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08-0223_FRIESS, DAN_Grading Surety AgreementLl • VOFAMAL GRADING SURETY AGREEMENT THIS AGREEMENT is made by and between the CITY OF SAN JUAN CAPISTRANO, a municipal corporation, hereinafter referred to as the "City" and Dan Friess, owner referred to as "Developer'. WITNESSETH WHEREAS, City will issue Grading Permit No B07-1195 to Developer to construct certain designated improvements which constitute a portion of that real property at the location of 32312 Camino Capistrano, commonly referred to as Capistrano Village . WHEREAS, San Juan Capistrano Municipal Codes Section 8-2.08 requires the posting of financial security to secure the faithful performance and labor and materials for the grading and installation of improvements connected with issuance of grading permits including the construction of drainage and protection devices and any other corrective work to remove and eliminate engineering and geological hazards. WHEREAS, San Juan Capistrano Municipal Code Section 8-2.09 authorizes the Building Official to require additional bonding as security to ensure against adverse aesthetic impacts arising from incomplete grading and/or improvements from development projects which have not been completed. WHEREAS, the Building Official finds that the proposed project site is highly prominent and visible to the community, has unique topographic features or involves substantial grading of slope areas. NOW, THEREFORE, in consideration of the premises and promises hereinafter contained, City and Developer agree as follows: 1. Developer's Improvements Obligations. Developer shall, at its sole cost and expense, provide and furnish all labor, materials and equipment for the construction of grading improvements as approved by the City Engineer. The grading permit and plans, which describe all the work to be constructed perthis agreement, are on file in the office of the City's Building Official. 0 0 2. Developer's Security. Developer shall provide a cash deposit, Certificate of Deposit or a bond by a duly authorized corporate surety subject to the approval of the City Attorney, or as approved by the City Engineer, to secure Developer's improvement obligations required under this agreement. The amount of the bond shall be $ 10,384.00 for all onsite grading improvements as approved by the City Engineer. This security shall also serve as security for restoration of the site. A copy of the surety instrument, as approved by the City Attorney. 3. Completion of Improvements. To ensure the protection of the public safety, health and welfare, Developer shall construct all said improvements in accordance with the schedule as set forth in Exhibit "A", and the conditions as set forth in Exhibit "B". 4. Developer Default. In the event Developer does not complete the required improvements, including erosion and silt control measures within the time required, using Best Management Practices (BMP) in implementing a Water Quality Management Plan in full compliance with Orange County National Pollutant Discharge Elimination System (NPDES) Storm Water Implementation Agreement and San Juan Capistrano Municipal Code Section 8-14, or abandons the project site, or suspends work for more than twenty working days other than previously prescribed, City shall have the right to immediately declare a default and to make demand on the surety for performance. 5. Restoration of Site. San Juan Capistrano Municipal Code Section 8-2.09 allows the City to require bonding as security to ensure against adverse aesthetic impacts arising from uncompleted grading, drainage and/or improvements which includes illicit non - storm drain water discharge. The purpose of this bonding shall be to restore the property to a safe and acceptable condition if the Developer defaults. This restoration shall include but not be limited to the following: A. Dismantle and/or demolish improvements; B. Grade property to its original contours as shown on the approved grading plans. C. Remove all debris and construction materials from the site; and D. Install erosion and silt control devices, including hydroseeding, to insure a uniform vegetative cover, or equivalent stabilization measures which include the use of such Best Management Practices as blankets, fiber matrices, catch basin filters, or other erosion 0 • as blankets, fiber matrices, catch basin filters, or other erosion resistant soil coverings or treatments to satisfaction of the Director of Engineering and Building. 6. Attorney's Fees. Developer agrees to pay City such sum as the court may judge as reasonable for the legal services of an attorney representing the City in an action brought to enforce or interpret the obligations of this agreement, and such sum shall be made a part of any judgment in such action against Developer if such action is determined in favor of said City. 7. Developer's Work in Safe Condition. Developer shall perform all work in a safe workmanlike manner and shall take such precautions as may be necessary to warn and protect the public from any dangerous condition caused by the construction of said improvements. 8. Liabili . Developer shall hold City, its officers, and employees harmless from any and all claims, demands, causes of action, liability or loss of any sort because of, or arising out of, the acts or omissions of Developer, his contractor, subcontractors, agents or employees in the performance of this agreement. In witness whereof, the parties have executed this agreement as of n� 2g , 20 0 t, at San Juan Capistrano, California. Developer By: (Signee) (Title) of r,�r✓e Approved a jrto Form: — 0/� -wV By: khn Shaw City Attorney City of San Juan Capistrano By: Sam Shoucair Senior Engineer 0 9 EXHIBIT 'W' SCHEDULE FOR COMPLETION OF IMPROVEMENTS Completion Date Task 04/01/2008 Rough Grade Certification 07/31/2008 Landscape Irrigation 08/15/2008 Landscape Planting 0 0 EXHIBIT "B" CONDITIONS FOR COMPLETION OF IMPROVEMENTS 1. The grading for this project shall be in strict conformance with the grading plans as well as the San Juan Capistrano Municipal Code. 2. Grading operations shall commence within fourteen (14) calendar days after issuance of Grading Permit. Winter grading will be conducted in strict accordance with the dynamic erosion and silt control plan submitted by the Developer, and approved by the City. This erosion and silt control plan reflects erosion and silt mitigation measures for expected grading conditions as the work progresses through the winter season and shall not be amended except with the permission of the City. In the event Developer does not wish to implement winter grading, or permission for winter grading is rescinded, static erosion and silt control plans reflecting current conditions of grading shall be submitted within ten (10) days of cessation of work. These plans shall: 1. Identify all pollutant sources including sources of sediment that may affect the quality of storm water discharges associated with the construction activity. 2. Include the erosion and sediment control planting and hydroseeding to insure a uniform vegetative cover or equivalent stabilization measures which include the use of such Best Management Practices as blankets, fiber matrices, catch basin filters or other erosion resistant soil covering or treatments to the satisfaction of the City Engineer. 3. Suspension in excess of twenty (20) working days of work authorized by approved grading plans and grading permit for subject property, including erosion and sediment control measures and landscaping and irrigation, shall constitute default of this agreement. 4. The supervising civil engineer and soils engineer shall file biweekly progress reports of all grading operations with the Building Official. An interim compaction report, for that work completed at the time work is suspended for the rainy season, shall be filed with the Building Official. This interim report shall conform to the grading code requirements for final compaction reports. 5. Contractor shall control dust to the satisfaction of the Building Official or his deputy. During grading, Contractor shall keep water truck on site and dampen work area, grounds, and loaded trucks. 6. Grading operations suspended during the rainy season shall be resumed no later than 15 days from date of suspension termination. 7. Installation of interim erosion and sediment control devices and systems shall commence within seven (7) days after rough grade certification has been approved by the Building Official and must be completed within fifteen (15) days of rough grad certification. Final erosion and sediment controls devices, planting, landscaping and irrigation systems shall be installed prior to final inspection of the grading permit. 8. All work shall be performed in strict observation of the Hours of Operation in accordance with San Juan Capistrano Municipal Code Section 8-1.03. 9. Contractor shall adhere to conditions of haul route permit and encroachment permit issued by the City Engineer. 10. Parking for construction crew is to be on-site. • 0 MEMORANDUM March 5, 2008 TO: Meg Monahan, City Clerk FROM: Deena Berens, Senior Permit Technician SUBJECT: Grading Surety Agreement, Capistrano Village — 32312 Camino Capistrano Please find attached for your records the original Grading Surety Agreement for 32312 Camino Capistrano and original Certificate of Deposit, dated 3/04/08 through Pacific Mercantile Bank, account # 2728525 showing the grading deposit in the amount of $10,384.00 for bond placement. Attachment 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493.1171 (949) 493-1053 F" www sanjuancapistrano. org November 17, 2008 Pacific Mercantile Bank 31601 Avenida Cerritos #100 San Juan Capistrano, CA 92675 RE: Release of Surety - Certificate of Deposit - Daniel L. Friess To Whom it May Concern: MEMBERS OF THE CITY COUNCIL SAM ALLEVATO THOMAS W. HRIBAR MARK NIELSEN JOE SOTO DR. LONDRES USO The City of San Juan Capistrano hereby fully and forever releases and discharges the following Certificate of Deposit receipt that was placed as surety: By: Daniel L. Friess Certificate of Deposit Receipt: Account No. 2728525 Amount: $10,384.00 Project Name: Capistrano Village Grading Permit No: B07-1195 The original - released - Certificate of Deposit Receipt is enclosed. If you have any questions, please do not hesitate to call me at (949) 443-6308. Attachment: Certificate of Deposit Receipt # Released to and Accepted by: Date: / (- -7 - C7 6 San Juan Capistrano: Preserving the Past to Enhance the Future 10 Pnnletl on 100% recycletl p;per E 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493.1053 FAX www.sanjuancapistrano.org November 17, 2008 Pacific Mercantile Bank 31601 Avenida Cerritos #100 San Juan Capistrano, CA 92675 RE: Release of Surety — Certificate of Deposit — Daniel L. Friess To Whom it May Concern: MEMBERS OF THE CITY COUNCIL SAM ALLEVATO THOMAS W. HRIBAR MARK NIELSEN JOESOTO DR. LONORES USO The City of San Juan Capistrano hereby fully and forever releases and discharges the following Certificate of Deposit receipt that was placed as surety: By: Daniel L. Friess Certificate of Deposit Receipt: Account No. 2728525 Amount: $10,384.00 Project Name: Capistrano Village Grading Permit No: B07-1195 The original — released — Certificate of Deposit Receipt is enclosed. If you have any questions, please do not hesitate to call me at (949) 443-6308. Sincerely, ,MMC :ertificate of Deposit Receipt # 2728525 Released to and Accepted by: Date: San Juan Capistrano: Preserving the Past to Enhance the Future 40 Pnnletl on 100% recycled paper RELEAS Date: City Clerk City of San PACIFIC] Certificate of Deposit Receipt MGRCe'ART!L.F ( BANK This receipt is issued to: Account Number: 2728525 IRA Number: DANIEL L, FRIESS CD IS PAYABLE TO CITY OF SAN JUAN CAPISTRANO Amount $ 10.384.00 Date Opened 03/04/2008 31505 PASEO CHRISTINA Term 6 Months SAN JUAN CAPISTRANO CA 92675 Maturity Date 09/04/2008 Interest Rate 3 1 s % Annual Percentage Yield 3.24 % PACIFIC MERCANTILE BANK 31601 AVENIDA CERRITOS, X100 SAN JUAN CAPISTRANO, CA 92675 The account evidenced by this receipt is subject to and further explained in the terns and conditions contained in the account agreement and account disclosures. The account is Not Negotiable and Not Transferable. Only the items checked apply. X Fixed Interest Rate ❑ Variable Interest Rate ® Additions Permitted ® Automatically Renewable ❑ Single Maturity (not automatically renewable) ❑ Callable ❑ Notice Account Interest will be: ❑ mailed to the owner(s). (R{ added to principal (compounded). ❑ to account No. ... .......... .r,o.,,, N,,,,, �D'� y paid ❑ FIXED RATE FOR 6MONTHS RATE SUBJECT TO CHANGE AT MATURITY n� 1994 Bankers Systems. Inc., St. Cloud, MN Form CDREC-BK-LAZ 8/7/2002 (gage 1 o11) RELEAS Date: City Clerk City of San PACIFIC MERCANTILE BANK • • 31601 AVENIDA CERRITOS, #100 SAN JUAN CAPISTRANO, CA 92675 TRUTH IN SAVINGS DISCLOSURE FOR TIME ACCOUNTS Terms following a ❑ apply only if checked. Acct:001 101 Personal Acct #: 2728525 Date: 03/04/2008 ❑ The interest rate and annual percentage yield stated below are accurate as of the date printed above. If you would like more current rate and yield information please call us at 949487-420 This disclosure contains the rules which govern your deposit account. Unless it would be inconsistent to do so, words and phrases used in this disclosure should be construed so that the singular includes the plural and the plural includes the singular. P9 FIXED RATE: ® The interest rate for your account is 3.19 % with an annual percentage yield of 3.24 %. We will pay this rate until the maturity date. , ❑ The interest rate and annual percentage yield for your account depend upon the applicable rate tier. We will pay these rates ❑ VARIABLE RATE: ❑ The interest rate for your account is % with an annual percentage yield of %. Your interest rate and annual percentage yield may change. ❑ The interest rate and annual percentage yield for your account depend upon the applicable rate tier. The interest rate and annual percentage yield for these tiers may change. Determination of Rate: ❑ At our discretion, we may change the interest rate on your account. ❑ The interest rate for your account ❑ The fixed initial rate is not determined by this rule. ❑ The initial interest rate on your account Subsequent rates Frequency of Rate Change: ❑ We may change the interest rate on your account ❑ Your initial interest rate will not change We may change the interest rate on your account at that time and thereafter, Limitations on Rate Changes: ❑ The interest rate for your account will not by more than each E5CC�­r-i'mI,® 01992 Bankers systems. Inc.. 51. Cloud, MN Form TSO -TIME 6/17/2005 ❑ The interest rate will not be less or more than %. ❑ The interest rate will not the interest rate initially disclosed to you. o� COMPOUNDING AND CREDITING: IN Frequency -Interest will be compounded daily Interest will be paid monthly as per instruction on file at opening ® Withdrawal of Interest Before Maturity. The annual percentage yield assumes that interest remains on deposit until maturity. A withdrawal of interest will reduce earnings. ❑ Required Interest Distribution. This account requires the distribution of interest and does not allow interest to remain in the account. IN Effect on Closing an Account. If you close your account before interest is credited, you will not receive the accrued interest. MINIMUM BALANCE REQUIREMENTS: ® To Open the Account. You must deposit at least $ to open this account. ® To Obtain the Annual Percentage Yield Disclosed. ® You must maintain a minimum balance of $ in the account each day to obtain the disclosed annual percentage yield. ❑ You must maintain a minimum average daily balance of S to obtain the disclosed annual percentage yield. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period. The period we use is BALANCE COMPUTATION METHOD: ® Daily Balance Method. We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day. ❑ Average Daily Balance Method. We use the average daily balance method to calculate interest on your account. This method applies a periodic rate to the average daily balance in the account for the period.. The average daily balance is calculated by adding the principal In the account for each day of the period and dividing that figure by the number of days in the period. The period we use is ACCRUAL OF INTEREST ON NONCASH DEPOSITS: 29 Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks). ❑ Interest begins to accrue you deposit noncash items (for example, checks). MATURITY DATE: ® Your account will mature on 09/04/2008 ❑ Your account will mature in ❑ We may accelerate the maturity or call this account, at our (page 1 of 2) 0 ❑ Your account has no definite maturity date. To withdraw any or part of this deposit without penalty, we must receive at least written notice from you of your intention to make a withdrawal. The notice must specify the exact amount and date of the intended withdrawal. Interest will no longer accrue after the withdrawal date specified in your notice on the amount specified in your notice. We may terminate this account by mailing a notice to you of our intention to terminate at least ten days before the termination date. The date of intended withdrawal of the last funds in the account, or the termination date, is considered to be the maturity date. TIME DEPOSIT WITHDRAWAL LIMITATIONS: ® Principal: May not be withdrawn prior to the maturity date. An early withdrawal penalty will be assessed and the certificate closed if funds are withdrawn prior to maturity. IRI Interest: can be withdrawn only upon instructions received by us at time of account opening Isee Interest timing below). After opening withdrawal of interest is considered a withdrawal of principal (see above/. ® Interest Timing: You can withdraw interest monthly only if pre -arranged at time of account opening. EARLY WITHDRAWAL PENALTY: A penalty ® may ❑ will be imposed for withdrawals before maturity. The penalty will be an amount equal to: ❑ Seven days' interest on the amount withdrawn if the withdrawal is made within the first six days after the deposit. ❑ 180 days' interest on the amount withdrawn ❑ 90 days' interest on the amount withdrawn ❑ 30 days' interest on the amount withdrawn IRI See notice of pehalty for early withdrawal. ❑ The interest rate we will use to calculate the interest forfeiture will be: We will charge the penalty first against any interest then in the account, and any excess will be deducted from the amount you withdraw. ❑ If you withdraw some of your funds before maturity, the interest rate for the remaining funds in your account will be % with an annual percentage yield of ❑ Minimum Balance Accounts. We reserve the right to treat any withdrawal which would reduce the balance remaining in the account below the required minimum initial deposit or minimum balance as a withdrawal of the entire account balance and calculate the amount of the penalty accordingly. In certain circumstances, such as the death or incompetence of an account owner, the law permits, or in some cases requires, the waiver of the early withdrawal penalty. Other exceptions may also apply, for example, if this is part of an IRA or other tax-deferred savings plan. ADDITIONS TO ACCOUNT: ❑ You may make no more than deposits into your account each ❑ You may only make deposits into your account 40 ❑ You may make unlimited deposits into your account. ❑ You may not make any deposits into your account until maturity. ❑ The minimum amount you can deposit is S ❑ The maximum amount you can deposit is S ® You may make 3 deposits into your account before maturity if your account has a term of six months or longer. You may not make deposits to accounts with terms of less than six months. RENEWAL POLICY: ❑ Single Maturity: This account will not renew automatically at maturity. If you do not renew the account, ® Automatic Renewal This account will automatically renew at maturity. ® You will have 10 calendar days after the maturity date to withdraw funds without penalty. ® Exceptions to Automatic Renewal., This account will not renew if you withdraw the funds on the maturity date or If we receive written notice from you on or before the maturity date of your intention not to renew. ❑ There is no grace period following the maturity of this account to withdraw funds without penalty. RENEWAL TERMS: ® Same Term As Original' Each renewal term will be the same as the original term, beginning on the maturity date. ❑ Different Term: Each renewal term will be beginning on the maturity date. RENEWAL INTEREST CALCULATION: ❑ Same Interest Calculation: Interest will be calculated on the same basis as during the original term. ® Different Interest Calculation: The interest rate will be the rate we offer on accounts which have similar terms, minimum balances and other features as the original time deposit. BONUSES: ❑ You will as a bonus ❑ You must maintain a minimum of $ to obtain the bonus. ❑ To earn the bonus ❑ PRE -MATURITY NOTICE: Your account will mature on . If the account renews, the new maturity date will be ❑ The interest rate for the renewed account will be % with an annual percentage yield of ❑ The interest rate and annual percentage yield have not yet been determined. They will be available on Please call to learn the interest rate and annual percentage yield for your new account. ❑ ADDITIONAL TERMS: r ® (t) 1992 Bankers Systems, Inc., St. Cloud, MN Form TSD rME 6/17/2005 ipage 2 of 2) TERMS AND CONDITIONS OF ACCOUNT AGREEMENT - This document, along with any other documents we give you pertaining to your account(s), is a contract that establishes rules which control your accounts) with us. This agreement is subject to applicable federal laws and the laws of the state of California (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 either on the signature card for your account or in some other document. 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. 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 Pe 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 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. This includes liability for our costs to collect the deficit including, to the extent permitted by law, our reasonable attorneys' fees. 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"). 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 following business day that we are open. WITHDRAWALS - Unless clearly indicated otherwise on the account records, any of you, acting alone, who signs in the space designated for signatures on the signature card 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 signing the signature card to indorse any item payable to you or your order for deposit to this account or any other transaction with us. We may charge your account for a 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. We may refuse any withdrawal or transfer request which you attempt on forms not approved by ds, by any method we do not specifically permit, which is greater in number than the frequency permitted, or which is for an amount greater or less than any withdrawal limitations. Even if we honor a nonconforming request, we may treat continued abuse of the stated limitations (if any) as your act of closing the account. We will use the date the transaction is completed by us (as opposed to the date you initiate it) to apply the frequency limitations. The fact that we may honor withdrawal requests that overdraw the available account balance does not obligate us to do so later. See the funds availability policy disclosure for information about when you can withdraw funds you deposit. For those accounts far 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 require not less than 7 days' notice in writing before each withdrawal from an interest-bearing account other than a time deposit. 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. ACH AND WIRE TRANSFERS - This agreement is subject to Article 4A of the Uniform Commercial Code in the state in which you have your account with us. If you originate a fund transfer for which Fedwire is used, 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 credit to 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. 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. As used in this agreement "party" means a person who, by the terms of the account, has a present right, subject to request, to payment from a multiple -party account other than as an agent. Individual Account - is an account in the name of one person. Joint Account - This account or certificate is owned by the named parties. Upon the death of any of them, ownership passes to the survivor(s). Joint Account of Husband and Wife with Right of Survivorship - This account or certificate is owned by the named parties, who are husband and wife, and is presumed to be their community property. Upon the death of either of them, ownership passes to the survivor. Community Property Account of Husband and Wife - This account or certificate is the community property of the named parties who are husband and wife. The ownership during lifetime and after the death of a spouse is determined by the law applicable to community property generally and may be affected by a will. Tenancy in Common Account - This account or certificate is owned by the named parties as tenants in common. Upon the death of any party, the ownership interest of that party passes to the named pay -on -death payees) of that party or, if none, to the estate of that party. P.O.D. Account with Single Party - This account or certificate is owned by the named party. Upon the death of that party, ownership passes to the named pay -on -death payeels). P.O.D. Account with Multiple Parties - This account or certificate is owned by the named parties. Upon the death of any of them, ownership passes to the survivor(s). Upon the death of all of them, ownership passes to the named pay -on -death payee(s). Totten Trust Account - (subject to this form) - It two or more of you create this account, you own the account jointly with survivorship. Beneficiaries cannot withdraw unless: (1) all persons creating the account die, and (2) the beneficiary is then living. If two or more beneficiaries are named and survive the death of all persons creating the account, such beneficiaries will own this account in equal shares, without right of survivorship. The persons) creating either of these account types reserves the right to: (1) change beneficiaries, (2) change account types, and (3) withdraw all or part of the account funds at any time. Trust Account Subject to Separate Agreement - We will abide by the terms of any separate agreement which clearly pertains to this account and which you file with us. Any additional consistent terms stated on this form will also apply. BUSINESS ACCOUNTS - Earnings in the form of interest, dividends, or credits will be paid only on collected funds, unless otherwise provided by law or our policy. We may require the governing body of the legal entity opening the account to give us a separate authorization telling us who is authorized to act on its behalf. We will honor the authorization until we actually receive written notice of a change from the governing body of the legal entity. STOP PAYMENTS - You must make any stop -payment order in the manner required by law and we must receive it in time to give us a reasonable opportunity to act on it before our stop -Payment cutoff time. To be effective, your stop -payment order must precisely identify the number, date and amount of the item, and the payee. You may stop payment on any item drawn on your account whether you sign the item or not, if you have an equal or greater right to withdraw from this account than the person who signed the item. A release of the stop -payment request may be made only by the person who initiated the stop -payment order. Our stop -payment cutoff time is one hour after the opening of the next banking day after the banking day on which we receive the item, Additional limitations on our obligation to stop payment are provided by law (e.g., we paid the item in cash or we certified the item). AMENDMENTS AND TERMINATION - We may change any term of this agreement. Rules governing changes in interest rates are provided separately. 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. Notice from us to any one of you is notice to all of you. STATEMENTS - You must examine your statement of account with "reasonable 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 either share the loss with us, or bear the loss entirely yourself (depending on whether we used ordinary care and, if not, whether we contributed to the loss). The loss could be not only with respect to items on the statement but other items with unauthorized signatures or alterations by the same wrongdoer. 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 30 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, forgeries, or any other errors in your account within 60 days of when we first send or make the statement available, you cannot assert a claim against us on any items in that statement, and as between you and us the loss will be entirely yours. This 60 -day limitation is without regard to whether we used ordinary care. The limitation in this paragraph is in addition to that contained in the first paragraph of this section. ACCOUNT TRANSFER . This account may not be transferred or assigned without our prior written consent. DIRECT DEPOSITS - If, in connection with a direct deposit plan, we deposit any amount in an account which should have been returned to the Federal Government for any reason, you authorize us to deduct the amount of our liability to the Federal 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, we may restrict or prohibit further use of this account if you tai( to comply with the requirements we have imposed within a reasonable time. c�a /page 2 nl 3) 01983, 1990, 1991 Bankers Systems, Inc., St. Cloud, MN Form MPSC-LAZ-CA 4/19/2004 SETOFF -.We may (without prior notice and lepennitted 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. The amount of the setoff may be further limited by applicable law. 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 setoff does not apply to this account if: (a) it is an IRA or other tax-deferred retirement 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. 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 setoff. AUTHORIZED SIGNERRdividual Accounts only) - A single individual is the owner. The authorized signer is merely designated to conduct transactions on the owner's behalf. We undertake no obligation to monitor transactions to determine that they are on the owner's behalf. 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 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. RESTRICTIVE LEGENDS - We are not required to honor any restrictive legend on checks you write unless we have agreed in writing to the restriction. Examples of restrictive legends are "must be presented within 90 days" or "not valid for more than $1,000.00:" FICTITIOUS BUSINESS NAME ACCOUNTS - If the name in which the account is held is fictitious, each account holder represents that one or more of the account holders have the right to use that name and have fulfilled all legal requirements for using and or doing business under that name. (page 3 of 3/ �e�2- % @1983, 1990, 1991 Bankers Systems, Inc., St. Owe, MN Form MPSC LAZ-GA 4/19/2004 The Bank may require, at its opo, a certified copy of a court or administrative order in cases of incompetency for the waiver of an early withdrawal penalty. To waive the early withdrawal penalty due to disability, the Bank may, at its option, require a physician's statement. See your plan disclosure if this account is part of an IRA or other tax qualified plan. IRAs: Withdrawals, Penalties and Fees Withdrawals made prior to age 59'/2 These withdrawals may be subject to an IRS pre-mature distribution penalty and possible state taxes. Additionally, Bank early withdrawal penalties may apply. Withdrawals made from age 59'/2 to 70'/2 years of age Withdrawals are not subject to IRS pre-mature distribution penalty. These withdrawals are subject to ordinary income taxes and are reportable on form 1099R to the IRS. The Bank will allow one distribution per year with no penalty; all other distributions are subject to early withdrawal penalties. Withdrawals made upon obtaining 70'/2 years of age The IRS requires IRA owners to take minimum distributions each year starting with the year they turn age 70'/2 and are not subject to IRS pre-mature distribution penalties. These withdrawals are subject to ordinary income taxes and are reportable on form 1099R to the IRS. The Bank will waive the early withdrawal penalty on these distributions and will report such distributions on form 1099 to the IRS. Fees An annual custodial fee of $30.00 will be assessed if you keep a balance of less than $25,000.00 in your plan. A $50.00 custodial account transfer fee will be charged for all IRAs that transfer to another financial institution or close prior to maturity to cover custodial recordkeeping costs. Automatically renewable time account This account will automatically renew at maturity. You may prevent renewal if we receive written notice from you before maturity of your intention not to renew or you withdraw the funds in the account at maturity (or within the grace period mentioned below, if any). We can prevent renewal if we mail notice to you at least 30 calendar days before maturity. Each renewal term will be the same as the original term, beginning on the maturity date. The interest rate will be the same we offer on new time deposits on the maturity date which have the same term, minimum balance (if any) and other features as the original time deposit. You will have ten calendar days after maturity to withdraw the funds without a penalty MEMORANDUM TO: Meg Monahan, City Cleric FROM: Nasser Abbaszadeh, Public Works Director SUBJECT: Grading Bond Release, Capistrano Village 0 October 30, 2008 This memorandum is authorization to release the grading bonds posted for Capistrano Village, located at 32312 Camino Capistrano, SJC. The grading for the project has been completed and the bonds can now be released. A certificate of deposit, account # 2728525 through Pack Mercantile Bank in the amount of $10,384.00 was posted as security. Please find attached a copy of the Surety Agreement and certificate of deposit for your use. if you have any questions, please contact me. Attachments Contact information: Dan Friess 31505 Paseo Christina San Juan Capistrano, CA 92675 (949)533-0812 COPY GRADING SURETY AGREEMENT THIS AGREEMENT is made by and between the CITY OF SAN JUAN CAPISTRANO, a municipal corporation, hereinafter referred to as the "City" and Dan Friess, owner referred to as "Developer". WITNESSETH WHEREAS, City will issue Grading Permit No B07-1195 to Developer to construct certain designated improvements which constitute a portion of that real property at the location of 32312 Camino Capistrano, commonly referred to as Capistrano Village . WHEREAS, San Juan Capistrano Municipal Codes Section 8-2.08 requires the posting of financial security to secure the faithful performance and labor and materials for the grading and installation of improvements connected with issuance of grading permits including the construction of drainage and protection devices and any other corrective work to remove and eliminate engineering and geological hazards. WHEREAS, San Juan Capistrano Municipal Code Section 8-2.09 authorizes the Building Official to require additional bonding as security to ensure against adverse aesthetic impacts arising from incomplete grading and/or improvements from development projects which have not been completed. WHEREAS, the Building Official finds that the proposed project site is highly prominent and visible to the community, has unique topographic features or involves substantial grading of slope areas. NOW, THEREFORE, in consideration of the premises and promises hereinafter contained, City and Developer agree as follows: 1. Developer's Improvements Obligations. Developer shall, at its sole cost and expense, provide and fumish all labor, materials and equipment for the construction of grading improvements as approved by the City Engineer. The grading permit and plans, which describe all the work to be constructed per this agreement, are on file in the office of the City's Building Official. 2. Developer's Security. Developer shall provide a cash deposit, Certificate of Deposit or a bond by a duly authorized corporate surety subject to the approval of the City Attorney, or as approved by the City Engineer, to secure Developer's improvement obligations required under this agreement. The amount of the bond shall be $10,384.00 for all onsite grading improvements as approved by the City Engineer. This security shall also serve as security for restoration of the site. A copy of the surety instrument, as approved by the City Attorney. 3. Completion of Improvements. To ensure the protection of the public safety, health and welfare, Developer shall construct all said improvements in accordance with the schedule as set forth in Exhibit "A", and the conditions as set forth in Exhibit "B". 4. Developer Default. In the event Developer does not complete the required improvements, including erosion and silt control measures within the time required, using Best Management Practices (BMP) in implementing a Water Quality Management Plan in full compliance with Orange County National Pollutant Discharge Elimination System (NPDES) Storm Water Implementation Agreement and San Juan Capistrano Municipal Code Section 8-14, or abandons the project site, or suspends work for more than twenty working days other than previously prescribed, City shall have the right to immediately declare a default and to make demand on the surety for performance. 5. Restoration of Site. San Juan Capistrano Municipal Code Section 8-2.09 allows the City to require bonding as security to ensure against adverse aesthetic impacts arising from uncompleted grading, drainage and/or improvements which includes illicit non - storm drain water discharge. The purpose of this bonding shall be to restore the property to a safe and acceptable condition if the Developer defaults. This restoration shall include but not be limited to the following: A. Dismantle and/or demolish improvements; B. Grade property to its original contours as shown on the approved grading plans. C. Remove all debris and construction materials from the site; and D. Install erosion and silt control devices, including hydroseeding, to insure a uniform vegetative cover, or equivalent stabilization measures which include the use of such Best Management Practices as blankets, fiber matrices, catch basin filters, or other erosion as blankets, fiber matrices, catch basin filters, or other erosion resistant soil coverings or treatments to satisfaction of the Director of Engineering and Building. 6. Attorney's Fees. Developer agrees to pay City such sum as the court may judge as reasonable for the legal services of an attorney representing the City in an action brought to enforce or interpret the obligations of this agreement, and such sum shall be made a part of any judgment in such action against Developer if such action is determined in favor of said City. 7. Developer's Work in Safe Condition. Developer shall perform all work in a safe workmanlike manner and shall take such precautions as may be necessary to warn and protect the public from any dangerous condition caused by the construction of said improvements. 8. Liability. Developer shall hold City, its officers, and employees harmless from any and all claims, demands, causes of action, liability or loss of any sort because of, or arising out of, the acts or omissions of Developer, his contractor, subcontractors, agents or employees in the performance of this agreement. In witness whereof, the parties have executed this agreement as of EA/ja2�Mid 2`1 , 20 0 Developer By: (Signee) (Title) Approved aft to For : By: hn Shaw City Attorney at San Juan Capistrano, California. City of San /Juan Capistrano O By: Sam Shoucair Senior Engineer 0 EXHIBIT "A" SCHEDULE FOR COMPLETION OF IMPROVEMENTS Completion Date Task 04/01/2008 Rough Grade Certification 07/31/2008 Landscape Irrigation 08/15/2008 Landscape Planting 0 EXHIBIT "B" CONDITIONS FOR COMPLETION OF IMPROVEMENTS 1. The grading for this project shall be in strict conformance with the grading plans as well as the San Juan Capistrano Municipal Code. 2. Grading operations shall commence within fourteen (14) calendar days after issuance of Grading Permit. Winter grading will be conducted in strict accordance with the dynamic erosion and silt control plan submitted by the Developer, and approved by the City. This erosion and silt control plan reflects erosion and silt mitigation measures for expected grading conditions as the work progresses through the winter season and shall not be amended except with the permission of the City. In the event Developer does not wish to implement winter grading, or permission for winter grading is rescinded, static erosion and silt control plans reflecting current conditions of grading shall be submitted within ten (10) days of cessation of work. These plans shall: 1. Identify all pollutant sources including sources of sediment that may affect the quality of storm water discharges associated with the construction activity. 2. Include the erosion and sediment control planting and hydroseeding to insure a uniform vegetative cover or equivalent stabilization measures which include the use of such Best Management Practices as blankets, fiber matrices, catch basin filters or other erosion resistant soil covering or treatments to the satisfaction of the City Engineer. 3. Suspension in excess of twenty (20) working days of work authorized by approved grading plans and grading permit for subject property, including erosion and sediment control measures and landscaping and irrigation, shall constitute default of this agreement. 4. The supervising civil engineer and soils engineer shall file biweekly progress reports of all grading operations with the Building Official. An interim compaction report, for that work completed at the time work is suspended for the rainy season, shall be 0 0 filed with the Building Official. This interim report shall conform to the grading code requirements for final compaction reports. 5. Contractor shall control dust to the satisfaction of the Building Official or his deputy. During grading, Contractor shall keep water truck on site and dampen work area, grounds, and loaded trucks. 6. Grading operations suspended during the rainy season shall be resumed no later than 15 days from date of suspension termination. 7. Installation of interim erosion and sediment control devices and systems shall commence within seven (7) days after rough grade certification has been approved by the Building Official and must be completed within fifteen (15) days of rough grad certification. Final erosion and sediment controls devices, planting, landscaping and irrigation systems shall be installed prior to final inspection of the grading permit. 8. All work shall be performed in strict observation of the Hours of Operation in accordance with San Juan Capistrano Municipal Code Section 8-1.03. 9. Contractor shall adhere to conditions of haul route permit and encroachment permit issued by the City Engineer. 10. Parking for construction crew is to be on-site. 0 pr�ctrlc: Certificate of Deposit Receipt, „r® T1L.— ,... aA 1ct This receipt is issued to: Account Number: 2728525 IRA Number: 'DANIEL L. FRIESS CO IS PAYABLE TO CITY OF SAN JUAN CAPISTRANO Amount $ 10.384.00 Date Opened 03/04/2008 31505 PASEO CHRISTINA Tenn 6 Months . SAN JUAN CAPISTRANO CA 92675 - Maturity Date 09/04/2008 ..... Interest Rate 3.19% Annual Percentage Yield 3.24% PACIFIC MERCANTILE BANK 31601 AVENIDA CERRITOS, #100 SAN JUAN CAPISTRANO, CA 92675 The account evidenced by this receipt is subject to and further explained in the terms and conditions contained in the account agreement and account disclosures. The account is Not Negotiable and Not Transferable. Only the items checked apply. ii➢ Fixed Interest Rate ❑ Variable interest Rate ® Additions Permitted ® Automatically Renewable ❑ Single Maturity (not automatically renewable) ❑ Callable ❑ Notice Account Interest will be: _1 I_ ❑ mailed to the owner(s). ® added to principal (compounded). El paid to account No. 13 FIXED RATE FOR 6MONTHS RATE SUBJECT TO CHANGE AT MATURITY N �D'� ^^^� 01994 Bankers Systems, Inc.. St. amid, MN form CDREC-9s-LAZ 8DI2002 I I w9e i of 1) PACIFIC MERCANTILE BANK • • 31601 AVENIDA CERRITOS, #100 SAN JUAN CAPISTRANO, CA 92675 TRUTH IN SAVINGS DISCLOSURE FOR TIME ACCOUNTS Terms following a ❑ apply only if checked. Acct:1101 Personal Acct #: 2728525 Date: 03/04/2008 ❑ The interest rate and annual percentage yield stated below are accurate as of the date printed above. If you would like more current rate and yield information please call us at 949-487-420 This disclosure contains the rules which govern your deposit account. Unless it would be inconsistent to do so, words and phrases used in this disclosure should be construed so that the singular includes the plural and the plural includes the singular. ® FIXED RATE: ID The interest rate for your account is 3.19 % with an annual percentage yield of 3.24 %. We will pay this rate until the maturity date. ❑ The interest rate and annual percentage yield for your account depend upon the applicable rate tier. We will pay these rates ❑ VARIABLE RATE: ❑ The interest rate for your account is % with an annual percentage yield of %. Your interest rate and annual percentage yield may change. ❑ The interest rate and annual percentage yield for your account depend upon the applicable rate tier. The interest rate and annual percentage yield for these tiers may change. Determination of Rate: ❑ At our discretion, we may change the interest rate on your account. ❑ The interest rate for your account ❑ The fixed initial rate is not determined by this rule. ❑ The initial interest rate on your account Subsequent rates Frequency of Rate Change: ❑ We may change the interest rate on your account ❑ Your initial interest rate will not change We may change the interest rate on your account at that time and thereafter. Limitations on Rate Changes: ❑ The interest rate for your account will not by more than each f5qj5&W 01992 Bankers Systems, Inc., St. Cloud, MN Form TSD -TIME 6/17/2005 ❑ The interest rate will not be less than % or more than %. ❑ The interest rate will not the interest rate initially disclosed to you. COMPOUNDING AND CREDITING: IN Frequency -Interest will be compounded daily Interest will be paid monthly as per instruction on file at opening IN Withdrawal of Interest Before Maturity. The annual percentage yield assumes that interest remains on deposit until maturity. A withdrawal of interest will reduce earnings. ❑ Required Interest Distribution. This account requires the distribution of interest and does not allow interest to remain in the account. IN Effect on Closing an Account. If you close your account before interest is credited, you will not receive the accrued interest. MINIMUM BALANCE REQUIREMENTS: ® To Open the Account. You must deposit at least $ to open this account. IN To Obtain the Annual Percentage Yield Disclosed. IN You must maintain a minimum balance of II in the account each day to obtain the disclosed annual percentage yield. ❑ You most maintain a minimum average daily balance of $ to obtain the disclosed annual percentage yield. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period. The period we use is BALANCE COMPUTATION METHOD: ® Daily Balance Method. We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day. ❑ Average Daily Balance Method. We use the average daily balance method to calculate interest on your account. This method applies a periodic rate to the average daily balance in the account for the period. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period. The period we use is ACCRUAL OF INTEREST ON NONCASH DEPOSITS: IN Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks). ❑ Interest begins to accrue you deposit noncash items (for example, checks). MATURITY DATE: IN Your account will mature on 09/04/2008 ❑ Your account will mature in ❑ We may accelerate the maturity or call this account, at our /page r of 2/ 0 U Your account has no definite maturity date. To withdraw any or part of this deposit without penalty, we must receive at least written notice from you of your intention to make a withdrawal. The notice must specify the exact amount and date of the intended withdrawal. Interest will no longer accrue after the withdrawal date specified in your notice on the amount specified in your notice. We may terminate this account by mailing a notice to you of our intention to terminate at least ten days before the termination date. The date of intended withdrawal of the last funds in the account, or the termination date, is considered to be the maturity date. TIME DEPOSIT WITHDRAWAL LIMITATIONS: ® Principal. May not be withdrawn prior to the maturity date An early withdrawal penalty will be assessed and the certificate closed if funds are withdrawn prior to maturity. ® Interest: can be withdrawn only upon instructions received by us at time of account opening isee Interest timing below). After opening, withdrawal of interest is considered a withdrawal of principal (see above). ® Interest Timing: You can withdraw interest monthly only if pre -arranged at time of account opening. EARLY WITHDRAWAL PENALTY: A penalty ® may ❑ will be imposed for withdrawals before maturity. The penalty will be an amount equal to: ❑ Seven days' interest on the amount withdrawn if the withdrawal is made within the first six days after the deposit. ❑ 180 days' interest on the amount withdrawn ❑ 90 days' interest on the amount withdrawn ❑ 30 days' interest on the amount withdrawn ® See notice of penalty for early withdrawal. ❑ The interest rate we will .use to calculate the interest forfeiture will be: We will charge the penalty first against any interest then in the account, and any excess will be deducted from the amount you withdraw. ❑ If you withdraw some of your funds before maturity, the interest rate for the remaining funds in your account will be % with an annual percentage yield of ❑ Minimum Balance Accounts. We reserve the right to treat any withdrawal which would reduce the balance remaining in the account below the required minimum initial deposit or minimum balance as a withdrawal of the entire account balance and calculate the amount of the penalty accordingly. In certain circumstances, such as the death or incompetence of an account owner, the law permits, or in some cases requires, the waiver of the early withdrawal penalty. Other exceptions may also apply,, for example, if this is part of an IRA or other tax-deferred savings plan. ADDITIONS TO ACCOUNT: ❑ You may make no more than deposits into your account each ❑ You may only make deposits into your account ❑ You may make unlimited deposits into your account. ❑ You may not make any deposits into your account until maturity. ❑ The minimum amount you can deposit is S ❑ The maximum amount you can deposit is S ® You may make 3 deposits into your account before maturity if your account has a term of six months or longer. You may not make deposits to accounts with terms of less than six months. RENEWAL POLICY: ❑ Single Maturity: This account will not renew automatically at maturity. If you do not renew the account, ® Automatic Renewal., This account will automatically renew at maturity. ® You will have 10 calendar days after the maturity date to withdraw funds without penalty. IN Exceptions to Automatic Renewal.. This account will not renew if you withdraw the funds on the maturity date or if we receive written notice from you on or before the maturity date of your intention not to renew. ❑ There is no grace period following the maturity of this account to withdraw funds without penalty. RENEWAL TERMS: ® Some Term As Original: Each renewal term will be the same as the original term, beginning on the maturity date. ❑ Different Term: Each renewal term will be , beginning on the maturity date. RENEWAL INTEREST CALCULATION: ❑ Same Interest Calculation: Interest will be calculated on the same basis as during the original term. IN Different Interest Calculation: The interest rate will be the rate we offer on accounts which have similar terms, minimum balances and other features as the original time deposit. BONUSES: ❑ You will as a bonus ❑ You must maintain a of to obtain the bonus. ❑ To earn the bonus, ❑ PRE -MATURITY NOTICE: Your account will mature on . If the account renews, the new maturity date will be ❑ The interest rate for the renewed account will be % with an annual percentage yield of ❑ The interest rate and annual percentage yield have not yet been determined. They will be available on Please call to learn the interest rate and annual percentage yield for your new account. ❑ ADDITIONAL TERMS: ® 01992 Bankers Systems, Inc., St. Cloud, MN Form TSD -TIME 611712005 (page 2 of 2) 0 TERMS AND CONDITIONS OF YOUR ACCOUNT AGREEMENT - This document, along with any .other documents we give you pertaining to your accoun(s), is a contract that establishes rules which control your account(s) with us. This agreement is subject to applicable federal laws and the laws of the state of California (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. It 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 either on the signature card for your account or in some other document. As used in this document the words "we," "our," and "us" mean the financial institution and the words "you" and "your" mean the account holders) and anyone else with the authority to deposit, withdraw, or exercise control over the funds in the account. 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. LIAMLITY - You agree, tot yourself land 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 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 (table regardless of whether you signed the item or benefited from the charge or overdraft. This includes liability for aur costs to collect the deficit including, to the extent permitted by law, our reasonable attorneys' tees. 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"). 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 mag of Outside depository untit 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 following business day that we are open. WITHDRAWALS -Unless dearly indicated Otherwise on the account records, any of you, acting alone, who signs in the space designated for signatures on the signature card may withdraw of 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 signing the signature card to indorse any item payable to you or your Order for deposit to this account or any other transaction with us. We may charge your account for a 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. We may refuse any withdrawal or transfer request which you attempt on forms not approved by us, by any method we do not specifically permit, which is greater in number than the frequency permitted, or which is for an amount greater or less than any withdrawal limitations. Even if we honor a nonconforming request, we may treat continued abuse of the stated limitations (if any) as your act of closing the account. We will use the date the transaction is completed by us (as opposed to the date you initiate it) to apply the frequency limitations. The fact that we may honor withdrawal requests that overdraw the available account balance does not obligate us to do so later. See the funds availability policy disclosure for information about when you can withdraw funds you deposit. For those accounts for 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 require not less than 7 days' notice in writing before each withdrawal from an interest -beating account other than a time deposit. 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. ACH AND WIRE TRANSFERS - This agreement is subject to Article 4A of the Uniform Commercial Code in the state in which you have your account with us. If you originate a fund transfer for which Fedwire is used, 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(0 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 credit to 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. 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. As used in this agreement "party" means a person who, by the terms of the account, has a present right, subject to request, to payment from a multiple -party, account other than as an agent. Individual Account - is an account in the name of one person. Joint Account - This account or certificate is owned by the named parties. Upon the death of any of them, ownership passes to the survivor(s). Joint Account of Husband and Wife with Right of Survivorship - This account or certificate is owned by the named parties, who are husband and wife, and is presumed to be their community property. Upon the death of either of them, ownership passes to the survivor. Community Property Account of Husband and Wife - This account or certificate is the community property of the named parties who are husband and wife. The ownership during lifetime and after the death of a spouse is determined by the law applicable to community property generally and may be affected by a will. Tenancy in Common Account - This account or certificate is owned by the named parties as tenants In common. Upon the death of any party, the ownership interest of that party passes to the named pay -on -death payees) of that party or, if none, to the estate of that party. P.O.D. Account with Single Party - This account or certificate is owned by the named party. Upon the death of that party, ownership passes to the named pay -on -death payee(sl. P.O.D. Account with Multiple Parties - This account or certificate is owned by the named parties. Upon the death of any of them, ownership passes to the survivor(s). Upon the death of all of them, ownership passes to the named pay -on -death payeets). Totten Trust Account - (subject to this form) - If two or more of you create this account, you awn the account jointly with survivorship. Beneficiaries cannot withdraw unless: (1) all persons creating the account die, and (2) the beneficiary is then living. If two or more beneficiaries are named and survive the death of all persons creating the account, such beneficiaries will own this account in equal shares, without right of survivorship. The personts) creating either of these account types reserves the right to: (1) change beneficiaries, (2) change account types, and (3) withdraw all or part of the account funds at any time. Trust Account Subject to Separate Agreement - We will abide by the terms of any separate agreement which clearly pertains to this account and which you file with us. Any additional consistent terms stated on this form will also apply. BUSINESS ACCOUNTS - Earnings in the form of interest, dividends, or credits will be paid only on collected funds, unless otherwise provided by law or our policy. We may require the governing body of the legal entity opening the account to give us a separate authorization telling us who is authorized to act on its behalf. We will honor the authorization until we actually receive written notice of a change from the governing body of the legal entity. STOP PAYMENTS - You must make any stop -payment order in the manner required by law and we must receive it in time to give us a reasonable opportunity to act on it before our stop -payment cutoff time. To be effective, Your stop -payment order must precisely identify the number, date and amount of the item, and the payee. You may stop payment on any item drawn on your account whether you sign the item or not, if you have an equal or greater right to withdraw from this account than the person who signed the item. A release of the stop -payment request may be made only by the person who initiated the stop -payment order. Our stop -payment cutoff time is one hour after the opening of the next banking day after the banking day on which we receive the item. Additional limitations on our obligation to stop payment are provided by law le.g., we paid the item in cash or we certified the item). AMENDMENTS AND TERMINATION - We may change any term of this agreement. Rules governing changes in interest rates are provided separately. 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. Notice from us to any one of you is notice to all of you. STATEMENTS - You must examine your statement of account with "reasonable 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 fall to do either of these duties, you will have to either share the loss with us, or bear the loss entirely yourself (depending on whether we used ordinary care and, if not, whether we contributed to the loss). The loss could be not only with respect to items on the statement but other items with unauthorized signatures or alterations by the same wrongdoer. 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 30 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, forgeries, or any other errors In your account within 60 days of when we first send or make the statement available, you cannot assert a claim against us on any items in that statement, and as between you and us the lass 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. ACCOUNT TRANSFER - This account may not be transferred or assigned without our prior written consent. DIRECT DEPOSITS . If, in connection with a direct deposit plan, we deposit any amount in an account which should have been returned to the Federal Government for any reason, you authorize us to deduct the amount of our liability to the Federal 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, we may restrict or prohibit further use of this account if you fail to comply with the requirements we have imposed within a reasonable time. (iage 2 0/3) F r O 01983, 1990, 1991 Bankers Systems. Inc., St. Cloud, MN Form MPSC-LAZ,CA 4/19/2004 n SETOFF -.We may (without prior notice and 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. The amount of the setoff may be further limited by applicable law. If the debt arises from a note, "any due and payable debt" includes the total amount of which we are entitled to demand payment untler 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 setoff does not apply to this account if: (a) it is an IRA or other tax-deferred retirement account, or (b) the debt is created by a consumer credit transaction under a credit card plan Ibut 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. 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 setoff. 0 AUTHORIZED SIGNER (Individual Accounts only) - A single individual is the owner. The authorized signer is merely designated to conduct transactions on the owner's behalf. We undertake no obli9alien to monitor transactions to determine that they are on the owner's behalf. 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 regardless of by whom or by what means the facsimile signaturels) 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. RESTRICTIVE LEGENDS - We are not required to honor any restrictive legend on checks you write unless we have agreed in writing to the restriction. Examples of restrictive legends are "must be presented within 90 days" or .not valid for more than $1,000.00." FICTITIOUS BUSINESS NAME ACCOUNTS - It the name in which the account is held is fictitious, each account holder represents that one or more of the account holders have the right to use that name and have fulfilled all legal requirements for using and or doing business under that name. ® (Page 3 03/ 01993, 1990, 1991 Bankers Syatems, Inc., St. Claud, MN Form MPSC-IAZ-CA 4/19/2004 • 0 The Bank may require, at its option, a certified copy of a court or administrative order in cases of incompetency for the waiver of an early withdrawal penalty. To waive the early withdrawal penalty due to disability, the Bank may, at its option, require a physician's statement. See your plan disclosure if this account is part of an IRA or other tax qualified plan. IRAs: Withdrawals, Penalties and Fees Withdrawals made prior to age 59'/2 These withdrawals may be subject to an IRS pre -mature distribution penalty and possible state taxes. Additionally, Bank early withdrawal penalties may apply. Withdrawals made from age 59 Y2 to 70'/2 years of age Withdrawals are not subject to IRS pre -mature distribution penalty. These withdrawals are subject to ordinary income taxes and are reportable on form 1099R to the IRS. The Bank will allow one distribution per year with no penalty; all other distributions are subject to early withdrawal penalties. Withdrawals made upon obtaining 70 Y2 years of age The IRS requires IRA owners to take minimum distributions each year starting with the year they turn age 70 Y2 and are not subject to IRS pre -mature distribution penalties. These withdrawals are subject to ordinary income taxes and are reportable on form 1099R to the IRS. The Bank will waive the early withdrawal penalty on these distributions and will report such distributions on form 1099 to the IRS. Fees An annual custodial fee of $30.00 will be assessed if you keep a balance of less than $25,000.00 in your plan. A $50.00 custodial account transfer fee will be charged for an IRAs that transfer to another financial institution or close prior to maturity to cover custodial recordkeeping costs. Automatically renewable time account This account will automatically renew at maturity. You may prevent renewal if we receive written notice from you before maturity of your intention not to renew or you withdraw the funds in the account at maturity (or within the grace period mentioned below, if any). We can prevent renewal if we mail notice to you at least 30 calendar days before maturity. Each renewal term will be the same as the original term, beginning on the maturity date. The interest rate will be the same we offer on new time deposits on the maturity date which have the same term, minimum balance (if any) and other features as the original time deposit. You will have ten calendar days after maturity to withdraw the funds without a penalty.