Your Ability to Withdraw Funds
In this disclosure, the words "you" and "yours" refer to the accountholder(s) and "we," "us," "our," and "Bank" refer to New South Federal Savings Bank.
Our policy is to delay the availability of funds from your check deposits. During the delay you may not withdraw the funds in cash and we will not use the funds to pay checks that you have written.
Please remember that even after we have made funds available to you, and you have withdrawn the funds, you are still responsible for checks you deposit that are returned to us unpaid and for any other problems involving your deposit.
DETERMINING THE AVAILABILITY OF A DEPOSIT. The length of the delay is counted in business days from the day of your deposit. Every day is a business day except Saturdays, Sundays, and federal holidays. If you make a deposit before closing on a business day that we are open, we will consider that to be the day of your deposit. However, if you make a deposit after closing or on a day we are not open, we will consider that the deposit was made on the next business day we are open. If you make a deposit by mail, we will consider that the deposit was made on the day we actually receive the deposit from the United States Post Office. If you make a deposit at our night depository, we will consider that the deposit was made on the day we remove the deposit from the night depository.
The length of the delay varies depending on the type of deposit and is explained below:
Same-Day Availability. Funds from electronic direct deposits to your account, such as social security benefits and payroll payments, and cash deposits will be available on the day we receive the deposit.
Next-Day Availability. Funds from the following deposits are available on the first business day after the day of your deposit:
- U.S. Treasury checks that are payable to you;
- Wire transfers; and
- Checks drawn on New South Federal Savings Bank and its UmbrellaBank.com Division
If you make the deposit in person to one of our employees, funds from the following deposits are also available on the first business day after the day of your deposit:
- State and local government checks that are payable to you;
- Cashier's, certified, and teller's checks that are payable to you; and
- Federal Reserve Bank checks, Federal Home Loan Bank checks, and postal money orders, if these items are payable to you.
If you do not make your deposit in person to one of our employees (for example, if you mail the deposit), funds from these deposits will be available on the second business day after the day we receive your deposit.
- Other Check Deposits. The delay for other check deposits depends on whether the check is a local or a nonlocal check. To see whether a check is a local or a nonlocal check, look at the routing number on the check:
If the first four digits of the routing number (1234 in example above) are 0610, 2610, 0611, 2611, 0612, 2612, 0613, 2613, 0620, 2620, 0621, 2621, 0622, 2622, then the check is a local check. Otherwise, the check is a nonlocal check. Some checks are marked "payable through" and have a four- or nine-digit number nearby. For these checks, use the four-digit number (or the first four digits of the nine-digit number), not the routing number on the bottom of the check, to determine of these checks are local or nonlocal. Our policy is to make funds from local and nonlocal checks available as follows:
(1) Local checks. The first $100 from a deposit of local checks will be available on the first business day after the day of your deposit. The remaining funds will be available on the second business day after the day of your deposit. For example, if you deposit a local check of $700 on a Monday, $100 of the deposit is available on Tuesday. The remaining $600 is available on Wednesday.
(2) (Nonlocal checks. The first $100 from a deposit of nonlocal checks will be available on the first business day after the day of your deposit. The remaining funds will be available on the fifth business day after the day of your deposit. For example, if you deposit a $700 nonlocal check on a Monday, $100 of the deposit is available on Tuesday. The remaining $600 is available on Monday of the following week.
(3) Local and nonlocal checks. If you deposit both categories of checks, $100 from the checks will be available on the first business day after the day of your deposit, not $100 from each category of check.
Longer Delays May Apply. Funds you deposit by check may be delayed for a longer period under the following circumstances: (1) We believe a check you deposit will not be paid. (2) You deposit checks totaling more than $5,000 on any one day. (3) You redeposit a check that has been returned unpaid. (4) You have overdrawn your account repeatedly in the last six months. (5) There is an emergency, such as failure of computer or communications 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 ninth business day after the day of your deposit.
Deposits at Automated Teller Machines. Funds from any deposits (cash or checks) made at automated teller machines (ATMs) we do not own or operate will not be available until the fifth business day after the day of your deposit.
Holds on Other Funds. 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.
Other Restrictions on Withdrawals. When we receive any notice, claim or court order which we think may affect your account (such as liens, garnishments, attachments, levies, injunctions, or other orders of a court or other government agency), we may: (i) with regard to funds already in your account and funds you may thereafter deposit to your account, refuse to permit you to withdraw such funds and to use such funds to pay checks that you have written or (ii) use funds already in your account to pay the source of the claim.
Returned Checks. In the event a check which you deposited to your account is, for any reason, returned (or is in the process of being returned per notification from another financial institution) to us unpaid, we shall have the right to charge the amount of the check to any account which you own individually or jointly with others, even if we have previously made the funds represented by the check available to you under this Funds Availability Policy.
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 transfer, and the first $5,000 of a day's total deposits of cashier's, 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 check 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 ninth business day after the day of your deposit.
Substitute Checks and Your Rights - -
Important Information About Your Checking Account
What is a substitute check?
To make check processing faster, federal law permits banks to replace original checks with ‘‘substitute checks.'' These checks are similar in size to original checks with a slightly reduced image of the front and back of the original check. The front of a substitute check states: ‘‘This is a legal copy of your check. You can use it the same way you would use the original check.'' You may use a substitute check as proof of payment just like the original check.
All New South accounts on which you may write checks are "truncated," that is, your cancelled checks are not returned to you. If your account is accessible via the Internet, images of the front and back of your canceled checks are available on-line within 48 hours after the check is posted and remain available for viewing for 60 days. If you receive paper statements, images of the front of your canceled checks are included with your statement. The images available on-line or in your paper statement could represent an original check or a substitute check. In the event you request a copy of a cancelled check, some or all of the check copies that you obtain from us may be substitute checks. This notice describes rights you have when you receive substitute checks from us. The rights in this notice do not apply to original checks or to electronic debits to your account. However, you have rights under other law with respect to those transactions.
What are my rights regarding substitute checks?
In certain cases, federal law provides a special procedure that allows you to request a refund for losses you suffer if a substitute check is posted to your account (for example, if you think that we withdrew the wrong amount from your account or that we withdrew money from your account more than once for the same check). The losses you may attempt to recover under this procedure may include the amount that was withdrawn from your account and fees that were charged as a result of the withdrawal (for example, bounced check fees).
The amount of your refund under this procedure is limited to the amount of your loss or the amount of the substitute check, whichever is less. You also are entitled to interest on the amount of your refund if your account is an interest-bearing account. If your loss exceeds the amount of the substitute check, you may be able to recover additional amounts under other law.
If you use this procedure, you may receive up to $2,500 of your refund (plus interest if your account earns interest) within 10 business days after we received your claim and the remainder of your refund (plus interest if your account earns interest) not later than 45 calendar days after we received your claim.
We may reverse the refund (including any interest on the refund) if we later are able to demonstrate that the substitute check was correctly posted to your account.
How do I make a claim for a refund?
If you believe that you have suffered a loss relating to a substitute check that you received and that was posted to your account, please contact us at:
New South Federal Savings Bank
Deposit Services
2000 Crestwood Boulevard
Birmingham, Alabama 35210
Phone: 1-866-UMBRELLA (1-866-862-7355)
You must contact us within 40 calendar days of the date that we mailed (or otherwise delivered by a means to which you agreed) the substitute check in question or the account statement showing that the substitute check was posted to your account, whichever is later. We will extend this time period if you were not able to make a timely claim because of extraordinary circumstances.
Your claim must include —
A description of why you have suffered a loss (for example, you think the amount withdrawn was incorrect);
An estimate of the amount of your loss;
An explanation of why the substitute check you received is insufficient to confirm that you suffered a loss; and
A copy of the substitute check and/or the following information to help us identify the substitute check: the check number, the name of the person to whom you wrote the check, and the amount of the check.