This agreement contains the Fair Wealth Building Account Agreement (the “Agreement”) by and among Fair FinTech, Inc. (“Fair”) and You, as an Eligible Member, as defined below, for the optional Fair Wealth Building account (“Fair Business Wealth Building Account”) issued by TransPecos Banks, SSB (“Bank”), member of the Federal Deposit Insurance Corporation (“FDIC”) on behalf of Fair. Fair Invest, LLC (“Fair Invest”), a Delaware limited liability company and related entity to Fair, is the program partner responsible for managing the Fair Wealth Building Account. “We,” “our,” and “us” refer to Fair, our successors, affiliates, or assignees. “You,” “your,” and “member” refer to the owner of the Fair Wealth Building Account.
The term “Spending Account” refers to the demand deposit account available from Bank, accessible through Fair.
The term “Fair Business Wealth Building Account” is an optional account only available to holders of Spending Accounts held with Fair and those who meet the Eligible Member criteria, as defined below. Fair Wealth Building Accounts are a form of savings accounts managed by Fair Invest, a registered investment advisor, who invests your funds in various assets with inherent risk with the goal to obtain return from long-term investing for the owner of the Fair Business Wealth Building Account. By opening a Fair Business Wealth Building Account, you grant Fair Invest the authority to use the funds to invest in accordance with Fair Invest’s investment strategy through mutual funds, equities, Exchange Traded Funds, and commodities. Fair Invest possesses the authority and discretion to use other securities as well to help diversify a portfolio when applicable. Each “Statement Cycle” is defined as one calendar month.
The holder of a Fair Account may submit a request to open a Fair Business Wealth Building Account by invitation only at this time. Fair will allow for the opening of a Fair Business Wealth Building Account based on proper vetting of the company through a Know Your Business procedure (“KYB”). We may refuse to process any transaction(s) we believe may violate the terms of this Agreement.
(a) All Eligible Business Members must:
i) Be U.S. Citizens or residents who reside within the fifty (50) United States (“U.S.") or the District of Columbia;
ii) Be at least eighteen (18) years of age;
iii) Have either a U.S. Social Security Number (SSN); OR a U.S. Individual Taxpayer Identification Number (ITIN) and Valid Government Issued Photo Identification;
(iv) Agree to accept electronic, rather than paper statements, through
(i) keeping a valid email address on file with Fair; and (ii) accepting electronic delivery of all account communications (i.e., end-of-year tax forms and electronic statements);
v) Provide appropriate documentation to Fair’s satisfaction pertaining to their business.
(b) Discretion and Third-Party Consultation. We maintain the discretion to open a Fair Business Wealth Building Account after you request a Fair Business Wealth Building Account. We may use information from third parties in determining whether to open the Fair Business Wealth Building Account in your name.
(c) Fair Business Wealth Building Account Titling and Ownership. A Fair Wealth Business Building Account may only be owned and titled in the name of one (1) person who shall solely retain the right to direct the deposit or transfer of funds. The Fair Wealth Building Account cannot be owned or titled jointly, by an organization, as Payable on Death (“POD”) or “In Trust For” (“ITF”).
(d) Fair Business Wealth Building Accounts. Fair Business Wealth Building Accounts are available for Business Use, but Fair will require that it be connected to a Spending Account to allow for funds flow. Fair Business Wealth Building Accounts are subject to a Know Your Business process, as defined by law, and we may refuse to process any transaction(s) we believe may violate the terms of this Agreement. In the case of Fair Business Wealth Building Account, it will be considered as a deposit account within the meaning of Article 9 of the Uniform Commercial Code (“UCC”) that is not held or maintained primarily for personal, family, or household purposes. Examples of business deposit accounts include an account owned by an individual acting as a sole proprietor; a partnership; a limited partnership; a limited liability partnership; a limited liability company; a corporation; a joint venture; multi person LLC with primary/managing member; or a not-for-profit corporation.
(e) Death or Incapacitation. You or your appointed party, designee, or appointed individual agree to notify us promptly if you become legally incapacitated, are deemed incompetent, or die. We will continue to accept deposits and process transaction instructions into and from the Fair Business Wealth Building Account until we are: (a) notified of your death or adjudication of incompetency and (b) have a reasonable opportunity to act. You agree that, even if we have knowledge of your death we may pay or process transactions involving the Fair Business Wealth Building Account on or before the date of death or incapacitation for up to ten (10) days after that date unless ordered by you or your appointed party to stop. We may require additional documentation to confirm any claims made on the Fair Business Wealth Building Account.
(f) Our Relationship With You. This Agreement and the deposit relationship do not create a fiduciary relationship.
(g) Privacy Policy. Our privacy policy is available at www.bankwithfair.com and fully incorporated as part of this Agreement.
The Fair Business Wealth Building Account and your obligations under this Agreement may not be assigned. We may transfer our rights under this Agreement. Use of the Fair Business Wealth Building Account is subject to all applicable rules and customs of any clearinghouse or other association involved in transactions. We do not waive our rights by delaying or failing to exercise them at any time. If any provision of this Agreement shall be determined to be invalid or unenforceable under any rule, law, or regulation of any governmental agency, local, state, or federal, the validity or enforceability of any other provision of this Agreement shall not be affected. This Agreement will be governed by the law of the State of Delaware except to the extent governed by federal law.
(a) Deposits to the Fair Business Wealth Building Account. You may make deposits to the Fair Business Wealth Building Account by transferring funds through ACH Collect or by wire transfer (any wire fees will be rebated back to the account holder). See the paragraph labeled 4(b) for additional details about deposit
(b) Withdrawals from the Fair Business Wealth Building Account. You may withdraw funds from the Fair Wealth Building Account by sending a request by email to treasury@bankwithfair.com or calling 1-844-WBA-4PCT and your request will be processed in the order it is received. There are no limits to the number of withdrawals allowed. Withdrawals and confirmation can take up to 24-36 hours to complete.
(c) Legal Processes Affecting Fair Business Wealth Building Accounts. If legal or administrative action such as a garnishment, levy, or other state of federal legal process (“Legal Process”) is brought against you or your Fair Business Wealth Building Account, we may refuse to permit (or may limit) transfers by you to or from it until the Legal Process is satisfied or dismissed. Regardless of the terms of such garnishment, levy, or other state or federal process, we have first claim to any and all funds in your Fair Business Wealth Building Account. We will not contest on your behalf any such Legal Process and may take action to comply with such Legal Process as we determine to be appropriate in the circumstances without liability to you, even if any funds we may be required to pay out leaves insufficient funds for a transfer you have authorized. Payment is made after satisfying any fees, charges, or other debts owed to us. You agree that you are responsible for any expenses, including reasonable legal expenses and fees we incur due to any Legal Process affecting your Fair Business Wealth Building
Account. We may charge these expenses to your Fair Business Wealth Building Account. You will indemnify us for any losses if we do this.
(d) Account Inactivity. A Fair Business Wealth Building Account with a zero balance or no customer-initiated activity for nine (9) continuous months is considered inactive and is subject to closure. For purposes of this paragraph, customer-initiated activity includes any Online Transfers you make to or from the Fair Business Wealth Building Account. For additional details about closing the Fair Business Wealth Building Account, see the paragraph labeled “(i). Amendment and Cancellation” in Section 3.
(e) Statements. Electronic statements will be sent via email at the end of each Statement Cycle. Fair Business Wealth Building Account statements are considered to be correct. You are responsible for carefully reviewing your statement each Statement Cycle and notifying us of any errors within sixty (60) days of your statement becoming available. You also have a right to obtain a sixty (60) day history of your Fair Business Wealth Building Account transactions by calling 1 (844) WBA-4PCT. Paper statements are only available on request, all statement will be disclosed electronically.
(f) Funds Availability. Funds which are moved into a Fair Business Wealth Building Account are not included in the calculation of a Fair Business account holder's Spending Account available balance. Transfers to or from a Fair Wealth Building Account will be reflected immediately on the respective account balances.
(g) Amendment and Cancellation. We may amend or change the terms and conditions of this Agreement at any time by posting the amended Agreement at bankwithfair.com, and any such amendment shall be effective upon such posting to the Website. The Agreement is also available at bankwithfair.com/business. You will be notified of any amendment(s) in the manner provided by applicable law thirty (30) days prior to the effective date of the amendment(s). However, if the amendment(s) is made for security purposes, we can implement it without prior notice.
We may cancel or suspend your Fair Business Wealth Building Account or this Agreement at any time. You may cancel this Agreement by calling 1 (844) WBA- 4PCT to close your Fair Business Wealth Building Account. Your cancellation of this Agreement will not affect any of our rights or your obligations arising under this Agreement prior to cancellation.
IMPORTANT: If your Spending Account is closed for any reason, the Fair Business Wealth Building Account will automatically be closed. Upon closure, any remaining funds in the Fair Business Wealth Building Account, including any dividend payments due to you, will be aggregated with the remaining funds in your Spending Account. If your Fair Business Wealth Building Account is closed prior to the end of the Statement Cycle, any accrued dividend yield for that Statement Cycle will be forfeited.
If your Fair Business Wealth Building Account is cancelled, closed, or terminated for any reason, and you are still eligible to open a Fair Business Wealth Building Account, you may apply for a new Fair Business Wealth Building Account. You will not be eligible to apply for a new Fair Business Wealth Building Account until ninety (90) days after the date of closure.
Our Liability for Failure to Complete Transactions. If we do not properly complete a transaction between your Fair Business Wealth Building Account and your Spending Account on time or in the correct amount according to our Agreement with you; we will be liable for your losses or damages. However, we will not be liable in the following circumstances:
(i) If through no fault of ours, you do not have enough funds available in your Fair Business Wealth Building Account to complete a Transfer;
(ii) If access to your Fair Business Wealth Building Account or Spending Account has been blocked;
(iii) If there is a hold on either your Fair Business Wealth Building Account or Spending Account or your funds are subject to Legal Process or other encumbrance restricting their use;
(iv) If we have reason to believe the requested transaction is unauthorized;
(v) If circumstances beyond our control, including but not limited to fire, flood, or computer or other technology communication failure, prevent the completion of the transaction, despite reasonable precautions that we have taken; or
(vi) Any other exception stated in our Agreement with you.
(a) Opening Deposit and Balance Requirements. There is a one dollar ($1) minimum deposit requirement to open a Fair Business Wealth Building Account. While there are no minimum or maximum balance requirements, a Fair Business Wealth Building Account with a zero (0) balance for nine (9) continuous months will be subject to closure. See the paragraph labeled “i. Amendment and Cancellation” in Section 3 above for additional details.
(b) Transaction Limitations
(i) DEPOSITS to the Fair Wealth Building Account may be made from your Spending Account through ACH Collect and Wire transfers. There are no limits on the number of transfers that can be performed.
(ii) WITHDRAWALS may only be made via Online Transfer from the Fair Business Wealth Building Account to your Spending Account. You may withdraw funds from the Fair Wealth Building Account by sending a request by email to treasury@bankwithfair.com or calling 1-844-WBA-4PCT and your request will be processed in the order it is received.
(c) Rate Information. The current Fair Business Wealth Building Yield (“FBWBY”) for the Fair Business Wealth Building Account may be up to but shall not exceed flat rate payments equal to 4.00% of your total Fair Business Wealth Building Account balance. This is a variable rate account. There is no guarantee nor obligation to meet any FBWBY percentages. The 4.00% return only indicates the limit of the return on you Fair Business Wealth Building Account, your FBWBY will not exceed this percent. Fair may determine the FBWBY at their discretion. We may, at our discretion, change the FBWBY for the Fair Business Wealth Building Account at any time. Dividends begin to accrue no later than the business day the deposit is applied to the Fair Business Wealth Building Account. Dividends will be calculated based on the average daily balance and credited to the customer’s Fair Business Wealth Building Account on a monthly basis, which will be the 7th of the month.
(d) Balance Information. Fair Business Wealth Building Account dividends are calculated using the average daily balance in relation to the FBWBY This method applies the FBWBY, as determined by Fair Invest, to the average daily principal balance in the Fair Business Wealth Building Account at the end of each month. There are no minimum or maximum balance requirements for your Fair Wealth Business Building Account. Your balance is determinative of your dividends at the end of each month. Dividends will be distributed to your Fair Business Wealth Building Account. All dividends are at the discretion of Fair Invest.
(a) Managed Investment Account. Funds moved to a Fair Business Wealth Building Account are pooled in an investment account which is held and managed by Fair Invest. Fair Invest does not take any compensation for its role as managers and acts as a registered investment advisor (“RIA”). RIA status does not imply recommendation, sponsorship, or approval by regulatory agencies nor a level of professional competence.
(b) Related Fees. Certain other fees are not included in the annual fee charged by Fair. These include, but are not limited to, margin costs, charges imposed directly by a mutual fund or exchange traded fund, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions.
(c) Not FDIC Insured. Although Fair will not transfer losses on the pooled investment account to Spending Accounts, Fair Business Wealth Building Accounts are NOT FDIC INSURED and are subject to potential loss.
(d) All investments such as the Fair Business Wealth Building Account are subjected to risk of loss. You should be aware of any risks associated with placing your funds in a Fair Business Wealth Building Account. Fair will make its best efforts to not transfer losses to Fair members on their initial investments through the use of a liquidity account. Such liquidity account will only cover your principal investment. This liquidity account does not extend to any dividend return as calculated by the FBWBY. This is a method by Fair Invest to reduce your risk of exposure, in addition to other risk reduction methods, but in no way provides a total barrier to general inherent and market risk. INVESTMENT OPPORTUNITIES INVOLVE INHERENT RISK AND CERTAIN ILLIQUIDITY, AND AS WITH OTHER INVESTMENTS, YOU CAN LOSE
SOME OR ALL OF YOUR INVESTMENT. As a private placement, Fair Business Wealth Building Accounts are exempted from registration with the U.S. Securities and Exchange Commission and do not have the same liquidity or secondary market due to restrictions on transfers.
(e) SIPC Insured. Fair Invest accounts in Apex Custodian accounts are covered by SIPC insurance, and only insures for loss in the event of Fair Invest’s liquidation. SIPC INSURANCE DOES NOT PROTECT FROM MARKET RISK OR ANY LOSSES RELATED TO MARKET RISK OR AN INVESTOR’S DISCRETION. INVESTMENT IN SECURITIES SUCH AS THESE HAVE INHERENT RISK.
(f) Conflicts of Interest. Clients must be a member of Fair in order to become a client of Fair Invest. From time to time, representatives of Fair Invest may buy or sell securities for themselves that they also recommend to clients or at or around the same time as client, and such transaction will be documented. Representatives of Fair Invest will never engage in trading that operates to the client’s disadvantage in such situations. Fair Invest serves all Fair Business Wealth Building Accounts and will act in its clients’ best interest consistent with its fiduciary duty as sponsor and portfolio manager. Clients should be aware that Fair Invest has an incentive to limit trading activities for Fair Business Wealth Building Accounts since Fair Invest absorbs transaction costs.
(g) Member Risk Profile. Fair Invest offers the same suite of services to all Eligible Members who hold Fair Business Wealth Building Accounts; however, specific client investment strategies and their implementation are dependent upon the client’s current situation (income, tax levels, and risk tolerance levels). Clients are not permitted to impose restrictions in investing in certain securities or types of securities in accordance with their values or beliefs.
(h) Nothing in this Agreement is to constitute a promise or guarantee of future performance. With any investment, there is inherent risk of loss of some or all of invested funds. Fair Invest will attempt to mitigate any inherent risk subject to your principal investment through liquidity accounts and diversification in investments. Any individual obtaining a Fair Business Wealth Building Account must, along with Fair Invest, not claim to avoid such risk and acknowledge this potential for loss. Fair Invest practices in the best interests of our clients and will make the best effort to manage and protect against principal loss and passing them to the Member.
This Agreement is effective 11/01/2022