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Terms and Conditions of Your Deposit Account

Terms and Conditions of Your Deposit Account


This Agreement is the contract that establishes the rules that control your account with us. Please read this Agreement carefully and retain it for your records. As used in this document, the words “we”, “our”, and “us” mean American Bank and the words “you” and “your” mean, for individuals, including sole proprietorships and fiduciaries, the person or persons authorized to sign on the account, and for partnerships, corporations, limited liability companies, limited liability partnerships, fiduciary accounts, and unincorporated associations, the entity in whose name the account is carried, as well as anyone else with the authority to deposit, withdraw or exercise control over the funds in the account. The headings in this document are for convenience or reference only and will not govern the interpretation of the provisions. Unless it would be inconsistent to do so, words and phrases used in this document should be construed so the singular includes the plural and the plural includes the singular.

By signing (manually, or if approved by us electronically) an account application, signature card or other American Bank form to open or request an account, or by otherwise opening or using an account with us or a product or service from us, you agree that you (and your heirs, successors, representatives and beneficiaries, if any) will be bound by this Agreement and all amendments that are in effect. The terms of your agreement include the terms contained in this Agreement and the terms of any additional agreements applicable to certain bank services and/or certain types of accounts that you may establish with us. An Electronic Fund Transfers, Funds Availability, Overdraft Protection, Privacy, and Truth-in-Savings disclosures (as they may be revised from time to time) are incorporated into this Agreement. You will receive a separate schedule of interest rates, qualifying balances, and fees for your account if they are not included in this document. If you have any questions, please call our Customer Service Department at 610.366.1800 or 888.366.6622.    

This Agreement is subject to applicable federal laws and, to the extent not preempted by federal law, the laws of the Commonwealth of Pennsylvania (except to the extent that this Agreement can and does vary such rules or laws).

If any provision of this Agreement is found to be unenforceable according to its terms, all remaining provisions will continue in full force and effect. We may change this Agreement or any other agreements, or change the terms of our deposit accounts at any time without notice. We will notify you of changes if and when required by law. Changes in the interest rate or method of computation may be made at any time without delayed effect or notice to you, to the extent permitted by law. Your continued use of your account constitutes your agreement to any such changes. No waiver of this Agreement or any part of this Agreement is valid unless it is in writing and signed by one of our authorized officers. Delayed enforcement of any part of this Agreement does not constitute a waiver. Waiver of any of the terms of this Agreement at any one time will not prevent us from exercising its terms at any other time.   

UNLAWFUL INTERNET GAMBLING TRANSACTIONS PROHIBITED - If you are a commercial customer, this notice is to inform you that you are not permitted to engage in any activity or business that is unlawful under the Unlawful Internet Gambling Enforcement Act of 2006 (the “UIGEA”).  You may not use your Account or any other service we offer to receive any funds, transfer, credit, instrument or proceeds that arise out of a business that is unlawful under the UIGEA.  If anyone asks us to process a transaction that we believe is restricted under UIGEA, we may block the transaction and take any other action we deem to be reasonable under the UIGEA and your Agreement.

BANK SECRECY ACT - The Bank Secrecy Act (BSA) and its implementing regulation require a financial institution to maintain records and/or report certain transactions to federal government agencies.  The act and regulation focus on issues such as anti-money laundering and anti-terrorist financing.

  1. USA PATRIOT ACT DISCLOSURE - To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.  What this means for you: when you open an account, we will ask for your name, physical address, date of birth, and other information that will allow us to identify you.  We may also ask to see your driver's license or other identifying documents.  You agree to provide us with, and consent to us obtaining from third parties, such requested information as a condition of opening any account.  To the extent you fail to provide or to consent to providing any such information, that failure shall be grounds for us to not open your account and/or to close your account.  

    Existing customers: Even if you have been a customer of ours for many years, we may ask you to provide this kind of information and documentation because we may not have collected it from you in the past.

  2. REPORTING CERTAIN ACTIVITIES - Banks are required to file a report called a Currency Transaction Report (CTR) with the Internal Revenue Service whenever it has currency transactions that exceed $10,000 in one business day.  This includes both single and multiple transactions, transactions to and from or on behalf of any one individual or other entity, or in or out of any one account, and exchanges of currency.  Banks are also required to file other reports with the U.S. Treasury Department when a transaction is conducted or attempted by, at, or through a bank, involves or aggregates at least $5,000 in funds or other assets, and the bank knows, suspects or has reason to suspect that: (a) the transaction involves funds derived from illegal activities or intended or conducted in order to hide or disguise funds or assets derived from illegal activities (including, without limitation, the ownership, nature, source, location, or control of such funds or assets) as part of a plan to violate or evade any federal law or regulation or to avoid any transaction reporting requirement under federal law or regulation; (b) the transaction is designed to evade any requirements of this part or of any other regulations promulgated under the Bank Secrecy Act, or (c) the transaction has no business or apparent lawful purpose or is not the sort in which the particular customer would normally be expected to engage, and the Bank knows of no reasonable explanation for the transaction after examining the available facts, including the background and possible purpose of the transaction.


The rules that apply to your account depend on the form of ownership and beneficiary designation, if any, specified on the account records. We make no representations as to the appropriateness or effect of the ownership and beneficiary designations, except as they determine to whom we pay the account funds. Some forms of ownership may not be available to all accounts.

Temporary Account Agreement – If you instruct us to open a joint account in the names of two or more people, or a non-consumer account, and we do so, but later determine that one or more of such people, in the case of a joint account, or one or more authorized signers, in the case of a non-consumer account, have not completed our account opening documents, signed signature cards, or failed to comply with other of our requirements for establishing and maintaining such accounts, you agree to indemnify and hold us harmless for reliance on your instruction, and we will consider this to be a temporary account agreement.  While the temporary account status exists, we may in our discretion for all purposes and circumstances (including determining ownership of the account following the death of any person in whose name the account was opened) either treat the account as being owned by all persons in whose names the account was opened or treat the account as being owned solely by the person(s) who have signed or completed our account opening documents or other requirements.  If we treat the account as owned by all persons in whose names the account was opened,  or as a valid non-consumer account, we may permit the non-signing person(s), in the case of joint accounts, or the authorized non-signing signers, in the case of a non-consumer account, to withdraw funds or take other action on the account without any liability to you. However, we may at some time in the future restrict or prohibit further use of the account, or close the account, if you fail to comply with the requirements we have imposed within a reasonable time after notice to you to comply with the requirements in our notice.  

Individual Account –An account in the name of one person only. Funds may be paid only to that individual or someone to whom that individual has given a power of attorney, or as the individual or power of attorney directs, or as otherwise may be required or permitted by law.

Joint Account –with Right of Survivorship (And Not As Tenants in Common)– An account in the names of two or more persons. Each of you intends that when you die, the balance in the account (subject to any previous pledge to which we have agreed) will belong to the survivor(s). If two or more of you survive, the survivors will own the balance in the account as joint tenants with right of survivorship and not as tenants in common. By opening a Joint Account, each of you agrees that any one of you may make withdrawals without the signature of the others. Each of you appoints each other account owner with power of attorney to endorse any check or draft payable to any one or more of you and to cash or deposit the same. Each of you authorizes each other person signing the signature card to endorse any item payable to you or your order for deposit to your joint account.   

When, the account owners are husband and wife, then the account ownership shall be deemed intended as Tenancy by the Entireties unless specifically indicated otherwise by the account owners. 

Revocable Trust Account or Totten Trust Account (In Trust For) –This account may be opened by one or more persons who name another as a beneficiary. If two or more of you create this type of account, you own the account jointly with right of survivorship. The person(s) creating this account may: (1) change or delete beneficiaries, (2) change account types, or (3) withdraw all or part of the account funds at any time. Beneficiaries cannot withdraw unless: (1) all persons creating the account die, and (2) the beneficiary is then living, and (3) any required release-of-funds procedures have been completed. No more than   two beneficiaries can be named on an account. When two beneficiaries are named and survive the death of all persons creating the account, the beneficiaries will own this account in equal shares, without right of survivorship.  

Fiduciary Account – Fiduciary accounts involve a legal arrangement or capacity in which one person or entity (the fiduciary) acts on behalf of another. Examples include, but are not limited to, personal representative, guardian, or conservator for a minor or other legally incompetent person and a trustee under a trust agreement or will. This account may be opened and maintained by a person(s) named as a trustee under a written trust agreement or as executor(s), administrator(s) or conservator(s) under court orders. You understand that by opening such an account, you certify that the funds offered for placement in the account, together with any additional funds for future deposit, are properly within your custody and may be lawfully invested in accordance with your authority as fiduciary. We may require that you provide a certified copy of any trust instrument, court order, or decree appointing you as fiduciary. We may rely upon the validity of your appointment until we receive actual notice of its revocation. You agree to immediately notify us of any changes in your authority as fiduciary.  You also understand and agree that we are not acting in the capacity of a trustee or fiduciary in connection with the account, and we shall not have any obligation to monitor or enforce the terms of the trust or other fiduciary arrangement.  Additionally, if you open a fiduciary account in connection with your service as a trustee under a written trust agreement, you represent that you are authorized under applicable law and the documents governing the trust arrangement to open the account in the name and manner requested. Further, we will have no duty to monitor the fiduciary account of the trustee and assume no liability for the administration of the trust.

PA Uniform Transfer to Minors Act (PUTMA) Account – A transferor, intending to make a gift to a minor under the Pennsylvania Uniform Transfers to Minors Act (20 Pa. C.S.A. Sections 5301 – 5320), may open a PUTMA account (“Custodial Account”)  naming the transferor or another person as “custodian” and the minor as “beneficiary”. Upon opening a Custodial Account, the transferor makes a complete and irrevocable transfer of all funds in the Custodial Account to the minor. Under the PUTMA, the funds in the Custodial Account  are owned irrevocably by the minor, but are controlled by the custodian. A custodian must be a U.S. resident, at least 18 years of age and have a valid U.S. social security number, or a resident alien with a U.S. mailing address and residential address (if different than mailing address), or a military address if in the armed forces.  At all times, the Custodial Account may be accessed only by the custodian (or successor custodian).  Only one custodian and one minor are allowed per Custodial Account.  Although PUTMA permits funds in the Custodial Account to be used by the custodian for the benefit of the child only under certain circumstances, you (as the custodian) agree that we have no duty or agreement whatsoever to monitor or ensure that the use of any funds withdrawn by the custodian (or successor custodian) have been used in compliance with PUTMA. PUTMA imposes certain fiduciary and record keeping obligations on a custodian and requires that interest earnings are reported to the IRS under the minor's Social Security number. If you are not certain whether a Custodial Account is the right choice for you, we strongly urge that you first seek professional legal, tax, investment and/or estate planning advice. The offering of a Custodial Account should not be construed in any way as the providing of legal or tax advice by American Bank.

Power of Attorney – You may appoint an agent to conduct transactions on your account on your behalf. (We, however, have no duty or agreement whatsoever to monitor or ensure that the acts of the agent are for your benefit.) This may be accomplished by allowing your agent to sign in that capacity on a signature card or by separate form, such as a power of attorney or by providing a properly executed original power of attorney. We may refuse to accept the power of attorney (1) that requires multiple agents to act together; (2) if your signature has not been notarized; or (3) that is not in a form acceptable to us. We may require your agent to execute an affidavit attesting to certain facts, such as the fact that you are still alive and that the power of attorney has not been revoked, even if the power of attorney was recently executed.  We may continue to honor the transactions of your agent until: (1) we have received written notice or have actual knowledge of the termination of the authority of your agent or the death of an account owner, and (2) we have had a reasonable opportunity to act on this notice or knowledge. You agree not to hold us responsible for any loss or damage you or your heirs may incur as a result of our following instructions given to an agent acting under a valid power of attorney.

Change of Ownership – The ownership of your account stays in effect until you request a change and we honor your request. For certificate of deposit (CD) accounts, also called “time deposits”, you may change the ownership within 10 days after maturity without incurring any penalties. If you choose to change the ownership during the term of your CD, your existing CD may be closed and a new CD may be opened and all applicable early withdrawal penalties may apply. For checking, savings and money market accounts, you may change the ownership at any time without penalty. To comply with certain changes, it may be necessary to close your existing account and open a new account. For any change of account ownership, all owners will be required to complete new signature documents.

Corporate, Partnership, and Other Organizational Accounts –We will usually require a separate authorization form designating the person permitted and conditions required for withdrawal from any account in the name of a legal entity such as a partnership, corporation, or other organization. We will honor such authorization according to its terms until it is amended or terminated in writing by the governing body of such organization. 


Deposit Items – In receiving checks or other items for deposit or collection, we act only as your collecting agent and assume no responsibility beyond the exercise of ordinary care. Applicable law will govern the handling, collecting and holding of the items you deposit into your account. We may refuse to accept or pay any item, which has been altered or amended in any manner. Any items, other than cash, accepted for deposit (including items drawn "on us") will be given provisional credit only until collection is final (and actual credit for deposits of, or payable in, foreign currency will be at the exchange rate in effect on final collection in U.S. dollars). We are not responsible for transactions initiated by mail or outside depository until we actually receive them. All transactions received after our "daily cut-off time", on a business day (Monday through Friday, excluding federal holidays) we are open, or received on a day in which we are not open for business, will be treated and recorded as if initiated on the next following business day that we are open. At our discretion, we may refuse to accept a deposit or may return a deposit for any reason, including but not limited to: (1) checks with multiple payees or double endorsements, if the Bank is unable to verify both signatures, (2) checks payable to a business account rather than your personal account, (3) counter or “starter” checks, (4) credit card checks, and (5) checks which we have reason to doubt are collectible.  

Incomplete Account Applications –If you submit an incomplete account application, we cannot process the application until we have received all necessary information from you. Any deposits received before your application is approved will be held (without processing) until the application is approved. If the application is not approved, the deposit will be returned to you without interest.

Deposit Verification – We rely upon the information you provide on your deposit slip when initially processing your deposit. Therefore, you have a duty to accurately record cash, each item being deposited, and the total amount of your deposit on your deposit slip or at an ATM.  When we accept your deposit, we provisionally credit your account for the amount declared on your deposit slip.  Nevertheless, all deposits we receive are subject to subsequent verification and correction, if necessary. Final credit to your account is based on the total sum of the cash and items actually received by us. If we determine that a deposit does not contain all items claimed to be deposited, we will correct the error and adjust the account balance, even if you have already withdrawn all or part of the deposit. You will have the burden of proving our records are erroneous with respect to any disputed items. 

Deposit Reconciliation – Under our Deposit Reconciliation Policy, we identify and process any credit or debit adjustment for the exact dollar amount of the discrepancy. Generally, we do this on the same business day of the involved transaction, prior to any debit or end-of-day processing. We will ensure the adjustment made during the reconciliation process complies with our Expedited Funds Availability Policy (Regulation CC). 

There may be circumstances when the error may not be corrected the same business day. Those errors may result from a poor image, power or system outage, etc. In those circumstances, the transaction will be dated as of the original transaction date rather than the date of correction.  If the error involved an interest-bearing account, interest will be adjusted. We will refund fees when the error caused an overdraft and will honor any item(s) associated with the error when available funds are in the account.

Account Adjustments – We may make adjustments to your account from time to time to reflect corrections or changes to your balance, including deposit reconciliation adjustments. In the event of an error that has caused an overstated balance, you agree to reimburse us immediately for the overstated amount. You will be sent a notice of any adjustment we make to your account that is more than $10. Any correction made to your deposit of $10 or less will be reflected on your bank statement. You may confirm the final credit amount of your deposit and your account balance at any time. Under this Agreement, you are required to review your bank statement and report any errors within fifteen (15) calendar days after the statement has been made available to you. If you fail to notify us of any errors on your statement, it will be deemed final and correct.

Return Deposit/Cashed Items – If a deposited or cashed item is returned to us by the bank on which it is drawn, we may accept that return and charge the item back against your account without regard to whether the other bank returned the item before its midnight deadline. At our option and without notice to you that the item has been returned, we may resubmit any returned item for payment. You waive notice of dishonor and protest, and agree that we will have no obligation to notify you of any deposited or cashed item that is returned to us. Unless prohibited by applicable law or regulation, we also reserve the right to charge back to your account, or to any other account(s) you have established with us if there are insufficient collected funds in your account with which to effect a charge back, the amount of any item deposited to your account or cashed, in whole or in part for you, which either was originally paid by the payor bank and which is later returned to us, or which was returned to us by the payor bank without settlement for the item, due to an allegedly forged, unauthorized or missing endorsement or drawer’s signature, claim of alteration, encoding error or other problem which in our judgment justifies reversal of the credit. If this occurs, we may charge you a fee as stated in our “Other Fees & Charges Disclosure”. We may process a copy or other evidence of a returned item in lieu of the original.

Night Depository – This service is available for business customers who arrange with us for night depository services. If you are a consumer and make a deposit at one of our night depository containers, we will attempt to process your deposit; however, you agree that we have no liability for processing such deposit in the event of a dispute between us. Business customers must follow two important rules. In addition, you must also comply with the rules in any separate night depository agreement with us.

(1) Use of Containers. You must use the night depository bags or envelopes we provide you, and use them only for deposits you make with us.

(2) Care. You must take care when you put the container in our night depository or other facility. Our responsibility for the security of the container and the drawer or facility is to use reasonable care. This means we are not automatically liable for just any loss, only for losses that result from our own negligence, only to the extent we caused a loss, and reduced by your contribution to any loss. In legal terms, we are a "bailee" until the point:

            (a) when we open the container and inventory its contents (if that is what we are asked to do); or

            (b) until you sign the receipt for and take custody of the container (if we do not open the container).

ATM and Mobile Deposits –Please refer to the “Funds Availability Disclosure” for information regarding availability of ATM and mobile deposits.

Direct Deposits – The Federal Government or other persons may from time to time send a direct deposit to your account. If we receive notice to our satisfaction that such a deposit was made to a wrong account or that the deposit otherwise, for any reason, should be returned to the sender, you authorize us to deduct the amount of the deposit from the account or any other account you have with us, without prior notice and at any time, except as prohibited by law. We may also use any legal remedy to recover the amount of our liability.

Foreign Currency – Items payable in a foreign currency are accepted only for collection, and you will bear all exchange rate risk and collection costs. We have no control over the time required for the collection process to be completed. We will not credit your account until we receive the proceeds in U.S. dollars. Please refer to “Other Fees & Charges Disclosure”.

Endorsements – We may accept for deposit any item payable to you or your order, even if the item is not endorsed by you. We may endorse and/or collect items deposited to your account without your endorsement, or we may supply the endorsement, but we may, at our option, require you to personally endorse the item prior to accepting it for deposit. You warrant that all endorsements on items deposited by you are genuine and authorized. 


Funds in your account(s) with us are insured by the Federal Deposit Insurance Corporation (FDIC) and backed by the full faith and credit of the United States. The amount of insurance coverage you have depends on the number of accounts and ownership of those accounts. For additional information, you may ask us or contact the FDIC on the Internet at www.fdic.gov/deposit/index.html.


General Information –Unless otherwise clearly indicated to the contrary, anyone who signs in the space designated for signatures on the signature card, including authorized signers, may withdraw or transfer all or any part of the account balance at any time on forms approved by us. Withdrawals will first be made from collected funds, and we may, unless prohibited by law or our written policy, refuse any withdrawal request against uncollected funds, even if our general practice is to the contrary.

Transaction Limitations – All withdrawals and transfers are subject to availability of funds in your account and to any special limitations which may apply to a particular type of account described elsewhere in this Agreement or in other disclosures you receive. 

We may refuse any withdrawal or transfer request which is attempted by any method not specifically permitted, which is for an amount less than any minimum withdrawal requirement. If we honor a nonconforming request, we are not required to do so later. We may treat continued abuse of the stated limitations (if any) as your act of closing the account. 

Refer to the “Funds Availability Disclosure” for information about when you may withdraw funds from your deposit.

Savings/Checking/Money Market Account Withdrawals – Withdrawals may be made in the following manner, although some means may not apply to all accounts: (1) Writing a check or signing a withdrawal ticket; (2) Debit Card purchase at a merchant location; (3) Automated Teller Machine (ATM); (4) Point-of-Sale (POS) terminal; (5) Online Banking; (6) By telephone; (7) Automated Clearing House (ACH); (8) Wire Transfer; and (9) Other pre-authorized withdrawal methods accepted by the Bank.  We may debit your account for a check or other item drawn on your account on the earlier of either the day it is presented for payment or as early as the day we receive notice that the check or item has been deposited for collection at another financial institution or has been converted to an electronic debit and is being presented to us electronically. We will exercise ordinary care in processing and paying your checks. 

You may not make withdrawals in excess of the available funds in your account. Available funds include the account balance less holds.  Availability of funds will be verified once between presentment of a check and our midnight deadline for paying items. We will not be liable for dishonoring any checks that would exceed the available funds in your account. Refer to "Funds Availability Disclosure" for further details.

Good Faith Disbursement – You agree that we may disburse funds from your account in good faith when we are reliant on documentation presented to us which purports to give any individual or entity the right to receive such disbursement, and we will not be liable to you for any such good faith disbursement.

Telephone/PC Transfers –A transfer of funds from this account to another account with us by PC, including other personal computing devices, or telephone may be made by the same persons and under the same conditions generally applicable to withdrawals made in writing. 

Deduction of Fees – Maintenance and activity fees and fees for returned deposited checks, returned items, overdrafts, stop payment orders, charges for check printing, and other service charges made in accordance with our rules (see “Other Fees & Charges Disclosure” section) shall be deducted from your account and may be posted prior to other debits. We shall not be liable for refusing to honor items presented for payment because of insufficient funds as a result of deducting such fees. Any fees (or portions thereof) that were not posted due to insufficient funds at the time of posting may be collected at a later date without prior notice when sufficient funds are available in the account.

Account Management – To keep the most accurate record of your account balance, it is important to keep track of all the individual transactions (each referred to as an “item”) involving your account. Items are such things as checks, drafts, electronic transfers, ACH debit card purchases, ATM withdrawals, and preauthorized withdrawals, including preauthorized or automatic transfers initiated by telephone, online banking, or similar order made by you and payable to third parties. It is also important that you know how different types of items are credited or charged (referred to as “post” or “posted”) to your account, and in what order. This is different from temporary holds that may be placed on your account for certain pending transactions that have not yet been submitted for actual payment. For example, as soon as we become aware that a transaction may be made to your account, we may place a hold on your account or place a temporary credit on your account in the case of a deposit. As a result, you may see a temporary hold or credit on your account that has not yet been posted. These pending debits and credits may be posted to your account on that business day or on a future date depending on the nature of the transaction.

The following describes how items post to your account and gives you details on the order in which items will be posted. Although generally we will follow the described posting order of items, we may not post items in the order in which they occurred.  Also, we expressly reserve the right to post certain items to your account in order of lowest to highest dollar amount, and/or pursuant to any real time or chronological posting order. You agree that we may determine in our discretion the orders in which we post transactions to your account. You agree that we may determine in our discretion the categories, the transactions within a category, the order among categories, and the posting orders within a category. We sometimes add or delete categories, change posting orders within categories and move transaction types among categories. You agree that we may in our discretion make these changes at any time without notice to you.

You can avoid fees for overdrafts and returned items simply by making sure that your account always contains enough available funds to cover all of your transactions. Please remember, however, that when your account balance includes some funds that are subject to a hold, temporary credit, dispute, or legal process, those funds are not available to cover your transactions.  

Posting Order of Items – The order in which transactions are posted to and paid from your account is important if there is not enough available funds in your account to pay all of the items that we receive for payment.  The order can affect the number of items that overdraw your account or that are returned unpaid and the amount of fees you may have to pay. Transactions can be posted to your account in two different ways - in "real time" as the transaction occurs on a given banking day or in a group or "batch" at the end of each of our banking days, which in most cases is 5:00 p.m., ET.

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