Marine Federal Credit Union BUSINESS MEMBERSHIP AGREEMENT

Transcription

1 Marine Federal Credit Union BUSINESS MEMBERSHIP AGREEMENT INTRODUCTION ACCOUNT AGREEMENT FOR BUSINESS ACCOUNTS ACCOUNT AGREEMENT FOR CERTIFICATE ACCOUNTS CREDIT UNION BUSINESS CARD AGREEMENT UNIFORM COMMERCIAL CODE FUNDS TRANSFERS AGREEMENT AND DISCLOSURE FUNDS AVAILABILITY ELECTRONIC RECORDS, ELECTRONIC MAIL, FACSIMILE AND OTHER ELECTRONIC SERVICES AND COMMUNICATIONS ELECTRONIC FUNDS TRANSFER AND AGREEMENT PRIVACY NOTICE Notice to Members: The laws and regulations governing the financial services we provide are complex. To insure your understanding of our relationship with you, we provide this detailed agreement which explains both your responsibilities and ours. Please read this document carefully, and feel free to ask any questions regarding these terms and conditions. BINDING ARBITRATION: EXCEPT AS SPECIFICALLY PROVIDED HEREIN, THIS ARBITRATION PROVISION SUBSTANTIALLY LIMITS YOUR RIGHT TO BRING A LEGAL ACTION IN A JUDICIAL FORUM (EXCEPT FOR MATTERS THAT MAY BE BROUGHT IN SMALL CLAIMS COURT AS SET FORTH HEREIN). PLEASE READ THIS SECTION CAREFULLY. THE PARTIES WILL NOT HAVE A RIGHT TO HAVE A JUDGE OR JURY DECIDE ANY CLAIM OR DISPUTE; AND THE ABILITY TO APPEAL IS LIMITED IN AN ARBITRATED MATTER HEREUNDER. ANY DISPUTES WILL BE DECIDED BY A NEUTRAL ARBITRATOR. FURTHER, NEITHER PARTY NOR ANYONE OF THEIR BEHALF CAN PURSUE ANY CLAIM OR DISPUTE IN ANY CLASS OR REPRESENTATIVE CAPACITY. IT IS THE INTENT OF THE PARTIES HERETO TO PROVIDE A FUNDAMENTALLY FAIR AND LESS COSTLY FORUM TO ADDRESS ANY DISPUTES BETWEEN THE PARTIES; AND THE PARTIES SPECIFICALLY AGREE TO THIS ALTERNATIVE METHOD OF DISPUTE RESOLUTION AS AN INTEGRAL PART OF THE RELATIONSHIP BETWEEN THE PARTIES. SEE PAGES OF THE ACCOUNT AGREEMENT SECTION FOR COMPLETE DETAILS. 1

2 Table of Contents INTRODUCTION... 4 ACCOUNT AGREEMENT FOR BUSINESS ACCOUNTS... 4 ACCOUNTS AND SERVICES FOR BUSINESS PURPOSES... 4 DEPOSITS TO YOUR ACCOUNT... 4 WITHDRAWALS FROM YOUR ACCOUNT... 6 CHECK PRESENTMENT... 7 FACSIMILE SIGNATURES... 7 TRANSACTION LIMITATIONS... 7 STOP PAYMENTS... 8 USE OF CHECK IMAGES AND SUBSTITUTE CHECKS... 8 LIMITATION ON HIGH SPEED CASH LETTERS... 9 DIVIDENDS... 9 STATEMENTS INACTIVE ACCOUNTS ADVERSE CLAIMS TO FUNDS IN YOUR ACCOUNT MONEY OWED CHANGE IN ACCOUNT INFORMATION TRANSFER OF OWNERSHIP DEATH OF SOLE PROPRIETOR CHARGES TO YOUR ACCOUNT CLOSING YOUR ACCOUNT DISCLOSURE STATEMENTS OUR STANDARD OF CARE OTHER SERVICES AMENDMENT, WAIVER SEVERABILITY WAIVER OF JURY TRIAL GOVERNING LAW MANDATORY ARBITRATION OF DISPUTES AND CLAIMS COSTS, EXPENSES, AND ATTORNEYS FEES INDEMNITY

3 ACCOUNT AGREEMENT FOR CERTIFICATES TERM CERTIFICATE SHARES (Certificate Shares and IRA Certificates) CREDIT UNION BUSINESS CARD AGREEMENT I. DEFINITIONS II. TYPES OF AVAILABLE TRANSFERS AND LIMITS ON TRANSFERS III. LIMITATION OF LIABILITY IV. GENERAL PROVISIONS UNIFORM COMMERCIAL CODE FUNDS TRANSFERS AGREEMENT AND DISCLOSURE FUNDS AVAILABILITY POLICY FOR BUSINESS CHECKING ACCOUNTS ELECTRONIC RECORDS, ELECTRONIC MAIL ( E Mail ), FACSIMILE AND OTHER ELECTRONIC SERVICES AND COMMUNICATIONS ELECTRONIC FUNDS TRANSFERS AGREEMENT AND DISCLOSURES PRIVACY NOTICE

4 INTRODUCTION This Booklet and the Rate and Fee Schedule ("Schedule") explain the rules which govern your account(s) and account services with us. Please read this Booklet and the Schedule carefully and keep them in a safe and convenient place. Special Note: Your relationship with the Credit Union is also governed by state and federal laws, which may change from time to time. The body of law is too large and complex to be reproduced here. The purpose of this Booklet is to: (1) summarize the rules applicable to common Transactions; (2) establish rules to govern Transactions not regulated by state or federal law; (3) establish variations that will apply to certain rules, events or Transactions as permitted by applicable law; and (4) provide you with certain disclosures and information regarding our policies as required by law. By signing a Membership Application and Signature Card or your use or continued use of any account or account services after receiving this Booklet, notice of its availability or notification of any change in terms, you, jointly and severally, agree that you understand and agree to the terms and conditions stated in this Booklet, and the Schedule, as amended from time to time. ACCOUNT AGREEMENT FOR BUSINESS ACCOUNTS The terms and conditions of this Account Agreement for Business Accounts ( Agreement ) apply to all Marine Federal Credit Union business accounts. You have agreed by signing the Membership Account Card and/or by using your account on or after the opening date, to be legally bound by the terms of this Agreement. You should keep a copy of this Agreement and anything else we send to you about your account for your records. When used in this Agreement, the terms you and your refer to your business or its Authorized Users; the terms we, our, and Credit Union refer to Marine Federal Credit Union. The term Account(s) refers to your Marine Federal Credit Union business deposit account(s). The purpose of this Section is to state the terms and conditions that apply to all of your accounts, account services or other relationships with us, including without limitation loan, safe deposit and other services. You understand that the agreements, terms, conditions, rules and regulations applicable to your loans, and any other applicable account(s) or service(s) remain in full force and effect and continue to be applicable, except as specifically modified by this Agreement. Further, except as expressly stated below in regard to third party service providers, to the extent that the terms of a specific Subsection of this Agreement vary from the terms set forth in this Section, the specific terms and conditions of the Subsection will govern our relationship with you. Transactions on your account may also be governed by agreements with third parties such as NACHA s (The National Automated Clearing House Association) Operating Rules, which agreements will also be binding upon you and the Credit Union. To the extent that the terms of any such third party agreements provide for specific processing, reporting or other time periods, or require you to make any claims or provide any notifications or responses, then the third parties requirements and rules shall govern despite any other general or specific terms or conditions set forth in the entirety of this Agreement. ACCOUNTS AND SERVICES FOR BUSINESS PURPOSES You represent, warrant and guaranty that all accounts and/or other services, including any particular transaction shall be for commercial use, and no service or transaction shall otherwise be used for any consumer, household or family purpose whatsoever. DEPOSITS TO YOUR ACCOUNT You may make deposits in any amount to your Account during normal business hours at any Marine Federal Credit Union branch or by mail. Please use the preprinted deposit slips provided to you. If the service is available, you may also make deposits by automatic transfers from other accounts, by telephone transfer, or at an automated teller machine ( ATM ) that accepts Marine Federal Credit Union deposits. The law allows and you specifically agree that we may supply any missing endorsement to a deposited check, draft, or any other instrument. However, we reserve the right to refuse to accept for deposit any item which does not bear a proper endorsement, which is payable to someone other than you or, in our sole discretion, under any 4

5 other circumstances. Federal law specifies locations on checks for your and our respective endorsements. If our endorsement is illegible because you have endorsed a check in the wrong location, you will be liable for any resulting losses. Multiple Payees. Unless any check, share draft or other instrument expressly indicates that the item is payable to conjunctive payees, the instrument shall be deemed payable in the alternative. If there is any ambiguity, the instrument shall be deemed payable in the alternative (example: a check payable to "A and B" is a conjunctive instrument. A check payable to "A or B;" "A, B;" "A/B", where "A and B are listed on separate lines;" or otherwise, where not expressly conjunctive are payable in the alternative). We may refuse to cash a check made payable to you, but instead require you to deposit the check to your Account. All deposits accepted by us are subject to verification. You should retain your copy of any receipt or other document which evidences your deposit. If you claim that a deposit was not properly credited to your Account, we may ask you to show us your receipt or other document which evidences your deposit. You should not mail cash deposits. We will not be liable for any deposit that we do not receive. We reserve the right to make adjustments to your Account upon verification of your deposit or for computation or other errors related to your Account. All non cash deposits are posted to your Account subject to our receipt of final payment from the party on which the item is drawn. If we receive notice that an item is being returned to us unpaid, or if we do not receive final payment on a deposited item, because, for example, the drawer has placed a stop payment or the item is returned insufficient funds or account closed; or if an item is returned after final payment, we will charge your Account for the amount of the item, for any dividends carried on the item and for our applicable charges, even if the amount of the item has already been made available to you and even if we do not actually receive the returned item. If the charge back of a returned item or a fee or other charge creates an overdraft, you agree to pay us the amount of the overdraft immediately, and we may charge your Account a service charge for the overdraft. We receive final payment for deposited items at different times depending on the location of the parties who will pay the items. In addition, our receipt of final payment may be delayed further due to circumstances beyond our reasonable control. For more information, please see our Funds Availability Policy, which is incorporated herein which may be amended from time to time. If we must pay any fees to collect an item you have deposited, we will charge the fees to your Account and we may impose a service charge for the collection. If you receive a credit to your Account through the Automated Clearing House (ACH) network, the rules of the National Automated Clearing House Association permit us to notify you of the credit on your next regular Account statement. If we credit your Account for an automated clearinghouse credit entry or for any other fund transfer or payment order ( fund transfer ), the credit we give you is provisional until we receive final settlement for the fund transfer through a Federal Reserve Bank. If we do not receive final settlement or payment, you agree that you must refund to us the amount we credited to you for the fund transfer and that we may charge your Account for such amount. In such case, the person making the payment to you will be considered not to have paid you the amount of the fund transfer. When we process incoming fund transfers, we rely on the account numbers given to us by the financial institutions or other persons who send the fund transfers to us. We will have no duty to determine if the account numbers provided to us is consistent with the name or other information given to us and we will not be liable to you if we credit a fund transfer intended for you to another member s account because the sender instructed us to credit an incorrect account number. We reserve the right to refuse or to return all or part of a deposit at any time. You acknowledge and agree that your deposit or issuance of a check that uses check form or stock with decorative graphics, or that has ink colors other than black or blue, or your use of check stock other than Credit Union provided or approved check stock, may result in errors in processing a check image created from such a check. You agree that, to the extent permitted by law, we shall have no liability to you in the event that you incur a loss from such errors. You agree that you shall not deposit, without our express written consent, a document that you or someone on your behalf created or printed from an image or other electronic record of an original paper check (a substitute 5

6 check document ). Our acceptance for deposit of a substitute check document from you shall not be deemed as a waiver of the foregoing prohibition on the deposit of substitute check documents. You also shall not identify us as a reconverting bank or truncating bank on a substitute check document you deposit at any other financial institution or transfer to any other person. You hereby agree to indemnify us for any loss that we incur directly or indirectly from your deposit or transfer of a substitute check document in violation of the limitations set forth in this paragraph. For checking accounts, you understand that when paid, your original check (or any substitute check) becomes property of the Credit Union and may not be returned to you. We have no obligation to retain the originals of any checks or other documentation. You agree to keep a copy of your original check in order to verify its validity. If you request us to provide you with an original check or sufficient copy, you agree that we may provide an electronic image of the original check or sufficient copy if you have agreed to receive account information or statements electronically. Further, the Credit Union may charge you a fee as set forth in the Business Truth in Savings for each requested item and /or for research as applicable. WITHDRAWALS FROM YOUR ACCOUNT Money may be withdrawn from your Account in different ways, as permitted for each type of Account. We are required to permit a withdrawal only if you have sufficient available funds in your Account to cover the entire amount of the withdrawal, and you are not in default under any obligations you owe to us. Checks or other debit items presented against insufficient or available funds are subject to a service charge. If there are sufficient funds to cover some but not all of your withdrawal orders, we will honor those withdrawals which can be paid, in any order convenient to us. If, in our sole discretion, we permit withdrawals for which there are not sufficient available funds, or you otherwise overdraw the available funds in your Account, you agree to repay us immediately the funds advanced to you. We will assess your Account a service charge, and we may also assess your Account a charge, which will be separately disclosed to you, each day on the amount of the overdraft. At no time shall we be required to allow you to overdraw your Account, even if we allowed such activity on one or more previous occasions. We strongly suggest that you date checks with a current date. WE WILL NOT BE LIABLE TO YOU FOR PAYING CHECKS WHICH ARE POST DATED, STALE DATED (OLDER THAN SIX MONTHS) OR DO NOT BEAR A DATE. If you do not wish us to pay a check you have issued, you must place a stop payment order with us and renew it every six months. (Please refer to the Stop Payment section of this Agreement). You may stop payment on a preauthorized electronic funds transfer in accordance with the procedures described in our Electronic Funds Transfer Disclosure, which is incorporated herein and which may be amended from time to time. You agree to use only check forms supplied or approved by us, and we will have no duty or liability whatsoever where you choose to use other items. Our duty is to use ordinary care in examining checks when they are presented to us for payment. UNLESS WE HAVE SPECIFICALLY AGREED WITH YOU IN WRITING, OUR DUTY WILL NOT INCLUDE MONITORING NONSTANDARD INSTRUCTIONS OR OTHER LEGENDS APPEARING ON CHECKS. We shall be deemed to have exercised ordinary care if we process your checks only by automated means or if any unauthorized signature, counterfeit check, or alteration could not be detected by a reasonably careful examination of the item. You agree that we do not have to notify you if we refuse to pay a check you have written, if we pay a check that overdraws your Account, or if we impose a fee in connection with either of these events. If you make withdrawals by check, the check must be properly completed and signed by the person(s) whose authority is on file with us. We may refuse to honor a withdrawal if we receive conflicting instructions from two or more Authorized Users or if there is reasonable doubt as to who is authorized to make a withdrawal. We reserve the right to refuse to cash or to impose a charge on anyone who asks us to cash a check that you have written. Even if your check is otherwise properly payable, we will not be liable to you for dishonor of your check, or otherwise, as a result of such refusal. 6

7 CHECK PRESENTMENT Your Account may be debited on the day an item is presented by electronic or other means, or at an earlier time based on notification received by us that an item drawn on your account has been deposited for collection in another financial institution. A determination of your account balance for purposes of making a decision to pay or return an item or debit due to insufficiency of available funds may be made at any time between the receipt of such presentment or notice and the time of payment or return of the item or debit, and no more than one such determination need be made. FACSIMILE SIGNATURES If you choose to use facsimile signatures, you agree that: (1) It is impossible for us to determine whether or not a facsimile signature is genuine; (2) We may honor any and all checks, drafts or other orders for the payment or withdrawal of money bearing or appearing to bear an authorized facsimile signature, even if the facsimile signature was made by an unauthorized person or the item on which a facsimile signature appears is itself a counterfeit item, or the facsimile signature is counterfeit. (3) You assume full responsibility and will indemnify us for all items paid over a forged or unauthorized facsimile signature. TRANSACTION LIMITATIONS In accordance with applicable law, we reserve the right to require you to provide written notice of any intended withdrawals from any account(s) of not less than seven (7) but not more than sixty (60) days before the intended date of withdrawal. Withdrawals will only be permitted if you have sufficient funds available in your account to pay the full amount of your withdrawal orders or you have an overdraft protection plan. If there are sufficient funds to cover some but not all of your withdrawal orders, we may permit those for which there are sufficient funds in any order we choose. We may refuse to allow a withdrawal, and will advise when required by applicable law if; for example: (1) there is a dispute between account owners; (2) a legal garnishment, attachment or levy is served on us; (3) the account(s) secures any obligation owed to us; (4) any required documentation has not been provided to us; or (5) you are delinquent or fail to pay a loan or any other obligation owed to us when due. In addition to the foregoing if any person should instruct the Credit Union to make a large cash withdrawal (the definition of which shall be within the Credit Union s sole discretion) in lieu of other methods of transferring funds offered by the Credit Union, the Member hereby releases the Credit Union from any and all liability, claims and demands whatsoever which arise from or in any way relate to the Member s possession of any large sums of cash from the moment possession of same is made available to the Member; and Member will execute and deliver any further releases the Credit Union may require in connection with any such withdrawal. You may make unlimited withdrawals or transfers by mail, ATM (if available) or in person from non transaction shares (such as savings, money market, etc). You may not, however, make more than a total of six transfers to other accounts or to third parties during each monthly statement period when these are made by pre authorized or automatic agreement or telephone transfer. We reserve the right to prevent transfers which exceed the above limits or to monitor these transactions after they occur. When we observe that the number of transactions exceeds the above limits, we will contact you for corrective action. If excessive transactions continue to occur, we reserve the right to close your Account or convert it to an Account without transfer limitations. Transaction Limitations and the Credit Union's Business Days. Except as may be otherwise specifically provided in our Agreements, all Transactions after our "daily cut off time" and made on days that are not our business days as set forth in the Schedule will be treated, transmitted, recorded, etc., as applicable and appropriate as if received on the next business day that we are open. Deposits, orders, instructions, requests, etc., received by mail, electronically, at an unstaffed facility, or outside depository will be processed and credited only when actually received by us, and we shall have no responsibility until we actually receive the item. 7

8 STOP PAYMENTS You may stop payment on a withdrawal order or on any check, except for cashiers checks, official checks or other cash equivalent items. We must receive your stop payment order at a time and in a manner which give us a reasonable opportunity to act on it prior to payment of the item. A STOP PAYMENT ORDER IS EFFECTIVE FOR SIX (6) MONTHS FROM THE DATE THE ORDER IS RECEIVED AND MAY BE RENEWED FOR ADDITIONAL SIX MONTH PERIODS. We will accept stop payment orders issued by any person with signing authority on your Account, regardless of who initiated the check or other withdrawal order, and even if more than one signature is required on a check or withdrawal order. Stop payment orders are subject to our current charge for that service. You may place a stop payment order at any branch office, by calling us at the telephone number on your statement, by writing to us at the address shown on your statement, or by any other notice method we agree to honor. We will request information about the check or other withdrawal order to be stopped, which may include: Account number Name of party to be paid Amount Date Check number Your name and address STOP PAYMENT ORDERS ARE PROCESSED BY COMPUTER. UNLESS THE AMOUNT OF THE ITEM AND OTHER INFORMATION ARE REPORTED ABSOLUTELY ACCURATELY, WE CANNOT ASSURE YOU THAT THE ITEM YOU WANT STOPPED WILL NOT BE PAID. In the event that we inadvertently pay an item over your valid stop payment order, we may refuse to re credit your Account if you owed the money to the payee(s). You will be required to provide evidence satisfactory to us of the amount of your loss. If we re credit your Account, you shall be deemed to have assigned to us all of your rights against the payee(s), both on the item and on the underlying claim, and we may require you to sign an affidavit that you did not receive full value from the transaction for which the check was issued and otherwise cooperate in our recovery efforts. USE OF CHECK IMAGES AND SUBSTITUTE CHECKS For each original check that you deposit, you hereby authorize us (and any collecting institution, returning institution, Reserve Bank, or processor which subsequently receives the original check) to create an electronic image ( check image ) of the original check, and to process that check image for collection, payment and return. You further authorize the destruction of the original check that has been imaged. We may in our sole discretion determine the manner in which to collect or return a check image. We may: (i) present or transfer the check image to the paying bank, a Federal Reserve Bank, a check clearing house, image exchange network, or other collecting bank or returning bank; or (ii) create a substitute check and collect such substitute check (governed by the Check Collection for the 21st Century Act referred to here as the Check 21 Act ) instead of the check image. A check image or a substitute check may be collected through one or more check clearinghouses, one or more Federal Reserve Banks, or pursuant to an exchange agreement with another depository institution. In such cases, you agree that the check image or substitute check is subject to the rules of that clearinghouse, Federal Reserve Bank, or exchange agreement. You agree that we may debit your Account for any of the following items: (i) a check image of an original check drawn on your Account and presented for payment or collection, or (ii) a returned check image of an original check that was deposited by you. In these situations, we may debit your Account without receipt of, or review of, the original check associated with the check image. In our sole discretion, we may return to a presenting bank, returning bank or paying bank or post to your Account, a paper copy or paper representation of an original check 8

9 (including without limitation an image replacement document or IRD, or a photocopy) drawn on or returned to your Account that does not otherwise meet the technical or legal requirements for a substitute check. You agree that a check image that is received or created by the Credit Union in the check deposit, collection or return process shall be considered a check and/or an item for all purposes under this Agreement and applicable law. In addition, a check that you deposit with us, or that you draw on your Account, may be truncated in the check collection process and replaced with a substitute check. You authorize us to pay, process, or return a substitute check in the same manner as check or item under this Agreement. Substitute checks are governed under the Check 21 Act and the terms of this Agreement, to the extent not modified by the Check 21 Act. You agree to indemnify and hold harmless us, our employees and agents from any loss, claim, damage or expense that you or any other person may incur directly or indirectly as a result of any action taken by us to process a check image or substitute check instead of the original check, including the destruction of the original check, as described above, to the extent permitted by applicable law. LIMITATION ON HIGH SPEED CASH LETTERS When depositing a paper check cash letter for high speed processing, you may only include in such cash letter those checks or items that are eligible for conversion to a check image under the terms of this Agreement and any other documentation, terms and conditions and instructions provided by us to you from time to time. Without limiting the generality of the preceding sentence, a high speed cash letter may not include any of the following items: forward or return items in carrier documents, photocopies in lieu, notices in lieu of return, foreign items, or mutilated items. To deposit these non eligible items, you must prepare a separate cash letter and indicate in the cash letter in the manner specified by us to you from time to time that the cash letter consists of items not eligible for imaging. You hereby agree to indemnify us for any loss that we incur directly or indirectly from your deposit of a cash letter in violation of the limitations set forth in this paragraph. DIVIDENDS Dividends are subject to the approval of the Credit Union s Board of Directors and are paid from current income and available earnings, after required transfers to reserves at the end of a dividend period. The following provisions apply to dividend bearing business accounts: Not all business accounts pay dividends. You should refer to your Rate and Fee Schedule, which is incorporated herein by reference, to assess current dividends (if any), costs, fees, and other charges. Dividends will be calculated on your dividend bearing Account and credited directly to your Account as set forth below. Payment and Balance Computation. Your dividend rate and annual percentage yield may change. At our discretion, we may change the dividend rate and Annual Percentage Yield on your Account any time without notice to you. We may also change the manner in which dividends are calculated and/or credited to you, by posting the change in our branch offices, or by making such information available upon request in our branch offices, on line via marinefederal.org or in any other manner required or permitted by law. If you desire current dividend rate and annual percentage yield information, please ask in any branch office, visit us on line at or telephone your Credit Union representative. We reserve the right to calculate dividends for those dividend bearing Accounts which are used for business or other non personal purposes, in a manner different from those dividend bearing Accounts which are used for personal, household or family purposes. We must report dividends on certain non corporate Accounts to the appropriate governmental agencies. It is your responsibility to give us your correct tax identification number and to make certain written certifications to us as required by law. If you fail to give us your number or the required certifications, we may withhold and pay to the government a percentage of the dividends earned on your Account, as required by law. You may also be subject to government penalties. 9

10 Dividend Payment and Balance Computation. At our discretion, we may change the dividend rate(s) and Annual Percentage Yield(s) on your account at any time without notice to you. Dividends on all dividend bearing commercial / member business deposit accounts referenced in this Agreement are compounded monthly and credited monthly. We use the average daily balance method to calculate the dividends on your account. This method applies a daily periodic rate to the principal in the account each day. Tiered rate accounts earn dividends on the entire account balance each day at the dividend rate and annual percentage yield in effect for that day s balance. Dividends begin to accrue on dividend bearing accounts no later than the business day we receive credit for the deposit of checks and other non cash items. Dividends begin to accrue on money market deposit accounts based on the day funds are available to you for withdrawal. Unless stated otherwise, the term month when used in this Agreement or any Schedule or other Addendum means monthly statement cycle. STATEMENTS We will make available or send a monthly statement to the last address that you have specified for your Account. This statement will list all activity that relates to your Account during the statement period and any other information required by law. Upon receipt, you should review your statement carefully. IF YOU FAIL TO NOTIFY US WITHIN 14 DAYS OF RECEIPT OR AVAILABILITY OF THE STATEMENT OR OTHER WRITTEN OR ELECTRONIC REPORT OF YOUR ACCOUNT TRANSACTIONS, OF ANY PROBLEM OR DISCREPANCY THAT APPEARS ON THE STATEMENT OR REPORT, SUCH AS AN UNAUTHORIZED TRANSACTION OR THE FORGERY OR ALTERATION OF ANY ITEM CHARGED TO YOUR ACCOUNT, YOU MAY LOSE CERTAIN LEGAL RIGHTS. IN NO EVENT WILL WE BE LIABLE FOR ANY UNAUTHORIZED TRANSACTION OR ANY FORGERY, UNAUTHORIZED SIGNATURE OR ALTERATION OF AN ITEM ON YOUR ACCOUNT THAT IS NOT BROUGHT TO OUR ATTENTION WITHIN 90 DAYS OF THE DATE ON WHICH YOUR STATEMENT OR REPORT WAS RECEIVED OR MADE AVAILABLE TO YOU. Notwithstanding the foregoing, the time period for notifying us or making a claim under the Check 21 Act, with respect to a substitute check or an image of a substitute check that is sent with a statement or that appears on a statement, will be as set forth in the Check 21 Act. Please notify us in writing of any change in your address. If your statement is returned to us, we will suspend further mailings until a current address is received. You will be deemed to have received any information we mail to you five (5) business days after the information is mailed, even if it is returned to us as undeliverable. You will be deemed to have received information we hold at your request at the time we make such information available for you to pick up. You will be deemed to have received information we make available to you electronically on the date we make the information available for access by you. INACTIVE ACCOUNTS If your Account is inactive (i.e., you do not make any deposits or withdrawals) and you have not otherwise communicated with us about your Account for the period provided by law, we will be required to transfer the balance of your Account as abandoned property to the appropriate state authority. If your Account is inactive for the period of time specified in our business fee schedule, we reserve the right to impose an inactivity charge on your Account. You also agree that if it becomes inactive, your Account will be subject to any new fees or fee increases which go into effect during the period of inactivity. ADVERSE CLAIMS TO FUNDS IN YOUR ACCOUNT Without any obligation or liability, we may place a hold on your Account in the amount of any funds for which there may be an adverse claim when we investigate the claim or until ownership of the funds is established to our satisfaction. 10

11 MONEY OWED Except to the extent otherwise agreed with you in writing, any loans, charges, service or analysis charges, overdrafts or other obligations or other indebtedness now or hereafter owed to us by you may be charged in whole or in part to the Account, to any other account(s) in your name, or to accounts of co owners and of certain individuals, to the extent permitted by law. You grant us a security interest in the balance in the Account and in any other account(s) in your name, to pay all loans, charges, service or analysis charges, overdrafts or other obligations or other indebtedness now or hereafter owed to us by you. In addition, we may exercise our right of set off without advance notice to you and without regard to any other right that we may have against you or any other party. Such set off shall be effective immediately upon the occurrence of the event giving rise to the set off rights even though we may enter the set off on our books at a later date. Our security interest and right of set off shall prevail and take priority over any adverse claim, change of ownership, pledge, attachment, garnishment, levy, court order or other legal process of any kind whatsoever. Should one of these events occur, we may take any action permitted or required by law. CHANGE IN ACCOUNT INFORMATION You should notify us immediately of any change in the officers of your business or signing authority for your Account. We may ask you to execute and deliver to us new account resolutions and signature cards/membership applications before the change is made effective. You should also notify us in writing of any change in your address. TRANSFER OF OWNERSHIP YOUR ACCOUNT IS NOT ASSIGNABLE OR TRANSFERABLE EXCEPT ON OUR RECORDS. We must approve any pledge of your Account as security for a debt, and any pledge remains subject to our security interest and right of set off, unless we otherwise agree in writing. If you wish to transfer ownership of your Account, we may require that your Account be closed and a new one be opened by and in the name of the new owner(s). DEATH OF SOLE PROPRIETOR Following the death of a sole proprietor of an unincorporated business, the balance in the Account shall be payable in accordance with applicable law upon presentation of appropriate qualification documents and any required tax release. CHARGES TO YOUR ACCOUNT Your Account may be subject to various charges, including but not limited to item charges, a monthly service charge, charges for the use of certain Account services, and late payment charges as set out in the Business Rate and Fee Schedule, statement or other fee disclosure we provide to you, and which are made part of this Agreement. Unless otherwise agreed, these charges will be deducted from your Account balance automatically and may cause you to become overdrawn or your outstanding checks to be returned unpaid. If funds in your Account are attached, garnished, or levied against, or if we are prohibited by law from paying on your Account, we may assess a legal process charge. We will debit your Account for any expenses we may incur as a result of any such legal action. Any such legal action may reduce your Account balance and cause your outstanding checks to be returned unpaid. We reserve the right to charge a fee for cashing checks you write. This fee will be collected from the payee at the time the check is cashed. If the payee refuses to pay our check cashing fee, we may refuse to cash your check, even if your check is otherwise properly payable, and we will not be liable to you for dishonor of your check, or otherwise, as a result of such refusal. You may contact your Credit Union representative to learn the amount of the fee. We reserve the right to make changes to our fees and other charges from time to time. Where practicable, notice of such changes will be given by mail addressed to the last address that you have specified for your Account, by posting in our branch offices, by making the information available to you in electronic form, or otherwise as 11

12 required or permitted by law. CLOSING YOUR ACCOUNT You or the Credit Union may close your Account at any time for any reason and without prior notice. If we close the Account, we will mail you a check for the final balance. You will still be liable to us for any service charges, returned checks or overdrafts, which may occur after the Account is closed. INFORMATION You agree to cooperate with us in any record keeping and reporting which we believe to be necessary to fulfill government requirements. We may record conversations we have with you about your account. DISCLOSURE STATEMENTS In connection with your Account, we may give to you certain disclosure statements or policies, and may revise them from time to time. All such statements, policies and revisions shall be considered to be a part of this Agreement. OUR STANDARD OF CARE Our responsibility to you is limited to our exercise of ordinary care in performing the services covered by this Agreement. Substantial compliance with our standard procedures shall be deemed to be the exercise of ordinary care. We will have no liability to you for taking or not taking any action permitted but not required. We will not be liable for the action or inaction of any third party in handling items deposited to or withdrawn from your Account. NO THIRD PARTY SHALL HAVE ANY RIGHTS OR CLAIMS AGAINST US UNDER THIS AGREEMENT. OTHER SERVICES If you use other Credit Union services in connection with your Account, and there is any inconsistency between the terms and conditions of the agreement for those services and this Agreement, then the terms and conditions stated in the agreement for the additional services shall control, but only to the extent necessary to avoid inconsistency with this Agreement. AMENDMENT, WAIVER We reserve the right to amend this Agreement from time to time, including the right to convert your Account from one product to another. Where practicable, we will post notice of any amendment in our branch offices, or we will mail notice of an amendment to the last address which you have specified for your Account, or notify you otherwise as required or permitted by law. Any waiver by us of any term or condition stated in this Agreement must be in writing and signed by a Credit Union officer and shall not be considered a waiver of any other or future obligation or right. SEVERABILITY In the event that any paragraph of this Agreement or any portion thereof is held by a court to be invalid or unenforceable for any reason, the other paragraphs and portions of this Agreement not held by the court to be invalid or unenforceable will continue in full force and effect. WAIVER OF JURY TRIAL YOU IRREVOCABLY WAIVE ANY AND ALL RIGHTS YOU MAY HAVE TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR CLAIM OF ANY NATURE RELATING TO THIS AGREEMENT OR YOUR ACCOUNT, ANY DOCUMENTS EXECUTED IN CONNECTION WITH THIS AGREEMENT OR YOUR ACCOUNT, ANY TRANSACTION CONTEMPLATED IN ANY OF SUCH DOCUMENTS, OR ANY OTHER AGREEMENTS, TRANSACTIONS OR RELATIONSHIPS YOU MAY HAVE WITH US NOW OR IN THE FUTURE. YOU ACKNOWLEDGE THAT THE FOREGOING WAIVER IS KNOWING AND VOLUNTARY. 12

13 GOVERNING LAW This Agreement is governed by the laws and regulations of the state in which the Credit Union office where you opened your account is located. If your account is opened by mail, or electronically through our Internet Website, and we have a branch office in your state of residence, this Agreement is governed by the laws and regulations of that state. If we do not have an office located in your state of residence, and your account is opened by mail, or electronically through our Internet Website, this Agreement is governed by the laws and regulations of the state of North Carolina. This Agreement is also at all times governed by the laws and regulations of the United States of America. Further, you represent and agree that you shall perform all transactions, undertakings and all of your obligations under this Agreement in accordance with all applicable laws and regulations. This includes, but is not limited to sanctions enforced by the Office of Foreign Assets Control (OFAC). You shall indemnify Credit Union against any loss, liability or expense (including attorneys fees and expenses) resulting from or arising out of any breach of any of the foregoing representations or agreements. MANDATORY ARBITRATION OF DISPUTES AND CLAIMS. Arbitration is a method of deciding disputes outside the court system. The parties agree and understand that they choose arbitration instead of litigation to resolve all claims and disputes not specifically excluded. This provision governs when and how any disputes you and we may have will be decided. Unless specifically prohibited by applicable law all disputes, claims, damages, choses in action, claims for injunctive relief or controversies arising from or relating in any way to the agreements, relationships, accounts, loans, or security agreements between you and us; the relationships which result or arise as a result of this Agreement; any rights, privileges or services you receive from us now or in the future; any claims or disputes arising in or ancillary to any bankruptcy or other insolvency proceeding; or the validity of this clause (together referred to collectively as Agreement), shall be resolved by binding arbitration by a single arbitrator chosen with the mutual consent of the parties. The arbitrator must be an attorney with more than ten (10) years experience or a retired judge. If for any reason the parties do not consent to an arbitrator within thirty (30) days from the date that notice of a claim or intent to arbitrate is provided to the other party, then an arbitrator will be selected pursuant to the Rules of the American Arbitration Association ("AAA"). This arbitration Agreement is made pursuant to a transaction in Interstate Commerce, and shall be governed by the Federal Arbitration Act ("FAA") at 9 USC 1, et seq., as amended from time to time. It is understood and agreed that your Credit Plan Agreement(s), your Accounts, all transactions on your Accounts, and any dispute defined herein shall involve Interstate Commerce. If any dispute between us does not involve Interstate Commerce, such dispute shall be governed by the Arbitration Act for the State set forth in this Membership Agreement., as amended from time to time, in which case all references to the FAA herein shall be to said State Act. If the State has no Arbitration Act, then the parties will be governed by the Rules of the American Arbitration Act in any matter not involving interstate commerce. The parties agree and understand that the arbitrator shall have all power provided by the law and this Agreement to make and enter findings of fact and determination of judgment based on the parties Agreements and applicable law, including but not limited to the rights of possession, off set, property rights, money damages, declaratory relief, and injunctive relief. No arbitrator shall have the jurisdiction or authority to add to, take from, nullify, or modify any of the terms the Agreement. The arbitrator shall be bound by the facts and evidence submitted to him. Arbitration will be subject to the rules of procedure and evidence consistent with the Rules of the American Arbitration Association, and the Arbitrator will not apply federal or state rules. The decision of the arbitrator shall be final and binding and may be enforced in accordance with the terms of either the Federal or applicable State Law, except for any specific appeal right regarding a judgment under the FAA or a judgment for more than $100,000. For these judgments, any party may appeal to a three arbitrator panel appointed by and under the rules of the AAA. The decision of the panel will be by majority vote and will be final and binding except for any specific appeal right under the FAA. All provisions of this Arbitration Agreement will apply to the panel. Judgment upon the award rendered may be entered in any court having jurisdiction. WITH THE EXCEPTION EXPLAINED HEREIN, THE PARTIES AGREE AND UNDERSTAND THAT ALL DISPUTES (INCLUDING ALL LEGAL AND EQUITABLE RIGHTS AND REMEDIES) ARISING UNDER CASE LAW, STATUTORY LAW, AND ALL OTHER LAWS INCLUDING, BUT NOT LIMITED TO, ALL CONTRACT, TORT, REGULATORY, AND PROPERTY DISPUTES WILL BE SUBJECT TO BINDING ARBITRATION IN ACCORD WITH THIS AGREEMENT. Notwithstanding 13

14 anything hereunto the contrary, the Credit Union retains an option to use judicial or non judicial relief to enforce a security agreement relating to any collateral pledged to secure the Agreements between the parties, to enforce all monetary obligations by you to the Credit Union so long as there is no dispute that is subject to mandatory arbitration, or to foreclose on any collateral securing your obligations to us by way of replevin, claim and delivery, or otherwise. The initiation and maintenance of an action for judicial relief in a court [on the foregoing terms] shall not constitute a waiver of the right of any party to compel arbitration regarding any other dispute or remedy subject to arbitration in this Agreement, including the filing of a counterclaim in any action brought by the Credit Union pursuant to this provision. Any arbitration proceeding will take place in the federal judicial circuit where the Credit Union maintains a branch that is the closest Credit Union branch to your primary place of business. Each party must bear all of their own expenses, including the party s own attorneys, experts, and witnesses, regardless of who wins the arbitration, except to the extent that applicable law specifically requires otherwise. The rules of the AAA will be applied to any arbitration between the parties, except in the event of any inconsistency between this Agreement and the rules of the AAA, in which case this Agreement will govern. COSTS, EXPENSES, AND ATTORNEYS FEES All owners of account(s) or service(s) with us agree, jointly and severally, to pay us for all costs and expenses, including attorneys' fees we may incur: (1) If it is necessary for us to bring any legal or other action to collect any sum you owe the Credit Union; (2) If we incur any costs or expense as a result of any order or instruction received from any owner or any owner's agent under this Agreement, any adverse claim, legal process; your failure to comply with any obligation in this Membership Agreement or otherwise; (3) If we incur any expense as a result of any dispute, adverse or inconsistent claims; (4) If we bring any action contemplated in this Agreement; (5) If we successfully defend any claim against the Credit Union brought by any owner, agent, personal representative, executor, heir or other party in interest brought via any formal or informal process (including but not limited to arbitration or mediation) involving your accounts or services with us; or (6) If we deem it necessary to seek the advice or opinion of legal counsel or other professionals regarding the bona fides or legality of any transaction(s) to/from your accounts or involving any services with us, or any request for information or documentation regarding any of your accounts and/or services with us. If you are responsible to pay us any costs of collection or legal expenses incurred in collecting any amount you owe; in enforcing or protecting our rights under this Agreement or otherwise; or as provided in this subsection, including but not limited to costs of repossession, repair, appraisal, and all other costs or expenses, you agree to pay us the actual amount of such costs and expenses together with reasonable attorneys fees. In the case of any collection action you agree that 20% of the unpaid balance or such greater sum as may be appropriate based on the circumstances shall be a reasonable amount, unless applicable law specifically provides otherwise. Further, you agree to pay the Credit Union an additional sum for any costs, legal expenses or attorneys fees incurred in any appellate, bankruptcy or postjudgment proceedings, except as limited or prohibited by applicable law. Any costs, expenses or fees hereunder will be paid from any of your account(s) with the Credit Union before payment to any owner or other party. If the amounts in your account(s) are not sufficient, then the owner(s) of the affected account(s) or parties to any applicable services will immediately pay any difference. INDEMNITY If you ask us to follow instructions that we believe might expose us to claims, suits, losses, expenses, liabilities, or damages, whether directly or indirectly, we may refuse to follow your instructions or may require a bond or other protections. An example of the kind of protection asked for would be your promise to protect the Credit Union against any claims (an indemnity). ACCOUNT AGREEMENT FOR CERTIFICATES TERM CERTIFICATE SHARES (Certificate Shares) 1. Rate Information. The dividend rate and annual percentage yield on your share is stated in the Schedule and/or your Term Certificate Share. The annual percentage yield reflects the dividends to be paid on your share based on the dividend rate and the frequency of compounding for an annual period. For a Fixed Rate Certificate Share the dividend rate and annual percentage yield are fixed and will be in effect for the term of the share. For a Variable Rate Certificate Share the dividend rate and annual percentage yield are variable and may change each dividend 14

15 period based on the determination of the Credit Union's board of directors. The annual percentage yield assumes that dividends will remain on deposit until maturity. Any withdrawals will reduce your earnings. 2. Compounding and Crediting. Dividends will be compounded and credited as set forth in the Schedule. The Dividend Period ( Period ) for each share is set forth in the Schedule. The Period begins on the first calendar day of the period and ends on the last calendar day of the period. 3. Minimum Balance Requirements. The minimum opening deposit required to open any Term Certificate Share is set forth in the Schedule. You must maintain an average daily balance equal to or greater than the minimum opening deposit to earn the annual percentage yield and avoid any service charges set forth in the Schedule. 4. Balance Computation Information. Average Daily Balance Method Dividends are calculated by the average daily balance method which applies a periodic rate to the average daily balance in your share for the Period. The average daily balance is calculated by adding the balance in your share for each day of the Period and dividing that figure by the number of days in the Period. 5. Accrual of Dividends. Dividends will begin to accrue on the business day we receive provisional credit for the deposit of noncash items (e.g. checks) to your share. Dividends will begin to accrue on cash deposits on the business day you make the deposit to your share. Once dividends are credited to a certificate share, they can be withdrawn from the share certificate penalty free at anytime during the term of the certificate. If you close your Certificate before any dividend is credited, you will not receive accrued but uncredited or unpaid dividends. 6. Transaction Limitations. In addition to any other applicable limitations described in this Booklet, after a Term Share is opened, you may not make deposits into the share before maturity. After an IRA Certificate Share is opened, you may not make additional deposits into the share before maturity. The principal deposits for an IRA Certificate Share may not exceed the maximum allowed pursuant to applicable law, or as set forth in the Schedule in any single calendar year. You may not make withdrawals of dividends from your certificate share before maturity. You may make arrangements at account or share opening for dividend payments, if allowed by the Credit Union. You may not take any withdrawals of the principal funds during the term, otherwise the share must be redeemed. Penalty periods will apply. Additional Deposits: Additional deposits are permitted for Add On Certificate Shares only. You may make additional deposits to an Add On Certificate Share at any time. There is a $10 minimum deposit on 12 month Add On Certificate Shares. 7. Maturity Date. Your share will mature on the date stated in your Certificate or any Renewal Notice the Credit Union provides to you. 8. Early Withdrawal Penalties All Certificate Shares. You have agreed to leave the principal of this share on deposit for the full term stated in your Certificate. If all or part of the principal is withdrawn before the maturity date, the Credit Union may charge you a penalty. Withdrawal of the principal amount of your Certificate may be made only with the consent of the Credit Union. Unless stated otherwise, owners of shares with a stated term of one year or less shall forfeit an amount equal to up to 90 days dividends on the amount withdrawn, or the length of the term, whichever is less, when any withdrawal is allowed. Unless stated otherwise, owners of shares with a stated term of more than one year shall forfeit an amount equal to up to 180 days dividends on the amount withdrawn, or the length of the term, whichever is less, when any withdrawal is allowed. The penalty may be calculated at the rate paid on the deposit at the time of the withdrawal. The penalty will, if necessary, be taken from the principal amount of the deposit. The Credit Union may grant a premature withdrawal request without penalty or with a reduced penalty in the event of the owner's death or legal incompetence. 9. Renewal Policy. Unless you instruct the Credit Union otherwise, your certificate share will automatically renew at maturity. You will have a grace period of seven (7) calendar days starting the first day after maturity to withdraw the funds in the share without being charged an early withdrawal penalty. However, the Credit Union reserves the right to give the owner written notice that the share will not be renewed. In the latter case, upon maturity, the share will be converted to a regular savings share and receive earnings at the rate then paid on regular share deposits. The rate of earnings for any renewal terms shall be at the rate the Credit Union is then offering on the 15

16 same shares in this class. If you instruct us not to renew your share, then no dividends will be paid after the stated maturity date. 10. Partial Withdrawal. No partial withdrawal will be permitted at any time that would result in a principal balance of less than the required minimum opening deposit. CREDIT UNION BUSINESS CARD AGREEMENT The foregoing terms and conditions are incorporated into this Section be reference and the agreement of the parties hereto. I. DEFINITIONS In this Agreement the following words shall have the definitions stated: (a) (b) (c) (d) (e) (f) (g) Account or accounts will mean each of your commercial or business checking or business share accounts which you have arranged with us to access with your card. You will not be permitted to access personal or credit card accounts with your card; ATM will mean automated teller machine; Card will mean the following: (i) Marine Federal Credit Union Business Check Card a full function debit card that allows deposits, withdrawals, funds transfers between accounts, and balance inquiries at automated teller machines as well as purchases at merchants where accepted; and/or PIN will mean the confidential personal identification number(s) or other confidential code(s) provided to you by Marine Federal Credit Union or selected by you for identification purposes in connection with the use of your card, and may include where the context requires, the card number itself; Marine Federal Credit Union will mean the Marine Federal Credit Union depository institution where you established your account and that issued your card(s); Transfer will mean any electronic banking transaction, including deposits made with your card(s), withdrawals or point of sale purchases made electronically with your Business Check Card, as well as all transfers resulting from the use of your Business Check Card even if an ATM is not involved at the time of the transaction; and You and your will mean your business or its authorized representative. II. TYPES OF AVAILABLE TRANSFERS AND LIMITS ON TRANSFERS (a) (b) Deposits. You may use your card at any Marine Federal Credit Union full function ATM or at select ATMs owned by other financial institutions bearing the logos set forth in the Rate and Fee Schedule to make deposits to your accounts. Other Transactions. You may use your Business Check Card at any ATM bearing any ATM network logo that appears on your card. (i) Withdraw cash from your account(s); (ii) Perform balance inquiries on your account(s); (iii) Transfer funds between your accounts; (iv) Make purchases at merchants who have agreed to accept the card. There are maximum limits on the dollar amount of ATM withdrawals and purchases you may make using your Business Check Card in any calendar day. The amounts of these maximum limits are set forth in your Rate and Fee Schedule. You may be able to withdraw cash using your Business Check Card only in certain multiples, as indicated at each ATM. Deposits may not be available at all ATMs. Additional charges may be imposed by owners of non Credit Union ATMs for use of their ATMs. You may avoid those fees by using only Credit Union ATMs. III. LIMITATION OF LIABILITY (a) We will be liable only for our own gross negligence or willful misconduct and will not be responsible for any loss or damage arising from or in connection with (1) any inaccuracy, act or failure to act on the part of any person not within our reasonable control or (2) any error, failure or delay in execution of any 16

17 transfer resulting from circumstances beyond our reasonable control, including, but not limited to any inoperability of communications facilities or other technological failure. Provided we have complied with our obligations under this Agreement, you agree to indemnify, defend, and hold us harmless against any claim of a third party arising from or in connection with this Agreement or the service we provide hereunder. We make no warranties, express or implied, in connection with the services we provide you under this Agreement, including, without limitation, the warranties of merchantability and fitness for a particular purpose. In no event will we be liable for any consequential, incidental, special or indirect losses, damages, including dishonor of checks or other items, or expenses (including counsel fees), which you may incur or suffer by reason of this Agreement or the services we provide hereunder, whether or not the possibility or likelihood of such loss, damage or expense is known to us. (b) If your card is lost/stolen or used by someone other than you, your officers, employees or agents, your liability should be as follows: Tell us AT ONCE if you believe your card 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 to which you have access with your Business Check Card, plus your maximum overdraft line of credit. If you tell us promptly after you learn of the loss or theft of your card, you will not incur any loss or liability if someone used your Business Check Card for a Business Check Card transaction without your permission. If your statement shows transfers using your Business Check Card for a Check Card transaction you did not authorize, tell us at once. If you do NOT tell us of unauthorized card transfers using your Business Check Card for a Check Card transaction within 60 days after the statement was mailed to you, you may not get back any money you lost after the 60 days if we can prove that we could have stopped someone from making the Check Card Transaction if you had told us in time. However, the above special rules will not apply, to the extent allowed under applicable law, if we have determined you were grossly negligent or fraudulent in the handling of your Business Check Card or account. If a good reason (such as a long trip or a hospital stay) kept you from telling us, we will extend the time periods. Our business days are Monday through Friday, and do not include legal holidays as posted in the branches. If you believe your card or PIN has been lost or stolen or that someone has transferred or may transfer money from your checking account using your Business Check Card without your permission, call the phone number or write to the address shown at the end of this disclosure statement. (c) (d) We will issue you one PIN per card. You shall have sole and exclusive responsibility for providing the PINs to those individual(s) whom you authorize to use the card(s). Subject to the provisions in paragraph III (a) above, we shall have no liability for transactions performed using your card and a PIN issued to you regardless of whether you deem such transactions to be authorized or unauthorized. Any security procedure applicable to the card and disclosed to you is strictly confidential and should be disclosed to only your employees or agents with a need to know them. You shall instruct those individuals that they should not disclose the security procedures to anyone. You must establish and maintain procedures to insure the confidentiality of the PINs and the security procedures. (e) We assume no responsibility to discover or audit any possible breach of security or unauthorized disclosure or use of cards or PINs by your employees, agents or representatives. You shall promptly notify us of any suspected unauthorized activity (whether or not involving your employees). We reserve the right to change our security procedures upon notice to you. 17

18 IV. GENERAL PROVISIONS (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) Your card may, but need not, be retained by any ATM or merchant if: the PIN is wrong after repeated attempts; your card was reported lost or stolen; your card was closed for misuse; all of your accounts linked to your card(s) have been closed; your card expired or was replaced; the machine is not operating properly. We may refuse to issue a card to you or to reissue a card to you if you have previously had one. Each card issued by us remains our property, is not transferable (other than to your authorized employees) and may be canceled, revoked or limited by us at any time without prior notice to you. In the event of cancellation or revocation, your card must be surrendered to us upon demand. If you attempt to use your card after it has been canceled or revoked it will be retained. For your protection, your card also may be retained in situations where it appears to us that there is or may be a danger of loss, theft or unauthorized use. No electronic fund transfer may be made and no transaction that you attempt to initiate will be completed if your Business Check Card is damaged, has expired, has been canceled or revoked or is retained for any reason or your account(s) has (have) been closed. Upon receipt of a request for authorization of a transaction made with your Business Check Card, you, (or your agent on your behalf) authorize us to deduct the amount immediately from the available balance in your account. You understand and agree that you may not place stop payment orders on any transaction originated by use of your Business Check Card. You may not be able to use your Business Check Card to make transactions in the following cases: (i) your account is overdrawn; (ii) you have reached or your request would exceed the withdrawal or point of sale purchase limits imposed on your card; (iii) you exceed your overdraft line of credit or otherwise are not in good standing with regard to the use of your card. We reserve the right at any time and without notice to eliminate any or all of the services that currently are available to you by use of your card or to add new services. We may, from time to time, limit the type, number and dollar amount of any transfers made by use of a Business Check Card, notwithstanding the amount in your account(s), and terminate or suspend the operation of any or all cards, ATMs or merchants, without notice. Where you have authorized any other person to use your card in any manner, your authorization shall be considered by us to be unlimited in amount and manner and will be effective until you have notified us in writing that you have revoked the authorization, and have taken all other necessary steps to revoke it and we have had a reasonable opportunity to act on such notification including cancellation of your card and issuance of a replacement card. These terms and conditions are subject to the laws and regulations of the state in which the principal place of business of the Credit Union at which you opened your account is located and of the United States of America as amended from time to time and shall be deemed automatically amended to the extent necessary to comply therewith. (k) In the event of any inconsistency between your Business Account Agreement and this Agreement, this Business Card Agreement shall control to the extent necessary. You agree that this Agreement is the entire statement of the terms and conditions which apply to the subject matter hereof. If any term or condition of 18

19 this Agreement should be invalidated or unenforceable, all other terms and conditions will continue in full force and effect. This Agreement supersedes any prior agreements between us relating to these services for your Account. You and we agree that all warranties, indemnities, confidentiality requirements, representations, acknowledgments and understandings will survive the performance and termination of this Agreement. (l) (m) You may use your Business Debit card to purchase goods and services from participating merchants. However, you may not use your Business Debit card to initiate any type of gambling transaction. You agree that you will not use your Business Debit card for any transaction that is illegal under all applicable, federal, state or local law. Additional Charges for Transactions in a Foreign Currency and Cross Border Transactions. Currency Conversion Fee: If you effect or authorize a transaction with your access device in a currency other than US Dollars, VISA / MasterCard will convert the charge into a US Dollar amount. The VISA / MasterCard currency conversion procedure includes use of either a government mandated exchange rate, or a wholesale exchange rate selected by VISA / MasterCard, as applicable. The exchange rate VISA / MasterCard uses will be a rate in effect on the day the transaction is processed. This rate may differ from the rate in effect on the date of the purchase or the date the transaction was posted to your account. A Currency Conversion Fee of up to 1% will be applied to transactions that are converted from foreign currencies to U.S. dollars. Cross Border Transaction Fee: In addition, VISA / MasterCard charges us a Cross Border Assessment up to 1% on each transaction on all cross border transactions regardless of whether there is a currency conversion. For purposes of this Section, cross border transaction shall include both (a) transactions initiated in a foreign country which are subsequently settled in the United States, and (b) transactions initiated in the United States but which are ultimately settled in a country outside of the United States. The Credit Union will assess these fees to you to reimburse it for the fee it is required to pay for each of your transactions subject to these terms. The fee(s) will be shown separately on your periodic billing statement(s). HOW TO NOTIFY US CONCERNING ERRORS, QUESTIONS OR TELEPHONE TRANSFERS: Call us at or at UNIFORM COMMERCIAL CODE FUNDS TRANSFERS AGREEMENT AND DISCLOSURE 1. Summary and Definitions. This Agreement governs the movement of funds by means of funds transfers defined in Article 4A of the Uniform Commercial Code, Subpart B of Regulation J of the Board of Governors of the Federal Reserve System (generally referred to as Fedwire or wholesale wire transfers), and as may be applicable the operating rules for the National Automated Clearing House Association ("NACHA"). This Agreement does not apply to any transaction or any part of any transaction governed by the Electronic Funds Transfer Act and Regulation E. To the extent that the terms of this Agreement vary from the other agreements or disclosures in this Booklet, this Agreement shall govern. Further, to the extent that this Agreement varies any provision of Article 4A, Regulation J or the operating rules of NACHA, this Agreement shall govern, except where specifically prohibited by applicable law. 2. Services Available. You authorize us to transfer funds in accordance with your request(s) to and from your account(s) with us, or to and from another institution. Transfers shall be made according to any security procedures we deem appropriate or as specifically agreed upon as provided herein. We may debit any of the accounts you designate as a source of payment for funds transfers and any related fees and service charges. We will have no obligation to accept or execute any payment order if (1) the account(s) from which it is to be made does not contain sufficient available collected funds; (2) the payment order is not authorized or does not comply with applicable security procedures; or (3) acting in good faith we have reasonable cause for rejecting the payment order. 3. Person(s) Authorized to Make Transfers. You agree that you, any joint owner of an account, or any person authorized by a written instrument by you or any joint owner, that is acceptable to us, may initiate, request, cancel, amend or verify transfers on your account(s). We may rely on the authority of any person(s) designated by you or any joint owner until we receive written notice revoking or modifying that authority. 19

20 4. Security Procedure(s). We may establish security procedures to verify the authenticity of a payment order. You agree that the authenticity of payment orders may be verified using that security procedure unless you notify us in writing that you do not agree to that security procedure. In that event, we shall have no obligation to accept any payment order from you or other authorized parties on the account until you and the Credit Union agree in writing to an alternate security procedure. You authorize us to record any telephone communications regarding any transfer order, which we may maintain for any period of time we deem appropriate. 5. Time Limitations for Acceptance of Orders. We may establish and change cut off times for the receipt and processing of funds transfer orders, amendments or cancellations. Our transfer business days and cut off times are set forth in the Schedule, as amended from time to time. Transfer orders, cancellations or amendments received after the cut off time may be treated as received on the next following funds transfer business day, and processed accordingly. Your request for transfer(s), amendment(s) and cancellation(s) is considered accepted when executed by us. 6. Cancellation or Amendment of Transfer Request(s). You may not be able to cancel or amend a request after it is received by us. However, we may, in our sole discretion, use reasonable efforts to act on your request for cancellation or amendment. Any request for cancellation or amendment is subject to applicable security procedure(s). We shall have no liability if such cancellation or amendment is not effected. Furthermore, you agree to indemnify and hold us harmless from any and all liabilities, costs and expenses we may incur in attempting to cancel or amend any transfer. 7. Member Instructions Identifying Beneficiary or Financial Institution. You acknowledge and agree that when you provide us with the name and account number when requesting a transfer, that payment may be made solely on the basis of the account number even if the account number identifies a beneficiary different from the beneficiary named by you. Further, payment instructions identifying a beneficiary's financial institution name, routing and transit number may result in payment solely on the basis of the routing and transit number even if the name of the institution does not correspond to said numbers. You further agree that your obligation to pay the amount of the wire transfer to us is not excused in such circumstances. Likewise, wire transfers received by us for your benefit may be paid by us solely on the basis of account number. 8. Account Statements and Notices. All transfers subject to this Agreement will be reflected on your periodic account statement(s). Notification of receipt of all such transfers will be provided by including such item in the periodic account statement(s) we provide to you. You may inquire whether a specific transfer has been received at any time during our normal business hours. You agree to review each statement or other notice for any discrepancies in connection with transfers. If you think a transfer is not authorized, wrong, or if you need more information about a transfer, you must contact us in writing upon discovery of the error or within 30 days after you receive the first notice or statement that reflects the discrepancy you allege, whichever is earlier. Failure to do so will relieve us of any obligation to pay interest or otherwise compensate you for the amount of any unauthorized or erroneous transfer. 9. Method Used to Make the Wire Transfer. We may select any means for the transmission of funds we consider suitable, including but not limited to the Credit Union's own internal systems or Fedwire. Any subsequent financial institution may also use Fedwire. Any use of Fedwire shall be governed by applicable Fedwire regulations. The Credit Union is not responsible for performance failure as a result of an interruption in transfer facilities, labor disputes, power failures, equipment malfunctions, suspension of payment by another party, refusal or delay by another financial institution to accept the transfer, war, emergency conditions, fire, earthquake or other circumstances not within our control. 10. Limitation of Credit Union's Liability. In addition to any defense or exception from liability provided in this Booklet or applicable law, the Credit Union shall not be liable in any case for any special, indirect, exemplary, consequential or punitive damages (including lost profits). Further, we shall in no case be responsible for the payment of any attorneys' fees or other legal expenses whatsoever. If we become obligated to pay dividends to you under applicable law, you agree that the dividend rate shall be equal to the dividend rate applicable to the account on which the transfer was made. 20

21 11. Provisional Payment. We may in our sole discretion give you a credit for automated clearing house (ACH) payments or wire transfers before we receive final settlement of the funds transfer. We reserve the right to reject any such payment or transfer without liability to you. Any such credit is provisional until we receive final settlement. If we do not receive such settlement, we are entitled to a refund from you in the amount provisionally credited. 12. Choice of Law. 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 the laws and as provided in the operating rules of the National Automated Clearing House Association. FUNDS AVAILABILITY POLICY FOR BUSINESS CHECKING ACCOUNTS This Disclosure applies to all transaction accounts. Transaction accounts, in general, are accounts which permit an unlimited number of payments to third persons and an unlimited number of telephone and preauthorized transfers to other accounts of yours with us. Checking accounts are the most common transaction accounts. Feel free to ask us whether any of your accounts are covered by these rules. Please read all provisions carefully in order to fully understand when funds may be available from certain deposits. Funds availability means your ability to withdraw funds from your account, whether those withdrawals are to be in cash, by check, automatic payment, or any other method we offer you for access to your account. If deposited funds are not "available" to you on a given day, you may not withdraw the funds in cash and we may not use the funds to pay items that you have written or honor other withdrawals you request. If we pay items that you have written or honor other withdrawals before funds are available to you, we may charge a fee for this. Please remember that even after the item has cleared, we have made funds available to you, and you have withdrawn the funds, you are still responsible for items you deposit that are returned to us unpaid and for any other problems involving your deposit. Determining the Availability of a Deposit All Accounts The day funds become available is determined by counting business days from the day of your deposit. Every day is a business day except Saturdays, Sundays, and federal holidays. If you make a deposit in person before our cutoff time on a business day we are open, we will consider that day to be the day of your deposit for purposes of calculating when your funds will become available. However, if you make a deposit after the cutoff time, or on a day we are not open, we will consider that the deposit was made on the next business day we are open. If you make a deposit at an ATM before 2:00 p.m. (local time, at the ATM location) on a business day we are open, we will consider that day to be the day of your deposit. If you make a deposit at an ATM on or after 2:00 p.m. (local time) or on a day we are not open, we will consider the deposit to be made on the next business day we are open. Deposits you send by mail are considered deposited on the business day they arrive. In all cases, availability of any deposit assumes that a requested withdrawal will not overdraw the account. Immediate Availability for Certain Items The following types of deposits will usually be available for withdrawal immediately: Cash (if deposited in person to an employee of ours); Electronic direct deposits; Wire transfers; and The first $200 from the aggregate of all other deposits made on any given day. Cash and wire transfer deposits are subject to the Special Rules for New Accounts and the $200 availability is subject to the rule in the section titled Longer Delays May Apply. 21

22 Note ACH Transfers: If you initiate a wire or ACH transfer from your account at another institution to your Credit Union account (called ACH debit transfers ), the funds transferred in this way to your Credit Union account will be available on the first business day after the day we receive the deposit, at which time you withdraw the funds in cash and we will use them to pay checks you have written. Immediate Availability for Most Other Items Our general availability policy for items not listed in the prior section is to make funds available to you immediately. We generally make some portion of a day s deposits available for withdrawal immediately. See the previous section for the types and amounts of deposits that are available immediately. Longer Delays May Apply Paper Checks: In some cases involving paper checks, we will not make all of the funds that you deposit available to you as provided above. The first $200 of your deposits, however, will generally be available no later than the first business day after the day of deposit, and usually immediately. If we are not going to make all of the funds from your deposit available on the first business day, we will notify you at the time you make your deposit; or soon after as reasonably practical. We will also tell you when the funds will be available. If your deposit is not made directly to one of our employees (including a deposit made at an ATM) or if we decide to take this action after you have left the premises, we will mail you the notice by the day after we receive your deposit. If you will need the funds from a deposit right away, you should ask us when the funds will be available. Safeguard Exceptions. In addition, funds you deposit by check may be delayed for a longer period under the following circumstances: We believe a check you deposit will not be paid. You deposit checks totaling more than $5,000 on any one day. You redeposit a check that has been returned unpaid. You have overdrawn your account repeatedly in the last six months. There is an emergency, such as failure of computer or communications equipment. We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available no later than the seventh business day after the day of your deposit. Special Rules for New Accounts If you are a new member, the following special rules will apply during the first 30 days your account is open. Funds from electronic direct deposits and deposits of cash and wire transfers to your account will be available on the day we receive the deposit. The first $5,000 of a day s total deposits of cashier s, certified, teller s, traveler s, on us checks (checks drawn on U.S. Bank), and federal, state and local government checks will be available on the first business day after the day of your deposit if the deposit meets certain conditions. For example, the checks must be payable to you (and you may have to use a special deposit slip). The excess over $5,000 will be available on the fifth business day after the day of your deposit. If your deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, the first $5,000 will not be available until the second business day after the day of your deposit. Funds from all other check deposits will generally be available on the fifth business day after the day of your deposit. In certain instances, we may hold funds from other check deposits for longer than five business days. For example, if we receive a check that falls within the Safeguard Exception description above, we may delay funds for up to nine business days. If we do so, we will provide you with a hold notice at the time of deposit or when we learn that we will hold the funds from the deposit. Cashing Checks If we cash a check for you that is drawn on another bank, we may withhold the availability of a corresponding amount of funds that are already in your account. Those funds will be available at the time funds from the check we cashed would have been available if you had deposited it. 22

23 Other Accounts If we accept for deposit a check that is drawn on another bank, we may make funds from the deposit available for withdrawal immediately but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available for withdrawal until the day the deposited item would have been available, which will usually be the first business day after the day of deposit. Foreign Checks Checks drawn on financial institutions located outside the U.S. (foreign checks) cannot be processed the same as checks drawn on U.S. financial institutions. Foreign checks are exempt from the policies outlined in this disclosure. Generally, the availability of funds for deposit of foreign checks will be delayed for the time it takes us to collect the funds from the financial institutions upon which it is drawn. Foreign checks with no routing numbers and payable in foreign currency are not accepted for deposit. These items must be sent as a collection item. Only foreign checks payable through a U.S. financial institution with routing numbers and payable in U.S. dollars will be available subject to the schedule described in this section. *SPECIAL RULES FOR TIME PERIOD ADJUSTMENT FOR WITHDRAWALS BY CASH OR SIMILAR MEANS. The Credit Union reserves the right to extend by one business day the time that funds deposited will be available for withdrawal by cash or similar means. However, an additional $ will be available for withdrawal by cash or similar means on the date funds are otherwise available for withdrawal under this policy. Check 21 Disclosures: IMPORTANT CONSUMER AWARENESS INFORMATION AND DISCLOSURES REGARDING SUBSTITUTE CHECKS. A SUBSTITUTE CHECK IS THE LEGAL EQUIVALENT OF AN ORIGINAL CHECK FOR ALL PURPOSES, INCLUDING ANY PROVISIONS OF ANY FEDERAL OR STATE LAW, AND FORALL PERSONS, IF THE SUBSTITUTE CHECK: A. ACCURATELY REPRESENTS ALL OF THE INFORMATION ON THE FRONT AND BACK OF THE ORIGINAL CHECK AS OF THE TIME AT WHICH THE ORIGINAL CHECK WAS TRUNCATED; AND B. BEARS THE LEGEND: THIS IS A LEGAL COPY OF YOUR CHECK. YOU CAN USE IT IN THE SAME WAY YOU WOULD USE THE ORIGINAL CHECK. AND C. THE CONSUMER RE CREDIT RIGHTS ESTABLISHED BY CHECK 21 APPLY WHEN A CONSUMER BELIEVES IN GOOD FAITH THAT A SUBSTITUTE CHECK WAS NOT PROPERLY CHARGED TO THE ACCOUNT OF THE CONSUMER. SUCH RIGHTS ARE SET FORTH BELOW: 1. In General: A consumer may make a claim for expedited re credit from the financial institution that holds the account of the consumer with respect to a substitute check, if the consumer asserts in good faith that: (A) the financial institution charged the consumer s account for a substitute check that was provided to the consumer; (B) either the check was not properly charged to the consumer s account or the consumer has a warranty claim with respect to such substitute check; (C) the consumer suffered a resulting loss; and (D) the production of the original check or a better copy of the original check is necessary to determine the validity of any claim described in subparagraph (B) Day Period: Any claim with respect to a consumer account may be submitted by a consumer before the end of the 40 day period beginning on the later of the date on which the financial institution mails or delivers, by a means agreed to by the consumer, the periodic statement of account for such account which contains information concerning the transaction giving rise to the claim or the date on which the substitute check is made available to the consumer. The 40 day period can be extended by a reasonable amount of time due to extenuating circumstances, including extended travel or the illness of the consumer, the 40 day period shall be extended by a reasonable amount of time. 3. Procedures for Claims: To make a claim for an expedited re credit with respect to a substitute check, the consumer shall provide to the financial institution that holds the account of such consumer: (A) a description of the claim, including an explanation of (i) why the substitute check was not properly charged to the consumer s account; or (ii) the warranty claim with respect to such check; (B) a statement that the consumer suffered a loss 23

24 and an estimate of the amount of the loss; (C) the reason why production of the original check or a better copy of the original check is necessary to determine the validity of the charge to the consumer s account or the warranty claim; and (D) sufficient information to identify the substitute check and to investigate the claim. The financial institution can require that the claim be submitted in writing and the financial institution can permit the consumer to submit the claim electronically if the consumer has agreed to communicate with the financial institution in that manner. 4. Re credit to Consumer and Conditions for Re credit: The financial institution shall re credit a consumer account for the amount of a substitute check that was charged against the consumer account if (A) a consumer submits a claim to the financial institution with respect to that substitute check that meets the Procedures for Claims listed above and (B) the financial institution has not (i) provided to the consumer the original check or a copy of the original check (including an image or a substitute check) that accurately represents all of the information on the front and back of the original check, as of the time at which the original check was truncated; and (ii) demonstrated to the consumer that the substitute check was properly charged to the consumer account. TIMING OF RE CREDIT. In general, the financial institution shall re credit the consumer s account for the amount described under Conditions for Re credit above no later than the end of the business day following the business day on which the financial institution determines the consumer s claim is valid. RE CREDIT PENDING INVESTIGATION. If the financial institution has not yet determined that the consumer s claim is valid before the end of the 10th business day after the business day on which the consumer submitted the claim, the financial institution shall re credit the consumer s account for (i) the lesser of the amount of the substitute check that was charged against the consumer account, or $2,500, together with interest if the account is an interest bearing account, no later than the end of such 10th business day; and (ii) the remaining amount of the substitute check that was charged against the consumer account, if any, together with interest if the account is an interest bearing account, not later than the 45th calendar day following the business day on which the consumer submits the claim. 5. AVAILABILITY OF RE CREDIT: NEXT DAY AVAILABILITY. Except as provided in the SAFEGUARD EXCEPTIONS below, a financial institution that provides a re credit to a consumer account shall make the re credited funds available for withdrawal by the consumer by the start of the next business day after the business day on which the financial institution re credits the consumer s account. SAFEGUARD EXCEPTIONS. A financial institution may delay availability to a consumer of a re credit provided under RE CREDIT PENDING INVESTIGATION above until the start of either the business day following the business day on which the financial institution determines that the consumer s claim is valid or the 45th calendar day following the business day on which the consumer submits a claim for such re credit, whichever is earlier, in any of the following circumstances: NEW ACCOUNTS. The claim is made during the 30 day period beginning on the business day the consumer account was established. REPEATED OVERDRAFTS. Without regard to the charge that is the subject of the claim for which the re credit was made (i) on 6 or more business days during the 6 month period ending on the date on which the consumer submits the claim, the balance in the consumer account was negative or would have become negative if checks or other charges to the account had been paid; or (ii) on 2 or more business days during such 6 month period, the balance in the consumer account was negative or would have become negative in the amount of $5,000 or more if checks or other charges to the account had been paid. PREVENTION OF FRAUD LOSSES. The financial institution has reasonable cause to believe that the claim is fraudulent, based on facts (other than the fact that the check in question or the consumer is of a particular class) that would cause a well grounded belief in the mind of a reasonable person that the claim is fraudulent. OVERDRAFT FEES. No financial institution that delays the availability of a re credit under SAFEGUARD EXCEPTIONS above to any consumer account may impose any overdraft fees with respect to drafts drawn by the consumer on such re credited amount before the end of the 5 day period beginning on the date notice of the delay in the availability of such amount is sent by the financial institution to the consumer. 6. Reversal of Re credit: A financial institution may reverse a re credit to a consumer account if the financial institution (1) determines that a substitute check for which the financial institution re credited a consumer account 24

25 was in fact properly charged to the consumer account; and (2) notifies the consumer in accordance with NOTICE TO CONSUMER provisions below. 7. Notice to Consumer and Notice if Consumer Claim Not Valid. If a financial institution determines that a substitute check subject to the consumer s claim was in fact properly charged to the consumer s account, the financial institution shall send to the consumer, no later than the business day following the business day on which the financial institution makes a determination: (A) that the original check or a copy of the original check (including an image or a substitute check) that (i) accurately represents all of the information on the front and back of the original check (as of the time the original check was truncated); or (ii) is otherwise sufficient to determine whether or not the consumer s claim is valid; and (B) an explanation of the basis for the determination by the financial institution that the substitute check was properly charged, including a statement that the consumer may request copies of any information or documents on which the financial institution relied in making the determination. NOTICE OF RE CREDIT. If a financial institution re credits a consumer account, the financial institution shall send to the consumer, no later than the business day following the business day on which the financial institution makes the re credit, a notice of (A) the amount of the re credit; and (B) the date the re credited funds will be available for withdrawal. NOTICE OF REVERSAL OF RE CREDIT. In addition to the notice required if a consumer s claim is not valid, if a financial institution reverses a re credited amount, the financial institution shall send to the consumer, no later than the business day following the business day on which the financial institution reverses the re credit, a notice of (A) the amount of the reversal; and (B) the date the re credit was reversed. MODE OF DELIVERY. Any notice described above shall be delivered by United States mail or by any other means through which the consumer has agreed to receive account information. 8. Other Claims Not Affected: Providing a re credit in accordance with this section shall not absolve the financial institution from liability for a claim made under any other law, such as a claim for wrongful dishonor under the Uniform Commercial Code, or from liability specifically provided for by Regulation CC. 9. Clarification Concerning Consumer Possession: A consumer who was provided a substitute check may make a claim for an expedited re credit under this section with regard to a transaction involving the substitute check whether or not the consumer is in possession of the substitute check. 10. Scope of Application: These expedited re credit rights shall only apply to: (A) Substitute Checks as defined by Regulation CC; and (B) members who are consumers. Shared Branching Disclosures: Shared Branching. With respect to items deposited at shared branch locations (meaning branches of credit unions other than this Credit Union that accept deposits for our members through participation in a shared branch network), funds will be available as stated above with the addition of the following exceptions: Your Ability to Withdraw Funds Our policy is to delay the availability of funds from non cash deposits that are accepted at a shared branch location. During the delay, you may not withdraw the funds in cash and we will not use the funds to pay checks that you have written or other withdrawals you have authorized. Foreign checks will not be accepted at a shared branch. Shared Branch Transaction Limits The shared branch that you are visiting may impose withdrawal limits. All Transactions with the Credit Union are subject to our policies and procedures including security, identification, Bank Secrecy Act, and all other applicable laws, rules, and regulations. Share Insurance: Although deposits with this Credit Union are federally insured, not all credit unions served by the teller may be federally insured. You should contact your credit union to determine if your deposits are insured. ELECTRONIC RECORDS, ELECTRONIC MAIL ( E Mail ), FACSIMILE AND OTHER ELECTRONIC SERVICES AND COMMUNICATIONS 25

26 Electronic Records. To facilitate electronic commerce, to reduce the expense of records storage, and to obtain the benefits of faster access to records, you acknowledge and agree that we may in 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, notes, mortgages, deeds of trust and other loan and/or security documentation. You further acknowledge and understand that 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 secure, and further agree that such records shall for all purposes be recognized and admissible in evidence or otherwise to prove the agreements, rights and obligations of the parties pursuant to any such records. E Mail and Facsimile Communications. You acknowledge and agree that the Internet is considered inherently insecure. Therefore, you agree that we have no liability to you whatsoever for any loss, claim or damages arising or in any way related to our response(s) to any e mail or other electronic communication, which we in good faith believe you have submitted to us. We have no duty to investigate the validity or to verify any e mail or other electronic communication; and may respond to an e mail at either the address provided with the communication, the e mail address in your Membership Application and Signature Card, or any other application or written communication actually received by us. Any account owner, co borrower, or authorized user may change the e mail address for statements or other information from us at any time. Although having no obligation to do so, we reserve the right to require authentication of e mails or electronic communications. The decision to require authentication is in the sole discretion of the Credit Union. We will have no obligation, liability or responsibility to you or any other person or company if we do not act upon or follow any instruction to us if a communication cannot be authenticated to our satisfaction. Further, the Credit Union may not immediately receive e mail communications that you send. Also, we will not take action based on e mail requests until we actually receive your message and have a reasonable opportunity to act. We reserve the right to require any notices from you be submitted to us in writing, and we may refuse to send certain information through unsecured e mail communications. If you need to contact the Credit Union immediately regarding an unauthorized transaction, stop payment request, or otherwise, you may call the Credit Union at the telephone number in the Schedule. You expressly consent and agree to us, our agents, or any parties we authorize sending and your receiving any communications hereunder by facsimile or other electronic methods including any offers for Credit Union, affiliate or third party services and/or products. CONSENT TO ELECTRONIC SIGNATURES. BY COMPLETING AND SUBMITTING OUR REQUEST, YOU CONSENT TO HAVING ALL DISCLOSURES PROVIDED OR MADE AVAILABLE TO YOU IN ELECTRONIC FORM AND TO DOING BUSINESS WITH THE CREDIT UNION ELECTRONICALLY. YOU AGREE TO THE SAME TERMS THAT APPLY TO A SIGNED APPLICATION OR AGREEMENT; AND YOU AGREE THAT SUBMITTING THIS CONSENT OR ACCEPTING THESE TERMS CONSTITUTES YOUR SIGNATURE AS THOUGH SAME WERE PHYSICALLY SIGNED BY YOU. IF THERE IS A CO APPLICANT OR USER, YOU REPRESENT AND WARRANT THAT SUCH CO APPLICANT OR USER HAS AUTHORIZED THE SUBMISSION OF THIS APPLICATION. THIS ELECTRONIC SUBMISSION/CONSENT QUALIFIES AS YOUR SIGNATURE FOR ALL PURPOSES AND USES WHATSOEVER. Links to Other Sites. Our website may contain links to third party websites. These links are provided solely as a convenience to you and not as an endorsement by the Credit Union of the contents on such third party website. Credit Union is not responsible for the content of linked third party sites and does not make any representations regarding the content or accuracy of materials on such third party websites. If you decide to access linked thirdparty websites, you do so at your own risk. Consent to Receive and Receipt of Electronic Disclosure For member convenience, you may choose to receive disclosures electronically. You can download and/or print the disclosures we provide via our website, provided with this Consent and Receipt; we will also e mail disclosures to the address you provide in your Membership Application and Signature Card. The following terms and affirmation indicate your consent to receive and receipt of these disclosures in an electronic 26

27 format, and your express representation to the Credit Union that you can access, read, download and/or print the information provided. In this agreement the singular (account owner) includes the plural (account owners). 1. You consent to receive the following disclosures in an electronic format via Marine FCU website and via e mail attachment as indicated herein below: ACCOUNT AGREEMENT FOR BUSINESS ACCOUNTS ACCOUNT AGREEMENT FOR CERTIFICATE ACCOUNTS CREDIT UNION BUSINESS CARD AGREEMENT UNIFORM COMMERCIAL CODE FUNDS TRANSFERS AGREEMENT AND DISCLOSURE FUNDS AVAILABILITY ELECTRONIC RECORDS, ELECTRONIC MAIL, FACSIMILE AND OTHER ELECTRONIC SERVICES AND COMMUNICATIONS ELECTRONIC FUNDS TRANSFER AND AGREEMENT PRIVACY NOTICE In the future we may electronically deliver to you other notices and disclosures related to any of the foregoing services, amendments to this agreement and other agreements/disclosures. Other disclosures may include: periodic account statements, deposit account disclosures, notices regarding changes in account terms and fees, NSF notices, over the limit and other fees/charges, notice of an account being below par value, inactive account/dormancy notices, privacy notices and adverse action notices. 2. You may request a paper copy of any disclosures or notices that you have agreed to receive electronically by writing, telephoning, or e mailing us at: Mailing Address: Marine FCU PO Box 1551 Jacksonville NC Web Address: Phone Numbers: [email protected] You may withdraw your consent to receive future electronic disclosures any time by e mailing us at [email protected]. Your withdrawal will become effective after we have received it and have had a reasonable opportunity to act on your request. A fee may be charged for paper disclosures as disclosed in the Schedule. 3. To access the disclosures you have agreed to receive electronically, you will need a computer with Adobe Acrobat Reader. If you don't have Adobe Acrobat Reader, you may download it free at: In order to retain the disclosures, you will need a printer or at least 450 KB of available space on your hard drive. By signing below and by accessing the items/disclosures described electronically, you agree to the terms above and consent to receive the above described disclosures electronically. You agree that the Credit Union is directed by you to send such disclosures to your e mail address and those disclosures are deemed received by you upon our sending the e mail contemporaneously with your opening of any accounts and/or services governed by these disclosures and agreements. I accessed and reviewed or had the opportunity to access and review the disclosures on the Credit Union s equipment and instructed the Credit Union to e mail the disclosures to the address I provided and understand that the disclosures are posted at the Credit Union s website where I may access and download and/or print same using my own PC, or another PC, or other electronic device to which I have access. 27

28 ELECTRONIC FUNDS TRANSFERS AGREEMENT AND DISCLOSURES 1. Purpose Of This Agreement. This Agreement defines your and the Credit Union s rights and responsibilities with respect to transactions. You understand that all agreements and rules and regulations applicable to your accounts and account services, as set forth in this Booklet and otherwise, remain in effect and apply to this Agreement, except as specifically modified in this Section. You agree to abide by this Agreement, and all rules, regulations and instructions of the Credit Union and the networks relating to the use of any Card and/or Access Device, as amended, modified, or revoked. The Credit Union may not offer all services discussed in this Agreement at this time. 2. Types Of Electronic Funds Transactions. The Electronic Funds Transactions we are or may be capable of handling in the future are indicated below. Some of these services may not apply to your account(s) and/or some of these services may not be available at all terminals. a. Automatic Teller Machines (ATMs). The Credit Union may issue to you an ATM card and Personal Identification Number ( PIN ) to be used to make transactions. You can use your ATM card at the Credit Union s ATMs to: (1) Withdraw up to $500 cash per day from available balances in the account(s) designated in your Membership Application ( Application ). (2) Check the balances in the account(s) designated in your Application (this is called an inquiry ); (3) Transfer funds between the account(s) designated in your Application; and (4) Make deposits at designated ATMs that we own. For security purposes, there are limits on the frequency and amount of transfers available at ATMs. b. Debit/Point of Sale Transactions. If we approve your Application for a POS/ATM Debit, VISA Chek Card, or other electronic Access Device, you may use your Card/Access Device to purchase goods and services at point of sale (POS) terminals designated by the Credit Union and anywhere participating merchants honor your Card/Access Device. Transactions hereunder will be covered by funds deducted from your checking share. Subject to the limitations in the Schedule, you may pay for goods and services (or make certain other transfers if the merchant is a financial institution) at applicable terminals up to the available balance in your designated checking share and any available credit under your applicable overdraft line of credit, and cause that share account to be debited for the amount of those purchases up to a maximum of $1,500 per day (with a PIN) or $3,000 per day (as a VISA Chek Card). Your available balance in that account may be reduced by the amount of any transaction as soon as the merchant has received authorization from us, even if the documentation evidencing the transaction has not yet been received and processed by us. A merchant is not required to receive prior authorization from us on every transaction. When the documentation has cleared through us, any hold placed on your account for the amount of the purchase or other transactions will be released and your account debited for that amount. NOTE: Cards designated as ATM only may not be used at POS or other non ATM terminals. c. Preauthorized Transfer Services. You can authorize the following transactions without the use of an access device issued by the Credit Union: (1) Payments: You can make payments on your loans with the Credit Union directly from your savings or checking shares; (2) Within Credit Union Transfers: You can arrange to transfer funds between your shares. By separate application, you can arrange to transfer funds from your accounts to the account(s) of other members; (3) Direct Deposits and Payments: You can authorize persons or companies to make direct deposits or withdrawals to or from your savings or checking shares for payroll, pension, social security and other types of deposits or payments. You may give other persons or companies written or oral permission to transfer payments from your Credit Union accounts through ACH or other electronic means. Such agreements or arrangements are solely between you and the other person or company. The Credit Union shall have no responsibility or liability to you for any such transactions. Thus, you should exercise caution in providing such authority and/or information to access your accounts to others. The authority or information you give to others hereunder applies to all ACH or other electronic transactions, whether evidenced by any type or writing or converted to a written instrument by the other person(s) (and/or their agents). All such transactions are deemed to be authorized by you. 28

29 d. Touch Teller. If we approve Touch Teller (audio response) access service for your accounts, you may access your accounts through Touch Teller (audio response) with a password that you must choose. You must use your password and account number to access your accounts. You may use Touch Teller to: Change your password Obtain account information related to any of your savings and loan accounts regarding current balance, checking history, savings dividends and rates, loan interest and payoff amounts, payroll and automatic deductions Make transfers to or from your savings, checking, Money Market, Open End Line of Credit accounts, or such accounts you have authorized in writing prior to such transfer request Request advances on your line of credit loans, deposit the proceeds in any of your accounts or have the proceeds mailed directly to you at the mailing address listed for your account Withdraw funds from savings, checking, and lines of credit by check made payable to you and mailed to you at your mailing address Make loan payments from any share to any loan account of yours (except mortgage loans). Telephone services are provided by our Member Resource Center staff during business hours. Verification of account ownership will be requested before account information is released. To ensure courteous and efficient service, supervisory personnel in our Member Resource Center may monitor calls randomly e. Electronic check conversion ( E Check ) types of transfers Your check or information you convey to a third party can result in an electronic funds transfer. This can happen in several ways. For example: You can purchase goods or pay for services and other bills; and authorize a merchant or service provider to convert your check into an electronic funds transfer. At the time you offer a check to a merchant or service provider, you may be asked to authorize the merchant or service provider to electronically collect a charge in the event that the check is returned for insufficient funds and/or other fees. Paying such a fee electronically is an electronic funds transfer. Your authorization to make these types of electronic funds transfers may be expressed in writing, implied through the posting of a sign or your participation in the initiation of the processing of the transaction. This can also happen when you provide information from your check or an account to another by telephone, Internet, or otherwise, who then converts the information given to an electronic transaction, ACH or otherwise. You agree that any such transaction is subject to all applicable terms and conditions set forth in this Membership Agreement. f. MFCU@Home. If we approve MFCU@Home, you may access your accounts through a personal computer (PC) or mobile device; you will choose a password and User ID. You must use your password along with your account number or User ID, to access your accounts. You may use MFCU@Home to: Change your password and User ID. Obtain account information related to any of your savings and loan accounts regarding current balance, checking history, savings dividends and rates, loan interest and payoff amounts, payroll and automatic deductions. Make transfers to or from your accounts you have authorized in writing prior to such transfer request. Make loan payments from any savings or checking share to any loan account of yours you have authorized in writing prior to such transfer request. Issue third party payable checks under Bill Payment Service. 29

30 For further information refer to the Online Services Agreement section below. g. Rules for Non PIN transactions: Your debit card or other access device also allows you to conduct transactions on various networks, which will generally require you to enter your PIN. Some merchants are authorized to accept transactions that are not processed via VISA network(s) without requiring you to enter your PIN. If you authorize a transaction on such other networks, the provisions of this agreement that provide protections for VISA network transactions such as Zero Liability will not apply. Networks that allow PIN less Transactions include: AFFN, Star, Cirrus, Plus, Interlink, Exchange, Maestro, and Accel. h. Online Bill Payment Service: The Payment Service allows users to make payments (pay bills) to any individual or entity in the United States or its territories and/or possessions as well as view participating Payees bills in an electronic format (E Bill). This service is not permitted on accounts with overseas addresses with the exception of FPO/APO addresses. In order to use MFCU@Home Payment service you must have a Marine FCU checking, ATM/Debit or money market. For further information refer to the Online Services Agreement section. i. Money Transfer Services: If you receive any transmittal amount from any Money Transfer Service (MTS) provider you agree to receive no more than $2,500 per day or more than $10,000 per month. We may increase or decrease these limits from time to time in our sole discretion. We reserve the right to accept or reject any MTS request in our sole discretion. Each transmittal amount that is sent to your Card will generally be posted to your Card within two (2) Business Days after we receive the Transmittal Amount from the Sender. j. Insufficient Funds Transactions: If your Account balance is insufficient to cover any transaction(s), we may treat these transactions as insufficient funds transactions; or as overdraft requests if you have an approved overdraft protection plan with us. The Credit Union reserves the right to refuse any transaction if you do not have an approved overdraft protection agreement with us, which decision shall be in the Credit Union's sole discretion. k. Electronic Processing and Transactions: Due to the processing systems for electronic transactions used in the United States and by us, a payment or other transaction may be effective/posted before we are open for business on the date scheduled for the payment or other transaction. Therefore, you are responsible for insuring that your account(s) have sufficient balances as applicable for the scheduled payment / transaction one business day prior to the date scheduled. If a payment is due on a Saturday, Sunday, or Federal holiday, the payment will occur on the first business day after the due date. In these cases, you should plan to have the payment initiated on the last business day before any of these days in order to ensure your payment is made on time. You may not make payments and/or transactions to a federal, state or local governmental or tax unit, or pay child support or alimony, or to make payments to other categories of payees that we establish from time to time using our electronic services. 3. General Rules for Using Your Access Devices. You acknowledge and agree to the following: a. Your Access Devices are for personal use only. You agree not to allow another person to use your Access Devices. b. You agree not to reveal your PIN/Password(s) to another person and WILL NOT write your PIN/Password(s) on any Access Device. You are responsible for all Transactions made by you or anyone else who uses your Access Devices with your knowledge and consent. You are also responsible for unauthorized use of your Access Devices to the full extent allowed by applicable law. In addition, any person other than yourself who uses your Access Devices is responsible for all Transactions they make and for all Transactions made by others with their permission. This does not limit your own responsibility. You agree to be responsible to maintain your Access Devices with maximum security. c. You authorize the Credit Union to debit/credit your accounts for all Transactions as if each Transaction were signed by you. Further, you agree that by acceptance or use of your Access Devices the Credit Union is authorized to pay from any account necessary to satisfy any Transaction, fee, or service charge that results from the use or misuse of your Access Devices. 30

31 d. You acknowledge that your Card and or any other Credit Union issued Access Devices remains the Credit Union s property and agree to surrender your Access Devices to the Credit Union or its agent upon demand or through retrieval by any other method. e. You agree to use caution when using any ATM or other electronic terminal or device to complete any Transaction contemplated by this Agreement. You further agree that the Credit Union shall have no responsibility to you or any user, or be liable for any personal injury or property damage, which may occur as a result of any act before, during, or after a Transaction or other visit to any ATM or other electronic terminal location. You or any user assumes the risk of nighttime use of any ATM or other electronic terminal location or other electronic banking device. f. A Credit Union issued Card or Access Device may be issued to any member or joint owner of legal age when qualified under the rules, regulations, and by laws of the Credit Union. Marine FCU may limit Access Devices to only one to each member or joint owner. g. If your Credit Union issued Card or Access Device is lost or stolen, you agree to notify the Credit Union immediately upon discovery of such loss or theft. Replacement of an Access Device may be issued by us at the cost set forth in the Schedule. You agree to pay the Credit Union the fee in effect at the time for all copies that you request from us. h. The Credit Union shall not be responsible for the use or condition of any ATM or other electronic banking terminal or device it does not own. Further, the Credit Union will not be responsible for any failure of an ATM or other electronic banking terminal or device to function except as specifically provided for by law. i. The Credit Union reserves the right to add or delete ATM or other electronic terminal locations or other electronic banking devices as it deems necessary. j. You agree to hold the Credit Union harmless in its pursuit to locate, apprehend, and prosecute unauthorized use of any Access Device issued by the Credit Union, and you agree to assist the Credit Union in these efforts. k. The Credit Union reserves the right to make any changes in the daily withdrawal limits it deems necessary. l. The Credit Union is not liable for any claims you may have against a merchant, company or other financial institution arising from use of your Access Device. m. The Credit Union cannot stop payment on any point of sale Transaction. n. Additional Charges for Transactions in a Foreign Currency and Cross Border Transactions. Currency Conversion Fee: If you effect or authorize a transaction with your access device in a currency other than US Dollars, VISA will convert the charge into a US Dollar amount. The VISA currency conversion procedure includes use of either a government mandated exchange rate, or a wholesale exchange rate selected by VISA, as applicable. The exchange rate VISA uses will be a rate in effect on the day the transaction is processed. This rate may differ from the rate in effect on the date of the purchase or the date the transaction was posted to your account. A Currency Conversion Fee of up to 2.8% will be applied to transactions that are converted from foreign currencies to U.S. dollars. Cross Border Transaction Fee: In addition, VISA charges us a Cross Border Assessment up to 2% on each transaction on all cross border transactions regardless of whether there is a currency conversion. For purposes of this Section, cross border transaction shall include both (a) transactions initiated in a foreign country which are subsequently settled in the United States, and (b) transactions initiated in the United States but which are ultimately settled in a country outside of the United States. The Credit Union will assess these fees to you to reimburse it for the fee it is required to pay for each of your transactions subject to these terms. The Cross Border transaction fee will be shown separately on your periodic billing statement. The Currency Conversion Fee, if it applies to the transaction, will be included in the transaction amount posted on your statement. o. You agree that by acceptance or use of an Access Device, or other Electronic Funds Transfer Services the Credit Union is authorized to pay from any account you have, jointly or otherwise, with the Credit Union any amount necessary to satisfy any transaction, fee or service charge that results from your use or misuse of such services. 31

32 p. You will not obtain any Access Device(s) to make transactions on your accounts with us that is not issued or approved by us. q. Merchants and others who honor the Chek Card or related Access Device(s) may give credit for returns and adjustments, and they will do so by initiating a credit with us, and we will credit that amount to your account. r. You understand that you must keep your share and share draft checking account open in order for your applicable electronic services to remain valid. You agree to return all Access Devices if you close your account(s), or upon our request. 4. Making ATM Transactions. Your PIN will allow you to identify yourself when making an ATM transaction. The presentation of your ATM card together with the input of your PIN constitutes your authorization to the Credit Union to make transactions. You agree to follow all instructions for use of ATMs accessible by your ATM card. Difficulties or complaints concerning the use or condition of any ATM should be reported directly to the Credit Union. Security or safety measures should be reported directly to the owner of any ATM not owned by the Credit Union. 5. Termination and Amendment. The Credit Union reserves the right at any time to terminate your right to make Transactions and to retrieve or ask for the immediate return of any Access Device it deems necessary without prior notice to you. If notification is required by law, notice will be mailed to you at the address shown on the Credit Union's share account records. It is the obligation of each member to provide new addresses to the Credit Union. 6. Access Device Revocation. Any Access Device issued by the Credit Union may be revoked without notice to you in the event that any of the following conditions occur: a. Overdrafts occur as a result of insufficient or uncollected funds on an account. b. Any transaction that occurs on your account(s) which results in a monetary loss to the Credit Union. c. Loan, VISA or other delinquency with the Credit Union. d. Forced closure of a share or share draft account at the Credit Union due to misuse. e. Special balance requirements, if any, are not maintained by you. f. Any other situation in which the Credit Union deems revocation to be in its best interest. 7. Transaction Fees. You are allowed to initiate transactions at any terminal, ATM or other access means owned by the Credit Union or any Network indicated in the Schedule. You may be charged certain transaction and other fees as set forth in the Schedule, which will be automatically debited from your share or checking account(s). The Credit Union reserves the right to establish and maintain transaction fees and charges, which may be modified from time to time. Note: Owners of non Credit Union ATMs may charge fees in addition to any fees disclosed in the Schedule. These fees are generally called a surcharge. This is not a fee charged by your Credit Union; however, any such fee will be paid from your account(s). 8. Service Limitations, Limitation or Frequency and Dollar Amounts of Transactions. Transfer Limitations. GENERAL LIMITATIONS GOVERNING THE AMOUNT AND NUMBER OF TRANSACTIONS ARE SET FORTH IN THE SCHEDULE. IN ADDITION, THE FOLLOWING LIMITATIONS ALSO GOVERN YOUR USE OF THESE SERVICES: a. General Limitations Applicable Accounts. For savings and money market shares, if applicable, you may make up to six (6) preauthorized, automatic, telephonic, or audio response transfers to another account of yours or to a third party during any statement period unless otherwise limited by applicable law. A preauthorized transfer includes any arrangement with the Credit Union to pay a third party from the member s account upon oral or written orders including orders received through the Automated Clearing House (ACH). There is no limit on the number of transactions you may make in the following manner: (1) transfers to any loan account with the Credit 32

33 Union; (2) transfers to another Credit Union account or withdrawals (checks mailed directly to you) when such transfer or withdrawal is initiated in person, by mail, or at an ATM. If a transfer request would exceed the transfer limitations set forth above in any statement period, the Credit Union may refuse or reverse the transfer, and your account will be subject to suspension or closure by the Credit Union and the Credit Union may impose a charge. Further, we may reduce the limit for point of sale transactions during any interruption in the electronic connection between the Credit Union and the retail outlet. Further, we may at any time limit or reduce the number or dollar amount of transactions when we, in our sole discretion, deem it in the best interest of the Credit Union. b. Card/Access Device Acceptance. We do not promise everyone will honor your Card or other Access Device, and we have no obligation to you if anyone refuses to accept your Card/Access Device. We are not liable if any merchant, bank, financial institution or other party refuses to honor your Card/Access Device, or otherwise fails to provide any services made available to you by Credit Union. c. POS/Debit/VISA Check Card Purchases. This limit in the Schedule is in addition to any ATM withdrawals. d. ATM Transactions. Because of the servicing schedule and processing time required in ATM operations, there is a delay between the time a deposit (either cash or check) is made and when it will be available for withdrawal. You should review the Credit Union s Funds Availability Policy to determine the availability of funds deposited at ATMs. e. Touch Teller (Audio Response). Your accounts can be accessed under audio response via a touch tone telephone only. Audio response service will be available for your convenience seven (7) days per week. This service may be interrupted for a short time each day for data processing. Unless otherwise specified in the Schedule, there is no limit to the number of inquiries, transfers, or withdrawal requests you may make in any one day, with the exception of the limitations on transfers from all non transaction shares as explained above and in the Schedule. f. Online Services. You may make transactions at any time seven (7) days per week. There may be some down time. Except as is otherwise provided in the Schedule or limits under other agreements with us, you may make fund transfers to your accounts or other accounts you authorize as often as you like; however, there are certain limitations on transfers from savings accounts, as discussed herein and above. Account balance and transaction history information may not show all account activity involving your accounts. You may not obtain account information related to accounts other than your accounts to which you have requested a transfer. Refer to Online Services Agreement Section for additional information. g. Bill Payment Service. You may make bill payment transactions subject to the limitations in the Schedule. The Credit Union will process bill payment transfer requests only to those creditors the Credit Union has designated in the User Instructions and such creditors as you authorize and for whom the Credit Union has the proper vendor code number. The Credit Union will not process any bill payment transfer if the required transaction information is incomplete. The Credit Union will withdraw the designated funds from your account for bill payment transfer by midnight on the date you schedule for payment. The Credit Union will process your bill payment transfer within one (1) business day on the date you schedule for payment. We will have no obligation to initiate any payment if there are not sufficient funds in your designated account, but may in our discretion do so pursuant to any applicable overdraft agreements. You must allow sufficient time for vendors to process your payment after they receive a transfer from the Credit Union. Please allow at least a seven (7) day lead time prior to your due date. The Credit Union cannot guarantee the time that any payment will be credited to your account by the vendor and will not be liable for any service fee, late charge, or finance charge. You agree to follow the requirements of the Bill Payment Service User Instructions and the Online Service Agreement, which are incorporated herein by reference and can be obtained from any branch location or online at Refer to Online Services Agreement Section for additional information. THE CREDIT UNION MAY SET OTHER LIMITS ON THE AMOUNT OF ANY TRANSACTION(S), AND YOU WILL BE NOTIFIED OF THOSE LIMITS. 9. Canceling a Bill Payment Transaction and Your Stop Payment Rights. Online Bill Payment Transactions: You may cancel or change a scheduled Online Bill Payment as set forth on the Bill Payment Screens. After the time period set forth in the Schedule has passed it is not possible to stop or cancel a payment. If we fail to cancel or stop any Online Bill Payment, the payment will stand unless you show us that payment to the payee was 33

34 unenforceable. If we recredit your account after transferring funds over a valid and timely cancellation request, you agree to sign a statement describing the dispute with the payee, to transfer to us all of your rights against the payee, and to assist us in any legal action taken against that person. Preauthorized Transactions: If you have arranged in advance to make regular electronic fund transfers out of your account(s) for money you owe others, you may stop payment of preauthorized transfers from your account. You must notify the Credit Union orally or in writing in time for us to receive your request three (3) business days or more before the scheduled date of the transfer. The Credit Union may require written confirmation of the stop payment order to be made within fourteen (14) days of any oral notification. If we do require the written confirmation, the oral stop payment order shall cease to be binding fourteen (14) days after it has been made. This means that the preauthorized payment and future preauthorized payments to the payee you identify may be paid by us from your account(s) after the 14th day. If you order us to stop a preauthorized transfer three business days or more before the transfer is scheduled, and the stop payment order is made according to the terms and conditions of the account and this Agreement, including the requirement that you give us the exact amount of the debit, the next date of the debit and the exact name of the payee, and we do not do so, we will be liable for your losses or damages proximately caused by our failure. E Check: When any party converts any check, using the information on the paper via any means to send an electronic message to us, such message is an order by you to immediately take the money from your account. You cannot stop payment of an E Check transaction, because it is already done. Other Transactions: Other transactions hereunder are considered contemporaneous. Therefore, you have no right and we have no obligation to stop or to attempt to stop any other transactions. 10. Right to Documentation. a. Terminal Transactions. You can get a receipt at the time you make any transfer to or from your account using any automatic teller machine or a point of sale terminal. b. Direct Deposits. If you have arranged to have direct deposits made to your accounts at least once every sixty (60) days from the same person or company, the person or company making the deposit will tell you every time the money is sent to us. You can call or write us at the telephone number or address listed in the Schedule to find out whether a deposit has been made. If the only possible transfers to or from your accounts are direct deposits, you will get a statement from us at least quarterly. c. Periodic Statements. Transfers and withdrawals transacted through an ATM or POS terminal, Touch Teller, MFCU@Home, or debit card purchase will be recorded on your periodic statement. You will receive a statement or notice of the availability of your statement monthly unless there is no transaction in a particular month. In any case, you will receive a statement or notice at least quarterly. 11. Notice When Amount of Preauthorized Payment(s) Vary. If you preauthorize the Credit Union to make payments to persons or companies other than the Credit Union that vary in amount, then the person or company you are going to pay has the obligation to notify you ten (10) days before each such payment is due and how much it will be. (When required, you must fill out an appropriate agreement with the Credit Union authorizing such payments, the terms of which are incorporated herein). You may choose instead to get this notice only when the payment differs by more than a certain amount from the previous payment, or the amount falls outside certain limits that you set. 12. Liability for Failure to Make a Transaction. If the Credit Union does not complete a transaction to or from your account on time or in the correct amount according to our agreement with you, the Credit Union may be liable for your losses or damages. However, there are some exceptions to this, which include the following: a. You do not have enough money in your account to make the transaction through no fault of ours. b. The transaction goes over the credit limit on your overdraft line. 34

35 c. The terminal where you were making the transaction does not have enough cash. d. The terminal or other system was not working properly and you knew about the breakdown when you started the transaction. e. Circumstances beyond our control (such as fire, flood or electrical failure) prevent the transaction, despite reasonable precautions that we have taken. f. You have not properly followed instructions for operation of the ATM or system. g. The funds in your account are subject to legal process or other similar encumbrance. h. The transaction would exceed one of the established limits contained in this Agreement or by other Credit Union agreements. i. Access to your account has been blocked after you have reported your Access Device lost or stolen or you use a damaged or expired Access Device. 13. Information Disclosure. We will disclose information to third parties about your account or the transactions you make: (1) when it is necessary for completing transactions, or (2) in order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant, or (3) in order to comply with government agency or court orders, or (4) if you give us your written permission. 14. Business Day Disclosure. Our business days are Monday through Friday, excluding holidays. 15. In Case of Errors or Questions about Transactions. In case of errors or questions about your electronic transfers, telephone us at the telephone numbers or write us at the address listed in either section E, Membership Liability, or at the end of this disclosure, as soon as you can. (For any errors involving a line of credit account, you must review your Loan Agreement and Disclosure and/or VISA or MasterCard Credit Card Agreement for a description of your rights.) We must hear from you no later than sixty (60) days after we sent the first statement on which the problem appears. You should provide the following information: 1. Tell us your name and account number. 2. Describe the transfer you are unsure about, and include to the extent possible, the type and date, and explain as clearly as you can why you believe it is an error or why you need more information. 3. Tell us the dollar amount of the suspected error. If you tell us orally, we may require that you send us your complaint or question in writing within ten (10) business days, at the address listed in this Agreement and Disclosure. We will tell you the results of our investigation within ten (10) business days after we hear from you and will correct the error within one (1) business day after determining that an error occurred. If we need more time, however, we may take up to forty five (45) days to investigate your complaint or question. If we decide to do this, we will re credit your account within ten (10) business days of receiving the error notice, and will inform you, within two (2) business days, after providing the provisional credit, with the amount you think is in error, and the date, so that you will have the use of the money during the time it takes us to complete our investigation. We will correct the error, if any, within one (1) business day after determining that an error occurred. A report of our results will be delivered or mailed to you within three (3) business days after the conclusion of the investigation (including, if applicable, notice that a provisional credit has been made final). For transactions initiated outside the United States, or resulting from a point of sale debit card transaction, we will have ninety (90) calendar days instead of forty five (45) business days, unless otherwise required by law, to investigate your complaint or question. For transactions on accounts that have been opened less than thirty (30) calendar days, we will have twenty (20) business days instead of ten (10) business days to credit your account, and ninety (90) calendar days instead of forty five (45) business days, unless otherwise required by law, to investigate your complaint or question. 35

36 Special Rules for Provisional Credit for Visa Chek Card Transactions: If you believe a Visa Chek Card Transaction was unauthorized, we will recredit your account within five business days for the amount you think 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 in writing, we need not recredit your account, or we may reverse any credit previously made to your account, until we have received it. We may withhold provisional credit, to the extent allowed under applicable law, if the delay is warranted by the circumstances or your account history. 16. Your Liability for Unauthorized Transaction. Tell us IMMEDIATELY if you believe your Access Device has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You are responsible for all transfers you authorize using an EFT service under this Agreement. If you permit other persons to use an EFT service or your Access Device, you are responsible for any transactions they authorize or conduct on any of your accounts. Special Notice to VISA Chek Cardholders. If there is an unauthorized use of your VISA Chek Card or an Internet transaction, and the transaction takes place on the VISA network, then your liability will be zero ($0.00). This provision limiting your liability does not apply to either VISA commercial cards or ATM cash disbursements. Additionally, your liability with respect to unauthorized transactions may be greater than the above zero ($0.00) liability limit, to the extent allowed under applicable law, if the credit union reasonably determines, based on substantial evidence, that you were grossly negligent or fraudulent in the handling of your account or card. In any case, to minimize your potential liability you should notify us of any unauthorized use no later than 60 days after your statement was mailed to you. See limitations applicable to Non PIN transactions earlier in this agreement. For all other EFT transactions that require the use of a PIN or Access Code, if you tell us within two (2) business days, you can lose no more than $50 if someone uses your card and PIN or Access Code without your permission. If you do not tell us within two (2) business days after you learn of the loss or theft of your Card, PIN or Access Code, and we can prove that we could have prevented the unauthorized transaction if you had told us in time, you could lose as much as $500. In no event will you be liable for more than $500 for any unauthorized transaction. Also, if your statement shows transfers that you did not make, tell us immediately. If you do not tell us within sixty (60) days after the statement was mailed to you, you may not get back any money lost after the sixty (60) days if we can prove that we could have stopped someone from making the transfers if you had told us in time. If a good reason (such as a hospital stay) kept you from telling us, we will extend the time periods. If you believe that your Card or Access Code has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, you must call us at or ; e mail us at [email protected]; or write us at PO Box 1551, Jacksonville, NC If a good reason (such as extended travel or hospitalization) kept you from telling us, we may extend these time periods. 17. Reporting a Lost Card, Access Device, or PIN. If you believe that any Access Devise has been lost or stolen or that someone has withdrawn or may withdraw money from your account without your permission, you agree to immediately notify us. You can call or write the Credit Union at the telephone number or address listed in this Booklet or the Schedule, or you may e mail us at the address provided in the Schedule. If you recover your Card/Access Device after you have notified us, DO NOT USE IT. Online Services Agreement 1. The terms and conditions stated herein apply to all Online Services, including but not limited to: MFCU@home, text banking, Funds Transfer, Bill Payer, and Mobile Banking. 2. Other Agreements. You agree that, when you use Online Services, you remain subject to the terms and conditions of your existing agreements with the Credit Union except as expressly otherwise stated herein; and with any unaffiliated service providers, including, but not limited to, your internet service provider and/or mobile service provider and that this Agreement does not amend or supersede any of those agreements. You understand that those agreements may provide for fees, limitations and restrictions which might impact your use of Online Services (such as data usage or text messaging charges imposed on you by your mobile service provider for your use of or interaction with Text Banking and/or Mobile Banking), and you agree to be solely responsible for all such fees, limitations and restrictions. You agree that only your service provider is responsible for its products and 36

37 services. Accordingly, you agree to resolve any problems with your provider directly without involving us. Any deposit account, loan, or other product accessed through this Service is also subject to the Account Agreements and Disclosures provided at the time of Account opening. You should review the Account disclosures carefully, as they may include transaction limitations and fees which might apply to your use of Online Services. 3. Use of Services. In order to properly use Online Services, you should review and follow the instructions provided on our website. You agree to accept responsibility for learning how to use Online Services in accordance with the online instructions and agree that you will contact us directly if you have any problems with any Online Service. We may modify the Service from time to time at our sole discretion. In the event of any modifications, you are responsible for making sure you understand how to use the Services as modified. You also accept responsibility for making sure that you know how to properly use your Device(s) and we will not be liable to you for any losses caused by your failure to properly use the Service or your Device. a. Permitted Transfers/Transaction. You may make transactions at any time seven (7) days per week. There may be some downtime. You may use Online Services to transfer funds between your eligible Marine FCU accounts ("Internal Transfer"); some Online Services may permit you to transfer funds to or from an Account at another financial institution. You must have sufficient funds available in the selected account at the time the transfer request is received, including any available overdraft protection. We may process transfers that exceed your available balance at our sole discretion. If we process the transfer and unless your overdraft protection is provided via an overdraft transfer or a Line of Credit, you agree to cover any overdraft amount plus any applicable fees. You may be subject to fees or account conversion if you exceed the transactions limits of your Account using Online Services or any other methods outlined in your Deposit Account Agreement and Disclosures. Account Limitations outlined above apply to all Online Services. We may also limit the type, frequency, and amount of transfers for security purposes and may change or impose the limits without notice, at our option. You agree to confirm the completion of each transfer in your account balance and transaction history before withdrawing transferred funds. 4. Your Responsibilities. You represent and agree to the following by enrolling in any Online Service(s) or by using the Service(s): a. Account Ownership/Accurate Information. You represent that you are the legal owner of the Account(s) and other financial information which may be accessed via Online Services. You represent and agree that all information you provide to us in connection with Online Services is accurate, current, and complete, and that you have the right to provide such information to us for the purpose of using Online Services. You agree not to misrepresent your identity or your account information. You agree to keep your account information up to date and accurate. You represent that you are an authorized user of the Device(s) you will use to access Online Services. b. User Security. You agree to take every precaution to ensure the safety, security and integrity of your account and transactions when using Online Services. You agree not to leave your Device(s) unattended while logged into Online Services and to log off immediately at the completion of each access by you. You agree not to provide your username, password or other access information to any unauthorized person. If you permit other persons to use your Device(s), login information, or other means to access Online Services, you are responsible for any transactions they authorize and we will not be liable for any damages resulting to you. You agree not to use any personally identifiable information when creating shortcuts to your Account. We make no representation that any content or use of Online Services is available for use in locations outside of the United States. Accessing Online Services from locations outside of the United States is at your own risk c. User Conduct. You agree not to use Online Services or the content or information delivered through Online Services in any way that would: (a) infringe any third party copyright, patent, trademark, trade secret or other proprietary rights or rights of privacy, including any rights in the Software; (b) be fraudulent or involve the sale of counterfeit or stolen items, including, but not limited to, use of Online Services to impersonate another person or entity; (c) violate any law, statute, ordinance or regulation (including, but not limited to, those governing export control, consumer protection, unfair competition, anti discrimination or false advertising); (d) be false, misleading or inaccurate; (e) create liability for us or our affiliates or service providers, or cause us to lose (in whole or in part) the services of any of our service providers; (f) be defamatory, trade libelous, unlawfully 37

38 threatening or unlawfully harassing; (g) potentially be perceived as illegal, offensive or objectionable; (h) interfere with or disrupt computer networks connected to Online Services; (i) interfere with or disrupt the use of Online Services by any other user; or (j) use Online Services in such a manner as to gain unauthorized entry or access to the computer systems of others. d. No Commercial Use or Re Sale. You agree that the Service is only for the personal or business use of individuals authorized to access your account information. You agree not to make any commercial use of Online Services or resell, lease, rent or distribute access to Online Services. e. Indemnification. Unless caused by our intentional misconduct or gross negligence, you agree to indemnify, defend and hold harmless Marine FCU, its affiliates, officers, directors, employees, consultants, agents, service providers, and licensors from any and all third party claims, liability, damages, expenses, and costs (including, but not limited to, reasonable attorneys fees) caused by or arising from (a) a third party claim, dispute, action, or allegation of infringement, misuse, or misappropriation based on information, data, files, or otherwise in connection with the Service; (b) your violation of any law or rights of a third party; or (c) your use, or use by a third party, of Online Services. 5. Data Security for Online Services. Online Services are accessible only over the Internet. The Credit Union offers various technologies and services, and continually reviews, updates and modifies these technologies and services in order to protect your privacy and security. Encryption is used to scramble the messages sent between you (your browser) and our servers to prevent unauthorized access to your information. The various systems and servers used to provide Online Services are architected in a way that isolates the publicly accessible Web servers from the data servers. Additional technologies such as anti virus, intrusion detection, and intrusion prevention monitor and protect our systems. Use of passwords help verify that only authorized persons access Online Services, by comparing the password entered with the password stored on our servers. We lock your Online Services account if the password is entered incorrectly too many times. Multiple Challenge Questions add another layer of authentication when you attempt to access Online Services from an unrecognized device. We use Extended Validation SSL certificates (EV SSL Certificates) and only support high security browsers (designed to recognize EV SSL Certificates) to provide you with visual clues, such as turning the address bar of your browser green, when you visit our site. Looking for these visual clues, and only accessing Online Services when these clues are visible, help protect you from phishing scams. 6. Bill Payment Service. Bill Pay is an electronic payment service. You may use a personal computer to access the Bill Pay service through Credit Union s web page on the Internet or you may access some of the Bill Pay services by using a mobile device. Bill Pay allows you to schedule bill payments electronically. Subject to any regulatory or Credit Union imposed limitations on usage, you can arrange for the payment of bills from a Credit Union checking share. Access to Bill Pay is made available pursuant to a license agreement by and between Credit Union and the Credit Union s third party service provider (Vendor). Any interruption of service or access caused by Vendor will prevent your use of the service. To utilize the services, you must enter your User ID and Password ( Access Device ) and otherwise satisfy the system s security procedures. Detailed instructions for use of Bill Pay are contained in the online help menus available while using Bill Pay. a. Designation of Account(s). In order to use Bill Pay you must have a checking account with the Credit Union. That checking account, or the one you designate if you have more than one, will be treated as the designated checking account for transactions accomplished through Bill Pay (Bill Pay Account). b. Equipment and Technical Requirements. To have Bill Pay access, you are required to acquire the necessary equipment, services and software. These include a personal computer, modem, Internet Service Provider (ISP) and a supported Browser Software (such as Mozilla Firefox or Microsoft Internet Explorer). As browsers are updated over time, older versions may not function effectively for Bill Pay. It is your responsibility to upgrade your browser when it becomes apparent it is needed to ensure that you can access the Bill Pay system. c. Transaction Modes. Bill payments can be scheduled as single payments, multiple payments or recurring payments using the designated Bill Payment screens. You must enter a payment date or a start and end date, depending on the type of payment, for each bill payment. Bill payments are scheduled by you to be debited from your Bill Pay Account based on the date(s) you enter on the bill payment screens(s). 38

39 Funds will generally be debited from your Bill Pay Account within three (3) business days of the payment processing date but may be debited on the date the payment is scheduled. If you designate a payment with a payment date of today's date, sufficient funds must be available on the day and at the time you request the payment. Bill payments with today's date as the bill payment date may not be canceled or changed for any reason once they have been processed. You may edit or delete payments until they are processed, as instructed on the Bill Payment screen(s). Bill payments can also be scheduled with a bill payment date in the future, up to 364 days in advance of the bill payment date. The bill payment date will be the date you entered, or the next business day should the bill payment date fall on a weekend or holiday. Sufficient funds must be available by midnight of the night before the processing date, but may be deducted from your Bill Pay Account on the bill payment date entered by you. These transactions may be canceled or changed until they are processed, as instructed on the Bill Payment screen(s). If you designate a bill payment as a Recurring transaction, you may request, and Credit Union will use, a start date that reoccurs on a specified regular basis (i.e., weekly, bi weekly, monthly, etc). You will designate a start and end date. Sufficient funds must be available by midnight of the night before Start Date, but will be deducted from your Bill Pay Account on the start date. Recurring transactions may be canceled or changed until they are processed, as instructed on the Bill Payment screen(s). d. Transaction Processing. Funds will be taken out of your Bill Pay Account within two business days of the payment processing date. In many cases, your bill payments are electronically delivered to the payee within three (3) business days of the bill payment date. However, some payees are not set up to accept electronic payment. In these cases, a check will be sent, which may take five business days to process and deliver to the payee. Bill Pay provides an indication of how many business days to allow for each payee you designate. This indication is, however, only an estimate and actual receipt of payment may be longer. You must allow sufficient time (2 or 5 business days, as indicated) for Bill Pay to receive your request and process the bill payments so that the funds can be delivered to the payee on or before the payment due date (the due date shown on your invoice or provided in your agreement with the payee, not taking into account any grace period provided by the payee). If you do not allow sufficient time, you assume full responsibility for all late fees, finance charges, or other actions taken by the payee. If you properly schedule your payment with sufficient time, and the payment is not received by the payee, or is received late, Credit Union will assume responsibility for any late fees or finance charges, if you notify Credit Union of such late fees or finance charges within a reasonable time. Credit Union is responsible only for exercising ordinary care in making payments upon your authorization and for mailing or sending a payment to the designated payee. Credit Union is not liable in any way for damages you incur if: you do not have sufficient funds to make the payment on the processing date; the estimate of time to allow for delivery to the payee is inaccurate; there are mail delivery delays, changes of merchant address or account number; any merchant fails to account correctly for or credit the payment in a timely manner; or for any other circumstances beyond the control of Credit Union. If a payment is made through use of Bill Pay with insufficient funds in your account on the processing day, you may be subject to a non sufficient funds (NSF) fee as disclosed in the Schedule. You must keep Credit Union aware of any changes in your current home or business phone numbers and addresses or e mail address, as applicable. You are responsible for monitoring the Bill Pay activity to verify that you did not have a payment that was not processed due to insufficient funds in your account. If a payment is not processed due to insufficient funds, the payment will be automatically retried, generally within two (2) business days. If you have a payment that failed because of insufficient funds, you are responsible for either making alternate arrangements for the payment or rescheduling the payment through Bill Pay. If you have payments that failed because of insufficient funds, your Bill Payer may be blocked, and any other payments previously scheduled must be re scheduled after the Bill Payer is unblocked. e. Canceling or Modifying Bill Pay Authorized Payments. Bill Pay payment transactions which cannot be canceled or changed once they are processed, as instructed on the Bill Payment screen(s). To request a cancellation of a payment or change a Bill Pay transaction designated with a future bill payment date or a Recurring date, you must use Bill Pay and follow the instructions provided. 39

40 If Bill Pay is not accessible you understand and agree that Credit Union will only accept a verbal or written notice to cancel a Bill Pay transaction if it relates to a payment designated as Recurring or with a future payment date. You understand that this notice is acceptable only if it is received no later than three business days before the scheduled date of the payment. You may contact the Credit Union via phone at or or via MFCU@home Secured Support e mail. If you call, we may also require you to put your request in writing and get it to us within fourteen days after you call. If the payment was designated as Recurring, the notice must detail whether the cancellation applies to only one of the recurring transactions or all transactions in the recurring stream. There may be a fee associated with canceling a payment. f. Limitations on Bill Pay Services. 1) Dollar Amounts. There is a dollar limit of $9,999 (or the available balance in your designated funding account, whichever is less) on your Bill Pay account in any 24 hour period. 2) Available Funds Required. All bill payments initiated through Bill Pay are subject to sufficient funds being available in the affected account to cover the payment on the Bill Payment Date. 3) Payees. You may utilize the Bill Pay service to make bill payments up to the maximum number of payees permitted by Vendor. Any payee you wish to pay through Bill Pay must be payable in U.S. Dollars and be located in the United States. Each payee must appear on the payee list you create with us and the account you are paying with must be in your name. You may not use Bill Pay to make payments to a federal, state, or local governmental or tax unit, or to pay child support or alimony, or to make payments to other categories of payees that we establish from time to time 4) Payment Dates. If a payment is due on a Saturday, Sunday, or Federal holiday, Bill Pay will schedule the payment to occur on the first business day after the due date. In these cases, you should plan to have the payment initiated on the last business day before any of these days in order to ensure your payment is made on time. 5) Telephone Access. The following may not be accomplished over the phone: User Access Code changes (including passwords); setting up payee accounts; and, except when Bill Pay is not accessible over the Internet, canceling or modifying a Bill Pay transaction. (See paragraph entitled "Canceling or Modifying Bill Pay Authorized Payments.") 7. Text Banking a. If you sign up for Text Banking, we may send any Credit Union Text Banking messages through your communication service provider in order to deliver them to you. You agree that your communication services provider is acting as your agent in this capacity. b. You agree to provide a valid phone number for this service so that we may send you certain information about your applicable account(s). We will determine in our sole discretion what information we make available through this service. c. You agree to indemnify, defend, and hold us harmless from and against any and all claims, losses, liability, cost and expenses (including reasonable attorneys fees) arising from your provision of a phone number that is not your own or your violation of applicable federal, state, or local law, regulation or ordinance. Your obligation under this paragraph shall survive termination of the Agreement. d. Credit Union Text Banking is provided for your convenience and does not replace your monthly account statement(s), which is the official record of your accounts. e. This service may not be encrypted and may include personal or confidential information about you, such as your account activity or status. You agree to protect your communications device(s) that receives information through this service and not to let any unauthorized person have access to the information we provide to you through this service. 40

41 f. We may send you marketing messages through the Credit Union Text Banking service. g. Receipt of account information through Credit Union Text Banking may be delayed or impacted by factor(s) pertaining to your phone carrier or other parties. h. We will not be liable for losses or damages caused in whole or in part by your actions or omissions that result in any disclosure of account information to third parties. Also, nothing about Credit Union Text Banking creates any new or different liability for us beyond what is already applicable under your existing account agreements. i. Credit Union Text Banking is only available to such accounts as we make available from time to time in our sole discretion. j. There is no separate service fee for this service but you are responsible for any and all charges, including, but not limited to, fees otherwise applicable to your account(s) and fees associated with text messaging imposed by your communications service provider. Message and data rates may apply. Such charges may include those from your communications service provider. Message frequency depends on user preferences. k. To cancel your plan, send STOP to at any time. For help or information on these products, send HELP to You will never receive a Credit Union Text Banking message that asks you to send us any sensitive personal or financial information such as your social security number or your account number. If you ever receive such a request for sensitive personal or financial information, do not respond to the message and call us at or to report the incident. For additional assistance, contact the Member Resource Center at the numbers listed above. l. The terms and conditions in this Agreement are in addition to, and do not supersede or replace, any other agreements applicable to any of your accounts with us. 8. Mobile Banking. Marine FCU endeavors to provide you with the highest quality Mobile Banking (the Service ) available. By enrolling in the Service, you agree to all the terms and conditions contained in this Agreement and Disclosure (the Agreement ). We may offer additional Mobile Banking services and features in the future. Any such added Mobile Banking services and features will be governed by this Agreement and by any terms and conditions provided to you at the time the new Mobile Banking service or feature is added and/or at the time of enrollment for the feature or service, if applicable. From time to time, we may amend these terms and modify or cancel the Mobile Banking services we offer without notice, except as may be required by Law. a. Definitions. As used in this Agreement and Mobile Banking services, the following words have the meanings given below: Account(s) means your eligible Marine FCU checking, savings, loan, share certificate, or other Marine FCU products that can be accessed through Mobile Banking. Device means a supportable mobile device including a cellular phone or other mobile device that is web enabled and allows secure SSL traffic. Your wireless carrier may assess you fees for data services. Please consult your wireless plan or provider for details. Mobile Banking means the banking services accessible from the Device you have registered with us for Mobile Banking. b. Description of Service. Mobile Banking is offered as a convenience and supplemental service to our Online Banking services. It is not intended to replace access to Online Banking from your personal computer or other methods you use for managing your accounts and services with us. Mobile Banking allows you to access your Marine FCU account information, make payments to payees, transfer funds and conduct other banking transactions. To utilize the Mobile Banking Service, you must be enrolled to use Online Banking and then activate your Device within the Online Banking system. Information about Marine FCU s Mobile Banking service is available on our website at We reserve the right to limit the types and number of accounts eligible and the right to refuse to make any transaction you request through Mobile Banking. We may also reserve the right to modify the scope of the Service at any time. Mobile Banking may not be accessible or may have limited utility over some network carriers. In addition, the Service may not be supportable for all Devices. Marine FCU cannot guarantee and is not responsible for the availability of data services provided by your mobile carrier, such as data outages or "out of range" issues. 41

42 9. Other Services. From time to time the Vendor may offer additional Online Services (such as Finance Works or Debit Rewards, for example). These Services are subject to all terms and conditions outlined herein as well as any terms and conditions disclosed by the Vendor via and are subject to change without notice. PRIVACY NOTICE FACTS Why? What? How? WHAT DOES MARINE FEDERAL CREDIT UNION DO WITH YOUR PERSONAL INFORMATION? Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share and protect your personal information. Please read this notice carefully to understand what we do. The types of personal information we collect and share depend on the product or service you have with us. This information can include: Social Security number/employer Identification Number and income Account balances and payment history Credit history and credit scores When you are no longer our member we continue to share your information as described in this notice. All financial companies need to share members personal information to run their everyday business. In the section below, we list the reasons financial companies can share their members personal information; the reasons Marine Federal Credit Union chooses to share; and whether you can limit this sharing. Reasons we can share your personal information Does Marine Federal Credit Union share? Can you limit this sharing? For our everyday business purposes such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus YES NO For our marketing purposes to offer our products and services to you For joint marketing with other financial companies YES NO For our affiliates everyday business purposes Information about your transactions and experiences For our affiliates everyday business purposes Information about your creditworthiness For our affiliates to market to you YES N/A For our nonaffiliates to market to you NO N/A YES YES NO NO N/A N/A Who we are Who is providing this notice? Marine Federal Credit Union 42

43 Questions? Call or go to What we do How does Marine Federal Credit Union protect my personal information? How does Marine Federal Credit Union collect my personal information? Why can t I limit all sharing? To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We collect your personal information, for example, when you Open an account or deposit money Pay your bills or apply for a loan Use your credit or debit card We also collect your personal information from others, such as credit bureaus, affiliates, or other companies. Federal law gives you the right to limit only sharing for affiliates everyday business purposes information about your creditworthiness affiliates from using your information to market to you sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing. Definitions Affiliates Nonaffiliates Joint marketing Companies related by common ownership or control. They can be financial and nonfinancial companies. Marine Federal Credit Union does not share with our affiliates. Companies not related by common ownership or control. They can be financial and nonfinancial companies. Marine Federal Credit Union does not share with nonaffiliates so they can market to you. A formal agreement between nonaffiliated financial companies that together market financial products or services to you. Other Important information For more information on our privacy policy, you may write us at P O Box 1551, Jacksonville, NC , or call us at , or visit our website at Notices and Joint Relationships Except where expressly required by applicable law, we will provide all notices to the person (member) listed first on any application, agreement or other relevant document with us. The notice will be mailed to the address noted for said person on the application agreement or other document. If this person (member) has agreed to receive notices and disclosures electronically, then we can send all such notices and notifications, to the or Internet address provided by said person; or we shall post or otherwise give notice by posting a notice, providing a link or using such other electronic methods authorized under applicable laws and/or regulations. All joint owners, borrowers and guarantors agree to the receipt and sufficiency of any notice or notification sent according to this paragraph. Modification Marine Federal Credit Union reserves the right to modify, change or amend this Privacy Policy and Agreement at any time without notice other than as expressly required by applicable law. 43