2018 Spring 1.25% APY Premium Money Market Account Promotion Terms of Offer. Addendum to the OneWest Bank Account Disclosures for Personal Accounts

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1 2018 Spring 1.25% APY Premium Money Market Account Promotion Terms of Offer Addendum to the OneWest Bank Account Disclosures for Personal Accounts This Addendum to the OneWest Bank Account Disclosures for Personal Accounts ( Disclosures ) governs Premium Money Market Accounts opened under the 2018 Spring 1.25% APY Premium Money Market Account Promotion offer. In the event any terms of this Addendum differ from those set forth in the Disclosures, the terms of this Addendum shall apply. Limited time offer of a promotional 1.25% Annual Percentage Yield ( APY ) on new Premium Money Market Accounts ( PMMAs ) opened between March 19, 2018 and May 31, The 1.25% APY will be paid on PMMAs opened under this offer for the first 12 months after the account is opened (the Promotional Period ), provided the following requirements are met: 1. The new PMMA is opened with a minimum of $10,000 not on deposit or held at OneWest Bank, a division of CIT Bank, N.A. ( OneWest Bank ) or BankOnCIT.com ( CIT ) at the time of account opening. Funds withdrawn from OneWest Bank or CIT within 90 days prior to account opening are also restricted. 2. A principal balance of between $10,000 and $500,000 is maintained in the subject PMMA each day during the Promotional Period. The principal balance is defined as the end-of-day PMMA account balance, exclusive of any interest earned. Only one promotional PMMA can be opened per customer within a 12-month period. Retirement accounts, minor accounts, and employees of CIT Group Inc. or any of its affiliates, including CIT Bank, N.A. and its OneWest Bank division, are ineligible for this offer. The PMMA is a personal account only and cannot be opened in the name of a business. The 1.25% APY will be paid on your qualified PMMA each of the first twelve months the account is open, after monthly confirmation that your PMMA principal balance is between $10,000 and 500,000. If the end-of day PMMA account balance falls below $10,000 or exceeds $506,250 (which includes the additional interest on a $500,000 principal balance earned over one year at 1.25% APY) the interest rate and APY will revert to the then current regular published interest rate and APY for the applicable balance tier. The promotional rate will be reinstated on the day after the PMMA end-of-day account balance again falls within the balance range stated in the previous sentence. After the end of the Promotional Period, the PMMA will revert to the then current regular published rates for all balance tiers. Current published APYs, effective as of March 19, 2018, are: 0.15% APY on balances below $1,000; 0.15% APY on balances of $1,000 - $4,999; 0.15% APY on balances of $5,000 - $9,999; 0.25% APY on balances of $10,000 - $24,999; 0.40% APY on balances of $25,000 - $49,999; 0.50% APY on balances of $50,000 - $99,999; 0.60% APY on balances of $100,000 - $9,999,999; and 0.60% APY on balances of $10,000,000 or more. APYs applicable after the end of the Promotional Period, and on PMMAs that are not eligible for this promotion or which become ineligible because the principal balance falls outside of the specified range, are variable and may change at any time without prior notice. Fees could reduce earnings on the account. A monthly service fee of $10 will apply for the PMMA if the average monthly balance falls below $10,000. Contact a banking office for complete terms, fees and conditions. Restriction on deposits: For the duration of the Promotional Period, you may not deposit or transfer to your PMMA any funds that are on deposit or held at OneWest Bank or CIT. OneWest Bank reserves the right to reverse any deposits it determines violate this restriction CIT Group Inc. All rights reserved /18

2 Account Disclosures for Personal Accounts onewestbank.com

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4 I. DEPOSIT ACCOUNT AGREEMENT WELCOME TO ONEWEST BANK Banking with OneWest Bank. 1 Additional Services to Consider Ways to Access your Account. 1 YOUR AGREEMENT WITH US Our Agreement. 2 Amendments and Changes in Account Terms. 2 FDIC Insurance. 2 Governing Law. 2 Consent to Receive Telephone Calls/Texts & SMS Messages. 3 INFORMATION ABOUT YOU AND YOUR ACCOUNTS WITH US Customer Identification Program. 3 Credit Verification. 3 Telephone and Monitoring. 3 ACCOUNT OWNERSHIP Some General Information. 3 Transfer/Assignment. 4 Personal Accounts in General. 4 Payable-on-Death and Totten Trust Accounts. 4. GENERAL INFORMATION ABOUT TYPES OF ACCOUNTS Checking, Savings and Money Market Products Offered. 4 Checking Subaccounts. 4 Certificate of Deposit Products Offered 5. PAYMENT OF OVERDRAFTS Maintaining an Available Balance. 5 Payment of Overdrafts. 5 Fees Associated with Overdrafts. 5 Overdraft Protection 5... ABOUT OUR POSTING ORDER General Posting Order. 6 Credit and Debit Categories for Posting 6 Determination of Posting Order 6 Posting Order and Overdraft Fees 6... DEPOSITS AND COLLECTIONS Accepting Items for Deposit. 6 Verification and Collection 7 Items Sent for Collection. 7 Lost Items 7 Remotely Created Checks and Demand Drafts. 7 Delivery of Deposits and Verification. 8 Endorsements. 8 Identifying Your Account for Deposits Correction of Deposit Errors. 8 Returned Items/Transactions. 9 Depositing or Cashing Substitute Checks 9

5 . FUNDS AVAILABILITY POLICY Your Ability to Withdraw Funds. 9 Longer Delays May Apply. 9 Special Rules for New Accounts. 10 Deposits Made Via Automated Clearing House Transactions. 10 Holds on Other Funds 10 Foreign Items WITHDRAWALS AND CHECK CASHING Cashing Checks Payable to You. 11 Cashing Your Checks Payable to Others 11 Check Stock. 11 Converting Checks to Electronic Debits 11 Examining Checks 11 Voluntary Disclosure of Your Account Number. 12 Large Cash Withdrawals. 12 Paying Checks Drawn on Your Account. 12 Post-Dated Checks. 12 Missing Date or Stale-Dated Checks. 12 Substitute Checks and Image Replacement Copies. 13 Returning Unpaid Items to You. 13 SUBSTITUTE CHECKS AND YOUR RIGHTS What is a Substitute Check?. 13 What are Your Rights Regarding Substitute Checks?. 13 How do you Make a Claim for a Refund?. 14. COMMUNICATIONS, NOTICES AND STATEMENTS WE MAY SEND YOU About Sending Communications, Notices and Statements to You. 14 Delivery of Communications About Changes. 14 Check Images. 15 Change of Address. 15 Changes in Ownership and Authorized Signers 15. PROTECTING YOUR ACCOUNTS Precautions You Should Take. 15 Closing a Compromised Account. 16 Lost or Stolen Checks 16 REPORTING UNAUTHORIZED TRANSACTIONS AND PROBLEMS Types of Unauthorized Transactions Reviewing Statements and Reporting Unauthorized Use of Your Account. 16 Not Reporting Unauthorized Transactions Timely. 16 Our Investigation of Your Unauthorized Transaction. 17 Our Maximum Liability FOREIGN CHECKS AND TRANSACTIONS What is a Foreign Item? 17 Being Careful About Accepting Foreign Items. 17 Converting Currency and Exchange Rates. 17 Checks or Other Items in Foreign Currency 17 OTHER TERMS AND CONDITIONS Automatic Transfer Service. 18 Using Your Checks and Pre-printed Deposit Slips. 18

6 ... Compliance. 18 Prohibition on Funding of Unlawful Internet Gambling. 18 Conflicting Claims to Funds or Other Property. 19 Closing an Account. 19 Death or Incompetence. 19 Facsimile Signature. 19 Fees and Charges. 20 Indemnification. 20 Legal Process Items. 20 Multiple Signatures Not Required 20 Withdrawal Notice. 20 Power of Attorney. 20 Retaining Records 21 Right of Refusal. 21 Right to Set-Off. 21 Stop Payments. 21 Inactive and Unclaimed Accounts 22 Severability ELECTRONIC FUND TRANSFER AGREEMENT AND DISCLOSURE Electronic Check Conversion. 22 Automated Teller Machine ( ATM ) and Debit Cards. 22 Telephone Banking. 23 Preauthorized/Automatic Transfers. 24 Online Banking/Mobile Banking 24 Limitations. 24 Record of Your Transactions. 24 Our Liability for Failing to Make Transfers. 24 Your Liability for Unauthorized Electronic Fund Transfers. 25 How to Stop Preauthorized Transfers from Your Account. 25 Lost or Stolen Card/PIN or Unauthorized Transaction. 26 In Case of Errors or Questions About Your Electronic Transfers 26 Fees. 26 Business Days. 26 Privacy 26 Change in Terms/ Termination of Service. 27 WIRE TRANSFERS AND OTHER FUNDS TRANSFERS General Provisions. 27 Related Fees. 27 About Fedwire. 27 Sending Wire Transfers. 27 Error Resolution and Cancellation Rights for Consumer Int l Wire Transfers. 29 Receiving Wire Transfers and Certain Other Funds Transfers. 29 ACH Debits and Credits. 29 International Wire and ACH Transactions. 30 General Foreign Wire Transfer Information. 30 INCOME TAX WITHHOLDING. 31 RESOLUTION OF DISPUTES Resolution of Disputes: Arbitration Agreement. 31 Small Claims. 32 Commencing an Arbitration. 32 Powers and Qualifications of Arbitrators. 32 No Class Action or Joinder of Parties. 32

7 SAFE DEPOSIT/SAFEKEEPING AGREEMENT AND DISCLOSURE Duties. 33 Access. 33 Default. 34 Remedies. 34 Notices. 34 Termination. 35 Joint Owners. 35 Relocation of Box. 35 Liability. 35 II. CONSUMER PRODUCTS AND FEES. CHECKING, SAVINGS, MONEY MARKET AND CD ACCOUNT DISCLOSURES Average Balance. 36 Statements. 36 Additional Rate Information. 36 Interest Compounding, Calculating and Crediting. 36 ATM and Debit Cards. 36 Daily Withdrawal Limits. 37 Savings and Money Market Accounts Are Limited Transaction Accounts 37 Additional CD Account Disclosures. 37 Early Withdrawal Penalties. 37 Early Withdrawals Without Penalties. 38 Grace Period. 38 Renewals. 38 Additional Deposits. 38 Maturity Date and End of Term. 38 Individual Retirement Accounts (IRA) CONSUMER PRODUCT DESCRIPTIONS Personal Checking 39 Premium Checking. 40 OneAccount Checking. 41 Personal Savings. 42 Green Savings 43 Premium Money Market. 44 Certificate of Deposit. 45

8 I. DEPOSIT ACCOUNT AGREEMENT WELCOME TO ONEWEST BANK, A DIVISION OF CIT BANK, N.A. Banking with OneWest Bank At OneWest Bank, a division of CIT Bank, N.A. ( OneWest ), we deliver friendly, personalized banking services, One Person at a Time. OneWest was founded as a regional bank dedicated to customer service and a commitment to our community. We pride ourselves as a bank with a strong capital foundation, conservative management and a consistent focus on providing value to our customers. Thank you for banking with OneWest Bank. We look forward to serving you. Additional Services to Consider After you open your account, please consider these optional services that can help you manage your account. Debit Card. Use your debit card to pay for purchases at merchants that accept debit cards, to make deposits at OneWest Bank ATMs and to withdraw cash from ATMs. Direct Deposit. Have your paycheck, retirement benefits or other payments deposited electronically into your checking or savings account. Online Banking. Helps you manage your finances. Here are some of the things you can do using our Online Banking: (1) check your account balances and review transaction history; (2) transfer funds between your accounts; (3) receive your statements and paid checks online, then review or print them at your convenience; (4) reorder checks and change your address; and (5) place stop payments on checks you ve written. Online Bill Pay Service. Pay and receive your bills electronically. Mobile Banking. Access your accounts from your mobile phone or other portable device, including the ability to scan and deposit checks remotely (a service known as mobile remote deposit capture ). Automatic Transfer Service. Helps make saving easier by automatically transferring funds from your checking account to your savings account. Overdraft Protection Service. Protects you from overdrafts and from us having to return checks you have written by automatically transferring available funds from your savings account to your checking account. Ways to Access Your Account You can access your account and get information about our accounts and services: At our Branches and at OneWest Bank ATMs. Through our Online Banking at Through our Customer Contact Center at (877-PH-1-WEST). Through our downloadable mobile banking application. You can locate our nearest branch or ATM on our website at or by calling us at

9 YOUR AGREEMENT WITH US Our Agreement This Account Disclosures for Personal Accounts document is designed for use with OneWest Bank s companion disclosures, fee schedules and any applicable product or service addenda (together referred to as the Agreement ). This Agreement explains OneWest Bank s consumer deposit accounts and other related services we make available to you, as well as the terms and fees that govern these accounts and services. By signing and returning the signature card for your account, you confirm that you have received this Agreement, and that you have reviewed, understood and agreed to the terms and conditions, fees and other information contained therein. We may add to, delete or change the terms of this Agreement at any time subject to applicable law. Except as indicated herein, we will inform you of changes that affect your rights and obligations. Throughout this Agreement, the words you, your and yours refer to the account owner or owners. Each person who signs the signature card is an owner of the account opened under this Agreement. We, us, the Bank and our refer to OneWest Bank. This Agreement contains important information about your accounts. You are responsible for ensuring that all authorized signers on your account are familiar with this Agreement. We recommend you retain a copy of this Agreement (and any other notices the Bank provides you regarding changes to this Agreement) for as long as you maintain an account with us. This Agreement does not apply to any accounts you may have with CIT Bank, N.A. s internet bank ( DISPUTE RESOLUTION/ARBITRATION AGREEMENT THIS AGREEMENT INCLUDES OUR INTENT TO ARBITRATE ANY DISPUTES BETWEEN YOU AND THE BANK INSTEAD OF HAVING SUCH DISPUTES RESOLVED THROUGH A COURT TRIAL BEFORE A JUDGE OR JURY. PLEASE READ THE RESOLUTION OF DISPUTES SECTION OF THIS AGREEMENT CAREFULLY. Amendments and Changes in Account Terms We may change (add to, delete or alter) the terms of this Agreement with you at any time without prior notice, unless prior notice is required by law. We will notify you of any such changes by mailing, ing or delivering a notice, a statement message or an amended Agreement to any of you at the last address (location or ) on file for you, your account or the service in question, or by posting the information in our offices, on our website or otherwise making it available to you. FDIC Insurance Funds in your deposit accounts are generally insured up to $250,000 per depositor by the Federal Deposit Insurance Corporation (FDIC). The FDIC provides separate coverage for deposits held in different account ownerships such as: (1) individual or single ownership accounts; (2) joint ownership accounts; (3) revocable trust accounts (including pay-on-death accounts); (4) corporations, partnerships and unincorporated association accounts; and (5) certain individual retirement accounts. To calculate your deposit insurance coverage, use the FDIC s Electronic Deposit Insurance Estimator (EDIE) at For questions about FDIC coverage limits and requirements visit or call toll-free at ASK-FDIC. CIT Bank, N.A. and OneWest Bank, a division of CIT Bank, N.A., are the same FDIC-insured institution. Deposits held under each name are not separately insured, but are combined to determine whether a depositor has exceeded the $250,000 federal deposit insurance limit, per depositor for each account ownership category. For purposes of calculating aggregate deposits held in OneWest Bank, a division of CIT Bank, N.A., you should include deposits held in CIT Bank, N.A. 2 Governing Law This Agreement, and your account(s), are governed by the laws and regulations of the United States and, to the extent applicable, the laws of the State of California, without regard to conflict of law principles. If state and federal law are inconsistent, or if state law is preempted by federal

10 law, federal law governs. Unless otherwise provided in this Agreement, your accounts and services will be subject to applicable clearinghouse, Federal Reserve Bank and correspondent bank rules. You agree that we do not have to notify you of a change in those rules, except to the extent required by law. Consent to Receive Telephone Calls/Text & SMS Messages When you provide us with your residential, business or mobile phone number you are deemed to have expressly consented to receiving telephone calls and text or SMS messages to such numbers. You also consent to receipt of such calls or messages made by us using an auto dialer and/or prerecorded or artificial voice messages to you to provide banking services. INFORMATION ABOUT YOU AND YOUR ACCOUNTS WITH US Customer Identification Program IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify and record information that identifies each person opening an account. In some cases we may also be required to ascertain the identity of the beneficial owners of certain accounts. When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you or the beneficial owners of the account. We will also ask to see your driver s license and/or other identifying documents. In those instances where we are unable to complete identity verification using information from a third-party, we may at our discretion: (1) request that you provide acceptable additional documentation or information and (2) block deposit and withdrawal activity on the account until such time as the identity verification has been satisfactorily completed. In those instances where identity verification is not satisfactorily completed within a reasonable period of time after account opening and/or our notification to you of the same, we may, at our option, close the account and mail the proceeds to you in the form of a bank check. Credit Verification By opening an account with the Bank, by agreeing to be an owner or signer on an account or obtaining any other service from us, you (and, if acting in a representative capacity, individually and for such entity or principal) agree that we may obtain account experience information or credit information about you from consumer or credit reporting agencies and/or by any other means where permitted by law. We may do so at the time you open the account, at any time while your account is open, or after your account is closed if you owe us any amounts related to your account. If you do not handle your account in a satisfactory manner and/or it is necessary for us to charge off your account as a loss, we will report such negative information to check or credit reporting agencies. Telephone and Monitoring We may randomly monitor (and may also record) customer service telephone conversations and electronic communications to ensure that you receive courteous and efficient service. When you, or anyone you authorize, communicate with us, you agree that your call or may be monitored and/or recorded without further notice to you. ACCOUNT OWNERSHIP Some General Information When you open an account with us, we may rely on information you give us and we maintain in our records. From this information we determine the type and ownership of the account opened. If you ask us to make a change to this information or any change to your account, and we agree to the change, the change will not be effective until we have had a reasonable period of time to 3

11 act on the new information. For example, if you ask us to change one or more signers on your account, the request will not be effective until we have had enough time to review your request and act on it. If we ask you to give us additional documents or information, and you do not do so promptly, we may close your account. When we accept a deposit to an account or permit a withdrawal, we may rely upon the current ownership of the account, the information currently in our records, and the terms of this Agreement at the time we process the transaction. We are not obligated to inquire about the source or ownership of any funds we receive for deposit or about the use of funds withdrawn. When we permit a withdrawal from an account at the request of any signer (or the agent of any signer, as applicable), in accordance with the Agreement, the withdrawal is a release and discharge of the Bank from all claims regarding the withdrawal. If you open an account in the names of two or more individuals, and we later determine that one or more of them have not completed our account opening documents (or provided us with certain requested information), you agree to hold us harmless for our reliance on your initial instructions. We may in our discretion either: (1) treat the account as being owned by all persons in whose names the account was opened or (2) treat the account as being owned solely by the persons who have completed our account opening documents. If we treat the account as owned by all persons in whose names the account was opened, we may permit any non-signing person to withdraw funds from the account or take any other action without any liability to you. We may require you at any time to close the account in order to remove a co-owner, terminate joint ownership or change a payable-on-death (POD) or trust designation. Transfer/Assignment All accounts are nontransferable except upon the books and records of the Bank. We may require surrender of the evidence of account. You may not grant, transfer or assign any of your rights to any account without prior written consent of the Bank. We are not required to accept or recognize an attempted assignment of your account or any interest in it. Personal Accounts in General Accounts such as individual, joint account (with or without right of survivorship), payable-ondeath (POD), etc. are intended for personal, family or household purposes and may not be used for business or commercial purposes. If personal accounts are being used for business or commercial purposes, we reserve the right to either close the account or request that you present business documentation to substantiate the existence of the business and change the account to an appropriate business account type. Payable-on-Death (POD) and Totten Trust Accounts (ITF) Payable-on-death and Totten Trust accounts are accounts which are payable on request to one or more depositors during their lifetimes and, upon the death of the last depositor, to one or more designated beneficiaries or payees. If there is more than one surviving beneficiary or payee, each will receive an equal share of the account unless the signature card provides differently. We may require joint instructions of, or payments to, all beneficiaries or payees. GENERAL INFORMATION ABOUT TYPES OF ACCOUNTS Checking, Savings and Money Market Products Offered We offer a range of checking (both variable rate interest bearing and non-interest bearing), variable rate savings and money market accounts (with limited check writing) that will suit the banking needs of consumers. Please refer to the Consumer Products section for account details and eligibility. For our current rates, please visit or stop by one our branches. Checking Subaccounts The following applies to all checking accounts. For regulatory reporting and reserve purposes, we divide checking accounts into two subaccounts: a checking subaccount and a savings subaccount. If your checking account earns interest, we will pay the same interest rate on both subaccounts. If it does not earn interest, no interest will be paid on either subaccount. 4

12 In either case, your account will continue to operate, from your perspective, as one account. We may establish a threshold for the balance maintained in the checking subaccount and may transfer funds periodically from one subaccount to the other to meet that threshold and cover transactions against your account. Your account statements will not reflect the existence of the subaccounts, and our periodic reallocation of funds between subaccounts will not affect your ability to withdraw funds, the interest rate (if any), fees or other features of your checking account. You agree that we may treat the subaccounts as one and the same account if we receive a levy, subpoena or other legal process regarding either subaccount or your checking account. Certificate of Deposit Products Offered We offer a range of certificate of deposit accounts with a variety of terms. Please refer to the Consumer Products and Fees section for account details and eligibility. For our current rates, please visit or stop by one our branches. PAYMENT OF OVERDRAFTS Maintaining an Available Balance It is your responsibility to make sure that your account contains sufficient available funds at the time a check drawn against your account comes in for payment, and when you make a withdrawal or transfer, authorize a debit card purchase or other debit transaction of any kind. If you are uncertain of your available balance, please contact us, check your account balance at any OneWest ATM, access our Online Banking Service at or use our Mobile Banking App. If you do not have sufficient available funds on deposit in your account to cover a debit transaction, we may return the item unpaid or, in our discretion, authorize and pay the transaction creating an overdraft. Payments of Overdrafts We are not obligated to pay any item presented for payment against your account if your account does not have sufficient available funds. If we pay a transaction by overdrawing your account, we are not obligated to continue paying such transactions and creating or increasing overdrafts in the future. We may stop paying checks and other items which create overdrafts at once without notice to you. You are liable to us to repay immediately any overdrafts on your account whether you created them or not. If you do not pay us, and we take collection action against you, you agree to pay for any costs of collection. We may terminate, without notice, any account with excessive insufficient funds activity, and report the account to a consumer-reporting agency. Fees Associated with Overdrafts There are fees associated with each transaction that we either pay, which results in an overdraft, or do not pay (and return unpaid) which would have resulted in an overdraft had we paid it (usually due to insufficient or unavailable funds). Such fees may apply to overdraft transactions created by check, recurring debit card transactions, automated clearing house (ACH) debit and by certain other electronic means as permitted by law. We will not charge a fee on overdraft transactions that we pay that are created by one-time debit card transactions or ATM transactions. No more than four (4) overdrafts fees (due to insufficient or unavailable funds) per account will be charged in any one day. Overdraft fees will not be charged on overdrafts less than $5.00. Refer to the Consumer Fee Schedule for additional overdraft fee information. Overdraft Protection The Bank offers the following overdraft protection service: Savings Overdraft Transfer Service - With this service, you authorize the Bank to make transfers of available funds automatically from your savings or money market account to cover overdrafts in your checking account. Transfers from your savings or money market account are made in the exact amount of the overdraft. Each transfer counts as one of the six (6) limited transactions you are allowed each month from your savings or money market account. Please refer to the Savings and Money Market Accounts are Limited Transaction Accounts paragraph for further details. You must enroll into this service. Refer to the Consumer Fee Schedule for any fees associated with this service. 5

13 ABOUT OUR POSTING ORDER General Posting Order We ordinarily post items within certain debit categories from the lowest to highest dollar amount, regardless of the order in which they occur or we receive them. Refer to Credit and Debit Categories for Posting below for more information. Credit and Debit Categories for Posting We may establish, at our discretion, different categories of debits and credits, and then determine posting orders within each category. A category may include more than one type of debit or credit. Debit categories may include checks, debit card purchases, withdrawals (in-person, via ATM, preauthorized and online), payments and various fees. Credits that may be included in a credit category for posting may include teller deposits, direct deposits and other types of credits. For example, we may treat ATM withdrawals and debit card purchases as one category, and on-us checks as another category, and then post ATM withdrawals and debit card purchases before we process and post checks. We may change categories and orders within categories at any time without notice. We may change our posting order at any time without notice to you. We may give preference to debits payable to us. On your account statement we do not necessarily report debits and credits in the order that we posted them to your account. Determination of Posting Order We do not post credits and debits to your account in the order in which they occur or we receive them. Sometimes they are not posted to your account on the same day that they occur. For example, when you write a check or use your debit card to make a purchase, the merchant or the person or business from whom you made the purchase may not present the check or debit charge to us for payment until several days later. We may treat credits and debits to your account which we receive on any day as if we received all of them at the end of that day and post them in the order we determine. Posting Order and Overdraft Fees Some posting orders may result in more overdraft items and returned items fees than other posting orders. We may choose our processing and posting orders regardless of whether additional fees may result. You can avoid overdraft fees by making sure that your account always contains sufficient available funds to cover all of your withdrawals and debits. You may also want to consider our Savings Overdraft Transfer Service as a possible way to avoid certain overdraft fees. See the Overdraft Protection section for additional information. DEPOSITS AND COLLECTIONS Accepting Items for Deposit We may accept items for deposit, accept items for collection only, refuse items for deposit or return all or part of any deposit. If we accept checks or other items for deposit to your account or cash them, you are responsible for the checks and other items if there is a subsequent problem with them. We may accept a check or other item for deposit to your account from anyone. We do not have to question the authority of the person making the deposit. We may refuse to accept for deposit to your account items payable to another person. If we cash a check or other item for you or deposit it to your account and it is not paid for any reason, we will charge your account for the amount of the check or other item, even if this causes your account to become overdrawn. 6

14 All deposits are subject to our subsequent verification and adjustment, even if you have already withdrawn all or part of the deposit. If we accept checks or other items for deposit or collection, we act only as your collection agent and assume no responsibility beyond ordinary care. We are not responsible for errors and delays made by other institutions in the collection process. When you send us deposits by mail, we treat them as received at the time we receive actual delivery of the deposit. If you place deposits in our night depository, we treat them as received when we remove the deposits from the depository. If you give us cash that we later determine to be counterfeit, we will charge your account for the amount we determine to be counterfeit. You will not knowingly deposit items into your account that do not have either a true original signature of the person on whose account it is drawn or an authorized reproduction of that person s signature. Verification and Collection We may deduct funds from your account if an item is lost, stolen or destroyed in the collection process, if it is returned to us unpaid or if it was improperly paid, even if this causes your account to become overdrawn. Items Sent for Collection We and other institutions may refuse to accept a check or other item for deposit or may accept it on a collection basis only. This often occurs with foreign, questionable or damaged items. If we accept an item for collection, we will send it to the institution upon which it is drawn, but will not credit your account for the amount until we receive the funds from the other institution. If we elect to credit your account before then, we may charge the amount back against your account if we do not receive payment for any reason even if this causes your account to be overdrawn. We may impose a fee in connection with sending and receiving items for collection (e.g., by charging your account or deducting the fee from the amount remitted). Other institutions that send or receive items for collection involving your account also may impose a fee for their services. Lost Items We act only as your collection agent when receiving items for deposit or encashment. You should be aware that we reserve the right to reverse the credit for any deposited item or charge your account for cashed items should they become lost, mutilated, or destroyed while in the process of collection. If we do not reverse a credit, you agree to assist us in collecting the amount of any lost items by providing us with such information and other assistance as we request. We may charge your account when a photocopy or other substitute for a check you have written is presented to us for payment in place of a lost original, unless a stop payment order is in effect for the check. Remotely Created Checks and Demand Drafts If you provide your account number to a third party in order to charge your account by means of one or more remotely created checks or demand drafts (i.e., items which do not bear your actual signature, but purport to be drawn with your authorization), you authorize us to pay such items, even though they do not contain your signature and may exceed the amount you authorized to be charged. This provision shall not obligate us to honor such items. We may refuse to honor such items without cause or prior notice, even if we have honored similar items previously. You agree to indemnify, defend and hold us harmless from every loss, expense and liability related to a claim that such items were not authorized (e.g., as to their amount and payee) by you. You may not deposit remotely created checks or demand drafts to an account with us without our prior, express written consent. If you do deposit remotely created checks or demand drafts to your account you agree that we may place a hold or otherwise restrict your account, or any other account you hold with us, in an amount we deem necessary should any such item be returned unpaid for any reason or returned to us with a claim that the item was unauthorized. You agree that the amount of funds subject to hold and the duration of such hold shall be determined solely by us in our discretion. 7

15 Delivery of Deposits and Verification You may present deposits to us through various channels including one of our branches, ATMs, night depositories, mail, mobile remote deposit capture or other means that we may make available. We may use the channel and time of delivery to determine when you receive credit for the deposit. If we credit your account for the amount shown on the deposit ticket or other transmittal, the credit is subject to subsequent verification by us and our determination of the deposit amount is final. If you provide an endorsement on an item deposited to your account, such endorsement must adhere to all federal and state law requirements as well as banking industry practice. If we authorize you to use a deposit envelope, you authorize us to open the envelope in your absence and credit the amount indicated on the deposit ticket contained therein to your account subject to subsequent verification of the contents. If you make your deposit through a night depository, you agree to exercise reasonable care in opening, closing and properly securing the depository. If you make a deposit using mobile remote deposit capture, the terms of the Online Banking Agreement will also govern the deposit. Endorsements You authorize the Bank to supply your endorsement on any item that the Bank accepts for collection, payment or deposit to your account. You also authorize the Bank to collect any unendorsed item that is made payable to you without first obtaining your endorsement, provided the item was deposited to your account. The Bank may refuse to pay or cash any item or accept any item for deposit or collection unless it is able to verify to its satisfaction that all of the necessary endorsements are present on the item. For example, the Bank may require that all payees or persons to whom the item is endorsed be present at the time that an item is presented to the Bank for payment, encashment, deposit or collection. If you issue or deposit a check that contains a carbon band, printing, endorsements or other material on the back of the check outside the area extending 1½ inches from the trailing edge of the check, that material could also interfere with endorsements by other banks and cause delays in returning the check. Therefore, you agree that the Bank shall not be liable to you for, and you will indemnify and hold the Bank harmless from any and all claims, loss, costs and expenses (including reasonable attorneys fees and the costs of litigation) that the Bank or you may incur as a result of the late return of a check caused by carbon band, printing, endorsements or other material on the back of any check drawn on or deposited to your account that extend outside the area extending 1 1 / 2 inches from the trailing edge of the check. The trailing edge is defined as the left side of the check when viewing it from the front. Identifying Your Account for Deposits You are responsible for correctly identifying the account to which you want funds deposited or payments made. We may credit a deposit to an account based solely on the account number listed on the deposit slip or other instruction to credit an account, even if the name on the deposit slip or other instruction differs from the name on the account. You are responsible for any cost, loss or damage caused by your failure to properly identify the account to which a deposit is to be made. Correction of Deposit Errors When we receive your deposits, we may provisionally credit your account for the amount indicated on the deposit slip or other transmittal, subject to later verification by us. You must ensure that the amount indicated on the deposit ticket or other transmittal is correct even if you did not prepare the instruction. If we later determine that the amount indicated on the deposit ticket or other transmittal is incorrect, we may make the appropriate debit or credit adjustment to your account. However, if in our determination the error on the deposit ticket or other transmittal was inadvertent and is less than our standard adjustment amount, we will not adjust the amount of deposit to your account unless you notify us of the error within one year of the date of your periodic statement that shows the deposit. After this notification period has expired and you have not brought any error to our attention, the deposit amount indicated on the statement will be considered final. 8

16 Returned Items/Transactions If we are notified that an item you cashed or deposited is being returned unpaid, we may attempt to re-clear the item at our discretion, place a hold on the funds in question (refer to the Funds Availability Policy section) or charge your account for the amount (and any interest earned on it), whether or not the return or notice of non-payment is proper or timely. This also applies to checks drawn on us which are not paid for any reason, and to checks that are returned to us in accordance with any law, regulation or rule (including a clearinghouse rule). We may assess a fee for each returned item and notify you of the return orally, electronically or in writing. If we receive an affidavit or a declaration under penalty of perjury stating that an endorsement on an item deposited to your account is forged, that the item contains an alteration or that there has been a breach of warranty in connection with the item, we may charge the item back against your account or place a hold on the funds pending an investigation, without prior notice to you. Depositing or Cashing Substitute Checks You agree that you will not, without our prior permission, cash or deposit substitute checks as defined by federal law or Image Replacement Documents ( IRDs ) that purport to be substitute checks and have not been previously endorsed by a bank. If you cash or deposit such an item, you give us the same warranties and indemnities that we would give under applicable law as a reconverting bank. You further agree to reimburse us for losses, costs, damages and attorneys fees we may incur as a result of such action. If you provide us with an electronic representation of a substitute check for deposit into your account instead of an original check, you agree to reimburse us for all losses, costs and damages we incur because the resulting substitute check (from the electronic representation) does not meet the requirements for legal equivalence or causes duplicate payments. FUNDS AVAILABILITY POLICY Your Ability to Withdraw Funds Our policy is generally to make funds from your check deposits with us available to you on the first business day we are open after the day we receive your deposit. Once the funds are available, you can withdraw the funds in cash and we will use the funds to pay checks you have written. Cash and incoming wire transfers will be available on the day we receive the deposit. For determining the availability of your deposits, every day is a business day, except Saturday, Sunday and Federal holidays. If we receive your deposit at one of our branches on a day other than a business day or on a day we are not open, the deposit will be considered received on the next business day. If you make a deposit at one of our automated teller machines (ATM) or via mobile remote deposit capture before 3:00 PM on a business day we are open, we will consider that the day of deposit. If you make a deposit at one of our night depositories before 8:00 AM on a business day we are open, we will consider that the day of deposit. Deposits made after these times will be considered received on the next business day. Times may vary slightly by location and will be posted on affected ATMs and night depositories. Cash deposits at our ATMs will be available on the next business day following the day we receive the deposit. Longer Delays May Apply In some cases, we will not make all of the funds that you deposit by check available to you the next business day after we receive your deposit. Funds you deposit by check may be delayed for a longer period of time under certain circumstances, including the following: We believe a check you deposit will not be paid. You deposit checks totaling more than $5,000 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 computer or communications equipment. 9

17 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 date of your deposit. If we decide to take this action after you have left the premises, we will mail you the notice by the following business day after we receive your deposit. If you will need the funds from a deposit right away, you should ask us when the funds will also be available. Special Rules for New Accounts If you are a new client, the following special rules apply during the first 30 calendar days that your account is open. Funds from cash and wire transfers to your account will be available on the day we receive the deposit. 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 checks must be payable to you. The excess over $5,000 will be available on the seventh 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 (2nd) business day after the day of your deposit. Funds from all other check deposits will be available on the seventh business day after the day of your deposit. Deposits Made Via Automated Clearing House Transactions For funds deposited by an Automated Clearing House (ACH) transaction you initiate with OneWest Bank (where the funds come from your account at another bank for deposit to your OneWest Bank account), we may place a hold on such deposited funds for a period of 5 business days. Funds Deposited by an ACH transaction you initiate through another US financial institution (where the funds are sent from your account at another bank for deposit to your OneWest Bank account) are credited and available as of the business day OneWest Bank receives the funds from your bank. OneWest Bank reserves the right to place an extended hold on any deposits that are believed to be fraudulent or are suspicious. Holds on Other Funds If we cash a check for you that is drawn on another bank, we may withhold 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. Foreign Items This funds availability policy section does not apply to foreign checks which may be subject to longer holds before funds are available. For additional information see the Foreign Checks and Transactions section. 10

18 WITHDRAWALS AND CHECK CASHING Cashing Checks Payable to You We may occasionally refuse to cash a check payable to you (for example, if we doubt the collectability of a check). If we do cash such a check and it is returned to us unpaid for any reason at any time, we may deduct the amount of the check from your account (including any related fee) even if this causes your account to become overdrawn. We may cash checks payable to any signer on your account when endorsed by any other signer. If you request that we cash a check for you, we may apply the proceeds of the check encashment to any fees, overdrafts and other amounts you owe us. Cashing Your Checks Payable to Others If a person wants to cash your check in one of our branches, we may: require identification satisfactory to us, charge them a fee for cashing the check; and impose additional requirements, such as requiring their fingerprint on the check, verifying the validity of the check with you, and/or posing questions designed to verify the identity of the payee(s) or person(s) to whom the item is endorsed. If the person with your check fails or refuses to satisfy our requirements, we may refuse to cash the check. We are not liable to you for refusing to cash the check or for charging a check-cashing fee. Check Stock You agree to bear the costs, losses and damages as a result of your use of check stock that contains defects, such as printing inaccuracies, faulty magnetic ink, faulty encoding or duplicate check numbers. You also agree to bear the risk of loss if: you elect to have your checks printed by a vendor that has not been approved by us; you use check stock or features (including security features) that cause important data to disappear or be obscured when converted to an electronic image during the check collection and return process; or you write your check in a way that causes critical data to disappear or to be obscured when converted to an electronic image. Converting Checks to Electronic Debits Some businesses convert checks that you give them into electronic debits and then send us the electronic debit for the transaction amount. When we receive the electronic debit, we charge it to your account. We may receive the electronic debit to your account immediately after the business enters the transaction, so you may incur an overdraft fee if you do not have sufficient funds in your account to cover the amount of the check. Since the check is not sent to us, we do not have a copy of your check. We list these electronic debits on your account statement. If the business uses your check to initiate an electronic debit at the point of sale, the business should give you notice of the conversion of the check and return the voided check to you. You should treat the voided check with care because someone else who obtains possession of it could use the information to initiate additional debits against your account. Examining Checks We receive many checks for deposit and encashment each business day. Compliance with expedited funds availability regulations require us to use automated check processing procedures which may not allow us time to examine every check presented. Although we may visually review a sample of checks presented from time to time, reasonable commercial standards do not require us to do so. We may select some checks for review based on certain criteria that we may establish and change at our discretion. Using automated check processing procedures means that most checks are processed on the basis of the MICR (Magnetic Ink Character Recognition) line printed along the bottom edge of the check, and are not individually examined for dates, maker signatures, endorsements, etc. You agree that we will have exercised ordinary care if we examine only those items that we have identified according to the criteria that we may establish at our discretion. 11