Certificate of Deposit (CD) Agreement

Terms and Conditions

This Agreement, along with any other documents we provide you pertaining to your Certificate of Deposit (CD), is a contract that establishes rules which control your account with us. Please read this carefully. By agreeing with these terms and conditions and opening the account, you agree to be bound by these rules.

DEFINITIONS – As used in this Agreement the words “we,” “our,” and “us” mean Bankers Trust and the words “you” and “your” mean the accountholder(s) and anyone else with the authority to deposit, withdraw, or exercise control over the funds in the account. “Account” means the CD.

PRIMARY AGREEMENT – You agree to keep your funds with us in the account until the maturity date. The account is void if the deposit is made by a method requiring collection, such as a check, and the deposit is not immediately collected in full. Further the account is void if it is not funded within 30 days from opening. We may change the terms of this Agreement. We will give you reasonable notice of changes in writing or by any other method permitted by law. If any notice is necessary, we will mail it to the address you have provided us. Notices that we send to you at your address as shown on our records will be binding on you for all purposes. You agree to notify us in writing in advance of any change of address.

TRANSFER – Transfer means any change in ownership, withdrawal rights, or survivorship rights, including but not limited to, any pledge or assignment of the account as collateral. You cannot transfer the account without our written consent.

PLEDGES – Any pledge of the account (to which we have agreed) must first be satisfied before the rights of any joint account survivor become effective. For example, if one joint tenant pledges the account for payment of a debt and then dies, the surviving joint tenant’s rights in the account are subject first to the payment of the debt.

WITHDRAWALS – Only those of you indicated as account owners may withdraw funds from the account. In appropriate cases, a court-appointed representative or attorney in fact under a valid power of attorney agreement may also withdraw from the account with the proper legal documentation.

If the account is held jointly, only one endorsement is required for withdrawal.

OWNERSHIP OF ACCOUNT – You intend these rules to apply to this CD depending on the form of ownership you specify at the time the account is opened. We make no representations as to the appropriateness or effect of the ownership designation, except as it determines to whom we pay the CD funds.

• Individual Account: Such an account is owned by one person.
• Joint Account with Survivorship (And Not As Tenants in Common): Such an account is owned by two or more persons. Each of you intends that upon your death the balance in the account, subject to any previous pledges to which we have consented, will belong to the survivor(s). If two or more of you survive, you will own the balance in the account as joint tenants with survivorship and not as tenants in common.

SETOFF – You agree that we may, without prior notice and when permitted by law, set off funds in the account against any due and payable debt owed to us now or in the future, by any of you having the right of withdrawal, to the extent of such person’s right to withdraw. If the debt arises from a note, “any due and payable debt” includes the total amount of which we are entitled to demand payment under the terms of the promissory note at the time we set off, including any balance for which we properly accelerate under the terms of the promissory note. If the account has not reached the maturity date, we may deduct any early withdrawal fee that may be due as a result of us exercising our right of setoff. This right to setoff does not apply to the account if the debit is created by a consumer credit transaction under a credit card plan. You agree to hold us harmless from any claim arising as a result of our exercise of our right of setoff.

BALANCE COMPUTATION METHOD – We use the daily balance method to calculate the interest on the account. This method applies a daily periodic rate to the principal in the account each day.

TRANSACTION LIMITATIONS – You cannot make additional deposits to the account during a term (other than credited interest). You cannot withdraw principal from the account without our consent except on or after maturity. There is a 10-day grace period after each renewal date during which withdrawals are permitted without penalty. In certain circumstances, such as the death or incompetence of an account owner, the law permits, and in some cases requires, the waiver of the early withdrawal penalty. Other exceptions may also apply.

AUTOMATICALLY RENEWABLE – This account will automatically renew on the maturity date. You must notify us before the maturity date, or within a 10-day grace period thereafter, if you do not want the account to automatically renew. If you do not notify us, the renewal term will be the same as the original term, beginning on the maturity date. Interest that is not withdrawn on the maturity date or within 10 days thereafter will be added to principal for the renewal term.

The interest rate for each renewal term will be determined by us on the renewal date. You may call us on the maturity date and we can tell you what the interest rate will be for the next renewal term. On accounts with terms of longer than one month, we will remind you in advance of the renewal and tell you when the interest rate will be known for the renewal period.

EARLY WITHDRAWAL PENALTY – If we consent to a request for a withdrawal that is otherwise not permitted, you may have to pay a penalty. The penalty amount will be determined as follows:

• Term of less than 12 months 90-day interest penalty
• Term between 12 and 24 months 180-day interest penalty
• Term greater than 24 months 365-day interest penalty

WITHDRAWALS OF INTEREST – Withdrawals of accrued interest during a term are permitted without penalty.

NUMBER OF ENDORSEMENTS – Only one endorsement by any named owner is required to withdraw or renegotiate the terms of the account.

MINIMUM BALANCE REQUIREMENT – You must make a minimum deposit of $1,000 to open the account. You must maintain the minimum balance on a daily basis to earn the annual percentage yield (APY) disclosed.

PRIMARY CHECKING – Primary Checking is an account in which you routinely deposit the majority of your income or benefits from any source, and against which you routinely authorize payment of the majority of your expenses each calendar month. Some CD promotions, as disclosed prior to opening, are only available to accountholders who have a primary checking account with us.

INTEREST RATE INFORMATION – We guarantee the disclosed interest rate and APY for 10 days from the date of the account opening. You must fund the account within this time period. If you do not fund the account within 10 days of account opening, the interest rate and APY will be the prevailing interest rate at the time we receive the deposit. In any case, the account must be funded within 30 days of opening or it will be closed.

Confirmation of your interest rate and APY will be sent to you in a welcome letter at the e-mail address you provided us when you opened the account. The interest rate will be paid until the maturity date of the account. Interest begins to accrue on the day we receive your deposit to fund the account.

Interest will be compounded and credited annually, unless you have selected a term shorter than 12 months, in which case interest will be compounded and credited at maturity. If you choose, you may have interest paid to you by check annually or, for a term shorter than 12 months, at maturity.

The APY stated in your welcome letter assumes that interest remains on deposit until maturity. A withdrawal of interest will reduce earnings.

MATURITY DATE – Confirmation of your maturity date, based on the term you selected at account opening and the date we receive the deposit to fund the account, will be sent to you in a welcome letter at the e-mail address you provided us when you opened the account.