UTMA ACCOUNTS Sample Clauses
The UTMA Accounts clause establishes provisions for managing assets held in accounts under the Uniform Transfers to Minors Act (UTMA) for the benefit of a minor. It typically designates a custodian to oversee the account until the minor reaches the age of majority, specifying how funds may be used for the minor’s welfare, education, or support. This clause ensures that assets are properly managed and protected for minors, providing a clear legal framework for transfers and distributions until the minor is legally entitled to take control.
UTMA ACCOUNTS. If the account is noted on the signature card as established under the Uniform Transfers to Minors Act (UTMA), you understand there can be only one custodian and one minor per account. No other parties are permitted. Your responsibility to us under this agreement will not be limited to the amount in the account. ACCOUNT TYPE. The account type is noted on the signature card and Truth in Savings disclosure. If a savings, NOW, or Money Market account, we reserve the right to require seven days’ written notice before any withdrawal. If a negotiable order of withdrawal (NOW) account, if any entity not allowed by federal regulations to have such an account becomes an owner, we will convert the account into a checking or savings account. If a Holiday Club account, we will send you a check for the balance or we will deposit the balance into an account you have with us in October each year unless otherwise directed. We have given you disclosures explaining applicable transaction limits, fees, interest rates, and balance requirements. You agree that our fees and charges need not be based upon the cost of providing the service or administering the event to which the fee or charge is associated, but may be based on other considerations such as the expense of providing account services, generally similar charges of other financial institutions with which we compete, revenues to the bank, and the deterrence of abuse of an account.
UTMA ACCOUNTS. If it is noted on the signature card that the account was established under the Uniform Transfers to Minors Act (UTMA), you understand that there can be only one custodian and one minor per account. No other parties are permitted. Your responsibility to us under this agreement will not be limited to the amount in the account.
UTMA ACCOUNTS. If this account is a Uniform Transfer/Gift to Minors Act (UTMA/UGMA) savings Account, you agree that this Account will be governed by the Uniform Transfer/Gift to Minors Act of the State where the Account is opened. All funds deposited in the Account irrevocably become the property of the minor, but are to be managed for the minor’s benefit by the custodian until the minor reaches the age of 18 or 21, depending on State law, at which time the custodian is responsible for distributing the funds to the minor. We, however, have no duty or agreement whatsoever to monitor or insure that the acts of the custodian (or successor custodian) are for the child’s benefit. We are not responsible to monitor age or eligibility for an UTMA/UGMA Account, even though our records may include the minor’s date of birth. Only one custodian (who must be 21 or older) and one minor are allowed per Account. The law imposes certain fiduciary and record keeping obligations on an UTMA/UGMA Account custodian and requires that interest earnings are reported to the IRS under the minor’s Social Security Number. Account For Minors. For an Account established by or for a minor, FCB reserves the right to require the minor Account owner to have a parent/guardian joint Account owner who is at least eighteen (18) years of age who shall be jointly and severally liable to FCB for any returned Item, overdraft, or unpaid charges or amounts on such Account. FCB may make payment of funds directly to the minor without regard to his or her minority upon consent of the parent/guardian joint owner. The signature card will serve as the consent in regard to withdrawals by the minor. FCB has no duty to inquire of the use or purpose of any transaction by the minor or joint Account owner. Business, Organization And Association Accounts. Business Accounts, other than those owned by a sole proprietorship, are payable to the business organization, not to any individual director, shareholder, member or partner. If the Account owner is a sole proprietorship, the sole proprietor has chosen to conduct the business as his or her own property rather than through a business organization. If you change your form of ownership, you must notify us promptly following such change. Earnings in the form of interest, dividends, or credits will be paid only on collected funds, unless otherwise provided by law or our policy. You represent that you have the authority to open and conduct business on this Account on behalf of the en...