TERMS AND CONDITIONS
GOVERNING DEPOSIT ACCOUNTS
I/We, the undersigned depositor/s, hereinafter referred to, singly as the “Depositor” and collectively as the “Depositors”, hereby agree to the following terms and conditions governing deposits with Cantilan Bank, Inc., hereinafter referred to as “the Bank”:
GENERAL PROVISIONS ON DEPOSITS
I. Opening of Accounts
A deposit account, hereinafter referred to as the “Account,” may be opened subject to the approval of Cantilan Bank, Inc., after verification of the documents presented, and the applicant’s identity and/or authority to open the account, in compliance with the Bangko Sentral ng Pilipinas (BSP) regulations and applicable laws. The Account Holder warrants that they are legally capable of entering into financial transactions at the time of account opening.
The Account Holder shall maintain the required Average Daily Balance (ADB) as may be prescribed by Cantilan Bank, Inc. from time to time. A service fee shall be charged if the Account falls below the required ADB, as stated in the Bank’s Schedule of Fees and Charges.
II. Documentation
Applicants for deposit accounts, whether individuals, corporations, partnerships, associations, or other entities, must submit the required documents as prescribed by Cantilan Bank. The Bank reserves the right to request additional documentation to comply with regulatory requirements and internal policies.
Cantilan Bank, Inc. is authorized to obtain and verify information about the Depositor from government agencies, third parties, including other banks, financial institutions, and credit bureaus, to validate the information provided, assess financial capability, and conduct necessary background checks. Such verification may be conducted for customer due diligence, risk assessment, fraud prevention, or any other lawful purpose as the Bank may deem necessary.
III. Deposits
All deposits must be made by the Depositor or their authorized representative by accurately filling out the required deposit forms. If the Depositor is unable to write for any reason, the form must be completed by a person other than a Cantilan Bank, Inc. employee. The Bank shall not be liable for any losses resulting from inaccuracies in the completion of deposit forms.
The initial deposit and the minimum subsequent deposits must be in such amount as may be reasonably determined by the Bank. The Bank may refuse certain items for deposits, such as second endorsed checks and checks presented after six (6) months from date of issue, otherwise considered as stale checks. The Bank may, at its discretion, refuse to accept deposits or at any time return all or part of a deposit together with the interest due.
Cantilan Bank, Inc. shall accept deposits of checks, drafts, money orders, and treasury warrants on a conditional basis, meaning they shall be subject to collection and shall not be considered credited to the Depositor’s account until the proceeds have been definitively received by or credited to the Bank. The client obligates himself to reimburse the Bank any and all amounts credited by the Bank to his deposit account equivalent to the face value of the items, including bank charges and other expenses, if any, should any item be dishonored due to fraud, forgery, material alteration or for any reason whatsoever. In this connection, the Bank is hereby given full power and authority, at its sole option, to debit said amount/s from any account of the client with the Bank and / or set-of the same against any of the client’s funds / property in the actual / constructive possession and / or control of the Bank.
Furthermore, the client hereby knowingly, unconditionally, and irrevocably releases and discharges the Bank, its owners, directors, officers, employees, agents, and representatives from any right, claim, cause of action that the client or any third party may now or in the future may claim against the Bank arising from or in connection with the transactions contemplated herewith. All endorsements and/or lack of endorsements on the items deposited are guaranteed by the Depositor. The Depositor assumes full responsibility for the correctness, due execution, genuineness, and validity of all endorsements appearing on all checks or other items deposited.
The Depositors shall be deemed to warrant each time any deposit or withdrawal is made on the account that the Depositors have full and absolute title and right of disposition over all monies, checks and funds in the account.
IV. Joint Accounts
a. Joint “OR” Account
i. Cantilan Bank, Inc. shall honor the signature of any one of the Joint Account Holders for withdrawals, payments, and other transactions related to the account.
ii. Checks, drafts, bills of exchange, and other instruments payable to any one or more of the Joint Account Holders may be endorsed and deposited into the account by any of the Account Holders.
iii. Cantilan Bank, Inc. is authorized to honor and pay via debit from the account any checks or written withdrawal orders signed by any one of the Joint Account Holders without the need for inquiry into the use or disposition of the withdrawn funds.
iv. In the absence of a court order, funds in the account shall be payable to and collectible by any or all of the Joint Account Holders, as applicable, during their lifetime, regardless of the physical or mental incapacity of any one Account Holder.
v. Upon the death of any one Joint Account Holder, the remaining balance shall be payable to the surviving Account Holder(s), subject to compliance with applicable laws, including the payment or withholding of estate taxes, charges, and fees, if any. The surviving Account Holder(s) agree to hold Cantilan Bank, Inc. free and harmless from any claims by third parties arising from payments made under this survivorship clause.
Should any heir(s) of a deceased Account Holder make a claim before the surviving Account Holder(s) withdraw the full deposit, the balance shall be divided equally among all Account Holders. The heir(s) of the deceased Account Holder shall receive the latter’s share.
b. Joint “AND” Account
i. Withdrawals, payments, and any other transactions on the account require the signatures of all Joint Account Holders, unless otherwise indicated in writing by all Account Holders.
ii. All Joint Account Holders shall be jointly and severally liable for any obligations arising from the account. Cantilan Bank, Inc. reserves the right, at its discretion and without prior notice, to apply all or part of the account balance to settle any outstanding obligations due to the Bank from any or all of the Account Holders.
iii. Unless otherwise stated in a written agreement signed by all Account Holders, Cantilan Bank, Inc. shall assume that all Joint Account Holders have equal ownership of the account balance.
c. Declaration that Co-Depositors are Alive
For both Joint “OR” and Joint “AND” Accounts, each Account Holder affirms that all other Account Holders are still living at the time of any transaction. Cantilan Bank, Inc. shall fully rely on this declaration. The Account Holders shall hold the Bank free and harmless from any claims, losses, damages, or liabilities arising from its reliance on this declaration.
d. Notice
Notice to any one of the Account Holders in joint accounts shall be sufficient notice to all of them.
V. Withdrawals
Withdrawals from the Account must be made by the Account Holder or their authorized signatories using the prescribed withdrawal form, medium, channel, or process implemented by Cantilan Bank, Inc., in accordance with its policies. Signature of the Account holder/s and the signature of the authorized representative, in the case of withdrawal via representative, shall be
required in Cantilan Bank’s prescribed withdrawal slip. Withdrawals by a person other than the Account Holder himself may be allowed only upon the Account Holder’s written authorization, in the signed withdrawal slip or through a notarized Special Power of Attorney, accompanied by at least one valid identification card of the person authorized, which shall be verified by Cantilan Bank Inc.
For over-the counter transactions, the Account Holder/s or his/her/its/their representative should count the number of cas withdrawn before leaving the bank premises; otherwise, Cantilan Bank will be relieved of all responsibility in connection therewith. The Account Holder/s will not be permitted to withdraw from the Account any amount in excess of the outstanding available balance to his/her/its/their credit.
VI. Service Fees and Other Bank Charges
Cantilan Bank, Inc. is authorized to charge, collect, and deduct from the Account Holder’s account all applicable service and penalty charges, taxes, and other fees incurred, including but not limited to clearing charges under Philippine Clearing House Corporation (PCHC) rules and interbranch transaction fees.
The Bank reserves the right to impose new service and maintenance charges or modify existing ones within the limits allowed by law or regulations. In case of new fees, additional charges, or material changes to these Terms and Conditions, the Bank shall notify the Account Holder at least sixty (60) days prior to effectivity, unless immediate implementation is mandated by the Bangko Sentral ng Pilipinas (BSP) or other relevant authorities. Notices shall be communicated through available channels, such as official notices, the Bank’s website, or postings in branch premises.
VII. Change of Personal Information or Circumstances
The Account Holder must immediately notify Cantilan Bank, Inc. in writing of any changes in personal information, such as postal address, marital status, or other relevant details. All correspondences related to the Account shall be sent to the Account Holder’s most recent postal or email address on record with the Bank.
VIII. Closure of Accounts
The Account Holder may voluntarily close their Account by following Cantilan Bank, Inc.’s prescribed process.
a. A service charge shall apply if the Account is closed within thirty (30) days of opening. Cantilan Bank, Inc. also reserves the right to close an Account at any time without prior notice for reasons such as misrepresentation, suspected fraudulent or illegal activities, or if the Account poses financial, operational, legal, or reputational risks.
b. The Bank may also freeze or suspend the Account upon receipt of complaints, allegations of fraud, or conflicting instructions until issues are resolved.
c. The Bank reserves the right to close dormant accounts with a zero balance that have remained inactive for more than 180 days.
d. The Bank may also close the Account if it is mishandled, has insufficient funds to cover fees, or if the Account Holder issues checks against insufficient funds. The Account Holder is responsible for notifying payees and retrieving issued checks upon closure. The Bank and its representatives shall not be liable for any claims, losses, or damages resulting from account closure, transaction holds, or reporting of account mishandling to relevant authorities.
IX. Interest Credits
Interest-bearing accounts shall earn interest at a rate determined by Cantilan Bank, Inc. on a per annum basis, subject to applicable laws and regulations. Interest is computed based on the daily available balance and credited to the account at the end of each month, less the applicable withholding tax. Interest rates are subject to change over time in accordance with existing laws, rules, and regulations.
X. Dormancy and Unclaimed Balances
Accounts, including those with Automatic Transfer Facility options, which have no financial transactions for at least one (1) year for Current Accounts and two (2) years for Savings Accounts shall be classified as DORMANT. A dormancy fee shall be charged in addition to the maintenance fee for accounts that fall below the required minimum Average Daily Balance (ADB), when applicable. Accounts may be reactivated subject to the compliance of the Account Holder(s) with applicable laws, regulations, and Cantilan Bank, Inc.’s policies and procedures. In accordance with existing laws, all “unclaimed balances,” representing deposits of money and/or accrued interest held by Cantilan Bank for any Account Holder with no financial transactions for a period of ten (10) years or more, shall be reported and, when ordered, delivered by the Bank to the Treasury of the Philippines for the credit of the government of the Republic of the Philippines.
XI. Philippine Deposit Insurance Corporation (PDIC) Rules
Account/s shall be subject to applicable PDIC laws, rules and regulations including the insured value up to maximum amount as may be mandated by PDIC or by law.
SPECIAL PROVISIONS ON DEPOSITS
I. Savings Account with Passbook
The savings passbook is non-transferable and must only reflect transactions officially recorded by Cantilan Bank. In case of any discrepancy between the entries in the passbook and the Bank’s official records, the Bank’s records shall prevail.
If the passbook is lost, stolen, or misplaced, the Account Holder must immediately notify the Bank in writing by submitting an Affidavit of Loss. Cantilan Bank shall not be held liable for any transactions or withdrawals made prior to the receipt of such notice.
Account Holders are encouraged to examine all entries in their passbook before leaving the premises, as the Bank shall not be held liable for errors not reported immediately. The passbook must be presented for every transaction. In cases where the passbook is not available, over-the-counter withdrawals will not be allowed.
II. Current Accounts
a. Statement of Account (SOA)
The Statement of Account (SOA) is available in printed form upon request by the Account Holder and shall be subject to applicable fees.
b. Checkbooks
Checkbooks are issued upon request and subject to applicable fees. The Account Holder shall be responsible for its safekeeping. Only the authorized signatories are permitted to issue checks. Cantilan Bank reserves the right to dishonor any checks due to signature mismatch, insufficient funds, uncollected deposits, or technical defects. Penalties and service charges apply to DAIF (Drawn Against Insufficient Funds), DAUD (Drawn Against Uncollected Deposits), and returned checks. The Bank shall not be liable for errors made in good faith that may result in the return of a check.
c. Stop Payment Order
Stop Payment Orders on checks must be filed through approved Cantilan Bank channels and shall be governed by Bank policy. SPO revocations must be made in writing and acknowledged by the Bank. In case of lost or stolen checks, the Account Holder must notify the Bank immediately and file an SPO for each check. The Bank shall not be held liable for any payment made on checks prior to the receipt and acknowledgment of an SPO.
III. Automatic Transfer of Funds
The Account Holder/s authorizes Cantilan Bank to automatically transfer funds from his/her/their Savings Account to his/her/their Current Account whenever the balance of the latter is insufficient to cover issued checks or falls below the required maintaining balance. The automatic fund transfer shall be governed by the following conditions:
a. The amount to be transferred shall at least be equal to the amount overdrawn, plus the required minimum balance of the receiving Current Account.
b. If the available balance in the linked Savings Account is insufficient to cover the required amount, Cantilan Bank shall have no option but to return/dishonor the check. The Bank shall not be held liable for any claims or losses resulting from the dishonor of said check.
c. The automatic transfer facility shall only be honored for accounts maintained in the same branch.
Cantilan Bank shall not be held liable for any damages arising from transfer errors, or for any error committed in good faith that may result in the return of the check.
IV. Student Savers Club
a. JS Account Owned by the Child
A Junior Savers (JS) Account opened by a child of at least seven (7) years old, either with or without the assistance of their parent(s), in accordance with applicable laws such as Presidential Decree No. 734 (or any subsequent law authorizing minors to deposit and withdraw from banks), shall be owned by the child.
b. “Parental By” JS Account
A “Parental By” JS Account, which is solely opened by the parent as a savings account for their child, shall remain owned and operated by the parent even after the child reaches legal age. However, the parent may request the conversion of the “Parental By” JS account into the sole name of the child by following the procedure outlined by the bank, provided that:
i. The parent submits a written instruction to the branch of account;
ii. The child is qualified under the law to own a bank account; and
iii. The child signs the necessary bank documents.
In the event of the parent’s death without having converted the account into the sole name of the child, the deposits in the “Parental By” JS Account shall form part of the parent’s estate, subject to the bank’s policies regarding claims to accounts of deceased depositors.
V. Payroll Accounts
a. Purpose and Employer Authorization
The Payroll Account is opened upon the request of the Account Holder’s employer for the purpose of crediting the Account Holder’s salaries, wages, commissions, or any amounts due from the employer. By opening the Payroll Account, the Account Holder authorizes Cantilan Bank or its representatives to disclose any and all information regarding the Payroll Account, including its status (whether open or closed), to the Account Holder’s employer.
b. Mistaken Credit by Employer
In the event that the employer mistakenly credits the Payroll Account for any reason, Cantilan Bank is authorized to debit the Account Holder’s Payroll Account, upon receipt of a written request from the employer to the extent of such mistaken credit and transfer the same amount to the employer’s account. This action will be taken without further notice or consent from the Account Holder. Any disputes regarding such mistaken credits will be resolved strictly between the Account Holder and their employer. Cantilan Bank shall not be liable for any actions taken in accordance with the employer’s written request.
c. Release of Liability
The Account Holder expressly releases and forever discharges Cantilan Bank, its affiliates, directors, officers, employees, and assigns (“Cantilan Bank Persons”) from any
and all claims, suits, actions, or causes of action related to the debit mentioned above and the Payroll Account.
d. Payroll Service Agreement
The Account Holder agrees to be bound by the terms and conditions of the Payroll Service Agreement, to the extent applicable. In the event of any conflict between these terms and conditions, the terms of the Payroll Service Agreement shall prevail.
VI. Time Deposit Accounts
a. Time Deposit Certificates
The Certificate/s covering Time Deposit placements (the “Certificate/s” and each a “Certificate”) issued by Cantilan Bank are non-negotiable and may not be transferred or negotiated by mere endorsement and/or delivery. However, a Certificate may be assigned or transferred only with the prior written consent of Cantilan Bank. Any assignment or transfer without such prior written approval shall not be binding on Cantilan Bank.
All Time Deposit placements shall be governed by Cantilan Bank’s existing policies, product terms, and applicable laws, rules, and regulations.
b. Maturity, Renewal and Redemption
Upon maturity, the Account holder shall present to Cantilan Bank the duly endorsed or signed Certificate of Time Deposit for purposes of renewal or redemption. In the absence of specific instructions from the Account holder on or before the maturity date, the principal amount and accrued interest shall be automatically transferred to the linked account, specifically the Matured TD Regular Savings Account, resulting in the automatic closure of the Time Deposit Account.
Renewal of Time Deposits shall be subject to prevailing rates and terms at the time of renewal, and in accordance with the Bank’s policies and applicable regulations.
c. Early Redemption
i. Closure Upon Early Redemption
Time Deposit Accounts redeemed before the stipulated maturity date shall be deemed closed, and the full principal amount and accrued interest, if any, shall be processed in accordance with pre-termination policies.
ii. Interest Recalculation
Any interest accrued up to the date of redemption shall be recomputed based on applicable pre-termination rates, as follows:
1. For Regular Time Deposits and Medium-Term Time Deposits, the applicable rate shall be the prevailing Regular Savings Deposit Rate.
2. For Premium Time Deposits, the applicable rate shall be one-half (½) of the prevailing Premium Time Deposit Rate (PTD Rate).
iii. Annual Interest Payment Option
For Premium Time Deposit Accounts with an Annual Interest Payment option, the accrued interest shall be re-calculated based on the applicable pre-termination rate. Any excess interest previously paid shall be deducted from the principal, net of applicable final withholding tax.
iv. Penalty and Tax Deductions
Pre-terminated Premium Time Deposits shall be subject to deduction of Documentary Stamp Tax (DST) in accordance with relevant laws and regulations.
d. Non-Renewal
Time Deposit Accounts that are not redeemed, renewed, or rolled over on the stipulated maturity date shall automatically earn interest equivalent to Cantilan Bank’s prevailing Regular Savings Deposit Rate, effective from the date of maturity up to the date of actual redemption or until a written instruction to renew or roll-over is received from the Depositor and implemented by Cantilan Bank.
Interest earned during this period shall be subject to applicable final withholding tax, in accordance with ceilings and rates prescribed by law and relevant revenue regulations as may be amended from time to time.
Cantilan Bank shall not be held liable for any loss of interest income due to failure of the Depositor to provide timely instruction regarding the renewal or redemption of the Time Deposit Account.
e. Closure of Account
The Certificate shall be surrendered to Cantilan Bank upon termination of the time deposit account. In case the original copy of the Certificate is lost, the Depositor will immediately notify Cantilan Bank in writing by executing an Affidavit of Loss duly notarized and giving therein all the circumstances surrounding the loss of the Certificate.
UNDERTAKING GRANTING CONSENT
RELATED TO DATA PRIVACY
In compliance with the requirements of Republic Act no. 10173 or the Data Privacy Act (DPA) of 2012, I authorize the general use, sharing, and profiling of information obtained from me in the course of my transaction/s with Cantilan Bank, Inc., ( A Rural Bank ) and affiliates, and their respeCtive and agents, or from third parties. The data, which include my personal information or sensitive personal information that may or continually be -collected, processed, stored, updated, disclosed, or profiled by Cantilan Bank, Inc. and/or shared for five (5) years from the conclusion of my transaction with Cantilan Bank, Inc. and/or until the expiration of retention limits set by applicable law, whichever comes later, (i) for legitimate purposes, (ii) to implement transactions which I request, allow, or authorize, (iii) to offer and provide new or related products and services of Cantilan Bank, Inc. and/or third parties, and. (iv) to comply with Cantilan Bank, Inc. internal policies, and its reporting obligations to governmental authorities under applicable laws, including without limitation the Bangko Sentra! ng Pilipinas (BSP), the Anti-Money Laundering Council (AMLC), the Securities and Exchange Commission (SEC), and the Credit Information Corporation (CIC) defined in R.A. No. 9510, and to any third party (local or overseas) who acquires or will acquire the rights and obligations of Cantilan Bank, Inc.; who is in negotiations with Cantilan Bank, Inc., and in connection with the possible sale, acquisition or restructuring of Cantilan.
Bank, Inc. and who process information, transactions, services, or accounts, on behalf of Cantilan Bank, Inc. and (including but not limited to courier agencies; telecommunication information technology companies, payment, payroll, collection, training, and storage agencies; entities providing customer support, and other similar entities).
I am fully aware that I can access, update, or correct certain personal information, or withdraw consent to the use of any of the information obtained from me in the course of my transaction/s with Cantilan Bank, Inc. and their respective representatives and agents, or from third parties, Further, I am fully aware that I can communicate with Cantilan Bank, Inc. Data Protection Officer through email at dpo@cantilanbank.com or call +63 212 5050 to 56 or at Orozco Street, Barangay Magosilom, Cantilan, Surigao Del Sur and I may file complaints with, and/or seek assistance from the National Privacy Commision.