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36 <br />II. Additional Terms Applicable to All Commercial Interest-Bearing, <br />Savings and Time Accounts <br /> <br />Interest-Bearing Accounts <br /> <br />Variable/Fixed-Rate Accounts. <br />Company’s interest-bearing Account may be either a variable-rate or fixed- <br />rate account. Unless Bank has specified otherwise in writing, Company’s <br />Account will be a variable-rate account. That means Bank may in its sole <br />discretion change the interest rate on Company’s Account at any time. If <br />Company’s Account is a fixed-rate account and it is not a time account, <br />Company will be paid the specified interest rate for at least thirty (30) days. <br /> <br />Method Used to Calculate Earned Interest. <br />Bank may use either the average daily balance or daily balance method to <br />calculate interest. The average daily balance method applies a periodic rate <br />to the average daily collected balance for the period. The average daily <br />balance is calculated by adding principal for each day and dividing by the <br />number of days in the period. The daily balance method applies a daily <br />periodic rate to principal each day. Unless Bank has specified otherwise in <br />writing, it will use the daily balance method to calculate interest. If <br />Company’s Account is a tiered-rate account, Bank may pay the same interest <br />rate on more than one tier. <br /> <br />Interest Accrual. <br />If Company deposits a non-cash Item, such as a check, interest begins to <br />accrue no later than the Business Day Bank receives credit for the deposit of <br />that Item. This may not be the same day that Company deposits the non- <br />cash Item to Company’s Account. <br /> <br />Compounding and Crediting. <br />Interest will compound on a daily basis. For checking and savings accounts, <br />interest will be credited on a monthly basis. For time accounts, Bank will <br />notify Company separately as to the frequency with which interest will be <br />credited to Company’s Account. <br /> <br />Target Balance Accounts. <br />If Company maintains multiple accounts at Bank, Company may, with Bank’s <br />consent, designate in writing one such account as its “Principal Account” and <br />one or more additional accounts as “Target Balance Accounts.” For each <br />Target Balance Account, Company will separately specify to Bank <br />in writing the Ledger Balance or Collected Balance which Company wishes <br />6.1.D. - Page 78