Agreement & Policies
 

Deposit Account Agreement
Electronic Fund Transfer Agreement
Funds Availability Policy
Discretionary Overdraft Privilege Policy
Discretionary Overdraft Privilege Disclosure

Effective March 1, 2008

 
Farmington Savings Bank
Deposit Account Agreement
 
 
"You" and "Your" refer to anyone who signs the signature card for any deposit account.  These terms also refer to any person or entity on whose behalf the account is opened.  "We," "us," and "our" refer to Farmington Savings Bank. “Check" means a check or other non-cash item, other than an electronic fund transfer.
   
1. GENERAL RULES FOR ALL DEPOSIT ACCOUNTS:
1.1
YOUR AGREEMENT. By signing the signature card or depositing funds or allowing funds to be deposited on your behalf in an account, you agree to the terms in this agreement for that account.  This includes the terms in our Schedule of Fees and Charges, which are made part of this agreement.  This agreement also includes the terms of any other documents which we designate as part of this agreement.  You also agree that you and we have all rights given by law.
   
1.2 AUTHORIZED SIGNATURES:
 
(a)
Written Signatures.   For purposes of withdrawal and other account matters, unless we specifically agree otherwise in writing, we can honor any request or order signed by any person whose signature appears on the signature card for the account.  We may supply endorsements as allowed by law on checks and other non-cash items (all of which we call "checks" in this agreement) that you deposit to the account.
 
(b)
Authorized Signatures.             You agree that we may pay and charge your account for all checks and orders bearing a signature that you have authorized whether a facsimile or other authorization, regardless of who placed the signature(s) on the checks or orders.
   
1.3 COLLECTION OF CHECKS:
 

When you deposit a check to your account we collect the money from the bank or other party obligated to pay it.  We act as your agent to do this.  Except to the extent otherwise required by law, we are not responsible for losses which happen during collection of a check that are not caused by our own negligence.

When you cash or deposit a check, we may require that funds equal to the amount of the check remain in your account or another account you have with us until the funds from that check become "available for withdrawal".  See our Funds Availability Policy for an explanation of when funds are "available for withdrawal".  If we receive a check you have written on your account in an amount greater than the funds "available for withdrawal" from your account, we have the right not to pay that check.

If we credit your account or allow you to withdraw the amount of a deposited check and it is returned to us unpaid or we receive a notice of non-payment of the check, we have the right to take that amount from your account or to obtain a refund by any method we deem proper, including the exercise of our right of set-off (see Section 1.8).  If the amount of available funds in your account is less than the amount of the check, you are required to pay us the balance.

There are certain checks that we will not cash or accept for deposit. These include checks drawn on banks in foreign countries. We may agree to try to collect the money for you from the bank on which the check is drawn.  If we succeed, we will then deposit the money we collect into your account.  We may also charge you for this service.  The amount of our charge is listed in our Schedule of Fees and Charges.
   
1.4 CHARGES:
 
(a)
General.  You agree to pay the charges listed on our Schedule of Interest and Charges.  We can change these charges or add new ones upon giving notice as set forth in Section 1.6 below.   We may take these charges from your account.
 
(b)
Minimum Balance to Waive or Reduce Charges.  For certain accounts, we may waive or reduce certain account charges if you maintain a specified minimum balance.  The minimum balance rules for waiving or reducing charges for all deposit accounts are described in the Schedule of Interest and Charges.
 
(c)
Linking.  Certain Checking accounts and NOW accounts can be "Linked" to your “Deposit Portfolio” balance in order to waive the monthly service charge.  If you maintain a sufficient minimum daily balance in your entire “Deposit Portfolio”, (the total of deposited funds in all of your deposit accounts) during the monthly statement period, we may waive the monthly service charge otherwise imposed on the account.  The accounts eligible for linking and the minimum daily balance amounts needed for waiver of the service charge are set out in our “Schedule of Fees and Charges”.
 
(d)
Dormant Accounts.  We are generally required by law to deliver to the State of Connecticut any funds in an account that remain dormant for a period of three years.  We will attempt to contact you at the last address on our records before delivering the funds to the State. You agree that we are not responsible for any funds delivered to the State in compliance with the laws of the State of Connecticut.
   
1.5 JOINT ACCOUNTS:
 
(a)

Joint Accounts with Right of Survivorship.  If this is an account in the names of two or more individuals, unless we specifically agree otherwise in writing, it will be a joint account with right of survivorship as defined in Section 36a-290 of the Connecticut General Statutes or the successor to that statute.  This means that each of you is making this agreement with each other and with us.  Each of you agrees that all amounts deposited by any of you, as well as any interest earned or bonus payments earned, can be paid to any one or more of you while you are all alive.  After the death of any one or more of you, we can pay any money in the account to any one of you who is then alive.  Each of you gives to any of the others authority to deposit to the account any check payable to any or all of you.  For certain checks, such as a check payable by the government, we may require all persons to whom the check is payable to endorse the check for deposit.

If we honor a check which was signed by any one of you, and this causes an overdraft, each of you is liable for the overdraft, whether or not you signed the check or benefited from its proceeds.
 
(b)
Limitation on Number of Owners.  We have the right to limit the number of owners on any account.
   
1.6 AMENDMENTS:
 
(a)

Interest Rate.
 
(i)
Certificate of Deposit, (“CD's”).  The Interest Rate (and resulting annual percentage yield) payable on any CD other than variable rate IRA CD’s and Promotional CD’s will be the rate(s) established at the opening of the account for the term of that account.
 
(ii)
Promotional CD’s.  The Interest Rate (and resulting annual percentage yield) payable on promotional CD’s will be the rate(s) established at the opening of the account for the initial term of the account until the promotional option is exercised.  The interest rate (and resulting annual percentage yield) established when the promotional option is exercised will then be applicable until the maturity of the CD.
 
(iii)
Variable Rate Accounts.  All other accounts are variable rate accounts.  This means that your interest rate and resulting annual percentage yield can change.  At our discretion, we may change the interest rate(s) (and resulting annual percentage yield) on an account at any time without prior notice to you.
 
(b)
Other Amendments.  We can make other amendments to this agreement by posting written notice in our lobbies or by delivery to you of a copy of the amendment(s).  Federal law and regulations require that we give you notice of most additional or increased charges and certain other changes to the terms of an account which may be adverse to you before those amendments can become effective.
   
1.7

WAIVER OF YOUR RIGHTS TO "NOTICE OF DISHONOR" AND "PRESENTMENT".  If another institution refuses to pay a check (called "dishonor") which you deposited or cashed, we may at our option, put the check through for collection again depending on the circumstances.  We will not always give you notice that the check was dishonored before putting the check through for collection again.  This means that in this instance you are "waiving" your right to "notice of dishonor".

In the process of collecting a check which you have deposited to your account, you agree that we may delay in putting the check through for collection.  This means that you are "waiving" your right to have us begin the process of "presenting" the check by the next banking day.
   
1.8 RIGHT OF SET-OFF.  Unless this right is denied to us by law, we can take any funds in your account to pay any debt you owe us that is in default (including unpaid charges).  This is called the right of set-off and applies to all funds of yours in our possession now or in the future in any account you maintain with us.  We can use this right of set-off without going through any legal process or court proceedings.  If this is a joint account, this right of set-off applies to our use of deposits of any of you to pay the debts owed to us by any one or all of you. If we exercise this right by taking what you owe us from a certificate of deposit account, such payment shall be deemed an early withdrawal, and an early withdrawal penalty may be imposed.
   
1.9 COLLECTION FEES. If in the course of collecting any money you may owe us we incur expenses or fees, we may take those from your account, including attorneys' fees unless prohibited because suit was not instituted.  If there are not sufficient available funds in your account to cover these expenses or fees you owe us the unpaid balance of such fees or expenses.
   
1.10 IDENTIFICATION.   Federal law requires us to obtain, verify and record information that identifies each person who opens an account.  We require proper identification when opening an account, and for other account transactions.  When you open an account, we will ask you 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.
   
1.11

SOCIAL SECURITY NUMBER REQUIRED.  If you fail to give us a correct social security or tax-identification number for the account on the signature card we can refuse to open an account or close your account.  We can also take from your account any charges of the IRS which result from your error, as allowed by law.

We may also be required by federal law to withhold part of any interest you earn and pay it to the IRS.  If we do this, the amount we withhold will be reported to you and the IRS and applied by the IRS to the payment of any federal income tax you owe for that year.
   
1.12 OUR RIGHT TO CLOSE OR DISCONTINUE ACCOUNTS.  We reserve our right to stop offering any particular type of account and to close your account at any time.  We will mail you a check for the amount of collected funds on deposit as soon as is practical. We reverse the right to decline to open an account for any person.
   
1.13 ENFORCEMENT OF OUR RIGHTS.  We can choose not to enforce or to delay in enforcing any of our rights under this agreement without losing them in the future.
   
1.14 ADDRESS.  You must inform us immediately, in writing, of any change in your address.  Unless you do so, we may continue to mail statements and any other notices to your address as it appears on our records.
   
1.15 STATEMENTS, ERRORS, ALTERATIONS, FORGERIES:
 
(a)

Our Checking accounts, NOW Accounts and Money Market Accounts are "truncated".  This means that, we do not return original cancelled checks with your statements.  For "truncated" accounts your statement will include images of cancelled checks.  If you open a truncated checking account that we offer, you agree that we are not required to send your original cancelled checks with your statement.  You have the right to request a copy of your original check as provided by law.
 
(b)
You must examine and balance your periodic statements as soon as you receive them.  If you do not let us know of any mistakes within 30 days after you receive a statement, we may consider the checks paid during that statement cycle to be genuine.  We may also consider the statement to be correct, except as provided in our Electronic Fund Transfer Agreement which gives you 60 days to report an error concerning an electronic fund transfer.   We will not be liable to you for payment of any forged or altered check (if that would cause us to suffer a loss) unless you notify us of the forgery or alteration within that thirty-day period.  We won't be liable for forged or altered checks if the forgery or alteration resulted from your negligence. You may have to bear losses that could have been prevented if you had discovered and told us of errors or unauthorized transactions. [UCC 4-406]
   
1.16 USE OF OUR CHECKS AND FORMS:
 
(a)
Checks.  We can require that you use only checks we have approved for account use.  The only checks we have given our prior approval to are the ones offered to you through us by our approved vendor.  If you use a check we have not approved we can refuse to pay the check and charge you the fees listed, if any, in our Schedule of Fees and Charges.
 
(b)
Forms.  We can also require that you use our forms for making deposits, withdrawals and any other account matters.
 
(c)
Deposit of Checks.  You agree not to deposit any copy of a check other than a substitute check that meets industry standards, or a substitute check that we have returned to you and that you are re-depositing (see Section 1.21 below.)  You agree that you will be liable for any losses that we suffer because you violated this provision.
 
1.17

NOT TRANSFERABLE.  Your deposit account is not transferable to anyone, except on our books.  You may not voluntarily transfer or pledge

your account without our consent.  This does not affect a transfer occurring by operation of law, such as that which would occur on death, bankruptcy or as a result of a court order.
   
1.18

STOP PAYMENT ORDERS.  If you request us to stop payment on an item, we will make a good faith effort to do so.  If the check you want to place a stop payment has been converted to an EFT by the payee, tell us.  If you do not tell us, the EFT may be paid electronically, because we placed the stop payment on the paper check and not an electronic item. 

You may need to place two stop payment orders, one on the "check" and one on the "electronic funds transfer".  The stop payment order must describe the check with reasonable certainty.  If the stop payment order does not do so, or if we do not have a reasonable opportunity to act on it, we won't be liable if we fail to stop payment, or if our payment of the item(s), causes other items to be returned for insufficient funds.  If we do stop payment of an item at your direction, you agree to pay all costs we may incur as a result.  An oral stop payment order is good for only 14 days unless we receive written confirmation from you within that time.  A stop payment order is only good for 365 days, but you may renew it by written notice we receive before it expires.
   
1.19 RECEIPT OF FUNDS TRANSFER.  A "funds transfer" is a transfer of funds to your account which is not initiated by a check, draft or similar paper instrument.  Most funds transfers, including regularly recurring transfers such as direct deposit of Social Security payments or paychecks are governed by our Electronic Fund Transfer ("EFT") Agreement.  Some, like wire transfers, are not, but under most circumstances we are required by law to accept them.  If we receive a "funds transfer" to your account that is not governed by our EFT Agreement, we may, in our discretion, refuse to accept it, if it is a "funds transfer" we are not required by law to accept.  If we accept "funds transfer" not governed by our EFT Agreement, we may, in our discretion, send notice by first class mail to your last address as it appears on our records, but we do not agree to send notice (other than your periodic statement, if you get a statement for that account.)
   
1.20 PAYMENT OF CHECKS.  We will pay checks drawn on your account that are presented for payment on a banking day from other financial institutions in “Check Number” order from the smallest number to the largest number.  This order of payment is designed to provide for the processing of checks in an orderly manner.  We may pay other items such as ATM withdrawals and the electronic debits in the order in which they are presented for payment. If there are not available funds in the account to pay all of the checks and other charges against the account (such as ATM withdrawals, bank fees, and preauthorized transfers) presented on a banking day, you agree to pay any insufficient or uncollected check/ACH fees or check fees that result based on our payment of checks and other items in the order described in this paragraph and from our payment of other charges in any order we decide.
   
1.21 Check Clearing for the 21st Century Act ("Check 21").  Check 21 is a federal law that allows a bank to use image technology to create a paper copy of the front and back of an original check.  This copy is called a "substitute check" if it meets applicable industry standards.  A substitute check is the legal equivalent of the original check.  When we receive a substitute check for a check you have drawn on your account the following rules apply:
 
(i)
if you receive check images with your statement, your imaged statement will contain an image of the substitute check rather than an image of the original check,
 
(ii)
if you request a copy of the check, you may get a copy of the substitute check, rather than a copy of the original check.
 
  If you suffer a loss because your check was converted to a substitute check, you may be able to recover certain types of losses.  You may contact us if you believe that you have suffered a loss relating to a substitute check.  In some cases you may have the right to expedited re-credit of the lost funds.  If applicable, we have provided (or will provide) a separate disclosure describing the right to expedited re-credit and the timeframe for claiming the re-credit.
   
1.22 OVERDRAFTS AND UNCOLLECTED FUNDS:
 
(a)
If you do not have enough available funds in your account to pay a check, funds transfer or other non-check transaction such as an ATM withdrawal or other electronic debit, from on your account, you will have to pay a fee.  A fee is charged for each item presented against non-sufficient funds whether we choose to pay the item or not.
 
(b)
We will determine in our sole discretion whether to pay an item presented for payment if your account does not contain sufficient available funds.  If we do pay an item for which there are insufficient funds, we will send you a notice disclosing the overdraft amount and the fees associated with the overdraft.  You agree to pay the amount of the overdraft plus any applicable fee(s).  The overdraft and uncollected item charges are listed in the Schedule of Fees and Charges and on page 30 of this agreement.
 
(c)
You will be subject to a returned check fee for any check deposited to your account which is not honored and is returned to us.  We may, at our option, re-deposit one time, any check deposited to your account which is returned to us, depending on the circumstances.
 
1.23 THIRD PARTY DRAFTS.  If you authorize a merchant, check writing service or other third party to draw one or more checks or drafts against your account, you agree that you will be responsible for the amount of the checks or drafts.  If you want to revoke the third party's authorization you must notify such party in writing.  You also agree to request us to stop payment on these transactions.  We may require you to close your account and open a new account to prevent such future transactions.  We will not be liable if you do not do so, and we do not stop payment on the transaction(s).  You also agree that we will not be liable for failing to stop the transaction(s) if we did not have a reasonable amount of time to act on your request, or if your request did not provide enough information to identify the transaction(s).
   
1.24 POSTDATED CHECKS.  If the date on a check is later than the date the check was issued, the check is called "postdated."  We will not look to see if a check is postdated when we determine whether or not to pay the check.  We have the right to charge against your account any payment we make on a postdated check before the date on the check. We will not be liable if we pay the check before the date on the check or if such payment causes other checks to be returned for insufficient funds.
   
1.25 STALEDATED CHECKS.  We may at our option pay a check that is over six months old, but we are not required to do so.
   
1.26 OVERCREDITED ACCOUNT.  If we credit your account for an amount in excess of the checks or funds actually received for deposit, we may take the excess from your account without prior notice to you.
   
1.27 CHANGE IN OWNERSHIP.  If you wish to add an owner to, delete an owner from, or otherwise change the ownership of an account, we may require you to close the account, to surrender any passbook or similar account documents, and to open a new account listing the new owners.  If the account is a certificate of deposit, we may require you to pay any applicable early withdrawal penalty when you close the account.
   
1.28 SERVICE OF PROCESS.  If we receive a court order, levy, garnishment, execution or other similar legal process (all of which we call "legal process") concerning the funds in your account, we may place a "hold" on the funds in your account for the amount stated in the legal process.   A "hold" means you may not withdraw funds and we will not pay checks out of the funds subject to the "hold".  We may also surrender the funds in your account as required by the legal process.  We will not be liable if these actions cause checks to be returned for insufficient funds.
   
1.29 ENDORSEMENTS.    You agree that all endorsements on the reverse side of any check that you deposit to your account will be in the area designated for endorsements.  If you, or any other endorser signs outside of this designated area, it may cause the check to be misrouted or the payment to be delayed.  You also agree to make your endorsements in dark ink.  You agree that you will liable for any losses we suffer resulting from your failure or the failure of any endorser of a check that is deposited to your account to comply with these requirements.
   
2. RULES WHICH APPLY TO SAVINGS ACCOUNTS, MONEY MARKET ACCOUNTS, CERTIFICATES OF DEPOSIT AND CLUB ACCOUNTS:
   
2.1 INTEREST.  Savings accounts earn interest.  The rates and certain other information about how we calculate interest are set forth in the Schedule of Fees and Charges.
   
2.2 WHEN INTEREST BEGINS TO ACCRUE ON DEPOSITED CHECKS.  Interest begins to accrue on a non-cash deposit made to a savings account on the business day the deposit is considered to have been made, (see our Funds Availability Policy for an explanation of when a deposit is not considered made on the day you deliver checks to us).
   
2.3 BALANCE CALCULATION METHOD.  We use the daily balance method to calculate the interest on your account.  This method applies a daily periodic rate to the principal in the account each day.  The principal balance used to calculate interest is the balance on which interest has begun to accrue (see Section 2.2 above).
   
2.4 MINIMUM BALANCE TO EARN INTEREST.  For certain savings accounts, we require a minimum balance to earn interest.  The amounts of these minimum balances are described in the Schedule of Fees and Charges.  We use the daily balance method to determine if the minimum balance requirement has been met.
   
2.5 WITHDRAWAL BEFORE INTEREST CREDITED.  Our crediting and compounding policies for all deposit accounts are set forth in the Schedule of Fees and Charges and Accounts Disclosures. If you close an account (other than a statement savings and passbook savings account) before interest is credited, you will not receive the accrued interest.
   
2.6 RESTRICTIONS ON WITHDRAWALS.  We have the right to require that you give us at least 7 days written notice to withdraw funds from a regular savings, NOW, and Money Market account.  We would expect, except in unforeseen circumstances, to give advance notice of our intent to impose this requirement.  We are prohibited by law from imposing the notice requirement on any depositor with these types of accounts unless the notice is required of all depositors with these types of accounts. Except for NOW Accounts and Money Market Accounts, we can require that you make withdrawals which are made in person only at the office where you opened the account.
   
2.7 PASSBOOK ACCOUNTS.  We record transactions for this account in your passbook or on separate documents.
   
  To make a passbook withdrawal, you must present the passbook and verify the balance before you leave.  If you lose the passbook, inform us right away. We do not permit pre-authorized transfers from this type of account. If you intend to allow pre-authorized transfers from an account, we may ask you to open a statement savings account for this purpose.  Every payment which we make to a person presenting your passbook to us with a signed withdrawal order will be valid, provided we exercise reasonable care.  This means that if anyone obtains possession of your passbook and withdraws from your account by forging your signature on a withdrawal form, we will not be liable to you for the amount withdrawn unless you notified us that the passbook was lost prior to the withdrawal or we were negligent in permitting the withdrawal.
   
2.8

STATEMENT SAVINGS ACCOUNTS.  We will send you a monthly statement for these accounts.  To withdraw from your statement savings or Money Market account, you must show us proper identification and present a withdrawal order.

You may make up to six preauthorized transfers, internet,  or telephone transfers per month, but these preauthorized transfers may not be made by check, draft, Point of Sale transfers or similar order made by you and payable to third parties. Limitations on preauthorized transfers are described in Section 2.10 below.
   
2.9 MONEY MARKET ACCOUNTS.  Our Money Market Accounts are statement savings accounts from which you are permitted to make up to 3 of the 6 preauthorized, internet, or telephone transfers per statement cycle by check, draft Point of Sale or similar order made by you and payable to third parties. Limitations on preauthorized transfers are described in Section 2.10 below.
   
2.10

PREAUTHORIZED TRANSFERS.  You can make limited preauthorized or telephone transfers from our statement savings and money market accounts.  The limitations on preauthorized transfers do not apply to pre-authorized transfers made to pay loans you have with us or to withdrawals or transfers to another account you maintain with us if made in person or by mail or through an automated teller machine.

If you exceed the limitations on pre-authorized transfers on more than an occasional basis, (in more than three consecutive statement periods, or more than six statement periods within the last twelve months) we may be required to close the account, take away the account's pre-authorized or telephone transfer capabilities, or convert the account to a NOW account or checking account depending on the ownership type. We will advise you of violations.
   
2.11 CLUB ACCOUNTS.  We record transactions for this account in your passbook or on separate documents if your account is a Statement Savings account.  To make a passbook withdrawal, you must present the passbook and verify the balance before you leave.  If you lose the passbook, inform us right away.  We do not permit pre-authorized transfers from this type of account.  At a pre-determined date set at the time of opening a club account, we will mail you a check for the balance together with interest to date, unless you instruct us otherwise.  You will be assessed a fee, (please refer to the Schedule of Fees and Charges) if you make a withdrawal or close the account prior to pre-determined date.  We will allow the account to maintain a zero balance for no more than 90 days form the pre-determined date, in order to give you time to start a new club.  After that time, we will automatically close the account.
   
2.12 CERTIFICATE OF DEPOSIT ("CD"):
 
(a)
The Term.  A CD is a type of deposit which requires you to leave money in the account for a certain period of time (called the "term") to earn interest throughout the term at the specified rate. CD’s are subject to penalties for early withdrawal; that is, withdrawal before the "Maturity Date".  The "Maturity Date" is the first day following the last day of the term.  These penalties are described in Section 2.12.f. below.  When you establish a CD, you may select any term that we currently offer, as described in our current Schedule of Fees and Charges.  If the Maturity Date falls on a day we are not open (such as a weekend or holiday), for accounts that do not renew automatically we will pay interest at the rate specified for your CD until the next business day we are open.
 
(b)
Promotional CD’s.  From time to time, at our option, we may offer you a CD where you may request to change the interest rate being paid on your CD to equal the interest rate we would pay on a new CD of comparable term.  An Interest Rate change may be initiated by you at your discretion.  The Interest Rate change will be allowed only once during the term of a certain range of CD accounts.
 
(c)
Later Deposits.  From time to time, at our option, we may allow you to make additional deposits to an existing CD, during the term of the CD.
 
(d)

Notice of Maturity. We are required by federal law to send a notice of maturity for all our automatically renewable CD’s with terms greater than one month and for all CD’s which do not renew automatically and have terms of more than one year.  We will send a maturity notice for all CD accounts to the address we have on file.
 
(e)

Automatic Renewal of CD’s.  If you do not withdraw the funds from the account within the "grace period" of 7 calendar days after maturity, your CD account will be automatically renewed as of the Maturity Date of the maturing CD, for a similar term at the rate of interest we are then paying on CD’s with that term.

If you elect against automatic renewal of your CD, you must give us written instructions.   You must direct us (1) to renew the CD for a term which you specify and which we allow, (2) to deposit the funds in another account you maintain with us, or (3) to mail you a check.  We must get your instructions within 7 days after the end of the term.  When properly renewed, your new CD will begin on the Maturity Date of the maturing CD.  If the account is closed during the 7 day period we pay interest from the Maturity Date until the date of withdrawal.  If, on the Maturity Date we no longer offer the same type of CD, and you do not instruct us otherwise, the funds in the account will be placed in a CD which we offer, which we, in our discretion, determine is most similar to your CD.  If you renew a CD or a CD is automatically renewed, all interest which is on deposit at the time of renewal will become principal of the renewed CD.
 
(f)

Penalty For Early Withdrawal.  We will allow withdrawal from your CD before the Maturity Date without penalty in the following events:  (1) a court's declaration of your mental incompetence, or (2) your death.

In all other cases you cannot withdraw all or any part of the principle before the Maturity Date without our consent.  We can only give our consent at the time you ask to make a withdrawal.  If we consent to an early withdrawal, there is a penalty on the amount that you withdraw.  For CD’s with an originally scheduled term of one year or less, the penalty will be an amount equal to 1 month's interest on the amount withdrawn at the rate being paid on the deposit.   For CD’s with an originally scheduled term of greater than one year, the penalty will be an amount equal to 3 month's interest on the amount withdrawn at the rate being paid on the deposit.  We may take all or part of the penalty from the original deposit, if necessary.
 
(g) Effect of Interest Withdrawal. The annual percentage yield assumes that interest will remain on deposit until maturity.  A withdrawal of interest prior to maturity will reduce earnings.
 
3. IRA AND KEOGH ACCOUNTS. 
  These accounts are governed by separate contracts and by the rules in this agreement for the type of IRA or KEOGH savings account opened.
   
4. RULES WHICH APPLY TO NOW ACCOUNTS AND INTERST CHECKING ACCOUNTS:
   
4.1 SAVINGS ACCOUNT.  A NOW account is a savings account upon which you can draw checks.  Interest bearing Checking accounts are NOW accounts. The rules for savings accounts described above in Sections 2.1 – 2.6, also apply to NOW accounts.
   
4.2 LIMITATION.  NOW accounts and Interest Checking accounts may be owned only by individuals or by certain non-profit organizations. For example, an individual can open a NOW account for a sole proprietorship.  See section 9 below.
   
5. RULES WHICH APPLY TO REGULAR CHECKING ACCOUNTS:
   
5.1 DEMAND DEPOSIT.  A checking account is a demand deposit account.  That means we reserve no right to require notice before withdrawal from checking accounts and permit unlimited numbers of transfers to third parties by check.  We will pay no interest on a checking account.
   
5.2 AVAILABILITY. A personal Checking Account may be owned only by one or more individuals and used only for personal purposes.
   
6. IN TRUST FOR, PAYABLE ON DEATH ("POD") OR BENEFICIARY DESIGNATION.  The "Payable on Death", "In Trust For" or "Beneficiary" designation means that you intend to open an account under section 36a-296 of the Connecticut General Statutes (entitled "Deposits in Trust") or the successor to that statute.  The Payable on Death, In Trust For or Beneficiary designation means that you have full ownership of the account until your death.  You, as the owner, must include your social security number on the signature card.  When you die, the account will belong to the beneficiary you have named if such person is alive when you die.  If you have named more than one beneficiary, the account will belong equally to the beneficiaries who are alive when you die.  If this is also a joint account with right of survivorship, when any of the owners of the account dies, any remaining owners will have full ownership until their deaths.  When the last owner dies, the account belongs to the beneficiaries who are living at that time.
   
7. UNIFORM TRANSFERS TO MINORS ACT ("UTMA").  If you have opened the account as custodian under the Connecticut Uniform Transfers to Minors Act, your rights and duties are governed by that Act.  You must give us the minor's social security number on the signature card.  You will not be allowed to pledge the account as collateral for a personal loan.
   
8. FIDUCIARY DESIGNATION.
   
8.1

FIDUCIARY.  A fiduciary is a person or organization named by will, trust or other legal document or appointed by the court to manage the funds or property of another.  A fiduciary may be named in a written agreement, such as a trust or a power of attorney, or may be appointed by a court.  If you have opened an account as a fiduciary the funds belong to the trust estate and only the trustee(s) may withdraw funds or otherwise transact business with us for this type of account.

We may require that you give us a certified copy of any trust instrument, court order or decree appointing you as a fiduciary.  Whether or not a copy is filed with us, we will not be held responsible for the contents or for any duty you may owe as trustee to any trust beneficiaries.  The law and the trust document or court order or decree will define your rights and duties as fiduciary.
   
8.2 TAX IDENTIFICATION NUMBER.  We may require that you apply for a taxpayer identification number for any account that you open on behalf of a trust or other separately taxable entity.
   
8.3

POWER OF ATTORNEY.  A power of attorney is a legal document signed by a person giving a second person the power to act on the first person's behalf. [We are not required to honor a Power of Attorney.]

If you are acting under a Power of Attorney, your right to deal with the funds in an account is determined by law and in the power of attorney.  You must give us a copy of the power of attorney.  The owner of the account may only withdraw funds from the account if he or she has also signed a signature card for the account. A power of attorney ends when the person who signed it terminates it, dies, has a conservator appointed for his or her estate or, unless the power of attorney specifically provides otherwise, becomes disabled or incompetent.

The owner of an account and the person holding the power of attorney from the owner agree to notify us promptly if the power terminates.  When a person holding a power of attorney makes a deposit to or a withdrawal from an account, that person is confirming that the power has not been terminated.  We may rely on the power of attorney until we are given written notice that it has been revoked or terminated, and have had a reasonable opportunity to act on that notice.
   
9.

SPECIAL RULES WHICH APPLY TO INTEREST CHECKING AND NOW ACCOUNTS.  These account types are “NOW” accounts. A “NOW” account is a savings account upon which you can draw checks.  “NOW” accounts may only be held by Individuals, Sole Proprietorships, Associations and Organizations that are organized for non-profit purposes.  Partnerships and Corporations that are organized for profit purposes are not eligible to open a “NOW” Account.  In addition, “LLC’s”, (Limited Liability Companies) are not eligible to open a “NOW” account.

In order to be eligible for “NOW” account status, the account must consist solely of funds in which the entire beneficial interest is held by one or more individuals, (natural persons) or by an organization which is operated primarily for religious, philanthropic, charitable, educational, political, or other similar purposes and which is not operated for profit, and that is described in paragraphs 501(c)(3) – (13) and (19) and section 528 of the Internal Revenue Code.  In addition, deposits of public funds by an officer, employee, or agent of the United States, any State, county, municipality, or political subdivision thereof are eligible for “NOW” account status.
   
10.

Internal Accounting of Balances.  For our internal accounting purposes only, your checking account consists of two sub-accounts; a checking sub-account and a savings sub-account.  On interest-bearing checking accounts, the same interest rate is paid on both sub-accounts; for non interest-bearing checking accounts interest is not earned on either sub-account.
Whenever your checking sub-account balance exceeds a certain amount that we set (and may change from time to time), we may transfer funds, (sweep) above that amount to the savings sub-account.
As these funds are needed to pay items presented against your checking account, we will transfer, (sweep) funds from the savings sub-account to the checking sub-account, up to six times per statement period.  If a sixth transfer is needed, the entire balance in the savings sub-account will be transferred into the checking sub-account. This process may be repeated each statement period.

This balance accounting is transparent and has no effect on your account balance, on the daily use of your account, on how checks are paid, or on how your account activity appears on your monthly statement.
 
Electronic Fund Transfer and
Cardholder’s Agreement
 
 

Definitions:

"We", "us" and "our" mean Farmington Savings Bank.  "You" and "your" mean anyone who has an Account with us and is authorized to use the applicable EFT service.

"Account" means any deposit account you have with us from or to which we allow electronic fund transfers ("EFT’s").

"ATM" means any automated teller machine where you can use your Card and PIN.

"Available Funds" means the money in your Account which can be withdrawn or transferred together with any credit you may have available to you under your Reserve Credit Agreement with us (if applicable).  Available Funds may be less than the entire balance in your Account if, for example, we have placed a "hold" against certain funds in your Account to allow a reasonable time for checks deposited to or cashed against your Account, or to allow certain Account withdrawals, such as point of sale (POS) transfers, to clear.

"Bill Payment" is the service we offer that allows you to request transfers of funds to third parties through “Online Bill Pay”, Internet Banking, or by other means that we specify.  "Internet Banking" means our system that allows you to access your Accounts and make transfers through the Internet.

"Telebanc" means our automated voice response telephone banking system.

"Business Day"  See Section 3 below for a definition of our "Business Day".

"Card" means the Farmington Savings Bank ATM and/or the Farmington Savings Bank MasterCard Debit Card ®.  "Checking" Account means the Checking Account or NOW Account, or any other checking account that we offer and that you have selected in your application for the EFT service.  "Savings" Account means the Money Market Account, Statement Savings Account or Regular Savings Account you have selected in your application for the EFT service.

"Electronic Fund Transfer" or "EFT" is a transfer of funds at our bank that is initiated electronically.  The EFT services we offer are listed in Section 1 below.

"PIN" means, as applicable, the personal identification number you agree to use to identify yourself when using an ATM or POS or making a telephone transfer, or using Internet Banking.  These numbers need not be the same.

"Point of Sale" or "POS" terminal means an electronic terminal at which you can use your Card and PIN to pay for goods and services and receive cash by debiting your Account.

"Preauthorized Transfers" mean transfers you have arranged in advance for us to make, including checks written to third parties, POS transfers, telephone transfers, and transfers made through Internet Banking, including transfer orders made in advance through Internet Banking.

"Reserve Credit" means the Overdraft Protection Credit Agreement you have with us.
   
1. WHAT IS AN EFT?  An EFT is a transfer of your funds at our bank which is initiated electronically, for example, by telephone, computer, Internet access device, ATM or POS.  We currently offer the following EFT services:
   
 
(a)

Direct Deposit: You can arrange for the direct deposit to your Account of Social Security benefits or other deposits such as payroll, that we allow to be deposited directly to your Account through the computer or internet access device.         

                If funds have been deposited in your accounts, into which you are not legally entitled, by mistake or otherwise, you agree that such amounts are debts owing from you to us and you authorize us summarily to withdraw such amounts from the account or any other account you have with us.  We can do this without giving you prior notice or demand.  We can also exercise our right of setoff to recover any such amount.  (An example of such an overpayment to your account to which you are not legally entitled would be a Social Security payment received by direct deposit after your death.)
 
(b)
“Telebanc”:  You may use your Account number andPIN to make the following types of transfers by telephone:
(1)
Transfer Available Funds between your Checking and Savings Accounts
 
(2)
Transfer Available Funds from your Checking or Savings Account to make a payment on a Farmington Savings Bank loan
 
(3)
Find out what the current Available Funds balance is on your Checking or Savings Account
 
(4) Get information on Deposit Rates
 
(5) Check you last 10 Transactions
 
(6) Check to see if a specific Check has Cleared your account
 

Any payment or transfer called in after 6:00 p.m. Monday through Friday will be processed the next business day.

To use “Telebanc”, call (860) 676 – 4777 or 1 – (800) 845 – 2308.
 
(c)
Preauthorized Payments:  You can arrange to have payments or transfers (that we allow) made from certain Accounts automatically.  These payments or transfers are made to third parties such as insurance and utility companies.
 
(d) Services Available at our ATMs:  You may use your Card and PIN to do the following at our ATMs:
(1)
Withdraw Available Funds from those Accounts that you have selected in your application for the EFT service.
 
(2)
Make deposits to those Accounts that you have selected in your application for the EFT service.  (This EFT service is not available at ATMs that are located at other banks.)
 
(3)
Transfer Available Funds between those Accounts that you have selected in your application for the EFT service.
 
(4) Make payments on mortgages or certain other loans with us. (This EFT service is not available at ATMs that are located at other banks.)
 
(5) Find out what the current Available Funds balance is on your Checking or Savings Account.
 
(6) If you have Reserve Credit, you can, by overdrawing your Checking Account, obtain a loan advance from the credit available under your Reserve Credit.
 
(e) Other Services Available with your Card and PIN:  You can pay for purchases by accessing your Checking Account with your ATM Card  or MasterCard Debit Card (whether through a POS terminal or otherwise) at merchants that have agreed to accept the Card (in some cases together with the PIN) for this purpose.  At the time of the purchase, you may also be able to withdraw cash, subject to cash availability and merchant agreement.  POS transactions are not available at all places or merchants.  The merchant’s own policy on refunds and returns governs your rights relating to refunds and returned merchandise.  You must resolve issues of this type directly with the merchant.
 
(f) 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;
(1)
Pay for purchases
 
(2)
Pay Bills
 
(g) Services Available through Internet Banking:
 
You may use your Internet Banking PIN to do the following through the Internet:
(1)
Obtain account balances and transaction information for your Accounts.
 
(2)
Transfer funds between your Accounts.
 
(3)
View and print Check Images of checks and send electronic messages to us.
 
(4) If you have Reserve Credit you can, by overdrawing your Account, obtain a loan advance from the credit available to you under Reserve Credit.
 
(h) Services Available through Online Banking Bill Payment:  If you have applied and been approved for Bill Payment, you may conduct the following transactions from your designated Checking Account:
(1)
Make payments to any person or business (a "payee") in the United States that we allow.
 
(2)
Schedule and make future payments.
 
(3)
Set up automatic recurring future payments.
 
(4) Review, change and cancel payments.
 
(5) Inquire about specific payments.
 

Internet Banking and Online Bill Payments are governed by a separate agreement.  To the extent there may be conflicts between the Internet Banking and Online Banking Bill Payment Agreement and this agreement, the Internet Banking and Online Banking Bill Payment Agreement will apply.
 
(i) When Service is Available.  FSB ATMs and ATM Switch Network ATMs are open 24 hours every day, except:
(1)
All ATMs are closed briefly each day for balancing.
 
(2)
ATMs located inside bank premises are open only during banking hours.
   
Except as noted above our Electronic Funds Transfer services are generally available 24 hours every day but may be closed for maintenance, for security reasons, or due to malfunction.
 
(j) Limitations on Availability of Services.
 

We are members of “NYCE” and “CIRRUS” ATM Switch Networks, and all of the transactions described in (d) and (e) above may not be available at all ATMs or POS terminals where you can use your Card and PIN.

We do not allow Preauthorized Transfers from a Passbook Savings Account, and you cannot use a Card to access a Passbook Savings Account.  If an EFT service is received and posted to a Passbook Savings Account, the account will be automatically converted to a Statement Savings Account at the end of the month in which the first EFT was received.
 
2.

AGREEMENT.  By signing an application or by using your Card or by using an EFT, you agree to the rules in this Agreement for the type of EFT service that you use.  Your Deposit Account Contract contains additional rules about the use of your Account, and is a part of this Agreement.

You agree that if you give your Card or your PIN to another person, or if you ask us to issue a Card and a PIN to another person, you will be responsible for all transactions done by that other person, just as if you had made the transactions yourself, unless and until you notify us that further transactions by that other person are no longer authorized by you.  If you notify us orally, we may ask you to confirm the notification in writing.  Any Card or PIN we issue to another person at your request will be subject to this Agreement. (See also Section 15 below.)
 
3. BUSINESS DAYS.  Our business days are Monday through Friday.  Holidays are not included.
 
4. GENERAL LIMITATIONS ON TRANSACTIONS.
 
(a)
General:  We may limit the number, type and form of Accounts to or from which we will allow EFTs (see, for example, Section  1(i) above).
 
(b) Savings Account limitations:  You are limited to six (6) Preauthorized Transfers of Available Funds per month from a Statement Savings Account, however no transfers by checks, draft, point of sale, or similar order made payable to third parties are permitted from a Statement Savings. For Money Market Accounts, up to three (3) of the (6) preauthorized transfers may be by checks, draft, point of sale, or similar order made payable to third parties during the statement period.
 
The following types of transfers do not count towards the six (6) transfer limit described above:
(1)
Preauthorized Transfers from your Statement Savings account or Money Market account to make a loan payment to us.  However, transfers of funds from your Statement Savings account or Money Market account to cover an overdraft in any Checking Account do count towards the six (6) transfer per monthly statement period limit described above.
 
(2)
Transfers or withdrawals you request in person, by mail, or by messenger.
 
(3)
Transfers or withdrawals that you make at an ATM or POS terminal or that you otherwise make in person with a Card.
 
(4) Preauthorized Transfers of funds into a Savings Account or Money Market account you maintain with us.
 
(5) Checks that we mail to you at your request, provided that they are payable to you.  This includes checks payable to you that you request by using   Internet Banking.
 

If you exceed the six (6) transfer limit described above on more than an occasional basis, we reserve the right to close your account, take away the Preauthorized Transfer capacities, and/or convert your Statement Savings account or Money Market account to a Checking Account or another type of transaction account, as a penalty for repeated violation of the limit.
 
(c) Overdrafts and Transfers that exceed Daily Limit:  If you do not have enough Available Funds to cover a transaction, or if a transaction would go over the daily limit described below in Section 5a, you agree that we do not have to permit the transaction.  You also agree that you will not request any transaction which would cause your Account to become overdrawn, or which would otherwise break the  rules in this Agreement or in any other agreement you have with us. (See also Section 2 above.)

If any of your Accounts has an overdraft, for whatever reason, You agree to pay us the amount of the overdraft promptly.  If you do not pay promptly, you also agree to pay our collection costs, including attorneys fees, as allowed by law.

We may reduce the amount of the overdraft by using our right of set off (as described more fully in your Deposit Account Contract).
 
5. LIMITATIONS ON ATM AND POS TRANSACTIONS.
 
(a)

Daily Limit for transfers with a Card and PIN.  You may withdraw up to $300.00 in cash each day by using your Card and PIN.  This limit applies separately to each cardholder, and applies even if you have access to more than one Account with your Card and PIN. This limit applies to the total of all withdrawals and POS transactions from all Checking Accounts and all Savings Accounts with a Card and PIN.  If on a particular day, the amount of Available Funds in your Accounts totals less than the daily limit, you may not withdraw more than the total of Available Funds on that day with a Card and PIN. 

The minimum withdrawal from a Farmington Savings Bank ATM is $20.00 and above that amount withdrawals must be in multiples of $20.00.
 
(b)

Limit on transfers with a Card only.  Some merchants may allow you to use your card without your PIN to pay for purchases.  The daily limit described in subsection (a) above does not apply to any POS transfers you are allowed to make with your Card alone, without your PIN.  You may make POS transfers with your Card alone, without your PIN, up to the amount of Available Funds in your Account(s).

In deciding whether to process a POS transfer from your Account that is made with your Card alone, and without your PIN, you agree that we may either (1) immediately debit your Account for the amount of the POS transfer as soon as we receive any electronic or other notice of the POS transfer, or (2) place a "hold" on funds in your Account in an amount equal to the POS transfer as soon as we receive any electronic or other notice of the POS transfer.  If we place a "hold on funds in your Account to cover a POS transfer that you make with your Card alone, without your PIN, we do not have to make the funds that are subject to a "hold" available to you for withdrawal or to pay for any transfer from your Account, apart from the POS transfer that was the reason for our putting the funds on "hold".