MEMBERSHIP AND ACCOUNT AGREEMENT INCLUDING DISCLOSURES

Transcription

1 FedChoice Federal Credit Union MEMBERSHIP AND ACCOUNT AGREEMENT INCLUDING DISCLOSURES This Agreement covers your and our rights and responsibilities concerning accounts at the FedChoice Federal Credit Union (FedChoice). In this Agreement, the words you and yours mean anyone who signs a Membership Application, Business/Organization/Association Application or an Account Change Form. The words we, us, ours and Credit Union mean FedChoice. The word account means any one or more share or other accounts you have with FedChoice. Your account type(s) and ownership features are designated on your Membership Account Application. By signing a Membership Account Application, Business/Organization/Association Account Application, Trust Account Application or an Account Change Form, each of you, jointly and severally, agree to the terms and conditions in this Agreement and the Membership Application (or other applicable account application). This Agreement includes Electronic Fund Transfer Agreement and Disclosure, Truth-In-Savings, Privacy Notice, Funds Availability Disclosures and any account receipt accompanying this Agreement or any transaction under this Agreement, the Credit Union s Bylaws and policies, and any amendments to these documents from time to time which collectively govern your membership and accounts. By signing a Membership Application and establishing a membership account, you may establish sub-accounts and/or access devices issued by the Credit Union in connection with such accounts, at any future time by calling, writing, going online or coming in to any Financial Service Center to request the service. The Credit Union has the right to approve or deny opening sub-accounts or other access device services. Credit reports or other third party information may be obtained at any time and you authorize the Credit Union to use these for any permissible purpose as defined in the Fair Credit Reporting Act (FCFRA), to include but not limited to marketing other products and services to you. The Credit Union is authorized to charge this account for any obligation owed by you or any joint/multiple party owners, to include the Membership fee. Any account ownership designated under your account will apply to all additional sub-accounts. This is a legally binding contract. In establishing an account with us, you acknowledge and agree that the Credit Union is in no way acting as a fiduciary for your benefit. Please READ and RETAIN this Agreement so that you can refer to it whenever you have a question about your account with the Credit Union. All notices, questions and other communication concerning your account should be directed to: FedChoice Federal Credit Union Willowdale Road, Lanham, MD ACCOUNT OWNERSHIP 1. Membership Eligibility. To join the Credit Union you must meet the membership requirements including purchase and maintenance of at least one (1) share (membership share) as set forth in the Credit Union s Bylaws. You authorize us to check your account, credit, and employment history and obtain reports from third parties, including credit reporting agencies, to verify your eligibility for the accounts and services that you either request or we may offer you from time to time. If you ask us, we will give you the name and address of each agency from which we obtain a credit report regarding your account. 2. Single-Party Accounts or Individual Accounts. By opening an account that is designated as an individual or single-party account on the Membership Application, he/she is the sole owner of the account. Unless the Membership Application or Account Change Form specifies a Payable on Death (POD) or Trust Designation, the interest of a deceased individual owner will pass, in accordance with applicable law, to the decedent s estate. As an individual owner, he/she is the only person authorized to engage in transactions on this account or any sub-account. 3. Joint Owners or Multiple Party Accounts. An account opened by (2) two or more persons is a multiple party account and each person designated on the Membership Account Application is a joint owner of the account. a. Rights of Survivorship. The persons opening a multiple party account will be treated by the Credit Union as joint tenants with rights of survivorship and not as tenants in common. This means when one owner dies, all sums in the account will belong to the surviving owner(s). A surviving owner s interest is subject to the Credit Union s statutory lien (see below) for the obligations the deceased owner owes to the Credit Union, and to any security interest or pledge granted by the deceased owner to the Credit Union, even if the surviving owner did not consent to it. b. Control of Joint Accounts. Any owner is authorized and deemed to act for any other owner(s) and may instruct us regarding transactions and other account matters. Each owner guarantees the signature of any other owner(s) and authorizes the others to endorse checks for deposit if they are payable to any of the joint owners. Any owner may withdraw all available funds, stop payment on items, transfer, or pledge to us all or any part of the shares without the consent of the other owner(s). We have no duty to notify any owner(s) about any transaction. We reserve the right to require written consent of all owners for any change to or termination of an account. If we receive written notice of a dispute between owners or inconsistent instructions from them, we may suspend or terminate the account including any or all sub-accounts and require a court order or written consent from all owners to act. c. Joint Account Owner Liability. If a deposited item in a joint account is returned unpaid, an account is overdrawn, or if we do not receive final payment on a transaction, the owners, jointly and severally, are liable to us for the amount of the returned item, overdraft, or unpaid amount and any charges, 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 of an owner or all funds in the joint account regardless of who contributed them. 4. POD / Trust Account Designations. A Payable on Death (POD) account or trust account designation is available for accounts opened in Maryland and is an instruction to the Credit Union that a single account so designated is payable to the owner during his or her life and payable to any named and surviving POD or trust beneficiary/payee upon the death of the owner. Accounts payable to more than one surviving POD beneficiary or trust payee are owned jointly by such beneficiaries/payees without rights of survivorship. If your account is opened in the District of Columbia or Pennsylvania, the POD designation will be given effect to the extent permitted by applicable law. Any POD or trust beneficiary/payee designation shall not apply to Individual Retirement Arrangements (IRAs). The Credit Union shall not be liable to the person(s) establishing the account, their heirs, representatives or assigns or to any other person by reason of any payment to a designated beneficiary/payee or for any other erroneous payment unless we make the payment after we have obtained actual knowledge that the person to whom the payment is to be made is not one of the designated beneficiaries/ payees. Except as otherwise provided by law, we are not obligated to notify any beneficiary/payee of the existence of any account or the vesting of the beneficiary/payee s interest in any account. 5. Accounts for Minors. We may require any account established by a minor to be a joint account with an owner who has reached the age of majority under state law and who shall be jointly and severally liable to us for any returned item, overdraft, or unpaid charges or amounts on such account. We may pay funds directly to the minor without regard to his or her minority. Unless a guardian or parent is an account owner, the guardian or parent shall not have any account access rights. We have no duty to inquire about the use or purpose of any transaction. We will not change the account status or ownership when the minor reaches the age of majority unless authorized in writing by all account owners. 6. Uniform Transfers to Minors Account. A Uniform Transfers to Minors Account (UTMA) is an individual account created by a custodian. Deposited funds are an irrevocable gift to a minor. The minor to whom the gift is made is the beneficiary of the custodial property in 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 make deposits, withdrawals, or close the account. We have no duty to inquire about the use or purpose of any transaction. In addition, the custodian agrees and certifies that it will indemnify and hold the Credit Union harmless with respect to any actions taken by the custodian in handling the account. If the custodian dies, we may suspend transactions in the account, unless we receive instructions from any person authorized by law to withdraw funds, e.g., court order authorizing a new custodian or transactions. 1

2 7. Agency Designation (Power of Attorney or Guardianship). An agency designation on an account is an instruction to us that the owner authorizes another person to make transactions as agent for the account owner regarding the accounts designated. Your agent has no ownership interest in the account(s) or Credit Union voting rights. The Credit Union has the right to review and approve or deny any form of power of attorney. We have no duty to inquire about the use or purpose of any transaction made by the agent. The Credit Union is not liable for the misapplication of funds from your account by your agent and the Credit Union is authorized to follow the directions of your agent regarding your account until we receive written notice that the agency has been terminated and we have had reasonable time to act upon the notice. 8. Business/Organization Accounts. Business/Organization accounts are savings accounts for the Credit Union s members business or organizational activities such as fund-raisers, social activities, etc. All members of the business or organization must be eligible for membership within the Credit Union. a. Authorized Signers. Each person signing the Business/Organization Account Application (the Application ) must presently occupy the position shown on the Application and must be authorized to transact business on behalf of the named business/organization. Each authorized signer agrees to notify the Credit Union of any change in authority. The Credit Union may request any other evidence of the signer s authority that it deems necessary at any time. b. Transacting Business. Without further inquiry, the Credit Union may accept and pay any item bearing the appropriate number of signatures as directed on the Application. Any authorized signer is authorized to endorse checks for deposit if they are payable to the named business/organization and to execute such other agreements and to perform any other transaction under this Agreement. This authority to transact business shall remain in full force and effect until written notice of revocation is delivered to and received by the Credit Union and we have had reasonable time to act upon the notice. The Credit Union does not have a duty to inquire as to the powers and duties of any signer and shall not have notice of any breach of fiduciary duty by any signer unless the Credit Union has actual notice of wrong doing. c. Liability. The named business/organization and each signer agrees to indemnify and hold the Credit Union harmless of any claim or liability as a result of unauthorized acts of any signer or former signer or any acts of any signer upon which the Credit Union relies prior to notice of any account change. d. Employer Identification Number. The named account should have a separate Employer Identification Number (EIN). In lieu of a separate EIN, the Credit Union may, in its sole discretion, accept the Social Security Number of the first named signer on the Application (applies to Sole Proprietorships only). The signer will be required to complete an Employer Identification Number Certification. The Credit Union may, in its sole discretion, offer a Business/Organization Account which shall not bear a dividend, without requiring that the account owners provide an EIN. 9. Special Account Instructions. You may request that we facilitate certain trust, will, or court ordered account arrangements. We may ask you to complete a separate Credit Union designated trust form and to provide a complete certified copy of the trust, will or court document. We may, in our sole discretion, accept an abstract of trust. The Credit Union may only accept non-discretionary trust arrangements. Because we do not give legal advice, we cannot counsel you as to which account arrangement most appropriately meets the specific requirements of your trust, will, or court order. We cannot accept administrative or management responsibilities of any trust. If you ask us to follow any instructions that we believe might expose us to claims, lawsuits, expenses, liabilities, or damages, whether directly or indirectly, we may deny acceptance of a trust. Account changes requested by you, or any account owner, such as adding or closing an account or service, must be done in writing, and supporting documents presented as evidence, when determined applicable by management. 10. Deposit of Funds Requirements. Funds may be deposited to any account, in any manner approved by the Credit Union in accordance with the requirements set forth in this Agreement and the Truth-In-Savings Disclosure. a. Endorsements. We may accept transfers, checks, drafts, and other items for deposit into any of your accounts if they are made payable to, or to the order of, one or more account owners, even if they are not endorsed by all payees. We may decline to accept any check for deposit, in our sole discretion, if not signed by all payees. We do not accept checks made payable to someone other than the account holder (third party). You authorize us to supply missing endorsements of any owners if we choose. If a check, draft or item that is payable to two or more persons is ambiguous as to whether it is payable to either or both, we may process the check, draft or item as though it is payable to either person. If an insurance, government, or other check or draft requires an endorsement as set forth on the back of the check or draft, we may require personal endorsement as set forth on the item. You agree to reimburse the Credit Union for any loss or expense, including without limitation attorneys fees and the costs of litigation, arbitration or other dispute resolution to the extent provided by law, that we incur because you fail to endorse an item exactly as it is drawn. Endorsements must be made on the back of the check within 1 1/2 inches from the top edge, although we may accept endorsements outside this space. However, you agree that the Credit Union will not be liable to you because an item you deposit in your account is returned after the time set by applicable law if the delay in returning the item is caused by markings on the item in the space reserved for the depository institution s endorsement that were made by you or a prior endorser. Similarly, you will be liable to the Credit Union for any loss or expense, including without limitation attorneys fees and the costs of litigation, arbitration or other dispute resolution to the extent permitted by law, that we incur because we are unable to properly return an item drawn on your account within the time set by applicable law where the delay in properly returning the item is caused by markings on the item in the space reserved for the depository institution s endorsement that existed at the time you issued the item. b. Collection of Items. We act only as your agent and we are not responsible for handling items for deposit or collection beyond the exercise of ordinary care. 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. Items drawn on an institution located outside the United States are handled on a collection basis only. You waive any notice of nonpayment, dishonor, or protest regarding items we purchase or receive for credit or collection to your account. We reserve the right to pursue collection of previously dishonored items at any time, including giving a payor financial institution extra time beyond any midnight deadline limits. We are under no obligation, however, to pursue collection of previous dishonored items. c. Restrictive Legends. Some checks and drafts contain restrictive legends or similar limitations on the front of the item. Examples of restrictive legends include two signatures required, void after 60 days or not valid over $500. We are not liable for payment of any check or draft contrary to a restrictive legend or other limitation contained in or on the item unless we have specifically agreed in writing to the restrictions or limitations. 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 may charge your account for the amounts of such items or ACH transfers and impose a return time charge on your account. Any collection fees we incur may be charged to your account. We reserve the right to refuse or return any item or funds transfer. e. Direct Deposits and Other Pre-authorized Transfers. We may permit pre-authorized deposits to your account (e.g., payroll checks, Social Security or retirement checks, or other government checks) or pre-authorized transfers from your account (each type of transfer is described more fully below). We may require you to authorize each initial direct deposit or pre-authorized transfer by filling out a separate form. You must notify us at least thirty (30) days in advance to cancel or change a direct deposit or transfer option (ACH origination) or 3-business days prior to scheduled transfer on a transactional basis. Upon a bankruptcy filing, unless you cancel an authorization, we will continue making pre-authorized transfers in accordance with your authorization on file with us. If we are required to reimburse the U.S. Government for any benefit payment directly deposited into your account, without prior notice to you; we may deduct the amount returned from any of your accounts with us, unless prohibited by law. f. Crediting Deposits. Deposits made after the deposit cut-off time and deposits made on either holidays or days that are not our business days will be credited to your account on the next business day. 11. Account Access. a. Authorized Signature. Your signature on the applicable account application form is your authorized signature. For the payment of funds and for other purposes relating to any account you have with us, the Credit Union is authorized to recognize your signature, 2

3 but we will not be liable to you for refusing to honor your checks or other signed instructions if we believe in good faith that the signature appearing on such checks or instructions is not genuine. You should always promptly review your statements for unauthorized transactions. If you voluntarily give information about your account (such as the Credit Union s routing number and/ or your account number) to a party who is seeking to sell you goods or services, and you do not physically deliver a fully executed check to that party, any item presented against your account by the party to whom you gave the information even though your signature is not on the instrument presented, is deemed to have been authorized by you. b. Access Options. You may withdraw or transfer funds from your account(s) in any manner we permit (e.g. at an automated teller machine (ATM), in person, by mail, mobile banking, Internet access, automatic transfer, or telephone, as applicable). We may return as unpaid any draft drawn on a form we do not provide, and you are responsible for any loss we incur in handling such a draft. We have the right to review and approve any form of power of attorney presented by any person for your account. We may restrict account withdrawals or transfers by a person using power of attorney but are under no obligation to do so. c. ACH & Wire Transfers. If we provide the service, you may initiate or receive credits or debits to your account through ACH or wire transfer. You agree that if you receive funds by an ACH or wire, we are not required to notify you at the time the funds are received. Instead, the transfer will be shown on your periodic statement. We may provisionally credit your account for an ACH transfer before we receive final settlement. We may reverse the provisional credit or you will refund us the amount if we do not receive final settlement. When you initiate a wire transfer, you must identify the recipient and financial institution by name, address and identifying number. The Credit Union (and other institutions) will rely on the account or other identifying number as the proper identification even if it identifies a different party or institution. All wire transfers are subject to Uniform Commercial Code Article 4A, as adopted in the state of Maryland. All ACH transfers are subject to the rules of the Automated Clearing House Association (ACHA). d. Credit Union Examination. You recognize that the Credit Union has adopted automated collection and payment procedures so that it can process the greatest volume of items at the lowest possible cost to all its members. In recognition of this fact, you agree that in paying or taking an item for collection, the Credit Union may disregard all information on the item other than information that is encoded onto the item in magnetic ink according to general banking standards, whether or not that information is consistent with other information on the item. You agree to reimburse the Credit Union for any loss or expense, including without limitation attorneys fees and the costs of litigation to the extent permitted by law that we incur because you issue or deposit an item containing such extra information. You agree we do not fail to exercise ordinary care in paying an item solely because our procedures do not provide for sight examination of items. 12. Account Rates and Fees. We pay account earnings and assess fees against your account as set forth in the separate Rates and Fees Schedules. We may change the separate Rates and Fees Schedules at any time and will notify you as required by law. 13. Transaction Limitations a. Withdrawal Restrictions. We permit withdrawals only if your account has sufficient available funds to cover the full amount of the withdrawal, you have an established overdraft protection plan or fall under our overdraft policy described in paragraph 15. Drafts or other transfer or payment orders which are drawn against insufficient funds may be subject to a service charge set forth in the separate Rates and Fees Schedules. If there are sufficient funds to cover some, but not all, of the items to be charged to your account, we may allow those withdrawals for which there are sufficient funds in any order at our discretion. We may refuse to allow a withdrawal in some situations and will advise you accordingly; for example: (1) a dispute between account owners (unless a court has ordered us to allow the withdrawal; (2) a legal garnishment or attachment is served; (3) the account secures any obligation to us; (4) required documentation has not been presented; (5) you fail to repay a Credit Union loan on time. We may require you to give advance written notice of any intended withdrawals, subject to the terms and conditions of the particular account and applicable law requirements. b. Transfer Limitation. For savings accounts, the Federal Government through Regulation D will only allow you to make up to six (6) pre-authorized automatic, telephone, ebanking, mobile banking or audio response transfers to another account of yours or to a third party during any calendar month. Of these six (6), you may make no more than three (3) transfers to a third party by check or debit card (a pre-authorized transfer includes any arrangement with us to pay a third party from your account upon oral or written orders including orders received through the automated clearing house (ACH)). You may make unlimited transfers to any of your accounts or to any Credit Union loan account and may make withdrawals in person, by mail, or at an ATM. We may refuse or reverse a transfer that exceeds these limitations and may assess fees against, suspend or close your account for violation of this condition. There is no limit to the number of inquiries you may make in one day. 14. Certificate Accounts. Any time deposit, term share, share certificate, or certificate of deposit allowed by state law, whichever we offer, is subject to the terms of this Agreement, the Truth-In-Savings Disclosure and Account Deposit Receipt for each account, the terms of which are incorporated herein by reference. 15. Overdrafts a. Overdraft Liability. If on any day, the funds in your share account are not sufficient to cover drafts, fees or other items posted to your account, those amounts 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 anytime between presentation and our midnight deadline with only one review of the account required. We do not have to notify you if your account does not have funds to cover drafts, fees or other posted items. Whether the item is paid or returned, your account may be subject to a charge as set forth in the separate Rates and Fees Schedules. Except as otherwise agreed in writing, we, by covering one or any overdrafts, do not agree to cover overdrafts in the future and may discontinue covering overdrafts at anytime without notice. If we pay a draft or impose a fee that would otherwise overdraw your account, you agree to pay the overdrawn amount immediately. We reserve the right to pursue collection of previously dishonored items at anytime, including giving a payor bank extra time beyond any midnight deadline limits. b. Overdraft Protection Plan. If we have approved an overdraft protection plan for your account, we will honor drafts drawn on insufficient funds by transferring funds from another account under this agreement or a loan account, as you have directed, or as required under the Credit Union s policy. The fee for overdraft transfers, if any, is set forth in the separate Rates and Fees Schedules. This agreement governs all transfers except those governed by agreements for a loan account. c. Overdraft Courtesy Pay. In order to take advantage of our Courtesy Pay service, which covers one-time (everyday) debit and ATM transactions, you must affirmatively Opt-In. You may opt-in at any FedChoice Financial Service Center (FSC), or after logging in to e-banking at fedchoice.org, or by simply calling the Financial Advisory Center (FAC). 16. Stale, Time-Dated and Post-Dated Items. The Credit Union maintains the option either to pay or dishonor any stale check (i.e., more than 6 months old) upon presentation to the Credit Union. The Credit Union s high-speed automated check processing equipment cannot detect time-dated checks (i.e., checks stating that they are not valid after a specified date or for more than a specified period of time). Therefore, you agree that the Credit Union will not be liable for charging your account after the date or beyond the period stated on an otherwise properly payable time-dated check. Similarly, the Credit Union s check processing equipment cannot detect post-dated checks (i.e., a check bearing a date later than the actual calendar date it was presented). Therefore, it is recommended that you do not issue post-dated checks as a means of withdrawal and you agree that the Credit Union is not responsible for charging your account before the indicated date on a properly payable but post-dated check unless you notify us, as provided in this Agreement, that you have issued a post-dated check and we agree to honor this instruction. Oral notice concerning a post-dated check that we accept, lapses after 14 calendar days unless it is confirmed in writing within that period; written notice that we accept concerning a post-dated check is effective for 6 months. Renewals must be in writing and may be made from time to time. A written notice concerning a post-dated check, renewal or revocation will be valid upon delivery to the Credit Union; however, we are entitled to a reasonable period of time after you give us notice concerning a post-dated check to provide necessary notice to employees and check processors. Your notice must inform us of the name of the person who signed the check, the name of the payee of the check, the date and exact amount of the check, the number of the check and the number of the account on which the check was drawn. We will not be responsible if the information you give us is not correct, if it is converted to an electronic format, the amount is changed to reflect fees or if you fail to give any other reasonable information regarding the item 3

4 and we pay it prior to the indicated date. If we re-credit your account after paying a post-dated check over a valid and timely notice, you agree to transfer to us all of your rights against the payee or other holder of the check, and to assist the Credit Union in any legal action we may later take against that person. If the Credit Union complies with a notice with respect to a post-dated check or other item drawn against your account, you agree to defend and hold the Credit Union harmless from and against any claims, demands, suits or other disputes resulting from or relating in any way to that notice and to indemnify the Credit Union for the amount of any such claims, demands, suits or other disputes and any related costs and expenses, including attorneys fees and the costs of litigation to the extent permitted by law. 17. Stop Payment Orders. a. Stop Payment Request. You may request a stop payment order on any paper check drawn on your account. Items drawn on your account in electronic form are subject to different stop payment rules described in your EFT disclosures. In order to place a stop payment order, you must inform the Credit Union of the name of the person who signed the check, the name of the payee of the check, the date and exact amount of the item, the number of the check and the account number on which the item was drawn. 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 provided we have a reasonable period of time to provide necessary notice to employees and check processors. You understand that the exact information is necessary for our computer system to identify the check. If you give us incorrect or incomplete information, we will not be responsible for failing to stop payment on your check. If the stop payment order is not received in time for us to act upon the order, we will not be liable to you or to any other party for payment of the check. If we re-credit your account after paying a check over a valid and timely stop payment order, you agree to sign a statement describing the dispute with the payee, to transfer to us all of your rights against the payee or other holders of the check and to assist us in any legal action. Only the person who initiated the stop payment order may give a release or cancellation of a stop payment order. Stop payment orders generally are not permitted on any certified check, cashier s check, teller s check, or any other check, draft, or payment issued and/or guaranteed by us. b. Duration of Order. Oral notice concerning a stop payment order lapses after 14 calendar days unless it is confirmed in writing within that period; written notice concerning a stop payment order is effective for six (6) months. Renewals must be made in writing and may be made from time to time. We do not have to notify you when a stop payment order expires. c. Liability. Fees for stop payment orders are set forth in the separate Rates and Fees Schedules. Although payment of an item may be stopped, you may remain liable for any check or item that has been negotiated to a holder in due course, including us. d. Indemnification. You agree to indemnify and hold the Credit Union harmless from all costs, including attorneys fees, damages or claims related to our refusing payment of an item, including claims or any multiple party account owner, payee, or endorser in failing to stop payment of an item as a result of incorrect information provided by you. If we comply with a stop order with respect to a check or other item drawn against your account, you agree to defend and hold the Credit Union harmless from and against any claims, demands, suits or other disputes resulting from or relating in any way to that stop order and to indemnify the Credit Union for the amount of any such claims, demands, suits or other disputes and any related costs and expenses, including attorneys fees and the costs of litigation to the extent permitted by law. 18. Credit Union Liability. If we do not properly complete a transaction according to this Agreement, we will be liable for your losses or damages not to exceed the amount of the transaction, except as otherwise provided by law. We will not be liable if: (1) your account contains insufficient funds for the transaction; (2) circumstances beyond our control prevent the transaction; (3) your loss is caused by your or another financial institution s negligence; or (4) your account funds are subject to legal process or other claim. We will not be liable for consequential damages, except liability for wrongful dishonor, law, Federal Reserve regulation and operating letters, clearinghouse rules, Uniform Commercial Code Article 4A and general financial institution practices followed in the area we serve. You grant us the right, in making payments of deposited funds, to rely exclusively on the form of the account and the terms of this Agreement. Any conflict between what you or our employees may say or write will be resolved by reference to this Agreement. 19. Checks Presented for Payment in Person. We may refuse to accept any check or draft drawn on your account that is presented for payment in person. Such refusal shall not constitute a wrongful dishonor of the check or draft and we shall have no liability for refusing payment. 20. Statutory Lien and Security Interest. If you owe the Credit Union money as a borrower, guarantor or otherwise, and it becomes due (whether at its stated maturity, by our acceleration of the debt or otherwise), the Credit Union has the right under the law (called a statutory lien ) and under this Agreement (by which you grant the Credit Union a security interest in all of your share deposit, term deposit, money market, and checking accounts) to use the money from your account to pay the debt, except for obligations secured by your residence or otherwise prohibited by applicable law. The Credit Union may use the money to pay the debt even if withdrawal results in an interest penalty or dishonor of checks. In the case of a joint account, each joint owner agrees that the Credit Union may use the money in the account to satisfy any one of their individual obligations. Similarly, each joint owner agrees that the Credit Union may use the money in their individual account to satisfy obligations in the joint account. If we choose not to enforce our lien, we do not waive our right to enforce the lien at a later time. Before exercising our security interest, we will give you such notice as required by law. The security interest granted by this Agreement is consensual and is in addition to the Credit Union s statutory lien. 21. Legal Process Against Your Account. If any legal action, such as tax levy, attachment, garnishment, etc., is brought against your account, we may pay out funds (including your membership share account) according to the terms of the action or refuse any payout until the dispute is resolved. Should the Credit Union pay funds from your account because of such legal action, we are not liable to you for any sums paid, even if such payment leaves insufficient funds in your account to pay checks you have written. Any expenses or attorney fees we incur responding to legal process may be charged against your account without notice, unless prohibited by law. Any legal process against your account is subject to our statutory lien and security interest. 22. Disclosure of Account Information. You agree that the Credit Union may report information about your account to any credit reporting agency, to anyone to whom you have given the Credit Union as a reference or to any other person or agency who, in the Credit Union s judgment, has a legitimate purpose for obtaining the information. You also recognize that we may be obligated to disclose information about your account to governmental agencies and other third parties in accordance with various statutes, rules, regulations, court orders, subpoenas and other legal requirements. 23. Telephone Monitoring. You agree that your telephone communications with us may be monitored and recorded to improve member service and security. 24. Notices and Account Change Forms. a. Name or Address Change. We will only communicate with you at the most recent address you have provided to us. If you have moved or have changed your name, you are responsible for providing us with your new address or name change. We may not accept oral or ed notices of a name change or a change in address and may require a written notice from you to us and we may request documentation or ask that you complete an Account Change Form to support the change request. If you have moved or changed your name and you have not notified us and we attempt to locate you, we may impose a service fee as set forth in the separate Rates and Fees Schedules. Any written notice you give to the Credit Union is effective when it is actually received by us, unless this Agreement specifies another effective date. b. Notice of Amendments. Except as prohibited by applicable law, we may change the terms of this Agreement. We will notify you of any changes in terms, rates, or fees as required by law. We reserve the right to waive any term in this Agreement. Any such waiver shall not affect our right to future enforcement and is not sufficient to modify the terms and conditions of this Agreement. c. Effect of Notice. Any written notice you give us is effective when we receive it. Any written notice we give to you is effective when it is deposited in the U. S. Mail; postage prepaid and addressed to you at your mailing address as shown on our records. Notice to any account owner is considered notice to all account owners. ORAL AGREEMENTS WITH, OR ORAL REPRESENTATIONS MADE BY, ANY EMPLOYEE OF THE CREDIT UNION THAT IS IN CONFLICT WITH OR IN ANY WAY MODIFIES ANY OF THE TERMS SET FORTH IN THIS AGREEMENT WILL NOT BE BINDING ON THE CREDIT UNION UNLESS IT IS COMPLETELY CONTAINED IN A WRITTEN MODIFICATION OF THIS AGREEMENT THAT IS SIGNED BY AN AUTHORIZED OFFICER OF THE CREDIT UNION. d. Electronic Notices. If you have agreed to receive notices electronically, we may send you notices electronically and discontinue 4

5 mailing paper notices to you until you notify us that you wish to reinstate receiving paper notices. 25. Reviewing Statements and Reporting Problems. a. Content. If we provide a periodic statement for your checking and, if applicable, loan and/or VISA Debit Card account, you will receive a periodic statement 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 the Credit Union and will not be returned to you, but copies may be retained by us or payable through financial institutions and made available to you upon your request. We may impose a service fee as set forth in the separate Rates and Fees Schedules. You understand and agree that statements are made available to you on the date they are mailed or electronically delivered to you. You also understand and agree that checks or copies thereof are made available to you on the date the statement is mailed to you, even if the checks do not accompany the statement. b. Examination. You are in the best position to discover errors or irregularities relating to your account. You are responsible for examining each statement and reporting any such irregularities to us. You agree to exercise reasonable care and promptness in examining your statements and to discover any error or irregularity. You further agree to notify us promptly after any such discovery. Otherwise, the statement, as produced and received, will be deemed to be correct. Moreover, because you are in the best position to discover an error or irregularity with your statement, you agree that we will not be liable for paying any checks if you did not exercise reasonable care in examining the statement or you have not reported the error or irregularity to us within sixty (60) days of the mailing date of the earliest statement on which the error or discrepancy was first identified, or such period as may otherwise be required by law or government regulation. c. Notice of Errors. You agree that the Credit Union s retention of checks and other items 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 of 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. IF YOU FAIL TO DISCOVER AND REPORT THESE OR ANY OTHER ERRORS OR DISCREPANCIES WITHIN THE 60-DAY PERIOD, YOU LOSE ANY AND ALL RIGHTS YOU MAY HAVE TO ASSERT THE ERROR OR DISCREPANCY AGAINST THE CREDIT UNION. 26. Inactive Accounts and Escheat Laws. a. Inactive Accounts. If you have not made any transactions over a period specified in the separate Rates and Fees Schedules, and we have been unable to contact you during that time, we may classify your account as inactive. Unless prohibited by applicable law, we may suspend dividend payments and charge a service fee set forth in the separate Rates and Fees Schedules for processing your inactive account. To the extent allowed by law, we reserve the right to transfer the account funds to an account payable and to suspend any further account statements. b. Escheat. If a deposit or withdrawal has not been made on the account and we have had no other sufficient contact with you within the period specified by applicable state law, the account will be presumed abandoned. We may charge a service fee set forth in the separate Rates and Fees Schedules for processing your abandoned account. Funds in abandoned accounts will be reported and remitted in accordance with applicable state law. Once funds have been turned over to the appropriate state authority, we have no further liability to you for such funds and if you choose to reclaim such funds, you must apply to the Maryland state authority. 27. Termination of Account. We may terminate your account at any time without notice to you or may require you to close your account and apply for a new account if: (1) there is a change in owners or authorized signers; (2) there has been a forgery or fraud reported or committed involving your account; (3) there is a dispute as to the ownership of the account or of the funds in the account; (4) checks, ATM Card, VISA Debit Card are reported lost or stolen; (5) there are excessive returned unpaid items not covered by an overdraft protection plan; (6) there has been any misrepresentation or any other abuse of any of your accounts (including loans) or your relationship with the Credit Union, its staff of volunteers; or (7) we reasonably deem it necessary to prevent a loss to the Credit Union. You may terminate a single party account by giving written notice to us. We reserve the right to require the consent of all owners to terminate a joint account. Any termination of this Agreement, either by us or by you, will not release you from any fees or other obligations incurred before termination and those you incur in the process of closing out your account. We are not responsible for payment of any check, withdrawal, or other item after your account is terminated, however, if we pay an item after termination, you agree to reimburse us. 28. Termination of Membership. You may terminate your membership by giving us written notice. We may deny you services or expel you from Credit Union membership for any reason allowed by applicable law, including causing a loss to the Credit Union. 29. Transfer of Ownership. Accounts are not transferable or assignable by you or any other joint owner(s) except in the books and records of the Credit Union using the Credit Union s approved Account Change forms. 30. Limitations of Services. If we determine that you have abused your accounts or relationship with the Credit Union, we may place your funds in a single non-interest bearing account and/or restrict your means of accessing the funds, e.g. mail only. 31. Death or Incompetence of Account Owner. Neither a member s death nor a legal adjudication of incompetence revokes the Credit Union s authority to accept, pay or collect items until the Credit Union knows of the fact of death or of an adjudication of incompetence and has a reasonable opportunity to act on it. Even with that knowledge, the Credit Union may, for 10 days after the date of death, pay checks drawn by the member on or before the date of the member s death unless ordered to stop payment by a person claiming an interest in the account. We may require anyone claiming a deceased owner s account funds to indemnify us for any losses resulting from our honoring that claim. This Agreement will be binding upon any heirs or legal representatives of any account owner. 32. Disputes Involving this Agreement. You are liable to us for any loss, cost or expense we incur resulting from your failure to follow this Agreement. You authorize us to deduct any such loss, costs or expenses from your account without prior notice to you. If we have adverse claims to the funds in the account, you authorize us to interplead the funds into a court of competent jurisdiction. If we bring a legal action (including arbitration, interpleader or other dispute resolution), to collect any amount due under or to enforce this Agreement, we shall be entitled, subject to applicable law, to payment of reasonable attorneys fees and costs, including fees on any appeal, bankruptcy proceedings, and any post-judgment collection actions. Your signature(s) on the Membership Application, other applicable account applications, or other service applications acknowledges that everything you have stated is correct to the best of your knowledge. You understand that it is a federal crime to knowingly make false or inaccurate statements concerning any requested facts. 33. Taxpayer Identification Numbers and Backup Withholding. Your failure to furnish a correct Taxpayer Identification Number (TIN) or meet other requirements may result in backup withholding. If your account 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 fail to provide your TIN, we may suspend opening your account. 34. Governing Law. The deposit relationship between you and us is governed primarily by this Agreement. It is also governed by our bylaws, Maryland state laws, federal laws, the applicable rules and regulations of the Federal Reserve System, the National Credit Union Administration, certain private agreements, the automated clearing house rules, and the applicable rules and regulations of other regulatory authorities. 35. Severability. If any terms of this Agreement come into conflict with applicable law, those terms will be nullified to the extent that they are inconsistent with the law, and the applicable law will govern. If a court holds any portion of this Agreement to be invalid or unenforceable, 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. 36. Credit Bureau Information. If you feel we have reported inaccurate information to a Credit Bureau, please send a letter stating the information which you believe to be incorrect and the name of the affected Credit Bureau to: FedChoice Federal Credit Union, Willowdale Rd., Lanham, MD You can also fax your dispute to

6 TRUTH-IN-SAVINGS DISCLOSURES AND FEES We pay account dividends and assess fees against your account according to the separate Rates and Fees Schedules. Accounts eligible to earn dividends include: Membership Savings Accounts (Share Account), Secondary Savings and Holiday Club Accounts, Money Market, Checking (depending on account type) and term Certificate Accounts. We may change the types of accounts and the separate Rates and Fees Schedules at any time and will notify you as required by law. 1. Rate Information. The dividend rate and annual percentage yield (APY) information for specific accounts may be found in our separate Rates and Fees Schedules. The Annual Percentage Yield means the percentage rate reflecting the total amount of dividends paid on the account based on the dividend rate and the frequency of compounding for an annual period. Withdrawals will reduce earnings. Fixed rates for accounts with specific maturities remain in effect until maturity. Rates for variable rate accounts are in effect through the period disclosed. The dividend rates and APYs on all share accounts may change as determined by the Credit Union Board of Directors. There is no limitation on the amount or frequency that dividend rates may change. 2. Balance Computation Method. We use the daily balance method to calculate the dividends in your Share, Checking (where applicable), Money Market, Secondary Savings, Holiday Club and term Certificate accounts. This method applies a daily periodic rate to the principal in the account each day during the dividend period. 3. Compounding and Crediting. Dividends are compounded and credited according to the rates published on our website and in the separate Rates and Fees Schedules. Dividends are credited to the account on the last day of the dividend period. 4. Minimum Balance Requirements. The minimum balance requirement to earn dividends for specific accounts may be found on our website and in our separate Rates and Fees Schedules. We may refuse to open an account if the minimum balance requirement is not met and/or charge a fee as noted in the separate Rates and Fees Schedules. 5. Nature of Dividends. Dividends are paid from current income and available earnings, after required transfers to reserves after the end of the dividend period. 6. Fees and Charges. The fees and charges we may assess against your account may be found in the separate Rates and Fees Schedules. We reserve the right to waive any fee. Any such waiver shall not affect our right to future enforcement. 7. Transaction Limitations. The separate Rates and Fees Schedules identify whether your account is subject to a transaction limitation and the applicable limitation. FUNDS AVAILABILITY AND COLLECTION OF CHECKS Regulation CC applies to all financial institutions that maintain transaction accounts (e.g., checking accounts, money market accounts, etc.) as defined in Regulation D. Savings deposits are not considered transaction accounts. Earlier availability schedules may be used and may also extend times when applicable. During the delay, the member may not withdraw the funds in cash and we will not use the funds to pay checks that have been written or other items presented for payment. All funds subject to a delay will continue to accrue dividends. 1. Business Days. For determining the availability of your deposits, every day is a business day except Saturdays, Sundays and most federal holidays. If you make a deposit on a day we are not open or after our cut-off time, your deposit is considered received on the next business day we are open. We have different cut-off times for different deposit locations; these times are available at the Credit Union. The earliest cut-off time that may apply is 1p.m. 2. Same Day Availability. Funds received by FedChoice from the following deposits are available on the same business day the deposit is made: Cash deposited in person to a FedChoice employee. Electronic Payments received for deposit in an account. This includes electronic direct deposit (ACH), wire transfers, including pre-authorized credits, such as Social Security benefits, pensions, and payroll payments. U.S. Treasury Checks deposited in an account held by the payee of the check. Treasury checks deposited at an ATM owned by FedChoice MUST be accorded next-day availability. U.S. Postal Money Orders deposited in person to a FedChoice employee and into an account held by the payee of the money order. Federal Reserve Bank and Federal Home Loan Bank Checks deposited in person to a FedChoice employee and into an account held by the payee of the check. Travelers Checks deposited in person to a FedChoice employee and into an account held by the payee of the travelers checks. State or Local Government Checks deposited in person to a FedChoice employee and into an account held by the payee of the check. Cashier s, Certified or Teller s Checks deposited in person to a FedChoice employee and into an account held by the payee of the check. Checks Drawn on an Account Held by FedChoice deposited in person to a FedChoice employee or at on-premises ATM or night depository box, if the branch or branches involved are in the same state or check-processing region. Payroll Checks deposited in person to a FedChoice employee and meeting certain conditions, i.e. deposited into an account held by the payee(s) of the check, and clearly indicating it is a payroll check (imprinted with word payroll not hand written notes). Special rules apply to accounts opened less than 30 days. When deposits are NOT made in person (e.g., if they are made at an ATM, either owned by FedChoice or not), a two day hold is placed and the first $200 of the deposit is available immediately. 3. Availability of other check deposits. For checks not outlined previously, the first $200 from a deposit of a check will be available on the same business day as the deposit. All checks are considered to be local and the remaining funds from the check will be available on the second business day after the deposit. For example: deposit a $700 check on Monday, $200 is available on Monday and the remaining $500 is available on Wednesday, assuming all days are business days. 4. Delaying Funds Availability. For certain types of deposits, Regulation CC permits FedChoice to delay the availability of funds for a reasonable time, which is generally defined as: One additional business day for on-us checks (totaling two business days); Five additional business days (totaling seven business days) for local checks. FedChoice may enforce longer exception holds, providing that we can prove these holds were reasonable. If we are placing a hold beyond the specified period, we must give the member notice at the time of the deposit explaining why the funds are being held and when they will be available. This information is available on the receipt being presented to the member. If the deposit is not made in person, or if we decide to extend the time when deposited funds will be made available after the deposit has been made, we must mail or deliver the notice to the account holder no later than the first business day after the day of the deposit. For example: deposit made Monday but decide later in day to extend hold. Notice must be mailed by close of business on Tuesday. 5. Exceptions: Longer delays may apply. In the following are examples of acceptable exceptions that may be used to extend a hold on a deposit. Cash deposits and electronic payments are not eligible for exception holds. 6. Exceptions: Large Deposits. If the total deposit of checks exceeds $5,000 in any given day, FedChoice may extend a hold on the deposit. The first $5,000 of a day s deposit is subject to a two day hold and the amount in excess of $5,000 may be held for an additional 6

7 reasonable time period. Deposits of cash, electronic payments and low-risk checks are not subject to the hold. 7. Exceptions: Re-Deposited Checks. FedChoice may extend the check hold schedules for an additional period of time for any check that has been returned unpaid and re-deposited by the account holder or the financial institution. If a check was returned because of a missing endorsement, or if the check was postdated, the regular availability schedule applies. 8. Exception: Repeated Overdrawn Checks. If any account or combination of accounts, of an account holder is repeatedly overdrawn, FedChoice may extend the hold schedules if: On six or more banking days during the previous six months the account had a negative balance, or would have had a negative balance had checks and charges been paid; or On two or more banking days during the previous six months the account balance was negative in the amount of $5,000 or more, or would have been had checks and charges been paid. This exception applies to all checks, as well as to checks that would be made available on the same business day. When a hold is placed under this exception, it is not necessary to make the first $200 of a deposit available for withdrawal on the same business day. 9. Exceptions: Reasonable doubt to collect. FedChoice may hold items if there is reasonable cause to doubt if the check may be collected. The general criteria for doubting whether a check can be collected are the existence of facts that would cause a well-grounded belief in the mind of a reasonable person that the check is uncollectible. The reason for your belief that the item is not collectible must be included in your notice to the account holder. For example: the financial institution where the check is drawn was contacted and advised that funds were not available to cover the check, a stop payment had been placed on the check, or the account is closed. 10. Exceptions: Emergency. FedChoice may place a hold on checks that are deposited during emergency conditions which are beyond its control. Such emergencies are: Natural disasters, Communications malfunctions, War, or Any other situation that prevents FedChoice from processing checks as it normally does. Holds may be placed on funds until a reasonable time period after the emergency has passed. 11. Exception: Notice of Hold. When one of the exceptions is involved, we are required to provide a written notice identifying the reason for the exception hold. The notice must include: the account number, the date of deposit, the amount of deposit, the amount that is delayed, the reason for the exception, and the day that funds will be available for withdrawal (if known). 12. Exceptions: New Accounts. In addition to the exceptions outlined, FedChoice may also protect itself with respect to deposits made to new accounts, or those accounts opened for less than 30 days. The following rules apply to new accounts: Cash and electronic deposits into new accounts must be made available on the same business day. The first $5,000 of in-person deposits into the payee s account of checks drawn on Federal Reserve Banks, Federal Home Loan Banks, and state and local governments, and cashier s, certified, teller, and traveler s checks must be made available on the next business day; the remaining amount must be made available no later than the ninth business day after the deposit. The first $5,000 of deposits into the payee s account of U.S. Treasury checks must be made available on the next business day; the remaining amount must be made available no later than the ninth business day after the deposit. Deposits to new accounts are not subject to any other availability time schedules, or the $200 cash withdrawal requirement. 13. Payroll Checks. If the check being presented is a payroll check, you authorize us to verify the check. This is done by presenting the check with pay stub to an FSC manager or supervisor. The manager or supervisor will then contact the company to confirm that the check being presented is a payroll check. Once the verification is completed, the manager or supervisor must place a comment on the account in Symitar at the Account Level. The comment needs to contain the name of the company, the date and manager s or supervisor s initials. No expiration date is set on the comment. 14. Miscellanous. Under Regulation CC, FedChoice may do the following: Shorten the time periods for funds availability. Accept or reject any check for deposit. Cancel a settlement made by the financial institution and charge back the customer s account. Limit cash withdrawals on any one day from accounts if the limitation is not dependent on the length of time funds have been deposited, applied without discrimination, or related to security concerns. Open facilities and branches, or make them available to account holders at its discretion. Use calculated availability for non-account holder deposits if, on average, the availability is as prompt as the regulation requires. Lastly, records and other evidence of compliance MUST be retained for at least two years. 15. Disclosing Availability Policy. Regulation CC requires that FedChoice disclose our funds availability policies to account holders in the following manner. In a form the account holder can keep. Grouped together with other information but separated from unrelated information. Written in a clear and conspicuous form and stating that the document is our Funds Availability Policy. This information is disclosed in the Account Agreement which is given out with every new account. FedChoice MUST post the availability policy in each location where employees accept deposits, a notice of your availability policy pertaining to accounts. It doesn t have to be posted at each teller station, but it does need to be visible to all account holders making deposits. FedChoice is required to include a notice of funds availability on the front of all pre-printed deposit slips. The notice only has to state that deposits may not be available for immediate withdrawal. 16. Initial Disclosure Statement. The initial disclosure statement must be given to the account holder prior to opening an account and must reflect and summarize FedChoice s funds availability policy. It must describe the following: The categories of deposits or checks when availability is delayed; FedChoice s business days and when a deposit is considered to be received; Any exceptions that may be enforced, when the funds will be made available, and how the account holder will be notified; How to differentiate between a non-proprietary and proprietary ATM; and When delays may occur and how the account holder will be notified. 17. Additional Requirements. Notices will be posted at Credit Union ATMs stating that funds may not be available for immediate withdrawal. At off-premise ATMs (when deposits are not removed more than two times a week) FedChoice will post a notice at or on the ATM which discloses the days on which deposits made at the ATM will be considered received. Upon request, FedChoice will 7

8 provide any person with an availability disclosure. Prior to changing our availability policy, FedChoice will provide a notice to all affected account holders at least 30 days prior to the change. If the change expedites the availability of funds, the notice may be given within 30 days after the change takes place. ELECTRONIC FUND TRANSFER AGREEMENT AND DISCLOSURE This Agreement governs the application and use of our Electronic Fund Transfer (EFT) Services. This includes the use of your Credit Union ATM card or VISA Debit Card and your personal identification number (PIN) to make transfers at any ATM or merchant point-of-sale (POS) that is accessible by your ATM Card or VISA Debit Card (collectively the Card ); your Audio Response Secret Access Code (Code) to make transfers through a touch-tone telephone; your PIN to make transfers through ebanking personal computer home banking; mobile banking and automatic electronic deposits and pre-authorized debits to your account. You agree that these agreements, rules and regulations applicable to your share accounts, checking accounts and any other accounts you may have with us remain in effect and continue to be applicable, except as specifically modified by this portion of the Membership and Account Agreement Including Disclosures. 1. Types of EFTs. An EFT means any electronic transfer of funds into or out of your account that is not initiated by paper check. An EFT includes the following types of transfers: a. Pre-authorized EFTs. A pre-authorized transfer means an EFT you have authorized in advance to recur at substantially regular intervals. Pre-authorized EFTs include the following types of transactions: Direct deposit to your account of Federal recurring payments, including Social Security and payroll deposits from both Federal and private employers. Direct debits to your account from third parties by electronic means, e.g., recurring bill payments such as insurance, utilities, etc. b. Other Electronic Access to Your Account. You may use your Code, your ATM Card and/or your VISA Debit Card to: Make deposits to your share and checking accounts.* Withdraw funds from your share and checking accounts. Transfer funds from your share and checking accounts. Obtain balance information for your share and checking accounts. Make loan payments from your share and checking accounts. Access your overdraft loan account (line of credit). Make POS transactions with your VISA Debit Card and PIN (Personal Identification Number) to purchase goods or services at merchants that accept VISA Debit Card. (Cash back on purchases may also be available with merchants or other financial institutions that allow this option). Order goods or services by mail or telephone from places that accept VISA Debit Card. *Service is not available at all ATMs. c. Telephone Service (Audio response). You may access your account(s) by touch-tone telephone 24-hours per day. Telephone Service is an audio response system for accessing your accounts. Select your own Secret Access Code. You must use your Code along with your account number to access your accounts. Following are a few examples of the account information and transactions available to you when you use Audio Response: There is no limit to the number of inquiries or transactions you may make within a 24-hour day. There is no transaction fee for using Audio Response. (Although service fees may apply to specific transactions). See the separate Rates and Fees Schedules. Transfer funds between share accounts (Holiday Club and Individual Retirement Arrangement Accounts (IRAs) may only receive deposits no withdrawals). Transfer funds to make payments on your FedChoice loans. Obtain balance information for your share accounts. Determine if a particular check or debit has cleared and been paid against your account. Obtain tax information on amounts earned on share and checking accounts or interest paid on loan accounts. Verify the last date and amount of your payroll deposit or other deposits. Place stop payments on outstanding checks. (See the separate Rates and Fees Schedules for applicable fees.) Request copies of paid items. (See the separate Rates and Fees Schedules for applicable fees.) d. ebanking Personal Computer and Mobile Banking Electronic Fund Transfers (PC access). Your accounts can be accessed under our PC access service. If we approve PC access for your accounts, EFT service will be available for your convenience 24-hours per day. You must select and use your access code along with your username and any other security feature we require to access your accounts. We reserve the right to refuse any transaction which would draw upon insufficient funds, exceed a credit limit, lower an account below a required balance, or otherwise require us to increase our required reserve on the account. All check requests initiated through PC access are payable to the first named member on the account and will be mailed to the address of record. We reserve the right to set other limits or set dollar amount limits on any transaction. The service will discontinue if no transaction is completed after numerous unsuccessful attempts to enter a transaction. There may be limits on the duration of each access. e. Bill Payment (via ebanking or Mobile Banking). We will process bill payment transfer/requests for creditors you authorized and for whom the Credit Union has the proper vendor code number. We will withdraw the designated funds, if the funds are available from your checking account. You must allow sufficient time for vendors to process your payment after they receive a transfer from us. Please leave as much time as though you were sending your payment by mail. We do not guarantee the time that any payment will be credited to your account by the vendor. (See the separate Rates and Fees Schedules for applicable fees). We agree to use ordinary care when making your bill payments. We do not guarantee a payment initiated by you will be received, processed and posted by a vendor in time to avoid late fees. 2. Electronic Fund Transfer Limitations. a. Limitation on Frequency of Transfers. For share savings and money market accounts you may make up to six (6) pre-authorized, automatic, telephonic, ebanking, mobile banking or audio response transfers to another account of yours or to a third party during any calendar month. Of these six, you may make no more than three (3) transfers to a third party by check or debit card. You may make unlimited in-person transfers from your share savings and money market account to any of your other Credit Union accounts or to any Credit Union loan account and you may make withdrawals in person, or by mail, or at an ATM. We may refuse or reverse a transfer that exceeds these limitations and may assess fees against, suspend or close your account when you exceed these limits. b. Limitation on Dollar Amount of Transfers. The following limitations on the amount of ATM transactions may apply: You may transfer up to the available balance in your accounts at the time of the transfer. There is a maximum withdrawal limit of $500 per account, in cash withdrawals at ATMs per 24-hour day - using any combination of ATM and VISA Debit Card. There is a maximum of $1,000 withdrawal limit, per account, per 24-hour day at POS. 3. Conditions of Service. a. Ownership of Cards. Any Card or other device that we supply to you is the Credit Union s property and must be returned to us, or to any person whom we authorize to act as our agent upon request. The Card may be canceled at any time at our sole discretion without demand or notice. You cannot transfer your Card or account to another person. 8

9 b. Honoring the Card. Neither we, nor merchants authorized to honor the Card, will be responsible for the failure or refusal to honor the Card or any other device we supply to you. If a merchant agrees to give you a refund or adjustment, you agree to accept a credit to your account in lieu of a cash refund. c. Security of Access Code. The access codes issued to you are for your security purposes. Any codes issued to you are confidential and must not be disclosed to anyone or recorded on or with the Card. Credit Union employees do not have access to your Code or PIN. You are responsible for safekeeping your access codes. You agree not to disclose or otherwise make your access codes available to anyone not authorized to sign on your accounts. If you authorize anyone to use your access codes that authority shall continue until you specifically revoke such authority by notifying the Credit Union. If you fail to maintain the security of these access codes and the Credit Union suffers a loss, we may terminate your EFT services immediately. 4. Fees and Charges. There are no charges for any ATM or VISA Debit Card transactions performed at FedChoice owned ATM machines (proprietary machines). Please refer to the separate Rates and Fees Schedules for all applicable account related fees and service costs. 5. Member Liability. a. All Electronic Transfers. Tell us AT ONCE if you believe your Card, Code or PIN has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account plus your maximum overdraft line of credit. For your ATM Card, if you tell us within two (2) business days from the date discovered, you can lose no more than $50 if someone uses your Card, Code or PIN without your permission. Also, if your statement shows transfers that you did not make, tell us at once. If you do not tell us within sixty (60) days after the first statement was mailed or electronically delivered to you, you may not get back any money you lost after the sixty (60) days if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason (such as a long trip or hospital stay) prevented you from notifying us, we will extend the time period. b. Additional Terms for VISA Debit Card. Unless you have been grossly negligent or have engaged in fraud, you will not be liable for any unauthorized transactions using your lost or stolen VISA Debit Card. VISA Debit Cards may be used only for legal purposes. c. Change to Foreign Currency Conversion Rate. When you use a VISA branded credit/debit card at a merchant that settles in currency other than US dollars, the charge will be converted into the US dollar amount. The currency conversion rate used to determine the transaction amount in US dollars is either: A rate selected by VISA from the range of rates available in wholesale currency markets for the application central processing date, which rate may vary from the rate VISA itself received; or The government mandated rate in effect for the applicable central processing date; In each instance, plus 1%. The conversion rate in effect on the processing date may differ from the rate in effect on the transaction date or posting date. d. Contact in Event of Unauthorized Transfer. If you believe your ATM Card or VISA Debit Card has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, please call us immediately at: Business weekdays 8:30 am 4:00 pm Eastern Standard Time except Wednesdays, 9:30 am 4:00 pm. The 24-hour number to report your VISA Debit Card lost or stolen is or write to: FedChoice Federal Credit Union ATTN: e-commerce Dept Willowdale Road, Lanham, MD e. Non-VISA Network Transactions. Transactions may be processed through a non-visa network without any notice or option to you. These networks may include STAR, Accel/Exchange, CU24 or CO-OP. Transactions processed through these networks are not covered by VISA s Zero Liability Policy and you may be responsible for no more than $50 in transactions. 6. Billing Errors. In case of errors, questions or if you believe your statement is wrong or if you need more information about an electronic transfer listed on a statement or receipt, please telephone us at or send a written notice to the address shown below as soon as possible. We must hear from you no later than sixty (60) days after we have sent the FIRST statement on which the problem or error appeared. (If you tell us orally, we may require that you send us your complaint or question in writing within ten (10) business days of the initial telephone contact). Please call immediately (Weekdays 8:30 am 4:00 pm Eastern Standard Time, Wednesdays 9:30 am 4:00 pm, except holidays) or write: FedChoice Federal Credit Union ATTN: e-commerce Dept Willowdale Road, Lanham, MD (1) Please provide us with your name and account number. (2) Describe the error or transfer you are unsure about, and explain as clearly as you can why you believe that the Credit Union has made an error or you need additional information. (3) Tell us the dollar amount of the suspected error. We will determine whether an error occurred within ten (10) business days after we hear from you or (5) business days for VISA Debit Card POS transactions. We will correct any error promptly. If we need more time, however, we may take up to forty-five (45) days to investigate your complaint or question. If we decide that additional research is needed, we will credit your account within ten (10) business days or five (5) business days for VISA Debit Card POS transactions for the amount you believe is in error, so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within ten (10) business days, or five (5) business days for VISA Debit Card POS transactions we may not credit your account. We will provide you with the results of our investigation within three (3) business days of completion. If we decide that no error occurred, we will send you a written explanation. You may ask for copies of documentation that we used in our investigation. If you have online bill payment services, we can only confirm the amount, the participating merchant, and the date the bill payment transfer posted to your account. For any other error or question you have regarding the billing statement of a participating merchant or service provider, you must contact the merchant directly or the bill payment service provider at We are not responsible for investigating such errors. 7. Business Days and Hours. For purposes of these EFT disclosures, our business days and hours of operation are Monday through Friday, 8:30 am 4:00 pm Eastern Standard Time; except Wednesdays 9:30 am 4:00 pm, excluding holidays (hours may vary at Financial Service Center locations). 8. Documentation. a. Periodic Statements. You will receive a statement monthly unless there is no transfer in a particular month. In any case, you will receive a statement at least quarterly unless the account has become inactive or dormant. b. Terminal Transfers. You will either automatically receive a receipt or will be given the option to receive a receipt at the time you make a transfer to or from your account at an ATM or POS terminal. c. Pre-authorized Credits. If you have arranged to have a direct deposit made to your account at least once every sixty (60) days from the same person or company, you can find out whether or not the deposit has been received by the Credit Union by calling audio response at or the Financial Advisory Center at This procedure does not apply to transactions outside the United States. 9

10 9. Credit Union s Liability for Failure to Make Transfers. If we do not complete a transfer to or from your account on time or in the correct amount according to our agreement with you, we may be liable for your losses or damages. However, there are some exceptions. We will not be liable, for instance: If, through no fault of ours, you do not have enough money in your account to make the transfer. If the transfer requires use of uncollected funds, as described in our Funds Availability Policy. If the transfer involves a loan request exceeding your credit limit. If you use your ATM Card, VISA Debit Card or Code in an incorrect manner. If circumstances beyond our control (such as fire, flood, or power failure) prevent the transfer. If the money in your account is subject to legal process or other claim. If funds in your account are pledged as collateral or frozen because of a delinquent loan with us. If the error was caused by a system failure of any participating ATM or VISA network. If the electronic transfer is not completed as a result of your willful or negligent use of your ATM Card, VISA Debit Card, Code, or any EFT facility you use for making such transfers. If the ATM, POS terminal, telephone or computer equipment you used to make the transfer was not working properly and you knew about the breakdown when you started the transfer. Any other exceptions as established by the Credit Union. 10. Pre-authorized Payments Right to Stop Payment. Members have a right to stop payments. If you have told us in advance to make regular payments by pre-authorized Electronic Fund Transfer out of your account(s), you may stop these payments by calling us at or writing to: FedChoice Federal Credit Union ATTN: Financial Advisory Center Willowdale Road, Lanham, MD You must notify us at least three (3) business days before the payment you want to stop is scheduled to be made. If you call, we will also require you to put your request in writing and to get it to us within fourteen (14) days after you call. If we do not receive your written confirmation; the oral stop payment order shall cease to be binding fourteen (14) days after it has been made. Once placed, a stop payment does not have an expiration date and can only be reversed by an account owner with a written authorization, requesting the reversal of the original stop payment. FedChoice is authorized to impose a service charge and the member agrees to pay a service charge for placing this request in conformance with the ACH Stop Payment Request fees as reflected in the Credit Union s separate Rates and Fees Schedules. The member and FedChoice agree to abide by the ACH rules and regulations regarding Stop-Payment Orders. 11. Confidentiality. We will disclose information to third parties about your account or the transfers you make: Where it is necessary for completing transfers, or In order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant, or If you give us your written permission. In case of lost or stolen Cards, unauthorized transfers, stop payments, billing errors or questions, contact FedChoice: Weekdays 8:30 am 4:00 pm Eastern Standard Time, Wednesdays 9:30 am 4:00 pm (excluding holidays). The 24-hour number to report your VISA Debit Card lost or stolen is , or write to: FedChoice Federal Credit Union ATTN: Card Services Willowdale Road, Lanham, MD NOTICE OF ATM/NIGHT DEPOSIT FACILITY USER PRECAUTIONS As with all financial transactions, please exercise discretion when using an automated teller machine (ATM) or night deposit facility. For your own safety, be careful. The following suggestions may be helpful. Be aware of your surroundings, particularly at night. Consider having someone accompany you when the ATM or night deposit facility is used after dark. If another person is uncomfortably close to you at the time of your transaction, ask the person to step back before you complete your transaction. Refrain from displaying your cash at the ATM or night deposit facility. As soon as your transaction is completed, place your money in your purse or wallet. Count the cash later in the safety of your car or home. If you notice anything suspicious at the ATM or night deposit facility, consider using another ATM or night deposit facility or coming back later. If you are in the middle of a transaction and you notice something suspicious, cancel the transaction, take your Card or deposit envelope, and leave. If you are followed after making a transaction, go to the nearest public area where people are located. Do not write your PIN or Access code on your ATM Card or VISA Debit Card. Report all crimes to law enforcement officials immediately. COURTESY PAY DISCLOSURE Courtesy Pay is a service which our members must affirmatively opt-in to receive the benefit of and which allows us to pay an item written on a member s checking account even if it causes the account to become overdrawn. If the account has been open at least 60 days and maintained in good standing, defined as A) Making regular deposits sufficient to cover transactions; B) Bringing the account to a positive balance at least once every 30 days or less, and; C) There are no legal orders outstanding on your account, we may, at our sole discretion, pay overdrafts up to the limits mentioned above, including our normal Courtesy Pay charge(s). Whether we pay or return an item, your account will be assessed a fee, either as a Courtesy Pay charge or a Non-Sufficient Funds charge but you will not be charged both fees. Courtesy Pay offers additional flexibility and convenience in managing accountholder funds, and provides peace of mind knowing that items may be paid up to the authorized overdraft limit of $500. Please note that Courtesy Pay coverage is secondary for those members who have an Overdraft Line-of-Credit or Instant Access and/or established share transfers to cover presented items. Participation in the Courtesy Pay program requires the accountholder to opt-in for the service. It is not a loan. No additional agreements need to be signed provided that the member does need to provide his or her affirmative opt-in to the service and it costs nothing unless the privilege is used by initiating check presentment, Electronic Fund Transfers, or other payment or withdrawal requests for more than is on deposit in the account. If you maintain the account in good standing and have need for this courtesy, we may, at our sole discretion, pay the item(s) up to the authorized limit, and we will charge the account our normal Courtesy Pay overdraft fee for each item that overdraws the account. Fees for Courtesy Pay are set forth in the separate Fee Schedule. Courtesy Pay allows FedChoice to provide a higher level of service to our members by helping to protect your account and reputation when an inadvertent overdraft occurs. If you have questions, do not hesitate to call our Financial Advisory Center at FedChoice Federal Credit Union / Revised June