Terms and Conditions

Zero Balance Accounts

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THE SERVICE

With a Zero Balance Account (“ZBA”), Customer’s ZBA (“Child Account”) is automatically debited or credited daily to bring the ZBA to a mutually agreeable target balance (which in most cases is zero, but can be any number greater than zero).  With respect to ZBA, the established Child Account Target Balance is a mutually agreed upon standard minimum and/or maximum amount to be maintained in Customer’s ZBA at the end of each Business Day (“Target Balance” or “Minimum Balance” or “Maximum Balance”).  Excess Funds are automatically transferred from the ZBA to Customer’s Parent Account (“Parent” or “Master Account”) for cash concentration purposes.  If the ZBA balance following the completion of provisional debits and credits to Customer’s ZBA is deemed by Bank to be less than the ZBA’s Minimum Balance, the amount of funds required to bring the ZBA back to its Minimum Balance will be transferred from the Parent Account to the ZBA.

Bank will provide ZBA Services for Customer's Authorized Account(s) as designated in the applicable Operational Instructions.

Customer must establish one or more Account(s) to represent the ZBA(s) and a separate Account to represent the Parent Account.  Without prior notice to Customer, Bank will automatically transfer funds in accordance with one of the following three (3) scenarios:

  1. From the Parent Account to the ZBA(s) and from the ZBA(s) to the Parent Account at the end of each Business Day in order to bring the balance of the ZBA(s) to a predetermined Target Balance as indicated in the applicable Operational Instructions.
  2. From the Parent Account to the ZBA at the end of each Business Day in order to bring the balance of the ZBA to a predetermined Minimum Balance as indicated in the applicable Operational Instructions.
  3. From the ZBA to the Parent Account at the end of each Business Day in order to bring the balance of the ZBA to a predetermined Maximum Balance as indicated in the applicable Operational Instructions.

Customer agrees to maintain, either in the Parent Account or in the ZBA(s) as Target Balances, at all times, a certain amount of collected, immediately Available Funds, which when aggregated, are sufficient to pay all charges, checks, and/or other items presented against each ZBA and Parent Account.

Customer acknowledges that the ZBA and Parent Account are subject to Bank overdraft and return polices charges and the Bank’s Rules Governing Deposit Accounts.