PART IV - OPERATION OF SAVINGS AND TRANSACTION ACCOUNTS
A. Deposit of Items
You may make deposits in person, by mail or by any other method we make available. All depositors for all types of savings and transaction accounts (other than Statement Savings) may make deposits at ATMs. To make a deposit in person, you will scan your Passcard and may use your personal identification number (“PIN”).
We are not responsible for deposits made by mail, night depository or other outside depository until we actually record the receipt of those deposits in our books and records. You are responsible for reconstruction and proof of loss of any items, including checks and negotiable instruments included in deposits that are lost or stolen in transit before we have received and accepted the deposit. You also agree to fully cooperate and assist in the reconstruction of any items, including checks and other negotiable instruments included in the deposits that are lost or stolen after we have received and accepted the deposit.
We reserve the right to limit, refuse or return any deposit. All deposits must be of, or denominated in, United States currency. We will not accept foreign currency deposits, and except in our discretion, we will not accept deposit of checks or other types of transactions drawn on foreign banks. If, in our discretion, we accept a deposit of a check or other item drawn on a foreign bank, we will accept it only for collection. If we discover an error in any deposit, we may make correcting entries and notify you of the correction. There is no time limit within which we may make such a correction.
You agree that you will not deposit, without our prior written consent, imaged checks or other items, such as “substitute checks", as defined by federal law, or image replacement documents that purport to be substitute checks and have not been previously endorsed by a bank. If you deposit such an item, you agree to reimburse us for losses, costs and expenses we may incur associated with warranty or indemnity claims.
If you deposit an item to your account that lacks an endorsement we may, or may be deemed to, endorse the item on your behalf. With respect to any such item, our rights and your liabilities shall be determined as though you actually endorsed and deposited the item. Further, any item deposited to your account that bears your stamped or facsimile endorsement will be deemed to bear your actual endorsement, whether such endorsement was affixed by you or by someone having no authority to supply your endorsement. 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, including without limitation attorneys’ fees and the costs of litigation, arbitration or other dispute resolution to the extent provided by law, that we incur because you fail to endorse an item exactly as it is drawn.
You understand that we may, in our sole discretion, redeposit checks deposited to your account and returned for various reasons for collection. We will have no liability for resubmitting or failing to resubmit these checks without notice to you.
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B. Direct Deposits
Our direct deposit service allows you to designate recurring payments such as social security, pension or payroll as a deposit directly from the payer into your account with us. This service is provided to you at no charge.
If you have arranged to have a direct deposit made to your account at least once every 60 days from the same person or company, you can call us at 1-888-8CAPFED (1-888-822-7333) to find out if the deposit has been made to your account.
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C. Funds Availability
Our policy generally is to make funds from your deposits available to you on the day we receive your deposit. Funds from electronic direct deposits or cash deposits to your account will be made available on the day we receive the deposit. Deposits made to your account at an ATM will be made available to you on the next business day after the day we receive your 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 or other authorized debits.
For determining the availability of your deposits, every day is a business day, except Saturdays, Sundays and federal holidays. If you make a deposit before 5:30 p.m. at one of our branches or before 5:00 p.m. at an ATM on a business day, we will consider that day to be the day of your deposit. Deposits made after 5:30 p.m. at one of our branches or after 5:00 p.m. at an ATM, will be considered made on the next business day. Note that deposits placed into a night depository after 7:00 a.m. may not be removed and verified until the following business day, and will be considered as a deposit on the date verified. Deposits made by mail are posted as of the date received, and considered as a deposit on that day.
Funds you deposit by check may be delayed for a longer period under the following circumstances:
- We believe a check you deposit will not be paid;
- You deposit a check that has been returned unpaid;
- You deposit checks totaling more than $5,000 on any one day;
- You have overdrawn your account repeatedly in the last six months;
- There is an emergency, such as failure of communications or computer equipment.
We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available no later than the third business day after the day of your deposit.
We reserve the right to grant faster availability to any customer on a case-by-case basis, or based upon the customer’s request. You may ask when a deposit will be available.
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 or cash deposits to your account will be available on the day we receive the deposit. Funds from deposits of wire transfers and the first $5,000 of a day’s total deposits of cashier’s, certified, teller’s, traveler’s and federal, state and local government checks will be available on the first business day after the day of your deposit if the deposit meets certain conditions. For example, the check must be payable to you. The excess over $5,000 will be available on the third business day after the day of your deposit. If your deposit of these checks (other than an U.S. Treasury check) is not made in person to one of our employees, the first $5,000 will not be available until the second business day after the day of your deposit. Funds from all other check deposits will be available on the third business day after the day of your deposit.
If you cash a check that is drawn on another bank, we may withhold the availability of a corresponding amount of funds that are already in your account. Those funds will be available at the time funds from the check we cashed would have been available if you had deposited it.
If you deposit a check that is drawn on another bank, we may make funds from the deposit available for withdrawal immediately but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available for withdrawal until time periods that are described elsewhere in this disclosure for the type of check that you deposited.
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D. Collection of Items
Even though we may credit your account immediately when you make a deposit, if we agree to accept any item (other than United States currency) for deposit or collection as your collection agent, we assume no responsibility beyond the exercise of due care and we may handle the collection of any such item in accordance with our usual practices. Special instructions for handling an item are effective only if made in a signed writing and given to us along with the item in question. Items and their proceeds may be handled in accordance with applicable Federal Reserve Bank regulations, clearing house association or funds transfer system rules, and contractual arrangements with other financial institutions.
All deposited items are provisionally credited to your account subject to final payment and our receipt of proceeds. Without prior notice to you, we may charge back any item to your account (and adjust the interest earned on your account, if any, accordingly) at any time before final payment, whether the item is returned or not (and whether it was deposited or returned by electronic or other means), and we may also charge back any item to your account if, within the normal handling period for such item, the item cannot be honored against the drawer’s account. We are authorized to pursue collection of previously dishonored items and, in so doing, may permit the drawee bank to hold an item beyond the “midnight deadline,” as defined by the Uniform Commercial Code as adopted by the applicable State.
If any check or other item deposited in your account is returned to us by the bank on which it was drawn through the Federal Reserve, a clearing house or other normal check return channels, we may accept that return and charge the check or other item back against your account without regard to whether the bank on which the check was drawn returned the check before its midnight deadline, even if doing so results in an overdraft in the account. Furthermore, if, after a check or other item deposited into your account is finally paid, it is returned to us by the bank on which it was drawn because someone has made a claim that the check or other item was altered, forged, unauthorized, or should not have been paid for some other reason, we may debit your account for the amount of the item, even if doing so results in an overdraft in the account.
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E. Fees, Service Charges and Balance Requirements
You agree to pay us, or have us deduct from your account, such fees and service charges as we may, from time to time, impose pursuant to this Agreement or the terms of the deposit account. You are liable for any account deficit resulting from fees and service charges, whether caused by you or another person authorized to withdraw from your account, together with the costs we incur to collect that deficit, including our reasonable attorneys’ fees. Our current fee schedule is shown in a separate fee schedule to this Agreement and is incorporated by reference.
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F. Electronic Presentment/Posting
We may charge your account on the day that a check or other transaction is presented (or returned) to us for payment. We may also charge your account or place a hold on funds at an earlier time if we receive notice that an item or transaction has been deposited for collection in another institution or is being processed against your account by a merchant (for example, at a point-of-sale terminal). Some merchants may obtain authorizations in advance for point-of-sale transactions in an amount greater than the final transaction amount. This could affect the balance available in your account to cover other transactions. We are not responsible for damages or wrongful dishonor if any item is not paid because of insufficient funds resulting from these procedures.
We reserve the right to process and post transactions on your account in any order we determine. Generally, we do not sort transactions based on dollar amount, but process them as they are received, and we generally process checks by check number sequence. The order in which you make withdrawals from your account is not necessarily the order in which we post the transactions to your account. This processing order may affect whether or not you incur an overdraft or overdraft fees.
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G. Reviewing Statements and Error Notification
Unless you instruct us otherwise, for accounts not subject to periodic account mailing, we will periodically mail an account statement to the last address you have given us. You agree to notify us promptly if you change your address. You also agree that if the U.S. Postal Service or one of its agents notifies us of a change in address for you, we may change your address based on such information, even if the information provided by the U.S. Postal Service is in error. If any statement is returned to us because of an incorrect address, we may stop sending statements to you, but for all purposes it shall still be considered as if we made your statement of account available to you as of the statement date that was or would have been printed on your statement, showing payment of items and the items paid or the information sufficient to allow you to reasonably identify the items paid. You must review your account statement and check images for errors or unauthorized signatures.
If the deposit account is a business account, you agree to have at least two individuals inspect the account statements on a regular basis to look for improper or unauthorized transactions and to ensure that the account is handled in a proper manner.
Except as noted in the Electronic Funds Transfer Disclosures at Part V, Section H or other document applicable to electronic funds transfer, if your account statement contains any errors or improper charges, you agree to notify us of any such errors or improper charges within 30 days of the date on which we mailed or otherwise made the affected statement available to you. If you do not notify us within that time, you are barred from bringing any action against us that is in any way related to the errors or improper charges. If we honor an item drawn on your account that contains a forged signature or endorsement or is altered in any way, you agree to notify us of such forgery or alteration within 30 days of the date on which the forged or altered item was provided to you or, if the item was not provided to you, within 30 days of the date on which we mailed or made available to you the account statement that contained a description of the forged or altered item. If you do not notify us in the time and manner required by this Agreement, you are barred from bringing any action against us that is related in any way to the forgery or alteration. In any case, you are barred from bringing any action against us for multiple unauthorized signatures or alterations by the same wrongdoer if you do not notify us in writing within 30 days after we mailed or made available to you the account statement that contained the description of that same person’s first forged or altered item drawn on your account.
Failure to report a forged or altered item within the time frames set forth above shall be deemed conclusive proof that you failed to exercise reasonable care and promptness in examining the statements and items of your account and in notifying us after discovery of the forgery or alteration. Moreover, because you are in the best position to discover an unauthorized signature, an unauthorized endorsement, or a material alteration, you agree that we will not be liable for paying such items if these items were drawn without authority or altered so cleverly (as by unauthorized use of a facsimile machine or otherwise) that the lack of authorization or alteration could not be detected by a reasonable person and you were negligent in some respect. An item description appearing in an account statement will be deemed sufficient for purposes of this paragraph if it contains the item’s number (or other identifier), amount, and date paid.
If you feel that an unauthorized debit to your account occurred because of a substitute check, and we have provided the substitute check to you, your reporting deadline is 40 days after we mailed you the statement containing the description of the substitute check. This expanded reporting deadline only applies to an account owned by one or more individuals for personal, family or household purposes and not to business accounts.
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H. Insufficient Funds, Uncollected Funds and Overdrafts
You and all other persons with whom you hold a joint account are jointly and severally liable for all overdrafts created in the account, regardless of who caused the overdraft or who benefited from the overdraft. “Overdraft” includes, but is not limited to, overdrafts caused by withdrawals against available funds.
When you do not have enough available funds in your account to cover a check, ACH, True Blue® Direct Visa® or Passcard debit transaction or other debit, we consider the check or debit an insufficient funds item (“NSF”). Whenever an item is received by us for authorization or payment that would create an NSF condition, we process and review the transaction. We will determine whether the transaction qualifies for payment under either our “Standard Overdraft Services” (discussed in Section I below) and/or our “Overdraft Protection Plan” (discussed in Section J, below) which is available to you upon registration, or if the authorization is to be denied or the item is to be returned unpaid.
If we overdraw your account for any reason, you agree to immediately deposit or otherwise repay us sufficient funds for the overdraft and any applicable overdraft fees. If you do not cover the overdraft within seven days, your account also will be subject to an Overdrawn Balance Fee. All subsequent deposits to your account, including deposits of benefit payments such as Social Security payments, may be applied by us to cover the overdraft item(s) and any overdraft fees. If we pay items by overdrawing your account on one or more occasions, we are not obligated to continue paying future insufficient funds items and we may stop paying your insufficient funds item without notifying you. Please refer to the separate fee schedule for a description of all NSF/Overdraft and other fees.
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I. Standard Overdraft Services
Our Standard Overdraft Services are provided to all customers (subject to your right, if the account is a consumer account, as defined in Part V, Section H), to “opt in” or “opt out” with respect to non-recurring debit card transactions and may cover your account when it becomes overdrawn. The Standard Overdraft Services are not our guarantee of payment. We will make a decision, solely in our discretion, as to whether an overdraft transaction created by check, ACH or other means will be paid.
Whether we return or pay an insufficient funds item using the Standard Overdraft Services depends on a number of factors, including the amount of the item, the past activity in your account and other deposit account(s) you hold with us, and is facilitated by a proprietary automated scoring system. We may, without prior notice to you, either return any insufficient funds item unpaid or pay it and overdraw your account. You may not overdraw your account at an ATM using the Standard Overdraft Services. If you wish to have the ability to create an overdraft transaction at an ATM, you may apply for an Overdraft Protection Plan, as discussed below.
If you do not desire to have your overdrafts reviewed under our Standard Overdraft Services, you may request to opt-out of these services and any transactions originated by you that would create an insufficient funds balance will be rejected or returned unpaid. For certain types of transactions, you will be charged a fee whether we pay the item or not. Please refer to the separate fee schedule for the Overdraft and NSF charges. Special rules apply for our Standard Overdraft Services for nonrecurring debit card transactions. These are covered in a separate disclosure covering nonrecurring debit card transactions and our Standard Overdraft Services which you may obtain at any branch office, or by contacting customer service at 1-888-8CAPFED (1-888-822-7333).
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J. Overdraft Protection Plan
Whether you “opt-in” or “opt-out” for our Standard Overdraft Services for debit card and/or other transactions, you also may choose to apply for our Overdraft Protection Plan. While a fee is charged when your Overdraft Protection Plan is used, it usually will be less than fees charged for the Standard Overdraft Services. You should compare fees and your options for overdrafts. The Overdraft Protection Plan pays overdrafts by authorizing a transfer of funds from a companion checking, money market, savings or Execuline home equity line of credit loan account owned by you and held at Capitol Federal, subject to certain limitations. Please refer to the separate fee schedule for information concerning the Overdraft and NSF charges. You may contact us at any branch or our customer service at 1-888-8CAPFED (1-888-822-7333) for more information or to apply for an Overdraft Protection Plan. The Overdraft Protection Plan must be accepted by us before the overdraft occurs in order for it to be used to automatically cover an overdraft.
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K. Rules Applicable to Checks
1. Remotely Created Checks
If you voluntarily give information about your account (such as our routing or transit number and/or your account number) to a party attempting to sell you goods or services via telephone or any other medium, that party may use the information you give to create a “remotely created check” and then present it for payment. The remotely created check is never physically signed by you. Instead, you authorize it by orally (or electronically) approving the transaction. You understand that if you do not physically deliver a signed check to the party and the party instead presents a remotely created check for payment, any debit to your account for that remotely created check will be considered authorized by you as if the remotely created check were actually signed by you. If you do not have a checking account, a remotely created check on your account will be rejected.
If you deposit a remotely created check to your account, you represent, warrant and agree to the following: (1) the person on whose account the check is drawn authorized the issuance of the check in the amount and to the payee stated on it; (2) if you created the check (a) you have express, verifiable proof of that authorization, (b) you will maintain that proof for at least 2 years from the date of the authorization, and (c) you will give us that proof upon our request for it; and (3) if the check is returned, you owe us the amount of the check, regardless of when the check is returned and must reimburse us for any losses, costs and expenses we may incur as a result of any breach of these representations, warranties and agree- ments. We may take funds from your account to pay the amount you owe us, and if there are insufficient funds in your account, you still owe us the remaining balance.
2. Electronic Check Conversion
You authorize us to honor electronic debits against your account resulting from electronic check conversions. An electronic check conversion occurs when you give a paper check to a merchant or other payee and authorize that person to capture the routing, account, and serial numbers from that paper check to initiate an electronic debit to your account. This applies whether the check is blank, partially completed, or fully completed and signed; whether the check is presented at a point of sale or other payee or mailed to a merchant or lockbox and later converted to an electronic funds transfer; or whether the check is retained by you or the merchant or other payee.
If one of your paper checks is converted, it will be collected electronically and charged against your account much more quickly than a paper check. This means that (1) you will have a reduced right to stop payment, (2) you need to make sure that your account has sufficient collected funds to cover the debit, and (3) we will have no image or copy of the cancelled check. If a merchant uses a blank check to initiate a debit entry at the point of sale, the merchant should return the voided check to you. You should treat the voided check with care because someone else who obtains possession of it could use the information to initiate additional debits against your account. A merchant or other payee who receives your check by mail or who accepts your check at the point of sale and decides to convert it to an electronic debit during its back office processing should give you notice of the conversion. Regardless of whether your check is converted at the point of sale, at the merchant’s lockbox or during the merchant’s back office processing, a description of the transaction will appear on your monthly statement.
3. Check Imaging
We may add images of your deposit account documents to our electronic document storage system. After doing so, we may destroy the original documents.
Your cancelled checks will not be returned to you, but will be imaged and the physical checks will be destroyed shortly after we process your statement. If you have True Blue Online® banking, you may access electronic images of checks through your online banking. You can obtain copies of the image of your checks or substitute checks in person at one of our branches, or by calling us at 1-888-8CAPFED (1-888-822-7333) and providing us with account number, check number, the amount of the check, and (if known) the date the check was paid. We may charge your account a fee for each copy (including the front and back of the check). We are not responsible for any special or consequential damages under any circumstances for our inability to provide copies of checks. Our liability, if any, will not exceed the face amount of the check in question. You agree to provide us with reasonable proof of any loss.
As your agent for collecting checks you deposit with us, we may “truncate” paper checks (i.e. convert them into electronic information or images) and present and return them electronically. We may also truncate paper checks that are dishonored by the drawer’s bank when we represent them. We may reconvert a truncated check into a paper “substitute check” which is the legal equivalent of the original. We may debit your account for truncated or substitute checks or other electronic information or image replacement documents that are replacements for properly payable items.
4. Stop Payments
At your request, we may stop payment on a check drawn against your account, as applicable, provided you meet our conditions to effect such a request, subject to a service charge. We may accept the Stop Payment request from any of the joint owners of the account (if the account is jointly owned) whether or not that joint owner is the signer of the check. In order to place a stop payment order, you must tell us the exact amount of the item, the number of the check, and the number of the account; otherwise, our computer may not catch the stop order. If you produce a check by computer or in any other manner that does not contain a magnetic-encoded check number, we may not be able to honor the stop order. We are not responsible if the item in question is not described with reasonable certainty, and we are entitled to a reasonable period of time after we receive a stop order to notify our employees. You may notify us either orally or in writing to stop payment. An oral stop payment order on a check is binding on us only for 14 days unless confirmed in writing within this period. A written stop payment order is effective for 6 months, unless renewed in writing prior to the order becoming ineffective. A fee, as set forth in the separate fee schedule, will apply to all stop payment orders, including renewals of stop payment orders. If we fail to honor a timely and accurate stop payment order, we reserve the right not to recredit your account unless you can demonstrate the fact and amount of your loss. If we do recredit your account after paying a check over a valid and timely stop order, you agree to sign a statement describing the dispute with the payee or other holder of the check, and to assist us in legal action taken against that person.
You do not have the right to stop payment on a cashier’s check, an official check, a teller’s check, a certified check, a money order or a traveler’s check you have purchased from us. We have no responsibility to stop payment on any check or other item not conforming to our printing and encoding specifications.
5. Stale, Time-Dated and Post-Dated Items
We maintain the option to either pay or dishonor any stale check (i.e., more than 6 months old) upon presentation to us. Our high-speed automated check processing equipment cannot detect time-dated checks (i.e., checks stating that they are not valid after a specified date or for more than a specified period of time). Therefore, you agree that we will not be liable for charging your account after the date or beyond the period stated on an otherwise properly payable time-dated check. Similarly, our check processing equipment cannot detect post- dated checks (i.e., a check bearing a date later than the actual calendar date it was written). Therefore, it is recommended that you not issue post-dated checks as a means of withdrawal and you agree that we are not responsible for charging your account before the indicated date on a properly payable but post-dated check.
6. Customer’s Responsibility for Check Deposits
You agree to assume responsibility for and to indemnify us for any loss we may incur as a result of your failure to comply with the endorsement standards set forth in this Agreement. You agree not to place any mark, signature, stamp, or other writing in the area designated as the “Depository Bank Area” on the reverse side of any check, draft, or other item deposited in your account with us. You are also responsible for the condition of a check or item when you issue or deposit it. If a check or item is returned or payment is delayed as a result of any writing or marking that you or a prior endorser placed on the front or back of the check or item, you will be responsible for any cost and liabilities associated with such return or delay.
7. No Restrictions
We will not recognize or honor any restrictions of negotiability placed on checks. We may disregard any and all information on a check other than the signature, the identification of the drawee bank and payee, the amount, and any other information that appears in the Magnetic Ink Character Recognition line at the bottom of the check.
8. Automated Processing
We process items with high-speed automated equipment. In order for that equipment to function properly and efficiently, all items drawn against an account or used to withdraw funds from an account must meet certain formatting and other technical specifications. You agree to use the forms, including check forms, approved by us. If we receive an item that cannot be processed by us electronically, or which is defectively drawn, we reserve the right to reject the item.
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L. Lost Account Access Instrument
You agree to notify us promptly if your Passcard, True Blue® Direct Visa® card, or any of your blank checks are lost or stolen, or if you believe that someone may transfer money from your account without your permission.
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Your signature on the signature card is your authorized signature. For the payment of funds and for other purposes relating to any account you have with us, we are authorized to recognize your signature, but we will not be liable to you for refusing to honor your checks or other signed instructions if we believe in good faith that the signature appearing on such checks is not genuine or the check is not properly payable from the account. We are entitled to take a reasonable time to determine whether a check is properly payable from your account. A reasonable time shall include the time necessary to confirm that you authorized the check and includes one business day after the day the check was presented to us. We are not liable to you if we decide, in our good faith judgment after following reasonable banking procedures to determine the facts, that the check is not properly payable from your account. You will receive either a Passcard or a True Blue® Direct Visa® card and will establish a PIN when you open an account. Your use of your Passcard and PIN will constitute your electronic signature at our branches and ATMs.
When an account is established, you may indicate your desire for more than one authorized signature on a check or other item drawn against the account by designating a specific number of desired signatures on the signature card, a resolution or in a separate written authorization that we receive. However, because our automated check processing precludes us from identifying items that require multiple signatures, you recognize that such a requirement is for your internal purposes only, and you agree that we are not required to determine if any check or other item drawn against your account contains the number of desired signatures indicated by any such designation.
The authorized signatures for an account are those reflected on the Signature Card, any resolution or other separate written authorization relating to the account received by the Bank. For the payment of funds and for other purposes relating to any account you have with the Bank, the Bank is authorized to recognize those signatures, but it will not be liable to you for refusing to honor a check or other signed instructions if it believes in good faith that the signature appearing on such checks or instructions is not genuine. Additionally, if you have authorized the use of a facsimile signature or endorsement device or have otherwise used such a device, we may honor or accept for deposit any check or other signed instruction which bears or appears to bear your facsimile signature or endorsement even if it was made by an unauthorized person or with a counterfeit facsimile device. Therefore, you should maintain close control over your facsimile signature or endorsement device and promptly review your statements for unauthorized use of the device.
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N. Dormant Accounts
If your account has been inactive, you will be charged the fee specified (see separate fee schedule) and, unless applicable law otherwise provides, we may stop paying interest on your account.
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