This section only applies to commercial non-interest bearing accounts.
Deposit Transfer Program Generally and Your Agreement to Participate
For any non-interest bearing commercial Deposit Account you have at the Bank (each such Deposit Account, a “NIB Deposit Account”), the Bank may elect from time to time to transfer available funds in your NIB Deposit Account, in whole or in part, to non-interest bearing demand deposit accounts (each a “Transfer Account”) at one or more FDIC-insured depository institutions (each, a “Program Bank” and collectively, “Program Banks”) that participate in our Deposit Transfer Program (“Program”). By participating in the Program, Deposits transferred to a Program Bank will be eligible for federal deposit insurance from the Federal Deposit Insurance Corporation (“FDIC”), subject to the limitations described below. Funds transferred from your NIB Deposit Account to a Transfer Account in a Program Bank are, during the time they are in such Transfer Account, solely the obligation of the Program Bank and will not be direct or indirect obligations of the Bank.
Your Agreement to Participate
For any NIB Deposit Account you have at the Bank as of September 30, 2013, your continued maintenance of such NIB Deposit Account after October 21, 2013, shall constitute your agreement to participate in the Program and your appointment of the Bank to act as your agent under the Program in establishing the Transfer Accounts and depositing and withdrawing your available funds to or from a Transfer Account. You may opt-out of the Program and revoke your appointment of the Bank as your agent at any time by providing the Bank notice as described in the section below titled “Your Right to Opt-Out.”
For any NIB Deposit Account opened after September 30, 2013, your submission of a Bank-approved application for an NIB Deposit Account constitutes your agreement to the terms of this Agreement and your appointment of the Bank to act as your agent under the Program in establishing the Transfer Accounts and depositing and withdrawing your available funds to or from a Transfer Account. You may opt-out of the Program as and revoke your appointment of the Bank as your agent at any time by providing the Bank notice as described in the section below titled “Your Right to Opt-Out.”
Deposit Transfer Process and Accessing Your Funds
Participation in the program will not impair your ability to engage in day-to-day transactions through your NIB Deposit Account. The Program is designed to avoid any delay in your ability to access the funds in your NIB Deposit Account even if a portion of those funds have been transferred by the Bank to Program Banks on your behalf.
Under the Program, funds in your NIB Deposit Account on a given business day (not including days, such as certain federal holidays, on which the Bank is not open for business) may be automatically swept into one or more Transfer Accounts established by Bank at one or more Program Banks on behalf of you and other Bank customers participating in Program. The Bank may, from time to time, reallocate such funds in whole or in part among Program Banks. Any funds previously transferred by the Bank to one or more Program Banks may also from time to time be transferred by the Bank from a Transfer Account at one or more Program Banks back to your NIB Deposit Account.
In the event you make a withdrawal or initiate any transactions which debit your account, a debit will be created in your NIB Deposit Account to fund your requested transaction (and any related fees) from your NIB Deposit Account. If the Bank has transferred funds from your NIB Deposit Account to one or more Transfer Accounts at Program Banks and, as a result, there are not enough funds in your NIB Deposit Account to cover such debit, the Bank will advance the amount needed (taking into account any available free credit balances in your NIB Deposit Account) to cover such debit and fund any withdrawal or other transaction and related fee that is authorized under the terms of your NIB Deposit Account. Following any advance, the Bank, as your agent, will make a corresponding withdrawal of the funds held by the Bank on your behalf in Transfer Accounts to reimburse the amount the Bank has advanced. If the sum of funds in your NIB Deposit Account and held on your behalf in one or more Transfer Accounts is sufficient to cover the debit and any related fees, you will not incur any overdraft fee or other charge for insufficient funds. However, if the sum of funds in your NIB Deposit Account and held on your behalf in one or more Transfer Accounts is not sufficient to cover the debit, then overdraft fees or other charges for insufficient funds will apply as set forth in our Schedule of Fees.
When the Bank makes any such advance to cover a debit from your NIB Deposit Account, the Bank shall have, as your agent, the right to pursue on your behalf any claim against any Program Bank or applicable FDIC deposit insurance for payment of the deposits held by the Bank as your agent at the applicable Program Bank, and you hereby grant the Bank a lien and security interest on, and right of offset against, the deposits held by the Bank as your agent at any Program Bank to secure the repayment to the Bank of any such advance made on your behalf. You are not responsible for, nor will you be charged any interest or fee in connection with, any delay in the Bank’s receipt of reimbursement, or deficiency in the amount of our reimbursement, from Program Banks of such advances made by the Bank. The Bank’s recourse for such reimbursement is limited to withdrawal or recovery on claims related to deposits held by the Bank as your agent at any Program Bank.
Program Banks
A current list of the Program Banks is available by calling us at 1-855-812-5371 or visiting the following website: https://thebancorp.mybankingservices.com/privacydisclosures/disclosures/list-of-program-banks/. Each Program Bank is a separate FDIC-insured depository institution duly chartered under the laws of the United States or a State thereof. You may choose to exclude transfers from your NIB Deposit Account to any particular Program Bank by calling 1-855-812-5371. Additional information regarding exclusion of Program Banks and opting out of the Program is set forth below, in the section titled, “Your Right to Opt Out.”
Each Program Bank will earn net income from the difference between the zero interest paid on deposits the Bank transfers to such Program Bank and the allocable interest it earns on loans, investments and other assets. The Bank will earn a fee, which may vary from each Program Bank, equal to a percentage of the average daily deposit balance of deposits transferred by the Bank from NIB Deposit Accounts at the Bank to Transfer Accounts at such Program Bank.
Consistent with our Privacy Policy, the Bank may, under certain circumstances, provide one or more Program Banks with information related to you. If provided, the information could consist of your name, address (including city, state, postal code, and, if applicable, foreign country), date of birth, either social security number or taxpayer identification number, any other information requested by the Program Bank, and any other information as required by applicable laws or regulations.
Information Regarding Amounts at Program Banks
You may only access funds you have deposited in an NIB Deposit Account through the Bank, regardless of whether funds have been transferred by the Bank from your NIB Deposit Account to one or more Transfer Accounts. No passbook or certificate representing the amount of your funds in a Transfer Account will be issued to you. Transfer Account ownership will be evidenced by book entry on the account records of the Bank and, accordingly, Program Banks will not maintain data as to your particular interests in the Transfer Account. This means that even if you are otherwise a customer of a Program Bank, the Program Bank customer service personnel will not have information regarding your interest in any Transfer Account. Please call us at 1-855-812-5371 to determine the amount of your deposits, if any, that have been transferred to one or more Transfer Accounts.
FDIC Insurance Information
Your funds in Transfer Accounts at Program Banks are insured by the FDIC, an independent agency of the U.S. Government, up to a standard maximum amount in accordance with the FDIC regulations. If a Program Bank should fail while you have funds in one or more Transfer Accounts at that same Program Bank, those funds, and all other funds you may have in non-Program accounts at that Program Bank, will be insured by the FDIC subject to the limitations described below.
The applicable FDIC insurance limit depends on the ownership capacity in which you hold the funds in the NIB Deposit Account at the Bank from which the funds in the Transfer Account were swept. That limit will be applied to all deposits (including Program deposits and non-Program deposits) held in the same ownership capacity by you at the same Program Bank. If you have both Program deposits and non-Program deposits held in the same right and capacity in the same Program Bank, you must aggregate all such deposits for purposes of determining FDIC insurance coverage. If your total funds on deposit at a Program Bank exceed the applicable FDIC deposit insurance limit, the FDIC will not insure your funds in excess of that limit. Under those circumstances, if the Program Bank were to fail and the FDIC were to enter into a purchase and assumption agreement with another depository institution, then the Transfer Accounts at the Program Bank would become deposit accounts at that depository institution and would remain FDIC-insured deposits. In that situation, the Bank would sweep your funds in any such Transfer Account back to your NIB Deposit Account at the Bank. If, however, the Program Bank were to fail and, instead of being sold to another depository institution, were to be liquidated by the FDIC, you would be treated by the FDIC as a secured creditor with respect to any funds in excess of the deposit insurance limit. If you are independently a customer of one or more Program Banks outside of the Program, we suggest that you exclude any such Program Bank(s) from the list of Program Banks to which we will transfer your funds.
The Bank does not have the ability to view any non-Program deposits held by you in any capacity at any of the Program Banks. Therefore, we are unable to monitor the aggregate amount of your Program and non-Program deposits in one or more of the same ownership capacities at any Program Bank to determine whether such amount exceeds the limit of available FDIC insurance. This means that you are solely responsible for monitoring the total amount of your funds on deposit with each Program Bank (including amounts in other accounts opened by you at the Program Bank held in the same right and capacity) in order to determine the extent of deposit insurance coverage available to you on those deposits, including the funds in the Transfer Account. The Bank will, however, monitor the amount of Program deposits held in each right and capacity on your behalf in one or more Transfer Accounts to ensure that we do not transfer more than the amount that would be available for FDIC insurance at each Program Bank if the only deposits held at Program Banks on your behalf are the Program deposits in one or more Transfer Accounts.
In the unlikely event that the Bank should fail, we anticipate that funds in your NIB Deposit Account that have been swept into a Transfer Account at a Program Bank will be swept by the FDIC (or, if the FDIC should sell the Bank to another financial institution, by that financial institution) back into your NIB Deposit Account and treated, like any unswept funds remaining in your NIB Deposit Account, as insured deposits.
For more information on FDIC deposit insurance coverage, visit www.fdic.gov.
Your Right to Opt Out
You have the right to opt out of one or more Program Banks or out of the Program entirely. You may exercise these rights by calling us at 1-855-812-5371. If you have amounts in other accounts opened by you at any of the Program Banks we currently use, we suggest that you instruct us not to sweep funds in your NIB Deposit Account to any Transfer Account at such Program Bank(s). A current list of the Program Banks is available by calling us at 1-855-812-5371 or by visiting the following website: https://thebancorp.mybankingservices.com/privacydisclosures/disclosures/list-of-program-banks/.