Rules Applicable to Certain Accounts Sample Clauses

Rules Applicable to Certain Accounts. 1. CHECKING SUB-ACCOUNTS All interest bearing and non-interest bearing checking (transaction) accounts offered by the Bank are designated as “Money Management Accounts.” Savings and “money market” deposit accounts are not considered “Money Management Accounts.” For most purposes, Money Management Accounts are treated as a single account for certain record keeping, fees, minimum balances, and paying items. For regulatory accounting purposes, your checking account will consist of two “subaccounts” on our records. One sub-account is a checking account of the type designated by the account title (“Checking Sub-Account”). The other sub-account is a money market account (“Money Market Sub-Account”). If the checking account is interest bearing, interest will accrue on the combined collected balance on deposit in both of these sub- accounts at the interest rate established for the applicable checking account. Therefore, the Annual Percentage Yield (APY) earned for the account is based on the combined collected balance on deposit in both sub-accounts during the statement cycle. If the checking account is non-interest bearing, no interest will be paid on the sub-account. By regulation, the Checking Sub-Account is classified as a “transaction” account from which an unlimited number of transfers of funds may be made; the Money Market Sub-Account is classified as a “money market” account in which case the number of transfers of funds from the account is limited to six (6) per statement cycle. The regulatory limitation on transfers from the Money Market Sub-Account during a statement cycle is the determining factor for the procedure for transfers between the sub-accounts described below. Funds on deposit in the Money Market Sub-Account will be maximized during each monthly statement cycle by automatic transfers from the Checking Sub-Account, which will minimize Funds on deposit in the Checking Sub-Account. In order to accomplish this goal, funds on deposit in the Checking Sub-Account in excess of the Target Balance, which is defined below, will be automatically transferred to the Money Market Sub- Account until such time in each monthly statement cycle that a total of six (6) transfers have been made from the Money Market Sub-Account back to the Checking Sub-Account to cover checks presented for payment or debits made from the Checking Sub-Account. Following the sixth such transfer from the Money Market Sub-Account to the Checking Sub-Account, no further transfers will ...

Rules Applicable to Certain Accounts