TRUTH-IN-SAVINGS INDEX DISCLOSURE & AGREEMENT

Transcription

1 TRUTH-IN-SAVINGS INDEX DISCLOSURE & AGREEMENT PLEASE KEEP THIS BROCHURE FOR YOUR RECORDS This Disclosure supersedes all Disclosures prior to the effective date shown below. EFFECTIVE MARCH 1, W. Santa Ana Blvd., Santa Ana, CA / (714) / (800) / fax: (714) PEOPLE HELPING PEOPLE borrow / save / invest / access money / build a community

2 Table of Contents.Page General Information... 1 Procedures for Opening New Account... 1 Membership/Eligibility... 1 Payment of Dividends... 1 Dividend Rates... 1 Statements... 1 National Credit Union Share Insurance (NCUSIF)... 2 Owner(s)... 2 Substitute Checks and Your Rights... 2 Substitute Check... 2 How to Make a Claim for Refund... 2 Regular Savings Account (Share Accounts)... 2 Minimum Balance and Deposit Requirements... 2 Transaction Limitations... 2 Money Market Accounts... 2 Holiday Club... 2 Maturity Month... 2 Incorporation of IRA Agreement and Disclosures... 2 Checking Accounts (Share Draft)... 2 Secured Checking... 2 Business Checking... 2 Term Share Certificate Accounts (Regular and IRA)... 4 Minimum Opening Balances... 4 Renewals... 5 Additional Deposits... 5 Penalties... 5 Individual Retirement Accounts (IRAs) Traditional and Roth... 5 Contributions... 5 Distributions... 5 Other Terms and Conditions Applicable to All Accounts... 5 Additional Terms and Conditions Applicable to Individual and Joint Accounts... 9 Terms and Conditions Applicable to Pay-On-Death (P.O.D) Designation... 9 Terms and Conditions Applicable to All Living Trusts... 9 Terms and Conditions Applicable to Uniform Transfers To Minors Act Accounts Terms and Conditions Applicable to All Fiduciary Accounts Terms and Conditions Applicable to All Sole Proprietorship Accounts Terms and Conditions Applicable to Corporate Partnership and Unincorporated (Club) Accounts Courtesy Pay Program Agreement Limitation of Services Policy Disclosure of Funds Availability Policy Longer Delays Special Rules for New Accounts Holds on Other Funds Effect of Hold Collection Items Special Notice Regarding Endorsement Standards How To Reach Us... 14

3 TRUTH-IN-SAVINGS DISCLOSURE GENERAL INFORMATION For the purposes of this Disclosure and Agreement the words YOU, YOUR, YOURS, and MEMBER mean each and all of those (whether one or more persons) who are subject to this Agreement(s) as a result of signing a Membership Application / Signature Card for each respective Account or opening an Account with the Credit Union. The words WE, US, OUR, Credit Union, and SAFCU mean the Santa Ana Federal Credit Union. You understand and agree that this Agreement, along with any other documents we give you pertaining to your account(s), is a contract that establishes the rules that control your account(s) with us. When you sign the Membership Application/Signature Card or open or continue to use the Account(s), you agree to follow these rules. The purpose of this Agreement is to: 1. Apply and explain some laws that apply to common transactions; 2. Establish rules to cover transactions or events that the law does not regulate; 3. Establish rules for certain transactions or events that the law regulates but for which it permits variations by agreement; and 4. Provide disclosures of some Credit Union policies to which you may be entitled or in which you might be interested. You understand and agree that if any provision of this Agreement is found to be unenforceable according to its terms, all remaining provisions will remain in full force and effect. We may permit some variations from this Agreement, but we will only agree to do so in writing either on your Signature Card or in some other document. IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an Account. What this means for you: When you open an Account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also make a copy of your driver s license or other identifying documents. MEMBERSHIP/ELIGIBILITY To join SAFCU, you must meet our membership eligibility requirements, complete a Membership Application, and purchase one share at a par value of $5.00 (nonrefundable). If you fail to complete the purchase of one share within six (6) months of your admission to membership or within six (6) months from the increase in the par value of shares, or if you reduce your Account balance below the par value of one share and you do not increase the balance to at least the par value of one share within six (6) months of the reduction, you may be terminated from membership at the end of a dividend period. You must remain a member in good standing to maintain any account. You must maintain the par value of a share in a Regular Share Account to open other accounts. The maximum amount of shares that may be held by any member may be established from time-to-time by the Board of Directors. Shares are nontransferable except on the records of SAFCU. As a condition of establishing Membership, we may confirm your eligibility prior to or subsequent to opening your Share Account. If we cannot confirm your eligibility to our satisfaction, your account may be closed. For additional eligibility information, please call (714) or (800) PAYMENT OF DIVIDENDS DIVIDEND RATES: The frequency and conditions upon which dividends are paid on all Accounts are in accordance with the Bylaws of this Credit Union, the California Financial Code, and the Truth-in-Savings Act and Regulations. You will not earn dividends on any Account that falls below the required calendar month average daily balance. The Share Account is a variable rate account, and rates are subject to change daily, at our discretion. Dividends are paid from current income and available earnings, after required transfers to reserves at the end of a dividend period. Dividends will begin to accrue on the business day you deposit non-cash items (e.g., checks) or cash items to your Account if deposited before the close of business. However, if the average daily balance for the calendar month is not met for the dividend type, no dividend is paid. For all dividend-earning Accounts, except Term Share Certificate Accounts, the dividend rate and Annual Percentage Yield (APY) may change at any time at the discretion of the Credit Union s Board of Directors. For specific dividend rate(s) for each type of dividend bearing Account, and the minimum balance to open and earn the APY for these Accounts, you may refer to the attached Current Dividend Rate Sheet, which is incorporated by this reference; members may also obtain current rate information by calling the Credit Union at (714) or (800) or on-line at The dividend rate and APY for Term Share Accounts is stated in the Current Dividend Rate Sheet in effect on the day the account is opened, and you will be paid this rate until the maturity date of the Account. The Dividend Rate and APY on the Money Market Account are tiered. A tier is a range of Account balances; different Rates and APYs may apply to different tiers. The dividend rate paid is dependent upon the tier in which the calendar month average daily balance falls. These rates are subject to change without notice. The Current Dividend Rate Sheets will show current Rates, APYs, and tiers. The dividend rate for the Regular and IRA Certificates is set for the term and is based on initial opening balance. The dividend rate on the College Saver Share Certificate is set for the term For all Accounts except Term Share Certificate Accounts, dividends will be compounded monthly and will be credited monthly on the last day of the month. For Term Share Certificate Accounts, dividends will be compounded monthly and will be credited monthly on the last day of the month and at maturity. For all Account types, the dividend period is monthly. For example, the beginning date of the first dividend period of the calendar year is January 1 and the ending date of such dividend period is January 31. All other dividend periods follow this same pattern of dates. The dividend declaration date follows the ending date of a dividend period, and for the example is January 31. We can transfer dividends to your Primary Share or Share Draft Checking Account upon your request. For Term Share Certificate accounts, you also have the option of having dividends mailed to you by check. The annual percentage yield quoted on all accounts assumes dividends remain in the account until maturity. Withdrawal of dividends will reduce your earnings below the stated APY. If you close any share account prior to the end of the dividend posting period, you will forfeit accrued dividends. Withdrawals from Share Certificate accounts will receive the accrued dividends, less any penalty. BALANCE COMPUTATION METHOD: Dividends are calculated by the average daily balance method which means that daily balances are aggregated and divided by the number of days in the calendar month. The average daily balance is then multiplied by the daily rate which is 1/365 of the annual dividend rate multiplied by the number of days in the calendar month. STATEMENTS Statements are generated on a quarterly basis. Monthly statements are generated if you have activity on a Share Draft Checking account, electronic funds transfers or an open-end loan or line of credit. You understand and agree that the Credit Union does not return your cancelled checks with your statements. We will mail account 1

4 statements only to the address shown on our records. You can elect to receive your SAFCU periodic account statements electronically, through our estatements service. For more information on Statements, visit our Online Banking system. NATIONAL CREDIT UNION SHARE INSURANCE FUND: Member Accounts in this Credit Union are federally insured by the National Credit Union Share Insurance Fund (NCUSIF). OWNER(S): The word owner(s) on an Account Signature Card or Membership Application means the owner in the case of an Individual Account and it means the joint owners (both as individual and as a group) in the case of a Joint Account. Substitute Checks and Your Rights Substitute Check: Federal law permits banks to replace original checks with substitute checks. These checks are similar in size to original checks with a slightly reduced image of the front and back of the original check. The front of the substitute check states: This is a legal copy of your check. You can use it the same way you would use the original check. You may use a substitute check exactly the same way you would use an original check including as proof of payment. Some or all of the checks you receive back from us may be substitute checks. This notice describes rights you have when you receive substitute checks from us. The rights in this notice do not apply to original checks or to electronic debits to your account. However, you have rights under other law with respect to those transactions. How to Make A Claim for Refund: If you believe you have suffered a loss relating to a substitute check that you received and that was posted to your account, please contact us at (714) or (800) or write to us at Santa Ana FCU, 800 W. Santa Ana Blvd., Santa Ana, CA You must contact us within sixty (60) calendar days of the date that we mailed (or otherwise delivered by a means to which you agreed) the substitute check in question or the account statement showing that the substitute check was posted to your account, whichever is later. We will extend this time period if you are not able to make a timely claim due to extraordinary circumstances. If you tell us orally, we may require that you send us your claim in writing within 10 business days. Your claim must include: A description of why you have suffered a loss (for example, you think the amount withdrawn is incorrect); An estimate of the amount of your loss; An explanation of why the substitute check you received is insufficient to confirm that you suffered a loss; and A copy of the substitute check; your account number, the check number, the amount of the check, and the date the check posted to your account. REGULAR SAVINGS ACCOUNT (SHARE ACCOUNTS) Our Share Accounts are called Primary Shares, Alternate Shares, Payroll Shares, Holiday Club, Regular IRA Share Account, Roth IRA Share Account, Money Market Account, and Certificate Builder Account. MINIMUM BALANCE AND DEPOSIT REQUIREMENTS: The minimum deposit required for you to open and maintain your Share Account(s) is disclosed on the Current Dividend Rate Sheet. I must maintain the minimum deposit required to maintain my Share Account (if applicable) in order to avoid closure of the Account and I must maintain the minimum deposit required to maintain my Primary Shares to avoid closure of my other Accounts with you. TRANSACTION LIMITATIONS (ALL SHARE ACCOUNTS): During any calendar month, you may not make more than six withdrawals or transfers from your Share Accounts to another Credit Union Account of yours or to a third party by means of a preauthorized or automatic transfer or telephonic (such as SAFCU by Phone Audio Response, Online Banking, Mobile Banking, Remote Deposit Capture, fax or personal computer) order or instruction. You may make an unlimited number of withdrawals from, or transfers among, your Share Accounts by mail, messenger, or in person at the Credit Union or at an ATM. You may also make an unlimited number of withdrawals from your Share Accounts through SAFCU by Phone Audio Response or Online Banking if you request that we send you a check. MONEY MARKET ACCOUNTS: To establish a Money Market Share account, you must make an initial deposit as stated on the Current Dividend Rate Sheet. HOLIDAY CLUB: The Holiday Club account allows you to save for the year-end holidays. Deposits to the Holiday Club account can be made at any time, in any amount not to exceed a maximum balance of $10,000 in the account. There is no minimum monthly deposit requirement. You can establish a Holiday Club account at any time. The Holiday Club account is a variable rate account. Rates are subject to change daily, at our discretion. You will not receive dividends on this account if the calendar month average daily balance falls below the minimum balance required to earn dividends. Rate information is set forth on our Dividend Rate Sheet. MATURITY MONTH: The Holiday Club account matures on November 1 each year. Your Holiday Club account balance will transfer to your designated SAFCU Share Account on November 1. You may request your funds be transferred to your Regular Share Savings Account or Share Draft Account. INCORPORATION OF IRA AGREEMENT AND DISCLOSURES: All other terms and disclosures for our Individual Retirement Accounts are contained in the Credit Union s Individual Retirement Account Agreement and Disclosure Statement, which by this reference is incorporated into this Account Disclosure in its entirety. When you open your Individual Retirement Account, the Credit Union Agreement and Disclosure Statement will be provided to you. CHECKING ACCOUNTS (SHARE DRAFT) To establish a Share Draft Checking account, you must be a Member in good standing. In addition, you must make an initial deposit as disclosed on the Current Dividend Rate Sheet to the Share Draft Checking account. Initial deposit is waived if automatic payroll deposit is set up. All Share Draft Checking accounts are verified through ChexSystems. We may refuse to open an account based on information provided by them. We offer two different Share Checking Accounts. Special terms and conditions applicable to each account type are shown below. All other disclosures contained herein apply to all Checking Accounts, regardless of type. SECURED CHECKING: This account has a monthly service charge. This account provides unlimited use of SAFCU and CO-OP ATMS, Online Banking, Mobile Banking/Remote Deposit Capture, and Shared Branching. No check writing limitations apply to this account. This account may earn dividends. The dividend rate and Annual Percentage Yield (APY), if any, may change at any time, as determined by the Credit Union s Board of Directors. If applicable, the dividend rate and Annual Percentage Yield for this account as of the last dividend declaration date are set forth in our Rate and Fee Schedule. If this account earns dividends, you must maintain the minimum daily balance set forth in the Rate and Fee Schedule to earn the stated APY. BUSINESS CHECKING (NON INTEREST BEARING): This account has a monthly service charge. This account provides unlimited use of SAFCU, CO-OP ATMS, On Line Banking, Mobile Banking/Remote Deposit Capture, and Shared Branching. No check writing limitations apply to this account. This account may earn dividends. The dividend rate and Annual Percentage Yield (APY), if any, may change at any time, as determined by the Credit Union s Board of Directors. If applicable, the dividend rate and Annual Percentage Yield for this account as of the last dividend declaration date are set forth in our Rate and Fee Schedule. If this account earns dividends, you must maintain the minimum daily balance set forth in the Rate and Fee Schedule to earn the stated APY. 1. We may recognize the signature of anyone who signed the Signature Card/Membership Application to transact any business on this Account, including, but not limited to, the causing or making of overdrafts (for which all of you shall be liable) and endorsement of checks payable to any signer of this Account. Each account owner is jointly and severally responsible for paying any overdrafts created by any of you whether or not you personally participate in the transaction or benefit from its proceeds. 2

5 2. If the Signature Card/Membership Application is signed by more than one person, all of you further agree as between yourself and us: a. All amounts now and hereafter in the Account, regardless of source, are owned by you jointly and equally regardless of your net contributions, with right of survivorship, and subject to withdrawal(s) and/or receipt of or by any of you, and payment to any of you or any of your survivors shall be valid and discharge us from any liability for such payment. b. You hereby appoint each other as agents and attorneys in fact to overdraft any of your Share or Loan Accounts (including accounts on which you are joint owners, except IRA accounts). 3. If we have made a good faith payment to a holder, we may charge your account according to: a. The original terms of your check; or b. The terms of your completed check, unless we have notice that any such completion is improper. 4. You, or any other person authorized to draw on the account, may request a stop payment of any check payable against your account, provided your request is timely and affords us a reasonable opportunity to act upon it under our rules. You may also stop payment on a line of credit check. Your stop payment must include the account number, check number, exact amount, check date, and name of payee. We will not be liable for paying a check over a stop payment request if the request is incomplete or incorrect. You agree to indemnify, defend, and hold us harmless for all claims, actions, and damages related to or arising from our action in stopping payment of any check pursuant to your request. A stop payment fee will be assessed for each stop payment request. If you give a stop payment request orally, the request shall be valid for only fourteen (14) days thereafter unless confirmed in writing. Written requests shall be valid no longer than six (6) months, but may be renewed for additional six (6) month periods by written notice given during the time that the stop payment request was effective. You have the burden of establishing the fact and amount of loss resulting from payment contrary to a binding stop payment request. You may not stop payment on completed electronic point-of-sale transactions, cashier s checks, certified checks, or checks issued or guaranteed by you. 5. We are authorized to pay checks signed by you and the payments will be charged to your Account. 6. You authorize us to transfer funds from your Primary Share Account on your written or oral request to your Checking Account. You understand and agree that no transfer will be made unless there are sufficient shares on deposit at the time of transfer. 7. We may, at our discretion, but are not obligated to (nor shall we be liable for refusal to), pay funds from this Account: a. When such payment would draw the Account below the minimum balance as established from time to time by us ( overdraft ). b. If drawn by means not authorized in advance by us. c. Against checks presented over 6 months past their issue dates. d. Against uncollected non-cash items. 8. We may, without liability, accept, pay, guarantee, or charge checks to the Account in any order convenient to us. 9. Stale-Dated Checks - The Credit Union is under no obligation but may pay a check which is presented more than six (6) months after it is dated. All checks written on your Account must be drawn in U.S. dollars. 10. We may pay and charge to your Checking Account funds drawn by us and payable to any persons, organization, association, or corporation whom you have authorized by providing sample MICR encoded information for your Account provided there are sufficient funds in your Account to pay such checks. You agree that your rights in respect to such preauthorized checks shall be the same as if it were a check drawn and signed by you personally. This authority shall remain in effect until revoked by you in writing to us (and to the agency to whom the sample MICR writing was provided) and we have had reasonable opportunity to act on it. You agree that we shall be fully protected in honoring such checks. You further agree that if any such check is dishonored, whether with or without cause, and whether intentionally or inadvertently, we shall be under no liability whatsoever even though such dishonor results in the forfeiture of insurance, loss, or damage to you of any kind. 11. Your death, dissolution, or incompetence shall not revoke our authority to accept, pay, or collect a check(s) or to account for proceeds of its collection until we know of the fact of your death or adjudication of incompetence and have reasonable opportunity to act on it. Even with knowledge, we may for ten (10) days after the date of death, dissolution, or incapacity, pay or guarantee a check(s) drawn on or prior to the date unless ordered in writing to stop payment by a person claiming an interest in the Account under rules established by us. We must be notified if any of you die, become incapacitated, or your organization is dissolved. 12. If we have paid a check under circumstances giving a basis for objection by you, we shall be subrogated to the rights of: a. Any holder in due course on the check against the drawer or maker; and b. The payee or any other holder of the check against the drawer or maker either on the item or under the transaction out of which the item arose; and c. The drawer or maker against the payee or any other holder of the check with respect to the transaction out of which the check arose. 13. When handling an item, our measure of damages for failure to exercise ordinary care in handling such item shall not exceed the amount of the item. In any other case (including forgery, alteration, or other unauthorized withdrawal), our maximum liability is the lower of your actual damages proved or the amount of the forgery, forgery, alteration, or other unauthorized withdrawal. In either case, our liability for damages shall be reduced by the amount of damages that would not have been realized if you had used ordinary care. IN NO EVENT SHALL WE BE LIABLE FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, OR PUNITIVE DAMAGES, INCLUDING LOST PROFITS AND/OR OPPORTUNITY, AND WE SHALL NOT BE LIABLE FOR YOUR ATTORNEYS FEES. 14. Our authority under this agreement may not be changed or terminated by you, except by written notice to us which will not affect any prior transactions. 15. Overdraft protection is available for your Checking Account in the following manner: Automatic Overdraft Transfers - Upon your request, we may set up automatic overdraft transfers for your Share Draft Checking account. When sufficient funds are not available in your Share Draft Checking to cover a check or other debit, we will transfer the amount needed from your Regular Share, Money Market Share, or other Share Draft Checking accounts, up to the available amount. However, federal regulation places limits on the number of certain transactions, including transfers for overdraft protection, you make from Savings and Money Market Shares. Overdraft Protection Loans - You may apply for an Overdraft Protection Loan. With an Overdraft Protection Loan, we will transfer the amount needed, up to your available credit, to cover a check or other debit from your Share Draft Checking. Courtesy Pay We may, but are not obligated to, cover overdrafts in accordance with the Courtesy Pay Program Agreement set forth in this Agreement and Disclosure. Deposits - You agree that we may apply your deposits, including deposited benefit payments, such as Social Security, SSI, or other State or Federal retirement benefit deposits, to any overdrafts. 16. Only Santa Ana Federal Credit Union checks, or other methods approved by us, may be used to withdraw funds from the Account. 3

6 17. As a convenience to you, we will submit your initial order and reorders for personalized checks to the printer named on the face of the order. If the printer accepts the initial order and reorders, the printer will mail the checks directly to you. You authorize the Credit Union to charge your Checking Account for the cost of delivered checks ordered, plus applicable sales tax and shipping costs. You are responsible for verifying the accuracy of all information shown on your checks whether you order them from us or somewhere else. If you do not order your checks through the Credit Union s authorized check vendor(s), you understand and agree that there is a higher likelihood that your checks may be rejected due to printing errors, erroneous information, and formatting errors. Rejected check charges may apply. 18. You will notify us at (714) immediately, if your checks are lost or stolen. You agree that you will be responsible for losses caused by a delay in your notification to us. We may recommend for you to close your existing Checking Account and reopen a new one any time if there have been (or there is reasonable cause to believe that there may be) unauthorized transactions on your account (e.g., due to lost/stolen checks, etc.). If, despite our recommendation to establish a new Account number, you choose not to, you release the Credit Union from any liability for subsequent losses on the Account due to unauthorized transactions to the extent permitted by law. In addition to any rights we have by law, we may deny a claim for monetary loss due to forged, altered, or unauthorized signature if you do not guard against improper access to your checks. If you report to us that a forgery, alteration, or other unauthorized transaction has occurred on your Account, you agree to cooperate with the Credit Union in the investigation of your claim. This includes providing an affidavit containing whatever reasonable information we require concerning your Account, the transaction in question, and the circumstances surrounding the loss. You also agree to file a criminal report with appropriate law enforcement officials against any suspected wrongdoer, if we request that you do so. You agree to pursue all rights you may have under any insurance coverage you maintain before making a claim against the Credit Union in connection with any Account transaction, and to provide us with all reasonable information about your insurance coverage. Our liability, if any, is reduced by the amount of all insurance proceeds you receive, or are entitled to receive. Except as otherwise required by law or regulation, you agree that we have a reasonable period of time to investigate the facts and circumstances surrounding any loss you claim, and that we have no obligation to provisionally credit your Account. We are not liable for any items that are forged or altered in such a way that we cannot reasonably detect the forgery or alteration. Our maximum liability is the lower of your actual damage proved, or the amount of the forgery, alteration or other unauthorized withdrawal, reduced by an amount which would not have been realized by the use of ordinary care. In no event will we be liable for special or consequential damages, including loss of profits and/ or opportunity or for attorneys fees incurred by you. 19. Paid checks remain the property of the Credit Union upon payment and are not returned to the Account owner(s). Checks are imaged on both sides and stored for seven years from date of posting. You may request and we will provide you with a photocopy of a requested item within a reasonable time. We will not charge you for copies of the first 3 items you request appearing on any statement. Additional copies will be subject to an assessment of a fee. Check copies for the previous 12 months are available in Online Banking at no charge. You understand and agree that we are not responsible for the quality of any check copy that you request from us. 20. You shall pay us all costs and charges incident to the Checking Account according to the Fee Schedule established by us from time to time. We shall debit such charges against the Checking Account, except where there are insufficient funds available, and then such charges shall be treated as overdrafts. 21. The use of the Checking Account is subject to such other terms, fees, conditions and requirements as the Credit Union may establish from time to time. 22. If this is an organization Account, the persons authorized to sign on this Account certify that they are the duly elected or appointed officers of said corporation, partnership, organization, or unincorporated association and have the authority to transact business of any character whatsoever in connection with this Account. The Credit Union shall have the right to terminate this Agreement or close any Checking Account of a member without notice and without consent at any time, subject only to the restrictions of the Credit Union s Bylaws, if any. 23. Checking Accounts with no activity for ninety (90) days or more will be considered inactive and may be closed by the Credit Union. 24. You may not pledge any or all of the funds on deposit in a checking account as security for any loan(s). 25. If a transaction involves a remotely-created check, we reserve the right to accept or reject the item for deposit into any of your Accounts. If you deposit a remotelycreated check into any of your Accounts, you represent and warrant to us that you have instituted procedures to ensure that these drafts are authorized by the person on whose account the remotely-created check is drawn in the amount stated on the check and to the payee stated on the check. If a remotely-created check which you have deposited into your Account is returned by the drawee-payor bank for any reason, you agree that we may debit your Account for the amount of the item, plus any applicable fees. If the debit causes your Account to be overdrawn, you agree to pay the overdrawn amount on our demand. For purposes of this Agreement, the term remotely-created check means a check that is not created by the paying bank and that does not bear a signature applied, or purported to be applied, by the person on whose account the check is drawn. 26. We may charge against your account a postdated check even though payment is made before the date of the check. However, if you notify us within a reasonable time to permit us to act and identify the check with reasonable certainty, we cannot pay the check until the due date. Notice may be written or oral and it must include the exact amount, account number, check number, date of check, and name of payee. If oral, the notice shall be valid for fourteen (14) days. If written, the notice shall be valid for up to six (6) months, and can be renewed within six (6) months for another successive six (6) month period. A fee may be assessed for this service. 27. In the event of wrongful dishonor that occurs by mistake, our liability shall be limited to actual damages you prove. In the event of a dishonor of any check, share draft, or other debit on your account, our determination of whether sufficient funds exist in your account may be made at any time between the time the item is received and the time it is returned. If we should choose to make a subsequent account balance check, we must use the last figure in deciding whether to dishonor the check, share draft, or other debit. 28. You agree that, in the event you draw a check on your account with us, you will hold us harmless and indemnify us from any liability you incur due to a delay or misrouting of the check where the delay or misrouting is caused by markings placed on the check by you or a prior endorser that obscure any depository endorsement placed by us or our agent. TERM SHARE CERTIFICATE ACCOUNTS (REGULAR AND IRA) Our Term Accounts are called Share Certificates, Regular IRA Certificates, Roth IRA Certificates and College Saver Certificates. Share Certificate accounts are available with terms from 3 months to 60 months. College Saver Certificates are available to minors and mature at age 18. MINIMUM OPENING BALANCES: The minimum balances required to open our Term Share Certificates, current dividend rates, and annual percentage yield (APY) information is available on our Current Dividend Rate Sheet. There may be other minimum balance requirements to earn the stated APY. See Penalties below if minimum balance is not maintained. 4

7 RENEWALS: The Account will mature on the Maturity Date set forth in the Certificate Receipt. Upon expiration of the terms, we will automatically renew all Term Share Certificates for the same term unless: You give us advance written notice to do otherwise; or You withdraw or transfer your account within the seven day grace period beginning on your maturity date; or You close the Account. Dividends continue to accrue during the seven day grace period at the new rate. If automatically renewed, all funds in the Account as of the renewal date are considered to be principal. College Saver Certificates will transfer to a savings account when you reach the age of 18. ADDITIONAL DEPOSITS: Deposits to the Regular or IRA Share Certificates can be made only during the 7-day grace period. The maturity date and dividend rate stated will not be affected by deposits. Promotional certificates offered from time to time may allow additional deposits; in that case, you will be informed of any additional deposit limitations. PENALTIES: If you withdraw all or any portion of principal from your Term Share Certificate during your seven-day grace period, there will be no dividend penalty. Credited dividends may be withdrawn or transferred at any time without early withdrawal penalties imposed by the Credit Union. The Annual Percentage Yield (APY) is based on an assumption that dividends will remain in the account until maturity. An early withdrawal will reduce earnings. Early withdrawal of any principal amount during a certificate term will result in a substantial forfeiture of dividends as follows: If your Term Share Certificate has a term of less than 18 months, you will lose an amount equal to 90 days dividends on the principal amount withdrawn. If your Term Share Certificate has a term of 18 months or more, you will lose an amount equal to 180 days dividends on the principal amount withdrawn. If the amount withdrawn reduces the principal balance below the standard minimum, you will be assessed the applicable dividend penalty stated above on the entire principal balance. In addition, we will cancel the certificate and transfer any remaining balance to your Regular Share account. We will waive early withdrawal penalties for any of the following: A one-time withdrawal made as a result of your death or permanent disability Withdrawals made as a result of the voluntary or involuntary liquidation of this credit union Normal distributions from IRA Share Certificate accounts (See Individual Retirement Accounts information below.) INDIVIDUAL RETIREMENT ACCOUNTS (IRAs) TRADITIONAL AND ROTH To establish a Traditional or Roth IRA, you must make an initial deposit as disclosed on the Current Dividend Rate Sheet. Minimum additions of $10 are allowed at any time to IRA Share Accounts. You will not earn dividends on these accounts for any day in which the balance is less than $500. The IRA Share Account is a variable rate account, and rates are subject to change daily, at our discretion. Share Certificate IRAs are available in 3-60 month terms. See Share Certificates information on the Current Dividend Rate sheet for disclosures applicable to Certificate type IRAs. CONTRIBUTIONS: Maximum annual contributions are determined by IRS regulations. We will credit any contributions made through the mail, by payroll deduction, SAFCU by Phone, or Online Banking for the year in which the transaction took place. If you want contributions credited for a prior year (before April 15 of the current year), please send written instructions with your deposit. DISTRIBUTIONS: Certain federal and state penalties may apply if IRA funds (including dividends earned on IRA funds) are withdrawn early. We will waive certificate penalties for early withdrawals for (1) normal distributions from an IRA Share Certificate Account with a term of less than 24 months, and (2) all automatic, normal distributions from an IRA Share Certificate Account with a term of 24 months or longer. (Normal distributions are defined as withdrawals, made by you from an IRA, after age 59-1/2, that are not reinvested in another SAFCU IRA account; automatic, normal distributions are defined as withdrawals made from an IRA that consist of substantially equal periodic payments, made by SAFCU on your behalf, after age 59-1/2, that are not reinvested in another SAFCU IRA account.) All automatic, normal distributions from IRAs will be processed on the first business day of each month. OTHER TERMS AND CONDITIONS APPLICABLE TO ALL ACCOUNTS 1. You must deposit the par value of at least one (1) share into a Regular Savings Account. The par value of a share necessary to become a member and maintain accounts with us is currently $5.00. If you fail to complete the purchase of one (1) share within six (6) months of your admission to membership or within six (6) months from the increase in the par value in shares, or if you reduce your Account balance below the par value of one (1) share and you do not increase the balance to at least the par value of one (1) share within six (6) months of the reduction, you may be terminated from membership at the end of a dividend period. You must be and remain a member in good standing to maintain any account. You must maintain the par value of a share in a Regular Savings Account to open other accounts. The maximum amount of shares that may be held by any member may be established from time to time by the Board of Directors. 2. All Accounts (except Checking Accounts) are not transferable except as defined in 12 CFR, Part 204. For all accounts except checking accounts, during any statement period, you may not make more than six (6) withdrawals or transfers to another account of yours at the Credit Union or to a third party using any combination of preauthorized or automatic transfers or telephonic orders or instructions. If you exceed the transfer limitations set forth above in any statement period, your account may be closed. 3. Our delay in enforcing any of the terms and conditions of this Agreement and Disclosure shall not prohibit us from enforcing such terms and conditions at a later date. 4. We reserve the right upon thirty (30) days written notice to change any provision of or establish new provisions to this Agreement and Disclosure. 5. We may refuse to follow any of your instructions that in our sole judgment are illegal or would expose us to potential liability. Alternatively, we may require adequate security or invoke other security measures to protect us from all losses and expenses incurred if we follow your instructions. You agree to reimburse us for any damages, losses, liabilities, expenses, and fees (including, but not limited to, reasonable attorneys fees) that we incur in connection with your account if we take an action in accordance with your, or what purports to be your, oral, written, or electronic instructions. 6. We reserve the right to refuse to open any account or to provide any service or to accept additional deposits to an existing account. 7. We may endorse and/or collect items deposited to your Account which we receive without your endorsement, but may require your personal endorsement prior to accepting an item for deposit. If you deposit items which bear the endorsement of more than one person or persons that are not known to us or that require endorsement of more than one payee, we may refuse the item or require all endorsers to be present and properly identified, or to have their endorsement guaranteed before we accept the item. 8. You authorize us to accept items payable to any account owner for deposit to your account from any source without questioning the authority of the person making the deposit, and to give cash back to any authorized signer(s) or designated agent on any check payable to any one or more of the account owners, whether or not it is endorsed by you. 5

8 9. You understand and agree that we may utilize automated means to process checks and other items written on or deposited to your account. Although we may manually review checks or other items drawn on your account, you understand and agree reasonable commercial standards do not require us to do so. 10. We are not responsible for items lost while not in our possession. 11. We will deliver all statements and other notices only to the person whose signature appears first on the Signature Card / Membership Application. You shall exercise reasonable care and promptness in examining your statements and must promptly notify us of any unauthorized payment due to an altered item or an unauthorized signature. If you fail to uphold these duties, you understand and agree that you are precluded from asserting the unauthorized payment against us if: 1) we suffered a loss on the item because of your failure; or 2) we paid on another item presented by the same wrongdoer if the payment was made before you properly notified us. Except as otherwise set forth in this Agreement and Disclosure, notification must be made within thirty (30) days of the date of the statement. If you fail to uphold your duties but you can prove that we failed to exercise ordinary care in the payment of the relevant items, then the above preclusion will not apply and the loss on the items will be allocated between us and you to the extent our respective actions contributed to the loss. If you have failed to examine your statement and report any unauthorized item within one (1) year after your statement or the item has been made available to you, you cannot recover from us even if we failed to exercise ordinary care in paying the item. 12. We or you may terminate an Account(s) at any time. You understand and agree, however, that our authority may not be changed or terminated except by written notice to us which will not affect prior transactions. If we receive conflicting claims to funds in an Account we hold, we may, at our discretion, restrict the Account and deny access to all; close the Account and send the funds to the owner or owners of record of the Account at the statement mailing address; interplead all or any portion of the funds from an Account to the court; or hold the funds, without liability to anyone, pending resolution of the claim to our satisfaction. 13. We reserve the right to close any Account(s) discovered to be deliberately manipulated to our detriment, to any other accountholder s detriment, and/or to the detriment of our membership. Manipulation includes, but is not limited to, making unauthorized withdrawals or other transactions, kiting, and repeated patterns of transactions which have no apparent business reason other than to take advantage of Regulation CC hold periods and/or interest float to our detriment. At our option, we may suspend your rights to member services if you violate the terms of this Agreement. 14. You acknowledge that we may be obligated to report cases of actual or suspected financial abuse of elders or dependent care adults to the proper authorities empowered to investigate such cases. If we suspect such financial abuse, you understand and agree that, in addition to reporting such abuse as may be required under law, we have the right to freeze the account, refuse to complete transactions on the account, or to take any other action(s) that we deem appropriate under the circumstances, including providing relevant information and documentation concerning your accounts and other transactions to the proper authorities empowered to investigate such cases. You agree to indemnify and hold us harmless from and against all claims, actions, damages, liabilities, costs, and expenses, including reasonable attorneys fees and expenses, arising out of or related to any action or inaction related to the matters described in this paragraph. 15. We may recognize the signature of anyone who signed a Signature Card / Membership Application as authorized to transact business on that Account. Any payment made on your Account by us in good faith and in reliance on the terms and conditions of this Agreement and Disclosure and the Membership Application / Signature Card shall be valid and discharge us from liability. Without limitation to the foregoing, we may honor checks drawn against your account by authorized signers, even if the checks are made payable to them, to cash, or for deposit to their personal accounts. We have no duty to investigate or question withdrawals or the application of funds. 16. We reserve the right to require you to give not less than seven (7) and up to sixty (60) days written notice of your intention to withdraw funds from any Account except Checking Accounts. The maximum amount you may withdraw in cash is $3, per day unless you have made prior arrangements with us. The above withdrawal limitation applies to these Accounts in combination with all other Credit Union Account(s). 17. You understand and agree that Individual, Joint, Trust and Pay-on-Death Accounts may be subject to Multiple Party Accounts Law, Division 5 of the California Probate Code, as now in effect or hereafter amended. 18. Ownership for the primary Account and all sub-accounts shall be established and determined by the most recent Membership Application/Signature Card or other document(s) evidencing such Account(s). A different form of ownership may be established by executing a new Membership Application/Signature Card. The word owner(s) means the owner of the funds in the case of an individual Account and it means the joint owners (both as an individual and as a group) in the case of a joint or other Account with multiple parties. A joint Account owner may be removed by completing a Request to Remove Joint Owner form which must be signed by all Account owner(s) or by closing the Account and having a new Account number assigned. 19. You are required to keep us informed of your current address. You may notify us in person at our office or by sending a written and signed notice to Santa Ana Federal Credit Union, 800 W. Santa Ana Blvd., Santa Ana, CA In the event that you fail to do this, you will be charged a Return Mail Fee and a charge may be made to your Account for the actual cost of a necessary locator service paid to a person or concern normally engaged in providing such service and incurred in determining your address. This charge will be imposed in accordance with our Fee Schedule. 20. You agree to notify us immediately of the death or court declared incompetence of any owner of your account. You agree to inform each owner of your account to notify us of such an event as well. If you die or are declared legally incompetent, we can continue to accept and collect items deposited to your account until we know of your death or adjudication of incompetency and have a reasonable opportunity to act. 21. All non-cash payments shall be credited subject to final payment on the day of deposit. Your right to withdraw the funds represented by certain checks, savings or other items you deposit may be delayed for several days. You will be notified if your right to withdraw will be delayed. You will refer to the Credit Union s Disclosure of Funds Availability Policy for further details. 22. If a check or other item which we cash for you or which you deposit to your account is returned to us as unpaid for any reason, we may charge your account for the amount of the check or other item. This may include, among other circumstances, checks which were paid originally and later are returned to us accompanied by documentation indicating that the endorsement is forged or unauthorized or that the item has been altered in any way. We may charge your account for the amount without questioning the truth of such documentation. We may also charge back any amount of accrued or paid dividends related to the returned check. We may re-present a returned check for payment by the financial institution upon which it is drawn if there were insufficient funds to initially pay the item, but we are not required to do so. If we choose to re-present the check, we may do so without telling you the check was not paid or that we are presenting it again. We may charge a fee for each deposited or cashed check charged back to your account. We may, at our option, notify you, by telephone or in writing, if a check has been returned unpaid and the fee charged. 23. You agree that we will not be responsible for any damages you incur in the event you deposit an item with us which is subsequently returned unpaid by the paying bank and that return is late due to markings on the back of the item caused by you or a prior endorser. 24. Although we are not obligated to, we may pay or accept checks and other items bearing restrictions or notations (e.g., Void after 6 months, Void over $50.00, Payment in Full, and the like), whether on the front or back, in any form or format. If you cash or deposit an item or write a check with such notation, you agree that it applies only between you and the payee or maker. The notation will have no effect on us, and you agree to accept responsibility for payment of the item. You agree to indemnify and hold us harmless from any claim or alleged loss of any maker or payee involving such notations, whether you are the maker or payee or the funds are otherwise deposited into an Account in which you have an interest. 6

9 25. We are under no obligation to pay a check that is presented more than six (6) months after its date, but we may do so at our discretion and charge your account without liability, even if the presentation occurs after the expiration of a stop payment order or notice of postdated change. You agree that we are not required to identify stale dated checks or seek your permission to pay them. 26. All Accounts are subject to our fees and charges as disclosed on our Fee Schedule, which accompanies this Agreement and Disclosure and is incorporated by this reference. We shall debit such charges, including check printing costs, against any Share or Checking Account or V.I.P. Line of Credit Account you own (including Accounts on which you are a joint owner), except your IRA Accounts, without prior notice to you. The charges are payable on demand and, for Checking Accounts, will be treated as an overdraft. If there are insufficient funds available in your Checking Account or Share Accounts, the funds available under the V.I.P. Line of Credit Loan Account (if any) may be used to cover the overdraft and/or to pay service charges or fees. 27. A Membership account that has had no activity for 12 months is considered dormant, and is subject to a Dormant Account Membership Fee. (Please see our current Statement of Fees). 28. California law states that inactive Account balances must be turned over to the State after a period of three (3) years since the last time you: a. Increased or decreased the amount of any of your Account(s) with us or presented an appropriate record of crediting dividends or cashed a dividend check from any of your Accounts with us; or b. Corresponded in writing or electronically with us concerning any of your Accounts with us; or c. Otherwise indicated an interest in any of your Accounts with us as evidenced by a memorandum on file with us. 29. Your deposit account will not escheat to the state, however, if, during the previous three (3) years, you have owned another deposit account with the Credit Union and, with respect to that deposit account, you have done any of the acts described in paragraphs (a), (b), or (c) above, and, with regard to the deposit account that would otherwise escheat, we have communicated (i.e., sent account statements or statements of interest paid for federal and state income tax purposes) electronically or in writing with you at the address to which communications regarding the other deposit account are regularly sent. 30. We may charge a fee for mailing an Escheat Notice. To recover funds turned over to the State, you must file a claim with the State. 31. We reserve the right to require that withdrawals made from your Accounts be made in minimum amounts as established from time to time by Board policy. 32. We may, but are not obligated to, transfer funds from your Share Account(s) or Loan Account(s) on your written or oral request. You understand and agree that no transfer will be made unless there are sufficient available funds on deposit or sufficient credit available at the time of transfer. You agree that any such transfer(s) shall be in the exact amount authorized and will be processed only on our business days. If a transfer is to occur on a day other than a business day, such transfer will occur on the next business day. Moreover, if funds are not available for the transfer on the day authorized, the transfer may occur when sufficient funds become available. 33. Federal law requires us to report certain domestic currency transactions and foreign transactions. This reporting applies to all Member Accounts at the Credit Union. 34. We agree to retain and furnish to you, if requested, copies of certain records pertaining to your Account and that these records will be available to you for the time frame required by law. You agree to pay applicable fees as listed on our Schedule of Fees and Charges for those copies. 35. We may comply with any writ of attachment, execution, garnishment, tax levy, restraining order, subpoena, warrant, or other legal process which we believe (correctly or otherwise) to be valid. We may notify you of such process by telephone, electronically, or in writing, unless we are prohibited by law from notifying you. If we are not fully reimbursed for our record research, photocopying, and handling costs by the party that served the process, we may charge such costs to any account you have with us, in addition to our minimum Legal Process Fee. You agree to reimburse us for any cost or expense, including attorneys fees, which we may incur in responding to legal process related to your accounts. 36. In the event that a cashier s, teller s, or certified check is lost or stolen, you must execute and deliver to us a written Declaration of Loss and Claim For Reimbursement and/or affidavit in a form acceptable to us and in time for us to have a reasonable time to act thereon. You further understand and agree that the Declaration of Loss and Claim For Reimbursement and/or affidavit is not enforceable until the later of (i) the time the Declaration of Loss and Claim For Reimbursement and/or affidavit is properly delivered to us or (ii) the 90th day following the date of the cashier s or teller s check, or the 90th day following the date of the acceptance of a certified check. You agree to indemnify us for any loss or claim occasioned by our attempting to, or stopping, payment on such check. 37. You authorize us to gather whatever credit, Checking Account and employment information we consider appropriate from time to time. You understand that this will assist us in determining your initial and ongoing eligibility for an Account. You authorize us to give information concerning our experience with you to others. 38. We are not responsible for any loss or damage that results from your negligence, including, without limitation, your failure to adequately safeguard your blank checks or other personal information or means of access to your account. 39. If I am a U.S. citizen, federal law requires that we obtain and have certified by you a Taxpayer Identification Number (TIN) on all Accounts. We will not open an Account without this identification number. For additional information on this requirement, you will read INSTRUCTION TO PAYER S REQUEST FOR TAXPAYER IDENTIFICATION NUMBER AND CERTIFICATION (IRS FORM W-9). These instructions are found in a separate brochure which will be furnished upon request. 40. In the event that a negative balance is created in any of your Share or Checking Accounts (whether due to ATM activity, nonsufficient funds activity, Credit Union imposed fees and charges, or otherwise) or you have other outstanding financial obligations of any kind owed to us which are in default, you understand and agree that we may transfer funds to such Account from any other Share, Checking Account or Line of Credit Account (excluding IRA Accounts), including Account(s) upon which you are a joint owner, in an amount equal to the negative Account balance or the outstanding financial obligation which is in default. In addition to any other rights that we may have, you agree that any deposits or future deposits in or other credits to any account in which you may now or in the future may have an interest are subject to our right of off-set for any liabilities, obligations, or other amounts owed to us by you (e.g., overdrafts and any permissible fees and charges) unless otherwise prohibited by law and such is applicable irrespective of any contribution to the account or source of funds in the account. Moreover, you knowingly consent and expressly agree that the application of an offset of funds in any account includes the offset of government benefits (such as Social Security and other public benefit funds) deposited in your account. 41. Pursuant to federal law, the Credit Union must verify the identity of any person seeking to open or add a joint owner or signer to any account and must maintain records of the information used to verify the person s identity. For the purposes of this paragraph, account means each formal banking or business relationship established to provide ongoing services, dealings, or other financial transactions. For example, a share account, a transaction or asset account, and a credit account or other extension of credit would each constitute an account. 42. You must be a member in good standing to maintain any savings, checking and/or loan Accounts. We may report information about your Account to credit bureaus. Late payments, missed payments, negative balances, or other defaults on your Account may be reflected in your credit report. 43. An action or proceeding by you to enforce an obligation, duty, or right arising under this Agreement and Disclosure or by law with respect to your account must be commenced within one (1) year after the cause of action occurs. 7

10 44. You agree to indemnify, defend, and hold us and our employees harmless from and against every claim, demand, action, cost, loss, liability, and expense including, without limitation, attorneys fees, which we incur by acting in accordance with this Agreement and Disclosure or as a result of your failure to abide by its terms. 45. Your account will be governed by California law, to the extent that California law is not inconsistent with controlling federal law. However, California s choice of law rules shall not be applied if that would result in the application of non-california law. 46. NOTICE OF BINDING ARBITRATION AGREEMENT: We and you agree to attempt to informally settle any disputes affecting your Accounts that might arise under this Agreement and Disclosure. If that cannot be done, we and you agree that any dispute affecting your Accounts and arising out of or relating to this Agreement and Disclosure will be resolved by BINDING ARBITRATION administered by the American Arbitration Association in accordance with its Commercial Dispute Resolution Procedures and Supplementary Procedures for Consumer-Related Disputes. You thus GIVE UP YOUR RIGHT TO GO TO COURT to assert or defend your rights under this Agreement and Disclosure (EXCEPT for matters that may be taken to SMALL CLAIMS COURT). Your rights will be determined by a NEUTRAL ARBITRATOR and NOT a judge or jury. You are entitled to a FAIR HEARING, BUT the arbitration procedures are SIMPLER AND MORE LIMITED THAN RULES APPLICABLE IN COURT. Arbitrator decisions are as enforceable as any court order and are subject to VERY LIMITED REVIEW BY A COURT. The place of arbitration shall be Orange County, California. FOR MORE DETAILS, check the American Arbitration Association s website, OR call the American Arbitration Association s Customer Service telephone number at (800) Please note that any debt or loan obligation you may have with us is not subject to this arbitration agreement. 47. You acknowledge that if you give anyone access to your account (such as, for example, providing any person with your check card, ATM card, ATM or home banking PIN, or granting any person power to act as your agent under a power of attorney or trustee for a trust account), you understand that any transaction completed by such person shall be considered authorized by you. 48. In the event a returned deposit causes your Account balance to become negative, we may retain the item until the negative balance is resolved. 49. If you close your Regular Share Account within ninety (90) days of its opening, an Account Closure fee may be charged in accordance with our Fee Schedule. 50. FACSIMILE SIGNATURES/INSTRUCTIONS You agree to assume full responsibility for any and all payments made by us in reliance upon a facsimile signature(s) resembling a signature that has been provided to us by you. You agree to indemnify and hold us harmless from any and all losses, claims, damages, liability, costs, and expenses including, but not limited to, reasonable attorney fees arising directly or indirectly out of the misuse or the unlawful or unauthorized use of the facsimile signature(s) by any person. We are not required to act upon instructions received by facsimile transmission. 51. COLLECTION ITEMS Some items, such as items subject to processing delays (e.g., insurance drafts, returned substitute checks and foreign items), cannot be credited to your Account until we receive the funds. On such items, we will tell you this and give you an estimate of the time it will take to receive the funds. When funds are received, we will notify you and immediately credit your Account for that amount minus any service charge levied by a third party. Refer to our current Schedule of Fees and Charges. 52. All Accounts are verified through ChexSystems. We may refuse to open an Account based on information provided by them. 53. If you voluntarily give information about your Account (such as your routing number and your Account number) to a party who is seeking to sell you goods or services, and you don t physically deliver a check to the party, any debit to your Account initiated by the party to whom you give the information is deemed authorized. 54. LOST ITEMS FOR DEPOSIT OR ENCASHMENT We act only as your collection agent when receiving items for deposit or encashment. You should be aware that we reserve the right to reverse the credit for any deposited item or charge your Account for cashed items should they become lost while in the process of collection. If we do not reverse a credit, you agree to assist us in collecting the amount of any lost items by providing us with such information and other assistance as we request. We may charge your Account when a photocopy of a check you have written is presented to us for payment in place of a lost original, unless a stop payment order is in effect for the check. 55. ACCOUNT SERVICES FOR MINORS The Credit Union may, from time to time, elect to offer and/or provide minors with access to their Credit Union funds via checking Accounts and/or debit cards. In such cases, the Credit Union recognizes that minors cannot be legally bound by the wording in the related contractual Account agreements. An adult joint owner may be required and will be the responsible party for the Account. 56. TELEPHONE MONITORING To ensure you receive courteous and efficient service, you understand and agree that telephone conversations with the Credit Union are not confidential and may be randomly monitored by Credit Union personnel. You also understand, consent, and agree that your telephone conversations with Credit Union personnel may be recorded by the Credit Union. 57. TERMINATION/RESTRICTION ON ACCOUNTS Consistent with the Credit Union s bylaws, your Account or other relationship with us may be terminated by you or by us at any time and without previous notice. Closure of an Account will not affect your obligation to pay any outstanding balances or charges owed. We may terminate the Account by mailing you a notice (prior to or immediately after closing the Account) and/or a check for the Account balance. Thereafter, the funds will stop earning interest (even if the check is returned or remains un-cashed for any reason). Your Account(s) may also be terminated or closed by us at any time, without prior notification, if it has a zero balance, for a period greater than three months. The Credit Union also reserves the right to close your Account without prior notification if: (1) there has been a forgery or fraud reported or committed involving your Account; (2) there is a dispute as to the ownership of the funds in the Account; (3) your Account checks are lost or stolen; (4) there are excessive returned unpaid items; or, (5) there has been any misrepresentation, deliberate manipulation, or any abuse of your Account. Manipulation includes, but is not limited to, kiting and repeated patterns of transactions which have no apparent business reason other than to take advantage of Regulation CC hold periods and/or interest float to our detriment. We reserve the right to suspend or deny all services, close your Account, and, if appropriate, restrict your access to Credit Union premises if you fail to conduct your business with the Credit Union in a civil and business-like way. Violence, or threats of violence, against Credit Union staff, volunteers or other Members will not be tolerated. You may terminate any Account at any time by notifying us orally, by writing to us at the Credit Union, or by informing us in person at one of our branches, but such notice will not affect any prior transitions on any Account. The Credit Union is not responsible for payment of any check, withdrawal, or other item once any Account is terminated; however, if the Credit Union pays any items after termination, or if any Account is terminated due to overdraft, you agree to reimburse the Credit Union for any payment or overdraft. 8

11 The Credit Union may report information about your Loan Account to credit bureaus, late payments, missed payments, or other defaults on your loan Account may be reflected in your credit report. If you believe the Credit Union is reporting inaccurate information to a credit reporting agency, please notify us at Santa Ana Federal Credit Union, 800 W. Santa Ana Blvd., Santa Ana, CA 92701, so we can investigate. 58. Address change requests must be in writing and may require authorization from the Primary Account Owner. 59. You warrant and agree that you will not use Credit Union accounts or services, including but not limited to loans, to make or facilitate any illegal transactions as determined by applicable law, and that any such use, including any such authorized use, will constitute an event or default under this Agreement. You agree that the Credit Union will not have any liability, responsibility, or culpability whatsoever for any such use by you or any authorized users. You further agree to indemnify and hold the Credit Union harmless, from any lawsuits, liability, damages or adverse action of any kind that results directly or indirectly from such illegal use. 60. In the event that any portion of this Agreement is held by a court to be invalid or unenforceable for any reason, the remainder of this Agreement shall not be invalid or unenforceable and will continue in full force and effect. All headings are intended for reference only and are not to be construed as part of the Agreement. ADDITIONAL TERMS AND CONDITIONS APPLICABLE TO INDIVIDUAL AND JOINT ACCOUNTS 1. We may pay out funds or transact business pertaining to any account with the signature of any one of the account owners, or the signature of any designated agent(s), unless otherwise agreed in writing by the Credit Union. 2. If there is more than one owner, all agree with each other and with us that all sums now paid in on shares by any one or all Account owner(s) including all dividends thereon, if any, are and shall be owned by all Account owner(s) jointly and equally regardless of their net contributions with a right of survivorship and shall be subject to withdrawal or receipt by any of the Account owner(s) or the survivor(s) of any of the Account owner(s). Any such payment shall be valid and shall discharge the Credit Union from any liability. 3. We are not obligated to inquire as to the source of funds received for deposit to a joint Account or to inquire as to the proposed use of any sums withdrawn from the Account for the purpose of establishing net contributions. 4. No transfer of voting rights or other membership privileges is permitted by virtue of a transfer of shares. 5. You may pledge any or all of the shares on deposit in a Regular Share Account as collateral security to any loan(s) subject to then current loan policies. Further, a pledge of shares by any one of you will be binding on all of you. You may not withdraw funds that are pledged as security on loan(s) without the written approval of the credit committee or a loan officer, except to the extent that such funds exceed your total primary and contingent liability to us. You may not withdraw if you are delinquent as a borrower, or if borrowers for whom you are cosigner, endorser, or guarantor are delinquent, without the written approval of the credit committee or a loan officer. 6. You grant us consensual security interest in your accounts and have pledged funds on deposit in your accounts (except IRA) to satisfy debts that are due us. We reserve the right to exercise this pledge of shares for liabilities owed to us against any account held by you individually or jointly with any other person(s) to the fullest extent permitted by law. We reserve the right to exercise this pledge of shares for liabilities owed to us against any account held by you individually or jointly with any other person(s), without notice to the fullest extent permitted by law. Liabilities owed to us includes any fees, charges, loan balances, (including balances properly accelerated) or any other obligation of any kind owed by you hereunder, under any other agreement with us, or otherwise under applicable law. You acknowledge that this pledge of shares survives your death and must first be satisfied before the rights of any joint account survivor, payon-death beneficiary or trust account beneficiary become effective. 7. Joint ownership of an Account does not constitute Credit Union membership. Joint owners may be nonmembers. We shall recognize as joint owners, survivors and beneficiaries those parties appearing on the Membership application/signature card on file with the Credit Union bearing the most recent date. 8. A right of survivorship arising from the express terms of a joint Account cannot be changed by will. Right of Survivorship means that upon the death of an owner, the decedent s share of the account will be owned equally by all surviving owners. If no surviving owners, funds are distributed equally among the surviving beneficiaries, if any. If no, surviving owners or beneficiaries, funds in the account are subject to the probate laws of the State of California. 9. Being a joint owner of a member s Account does not constitute Credit Union membership for the joint owner. Joint owners are non-members. As a result, Credit Union Benefits may be limited. 10. The primary Member, acting alone, shall have the right to change the ownership structure of any account(s) by executing and dating a new Membership application/signature card. TERMS AND CONDITIONS APPLICABLE TO PAY-ON-DEATH (P.O.D.) DESIGNATION 1. If you have made a Pay-On-Death (P.O.D.) designation, all sums are payable on request to you during your lifetime and, upon your death, first to us to the extent of any outstanding matured or unmatured debts owed to us by you and second to your designated P.O.D. payee(s). If the account is jointly owned, to one or more account owner(s) during their lives and, on the death of all of them, first to us to the extent of any outstanding matured or unmatured debts owed to us by any of you and second to one or more payees then surviving in equal and individual shares. If a P.O.D. payee dies before all of the account owner(s), then, upon the death of all of the owner(s), all sums are divided equally among the surviving P.O.D. payees. 2. You may pledge any or all funds on deposit in the Account as collateral security to any loan(s) subject to then current loan policies. Further, a pledge of shares by any one of you shall be binding on all of you. 3. A Pay-On-Death Designation cannot be changed by will. TERMS AND CONDITIONS APPLICABLE TO ALL LIVING TRUST ACCOUNTS 1. If a Trust is a revocable trust, one or more trustor(s) must be member(s) of the Credit Union. If the Trust is an irrevocable trust, either the trustor or beneficiary must be members or, in the case of multiple trustors or beneficiaries, all the trustors or all of the beneficiaries must be members in the Credit Union. All accounts opened in the name of the Trust belong solely to the Trust. 2. Any subsequent accounts opened at the Credit Union using the same membership number as the trust will be opened in the name of the Trust and will be governed by this Agreement and the terms and conditions contained herein, unless otherwise specified. 3. If there is a change in the terms of the Trust affecting this Account, the Trustee(s) agree to execute a new Agreement for accounts in the name of the Trust and the change shall not be effective until the Credit Union has received the new Agreement and has had a reasonable opportunity to act on it. 4. Subject to paragraph 2 above, any Trustee may open additional accounts under this Agreement and membership number in the name of the Trust either in person or by telephone. The Credit Union is not required to obtain the consent of all Trustees or to notify all Trustees concerning the opening of additional accounts by any Trustee under this Agreement. 9

12 5. You may pledge any or all funds on deposit in the Account as collateral security to any loan(s) (excluding IRA Accounts) subject to then current loan policies. Further, a pledge of shares by any one of you shall be binding on all of you. 6. We are not required to know, understand, interpret, or enforce the terms of the Trust Instrument. THE CREDIT UNION HAS NOT RECEIVED A COPY OF THE TRUST INSTRUMENT AND SHALL IN NO EVENT BE LIABLE FOR KNOWLEDGE OF ITS CONTENTS. Trustee(s) and not the Credit Union assume full responsibility for enforcing the provisions of the Trust Instrument. 7. The trustee(s), on behalf of the trust, and with the trustor(s) named in the Trustee s Account Agreement and Certification of Trust (Signature Card) agree to conform to the Credit Union s bylaws, the terms and conditions of the Signature Card, as well as with the terms and conditions of this Agreement and Disclosure. 8. All accounts opened in the name of the trust belong solely to the trust. No transfer of voting rights or other membership privilege is permitted by virtue of a transfer of shares. Accounts are not transferable, as defined in 12 CFR Part 204. It is understood that the trust opened under the Signature Card has no voting rights at any membership meeting, although the individual member/trustor(s) retain their personal voting rights if they retain individual membership at the Credit Union. 9. In the event that all named trustee(s) and successor trustee(s) die, resign, become incapacitated, refuse to act, or the Credit Union receives conflicting instructions, the Credit Union reserves the right to freeze or interplead any and all funds held in accounts opened under the trust account Signature Card and to deduct its attorneys fees for any interpleader action from the trust account funds. 10. If there is a change in the parties or terms of the trust, including, but not limited to, a change in trustors or trustees, all trustor(s) and trustee(s) agree to execute a new Signature Card. Such change shall not be effective until the Credit Union has received a properly completed and executed Signature Card and has had a reasonable opportunity to act on it. In the event of a change of address of trustors/trustees, the trustee(s) agree to notify the Credit Union promptly of such change(s). 11. The trustee(s) certify that they are duly appointed under the Trust Instrument. It is agreed that any transaction by the trustee(s) acting in accordance with the Signature Card and this Agreement and Disclosure shall be valid and discharge the Credit Union from any liability. 12. Trustee(s) may authorize the transaction of any business on accounts held at the Credit Union in the name of the trust by their verbal or written instruction to the Credit Union. Trustee(s) may obtain funds from the trust s accounts in their names or the names of third parties upon trustee s(s ) verbal or written instruction. 13. Trustee(s) certify that the Trust Instrument provides that the trustee(s) may receive, take possession of, release, assign, mortgage, pledge, hypothecate, or otherwise use assets of the trust as security for a loan from the Credit Union or any other purpose. 14. If the trustee(s) named on the Signature Card borrow from the Credit Union and the Trust Instrument must be examined by a third party (for example, a title company), the Credit Union agrees to forward a copy of the Trust Instrument from the trustee(s) to the third party only if trustee(s) present a sealed envelope containing the Trust Instrument to the Credit Union. The Credit Union will not accept copies of the Trust Instrument that are not in a sealed envelope. Further, the Credit Union will not keep any Trust Instrument in its files or be liable for the contents of a Trust Instrument. The trustee(s) shall sign on a form designated by the Credit Union that the Credit Union has received the Trust Instrument in a sealed envelope when the trustee(s) present(s) the Trust Instrument to the Credit Union. 15. Trustee(s) agree that if they borrow from the Credit Union and use trust assets as collateral, then the trustor(s) or the trustee(s), as members of the Credit Union, will, by signing all documents relating to the loan, obligate themselves as individuals in addition to the signatures of the trustee(s) on behalf of the trust. 16. Trustee(s) agree to promptly notify the Credit Union if any of the trustor(s) or trustee(s) die or become incapacitated. Prior to any successor trustee(s) transacting business on accounts held at the Credit Union in the name of the trust (including any withdrawal), the successor trustee(s) must provide the Credit Union with either a notarized letter of resignation signed by the existing trustee(s), a certified copy of the death certificate for the trustee(s), or any physician(s) letter(s) (or judicial declaration(s)) regarding the trustee s(s ) incompetency. The successor trustee(s) must complete a new Signature Card as well as a Certification of Trust. Death, resignation, or incapacity of any trustee or trustor shall not revoke the authority of the Credit Union to act under the Signature Card until written notice of the death, resignation, or incapacity has been presented to the Credit Union and the Credit Union has reasonable opportunity to act on it. However, upon presentation of a certified copy of trustee s(s ) death certificate(s), notarized resignation letter, or physician(s) letter(s) (or judicial declaration(s)) regarding the trustee s(s ) incompetency, the Credit Union is authorized to act upon designated successor trustee(s) instructions in accordance with the terms of the Signature Card. 17. Successor trustee(s) shall close all accounts opened under trust account Signature Card within 90 days after receiving notification of death, resignation, or incapacity of the trustee(s). The Credit Union is authorized, but not required, to close any accounts opened under the Signature Card upon the 9lst day after receiving notice of the trustee s(s ) death(s), and mail a check to the designated successor trustee(s), for the balance of the account and made payable to the designated successor trustee(s) as trustee(s) for the above-named trust. The parties may be able to maintain the trust accounts at the Credit Union under a new Signature Card. See a Credit Union account representative for eligibility. 18. Trustor(s) and trustee(s) acknowledge and agree that the Credit Union s sole obligation to the trustor(s)/trustee(s) is as a depository institution and is a debtor/ creditor relationship and nothing in the Signature Card or in the Trust Instrument shall be construed to impose any duties or obligations whatsoever upon the Credit Union as a trustee or other fiduciary under the Trust Instrument or otherwise. 19. The trustor(s) and trustee(s) hereby agree for the trust, themselves, and all trust beneficiaries to indemnify and hold harmless the Credit Union from any and all claims, suits, actions, damages, judgments, costs, charges, and expenses, including, but not limited to, court costs and attorneys fees, resulting from any and all liability, loss, or damage of any nature whatsoever that the Credit Union shall or may sustain resulting from the establishment, maintenance, or transaction of any business on any trust account at the Credit Union. The trustor(s) and trustee(s), on behalf of the trust, agree to pay any necessary expenses, attorneys fees, or costs incurred by the Credit Union in the enforcement of the Signature Card and/or this Agreement and Disclosure. 20. Trustor(s) and trustee(s) acknowledge and agree that the Credit Union is relying upon the statements, representations, and warranties made by the trustor(s) and trustee(s) contained in the Signature Card, and that the Credit Union shall not be responsible in any way for verifying either the existence, validity, or legality of the trust itself or the authority or powers of the trustee(s) under the governing Trust Instrument to establish, maintain, or transact any business on the trust accounts. The Credit Union reserves the right, at any time, to require the trustee(s) to execute and provide a Certification of Trust pursuant to California Probate Code Section , in form and substance acceptable to the Credit Union, affirming the existence of the trust and the authority and powers of the trustee(s) thereunder. 21. The Signature Card and this Agreement and Disclosure incorporates the full and complete understanding concerning the accounts, and the transaction of business thereon, at the Credit Union for the trust. 22. Living trust accounts are not subject to the Multiple Party Accounts Law. 23. A right of survivorship or a beneficiary designation in a Trust Account cannot be changed by will. TERMS AND CONDITIONS APPLICABLE TO UNIFORM TRANSFERS TO MINORS ACT ACCOUNTS 1. The transferor/custodian is opening an account as custodian for the minor named on the Account Signature Card under the Uniform Transfers to Minors Act. The transfer of money to the minor named on the Account Signature Card, which transfer shall be deemed to include all dividends and any future deposits or other additions thereto, is irrevocable and is made in accordance with and to include all provisions of the said statute of the State of California now in effect or hereinafter amended. 10

13 2. You acknowledge that by signing the Account Signature Card, you have received the funds deposited to the account as custodian for the minor named therein under the Uniform Transfers to Minors Act and you agree to the applicable terms and conditions set forth in this Agreement and Disclosure as well as the terms and conditions of the Account Signature Card. 3. The successor custodian named on the Account Signature Card shall serve if you should be unable to act as custodian because you resign, die, or become legally incapacitated. 4. You may not pledge any or all of the funds on deposit in the account as security for any loan(s). 5. Custodial accounts are not subject to the Multiple Party Accounts Law. TERMS AND CONDITIONS APPLICABLE TO ALL FIDUCIARY ACCOUNTS 1. You are duly appointed and acting in the capacity of Executor/ Executrix, Administrator/Administrate, Guardian or Conservator. By the authority vested in you, you are acting individually or jointly, authorized and empowered to transact business of any character in connection with this Account. Your authority shall continue in force until written notice to the contrary is received by us. 2. You may pledge any or all shares on deposit in the Account as collateral security to any loan(s) subject to then current loan policies. Further, a pledge of shares by any one fiduciary shall be binding on all fiduciaries. 3. If a Checking Account is opened with us, you agree that the Account shall be governed by the terms of this Disclosure and Agreement as well as the terms of the Membership Application/Signature Card. 4. If the Account is blocked, you understand that you shall file with the court a written document including the agreement with the Credit Union that the money in the Account, including any earnings thereon, shall not be withdrawn except upon court order. TERMS AND CONDITIONS APPLICABLE TO ALL SOLE PROPRIETORSHIP ACCOUNTS 1. You affirm that you are the sole proprietor of the sole proprietorship named on the Signature Card. We may pay out funds with your signature. We may accept and/or endorse checks made payable to you or the sole proprietorship named on the Signature Card which we receive for deposit. 2. You may pledge any or all funds on deposit in the Account as collateral security to any loan(s) subject to then current loan policies. 3. If a Checking Account is opened with us, you agree that the Account shall be governed by the terms of this Disclosure and Agreement as well as the terms of the Membership Application/Signature Card. 4. Sole proprietorship accounts are not subject to the Multiple Party Accounts Law. TERMS AND CONDITIONS APPLICABLE TO CORPORATE, PARTNERSHIP AND UNINCORPORATED ASSOCIATION (CLUB) ACCOUNTS 1. The person(s) named on the Membership Application/Signature Card are duly authorized to make the certification to certify that, at a regularly held meeting, the person(s) named were elected or appointed officers of said corporation or organization or are duly acting partners of said partnership, and that by virtue of the authority vested in you by the constitution, bylaws or otherwise, any one (1) of the signatories, as named on the Membership Application/Signature Card, is authorized and empowered to transact business of any character whatsoever in connection with the Account. You certify that signature(s) appearing on the Membership Application/Signature Card are the genuine signature(s) of said authorized person(s); and that your authority shall continue in force until written notice to the contrary is received by us. 2. You may pledge any or all funds on deposit in the Account as collateral security to any loan(s) subject to then current loan policies. Further, a pledge of shares by any one of you shall be binding on all of you. 3. If a Checking Account is opened with us, you agree that the Account shall be governed by the terms of this Agreement as well as the terms of the Membership Application/Signature Card. 4.. To be eligible to join the Credit Union, a corporation, partnership, or unincorporated association must be located within Santa Ana, California or an approved SEG. 5.. Corporate, partnership, and unincorporated association accounts are not subject to the Multiple Party Accounts Law. COURTESY PAY PROGRAM AGREEMENT In this Courtesy Pay Program Agreement ( Courtesy Pay Agreement ), the word overdraft includes a negative balance in your Checking Account that may occur for various reasons, including, but not limited to: (1) the payment of checks, electronic transfers, telephone-initiated transfers, preauthorized payments under our Bill Pay Service, or other withdrawal requests authorized by me including, but not limited to, Visa Debit Card transactions, ACH transactions, and other preauthorized transfers, for which funds are insufficient; (2) the return (unpaid) of items deposited by you; (3) the imposition of service charges by us; or (4) the deposit of items which are treated as not yet available according to our Funds Availability Policy. The Courtesy Pay Service shall not be applied to ATM transactions or one-time debit card (point of sale) transactions, unless you opt-in to our Courtesy Pay Plus program. Pursuant to our commitment to provide valued service and benefits, we may pay your overdrafts that would cause your eligible checking account ( Checking Account ) to have a negative (or further negative) balance, pursuant to the terms and conditions of this Courtesy Pay Agreement. The Courtesy Pay Service is not a credit product and requires no application or credit approval process. The Service will only be applied to your Checking Account if: 1. You have been a member of the Credit Union for at least 6 months; and 2. You maintain direct deposit of at least $500 per month into your checking account with us. 3. You have no legal orders outstanding on your accounts; 4. You do not have any loans with us that are more than fifteen (15) days past due; 5. Your accounts do not have a derogatory history; 6. No negative history on ChexSystems; 7. Your accounts do not have questionable transactions (as determined by us in our sole discretion); 8. You do not use payday lending services. ANY COURTESY PAY SERVICE PAYMENT WILL BE MADE ON A CASE-BYCASE BASIS, IN OUR SOLE AND ABSOLUTE DISCRETION. We will not pay more than $1,000 in checks or other items/transactions through the Courtesy Pay Service during any given month. You understand that we have no obligation to notify you before we pay or return any check, item, or other transaction. We may refuse to pay any overdrafts without first notifying you even though your account is in good standing and even if we have paid previous overdrafts. The total of the overdraft (negative) balance in your Checking Account, including any and all permitted fees and charges, is due and payable upon demand, and you are required to immediately deposit with us sufficient funds to cover the overdraft paid by us and pay any permissible fees. You understand that checks presented for payment on the same day will be paid in chronological order; other items presented for payment are paid in order from smallest to largest. This means that items 11

14 may not be processed in the order in which they occurred. You understand that the order in which items are processed can affect the total amount of fees that may be assessed against your Checking Account. A Courtesy Pay Service Fee as set forth in our Fee Schedule will be charged to your Checking Account for each overdraft that is cleared on your Checking Account through the Courtesy Pay Service, except that the Credit Union will not cover overdrafts and no Courtesy Pay Fee will be charged due to ATM transactions or onetime debit card (point of sale) transactions using the Courtesy Pay Service unless you opt-in to have your ATM and one-time debt card (point of sale) overdrafts paid through this Service. More than one Courtesy Pay Service Fee may be assessed against your Checking Account per day depending upon the number of overdrafts paid through the Courtesy Pay Service. You understand that your Courtesy Pay Limit shall be reduced by the amount of each overdraft paid by us through the Courtesy Pay Service and the amount of the related Courtesy Pay Service Fee imposed until such amounts are repaid by you as set forth herein at which time we may replenish your Courtesy Pay Limit by the amount of the repayment. If we choose not to pay the overdrawn check or other item/transaction under the Courtesy Pay Service, you may still be subject to an NSF Fee of as set forth in our Fee Schedule for each such item as permissible by applicable law. You also agree that we have the right to transfer available funds from your other accounts you may have with us to cover the overdraft and pay permissible fees. You understand and agree that we may transfer funds to your Checking Account from any of your other account(s) with us (excluding IRA accounts), including account(s) upon which you are a joint owner, in an amount equal to the overdraft which we may pay according to the terms and conditions of this Courtesy Pay Agreement and to pay the permissible fees. In addition to any other rights that we may have, you agree that any deposits or future deposits in or other credits to any account in which you may now or in the future may have an interest are subject to our right of off-set for any liabilities, obligations, or other amounts owed to us by you (e.g., overdrafts and any related fees and charges) and such is applicable irrespective of any contribution to the account or source of funds in the account. Moreover, unless you opt-out of the Courtesy Pay Service (see below), you consent and expressly agree that the application of an off-set of funds in any account includes the off-set of government benefits (such as Social Security and other public benefit funds) deposited to the account from which the overdraft or related fees are paid. Each person who causes an overdraft, which is paid by us, is a maker and agrees to be individually and jointly obligated to repay the unpaid negative balance in accordance with the terms and conditions of this Courtesy Pay Agreement. We reserve the right to limit Courtesy Pay Service to one (1) account per household or member without notice of reason or cause. You will be in default under the terms of this Courtesy Pay Agreement if you fail to live up to any of the terms and conditions of this Courtesy Pay Agreement or you are in default on any loan obligation with us and/or a negative balance exists in any other deposit account with us on which you are an owner. If you are in default, in addition to any other rights we may have, we may temporarily suspend overdraft privileges or terminate the Courtesy Pay Service or close your Checking Account and demand immediate payment of the entire unpaid negative balance. You also agree to pay any collection costs, attorneys fees, and court costs which we or you shall or may incur as a result of your default. We may terminate or suspend the Courtesy Pay Service at any time without prior notice. In no event shall any termination relieve you of your obligation to repay such sums already overdrafted, overdraft fees, collection costs, and attorneys fees, if any. We can delay enforcing any of our rights under this Courtesy Pay Agreement without losing them. If you prefer not to have the Courtesy Pay Service, please send a written request for removal to Santa Ana Federal Credit Union, 800 W. Santa Ana Blvd., Santa Ana, CA 92701, or call us at (714) Monday through Thursday, 8:00.a.m. to 5:00 p.m. PST, or Friday 8:00 a.m. to 6:00 p.m. PST, and we will remove the Courtesy Pay Service from your Checking Account. LIMITATION OF SERVICES POLICY Santa Ana Federal Credit Union is committed to treating its employees, volunteers, and members with respect and to maintaining a workplace free from abusive conduct. Accordingly, the Credit Union has adopted the following Limitation of Services Policy to address standards of member conduct and to protect its employees, volunteers, and members from abuse, harassment, and intimidation. In the event that any member or non-member engages in any type of abusive conduct towards the Credit Union or a Credit Union employee, volunteer, or member, the CEO (or his/her designee) is authorized to apply appropriate remedial measures, in his/her sole discretion, against such individual. Any such remedial measure taken in response to abusive conduct shall be reported to the Board of Directors as the next regularly-scheduled meeting of the Board. The remedial measures that may be imposed under this Policy shall comply with applicable law and may include the following: 1. Denial of services other than the right to maintain a share account and the right to vote at annual member meetings and special member meetings; 2. Preclusion from personal contacts with Credit Union employees or volunteers such that Credit Union services may be provided only by remote means and that communications may be limited to communication through the mail only; 3. Preclusion from access to Credit Union premises; and 4. Taking any other action deemed appropriate under the circumstances that does not violate state or federal law. Threats of bodily harm, actual bodily harm, or any other illegal activity against any Credit Union employee, volunteer, or member will be reported to appropriate local or federal authorities. The Credit Union reserves the right to seek a restraining order against any individual who violates this Policy as permissible under applicable law. For the purposes of this Policy, abusive conduct shall include, but shall not be limited to, any of the following conduct: 1. Any threats of or actual bodily harm or illegal activity against another member or a Credit Union employee or volunteer; 2. Any form of action that may constitute harassment. For example: a. Any type of harassment, including age, sexual, ethnic, or racial harassment; making racial or ethnic slurs; engaging in sexual conduct; making sexual overtures; b. Inappropriate or unwanted touching; c. Making sexual flirtations, advances, or propositions; engaging in verbal abuse of a sexual, racial, or ethnic nature; making graphic or degrading comments about an individual or his or her appearance; d. Displaying sexually suggestive objects or pictures. 3. Fighting, kicking, or other physical harm or attempted harm towards a Credit Union member, employee, or volunteer; 4. Making false, vicious, or malicious statements about the Credit Union or its services, operations, policies, practices, or management, or any Credit Union employee, volunteer, or member; 5. Cursing or using other abusive, intimidating, profane, or vulgar language while on Credit Union premises or directed towards any Credit Union employee, volunteer, or member; 6. Bringing or possessing firearms or weapons of any type on Credit Union premises; 7. Possession, sale, or use of or being under the influence of an unlawful or unauthorized substance while on Credit Union premises; 12

15 8. Attempting to coerce or interfere with a Credit Union employee or volunteer in the performance of his/her duties at any time; 9. Engaging in immoral or uncivil conduct or failure to maintain business-like relationships with Credit Union employees and volunteers and other Credit Union members; 10. Conducting or attempting to conduct any fraudulent, dishonest, or deceptive activity of any kind involving the Credit Union; 11. Engaging in any activity that causes a monetary loss to the Credit Union; 12. Any posting, defacing, or removing or any notices or signs on Credit Union premises; 13. Appropriation or misappropriation of Credit Union or member funds or property; or 14. Any other act that endangers the safety, health, or well being of any Credit Union employee, volunteer, or member or engaging in any other conduct that causes a disruption of business at the Credit Union. DISCLOSURE OF FUNDS AVAILABILITY POLICY Our policy is to generally make funds from your deposits available to you on the same business day as the day we receive your deposit. At that time, you can withdraw the funds in cash and, in the case of Share Draft Checking accounts, we will use the funds to pay checks that you have written. Please note that even after we have made funds available to you and you have withdrawn the funds, you are still responsible for checks you deposit or cash that are returned to us unpaid and for any other problems involving the items you deposit or cash. For determining the availability of your deposits, every day is a business day, except Saturday, Sunday and federal holidays. If you make a deposit at one of our 24-Hour ATMs or our After Hours Depository after 7:45 a.m. or make any deposit on a Saturday or on a day we are not open, we will consider that the deposit was made on the next business day we are open. Deposits made at ATMs that we do not own or operate will generally be available on the fifth business day after we receive the deposit. All ATMs we own or operate are identified as our machines. We will consider that deposits by mail are made on the day we receive them. This policy does not apply to deposits made through mobile banking or remote deposit capture. For our policy concerning hold periods on checks deposited via mobile banking or remote deposit capture. See our IT Policy 9.0 Remote Deposit Capture for our delayed funds availability policy on these checks. Longer delays may apply: In some cases, we will not make all of the funds that you deposit by check available to you on the same business day as the day of your deposit. Depending on the type of check that you deposit, funds may not be available until the second business day after the day of your deposit. However, the first $200 of your deposits will be available on the same business day. If we are not going to make all of the funds from your deposit available on the same business day, we will notify you at the time you make your deposit. We will also tell you when the funds will be available. If your deposit is not made directly to one of our employees, or if we decide to take this action after you have left the premises, we will mail you notice by the day after we receive your deposit. If you need the funds from a deposit right away, please ask us when funds will be available. In addition, funds you deposit by check may be delayed for a longer period than noted above under the following circumstances: a. We believe a check you deposit will not be paid b. You deposit checks totaling more than $5,000 on any one day c. You have overdrawn your account repeatedly in the last six months d. You redeposit a check that has been returned unpaid e. There is an emergency, such as a failure of communications or computer equipment We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available not later than the seventh business day after the day of your deposit. SPECIAL RULES FOR NEW ACCOUNTS: If you are a new Member, the following special rules will apply during the first 30 days your account is open: Funds from deposits of cash or from electronic or wire transfers into your account will be available on the same business day as the day we receive the deposit. The first $5,000 of a day s total deposits of U.S. Treasury, cashier s, certified, teller s, traveler s, and federal, state and local government checks will be available on the same business day as the day of your deposit if the checks are made payable directly to you. The excess over $5,000 will be available no later than the ninth business day after the day of your deposit. If your deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, the first $5,000 will not be available until the second business day after the day of your deposit. Funds from all other check deposits will be available no later than the eleventh business day after the day of your deposit. HOLDS ON OTHER FUNDS: If we accept for deposit a check that is drawn on from another bank, we may make funds from the deposit available for withdrawal from the account of deposit immediately, but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available for withdrawal until the time periods that are described elsewhere in this disclosure for the type of check that you deposited. If we cash a check for you that is drawn on another bank, we may withhold the availability of a corresponding amount of funds that are already in your account. Those funds will be available at the time funds from the check we cashed would have been available if you had deposited it. EFFECT OF A HOLD: Even if we do not make all the funds from a deposit available the same business day, the amount of the deposit is credited and begins to earn dividends immediately. COLLECTION ITEMS: Some items, such as items subject to processing delays (e.g., insurance drafts and foreign items), cannot be credited to your account until we receive the funds. On such items, we will tell you this and give you an estimate of the time it will take to receive the funds. When funds are received, we will notify you and immediately credit your account for that amount minus any service charge levied by a third party. SPECIAL NOTICE REGARDING ENDORSEMENT STANDARDS: The federal law dealing with funds availability requires the financial institution s endorsement area on the back of a check be kept clear or unobstructed. This rule is designed to prevent unnecessary delays in processing your deposits as well as to promote speedier returns of dishonored checks. Only the 1-1/2 inch space from the trailing edge (the left edge of the check when it is facing you) can be used by you for endorsements or any other markings. We will not be responsible for any damages incurred in the event you deposit an item which is subsequently returned unpaid by the paying bank and that return is late due to markings on the check caused by you or a prior endorser on the back of the check. In the event that you draw a check on your checking or loan account with us, you are responsible for any delay or misrouting of the check caused by markings placed on the check by you that obscure any depository endorsements placed by us or our agent and you agree to hold us harmless and indemnify us from any liability due to such delay or misrouting. 13

16 How to Reach Us Website Branch Hours Fridays Telephone Service Center Fridays Mondays to Thursdays 8 a.m. to 4 p.m. 8 a.m. to 6 p.m. Mondays to Thursdays 8 a.m. to 5 p.m. 8 a.m. to 6 p.m. SAFCU by Phone (714) or (800) or (855) Mailing Address 800 W. Santa Ana Blvd. Santa Ana, CA Address: safcu@safcu.org Visit our website for a complete listing of SAFCU and CO-OP Network ATMs. FORM 220W REV. 7/ WEST SANTA ANA BLVD SANTA ANA, CA 92701