Certificates of Deposit

Thank you for selecting Merrick Bank Corporation (the Bank) for a Certificate of Deposit Account(s) (the Account, whether one or more) described on the associated Certificate of Deposit/Safekeeping Receipt (Certificate). The Certificate and these Certificate of Deposit Account Contract Terms and Conditions (Account Terms) set forth the terms governing the Account. The Certificate and these Certificate of Deposit Account Terms create a contract between the owner(s) of the Account and the Bank (collectively, the Contract). Please keep a copy of the Certificate and these Account Terms for future reference.

Execution of the Certificate signifies agreement to all of the terms of the Contract, including any future changes the Bank may make to the Contract pursuant to Section 12, below. The Account is considered open when funds are received by the Bank and the Certificate is issued. The Bank reserves the right to waive or suspend enforcement of any of the terms of the Contract. Any such waiver or suspension will not affect the Bank’s right to subsequently enforce any provision or provisions previously waived or suspended.

a. Ownership of Account. The ownership of the Account is set forth on the Certificate. Ownership of the Account can be changed only by written notice delivered to the Bank, signed by each Account owner and expressly consented to in writing by the Bank. The Bank is not required to accept or agree to accept any assignment, transfer or pledge of the Account or any interest therein. The Bank will pay the principal amount and interest earned on the Account only to the person(s) named on the Bank’s records as owner of the Account. Account Owner, You and Your, as used in these Account Terms, refer collectively to the owner, or collectively to the owners, of the Account.

b. 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 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. Taxpayer Identification Number. The Internal Revenue Code requires the Bank to have a correct Taxpayer Identification Number (TIN) on every Account, or to withhold a percentage of the interest paid as provided in current IRS regulations. If the Account is owned by a single individual or entity, the Account Owner must certify to the Bank, in writing and under penalty of perjury, the Account Owner’s TIN and whether the Account Owner is subject to backup withholding. If the Account is owned jointly by two or more Account Owners, the Account Owners must designate a Primary Account Owner, and the Primary Account Owner must certify to the Bank, in writing and under penalty of perjury, the Primary Account Owner’s TIN and whether the Primary Account Owner is subject to backup withholding. If the Bank does not receive these certifications within thirty (30) days after the date on which the Account is opened, the Bank will close the Account, return all funds on deposit to the Account Owner, and all accrued interest will be forfeited.

If at any time after the Account is opened the IRS informs the Bank that the TIN for the Account does not match IRS records for the TIN associated with the name of the Account Owner or the Primary Account Owner (as the case may be), the Bank will require the Account Owner or the Primary Account Owner to recertify the TIN of the Account Owner or Primary Account Owner to the Bank, in writing and under penalty of perjury. If the Account Owner or the Primary Account Owner does not provide this recertification promptly to the Bank, the Bank reserves the right to close the Account before its maturity date. Any such Account closing may be treated by the Bank as an early withdrawal of principal, subject to the applicable penalty for early withdrawal.

a. Minimum Deposit to Open. The minimum amount that must be deposited to open the Account is $90,000.00.

b. Minimum Daily Balance to Obtain Annual Percentage Yield ("APY"). Your Account must maintain a minimum principal balance of $90,000.00 each day, and you must elect to compound the interest that accrues on your Account, to obtain the disclosed Annual Percentage Yield (APY). (Please also see Section 5(b), below, for important additional information about the disclosed APY.)

c. Transaction Limitations. After the Account is opened, you may not make deposits into the Account. The Bank is not required to permit any withdrawals from the Account until the maturity date (see also Section 6, below).

d. The Certificate. The Certificate sets forth specific terms of the Account, including date of issue, maturity date, deposit amount, interest rate, and APY. The information on the Certificate conclusively establishes the specific terms of the Account, unless the Bank notifies you of any correction within fifteen (15) days of the date of issuance of the Certificate.

The Account will automatically renew as of the maturity date for a new term equal in length to the original term of the Account, at the Bank’s then-current interest rate and APY for the type and term of the Account, unless the Bank receives different, signed, written instructions from you within the first ten (10) calendar days after the maturity date. You will have ten (10) calendar days after the maturity date to withdraw funds from the Account without penalty.

If the Bank receives signed, written instructions from you within the first ten (10) calendar days after the original maturity date or any renewal maturity date of the Account, the Bank will either send a wire transfer or mail a check to you for the funds from the matured Account and/or invest the funds from the matured Account in a new Account for a term different from the original term of the Account, according to your signed, written instructions. Any funds wired or mailed to you according to your signed, written instructions after the maturity date of the Account will not earn interest on or after the maturity date. However, any funds invested in a new Account, according to your signed, written instructions, will earn interest as of the maturity date of the original Account at the Bank’s then-current interest rate and APY for the new Account (based on the terms of the new Account). The minimum deposit to open a new Account remains $90,000.00.

a. Interest Rate. The interest rate shown on the face of the Certificate is the fixed interest rate the Bank will pay on the Account from the date the Account is opened to the date that is the earlier of the date on which the Account matures or the date on which the Account is closed (subject to any provisions in these Account Terms concerning forfeiture of interest).

b. Annual Percentage Yield ("APY"). The APY shown on the face of the Certificate reflects the annualized total amount of interest payable on the Account, based upon a monthly compounding of the interest payable at the rate set forth on the Certificate. The Annual Percentage Yield assumes that all principal and interest paid on the Account will remain in the Account until maturity. Any withdrawal of interest or principal before maturity will reduce earnings.

c. Interest Computation. The Bank uses the daily balance method to calculate the interest on your Account. This method applies a daily periodic rate to the principal in the Account each day.

d. Monthly Compounding. Unless you elect to have interest that accrues on the Account paid to you on a monthly basis, interest will be compounded on a monthly basis.

e. Monthly Crediting. Interest will be credited to your account on a monthly basis on approximately the same date each month as the date on which the Certificate was issued. If the Account is closed before accrued interest is credited, you will forfeit the interest that has accrued.

f. Interest Accrual on Non-Cash Deposits. Interest begins to accrue on the business day you deposit noncash items (for example, checks) to the Account (subject to Sections 2(b) and 3(c) above).

No withdrawal of principal or interest is permitted from the Account until the maturity date of the Certificate, without the prior consent of the Bank. The Bank is not required to give its consent to any withdrawal from the Account before the maturity date. However, if periodic withdrawals of interest are specifically permitted by the terms on the face of this Certificate, or the Bank otherwise agrees in its discretion to allow withdrawals of interest before maturity but after interest has been credited to the Account, the Bank will not charge any early withdrawal penalty for such withdrawals of interest.

No partial withdrawals of principal are allowed before maturity. Early withdrawal penalties may be deducted from any withdrawal of the principal in the Account that the Bank allows to occur before maturity, calculated as follows:

Certificate term Penalty
If the term of the CD is 368 days or less the early withdrawal penalty is equal to 1% of the amount withdrawn.

For terms between 369 and 733 days the early withdrawal penalty is equal to 2% of the amount withdrawn.

For terms of 734 days or more the early withdrawal penalty is equal to 3% of the amount withdrawn.

a. If there is only one Account Owner: If there is only one Account Owner: Upon your death, an authorized representative of your estate must promptly provide to the Bank: (i) an official, certified death certificate; (ii) evidence of the appointment of the individual submitting such death certificate as your authorized representative; and (iii) instructions from your authorized representative regarding the manner in which the funds should be removed from the Account. Upon receipt of such documents, the Bank shall follow the instructions contained therein.

b. If the Account is held by more than one Account Owner as Tenants in Common. Upon the death of an Account Owner of an Account that is held by two or more Account Owners as tenants in common, an authorized representative of the estate of such Account Owner must promptly provide to the Bank: (i) an official, certified death certificate; and (ii) evidence of the appointment of the individual submitting such death certificate as the authorized representative of such Account Owner. Upon receipt of such documents, the Bank shall send any further notices and documents relating to the Account that otherwise should have been sent to the deceased Account Owner to such authorized representative, and shall treat any communications or instructions from such authorized representative as communications or instructions received from the deceased Account Owner.

c. If the Account is held by more than one Account Owner as Joint Tenants. Upon the death of an Account Owner of an Account that is held by two or more Account Owners as joint tenants, one of the remaining Account Owners must promptly provide to the Bank: (i) an official, certified death certificate; and (ii) if the deceased Account Owner was designated as the Primary Account Owner, the name and TIN of the new Primary Account Owner or sole remaining Account Owner, as applicable. Upon receipt of such document(s), the Bank will consider the remaining Account Owner(s) as the owner(s) of the Account for purposes of this Agreement.

If an Account Owner is officially determined to be incompetent, an authorized representative of such Account Owner must promptly provide to the Bank: (i) a certified copy of the official documents pursuant to which such determination is made; and (ii) a certified copy of the document(s) pursuant to which the individual submitting such documents is appointed as the authorized representative of such Account Holder. Upon receipt of such documents, the Bank will send all required notices under this Agreement to, and act in accordance with instructions received from, such authorized representative.

Unless restricted by law, the Bank will have the right to offset any funds in the Account against any obligation that any Account Owner owes to the Bank and to place an administrative hold on such funds pending offset. This right of offset does not apply to any consumer-purpose credit card debt owed by any Account Owner to the Bank, unless the Account is specifically pledged to the Bank as collateral security for repayment of the credit card debt. The Bank may apply all funds in a jointly owned Account to satisfy a debt owed to the Bank by any one of the Account Owners. If the Bank uses principal from the Account to satisfy any debt owed to it, the withdrawal is subject to the applicable penalty for early withdrawal.

If the Bank is served with any notice of garnishment or of attachment, tax levy, injunction, restraining order, subpoena, or other legal process relating to the Account, the Bank will comply with the terms of such notice. The Bank may charge a legal process fee of $50, and may assess this fee against the Account or any other account an Account Owner maintains with the Bank, to the fullest extent permitted by applicable law. Levies and garnishments are subject to the Bank’s right of offset to the fullest extent permitted by applicable law.

If the Bank receives conflicting claims to funds in the Account and cannot, in good faith, determine the rights of the claimants to the funds, the Bank may, at its discretion: (1) restrict the Account and deny access to all; (2) refer all or any portion of the funds from the Account to the court of judgment; or (3) hold the property, without liability to anyone, pending resolution of the claim to the Bank’s satisfaction.

Please see the Bank’s Privacy Policy, a copy of which is provided with the Certificate and the terms of which are incorporated herein by reference, for an explanation of how the Bank may use information about you provided or obtained in connection with the Account.

Subject to the penalties for early withdrawal, you may close the Account at any time. The Bank will consider any of the following actions a request to close the Account:

a. Providing incorrect data when opening the Account.

b. Failing to return certification, or recertification, of the relevant TIN in the specified time period.

c. Withdrawing all funds in the Account.

d. Conducting suspicious, illegal or fraudulent activity.

a. Accounts with only one Account Owner. Any notice or other communication sent by the Bank will be sent to the most recent address for the Account Owner as set forth on the books and records of the Bank. The Account Owner agrees to promptly advise the Bank, in writing with an authorized signature, of any change in the Account Owner’s mailing address. Except as otherwise expressly agreed to in writing by the Bank and the Account Owner, payments made by the Bank to the Account Owner with respect to the Account shall be by check sent to the Account Owner’s address as set forth on the books and records of the Bank.

b. Accounts owned by more than one Account Owner as Tenants in Common. Any notice or other communication sent by the Bank relating to the Account will be sent to each Account Owner at the most recent addresses for such Accounts Owners as set forth on the books and records of the Bank. Each Account Owner agrees to promptly advise the Bank, in writing with an authorized signature, of any change in that Account Owner’s mailing address. Except as otherwise expressly agreed to in writing by the Bank and all of the Account Owners, payments made by the Bank to the Account Owners with respect to the Account shall be by check made to all of the Account Owners collectively, and shall be sent to the address of Primary Account Owner as set forth on the books and records of the Bank.

c. Accounts owned by more than one Account Owner as Joint Tenants. Any notice or other communication sent by the Bank relating to the Account will be sent by the Bank to the Primary Account Owner at the most recent address for the Primary Account Owner as set forth on the books and records of the Bank, and all Account Owners agree that any such notice delivered in this manner shall be sufficient for all purposes. The Primary Account Owner agrees to promptly advise the Bank, in writing with an authorized signature, of any change in the Primary Account Owner’s mailing address. Except as otherwise expressly agreed to in writing by the Bank and all of the Account Owners, payments made by the Bank to the Account Owners with respect to the Account shall be by check made to the Primary Account Owner, and shall be sent to the address of the Primary Account Owner as set forth on the books and records of the Bank.

The Bank reserves the right to alter, amend or supplement these Account Terms at any time. In such event, the Bank will send notice of such alteration, amendment or supplement to the Account Owner(s) in accordance with the terms of Section 12 of these Account Terms, and in accordance with applicable state and federal law. A copy of the most current Account Terms may be obtained from the Bank by calling a Savings Specialist at (800) 328-9155, ext. 6040.

These Account Terms are meant to conform to all applicable state and federal laws and to all applicable regulations or enactments of appropriate federal and state regulatory agencies. They will be governed and interpreted in accordance with Utah and federal law. Venue for any action brought to enforce these Account Terms shall be in Salt Lake County, Utah. In the event any provision of these Account Terms is determined by a court to be unlawful, the balance of the Account Terms shall remain in full force and effect.

The Bank is a member of the Federal Deposit Insurance Corporation (FDIC). The Account is insured to the extent permitted by the FDIC’s rules and regulations. Please note that FDIC deposit insurance is generally limited to a maximum of $100,000.00 per depositor (not per Account). For further information, please refer to the FDIC’s brochure, Your Insured Deposit, provided with this Certificate (you may also obtain a copy of this brochure from the Bank by calling a Savings Specialist at (800) 328-9155 ext. 6040). The brochure is also available at http://www.fdic.gov/deposit/deposits/insured/index.html.