Disclosures

Funds Availability

Your Ability to Withdraw Funds

Last Revision Date: July 1, 2020

This policy statement applies to all deposit accounts.

Our policy is to delay the availability of funds from your cash and check deposits. During the delay, you may not withdraw the funds in cash and we will not use the funds to pay checks that you have written. Please remember that even after we have made funds available to you, and you have withdrawn the funds, you are still responsible for checks you deposit that are returned to us unpaid and for any other problems involving your deposit.

Determining The Availability Of A Deposit

The length of the delay is counted in business days from the day of your deposit. Every day is a business day except Saturdays, Sundays and federal holidays. If you make a deposit before the cutoff time on a business day that we are open, we will consider that day to be the day of deposit. However, if you make a deposit after the cut-off time or on a day we are not open, we will consider that the deposit was made on the next business day we are open. The time of the day that we post the cut-off notice, if any, may vary by branch. In no event, however, will the cut-off time be earlier than 2:00 P.M.

The length of the delay varies depending on the type of deposit and is explained below.

If you make a deposit at an ATM that is owned and operated by us before 2:00 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 at an ATM after 2:00 P.M. or on a day we are not open, we will consider that the deposit was made on the next business day we are open.

If you make a deposit through our Remote Deposit Capture program 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 through our Remote Deposit Capture program on or after 5:00 P.M. or on a business day that we are not open, we will consider that the deposit was made on the next business day we are open.

If you make a deposit through our Leader Mobile Deposit program 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 through our Leader Mobile Deposit program on or after 5:00 P.M. or on a business day that we are not open, we will consider that the deposit was made on the next business day we are open.

Same-Day Availability.

Funds from the following deposits are available on the same day they are deposited:

  • Electronic direct deposits to your account.
  • Wire transfers.
  • Cash deposits made at the Bank's teller stations.

Although Remote Deposit Capture and Leader Mobile Deposit programs utilize technology as a delivery method,

checks deposited through these services are processed in the same manner as a paper deposit you would make at abranch or ATM and are NOT considered "electronic direct deposits" for purposes of funds availability.

Next-Day Availability.

Funds from the following deposits are available on the first (1st) business day after the day of your deposit:

  • Cash deposits made at the Bank's ATMs prior to 2:00 P.M.
  • Checks drawn on the Bank.
  • U.S. Treasury Checks that are payable to you.
  • Federal Reserve Bank Checks, Federal Home Loan Bank Checks, and U.S. Postal ServiceMoney Orders, if these items are payable to you.
  • State and local government checks from the state in which the Bank is located.
  • Cashier's, certified, treasurer's and teller's checks, including out of state checks that are payable to you if you use a special deposit ticket available from our tellers.
  • Checks deposited on a business day through our Leader Mobile Deposit program prior to 5:00p.m.
  • Checks deposited on a business day through our Remote Deposit Capture program prior to 5:00p.m.
  • All other local checks.

If we cash a check for you that is drawn on another bank, 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. If we accept for deposit a check that is drawn on another bank, 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

Case by Case Delays.

In some cases, we will not make all of the funds that you deposit by check available to you according to the preceding schedule. Depending on the type of check that you deposit, funds may not be available until the second business day after the day of your deposit. The first $225 of your deposits, 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 first business day after we receive your deposit. If you need the funds right away you should ask us when the funds will be made available.

Safeguard Exceptions. In addition to the case by case delays outlined above, funds you deposit by check may be delayed for a longer period under the following circumstances:

  • We believe a check you deposit will not be paid.
  • You deposit checks totaling more than $5,525 on any one day.
  • You redeposit a check that has been returned unpaid.
  • You have overdrawn your account repeatedly, or would have overdrawn your account if checks had been honored in the last six (6) months.
  • There is an emergency, such as failure of computer or communications equipment.

Unlike the case by case delays outlined above, the first $225 of your deposit held under a safeguard exception will not be available on the first business day after your deposit. We will notify you if we delay your ability 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 seventh business day after the day of your deposit.

Special Rules For New Accounts

If you are a new customer, the following special rules will apply during the first 30 days your account is open.

Funds from electronic direct deposits to your account will be available on the day we receive the deposit. Funds from deposits of cash, wire transfers, and the first $5,525 of a day's total deposits of cashier's, certified, teller's, treasurer's, travelers, and federal, state and local government checks will be available on the first business day after the day of your deposit if the deposit meets certain conditions. For example, the checks must be payable to you (and you may have to use a special deposit ticket). The excess over $5,525 will be available on the fourth business day after the day of your deposit. If your deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, the first $5,525 may not be available until the second business day after the day of your deposit. 

Funds from all other check deposits, whether made in person, at an ATM, by remote deposit capture or through leader Mobile Deposit, will be available no later than the sixth business day after the day of your deposit to withdraw in cash and paychecks you have written to others.

Deposits At Automated Teller Machines

Funds from any deposits (cash or checks) made at automated teller machines (ATMs) we do not own or operate may

not be available until the fifth business day after the day of your deposit. This rule does not apply at ATMs that we own

or operate.

All ATMs that we own or operate are identified as our machines.

Foreign Items

If you deposit a check drawn on a bank outside the United States (including Canadian financial institutions) and not

payable through a U.S. branch or bank, we will make these funds available when we receive notification of payment.

Night Depository

Deposits received at a night depository are considered as received on the next business day.

Bank by Mail

Deposits received by mail are considered deposited on the business day that they are received at the Bank.

 

SBBP

Invest MA - Investing for the Loan Term Initiative

Effective January 2024, Leader Bank has become a proud participant in the Investing for the Long Term Initiative launched by the Massachusetts Department of Treasury. This program, also known as “Invest MA,” is the successor to the Small Business Banking Partnership and is a program between the Massachusetts-based banks and the state treasurer to ensure that Commonwealth funds are deposited in institutions to help local small business lending and spur job creation.

During Leader Bank’s participation in the Small Business Banking Partnership from April 2021 to December 2023, Leader Bank closed over 3,310 small business loans and lines of credit in Massachusetts, totaling more than $237.8 million in committed lending and helping save or create over 15,200 jobs in the Commonwealth. Leader Bank looks forward to continuing its commitment to local businesses and communities through the Invest MA program in the years to come.

Lender NMLS# 449250

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