Electronic Funds Transfers
Internet Banking uses a secure e-mail system to inform the association
of wire transfers which will be acted on when received and read
by Marblehead Bank personnel. If you send us a correspondence
electronically, we would recommend this means as opposed to conventional,
FUNDS TRANSFER – The terms used in this
section have the meaning given to them in Article 4A of the Uniform
Commercial Code – Funds Transfers (UCC 4A). This section
will generally not apply to you if you are a consumer. However,
even if you are a consumer, this section will apply to that part
of any funds transfer that is conducted by Fedwire. This section
is subject to UCC 4A as adopted in the state of Massachusetts.
This agreement is also subject to all clearinghouse association
rules, rules of the Board of Governors of the Federal Reserve
System and their operating circulars. If any part of this agreement
is determined to be unenforceable, the rest of the agreement remains
effective. This agreement controls funds transfers unless supplemented
or amended in a separate written agreement signed by us.
Funds transfer – A funds transfer is the
transaction or series of transactions that begin with the originator’s
payment order, made for the purpose of making payment to the beneficiary
of the order. A funds transfer is completed by the acceptance
by the beneficiary’s bank of a payment order for the benefit
of the beneficiary of the originator’s order. Generally,
a funds transfer does not include any transaction if any part
of the transfer is covered by the Electronic Fund Transfer Act
of 1978, as amended from time to time. You may give us a payment
order in writing, but your order cannot state any condition to
payment to the beneficiary other than the time of payment.
Authorized account – An authorized account
is a deposit account you have with us that you have designated
as a source of payment of payment orders you issue to us. If you
have not designated an authorized account, any account you have
with us is an authorized account to the extent that payment of
the payment order is not inconsistent with the use of the account.
Acceptance of your payment order – We
are not obligated to accept any payment order that you give us,
although we normally will accept your payment order if you have
a withdrawable credit in an authorized account sufficient to cover
the order. If we do not execute your payment order, but give you
notice of our rejection of your payment order after the execution
date or give you no notice, we are not liable to pay you as restitution
any interest on a withdrawable credit in a non-interest-bearing
Cutoff time – If we do not receive your
payment order or communication canceling or amending a payment
order before our cutoff time on a funds transfer day for that
type of order or communication, the order or communication will
be deemed to be received at the opening of our next funds transfer
Payment of your order – If we accept a
payment order you give us, we may receive payment by automatically
deducting from any authorized account the amount of the payment
order plus the amount of any expenses and charges for our services
in execution of your payment order. We are entitled to payment
on the payment or execution date. Unless your payment order specifies
otherwise, the payment or execution date is the funds transfer
date we receive the payment order. The funds transfer is completed
upon acceptance by the beneficiary’s bank. Your obligation
to pay your payment order is excused if the funds transfer is
not completed, but you are still responsible to pay us any expenses
and charges for our services. However, if you told us to route
the funds transfer through an intermediate bank, and we are unable
to obtain a refund because the intermediate bank that you designated
has suspended payments, then you are still obligated to pay us
for the payment order. You will not be entitled to interest on
any refund you receive because the beneficiary’s bank does
not accept the payment order.
Security procedure – As described more
fully in a separate writing, the authenticity of a payment order
or communication canceling or amending a payment order issued
in your name as sender may be verified by a security procedure.
You affirm that you have no circumstances which are relevant to
the determination of a commercially reasonable security procedure
unless those circumstances are expressly contained in a separate
writing signed by us. You may choose from one or more security
procedures that we have developed, or you may develop your own
security procedure if it is acceptable to us. If you refuse a
commercially reasonable security procedure that we have offered
you, you agree that you will be bound by any payment order issued
in your name, whether or not authorized, that we accept in good
faith and in compliance with the security procedure you have chosen.
Duty to report unauthorized or erroneous payment – You must exercise ordinary care to determine that all
payment orders or amendments to payment orders that we accept
that are issued in your name are authorized, enforceable, in the
correct amount, to the correct beneficiary, and not otherwise
erroneous. If you discover (or with reasonable care should have
discovered) an unauthorized, unenforceable, or erroneously executed
payment order or amendment, you must exercise ordinary care to
notify us of the relevant facts. The time you have to notify us
will depend on the circumstances, but that time will not in any
circumstance exceed 14 days from when you are notified of our
acceptance or execution of the payment order or amendment or that
your account was debited with respect to the order or amendment.
If you do not provide us with timely notice you will not be entitled
to interest on any refundable amount. If we can prove that you
failed to perform either of these duties with respect to an erroneous
payment and that we incurred a loss as a result of the failure,
you are liable to us for the amount of the loss not exceeding
the amount of your order.
Identifying number – If your payment order
identifies an intermediate bank, beneficiary bank, or beneficiary
by name and number, we and every receiving or beneficiary bank
may rely upon the identifying number rather than the name to make
payment, even if the number identifies an intermediate bank or
person different than the bank or beneficiary identified by name.
Neither we nor any receiving or beneficiary bank have any responsibility
to determine whether the name and identifying number refer to
the same financial institution or person.
Record of oral or telephone orders –You
agree that we may, if we choose, record any oral or telephone
payment order or communication of amendment or cancellation.
Notice of credit – If we receive a payment
order to credit an account you have with us, we are not required
to provide you with any notice of the payment order or the credit.
Provisional credit – You agree to be bound
by the automated clearing house association operating rules that
provide that payments made to you or originated by you by funds
transfer through the automated clearing house system are provisional
until final settlement is made through a Federal Reserve Bank
or otherwise payment is made as provided in Article 4A-403(a)
of the Uniform Commercial Code.
Refund of credit – You agree that if we
do not receive payment of an amount credited to your account,
we are entitled to refund from you in the amount credited and
the party originating such payment will not be considered to have
paid the amount so credited.
Amendment of funds transfer agreement –
From time to time we may amend any term of this agreement by giving
you reasonable notice in writing. We may give notice to anyone
who is authorized to send payment orders to us in your name, or
to anyone who is authorized to accept service.
Cancellation or amendment of payment order –
You may cancel or amend a payment order you give us only if we
receive the communication of cancellation or amendment before
our cutoff time and in time to have a reasonable opportunity to
act on it before we accept the payment order. The communication
of cancellation or amendment must be presented in conformity with
the same security procedure that has been agreed to for payment
Intermediaries – We are not liable for
the actions of any intermediary, regardless of whether or not
we selected the intermediary. We are not responsible for acts
of God, outside agencies, or nonsalaried agents.
Limit on liability – You waive any claim
you may have against us for consequential or special damages,
including loss of profit arising out of a payment order or funds
transfer, unless this waiver is prohibited by law. We are not
responsible for attorney fees you might incur due to erroneous
execution of payment order.
Erroneous execution – If we receive an
order to pay you, and we erroneously pay you more than the amount
of the payment order, we are entitled to recover from you the
amount in excess of the amount of the payment order, regardless
of whether you may have some claim to the excess amount against
the originator of the order.
Objection to payment – If we give you
a notice that reasonably identifies a payment order issued in
your name as sender that we have accepted and received payment
for, you cannot claim that we are not entitled to retain the payment
unless you notify us of your objection to the payment within 60
days of our notice to you.