Business Account Terms & Conditions

Common Account Terms

The following common terms apply to the accounts listed above: Dormant Account- No activity for 6 months other than interest credited and balance under $2,500.00 charge will be $15.00 per month. 

Other Account Information

Any checking account having an item presented for payment in an amount of $2,500.00 or more and (1) it creates an overdraft and the check is returned unpaid or (2) a stop payment is placed on the check and it is returned unpaid, the account will be charged $22.00 in addition to regular overdraft or stop pay charges. Any checking account having an ACH (automatic clearing house) item returned will be charged $7.00 in addition to the regular overdraft charge.

The Bank may use the money in your accounts to pay any debt you owe the Bank that is not paid when due. Either you or the Bank may close your account at any time. Any checks presented thereafter will be returned unpaid. Statements will be mailed to the last address given to the Bank. Please notify the Bank promptly of address changes. Undeliverable mail will cause the Bank to stop sending statements.

Any non-consumer checking account experiencing a persistent daily collected negative balance may have an interest fee calculated at a rate based on Prime plus 4% and charged against the account in addition to the regular service charge. Any account closed within 90 days of opening date will be assessed a $25.00 charge.

Service charge and fee schedules are subject to change not less than 30 days after the Bank mails a notice. The Bank may waive any of these Fees and Charges or any Rules and Regulations, but the waiver will apply only on that occasion.

Rates are usually adjusted monthly, but the rate of interest paid may be increased or decreased at any time without notice. All interest bearing accounts except fixed rate certificates of deposits (CD’s) are variable interest rate accounts. 

Additional terms, rules, conditions, and disclosures are provided on reverse, and on separate brochures and documents. Other fees may be charged on your monthly statement; see the Fee Schedule.

Account Agreement

1. RIGHT TO WITHDRAWAL-Federal regulations allow us to retain the right to require at least 7 days notice prior to any withdrawal from an interest bearing checking account. If we tell you that we require 7 days notice, we will not pay your funds until expiration of the notice period.

2. STATEMENTS - Statements will be periodically prepared by Bank and mailed to customer or Customer may call and claim the same within a reasonable time. Lost statements become customer’s responsibilities. Customer must contact Bank within 10 days of receipt of such statements should Customer find any errors, discrepancies, or forgeries therein, or the stated balance will be considered correct. Except where the Bank fails to use ordinary care in paying checks or drafts with forged signatures, desktop publishing or other computer generated or aided signatures, positive pay arrangements where presentment is made through computer modem, checks and drafts truncated at another collecting institution, and situations where the Bank, consistent with the practice of other banks in the industry, does not scrutinize depositor’s signatures.

3. STOP PAYMENT-If Customer requests Bank to stop payment on any item, Bank must be furnished with the item’s exact amount, date, number, name of payee plus any other requested pertinent information. Failure to provide Bank with same shall relieve Bank of any liability in the transaction. Customer agrees to reimburse Bank for any expenses or losses that might occur therein. Requests must be made within regular business hours, and these requests are subject to the terms on the forms used for such purposes. Stop payments are not allowed on cashier’s or certified checks or bank money orders. If this is a joint account we will accept a stop payment order from any owner regardless of who signed the check.

4. CHARGEBACKS-If we cash a check for you or accept it for deposit to your account and it is returned to us unpaid, we will charge your account for the unpaid check. The unpaid check will be mailed to you at the address shown on our records or you may pick it up at the Bank after you have been notified. A service fee may be imposed for this type of activity.

5. IF YOU DO NOT USE YOUR ACCOUNT-An account shall be considered inactive during any period defined by the Bank, available upon request, in which there shall occur no deposit, no withdrawals, or no written correspondence with the Bank with respect to the account. An account which has been inactive for a period of time according to state law, will be escheated to the state as abandoned property and no interest will be earned after an escheat. The Bank reserves the right at the start of the inactive period to charge a fee per month for cost of the inactivity.

6. PRINTED CHECK PURCHASES-The Bank reserves the right to require that all purchases of printed checks be done by the Bank’s authorized check printers (available upon request). If at any time you should use checks printed by someone other than authorized by the Bank, the Bank reserves the right to reject every check and charge a fee per check for each check rejected.

7. OVERDRAFTS AND NONSUFFICIENT FUNDS-If you write a check for more money than you have in your account, you will be overdrawn and we will return the check unpaid (Non-sufficient funds/NFS), however, the Bank reserves the right not to return the check based upon the relationship you have with the Bank, the number of times you have been overdrawn, the amount of the check or checks overdrawn, frequency of overdrawn accounts, etc. We assess a charge for each check returned or overdrawn (see schedule of Service Charges). If you frequently overdraw your account, we reserve the right to close it. When we do, we will mail a notice and a check for the balance of money in the account to the address shown on our records.

8. SET-OFF-Bank may charge to or offset any of Customer’s Accounts or any Multiple Party Account to which Customer is a party (“Multiple Party Accounts”) against any Obligation then owed to Bank by Customer, or any Obligation then owed to Bank by any other party to a Multiple Party Account. (The term “Account” and “Multiple Party Account” include any liabilities or indebtedness of Bank to its customer including but not limited to time, savings, checking, money market or “Now” deposit accounts; certificates of deposit and any money owing to it’s customer or in Bank’s possession for collection or exchange; and any repurchase agreement or other non-deposit obligations. The term “Obligation” includes each and every debt, liability and obligation of every type and description which a customer may at any time owe to Bank whether such debt, liability or obligation now exists or is hereafter incurred, and whether it is or may be direct or indirect, due or to become due, an absolute or contingent, primary or secondary, liquidated or unliquidated, joint, several, or joint and several).

9. LEGAL PROCEEDINGS-If your account becomes involved in legal proceedings, your use of it may be restricted.

10. JOINT ACCOUNTS-If this is a joint account, any or all of the joint owners can make deposits or withdrawals. We can act on the written instruction of any one or more of the joint owners. We will continue to follow these instructions until we receive written notice to change them. We have the right to endorse any checks, drafts, or other orders for the payment of money made out to any of the joint owners. Once endorsed, we can deposit them into the joint account. You agree that any money in this account can be paid to any one or more of the joint owners, whether or not the other owners are alive at the time of the payment. You agree that it is your intention to create a joint tenancy with the right of survivorship (a form of ownership) in this account and that if one or more of the joint owners dies, his or her interest in the account passes to the remaining owners. Once a joint account is opened, one owner cannot remove another from the title of the account.

11. MINORS ACCOUNTS-If you open an account as custodian for a minor beneficiary (less than 21 years old), your rights and duties are governed by state law.

12. DISCLAIMER OF LIABILITY-The financial institution is responsible for or subject to any liabilities to its consumers, other than those imposed upon it by the Uniform Commercial Code, for its own lack of good faith or its own failure to exercise ordinary care. The obligation to exercise ordinary care in the handling of items of deposit and of withdrawal shall be measured by the standard of the reasonableness of procedures established for the transaction involved, and mere clerical error, inadvertence, or oversight without malice, or an honest mistake of judgment shall not be or constitute, as to any transaction, a failure to perform such obligations or a failure to exercise ordinary care and in no case shall be deemed wrongful.

13. INCOME TAX-We will send you a statement showing the total interest earned during the year so you can include it in your income tax returns. If you fail to report your interest income when you file your return, or if you fail to provide us with a proper taxpayer identification number, or if you provide us with an incorrect taxpayer identification number, we may be instructed by the Internal Revenue Service to withhold 20% of your interest income. The amount withheld will be sent to the Internal Revenue Service.

14. APPLICABLE LAW-This Agreement is governed by the applicable laws and regulations of the United States and the State of Kansas, including but not limited to, the Uniform Commercial Code, and laws regulating transfers at death, and estate and other taxes. All deposits to and withdrawals from any account are subject to such laws as well as the terms and provisions of this Agreement and any agreement executed in conjunction herewith.

15. DEPOSITS-Any Customer may make deposits in the account at any time Bank is open for Business. Deposits other than cash shall be given credit according to Bank’s existing policies pertaining to funds availability. Bank is authorized to send checks or other items for collection to other banks, or through any channel or agent at its discretion, and such non-cash items and their proceeds may be forwarded to and handled by any Federal Reserve Bank in accordance with applicable Federal Reserve rules. The Bank will not be liable for loss in transit or for negligence or default of other banks, or agents or sub-agents.

16.YOUR ABILITY TO WITHDRAW FUNDS AT KENDALL STATE BANK-Our policy is to make funds from your deposits available to you on the first business day after the day we receive your deposit. Electronic direct deposits will be available on the day we receive the deposit. Once they are available you can withdraw the funds in cash and we will use the funds to pay checks that you have written. For determining the availability of your deposits, every day is a business day, except Saturdays, Sundays, and federal holidays. If you make a deposit before 3:00 p.m. with a human teller at our main bank or branches on Monday, Tuesday, Wednesday, or Thursday, or before 2:00 p.m. with a human teller at our main bank or branches on Friday, on a business day we are open, we will consider that day to be the day of your deposit. However, if you make a deposit after 3:00 p.m. with a human teller at our main bank or branches on Monday, Tuesday, Wednesday, or Thursday or after 2:00 p.m. with a human teller at our main bank or branches on Friday, or on a day we are not open, we will consider that the deposit was made on the next business week day we are open. LONGER DELAYS MAY APPLY-In some cases, we will not make all of the funds that you deposit by check available to you on the first business day after the day of your deposit. Depending on the type of check that you deposit, funds may not be available until the fifth business day after the day of your deposit. However, the first $100 of your deposit will be available on the first business day. If we are not going to make all of the funds from your deposit available on the first business day, we will notify you at the time you make your deposit. We will also tell you when the funds will be available. If your deposit is not made directly to one of our employees, or if we decide to take this action after you have left the premises, we will mail you the notice by the day after we receive your deposit. If you need the funds right away, you should ask us when the funds will be available. In addition, funds you deposit by check may be delayed for a longer period under the following circumstances:
We believe a check you deposit will not be paid; You deposit checks totaling more than $5000 on any one day; You redeposit a check that has been returned unpaid; You have overdrawn your account repeatedly in the last six months; There is an emergency, such as failure of communications or computer equipment.
We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available no later than the seventh business day after the day of your deposit. If we cash a check for you that is drawn on another bank, we may withhold the availability of a corresponding amount of funds that are already in your account. Those funds will be available at the time funds from the check we cashed would have been available if you had deposited it. If we accept for deposit a check that is drawn on another bank, we may make funds from the deposit available for withdrawal immediately but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available for withdrawal until the time periods that are described elsewhere in this disclosure for the type of check that you deposited. SPECIAL RULES FOR NEW ACCOUNTS-If you are a new customer, the following special rules will apply during the first 30 days your account is open. Funds from electronic direct deposits to your account will be available on the day we receive the deposit. Funds from deposits of cash, wire transfers, and the first $5,000 of a day’s total deposits of cashiers’ certified, teller’s, traveler’s, and federal, state, and local government checks will be available on the first business day after the day of your deposit if the deposit meets certain conditions. For example, the checks must be payable to you (and you may have to use a special deposit slip). The excess over $5,000 will be available on the ninth business day after the day of your deposit. If your deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, the first $5,000 will not be available until the second business day after the day of your deposit. Funds from all other check deposits will be available on the twenty-first business day after the day of your deposit.

17. RESOLUTIONS-Corporations, partnerships, proprietorships, associations, and other organizations must provide Bank (at Bank’s request) with proper and up-to-date deposit and withdrawal authorizations/resolutions.

18. BANK’S LIABILITY-Bank’s liability to Customer is limited to any action or failure to act in which Bank does not perform in good faith and exercise reasonable care.

19. OWNERSHIP OF ACCOUNT-The following provisions explain the rules applicable to this account depending on the form of ownership specified on the signature card. Only the portion corresponding to the form of ownership specified will apply. Individual Account-Such an account is issued to one person who does not intend (merely by opening this account) to create any survivorship rights in any other person. Joint Account-With Survivorship (And Not as Tenants in Common)-Such an account is issued in the name of two or more persons. Each of you intend that upon your death the balance in the account (subject to any previous pledge to which we have consented) will belong to the survivor(s). If two or more of you survive, you will own the balance in the account as joint tenants with survivorship and not as tenants in common. Joint Account-No Survivorship (As Tenants in Common)-Such an account is issued to two or more persons, but none of you intend (merely by opening this account) to create any right of survivorship in any other person. We encourage you to agree and tell us in writing of the percentage of the deposit contributed by each of you. This information will not, however, affect the “number of signatures” necessary for withdrawal. Trust or Pay-On-Death Account-If two or more of you create such an account, you own the account jointly with survivorship. Beneficiaries acquire the right to withdraw only if (1) all persons creating the account die, and (2) the beneficiary is then living. If two or more beneficiaries are named and survive the death of all persons creating the account, such beneficiaries will own this account in equal shares, without right of survivorship. The person(s) creating either of these account types reserves the right to: (1) change beneficiaries; (2) change account types; and (3) withdraw all or part of the deposit at any time. Corporate, Partnership, and other Organizational Accounts-We reserve the right to require the governing body of the legal entity to give us a separate authorization telling us who is authorized to act on its behalf. We will honor such an authorization until we actually receive written notice of a change from the governing body. Account Transfer-This account may not be transferred or assigned without our written consent.

20. CHANGES-Bank may change the terms applicable to your accounts from time to time. Bank will notify you in advance of any such changes. All changes and notifications shall comply with applicable law.

21. TERMINATION-Bank may close any account at any time, at its discretion, by giving Customer written notice made pursuant to applicable law and the terms and conditions applicable to the account and mailing the account balance to Customer. If this is a Joint Account, notice by Bank to any one Customer shall be considered to be notice to all Customers.

22. ELECTRONIC FUND TRANSFER ACT (Effective April 1, 1999) The following disclosure information is provided in compliance with Regulation “E” only as it pertains to 
your Direct Deposit of Social Security or Payroll Checks or to any pre-authorized electronic transfer to or from your account with us.
     a). CONSUMBERS LIABILITY FOR UNAUTHORIZED TRANSFERS AND OPTIONAL DISCLOSURE OFADVISABILITY OF PROMPT REPORTING 
If your statement shows transfers that you did not make, tell us at once. If you do not tell us within 60 days after the statement was mailed to you, you may not get back any money you lost after the 60 days if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason (such as a long trip or hospital stay) kept you from telling us, we will extend the time periods.
     b). TELEPHONE NUMBER AND ADDRESS TO BE NOTIFIED IN EVENT OF UNAUTHORIZED TRANSFER 
If you believe someone has transferred or may transfer money from your account without permission, call or write to us at the main bank:
Telephone us: (785)945-3231
Or Write us at: KENDALL STATE BANK
406 BROADWAY;P.O. BOX 188
VALLEY FALLS, KS. 66088-0188
     c). BUSINESS DAY OF INSTITUTION HOURS: Monday through Thursday 9 a.m. - 3 p.m.; Friday 9 a.m. - 6 p.m. - Saturday 8:30 a.m. - Noon
     d). TYPES AND LIMITATIONS OF TRANSFERS
Pre-authorized Transfers - We are equipped to:*Accept certain direct deposits to your checking account *Pay certain recurring bills from your checking account *Accept certain direct deposits to your savings account *Pay certain recurring bills from your savings account
Limitations on Frequency of Transfers-Transfers from a money market deposit account to another account or to third parties by pre-authorized, automatic, or telephone transfer are limited to six per month of statement cycle with no more than three by check, to third parties. Transfers from a savings account to another account or to a third parties by pre-authorized, automatic, or telephone transfer are limited to three per month or statement cycle. 
Limitations on Dollar Amounts of Transfers - NONE
     e). CHARGES FOR ELECTRONIC FUNDS TRANSFER SERVICES 
There are no additional charges for electronic funds transfers. Your charge shall be the same as the check or deposit charge on your particular type of checking or savings account in effect at the time of the transaction. Any account having an ACH item returned because of insufficient funds, will be charged $5.00 in addition to the regular overdraft charge. NOTICE REGARDING ATM FEES BY OTHERS: If you use an automated teller machine that is not operated by us, you may be charged a fee by the operator of the machine and/or by an automated transfer network.
     f). RIGHT TO RECEIVE DOCUMENTATION OF TRANSFERS 
Pre-authorized Credits. If you have arranged to have direct deposits made to your account at least once every 60 days from the same person or company, we will let you know if the deposit is made. You can call us to find out whether or not the deposit has been made. CALL (785)945-3231. Checking accounts will receive a monthly statement showing all your account activity including electronic transfers. Savings account with electronic transfers will receive their
statements quarterly.
     g). STOP PAYMENT PROCEDURES AND NOTICE OF VARYING AMOUNTS
*RIGHT TO STOP PAYMENT AND PROCEDURE FOR DOING SO. 
If you have told us in advance to make regular payments out of your account, you can stop any of these payments. Call or write us at the telephone number or address listed, in time for us to receive your request three business days or more before the payment is scheduled to be made. If you call, we may also require you to put your request in writing and get it to us within 14 days after you call.
*NOTICE OF VARYING AMOUNTS. 
If these regular payments may vary in amount, the person you are going to pay will tell you, 10 days before each payment, when it will be made and how much it will be. (You may choose instead to get this notice only when the payment would differ by more than a certain amount from the previous payment, or when the amount would fall outside certain limits that you set.)
*LIABILITY FOR FAILURE TO STOP PAYMENT OF PREAUTHORIZED TRANSFER.
If you order us to stop one of these payments three business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages.
     h). OUR LIABILITY FOR FAILURE TO MAKE TRANSFERS 
If we do not complete a transfer to or from your account on time or in the correct amount according to our agreement with you, we will be liable for your losses and damages, however there are exceptions. We will not be liable for instance:
* If through no fault of ours, you do not have sufficient available balance in your account to make the transfer.
* If circumstances beyond our control, such as fire or flood, prevent the transfer despite reasonable precautions we have taken.
* If your funds are subject to legal process or other encumbrance restricting transfer.
* There may be other exceptions stated in our agreement with you.
     i). DISCLOSURE OF ACCOUNT INFORMATION TO THIRD PARTIES 
We will disclose information to third parties about your account or the transfers you make:
* Where it is necessary for completing transfers.
* In order to verify the existence and condition of your account
for a third party, such as a credit bureau or merchant. 
* In order to comply with government agency or court orders.
* If you give us your written permission.
     j). IN CASE OF ERROR OR QUESTION ABOUT YOUR ELECTRONIC TRANSFERS Telephone us at: (785)945-3231 or Write us at: 
KENDALL STATE BANK
406 Broadway; P.O. Box 188
Valley Falls, Ks. 66088-0188
as soon as you can, if you think your statement or receipt is wrong or if you need more information about a transfer listed on the statement or receipt. We must hear from you no later than 60 after we sent the first statement on which the problem or error appeared.
Tell us your name and account number. Describe the error or the transfer you are unsure about and explain as clearly as you can why you believe it is an error or why you need more information. Tell us the dollar amount of the suspected error. If you tell us orally, we may require that you send us your complaint or question in writing within ten (10) business days. 


We will determine whether an error occurred within 10 business days (20 business days if the transfer involved a new account) after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days (90 days if the transfer involved a new account ,a point-of-sale transaction, or a foreign-initiated transfer) to investigate your complaint or question. If we decide to do this, we will credit your account within10 business days (20 business days if the transfer involved a new account) for the money during the time it takes us to complete our investigation. 
If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account. Your account is considered a new account for the first 30 days after the first deposit is made, unless each of you already has an established account with us before this account is opened.
We will tell you the results within three business days after completing our investigation. If we decide that there was no error, we will send you a written explanation.
You may ask for copies of the documents that we used in our investigation.