to allow such overdrafts on any future occasion. You should not rely on us to honor an overdraft.
    5. Determination of Account Balance. Your account may be debited on the day an item is presented by electronic or other means, or at an earlier time based on notification received by us that an item drawn on your account has been deposited for collection in another financial institution. We may determine the amount of available funds in your account for the purpose of deciding whether to return an item for insufficient funds at any time between the receipt of such presentment or notice and the time we return the item or send notice in lieu of return. We only need to make one such determination.
    6. Fraud Detection; Return of Items or Debits. You agree that we may utilize fraud detection systems, as we deems necessary or desirable, to review items or other debits presented for payment either in person or through the bank collection system. We may return or refuse to pay items or debits that reasonably appear to be forged, counterfeit, altered, improperly endorsed, missing endorsement, improperly encoded or otherwise irregular or that are outside criteria set by us to detect fraud – such as check numbers or dollar amounts outside the range for the account. You agree that our refusal to pay or the return of such items or debits, when based upon fraud detection criteria, will not be considered wrongful. We will not be liable for refusing to honor your checks or other signed instructions if we believe in good faith that the signature appearing on such checks or instructions is not genuine.
    7. Automated Processing of Items. Because of the automated nature of processing a high volume of items, you agree that we do not fail to exercise ordinary care if we examine items pursuant to a random sampling of items drawn on all accounts or a procedure that meets certain minimum criteria that we may establish for inspection.
    8. Facsimile Signatures. If you have authorized the use of a facsimile, electronic or imaged signature, mark, symbol or other non –handwritten authorization (“facsimile”), we may honor any item or other signed instruction that bears or appears to bear your facsimile or any facsimile previously affixed to any item drawn on your account, which was accepted and paid without timely objection, even if it was made by an unauthorized person or with a counterfeit facsimile device.

      You must notify us at once if you suspect that your facsimile is being or has been misused. You accept sole responsibility for maintaining control over your facsimile equipment.

    9. Multiple Signers. If we establish an account that purports to require two or more signatures on any items drawn on the account, you acknowledge that such provision is solely for your personal or internal control purposes and shall not be binding on us. Checks or other debits purporting to require more than one signature shall not be binding onus. When an account is held in the name of two or more persons as agents, trustees, personal representatives or other fiduciary capacity, each authorizes the other to draw items, make withdrawals and otherwise act on the account.
    10. Stale-Dated Items. We are not obligated to, but may at our option, pay a check, other than a certified check, presented for payment more than six months after its date without notice to you. You agree that we are acting in good faith so long as there is no stop payment order in effect at the time the item is paid. If you do not want us to pay a stale-dated item, you must place a stop payment order on the item in the manner we have described elsewhere.
    11. Postdated Items. Unless otherwise required by law, we reserve the right to honor or dishonor postdated items. An item is post-dated if it is dated after the date it is presented for payment. We will not be liable for any damages resulting from payment or dishonor of a postdated item presented for payment before the date of the item.
    12. Restrictive Legends. The automated processing of the large volume of items we receive prevents us from inspecting or looking for special instructions or “restrictive legends.” Examples of restrictive legends are “must be presented within 90 days” or “not valid for more than $1,000.00.” You agree that we may pay or refuse to pay such items, in our sole discretion, even though the restriction or condition has not been met. We are not responsible for any losses, claims, damages, or expenses that result from your placement of these or other special instructions on your checks.
    13. Stop Payment Orders. The telephone number and address for placing, renewing or cancelling a stop payment order are: 1-800-453-2265; Commerce Bank, P O Box 411635, Creve Coeur, MO 53141.

      We may honor a stop payment order on an item, preauthorized electronic fund transfer or other Automated Clearing House (ACH) debit from any account holder or authorized signer, regardless of who signed or authorized the item or debit. We are not responsible for determining whether the item or debit was paid before the stop payment order became effective. We may refuse a request to cancel a stop payment order unless given by the account holder or authorized signer who placed the stop payment order.

      You must provide us with all information necessary to effect the stop payment. Because stop payment orders are handled by computers, to be effective, your stop payment order must precisely identify the item number, date, amount, and the payee/originator. Any missing or incorrect information may result in payment of the item or debit. We shall not incur any liability arising out of payment of an item or debit due to missing or incorrect information supplied by you, including the return of other items or debits due to insufficient funds.

      1. Checks, Drafts and Negotiable Orders of Withdrawal. If your account is one on which checks, drafts or negotiable orders of withdrawal may be drawn, you may ask us to stop payment on any such items which have not been cashed or certified. You may not place a stop payment order on a cashier’s check.

        Oral and written stop payment orders for checks, drafts or negotiable orders of withdrawal will remain in effect for a minimum of 185 days from the effective date. At our option, we may keep the stop payment order effective for a longer period, unless you cancel it. You must contact us at the telephone number or address given above if you wish to renew or cancel a stop payment order. We may ask you to confirm this request in writing.

        We must receive an order to place, renew or cancel a stop payment in time to give us a reasonable opportunity to act on it before our stop-payment cutoff time, which is 10:00 a.m. on the banking day following the banking day we receive the item.

      2. Preauthorized Electronic Fund Transfers Affecting Consumer Accounts. A preauthorized electronic fund transfer is an electronic fund transfer authorized in advance to recur at substantially regular intervals. For the terms and disclosure related to stopping payment on preauthorized electronic funds transfers from an account held primarily for personal, family or household purposes (such as an ACH debit from your account for an insurance premium) refer to our Federal Electronic Fund Transfer Act Disclosure. We must receive your request 3 business days or more before the payment is scheduled to be made. If you wish to stop all future payments to a specific payee/originator, we may also require you to put your request in writing and provide us with a copy of your written revocation of authorization with that specific payee/originator and provide it to us within 14 days after your call.

        Oral and written stop payment orders for non-recurring ACH debits will remain in effect (i) until return of the debit is complete or where the stop payment applies to all future payments to a specific payee/originator, the return of all such debits; or (ii) until cancelled by you.

      3. Other ACH Debits Affecting Consumer Accounts. You may stop payment on an ACH debit that is not a preauthorized electronic fund transfer by calling or writing us at the phone number or address given above in time to give us a reasonable opportunity to act on your request and prior to payment of the debit. Such payments would not be authorized in advance to recur at regular intervals, but require you to initiate each single or multiple electronic payments from your account. If you wish to stop all future payments to a specific originator, we may also require you to put your request in writing and provide us with a copy of your written revocation of authorization with that specific originator and provide it to us within 14 days after your call.

        Oral and written stop payment orders for non-recurring ACH debits will remain in effect (i) until return of the debit is complete or where the stop payment applies to all future payments to a specific originator, the return of all such debits; or (ii) until cancelled by you.


      4. ACH Debits Affecting Non-Consumer Accounts. You may stop payment on an ACH debit by calling or writing us at the phone number or address given above in time to give us a reasonable opportunity to act. Oral or written stop payment orders will be in effect for a minimum of 185 days from the effective date. A stop payment on an ACH debit on a non-consumer account is only effective with respect to one transaction.

        If you stop payment on an item or other debit and we incur any damages or expenses because of the stop payment, you agree to indemnify us for those damages or expenses, including attorneys’ fees. If we pay an item or debit over a valid and timely stop order, you agree to sign a statement describing the dispute with the payee or originator and, if we re-credit your account, to transfer to us all of your rights against the payee (or other holder of the item) or originator, and to assist us in legal action taken against that person. Our liability for paying an item or non-recurring ACH subject to a proper and timely stop payment order is limited to the lesser of the amount of the item or debit or the actual loss suffered, which you must prove to our satisfaction. If we pay a preauthorized electronic fund transfer over a valid stop payment order, we are liable for your losses or damages. We are not liable for paying an item or debit if a previous stop payment order has not been renewed.

    14. Check Cashing Requirements. We may impose additional requirements we deem necessary on a payee or other holder who presents for cash an item drawn on your account, which is otherwise properly payable. If that person fails or refuses to satisfy such requirements, our refusal to cash the item will not be considered wrongful. Subject to applicable law, such requirements may include, but are not limited to, physical and/or documentary identification requirements (for example, collecting a thumbprint), check cashing fees and requirements that such items may only be cashed at specified locations.
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    E. Wire and ACH Transactions

    1. Governing Laws and Rules. From time to time, you may be a party to an Automated Clearing House (ACH) entry or wire transfer, which may be credited to or charged against your account. If you have signed a Treasury Services Agreement and/or Wire Transfer or Automated Clearing House Services Agreement with us, the transaction will be subject to the terms of those agreements.

      Wire transfers are subject to the laws, regulations or rules then in effect governing the use of any system through which the funds may be transmitted including, but not limited to, Article 4A of the Uniform Commercial Code and Federal Reserve Board Regulation J with regard to Fedwire, the Clearing House Interbank Payments System (CHIPS) and the Society for Worldwide Interbank Financial Telecommunications(SWIFT). These provisions generally apply to internal telephone transfers as well as external transfers. These rules apply to debits and credits to and from personal, business and other non-personal accounts. If a portion of a fund transfer is governed by the Federal Electronic Fund Transfer Act, that portion will be subject to the terms of our Regulation E disclosure. We may deduct our fee for handling incoming and outgoing wire transfers from the amount of the transfer.

      Transactions through the Automated Clearing House (ACH) are governed by the National Automated Clearing House Association(NACHA) Operating rules and any local ACH operating rules then in effect.

    2. Notice. We will notify you of the receipt of any ACH entry or wire transfer in your account statement, but will not provide next-day notice or any other notice. If you believe we have failed to properly credit a transfer to you, you must promptly notify us of all relevant facts.
    3. Final Payment/Reversal of Erroneous Credit Entries. Any credit given you by us resulting from an ACH credit entry or wire transfer credit is provisional until we receive final payment. If we do not receive final payment, you agree that we may reverse the credit to your account or that you will otherwise reimburse us if funds in your account are not sufficient. If we receive satisfactory documentation that a credit entry was made in error, or for an erroneous amount, we may debit your account for the amount erroneously credited, or you agree to otherwise reimburse us if funds are insufficient. In the event the payment does not become final, the originator will not be deemed to have paid you the amount of the credit.
    4. Use of Account Numbers. You agree that payment for ACH or wire credit transfers may be made solely by reference to the account number of the recipient. We are not obligated to determine whether a discrepancy exists between the name and the account number shown on the transfer information.
    5. Cancellation or Amendment of Wire Transfer Orders. The originator of a wire transfer payment order may cancel or amend any payment order only if the cancellation or amendment is received by our Wire Transfer Department in a time and manner in which it has a reasonable opportunity to act, which is not less than two (2) hours before we execute the payment order.
    6. Compensation. If you are entitled to compensation for delay or improper completion of an ACH entry or wire transfer, our liability will be limited to the payment of interest for a period of time not exceeding the lesser of sixty (60) days or the period between the date of the error and the date of the correction. Any such compensation will be paid at our discretion by either 1) adjusting your account balance to reflect the average balances you would have had but for the error, or 2) direct payment in an amount equal to interest at the average Federal Funds Rate at the Federal Reserve Bank of New York for that period.
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    F. Setoff and Security Interest

    If you ever owe us money as borrower, guarantor or otherwise, and it becomes due, we have the right under the law (called “set off”) and under this Agreement (by which you grant us a security interest in your deposit accounts) to use the money from your account to pay the debt. In the case of a partnership or joint account, each partner or joint owner agrees that we may use the money in the account to satisfy any one of their individual obligations. Similarly, each partner or joint owner agrees that we may use the money in their individual accounts to satisfy obligations in the joint account or partnership account. The indebtedness, now or in the future which you owe to us, either individually or jointly, may be charged against any deposit account, including certificates of deposit before or after maturity, in your name whether in sole ownership or as a joint tenant or as tenants by the entirety. We may use the funds to pay the debt even if withdrawal results in an interest penalty or dishonor of checks. We will not be liable for dishonoring items where our exercise of the right of setoff and security interest results in insufficient funds in the account. The security interest you have granted us by this Agreement is consensual and is in addition to our right to setoff. This right of setoff and security interest may not apply if (a) the account is an Individual Retirement Account or other tax-deferred retirement account, (b) the debt is created by a consumer credit transaction under a credit card plan or (c) you are an account holder in a representative capacity.

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    G. Legal Actions Affecting Your Account

    An account may be subject to legal process such as a subpoena, restraining order, search warrant, writ of attachment or execution, levy, garnishment or similar court or administrative order (termed “legal actions” in this section).

    In these cases, we shall not be liable to you for withdrawing funds or restricting the account even if such action leaves insufficient funds to pay checks or other debits. Such legal actions may cause the account to be frozen or debited whether or not all joint owners are named on the legal action. With respect to checks, our cutoff hour under Section 4-303 of the Uniform Commercial Code for legal process is 10 a.m. of the banking day following the banking day we receive the check. Any legal action against the account is subject to our right of set off and security interest. Our standard fees to research and copy documents and other expenses, including our administrative and attorney’s fees, incurred in complying with legal actions may be charged to your account without prior notice to you, unless limited or prohibited by law. We may release account information and documentation in response to legal actions without notice to account holder, unless prohibited or limited by law.

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    H. Inactive Accounts/Unclaimed Property

    Accounts (other than certificates of deposits) in which no deposit (excluding interest credits)or withdrawal has been made for 12 months (18 months if regular savings) are considered inactive and shall, at our option, cease to earn any further interest. Unless otherwise prohibited by law, we may charge inactive account fees on inactive accounts in addition to regular maintenance and other applicable fees, even if other fees had previously been waived. Unless otherwise required by applicable law, you will not be entitled to recover any such fees or unpaid interest in the event that you reestablish contact with us. Funds in inactive accounts may be turned over to the state as unclaimed property under applicable law. If your funds are surrendered to the state, you may be able to reclaim them, but your claim must be presented to the state. Once your funds are surrendered, we no longer have any liability or responsibility with respect to the funds.

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    I. Assignments

    No assignment of an account shall be binding on us unless and until a control agreement indicating the name and address of assignee, and in form satisfactory to us, is signed by you and acknowledged by our authorized officer. Unless we agree otherwise in writing, any rights of an assignee will be subject to our right of setoff or prior security interest. We have no obligation to notify you or any other person before disbursing any funds from your account in accordance with what we in good faith believe to be the terms of the assignment. We shall have the right to set off against the account any indebtedness matured or unmatured of you or any assignee if we deem ourselves insecure.

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    J. Personal Interest Checking and Personal and Business Non-Interest Checking/Accounting Procedures

    For regulatory accounting purposes, your account may be divided into two sub-accounts: a checking sub-account and a money market sub-account. These sub-accounts are treated as a single account - the interest or non-interest checking account - for purposes of interest payments (if applicable), minimum balance requirements, fees and charges and your account access. Your account statement and other records of your account activity (e.g. ATM receipts) will reflect this account as a single account and will not reflect the sub-accounts or transfers between sub-accounts in any way. If you have interest checking, both sub-accounts pay an identical interest rate and annual percentage yield on account balances. If you have non-interest checking, neither sub-account will pay interest on account balances. You may access the money market sub-account only indirectly through transactions on your checking sub-account.

    At various times during each statement cycle, if your checking sub-account balance exceeds a threshold amount, we may transfer all funds in excess of that amount into the money market sub-account. As your transactions against the account reduce the checking sub-account balance below the threshold, we will transfer funds back into the checking sub-account. We may make up to six transfers from the money market sub-account into the checking sub-account per statement cycle. Upon the sixth such transfer in a statement cycle, we will transfer the entire balance of the money market sub-account to the checking sub-account. We may repeat this process each statement cycle. We set the balance threshold and may change it at any time at our discretion.

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    IV. FUNDS AVAILABILITY POLICY

    Our policy is to make funds from your deposits to checking and interest checking accounts available to you on the next business day after the banking day we receive your deposit. Electronic direct deposits will be available on the day we receive the deposit. Once they are available, you can withdraw the funds in cash and we will use the funds to pay checks that you have written.

    For the purpose of determining the availability of your deposits, everyday is a business day except Saturdays, Sundays, and federal holidays. If you make a deposit before the cut-off time for provisional credit on a business day that we are open, we will consider that day to be the day of your deposit. The cut-off time for a branch is at branch closing. Although some branches may have later closing/cut-off times, 4:00 p.m. is the earliest cut-off time that could apply. The cut-off time for Commerce ATMs is 7:00 p.m. However, a deposit made after the cut-off time on a business day; on a Saturday, Sunday or federal holiday; or on a business day that we are not open, shall be treated as though it were made on the next business day we are open.

    Longer Delays May Apply. Funds you deposit by check may be delayed for a longer period under the following circumstances:

    • You are a new customer (see special rules below).
    • We believe a check you deposit will not be paid.
    • You deposit checks totaling more than $5,000 on any one day.
    • You redeposit a check that has been returned unpaid.
    • You have overdrawn your account repeatedly in the last six months.
    • There is an emergency, such as failure of communications or computer equipment.

    If your ability to withdraw funds is delayed beyond the next business day, we will notify you and tell you when the funds will be available. They will generally be available no later than the seventh business day after the day of your deposit.

    Special Rules for New Accounts. If you are a new customer, the following special rules will apply during the first 30 days your account is open.

    Funds from electronic direct deposits to your account will be available on the day we receive the deposit. Funds from deposits of cash, wire transfer, and the first $5,000 of a day’s total deposits of cashier’s, certified, tellers, traveler’s; and federal, state and local government checks from the state in which we are located will be available on the first business day after the day of your deposit if the checks are payable to you. The excess over $5,000 may be delayed until generally no later than the seventh business day after the day of your deposit.

    Funds from all other check deposits will generally be available on the next business day after the day of your deposits unless we invoke a delay because you are a new customer or for the other reasons set forth in the section entitled “Longer Delays May Apply” above.

    Other Provisions. If a check or item is accepted on a collection basis, the proceeds usually will not be credited to your account until final collection. Checks with documents attached or accompanied by special instructions are not subject to the availability schedule set forth in this disclosure and will be accepted on a collection basis only. Checks drawn on or payable through depository institutions located outside the United States, or payable in foreign currency, are also excluded from the stated availability schedule.

    Although your deposit may or may not be available for withdrawal, there are different rules as to when interest begins to accrue on your interest-bearing account. These rules are described in a separate brochure. Also, there may be different rules as to how and when deposits are considered in assessing fees and charges on your account.

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    V. FEDERAL ELECTRONIC FUND TRANSFER ACT DISCLOSURE
        ATM CARD AGREEMENT

    Electronic fund transfers include transactions that are initiated by means of an automated teller machine card (ATM Card, referred to in this Agreement as “card”) preauthorized automatic electronic fund transfers, such as social security or payroll direct deposit, or insurance premium or bill payment and/or electronic transfers made using information from a check (ARC or POP). Paragraphs A and C below apply to customers with ATM cards. Paragraphs B and C apply to customers who have preauthorized electronic fund transfers but do not have an ATM Card.

    A. ATM Card. Each cardholder agrees to the following terms and conditions which are the contract governing the issuance and use of your card. The agreements that apply to your checking, interest checking, regular savings, and savings with limited check writing privileges (money market type) accounts, apply to all ATM transactions made on these accounts. You agree that all accounts accessed by the card must have the same common ownership or liability as the card. The card is our property and we may revoke the card at any time without cause or notice. You must surrender a revoked card and you may not use an expired or revoked card. You will notify us if the card is lost or stolen. We may change the terms of this agreement without notice, unless required by law.

    Disclosure of Consumer’s Liability for Unauthorized Transfers and Disclosures of Advisability of Prompt Reporting. Tell us AT ONCE if you believe your card has been stolen or lost. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account plus your maximum overdraft line of credit. If you tell us within 2 business days after you learn of the loss or theft of your card, you can lose no more than $50.00 if someone used your card without your permission.

    If you do NOT tell us within 2 business days after you learn of the loss or theft of your card, and we can prove we could have stopped someone from using your card without your permission if you had told us, you could lose as much as $500.

    Also, if your statement shows transfers that you did not make, including those made by card, code or other means, tell us at once. If you do not tell us within 60 days after the statement was mailed to you, you may not get back any money you lost after the 60 days if we can prove that we could have stopped someone from taking the money if you had told us in time.

    If a good reason (such as a long trip or a hospital stay) kept you from telling us, we will extend the time periods. Disclosure of Types of Available Transfers and Limits on Transfers.

      (1) Account Access. You may use your card to:
      • Withdraw cash from, deposit money in, transfer funds between, or learn the balances in your checking, regular savings or savings with limited check writing privileges (money market type) accounts.
      • Make payments from your checking, regular savings, savings with limited check writing privileges (money market type) accounts in the amounts you request to us or third parties as we may permit.
      • Make cash advances on your Commerce credit cards for cash withdrawals or for deposit to your checking account.
      • Pay for purchases at places that have agreed to accept transactions on the networks utilized by us.
      • For transactions occurring outside of the United States, the nature of which is unspecified to us, we will apply the transaction to accounts in the following order: checking, savings with limited check writing privileges (money market type), regular savings, Commerce VISA® or Commerce MasterCard®. Some of these services may not be available at all terminals.
      (2) Electronic Check Conversion. You may authorize a merchant or other payee to make a one-time electronic payment from your checking account using information from your check to:
      • Pay for purchases
      • Pay bills

    Limitation on Frequency of Transfers. There are no limitations on the number of transfers that can be made during any time period to or from any account, except as provided by federal regulations limiting preauthorized transfers. By federal regulation, you are limited during any statement cycle to 6 preauthorized transfers if the account is a savings account with limited check writing privileges (money market type accounts).

    Limitation on Dollar Amount of Transfers. The balance available for authorizing purchases and cash withdrawals is the lesser of 1) your available account balance, plus any credit available through an overdraft protection line of credit (CheckingPlus) or through any overdraft authorized by us in our sole discretion, OR 2) daily dollar limitations. For cash advances against a Commerce Bank credit card, you may withdraw cash to the lesser of your available credit line or daily dollar limitations. In addition, daily withdrawal frequency limitations may apply to cash advances. Dollar limitations may differ at ATMs other than ours.

    Point-of-Sale Transactions. Your ATM Card can be used for debit card transactions using your PIN. The use of your card to purchase goods and services from merchants constitutes a simultaneous withdrawal from and/or demand upon your checking account, even though the transaction may not actually be posted to your account until a later date. Any person honoring your card may be required to obtain approval or authorization for any transaction. Transactions with your card will be posted to your account in the order and with the same legal effect as checks and other debits drawn on your account. You may use your card only in the manner and for the purposes authorized by this Agreement. We may recognize a transaction even if we have not authorized it, but that does not mean we will authorize the same type of transaction again. You do not have the right to stop payment on any transaction originated by use of your card, except recurring preauthorized transfers as described in this Agreement.

    Overdrafts. You are responsible for all authorized transactions initiated by use of your card. If a negative balance (overdraft) in your checking account results from the use of the card, you will pay us on demand this negative balance and our then current charge for overdrafts. If you have an overdraft line of credit (CheckingPlus) for an account, you are bound by the rules and regulations which apply to that credit privilege. In addition, if your checking account is closed before transactions are posted you will pay us on demand the outstanding amount.

    Disclosure of Charges for Transfers or Right to Make Transfers. With the following exceptions, there will be no charge for validation of your card or for any transfers initiated by the use of your card at Commerce Bank ATM machines. If your account is a regular savings account and you make more than 3 withdrawals or transfers during the statement cycle, we will charge $3 for each withdrawal or transfer over 3. We will charge you $2 for each transfer, withdrawal, or balance inquiry you make at ATMs other than Commerce’s; however, there will be no ATM charge by us for credit card cash advances.

    Fees By Others. When you use an ATM not owned by us you may be charged a fee by the ATM operator (or any network used) for a transaction or for a balance inquiry even if you do not complete a fund transfer.

    Disclosures of Right to Receive Documentation of Transfers. Terminal Receipts. You will get a receipt at the time you make a transfer to or from your account using one of our ATMs.

    Preauthorized Credits. If you have arranged to have direct deposits made to your account at least once every 60 days from the same person or company, you can call us at the phone number listed in Section D to find out whether or not the deposit has been made.

    Periodic Statement. You will get a monthly statement if you have an account upon which checks or drafts may be drawn. You will get a monthly statement on your regular savings account if there are electronic transfers during the month. In any case you will get a regular savings statement at least quarterly.

    Disclosure of Our Liability for Failure to Make Transfers. If we do not complete a transfer to or from your account on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages. However, there are some exceptions. We will not be liable, for instance:

    • If through no fault of ours, you do not have enough money in your account to make the transfer.
    • If the transfer would go over the credit limit on your overdraft line.
    • If the ATM where you are making the transfer does not have enough cash.
    • If the terminal or system was not working properly and you knew about the breakdown when you started the transaction.
    • If circumstances beyond our control (such as flood or fire) prevent the transfer, despite reasonable precautions that we have taken.
    • There may be other exceptions stated in our agreement with you.
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    VI. NOTICE OF ATM/NIGHT DEPOSIT FACILITY USER PRECAUTIONS

    As with all financial transactions, please exercise discretion when using an automated teller machine (ATM) or night deposit facility. For your own safety, be careful. The following suggestions may be helpful:

    1. Prepare for your transactions at home (for instance, by filling out a deposit slip) to minimize your time at the ATM or night deposit facility.
    2. Mark each transaction in your account record, but not while at the ATM or night deposit facility. Always save your ATM receipts. Don't leave them at the ATM or night deposit facility because they may contain important account information.
    3. Compare your records with the account statements you receive.
    4. Don't lend your ATM card to anyone.
    5. Remember, do not leave your card at the ATM. Do not leave any documents at a night deposit facility.
    6. Protect the secrecy of your Personal Identification Number (PIN).Protect your ATM card as though it were cash. Don't tell anyone your PIN. Don't give anyone information regarding your ATM card or PIN over the telephone. Don't write your PIN where it can be discovered. For example, don't keep a note of your PIN in your wallet or purse.
    7. Prevent others from seeing you enter your PIN by using your body to shield their view.
    8. If you lose your ATM card or if it is stolen, promptly notify us. You should consult the other disclosures you have received about electronic fund transfers for additional information about what to do if your card is lost or stolen.
    9. When you make a transaction, be aware of your surroundings. Look out for suspicious activity near the ATM or night deposit facility, particularly if it is after sunset. At night, be sure that the facility (including the parking area and walkways) is well lighted. Consider having someone accompany you when you use the facility, especially after sunset. If you observe any problem, go to another ATM or night deposit facility.
    10. Don't accept assistance from anyone you don't know when using an ATM or night deposit facility.
    11. If you notice anything suspicious or if any other problem arises after you have begun an ATM transaction, you may want to cancel the transaction, pocket your card and leave. You might consider using another ATM or coming back later.
    12. Don't display your cash; pocket it as soon as the ATM transaction is completed and count the cash later when you are in the safety of your own car, home, or other secure surrounding.
    13. At a drive-up facility, make sure all the car doors are locked and all of the windows are rolled up, except the driver's window. Keep the engine running and remain alert to your surroundings.
    14. We want the ATM and night deposit facility to be safe and convenient for you. Therefore, please tell us if you know of any problem with a facility. For instance, let us know if a light is not working or there is any damage to a facility. Please report any suspicious activity or crimes to both the operator of the facility and the local law enforcement officials immediately.

    B. Preauthorized Electronic Fund Transfers.

    Disclosure of Consumer’s Liability for Unauthorized Transfers and Advisability of Prompt Reporting.

    If your statement shows transfers that you did not make, tell us at once. If you do not tell us within 60 days after the statement was mailed to you, you may not get back any money you lost after the 60 days if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason (such as a long trip or a hospital stay) kept you from telling us, we will extend the time periods.

    Disclosure of Types of Available Transfers and Limits on Transfers.

    • 1) Account Access. You may use your account to:
      • Transfer preauthorized credits or direct deposits to your account.
      • Transfer preauthorized debits or payments from your account.

    • (2) Electronic Check Conversion. You may authorize a merchant or other payee to make a one-time electronic payment from your checking account using information from your check to:
      • Pay for purchases
      • Pay bills

    Limitation on Frequency of Transfers. There are no limitations on the number of transfers that can be made during any time period to or f rom any account, except as provided by federal regulations limiting preauthorized transfers. By federal regulation, you are limited during any statement cycle to 6 preauthorized transfers if the account is a savings account with limited check writing privileges (money market type accounts).

    Limitations on Dollar Amount of Transfers. The balance available for authorizing debits or payments from your account is your available account balance, plus any credit available through an overdraft protection line of credit (CheckingPlus) or through any overdraft authorized by us in our sole discretion.

    Disclosure of Charges for Transfers or Right to Make Transfers. There are no charges for any transfers or for the right to make transfers with the exception that if your account is a regular savings account and you make more than 3 withdrawals or transfers during the statement cycle, we will charge $1 for each withdrawal or transfer over 3.

    Disclosure of Right to Receive Documentation of Transfers. Preauthorized Credits. If you have arranged to have direct deposits made to your account at least once every 60 days from the same person or company, you can call us at the phone number listed in Section D below to find out whether or not the deposit has been made.

    Periodic Statements. You will get a monthly statement if you have an account upon which checks or drafts may be drawn. If you have a regular savings account and there are transfers during the month you will get a monthly statement. In any case you will get a regular savings statement at least quarterly.

    Disclosure of Our Liability for Failure to Make Transfers. If we do not complete a transfer to or from your account on time or in the correct amount according to our agreement with you, we will be liable for your losses and damages. However, there are some exceptions. We will not be liable, for instance:

    • If, through no fault of ours, you do not have enough money in your account to make the transfer.
    • If the transfer would go over the credit limit on your overdraft line.
    • If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken.
    • There may be other exceptions stated in our agreement with you.

    C. Other Disclosures Applicable to All Electronic Fund Transfers

    Disclosure of Consumer’s Liability for Unauthorized Transfers and Advisability of Prompt Reporting. Tell us AT ONCE if you believe that an electronic fund transfer has been made without your permission using information from your check. If you do not tell us within 60 days after the statement was mailed to you, you may not get back any money you lost after the 60 days if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason (such as a long trip or a hospital stay) kept you from telling us, we will extend the time periods.

    Disclosure of What Constitutes Our Business Day. Our business days are Monday through Friday. Federal holidays are not included.

    Disclosure of Account Information to Third Parties. We will disclose information to third parties about your account or the transfers you make:

    • Where it is necessary for completing transfers, or
    • In order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant, or
    • In order to comply with government agency or court orders, or
    • If you give us permission.

    Disclosure of Right to Stop Payment of Preauthorized Transfers. Procedures for Doing So, Right to Receive Notice of Varying Amounts, Our Liability for Failure to Stop Payment.

    Right to Stop Payment and Procedure for Doing So. If you have told us in advance to make regular payments out of your account, you can stop any of these payments. Here’s how:

    Call us or write us at the phone number or address listed in Section D in time for us to receive your request 3 business days or more before the payment is scheduled to be made. If you call, we may also require you to put your request in writing and get it to us within 14 days after your call.

    Notice of Varying Amounts. If these regular payments may vary in amount, the person you are going to pay will tell you, 10 days before each payment, when it will be made and how much it will be. You may choose to get this notice only when the payment would differ by more than a certain amount from the previous payment, or when the amount would fall outside certain limits that you set.

    Liability

    • Failure to Stop Payment of Preauthorized Transfers. If you order us to stop one of these payments 3 business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages.

    Disclosure of Error Resolution Procedures. In Case of Errors or Questions About Your Electronic Transfers Telephone us or Write us at the phone number or address listed in Section D as soon as you can, if you think your statement or receipt is wrong or if you need more information about a transfer listed on the statement or receipt. We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared.

    • Tell us your name and account number.
    • Describe the error or transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information.
    • Tell us the date, type and dollar amount of the suspected error.

    If you tell us orally, we may require that you send your complaint or question in writing within 10 business days.

    We will determine whether an error occurred within 10 business days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 calendar days to investigate your complaint or question. If we decide to do this, we will credit your account within 10 business days for the amount you think is in error so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account. For errors involving new accounts, point-of-sale, or foreign-initiated transactions, we may take up to 90 days to investigate your complaint or question. For new accounts, we may take up to 20 business days to credit your account for the amount you think is in error.

    We will tell you the results within three business days after completing our investigation. If we decide that there was no error, we will send you a written explanation. You may ask for copies of documents that we used in our investigation.

    D. Telephone Number and Address To Be Notified in Event of Unauthorized Transfer

    If you believe your card has been lost or stolen, or that someone has transferred or may transfer money from your account without your permission, call: 1-800-453-2265 or write: Commerce Bank, P. O. Box 411635, Creve Coeur, MO 63141. You should also call the number or write at the address above if you believe a transfer has been made using the information from you check without your permission.

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    VII. SUBSTITUTE CHECK POLICY DISCLOSURE

    Substitute Checks and Your Rights

    What is a substitute check?
    To make check processing faster, federal law permits banks to replace original checks with “substitute checks.” These checks are similar in size to original checks with a slightly reduced image of the front and back of the original check. The front of a substitute check states: “This is a legal copy of your check. You can use it the same way you would use the original check.” You may use a substitute check as proof of payment just like the original check.

    Some or all of the checks that you receive back from us may be substitute checks. This notice describes rights you have when you receive substitute checks from us. The rights in this notice do not apply to original checks or to electronic debits to your account. However, you have rights under other law with respect to those transactions.

    What are my rights regarding substitute checks?
    In certain cases, federal law provides a special procedure that allows you to request a refund for losses you suffer if a substitute check is posted to your account (for example, if you think that we withdrew the wrong amount from your account or that we withdrew money form your account more than once for the same check). The losses you may attempt to recover under this procedure may include the amount that was withdrawn from your account and fees that were charged as a result of the withdrawal (for example, bounced check fees).

    The amount of your refund under this procedure is limited to the amount of your loss or the amount of the substitute check, whichever is less. You also are entitled to interest on the amount of your refund if your account is an interest-bearing account. If your loss exceeds the amount of the substitute check, you may be able to recover additional amounts under other law.

    If you use this procedure, you may receive up to $2,500 of your refund (plus interest if your account earns interest) within 10 business days after we received your claim and the remainder of your refund (plus interest if your account earns interest) not later than 45 calendar days after we received your claim.

    We may reverse the refund (including any interest on the refund) if we later are able to demonstrate that the substitute check was correctly posted to your account.

    How do I make a claim for a refund?
    If you believe that you have suffered a loss relating to a substitute check that you received and that was posted to your account, please contact us at:
    Commerce Bank,
    Attn: Expedited Recrediting,
    P.O. Box 419248,
    Kansas City, MO 64141

    You must contact us within 40 calendar days of the date that we mailed (or otherwise delivered by a means to which you agreed) the substitute check in question or the account statement showing that the substitute check was posted to your account, whichever is later. We will extend this time period if you were not able to make a timely claim because of extraordinary circumstances.

    Your claim must include —

    • A description of why you have suffered a loss (for example, you think the amount withdrawn was incorrect);
    • An estimate of the amount of your loss;
    • An explanation of why the substitute check you received is insufficient to confirm that you suffered a loss; and
    • A copy of the substitute check and/or the following information to help us identify the substitute check: The check number, the name of the person to whom you wrote the check, and the amount of the check.
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