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Agreements and Disclosures with Quontic Bank and NYDIG Execution LLC

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These pages contain agreements and policies that you are entering
into with Quontic, and separate agreements and policies that you are entering
into with NYDIG Execution LLC. Please read them carefully and retain a copy for
your records.

(You are strongly
encouraged to save and/or print the documentation.)

Table of Contents:


E-Sign Consent Agreements



QUONTIC BANK E-SIGN CONSENT AGREEMENT

This E-SIGN Consent
Agreement (“Agreement”) allows us to provide you with electronic
versions of important notices and documents associated with opening an account
at Quontic Bank and during the lifetime of the account (e.g., end-of-year tax
forms and electronic account statements). Certain laws and regulations may
require us to provide initial and future disclosures, notices, statements and
terms and conditions related to opening account(s) at Quontic Bank and during
the lifetime of the account (“Electronic Documents”) to you in “writing”
(traditionally this is defined as a paper notice); with your consent, the
E-SIGN Act allows us to provide these documents to you electronically. The
account(s) that you are opening also must be linked to your Quontic
Bank online banking account
 in order for you to access your periodic
statement(s), disclosures and notices. After account is approved and opened,
you must sign-up for online banking at quonticbank.com.

If you do not want to
receive the aforementioned electronically, you should exit this area of our web
site. If you do not consent to this agreement, you will not be able to open the
account(s) online.

By providing us with your
consent, you acknowledge, understand and agree that:

 

Definitions

The words “we,”
“our,”
 and “us” mean Quontic Bank, affiliates,
successors, and assigns.

The words “you” and “your” mean
each applicant, account owner and anyone else with access to the account. If
there is more than one owner, then these words mean each account owner
separately, and all account owners jointly.

“Access Device” means any
electronic device you use to access your account and view electronic documents.
This includes, but is not limited to: a traditional computer such as a desktop
or laptop computer; or a mobile device such as a tablet computer or a
smartphone.

The word “eStatement” means communications, statements,
notices and disclosures delivered electronically after account opening.

The word “electronic
documents”
 initial disclosures, notices, terms and conditions related
to opening account(s) at Quontic Bank, including but not limited to E-Sign
Consent Agreement, Terms and Conditions Agreement, Funds Availability, Check
21, Electronic Funds Transfers, Privacy, and Truth and Savings Disclosures.

 

Scope of this Agreement

This Agreement applies to
all initial and future disclosures, notices, statements and terms and
conditions related to opening account(s) at Quontic Bank and during the
lifetime of the account. This consent will remain effective until expressly
withdrawn by you. Your consent means that we may provide documents
electronically. With your consent, you also agree that we may contact you for
general and required notifications regarding your account relationship via the
email address supplied in your application.

By accepting and agreeing
to this agreement, you agree to be bound by any and all laws, rules,
regulations and official issuances applicable to electronic documents and eStatements now existing or which may hereafter be enacted,
issued or enforced, as well as such other terms and conditions governing the
use of other facilities, benefits or services that Quontic Bank may from time
to time make available to you in connection with eStatements.

Quontic Bank has absolute
discretion to make eStatements available to you.
Further, Quontic Bank has the discretion from time to time and upon giving
notice to you to modify, restrict, withdraw, cancel, suspend or discontinue eStatements without giving any reason and you understand that
by using eStatements after any modification or change
has been effected, you would have agreed to such modification or change.

 

Electronic Delivery of Documents

Electronic documents will
be delivered herein and to you within the application process. You must read
the entirety of electronic documents provided. You will then be asked to
acknowledge your acceptance of the terms of the electronic documents by
checking the box before you are able to submit your application. You agree
that, in order to open the account, we will not provide you with paper copies.
You are strongly encouraged to save and/or print the documentation for future
reference.

The account(s) that you
are opening will be automatically enrolled to receive eStatements.
After account is approved and opened, you must sign-up
for online banking at quonticbank.com. You understand that all
statements, notices and disclosures during the lifetime of your account(s) will
be eStatements which you will access through Quontic
Bank’s Online Banking to obtain, review, print, and copy/download your periodic
deposit account statements.

Your consent covers the
periodic statements, notices and disclosures you are provided in connection
with your Quontic Bank deposit account(s). Your consent also covers disclosures
that are required with your account statements, including, but not limited to,
the error resolution notice required by the Electronic Fund Transfer Act, as
well as marketing information on products and/or promotions that Quontic Bank
may provide to you electronically.

Joint Owners: If there is more
than one owner on the account(s), any one or both of the joint owners may
enroll to receive e-Statements and their access applies to both owners. As
such, consent, or withdrawal of consent to receive electronic disclosures,
records, or other information by any authorized party to the joint account,
will be effective for all account holders.

 

When and Where to Find Your eStatement

Each month you will
receive an email notifying you that your eStatement
is available to you online. Your eStatement will be
accessible in 2-3 business days after the last day of your statement cycle. You
will be able to review, copy, download, or print your eStatement
by accessing your Online Banking account at www.quonticbank.com listed under the
Accounts tab and then Account Statements. Your e-Statement will be available to
you for a period of no less than twenty-four (24) months.

 

Your Responsibilities

You are advised to
promptly review your e-Statement and notify Quontic Bank in person or in
writing immediately of any unauthorized transactions, error, or any other item
of concern. If you allow someone else to access your statement for any reason,
you will still assume full responsibility to notify Quontic Bank of any
transactions of concern. Any and all applicable time periods of which you are
required to notify the Bank of any errors on your account statement will begin
on the e-Statement notification date regardless of when you review your
e-Statement. You may contact the Bank via U.S. mail at 3105 Broadway, Astoria,
NY 11106 or by telephone at 800-908-6600 or by e-mail at [email protected]. You are also
responsible for safeguarding your personal computer, user name and password and
any other confidential account information from unauthorized access.

 

System Requirements

By consenting to this
agreement, you confirm that your Access Device meets the minimum specifications
and requirements necessary to view and retain your electronic documents.

To access your electronic
documents on a mobile device, you will need:

 

To access your electronic
documents on a traditional computer, you will need:

 

Changes to system requirements

We will notify you if our
hardware or software requirements change and whether that change creates a
material risk that you would not be able to access or retain your electronic
documents. Continuing the application process after receiving notice of the
change is the reaffirmation of your consent to this Agreement.

 

 

Maintaining a Valid Email Address

It is your responsibility
to provide us with true, accurate and complete e-mail address, contact, and
other information related to this Agreement and your account(s), and to
maintain and update promptly any changes in this information. You can update
such information (such as your e-mail address) by contacting us via telephone
at 800-908-6600 or by e-mail at [email protected].

It is important that you
maintain a valid email address so that we may contact you regarding your
account. You agree to maintain a valid email address and promptly notify us of
any changes to your email address. You may update your email address during the
application process or by contacting us using the contact information on our
website.

 

Withdrawal of Your Application Consent

You may withdraw your
consent during the application process. By declining or withdrawing this
consent, you will be unable to proceed with the application process.

To withdraw your consent
prior to completing your application, simply exit this session prior to
accepting this Agreement. To withdraw your consent after you have already
submitted your application, you must call us at 800-908-6600 or by e-mail
at [email protected].

Any withdrawal of your
consent will be effective only after we have a reasonable period of time to
process your withdrawal.

 

Withdraw eStatement Consent

You can stop receiving
your eStatements at any time. You may do so by
“Changing Statement Delivery Method” to “paper” by going to your Online Banking
account at www.quonticbank.com and then Account
Statements under the Accounts tab. Any withdrawal of your consent will be
effective only after we have a reasonable period of time to process your
withdrawal.

 

Requesting Paper Copies of Documents Presented Electronically At
Application

You agree and understand
that paper versions of the electronic documents may not be mailed unless you
specifically request it. To request a paper copy of any disclosure, notice, or
other document, contact us by using the contact information on our website.
Copies of disclosures, service agreements, and account agreements will be
mailed at no charge.

 

Obtaining a Paper Copy of Your eStatement

If you would like to
receive a paper copy of your eStatements from Quontic Bank, you may contact any branch of the Bank by any
mode of communication. If you request a paper copy of your statement, a $5.00
fee per statement
 may be assessed.

 

Multiple Access Devices

Your acceptance of this
agreement on one Access Device constitutes your acceptance on all Access
Devices you use. For example, if you view and accept this agreement on a mobile
device, the terms of this Agreement will apply to electronic documents accessed
on a traditional computer (or vice versa).

Additionally, by viewing
and accepting this agreement on any Access Device, you are reasonably
demonstrating your ability to access and view electronic documents and eStatements in the format that the services are provided on
that Access Device and all subsequent Access Devices. If you change Access
Devices (or use multiple Access Devices), it is your responsibility to ensure
that the new Access Device meets the applicable system requirements and that
you are still able to access and view electronic documents and eStatements on the subsequent Access Device. Continuing
your application on other Access Devices is your reaffirmation of this
Agreement.

 

Disclaimer of Warranty and Liability

The Bank will not be
liable if you are unable to gain access to our website or Internet Banking
system due to maintenance, computer failure, interruption in the availability
of our service, delay in operation or transmission, computer virus, or any
other causes out of the Bank’s control. We make no warranties or
representations with respect to any Third Party Service Provider used to access
your email notifications or e-Statements. You agree that the Bank will not be
held liable for losses or damages arising from non-delivery, delayed delivery
or misdelivery of e-mail notifications. 

 

Change in Terms

The Bank reserves the
right to make changes to the terms and conditions of this agreement at any
time. You will be notified of any changes at least thirty (30) days prior to
the effective date if the change(s) would result in an increase of fees or
charges, increase of liability to you, or any increase to your responsibility
for unauthorized transactions, unless prior notice is excused by law or is
necessary to maintain the security of the system. The notice will be sent
either electronically or via U.S. mail to your last known address on file at
the Bank. By agreeing to this Agreement, you will be bound to any revisions to
the terms and conditions.

 

Other Terms and Conditions

This agreement is in
addition to the terms and conditions described in the Terms and Conditions,
Mobile Banking Agreement, Online Banking Agreement and any other documentation
which relates to your account(s) and was given to you at the time you opened
your account(s) and during the lifetime of the account. The Bank also reserves
the right to cancel, discontinue, suspend, or modify e-Statements and may
revert back to paper statements at any time without giving any notice or
reason. By agreeing to the E-Sign Consent Agreement, you will be bound by any
current or future changes to the current regulation, laws and rules applicable
to E-sign. You accept and agree to the terms and conditions in this agreement
and furthermore agree not to use this service for any fraudulent or illegal
activity.

Please contact us by
using the contact information on our website if you have difficulties accessing
or viewing electronic documents on your selected Access Device.

 

Acceptance

You will be asked to
acknowledge your acceptance of these terms and the below electronic document by
checking the box before you are able to submit your application. In doing so,
you are confirming that you meet the system requirements described above, that
you have demonstrated your ability to receive, retain, and view electronic
documents on your Access Device, and that you have an active and valid email
address.

 


NYDIG EXECUTION LLC DISCLOSURE AND CONSENT TO THE USE OF
ELECTRONIC COMMUNICATIONS

Last Updated: September 29, 2020

As part of your
relationship with us, we may be required by law to give you certain information
“in writing.” We may also need to obtain
your signature to perform certain functions, such as opening an account or
enrolling you in our services. If you
prefer, you can choose to both receive information and to provide necessary
signatures related to your relationship with us electronically, instead. In order to do this, we first need your
consent to use electronic records and signatures.

If you would like to
provide your consent, please read this document carefully. By accepting the terms of this agreement, you
affirmatively consent to use of electronic Communications as described in this
consent disclosure. You also consent to
the use of electronic signatures as part of our transactions with you.

In this consent, the
words “we,” “us,” and “our” means New York Digital Investment Group LLC and its
subsidiaries, successors, and assigns. The words “you” and “your” means the
person giving consent.

“Communications” means
each disclosure, notice, agreement, undertaking, fee schedule, periodic
statement, record, document or other information we provide to you, or that you
sign or submit or agree to at our request, in connection with your relationship
with us.

“Product” means each and
every account, product or service we offer, provide to you, or that you apply
for, own, use, administer or access, either now or in the future.

  1. Scope of your
    consent
    . Your consent applies to Communications
    related to all Products we may make accessible or available, or offer to
    you, whether through a website, software application, email, messaging
    services (including text messages), or otherwise.

Your consent includes,
but is not limited to, Communications related to:

●     
Applying for or opening an account or obtaining a Product.

●     
Servicing, maintaining, using, operating or closing of an
account or Product.

●     
Performing transactions or obtaining information in connection
with a Product.

There are special
additional terms for electronic delivery of Tax Statements. See Paragraph 7, below.

 

  1. You must keep
    your email address current.

    To receive electronic Communications you must provide Quontic Bank
    with a valid email address. You
    must notify Quontic Bank immediately of a change to your email
    address. You can make changes by
    emailing [email protected].
  2. System
    Requirements.
    In order to view and retain your
    electronic Communications, you will need:

●     
Internet access and a Current Version of a supported internet
browser;

●     
A Current Version of a PDF reader;

●     
A printer or other storage device;

●     
An active email address; and

●     
A computer or handheld device capable of supporting all of the
requirements described above.

By “Current Version”, we
mean a version of the software currently supported by its publisher. We reserve the right to discontinue support
of a Current Version of software if, in our sole opinion, it suffers from a
security flaw or other flaw that makes it unsuitable for our use of electronic
Communications.

In some cases, you may also need a specific brand or type of device that can
support a particular software application, including an application intended
for particular mobile or handheld devices.
We will tell you when this is the case.
By continuing to use of electronic Communications after such notice, you
reaffirm your consent.

 

If we change these
hardware or software requirements, and that change creates a material risk that
you would not be able to access or retain your electronic Communications, we
will notify you of the revised hardware or software requirements.

 

  1. Additional
    Provisions for Tax Statements
    .
    The terms, conditions and disclosures above apply to the electronic
    delivery of tax documents (“Tax Documents”), including the following
    additional provisions:

●     
You are not required to receive Tax Documents electronically.
However, if you do not elect to receive Tax Documents electronically, or
withdraw your consent at any time, NYDIG will be unable to open an account for
you and/or will close your account.

●     
Your election to receive Tax Documents electronically applies to
any Tax Document which we are legally permitted to provide to you now or at any
time in the future until such time that you withdraw your consent.

●     
Withdrawal of consent to electronic delivery of Tax Documents
will not affect Tax Documents previously provided electronically; such Tax
Documents may continue to be provided electronically for the applicable posting
period.

●     
The electronic delivery of Tax Document may be terminated at any
time by us. Further, we may make certain Tax Documents available electronically
only for a limited time. Currently, the period of time for most Tax Documents
is from January 31st or February 15th, as applicable, of the relevant year
until October 15th of the same year.

●     
If you need to update any information relevant to electronic
delivery of Tax Documents, you may request that such information be updated
through the procedures set forth in the section titled “You must keep your
email address current” above.

●     
A description of the hardware and software required to access,
print, and retain Tax Documents are set forth in the section titled “System
Requirements” above.

 

By accepting the terms of this agreement, you are consenting to
the use of electronic records and signatures in connection with your
relationship with us, and also confirming that:

●     
You have reviewed this
Disclosure and Consent,

●     
You have the hardware and
software described above,

●     
You are able to receive
and review electronic records, and

●     
You have an active email
account and the ability to access and view PDF files.

 

 

© 2020 Quontic Bank Holdings Corp. All rights reserved. Member
FDIC. Equal Housing Lender. NMLS ID: 403503
Primary federal regulator: Office of the Comptroller of the Currency (OCC):
1-800-603-6743 • FDIC: 1-877-275-3342 (1-877-ASKFDIC)

 


Quontic Bank Deposit Agreement and Disclosures

Terms and Conditions Agreement

Please read carefully and
retain it for future reference. By opening an account online, requesting an
account or maintaining an account, you acknowledge that you have reviewed,
understand and agree to be governed by this agreement and any other documents
we give you pertaining to your account(s). This document, along with any other
documents we give you pertaining to your account(s), is a contract that
establishes rules which control your account(s) with us. Please retain it for
future reference. If you open an account online or open or continue to use the
account, you agree to these rules.

You will receive a
separate schedule of rates, qualifying balances, and fees if they are not
included in this document. If you have any questions, please call us at
1-800-908-6600.

This agreement is subject
to applicable federal laws, the laws of the state of New York and other
applicable rules such as the operating letters of the Federal Reserve Banks and
payment processing system rules (except to the extent that this agreement can
and does vary such rules or laws). The body of state and federal law that
governs our relationship with you, however, is too large and complex to be
reproduced here. The purpose of this document is to:

  1. Summarize some laws that apply to
    common transactions;
  2. Establish rules to cover
    transactions or events which the law does not regulate;
  3. Establish rules for certain
    transactions or events which the law regulates but permits variation by
    agreement; and
  4. Give you disclosures of some of
    our policies to which you may be entitled or in which you may be
    interested.

If any provision of this
document is found to be unenforceable according to its terms, all remaining
provisions will continue in full force and effect. We may permit some
variations from our standard agreement, but we must agree to any variation in
writing.

As used in this document
the words “we,” “our,” and “us” mean the financial institution and the words
“you” and “your” mean the account holder(s) and anyone else with the authority
to deposit, withdraw, or exercise control over the funds in the account.
However, this agreement does not intend, and the terms “you” and “your” should
not be interpreted, to expand an individual’s responsibility for an
organization’s liability. If this account is owned by a corporation,
partnership or other organization, individual liability is determined by the
laws generally applicable to that type of organization. The headings in this
document are for convenience or reference only and will not govern the
interpretation of the provisions. Unless it would be inconsistent to do so,
words and phrases used in this document should be construed so the singular
includes the plural and the plural includes the singular.

 

LIABILITY

You agree, for yourself
(and the person or entity you represent if you sign as a representative of
another) to the terms of this account and the schedule of charges. You
authorize us to deduct these charges, without notice to you, directly from the
account balance as accrued. You will pay any additional reasonable charges for
services you request which are not covered by this agreement.

Each of you also agrees
to be jointly and severally (individually) liable for any account shortage resulting
from charges or overdrafts, whether caused by you or another with access to
this account. This liability is due immediately, and can be deducted directly
from the account balance whenever sufficient funds are available.

You have no right to
defer payment of this liability, and you are liable regardless of whether you
signed the item or benefited from the charge or overdraft.

You will be liable for
our costs as well as for our reasonable attorneys’ fees, to the extent
permitted by law, whether incurred as a result of collection or in any other
dispute involving your account. This includes, but is not limited to, disputes
between you and another joint owner; you and an authorized signer or similar
party; or a third party claiming an interest in your account. This also
includes any action that you or a third party takes regarding the account that
causes us, in good faith, to seek the advice of an attorney, whether or not we
become involved in the dispute. All costs and attorneys’ fees can be deducted
from your account when they are incurred, without notice to you.

 

DEPOSITS

We will give only
provisional credit until collection is final for any items, other than cash, we
accept for deposit (including items drawn “on us”). Before settlement of any
item becomes final, we act only as your agent, regardless of the form of
indorsement or lack of indorsement on the item and even though we provide you
provisional credit for the item. We may reverse any provisional credit for
items that are lost, stolen, or returned. Actual credit for deposits of, or
payable in, foreign currency will be at the exchange rate in effect on final
collection in U.S. dollars. We are not responsible for transactions by mail or
outside depository until we actually record them. We will treat and record all
transactions received after our “daily cutoff time” on a business day we are
open, or received on a day we are not open for business, as if initiated on the
next business day that we are open. At our option, we may take an item for
collection rather than for deposit. If we accept a third-party check for
deposit, we may require any third-party indorsers to
verify or guarantee their indorsements, or indorse in our presence.

 

WITHDRAWALS

Generally. Unless clearly
indicated otherwise on the account records, any of you, acting alone, who signs
to open the account or has authority to make withdrawals may withdraw or
transfer all or any part of the account balance at any time. Each of you (until
we receive written notice to the contrary) authorizes each other person who
signs or has authority to make withdrawals to indorse any item payable to you
or your order for deposit to this account or any other transaction with us.

Postdated checks. A
postdated check is one which bears a date later than the date on which the
check is written. We may properly pay and charge your account for a postdated
check even though payment was made before the date of the check, unless we have
received written notice of the postdating in time to have a reasonable
opportunity to act. Because we process checks mechanically, your notice will
not be effective and we will not be liable for failing to honor your notice
unless it precisely identifies the number, date, amount and payee of the item.

Checks and withdrawal
rules. If you do not purchase your check blanks from us, you must be certain
that we approve the check blanks you purchase. We may refuse any withdrawal or
transfer request which you attempt on forms not approved by us or by any method
we do not specifically permit. We may refuse any withdrawal or transfer request
which is greater in number than the frequency permitted, or which is for an
amount greater or less than any withdrawal limitations. We will use the date
the transaction is completed by us (as opposed to the date you initiate it) to
apply the frequency limitations. In addition, we may place limitations on the
account until your identity is verified.

Even if we honor a
nonconforming request, we are not required to do so later. If you violate the
stated transaction limitations (if any), in our discretion we may close your
account or reclassify it as a transaction account. If we reclassify your
account, your account will be subject to the fees and earnings rules of the new
account classification.

If we are presented with
an item drawn against your account that would be a “substitute check,” as
defined by law, but for an error or defect in the item introduced in the
substitute check creation process, you agree that we may pay such item.

See the funds
availability policy disclosure for information about when you can withdraw
funds you deposit. For those accounts to which our funds availability policy
disclosure does not apply, you can ask us when you make a deposit when those
funds will be available for withdrawal. We may determine the amount of
available funds in your account for the purpose of deciding whether to return
an item for insufficient funds at any time between the time we receive the item
and when we return the item or send a notice in lieu of return. We need only
make one determination, but if we choose to make a subsequent determination,
the account balance at the subsequent time will determine whether there are
insufficient available funds.

Overdrafts. You
understand that we may, at our discretion, honor withdrawal requests that
overdraw your account. However, the fact that we may honor withdrawal requests
that overdraw the account balance does not obligate us to do so later. So you
can NOT rely on us to pay overdrafts on your account regardless of how frequently
or under what circumstances we have paid overdrafts on your account in the
past. We can change our practice of paying overdrafts on your account without
notice to you. You can ask us if we have other account services that might be
available to you where we commit to paying overdrafts under certain
circumstances, such as an overdraft protection line-of-credit or a plan to
sweep funds from another account you have with us. You agree that we may charge
fees for overdrafts. For consumer accounts, we will not charge fees for
overdrafts caused by ATM withdrawals or one-time debit card transactions if you
have not opted-in to that service. We may use subsequent deposits, including
direct deposits of social security or other government benefits, to cover such
overdrafts and overdraft fees.

Multiple signatures,
electronic check conversion, & similar transactions. An electronic check
conversion transaction is a transaction where a check or similar item is
converted into an electronic fund transfer as defined in the Electronic Fund
Transfers regulation. In these types of transactions, the check or similar item
is either removed from circulation (truncated) or given back to you. As a
result, we have no opportunity to review the check to examine the signatures on
the item. You agree that, as to these or any items as to which we have no
opportunity to examine the signatures, you waive any requirement of multiple
signatures.

Notice of withdrawal. We
reserve the right to require not less than 7 days’ notice in writing before
each withdrawal from an interest-bearing account other than a time deposit, or
from any other savings account as defined by Regulation D. (The law requires us
to reserve this right, but it is not our general policy to use it.) Withdrawals
from a time account prior to maturity or prior to any notice period may be
restricted and may be subject to penalty. See your notice of penalty for early
withdrawal.

 

OWNERSHIP OF ACCOUNT AND BENEFICIARY

Designation. These rules
apply to this account depending on the form of ownership and beneficiary
designation, if any, specified on the account records. We make no
representations as to the appropriateness or effect of the ownership and
beneficiary designations, except as they determine to whom we pay the account
funds.

Individual account. This
is an account in the name of one person.

Joint account – With
survivorship (and not as Tenants In Common). This is
owned by two or more persons. Deposits and any additions to the account are the
property of the owners as joint tenants with right of survivorship. This means
that we may release the entire account to any owner during the lifetime of all
owners. We may honor withdrawal requests (including checks) from any owner
during the lifetime of all owners. We may be required to release money in the
account to satisfy a judgment against or other valid debt incurred by any
owner. We may honor withdrawal requests (including checks) from any surviving
owner after the death of any owner, and may treat the account as the sole
property of the surviving owner(s). Unless an owner directs us by written
notice not to honor the withdrawal request (including checks) of an owner we
will not be liable for doing so. After we receive such a notice, we may require
written authorization of any or all joint owners for any further payments or
deliveries.

Joint account – No
survivorship (as Tenants In Common). This is owned by
two or more persons, but none of you intend (merely by opening this account) to
create any right of survivorship in any other person. We encourage you to agree
and tell us in writing of the percentage of the deposit contributed by each of
you. This information will not, however, affect the “number of signatures”
necessary for withdrawal.

 

STOP PAYMENTS

Unless otherwise
provided, the rules in this section cover stopping payment of items such as
checks and drafts. Rules for stopping payment of other types of transfers of
funds, such as consumer electronic fund transfers, may be established by law or
our policy. If we have not disclosed these rules to you elsewhere, you may ask
us about those rules.

A stop-payment order must
be given in the manner required by law and must be received in time to give us
a reasonable opportunity to act on it. Because stop-payment orders are handled
by computers, to be effective the order must precisely identify the number,
date and amount of the item, and the payee. We will honor a stop-payment
request by the person who signed the particular item, and, by any other person,
even though such other person did not sign the item.

Generally, if your
stop-payment order is given to us in writing it is effective for six months.
Your order will lapse after that time if you do not renew the order in writing
before the end of the six-month period. If the original stop- payment order was
verbal your stop-payment order will lapse after 14 calendar days if you do not
confirm your order in writing within that time period. We are not obligated to
notify you when a stop-payment order expires. A release of the stop-payment
request may be made only by the person who initiated the stop-payment order.

If you stop payment on an
item and we incur any damages or expenses because of the stop payment, you
agree to indemnify us for those damages or expenses, including attorneys’ fees.
You assign to us all rights against the payee or any other holder of the item.
You agree to cooperate with us in any legal actions that we may take against
such persons. You should be aware that anyone holding the item may be entitled
to enforce payment against you despite the stop-payment order.

 

TELEPHONE TRANSFERS

A telephone transfer of
funds from this account to another account with us, if otherwise arranged for
or permitted, may be made by the same persons and under the same conditions
generally applicable to withdrawals made in writing. Unless a different
limitation is disclosed in writing, we restrict the number of transfers from a
savings account to another account or to third parties, to a maximum of six per
month (less the number of “preauthorized transfers” during the month). Other
account transfer restrictions may be described elsewhere.

 

AMENDMENTS & TERMINATION

We may change any term of
this agreement. Rules governing changes in interest rates are provided
separately in the Truth-in- Savings disclosure or in another document. For
other changes, we will give you reasonable notice in writing or by any other
method permitted by law. We may also close this account at any time upon
reasonable notice to you and tender of the account balance personally or by
mail. Items presented for payment after the account is closed may be
dishonored. When you close your account, you are responsible for leaving enough
money in the account to cover any outstanding items to be paid from the
account. Reasonable notice depends on the circumstances, and in some cases such
as when we cannot verify your identity or we suspect fraud, it might be
reasonable for us to give you notice after the change or account closure
becomes effective. For instance, if we suspect fraudulent activity with respect
to your account, we might immediately freeze or close your account and then
give you notice. You agree to keep us informed of your current address at all
times.

Notice from us to any one
of you is notice to all of you. If we have notified you of a change in any term
of your account and you continue to have your account after the effective date
of the change, you have agreed to the new term(s).

 

STATEMENTS

Your Duty to Report
Unauthorized Signatures, Alterations and Forgeries. You must examine your
statement of account with “reasonable care and promptness.” If you discover (or
reasonably should have discovered) any unauthorized signatures or alterations,
you must promptly notify us of the relevant facts. As between you and us, if
you fail to do either of these duties, you will have to bear the entire loss.
Your loss could be not only with respect to items on the statement but other
items with unauthorized signatures or alterations by the same wrongdoer. We
lose these protections if you establish that we failed to exercise ordinary
care in paying an item with an unauthorized signature or alteration.

You agree that the time
you have to examine your statement and report to us will depend on the
circumstances, but will not, in any circumstance, exceed a total of 14 days
from when the statement is first sent or made available to you.

You further agree that if
you fail to report any unauthorized signatures, alterations or forgeries 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. The limitation
in this paragraph is in addition to that contained in the first paragraph of
this section.

Your Duty to Report Other
Errors. In addition to your duty to review your statements for unauthorized
signatures, alterations and forgeries, you agree to examine your statement with
reasonable promptness for any other error – such as an encoding error. You
agree that the time you have to examine your statement and report to us will
depend on the circumstances.

However, such time period
shall not exceed 60 days. Failure to examine your statement and report any such
errors to us within 60 days of when we first send or make the statement
available precludes you from asserting a claim against us for any such errors on
items identified in that statement and as between you and us the loss will be
entirely yours.

Errors Relating to
Electronic Fund Transfers or Substitute Checks (For consumer accounts only).
For information on errors relating to electronic fund transfers (e.g.,
computer, debit card or ATM transactions) refer to your Electronic Fund
Transfers disclosure and the sections on consumer liability and error
resolution. For information on errors relating to a substitute check you
received, refer to your disclosure entitled Substitute Checks and Your Rights.

 

DIRECT DEPOSITS

If we are required for
any reason to reimburse the federal government for all or any portion of a
benefit payment that was directly deposited into your account, you authorize us
to deduct the amount of our liability to the U.S. Government from the account
or from any other account you have with us, without prior notice and at any
time, except as prohibited by law. We may also use any other legal remedy to
recover the amount of our liability. 

TEMPORARY ACCOUNT AGREEMENT

If this option is
selected, this is a temporary account agreement. Each person who signs to open
the account or has authority to make withdrawals (except as indicated to the
contrary) may transact business on this account. However, we may at some time
in the future restrict or prohibit further use of this account if you fail to
comply with the requirements we have imposed within a reasonable time. 

SET-OFF

You each agree that we
may (when permitted by law) set off the funds in this account against any due
and payable debt you owe us now or in the future, by any of you having the
right of withdrawal, to the extent of such persons’ or legal entity’s right to
withdraw. If the debt arises from a note, “any due and payable debt” includes
the total amount of which we are entitled to demand payment under the terms of
the note at the time we set off, including any balance the due date for which
we properly accelerate under the note.

This right of set-off
does not apply to this account if prohibited by law. For example, the right of
set-off does not apply to this account if: (a) it is an Individual Retirement
Account or similar tax-deferred account, or (b) the debt is created by a
consumer credit transaction under a credit card plan (but this does not affect
our rights under any consensual security interest), or (c) the debtor’s right
of withdrawal only arises in a representative capacity, or (d) social security
or supplemental security income payments are deposited directly into this
account pursuant to an agreement with us which permits such direct deposit
without presentation to you at the time of deposit. We will not be liable for
the dishonor of any check when the dishonor occurs because we set off a debt
against this account. You agree to hold us harmless from any claim arising as a
result of our exercise of our right of set-off. 

CHECK PROCESSING

We process items
mechanically by relying solely on the information encoded in magnetic ink along
the bottom of the items. This means that we do not individually examine all of
your items to determine if the item is properly completed, signed and indorsed
or to determine if it contains any information other than what is encoded in
magnetic ink. You agree that we have not failed to exercise ordinary care
solely because we use our automated system to process items and do not inspect
all items processed in such a manner. Using an automated process helps us keep
costs down for you and all account holders. 

CHECK CASHING

We may charge a fee for
anyone that does not have an account with us who is cashing a check, draft or
other instrument written on your account. We may also require reasonable
identification to cash such a check, draft or other instrument. We can decide
what identification is reasonable under the circumstances and such
identification may be documentary or physical and may include collecting a
thumbprint or fingerprint. 

 

TRUNCATION, SUBSTITUTE CHECKS, & OTHER CHECK IMAGES

If you truncate an
original check and create a substitute check, or other paper or electronic
image of the original check, you warrant that no one will be asked to make
payment on the original check, a substitute check or any other electronic or
paper image, if the payment obligation relating to the original check has already
been paid. You also warrant that any substitute check you create conforms to
the legal requirements and generally accepted specifications for substitute
checks. You agree to retain the original check in conformance with our internal
policy for retaining original checks. You agree to indemnify us for any loss we
may incur as a result of any truncated check transaction you initiate. We can
refuse to accept substitute checks that have not previously been warranted by a
bank or other financial institution in conformance with the Check 21 Act.
Unless specifically stated in a separate agreement between you and us, we do
not have to accept any other electronic or paper image of an original check.

 

REMOTELY CREATED CHECKS

Like any standard check
or draft, a remotely created check (sometimes called a telecheck,
preauthorized draft or demand draft) is a check or draft that can be used to
withdraw money from an account. Unlike a typical check or draft, however, a
remotely created check is not issued by the paying bank and does not contain
the signature of the account owner (or a signature purported to be the
signature of the account owner). In place of a signature, the check usually has
a statement that the owner authorized the check or has the owner’s name typed
or printed on the signature line. For example, if a person provides an account
number in response to a telephone solicitation, the telephone solicitor can use
the account number to issue a remotely created check to withdraw money from
that account.

You warrant and agree to
the following for every remotely created check we receive from you for deposit
or collection: (1) you have received express and verifiable authorization to
create the check in the amount and to the payee that appears on the check; (2)
you will maintain proof of the authorization for at least 2 years from the date
of the authorization, and supply us the proof if we ask; and (3) if a check is
returned you owe us the amount of the check, regardless of when the check is
returned. We may take funds from your account to pay the amount you owe us, and
if there are insufficient funds in your account, you still owe us the remaining
balance.

 

 

UNLAWFUL INTERNET GAMBLING NOTICE

Restricted transactions
as defined in Federal Reserve Regulation GG are prohibited from being processed
through this account or relationship. Restricted transactions generally
include, but are not limited to, those in which credit, electronic fund
transfers, checks, or drafts are knowingly accepted by gambling businesses in
connection with the participation by others in unlawful Internet gambling.

 

ACH & WIRE TRANSFERS

This agreement is subject
to Article 4A of the Uniform Commercial Code – Fund Transfers as adopted in the
state in which you have your account with us. If you originate a fund transfer
and you identify by name and number a beneficiary financial institution, an
intermediary financial institution or a beneficiary, we and every receiving or
beneficiary financial institution may rely on the identifying number to make
payment. We may rely on the number even if it identifies a financial
institution, person or account other than the one named. You agree to be bound
by automated clearing house association rules. These rules provide, among other
things, that payments made to you, or originated by you, are provisional until
final settlement is made through a Federal Reserve Bank or payment is otherwise
made as provided in Article 4A-403(a) of the Uniform Commercial Code. If we do
not receive such payment, we are entitled to a refund from you in the amount
credited to your account and the party originating such payment will not be
considered to have paid the amount so credited. If we receive a payment order
to credit an account you have with us by wire or ACH, we are not required to
give you any notice of the payment order or credit.

 

FACSIMILE SIGNATURES

Unless you make advance
arrangements with us, we have no obligation to honor facsimile signatures on
your checks or other orders. If we do agree to honor items containing facsimile
signatures, you authorize us, at any time, to charge you for all checks,
drafts, or other orders, for the payment of money, that are drawn on us. You
give us this authority regardless of by whom or by what means the facsimile
signature(s) may have been affixed so long as they resemble the facsimile
signature specimen filed with us, and contain the required number of signatures
for this purpose. You must notify us at once if you suspect that your facsimile
signature is being or has been misused.

 

RESTRICTIVE LEGENDS

The automated processing
of the large volume of checks we receive prevents us from inspecting or looking
for special instructions or “restrictive legends” on every check. Examples of
restrictive legends placed on checks are “must be presented within 90 days” or
“not valid for more than $1,000.00.” For this reason, we are not required to
honor any restrictive legend placed on checks you write unless we have agreed
in writing to the restriction. We are not responsible for any losses, claims,
damages, or expenses that result from your placement of these or other special
instructions on your checks.

 

ACCOUNT TRANSFER

This account may not be
transferred or assigned without our prior written consent.

 

INDORSEMENTS

We may accept for deposit
any item payable to you or your order, even if they are not indorsed by you. We
may give cash back to anyone of you. We may supply any missing indorsement(s)
for any item we accept for deposit or collection, and you warrant that all
indorsements are genuine.

To ensure that your check
or share draft is processed without delay, you must indorse it (sign it on the
back) in a specific area. Your entire indorsement (whether a signature or a
stamp) along with any other indorsement information (e.g., additional
indorsements, ID information, driver’s license number, etc.) must fall within 1
1/2″ of the “trailing edge” of a check. Indorsements must be made in blue or
black ink so that they are readable by the automated check processing
equipment.

As you look at the front
of a check, the “trailing edge” is the left edge. When you flip the check-over,
be sure to keep all indorsement information within 1 1/2″ of that edge.

It is important that you
confine the indorsement information to this area since the remaining blank
space will be used by others in the processing of the check to place additional
needed indorsements and information. You agree that you will indemnify, defend,
and hold us harmless for any loss, liability, damage or expense that occurs
because your indorsement, another indorsement, or information you have printed
on the back of the check obscures our indorsement. These indorsement guidelines
apply to both personal and business checks.

 

DEATH OR INCOMPETENCE

You agree to notify us
promptly if any person with a right to withdraw funds from your account(s) dies
or becomes legally incompetent. We may continue to honor your checks, items,
and instructions until: (a) we know of your death or incompetence, and (b) we
have had a reasonable opportunity to act on that knowledge. You agree that we
may pay or certify checks drawn on or before the date of death or legal incompetence
for up to ten (10) days after your death or legal incompetence unless ordered
to stop payment by someone claiming an interest in the account.

 

FIDUCIARY ACCOUNTS

Accounts may be opened by
a person acting in a fiduciary capacity. A fiduciary is someone who is
appointed to act on behalf of and for the benefit of another. This account may
be opened and maintained by a person or persons named as a trustee under a
written trust agreement, or as executors, administrators, or conservators under
court orders. You understand that by merely opening such an account, we are not
acting in the capacity of a trustee in connection with the trust nor do we
undertake any obligation to monitor or enforce the terms of the trust or
letters.

 

CREDIT VERIFICATION

You agree that we may
verify credit and employment history by any necessary means, including
preparation of a credit report by a credit reporting agency.

 

LEGAL ACTIONS AFFECTING YOUR ACCOUNT

If we are served with a
subpoena, restraining order, writ of attachment or execution, levy,
garnishment, search warrant, or similar order relating to your account (termed
“legal action” in this section), we will comply with that legal action. Or, in
our discretion, we may freeze the assets in the account and not allow any
payments out of the account until a final court determination regarding the
legal action. We may do these things even if the legal action involves less
than all of you. In these cases, we will not have any liability to you if there
are insufficient funds to pay your items because we have withdrawn funds from
your account or in any way restricted access to your funds in accordance with
the legal action. Any fees or expenses we incur in responding to any legal
action (including, without limitation, attorneys’ fees and our internal
expenses) may be charged against your account. The list of fees applicable to
your account(s) provided elsewhere may specify additional fees that we may
charge for certain legal actions.

 

SECURITY

It is your responsibility
to protect the account numbers and electronic access devices (e.g., an ATM
card) we provide you for your account(s). Do not discuss, compare, or share
information about your account number(s) with anyone unless you are willing to
give them full use of your money. An account number can be used by thieves to
encode your number on a false demand draft which looks like and functions like
an authorized check. If you furnish your access device and grant actual
authority to make transfers to another person (a family member or coworker, for
example) who then exceeds that authority, you are liable for the transfers
unless we have been notified that transfers by that person are no longer
authorized.

Your account number can
also be used to electronically remove money from your account. If you provide
your account number in response to a telephone solicitation for the purpose of
making a transfer (to purchase a service or merchandise, for example), payment
can be made from your account even though you did not contact us directly and
order the payment.

You must also take
precaution in safeguarding your blank checks. Notify us at once if you believe
your checks have been lost or stolen. If you are negligent in safeguarding your
checks we will not be responsible for any losses you incur due to an alteration
or forgery if we have paid the check in good faith and in accordance with
reasonable commercial standards.

 

TELEPHONIC INSTRUCTIONS

Unless required by law or
we have agreed otherwise in writing, we are not required to act upon
instructions you give us via facsimile transmission or leave by voicemail or on
a telephone answering machine.

 

CLAIM OF LOSS

If you claim a credit or
refund because of a forgery, alteration, or any other unauthorized withdrawal,
you agree to cooperate with us in the investigation of the loss, including
giving us an affidavit containing whatever reasonable information we require
concerning your account, the transaction, and the circumstances surrounding the
loss. You will notify law enforcement authorities of any criminal act related
to the claim of lost, missing, or stolen checks or unauthorized withdrawals. We
will have a reasonable period of time to investigate the facts and
circumstances surrounding any claim of loss.

Unless we have acted in
bad faith, we will not be liable for special or consequential damages,
including loss of profits or opportunity, or for attorneys’ fees incurred by
you. You agree that you will not waive any rights you have to recover your loss
against anyone who is obligated to repay, insure, or otherwise reimburse you
for your loss.

You will pursue your
rights or, at our option, assign them to us so that we may pursue them. Our
liability will be reduced by the amount you recover or are entitled to recover
from these other sources.

 

EARLY WITHDRAWAL PENALTIES (and involuntary withdrawals)

We may impose early
withdrawal penalties on a withdrawal from a time account even if you don’t
initiate the withdrawal. For instance, the early withdrawal penalty may be
imposed if the withdrawal is caused by our setoff against funds in the account
or as a result of an attachment or other legal process. We may close your
account and impose the early withdrawal penalty on the entire account balance
in the event of a partial early withdrawal. See your notice of penalty for
early withdrawals for additional information.

 

ADDRESS OR NAME CHANGES

You are responsible for
notifying us of any change in your address or your name. Unless we agree
otherwise, change of address or name must be made in writing by at least one of
the account holders. Informing us of your address or name change on a check
reorder form is not sufficient. We will attempt to communicate with you only by
use of the most recent address you have provided to us. If provided elsewhere,
we may impose a service fee if we attempt to locate you.

 

RESOLVING ACCOUNT DISPUTES

We may place an
administrative hold on the funds in your account (refuse payment or withdrawal
of the funds) if it becomes subject to a claim adverse to (1) your own
interest; (2) others claiming an interest as survivors or beneficiaries of your
account; or (3) a claim arising by operation of law. The hold may be placed for
such period of time as we believe reasonably necessary to allow a legal
proceeding to determine the merits of the claim or until we receive evidence
satisfactory to us that the dispute has been resolved. We will not be liable
for any items that are dishonored as a consequence of placing a hold on funds
in your account for these reasons.

 

WAIVER OF NOTICES

You waive any notice of
non- payment, dishonor or protest regarding any items credited to or charged
against your account.

 

ADDITIONAL TERMS

Fiduciary Account
includes but not limited to Escrow, Trusts, and Custodial accounts.

If additional review is
required, International ACH transactions will not be available to you until it
passes final verification.


Funds Availability Policy

 

PURPOSE OF THIS DISCLOSURE

The information here
describes our policy of holding deposited items in a transaction account before
funds are made available to you for withdrawal. This is our Funds Availability
Policy. In summary, our policy is to make your funds available on the next
Business Day after the day of deposit. Please refer to the section DETERMINING
THE AVAILABILITY OF YOUR DEPOSIT for the complete policy.

For the purposes of this
disclosure, the terms “you”/”your” refer to the customer and the terms
“our”/”we”/”us” refer to QUONTIC BANK.

Generally, transaction
accounts are accounts which would permit an unlimited number of payments by
check to third persons, and also an unlimited number of telephonic and
preauthorized transfers to third persons or other accounts you may have with
us.

 

DETERMINING THE AVAILABILITY OF YOUR DEPOSIT

The length of the delay
varies depending on the type of deposit and is explained below. When we delay
your ability to withdraw funds from a deposit, you may not withdraw the funds
in cash, and we will not pay checks you have written on your account by using
these funds. Even after we have made funds available to you and you have
withdrawn the funds, you are still responsible for checks you deposit that are
returned to us unpaid and for any other problems involving your deposit.

When we delay your
ability to withdraw funds, the length of the delay is counted in Business Days
from the day of your deposit. The term “Business Day” means any day other than
a Saturday, Sunday or federally declared legal holiday, and the term “Banking
Day” means that part of any Business Day on which we are open to the public for
carrying on substantially all of our banking functions.

If you make a deposit
before 5:00 p.m. on a Business Day that we are open, we will consider that day
to be the day of your deposit. However, if you make a deposit after 5:00 p.m.
or on a day that we are not open, we will consider the deposit made on the next
Business Day we are open.

 

AVAILABILITY SCHEDULE

Same day availability. Funds from
electronic direct deposits to your account will be available on the day we
receive the deposit. In addition, funds will also be available on the day of
deposit from deposits of:

 

Next-day availability. Funds are available
on the first Business Day after the day of your deposit from deposits of:

 

*If you do not make your
deposit in person to one of our employees (for example, if you mail the
deposit), funds from these deposits will be available no later than the next
Business Day after the day of your deposit. Other Check Deposits. Funds from
all other check deposits will be available on the next Business Day after the
day of your deposit. The first $225.00 of your deposits, however, will be
available on the first Business Day after the day of deposit.

CASE-BY-CASE DELAYS — In
some cases, funds from deposits of local checks may not be made available to
you according to the preceding schedule. Funds may not be available until the
second business day after the day of your deposit. The first $225.00 of your
deposit, however, will be available on the first business day. If we are not
going to make all of the funds from your deposit available according to the
preceding schedule, we will notify you at the time you make your deposit. We
will also tell you when the funds will be available. If your deposit is not
made directly to one of our employees, or if we decide to take this action
after you have left the premises, we will mail you the notice by the next
business day after we receive your deposit. If you will need the funds from the
deposit right away, you should ask us when the funds will be available.

 

HOLDS ON OTHER FUNDS FOR CHECK CASHING

If we cash a check for
you that is drawn on another financial institution, we may withhold the
availability of a corresponding amount of funds that are already in your
account. Those funds will be available at the time funds from the check we
cashed would have been available if you had deposited it.

 

HOLDS ON OTHER FUNDS IN ANOTHER ACCOUNT

If we accept for deposit
a check that is drawn on another financial institution, we may make funds from
the deposit available for withdrawal immediately but delay your availability to
withdraw a corresponding amount of funds that you have on deposit in another
account with us. The funds in the other account would then not be available for
withdrawal until the time periods that are described elsewhere in this
disclosure for the type of check that you deposited.

 

LONGER DELAYS MAY APPLY

Funds you deposit by
check may be delayed for a longer period under the following circumstances:

  1. if we believe a check you deposit
    will not be paid;
  2. if you deposit checks totaling
    more than $5,525 on any one day;
  3. if you redeposit a check that has
    been returned unpaid;
  4. if you have overdrawn your account
    repeatedly in the last six months; or
  5. if an emergency condition arises
    that would not enable us to make the funds available to you, such as the
    failure of computer or communications equipment.

We will notify you if we
delay your availability to withdraw funds for any of these reasons, and we will
tell you when the funds will be available. They will generally be available no
later than the fourth Business Day after the day of your deposit. If you will
need the funds from a deposit right away, you should ask us when the funds will
be available.

 

DEPOSITS AT AUTOMATED TELLER MACHINES

If you make a deposit at
an automated teller machine (ATM) that is owned and operated by us before 4:00
p.m. on a Business Day that we are open, we will consider the deposit made that
day. However, if you make a deposit at an ATM that is owned and operated by us
after 4:00 p.m. or on a day that we are not open, we will consider the deposit
made on the next Business Day we are open.

 

ADDITIONAL ATM INFORMATION

ATM deposits are only
accepted at our Astoria Branch location. The first $225.00 of any deposit made
will be available on the business day we receive the deposit. Funds from the
cash deposits will be available on the first business day after the day of
deposit. Funds from check deposits will be available on the second business day
after the day of deposit.

 

ADDITIONAL DEPOSIT INFORMATION – NEW ACCOUNT RULES

Special rules apply
during the first 30 days after an account is opened. An account is not new if
the customer has had another transaction account at the bank for more than 30
days. If the customer has had authorization only to sign on a corporate account
and then opens a new consumer account, it is considered a new account for
purposes of Regulation CC.

Funds from cash will be
available on the first business day after the day of deposit. Funds from a
day’s total deposit of cashier’s, certified, teller’s, travelers, and federal,
state, and local government checks will be available on the first business day
after the day of deposit if the checks are payable to you, deposited into your
account, the deposit is made in person to an employee of QUONTIC BANK and you
request next day availability from the teller or customer service
representative.*

Funds from all other
check deposits for new accounts will have $225.00 available on the first
business day after the day of deposit and the balance on the ninth business day
after the day of deposit. Subsequent deposits will be available under the terms
as otherwise stated in this Funds Availability Policy for accounts that are not
new.

 


Check 21

Important Information About Your Checking Account

 

Substitute checks & your rights

 

What is a substitute
check?

To make check processing
faster, federal law permits banks to replace original checks with “substitute
checks.” These checks are similar in size to original checks with a slightly
reduced image of the front and back of the original check. The front of a
substitute check states: “This is a legal copy of your check. You can use it
the same way you would use the original check.” You may use a substitute check
as proof of payment just like the original check.

Some or all of the checks
that you receive back from us may be substitute checks. This notice describes
rights you have when you receive substitute checks from us. The rights in this
notice do not apply to original checks or to electronic debits to your account.
However, you have rights under other law with respect to those transactions.

 

What are my rights
regarding substitute checks?

In certain cases, federal
law provides a special procedure that allows you to request a refund for losses
you suffer if a substitute check is posted to your account (for example, if you
think that we withdrew the wrong amount from your account or that we withdrew
money from your account more than once for the same check). The losses you may
attempt to recover under this procedure may include the amount that was
withdrawn from your account and fees that were charged as a result of the
withdrawal (for example, bounced check fees).

The amount of your refund
under this procedure is limited to the amount of your loss or the amount of the
substitute check, whichever is less. You also are entitled to interest on the
amount of your refund if your account is an interest-bearing account. If your
loss exceeds the amount of the substitute check, you may be able to recover
additional amounts under other law.

If you use this
procedure, you may receive up to$2,500.00 of your refund (plus interest if your
account earns interest) within 10 business days after we received your claim
and the remainder of your refund (plus interest if your account earns interest)
not later than 45 calendar days after we received your claim.

We may reverse the refund
(including any interest on the refund) if we later are able to demonstrate that
the substitute check was correctly posted to your account.

 

How do I make a claim for
a refund?

If you believe that you
have suffered a loss relating to a substitute check that you received and that
was posted to your account, please contact us at:

Quontic Bank
3105 Broadway
Astoria, NY 11106
1-800-908-6600
[email protected]

You must contact us
within 40 calendar days of the date that we mailed (or otherwise delivered by a
means to which you agreed) the substitute check in question or the account
statement showing that the substitute check was posted to your account,
whichever is later. We will extend this time period if you were not able to
make a timely claim because of extraordinary circumstances.

Your claim must include:

 

Such as the check number,
the name of the person to whom you wrote the check, and/or the amount of the
check.


 

Electronic Fund Transfers

 

YOUR RIGHTS AND RESPONSIBILITIES

The Electronic Fund Transfers
we are capable of handling for consumers are indicated below, some of which may
not apply to your account. Some of these may not be available at all terminals.
Please read this disclosure carefully because it tells you your rights and
obligations for these transactions. You should keep this notice for future
reference.

 

TYPES OF TRANSFERS, FREQUENCY AND DOLLAR LIMITATIONS

 

(a)
Prearranged transfers 

 

(b) ATM
transfers

You may access your
account(s) by ATM using your debit or ATM card and personal identification
number to:

 

(c)
Point-of-sale transactions

Using your card you may
access your checking account (s) to do the following:

 

(d)
Computer transfers

You may access your
account(s) by computer by online banking (OLB) and using your OLB credentials
to:

 

(e)
Mobile banking transfers

You may access your
account(s) by Web-enabled cell phone by Quontic Mobile application and using
your online banking credentials to:

  1. Transfer funds from checking to
    savings
  2. Transfer funds from savings to
    checking
  3. Get checking account(s)
    information
  4. Get savings account(s) information
  5. You may be charged access fees by
    your cell phone provider based on your individual plan. Web access is
    needed to use this service. Check with your cell phone provider for
    details on specific fees and charges.

 

(f)
Electronic Fund Transfers initiated by third parties

You may authorize a third
party to initiate electronic fund transfers between your account and the third
party’s account. These transfers to make or receive payment may be one-time
occurrences or may recur as directed by you. These transfers may use the
Automated Clearing House (ACH) or other payments network. Your authorization to
the third party to make these transfers can occur in a number of ways. For
example, your authorization to convert a check to an electronic fund transfer
or to electronically pay a returned check charge can occur when a merchant
provides you with notice and you go forward with the transaction (typically, at
the point of purchase, a merchant will post a sign and print the notice on a
receipt). In all cases, these third party transfers will require you to provide
the third party with your account number and financial institution information.
This information can be found on your check as well as on a deposit or
withdrawal slip. Thus, you should only provide your financial institution and
account information (whether over the phone, the Internet, or via some other
method) to trusted third parties whom you have authorized to initiate these
electronic fund transfers.

 

GENERAL LIMITATIONS

In addition to those
limitations on transfers elsewhere described, if any, the following limitations
apply:

 

FEES

We do not charge for
Electronic Funds Transfers.

ATM Operator/Network Fees
– When you use an ATM not owned by us, you may be charged a fee by the ATM
operator or any network used (and you may be charged a fee for a balance
inquiry even if you do not complete a fund transfer).

 

DOCUMENTATION

a) Terminal transfers

You can get a receipt at
the time you make a transfer to or from your account using a(n) automated
teller machine or point-of-sale terminal. You may not get a receipt if the
amount of the transfer is $15 or less.

 

b) Preauthorized credits

If you have arranged to
have direct deposits made to your account at least once every 60 days from the
same person or company, you can call us at the telephone number listed below to
find out whether or not the deposit has been made.

 

PREAUTHORIZED PAYMENTS

a) Right to stop payment
and procedure for doing so

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 or write us at the
telephone number or address listed in this disclosure, in time for us to
receive your request 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 14 days after you call.

We charge $20.00 for each
stop payment.

 

b) Notice of varying
amounts

If these regular payments
may vary in amount, the person you are going to pay will tell you, 10 days
before each payment, when it will be made and how much it will be. (You may
choose instead to get this notice only when the payment would differ by more
than a certain amount from the previous payment, or when the amount would fall
outside certain limits that you set.)

 

c) Liability for failure
to stop payment of the preauthorized transfer.

If you order us to stop
one of these payments 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.

 

FINANCIAL INSTITUTION’S LIABILITY

Liability for failure to
make transfers

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,
there are some exceptions. We will not be liable, for instance:

 

CONFIDENTIALITY

We will disclose
information to third parties about your account or the transfers you make:

  1. (1) where it is necessary for
    completing transfers; or
  2. (2) in order to verify the
    existence and condition of your account for a third party, such as a
    credit bureau or merchant; or
  3. (3) in order to comply with
    government agency or court orders; or
  4. (4) if you give us written
    permission.

 

UNAUTHORIZED TRANSFERS

 

a) Consumer liability

Tell us at once if you
believe your card and/or code has been lost or stolen, or if you believe that
an electronic fund transfer has been made without your permission using
information from your check. Telephoning is the best way of keeping your
possible losses down. You could lose all the money in your account (plus your
maximum overdraft line of credit). If you tell us within 2 business days after
you learn of the loss or theft of your card and/or code, you can lose no more
than $50 if someone used your card and/or code without your permission. Also,
if you do NOT tell us within 2 business days after you learn of the loss or
theft of your card and/or code, and we can prove we could have stopped someone
from using your card and/or code without your permission 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 card, code or other means, tell us at
once. If you do not tell us within 60 days after the statement was mailed to
you, you may not get back any money you lost after the 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 period.

CONSUMER LIABILITY FOR
UNAUTHORIZED TRANSACTIONS INVOLVING MASTERCARD® DEBIT CARD. The limitations on
your liability for unauthorized transactions described above generally apply to
all electronic fund transfers. However, different limitations apply to certain transactions
involving your card with the branded card. If you promptly notify us about an
unauthorized transaction involving your card and the unauthorized transaction
took place on your Mastercard® branded card, including any PIN-based ATM or
Pont Of Sale transactions, zero liability will be imposed on you for the
unauthorized transaction. In order to qualify for the zero liability
protection, you must have exercised reasonable care in safeguarding your card
from the risk of loss or theft and, upon becoming aware of such loss or theft,
promptly reported the loss or theft to us. If the conditions set forth above
have not been met, you may be liable for unauthorized transactions to the
extent allowed under applicable law. Mastercard ® is a registered trademark of
Mastercard International Incorporated.

An account is considered
a new account for 30 days after the first deposit is made if you are a new
customer.

We will tell you the
results within three 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.

 

b) Contact in event of
unauthorized transfer

If you believe your card
and/or code has been lost or stolen, call or write us at the telephone number
or address listed at the end of this disclosure. You should also call the
number or write to the address listed at the end of this disclosure if you
believe a transfer has been made using the information from your check without
your permission.

 

ERROR RESOLUTION NOTICE

In Case of Errors or
Questions About Your Electronic Transfers, Call or Write us at the telephone
number or address listed below, as soon as you can, 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 60 days after we
sent the FIRST statement on which the problem or error appeared.

  1. Tell us your name and account
    number (if any).
  2. 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.
  3. Tell us the dollar amount of the
    suspected error.

If you tell us orally, we
may require that you send us your complaint or question in writing within 10
business days.

We will determine whether
an error occurred within 10 business days (20 business days if the transfer
involved a new account) after we hear from you and will correct any error
promptly. If we need more time, however, we may take up to 45 days (90 days if
the transfer involved a new account, a point-of-sale transaction, or a
foreign-initiated transfer) to investigate your complaint or question. If we
decide to do this, we will credit your account within 10 business days (20
business days if the transfer involved a new account) 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 ask you to put your complaint or
question in writing and we do not receive it within 10 business days, we may
not credit your account. An account is considered a new account for 30 days
after the first deposit is made if you are a new customer.

We will tell you the
results within three business days after completing our investigation. It 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.

Point of Sale
If you perform a transaction with the Mastercard logo in a currency other than
U.S. dollars, Mastercard International Inc. will convert the charge into a US
dollar amount.

 

CONTACT INFORMATION

Address
Astoria Branch
3105 Broadway
Astoria, New York 11106

Hours
Monday – Friday 8:30am – 5pm
Friday 8:30am – 6pm
Not including bank holidays

Phone Number: 1-800-908-6600

Email: [email protected]

 


Quontic Bank Privacy Policy

 

Facts

What
Does Quontic Bank Do With Your Personal Information?

Why?

Financial companies choose how they share your personal
information. Federal law gives consumers the right to do some but not all
sharing. Federal law also requires us to tell you how we collect, share and
protect your personal information. Please read this notice carefully to
understand what we do.

What?

The types of personal information we collect and share depend
on the product or service you have with us. This information can include:

  • Social security number &
    income
  • Account balances & overdraft
    history
  • Transaction history &
    payment history

When you are no longer our customer, we continue to share your
information as described in this notice.

How?

All financial companies need to share customers’ personal
information to run their everyday business. In the section below, we list the
reasons financial companies can share their customers’ personal information;
the reasons Quontic Bank chooses to share; and whether you can limit this
sharing.

 

Reasons
We Can Share Your Personal Information

Does
Quontic Bank Share?

Can
You Limit This Sharing?

For our everyday business purposes—such as to process
your transactions, maintain your account(s), respond to court orders and
legal investigations, or report to credit bureaus.

YES

NO

For our marketing purposes—to offer our products
and services to you

YES

NO

For joint marketing with other financial
companies

NO

We do not share

For our affiliates’ everyday business
purposes
—information
about your transactions and experiences

NO

We do not share

For our affiliates’ everyday business
purposes
—information
about your creditworthiness

NO

We do not share

For non-affiliates to market to you

NO

We do not share





WHAT WE DO

How does Quontic Bank
protect my personal information?

To protect your
personal information from unauthorized access and use, we use security measures
that comply with federal law. These measures include computer safeguards and
secured files and buildings.

How does Quontic Bank
collect my personal information?

We collect your
personal information, for example, when you:

  • Open an account or deposit money
  • Pay your bills or apply for a
    loan
  • Use your credit or debit card

We also collect your personal information from others, such as
credit bureaus, affiliates, or other companies.

Why can’t I limit all sharing?

Federal law gives you the right to limit only Sharing for
affiliates’ everyday business purposes—information about your
creditworthiness

  • Sharing for affiliates’ everyday
    business purposes—information about your creditworthiness
  • Affiliates from using your
    information to market to you
  • Sharing for non-affiliates to
    market to you

State laws and individual companies may give you additional
rights to limit sharing





DEFINITIONS

Affiliates

Companies related by
common ownership or control. They can be financial and non-financial
companies. Quontic Bank does not share with our affiliates.

Non-affiliates

Companies not related
by common ownership or control. They can be financial and non-financial
companies. Quontic Bank does not share with non-affiliates so they can market
to you.

Joint marketing

A formal agreement
between non-affiliated financial companies that together market financial
products or services to you. Quontic Bank does not jointly market.






 

Truth-In-Savings Disclosure

 

COMMON FEATURES FOR ALL ACCOUNTS

Rates and Fees. Please refer to our
separate Schedule of Fees for additional information about fees and charges.
Please refer to our separate Rate Sheet for current interest rate and annual
percentage yield information (“APY). The Rate Sheet and Schedule of Fees are
incorporated as part of this disclosure and link provided on this application
submission page.

Our rights to terminate
your account.
 We
may close your account at any time. We will notify you if we do so. We may
refuse to pay any check presented to us for payment after our notice.

Additional information
regarding your account. .
The below disclosures
are for personal accounts. Personal means an account opened in the name of one
person only or more than one person in joint tenancy. If you have any
questions, please feel free to call us at (800) 908-6600.

Note. Current rates may
also be obtained by calling us at (800) 908-6600.

 

BITCOIN REWARDS CHECKING ACCOUNT[1]

(Only available to residents of Alabama,
Arkansas, California, Maryland, Massachusetts, Missouri, Montana, New York, Pennsylvania,
Utah, Wisconsin, and Wyoming)

BITCOIN
REWARDS CHECKING ACCOUNT LIMITATIONS. This account must be held by a natural
person for personal, family, or household purposes. Each account must be an
individual account in the name of one person. No joint accounts are available
and only the individual account owner can access the account and be issued a
debit card.

INTEREST
RATE INFORMATION. This is a personal non-interest bearing account.

MINIMUM
BALANCE REQUIREMENTS. You must deposit $500.00 to open a Bitcoin Rewards
Checking Account. No minimum daily balance is required to earn Bitcoin rewards
and the Bank does not charge a maintenance fee for a Bitcoin Rewards Checking
Account.

BITCOIN
REWARD. Subject to the separate NYDIG Account Requirements and the NYDIG User
Agreement, Qualifying POS Debit Card Transactions shall receive Bitcoin Rewards
at the U.S. dollar value of 1.50% on all Qualifying POS Debit Card Transactions
that post and settle to the Bitcoin Rewards Checking Account during the prior
monthly statement cycle. No Bitcoin Rewards will be paid if the Qualifying POS
Debit Card Transaction requirements are not met or if the NYDIG Account
Requirements are not met.

 

Quontic
will provide funds to NYDIG in order for NYDIG to deliver Bitcoin Rewards to
your NYDIG Account. After Quontic provides funds to NYDIG, Bitcoin Rewards will
be credited to your NYDIG Account by NYDIG within five (5) business days
following the end of each monthly statement cycle, based on the CME CF Bitcoin
Reference Rate as of 4:00 P.M. London Time on the last business day of that
month.

 

QUALIFYING
POINT OF SALE DEBIT CARD TRANSACTION REQUIREMENTS. Only a debit card
transaction processed by a merchant and received by the Bank as a POS purchase
transaction will be considered a Qualifying POS Debit Card Transaction. The
Bank cannot control how merchants choose to classify a transaction. The Bank
cannot guarantee that a transaction will qualify.

 

The
Bank reserves the right to determine if a transaction was a Qualifying POS
Debit Card Transaction. Please note that a POS debit card transaction MUST post
and settle on your account to be a Qualifying POS Debit Card Transaction.
Transactions may NOT be in a pending state to be a Qualifying POS Debit Card
Transaction. Transactions may take one or more banking days from the date the
transaction was made to post and settle on your account.

Transactions
that are reversed due to a charge back or dispute with a merchant are excluded
from eligibility as a Qualifying POS Debit Card Transaction. The Bank reserves the right to offset any
Bitcoin Reward posted to your Bitcoin Rewards Checking Account based on any
such transaction reversal or chargeback.

The
following are not Qualifying POS Debit Card Transactions and do not
count toward earning Bitcoin Rewards: ATM-processed transactions; transfers
between accounts; purchases made with debit cards not issued by the Bank; cash
over portions of POS transactions; Peer-to-Peer (P2P) payments (such as Apple
Pay[2] Cash);
loan payments or account funding made with your debit card and purchases made
using third-party payment accounts (services such as Venmo® and PayPal™, who
also provide P2P payments).

 

ACCOUNT
CLOSURE/MODIFICATION. If your Bitcoin Rewards Checking Account is closed for
any reason, you will forfeit any Bitcoin Rewards that have not been credited to
your NYDIG Account as of the closure date of the Bitcoin Rewards Checking
Account and no further Bitcoin Rewards will accrue to either your Bitcoin
Rewards Checking Account or NYDIG Account after closure. If your Bitcoin
Rewards Checking Account is closed for any reason, NYDIG will liquidate the
Bitcoin balance in your NYDIG Account based on the CME CF Bitcoin Reference
Rate within one (1) business day, NYDIG will close your NYDIG Account, and the
U.S. dollar proceeds will be delivered to you.

 

We
reserve the right to modify and/or alter at our discretion the Qualifying POS
Debit Card Transaction Requirements, the NYDIG Account Requirements, the
Bitcoin Reward amount, and/or the percentage of Bitcoin Rewards applicable at
any time after your account is open.

 

PROCESSING
ORDER. All credit transactions are processed first. Debits or withdrawals from
your account will be processed as follows: electronic items such as ATM and Preauthorized
transactions, then checks. The items are processed from highest to lowest
within each category.

 

BITCOIN
REWARDS CHECKING ACCOUNT FEES AND CHARGES. The Bank will not charge a fee for
opening or maintaining a Bitcoin Rewards Checking Account or for earning any
Bitcoin Rewards. However, the receipt and redemption of Bitcoin Rewards and the
use of the NYDIG Account is subject to and governed by the NYDIG Account
Requirements and all terms and limitations set forth in the NYDIG User
Agreement. Please see the NYDIG Account
Requirements and the NYDIG User Agreement for more information.

 

Please
refer to the Bank’s fee schedule provided to you with this TISA Disclosure for
additional information about fees or charges associated with your Bitcoin
Rewards Checking Account. The Bank’s fee schedule will be provided to you at
the time you open a Bitcoin Rewards Checking Account, periodically when fees or
charges change, and/or upon request.

BITCOIN
REWARDS CHECKING ACCOUNT TRANSACTION LIMITATIONS. No transaction limitations
apply to the Bitcoin Rewards Checking Account. However, the receipt and
redemption of the Bitcoin Rewards and use of the NYDIG Account are subject to
and governed by the NYDIG Account Requirements and the terms and limitations
set forth in the NYDIG User Agreement, including, but not limited to,
prohibitions on the transfer of Bitcoin Rewards or U.S. Dollars from your NYDIG
Account to third parties or the withdrawal of Bitcoin Rewards to yourself or
another custodian. Please see the
separate NYDIG Account Requirements and the NYDIG User Agreement for more information.

 

NYDIG
ACCOUNT REQUIREMENTS. In addition to the
terms and limitations applicable to the Bitcoin Rewards Checking Account, the
receipt and redemption of Bitcoin Rewards and use of the NYDIG Account are
subject to the terms, conditions, and limitations set forth herein and in the
NYDIG User Agreement, which terms are incorporated by reference herein.

QUALIFICATION
REQUIREMENTS TO RECEIVE BITCOIN REWARDS.
In addition to opening a Bitcoin Rewards Checking Account with the Bank,
you must also open and maintain a NYDIG Account with NYDIG in order to receive
the Bitcoin Rewards. All transactions from the NYDIG Account, including the
deposit, sale, and redemption of any Bitcoin Rewards, are subject to and
governed by the separate terms and conditions of the NYDIG User Agreement
establishing the NYDIG Account.

 

REDEEMING
BITCOIN REWARDS. Subject to the terms
and conditions of the NYDIG User Agreement, you may request a redemption of the
Bitcoin Rewards indicated on the most recent monthly statement issued for your
Bitcoin Rewards Checking Account by submitting the request using the Bitcoin
Rewards Redemption form, found in the Online Banking website. You can call the
customer support line at
1-888-622-5208, which the Bank jointly operates with NYDIG, for
additional information . Any redemption request must request the redemption of
ALL the Bitcoin Rewards indicated on the most recent monthly statement; no
requests for redemption of less than all of the Bitcoin Rewards are permitted.
All redemption requests must be received at least five (5) business days prior
to the end of any given monthly statement cycle. After you request the redemption of all the
Bitcoin Rewards in your NYDIG Account, you may not cancel the redemption
request at any time.

 

NYDIG
will notify you of whether your redemption request has been accepted or
rejected pursuant to the NYDIG User Agreement within three (3) business days of
NYDIG’s receipt of the request. If your redemption request is accepted by
NYDIG, and regardless of the date requested, the redemption will be executed
based on the CME CF Bitcoin Reference Rate as of 4:00 P.M. London Time on the
last business day of that month. The proceeds of a redemption, less a fee of 2%
of the proceeds (Redemption Fee), will be delivered to your Bitcoin Rewards
Checking Account within five (5) business days of execution of the
redemption.

 

Please
note that, due to significant fluctuations in the price of Bitcoin and because
the redemption will be executed on the last business day of the month
regardless of when requested, your Bitcoin Rewards may be redeemed at a price
that is significantly lower than the price of Bitcoin at the time you make a
redemption request.

 

NYDIG
ACCOUNT FEES AND CHARGES. There is no time requirement associated with your
NYDIG Account in order to receive Bitcoin Rewards, and there is no minimum
balance required to receive Bitcoin Rewards from your Bitcoin Rewards Checking
Account. You will not be charged a fee for opening or maintaining a NYDIG
Account or for receiving any Bitcoin Rewards.

For
redemptions, your NYDIG Account will be charged a Redemption Fee of 2% of the
U.S. dollar proceeds of any Bitcoin Reward redemption. Pursuant to the NYDIG
User Agreement, NYDIG may change the amount of the Redemption Fee upon 30 days’
prior notice to you.

 

NYDIG
TRANSACTION LIMITATIONS. You may only request a Bitcoin Reward redemption once
per monthly statement cycle. Each redemption request must request a redemption
of ALL the Bitcoin Rewards indicated on the most recent Bitcoin Rewards
Checking Account monthly statement; no requests for redemption of less than all
of the Bitcoin Rewards are permitted.

 

UNCREDITED
BITCOIN. In the event that NYDIG is unable to distribute purchased Bitcoin for
an extended period of time, as determined by the Bank in its sole discretion,
and in lieu of any Bitcoin Rewards earned during that time period, the Bank
will distribute the U.S. dollar equivalent of the Bitcoin Rewards into your
Bitcoin Rewards Checking Account.

 

NYDIG
ACCOUNT CLOSURE/MODIFICATION. Upon closure of your Bitcoin Rewards Checking
Account for any reason, NYDIG will liquidate the Bitcoin balance in your NYDIG
Account based on the CME CF Bitcoin Reference Rate within one (1) business day,
NYDIG will close your NYDIG Account, and the U.S. dollar proceeds will be
delivered to you. You will forfeit any Bitcoin Rewards that have not been
credited to your NYDIG Account prior to account closure.

 

Any
modification and/or alteration of the terms of the NYDIG Account are subject to
and governed by the NYDIG User Agreement. As related to the NYDIG Account, in
the event of a conflict between the terms of this document and the NYDIG User
Agreement (or any portion thereof), the terms of the NYDIG User Agreement shall
prevail. NYDIG reserves the right to close the NYDIG Account pursuant to the
terms of the NYDIG User Agreement.

 

If
NYDIG is unable to fulfill its obligations, the Bank will either discontinue
the Bitcoin Rewards program or identify a suitable new provider in place of NYDIG.
In the event an alternative provider cannot be identified (in the Bank’s sole
discretion) and the Bitcoin Rewards program is discontinued, the Bitcoin
balance in your NYDIG Account will be liquidated based on the CME CF Bitcoin
Reference Rate or any other reasonable index that reflects the market price of
Bitcoin, NYDIG will close your NYDIG Account, and the U.S. dollar proceeds will
be delivered to you.

 

PAPERLESS
COMMUNICATIONS. You must be a paperless customer, which means that while this
account is open, you will need to be actively enrolled (i.e., applied and
confirmed) in Quontic Bank Online Banking, maintain a valid e-mail, and agree
to receive electronic delivery of all statements, disclosures, and other
communications. After the account is approved and opened, you must enroll for
Quontic Bank Online Banking at quonticbank.com. Each month, you will receive an
e-mail notifying you that your electronic statement is available to you online.
You will be able to review, copy, download, or print your electronic statement
by accessing your Quontic Bank Online Banking Account at www.quonticbank.com.
Please contact us if you have any questions on electronic statements and/or how
to enroll into Quontic Bank Online Banking.

 

OBTAINING
A PAPER COPY OF YOUR ELECTRONIC STATEMENT. If you would like to receive a paper
copy of your electronic statements, you may contact any branch office of the
Bank by any mode of communication. If you request a paper copy of your
statement, a $5.00 fee per statement will be assessed.

 

ADDITIONAL
INFORMATION REGARDING YOUR ACCOUNT. The Bitcoin Rewards are digital
assets. The Bitcoin Rewards and/or
digital assets maintained in your NYDIG Account are not “deposits”
within the meaning of U.S. federal or state banking law. Balances of Bitcoin
Rewards and/or digital assets in your NYDIG Account are not subject to Federal
Deposit Insurance Corporation (FDIC) or Securities Investor Protection
Corporation (SIPC) protections. Neither NYDIG nor the Bank maintains insurance
that covers the theft or
loss of your Bitcoin
Rewards and/or digital assets held in custody by NYDIG. NYDIG is not an agent
or affiliate of the Bank, and the Bank is not responsible for NYDIG, the NYDIG
Account, nor any Bitcoin losses or fluctuations in value, unless any such
losses relate to acts of gross negligence, willful misconduct, or fraud by the
Bank.

 

As
set forth in the NYDIG User Agreement, the delivery and redemption of Bitcoin
Rewards will be executed based on the CME CF Bitcoin Reference Rate, meaning
that NYDIG has no duty to obtain a different rate, even if there may be a
better rate available. NYDIG and its affiliates have interests that may differ
from or conflict with your interests, including the potential risk that NYDIG
may trade against or in front of a purchase or redemption request by you or the
Bank. Because of these conflicts, NYDIG may have an incentive to favor its own
interests and the interests of its affiliates over you. NYDIG has certain
policies and procedures in place that are designed to mitigate potential
conflicts; however, there is no guarantee that the policies and procedures
adopted by NYDIG will be able to detect and prevent every situation in which a
conflict may appear. Please see the NYDIG User Agreement for more information.

 

The
value of any Bitcoin Reward received or redeemed may constitute taxable income
to you. You may be issued an Internal Revenue Service Form 1099 (or other
appropriate form) that reflects the value of such reward. Please consult your
tax advisor in such case.


 

NYDIG Execution LLC Agreements

 

NYDIG PRIVACY POLICY

Last
Updated: September 29, 2020

This privacy policy (“Privacy
Policy”) describes the ways New York Digital Investment Group LLC and its
subsidiaries (“We”, “Us”, or “NYDIG”) collect,
store, use, disclose, and protect your personal information. We use the term
“personal information” to describe information that can be associated
with you and can be used to identify you. Personal information does not include
information that does not identify a specific person. “You” or “your” means you
as a participant in or as a user of the products and/or services offered by
NYDIG. Please carefully read the Privacy Policy in its entirety.

You acknowledge that you have read,
understand, and agree to the practices regarding your personal information
described in this Privacy Policy when you access or use NYDIG’s online services
and website.

We reserve the right to modify,
alter, or otherwise update this Privacy Policy at any time to address changing
legal obligations, technologies, business practices, and our users’ needs. We
encourage you to check back periodically so that you are always aware of the
most current policies and practices that NYDIG has in place to protect your
information.

1.            
Information We Collect

When you use NYDIG online services,
we may collect certain information about you. Examples of information we may
collect include your name, address, telephone number, date of birth, email
address, other means to contact you, your bank account information, and other
information you may supply to us or one of our service providers in connection
with providing services to you. We may also collect information about you that
you otherwise submit to us or one of our service providers, such as through
email and other means.

In addition, we may collect
information related to your use of our website such as your Internet Protocol
(IP) address and/or domain, the type and version of your Internet browser
software and operating system you use, the date, time, and duration of your
NYDIG online services access, the specific pages, buttons, images, links, and
forms that you access while visiting NYDIG online services, the type of device
you use to access NYDIG online services (such as a phone, tablet or computer),
your mobile carrier, and your Internet service provider.

2.            
Our Use of Information

We may use your information to (i) provide information, products, or services you request
from NYDIG; (ii) verify your identity when accessing NYDIG’s services; (iii)
enforce our terms of use and any other agreements between you and NYDIG; (iv)
improve, modify, customize, and measure NYDIG online services; (v) provide you
with information about NYDIG products and services while you are on NYDIG
online services or after you visit NYDIG online services; (vi) compare
information for accuracy and verify our records; or (vii) detect and prevent
fraud or other criminal activities.

3.            
Sharing Information in Connection with NYDIG
Online Services

To provide NYDIG online services, we
may share some of your information with service providers who are authorized to
use your information only as necessary to support our business operations, such
as those who provide data storage, payment, technology support and services,
customer service, risk solution provision, analytics, fraud prevention, and
marketing services. We maintain contracts requiring all of our service
providers to implement the same commercially-reasonable protections for your
information as NYDIG. NYDIG and its service providers may have systems or
operations based outside the United States, and you recognize that by using
NYDIG’s website and services your information may be transferred outside of the
United States.

We may also share some of your
information as otherwise permitted or required by law or as authorized by you.
This may include sharing information with affiliates of NYDIG.

4.            
Cookies and Similar Technology

When you access NYDIG online
services, we, or third parties we hire to track how our website is used, may
place small data files called “cookies” on your computer, mobile phone, or
other online access device. Cookies are pieces of data stored on your device
that are assigned by a web server to the browser on your device. When you
return to a site you have visited before, your browser gives this data back to
the server so that we can recognize your device.

A “session cookie” may be sent to
your computer or other access device when you login to NYDIG online services.
This type of cookie recognizes you if you visit multiple pages on a site during
the same session, so that you do not need to be prompted for your password on
each page. Once you log out or close your browser, this cookie expires and no
longer has any effect. “Persistent” or longer-lasting cookies can be used for
other purposes, such as to record user experience preferences when you use a
website. These cookies do not expire once you log out or close your browser.
You are free to decline our cookies if your browser permits, but doing so may
interfere with your use of NYDIG online services.

We and our third party service
providers may also use technologies similar to cookies to track your
interaction with NYDIG online services. Some of these technologies include web
beacons, pixels, tags, and Flash objects. As with cookies, you are free to
decline such technologies if your browser permits. You should refer to your browser’s
instructions to remove cached history and images from your device. Deleting or
disabling cookies will not remove Flash objects. You should refer to Adobe’s
website https://www.adobe.com for more information on how to disable
these objects.

NYDIG and the third parties who
assist in operating NYDIG online services do not respond differently or limit
their practices under the terms of this policy when you access those online
services with a browser that uses a “do not track” signal or similar mechanism.

5.            
Storage and Protection of Personal Information

We maintain administrative,
technical, and physical safeguards that are designed to protect the privacy and
security of your personal information. In order to help secure personal
information collected from you as a NYDIG online services user, including
sensitive financial data, the information is protected by secure socket layer
(SSL) encryption when it is exchanged between your web browser and NYDIG online
services.

After receiving your information, we
employ commercially reasonable website security and customer verification
procedures to protect your data. We store your personal information and
user-specific settings and preferences using commercially standard database
security software. User passwords and other sensitive information are saved in
encrypted form to prevent unauthorized access or disclosure and accidental
loss, alteration, or destruction. We regularly review our operational and
business practices for compliance with corporate policies and procedures
governing the security, confidentiality, and quality of our information. We
require all of our employees, contractors, and other third parties to protect
confidential information as a condition of doing business with us, and our
business practices limit the use and disclosure of such information, including
personal information, to authorized persons, processes, and transactions.

You play a critical role in
protecting your information by maintaining up-to-date online security
protections. Steps you take to ensure the security of your computer or other
online access device, computer passwords, and other personal identifier
authentication mechanisms are key components for the protection of your
personal information.

Notwithstanding the steps that you
and we take to protect your information, the internet is not a fully secure
environment, and we cannot ensure or warranty the security of any information
transmitted to or generated by NYDIG in connection with NYDIG online services.
There is no guarantee that information may not be accessed, disclosed, altered,
or destroyed by breach of any of our administrative, technical, physical, or
other operational safeguards.

6.            
Suspicious Email

It is our policy not to email you or
send you electronic communications to request non-public personal information
or account information (such as a username or password). If you receive an
unsolicited email or other electronic communication that appears to be from
NYDIG but you suspect may be from another source and might be fraudulent,
please do not open or respond to this communication, and instead email us
at [email protected] to ensure the safety of your account.

7.            
Personal Information on Children

We respect the privacy of children
and encourage all parents to supervise their children’s computer usage. We do
not market to or intend to invite children to visit NYDIG’s website, and we do
not permit individuals under the age of 18 to open accounts with NYDIG. NYDIG
does not knowingly collect or retain personal information from children under
the age of thirteen (13). For more information on the Children’s Online Privacy
Protection Act (COPPA), please visit the Federal Trade Commission website
at www.ftc.gov.

8.            
Notice to Persons Accessing NYDIG Online Services
Outside the United States

If you access NYDIG online services
outside the United States, any information you provide to us through NYDIG
online services will be transferred out of that jurisdiction and into the
United States. If you do not want your personally identifiable information to
leave that jurisdiction, do not provide the information to us. By providing
personally identifiable information to us, you explicitly consent to the
transfer of your information to the United States and you recognize that your
information may be subject to disclosure under United States laws and
regulations, including the USA PATRIOT Act.

9.            
Contacting Us About Privacy Questions

If you have questions or concerns
regarding this Privacy Policy, you should contact us by email at [email protected].

10.         
Changes to this Privacy Policy

This Privacy Policy is subject to
change. Please review it periodically. If we make changes to the Privacy
Policy, we will revise the “Last Updated” date at the top of this Policy. Any
changes to this Privacy Policy will become effective when we post the revised
Privacy Policy on the site. Your use of NYDIG’s website or services following
these changes means that you accept the revised Privacy Policy.

 

Rev. 9/20

 

 

FACTS

WHAT DOES NEW YORK DIGITAL INVESTMENT
GROUP (NYDIG) DO WITH YOUR PERSONAL INFORMATION?

 

 

Why?

Financial companies
choose how they share your personal information. Federal law gives consumers the right to
limit some but not all sharing.
Federal law also requires us to tell you how we collect, share, and protect
your personal information. Please read
this notice carefully to understand what we do.

What?

The types of
personal information we collect and share depend on the product or service
you have with us. This information can
include:

●      Social Security number and account
transactions

●      Account balances and payment history

●      Transaction history and purchase
history

 

When you are no longer our customer, we continue to
share your information as described in this notice.

How?

All financial
companies need to share customers’ personal information to run their everyday
business. In the section below, we
list the reasons financial companies can share their customers’ personal
information; the reasons NYDIG chooses to share; and whether you can limit
this sharing.

 

Reasons we can share your personal
information

Does NYDIG share?

Can you limit this sharing?

For our everyday business purposes –

such as to process
your transactions, maintain your account(s), respond to court orders and
legal investigations, or report to credit bureaus

Yes

No

For our marketing purposes –

to offer our
products and services to you

Yes

No

For joint marketing with other
financial companies

No

We don’t share

For our affiliates’ everyday business
purposes

information about
your transactions and experiences

No

We don’t share

For our affiliates’ everyday business
purposes –
information about
your creditworthiness

No

We don’t share

For our affiliates to market to you

No

We don’t share

For nonaffiliates to market to you

No

We don’t share

 

 

 

 

Questions?

Call toll free 1-877-869-9041 or go to https://nydig.com/privacy-policy/

Who we are

Who is providing this notice?

Certain
subsidiaries of New York Digital Investment Group LLC (NYDIG), including NYDIG Execution LLC and
NYDIG Trust Company LLC.

What we do

How does NYDIG protect my personal
information?

 

To protect your
personal information from unauthorized access and use, we use security
measures that comply with federal law.
These measures include computer safeguards and secured files and
buildings.

How does NYDIG collect my personal
information?

We collect your
personal information, for example, when you

●      Open an account or provide account
information

●      Give us your contact information or
use your debit card

●      Make deposits or withdrawals from
your account

We also collect
your personal information from other companies.

Why can’t I limit all sharing?

Federal law gives
you the right to limit only

●      sharing for affiliates’ everyday
business purposes – information about your creditworthiness

●      affiliates from using your
information to market to you

●      sharing for nonaffiliates to market
to you

State laws and
individual companies may give you additional rights to limit sharing. See
below for more information on your rights under state law.

 

Definitions

Affiliates

 

Companies related
by common ownership or control. They
can be financial and nonfinancial companies.

●      NYDIG
does not share with our affiliates.

Nonaffiliates

Companies not related by common ownership or control. They can be financial and nonfinancial companies.

●      NYDIG
does not share with nonaffiliates so they can market to you.

Joint marketing

A formal agreement
between nonaffiliated financial companies that together market financial
products or services to you.

●      NYDIG
doesn’t jointly market.

 

 

 

OTHER IMPORTANT INFORMATION

State Privacy Laws

State laws may
provide you with other privacy protections.
To the extent those state laws apply, NYDIG will comply with them when
sharing your personal information.

 


 

NYDIG
USER AGREEMENT

Last Updated: December 9, 2020

This NYDIG USER AGREEMENT (the “User Agreement”) governs the
relationship between you (also referred to as a “User”) and NYDIG Execution LLC (“NYDIG”), a New York-licensed money transmitter and BitLicensee
(NMLS ID: 1781446). You may only enter into this User Agreement if you are a
resident of Alabama, Arkansas, California, Maryland, Massachusetts, Missouri,
Montana, New York, Pennsylvania, Utah, Wisconsin, or Wyoming; if you are a resident of another
state, you may not receive the Services described herein from NYDIG. NYDIG is
authorized by the New York Department of Financial Services (“NYDFS”) to engage in virtual currency
business activity.

Pursuant to the terms of this User
Agreement: (i) you shall establish with NYDIG an
account (the “NYDIG Account”) to be
used to receive and hold digital assets on your behalf in connection with your
Quontic Bitcoin Rewards Checking Account (“Quontic
BRC Account”) with Quontic Bank (“Quontic”); (ii) NYDIG shall provide to
you certain services related to your NYDIG Account (the “Services”), including, upon your instruction, the redemption of
digital assets for U.S. Dollars, in which case NYDIG will sell such Bitcoin on
your behalf and deliver the proceeds of such sale to your Quontic BRC Account;
(iii) you undertake certain obligations in connection with your NYDIG Account
and the Services; and (iv) you and NYDIG agree to certain contractual
provisions regarding the relationship of the parties and the operation and
interpretation of the User Agreement.

By establishing a NYDIG Account,
you agree to be legally bound by the terms and conditions of this User
Agreement, as well as our Privacy Policy and Account Disclosures attached
hereto. Please read the documents carefully,
and feel free to print a copy.

NYDIG may amend this User
Agreement, from time to time, but will provide you with 30 days prior notice of
any material amendments. Your continued use of your NYDIG Account and/or the
Services following any amendment of the User Agreement shall constitute your
acceptance of the amended User Agreement.
If you do not agree to any of the terms of the User Agreement (including
any amendments of the User Agreement), you should not use the Services, and you
should close your NYDIG Account. If you close your NYDIG Account, we will
notify Quontic, and Quontic may close or modify your Quontic BRC Account.
Similarly, if you close your Quontic BRC Account, NYDIG will close your NYDIG
Account.

NYDIG is not an insured depository institution or an SEC-registered
broker-dealer. Your NYDIG Account is not insured by the Federal Deposit
Insurance Corporation (FDIC) or the Securities Investor Protection Corporation
(SIPC).

You should be aware
that there are significant risks associated with digital assets and NYDIG has
potential conflicts of interest. By establishing a NYDIG Account and/or using
the Services, you acknowledge and accept the risks and potential for conflicts
of interest as disclosed in the NYDIG Account Disclosures.

 

Part
1.              
Your NYDIG Account

1.1.                  
Account Opening

You hereby authorize NYDIG to open
a NYDIG Account for you, to be used to receive and hold digital assets on your
behalf in connection with your Quontic BRC Account with Quontic. You hereby agree that you satisfy the
eligibility requirements by: (i) being of legal age
to form a binding contract (at least 18 years old); (ii) being a U.S. resident;
(iii) having a Quontic BRC Account; and (iv) providing required identification
information pursuant to NYDIG’s Bank Secrecy Act (“BSA”) and Anti-Money Laundering (“AML”) Compliance Program.

1.2.                  
Identity Verification

NYDIG may ask you to verify
certain personal information that you have previously provided to Quontic, such
as your name, address, telephone number, email address, or date of birth. You
must keep your contact information, such as your current email address and
telephone number, up to date on your Quontic BRC Account.

1.3.                  
Account Features

With your NYDIG Account, you can
do the following:

●     
receive Bitcoin delivered to your account by NYDIG in connection with the
Quontic Bitcoin Rewards
Program;

●     
hold Bitcoin;

●     
view the amount of Bitcoin in your account;

●     
view your transaction history; and

●      redeem Bitcoin as described in
more detail below.

Quontic is responsible for
delivering funds to NYDIG in order for NYDIG to deliver Bitcoin to your NYDIG
Account. NYDIG will not deliver Bitcoin to your NYDIG Account unless Quontic
has provided such funds.

You acknowledge and accept that
NYDIG may use service providers or subcontractors in connection with its
provision of the Services to you.

In
conjunction with viewing information about your NYDIG Account, you may also see
amounts of Bitcoin you may have earned from Quontic that have not yet been delivered to your NYDIG
Account. For the avoidance of doubt, this amount does not represent any amount
of Bitcoin or dollars in your NYDIG Account.

1.4.                  
Account Access

Only you are authorized to access
your NYDIG Account. You agree not to grant any other person access to your NYDIG
Account. You are solely responsible for the activities of any person that you
permit to access your NYDIG Account.

For the avoidance of doubt, you
are the sole owner of your Quontic BRC Account and there is no beneficiary for
the Quontic BRC Account other than you. At this time, you may not open a
Quontic BRC Account that is jointly owned with any other person or that has a
beneficiary other than you.

1.5.                  
Ownership and Control

NYDIG is the custodian of the
Bitcoin in your NYDIG Account. If NYDIG Execution is your custodian,
then NYDIG Execution will hold your Bitcoin as your agent. As the custodian of your Bitcoin
Rewards, NYDIG will use reasonable care to keep the Bitcoin in your NYDIG
Account safe. NYDIG has no right, interest, or title in the Bitcoin in your
NYDIG Account, and such Bitcoin will not be an asset or liability on NYDIG’s
balance sheet. For the avoidance of doubt, NYDIG may not transfer, sell, loan
or encumber your Bitcoin Rewards, except as directed by you or as otherwise set
forth in this User Agreement. Your Bitcoin may be held in one or more omnibus
accounts on the Bitcoin blockchain, all controlled by NYDIG. Thus, the Bitcoin
in your account will be commingled with the Bitcoin of other NYDIG customers.
However, the Bitcoin in your NYDIG Account will never be commingled with
the Bitcoin owned by NYDIG or by its affiliates, except for limited periods of
time — generally no longer than a day — to facilitate the distribution of
Bitcoin into your NYDIG Account or the redemption of Bitcoin from your account.

1.6.                  
Quontic’s Rights

Quontic
shall have no rights with respect to your NYDIG Account other than (1) to
provide funds to NYDIG so NYDIG can deliver Bitcoin to your NYDIG Account in
connection with Bitcoin Rewards Program; and (2) to see the balance of Bitcoin
in your NYDIG Account.

1.7.                  
Fees and Expenses

NYDIG will
not charge you a fee for opening and maintaining a NYDIG Account, or for
receiving Bitcoin Rewards.

NYDIG will
charge you a fee for redemptions of Bitcoin in your NYDIG Account, consisting
of 2% of the U.S. dollar proceeds of any redemption of Bitcoin in your NYDIG
Account. This fee will be deducted from the final proceeds of a redemption of
Bitcoin on your behalf by NYDIG before transferring U.S. dollars to your
Quontic BRC Account. NYDIG will not charge you a fee for transferring the U.S.
dollar proceeds to your Quontic BRC account.

NYDIG may
change these fees upon 30 days prior notice to you.

 

Part
2.              
Use of NYDIG Accounts; Services and Service Limitations

2.1.                  
Redemptions

You may request a redemption of
the amount of the Bitcoin in your NYDIG Account indicated on your most
recent monthly account statement by calling the Customer Support line for this
product at (800) 908-6600,
which is jointly operated with Quontic. NYDIG will only process one redemption
request from you per month for the
entire balance of Bitcoin in your NYDIG Account. A redemption request
must be made to the customer support line at least five business days before
the month end.

By requesting that NYDIG redeem
certain Bitcoin in your NYDIG Account, you (i) agree
to be bound by the transaction and (ii) accept the risk (see the Disclosure of
Risks section below) associated with such transaction.

If your redemption request is
accepted, the redemption will be executed on the last business day of the month
and the sale price for your redemption will be the CME CF Bitcoin Reference
Rate at 4:00 P.M. London Time on that date, meaning that NYDIG has no duty to
obtain a different rate, even if there may be a better rate available.

This means that you will not know
the price at which the Bitcoin in your NYDIG Account will be redeemed at the
time that you make a redemption request. Because of the significant volatility
in the price of Bitcoin, your Bitcoin may be redeemed at a price that is
significantly lower than the price of Bitcoin at the time that you make your
redemption request.

The proceeds of a redemption, less
applicable fees, shall be delivered to your Quontic BRC Account within five (5)
business days of execution of the redemption. Proceeds of redemptions will only
be delivered to your Quontic BRC Account at Quontic, and only in U.S. dollars.
It is not possible to transfer Bitcoin or U.S. dollars from your NYDIG Account
to third parties. In addition, it is not possible for you to withdraw Bitcoin
in your NYDIG Account to yourself or to another custodian.

2.2.                  
Redemption Confirmations

NYDIG will confirm whether it has
accepted or rejected your redemption request within three (3) business days
after such request is made. NYDIG will not be deemed to have accepted a
redemption request from you until affirmatively accepted by NYDIG through a
written, electronic, or telephonic acknowledgment. NYDIG has the right to delay
or reject all or any part of any request for a redemption if in NYDIG’s good
faith belief that delay or rejection is reasonably necessary to comply with
applicable law, including if NYDIG suspects the transaction may involve money
laundering, terrorist financing, fraud, violation of OFAC sanctions, or any
other type of financial crime, or if NYDIG believes the request for erroneous
or relate to a Prohibited Use.

If you did not authorize a
particular redemption or suspect fraudulent activity in your NYDIG Account,
please contact Customer Support immediately at (800) 908-6600.

The proceeds
of a redemption will generally appear in your Quontic BRC Account on the same
or next business day after the redemption is requested. In some instances, it
may take longer.

2.3.                  
Cancellations

After you request a redemption of
the Bitcoin in your account, you may not request the cancellation of the
redemption request at any time.

 

2.4.                  
Forks and Airdrops

Your NYDIG Account only supports Bitcoin.

 

NYDIG is under no obligation to provide Services
for digital assets that have been created as a result of a fork or airdrop, and
you acknowledge that you may not immediately or ever have the ability to redeem
or withdraw a forked or airdropped digital asset, and NYDIG has no obligation to safeguard any such
forked or airdropped assets.

 

In some cases after a fork of
Bitcoin, there may be doubt as to which digital asset is “Bitcoin.” In such a
situation, NYDIG will use its commercially reasonable judgment to determine
which post-fork digital asset is “Bitcoin.”

Your request to NYDIG to redeem Bitcoin your NYDIG Account
does not include a request to redeem any fork or airdrop of Bitcoin.

 

2.5.                  
Statements

Every month,
NYDIG will make available to you an account statement delivered via email.
These statements will reflect the end-of-month
balance of Bitcoin in your NYDIG Account, as well as the equivalent
U.S. dollar value of such Bitcoin. Additionally, the statement will detail: (1)
any fees charged; (2) the date and amount of each receipt of Bitcoin Rewards;
and (3) the date and amount of each redemption (described below) of Bitcoin in
your NYDIG Account.

While NYDIG
strives to provide statements and information that are accurate, there may
inadvertently be technical inaccuracies or typographical errors. Accordingly,
you should verify all information before relying on it, and all decisions based
on information provided by NYDIG are your sole responsibility and we shall have
no liability for such decisions.

2.6.                  
Customer Support

If you have questions, would like
to provide feedback, need assistance, or would like to file a complaint, feel
free to contact our Customer Support team by telephone at (800) 908-6600 or by
email at [email protected].

New York
consumers may also direct unresolved complaints directly to the New York
Department of Financial Services (“NYDFS”)
at the NYDFS Consumer Complaint Portal by clicking here or by contacting the NYDFS as follows:
NYDFS Consumer Assistance Unit, One Commerce Plaza, Albany, NY 12257,
1-800-342-3736.

2.7.                  
Taxes

Transactions
involving virtual currencies, such as selling Bitcoin for U.S. dollars, could
result in tax liability. NYDIG will provide you with a Form 1099-B to report
gross proceeds on Bitcoin sales on NYDIG’s platform.

Nevertheless,
you understand that it is your sole responsibility to determine whether, and to
what extent, any taxes apply to any transactions you conduct in connection with
the Services, and to report and remit the correct amounts of taxes to the
appropriate tax authorities.

If the
IRS informs NYDIG that you are subject to backup withholding, NYDIG may
withhold a portion of the proceeds owed to you in connection with a redemption
in order to comply with the IRS directive.

 

2.8.                  
Death of User

Your legal representative should
notify us promptly in the event of your death. If we are notified of your
death, we may require that appropriate documentation, such as a death
certificate, letters testamentary, or court order be provided to us for our
review, and we may freeze your NYDIG Account. Subject to applicable law and
legal process, NYDIG may determine, based on a review of applicable
documentation, who is entitled to receive your Bitcoin Rewards,
and NYDIG may transfer the U.S. value of your Bitcoin Rewards to the personal
representative of your estate or to your beneficiary, provided that such
representative or beneficiary has been approved pursuant to NYDIG’s AML and
Sanctions Program.

2.9.                  
Unclaimed Property

If NYDIG has no record of your use
of the Services for several years and is unable to contact you, applicable law
may require NYDIG to report or deliver the value of the Bitcoin in your NYDIG
Account as unclaimed property to the state in which you reside. At the time that we deliver the value of the Bitcoin to the applicable jurisdiction,
NYDIG may at its option deliver either Bitcoin or redeem the Bitcoin and deliver
cash. If NYDIG choses to deliver in cash and the price of Bitcoin increases
thereafter this may result in a loss of potential value to you; if we choose to
deliver Bitcoin and the price of Bitcoin thereafter decreases this may also
result in a loss of potential value to you.

 

2.10.              
Recordkeeping

NYDIG will keep appropriate
records regarding the Services for a period of time as required by applicable
law, after which retention of the records will be at NYDIG’s discretion.

2.11.              
Intellectual Property

NYDIG shall retain
all right, title, and interest (including all copyright, trademark, patent,
trade secrets, and all other intellectual property rights) in the Services. Use
of NYDIG intellectual property, name, marks, or logo, without express, prior
written consent from NYDIG is strictly prohibited.

2.12.              
Bitcoin Network

NYDIG cannot and does not
guarantee the value of Bitcoin. NYDIG does not control the decentralized
peer-to-peer network used to transfer Bitcoin (the “Bitcoin Network”) and therefore is not responsible for the services
provided by the Bitcoin Network – in particular, verifying and confirming
transactions that are submitted to the Bitcoin Network. NYDIG cannot cancel or
reverse a transaction that has been submitted to the Bitcoin Network. Once a
transaction has been submitted to the Bitcoin Network, it cannot be cancelled
or modified. You acknowledge and agree that, to the extent NYDIG did not cause
or contribute to a loss you suffered in connection with any redemption
initiated, NYDIG will have no liability for that loss. NYDIG has no control
over the Bitcoin Network and therefore does not ensure that any transaction
request NYDIG submits to the Bitcoin Network will be completed. You acknowledge
and agree that the redemption request you instruct NYDIG to submit on the
Bitcoin Network may not be completed, or may be substantially delayed, by the
Bitcoin Network and NYDIG is not responsible for any delay or any failure of
completion caused by the Bitcoin Network. When you make a redemption request to
NYDIG, you authorize NYDIG to submit a request to the Bitcoin Network to
transfer digital assets to settle the redemption of digital assets on your
behalf.

2.13.              
Disrupted Service

Although NYDIG strives to provide
you with best in class service without delay, no service provider can guarantee
service without interruption. Access to the Services may be disrupted or
unavailable due to circumstances beyond our control. This could result in the
inability to redeem for a period of time and may lead to support response time
delays.

2.14.              
Force Majeure

NYDIG will not be responsible
under this User Agreement for any failure to perform its duties, and will not
be liable hereunder for any loss or damage in association with such failure to
perform, for or in consequence of any circumstance or event which is beyond the
reasonable control of NYDIG or any agent of NYDIG and which adversely affects
the performance by NYDIG of its obligations hereunder or by any other agent of
NYDIG, including any event caused by, arising out of or involving (i) an act of God, (ii) accident, fire, water or wind damage
or explosion, (iii) any computer, system or other equipment failure or
malfunction caused by any computer virus or other malicious code or the
malfunction or failure of any communications medium or any phishing or spoofing
or other attack, (iv) any interruption of the power supply or other utility
service, (v) any strike or other work stoppage, whether partial or total, (vi)
any disruption of, or suspension of trading in, the digital asset markets, or (vii)
any other cause similarly beyond the reasonable control of NYDIG.

2.15.              
No Advice

For the avoidance of doubt, NYDIG
has not and will not provide you with investment, legal, tax, or any other type
of advice. NYDIG is not responsible for any decision you make in connection
with the Services. NYDIG may make available certain information about Bitcoin
and other digital assets, including investment strategies with respect to such,
and its own research reports and market commentaries as well as materials
prepared by others. None of this information is personalized or in any way
tailored to reflect your individual financial circumstances or investment
objectives and may not be suitable for you.

 

Part
3.              
Additional User Obligations and Agreements

3.1.                  
Security Breach

You are solely responsible for
maintaining the security of your NYDIG Account login credentials and any other
form of authentication. If you suspect that your NYDIG Account has been
compromised, or that you have been a victim of fraud or attempted fraud, or any
other security incident, you must notify NYDIG immediately at (800) 908-6600.

3.2.                  
Prohibited Use

You agree not to use the Services
for any illegal purpose, including, but not limited to, laundering money,
engaging in fraud or attempted fraud, manipulating the digital asset markets,
or violating any applicable sanctions programs, including those administered by
the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”).

In addition, you will not engage in any of the following
activities, either directly or through a third party: (i)
attempt to gain unauthorized access to the Services or another User’s NYDIG
Account; (ii) make any attempt to bypass or circumvent any security features;
(iii) reproduce, duplicate, copy, sell or resell the Services or access
to the Services for any purpose except as authorized in this User Agreement;
(iv) engage in any activity that is abusive or interferes with or disrupts the
Services. Use of the Services in connection with any transaction involving
illegal products or services is prohibited; or (v)
reverse engineer or decompile any part of the Service.

 

NYDIG reserves the right to
monitor, review, retain, or disclose any information of yours as necessary to
satisfy any applicable law, regulation, legal process, or governmental request.
NYDIG also reserves the right to cancel or suspend your NYDIG Account or block
or freeze funds if we determine that your NYDIG Account is associated with a
prohibited use.

3.3.                  
Audio-recording

You authorize NYDIG to record any
and all telephonic or other oral instructions given to NYDIG by you or on your
behalf.

3.4.                  
Personal Data

You consent to us accessing,
processing, and retaining any personal data provided to us by you or Quontic in
connection with the Services. For more information regarding the protection of
your personal data, see NYDIG’s Privacy Policy.

3.5.                  
Electronic Documents

You consent to the delivery of
confirmations, statements, and any other required or optional communication
pursuant to this User Agreement or under any applicable law or regulation by
email, Web site or other electronic means, subject to compliance with any
applicable laws, rules or regulations. Any such documents that are delivered to
you electronically are deemed to be “in writing.” If your signature or acknowledgment
is required or requested with respect to any such document and you “click” in
the appropriate space, you will be deemed to have signed or acknowledged the
document to the same extent and with the same effect as if you had signed the
document manually. You acknowledge that you have the right to withdraw your consent to the electronic delivery
and signature of documents at any time by providing prior written notice.

3.6.                  
Cooperation

You agree to cooperate with any
reasonable request NYDIG makes in connection with responding to formal or
informal inquiries made by exchanges or regulatory, self-regulatory or
governmental authorities in connection with the Services. You further agree to
notify NYDIG of any legal proceedings or formal or informal inquiries made by
exchanges or regulatory, self-regulatory or governmental authorities pertaining
to your business activities relating to digital assets.

You
authorize us to investigate where we deem it necessary to protect you or us
against money laundering, terrorist financing, fraud or other financial crime,
and to take action we reasonably deem necessary based on the results of such
inquiries. When we carry out these inquiries, you acknowledge and agree that
your personal information may be disclosed to financial crime agencies.

 

Part
4.              
Term and Termination

4.1.                  
Term and Termination

This User Agreement will begin
when you establish a NYDIG Account and will continue unless otherwise
terminated as provided herein.

NYDIG reserves the right to suspend, change, limit, modify
or terminate, without prior notice, all or any part of your access to the
Services if NYDIG reasonably determines that: (i) the
use of your account is associated with a Prohibited Use or you have otherwise
violated the terms of this User Agreement; (ii) NYDIG is required to do so by governmental authority
or court order; (iii) you have violated applicable law or regulation; or (iv)
that it is necessary to protect NYDIG.

 

In addition, NYDIG shall terminate
your NYDIG Account if your Quontic BRC Account is terminated pursuant to this
Section.

If you move and are no longer a
resident of a supported state, NYDIG will close your NYDIG Account.

NYDIG may also suspend, change, limit, modify or terminate
your NYDIG Account, without limitation and for any reason whatsoever, if it
provides 30 days prior notice to you.

 

If NYDIG terminates your account,
it will use reasonable efforts to notify you, as soon as reasonably
practicable, and return the value of the Bitcoin in your NYDIG Account to your
Quontic BRC Account on the same or next business day, unless prohibited by law
from doing so, for example, under applicable sanction programs. In the event of
termination, NYDIG will redeem all the Bitcoin in your NYDIG Account at the CME
CF Bitcoin Reference Rate and deliver to your Quontic BRC Account the U.S.
dollar value of all Bitcoin in your NYDIG Account as soon as reasonably
possible. NYDIG will deduct 2% of the amount before transferring U.S. dollars
to your Quontic BRC Account.

You may request to terminate your
NYDIG Account at any time by contacting NYDIG at Customer Support at (800)
908-6600. In the event that you terminate your NYDIG Account, NYDIG will treat
your notice of termination as a redemption request for all Bitcoin in your
NYDIG Account, and redeem and deliver such Bitcoin in the same manner as if
NYDIG had terminated your account.

Termination will not release
either party from any liability or responsibility that arose from or occurred
in connection with this User Agreement prior to the termination. For the
avoidance of doubt following termination of your NYDIG Account you shall retain
no rights whatsoever with respect to any assets or potential assets in your
NYDIG Account other than delivery of the USD redemption proceeds of the Bitcoin
in your NYDIG Account.

Part
5.              
Indemnification and Limitation of Liability

5.1.                  
Indemnification

You will indemnify and hold
harmless NYDIG and its employees, agents, consultants, subsidiaries,
affiliates, partners, and licensors from any and all claims, costs, losses,
damages, liabilities, judgments, and expenses resulting from or otherwise
related to this User Agreement or your use of the Services.

5.2.                  
Limitation of Liability

NYDIG, including its officers,
directors, members, affiliates, employees, agents, licensors, service providers,
and subcontractors will have no liability, contingent or otherwise, to you or
any third parties for any losses, liabilities, judgments, suits, actions,
proceedings, claims, damages, costs, awards, fines, penalties, settlements or
other expenses (including attorneys’ fees and disbursements), whether direct,
indirect, special, incidental or consequential arising from or occurring in
connection with this User Agreement, its performance or breach thereof, even if
NYDIG knew of the possibility of such losses, except if the losses are found to
have resulted solely from the gross negligence, willful misconduct or fraud of
NYDIG.

Additionally, NYDIG will not have
any liability to you or any third party for errors made by any third-party
connection or communication service in reading, processing or executing your
instructions. You are solely responsible for any losses, damages or costs
resulting from your reliance on any data or information that NYDIG may provide
in connection with your use of the Services. You will make your own independent
decision to use NYDIG. Finally, NYDIG will have no liability for the acts or
omissions of any third parties providing any goods or services pursuant to this
User Agreement.

Notwithstanding anything in this
User Agreement to the contrary, NYDIG will in no event be liable for any
consequential, indirect, special or punitive damages.

 

Part
6.              
Miscellaneous

6.1.                  
Entire Agreement

This User Agreement and our
Privacy Policy constitutes the entire agreement of the parties hereto with
respect to its subject matter and supersedes any existing agreements between
the parties, whether oral or written, concerning this subject matter.

6.2.                  
No Third Party Beneficiaries

A person who is not a party to
this User Agreement
has no right to enforce any term of this User Agreement.

 

6.3.                  
Assignment and Change of Control

Neither
you nor NYDIG may assign, sub-license, sub-contract, change or otherwise
encounter any of their respective rights or obligations under the User
Agreement without the prior written consent of the other party; provided, however, that NYDIG may assign its rights and obligations under
the User Agreement to any affiliate of NYDIG that is chartered or licensed to
provide the Services or to any entity which succeeds to all or substantially
all of the assets and business of NYDIG without your prior written consent.

In the event that NYDIG is
acquired by or merged with a third party entity, we reserve the right to
transfer or assign the information we have collected from you as part of such
merger, acquisition, sale, or other change of control.

6.4.                  
No Waiver

No waiver of any provision of this
User Agreement will be deemed to have occurred by the failure or delay by NYDIG
in exercising any right or remedy provided in this User Agreement. The single or partial exercise of any such
right or remedy by NYDIG will not preclude any other or further exercise of any
other right or remedy. The rights and
remedies provided in this User Agreement are separate, independent and
cumulative and not exclusive of any rights or remedies to which NYDIG is at any time entitled anywhere, whether by
operation of law or otherwise.

6.5.                  
Governing Law

This User Agreement, the Services
provided pursuant to it, any transaction effected in connection with it, and
all other matters arising under it will be governed by the laws of the State of
New York, without regard to the conflicts of law provisions thereof. Any
litigation or other dispute resolution between the parties relating to this
User Agreement will take place in New York County, New York. The parties
consent to personal jurisdiction of and venue in the state and federal courts
within that county. Each party acknowledges that a breach this User Agreement
may cause the other irreparable injury and damage. Therefore, injunctive relief
may be sought in addition to any other rights and remedies which may be
available to the party at law or in equity.

6.6.                  
Arbitration

You agree
that any dispute arising out of or relating to this User Agreement or to your
use of the Services, including, without limitation, federal and state statutory
claims, common law claims, and those based in contract, tort, fraud,
misrepresentation, or any other legal theory, shall be resolved through binding
arbitration. Arbitration shall be conducted in accordance with the American
Arbitration Association’s rules for arbitration of consumer-related disputes
(accessible at https://www.adr.org/sites/default/files/Consumer%20Rules.pdf).
This agreement to arbitrate includes, without limitation, disputes arising out
of or related to the enforceability, revocability, scope, or validity of the
User Agreement, including this provision regarding arbitration. All such
matters shall be decided by an arbitrator and not by a court or judge. You
agree to waive your right to a trial by jury.

6.7.                  
Waiver of Class Action

To the
extent permissible by law, claims must be brought in a party’s individual
capacity, not as a plaintiff or class member in any purported class action. You
agree to waive your right to participate in a class action.

6.8.                  
Notices

If we send
an email to the email address on record for you, you agree and understand that
this constitutes written notice from us to you. If you email [email protected],
this constitutes written notice from you to us. The date of email receipt is
considered to be the date of transmission.

6.9.                  
Survival

All provisions of this User
Agreement which by their nature extend beyond the expiration or termination of
the User Agreement, including, for example, the Arbitration clause, shall
survive the termination or expiration of this User Agreement.

 

6.10.              
Severability

If any one or more of the
provisions of this User Agreement is held to be unenforceable or void, that provision(s)
will be limited and construed so as to make it enforceable, or, if such
limitation or construction is not possible, that provision(s) will be deemed
stricken from this User Agreement. In
any event, all other provisions of this User Agreement will remain in full
force and effect.

 

NYDIG Account
Disclosures

 

In connection with your establishment of an account with
NYDIG in accordance with the terms of that certain User Agreement, by and
between you and NYDIG (the “User
Agreement
”), NYDIG hereby provides you with the following disclosures and
information.

 

Capitalized terms not otherwise defined in these NYDIG
Disclosures shall have the meaning given to them in the User Agreement.

 

1.          
Disclosure of Risks

You hereby acknowledge the
following risks:

  1. Digital
    units that are used as a medium of exchange or a form of digitally stored
    value, such as Bitcoin
    (referred to as a “Virtual Currency”) are not legal
    tender, and are not backed by the U.S.
    or any other government.

 

  1. Digital
    assets in the NYDIG Account
    are not “deposits” within the meaning of U.S. federal or state banking
    law, and balances of digital assets in the NYDIG Account are not subject to Federal
    Deposit Insurance Corporation (“FDIC”)
    or Securities Investor Protection Corporation (“SIPC”) protections.

 

  1. Legislative and regulatory
    changes or actions at the state, federal, or international level may
    adversely affect the use, transfer, exchange, and value of Virtual
    Currency.

 

  1. If any Bitcoin in your NYDIG
    Account is deemed to be a security under state or Federal securities laws
    or if providing custody services or the ability to redeem or otherwise transaction or withdraw
    with respect to such Bitcoin would otherwise violate applicable state or
    federal laws, NYDIG will make reasonable efforts to return such Bitcoin to
    you but such Bitcoin may become temporarily or permanently inaccessible to
    you.

 

  1. The
    software and cryptography that governs the protocols of Digital Asset
    Networks have short histories and could at any time be found ineffective
    or faulty, which could result in the complete loss of value or theft of
    the Bitcoin in your NYDIG Account.

 

  1. No
    physical, operational and cryptographic system for the secure storage of
    private keys is perfectly secure, and loss or theft due to operational or
    other failure is always possible.

 

  1. Transactions in Virtual
    Currency may be irreversible, and, accordingly, losses due to fraudulent
    or accidental transactions may not be recoverable.

 

  1. Some Virtual Currency
    transactions shall be deemed to be made when recorded on a public ledger,
    which is not necessarily the date or time that the customer initiates the
    transaction.

 

  1. The value of Virtual Currency
    may be derived from the continued willingness of market participants to
    exchange government-issued currency that is designated as legal tender in
    its country of issuance through government decree, regulation, or law (“Fiat Currency”) for Virtual
    Currency, which may result in the potential for permanent and total loss
    of value of a particular Virtual Currency should the market for that
    Virtual Currency disappear.

 

  1. There is no assurance that a
    person or entity who accepts a Virtual Currency as payment today will
    continue to do so in the future.

 

  1. The volatility and
    unpredictability of the price of Virtual Currency relative to Fiat
    Currency may result in significant loss over a short period of time.

 

  1. The nature of Virtual
    Currency may lead to an increased risk of fraud or cyber-attack.

 

  1. The nature of Virtual
    Currency means that any technological difficulties experienced by NYDIG
    may prevent the access or use of the Bitcoin in your NYDIG Account.

 

  1. Any
    bond or trust account maintained by NYDIG for the benefit of its customers
    may not be sufficient to cover all losses incurred by customers.
  2. NYDIG
    may maintain insurance on the Bitcoin it custodies but you should expect
    that it will not cover the value of any Bitcoin in your account.
  3. The
    Electronic Funds Transfer Act and Regulation E and their protections do
    not apply to your NYDIG Account or any of the related Services provided by
    NYDIG to you.

 

2.          
Conflicts of Interest

NYDIG and its affiliates have interests that may differ
from or conflict with your interests. As a result of these conflicts, NYDIG may
have an incentive to favor its own interests and the interests of its
affiliates over you. NYDIG has certain policies and procedures in place that
are designed to mitigate the potential conflicts identified. There is no
guarantee, however, that the policies and procedures adopted by NYDIG will be
able to detect and prevent every situation in which a conflict may appear. The
following is a non-exhaustive list of potential conflicts:

Simultaneous Trading. NYDIG may be involved in digital
asset transactions for its own account or for the accounts of other customers.
In certain cases, NYDIG may be in the process of executing orders from other
customers when it receives your redemption request. Alternatively, while it is
in the process of processing a redemption request for you, NYDIG may receive
additional orders from other customers. The orders that NYDIG executes for
itself or for its other customers could, depending on the size and timing of
such orders, impact the 4:00 pm London time
redemption
price that you receive. NYDIG has no duty to seek best execution pricing when
executing a trade on your behalf. The impact could include reducing the US
dollar proceeds of your redemption.

Business Opportunities and Related
Activities
. NYDIG
and its affiliates engage in a broad spectrum of other activities. In the
ordinary course of business activities, NYDIG and its affiliates may engage in
activities where the interests of NYDIG, its affiliates, or their customers may
conflict with your interests.

Variation in Compensation. NYDIG will charge different
customers different prices for its services, which may incentivize it to favor
certain customers over others.

Trading by NYDIG and Affiliates. NYDIG and its affiliates may
invest in or trade in Bitcoin, including at the same time as you, and including
in positions that are opposite to those taken by you. In addition, a conflict
of interest could occur if NYDIG is aware of customer orders or imminent
customer orders and executes a trade for its own inventory (or the account of an
affiliate) while in possession of that knowledge.



[1] As
described more fully herein, you must open and maintain a
Bitcoin Rewards Program Account with NYDIG Execution LLC (NYDIG Account) in
order to receive Bitcoin Rewards delivered to your NYDIG Account by NYDIG
through funds provided by Quontic. In addition to the terms and limitations set
forth in this document, the NYDIG Account is also subject to and governed by
the NYDIG User Agreement. See NYDIG
Account Requirements and the NYDIG User Agreement, which terms and limitations
are incorporated by reference herein, for more information.

[2] Apple, the Apple logo, and Apple Pay are trademarks
of Apple Inc., registered in the United States and other countries.