casemark/depository-account-agreement

Depository Account Agreement

Drafts a regulation-compliant depository account agreement governing deposit accounts at U.S. financial institutions.

Prerequisites

1. Account type — checking, savings, money market, CD, or specialized deposit product
2. Institution details — name, charter state, federal regulator (OCC / FDIC / Federal Reserve)
3. Account features — interest-bearing (yes/no), tiered rates, minimum balance thresholds, overdraft protection options
4. Fee schedule — maintenance, overdraft/NSF, ATM, wire, and all other applicable charges
5. EFT services — ATM, debit card, ACH, online/mobile banking, bill pay, remote deposit capture
6. Arbitration policy — binding arbitration or jury trial waiver (if any)
7. Governing state law — charter state or account maintenance state
8. Existing agreements (if any) — upload for extraction of institution-specific terms

Output Structure

1. Account Type and Interest Terms

• Account classification and product description
• For interest-bearing accounts, disclose per Reg DD:

| Element | Disclosure | |---|---| | APY | Current rate as percentage | | Calculation method | Simple or compound | | Compounding frequency | Daily / monthly / quarterly / annually | | Balance method | Minimum daily / average daily / collected | | Rate adjustment | Index/benchmark, advance notice period |

• Minimum balance thresholds: measurement method, breach consequences (fee, rate reduction, reclassification)
• Tiered balance structures with rate or fee-waiver triggers

2. Funds Availability Policy (Reg CC)

Standard availability:

| Deposit Type | Availability | |---|---| | Direct deposits, wires | Next business day | | Cash in person, on-us checks | Next business day | | Treasury checks, USPS money orders | Next business day (first $225) | | Cashier's/certified/teller's checks | Next business day (first $225) | | Local checks | Second business day | | Non-local checks | Up to fifth business day |

Exception holds (§ 229.13):

| Exception | Max Hold | |---|---| | New accounts (first 30 days) | 9 business days | | Large deposits (>$5,525/day; excess only) | 7 business days | | Repeated overdrafts | 7 business days | | Redeposited returned checks | 5 business days | | Reasonable cause to doubt collectibility | 5 business days |

• Hold notice: timing (at deposit or next business day), content (amount, availability date, reason)
• Business day: excludes weekends/federal holidays; cut-off no earlier than 2:00 p.m. for branch deposits

3. Electronic Fund Transfer Disclosures (Reg E)

Covered services: ATM, POS debit (PIN/signature), ACH, online/mobile banking, preauthorized recurring transfers, remote deposit capture, telephone banking

Unauthorized transfer liability:

| Notification Timing | Liability Cap | |---|---| | Within 2 business days of learning of loss | Lesser of $50 or actual unauthorized transfers | | 3–60 days after statement transmission | Up to $500 | | After 60 days | Potentially unlimited |

Error resolution:

| Step | Requirement | |---|---| | Depositor notice | Oral or written; oral effective without written confirmation | | Investigation | 10 business days (20 for new accounts, POS, or foreign-initiated) | | Provisional credit | Within 10 business days if investigation ongoing | | Written explanation (no error) | Required; state right to request supporting documents |

• Disclose daily ATM withdrawal, POS, and online transfer limits
• Reg E opt-in: overdraft fees on ATM and one-time debit transactions require separate affirmative consent — do not bundle into general acceptance

4. Fee Structure

| Category | Required Detail | |---|---| | Monthly maintenance | Amount; waiver conditions | | Overdraft | Per-item; daily max; processing order | | NSF / returned item | Per-item; daily max | | Overdraft protection | Transfer fee; LOC rate; credit card advance fee | | ATM (in-network / out-of-network) | Institution fee; operator surcharge (separate) | | Foreign transactions | Percentage or flat fee | | Wire transfers | Incoming domestic; outgoing domestic; international | | Stop payment | Fee; 6-month duration; renewal | | Dormancy / inactivity | Fee; trigger period | | Early account closure | Fee; applicable window |

• Fee increases: 30 days' advance notice (verify state law for longer periods); continued use = acceptance

5. Account Ownership and General Terms

Ownership structures:

• JTWROS — surviving owner gets full ownership; each owner has full transactional authority
• Tenants in common — interest passes to estate; specify fractional ownership if applicable

Operational provisions:

| Provision | Content | |---|---| | Right of setoff | May apply funds to depositor debts without notice; subject to federal benefit prohibitions (31 CFR Part 212) [VERIFY] | | Statement review | Monthly (transaction) / quarterly (savings); 30-day unauthorized signature window; 60-day other errors; 1-year absolute bar | | Check processing order | Disclose chosen method; verify state law before using largest-to-smallest | | Stop payments | 6-month duration; must renew; institution liable if paid despite valid order | | Account amendment | 30 days' notice most changes; 21 days EFT changes; immediate for security | | Account closure | Depositor: any time (early fee if applicable); institution: 10–30 days' notice; immediate for fraud/illegal activity | | Escheatment | 3–5 years inactivity (state law controls); notice before escheating | | Death or incompetency | Freeze pending documentation; letters testamentary or probate order; honor POD/trust |

6. Regulatory Compliance

| Regulation | Required Provision | |---|---| | BSA / AML | May report transactions; may delay/refuse/reverse to comply | | USA PATRIOT Act (CIP) | Customer identification program; may request additional documentation | | OFAC | Prohibition on sanctioned transactions | | FATCA | Foreign account certification where foreign indicia present | | IRS Form W-9 | TIN certification; backup withholding | | FinCEN Beneficial Ownership | Required for legal entity customers [VERIFY current threshold] |

7. Execution and Acknowledgments

Signature block:

• Full legal name, signature, date
• Business accounts: signer title/capacity; corporate resolution or certificate of authority

Required acknowledgments:

• [ ] Funds availability disclosure (Reg CC)
• [ ] Electronic fund transfer disclosure (Reg E)
• [ ] Truth in Savings disclosure (Reg DD)
• [ ] Fee schedule
• [ ] Overdraft opt-in with Reg E consent (ATM/debit)
• [ ] Electronic banking security acknowledgment
• [ ] Debit card terms acceptance
• [ ] Online/mobile banking security procedure acceptance
• [ ] W-9 certification
• [ ] ESIGN Act / UETA compliance for electronic execution

Guidelines

• Reg DD APY: must appear in close proximity to interest rate; use exact regulatory terminology
• Reg E opt-in: ATM/debit overdraft requires separate written consent — never bundle into general acceptance
• Arbitration: CFPB rulemaking historically volatile; verify enforceability in governing jurisdiction [VERIFY]
• Processing order: some states restrict largest-to-smallest; verify governing state law [VERIFY]
• Federal benefit setoff: prohibited against Social Security, VA, and other federal benefits under 31 CFR Part 212 [VERIFY applicable types]
• Reg D savings limits: federal enforcement of 6-transfer limit suspended; confirm institution's contractual policy
• Escheatment: varies by state (3–5 years); verify governing state's unclaimed property statute
• Electronic disclosures: Reg CC/E/DD may only be delivered electronically after ESIGN Act § 101(c) consent
• Cite regulations in Bluebook format; verify effective dates via CFPB, OCC, FDIC, or Federal Reserve sources
• All outputs require attorney review in the account's jurisdiction