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name: depository-account-agreement language: en description: >- Drafts a U.S. Depository Account Agreement governing the institution–depositor relationship for checking, savings, money market, and CD accounts. Enforces Regulation CC (funds availability), Regulation E (electronic fund transfers), Regulation DD (truth in savings), BSA/AML, PATRIOT Act, and OFAC. Embeds required disclosures, liability limits, error resolution, fee structures, and ownership provisions. Trigger keywords: "depository account agreement", "deposit account terms", "checking account agreement", "savings account agreement", "funds availability", "Reg CC", "Reg E", "Reg DD". tags:

• agreement
• drafting
• regulatory

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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