POLICY FOR ACCEPTING
OR RETAINING FUNDS ON DEPOSIT
The Board of Directors hereby directs all officers and employees of
the Association to abide by this policy governing the acceptance or
retention of funds in deposit accounts at the Association. This policy
supercedes the Association's existing policy on accepting deposits.
1.) General Policy.
The Association is a community-based financial institution and, therefore,
shall not accept deposits nor generally retain deposits owned by persons
not residing or located in the Association's normal geographic service
area of Belmont, Carroll, Guernsey, Harrison, Jefferson and Tuscarawas
counties, Ohio (the "NGSA"), as described in this policy.
In addition, in order to avoid fraud and to comply with applicable laws
and regulations, it is the policy of the Association to obtain proper
identifying information, including TIN's in accordance with regulations
of the Internal Revenue Service, from all persons opening new deposit
of Funds. The Association shall not accept any funds offered for
deposit that are not offered in compliance with this policy. Any funds
so received shall be returned as soon as practicable.
from Individuals. The Association shall not accept any deposits
from an individual who does not reside within the NGSA or who does not
provide a picture ID and TIN. (The parents of a minor opening an account
may provide a picture ID in lieu of the minor doing so.) An individual
must provide physical evidence of residence, which can include the picture
ID or a utility or tax bill for residence.
from Corporations Partnerships, Other Business Entities and NonBusiness
Entities or Associations ("Entities"). The Association
cannot accept any deposits from an Entity that is not headquartered
in, does not have an office in or is not conducting established business
or operations in the NGSA. Only the President or Vice-President-Operations/Treasurer
may determine what constitutes "conducting established business
or operations" in the NGSA. All Entities must provide a TIN for
the account, as required by regulations of the Internal Revenue Service,
and a corporate resolution or other evidence of appropriate authority
to open, maintain and make withdrawals from the account.
5.) Special Exemption
to the NGSA Requirement for Individuals. Any officer of the Association
may authorize the acceptance of funds for deposit from an individual
who does not currently reside in the NGSA if he or she:
a) is military
service personnel from the NGSA currently stationed outside the NGSA;
b) was a resident
of the NGSA who has retired and moved outside the NGSA and had a deposit
relationship with the Association when he or she moved;
c) has an outstanding
loan from the Association, or
d) is a full-time
student at a school outside the NGSA with at least one parent residing
in the NGSA.
In addition, the
President or the Vice President/Treasurer may establish exceptions on
a case-by-case based on another significant connection to the NGSA or
the Association and shall maintain a written record of those exceptions.
of Deposits. The Association shall redeem any deposit accounts that
are not in compliance with this policy to the extent permitted by law,
governing documents of the Association and the terms of the deposit
contract. Any term deposits that are contrary to this policy and due
to mature shall be redeemed at maturity.
The Board of Directors
hereby designates accounts not meeting the requirements of this policy
as accounts subject to redemption , unless such redemption is deemed
not to be authorized by law or deemed by management inappropriate under
the circumstances. Management shall review accounts at least annually
to determine if any redemption, should be made.
Any account opened
based on false or incorrect information provided by the account holder
or through the use of a "straw" depositor on behalf of an
ineligible account holder under this policy are not to be considered
accepted as a deposit by the Association and shall be immediately redeemed
upon discovery of the false or incorrect information or existence of
the "straw" depositor.
Management shall take steps to ensure all officers and employees authorized
to accept deposits receive training on the contents and implementation
of this policy.
Approved as of: