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Explanation of 2017 changes to our Terms and Conditions content:

  1. In the Deposit section, we have made the following three changes:
    • We have added a provision that, unless prohibited by law, Simmons Bank can charge back the amount of any item which was initially paid by the payor bank and which is later returned due to an allegedly forged, unauthorized or missing endorsement, claim of alteration, encoding error or other problem which, in Simmons Bank's judgment justifies, reversal of credit.
    • We added a provision that Simmons Bank may attempt to collect previously returned items without giving the depositor notice, and it may permit the payor bank to hold an item beyond the midnight deadline.
    • We added a provision that explains how Simmons Bank processes a deposit with a discrepancy when the depositor is not present.
  2. In the Withdrawals section, we have made the following changes:
    • We added the following text to be very clear that just because funds are available, the credit can still be reversed. “An item may be returned after the funds from the deposit of that item are made available for withdrawal. In that case, we will reverse the credit of the item.”
    • We also revised the text to provide that the right to require notice before withdrawal from an interest earning account does not apply to a demand deposit.
  3. We have revised the Stop Payments section to address a version of UCC 4-403 that has been adopted by the state of Arkansas, which provides for stop payment by a “record” rather than in “writing.” We have also replaced the word “verbal” with the more precise word “oral” in all states.
  4. In Amendments and Termination, we have deleted the provision that notice to one accountholder is notice to all, and the provision requiring the accountholders to notify Simmons Bank of any name or address changes. These provisions would be redundant because of the new Notices section (see #5 below).
  5. We have added a new Notices section. The information is clearer and easier to find in a separate section. We have also added that notice to Simmons Bank is effective when it is actually received and it must be received in time for Simmons Bank to have a reasonable opportunity to act on it. Furthermore, we have added that notice to the customer is effective when it is mailed.
  6. In the Statements section, we have added text that the customer must examine items for unauthorized or missing endorsements, which is an expansion of the review requirement in UCC 4-406.
  7. In the Temporary Account Agreement section, we have replaced, “If this option is selected” with “If the account documentation indicates.”
  8. We have made several revisions to the Right to Set-Off section.
    • We eliminated the provision that the debt that is set-off is to the extent of the person or entity's right of withdrawal.
    • We made the following revision to increase clarification:
      • Current text: 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.
      • New text: If your debt arises from a promissory note, then the amount of the due and payable debt will be the full amount we have demanded, as entitled under the terms of the note, and this amount may include any portion of the balance for which we have properly accelerated the due date.
    • We expanded the right of set-off for partner and partnership accounts and clarified the right of set-off for joint accounts and joint accountholder accounts.
    • We expanded the list of examples to specifically clarify that the right of set-off does not apply if it is prohibited by the Military Lending Act.
  9. We have revised the Restrictive Legends section to also apply to restrictive endorsements and provided an example of a restrictive endorsement.
  10. In the Overdraft section, we deleted the parenthetical in the following text to clarify, in plain language, the limitation on charging fees for ATM and one-time debit card overdrafts: “If a check, item or transaction (other than an ATM or everyday debit card transaction) is presented without sufficient funds” has been replaced with “We will not charge you a fee for paying an overdraft of an ATM or everyday debit card transaction if this is a consumer account and you have not opted-in to that service.”
  11. In the Check Processing section, we have made the following changes:
    • We have clarified the following text:
      • Current Text: 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.
      • New Text: You agree that we have exercised ordinary care if our automated processing is consistent with general banking practice, even though we do not inspect each item.
    • We have added a provision that Simmons Bank can properly pay an item payable to multiple payees unless the accountholder gives Simmons Bank notice in writing that multiple endorsements are required.
    • We have added a provision that Simmons Bank is not responsible for an unauthorized signature or alteration that would not be identified by a reasonable inspection of the item.
  12. In the Death or Incompetence section, we have replaced legally incompetent with adjudication of incompetence, which is a more accurate description and more closely follows the text of UCC 4-405.
  13. In the Fiduciary Accounts section, we have clarified that Simmons Bank is not responsible for the actions of the fiduciary, including the misuse of funds.
  14. In the Security section, we made the following changes:
    • We added a reference to the use of an account number to issue a fraudulent electronic debit, because this is a common example of fraud.
    • We deleted the reference to a remotely created check by a telemarketer because of the ban established by the Telemarketing Sales Rule.
    • We also clarified that the paragraph regarding commercially reasonable security procedures does not apply if Regulation E applies. We specified that if Simmons Bank offers a commercially reasonable security procedure and the customer selects another security procedure, the customer is responsible for any payment order accepted pursuant to that security procedure whether it is authorized or not.
  15. In the Waiver of Notices section, we added an example of a notice of nonpayment and specified that the waiver does not apply if the notice is required by Regulation CC.
  16. In the ACH and Wire Transfers section, we added a statement that credit entries can be made by ACH.

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