REPUBLIC BANK
FUNDS AVAILABILITY POLICY & ACCOUNT RULES

FUNDS AVAILABLITY POLICY

Availability of Deposits
It is the policy of Republic Bank (“Republic” or “Bank”) to provide the most reasonable availability for deposited items.

We make your funds available in accordance with Federal regulatory requirements and our check-clearing schedule. Generally, this allows local checks to be available on the first business day after the banking day of deposit and non-local checks to be available on the second business day after the banking day of deposit. If your check is cleared through electronic presentment, your funds may be available sooner. Electronic deposits are available on the effective date of the deposit. Once funds are available, you can withdraw the funds in cash or electronically and we will use the funds to pay checks or other items you have authorized.

You can determine when your deposit will be available by counting the number of business days from the day you made your deposit. Each day except Saturday, Sunday, and federal holidays are considered a business day. We consider your item deposited when it is received before the local cut-off time for your banking center on a business day. If we receive your deposited item after the local cut-off time or on a day that is not a business day, we will classify it as being received on the next business day. (The local cut-off time is posted at each banking center.)

Checks payable by one bank, but payable through another bank are considered local or non-local according to the location of the payable by bank, and not the payable through bank (whose routing number appears on the check). For more information about whether a check you deposit is local or non-local, ask a Republic associate.

In some instances, a merchant may convert your paper check into a “remotely created check” and present it for payment on your account. Remotely created checks are considered electronic funds transfers and may clear your account quicker than regular paper checks. The merchant must inform you of this conversion and you must authorize the conversion before it is complete. As required by Federal regulations, the presenter, transferor, and/or depository bank of remotely created checks will warrant that you have authorized the issuance of the remotely created check to any transferee, paying bank, or subsequent bank. For further information about electronic transactions, please consult the Electronic Funds Transfer Disclosure provided to you at account opening or available at www.republicbank.com.

If you make a deposit at a Republic Automated Teller Machine (ATM), you can withdraw the first $100 of all aggregate deposits on the next business day after the day of your deposit. If you deposit cash or checks drawn on a Republic account, you can withdraw the remaining deposited amount on the next business day. Any other deposited item will be available for withdrawal on the second business day. If any item is deposited at an ATM after the posted ATM cut-off time or on a federal holiday, one business day will be added to the availability of your deposit. Any items deposited after the posted local-cut off time on a Friday, will be considered deposited on Monday.

Next Day Availability
Some deposited items are available on the first business day after the day of your deposit including:

• US government checks that are payable to you
• Wire transfers or other electronic payments

If you make the deposit in person to a Republic employee, funds from the following deposits are also available on the first business day after the banking day of your deposit:

• Cash
• State and local government checks that are payable to you and are deposited using a special deposit slip available at any banking center. The state or local government entity must also be located in the same state as Republic.
• Cashier’s and certified checks that are payable to you and deposited using a special deposit slip available at any banking center.
• Federal Reserve Bank checks, Federal Home Loan Bank checks, and US postal money orders payable to you.

If your deposit is not made in person to one of our employees (e.g. mailed to the Bank), funds from those deposits will be available on the second business day after the day we receive your deposit.

When a Longer Delay May Apply
On a case-by-case basis, we may not make deposited local check funds available on the first business day or deposited non-local check funds available on the second business day as described above. Depending on the type of check deposited, your funds may not be available until the fifth business day after the day of your deposit. However, the first $100 of your aggregate deposits will be available on the first business day.
 
If we do not make all of your funds available to you immediately, we will notify you of the case-by-case hold at the time that 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, we will mail you the notice by the next business day.

Your deposited funds may not be made available for an additional number of days in certain instances, such as:

• We believe the deposited check is uncollectible;
• You make deposits in any one day that exceed $5,000;
• You redeposit a check that has been returned unpaid;
• You have overdrawn your account six or more times in the last six months or the amount you are overdrawn was $5,000 or more on two or more banking days during this period.
• Certain emergency conditions preventing the availability of normal banking services.

If we delay the availability of your funds for any of the above reasons, we will notify you and will tell you when the funds will be available. In certain instances, we may not know when your funds will be available until after you have left the banking center. If that is the case, we will mail you a notice by the next business day after the deposit. Generally, in these instances, funds will be available no later than the eleventh business day after the banking day of your deposit. Extended holds of this nature are referred to as exception holds.

Special Rules for New Accounts
If you or any joint owner on your account has not had a previous deposit relationship with us, for the first thirty (30) days after establishing a deposit account relationship, you may be subject to a new account exception hold. For new accounts, we may hold the entire balance of any deposits that you make into your account.

Deposits consisting of cash; wire transfers; electronic payments; US, state and local government checks; cashier’s check; certified checks; US postal money orders; traveler’s checks and checks drawn on a Republic account will generally be available on the next business day after the day of your deposit. These items must be made payable to you and may require a special deposit slip.

For all other checks deposited into a new account, funds will be available on the eleventh business day after the banking day of deposit.

Exceptions
Republic may make exceptions to this policy to the extent permitted by law. Additional specialized rules may apply for cash withdrawals, deposits at non-proprietary ATMs, and deposits made outside the continental United States. If you have any additional questions, please contract a Republic associate.
 

ACCOUNT RULES

Payment of Checks & Withdrawals
We will honor all properly payable checks drawn on your account if there are sufficient funds in your account for their payment. We are not obligated to pay any check drawn on your account for which there is no collected funds on deposit. We reserve the right to charge a fee to non-customers on presentment of a check for immediate payment. You may only use checks furnished or pre-approved by us. We may pay any check regardless of the date written on the check or even if it is not dated. However, we reserve the right to not pay any check that is more than six months old. We may require you to furnish satisfactory identification before you withdraw money from your account. You are liable for the improper use of your facsimile signature stamp. We are not obligated to verify and shall be held harmless for paying dual signature checks that do not have two signatures.

Stopping Payment
You may request a Stop Payment on an unpaid check or item, including certain electronic items (ACH). You must allow us sufficient time (a minimum of one business day for a check; three business days prior for a scheduled electronic (ACH) payment date) to implement the Stop Payment. You may notify us by telephone, in person, via Internet Banking, or in writing. However an oral Stop Payment is only valid for a maximum of fourteen days unless we have written confirmation of your request. All required information for a Stop Payment must be complete and correct in order for your request to be implemented. You must provide us with your name, account number, date the item was issued or the transaction date, the amount, the Payee and the check number if available or applicable. Stop Payment requests are valid for (a) six months or (b) until the Bank receives notice to revoke the Stop Payment whichever occurs first. For electronic Stop Payment requests, the Stop Payment is effective one time only. Future electronic payments from your account will not be affected. Recurring electronic payments must be cancelled by you directly with the originator of the electronic payment transactions. You may renew a Stop Payment for an additional six months at the time of the initial six month period is set to expire by completing a new Stop Payment request.

A Stop Payment fee will be assessed each time a Stop Payment request is processed or renewed as set forth in our Fee Schedule. You agree to hold us harmless and to indemnify us against any loss and/or costs, including reasonable attorney fees resulting from non-payment of any item or transaction for which you have requested a Stop Payment. Please refer to our Internet Banking Stop Payment Terms and Conditions for information regarding stopping payment via the Internet.

Overdrafts
Pursuant to the Bank’s Account Rules, you agree to pay us the amount of any overdraft and applicable fees immediately, without notice or demand from us. Each account holder for your account is jointly and severally responsible under these Rules for paying any amount due to us.

Right of Set-Off
At any time, we may apply funds in your account, including benefits payment deposits, to pay any debt due us except as prohibited by law. If your account is a joint account, we may apply any portion of the funds to pay the debt of any joint account holder. We will notify you promptly in writing if we take such action.

Statements
Unless there has been no activity in your account, we will send you a periodic statement by mail or online if you have agreed to receive online statements. You agree to examine your statement and check images promptly upon receiving it and you will notify us within ten days of any check errors, alterations or unauthorized signatures. You also agree to notify us of any errors regarding electronic transactions within required regulatory timeframes as outlined in the Electronic Funds Transfer Disclosure provided to you at account opening and available at www.republicbank.com. If you do not notify us within the required timeframes, we may not be responsible for those items and any resulting fees or penalties.

Federal Reserve Requirements
For certain categories of deposits, banks are required to maintain on deposit with the Federal Reserve Bank a portion of those deposits. From time to time, but no more than six (6) times per month, Republic will transfer funds from your transaction (checking) account to a non-transaction account. This is an internal procedure that has no effect on your monthly periodic statement, availability of funds, your FDIC insurance coverage, or any of the other terms disclosed herein.

Modification to Terms
We reserve the right to modify the terms and conditions herein, at any time, at our sole discretion.

Termination
Your account can be closed at any time for any reason by either you or the Bank. We may require your account to remain open until all outstanding items clear your account. We will close your account if you notify us that your checks have been lost or stolen. If your account is closed within twelve months of being opened, a closure fee may be assessed as outlined on your Truth-in-Savings Account Disclosure provided to you at account opening. If there is a collected balance when you close your account, we will notify you and send you a check. We do not have to notify you if there is no collected balance when you close your account.

Joint Account Rules
If your account is a joint account, all funds in it are owned jointly by each of the people named on the account. At any time, any one of you may withdraw the full amount on deposit. Each joint owner appoints any other owner as his/her attorney-in-fact with the power to endorse or deposit checks or other items which may be payable to one or both owners. In some instances, we may require individual endorsements.

Death of an Account Owner
If you or a joint owner of your account dies, we may require certain documentation necessary to certify that death or substantiate that a particular individual has been appointed officially as the administrator/executor of an estate. The survivor on a joint account must notify us of the other owner’s death.

Fees
We may charge your account for services according to our Fee Schedule in effect at the time we perform the services. A copy of our Fee Schedule was provided to you at account opening and is available at any of our banking centers or at www.republicbank.com.

Electronic Transactions
If your account is authorized for electronic transactions, including telephone, fax, and internet transactions and you initiate the transaction via one of these means, we will rely on your verbal or electronic authorization to process the transaction.

Credit Bureau Reports
We reserve the right and you agree that we may request and review a credit bureau report at any time in connection with our review or collection of your account.

Reporting of Negative Credit Information
We may report information about your account to credit bureaus. Late payments, missed payments, or other defaults on your account may be reflected in your credit report.

Special Rules for Honor Plus Accounts
If you have an Honor Plus account, you agree to maintain your account in “good standing.” Good standing guidelines require the account to have no more than 2 overdraft days in a 90 period. Eligibility for personal account type of the client’s choice requires the account be at least 12 months of age and in good standing. Your account must be used each month to be eligible for account type change. Honor Plus accounts are not eligible for ATM deposits access or car rental transactions. Monthly service fees are assessed for your Honor Plus account on the statement cycle date. Ensure you allow enough available funds in your account to cover service fees in order to avoid overdraft fees.

Customer Identification Program Notice
In order to help the government fight the funding of terrorism, money laundering activities and identity theft, the USA PATRIOT Act requires all financial institutions to obtain, verify and record information that identifies each person or business that opens an account.

What this means to you is that when you open an account with Republic, we will ask for your name, street address, taxpayer identification number, date of birth, and other information that will allow us to identify you. We will also ask to see an unexpired, government-issued photo ID or similar identifying documents.

FDIC Insurance
On October 3, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2013.