Cash Reserve 01141-1 - Union Bank

Cash ReserveAccount Agreementand DisclosureStatementEffective January 1, 2009© 2009 Union Bank, N.A.01141 (1/09)

The following terms and conditions apply to Cash ReserveAccounts with Union Bank. “You” refers to each accountholder on the Checking Account held by Union Bank towhich overdraft protection pursuant to the terms of thisCash Reserve Account Agreement and Disclosure Statement(“Agreement”) applies. By using your Cash ReserveAccount, you agree to the terms and conditions of thisAgreement.This Agreement includes, for purposes of disputeresolution, a Judicial Reference clause for Cash ReserveAccounts held in California and a Jury Trial Waiverclause for Cash Reserve Accounts held in Oregon andWashington.1. CHECKING ACCOUNT. YOU MUST MAINTAIN ACHECKING ACCOUNT (“Checking Account”) ATTHE UNION BANK.2. USING YOUR CASH RESERVE ACCOUNT.a. Checking Overdraft Advance. You can use yourCash Reserve Account by overdrawing yourChecking Account. Overdrawing your CheckingAccount includes (i) writing a check for morethan the balance in your Checking Account;(ii) using one of Union Bank’s automatedtransfer features which causes a debit to yourChecking Account for more than the balance inyour Checking Account; (iii) using UnionBank’s Automated Teller Machine (“ATM”) orother network ATM’s cash withdrawal or otherfeatures which causes a debit to your CheckingAccount for more than the balance in yourChecking Account; (iv) obtaining cash for anon-Union Bank check if that check is laterreturned to Union Bank without payment forany reason and your Checking Account balanceis insufficient to cover the amount; or (v) UnionBank Checking Account charges or fees chargedwhich exceed the balance in your CheckingAccount. In any of these cases, Union Bank willadvance funds from your Cash Reserve Accountto your Checking Account to cover the overdraftin increments of $1.00, rounding up to thenearest dollar, up to your available credit limit.1

. Direct Advance. You can use your Cash ReserveAccount by filling out an advance draft at anyUnion Bank office in the exact amount youwant, up to your available credit limit.3. FINANCE CHARGE AND ANNUALPERCENTAGE RATE.Finance charges on advances from your Cash ReserveAccount, as shown on your periodic statement, arethe sum of: (i) the Interest Rate Finance Charge and(ii) the Transfer Finance Charge. These financecharges will be charged to your Cash ReserveAccount under the following conditions andcalculated in the following manner:a. Interest Rate Finance Charge. We calculate aportion of the finance charge on your CashReserve Account by applying the daily periodicrate to each day’s ending principal balance. Eachday’s principal balance consists of the unpaidamount of any previous advances, plus advancesposted that day, less any credits or paymentsposted that day, excluding any unpaid financecharges or the annual fee. Each day that there isa positive daily principal balance, Union Bankwill calculate an Interest Rate FINANCECHARGE by multiplying the daily principalbalance by the daily periodic rate of .000493151(corresponding ANNUAL PERCENTAGERATE of 18%). The total of each day’s positivedaily principal balances divided by the number ofdays in the billing cycle will be shown on yourperiodic statement as the “average daily balance”.b. Transfer Finance Charge. A portion of thefinance charge on your Cash Reserve Account isa Transfer FINANCE CHARGE of $10.00 foreach day on which the aggregate of advancesposted that day from whatever source is $10.00or greater. The Transfer Finance Charge will becharged only once per day. The Transfer FinanceCharge does not apply to Cash ReserveAccounts originated in the state of Washington.c. Annual Percentage Rate. This rate, andcorresponding daily periodic rate, is the rateapplied to positive daily principal balances when2Interest Rate Finance Charges are calculated,excluding any Transfer Finance Charges.d. Billing Cycle Annual Percentage Rate. In billingcycles where Transfer Finance Charges areassessed, the Transfer Finance Charge is includedin the calculation of the Annual PercentageRate for the billing cycle, which may cause the“Billing Cycle Annual Percentage Rate”, asshown on your periodic statement, to exceed theInterest Rate Finance Charge corresponding tothe Annual Percentage Rate.e. Grace Period. There is no grace period foradvances made from your Cash Reserve Account.Finance charges accrue on advances from thedate advances are posted to your Cash ReserveAccount until they are paid in full.4. PROMISE TO PAY. When you use your Cash ReserveAccount or permit someone else to use it, youpromise to pay the total amount of the CheckingAccount overdraft advance or direct advance. Youalso promise to pay any finance or other charges thatmay become due. If there is more than one accountholder, each of you is bound, jointly and severally,and each is liable for all advances and charges to theCash Reserve Account.5. PAYMENTS. You will receive a monthly periodicstatement with your Checking Account statementshowing advances, payments, finance charges andthe outstanding new balance on your Cash ReserveAccount. You agree to pay Union Bank at least theMinimum Monthly Payment due. The MinimumMonthly Payment is the greater of $25.00 or 3% ofthe then current balance of principal plus financecharges, plus any delinquent amounts owed. If theCash Reserve Account balance is less than $25.00,you agree to pay the Cash Reserve Account balancein full. You may not make any payment to your CashReserve Account, directly or indirectly, by taking anadvance on your Cash Reserve Account.a. Automatic Payments. By using your CashReserve Account, you authorize Union Bank toautomatically deduct the Minimum Monthly3

Payment amount each month from yourChecking Account on the 15th day after yourstatement date (the “payment due date”). Ifthere are insufficient funds in the CheckingAccount to pay the Minimum MonthlyPayment, you agree to pay the MinimumMonthly Payment due by direct paymentsas indicated below.b. Direct Payments. You can make a directpayment to reduce or pay in total your CashReserve Account. A direct payment must beaccompanied by instructions to apply the paymenttoward your Cash Reserve Account and by yourChecking Account number.c. No Automatic Payment When the DirectPayment Exceeds the Minimum MonthlyPayment. In any month when you make one ormore direct payments after the statement date,and prior to the payment due date which, inthe aggregate, equal or exceed the MinimumMonthly Payment, the Minimum MonthlyPayment for that month will be deemed paidand no automatic payment will be deductedfrom your Checking Account by Union Bankthat month. Direct payments made in onestatement period will not be applied against anyMinimum Monthly Payment which may becomedue in any subsequent statements.d. Delinquent Amount. When used in thisAgreement, the term “delinquent amount” meansany payment that was not made when due asprovided herein.e. Payment Application. Payments will be appliedin the following order: (1) billed Interest RateFinance Charge, (2) billed annual fee, (3) billedTransfer Finance Charges, (4) principal.6. DELINQUENT ACCOUNT. The term delinquent,when used in this Agreement, means that yourChecking Account balance was insufficient to coverthe automatic payment of the Minimum MonthlyPayment and you did not make any direct paymentsthat were equal to or exceeded the MinimumMonthly Payment due by the payment due date. Ifyour Cash Reserve Account is delinquent more than10 days after the payment due date, you cannotobtain a Checking Account overdraft, or directadvance until the delinquent amount and any thencurrent Minimum Monthly Payments have been paid.7. CREDIT LIMIT. You are advised of your credit limiton your monthly periodic statements. You promisenot to, nor are you authorized to, borrow more thanthat limit.8. OTHER FEES AND CHARGES.a. Annual Fee. Your Cash Reserve Account issubject to a non-refundable, non-proratableannual fee of $12.00. This fee is assessed everyJune 1st.b. Copies Of Documents. If you ask for a copy ofany document, Union Bank will charge youspecial handling fees based on our then currentfee schedule.9. NO SECURITY INTEREST. Regardless of any otheragreement between Union Bank and you or anythird party, your Cash Reserve Account is notsecured by any contractual lien on any of yourproperty. However, Union Bank has a general lienarising by operation of law upon all goods,instruments, documents, and chattel paper belongingto you while such is in the possession of Union Bank.10. CANCELLATION OF YOUR ACCOUNT.a. Cancellation by You. Subject to paragraph(c) below, you may cancel your Cash ReserveAccount at any time by writing to Union Bankat the address shown on the top of your monthlyperiodic statement. If more than one person isliable under this Agreement, any person so liablemay cancel your Cash Reserve Account asprovided above without the consent of any otherperson. If you cancel your Cash Reserve Account,at Union Bank’s option, the entire Cash ReserveAccount balance, and all transaction amountsnot yet billed, are immediately due and payableupon Union Bank’s demand.45

. Cancellation by Us. Union Bank may cancelyour Cash Reserve Account, with or withoutcause, at any time by notifying you in writing atthe address shown for you on Union Bank’sChecking Account records.c. Continue to Be Liable. If your Cash ReserveAccount is cancelled by you or Union Bank, allpersons liable under this Agreement shall remainliable for all sums owed on your Cash ReserveAccount in full, notwithstanding the cancellation.d. Default and Acceleration of Amounts Owing.Subject to applicable law, in addition to UnionBank’s right to cancel your Cash ReserveAccount as described above, the happening ofany of the following constitutes an event ofdefault: (i) use of your Cash Reserve Accountin any manner or amount or by any means notauthorized by Union Bank; (ii) your failure topay or to comply with the terms of thisAgreement, including allowing your CashReserve Account to become delinquent; (iii) yourmisrepresentation to Union Bank; (iv) anyadverse change in the financial condition ofanyone liable on the Cash Reserve Account;(v) any change in ownership of the CheckingAccount; (vi) the closing for any reason of theChecking Account; (vii) anyone liable on theCash Reserve Account does not provide UnionBank with updated financial information uponrequest, or provides Union Bank with financialinformation that leads us to conclude that any ofyou is no longer creditworthy; (viii) anyoneliable on the Cash Reserve Account is in defaulton any other account with Union Bank;(ix) Union Bank has evidence or a reasonablebelief that anyone on the Cash Reserve Accountis unable or unwilling to repay obligationsincurred under this Agreement; or (x) anyoneliable on the Cash Reserve Account dies,becomes insolvent, or files for relief under theU.S. Bankruptcy Code or any similar state orfederal law. Upon the occurrence of any one ormore of the above events of default, at UnionBank’s option, the unpaid balance of your Cash6Reserve Account shall be immediately due andpayable, and Union Bank’s obligation to makeany further advances hereunder shall terminate,even if the payments on your Cash ReserveAccount are then current.11. CREDIT INFORMATION. You authorize Union Bankto release information concerning your credit andCash Reserve Account experience with Union Bankto guarantors, other creditors, consumer reportingagencies, and others who may properly receive suchinformation. You understand that information youhave provided, your Cash Reserve Account filesand history, as well as information concerning yourcreditworthiness, may be updated and shared withothers within Union Bank from time to time forconsideration for other products or services. Youauthorize Union Bank to obtain such information asit may require to verify any information you haveprovided, including making credit and employmentinquiries. Upon Union Bank’s request, you agree tofurnish such information as Union Bank may requeston your financial condition. You authorize UnionBank to obtain your name and address informationfrom time to time from the appropriate State agency,notwithstanding any right you may have to keepsuch information confidential. You acknowledge yourresponsibility to inform Union Bank of any changein your name(s), address, or employment within areasonable time. Union Bank will retain informationin connection with your Cash Reserve account aslong as Union Bank deems necessary to do so.12. AMENDMENT. Union Bank may amend the termsand conditions of this Agreement from time to timeupon at least 15 days prior notice sent by mail toyour address as shown on Union Bank’s CheckingAccount records. The outstanding balance of yourCash Reserve Account and any subsequent advanceswill be subject to the amended terms. Amendedterms supercede any previous conflicting terms to theextent of the conflict. Unless otherwise stated in theamendment, all other terms of the Agreement ineffect at the time of the amendment shall remain infull force and effect.7

13. DISPUTES/JUDICIAL REFERENCE (CALIFORNIA)AND JURY TRIAL WAIVER. To the extent permittedby law, in connection with any claim, cause ofaction, proceeding or other dispute concerning yourCash Reserve Account (each a “Claim”), you andUnion Bank expressly, intentionally and deliberatelywaive any right each may otherwise have to trial byjury. In the event that the waiver of jury trial setforth in the previous sentence is not enforceableunder the law applicable to this Agreement, such asCalifornia, you and Union Bank agree that anyClaim, including any question of law or fact relatingthereto, shall, at the written request of you or UnionBank, be determined by judicial reference pursuantto the state law applicable to this Agreement. Youand Union Bank shall select a single neutral referee,who shall be a retired state or federal judge. In theevent that you and Union Bank cannot agree upon areferee, the court shall appoint the referee. Thereferee shall report a statement of decision to thecourt. Nothing in this paragraph shall limit the rightof you or Union Bank at any time to exercise selfhelpremedies, exercise any general lien arising byoperation of law or obtain provisional remedies. Youand Union Bank shall bear the fees and expenses ofthe referee equally, unless the referee orders otherwise.The referee shall also determine all issues relating tothe applicability, interpretation and enforceability ofthis paragraph. You and Union Bank acknowledgethat if a referee is selected to determine the Claims,then the Claims will not be decided by a jury.14. MISCELLANEOUS TERMS AND CONDITIONS. Inthe event any provision of this Agreement is foundto be illegal or unenforceable, the remainder of thisAgreement shall remain in full force and effect. YourCash Reserve Account will be governed by the lawof the state in which your Cash Reserve Account islocated and by applicable federal law. Union Bank’sfailure to exercise any right under this Agreementshall not be construed as a waiver of that or anyother right. This Agreement represents the entireunderstanding of the parties hereto with respect tothe subject matter hereof, and supersedes all priornegotiations, written or oral agreements, or coursesof dealing between the parties.8YOUR FEDERAL LAW BILLING RIGHTSKeep This Notice for Future UseThis notice contains important information about yourrights and our responsibilities under the Federal FairCredit Billing Act.Notify Us in Case of Errors or Questions About Your Bill.If you think your bill is wrong or if you need moreinformation about a transaction on your bill, write to uson a separate sheet at the address listed on your bill.Write to us as soon as possible. Union Bank must hearfrom you no later than 60 days after we sent you the firstbill on which the error or problem appeared. You cantelephone us, but doing so will not preserve your rights.In your letter, give us the following information:■■■Your name and account number.The dollar amount of the suspected error.Describe the error and explain, if you can, whyyou believe there is an error. If you need moreinformation, describe the item you are not sure about.Since you have authorized us to pay your bill automaticallyfrom your Checking Account, you can stop the paymenton any amount you think is wrong. To stop payment, yourletter must reach us three (3) business days before theautomatic payment is scheduled to occur.Your Rights and Our Responsibilities After We ReceiveYour Written NoticeWe must acknowledge your letter within 30 days, unlesswe have corrected the error by then. Within 90 days, wemust either correct the error, or explain why we believethe bill was correct.After we receive your letter, we cannot try to collect anyamount you question or report you as delinquent. Wecan continue to bill you for the amount you question,including finance charges, and we can apply any unpaidamount against your credit limit. You do not have to payany questioned amount while we are investigating, butyou are still obligated to pay the parts of your bill that arenot in question.If we find that we made a mistake on your bill, youwill not have to pay any finance charges related to any9

questioned amount. If we didn’t make a mistake, you mayhave to pay finance charges, and you will have to makeup any missed payments on the questioned amount. Ineither case, we will send you a statement of the amountyou owe and the date that it is due.If you fail to pay the amount that we think you owe, wemay report you as delinquent. However, if our explanationdoes not satisfy you and you write to us within ten (10)days telling us that you still refuse to pay, we must informanyone we report you to that you have a question aboutyour bill. And, we must provide you with the name ofanyone we reported you to. We must inform anyone wereport you to that the matter has been settled between uswhen it finally is.If we don’t follow these rules, we cannot collect thefirst $50.00 of the questioned amount, even if your billwas correct.10