Nelnet Bank Personal Account Deposit Agreement

This Personal Account Deposit Agreement (“Agreement”) governs each certificate of deposit or high-yield savings account opened with Nelnet Bank  (“Nelnet Bank”; “Bank”; “we”; “our”; “us”) by one or two individual persons (“you”; “your”; “depositor”), along with any other documents we provide you pertaining to your account(s), will constitute the contract that establishes the rules which control your account(s) with us.  Please read this Agreement and any other documents carefully.

1. General

a. Definitions for Nelnet Bank Deposit Accounts

“ACH Debit” – An electronic funds transfer, initiated at Nelnet Bank, to withdraw funds from an account at another bank and deposit them to an Account at Nelnet Bank.

“ACH Credit” shall mean an electronic funds transfer, initiated at another bank, to withdraw funds from an account at that bank and deposit them to an Account at Nelnet Bank.

“Account” shall mean the personal deposit Account you open with Nelnet Bank, including any High-Yield Savings Account or Certificate of Deposit.

“Account Documents” shall mean the Agreement together with all other documentation pertaining to your Accounts, including without limitation, application or other forms, disclosures, schedules (including any fee schedules), statements, notices, communications, any advertising or promotional materials, and policies.

“Accountholder” shall mean a person who, by the terms of the Account, has a present right to draw upon the funds in an Account and who is titled on the Account Documents as the owner of the Account.

“Authorized Signer” means anyone other than an Accountholder with the authority to deposit, withdraw, or exercise control over the funds in an Account.

“Available Balance” means the amount of your Current Balance that is available for immediate use. Certain pending Items that have not yet posted to your Account are not included in your Available Balance.

“Business Day” shall mean any day other than a Saturday, a Sunday, or any federal or Utah state legal holidays. Nelnet Bank may close on a Business Day due to an emergency situation.

“CD” shall mean Nelnet Bank’s Certificate of Deposit product.

“EFT” shall mean electronic funds transfer, a service available on your Account, which is described in detail in Electronic Fund Transfer Services Policy, Section 8 below.

“Individual Accounts” shall mean any Account opened under this Agreement by an individual person.

“Privacy Notice” shall mean Nelnet Bank’s Privacy Notice, which governs the Bank’s customer information-related operations and can be accessed online at https://www.nelnetbank.com/privacy-notice/.

“Statement Cycle” means the period of time covered by the period statement for your Account.

“Two-Party Account” shall mean any Account opened under this agreement by two persons. Accountholders of Two-Party Accounts shall be deemed joint tenants with right of survivorship.

“You” and “your” shall mean the Accountholder(s), as provided for in this Agreement and any Account Documents.

“We,” “us,” “our,” “Nelnet Bank,” and the “Bank” shall mean Nelnet Bank, our successors, affiliates, assignees, and service providers.

All definitions set forth herein shall be deemed applicable whether or not the words defined are used in the singular or plural or in capitalized form. Wherever used herein, any pronoun or pronouns shall be deemed to include both the singular and plural and to cover all genders, as the context so requires.

The headings in this Agreement are for convenience and/or reference only and shall not govern the interpretation of the provisions hereof.

b. Communicating with You. We will communicate with you using the most recent contact information you have provided. To the extent permitted by applicable law, and without limiting any other rights we may have, you consent to our communicating with you, in connection with this Agreement, any Account, and/or any transactions relating to any Accounts, using any phone number or email address that you provided in your application for an Account or that you provide in the future. You consent and authorize us to communicate with you using any current or future means of communication, including, but not limited to, automated telephone dialing equipment, artificial or pre-recorded voice messages, SMS text messages, email directed to you at a mobile telephone service, or email otherwise directed to you.

2. Opening Your Account. You may open an Account through our online application process. To open an Account, you must be a U.S. citizen or permanent resident, at least 18 years of age, and currently residing in the United States. In addition, other important information regarding the Account opening process is presented below. When you open your Account through our website, we will place a temporary hold on your Account, which means that any funds that are transferred to your Account with us will not be available to you during this hold period, in accordance with our Funds Availability Schedule (Section 5) below.

a. Types of Account Ownership. The various ways in which Account ownership can be established are described below. Nelnet Bank, at its sole discretion, may (i) change or limit the types of Accounts that it opens, (ii) limit the ways in which Account ownership can be established for a particular type of Account, and/ or (iii) may require you to close an Account. If Nelnet Bank does require the closure of an Account, we will provide you with any notice required by applicable law. Terms in this Section that are not defined in this Agreement shall have the meanings defined in Utah’s Multiple-Party Accounts Law, Utah Code § 75-6-101 et seq. as amended from time to time (“UTMPAL”).

i. Individual Account:An Individual Account is an Account opened or held in the name of one individual. Transactions on an individual account require the authorization of the individual Accountholder.

ii. Two-Party Accounts:A Two-Party Account is an Account that is opened or held in the name of two individuals. No more than two individuals may be Accountholders of a Two-Party Account. Accountholders of Two-Party Accounts shall be deemed joint tenants with right of survivorship, and shall not be treated as tenants in common. To establish ownership rights, Two-Party Accounts must be titled in the names of both Accountholders on the Account Documents. An Accountholder to a Two-Party Account is a person who possesses a present right to draw upon funds in the Account.

b. Verifying Your Identity – Notice Regarding the USA PATRIOT Act IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens or is added to an Account. What this means for you: When you open an Account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

c. Verifying Your Eligibility – Notice regarding Consumer Reporting Agency and Other Information. In connection with verifying your identity and eligibility for the Account, we may review your consumer report, credit history, or other information at the time an Account is opened and from time to time thereafter. By asking us to open an Account, you authorize us to obtain a consumer report, credit history information, or other information to process your Account request or for any other legitimate purpose, such as linking external accounts for the purpose of conducting transfers. Based on this review, we may open an Account for you, but you may not be eligible for some Account features, and we may limit your ability to make certain types of transfers to and from your Account. To be eligible for an Account, you must have a physical address in the United States, among other requirements. We reserve the right to decline your Account request if we are not able to fully verify your personal information. We may also report the status of, or the closure of your Account, to consumer reporting agencies. For New York, Rhode Island and Vermont residents, we may obtain a consumer credit report in connection with your account. If you ask, we will tell you if we obtained such a report, and, if so, the name and address of the agency that furnished the report. We may also obtain a consumer credit report in connection with the review or addition of external accounts that you add to your Nelnet Bank Account, or for other legitimate purposes related to your account.

d. Requiring Taxpayer ID Numbers and Backup Withholding Certification. Under Federal law, we are required to have a correct Taxpayer Identification Number (TIN) for every Account. Also, under Federal law, you are required to certify that you are not subject to backup withholding taxes. Without that certification, we are required to either withhold a percentage of interest paid as provided for under the Internal Revenue Service (IRS) backup withholding regulations or to close the Account. In some states, we may also be required to withhold taxable interest for state taxes.

3. Deposits/Balance

a. Minimum Deposit/Minimum Balance. The minimum deposit required to open and the minimum balance requirement is $1,000 for a CD Account. The minimum deposit required to open a High-Yield Savings Account is $100, and the minimum balance requirement is $.01. However, if you do not fund your Account within forty (40) days of the Account opening date, or if an Account is dormant with a balance of $100 or less with no activity for the past twelve (12) months, or with a balance of $0 for more than thirty (30) days, we reserve the right to close the Account.

b. Account Opening – Initial Hold. In order to ensure that we have properly verified your identity as required by Federal law, we may place a temporary hold on your deposits until we have completed our verification procedures. Please refer to the Funds Availability Schedule (Section 5) for additional details.

c. Types of Deposits Permitted. Deposits into your Account may be made by domestic wire transfer or ACH. The Bank does not permit international wire transfers, checks, or other types of transfers for the types of Accounts governed by this Agreement.

4. FDIC Insurance. Funds deposited in an Account and any other account(s) at Nelnet Bank are collectively insured up to the applicable limit by the Federal Deposit Insurance Corporation (“FDIC”). The amount of insurance coverage available to you depends on the number of Accounts you have with us and the ownership of those Accounts. For additional information, you may visit the FDIC’s website at http://www.fdic.gov.

5. Funds Availability Schedule. Our policy is to delay the availability of funds from your electronic deposits for a period of ten (10) Business Days in the case of ACH Debits. During the delay, you may not withdraw the funds in cash, and we will not use the funds to make withdrawals or debits you have authorized or made from your Account. 

a. Determining the Availability of a Deposit. The length of the delay is counted in Business Days from the day of your deposit. If you make a deposit on a Business Day that we are open before 3:00 p.m. Mountain Time (“MT”), we will consider that day to be the day of your deposit. However, if you make a deposit after 3:00 p.m. MT on a Business Day or on a Business Day we are not open, we will consider such a deposit made on the next Business Day we are The length of the delay varies depending on the type of deposit and is explained below.

b. Same-Day Availability. Wire transfers and funds from electronic direct deposits via ACH Credit to your Account will be available on the day we receive the deposit.

c. Longer Delays May Apply. Funds you deposit in your Account may be delayed for a longer period under the following circumstances:

• We believe a deposit you make will not be paid for any reason.
• You have overdrawn your account repeatedly in the last six
• There is an emergency, such as failure of communications or computer

We will try to notify you if we delay your ability to withdraw funds for any of these reasons and tell you when the funds will be available.

d. Special Rules for New Accounts. If you are a new customer, the following special rules will apply during the first 30 days your Account is open:

• Wire Transfers – ten (10) Business Days after the day of deposit
• Electronic Direct Deposits (i.e., ACH Credit) – ten (10) Business Days after the day of deposit

6. Withdrawals/Transfers

a. General. Unless clearly indicated otherwise on the Account Documents, any Accountholder may not withdraw or transfer all or any part of the Account balance without our consent, except on or after maturity. We may refuse any withdrawal or transfer request which you attempt on forms not approved by us, by any method we do not specifically permit, which is greater in number than the frequency permitted, or which is for an amount greater or less than any withdrawal limitations. Even if we honor a non-conforming request, we may treat continued abuse of the stated limitations (if any) as your act of closing the account. We will use the date the transaction is completed by us (as opposed to the date you initiate it) to apply the frequency limitations. The fact that we may honor withdrawal requests that overdraw the available account balance does not obligate us to do so later.

Withdrawals from an Account prior to maturity or prior to any notice period may be restricted and may be subject to penalty. For additional details, please see Section 7 of this Agreement for more information about transaction limitations and penalties for early withdrawal.

b. Insufficient Funds. You may not make withdrawals in excess of the funds available in your Account, which is the Account balance less any holds applicable to funds deposited into your Account. We will not be liable for dishonoring any withdrawals that would exceed the available funds in your Account. We process withdrawals and transfers in the order in which we receive them. If we receive a withdrawal, transfer, or related request and there are insufficient funds in your Account to pay the item, we will return the item unpaid. If we pay the item and allow for an overdraft, we may hold balances in other Accounts that you may have with us until the overdraft is paid. In addition, if we honor a request that overdraws your Account, you agree to promptly reimburse us for the amount of the overdraft along with applicable NSF fees, collection fees, and/or legal fees, if any. If we pay items that overdraw your Account, we are not obligated to continue paying overdrafts in the future.

If you repeatedly present items for payment when you have insufficient funds, we reserve the right to close your Account or, if applicable to your Account, terminate your ability to access certain features.

c. Notice of Intent to Withdraw or Transfer Funds. Nelnet Bank reserves the right to require at least seven (7) days prior written notice of your intent to withdraw or transfer funds by any means from your Account.

7. Truth-in-Savings Disclosures and Fees (by Account). The following Section sets forth the Truth-in-Savings Disclosures for your CD and High-Yield Savings Account(s).

a. Minimum Balance Requirements. As noted above, the minimum deposit required to open a CD Account is $1,000, and the minimum deposit required to open a High-Yield Savings Account is $100. The minimum Account balance (calculating using the daily balance method) to avoid having your Account closed, as well as the minimum balance required for your Account to earn interest, is $1,000 for a CD Account and $.01 for a High-Yield Savings Account.

b. Rate Information. 

i. CD Accounts. The interest rate, annual percentage yield, and maturity date for your CD Account are disclosed to you on the confirmation receipt provided to you at the completion of your online application. The interest rate disclosed on your confirmation receipt will be paid until the maturity date. The annual percentage yield disclosed on your confirmation receipt assumes that all interest will remain on deposit until maturity. Early withdrawal may reduce earnings. You may also obtain current annual percentage yield information at www.nelnetbank.com. Withdrawals and fees could reduce earnings on an Account.

ii. High-Yield Savings Accounts. The interest rate, annual percentage yield and maturity date for your High-Yield Savings Account are disclosed to you on the confirmation receipt provided to you at the completion of your online application. The annual percentage yield disclosed on your confirmation receipt assumes that all interest will remain on deposit until maturity. Your interest rate and annual percentage yield may change. The interest rate on your Account is based on determination of market conditions. Your interest rate and annual percentage rate may change at any time at Nelnet Bank’s sole discretion.

c. Balance and Interest Computation Method: Nelnet Bank uses the daily balance method to calculate interest on Accounts. This method applies a daily periodic rate to the balance in the account each day. We will compound your interest daily, using a 365/366-day basis.

Interest will accrue on deposits made to the Account beginning not later than on the Business Day when the funds become available in accordance with the Funds Availability Schedule in Section 5 of this Agreement up to, but not including, the Business Day of withdrawal, provided your Account is open when the interest is credited.  We will credit the interest to your Account at the end of each Statement Cycle after deducting any amount which we may be required by law to withhold for income tax purposes.  If the account is closed before the date interest is credited, you will receive the interest that accrued during the partial Statement Cycle.

d. Transaction Limitations.

i. CD Accounts. You cannot make additional deposits to your CD Account during a term (other than credit interest). You must call us at 800-446-4190 to make an early withdrawal. Early withdrawals are subject to penalties set forth in Section 7(f) below. At maturity, you may make a withdrawal and close your CD Account by calling us at the phone number above.

ii. High-Yield Savings Accounts. You can make up to six (6) withdrawals from your High-Yield Savings Account per month. You can transfer up to $75,000 via online banking. For transactions in excess of $75,000, you must call us at 800-446-4190 to request the transfer. Nelnet Bank reserves the right, in its sole discretion, to reduce the $75,000 online transfer limit for new Accounts, or for Accounts where Nelnet Bank believes there is suspicious activity or other red flags.

e. Automatic Renewal of CD Accounts. Your CD Account will automatically renew on each maturity date for a succeeding term of the same duration, unless you withdraw your deposit or we receive instructions in writing, including by electronic means, from you not to renew the CD Account during the ten (10) calendar day grace period beginning on the Maturity Date (the “Grace Period”). You are permitted to make additional deposits to your Account in any amount, but only during the Grace Period. Interest will be paid on any amounts withdrawn during the Grace Period at the then current rate. The interest we will pay on a renewed CD Account will be the rate being paid by us on the maturity date on Accounts of similar amounts and maturities.

You cannot renew a CD Account and change its term. If at the maturity date you wish to renew your Account for a different term, during the Grace Period you must open a new Account for the desired term and make an internal transfer of the funds from your existing Account to the new Account.

f. Penalties for Early Withdrawals. If all or any part of the principal of a CD Account is withdrawn during the term before the maturity date, such withdrawal will be subject to the penalty as follows:

The principal balance of your CD Account may be reduced, if necessary, to impose the penalty applicable for an early withdrawal.  No penalty is charged for a withdrawal following the death or a determination of incompetence of an account owner.  We may cancel the right to renew a CD Account or amend these terms and conditions for any renewal period, by providing you with written notice at the e-mail address we have listed for you in our records.

g. Fees. Any services charges and fees associated with your Account will be charged in accordance with Nelnet Bank’s then current fee schedule. Currently, the only fee applicable to your Account is a $15 outgoing wire transfer fee. You agree that these fees may, if necessary, be deducted from the amount in your Account.

8. Electronic Fund Transfer Services Policy

Nelnet Bank may provide you with EFT services, including direct deposits into your Account, preauthorized transfers from your Account and telephone transfers. For these services, you authorize us to charge and deduct from your Account any and all charges applicable to the EFT service(s) we provided to you. Applicable fees are disclosed in the “Truth-in-Savings Disclosures and Fees” Section of this Agreement. In addition, the rules set forth in the “Withdrawals/Transfers” Section above under “Insufficient Funds” are applicable to any EFT service we may offer and the “Truth-in-Savings” Section applicable to your Account(s) sets forth transaction limitations. We reserve the right to restrict your access to any EFT service(s) based on a review of your debit history or how you use your Account. The EFT services we may offer are described below.

a. Types of Electronic Fund Transfers Permitted. Electronic fund transfers to or from your Account may be made by ACH. The Bank does not permit other types of electronic fund transfers for the types of Accounts governed by this Agreement. The limitations on the frequency and amounts of transactions are set forth in Section 7(d) of this Agreement.

 b. Your Liability for Unauthorized Transactions, Reporting and Disputing Errors

Your Liability for Unauthorized Transactions. Tell us AT ONCE if you believe that an electronic fund transfer has been made without your permission, or if you believe your access device has been stolen. Telephoning us is the best way of keeping your possible losses down. You could lose all the money in your account. If you tell us within two (2) Business Days after you learn of the unauthorized electronic fund transfer or theft of your access device, you can lose no more than $50.

If you do NOT tell us within two (2) Business Days after you learn of the unauthorized electronic fund transfer or theft of your access device, and we can prove we could have stopped someone from making an unauthorized electronic fund transfer if you had told us, you could lose as much as $500.

Also, if your statement shows transfers that you did not make, including those made by code or other means, tell us at once. If you do not tell us within sixty (60) days after the statement was made available to you, you may not get back any money you lost after the sixty (60) days if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason (such as a long trip or a hospital stay) kept you from telling us, we will extend the time periods.

Error Resolution Notice. In case of errors or questions about your electronic fund transfers, contact us as soon as you can by telephoning us at 800-446-4190 or emailing us at Deposits@NelnetBank.com, if you think your statement or receipt is wrong or if you need more information about a transfer listed on the statement or receipt. We must hear from you no later than sixty (60) days after we sent the FIRST statement on which the problem or error appeared. When contacting us for such purposes, we ask that you:

− Tell us your name and Account number (if any);

– Describe the error or the transfer you are unsure about and explain as clearly as you can why you believe it is an error or why you need more information; and

– Tell us the dollar amount of the suspected error.

If you tell us orally, we also require that you send us your complaint or question in writing within ten (10) Business Days.

We will determine whether an error occurred within ten (10) Business Days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to forty-five (45) days to investigate your complaint or question. If we decide to do this, we will credit your Account within ten (10) Business Days for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. If we do not receive your complaint or question in writing within ten (10) Business Days, we may not credit your Account.

For errors involving new Accounts (an Account is considered to be a new Account for the first thirty (30) days after opening or after funds are deposited into the Account, whichever occurs later), or for foreign-initiated transactions, we may take up to ninety (90) days to investigate your complaint or question. For new Accounts, we may take up to twenty (20) Business Days to credit your Account for the amount you think is in error.

We will tell you the results within three (3) Business Days after completing our investigation. If we decide that there was no error, we will send you a written explanation. You may ask for copies of the documents that we used in our investigation.

c. Our Liability for Failure to Complete Transactions. If we do not complete a transfer to or from your account on time or in the correct amount according to our Agreement with you, we will be liable for your losses or damages.  However, we will not be liable for your losses or damages, even if we do not complete a transfer to or from your Account on time or in the correct amount according to our Agreement with you, under the following circumstances:

i. If, through no fault of ours, you do not have enough funds available in your Account to complete the transaction, including if there is a hold on your funds or if your funds are subject to legal process, another encumbrance restricting their use, other legal restrictions, or right of set-off;

ii. If we have reason to believe the requested transaction is unauthorized, including for fraud and related concerns;

iii. If circumstances beyond our control (such as fire, flood or computer or communication failure) prevent the completion of the transaction, despite reasonable precautions that we have taken; or

iv. For any other exception stated in this Agreement.

d. Disclosure of Account Information to Third Parties.  In order that your privacy may be protected, we will only disclose information to third parties about your Account or the transfers you make:

i. Where it is necessary for completing transfers;

ii. In order to verify the condition and existence of your Account for a third party, such as a credit bureau or merchant;

iii. In order to comply with government agency or court orders;

iv. To our employees, auditors, service providers, attorneys, or collection agents in the course of their duties;

v. As disclosed in our privacy notice, available at https://www.nelnetbank.com/privacy-notice/; or

vi. If you give us your permission.

e. Right to Stop Payment.  If you have told us in advance to make regular payments out of your Account, you can stop any of these payments. Here’s how:

Call us at 800-446-4190, or write us at Deposits@NelnetBank.com, in time for us to receive your request three (3) Business Days or more before the payment is scheduled to be made. If you call, we may also require you to put your request in writing and get it to us within fourteen (14) days after you call.

If you order us to stop one of these payments three (3) Business Days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages.

f. Preauthorized Transfers in Varying Amounts. When a preauthorized electronic fund transfer from your account will vary in an amount from the previous transfer under the same authorization or from the preauthorized amount, we will send you written notice of the amount and date of the transfer at least 10 days before it is scheduled to occur. You may choose instead to get this notice on when the payment would differ by more than a certain amount from the previous payment or the preauthorized amount, or when the amount would fall outside certain limits that you set.

g. Termination.  We reserve the right to terminate your use of our EFT services for any reason and at any time. You also have the right to terminate your use of the EFT services described in this Agreement at any time. If you terminate the use of EFT services by telephone, we may require you to put your request in writing and get it to us within fourteen (14) calendar days after you call. If you terminate your use of our EFT services and you have arranged for preauthorized transfers involving third parties, you are responsible for informing any third parties that the transfers will cease. Any termination of your use of our EFT services, whether initiated by you or us, will not affect any of your or our rights and obligations under this Agreement that have arisen before the effective date of such termination.

h.  Periodic Statements.  Your right to receive periodic statements for your Account is set forth in Section 12 of this Agreement.

9. Forgeries or unauthorized signatures. If we honor a debit request drawn on your Account that contains a forged or unauthorized signature or is altered in any way, you must notify us within thirty (30) calendar days of the date on which the forged, unauthorized, or altered item appears on your Account statement. In the case of continuing forgeries, unauthorized signatures, or alterations by the same person(s), you agree to notify us within thirty (30) days of the date on which the first forged, unauthorized, or altered item was provided to you. Or, if your items are not provided to you with your Account statement, then you must notify us within thirty (30) days of the date on which we provided to you or otherwise made available to you the Account statement that contained a description of the forged, unauthorized, or altered item. If you do not report a forged, unauthorized, or altered item within the time frames listed above, this will be deemed conclusive proof that you failed to exercise reasonable care and promptness in examining the statements of the affected Account and in notifying us after discovery of the forgery, unauthorized signature, or alteration. Therefore, you agree that such items shall be fully enforceable against you and you shall have no claim against us for payment of these items. Regardless of any of the above or any action or inaction on our part, if you fail to notify us of a forgery, unauthorized signature or alteration within ninety (90) days of the date the item (or a description of the item) or Account statement was made available to you, you agree to waive any right to bring any action or demand against us that is related in any way to the forgery, unauthorized signature or alteration or to any additional forgeries, unauthorized signatures or altered items by the same person.

10. Nelnet Bank Mobile Banking. Nelnet Bank offers you mobile banking through a mobile device, such as a smart phone or tablet computer, using a wireless web browser or local Wi-Fi network. Mobile access is subject to the same authorization and security restrictions required for access to Nelnet Bank’s website. There may be separate and/or supplemental terms and conditions applicable to initiating access through a mobile device. Although Nelnet Bank’s mobile banking services are complimentary, message and data rates may apply.

You acknowledge that in connection with your use of Nelnet Bank’s mobile banking services, Nelnet Bank and its affiliates and service providers may receive and may share with one another names, domain names, addresses, passwords, telephone and phone numbers, the content of messages, data files and other data and information provided by you or from other sources in connection with the Nelnet Bank mobile banking services or software (collectively “User Information”). Nelnet Bank and its affiliates and service providers will maintain reasonable safeguards to protect the information from unauthorized disclosure or use, but reserve the right to use and disclose this information as reasonably necessary to deliver Nelnet Bank mobile banking and as otherwise permitted by law, including compliance with court orders or lawful instructions from a government agency, to protect the personal safety of subscribers or the public, to defend claims, and as otherwise authorized by you. Nelnet Bank and its affiliates and service providers also reserve the right to monitor use of Nelnet Bank mobile banking services and software for purposes of verifying compliance with all laws and regulations, these terms and conditions and any applicable license, but disclaim any obligation to monitor, filter, or edit any content.

You agree not to use Nelnet Bank mobile banking services or software in or for any illegal, fraudulent, unauthorized, or improper manner or purpose. You further agree that your use of the services and software will be used in compliance with all applicable laws, rules, and regulations, including all applicable state, federal, and international Internet, data, telecommunications, telemarketing, “spam,” and import/export laws and regulations, including U.S. Export Administration Regulations. Without limiting the foregoing, you agree that you will not use Nelnet Bank mobile banking services or software to transmit or disseminate junk mail, spam, or unsolicited material to persons or entities that have not agreed to receive such material or to whom you do not otherwise have a legal right to send such material or material that infringes or violates any third party’s intellectual property rights, rights of publicity, privacy, or confidentiality, or the rights or legal obligations of any wireless service provider or any of its clients or subscribers.

We shall use our best efforts to effect payments/carry-out instructions received by us within such time as may be specified by us, however, we do not guarantee that the payment/fulfillment of instructions or the availability of Nelnet Bank mobile banking within such specified time frames since Nelnet Bank mobile banking depends on various electronic technology used from time to time and may pass through various intermediaries, which may cause delays and failures in receipt or transmission of any instructions by or from us or by or from you. Accordingly, we shall not be liable for any loss, damage whether direct or indirect, costs, charges, or expenses incurred by you due to a delay/inability in providing the Nelnet Bank mobile banking services. We may, for any reason whatsoever, decide not to make the payment and shall communicate such a decision to you as soon as practicable. We shall not be held liable for any loss, damage whether direct or indirect, costs, charges or expenses incurred by you in this regard. You acknowledge that Nelnet Bank mobile banking is dependent on the infrastructure, connectivity and services provided by the cellular phone service providers (“Service Providers”) and the Intermediaries engaged by us. You accept that timeliness, accuracy and readability of SMS texts and instructions/information shall depend on factors affecting the Service Providers and Intermediaries.

We shall not be liable for non-delivery or delayed delivery of, payments, error, loss, or distortion in transmission of information and instructions to/from you or a merchant or other payment recipient. We shall not be liable in contract, tort or otherwise for any direct, indirect or consequential loss or damage sustained by you by any direct or indirect use of or reliance on the electronic communication, orders or messages whether with or without the utilization of any security measures, including but not limited to any loss or damage resulting as a consequence of any defects, delays, interruptions, errors, inaccuracies or failures in the various communications and we specifically excludes the same to the fullest extent permitted by law even if we shall have been advised in advance of the possibility of such damages.

Without prejudice to anything contained in this Agreement, we make no express or implied warranty with respect to Nelnet Bank mobile banking or any other services provided hereunder including, without limitation, any warranties of non-infringement of third-party rights, title, marketability, satisfactory quality, fitness for a particular purpose.

Alert Notification.  You may voluntarily choose alert messages regarding your Account, including but not limited to alerts regarding balance information, payment transactions, and other features.  Nelnet Bank may add new alerts from time to time, or cancel existing alerts.  If you have opted to receive an alert that is being canceled, Nelnet Bank will notify you in accordance with the terms hereof.  Each alert has different options available, and you will be asked to select from among these options upon activation of Customer’s alerts service.

By using e-mail message or SMS text notice services, you represent and warrant to Nelnet Bank that you are the owner of (or have been granted legal authority by the owner) the e-mail address and/or the mobile phone number you provide to receive and issue and required communications with Nelnet Bank as described in this Agreement and any additional terms and conditions that may apply to a Service.  You hereby give consent to receive e-mails and/or SMS text messages from us or our agents with respect to the applicable Account.  In all circumstances, you accept full responsibility for any and all instructions or transfer requests sent to us from your mobile device(s) and hereby authorize us to act on the instructions and process any and all transactions we receive from your mobile device(s).

FURTHER, YOU HEREBY AGREE THAT THE BANK AND/OR ANY OF OUR AGENTS MAY USE AUTOMATIC TELEPHONE DIALING SYSTEMS IN CONNECTION WITH SENDING SMS TEXT MESSAGES TO ANY MOBILE PHONE NUMBER YOU PROVIDE TO US.

Electronic alerts will be sent via method(s) that you have selected: email, SMS text and/or phone. If your email address changes, you are responsible for informing the Bank of the change.  You understand and agree that your alerts may be delayed or prevented due to a variety of factors.  The Bank will use commercially reasonable efforts to provide alerts in a timely manner.  The Bank neither guarantees the delivery nor the accuracy of the contents of any alert.  Customer also agrees that the Bank shall not be liable for any delays, failure to deliver, or misdirected delivery of any alert; for any errors in the content of an alert; or for any actions taken or not taken by you or any third party in reliance on an alert.  You agree that the Bank is not responsible for any costs or fees incurred as a result of alerts sent to email addresses or phone numbers connected with a mobile phone or similar mobile devices.

You agree that the Bank may send and you will accept any notice, statement or other document or communication that is sent electronically to you or any Accountholder using the e-mail address (or other electronic method) provided by you and/or such additional Accountholder for such purpose.

11. Protecting Your Privacy

The privacy and security of your information is important to us. As noted above, Nelnet Bank’s Privacy Notice is available on our website at the following location: https://www.nelnetbank.com/privacy-notice/. You authorize us to share information about you and your Account with third parties who have referred you to us, as permitted by law. You authorize us to share information we have about you with affiliates and third parties pursuant to our Privacy Notice. For more information, please consult our Privacy Notice at https://www.nelnetbank.com/privacy-notice/.

12. Periodic Statements; Notices. You understand and agree that you are required to receive your periodic statements and any related notices electronically.  We will make available to you a periodic statement reflecting the activity in your Account during each Statement Cycle. We will include any notices regarding your Account with your periodic statement or send them to you separately.  We will send all periodic statements and notices to the most recent electronic address associated with your Account. We reserve the right to issue any periodic statement or notice to you in paper form at the most recent postal address associated with your Account. Your periodic statements and/or notices will be deemed to be delivered to you when we make them available to you by issuing an e-mail message to you or, if applicable, placing them in the mail.

You agree to examine your periodic statements with reasonable promptness. If you discover (orreasonably should have discovered) any unauthorized transaction activity, you must promptly notify us of therelevant facts. As between you and us, if you fail to do either of these duties, you will bear the loss to the extent a loss could be avoided by reviewing a statement promptly and notifying us. Such a loss could be with respect to, but not limited to, items on the periodic statement as well as otherunauthorized transactions by the same wrongdoer.

You must notify us as soon as possible if you believe there is an error or other problem with the information shown on your periodic statement. You may do so by telephoning us at 800-446-4190. In addition, you agree not to assert a claim against us concerning any error or other problem relating to a matter shown on an Account statement unless you notified us of the error or other problem within sixty (60) calendar days after we mail or otherwise make a periodic statement available to you. This means, for example, that you cannot bring a lawsuit against us, even if we are at fault, for a withdrawal from your Account unless you reported the unauthorized transaction within sixty (60) calendar days after we made available to you the periodic statement listing the unauthorized transaction, except if a different time period applies under applicable law.

If you assert any claim against us that a transaction is not authorized for any reason, you agree to cooperate and assist us in seeking criminal and civil penalties against the person responsible. This cooperation shall include, if requested by us, providing a statement under oath regarding the facts and circumstances relating to your claim.  If you fail or refuse to provide the requested cooperation, you agree that we will consider that you have ratified the unauthorized transaction and agree that we may charge the full amount of such transaction to your Account.

You further agree that if you fail to report any unauthorized signatures, alterations, forgeries, or any other errors in your account within 60 days of when we first send or make the statement available, you cannot assert a claim against us on any items in that statement, and as between you and us the loss will be entirely yours. This 60-day limitation is without regard to whether we used ordinary care.

13. Closing an Account. You may close your Account at any time, except as stated otherwise in this Agreement or other account agreements.  Please note that if you close a CD Account before maturity, you will be subject to an early withdrawal penalty.

We reserve the right to close your Account at any time with or without cause. We may try to notify you in advance should this be necessary, but we are not obliged to do so.

If we close your Account, we will send you your final balance in a manner deemed appropriate by us, minus applicable fees and charges. If the balance in your Account is not sufficient to pay the applicable fees and charges owed to us, you will continue to be liable to us for the unpaid amount, including interest thereon, until it is paid in full.  You remain liable for all transactions conducted prior to the closure of your Account and such liability will survive the closure of the Account.

14. Account Inactivity. In accordance with  applicable law, if you have not made any deposits or withdrawals from any Account or have not otherwise communicated with us about your Account for a period of 3 years (longer terms apply to time deposits and retirement accounts), the Account will be considered dormant and we will be required to transfer the balance to the State of Utah (or the state of your last known domicile) as abandoned property in accordance with applicable law.

An Account will generally be considered inactive if no deposit is made to it and/or no withdrawal is made from it for 12 consecutive months; or the Bank does not receive any document indicating that someone who is entitled to the funds in it knows about it; or the Bank has not had any other sufficient contact with someone who is entitled to the funds.

15. Assignment/Transferability. No part of an Account may be pledged, assigned, given as a gift, or otherwise transferred to a third party without our prior written consent.

16. Notice and Cure. Prior to you initiating a lawsuit or arbitration against Nelnet Bank regarding a legal dispute or claim relating in any way to this Agreement or your Account (a “Claim”), you shall give Nelnet Bank written notice of the Claim (a “Claim Notice”) and a reasonable opportunity, not less than thirty (30) days, to resolve the Claim. Any Claim Notice will be sent in writing by mail to the following address: Nelnet Bank, 13907 S. Minuteman Drive, Suite 240, Draper, Utah 84020. Any Claim Notice you send must give your Account number(s), address, and telephone number. Any Claim Notice must explain the nature of the Claim and the relief that is demanded, and you must reasonably cooperate in providing any information about the Claim that Nelnet Bank reasonably requests.

17. Jury Trial Waiver. TO THE EXTENT PERMITTED BY LAW, YOU AND WE WAIVE ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION ARISING OUT OF OR RELATED TO THESE RULES OR YOUR ACCOUNT. THIS JURY TRIAL WAIVER SHALL NOT AFFECT THE JURY TRIAL WAIVER IN THE ARBITRATION PROVISION (IF YOU DO NOT REJECT IT).

18. Credit Reporting/Notice of Inaccurate Reporting or Identity Theft. We have the right to report information about your Account to any consumer reporting agency. If you believe that any information that we have furnished to a consumer reporting agency in connection with your Account is inaccurate, or if you believe that you have been the victim of identity theft in connection with your Account, write to us at the following address: 13907 S. Minuteman Drive, Suite 240, Draper, Utah 84020. In your letter be sure to include:

a. Your name, address, and Account number(s);

b. A description of the specific information that is being disputed;

c. An explanation of the basis for the dispute;

d. A copy of any supporting documentation you have that substantiates the basis of the dispute; and

e. If you believe that you have been the victim of identity theft, submit an identity theft affidavit and an identity theft report (e.g., police report, postmaster general report, etc.).

19. Claims of Third Parties and Legal Action Taken Against Your Account. Except as otherwise provided herein, we are not required to recognize any claim to your Account, or any claim of authority to exercise control over your Account, made by a person or persons other than you or an individual you have authorized to access the Account pursuant to a written agreement, in a form and content acceptable to us, on file with us. If an attachment, garnishment, levy, order, decree or other state or Federal legal process (“Legal Process”) is brought against your Account, we may refuse to permit or we may limit withdrawals or transfers from your Account until the Legal Process is satisfied or dismissed. If we receive any document that appears or is purported to be Legal Process issued out of any court or governmental agency, you hereby authorize us to accept and comply with it, no matter how it was received by us. If we incur any damages, losses, costs or expenses, including, without limitation, reasonable attorneys’ fees, in connection with any such document or Legal Process, you are liable to us in such amount and we may (i) charge any expenses and fees to your Account or any other Account you may have with us without prior notice to you, (ii) bill you directly for such expenses and fees or (iii) to the extent permitted by law, deduct such expenses and fees from the amount levied. Any garnishment, attachment or other levy against your Account is subject to our right of setoff.

20. Indemnification; Limitation of Liability. You agree that you are solely responsible for the lawfulness and propriety of transactions that occur in your account. You agree to indemnify Nelnet Bank, its shareholders, directors, officers, employees, successors and assigns (collectively, the “Parties”) and agree to hold the Parties harmless from and against any and all liabilities, claims, actions, losses, payments, damages, costs, including reasonable attorneys’ fees and expenses, which any of the Parties may suffer or incur arising out of or in any way relating to: (i) any misrepresentation made by you in your application for any account or in connection with any account you open or maintain; (ii) any inaccuracy of any information provided to us by you or on your behalf; or (iii) our reliance on any representation made by you or on your behalf or any instruction or authorization issued by you or on your behalf, in connection with your application for any account or in connection with any account you open or maintain. This indemnification shall survive the closure of any account or sub-account you open or maintain with the Bank.

Except as expressly prohibited by law, neither the Bank nor you shall be liable to the other for any punitive, special, consequential, incidental, or indirect damages, even if the other party was aware of the possibility of such damages.  The liability of Bank for any claim will be limited to the face value of an item or transaction improperly dishonored or paid, or the face value of any transaction not properly credited or debited.

21. Claims Against Your Account. If we receive a claim against funds in your Account or know of or believe that there is a dispute over the ownership or control of funds in your Account, we may place a hold on your Account. We can also refuse to pay out any of your funds until we are satisfied that the dispute is settled. In addition, we may close the Account and send the balance to the Accountholder(s) we have on record; decide to rely on our current Account records; require a court order to act; or take any other action that we feel will protect us. We will not be liable to you for taking any such action.

22. No Fiduciary Obligation. Nelnet Bank assumes no fiduciary obligation to you on your behalf. This means that we do not act as your trustee or financial advisor, and we do not assume any responsibility for your Account beyond reasonable care.

23. Choice of Law and Applicable Laws and Rules. This Agreement (excluding the Arbitration Agreement) will be governed by the law of the State of Utah except to the extent governed by Federal law. Your Account is also subject to applicable operating circulars and customs of any clearinghouse or other association involved in transactions.

24. No Waiver of Nelnet Bank’s Legal Rights. We do not waive our rights by delaying or failing to exercise them at any time.

25. Right to Set-Off. By opening an Account with Nelnet Bank, you agree that we have the right to set-off with respect to your Account. If you owe Nelnet Bank or any of its affiliate’s money and that money is due, you agree that we may withhold or withdraw from your Account any amounts you owe to us or any of our affiliates unless prohibited by applicable law. We may exercise our rights of set-off without recourse to other collateral, if any, and even if our action causes you to lose interest, incur an early withdrawal penalty or any other consequence. If we exercise our right of set-off, we will notify you to the extent required by applicable law. Except to the extent prohibited by applicable law, we may set-off all of the funds in a Two-Party Account to pay money owed to us by any owner of the Two-Party Account, irrespective of who contributed funds to the multiple party Account. Our failure to demand payment does not waive our rights hereunder. See also the “Withdrawals/Transfers” Section above regarding “Insufficient Funds.”

26. Enforceability/Severability. If any provision of this Agreement shall be determined to be invalid or unenforceable under any rule, law, or regulation of any governmental agency (local, state, or Federal), the validity or enforceability of any other provision of this Agreement shall not be affected.

27. Telephone Monitoring. You agree that your telephone calls with us may be monitored and recorded for quality assurance and security purposes.

28. Death of an Accountholder. If you die or are declared legally incompetent, we can continue to accept and process deposits to your Account until we have actual notice of the death/incompetency and have a reasonable chance to act. Upon notification, we will freeze individual Accounts (disallowing any withdrawals or transfers). By law, certain documents must be presented to us before funds in such an Account can be paid out and the Account closed. These documents may include: a certified copy of the death certificate; letters testamentary or letters of administration; decrees of probate court; and documents evidencing that estate taxes are paid or not owed; if applicable. Additional documents may be required depending on the ownership of the Account.

29. Attorney in Fact/Fiduciary or Agency Account. Any individual acting as attorney-in-fact, agent, guardian, personal representative, custodian or fiduciary (collectively, an “Agent”) must be designated as such on our records; otherwise, we will not honor the instructions of that individual regarding your Account. You may designate an individual as your Agent, authorized to act on your behalf, by sending us a written request. Upon such designation, you authorize us to honor the instructions of your Agent regarding your Account unless and until you provide us written notice to remove the Agent from our records or we receive actual notice of the death or incompetency of such Agent. You acknowledge and agree that we shall have no obligation to remove or change the designation of such Agent unless and until we receive such actual notice or written instruction and we have had a reasonable opportunity to act. We will not be liable to you in any way if your Agent misapplies any of the funds from your Account nor for any other acts or omissions of your Agent. We have the right to review and retain a copy of any power of attorney, agency agreement, court order or other document that has established the agency or other fiduciary relationship.

30. Amendment, Cancellation and Change in Terms. Nelnet Bank may amend or cancel this Agreement at any time in accordance with applicable law. Amendments to this Agreement will be communicated to you in a manner consistent with applicable law. Also, this Agreement, as amended, will be made available on our website.

31. ARBITRATION. This provision explains the terms under which a dispute between you and the Bank will be resolved. Please read this provision carefully since it specifically limits your rights in the event of such dispute. By this provision, at the request of you or the Bank, disputes must be resolved by arbitration. Arbitration is a means of having an independent third party resolve a dispute without using the court system. When a dispute is handled via arbitration, there is no right by either party to appeal the decision of the arbitrator that would normally exist in a legal proceeding brought in the court system.  BOTH YOU AND THE BANK HEREBY ACKNOWLEDGE AND AGREE THAT THAT EACH PARTY IS WAIVING THE RIGHT TO A JURY TRIAL AND/OR A TRIAL BEFORE A JUDGE IN A PUBLIC COURT.

Either of us may submit a dispute concerning this Agreement to binding arbitration at any reasonable time, notwithstanding that a lawsuit or other proceeding has been commenced. If either of us fails to submit to binding arbitration following a lawful demand, the one who fails to submit bears all costs and expenses incurred by the other compelling arbitration.  Any controversy or claim arising out of or relating to this Agreement, or the Account(s) or services covered by this Agreement, will be settled by arbitration administered by the American Arbitration Association (“AAA”) in accordance with its arbitration rules.

Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction. All statutes of limitation and rules of law that would otherwise be applicable to this Agreement, including but not limited to those provided in the laws of the State of Utah, shall apply to any arbitration proceeding.  To the extent that there is any variance between the AAA Rules and this Agreement, this Agreement shall control.  Arbitrators must have expertise in the substantive laws applicable to the subject matter of the dispute.  You agree to take all steps, and execute all documents, necessary for the implementation of arbitration proceedings.

This arbitration provision supersedes all prior arrangements and other communications concerning dispute resolution as to this Agreement.  In the event more than one arbitration agreement entered into by us is potentially applicable to a dispute, the one most directly related to the Account, service or transaction that is the subject of the dispute shall control.

Nothing in this “Arbitration” Section shall limit the right of any party at any time to exercise self-help remedies, foreclose against collateral, or obtain provisional remedies. The arbitrator shall also determine all issues relating to the applicability, interpretation, and enforceability of this paragraph.

32. Class Action Waiver. Irrespective of whether either party elects to arbitrate a dispute, you hereby waive the right to participate in a class action in court, whether as a class representative, class member, or otherwise.