PURPOSE OF THIS DISCLOSURE. Our general policy is to allow you to withdraw funds deposited in an account on the first Business Day after the day of deposit. Funds from electronic direct deposits will be available on the day we receive the deposit. In some cases, we may delay your ability to withdraw funds beyond the first Business Day after the day of deposit. Our complete policy is summarized below.

For purposes of this disclosure, the terms “you”/”your” refer to the customer and the terms “our”/”we”/”us” refer to The Village Bank. The term “account” includes any demand deposit, negotiable withdrawal order account, savings deposit or other asset account.

DETERMINING THE AVAILABILITY OF YOUR DEPOSIT. The length of the delay varies depending on the type of deposit and is explained below. When we delay your ability to withdraw funds from a deposit, you may not withdraw the funds in cash, and we will not pay checks you have written on your account by using these funds. Even after we have made funds available to you and you have withdrawn the funds, you are still responsible for checks you deposit that are returned to us unpaid and for any other problems involving your deposit.

When we delay your ability to withdraw funds, the length of the delay is counted in Business Days from the day of your deposit. The term “Business Day” means any day other than a Saturday, Sunday or federally declared legal holiday, and the term “Banking Day” means that part of any Business Day on which we are open to the public for carrying on substantially all of our banking functions.

If you make a deposit before the close of business on a Business Day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit after the close of business or on a day that we are not open, we will consider the deposit made on the next Business Day we are open.

 

AVAILABILITY SCHEDULE

Same Day Availability. Funds from deposits of:

• electronic direct deposits
• cash*
• wire transfers
• U.S. Treasury checks**
• U.S. Postal Service money orders**
• Federal Reserve Bank or Federal Home Loan Bank checks**
• State or Local Government checks**
• Cashier’s, Certified, or Teller’s checks**
• checks drawn on us

will be available on the day of deposit.

 

Other Check Deposits. Funds from all other check deposits will be available on the first Business Day after the day of your deposit.

*Cash Deposits. If the cash deposits are made in person to an employee of The Village Bank, then the funds will be made available on the day we receive your deposit. If they are not made in person to an employee, then the funds will be made available no later than the next Business

Day after the day of your deposit.

**Check Deposits. Check deposits include U.S. Treasury checks; U.S. Postal Service money orders; Federal Reserve Bank or Federal Home Loan Bank checks; State or Local Government checks; and Cashier’s, Certified, or Teller’s Checks. In order for these check deposits to be made

available according to the funds availability schedule above, the checks must be made payable to you and deposited into your account. If any of these conditions are not satisfied, then the funds from these check deposits will be made available no later than the second Business Day after the day of your deposit.

 

LONGER DELAYS MAY APPLY. Funds you deposit by check may be delayed for a longer period under the following circumstances:

 

(a)        if we believe a check you deposit will not be paid;

(b)       if you deposit checks totaling more than $5,525 on any one day;

( c)       if you redeposit a check that has been returned unpaid;

( d)       if you have overdrawn your account repeatedly in the last six months; or

( e)       if an emergency condition arises that would not enable us to make the funds available to you, such as the 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 sixth Business Day after the day of your deposit. If you will need the funds from a deposit right away, you should ask us when the funds will be available.

HOLDS ON OTHER FUNDS FOR CHECK CASHING. If we cash a check for you that is drawn on another financial institution, 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.

HOLDS ON OTHER FUNDS IN ANOTHER ACCOUNT. If we accept for deposit a check that is drawn on another financial institution, 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.

 

SPECIAL RULES FOR NEW ACCOUNTS. If you are a new customer, the following special rules may apply during the first 30 days your account is open.

Same Day Availability. Funds from cash*, wire transfers, and electronic direct deposits made to your account will be available on the day we receive the deposit.

Next Day Availability. Funds from the first $5,525 of a day’s total deposits of:

• U.S. Treasury checks**
• U.S. Postal Service money orders**
• Federal Reserve Bank or Federal Home Loan Bank checks**
• State or Local Government checks**
• Cashier’s, Certified, or Teller’s checks**
• Traveler’s Checks**
• checks drawn on us

are available on the first Business Day after the day of your deposit.

 

Funds Exceeding $5,525. The excess over $5,525 of a day’s total check deposits will be available on the sixth Business Day after the day of your deposit.

Other Check Deposits. Funds from all other check deposits will be available on the sixth Business Day after the day of deposit.

*Cash Deposits. If the cash deposits are made in person to an employee of The Village Bank, then the funds will be made available on the day we receive your deposit. If the deposits are not made in person to an employee, then the funds will be made available no later than the second Business Day after the day of your deposit.

** Check Deposits. Check deposits include U.S. Treasury checks; U.S. Postal Service money orders; Federal Reserve Bank or Federal Home Loan Bank checks; State or Local Government checks; Cashier’s, Certified, or Teller’s Checks; and Traveler’s checks. In order for these check

deposits to be made available according to the funds availability schedule above, the checks must be made payable to you and deposited into your account. If any of these conditions are not satisfied, then the first $5,525 of the day’s total check deposits will be made available no later than the second Business Day after the day of your deposit.

FOREIGN CHECKS. Checks drawn on financial institutions outside of the U.S. (foreign checks) cannot be processed the same as checks drawn on U.S. financial institutions. Foreign checks are exempt from the policies outlined in this disclosure. Generally, the availability of funds from deposits of foreign checks will be delayed for the time it takes us to collect the funds from the financial institutions upon which they are drawn.

DEPOSITS AT AUTOMATED TELLER MACHINES. If you make a deposit at an automated teller machine (ATM) that is owned and operated by us before 6:00 P.M. on a Business Day that we are open, we will consider the deposit made that day. However, if you make a deposit at an ATM that is owned and operated by us after 6:00 P.M. or on a day that we are not open, we will consider the deposit made on the next Business Day we are open.

ADDITIONAL ATM INFORMATION. Deposits made via an ATM will be available the 2nd business day after the deposit is made.

ADDITIONAL DEPOSIT INFORMATION. WHEN FUNDS ARE CONSIDERED DEPOSITED:

Staffed Facilities:

Funds received at a staffed teller station are considered deposited when received by the teller.

Mail:

Funds mailed to the Bank are considered deposited on the banking day they are received by the Bank.

Night Depository:

A night depository is a receptacle for the receipt of deposits typically used by corporate depositors when the branch is closed. Funds deposited at a night depository are considered deposited on the banking day the deposit is removed, and the contents of the deposit are accessible to the Bank for processing.

 

REMOTELY CREATED CHECKS

A remotely created check means a check that is not created by the paying bank and that does not bear a signature applied or purported to be applied, by the person on whose account the check is drawn. “Remotely created checks” are created when the holder of a checking account authorized a payee to draw a check on that account but does not actually sign the check. A bank that presents a remotely created check and receives settlement warrants to the paying bank that the person on whose account the remotely created check is drawn authorized the issuance of the check in the amount stated on the check and to the payee stated on the check. If the Bank accepts a remotely created check, you indemnify The Village Bank from losses related to unauthorized remotely created checks.

The Village Bank
320 Needham Street, Suite 200
Newton, Massachusetts 02464
(617) 969-4300
www.village-bank.com