Membership & Account Agreement and Disclosures (Effective 7/6/2015)

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1 obtain information concerning any accounts with other institutions and your credit history, including consumer credit reports. You agree that this authority applies to any account, account-related service, loans or other financial products you request or which we may offer or make available to you. SINGLE PARTY ACCOUNT Membership & Account Agreement and Disclosures (Effective 7/6/2015) Membership & Account Agreement Page 1 Funds Availability Policy.Page 8 Truth-In-Savings Disclosure..Page 10 Electronic Fund Transfer Agreement..Page 11 MEMBERSHIP & ACCOUNT AGREEMENT This Agreement covers you, your rights and your responsibilities concerning accounts offered by Indiana University Credit Union. In this Agreement, the words you and yours mean anyone who signs an Account Card. Reference to Account Card includes Membership Card, Business Membership Card, Indirect Membership Card, Card, Account Change Card, Member Account Agreement, and Business Account Resolution. The words IU Credit Union, Credit Union, we, us, and our mean Indiana University Credit Union. The word account means any share or other account(s) you have established with us. The classification and form of ownership of your accounts are set forth on your Account Card. By signing an Account Card, each of you, jointly and severally, agrees to the terms and conditions in the Membership & Account Agreement, the Funds Availability Policy, Truth-in-Savings Disclosure, Electronic Fund Transfer Agreement, Rate and Fee Schedule, and our Bylaws, as these may be amended from time to time, which collectively govern your membership and accounts. 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. You may be asked several questions and to provide one or more forms of identification to fulfill this requirement. In some instances, we may use outside sources to confirm the information. All verification procedures will comply with our Privacy Notice that protects the information you provide. MEMBERSHIP ELIGIBILITY AND ADDITIONAL SERVICES To join the Credit Union, you must be an individual or entity qualifying within the Credit Union s field of membership and must purchase and maintain at least one share (the Membership Share Account) as required by the Credit Union s Bylaws. To verify your eligibility or continued eligibility for membership, any account(s), service(s), or loan products, increases or decreases in services and/or credit limits, now and in the future, or as needed to comply with any applicable law, regulation or governmental agency requirements, you authorize us to make inquiry to determine your employment history and to A single party account is an account owned by one (1) member (individual, corporation, partnership, trust or other organization) qualified for Credit Union membership. With regard to individual consumer account ownership, upon the death of the account owner, the interest passes, subject to applicable law, to the decedent s estate or Payable on Death (POD) beneficiary/payee or trust beneficiary. This is subject to other provisions of this Agreement governing our protection for honoring transaction requests of an owner or owner s agent prior to notice of an owner s death and to any security interest or pledge granted by the account owner and subject to our statutory lien rights. JOINT ACCOUNT RIGHTS OF SURVIVORSHIP An account owned by two (2) or more parties is a jointly owned account. a) Rights of Survivorship. A joint account includes rights of survivorship. This means when one owner dies, all sums in the account will pass to the surviving owner(s). A surviving owner s interest is subject to the Credit Union s statutory lien for the deceased owner s obligations, and to any security interest or pledge granted by a deceased owner, even if a surviving owner did not consent to it. b) Control of Jointly Owned Accounts. Any joint owner is authorized or deemed to act for the other owner(s) and the Credit Union may accept orders and instructions regarding the account, requests for future services and any transaction from any account owner. Each owner guarantees the signature of the other owner(s). Any account owner may withdraw all funds in the account, stop payment on items drawn on the account, transfer, or pledge to the Credit Union all or any part of the deposits of any account without the consent of the other account owner(s), and the Credit Union shall have no duty in such event to notify any other account owner(s). The Credit Union reserves the right at any time to require written consent of all account owners for a change of ownership, termination of an account or require that all owners agree in writing to any transaction concerning the account. c) Joint Owner Accounts and Owner Liability. If a deposited item in a jointly owned account is returned unpaid, an account is overdrawn, or if we do not receive final payment on any transaction, each account owner is jointly and severally liable for the amount of the returned item, overdraft, or unpaid amount and any charges or fees, regardless of who initiated or benefited from the transaction. If any account owner is indebted to us, we may enforce our rights against any account owner or all funds in the jointly owned account regardless of who contributed them. PAYABLE ON DEATH (POD)/TRUST ACCOUNT DESIGNATION A POD or trust account designation is an instruction to the Credit Union that an account so designated is payable to the owner or owners during their lifetimes, and upon the death of the last account owner, payable to any surviving POD beneficiary named on the Account Card. A trust account designation means the trustee holds the account for the benefit of the named beneficiary. The Credit Union may require a separate trust agreement. Accounts payable to more than one surviving beneficiary are owned jointly by such beneficiaries without rights of survivorship. At no time shall the Credit Union be obligated to notify any beneficiary of the existence of any account, except as otherwise provided by law. Individual Retirement Accounts (IRAs) shall be governed by a separate beneficiary designation. ACCOUNT FOR MINORS The Credit Union reserves the right to require any minor account to be a joint account with an owner who has reached the age of majority under state law, who shall be jointly and severally liable to the Credit Union for any returned item, overdraft or unpaid charges and fees on the account. The Credit Union may make payments of funds directly to the minor without regard to his or her minority. Unless a parent or guardian is an account owner with the minor, the parent or guardian shall not have any access rights to the account. The Credit Union has no duty to inquire as to use or purpose of any

2 transaction by the minor or any account owner. We may require written authorization from all account owners to change the account status once the minor reaches the age of majority. UNIFORM TRANSFER TO MINOR ACCOUNT A Uniform Transfer to Minor Account (UTMA) is an individual account established by a member, as a custodian, by depositing funds as an irrevocable gift to a minor. The minor to whom the gift is made is the owner and beneficiary of the account. The custodian has possession and control of the account for the exclusive right and benefit of the minor and, barring a court order otherwise, is the only party entitled to transact on the account. The Credit Union has no duty to inquire as to the use or purpose of any transaction by the custodian. The account may not be used as collateral for a loan to the custodian or minor. All transactions made by the custodian are specifically governed by the Indiana Uniform Transfers to Minors Act and the custodian will be held responsible for all funds in the account under that Law. In the event of the custodian s death, the Credit Union may place a hold on the account until instructions are received from any person authorized by law to withdraw funds or a court order authorizing such withdrawal. AGENCY DESIGNATION/SPECIAL ACCOUNT INSTRUCTIONS An agency designation is an instruction to the Credit Union that the account owner has authorized another person to make transactions as agent for the account owner. An agent has no ownership interest in the account and does not have Credit Union member voting rights. The Credit Union has no duty to inquire as to the use or purpose of any transaction by the agent. The Credit Union has the right to review and approve any form of power of attorney and may restrict any withdrawals or transfers on your accounts. You may request the Credit Union to facilitate certain trust, will, or court-ordered account arrangements. However, because the Credit Union does not give legal advice, we cannot counsel you as to which account arrangement most appropriately meets the specific requirement of your trust, will, or court order. If you ask the Credit Union to follow any instructions that the Credit Union believes might expose it to claims, lawsuits, expenses, liabilities, or damages, whether directly or indirectly, the Credit Union may refuse to follow your instructions or may require you to indemnify the Credit Union or post a bond or other protection. BUSINESS/ORGANIZATION/ASSOCIATION ACCOUNTS Accounts held in the name of a business, organization, or association are subject to all of the conditions contained in the Membership & Account Agreement, the Business Account Rate and Fee Schedule, and the Funds Availability Policy as they may apply. As a condition of account opening, the Credit Union reserves the right to request and receive appropriate documentary evidence satisfactory to the Credit Union to affirm the existence and status of the business entity, organization or association. No Payable on Death (POD) beneficiary designation or other designation shall apply to the account. We may require the governing body of the legal entity opening the account to give us a separate authorization telling us who is authorized to act on its behalf. We will honor the most recent written authorization until we receive written notice of a change from the governing body of the legal entity. Each account owner shall have equal access to the account; authorized signers will have equal access to the account, but will not be allowed to establish certain products on an existing account and will not have authority to establish a new account under the name of the legal entity. We have no duty or agreement to monitor or ensure that the acts of the authorized signers are for your benefit and you agree that the Credit Union may honor and charge against your account any items signed (electronically or otherwise), accepted, endorsed or authorized by an authorized signer without inquiry as to the circumstances of issue or use of the proceeds and regardless of to whom such items are payable or endorsed. You understand that the terms of this agreement apply to any owner or authorized signer and you agree that you are responsible for any transactions involving your account. We may accept for deposit any item payable to you or your order, even if they are not endorsed by you. We may give cash back to any owner or authorized signer. We may supply any missing endorsement(s) for any item we accept for deposit or collection, and you warrant that all endorsements are genuine. The Credit Union may not accept accounts which require the signature of more than one signer to authorize a withdrawal, or other special instructions. Earnings in the form of dividends or credits will be paid only on collected funds, unless otherwise provided by law or our policy. a) Facsimile Signatures. If you use a stamp or other device to imprint a facsimile of your signature on your checks, withdrawal slip or other form, you are responsible for the use of the stamp or other device. You agree that we may pay any check or other payment order bearing your facsimile signature regardless of who placed the signature on the check or payment order. b) Death, Incompetence or Cease of Business. You shall notify us promptly if any person with a right to withdraw funds on your account dies or becomes legally incompetent. We may continue to honor the instructions from any person authorized to withdraw funds from the account until we (1) know of the death or incompetence of such a person and (2) have had a reasonable opportunity to act on that knowledge. If your Business is a soleproprietorship, we may pay or certify checks drawn on or before the date of death or legal incompetence for up to 10 days after the date of death or incompetence declaration. You shall also promptly notify us if the business, organization or association merges into another entity, dissolves or ceases operations for any reason. c) Statement Review. You agree to examine your statement promptly after you receive it or we make it available to you. Unless we hear otherwise from you within thirty-three (33) calendar days from the date we mailed the statement or made it available to you, we will deem the statement and all transactions reflected therein, including the payment of any check or the amount of any deposit, to be accurate and proper. DEPOSIT OF FUNDS REQUIREMENTS Funds may be deposited into any account, in any manner approved by the Credit Union (see Note below regarding Mobile Deposit Service), in accordance with the requirements set forth in the Credit Union s Funds Availability Policy and Rate and Fee Schedule. Refusal of any item will be at the Credit Union s discretion. a) Endorsements. You authorize the Credit Union, at its discretion, to accept transfers, checks, drafts, and other items for deposit into any of your accounts, whether or not all payees endorse them. When you deposit items to your account, you warrant that all prior endorsements are genuine. The Credit Union reserves the right to verify all endorsements on third party checks presented for deposit either in person or by comparison with member signature files. If an insurance, government, and certain other checks or drafts require an endorsement as set forth on the back of the check, the Credit Union may require endorsement as set forth on the check. Endorsements must be placed in the space on the back of the check between the top edge/trailing edge and 1.5 inches from the top edge. The Credit Union may accept drafts or checks with endorsements outside this space. However, if any such endorsement or other markings you or any prior endorser make on the check causes any delay or error in processing the item for payment, you will be responsible for any loss incurred by the Credit Union due to the delay or error. b) Collection of Items and Foreign Transactions. We act only as your agent and we are not responsible for handling items for deposit or collection beyond the exercise of ordinary care. Deposits made by mail or at un-staffed facilities are not our responsibility until we receive them. We are not liable for the negligence of any correspondent or for loss in transit, and each correspondent will only be liable for its own negligence. We may send any item for collection and impose a minimum check amount on any item sent for collection. You waive any notice of nonpayment, dishonor, or protest regarding items we purchase or receive for credit or collection to your account. Items drawn on an institution located outside the United States are handled on a collection basis only. Transactions made in foreign countries and foreign currencies will be converted to United States dollars prior to posting to your account. Actual credit for deposits of, or payable in, foreign currency will be at the exchange rate in effect on final collection in United States dollars. You agree to any fees or adjustments related to the processing or settlement of these transactions as stated in the Rate and Fee Schedule, statement, or transaction receipt. 2

3 c) Restrictive Legends. We are not required to honor any restrictive legend on items you write unless we have agreed to the restriction in writing. Examples of restrictive legends are "must be presented within 90 days" or "two signatures required." d) Final Payment. All items or Automated Clearing House (ACH) transfers credited to your account are provisional until we receive final payment. If final payment is not received, we reserve the right to charge your account for the amount of such item and impose a return item fee to your account. We reserve the right to refuse or return any item or funds transfer. Receivers of ACH credits should be aware that the Credit Union might, from time to time, need to temporarily suspend processing of a transaction for greater scrutiny or verification in accordance with the laws and regulations of the Office of Foreign Assets Control. This action may affect settlement or availability of the transaction. e) Payroll Deduction/Direct Deposit. Through payroll deduction or direct deposit, you authorize the deposit of designated portions of your pay or your entire net pay to go directly from your employer or payer into your Credit Union accounts. You must authorize any payroll deduction or direct deposit to your accounts by a separate authorization form. Upon a filing of a bankruptcy, if you fail to cancel your authorization, you instruct your employer and the Credit Union to make and apply the funds in accordance with your authorization prior to your filing of bankruptcy. If we deposit any amount in your account which for any reason must be returned to the federal government, you authorize us to deduct the amount of our liability to the federal government from your account or from any other account you have with us, without prior notice and at any time, except as prohibited by law. We may also use any other legal remedy to recover the amount of our liability. You agree that any amount deposited into your account in error by payroll deduction, direct deposit or otherwise, does not belong to you and is not for your use. You authorize us to deduct the deposit from your account or from any other account you have with us, without prior notice and at any time. You agree that these funds are the property of the Credit Union and you are liable to the Credit Union for the deposit amount and the cost of legal expenses, if any, incurred by the Credit Union in recovery of the funds. f) Crediting of Deposits. Deposits made on Saturday, Sunday and federal holidays will be credited to your account on the next business day. Deposits made at a Shared Branching location after close of business for this Credit Union will be credited to your account on the next business day. Deposits received at un-staffed facilities, such as night depositories, will be credited the day funds are removed and processed by the Credit Union. Deposits received by mail or courier will be credited on the business day received and processed by the Credit Union. NOTE: If a check is deposited using the Credit Union s Mobile Banking / Mobile Deposit Service, the terms and conditions pertaining to such a mobile deposit are set forth in the Credit Union s Mobile Deposit Services Agreement. Federal Reserve Board Regulation CC does not apply to mobile deposits. ACCOUNT ACCESS You may make withdrawals or transfers from your account in any manner which is permitted by the Credit Union (i.e., check, Automated Teller Machines (ATMs), Point-of-Sale (POS), in person, by mail, telephone, automatic transfer, Shared Branching, Online Banking, Mobile Banking, or Bank-by-Phone, as applicable). If the Credit Union accepts for processing any written order to pay funds from your account that is not drawn on a form provided by the Credit Union or its designated check vendor, you will be responsible for any loss incurred by the Credit Union for handling the item. The Credit Union may return as unpaid any item that is not drawn on a form provided by the Credit Union or its designated check vendor. a) Authorized Signature. In order to process transactions for your account, the Credit Union must have your written or electronic signature on an Account Card. The Credit Union will not be liable for refusing to honor any item or instruction of yours if we believe your signature appearing on the item or instruction is not genuine. b) Shared Branching. You may be allowed to conduct transactions at CO-OPsm Shared Branching locations. Not all services may be available at all Shared Branching locations. The Credit Union may restrict access to Shared Branching services at any time. You will receive receipts for transactions conducted at Shared Branching locations and the transaction information will be reflected on your periodic statement. Cash back on all Shared Branching transactions may be limited to $1,000 per member, per day. All checks presented for deposit with cash back will be processed based on the balance of available funds in the account prior to the transaction. c) Credit Union Examination. The Credit Union may disregard information on any share draft or check other than the signature of the drawer, the amount of the item and any magnetic encoded information. You agree the Credit Union does not fail to exercise ordinary care in paying a share draft or check solely because its procedures do not provide sight examination of any item. WIRE TRANSFERS AND AUTOMATED CLEARING HOUSE (ACH) You may initiate or receive credits or debits to your account via wire transfer or ACH transfer. You agree that any outgoing wire or ACH transfer is processed at the Credit Union s discretion and you agree to any applicable provisions. You agree that the Credit Union will not be responsible for losses by any person or institution where a receiving financial institution posts or processes a payment order request. You also agree that after the Credit Union has accepted a payment order, no amendment or cancellation will be effective without the agreement of the Credit Union. Receivers of ACH transactions should be aware that the Credit Union might, from time to time, need to temporarily suspend processing of a transaction for greater scrutiny or verification in accordance with the laws and regulations of the Office of Foreign Assets Control. This action may affect settlement or availability of the transaction. The Credit Union will not be liable to you for any incidental, consequential or special damages resulting from late or improper execution or failure to execute a payment order. Credit given by us to you with respect to an ACH credit entry is provisional until we receive final settlement or otherwise receive payment for the entry. You are hereby notified and agree that, if such settlement or payment is not received, we are entitled to a refund in the amount credited to you in connection with such entry, and the party making payment to you via such entry (i.e. the originator of the entry) is considered not to have paid you the amount of such entry. Under the operating rules of the National Automated Clearing House Association, which are applicable to ACH transactions involving your account, we are not required to give next day notice to you of receipt of an ACH item and we will not do so. However, we will continue to notify you of the receipt of payments in the periodic statements we provide to you. We may accept on your behalf payments to your account which have been transmitted through one or more Automated Clearing Houses (ACH) and which are not subject to the Electronic Fund Transfer Act and your rights and obligations with respect to such payments shall be construed in accordance with and governed by the laws of the State of Indiana as provided by the operating rules of the National Automated Clearing House Association, which are applicable to ACH transactions involving your account. When you initiate a wire transfer, you may identify either the recipient or any financial institution by name and by account or identifying number. The Credit Union (and other institutions) may rely on the account or other identifying number as the proper identification even if it identifies a different party or institution. You agree to pay any applicable fees related to these services as set forth on the Rate and Fee Schedule. Federal Reserve Regulation J governs wire transfers if the transfer is cleared through the Federal Reserve. Additionally, wire transfers that are made by consumers from the United States to other countries are considered "remittance transfers" under federal law, and enjoy consumer protections through the Bureau of Consumer Financial Protection s Regulation E. ACH transactions are governed by the rules of the National Automated Clearing House Association. 3

4 RATES AND FEES The Rate and Fee Schedule for all accounts sets forth certain conditions, rates, fees and charges applicable to your accounts. This schedule is incorporated as part of your account agreement with the Credit Union. You agree the Credit Union may change the Rate and Fee Schedule at any time and you will be notified of such changes as required by law. TRANSACTION LIMITATIONS a) Withdrawal Restrictions: The Credit Union will permit a withdrawal only if you have sufficient available funds in your account to cover the full amount of the withdrawal or have an established overdraft protection plan. Checks or other transfers or payment orders that are drawn against insufficient available funds will be subject to a service charge, set forth in the Rate and Fee Schedule. If there are sufficient available funds to cover some but not all of the withdrawal orders presented for payment, the Credit Union may pay those withdrawals for which there are sufficient available funds, using any order of payment determined at the Credit Union s discretion. The Credit Union may refuse to allow a withdrawal in some situations; for example: (1) any dispute between the owners about the account (unless a court has ordered the Credit Union to allow the withdrawal); (2) a legal garnishment or attachment is served; (3) the account secures an obligation to the Credit Union; (4) any required documentation has not been presented; (5) one or more of your Credit Union loans is delinquent. Any garnishment is subject to the Credit Union's lien or security interest in an account. You will be advised of the reason(s) for refusal if such action is taken. The Credit Union reserves the right to require members to give notice in writing of any intended withdrawals from any account (except checks) of not less than 7 days and up to 60 days, as required by law, before such withdrawal. b) Transfer Limitations: The Credit Union may limit the dollar amount or the number of transactions from your account. Please refer to our Truth-in-Savings Disclosure, your Electronic Fund Transfer Agreement and the Rate and Fee Schedule. OVERDRAFTS a) Overdraft Liability: If on any day, the available funds in your checking account are not sufficient to cover checks, ATM withdrawals, debit card transactions, ACH transactions, and other items posted to your account, those checks and items will be handled in accordance with our overdraft procedures or an overdraft protection plan you have with us. The Credit Union's determination of an insufficient account balance may be made at any time between presentation and the Credit Union's midnight deadline with only one review of the account required. The Credit Union has no duty to notify you of an insufficient funds check. Your account will then be subject to a charge for the item whether paid or returned as set forth in the Rate and Fee Schedule. Except as otherwise agreed in writing, the Credit Union, by covering one or any overdraft, does not agree to cover overdrafts in the future and may discontinue covering overdrafts at any time. b) Overdraft Protection Plan: If you request and we approve, we will provide an overdraft protection plan for you. We will honor items drawn on insufficient funds in your checking account by transferring the necessary funds from a Membership or other savings (excluding Money Market Savings, escrow savings and IRA savings) account or Line of Credit loan of yours, if applicable, under the same account number as the checking account. The fee for overdraft transfers is set forth on the Rate and Fee Schedule. Transfers from a deposit account will be governed by this Agreement. Transfers from a Line of Credit loan will be governed by the credit agreement. c) Overdraft Privilege (ODP): Credit Union members may experience insufficient funds situations on their checking account. As a courtesy, the Credit Union may offer an additional overdraft service called Overdraft Privilege (ODP). ODP is not a loan, which means that the Credit Union does not engage in credit underwriting as a basis of determining your eligibility for ODP. ODP is a non-contractual service offered and provided to members who meet certain criteria and guidelines. Whether your overdrafts will be paid via ODP is discretionary and we reserve the right not to pay. ODP Eligibility Requirement: Your Overdraft Privilege (ODP) limit is automatically assigned according to your personal checking account type. You must meet the following criteria and maintain your account in good standing with the Credit Union, which includes, but is not limited to the following: You must be 18 years of age or older You have a Social Security number You have a valid United States mailing address and telephone number on file at the Credit Union You are not in default on any loan or other obligation to the Credit Union You are not subject to any legal or administrative order or levy You do not exceed your pre-determined Overdraft Privilege limit Overdraft Privilege may be restricted on specially designated accounts such as, but not limited to, trusts, estates, representative payees, organization and business accounts. Overdraft Privilege may be limited to just one checking account per member. Use of Your Overdraft Privilege Limit: Overdraft Privilege may be accessed once you have exhausted your other overdraft protection options, such as Membership Savings and/or Line of Credit, if applicable. Our standard Overdraft Privilege (ODP) practice is to pay checks, automatic bill payments and other transactions using your account number. We will not authorize and pay overdrafts for automated teller machine (ATM) and everyday debit card transactions unless you specifically elected this option. Items will be paid in the order they are presented to the Credit Union. The Overdraft Privilege fee (as stated in our current Rate and Fee schedule) will be assessed to your checking account for each item paid when available funds are insufficient. Any overdraft policy, agreement, procedure or plan represents a purely discretionary courtesy or privilege that the Credit Union may provide to you. This may be withdrawn or withheld by the Credit Union at any time without prior notice to you and without reason or cause. The Membership & Account Agreement shall control any possible conflict between a provision of this Agreement and any overdraft policy, agreement, procedure or plan provided. Obligation to Pay: The Credit Union reserves the right to pay items into overdraft, to impose overdraft fees (as stated in the Rate and Fee schedule), and to apply any later deposits or direct deposits (including deposits of Social Security or other government benefits) to those overdrafts or overdraft fees. The total of the discretionary overdraft (negative) balance, including any and all fees and charges, is due and payable upon demand. A notice will be delivered to you (by U.S. Mail or by notification, based on your preference) each time an item is paid through Overdraft Privilege. The notice will show the fee, date, transaction description and amount. You must bring your account balance positive within 30 days from the date of the first overdraft occurrence. Opt Out Arrangements: If you choose not to participate in Overdraft Privilege program, you are required to contact the Credit Union. The opt out is effective once it has been received and processed by the Credit Union. POSTDATED AND STALEDATED CHECKS You authorize us to accept and pay any check without regard to the date of the check even if the check is presented for payment before its date. The Credit Union is under no obligation to you to pay a check 4

5 drawn on your account, which is presented more than six (6) months after its date, but may charge your account for the payment unless you have placed an effective stop payment. STOP PAYMENT ORDERS a) Stop Payment Requests: You may ask the Credit Union to stop payment on any item drawn upon your account. The stop payment will be effective if the Credit Union receives the order in time for the Credit Union to act upon the order and you state the account number, check number and exact amount. You understand that the exact information is necessary for the Credit Union s system to identify the item. If you give the Credit Union incorrect or incomplete information, the Credit Union will not be responsible for failing to stop payment on the item. If the stop payment order is not received in time for the Credit Union to act upon the order, the Credit Union will not be liable to you or to any other party for payment of the item. Stop payment requests submitted through Online Banking will be in effect by the end of the next business day following the day the request was submitted. b) Duration of Order: A verbal (telephone) or written check stop payment order or a stop payment request received via Online Banking or Bank-by-Phone will be effective for six (6) months. Verbal stop payment orders will be confirmed with you via notice sent by U.S. Mail within 2 business days. It is your responsibility to advise the Credit Union if any information appearing on the verbal stop payment confirmation notice requires correction. The Credit Union is not obligated to notify you when a check stop payment order expires. An ACH stop payment shall remain in effect until 1) written notice is received from the account holder to revoke the stop payment order, or 2) payment of the entry has been stopped, whichever occurs first. c) Liability: The Credit Union may assess a fee to process each order to add or remove a stop payment, as set forth in the Rate and Fee Schedule. You agree to indemnify and hold the Credit Union harmless from all costs, including attorneys fees, damages or claims related to the Credit Union s action in refusing payment of an item, including claims of any joint account owner, payee, or endorsee in failing to stop payment of an item as a result of incorrect information provided by you. d) Cashier s Checks: If you purchase an IU Credit Union Cashier s Check and it is subsequently lost, stolen or destroyed, you may file a Declaration of Loss with the Credit Union and request payment of the amount of the check. Reimbursement for the check may be delayed for a period of ninety (90) days from the date of the request. During this 90-day period, the Credit Union may pay the check to a person entitled to enforce it, which discharges all liability of the Credit Union with respect to the check. If the check has not been presented before the 90-day waiting period passes, the Credit Union is obligated to pay the amount of the check to the member who filed the claim and is no longer obligated to pay the check. If the check is then presented for payment by a holder in due course and the Credit Union honors the check, you will be obligated to return the funds to the Credit Union. If the Credit Union chooses to dishonor the check, you will be obligated to pay the holder in due course. CREDIT UNION LIABILITY FOR ERRORS If we do not properly complete a transfer to or from your account according to this Agreement with you, we may be liable for your actual losses or damages not to exceed the amount of the transaction, except as otherwise provided by law. We will not be liable if: (a) through no fault of ours, your account does not contain enough money to make the transaction; (b) circumstances are beyond our control; (c) your loss is caused by negligence of you or another financial institution; or (d) the funds in your account are subject to legal process or other claim. We will not be liable for consequential damages except liability for wrongful dishonor. Our actions constitute the exercise of ordinary care if such actions or non-actions are consistent with applicable state law, Federal Reserve regulations and operating letters, clearing house rules, and general banking practices followed in the area serviced by the Credit Union. You grant us the right, in making payments of deposited funds, to rely exclusively on the form of the account and terms of this Agreement. Any conflict between verbal representation by you or our employees and any written form will be resolved by reference to this Agreement. CREDIT UNION LIEN AND SECURITY INTEREST To the extent you owe the Credit Union money as a borrower, guarantor, endorser, accountholder or otherwise, the Credit Union has a lien on any or all the funds in any account in which you have an ownership interest, regardless of the source of the funds, unless prohibited by law. The Credit Union may apply these funds in any order to pay your indebtedness. If the Credit Union chooses not to enforce its lien, the Credit Union does not waive its right to enforce the lien at a later time. In addition, you grant the Credit Union a security interest in your accounts and agree the Credit Union may use the funds from your accounts to pay any debt or amount now or hereafter owed the Credit Union, except for obligations secured by your residence, unless prohibited by applicable law. All accounts are non-assignable and non-transferable to third parties. Note Regarding Savings Product Established With Secured Credit Card Account: If you have applied and been approved for a Secured Credit Card Account from the Credit Union, you have signed a separate Agreement to pledge the restricted balance of a designated Savings product (the Collateral Account ) as security for your Secured Credit Card Account, regardless of the type or source of the funds deposited to it for this purpose. You understand that this grant of a security interest to the Credit Union is in addition to all other grants of security that you may have pledged with the Credit Union. You understand and agree that the Credit Union may use all funds in the Collateral Account to pay the Secured Credit Card debt and may apply these funds at any time or in any order. LEGAL PROCESS If any legal action, such as levy, garnishment or attachment is brought against your account, the Credit Union may refuse to pay out any money from your account until the dispute is resolved or may pay out funds according to the terms of the order. If the Credit Union incurs any expenses or attorneys fees in responding to legal process, such expenses may be charged against your account without prior notice to you, unless prohibited by law. Any legal process against your account is subject to the Credit Union s lien and security interest. Payment of fees resulting from the action will remain your responsibility. UNLAWFUL USE OF FINANCIAL SERVICES Inappropriate and/or Gambling Transactions. Certain federal and/or state laws such as the Unlawful Internet Gambling Enforcement Act or Third Party Service Providers Rules may limit or prohibit certain transactions such as (but not limited to) those coded as possible gambling transactions. The Credit Union may decline to accept, process or pay any transaction that we believe to be illegal or unenforceable (regarding your obligation to pay us or otherwise) under applicable law, or which is otherwise limited or prohibited, including but not limited to any transaction involving or relating to any gambling activity. Such prohibition or limitations may affect some otherwise proper or allowable transactions such as debits, charges or other transactions at or relating to a hotel-casino. You understand and agree such limitations/prohibitions are not within the Credit Union s control and that the Credit Union will not have any liability, responsibility or culpability whatsoever for any such use by you or any authorized user(s); or for declining to accept, process, or pay any such transaction. You further agree to indemnify and hold the Credit Union harmless from any suits, liability, damages or adverse action of any kind that results directly or indirectly from any such use of your account and/or access devices. REMOTELY CREATED CHECK A remotely created check typically is created by a third party payee and is authorized by one of the account owners on which the check is drawn. Authorization of a remotely created check typically is made over the telephone or Internet. The check does not contain the signature of any account owner. In place of the account owner s signature, the item created usually bears a statement that the signer authorized the check and/or indicates the account owner s name. If a third party draws a remotely created check from your account, by your authorization, you may not revoke your authorization. You are responsible to resolve any issues relating to authorization directly with the third party. The Credit 5

6 Union is not required to credit your account and may charge against your account any remotely created check for which the third party has proof of your authorization. ACCOUNT INFORMATION Upon your request, the Credit Union will inform you of the name and address of each credit reporting agency from which the Credit Union obtains a credit report in connection with your account. The Credit Union agrees not to disclose account information to third parties except when: (a) it is necessary to complete the transaction; (b) the third party seeks to verify the existence or condition of your account in accordance with applicable law; (c) such disclosure is in compliance with the law or government agencies or court order; or (d) you give us written permission. NOTICES a) Name and Address Change: Federal law requires that we obtain a physical address for account holders and those who transact on the behalf of another. A Post Office Box address will be accepted for mailing purposes only and not as a substitute for the physical address. It is your responsibility to notify the Credit Union upon a change of address or change of name. The Credit Union is only required to attempt to communicate with you at the most recent address you have provided to us. Any change in address must be provided to the Credit Union in writing or electronically through Online Banking. Any change in name must be provided to the Credit Union in writing and may require a Credit Union approved form. Failure to provide your proper/legal name as recorded with the Social Security Administration could result in fees, penalties and/or closure of your account. b) Notice of Amendments: Except as otherwise prohibited by law, the terms of this Agreement are subject to change at any time. The Credit Union will notify you of any changes in terms, rates, or fees as required by law. The Credit Union reserves the right to waive any term in this Agreement. Any such waiver shall not affect the Credit Union s right to enforce any right in the future. c) Effect of Notice: Any written notice you give to the Credit Union is effective when it is actually received by the Credit Union. Any written notice the Credit Union gives you is effective when it is deposited in the U.S. Mail, postage prepaid and addressed to you at your statement mailing address. If you agreed to receive notices electronically, receipt is effective when an to your address on file with the Credit Union, advising that a new notice is available for your review through Online Banking, is sent. Notice to any one account owner is considered notice to all owners of the account. TAXPAYER IDENTIFICATION NUMBERS (TIN) AND BACKUP WITHHOLDING Your failure to provide a correct TIN or meet other requirements may result in backup withholding. If your account at IU Credit Union is subject to backup withholding, we must withhold and pay to the Internal Revenue Service (IRS) a percentage of dividends, interest, and certain other payments. If you do not have your TIN at the time your account is opened, you have thirty (30) days to provide it to the Credit Union. If we do not receive your TIN within thirty (30) days from your account opening date, your account may be closed and a check will be mailed for any funds remaining on deposit to the address we have on file. Generally, interest and dividends earned on an account should be reported to the IRS under the name and taxpayer identification number of the person who owns the principal in the account. This person should report the interest/dividends on his/her income tax return. STATEMENTS a) Contents: If we provide a periodic statement for your account, you will receive a record of transactions and activity on your account during the statement period as required by applicable law. If a periodic statement is provided, you agree that only one statement is necessary for a multiple party account. For checking accounts, you understand and agree that your original check, when paid, becomes property of us and may not be returned to you, but copies may be retained by us or clearing financial institutions and made available upon your request. You understand and agree that statements are made available to you on the date they are mailed or the date on which notification (advising that your statement is available) is sent. You understand and agree that neither the original paid checks nor copies or images of the paid checks will be returned with your periodic statement. b) Examination: You are responsible for examining each periodic statement and reporting any irregularities to the Credit Union. We will not be responsible for any forged, altered, unauthorized or unsigned items drawn on your account if: (1) you fail to notify us within thirtythree (33) days of the date the statement was made available to you, as defined above, regarding any forgery, alteration or unauthorized signature on any item described in the statement; or (2) any items are forged or altered in a manner not detectable by a reasonable person, including the unauthorized use of a facsimile signature machine. c) Notice to Us: You agree that our delivery of your statement without actual paid checks or their images does not alter or waive your responsibility to examine your statements or the time limit for notifying us of any errors. The statement will be considered correct for all purposes and we will not be liable for any payment made or charge to your account unless you notify us in writing within the above time limit for notifying us on any errors. If you fail to receive a periodic statement, you agree to notify us within fourteen (14) days of the time you regularly receive a statement. ELECTRONIC RECORDS You acknowledge and agree that we may, at our discretion, store all records electronically, and that we will not retain and have no obligation to retain any original documents for any period of time. This applies to all documentation including but not limited to checks, transaction records, Account Cards, member identification, notes, mortgages, deeds of trust and other loan and/or security documentation. We will routinely destroy all original documentation. We may store records electronically via imaging, scanning, filming or other technology used in the financial services industry for the storage of documentation via internal processes or third-party processors that we approve for these services. You agree that such storage shall be considered secure, and further agree that such records shall for all purposes be recognized and admissible as evidence or otherwise to prove the agreements, rights and obligations of the parties pursuant to any such records. INACTIVE, DORMANT AND ABANDONED ACCOUNTS If your cumulative account balance is below any applicable minimum balance as stated in the Rate and Fee Schedule and you have not made any transactions for a period of six (6) months, we may classify your account as inactive and charge an inactive account fee to your account. If your cumulative account balance is above the minimum balance as set forth in the Rate and Fee Schedule, and you have not had a withdrawal, deposit or transfer made on your account for a period of one (1) year, the Credit Union will classify your account as dormant. If your cumulative account balance is above the minimum balance as set forth in the Rate and Fee Schedule, and you have not had a withdrawal, deposit or transfer made on your account for a period of time determined by the State of Indiana and the Credit Union has been unable to mail you correspondence relating to your account because such correspondence has been returned for non-delivery, then your account will be considered abandoned. Funds in abandoned accounts will be reported and remitted to the State of Indiana in accordance with state law. Once funds have been turned over to the state, the Credit Union has no further liability to you for such funds and if you choose to reclaim such funds, you must apply to the appropriate state agency. SPECIAL ACCOUNT INSTRUCTIONS You may request that the Credit Union facilitate certain trust, will, or court-ordered account arrangements. However, because we do not provide legal advice, we cannot counsel you as to which account arrangement most appropriately meets the specific requirements of your trust, will, or court order. If you ask the Credit Union to follow any instructions that we believe might expose us to claims, lawsuits, expenses, liabilities, or damages, whether directly or indirectly, we may refuse to follow your 6