Bluevine Business Checking Account Agreement Sweep Disclosure
Effective September 1, 2023
This Sweep Disclosure is a binding supplement to the Bluevine Business Checking Account Agreement (“Account Agreement”) and governs your Account accordingly. Any capitalized terms in this Sweep Disclosure not otherwise defined herein will have the same meaning as in the Account Agreement.
1. Bluevine Business Checking Account Sweep Program
Participation in the Bluevine Business Checking Account Sweep Program (“Sweep Program”) allows Coastal Community Bank, Member FDIC (“Bank” or “we” or “us”) to automatically arrange deposit of your total available Account balance into an interest-eligible deposit account (each, a “Program Deposit Account,” with interest accruing, if applicable, subject to the terms of Section M of the Account Agreement) at one or more other FDIC-insured banks (each, a “Program Bank”) to increase your insured deposit coverage. Through participation in the Sweep Program, you appoint Bank as your agent to deposit the total available funds in your Account at one or more Program Banks and to withdraw your funds from the same.
2. Limits on FDIC Deposit Insurance Coverage
The Federal Deposit Insurance Corporation (“FDIC”) insures the aggregate of funds held in each insurable capacity (e.g., individual, joint, IRA, etc.) at Program Banks up to a specified amount of principal and accrued interest. This limit, applicable to each insurable capacity at each Program Bank, is referred to in this Sweep Disclosure as the “Maximum FDIC Insurance Amount” and is currently $250,000.
For purposes of determining FDIC deposit insurance coverage, all deposits held in the same insurable capacity at a Program Bank will be aggregated and subject to the Maximum FDIC Insurance Amount. For example, funds at a Program Bank held by an individual in an individual capacity, together with all other deposits held by that individual in an individual capacity at that Program Bank (including those held independently of the Sweep Program) would be insured up to $250,000 in the aggregate.
You are solely responsible for monitoring the total value of all deposits held in each insurable capacity at any Program Bank to determine the extent of FDIC deposit insurance coverage available to you for such deposits. Deposits in a given insurable capacity at a Program Bank in excess of the Maximum FDIC Insurance Amount are not eligible for FDIC deposit insurance coverage.
3. Bank List
Bank will assign a list of Program Banks (the “Bank List”) to the Sweep Program and/or your Account. The Bank List will be made available to you on the Website or an equivalent medium. Please check this list periodically, as Program Banks may be added to or removed from the Bank List without advance notice to you (see Section 6 for details). Notwithstanding the position of a Program Bank on the Bank List, Bank may deposit Customer’s funds at Program Banks in any order.
The Bank List will also include one or more depository institutions where Customer funds will be accepted without limit and without regard to the Applicable Deposit Limit (as defined below) (each such depository institution, an “Excess Bank”) in the instance that all Program Banks on the Bank List have received funds up to the Applicable Deposit Limit. Bank may act as an Excess Bank and/or may designate other Program Banks to act as an Excess Bank. Customer funds held in an Excess Bank that exceed the Maximum FDIC Insurance Amount will not be eligible for FDIC insurance. Customer should consult with an accounting, legal, or tax professional regarding the deposit of funds to an Excess Bank.
4. Coastal Community Bank as Custodian
Bank will act as Customer’s agent and custodian in establishing and maintaining Program Deposit Accounts at Program Banks. Program Deposit Accounts are obligations of the Program Banks and not the Bank, but you will not have direct relationships with Program Banks with respect to Program Deposit Accounts. You may only access your funds at Program Banks through your Bluevine Business Checking Account. All deposits and withdrawals at Program Banks will be made by the Bank on behalf of Customer. You cannot access or withdraw funds by directly contacting the Program Banks. You may obtain information about Program Deposit Accounts from Bank, or from Bluevine as the Sweep Program manager for Bank, but not from the Program Banks.
5. Operation of the Sweep Program
On behalf of Customer, Bank may deposit up to $246,500 (“Applicable Deposit Limit”) in each Program Bank appearing on the Bank List. The Applicable Deposit Limit is less than the Maximum FDIC Insurance Amount to allow interest, if applicable, to accrue in each Program Deposit Account. It may take up to three (3) business days for funds deposited in your Bluevine Business Checking Account to sweep and arrive at a Program Bank in a Program Deposit Account. The amount of your funds at each Program Bank is available on your monthly Account Statement. You may also obtain this information by contacting Customer Service.
If Customer funds available for deposit by Bank exceed the Applicable Deposit Limit, Bank will deposit such funds up to the Applicable Deposit Limit at a Program Bank and then deposit funds up to the Applicable Deposit Limit at another Program Bank. This process will continue until Bank has deposited Customer funds up to the Applicable Deposit Limit at each Program Bank. Should any Customer funds remain available following this process, Bank will deposit such funds at one or more Excess Banks.
6. Changes to the Bank List
We will update the Bank List, in the medium it is available to you, as the Bank List changes. The Bank List may change at any time, with or without advance notice. For example, one or more of the Program Banks included on the Bank List may be replaced with a Program Bank not previously included on the Bank List; a Program Bank may be added to or deleted from the Bank List; or the order of Program Banks on the Bank List may change. If a Program Bank is removed from the Bank List, your funds may be transferred to another available Program Bank on the Bank List.
Your continued participation in the Sweep Program constitutes your acceptance of such changes and transfers.
7. Opting Out of the Sweep Program
Customer may opt out of the Sweep Program at any time by contacting Customer Service. By opting out of the Sweep Program, Customer’s deposits will be held only at Bank and will not be held at any other Program Bank. By opting out of the Sweep Program, Customer will not be eligible for any FDIC insurance in excess of the Maximum FDIC Insurance Amount as it relates to your Bluevine Business Checking Account.
8. Interest and Fees
The interest rates paid, if applicable, with respect to the Program Deposit Account at each Program Bank may be higher or lower than the interest rates available to depositors making deposits directly with the Program Bank or other depository institutions in comparable accounts.
Each Program Bank will pay Bank a fee equal to a percentage of your balance in the Program Deposit Account at the Program Bank. The fee may vary from Program Bank to Program Bank. Bluevine and Bank may retain a fee from the interest rate paid by the Program Bank on your funds in the Program Deposit Account. The amount of interest paid to your Account, including interest paid by Program Banks on deposits they hold, will be determined by Bluevine subject to the terms of Section M of the Account Agreement.
9. Sweep Program Termination
Bank can, at its discretion and upon written notice in accordance with applicable laws, terminate your use of the Sweep Program or the Sweep Program, generally.