Effective January 1, 2010
Time Deposit Account
Disclosure and Agreement
Table of Contents
Introduction..............................................................................................1
Interest.......................................................................................................1
Limitations on Time Deposit Accounts (Non-Retirement).......2
Limitations on Retirement Time Deposit Accounts.....................2
Minimum Opening Deposit................................................................3
Promotional Rate Time Deposits......................................................3
Fees............................................................................................................4
Automatic Renewal Provision............................................................4
Early Withdrawal Fee and Compensating Fee..............................4
Other Fees and Charges......................................................................6
Other Agreements................................................................................8
Introduction
The enclosed Maturity Notice describes the maturity date of your time
deposit or Retirement Time Deposit account. If applicable, this notice
also includes the new maturity date and grace period for a withdrawal.
If the new interest rate and Annual Percentage Yield have not yet been
determined, the Maturity Notice gives you the date when the rates will
be available and a telephone number to call for this information. If the
new interest rate and Annual Percentage Yield are already available,
they appear on your Maturity Notice.
We will send you a renewal notice with the new interest rate and Annual
Percentage Yield the day after your time deposit or Retirement Time
Deposit matures.
Interest
Time Deposit Accounts (Non-Retirement). The interest rate on
Custom Time Deposits and Payment Bond Time Deposits is subject
to market conditions and your account’s balance and term, and is set
at our discretion. The interest rate and Annual Percentage Yield are
fixed during the new term of your deposit, but are subject to change
with each additional renewal. You will be paid this rate until the new
maturity date, which is shown on the Maturity Notice.
Interest on your Custom Time Deposit may be paid to your time
deposit account, or deposited to your Union Bank checking, savings
or money market account, or a cashier’s check can be issued.
Interest on your Payment Bond Time Deposit may be deposited to
your Union Bank checking, savings or money market account, or a
cashier’s check can be issued.
Retirement Time Deposit Accounts. The interest rate on your Fixed
Rate Time Deposits is shown on your Time Deposit Account Receipt.
When you open this account, you agree to keep the principal in the
account on deposit with us for the entire term. The interest rate
and Annual Percentage Yield are fixed during the new term of your
deposit but are subject to change with each additional renewal. You
will be paid this rate until the new maturity date, which is shown on
the Time Deposit Account Receipt.
The terms for the Fixed Rate Time Deposits are 90 days through
120 months. Time deposits opened before February 17, 2007, with
terms less than 90 days may continue to be held and renewed for the
original term, but new or additional time deposit contributions must
have terms of at least 90 days.
18-Month Variable Rate IRA Time Deposit – Union Bank® offers an
18-month term deposit account. The interest rate on the 18-Month
Variable Rate Time Deposit is indexed to U.S. Treasury One-Month
Constant Maturity Bills, less 0.85%; will not be less than that
rate; will never be less than zero; is reset monthly; and is set
at our direction. (This index can be accessed through the
Federal Reserve Statistical Release at
http://www.federalreserve.gov/Releases/H15/update.)
1
12-Month Variable Rate Time Deposit – The interest rate on the 12Month Variable Rate Time Deposit, called the Retirement Income
IRA CD, is indexed to U.S. Treasury One-Month Constant Maturity
Bills, less 0.75%; will not be less than that rate; will never be less
than zero; is reset monthly; and is set at our direction. (This index
can be accessed through the Federal Reserve Statistical Release at
http://www.federalreserve.gov/Releases/H15/update.)
All Time Deposit and Retirement Time Deposit Accounts. The Annual
Percentage Yield for your time deposit account assumes interest
will remain on deposit until maturity. Withdrawing interest before
maturity will reduce earnings. Time deposit and Retirement Time
Deposit accounts are non-negotiable.
Interest on time deposit and Retirement Time Deposit accounts
with a principal balance of less than $1,000,000 is compounded
daily. However, interest on time deposits of $1,000,000 or more
is simple interest. The frequency with which you may choose to
receive your interest payment depends on your account’s term. For
time deposits with terms of 7 days through 31 days, interest may be
paid only at maturity; for terms of 32 days to 1 year, interest may be
paid monthly, quarterly, semiannually, annually, or at maturity; for
terms greater than one year, interest must be paid at least annually,
but may be paid monthly, quarterly, or semiannually. For Retirement
Time Deposit accounts with terms of 90 days through 120 months,
interest may be paid monthly or quarterly.
Note: Any portion of a time deposit withdrawn due to the death
or legal incompetence of the owner is not subject to an Early
Withdrawal Fee or Compensating Fee. In addition, withdrawals
from a Retirement Time Deposit account made after you have
reached age 59 1/2 , or made after you have reached age 70 1/2 and as
part of a prearranged schedule of systematic payments made on a
monthly, quarterly, semiannual, or annual basis, are exempt from
an Early Withdrawal Fee or Compensating Fee. Withdrawals from
a Retirement Income IRA CD account (12-Month Variable IRA) are
exempt from the Early Withdrawal Fee or Compensating Fee.
A Bonus Rate IRA Rollover is a Fixed Rate Retirement Time Deposit
with a bonus rate of interest for the first 12 or 24 months of its first
term. The term you choose determines how many months your
account will initially earn interest at the “bonus” rate, which is
1/4% above the rate that applies for the remaining portion of the
term. Upon renewal, the terms and conditions for the Fixed Rate
Retirement Time Deposit account will apply.
Minimum Opening Deposit
Time Deposit Accounts (Non-Retirement)
●●
7–31 Days......................................................................................$ 2,500.00
32 Days–60 Months.................................................................$
350.00
●●
We use the daily balance method to calculate interest for all time
deposit and Retirement Time Deposit accounts. This method applies
a daily periodic rate to the principal in the account each day.
Limitations on Time Deposit Accounts
(Non-Retirement)
After a Custom Time Deposit, Payment Bond Time Deposit, or
Fixed Rate Time Deposit account is established, you may not make
additional deposits into the account until the new maturity date.
Custom Time Deposit
Payment Bond Time Deposit
7–31 Days......................................................................................$ 2,500.00
32–364 Days................................................................................$ 1,000.00
12–60 Months.............................................................................$
500.00
●●
Retirement Time Deposit Accounts
Fixed Rate Time Deposit.........................................................$
350.00
12-Month Variable Rate Time Deposit...............................$25,000.00
18-Month Variable Rate Time Deposit...............................$
500.00
The same amount required to open any time deposit account must
remain in the account when it renews.
Limitations on Retirement Time Deposit Accounts
After an 18-Month Variable Rate Time Deposit account or a
12-Month Variable Rate Time Deposit (Retirement Income IRA CD)
is established, you may continue to make additional deposits. Each
additional electronic deposit must be at least $10. Each additional nonelectronic deposit must be at least $25. Interest begins to accrue on
the Business Day you make an additional deposit of cash or non-cash
items (for example, checks) to your 18-Month or 12-Month Variable
Rate Time Deposit. After an 18-Month Variable Rate Time Deposit is
renewed, you may not generally make withdrawals from the account
until the new maturity date without incurring an Early Withdrawal
Fee or Compensating Fee.
Withdrawals from a 12-Month Variable Rate Time Deposit (Retirement
Income IRA CD) are allowed at any time without incurring an Early
Withdrawal Fee or Compensating Fee.
2
Promotional Rate Time Deposits
From time to time, we may offer special rates on time deposit accounts
for specific terms. These time deposit accounts are considered
“Promotional Rate Time Deposits” and may not be offered at all times.
Promotional Rate Time Deposits have different minimum balance
requirements, depending on rate, which are disclosed on the Interest
Rate Sheet provided at the time of account opening. Your Promotional
Rate Time Deposit account will be automatically renewed for the same
term, at the non-promotional, or standard, interest rate in effect on the
account’s maturity date. Interest rates are set at our discretion and are
subject to market conditions, your account balance and term, and your
continuing to maintain a Union Bank checking account.
You are required to maintain a Union Bank checking account in order
to qualify for a Promotional Rate Time Deposit. For descriptions of
our checking products, please refer to the Checking Accounts section
of our All About Personal Accounts & Services Disclosure and Agreement.
3
The interest rate on a Promotional Rate Time Deposit is fixed during
the term of your deposit, as long as you maintain your Union Bank
checking account but is subject to change with each renewal and may
be reduced if the required checking account is closed. The interest rate
and Annual Percentage Yield (APY) for your deposit are shown on
your Time Deposit Account Receipt.
Terminating the Qualifying Checking Account. If you close your
checking account or allow it to have a zero balance at any time, we
may change the interest rate on your Promotional Rate Time Deposit
to the standard rate that was in effect on the day you originated
your Promotional Rate Time Deposit. This standard interest rate
and corresponding APY are provided to you at the time of account
opening on the Interest Rate Sheet. If the interest rate is changed due
to the closure of your Union Bank checking account, the new interest
rate will then be fixed for the remainder of your term.
Except as described above, Promotional Rate Time Deposit accounts
are subject to the terms and conditions of our Custom Time Deposit.
Product/Offer Termination. Union Bank reserves the right to
terminate this program/offer at any time with or without notice.
Fees
Note: Any portion of a time deposit withdrawn due to the death
or legal incompetence of the owner is not subject to an Early
Withdrawal Fee or Compensating Fee. In addition, withdrawals
from a Retirement Time Deposit account made after you have
reached age 59 1/2 , or made after you have reached age 70 1/2 and as
part of a prearranged schedule of systematic payments made on a
monthly, quarterly, semiannual, or annual basis, are exempt from
an Early Withdrawal Fee or Compensating Fee. Withdrawals from
a Retirement Income IRA CD account (12-Month Variable IRA) are
exempt from the Early Withdrawal Fee or Compensating Fee.
Early Withdrawal Fee. The Bank’s Early Withdrawal Fee will be
assessed as follows:
For terms of 7 days through 31 days, the Early Withdrawal Fee is an
amount equal to the largest of:
a.All interest earned on the amount withdrawn;
b.An amount equal to 7 days’ interest on the amount withdrawn; or
c.An amount equal to the interest that could have been earned on
the amount withdrawn for one-half the term.
For terms of 32 days to 91 days, the Early Withdrawal Fee is 31 days’
simple interest at the rate being paid on the amount withdrawn, or
the Compensating Fee explained below, whichever is greater.
For terms of 92 days to one year, the Early Withdrawal Fee is 91 days’
simple interest at the rate being paid on the amount withdrawn, or
the Compensating Fee explained below, whichever is greater.
For terms over 1 year, the Early Withdrawal Fee is 181 days’ simple
interest at the rate being paid on the amount withdrawn or the
Compensating Fee explained below, whichever is greater.
●●
●●
●●
All time deposit accounts are subject to fees shown in the Other Fees
and Charges section of this notice.
Automatic Renewal Provision
●●
Time deposit accounts with an automatic renewal provision and with
a term of 32 days or more will be automatically renewed for the same
term, and at the interest rate in effect on the account’s maturity date,
unless the funds are withdrawn on that date or within 10 calendar
days after that date. Accounts with a term of 31 days or less will be
automatically renewed from the maturity date, and at the interest
rate in effect on the account’s maturity date, unless the funds are
withdrawn within 3 calendar days after that date. This policy will
also apply to any subsequent maturity date. If your time deposit has
a term of more than 31 days, we will notify you in writing before the
original and all subsequent maturity dates. We reserve the right to
close any time deposit account on the original or any subsequent
maturity date or change the terms or the method of interest
calculation on any of these maturity dates after giving you written
notice of our intention to do so.
Compensating Fee. The Compensating Fee is designed to protect the
Bank during periods of increasing interest rates. The Compensating
Fee is calculated by first determining the rate differential. The rate
differential is determined by subtracting the interest rate being paid
on your time deposit from the rate we would pay on a new time
deposit, for an amount equal to your original principal and for a term
equal to the number of days remaining in your current term. Then
the Compensating Fee is determined by calculating the amount of
simple interest that could have been earned for the number of days
remaining in your current term at the interest rate equal to the rate
differential determined above on the amount withdrawn. Please see
the example below.
Early Withdrawal Fee and Compensating Fee
When you renew a time deposit or Retirement Time Deposit
account, you agree to keep the principal in the account on deposit
with us for the new term. If you withdraw all or a portion of the
principal prior to the new maturity date of the account, the Bank may
assess an Early Withdrawal Fee or a Compensating Fee, whichever is
greater. It may be necessary to deduct all or a portion of the fee from
the principal amount of the account.
Example: If a $2,000 time deposit established for 3 years (36
months) at 4% is withdrawn after 1 year (12 months), we would
first determine the rate for a new $2,000 24-month time deposit
(the remaining term of the time deposit). If this rate were 7%, we
would calculate a fee equal to 24 months’ simple interest on $2,000
at 3% (the rate differential is 7% minus 4%). The Compensating
Fee is $120.00. We would also calculate 181 days’ simple interest on
$2,000 at 4%. The Early Withdrawal Fee is $39.67. For this example,
the $120.00 Compensating Fee would be the greater of the two and
would be assessed.
4
5
The fee for withdrawing funds before the account’s maturity date is
the greater of the Early Withdrawal Fee or the Compensating Fee.
Other Wire Fees
Other Fees and Charges
Legal Process Fees
Banking Centralized
Office & Customer
Direct Service Unit
Access*
(CCSU)
Levy from All Agencies...........................................................................................................$ 75.00
California Agency..................................................................... $
State Civil Case......................................................................... $
Federal Agency......................................................................... $
Federal Civil Case..................................................................... $
Internal Revenue Service....................................................... $
Research
24.00/hour
24.00/hour
11.00/hour
11.00/hour
8.50/hour
Copying
.10/sheet
.10/sheet
.25/sheet
.25/sheet
.20/sheet
Returned Deposited/Cashed Items..................................................................................$ 6.00
Automatic Re-Clear of Returned Items........................................................per item $ 1.50
Signature Guarantee...............................................................................................per visit $ 5.00
Research Fee . ...........................................................................................................per hour $ 30.00
($30 minimum, copy fees will apply.)
Wire Transfer Fees
Foreign or Domestic correspondent bank charges may apply. We
may deduct our fees from your account or the amount of the transfer.
Banking
Office
& Direct
Access*
Centralized
Customer
Service Unit
(CCSU)
Incoming Wire Transfer
Domestic...................................................................................each $
13.00
N/A
International (USD)...............................................................each $
13.00
N/A
International (Foreign Currency).......................................each $
13.00
N/A
Outgoing Wire Transfer
Domestic
Repetitive..............................................................................each $
20.00
33.00
Non-Repetitive....................................................................each $
28.00
33.00
International (USD)
Repetitive..............................................................................each $
35.00
35.00
Non-Repetitive....................................................................each $
40.00
40.00
International (Foreign Currency)
Repetitive..............................................................................each $
30.00
50.00
Non-Repetitive....................................................................each $
35.00
50.00
Standing Order
Domestic...............................................................................each $
10.00
10.00
International (USD)............................................................each $
15.00
15.00
International (Foreign Currency)...................................each $
15.00
15.00
Drawdown
Reverse Wire (outgoing 1031 only)..................................each $
20.00
50.00
Drawdown Request from Federal Reserve
(with Outgoing Wire)........................................................each $
25.00
25.00
International (USD)............................................................each $
15.00
15.00
International (Foreign Currency)...................................each $
15.00
15.00
Internal Transfer.......................................................................each $
6.00
30.00
Investigations (plus cable if needed)................................each $
20.00
20.00
Phone.........................................................................................each $
15.00
15.00
Payments by Cash or Check...............................................each $
10.00
N/A
*Wires initiated directly through Direct Access in the Wire Services department.
6
Wire Notification (in addition to periodic statement)
Mail Notification (incoming or outgoing)...............per notice $
2.00
2.00
Facsimile Notification....................................................per notice $
6.00
6.00
Fast Fax..............................................................................per notice $
45.00
45.00
Telephone Notification..................................................per notice $
20.00
20.00
Charges to Sender.................................................................... each $
15.00
15.00
Exception/Repair...................................................................... each $
10.00
10.00
SecurID Token
Token (1–2).............................................................................................$ No charge No charge
Token (3+)................................................................................... each $ 100.00
100.00
Replacement/Expired Token.................................................. each $ 100.00
100.00
Other Intermediary Bank fees may apply.
*Wires initiated directly through Direct Access in the Wire Services department.
Domestic Collection Items
Incoming and Outgoing
Clean..........................................................................................................................................$ 30.00
Documentary..........................................................................................................................$ 30.00
International Collection Fee (varies) (minimum $100.00)........................................$ 100.00
Trustee to Trustee (Transfer Out) Fee for Retirement Time Deposit
Accounts. Each time we receive instructions from you to transfer
all or a portion of your IRA or Retirement Plan to another trustee or
custodian, a transfer fee will be assessed. We will assess the fee from
your IRA, SEP, SIMPLE, Small Business Retirement Plan, or Coverdell
ESA for each transfer letter.
Deposit Transfer Fee (transfers out only) .......................................................................$ 25.00
Brokerage Transfer Fee (transfers out only)...................................................................$ 75.00
Annual Custodial/Trustee Fee for Retirement Time Deposit Accounts.
You will be charged an annual custodial/trustee fee for each IRA plan
that you have open any time during the calendar year.
Individual Retirement Account Annual Custodial Fee.......................... per plan $ 15.00
SEP and SIMPLE Plan Annual Custodial Fee............................................... per plan $ 25.00
Small Business Retirement Plan Annual Trustee Fee............................ per plan $ 25.00
Fee waiver policies apply to Individual Retirement Accounts only. For
more information, ask your banking office for a copy of the Individual
Retirement Accounts and Small Business Retirement Plans Services and Fee
Schedule includes Coverdell Education Savings Accounts.
Except as outlined above, or as required by law, Union Bank, N.A.,
reserves the right to change any of the information contained in fee
schedules and disclosure booklets and the rules of the Bank at any time.
7
Other Agreements
Your renewed time deposit or Retirement Time Deposit Account is
also subject to certain other terms in our All About Personal Accounts
& Services Disclosure and Agreement; All About Business Accounts &
Services Disclosure and Agreement; Business Fee Schedules; All About
Traditional, Rollover, and Roth IRAs Disclosure and Agreement; All About
Coverdell Education Savings Accounts Disclosure and Agreement; and/
or All About Small Business Retirement Plan Disclosure and Agreement.
Copies are available through your banking office.
8
©2009 Union Bank, N.A.
unionbank.com
89362 (11/09)