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 accounts.

2.) Rejection, 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.

3.) Deposits 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.

4.) Deposits 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.

6.) Redemption 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.

7.) Training. 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: 1-18-2000

 

 

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