Online Banking Service Agreement
(Effective January 2014)
I. GENERAL DESCRIPTION OF ONLINE BANKING AND TRANSFERS OUTSIDE FIRST MERCHANTS BANK
A. Welcome to Online Banking
"Access Device" means a personal computer or other device that meets the requirements for use of the Service and by which the Service is accessed by you.
“Agreement” means this agreement setting forth the terms and conditions of using the Service for online banking and transferring funds.
“Bill Pay Service” means an optional service where Payees can present bills through the Service and which can be paid directly from eligible deposit accounts.
“Business Day” means Monday through Friday, except Federal Reserve holidays.
“Business Online Banking Service” means the Service as it applies to business customers and accounts.
"Collected Funds" means your current account balance minus the amount of any checks or other transactions that are in the process of being collected.
"Company ID" means a specific code that is assigned by the Bank to your Company that will be used to obtain access to the Service.
“Administrator” means someone approved by the account owner(s) to add additional users and designate activity limitations
"Due Date" means the date when a payment is due as reflected on a statement provided by Payee. It is not the late date or grace period.
"Financial Software" means the software provided to allow you to access and use the Service.
"Future Dated Transfer" means a funds transfer that will be initiated on a future day depending on your selection of the Transmit Date.
"Future Payment" means a payment, other than a Recurring Payment, that will be initiated on a future business day depending on your selection of the Transmit Date.
“Online ID” means an identification code needed to access the Service.
"Password" means a personal code selected by you that will be used to obtain access to the Service. The term includes any additional numbers and words required by the Financial Software or equipment used, or otherwise established by you.
"Payee" means any person or entity to which you direct a payment through the Service.
“Overnight Check Payment Service” means a feature of the Service whereby you may make a one-time payment from your FMB account to a participating Payee.
"Recurring Payment" means a regular payment that is automatically made during recurring intervals permitted by the Service based on a recurring Transmit Date.
"Same Day Payment" means a payment that will be initiated on the same day that you enter the payment information through the Service.
“Schedule of Fees” means a listing of current fees as published from time to time by FMB and available at www.firstmerchants.com.
“Scheduled Payment Date” means the day you want your Payee to receive your bill payment and is also the day your Primary Service Account will be debited, unless Scheduled Payment Date fall on a day other than a Business Day in which case it will be considered the previous Business Day.
"Service" means the individual and collective online banking services and fund transfer service available in connection with the Financial Software and described herein.
"Service Account" means (i) the primary account(s) designated by you that will be used to initiate online banking services (any such account being referred to herein as a "Primary Service Account"), (ii) all other eligible deposit accounts that are linked to your Primary Service Account, (iii) lines of credit from which funds may be transferred to a Service Account, (iv) investment accounts, such as IRAs which may be funded from a Service Account, and (v) any other account or financial product accessed using the Service. All of these accounts are subject to this Agreement,
"Transmit Date" means, (i) with respect to bill payments, the date on which the payment is to be initiated for remittance to the Payee, (ii) with respect to fund transfers, the date on which the transfer is to be initiated to us for processing.
"User's Guide" means any instructional materials (as amended from time to time) provided with the Service.
"We," "us" and "our" means First Merchants Bank, N.A.
"You," "your" and "yours" means (i) each and every person who now or hereafter is an account holder with respect to the Service Account or has an interest therein; and (ii) each and every person who now or hereafter subscribes to the Service or uses the Service.
Other definitions may appear within the remaining text of this agreement.
B. What this Agreement Covers
C. Eligibility. To be eligible to use the Service, you must maintain an account with FMB.
D. Accepting the Agreement
When you or anyone authorized or permitted by you, use the Service, you agree to abide and be bound by the terms and conditions of this Agreement.
E. Relations to Other Agreements
Your use of the Service may also be affected by the agreements between us and you for each Service Account owned by you. When you link an account to the Service, the agreement governing that account is not changed and remains in full force and effect. This Agreement is only supplemental to the separate agreements governing each account you own. Similarly, if you use the Service to access a credit account you do so under the terms and conditions set forth in the agreement and disclosure provided to you for the credit account. You should review each agreement governing your accounts, including Service Accounts, for any applicable fees, limitations on the number of transactions you can make, and other restrictions that might impact your use of an account within the Service.
II. ONLINE BANKING SERVICES
A. Online Banking for Consumers and Business
1. Make payments to a Payee from your Primary Service Account.
2. Review past or scheduled payments from your Service Accounts.
3. Order transfers of funds among eligible accounts.
4. Order transfers of fund from Service Accounts to certain loan accounts accessible through the Service.
5. Perform balance inquiries with respect to each Service Account accessible through the Service.
6. Review account activity within each Service Account.
7. Communicate directly with us via electronic messaging.
8. Request advances from eligible loan account accessible through online banking to your service account.
9. Perform self-service account maintenance such as re-ordering checks, ordering copies of paid checks, request copy of monthly statements, stopping payments on checks and changing your Online ID and Password.
Additional functionality may be added to the Service. We will notify you when they become available.
B. Bill Pay Service
In addition to the online banking features listed above, FMB customers with eligible deposit accounts may also use the optional Bill Pay Service. A monthly service fee may apply for the use of the Bill Pay Service.
C. Overnight Check Payment Service.
D. Internal Bank Transfers
1. Description. The Service allows you to transfer funds among your eligible Service Accounts held at FMB.
2. Scheduling. Transfers may be scheduled for the same day or for a future date, however, transfers initiated after 6:45 P.M. ET will not process until the following day. A request to transfer funds between Service Accounts may be scheduled for a future date. A Future Dated Transfer may be scheduled as a one-time request or a recurring request. Future Dated Transfers will be initiated on the Transmit Date requested (even if the Transmit Date is not a Business Day), not the date the transfer is scheduled.
You agree that you will have sufficient available funds in the designated deposit account to cover all transfers on the date scheduled. If the account does not have sufficient available funds on the scheduled transfer date, we may elect not to initiate one of more of the transfers. If the transaction is completed, it may cause an overdraft in your account in which case you shall be liable for the overdraft and any overdraft fees (subject to your Regulation E opt-in/opt-out election) as set forth in your Deposit Agreement.
3. Limits. There may be limits on the dollar amount of the transactions you can make using the Service. These limits may change from time to time in accordance with applicable laws and regulations and according to the discretion of FMB.
4. Fees. Additional fees may apply – see Schedule of Fees
E. External Transfers
In addition to the online banking features and services listed above, FMB personal online banking customers (not including sole proprietor or business customers) with eligible deposit accounts may use the Service to transfer funds to accounts outside of FMB.
a. You must be enrolled in personal online banking to make and external transfer
b. Business customers are not eligible for this service
c. You agree that you will have sufficient available funds in the designated deposit account to cover all Outbound Transfers on the date scheduled. If the deposit account does not have sufficient available funds on the scheduled transfer date, we may elect not to initiate one of more of the transfers. If the transaction is completed, it may cause an overdraft in your account in which case you shall be liable for the overdraft and any overdraft fees (subject to your Regulation E opt-in/opt-out election), as set forth in your Deposit Agreement. If the transaction is completed, you agree to pay all related fees, (subject to your Regulation E opt-in/opt-out election), as disclosed in your Deposit Agreement.
2. Scheduling. Transfers can be scheduled on the same day or can be scheduled for a future date; however, for a transfer to occur on the same day it is scheduled, the transfer must be initiated prior to 3:00 P.M. ET. FMB is not responsible for another financial institution to act in a timely manner.
4. Fees. Additional fees may apply – see Schedule of Fees
F. ACH and Wire Transfers
ACH and Wire Transfers for businesses are covered under a separate agreement. ACH transactions for consumers are covered by NACHA rules and can be found at http://www.achrulesonline.org/
G. Online Banking Alerts
We provide Automatic Alerts and voluntary Account Alerts.
1. Automatic Alerts are sent to you following important account activities or when certain changes are made online to your Online Banking account. You do not need to activate these alerts. We automatically activate them for you.
2. Voluntary Account Alerts must be activated by you.
3. Both Automatic Alerts and voluntary Account Alerts are subject to the following.
III. OTHER ONLINE BANKING TERMS AND CONDITIONS
Your use of the Service is subject to the following terms and limitations:
Dollar Amount. There may be limits on the dollar amount of the transactions you can make using the Service. These limits may change from time to time in accordance with applicable laws and regulations and according to the discretion of FMB.
Frequency. There may be limits on the number of transactions you can make using the Service. These limits are for security reasons and may change from time to time in accordance with applicable laws and regulations and according to the discretion of FMB.
Court Directed and Governmental Payments. You acknowledge and agree that if you use the Service to make any payment of alimony, child-support, taxes, or other court-directed or governmental payments, fines, or penalties, or any payment to settle a securities transaction, that WE MAY PROCESS OR REFUSE TO PROCESS ANY SUCH PAYMENTS IN OUR SOLE AND ABSOLUTE DISCRETION, AND, IN ANY EVENT, TO THE FULLEST EXTENT PERMITTED BY LAW, YOU ASSUME ALL RISK RELATING TO THE PROPER SCHEDULING, INITIATION, PROCESSING, TRANSMISSION, RECEIPT, AND APPLICATION OF SUCH PAYMENTS, AND YOU RELEASE US FROM ANY AND ALL CLAIMS, LIABILITIES, AND/OR DAMAGES RESULTING FROM YOUR MAKING OR ATTEMPTING TO MAKE ANY SUCH PAYMENTS THROUGH THE SERVICE, WHETHER SUCH CLAIMS, LIABILITIES AND/OR DAMAGES ARISE (OR WOULD ARISE) UNDER THIS AGREEMENT OR OTHERWISE.
United States Currency Only. You may only make payments through the Service the valid currency of the United States (U.S. Dollars).
Money Market Transaction Limits. Transaction limitations apply to money market accounts. Please refer to your deposit agreement for any transaction limitations related to money market account.
Account Agreements. Funds transferred from Service Accounts to loan accounts accessible through the Service will be applied to such loan accounts according to the terms of the agreements governing such loan accounts. There may be additional limitations elsewhere in this Agreement. Your ability to initiate transactions also may be limited by the terms of your deposit, loan, or other agreements with us or applicable law. You agree to abide by and be bound by all applicable limitations.
a. Internet Access
5. Performing Account Inquiries. You may use the Service to determine the balance and recent activity in the Service Accounts. Any balance or recent activity shown displayed by the Service will include a date as of which the balance is current. The balance or recent activity shown on the Service may include deposits still subject to verification by us. The balance or recent activity shown also may differ from your records because it may not include deposits in progress, outstanding checks, or other withdrawals, payments, or charges.
6. Our Liability for Failure to Complete Transactions. We will process and complete all payments and transfers properly initiated through the Service in accordance with this Agreement and any User's Guide. We will not be liable (and any payment guarantee provided elsewhere in this Agreement will not be applicable), in connection with any of the following occurrences:
a. if, through no fault of ours, you do not have sufficient Collected Funds in the Service Account to complete the transaction;
b. if the transaction would exceed the credit limit on any overdraft line of credit linked to the Service Account;
c. if your Access Device, internet connection method, or other equipment is not operating properly;
d. if the Service is not working properly and you were aware of the malfunction when you initiated the transaction;
e. if you do not properly follow all instructional materials provided in connection with the Service;
f. if you do not authorize a payment within a sufficient period of time for your payment to be received by the Payee by the Due Date (External Transfers Only);
g. if you have not provided us with the correct Payee name, address, account information, payment amount, or other instructions necessary to complete the payment, or the foregoing instructions stored on your Access Device's hard drive or the host system have been lost (External Transfers Only);
h. if a Payee mishandles or delays the handling of payments sent by us (External Transfers Only);
i. if your funds are held or frozen, or a court order or other legal process prevents us from making a transaction;
j. if your Password has been reported lost or stolen;
k. if we have reason to believe that a transaction has not been properly authorized or authenticated, or is fraudulent, erroneous, or illegal;
l. if you have exceeded the limitations on frequency of transactions or dollar amount of transactions applicable to the Service Account;
m. if circumstances beyond our control (such as telecommunication or electrical outages and malfunctions, postal strikes or delays, computer system failures or natural disasters) prevent the transaction;
n. if making a transfer would cause us to violate any law, rule, or regulation to which we are subject; or
o. if any failure on our part was not intentional and resulted from a bona fide error notwithstanding procedures to avoid such error, except for actual damages (which do not include indirect, incidental, special or consequential damages).
There may be other exceptions to liability stated in the agreements governing your accounts with us, or provided under applicable law.
7. Electronic Messaging (E-mail). The Service provides you with the ability to send and receive messages to and from us by two means: (i) Conventional E-mail or (ii) Secure Messaging, (i) Conventional E-mail is not a secure method of communication over the Internet, and we recommend that you do not send confidential or privileged information, such as account numbers and financial information, by conventional E-mail. An electronic message sent by you may not be immediately received by us. (ii) Secure Messaging is a secure method of communication contained within the Service application. Secure Messaging allows secure messages to be sent and received from within the Service application. If you need to contact us immediately, please refer to Section III (17) titled "Errors or Questions." No action will be made on any electronic message you send to us until we actually receive your message and have a reasonable opportunity to act on it. You cannot use Conventional E-mail or Secure Messaging to make a bill payment, account inquiry, or funds transfer. There may be other limitations to your use of electronic messaging in effect from time to time. To the extent you elect to communicate with us using E-mail, the following provisions apply to those communications:
You agree and acknowledge that the information communicated via E-mail to or from us may include information regarding any or all of the services that are part of the Service or other information we feel may be of added interest to you.
If you believe your Password has been lost or stolen or that someone has transferred or may access your Service Account(s) without your authorization, please contact us through the following methods:
You agree to take any reasonable actions requested by us to prevent unauthorized transactions to your Service Account.
Notwithstanding anything to the contrary in this Agreement, you will be liable for any unauthorized use of the Service in these instances unless otherwise provided by applicable law or written agreement with us.
THE FOLLOWING PROVISIONS OF THIS SECTION III(13) APPLY TO CONSUMER ACCOUNTS ONLY AND DO NOT APPLY TO BUSINESS ACCOUNTS
If you do NOT tell us within two (2) business days after you learn of the loss, theft or unauthorized transaction, and we can prove we could have stopped someone from using your Password or the Service without your authorization if you had told us, you could lose as much as $500.00.
Also, if your statement shows a transaction that you did not make or authorize, tell us at once. If you do not tell us within 60 days after the statement was mailed, electronically transmitted, or otherwise made available to you, you may not get back any money you lost after the 60 days if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason (such as a long trip or hospital stay) kept you from telling us, we will extend the time periods as may be reasonable under the circumstances.
a. Tell us your name and the Service Account number.
If you tell us orally, we may require that you send us your complaint or question in writing within ten (10) Business Days. We will determine whether an error occurred within ten (10) Business Days [twenty (20) Business Days for transactions that have occurred within thirty (30) days after the first deposit to the account] after we hear from you and will correct any error promptly. If we require more time, however, we may take up to forty-five (45) days [ninety (90) days for point-of-sale transactions, transactions initiated outside the United States, or transactions that have occurred within 30 days after the first deposit to the account] to investigate your complaint or question. If this additional time is necessary, and your written notification has been received by us, we will credit your account within ten (10) Business Days [twenty (20) Business Days for transactions that have occurred within 30 days after the first deposit to the account] for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within ten (10) Business Days [twenty (20) Business Days for transactions that have occurred within thirty (30) days after the first deposit to the account], we will not credit your account and we will still have up to forty-five (45) days [ninety (90) days for point-of-sale transactions, transactions initiated outside the United States, or transactions that have occurred within thirty (30) days after the first deposit to the account] for our investigation.
19. Creating and Managing Users. You may add additional users to your Online ID and provide each with a separate Password. For each user, you may designate the activity level. You may also designate another user as an “Administrator,” which means that this user will also be able to designate additional users. These additional users may have limitations on the use of the Service.
Should the account owner revoke the authority of any user, the account owner is obligated to inform FMB of that fact. It is also the Account Owner obligation to delete the former user from the Service and add any new users. If additional assistance is need FMB can be contacted at the number provided below. However, the removal of the former user and the addition of new user is the responsibility of the account owner. The required notice must be given separately from any other notices given to other First Merchants Bank departments or banking centers, by calling us at 1.800.205.3464. You may also write us at:
First Merchants Bank Online Banking
20. Linking Accounts of Additional Businesses. If you are authorized to enter into an Agreement for the Business Online Banking Service for multiple businesses, and if you want to link the Service Accounts for one business to the Service Accounts for other businesses entering into this Agreement, you will need to agree separately to this Agreement for each other business entity. Upon doing so, you may link the Service Accounts of more than one business, and use a common Online ID and password. By linking the Service Accounts of multiple businesses, you are certifying that you are properly authorized to link the Service Accounts of the different businesses and to use all the functions of Business Online Banking Service for each business. The account owner further agrees to inform FMB if anyone’s authority over any linked account diminishes or ceases in any way. Until FMB is informed of a change to your authority, FMB is not liable in any manner whatsoever for any damages suffered by you, the businesses, or any third party. If your authority over any account diminishes or ceases until it is informed of the change in authority (such notice must be given by contacting FMB through the means provided in Section III(17). (Check this reference)
32. Applicable Law. Regardless of where you live or work or where you access the Service, this Agreement, any enrollment form, and your deposit relationship with us will be governed by the substantive laws (excluding laws of conflict) and regulations of the United States and the State of Indiana, including without limitation, the Indiana Uniform Commercial Code.
33. Venue. Any proceeding for the enforcement of this Agreement or any provision thereof shall be instituted only in the courts of Delaware County, Indiana.
34. No Unilateral Alterations to This Agreement or Any Enrollment Form by You. Neither this Agreement nor any enrollment form may in any way be altered by you without our expressed written agreement. Any attempt by you to alter either this Agreement or any enrollment form without our express written agreement shall be void and shall have no legal effect. You hereby agree to indemnify and hold us harmless from and against any and all claims, losses, liabilities, penalties’, expenses and punitive and other damages (including without limitation reasonable attorneys’ fees) directly or indirectly resulting from, relating to or arising in connection with any successful or unsuccessful attempt by you to alter either this Agreement or any enrollment form without our express written agreement.
35. Area of Service. The Service and any application for deposit or other services at our Web site are solely offered to the citizens and residents of the United States of America (USA) and may not be accessed while outside the USA.
36. Construction of Defined Terms. As appropriate, the singular number shall include the plural and the plural shall include the singular.
37. Headings. The headings used in this Agreement are for convenience only and shall not be held to limit or affect the terms of this Agreement.
THE UNDERSIGNED AGREES TO THE TERMS STATED ON THIS ONLINE BANKING SERVICE AGREEMENT AND ADDENDA, INCLUDING, BUT NOT LIMITED TO, THE ARBITRATION AND WAIVER OF JURY TRIAL CLAUSE AS OF TIME OF SUBMISSION AND ACKNOWLEDGES RECEIPT OF THIS AGREEMENT.