Conditions of Operation. The operation of the Bank Account shall be subject to the following terms and conditions: (a) Cheques may be issued on the Bank Account. Any requests by or on behalf of the Client to certify such cheques may not be accepted by the Bank but the Bank will offer an alternative remittance instrument (such as a draft) in such cases. (b) Withdrawals may be made by the Client at any branch of the Bank by a request in writing accompanied by the Client’s FirstBank Card. The Bank reserves the right to refuse any withdrawal request when not accompanied by the Client’s FirstBank Card. (c) Interest on any credit balances in the Bank Account will be paid by the Bank at such rates and upon such terms as the Bank may from time to time establish. The rates and terms are available at all BMO InvestorLine and Bank branches. (d) The Bank may request seven days’ notice of any withdrawal. (e) The Client may use the Bank Account for investment purposes only and shall not use the Bank Account for any business operating transactions or any other purpose. It is understood that the Bank may, but shall not be under any obligation to, monitor the Client’s compliance with this provision. (f) The Client waives in favour of the Bank presentment, notice of dishonour and protest of all bills of exchange, promissory notes, cheques, orders for payment of money, securities, coupons or notes (all or any of which are hereinafter collectively or separately referred to as “Instruments” or an “Instrument” as the case may be) drawn, made, accepted or endorsed by the Client and now or hereafter delivered to the Bank at any of its branches or agencies for any purpose. The Client shall remain liable to the Bank as if presentment, notice of dishonour and protest had been duly made or given, provided that the Bank may note or protest any Instrument because of any endorsement other than that of the Client or for any other reason if the Bank, in its discretion, considers it in the best interest of the Client or the Bank. The Bank will not, in any circumstances, be responsible or liable for failure or omission to note or protest any Instrument. (g) The Bank may use the services of any bank or agent as it may deem advisable in connection with any banking business of the Client. Such bank is deemed to be the agent of the Client, and the Bank will not, in any circumstances, be responsible or liable to the Client by reason of any act or omission of such bank or agent, however caused, in the performance of such service or by reason of the loss, theft, destruction or delayed delivery of any Instrument while in transit to or from, or in the possession of such bank or agent. (h) The Bank is authorized to charge the Bank Account of the Client with the following: (i) the amount of any Instrument payable by the Client at any branch or agency of the Bank; (ii) the amount of any Instrument cashed or negotiated by the Bank for the Client or credited to the Bank Account for which payment is not received by the Bank and with the amount of any other indebtedness or liability of the Client to the Bank and with any expenses incurred by the Bank in connection with paying a dishonoured or unpaid Instrument. Notwithstanding such charging, all rights and remedies of the Bank against the parties are preserved. No charging of unpaid Instruments shall be deemed to be payment of such Instruments; (iii) the amount of any Instrument received by the Bank for the Bank Account of the Client by way of deposit, discount, collection or otherwise if it is lost or stolen or otherwise disappears from any cause whatsoever other than negligence on the part of the Bank; and (iv) all amounts collectible by the Bank as taxes on the supply, sale or other provision of its products or services. (i) The Client will draw encoded cheques only on the account for which the cheques are encoded. The Bank will not be liable in any circumstances for any loss or damage arising from the wrongful acceptance of a cheque, or wrongful refusal by the Bank to honour a cheque, drawn by the Client on an account other than the account for which the cheque is encoded. (j) A statement of the account will be rendered monthly together with vouchers where applicable for amounts charged to the Bank Account. The Client will advise the Bank promptly if such statement has not been received within ten days of the date upon which it is normally received. (k) Upon receipt of the aforesaid statement of account, the Client will check the debit and credit entries, examine the cheques and vouchers and notify the Bank in writing of any errors, irregularities or omissions. This notice will be provided to the Bank within 15 days of the mailing of the statement to the Client or if not mailed, within 15 days of the delivery of the statement to the Client or access to the statement being made available to the Client. At the expiration of the 15 day period (except as to any alleged errors, irregularities or omissions outlined in the said notice) it shall be deemed to be conclusively settled between the Bank and the Client that: (i) all transactions described in the statement are properly reflected (subject to the right of the Bank either during or after the 15 day period to charge back items for which payment has not been received); (ii) the statement and the balance shown thereon are correct; (iii) the said vouchers are properly charged to the Client’s account; and (iv) the Client is not entitled to be credited with any sum not credited in the statement. In addition, it shall be conclusively settled as between the Bank and the Client that the Bank is not liable for any loss or claim arising from the breach by the Client or any third party of any fiduciary duty or trust in respect of the sums or dealings noted in the said statements. (l) The Client agrees to maintain procedures and controls to detect and prevent thefts of Instruments or losses due to fraud or forgery involving Instruments. The Client further agrees that BMO InvestorLine and the Bank shall have no responsibility or liability whatsoever for any loss due to a forged or unauthorized signature unless: (i) the forged or unauthorized signature was made by a person who was at no time the Client’s agent or employee; (ii) the loss was unavoidable despite the Client having taken all feasible steps to prevent loss arising from forgery or unauthorized signatures; (iii) the loss was unavoidable despite the Client having in place the procedures and controls to supervise and monitor the agents and employees of the Client; and (iv) the loss was caused solely by the negligence or willful misconduct of the Bank or BMO InvestorLine as the case may be. The Client will diligently supervise and monitor the conduct and work of any agent or employee having any role in the preparation of the Client’s Instruments and in the Client’s bank statement reconciliation or other banking functions. (m) If there should be insufficient funds in the Bank Account to pay an Instrument or to pay any charges which the Bank is authorized to charge under the above terms and conditions, then the expression “Bank Account” shall mean any other account which the Client may have at any branch or agency of the Bank and the Bank is authorized to charge such account with the amount of such Instrument or charges.
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Sources: Client Agreements, Client Agreements, Client Agreements