AGREEMENTS &DISCLOSURES

Transcription

1 AGREEMENTS &DISCLOSURES Shared Accounts Truth In Savings Electronic Services f E B R U A R Y

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3 FOREWORD The purpose of this booklet is to disclose information, terms, conditions, and the various laws and regulations relating to Share Accounts, Truth in Savings, and Electronic Services to help you better understand your rights and obligations as a member of Kinecta Federal Credit Union. This Agreements and Disclosures booklet is effective February 1, 2010 for Fees and Charges and May 1, 2009 for all other terms and conditions and supersedes any conflicting terms and conditions contained in the Agreements and Disclosures booklets dated September 5, 2002, February 1, 2004, January 1, 2007 and subsequent amendments. Throughout this disclosure booklet, the words I, me, mine, my, us, they, their, and our mean each and all of those (whether one or more persons) who are subject to the Agreement(s) as a result of signing an Account Signature Card for each respective account. The words you, your, and yours mean Kinecta Federal Credit Union. Copy Received: I acknowledge receipt of a copy of this Agreements and Disclosures booklet.

4 Table of Contents Part I. Membership...1 Part II. Share Account Agreement and Truth in Savings Disclosures...2 Terms and Conditions Applicable to: Individual and Joint Accounts...8 Pay-on-Death Designations...8 Trust Accounts (Totten or Passbook Trust)...8 Trust Account Terms and Conditions...9 Custodial Accounts...11 Fiduciary Accounts...12 Sole Proprietorship Accounts...12 Corporate, Partnership, and Unincorporated Association (Club) Accounts...12 Dividends...13 Terms and Conditions Applicable to Specific Accounts: Regular Savings Accounts...14 Pledged Share Accounts...14 Impound/Escrow Accounts...15 Contributory IRA Share Accounts...15 Money Market Checking, Money Market Savings, and IRA Money Market Share Accounts...15 Holiday Share Accounts...15 Share Draft (Checking) Accounts...16 Share Certificates Accounts...19 IRA Share Certificate Accounts...21 College Saver Share Certificate Accounts...21 Youth Club Certificate Accounts...21 Part III. Delayed Funds Availability Policy...22 Part IV. Electronic Services Agreement and Disclosures General Disclosures Applicable to All Electronic Services...23 Additional Disclosures Applicable to: Preauthorized Deposit of, Payroll Deductions, Pension Checks, and Federal Recurring Payments...28 Preauthorized Payment Services...28 Electronic Check Transactions...29 ATM Transactions...30 Point-of-Sale Transactions...32 ATM and Point-of-Sale Electronic Funds Transactions for Youth Club Account Holders Electronic Access Systems...34 Bill Payment Services...36 Part V. Funds Transfer Agreement and Notice...38

5 PART I MEMBERSHIP New Membership Eligibility Eligibility for Kinecta membership requires submission of a Membership Application with a deposit in the amount of the par value of a share (currently $5.00) or more to open a Regular Share Account. In addition, all membership applications are subject to verification of field of membership and other eligibility requirements, applicant s identity, and background information, as determined by the Credit Union and/or required by law, prior to membership being granted. All applicants for membership must submit a valid U.S. Government- or Stateissued photo identification, a Social Security card and/or a Taxpayer Identification Number, and/or any other required identification, as determined by the Credit Union. As required by federal law, the Credit Union must verify the identity of each person seeking to open an account (including joint owners) and must maintain records of the information used to verify each person s identity. Field of Membership Employees of Kinecta s Select Employer Groups (SEGs) are eligible for membership. A list of these companies is on file at the Credit Union headquarters. The term employment in this section refers to employment by one of the abovereferenced SEGs. Employees who retire from employment may join the Credit Union for the first time or reestablish a lapsed membership at any time. Any member of the immediate family or household of a Kinecta member may join or rejoin the Credit Union at any time, provided that the member is in good standing with the Credit Union. Immediate family member is defined as spouse, child, sibling, parent, grandparent, or grandchild. For the purposes of this definition, immediate family member includes stepparents, stepchildren, stepsiblings, and adoptive relationships. Household is defined as persons living in the same residence maintaining a single economic unit. Organizations of persons eligible for membership may qualify to open organizational accounts (for example, SEG employees club accounts). For further information regarding these accounts, contact the Credit Union. Members of the Consumers Cooperative Society of Santa Monica (CCSSM) are also eligible for membership. A person who is not an employee or retiree of a SEG or an immediate family or household member of a Kinecta member may qualify for Kinecta membership by first joining the CCSSM and any other individuals or organizations defined in the Credit Union s Charter. 1

6 2 PART II SHARE ACCOUNT AGREEMENT AND TRUTH IN SAVINGS DISCLOSURES 1. I must be and remain a member in good standing to maintain any account. 2. The par value of a share necessary to become a member and maintain accounts with you is currently $5.00. This must be initially deposited into a Regular Share Account. 3. No accounts are transferable (except checking accounts) as defined in Regulation D, 12 CFR, Part 204. For all accounts, except checking accounts, during any statement period, I may not make more than six (6) withdrawals or transfers to another Credit Union account of mine or to a third party by means of a preauthorized or automatic transfer or telephonic order or instruction. No more than six (6) transfers per month may be made by check, draft, debit card, if applicable, or similar order to a third party. Transfers or withdrawals in excess of these limitations may not be honored and my account may be subject to closure by you. 4. Your failure or delay in enforcing any of the terms and conditions of these Share Account Agreements and Disclosures shall not prohibit you from enforcing such terms and conditions at a later date. 5. You reserve the right upon thirty (30) days written notice to change any provision of an account agreement. You also reserve the right to establish from time to time rules and regulations concerning any account, which will be available for inspection upon request. 6. You may endorse and/or collect items deposited to my account without my endorsement, but may require my personal endorsement prior to accepting an item for deposit. If I deposit items which bear the endorsement of more than one person or persons that are not known to you or that require endorsement of more than one payee, you may refuse the item or require all endorsers to be present or to have their endorsements guaranteed before you accept the item. 7. I may make deposits to or withdraw from my accounts only in accordance with Credit Union policy. 8. The minimum amount that I may withdraw from any account is $20. This limitation does not apply to: a) Checks drawn on my checking or money market account; b) Withdrawals, preauthorized by me, such as distributions of paid dividends and transfers of funds pursuant to my overdraft agreement; and c) Withdrawals made in person, at a Point-of-Sale terminal, or through your Automated Voice Response system. 9. I understand and agree that you may use automated means to process checks and other items written on or deposited to my account. Although you may manually review checks or other items drawn on my account, I understand and agree that reasonable commercial standards do not require you to do so. 10. You will mail (U.S. Mail or electronically) statements and other notices only to the address (physical or electronic) of record of the person whose signature appears first on the Account Signature Card. I shall exercise reasonable care and promptness in examining all statements and must notify you

7 promptly in writing of any error or unauthorized payment including, but not limited to, an altered item or an unauthorized signature. If I fail to uphold these duties, I understand and agree that I am precluded from asserting the error or unauthorized payment against you if you: 1) suffer a loss on the item because of my failure; or 2) you pay on another item presented by the same wrongdoer if the payment was made before I properly notified you. Notification must be within thirty (30) days of the date of the statement. If I fail to uphold my duties but I can prove that you failed to exercise ordinary care in the payment of the relevant items, then the above preclusion will not apply, and the loss on the items will be allocated between you and me to the extent our respective actions contributed to the loss. If I have failed to examine my statement and report any unauthorized item one (1) year or more after my statement or the item has been made available to me, I cannot recover from you even if you failed to exercise ordinary care in paying the item. 11. You or I may terminate an account at any time. I understand, however, that your authority may not be changed or terminated except by written notice to you, which will not affect prior transactions. In addition, if you receive written notice from any owner that withdrawals, in accordance with the terms of the account, should not be permitted, you may refuse, without liability, to pay any sums on deposit pending determination of the rights of the owners. Further, if there is more than one owner and there is a conflict among us, you may require the signature of all owners. 12. You reserve the right to close any account based on suspected fraudulent transactions, losses sustained on my account(s), or transactions discovered to be deliberately manipulated to the detriment of the Credit Union and its membership. Manipulation includes, but is not limited to, kiting and repeated patterns of transactions that have no apparent business reason. 13. You may recognize the signature of anyone who has signed an Account Signature Card that I provided to you as authorized to transact business on that account. Any payment made from my account in good faith and reliance on the terms and conditions of these Agreements and Disclosures and the Account Signature Card shall be valid and discharge you from liability. Without limitation to the foregoing, you may honor checks drawn against my account by authorized signers, even if the checks are made payable to them, to cash, or for deposit to their personal accounts. You have no duty to investigate or question withdrawals or the application of funds. 14. Your bylaws authorize the Board of Directors to require me to give up to sixty (60) days written notice of my intention to withdraw savings from any account except a checking account. However, you do reserve the right to at any time require not less than seven (7) days notice in writing before each withdrawal from an interest-bearing account other than a time deposit, or from any other savings account defined by Regulation D. 15. I understand that individual, joint, trust (Totten or passbook), and Pay-on- Death accounts may be subject to the Multiple Party Accounts Law, Division 5, Part 2, of the California Probate Code, as now in effect or hereafter amended. 16. The word owner(s) on an Account Signature Card means the owner in the case of an individual account, and it means the owners (both as an individual and as a group) in the case of an account with more than one owner. Owner(s) agree that any and all sums heretofore or hereafter paid in on savings shall be subject to withdrawal or receipt of any owner, and any such payment shall be valid and discharge you from any liability. 3

8 4 17. If I am the primary owner on more than one account number, I may not have loans on the second or subsequent account numbers. 18. I agree to notify you promptly of any change of address. I may notify you in person at any of your offices or by sending a written and signed notice to KINECTA FEDERAL CREDIT UNION, 1440 Rosecrans Avenue, P.O. Box 10003, Manhattan Beach, California Special Notice Regarding Endorsement Standards: The federal law dealing with funds availability requires that financial institution endorsements on the back of a check be kept clear or unobstructed. This rule avoids unnecessary delays in processing my deposits as well as speedier returns of dishonored checks. Only the 1 1/2 inch space from the trailing edge (the left edge of the check when it is facing me) can be used by me for endorsements or any other markings. 20. I agree that you will not be responsible for any damages I incur in the event I deposit an item with you that is subsequently returned unpaid by the paying bank, and the return is late due to markings on the back of the check caused by me or a prior endorser. 21. Although you are not obligated to, you may pay or accept checks and other items bearing restrictions or notations (e.g., Void after 6 months, Void over $50, Payment in Full, and the like), whether on the front or back, in any form or format. If I cash or deposit an item or write a check with such notation, I agree that it applies only between me and the payee or maker. The notation will have no effect on you, and I agree to accept responsibility for payment of the item. I agree to indemnify and hold you harmless from any claim or alleged loss of any maker or payee involving such notations, whether I am the maker or payee or the funds are otherwise deposited into an account in which I have an interest. 22. All accounts are subject to your most current Schedule of Fees and Charges and Current Dividends sheet, which accompany this Agreement and Disclosure booklet and are incorporated herein by this reference. You shall debit charges against my account except where there are insufficient funds available. In such case, the charges are payable on demand, will be treated as an overdraft for checking accounts, and may be debited against funds in any other account I have with you. 23. California law states that inactive account balances must be turned over to the state after a period of three (3) years if I have not: a) Increased or decreased the amount of any of my accounts with you (if the account statements are sent to the same address) or presented an appropriate record for crediting of interest or dividends or cashed a dividend check from any of my accounts with you; or b) Corresponded in writing or electronically with you concerning the account; or c) Otherwise indicated an interest in any of my accounts with you as evidenced by a memorandum on file with you. You may charge a fee for mailing an escheat notice for account balances of $50 or greater. To recover funds turned over to the state, I must file a claim with the state. 24. I understand that I may be required to request changes to my accounts in writing, that you are not required to act upon instructions received by facsimile, and that you have the right to require additional information from me before you act on any request. You shall have no liability or responsibility to me or to my heirs, executors, assignees, or representatives when acting upon the reasonable interpretation of my requests.

9 25. I understand that you may terminate account products at your option without written notice to me. You may also suspend offering account products from time to time at your discretion without notice to me. 26. Credit Union membership affords me many privileges, including the ability to purchase cashier s checks. I understand that these items are guaranteed funds. 27. This Agreement as well as all of my deposit accounts will be interpreted and subject to applicable federal law and the laws of the State of California, without resort to California s conflicts of law rules. 28. I understand and agree that if it is necessary for you to take legal action in order to enforce the terms of this Agreement or to recover monies due you from me; I will be responsible for payment of your collection costs and expenses of litigation (including attorneys fees and court costs). 29. I understand and agree that it is your policy not to accept for deposit checks payable to anyone other than an owner on the account (third party checks). 30. You are not responsible for items lost while not in your possession. 31. I authorize you to obtain my credit report for legitimate business purposes. 32. I understand and agree that you may monitor and record telephone conversations regarding my accounts at any time without further notice to me. 33. I understand that by using a facsimile signature I am agreeing that you are not responsible for any misuse of the facsimile signature, and I also agree to indemnify and hold you harmless for all losses, claims, damages, or expenses (including attorney s fees) that are incurred as a result of your payment of a withdrawal bearing a facsimile of my signature or a facsimile that you believe I authorized. 34. I understand that you may delay enforcing your rights under this agreement without losing them. Any waiver by you shall not be deemed a waiver of other rights or of the same rights at another time. I waive diligence, demand, presentment, protest, and notice of every kind, except as set forth in this agreement. If any of the provisions of this agreement are determined to be void or invalid, the remainder of the agreement shall remain in full force and effect. 35. I agree that if I manipulate my account in such way that constitutes a loss to you, you may close my accounts, except my primary Regular Share Account, and terminate member services. 36. I understand that you may comply with any writ of attachment, execution, garnishment, tax levy, restraining order, subpoena, warrant, or other legal process which you believe (correctly or otherwise) to be valid. If you are not fully reimbursed for your record research, photocopying, and handling costs by the party that served the process, you may charge such costs to my account. Funds you hold or set aside in response to a legal process will not earn dividends. I agree to indemnify, defend, and hold you harmless from all actions, claims, liabilities, losses, costs, and damages associated with your compliance with any process that you believe to be valid. 37. I understand that if a disaster occurs, there may be an unforeseen delay in your ability to make funds available and to process deposits. In addition to natural disasters, the failure of communication or computer systems can also cause unforeseen delays. 5

10 38. I agree to notify you immediately of the death or court-declared incompetence of any account holder on my account. You may freeze my account and refuse to accept deposits when an account holder dies or is declared incompetent. 39. I understand that if a depositor (e.g., a government agency) demands you to return any sums directly deposited to my account during the month of or after the death of any account holder on my account, you must honor such a demand and may debit my account for all amounts returned to the depositor. If the transaction creates an overdraft, I will be required to repay you, and notwithstanding any binding arbitration provision under this agreement, you may take any necessary legal action in order to seek reimbursement for these amounts. 40. I understand that you reserve the right, in your sole discretion and without liability, to accept or refuse to accept a power of attorney or any other document authorizing a third party to act on my behalf. 41. I understand that anyone can make a deposit to my account and that you may question the authority of a person making a deposit to my account. 42. I understand that all deposits are subject to verification and agree that if your count differs from mine; your figure will be considered the correct one. 43. In the event that a cashier s, teller s, or certified check is lost or stolen, I must execute and deliver to you a written Order to Resist Payment and Indemnity Agreement and/or affidavit in a form acceptable to you and in time for you to have a reasonable time to act thereon. I further understand and agree that the Declaration of Loss and Claim For Reimbursement is not enforceable until the later of (i) the time the Declaration of Loss and Claim For Reimbursement is properly delivered to you, or (ii) the 90th day following the date of the cashier s or teller s check, or the 90th day following the date of the acceptance of a certified check. I agree to indemnify you for any loss or claim occasioned by you attempting to, or stopping payment on such check. 44. If I live in California, I authorize you to obtain information on my residence address from the Department of Motor Vehicles and waive my rights under California Vehicle Code, Section You may use a third party service to verify and obtain information regarding my previous banking relationships. You may also report the status and/or closure of my account to such third party services. 46. I understand and agree that if am I not a member in good standing, you may limit my access to member services and products. 47. I agree to be responsible to you for the actions of authorized signers on my account. This means that I am responsible for familiarizing authorized signers with all of the terms of this Agreement. 48. You are not responsible for any loss or damage that result from my negligence, including without limitation my failure to adequately safeguard my blank checks or other personal information or means of access to my account. I will notify you immediately if my checks are lost or stolen. 49. I understand that by signing up for Kinecta Direct, including Bill Payment, I agree to the terms and conditions that are provided to me electronically. 6

11 50. I understand that you require the minimum of two (2) weeks to process my request to transfer funds from another financial institution to you. 51. I understand that you have the right to restrict the amount of cash each member may transfer or withdraw in a 24-hour period. 52. Except as prohibited by applicable law, I understand and agree that you may impress and enforce (offset) a statutory lien upon my shares and dividends in any and all of my accounts with you (except IRA accounts), to the extent of any loan made to me or charges payable by me pursuant to Section 1757(11) of the Federal Credit Union Act. In the event that a negative balance is created in my deposit account (whether due to ATM activity, returned deposit activity, Credit Union-imposed fees and charges, or otherwise), you may transfer funds to such account from any other deposit account (excluding IRA accounts), including accounts upon which I am a joint owner, in an amount equal to the negative account balance. 53. I understand and agree that title, ownership, and beneficiary designation on my account will be determined by the paperwork I have completed and filed with you. If I want to change my account in any way, I must properly complete additional forms provided by you, which shall not be effective until delivered to and accepted by you. You are authorized to rely solely on the documentation you have in your possession. On behalf of myself, my beneficiaries, and my heirs, I hereby indemnify you and agree to hold you harmless from any and all liability upon your reliance on such documentation. 54. I understand that any joint owner of any of the sub-accounts open under the same primary member s account number may have access to information on all of the sub-accounts under that same primary member s account number. 55. I understand and agree that in cases where there may be conflicting claims against my account you are authorized to restrict account transactions until the conflicting claims are resolved to your satisfaction. If you deem necessary, in your sole discretion and judgment, you may submit the conflict to a court of competent jurisdiction to obtain resolution of the conflict. This is commonly referred to as an interpleader, and I agree to be responsible for costs and attorneys fees you incur in resolving the conflict. 56. Member accounts in this Credit Union are federally insured by the National Credit Union Share Insurance Fund. 57. I understand that you, as required by law, must verify the identity of each person seeking to open an account (including joint owners) and must maintain records of the information used to verify each person s identity. 58. My personal property (funds on deposit and safe deposit box contents) may be transferred to the appropriate state if no activity occurs in the account within the time periods specified by state law. 7

12 8 Terms and Conditions Applicable to Individual and Joint Accounts: 1. If there is more than one owner, all agree with each other and with you that all sums now paid in or hereafter paid in by any one or all account owner(s), including all dividends thereon, if any, are and shall be owned by all account owners jointly and equally regardless of their net contributions with a right of survivorship and shall be subject to withdrawal or receipt by any of the account owner(s) or the survivor(s) of any of the account owner(s). Any such payment shall be valid and shall discharge you from any liability. 2. You are not obligated to inquire as to the source of funds received for deposit to a joint account or to inquire as to the proposed use of any sums withdrawn from the account for the purpose of establishing net contributions. 3. A transfer of ownership of savings in my account does not transfer voting rights or other privileges of membership. 4. If this is a joint account, and your account agreement so permits, any one of us may pledge any or all of the funds on deposit in the account as collateral security to any loan(s) subject to then current loan policies. Further, a pledge of funds by any one of us shall be binding on all of us. 5. A right of survivorship arising from the express terms of a joint account cannot be changed by my Last Will and Testament. 6. As a primary owner I understand that if I want to delete joint owners from my account, I must withdraw the funds and open a new account unless I present to you written authorization signed by all joint owners, including myself, directing you to delete them from any existing account. 7. A joint owner may not terminate the membership of the primary owner of the account. 8. Each account owner expressly agrees that each account holder is jointly and severally liable for any and all overdrafts, losses, or charges to any account created by any account holder(s). Terms and Conditions Applicable to Pay-on-Death (P.O.D.) Designations: 1. If I have made a P.O.D. Designation, all sums are payable on request to me during my lifetime and upon my death to my surviving designated P.O.D. payee(s) in equal and individual shares, or if the account is jointly owned, to one or more account owner(s) during their lives and on the death of all of them to one or more payees then surviving in equal and individual shares. If a P.O.D. payee dies before all of the account owner(s), all sums are equally divided among the surviving P.O.D. payees upon the death of all of the account owner(s). 2. A Pay-on-Death Designation cannot be changed by my Last Will and Testament. Terms and Conditions Applicable to Trust Accounts (Totten or Passbook Trust): 1. The trustee(s) declare(s) that the account is, and any and all sums credited to such savings account are and shall be, held by me (as joint tenants and equally regardless of our net contributions with right of survivorship if there is more than one trustee), in trust for the beneficiary(ies) named on the Account Signature Card, reserving to me the right, (a) to have dividends declared on said savings account paid to me; and (b) to revoke such trust in whole or in part, at any time or times by executing and delivering to you

13 a request for withdrawal or pledge of funds of the whole or part of such savings account, and such trust shall be revoked as to the whole or part to which such request relates. 2. In the event of my death, or if the account is held by more than one person, the death of my survivors(s), then and only then you shall pay such savings account amount to the beneficiary if then living (if more than one beneficiary is designated then equally to those beneficiaries living) at the date of my death or the death of my survivor(s), but if no beneficiary is living at my death or the death of my survivor(s), you shall pay such share account amount to my estate or the estate(s) of my survivor(s). There is no right of survivorship between beneficiaries. 3. I may pledge any or all of the funds on deposit in the account as collateral security to any loan(s) subject to then current loan policies. Further, a pledge of funds by any one of us shall be binding on all of us. 4. A right of survivorship or a beneficiary designation in a Trust Account cannot be changed by my Last Will and Testament. Trust Account Terms and Conditions The following terms and conditions apply to the account(s) opened under a Trust at the Credit Union. 1. THE CREDIT UNION HAS NOT RECEIVED A COPY OF THE TRUST INSTRU- MENT AND SHALL IN NO EVENT BE LIABLE FOR ITS CONTENTS. Trustee(s) and not the Credit Union assume full responsibility for enforcing the provisions of the Trust Instrument. 2. If this is a revocable trust, one or more trustor(s) is/are member(s) of the Credit Union. If this is an irrevocable trust, either the trustor or beneficiary must be members, or in the case of multiple trustors or beneficiaries, all the trustors or beneficiaries must be members of the Credit Union. All accounts opened in the name of the Trust belong solely to the Trust. No transfer of voting rights or other membership privilege is permitted by virtue of a transfer of shares. Accounts are not transferable, as defined in 12 CFR Part 204. It is understood that the Trust under the Application and Agreement has no voting rights at any membership meeting, although the individual member/ trustor(s) retain their personal voting rights if they retain individual membership in the Credit Union. 3. Trustee(s) affirm that the successor trustee(s) are bound under the Trust Instrument to serve, and are authorized and fully qualified to act as trustee(s) in the event that all of the trustee(s) named in the Application and Agreement resign, die, become incapacitated, or otherwise become unable to act as trustee(s) of the Trust. The Application and Agreement will not be approved unless successor trustee(s) are designated. 4. In the event that all named trustee(s) and successor trustee(s) die, resign, become incapacitated, refuse to act, or the Credit Union receives conflicting instructions, the Credit Union reserves the right to interplead any and all funds held in accounts opened under the Application and Agreement and to deduct its attorneys fees for the interpleader action from the Trust account funds. 5. If there is a change in the parties or terms of the Trust, including but not limited to, a change in trustor(s) or trustee(s), all trustor(s) and trustee(s) agree to execute a new Application and Agreement. Such change shall not be effective until the Credit Union has received a properly completed and 9

14 10 executed Application and Agreement and has had a reasonable opportunity to act on it. In the event of a change of address of trustor(s)/trustee(s), the trustee(s) agree to notify the Credit Union promptly of such change(s). 6. Trustee(s) certify that they are duly appointed under the Trust Instrument and that by the authority vested in them under the Trust Instrument any trustee, acting alone or jointly, is authorized and empowered to transact business of any kind in connection with the Trust s accounts at the Credit Union. It is agreed that any transaction by the trustee(s) set forth in the Application and Agreement acting alone or jointly, shall be valid and discharge the Credit Union from any liability. 7. Trustee(s) may authorize the transaction of any business on accounts held at the Credit Union in the name of the Trust by their oral or written instruction to the Credit Union. Trustee(s) may obtain funds from the Trust s accounts in their names or the names of third parties upon any trustee s written, oral, or electronic instruction. 8. The Credit Union will not keep any Trust Instrument in its files or be liable for the contents of a Trust Instrument. The trustee(s) shall sign a Certification of Trust indicating the trust type, trustor, trustee, and beneficiaries. 9. Trustee(s) agree that if they borrow from the Credit Union and use Trust assets as collateral, then the trustor(s) or the trustee(s), as members of the Credit Union will, by signing all documents relating to the loan, obligate themselves as individuals in addition to the signatures of the trustee(s) on behalf of the Trust. 10. Trustee(s) agree to promptly notify the Credit Union if any of the trustor(s) or trustee(s) die or become incapacitated. Prior to any successor trustee(s) transacting business on accounts held at the Credit Union in the name of the Trust (including any withdrawal pursuant to Section 11 below), the successor trustee(s) must provide the Credit Union with either a letter of resignation signed by the existing trustee(s) or a certified copy of the death certificate for the trustee(s). The successor trustee(s) must complete a new Application and Agreement as well as a Certification of Trust. Death, resignation, or incapacity of any trustee or trustor shall not revoke the authority of the Credit Union to act under the Application and Agreement until written notice of the death, resignation, or incapacity has been presented to the Credit Union and the Credit Union has reasonable opportunity to act on it. However, upon presentation of a certified copy of trustee s(s ) death certificate(s), resignation(s), or judicial declaration(s) of incapacity, the Credit Union is authorized to act upon designated successor trustee(s) instructions in accordance with the terms of the Application and Agreement. 11. Successor trustee(s) shall close all accounts opened under the Application and Agreement within 90 days after receiving notification of death, resignation, or incapacity of the trustee(s). Credit Union is authorized, but not required, to close any accounts opened under the Application and Agreement upon the 91st day after receiving notice of the trustee s(s ) death(s) and mail a check to the designated successor trustee(s) for the balance of the account and made payable to the designated successor trustee(s) as trustee(s) for the above-named Trust. The parties may be able to maintain the Trust accounts at the Credit Union under a new Application and Agreement. See a Credit Union account representative for eligibility. 12. Trustor(s) and trustee(s) acknowledge and agree that the Credit Union s sole obligation to the trustor(s)/trustee(s) is as a depository institution and is a debtor/creditor relationship, and nothing in the Application and Agreement or in the Trust Instrument shall be construed to impose any duties

15 or obligations whatsoever upon the Credit Union as a trustee or other fiduciary under the Trust Instrument or otherwise. Trustor(s) and trustee(s) hereby agree for the Trust, themselves, and all Trust beneficiaries for the life of the Trust and the statutory life of any cause of action involving any account of the Trust to indemnify and hold harmless the Credit Union from any and all claims, suits, actions, damages, judgments, costs, charges, and expenses, including but not limited to court costs and attorney s fees resulting from any and all liability, loss, and damage of any nature whatsoever that the Credit Union shall or may sustain resulting from the establishment, maintenance, and transaction of any business on any Trust account at the Credit Union. The trustor(s) and trustee(s) on behalf of the Trust agree to pay any necessary expenses, attorney s fees, or costs incurred in the enforcement of the Application and Agreement. 13. Trustor(s) and trustee(s) acknowledge and agree that the Credit Union is relying upon the statements, representations, and warranties made by the trustor(s) and trustee(s) contained in the Application and Agreement, and that the Credit Union shall not be responsible in any way for verifying either the existence, validity, or legality of the Trust itself or the authority or powers of the trustee(s) under the governing Trust Instrument to establish, maintain, or transact any business on the Trust accounts. The Credit Union reserves the right at any time to require the trustee(s) to execute and provide a Certification of Trust pursuant to California Probate Code Section , in form and substance acceptable to the Credit Union, affirming the existence of the Trust and the authority and powers of the trustee(s) thereunder. 14. The Application and Agreement incorporates the full and complete understanding concerning accounts and transaction of business thereon at the Credit Union for the Trust. Terms and Conditions Applicable to All Custodial Accounts: 1. When the transferor/custodian is opening an account under the Uniform Transfers to Minors Act, the transfer of money, including all dividends and future additions, to the minor named on the Signature Card is irrevocable and made according to and including all provisions of the said statute of the State of California now in effect or hereinafter amended. 2. I acknowledge that by signing the Signature Card, I have received the funds deposited to the account as custodian for the minor named herein under the Uniform Transfers to Minors Act. 3. None of the funds on deposit in this account may be pledged. 4. The successor custodian named in the Signature Card shall serve if I should be unable to act as custodian because I resign, die, or become legally incapacitated. 5. Custodial Accounts are not subject to the Multiple Party Accounts Law. 11

16 12 Terms and Conditions Applicable to All Fiduciary Accounts: 1. I am duly appointed and acting in the capacity of Trustee, Executor, Administrator, Guardian, or Conservator. By the authority vested in me I am, acting individually or jointly, authorized and empowered to transact business of any character in connection with this account. My authority shall continue in force until written notice to the contrary is received by you. 2. I may pledge any or all funds on deposit in the account as collateral security to any loan(s) subject to then current loan policies. Further, a pledge of funds by any one of us shall be binding on all of us. 3. If a checking account is opened with you (not applicable to a blocked account), I agree that the account shall also be governed by the terms applicable to checking accounts set forth below. 4. If the account is blocked, I agree that I shall file with the court a written receipt including an agreement with you that the money in the account, including any earnings thereon, shall not be withdrawn except upon court order. 5. Fiduciary Accounts are not subject to the Multiple Party Accounts Law. Terms and Conditions Applicable to All Sole Proprietorship Accounts: 1. I affirm that I am the sole proprietor of the sole proprietorship named on the Account Signature Card. You may pay out funds with my signature. You may accept and/or endorse checks made payable to me or to the sole proprietorship named on the Signature Card that you receive for deposit. 2. I may pledge any or all of the funds on deposit in the account as collateral security to any loan(s) subject to then current loan policies. 3. If a checking account is opened with you, I agree that the account shall be governed by the terms of this Savings Account Agreement as well as the terms of the applicable Checking Account Agreement. 4. Sole proprietorship accounts are not subject to the Multiple Party Accounts Law. Terms and Conditions Applicable to All Corporate, Partnership, and Unincorporated Association (Club) Accounts: 1. The persons named on the Account Signature Card duly authorized to make the Certification, certify that at a regularly held meeting the person(s) named were elected or appointed officers of said corporation or organization or are duly acting partners of said partnership, and that by virtue of the authority vested in me by the constitution, bylaws, or otherwise, any one (1) of the signatories, as named on the Signature Card, is authorized and empowered to transact business of any character whatsoever in connection with the account. I certify that the signature(s) appearing on the Signature Card are the genuine signature(s) of said authorized person(s), and that my authority shall continue in force until written notice to the contrary is received by you. 2. Any two of us may pledge any or all of the funds on deposit in the account as collateral security to any loan(s) subject to then current loan policies. Further, a pledge of savings by any one of us shall be binding on all of us. 3. If a checking account is opened with you, I agree that the account shall be governed by the terms of this Account Agreement as well as the terms applicable to checking accounts.

17 4. Corporate, Partnership, and Unincorporated Association (Club) Accounts are not subject to the Multiple Party Accounts Law. DIVIDENDS Dividend Rates. The frequency and conditions upon which dividends are paid on all accounts are in accordance with the Bylaws of this Credit Union, the Federal Credit Union Act, and the Truth in Savings Act and Regulations. Dividends are paid from current income and available earnings, after required transfers to reserves at the end of a dividend period. For all dividend-earning accounts except for Term Share Certificate Accounts, the dividend rate and annual percentage yield may change daily. You may change the dividend rate for my account as determined by the Credit Union Board of Directors. For specific dividend rates for each type of dividend-bearing account, I will refer to the Current Dividends sheet, which is incorporated herein by reference. Compounding and Crediting: For Regular Share, Holiday Share, and Contributory IRA Share Accounts, dividends will accrue daily and will be credited and compounded quarterly. For Pledged Share Accounts, dividends will accrue daily and will be credited and transferred to my Regular Share Account quarterly. For all these account types, the dividend period is quarterly, for example, the beginning date of the first dividend period of the calendar year is January 1 and the ending date of such dividend period is March 31. All other dividend periods follow this same pattern of dates, with the exception of Holiday Share Accounts, for which the final dividend period is from October 1 to October 31. The final dividend declaration date follows the ending date of a dividend period, but dividends will be posted on the last day of the quarter, based on intended dividend rate declared by the Board of Directors. For Checking Plus and Money Market share accounts, dividends will accrue daily and will be credited and compounded monthly. For these account types, the dividend period is monthly; for example, the beginning date of the first dividend period of the calendar year is January 1 and the ending date of such dividend period is January 31. All other dividend periods follow this same pattern. The final dividend declaration date follows the ending date of a dividend period, but dividends will be posted on the last day of the month, based on the intended dividend rate declared by the Board of Directors. I understand that for any of my dividend-bearing accounts, the average monthly balance is determined prior to the posting of dividends. Balance Computation Method: Dividends are calculated by the daily balance method, which applies a daily periodic rate to the balance in the account each day. Dividends will begin to accrue on the business day I deposit cash or noncash items to my account. If I close my account before dividends are credited, I will receive accrued dividends to the date of closure. 13

18 TERMS AND CONDITIONS APPLICABLE TO SPECIFIC ACCOUNTS Regular Share Accounts 1. A minimum deposit equal to the par value of a share is required to open my Regular Share (Savings) Account(s) and become a member of the Credit Union. If the balance of my Regular Share Account(s) is subsequently reduced to less than the par value and remains so after six (6) months, you may close the account(s). 2. I must maintain a minimum daily balance equal to the par value of a share in my account each day in order to maintain my membership with the Credit Union. 3. The minimum balance required to obtain the disclosed annual percentage yield is equal to the par value of a share. 4. I understand and agree that if my Regular Share Account balance is reduced to less than the par value of a share, you may transfer enough funds from any other share account I may have with you in order to bring my account balance up to the par value of a share. 5. I understand that my Regular Share Account carries a monthly service fee, as disclosed in the Schedule of Fees and Charges, if the following applies: (1) I am a primary owner over age 18; (2) if it is the only account I have with you under the same member number and (3) I do not maintain an average monthly balance of at least $250. If my account is new, the monthly service fee is waived for the first three months of the account. Pledged Share Accounts 1. A minimum deposit in the amount of my Share Secured Visa Gold Credit Card Account credit limit is required to open my Share Secured Account. My balance must always be equal to my Share Secured Visa Gold Credit Card credit limit. 2. A minimum deposit in the amount of fifty (50) percent of my Share Secured Visa Classic Credit Card Account credit limit is required to open my Share Secured Account. My balance must always be equal to or greater than fifty (50) percent of my Share Secured Credit Card credit limit. 3. The minimum balance required to obtain the disclosed annual percentage yield is disclosed in the Current Dividends sheet. 4. Credited dividends are transferred to my Regular Share Account. 5. Pledged funds on deposit will be distributed only after meeting the following conditions: a) the outstanding balance on my Share Secured Credit Card Account is paid in full; b) all credit cards issued on my Share Secured Credit Card Account are returned to you; c) My Share Secured Credit Card Account is closed; d) a period of thirty (30) days has expired after the closure of such Account; and e) any charges and advances posted to the Share Secured Credit Card Account during those 30 days have been paid in full. 14

19 Impound/Escrow Accounts 1. There is no minimum deposit required to open an Impound/Escrow Account. 2. There is no minimum daily balance required to keep the account open or to obtain the disclosed annual percentage yield. The dividend rate for my account will be the same as the dividend rate paid on the dividend-bearing checking account. Contributory IRA Share Accounts 1. The minimum opening deposit requirement of my Contributory Share IRA Account is disclosed in the Current Dividends sheet, unless I authorize payroll deduction, in which case I may open an account with an initial deposit of $1.00.Additional qualifying deposits are permitted. 2. There is no minimum balance required to keep the account open or earn the disclosed annual percentage yield. 3. None of the funds on deposit in this account may be pledged. 4. IRS and State Law Penalties: Certain federal and state penalties may apply to early withdrawals from Contributory Share IRA Accounts. These are set forth in applicable federal and state law and regulations which are incorporated herein by reference. Money Market Checking, Money Market Savings, and IRA Money Market Share Accounts 1. The minimum opening deposit requirement may change from time to time and is disclosed in the Current Dividends sheet. 2. Once the account is open, there is no minimum balance requirement to maintain the account. Federal and state penalties may apply to IRA withdrawals. 3. This is a tiered-rate account with multiple tiers, as disclosed in the Current Dividends sheet. I understand that the number of tiers available to me are at the discretion of the Credit Union. 4. The minimum balances applicable to each tier, and the associated dividend rates and minimums to earn the disclosed annual percentage yields appear on the Current Dividends sheet. Holiday Share Accounts 1. The minimum deposit required to open this Account is disclosed in the Current Dividends sheet. 2. There is no minimum daily balance required to keep the Account open or to obtain the disclosed annual percentage yield. 3. Funds on deposit in the account will be distributed November 1 as I have previously directed you by check or by transfer to my checking, savings, or money market account(s). 4. None of the funds in this account may be pledged. 15

20 16 Share Draft/Checking Accounts: 1. No minimum deposit is required to open a new Free Checking or Checking Plus account. No minimum balance is required to maintain my checking account in an open status. 2. I understand that you offer two (2) types of checking accounts: Free Checking and Checking Plus (replaces Interest Checking). The Free Checking account does not earn dividends. I can select the type of checking account that I desire, but if I do not select a plan, you will make the selection on my behalf. New Premier Checking accounts are no longer offered. 3. I understand that Checking Plus accounts carry a monthly service charge if I do not maintain the applicable checking account average monthly balance, or Direct Deposit as disclosed in the Schedule of Fees and Charges. I understand that Premier Checking accounts carry a monthly service charge if I do not maintain the applicable checking account average monthly balance or cumulative savings balance, as disclosed in the Schedule of Fees and Charges. 4. There is no minimum balance required to earn the disclosed annual percentage yield for Checking Plus and Premier Checking accounts. 5. In the following paragraphs as well as in other sections of these Agreements and Disclosures (other than the Delayed Funds Availability Policy Disclosures), the words checking account refer to my applicable checking account as well as to my money market account that has a checking feature. 6. You may, at your discretion, pay funds from this account, without obligation or liability for refusal to pay: a. When such payment would draw the account below the minimum balance for the account as established from time to time by you ( overdrafts ). b. If drawn by means not authorized in advance by you. c. Against checks or electronic debits presented over six (6) months past their dates. 7. You may pay and charge to my applicable checking account check(s) drawn by and payable to any person, organization, association, or corporation whom I have authorized by providing sample MICR-encoded information identifying my account, provided there are sufficient funds in my account to pay such check(s). I agree that your rights in respect to such check(s) shall be the same as if it were a check(s) drawn and signed by me personally. This authority shall remain in effect until I have provided written notice revoking this authorization to the agency to which the sample MICR information was provided, and until you have a reasonable opportunity to act upon it. I agree that you shall be fully protected in honoring such check(s). I further agree that if any such check(s) are dishonored, whether with or without cause and whether intentionally or inadvertently, you shall be under no liability whatsoever, even though such dishonor results in the forfeiture of insurance, loss, or damage to me of any kind. 8. If you have made good faith payment to a holder, you may charge my account according to: a. The original tenor of my check; or b. The tenor of my completed check unless you have notice that any such completion is improper. 9. Provided such request is timely, so that you shall have reasonable opportunity to act upon it under your rules, I may order stop payment of any

21 check payable against my account. All the information given by me to you regarding such check must be accurate. You may, but shall not be obligated to, receive such order orally or electronically. If you do act upon my oral or electronic request to stop payment on a check, I agree to indemnify, defend, and hold you harmless from any and all liability, cost (including attorney s fees), judgments, and damages of every kind, regardless of the source. In such event, my oral order shall be valid for only fourteen (14) days thereafter unless confirmed in writing. Written or electronic orders shall be valid no longer than six (6) months. I have the burden of establishing the fact and amount of loss resulting from payment contrary to a binding stop payment. 10. I may not stop payment on completed electronic Point-of-Sale transactions debiting my checking account. 11. My death or incompetence, or that of any of us, or dissolution of our organization, shall not revoke your authority to accept, pay, or collect a check(s) or to account for proceeds of its collection until you know of the fact of death or adjudication of incompetence and have a reasonable opportunity to act on it. Even with knowledge, you may for ten (10) days after the date of death, dissolution, or incapacity, pay or guarantee a check(s) drawn on or prior to that date, unless ordered in writing to stop payment by a person claiming an interest in the account under rules established by you. One of us shall notify you if any of us dies, becomes incapacitated, or our organization is dissolved. 12. If you have paid a check under circumstances giving a basis for objection by me, you shall be subrogated to the rights of: a. Any holder in due course on the check against the drawer or maker; and b. The payee or any other holder of the check against the drawer or maker, either on the item or under the transaction out of which the item arose; and c. The drawer or maker against the payee or any other holder of the check with respect to the transaction out of which the check arose. 13. You may without liability accept, pay, guarantee, or charge checks to the account in any order convenient to you. 14. In the event of wrongful dishonor that occurs by mistake, liability shall be limited to actual damages. The measure of damages for failure to exercise ordinary care in handling a check is the amount of the item reduced by an amount that could not have been realized by the use of ordinary care. 15. You are neither given notice nor otherwise affected by a restrictive endorsement of any person or entity except your immediate transferor. 16. By executing the appropriate written form, I may authorize you to clear all checks validly drawn on my checking account(s) pursuant to the applicable automatic overdraft protection terms. I agree that overdrafts, if paid in excess of funds in any loan or savings account, are payable on demand. If overdrafts are to be covered by a transfer of funds from my savings or money market account(s) to my checking account(s), such transfer will generally be made only if there are sufficient funds on deposit at the time of transfer. I understand that there might be times when some of the features of overdraft protection may not be available. Examples would include general system maintenance, system overload, or a natural disaster. 17

22 17. All non-cash payments shall be credited subject to final payment. My right to withdraw the funds represented by certain checks or other items I deposit may be delayed for several days, pursuant to your Disclosure of Funds Availability Policy. I will be notified if my right to withdraw will be delayed. 18. You may recognize the signature of anyone who signed the Account Signature Card that I provided to you as authorized to transact any business on this account, whether by check or other means, including but not limited to, the causing or making of overdrafts (for which all of us shall be liable) and endorsement of checks payable to any signer of this account. 19. I understand that if I am between the ages of 16 and 18 years old and you allow me to open a checking account, my parent or legal guardian will have to be a joint owner of my account. 20. If the Account Signature Card is signed by more than one person, all of us further agree as between ourselves and you: a. All amounts now and hereafter in this account, regardless of the source, are owned by us jointly and equally regardless of our net contributions, with right of survivorship, and are subject to withdrawal(s) and/or receipt by any of us, and payment to any of us or any of the survivors of us shall be valid and discharge you from any liability for such payment; b. We hereby appoint each other as agents and attorneys in fact to overdraft any of our savings or loan accounts. 21. If this is a Corporate, Partnership, or Unincorporated Association (Club) Account the persons authorized to sign on this account certify that they are duly appointed officers of said corporation, partnership, organization, or club and have the authority to transact business of any character whatsoever in connection with this account. 22. I agree that in the event I draw a check on my checking account with you, I will hold you harmless and indemnify you from any liability I incur due to a delay or misrouting of the check if the delay or misrouting is caused by markings placed on the check by me or a prior endorser that obscure any depository endorsement placed by you or your agent. 23. None of the funds on deposit in this account may be pledged. 24. I understand that you are not selling checks. As a convenience to me, you will submit my initial order and reorders for personalized checking account checks to the printer named on the face of the order. If the printer accepts the initial order and reorders, the printer will mail the checks to me and is authorized to charge my checking account for the cost of delivered checks ordered, plus applicable sales tax and delivery costs. 25. This is a truncated checking account. Check copies are not returned with statements. Checks are microfilmed on both sides and stored for seven years from date of posting. Upon my request you will provide me with a photocopy of a requested item within a reasonable time. You will not charge me for copies of the first two items I request appearing on any one statement. Additional copies will be subject to a fee assessment. If I have not ordered my Credit Union checks through your approved check vendors, I understand and agree that you are not responsible for the quality of any check copy that I request from you. In addition, you are not responsible for any checks not paid as a result of quality or printing errors. 18

23 26. You may charge against my account a postdated check even though payment is made before the date of the check. However, if I notify you within a reasonable time to permit you to act and identify the check with reasonable certainty, you cannot pay the check until the due date. Notice may be written or oral, and it must include the exact amount, account number, check number, date of check, and name of payee. If oral, the notice shall be valid for fourteen (14) days. If written, the notice shall be valid for up to six (6) months and can be renewed within six (6) months for another successive six (6) month period. A fee may be assessed for this service. 27. All checks written on my account must be written in English and drawn in U.S. dollars. Share Certificate Accounts 1. To open a Certificate Account, I must complete the applicable document and acknowledge receipt of a copy of the Share Certificate on which the terms of my selection are indicated. 2. The minimum deposit required to open a Certificate Account is disclosed in the Current Dividends sheet. From time to time the Credit Union may offer certain promotional Certificate Accounts that have higher minimum balance requirements. 3. The dividend rate and annual percentage yield are fixed for the term indicated on my Share Certificate except for College Saver Share Certificate Accounts. 4. Except for College Saver Certificate Accounts, after the account is opened I may not make deposits into the account until the maturity date stated on my Share Certificate Account, unless authorized by the Board of Directors. 5. My account will mature on the date set forth on my Share Certificate. 6. Dividends will accrue daily and will be credited and compounded monthly and at maturity. For this account type, the dividend period is monthly, for example, the beginning date of the first dividend period of the calendar year is January 1 and the ending date of such dividend period is January 31. All other dividend periods follow this same pattern of dates. The final dividend declaration date may follow the ending date of a dividend period, but dividends will be posted on the last day of the certificate term, at the rate set forth on my Share Certificate. If I close my Account before the maturity date, I will receive accrued dividends, but I will incur an early withdrawal penalty. 7. Federal Reserve Board Regulations require an early withdrawal penalty of seven (7) days interest on amounts withdrawn within the first six (6) days after deposit or any partial withdrawal made prior to the date of maturity, except IRA Share Certificates. 8. You agree to disburse paid dividends from the account at the end of each dividend period in compliance with my directions on the applicable document and/or Share Certificate Renewal/Maturity Request Form. 9. Except as set forth herein, a substantial penalty is required for early withdrawal. Any withdrawal of the principal amount held in the account which does not reduce the balance of the account below the minimum qualifying amount will be subject to the following penalties: a. A forfeiture of all dividends earned (a) for 90 days or (b) from the date of issuance or renewal of the certificate (if less than 90 days) on the amount withdrawn if the minimum term of the certificates is less than or equal to one (1) year; or 19

24 b. A forfeiture of all dividends earned for 180 days or from the date of issuance or renewal (if less than 180 days) on the amount withdrawn if the minimum term of the certificate is more than one (1) year. 10. Any withdrawal of the principal amount held in the account which reduces the balance of the account below the minimum qualifying amount will result in the cancellation of the certificate and the penalties set forth above will be applied to the entire principal amount. The penalties will be applied to earned dividends only. However, if paid dividends have been withdrawn, the penalties may be applied to the principal held in the account up to the amount of the dividends that have been previously withdrawn. 11. Penalties do not apply to: a. Withdrawals of earned and paid dividends. b. Withdrawals of certificate funds during the seven (7) day grace period following the automatic renewal of the certificate. c. Withdrawals made subsequent to my death or disability or to the death or disability of any owner of the account made pursuant to Article III, Section 5(e) of your Bylaws. d. Withdrawal made to effect a required distribution of funds from accounts which are part of a pension plan that qualifies or qualified for specific tax treatment under Section 401 or from accounts qualifying under Section 408 of the Internal Revenue Service code. e. Withdrawals made as a result of your voluntary or involuntary liquidation. 12. IRS and State Law Penalties: In addition to the stated penalties, certain federal and state penalties may apply to early withdrawals from IRA Share Certificate Accounts. These are set forth in applicable federal and state law and regulations which are incorporated herein by reference. 13. As a courtesy you will, but you are not required to, send me a written maturity notice at least ten (10) days in advance of the maturity date of my Share Certificate if the certificate has a term of ninety (90) days or more. I may instruct you in person or in writing prior to the expiration of a seven (7) day grace period following maturity to renew or close the certificate on a date of my choosing within the grace period. Funds will continue to earn dividends but at the rate of a new certificate for the same term in effect on the maturity date until such date of closure or renewal. 14. Unless I instruct you otherwise in person or in writing before the end of the grace period, you will renew the certificate automatically for the same term as the maturing certificate, if certificates of that term are then available. If a certificate of the same term is not available, you will renew the certificate for a comparable term. The renewal will be effective on the maturity date, and the rate will be the same as your rate for opening a new certificate of like term on the renewal date. Bump up certificates may be renewed to a certificate of like terms, if these products are available. Unless you instruct 15. Bump The us otherwise, term up of certificates a Share bump Certificate up may share be certificates renewed is subject to to will acertificate a ninety renew (90) into of share like day terms, minimum certificate these and of products a five (5) year are available. maximum Unless unless you otherwise instruct stated us otherwise, below. bump up share certificates will renew into share certificate of like term without a bump up 16. feature. Any The term account of a holder Share Certificate with borrowing is subject privileges to a ninety may pledge (90) day any minimum or all of and the shares on deposit in any certificate (except IRA) account as collateral secu- 16. The rity to term any of loan a Share or loans Certificate in accordance is subject with to a current ninety loan (90) policies. day minimum and a Any five account (5) year holder maximum with unless borrowing otherwise privileges stated may below. pledge any or all of the 17. Terms shares and on deposit Conditions in any Applicable certificate to (except All Jumbo IRA) Certificates: account as collateral Jumbo Certifisecucates are subject to a ninety (90) day minimum term and a five (5) year maximum term. The minimum opening deposit requirements are disclosed in the Current Dividends sheet. 20

25 17. IRA Share Any account Certificates holder Accounts with borrowing privileges may pledge any or all of the shares on deposit in any certificate (except IRA) account as collateral security may to choose any loan the or term loans of in my accordance IRA Share with Certificate current subject loan policies. to a ninety (90) 1. I day minimum and a five (5) year maximum term. The minimum qualifying 18. deposit Terms for and such Conditions an account Applicable is disclosed to All in Jumbo the Current Certificates: Dividends Jumbo sheet. Certifi- cates are subject to a ninety (90) day minimum term and a five (5) year 2. None maximum of the term. funds The on deposit minimum opening this account deposit may requirements be pledged. are disclosed 1. I in may the choose Current the Dividends term of sheet. my IRA Share Certificate subject to a ninety (90) 3. day Upon minimum maturity, and if the a five IRA (5) Certificate year maximum for the same term. term The minimum is not available, qualifying you deposit will renew for the such IRA an certificate account is for disclosed a comparable in the term.. Current Dividends sheet College None I may Saver of choose the Share funds the Certificates term on deposit of my in Accounts IRA this Share account Certificate may be subject pledged. to a ninety (90) day minimum and a five (5) year maximum term. The minimum qualifying Upon deposit This account maturity, for such is only if an the account available IRA Certificate is to disclosed members for the in who the same are Current term under Dividends is the not age available, of sheet. eighteen you will (18). renew the IRA certificate for a comparable term.. 2. None of the funds on deposit in this account may be pledged. 2. The minimum qualifying deposit for the College Saver Share Certificate is 3. Upon disclosed maturity, in the if Current the IRA Dividends Certificate sheet. for the same term is not available, you 1. This will renew account the is IRA only certificate available for to members a comparable who term.. are under the age of eighteen 3. (18). Additional deposits are permitted at any time prior to maturity The minimum dividend rate qualifying and annual deposit percentage for the College yield may Saver change Share monthly. Certificate The is 1. disclosed This dividend account rate in the is for only Current my available account Dividends to will members sheet. the same who are as paid under on the your age two of eighteen (2) year (18). Share Certificate Accounts (rate in effect on the first of the month) if my 3. Additional account balance deposits is below are permitted $4,000 at or any the time account prior is to less maturity. than four (4) years 2. The old on minimum the date qualifying you change deposit rates. for If my the account College balance Saver Share is at Certificate least $4,000 is 4. The disclosed and my dividend account in the rate Current has and been annual Dividends opened percentage for sheet. at least yield four may (4) change years on monthly. the date The you dividend change rates, for my my rate account will be will the be two the (2) same year as Share paid on Certificate your two rate (2) year plus 3. Share Additional ten (10) Certificate basis deposits points Accounts are (0.10%) permitted (rate effective in at any effect the time on first prior the day first to of maturity. the of the following month) month. if my account balance is below $4,000 or the account is less than four (4) years old The My on College dividend the date Saver rate you and Share change annual Certificate rates. percentage If Account my account yield will may balance mature change is at at the monthly. least end $4,000 of The the and dividend month my in account rate which for has I my reach been account my opened eighteenth will be for the at least (18th) same four as birthday paid (4) years on and your on cannot the two date (2) be year you renewed. Certificate rates, my Accounts rate will be (rate the in two effect (2) on year the Share first of Certificate the month) rate if plus my change Share ten account (10) basis balance points is below (0.10%) $4,000 effective or the the account first day is of less the than following four (4) month. years Youth old Club on the Certificates date you Accounts change rates. If my account balance is at least $4, My and College my account Saver has Share been Certificate opened for Account at least four will mature (4) years at on the the end date of you the This month change account in rates, is which only my I available rate reach will my to be eighteenth members the two (2) who (18th) year are birthday Share under Certificate the and age cannot of rate eighteen be plus re (18). newed. ten I may (10) choose basis points the term (0.10%) of my effective Youth Club the first Certificate day of the Account following subject month. to a ninety (90) day minimum and a four-(4) year maximum term. The minimum qualifying My deposit College for Saver such an Share account Certificate is disclosed Account on the will Current mature Dividends at the end sheet. of the 5. month in which I reach my eighteenth (18th) birthday and cannot be re- This 1. I newed. account understand is only the available term is as to stated members on my who Share Certificate under the with age of a seven eighteen (7) (18). day I may grace choose period the following term of the my maturity Youth Club date. Certificate Account subject to a ninety (90) day minimum and a four-(4) year maximum term. The minimum qual ifying 2. I understand deposit for such the certificate an account will is automatically disclosed on renew the Current at maturity Dividends for the sheet. same This term account as the is only maturing available certificate to members if I do not who close are under the account the age and of the eighteen same 1. (18). I term I understand may is choose available. the the term If term a certificate is as of my stated Youth of on the my Club same Share Certificate term Certificate is not Account available,, with subject a seven you to will (7) a ninety day renew (90) grace the day period certificate minimum following for and a a like four-(4) the term. maturity year date. maximum term. The minimum qual- ifying deposit for such an account is disclosed on the Current Dividends sheet. 2. I understand the certificate will automatically renew at maturity for the same 1. term I understand as the maturing the term certificate is as stated if I on do my not Share close Certificate the account with and a seven the same (7) term day grace is available. period following If a certificate the maturity of the same date. term is not available,, you will renew the certificate for a like term. 2. I understand the certificate will automatically renew at maturity for the same term as the maturing certificate if I do not close the account and the same term is available. If a certificate of the same term is not available,, you will renew the certificate for a like term. 21

26 PART III DELAYED FUNDS AVAILABILITY POLICY In general, your policy is to make funds from my cash and check deposits available to me on the first business day after the day you receive my deposit. Electronic direct deposits will be available on the day you receive the deposit. Kinecta Automated Teller Machine (ATM) deposits will be held for two business days. Deposits at nonproprietary ATMs, such as CO-OP and Shared Branch network ATMs, will be held for five business days. Funds may be held for a longer period after review of deposited items. Once the funds are available, I can withdraw them in cash and you will use them to pay checks that I have written. For purposes of determining the availability of my deposits, every day is a business day, except Saturday, Sunday, and federal holidays. If I make a deposit on a business day that you are open during business hours or before the last pickup time posted on a QuickDrop/Night Depository box, you will consider that day to be the day of my deposit. However, if I make a deposit on a Saturday, Sunday, federal holiday, on a day you are not open, after business hours, or after the last pickup time posted on a QuickDrop/Night Depository box, you will consider that the deposit was made on the next business day you are open. Longer Delays May Apply In some cases, you will not make all the funds I deposit by check available to me on the first business day after the day of my deposit. Depending on the type of check I deposit, funds may not be available until the second business day following the day of deposit. If you delay the availability of my funds, you will tell me at the time I make my deposit and tell me when the funds will be available. If my deposit is not made directly to one of your employees, or if you decide to take this action after I have left the premises, you will mail me the notice of the delay the business day after you receive my deposit or balance your ATM. If I need the funds from deposit right away, I should ask you when the funds will be available. In addition, funds I deposit by check may be delayed for a longer period under the following circumstances: a) You believe a check I deposited will not be paid. b) I deposit checks totaling more than $5,000 on any one day. c) I redeposit a check that has been returned unpaid. d) I have overdrawn my account repeatedly in the last six months. e) There is an emergency, such as failure of computer or communications equipment. You will notify me if you delay my ability to withdraw funds for any of these reasons, and you will tell me when the funds will be available. They will generally be available no later than the seventh business day after the day of my deposit. Special Rules for New Accounts If I am a new member, the following special rules apply during the first thirty (30) days my account is opened. Funds from electronic direct deposits to my account will be available on the day you receive the deposit. Funds from deposits of cash, wire transfers, and the first $5,000 of a day s total deposits of cashier s, certified, teller s, and traveler s checks and federal, state, and local government checks will be available on the first business day after the day of my deposit if the deposit meets certain conditions. For example, the checks must be payable to me and the excess over $5,000 will be available on the eighth business day after the day of my deposit. If my deposit of these checks (other than a U.S. Treasury check) is not made in person to one of your employees, the first $5,000 will not be available until the second business day after the day of your deposit. 22

27 In no event does the above policy affect your right to accept or reject an item for deposit or to require written notice of an intended withdrawal. The above policy is subject to change upon fifteen (15) days written notice. PART IV ELECTRONIC SERVICES AGREEMENT AND DISCLOSURES I understand that by accepting, retaining, and/or using an ATM or Kinecta Check- Card or allowing others to use the electronic services offered by you, I am agreeing to be bound by the terms and conditions of this Electronic Services Agreement and Disclosure. This Agreement and Disclosure is given by you in compliance with the Electronic Funds Transfer Act (15 USC Section 1693 et seq.) and Regulation E (12 CFR 205 et seq.) to inform me of certain terms and conditions of the Electronic Funds transfer services I have requested. At the present time you participate in several types of services that may be accomplished by electronic transfer: preauthorized deposits of net paychecks; payroll deductions; pension checks and federal recurring payments (for example, Social Security payments); certain preauthorized payments from my account (for example, insurance premiums); certain preauthorized transfers; certain Pointof-Sale (POS) transactions; Electronic Funds transfer transactions conducted at Kinecta ATMs or Network Automated Teller Machines (ATMs) identified in the ATM Agreements and Disclosure section; and transfers through Electronic Access Systems. Disclosure information applicable to all electronic services offered by you is given, with certain specific disclosure information for each service, following in separate sections. I understand that the Agreements and Disclosures applicable to any of my accounts (including, for example, Holiday Share accounts, checking accounts, Money Market Share accounts, Personal Line of Credit accounts, and other applicable accounts) remain in full force and effect and continue to be applicable, except as specifically modified by this Agreement and Disclosure. GENERAL DISCLOSURES APPLICABLE TO ALL ELECTRONIC SERVICES Business Day Disclosure: With the exception of your established holiday schedule, your business days are Monday through Friday; and extended hours and weekends available through the CU Service Centers Shared Branch Network. Hours and branch locations are subject to change without prior notice. The Electronic Access System and ATM hours are normally 24 hours a day, 7 days a week. ATMs; POS terminals at some locations may not always be accessible or open only during specified hours. Disclosure of Account Information to Third Parties: You will disclose information to third parties about my account or the transactions I engage in: 1. When it is necessary to complete an electronic transaction; or 2. In order to verify the existence of my account for a third party, such as a credit bureau or merchant; or 3. In order to comply with a government agency or court order, or any legal process; or 4. If I give you my written permission. 23

28 24 In Case of Errors or Questions about My Electronic Services Transaction, or to Report a Stolen Card: I must telephone you at for errors or questions and at to report a stolen card, OR write you at: KINECTA FEDERAL CREDIT UNION, 1440 Rosecrans Avenue, P.O. Box 10003, Manhattan Beach, CA If I think my statement or receipt is wrong or if I need more information about a transaction listed on the statement or receipt, you must hear from me no later than sixty (60) days after you send me the FIRST statement on which the problem or error appeared. I will: 1. Tell you my name and account number. 2. Describe the error or the transaction I am unsure about and explain as clearly as I can why I believe it is an error or why I need more information. 3. Tell you the dollar amount of the suspected error. If I tell you orally, you require that I send you my complaint or question in writing within ten (10) business days. You will determine whether an error occurred within ten (10) business days after you hear from me and will correct any error promptly. If you need more time, however, you may take up to forty-five (45) calendar days to investigate my complaint or question. If you decide to do this, you may credit my account within ten (10) business days for the amount I think is in error, so that I will have the use of the money during the time it takes you to complete your investigation. However, if the notice of error involves a transfer to or from an account within thirty (30) days after the first deposit to the new account was made, you may have up to twenty (20) days to resolve the claim or to provisionally credit my account if additional time is needed to investigate, and up to ninety (90) calendar days to complete your investigation. You may not credit my account if I do not put my complaint or question in writing and you do not receive it within ten (10) business days after you hear from me. For an electronic funds transfer resulting from a Point-of-Sale debit card transaction, those initiated outside of the United States, or occurring within thirty (30) days after the first deposit was made to the account, you may take up to ninety (90) rather than forty-five (45) calendar days to complete your investigation. You will tell me the results of your investigation within three (3) business days after completing your investigation. If you decided that there was no error, you will send me a written explanation. I may ask for copies of the documents that you used in your investigation. Your Liability for Failure to Make or Complete Electronic Funds Transactions: If you do not properly complete an electronic funds transaction to or from my account on time or in the correct amount according to your agreement with me, you may be liable for my losses and damages. However, there are some exceptions. You will not be liable, for instance, if: 1. Circumstances beyond your control (such as if re, flood, or earthquake) prevent the transaction, despite reasonable precautions; 2. Through no fault of yours, I do not have enough money in my account or sufficient clear funds to make a transaction; 3. The funds in my account are subject to an uncollected funds hold, legal process, or other circumstances restricting such transfer or payment;

29 4. You have received incorrect or incomplete information from me or from third parties (e.g. the U.S. Treasury, an automated clearing house, or a terminal owner); 5. The Kinecta ATM or Network ATM or Electronic Access System was not working properly, and I knew about this breakdown when I started the transaction; 6. The Kinecta ATM or Network ATM where I was making the transaction did not have enough cash or cash in the denominations I requested; 7. My Kinecta ATM Card, Kinecta CheckCard, PIN(s), or Access Code(s) has been reported lost or stolen, has expired, is damaged so that the Kinecta ATM, Network ATM, or POS terminal cannot read the encoding strips, is inactive due to non-use, is retained by you due to my misuse or suspected fraudulent activities, is retained by you at my request, or because my PIN has been repeatedly entered incorrectly; 8. The transaction would exceed my Personal Line of Credit limit; 9. Transactions were not properly completed; 10. Delays in processing and/or payment were caused by third-party software and/ or services; 11. Your failure to complete the transaction is done to protect the security of my account and/or the electronic terminal system; 12. If I make an error keying in my deposit, you are not responsible for bounced checks, forfeited dividends, and other consequences which may result; 13. The payee mishandles or delays a payment sent by the Bill Payment Service; 14. There may be other exceptions provided in the regulations of the Board of Governors of the Federal Reserve System. Provided that none of the foregoing exceptions to the service performance obligations are applicable, if you cause an incorrect amount of funds to be removed from my account, or caused funds from my account to be directed to a person or entity which does not comply with your bill payment instructions, you shall be responsible for returning the improperly transferred funds to my account and for directing to the proper recipient any previously misdirected bill payments or transfers. THE FOREGOING SHALL CONSTITUTE YOUR ENTIRE LIABILITY AND MY EX- CLUSIVE REMEDY. IN NO EVENT SHALL YOU BE LIABLE FOR ANY DIRECT, IN- DIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR EXEMPLARY DAMAGES, INCLUDING LOSS OF PROFITS (EVEN IF ADVISED OF THE POSSIBILITY HERE- OF) ARISING IN ANY WAY OUT OF THE INSTALLATION, USE, OR MAINTENANCE OF ANY EQUIPMENT, SOFTWARE, AND/OR SERVICE. Charges for Electronic Funds Transaction Services: Charges associated with your electronic funds transactions are disclosed in your Schedule of Fees and Charges, which accompanies this Disclosure and Agreement. For example, a stop payment on a preauthorized electronic payment may be subject to a fee for each stop payment order I give. If I request a copy of the documentation relative to an ATM or POS transaction (except if the documentation is for resolution of a billing error), a fee equal to your reasonable cost of reproduction may be charged. Any fees charged will be deducted from my checking or share account(s). 25

30 If I have been issued an additional ATM or Kinecta CheckCard for a joint owner on my account, any transaction fees outlined in your Schedule of Fees and Charges that apply will be based on combined transactions. Withdrawals from more than one account or additional withdrawals from the same account during a single access will be counted as multiple withdrawals. Transaction fees will be charged to my account within two days from the day they are incurred. The fee will not be recorded on the transaction acknowledgment produced by the ATM, but it will be itemized on my monthly statement. I may be subject to additional fee(s) imposed by another financial institution or a merchant when performing ATM and/or Point-of-Sale transactions. This practice is known as surcharging and is in addition to any ATM fees charged by the Credit Union. Change in Terms: You may change the terms and charges for the services indicated in this Electronic Services Disclosure and may amend this Disclosure and Agreement from time to time. I will receive written notice at least twenty-one (21) days prior to the effective day of the change(s), or as otherwise provided by law. Disclosure of Delayed Funds Availability: Kinecta Automated Teller Machine (ATM) deposits will be held for two business days. Deposits at nonproprietary ATMs, such as CO-OP and Shared-Branch network ATMs, will be held for five business days. Funds may be held for a longer period after review of deposited items. You may also place an additional hold for uncollected funds on an item I deposit. This could delay my ability to withdraw such funds. Further details are set forth in your Disclosure of Funds Availability Policy. Termination of Electronic Services: I may, by prior written request, terminate any of the electronic services provided for in this Agreement and Disclosure. You may terminate my right to make electronic funds transfers at any time. If I ask you to terminate my account or the use of any Kinecta ATM, Kinecta CheckCard, Kinecta Direct, or Bill Payment Services, I will remain liable for subsequent transactions performed by any other party to my account. Periodic Statement: I will receive a monthly statement (unless there are no transfers during that month) for the account(s) that I have accessed, which will show the effective date that I initiated the transaction, the type of transaction, and the amount of transactions occurring during that statement period. In any case, I will get a statement at least quarterly. My electronic payments and transfers will be indicated on monthly statements you provide or make accessible by mail, electronically, or by some other means. My Liability for Unauthorized Transactions and Advisability of Prompt Reporting: I must tell you AT ONCE if I believe my Kinecta ATM Card, Kinecta CheckCard or PIN(s), and/or my Electronic Access System Access Code has been lost, compromised, or stolen. Telephoning is the best way of keeping my possible losses down. I could lose all the money in my account(s) plus my maximum overdraft line of credit. If I believe my Kinecta ATM Card, PIN, or Access Code has been lost or stolen, and I tell you within two (2) business days after I learn of the loss or theft, I can lose no more than $50 if someone uses my Kinecta ATM Card, PIN, or Access Code without my permission. If I DO NOT tell you within two (2) business days after I learn of the loss or theft of my Kinecta ATM Card, PIN, or Access Code, and you can prove you could have stopped someone from using my Card, PIN, or Access Code without my permission if I had told you, I could lose as much as $

31 If I am using a Kinecta CheckCard for transactions that take place on the Visa network system, I understand that Visa Operating Rules and Regulations provide for zero liability for losses from unauthorized (fraudulent) activity. This does not apply to ATM transactions using a PIN. Also, if my statement shows transactions that I did not make, I must tell you at once. If I do not tell you within sixty (60) days after the statement was mailed to me, I may not get back any money I lost after the sixty (60) days if you can prove that you could have stopped someone from taking my money if I had told you in time. If I can document that a good reason (such as a long trip or hospital stay) kept me from telling you, you will grant a reasonable extension of the time period. Restricted Transactions: My Kinecta ATM and Kinecta CheckCard and/or account(s) may not be used for any illegal activity or transaction. Further, I may not utilize my card and/or account for purchase of any goods or services on the Internet that involve gambling of any sort. Such transactions include, but may not be limited to, any quasicash or online gambling transaction, any electronic commerce transaction conducted over an open network, and any betting transaction including the purchase of lottery tickets or casino gaming chips or off-track betting or wagering. However, in the event that a transaction described in this paragraph is approved and processed, I will still be responsible for such charges. Telephone Number and Address to Be Notified in Event of Unauthorized Transactions: If I believe my ATM Card(s), PIN, or Access Code has been lost or stolen, or that someone will or may use it to transfer money from my account without my permission, I will telephone you at , or write to you at 1440 Rosecrans Avenue, P.O. Box 10003, Manhattan Beach, California Preauthorized, automatic, or telephone withdrawals or transfers from share and money market accounts are limited to no more than six (6) transfers in each calendar month. No more than three (3) of the six (6) withdrawals or transfers may be made by check, share draft, or other order, including debit cards and POS transactions. However, I may make an unlimited number of withdrawals from or transfers among my own share accounts by mail, messenger, or in person at the Credit Union or at an ATM. I may also make an unlimited number of withdrawals from my share and money market accounts through the Credit Union s Electronic Access Systems or by telephone if I request that you send me a check. Transfers or withdrawals in excess of the above limitations may not be honored. Verification: All transactions affected by use of the ATMs, POS terminals, Electronic Access Systems, Bill Payment Services, or other electronic transaction contemplated hereunder which would otherwise require my signature, or other authorized signature, shall be valid and effective as if signed by me when accomplished by use of the Card(s), PIN(s), and/or other Access Codes or as otherwise authorized under this Agreement. Deposits at an ATM are subject to verification by you and may only be credited or withdrawn in accordance with your Delayed Funds Availability Policy. Transactions accomplished after the close of normal business each day shall be deemed to have occurred on your next business day. You are not responsible for delays in a deposit due to improper identification on the deposit envelope or improper keying of my transaction. Information accompanying a deposit should include my name, your name, my member number, and where I want my deposit to go. Notice and Communications: Except as otherwise provided in this Agreement, all notices required to be sent to me will be effective when you mail or deliver them to the last known address that you have for me in your records or when you make such notices available to me through your Kinecta Direct or at the last known address you have for me. Notices from me will be effective when received by mail at the address(es) specified in the Agreement. 27

32 28 Collections: I agree that you shall be entitled to recover any money owed by me as a result of my use of, or the use of anyone I have provided with access to, any of your electronic services, and I agree to repay any amounts that create an overdrawn balance immediately upon demand. I may be charged an overdraft fee. You have a security interest in my present and future shares and have the right to apply such shares to any money I owe. If any legal action is required to collect money I owe, I agree to pay all costs of collection, including reasonable attorney s fees, court costs, and other charges incurred for enforcing your rights under this Agreement. Severability: If any part of this Agreement should be held to be unenforceable, the remaining provisions of this Agreement shall remain in full force and effect. Applicable Law: This Agreement shall be construed and governed by applicable federal laws and regulations and laws of the State of California, without resort to California s Conflicts of Law Rules. No Waiver: No delay or omission on your part in exercising any rights or remedies shall operate as a waiver of such rights or remedies. A waiver on any one occasion shall not be construed as a bar or waiver of any rights or remedies on future occasions. ADDITIONAL DISCLOSURES APPLICABLE TO PREAUTHORIZED DEPOSIT OF PAYCHECKS, PAYROLL DEDUCTIONS, PENSION CHECKS,AND FEDERAL RECURRING PAY- MENTS If I have arranged to have pre-authorized electronic deposit of my paycheck, payroll deductions, pension checks or federal recurring payments (for example, Social Security payments), the following information applies to me: Account Access: Preauthorized deposits may be made to my share or checking account(s). Notification of Preauthorized Deposits: If I have arranged with a third party (for example, the Social Security Administration) to make preauthorized deposits to my account at least once every sixty (60) days, that third party making preauthorized deposits may have agreed to notify me every time the party sends you money to deposit to my account. If I have not made such an arrangement, I may telephone you at or , and you will advise me whether or not the preauthorized deposit has been made. Documentation of Preauthorized Deposits: I will receive a monthly account statement for each month in which a preauthorized deposit is made, but at least quarterly if no preauthorized deposits are made. However, if the only electronic service I have with you is preauthorized deposits, then you reserve the right to send me a quarterly statement only. ADDITIONAL DISCLOSURES APPLICABLE TO PREAUTHORIZED PAYMENT SERVICES If I have requested a preauthorized payment from my account with you (for example, preauthorized payments of insurance premiums), the following information applies to me: Right to Receive Documentation of Preauthorized Payment: Initial Authorization: I can get copies of the preauthorized payment documentation from the third party being paid at the time I give them the initial authorization. Account Access: Preauthorized payments may be made from my checking, share, and money market accounts only.

33 Notice of Varying Amounts: If my preauthorized payment varies in amount, the party who will receive the payment is required to tell me ten (10) days before each such payment when it will be made and how much it will be. I may agree with the person being paid to receive this notice only when the payment will differ by more than a certain amount from the previous payment, or when the amount would fall outside certain limits that I set. Right to Stop Preauthorized Payment: If I want to stop any of the preauthorized payments or revoke a preauthorized payment authorization, I must call you at , or write to you at P.O. Box 10003, Manhattan Beach, California , in time for you to receive my stop request or revocation three (3) business days or more before the payment is scheduled to be made. If I call, you may also require me to put my request or revocation in writing and get it to you within fourteen (14) days after I call. You will charge me for each stop payment order I give. Such stop payment notice will apply only to that particular payment. If I have given you a request to revoke this entire preauthorized payment authorization, I understand and agree that I must also promptly contact the third party to cancel (revoke) the entire preauthorized payment authorization and provide you with a copy of my written revocation notice to the third party. Your Liability for Failure to Stop Payment: If I order you to stop one of my preauthorized payments three (3) business days or more before the transfer is scheduled, and you do not do so, you will be liable for my losses or damages, to the extent provided by law. Liability for Unauthorized Electronic Payments: I will be liable for unauthorized transfers made from my account by a third party. If I believe such transfer has occurred, I must follow the procedures outlined in the General Disclosures Applicable to All Electronic Services section for resolving errors. ADDITIONAL DISCLOSURES APPLICABLE TO ELECTRONIC CHECK TRANSACTIONS If funds from my account have been transferred via automated clearing house (ACH) and I have provided a paper check or check information to a merchant or other payee to capture the routing, account, and serial numbers to initiate the transfer (an electronic check transaction ), the following applies to me: Types of Available Transactions: I may make transfers via ACH where I have provided a paper check to enable the merchant or other payee to capture the routing, account, and serial numbers the initiate the transfer, whether the check is blank, partially completed, or fully completed and signed; whether the check is presented at POS or is mailed to a merchant or other payee or lockbox and later converted to an EFT; or whether the check is retained by the consumer, the merchant or other payee, or the payee s financial institution. Account Access: Electronic check transactions may be made from my checking account only. Limitations on Dollar Amounts of Transactions: I may make electronic check transactions only to the extent that I have available clear funds in my checking accounts or available funds in my designated overdraft sources. Overdraft to Line of Credit: I understand that if I have an overdraft line of credit account in conjunction with my checking account, then I may use that line of credit to fund any overdraft on my checking account, including overdrafts caused by any electronic check transactions. I understand that I may not otherwise initiate an electronic check transaction to overdraw my checking account or my line of credit, if applicable. However, if I do overdraw, I authorize you to cover the overdraft on my checking account by making a cash advance from my line of credit account, if any, or withdraw funds from my share account(s) or make a withdrawal from other accounts on which I am a joint owner. Overdrafts that cannot be honored are payable on demand and may result in termination of my account(s). 29

34 ADDITIONAL DISCLOSURE APPLICABLE TO ATM TRANSACTIONS Both the Kinecta ATM Card and Kinecta CheckCard (debit card) are referred to as the Card unless specifically described. The limitations on dollar amounts of transactions described hereunder apply in aggregate to ATM and Kinecta Check- Card transactions on all of my accounts under the same member number. If I have requested you to issue me a Card and I have selected a Personal Identification Number (PIN) which can be used to transact business at any Kinecta ATM, or at any ATM displaying the logo of the ATM networks listed below, hereinafter referred to as Network ATMs, or at POS Network terminals, then the following information applies to me: Account Access: The following transactions are available when using the Card and PIN at Credit Union ATMs: 1. Deposits or transfers to my Regular Savings Account(s), Checking Account(s), and Money Market Share Account(s); 2. Withdrawals or transfers from my Regular Share Account(s), Checking Account(s), and Money Market Share Account(s); 3. Certain loan payments made by cash, check, or by transferring funds from my Regular Share Account(s), Money Market Share Account(s), or Checking Account(s); 4. Advances on my Personal Line of Credit. Note: I understand and agree that if I make Mortgage Loan payments by transferring funds from my deposit accounts on ATM after 12:00 noon, the payment will be credited on the following business day. The following transactions are available when using the Card at Shared Network (Star System, Plus, and the CO-OP ) ATMs: 1. Withdrawals from my Regular Share, Money Market Share Account(s), and Checking Account(s). 2. Balance inquiries on my Regular Share, Money Market Share Account(s), and Checking Account(s). 3. Transfers between my Regular Share, Money Market Share Account(s,) and Checking Account(s). 4. All such transactions will access my primary account(s) unless otherwise designated. You may offer additional services in the future and, if so, you will notify me of them. NOTE: Transactions at a Shared Network System terminal may be subject to a Network Transaction Fee and/or a terminal use fee charged by the operator of the terminal. The following transactions are available when using ATMs located at CU Service Centers Shared Branch Locations: 30

35 1. Transfers or withdrawals from my Regular Share, Money Market Share, and Checking account(s). 2. Balance inquiries on my primary Regular Share, Money Market Share, and Checking account(s). 3. Deposits to my Regular Share, Money Market Share, and Checking account(s). 4. All such transactions shall access my primary accounts(s) unless otherwise designated. Foreign Transactions and Charges: If a transaction is made at a merchant or ATM that uses a currency other than U.S. dollars, Visa International Incorporated will convert the charge into a U.S. dollar amount. Visa will use the government-mandated conversion rate in U.S. dollars or a wholesale currency market rate based on the transaction processing date. The currency conversion rate used by Visa on the processing date may differ from the rate that would have been used on the purchase date or the cardholder statement posting date. The Credit Union has no control over the conversion rate. A separate Visa International Service Assessment (ISA) Fee of 1% for each foreign currency transaction applies. The ISA fee is charged directly to the Credit Union, passed on to the cardholder, and will appear on the statement as an additional charge. Limitations on Frequency and Dollar Amounts of Transactions: Provided I have enough money in my share/checking account(s), I may withdraw up to a maximum of $500 during any day, including Saturday and Sunday, when using an ATM. However, the amount that I may withdraw daily or in any single use of the ATM may be different at Network ATMs, where limits are determined by each individual participating financial institution. For security reasons, in the event my Card or PIN is lost or stolen, there are limits on the dollar amount of transactions I can make on the ATM System. Off-line Activity: Special processing requirements, such as emergencies or telecommunications problems, may from time to time make it necessary for the Kinecta ATM System during scheduled hours to be temporarily out of service or to operate in an off-line mode. During off-line operation, withdrawals from a checking or savings account are limited to $100 at a Kinecta ATM or Network ATM and Personal Line of Credit advances and account inquiries are not available. Card and PIN Safety Precautions: Both a Card and a Personal Identification Number (PIN) will be used each time I use an ATM. The following conditions must be observed for both the privacy and protection of my account and the system(s): 1. I MUST KEEP MY CARD IN A SAFE PLACE AND PERMIT NO UNAUTHOR- IZED PERSON TO USE IT; 2. I MUST NOT DISCLOSE MY KINECTA ATM PERSONAL IDENTIFICATION NUMBER (PIN) TO ANY UNAUTHORIZED PERSON OR WRITE IT ON MY CARD, CARRY IT IN MY WALLET OR PURSE, OR OTHERWISE MAKE IT AVAILABLE TO ANYONE ELSE; 3. I WILL IMMEDIATELY REPORT TO YOU ANY LOSS OR THEFT OF MY CARD AND/OR PIN. IF I AUTHORIZE YOU TO ISSUE A CARD (OR ANY OTHER ACCESS DEVICE) TO ANYONE ELSE, I AUTHORIZE THAT INDIVIDUAL TO WITHDRAW FUNDS FROM MY ACCOUNT(S) WHICH CAN BE ACCESSED BY 31

36 THE CARD REGARDLESS OF WHETHER THAT INDIVIDUAL IS AUTHORIZED TO WITHDRAW MONEY FROM THE ACCOUNT BY ANY MEANS OTHER THAN BY USE OF THE CARD. Safety Tips for Using an ATM or POS Terminal: When using my Card I will observe the following precautions: 1. Be aware of my surroundings, particularly at night; 2. Consider having someone accompany me when using the ATM or POS terminal after dark; 3. Put away cash as soon as the transaction is completed, not display it, and not count the cash until later in the safety of my vehicle or home; 4. If I do notice anything suspicious when approaching the ATM, I will defer the transaction until later or use another ATM or POS terminal; 5. If I notice anything suspicious while transacting business, I will immediately cancel the transaction and put my Card away; 6. Immediately report all crimes to the ATM or POS terminal operator and local law enforcement officials. My PIN: I agree to memorize my PIN and will not write it on the Card. After memorizing it, I should destroy the PIN notation. Then I can be assured that no one other than myself will use the Card. If I forget the number, I may come to one of your Member Service Centers and select a new PIN, provided I present adequate identification. Right to Receive Documentation of Transactions: I will receive a receipt acknowledgment at the time I make an ATM transaction. I should retain this receipt and compare it with my statement from you. Making Electronic Funds Transfers: I agree to follow the instructions posted or other wise given by you or the Network ATM systems concerning the use of the ATMs. ADDITIONAL DISCLOSURES APPLICABLE TO POINT-OF-SALE TRANSACTIONS The limitations on dollar amounts of transactions described hereunder apply in aggregate to ATM and Kinecta CheckCard (debit card) transactions on all of my accounts under the same member number. Point-of-Sale (POS) Transactions: Both the Kinecta ATM Card and Kinecta Check- Card are referred to as the Card unless specifically described. Types of Available Transactions and Limits on Transactions: By use of my Kinecta ATM Card or my Kinecta CheckCard with my PIN or signature at a participating POS terminal, I authorize you to make withdrawals from my Checking or Share Account(s) for cash advances and/or purchases. I understand that overdraft protection may not be available for such transactions for funds availability or authorization purposes. 32

37 Account Access: I may use my Card to withdraw cash from my checking or share account(s) by way of a cash advance from merchants, financial institutions, or others who honor the Card. I understand that my Card is not a credit card and does not provide credit. Limitations on Frequency and Dollar Amounts of Kinecta ATM Card Transactions: I may make cash advances and purchases only to the extent that I have available funds in my checking or share account(s) subject to online and off-line per-day limitations. Limitations on CheckCard Transactions: Kinecta CheckCards may be used to access my checking accounts from any merchant location where the VISA logo is displayed. The merchant may be required to obtain an authorization from you for any transaction over a certain dollar amount. The available balance in my account will be reduced by the amount of any transaction for which the merchant receives authorization from you, even if the documentation evidencing the transaction has not yet been received or processed by you. When the document has cleared through you, any hold placed on my account for the amount of the transaction will be released and my account will be debited for the amount of the transaction. I agree that you are not responsible if you do not authorize or if you dishonor other POS, ATM, or check transactions drawn on my account while a hold is placed on my account. Limitations on Frequency and Dollar Amounts of CheckCard Transactions: I understand that the Kinecta CheckCard has a cumulative daily transaction limit of $1,500 within which the following limits also apply: (1) $500 daily limit on cash withdrawals at an ATM, and (2) $1,000 daily limit on POS transactions using a PIN or a signature-based transaction. I understand that both ATM and POS transactions (using a PIN or a signature) are counted in the $1,500 daily limit. Right to Receive Documentation: I can receive a receipt from the merchant or financial institution at the time I make a purchase or obtain a cash advance from my checking or regular share account. I may receive an imprinted sales slip in the case of CheckCard transactions. I should retain these receipts to compare with my statement from you. Card Claims and Transaction Questions: When I authorize other parties to debit my account, I am responsible for these transactions. Thus, I may have to contact these parties directly if I have questions or complaints about my transactions. Any claims concerning property or services purchased with my Card must be resolved by me directly with the merchant or seller who accepted the Card. I understand you will not be able to help me because you only have the information received from the other party. Any claim or defense that I assert will not relieve me of my obligation to pay you the total amount of the sales slip. I am not permitted to stop payment on any purchase made through the use of my Card. Kinecta CheckCard Purchase Returns and Adjustments: No cash refunds will be made to me on purchases made with my Kinecta CheckCard. Any refund to me by a merchant or seller of goods or services must be made on a credit voucher signed by me and submitted to you by the merchant or seller. The amount of my credit will be indicated on my checking account statement. Foreign Transactions: Purchases using Kinecta CheckCards made in foreign countries and foreign currencies will be billed to me in U.S. dollars. The conversion rate to dollars will be made in accordance with the operating regulations for international transactions established by VISA International, Inc. Use of Kinecta CheckCard: The use of my Kinecta CheckCard shall be through secret PIN (Personal Identification Number) activation or my signature. I agree that all transactions made with my authorized PIN or signature utilization are made by me, and I accept all financial liability for such transactions. I also agree to sign my signature in the space provided on my Kinecta CheckCard for additional security 33

38 and protection. I agree to keep my PIN protected as described under Additional Disclosure Applicable to ATM and Point-Of-Sale Electronic Funds Transactions hereunder. Hold on Funds: I understand that transactions initiated by use of my Kinecta CheckCard will create an automatic hold on funds equal to the transaction amount or may result in immediate withdrawals from my checking account or other linked account(s) depending on the nature of the particular transaction. If I do not have adequate funds or amounts in my primary or linked account(s) my transaction may be denied. Transaction Fees: The Credit Union does not charge any transaction fees on my Card transactions at this time. However, I understand that other merchants and institutions may charge such transaction fees. This fee will be included in the amount of the transaction as it appears on my periodic statement. The Credit Union may charge transaction fees in the future upon written notice at least 21 days in advance, or as otherwise provided by law. Ownership of Card: The Card (whether used at POS Terminals or ATMs) remains your property, and I agree to surrender the Card to you upon demand. You may cancel, modify, or restrict the use of any Card upon proper notice or without notice if any of my accounts are overdrawn, if any of my loan accounts are delinquent, if an advance drawn on any loan exceeds my credit limit, if I use my Card in a manner which may cause loss to you, or if you are aware that I have violated any term of this Disclosure and Agreement, whether or not you suffer a loss, or where necessary to maintain or restore the security of my account(s) or the ATM System. ADDITIONAL DISCLOSURE APPLICABLE TO ATM AND POINT-OF-SALE ELECTRONIC FUNDS TRANSACTIONS FOR YOUTH CLUB ACCOUNT HOLDERS Account Ownership: My application for issuance of a Kinecta ATM Card must be a joint application with an adult co-applicant (guardian or parent) over the age of 18. Limitations on Frequency and Dollar Amounts of Transactions: Provided I have enough money in my savings/checking account(s) or available credit under my Personal Line of Credit, I may withdraw up to a maximum of $100 during any day, including Saturday and Sunday. However, the amount that I may withdraw daily or in any single use of the ATM may be different at Network ATMs where limits are determined by each individual participating financial institution. ADDITIONAL DISCLOSURE APPLICABLE TO ELECTRONIC ACCESS SYSTEMS Types of Transactions: I will have access to your Electronic Access Systems (which may consist of the Automated Voice Response system, Kinecta Direct, and Bill Payment) with my personal Access Code, identification number, or password (collectively referred to as Access Codes) that I select. I may change my Access Code(s) at any time and should do so if an unauthorized person has access to my current Access Code(s). Account Access: I may use my Code(s) with the Electronic Access Systems to: 1. Make inquiries on account balances and loan payment data. 2. Request that you issue a stop payment order on my checks drawn on any checking account. I realize and understand that I must give you a reasonable time within which to act and I agree to indemnify, defend, and hold you harmless from any and all liability with respect to my stop payment request. 34

39 3. Request transfers to and from share, money market, checking accounts, and/or loans. 4. Request transfers from savings to make loan or other payments. 5. Inquire about paid checks. 6. Inquire on prior and current year s dividends. 7. Authorize you to pay bills as directed by me. 8. Place stop payments. You may offer additional systems and/or services in the future, and if so I will be notified of them. Limitations: Account withdrawals and transfers are unlimited to the extent that I have clear available funds in the account and have not exceeded any required limitations. NOTE (not applicable to Bill Payments): Requests for check withdrawals accepted on regular business days will be mailed on the next business day to the address of record for the account. The minimum savings withdrawal is $1.00 and the maximum is $50,000. The minimum Personal Line of Credit advance is $20 and the maximum is my available unused credit. If I make Credit Card or Mortgage Loan payments by transferring funds from my account on Kinecta Direct after 12:00 noon, the payment will be credited on the following business day. Verification of Transfers: I may telephone you at or and you will advise me whether or not the transfer has occurred. Data Recording: I understand and agree that when I use Kinecta Direct, the information I enter may be recorded. Access Code Safety Precautions: 1. I must not disclose my Access Code to any unauthorized person, carry it in my wallet or purse, or otherwise make it available to anyone else; 2. I will report to you immediately if I forget my Access Code or have reason to believe it has been compromised in any way. 3. I understand that if I give my accounts and/or give my Access Code to anyone (joint owner or not), this person will have access to all of my accounts under my member number, including my Personal Line of Credit, and will also have the ability to modify my Access Code at any time. By giving my Access Code to anyone, I have authorized that person to withdraw funds from my accounts. Disclaimer: I UNDERSTAND THAT THE ELECTRONIC ACCESS SYSTEMS ARE AUTHORIZED ONLY FOR DOMESTIC USE WITHIN THE UNITED STATES AND TERRITORIES THAT FALL UNDER THE JURISDICTION OF U.S. LAWS AND TREA- TIES. THE CREDIT UNION ACCEPTS NO RESPONSIBILITY FOR ANY USAGE GO- ING OUTSIDE OR THROUGH THE TERRITORIAL JURISDICTION OF THE UNITED STATES OR ANY VIOLATIONS OF FOREIGN ENCRYPTION OR TELECOMMUNI- CATION PROHIBITIONS OR LAWS. 35

40 36 ADDITIONAL DISCLOSURE APPLICABLE TO BILL PAYMENT SERVICES Type of Transactions: If I choose to use the Bill Payment services, in addition to the Kinecta Direct features previously listed I may also pay bills online from my Bill Payment Checking Account to persons or entities I select. I understand that payment of taxes or court-directed payments through the Bill Payment services is prohibited. Designating a Bill Payment Account: When I set up Kinecta Direct and Bill Payment services, I must designate a checking account as my Bill Payment account. If I close my Bill Payment checking account, or if it is no longer linked to my Kinecta Direct, my Bill Payment services will end, and any unprocessed bill payments will not be made. In the event I change my checking account type or my account number, I understand that I must reenroll in Bill Payment and reestablish schedule bill payments from my previous account. A bill payment scheduled to be made on a day that is not a business day will be made on the previous business day. Canceling My Bill Payment Services: If I choose to discontinue my Bill Payment services, any unprocessed bill payments will be canceled. I understand that I should cancel any scheduled bill payments through Kinecta Direct prior to discontinuing the Bill Payment services. I may cancel a Bill Payment transaction up to, but not including, the date I scheduled it for processing. I must go online and cancel before the end of your business day prior to the date the transaction is scheduled to be processed. Bill Payments: I understand and agree that I must be 18 years of age (or age of majority depending on the state in which I reside) to set up or use Bill Payment. Bill Payments can be from any amount between $1.00 and $9, When I schedule a Bill Payment using Kinecta Direct, I authorize you to withdraw the necessary funds from my checking account. I agree that I will instruct you to make a withdrawal only when a sufficient balance is or will be available in my designated account or the funds are available through my checking account overdraft source(s). While it is anticipated that most transactions will be processed five (5) business days before my scheduled payment date, I understand that due to circumstances beyond your control, particularly delays in handling and posting payments by slow responding companies or financial institutions, some transactions may take a day or even a few days longer to post to my account with the designated payee. For this reason all the Bill Payment dates should be scheduled by me at least seven (7) business days before the actual due date (not the late date and/ or the grace period). A Bill Payment scheduled to be made on a day that is not a business day will be made on the next business day. If I properly follow the procedures described herein, and you fail to send a payment according to the payment instructions received, you shall be responsible for returning the improperly transferred funds to my account and for directing to the proper recipient any previously misdirected bill payments or transfers. In the event, including but not limited to scheduling a payment date which is not at least seven (7) business days before the due date, or on or past the due date stated on my bill, the risk of incurring and responsibility for paying any and all late charges or penalties shall be borne by me. I agree to enter my account number and address as they appear on my payment stub or bill when adding payees to my Kinecta Direct. For purposes of Bill Payment, a business day is defined as a day when your Member Service Centers are open for business. I understand that the primary or any joint owner of my account can sign up for Bill Payment, unless the primary owner of my account requests in writing to you that Bill Payment be blocked. Once blocked, Bill Payment may only be activated

41 by a written request by the primary owner. I also understand that once Bill Payment is established, the primary or any joint owner of my account may terminate Bill Payment services by notifying you in writing. I hereby agree to indemnify, defend, and hold you harmless from acting upon the request of the primary or any joint owner of my account. Non-Sufficient Funds: I understand that you will not act on any withdrawal instruction from me if sufficient funds, including any overdraft line of credit and funds available in my other overdraft sources, are not available in my Bill Payment Checking Account, and you will not pay the bill payment. In some instances, at your option, I will receive a notice from you either in writing or electronic mail. Whether notified or not, I agree that my account will be charged a fee in accordance with your Schedule of Fees and Charges. Merchant or Payee Limitation: I understand that you reserve the right to refuse to pay any person or entity to which I may direct a payment. You are obligated to notify me promptly if you decide to refuse to pay the person or entity designated by me. This notification is not required if I attempt to pay tax or court-related payments, which are prohibited under this agreement. In addition, I understand that you will not be able to execute any bill payment if the payee cannot or will not accept such payment. Information Authorization: Through my enrollment in the Bill Payment services, I agree that you reserve the right to request a review of my credit rating at your own expense through an authorized bureau. In addition, I agree that you reserve the right to obtain financial information regarding my account from a merchant or a financial institution to resolve payment posting problems. Right to Cancel Bill Payments: If I want to cancel any of my scheduled bill payments, I must cancel the bill payment by 11:59 p.m. on the prior day of the scheduled date by accessing Bill Payment through Kinecta Direct. You will charge me for each stop payment order I give. Such stop payment notice will apply only to that particular payment. Charges: As a Bill Payment user, I agree to be charged a fee per month charged against the account designated as a Bill Payment Checking Account. The monthly fee you charge for Bill Payment may change from time to time with prior notice to me. There may be a charge for additional transactions and optional services. I agree to pay such charges and authorize you to charge first my Bill Payment Checking Account, and in the event there are not sufficient funds in the checking account, then my share and money market share accounts, for these amounts and any additional charges that may be incurred by me. Changes: I understand and agree that you have the option to electronically notify me of changes in the Bill Payment terms and conditions. I agree to be bound by the revised terms and conditions and understand that they will be included in the next Amendment or Addendum to your Agreements and Disclosures booklet. 37

42 38 PART V FUNDS TRANSFER AGREEMENT AND NOTICE The State of California has adopted as law Article 4A of the Uniform Commercial Code, and the Board of Governors of the Federal Reserve has amended Subpart B of Regulation J. This law and regulation cover the movement of funds by means of wire transfers, Automated Clearing House (ACH) transactions, and some book transfers on the Credit Union s records. The law is intended to establish a comprehensive legal framework covering the duties, responsibilities, and liabilities of all parties involved in a funds transfer. This Funds Transfer Agreement (Agreement) contains several notices that the Credit Union is required to provide to me and establishes other terms of agreement that will apply to all funds transfers that involve me and the Credit Union. Using the Credit Union to send or receive funds transfers shall constitute my acceptance of all of the terms and conditions contained in this Agreement. To the extent that the terms contained in this Agreement are different than those in any other agreement or terms of account, this Agreement shall control and be deemed to modify such other agreements or terms of account. 1. This Agreement applies to funds transfers as defined in the Article 4A of the Uniform Commercial Code (Division II of the California Uniform Commercial Code) and Subpart B of Regulation J of the Board of Governors of the Federal Reserve. 2. You may establish or change cut-off times for the receipt and processing of funds transfer requests, amendments, or cancellations. Unless other times are posted for the various types of funds transfers, the cut-off time for wire transfers will be at 11:30 a.m. P.S.T. (11:00 a.m. PST for international wires) on each weekday that the Credit Union is open which is not a federal holiday. Payment orders, cancellations, or amendments received after the applicable cut-off time may be treated as having been received on the next following business day and processed accordingly. 3. You may charge my account for the amount of any funds transfer initiated by me or by any person authorized by me as a joint tenant or other authorized party with the right of access to the account from which the funds transfer is to be made. 4. You may establish, from time to time, security procedures to verify the authenticity of a payment order. I will be notified of the security procedure, if any, to be used to verify payment orders issued by me or for which my account will be liable. I agree that the authenticity of payment orders may be verified using that security procedure, unless I notify you in writing that I do not agree to that security procedure. In that event, you shall have no obligation to accept any payment order from me or other authorized parties on the account until you and I agree, in writing, on an alternate security procedure. 5. If I send or receive a wire transfer, Fedwire may be used. Regulation J is the law covering all Fedwire transactions. This means that my rights and liabilities in a wire transfer involving Fedwire will be governed by Regulation J. 6. If I give you a payment order which identifies the beneficiary (recipient of the funds) by both name and identifying account number, payment may be made by the beneficiary s bank on the basis of the identifying account number, even if the number identifies a person different than the named beneficiary. This means that I will be responsible to you if the funds transfer is completed on the basis of the identifying account number I provided you. 7. If I give you a payment order which identifies an intermediary or beneficiary s bank by both name and an identifying number, a receiving bank may

43 rely on the number as the proper identification even if it identifies a different person or institution than the named bank. This means that I will be responsible for any loss or expense incurred by a receiving bank which executes or attempts to execute the payment order in reliance on the identifying number I provided. 8. You may give me credit for Automated Clearing House (ACH) payments before you receive final settlement of the funds transfer. Any such credit is provisional until you receive final settlement of the payment. I am hereby notified and agree, if you do not receive such final settlement, that you are entitled to a refund from me of the amount credited to me in connection with that ACH entry. This means that you may provide me with access to ACH funds before you actually receive the money. However, if you do not receive the money, then you may reverse the entry on my account and I would be liable to repay you. 9. ACH transactions are governed by operating rules of the National Automated Clearing House Association. In accordance with these rules, you will not provide me with next-day notice of receipt of ACH credit transfers to my account. I will continue to receive notices of receipt of ACH items in the periodic account statements that you provide. 10. If you received a funds transfer for me or for other persons authorized to have access to my account, I agree that you are not obligated to provide me with next-day notice of the receipt of the funds transfer. You will provide me with notification of the receipt of all funds transfers by including such items in the periodic account statements that you provide. I may, of course, inquire between receipt of periodic statements whether or not a specific funds transfer has been received. 11. If you become obligated under Article 4A (Division II of the California Uniform Commercial Code) to pay interest to me, I agree that the rate of interest to be paid shall be equal to the dividend rate, on a daily basis, applicable to the account with you to which the funds transfer should have been made or from which the funds transfer was made. 12. You may, in your sole discretion, reject any funds transfer request which: (1) exceeds the collected and available funds on deposit in my designated account(s); (2) is not authenticated to our satisfaction or which you reasonably believe may not be authorized by me; (3) contains incorrect, incomplete, or ambiguous information; or (4) involves funds subject to a lien, hold, dispute, or legal process pending their withdrawal. I understand and agree that you shall incur no liability for any loss occasioned by your refusal to accept any funds transfer order. 13. You shall have the right to charge the amount of any funds transfer request to any of my accounts with you in the event that no account is designated, or in the event that a designated account has insufficient collected funds to cover the amount of a funds transfer request. You may charge a service charge for services relating to the sending or receiving of the funds transfer request. Such charge(s) are set forth in your Schedule of Fees and Charges, which is incorporated by this reference. 14. There is no right to cancel or amend the transfer order. You, at your option, may attempt cancellation or amendment if this application has been acted on, but will have no liability if the cancellation or amendment is not effectuated. In any event, you will not credit funds until you confirm the recipient has not received funds and any funds transmitted have been returned. You have no obligation to re-execute any rejected or returned transfer order. You will credit any account following return or rejection. Any credit may 39

44 not be equal to original amount due to, for example, differences in foreign currency exchange rates, cable fees, your expenses, or expenses of other institutions. In addition, you will have no obligation to pay interest on any cancelled, returned, or rejected transfer order. 15. If I initiate a funds transfer request denominated in U.S. dollars for transfer to a foreign country, you may transfer payment in the currency of the beneficiary bank s country at your buying rate of exchange to U.S. dollars. If the transfer is returned for any reason, I agree to accept the refund in U.S. dollars in the amount of the foreign money credit, based on the then current buying rate of the bank converting the currency to U.S. dollars at the date of refund, less any charges and expenses incurred by you. 16. I understand and agree that in case of unauthorized or improper ACH debit activity on my account, I must complete and sign the Credit Union s affidavit of unauthorized or improper ACH debit activity. 17. Except as expressly prohibited by applicable state and federal laws and regulations, I understand and agree that you will not be liable for any loss or liability arising from: (1) any unauthorized transfer or interest thereon (including, but not limited to, fraudulent transfers and/or a transfer where you failed to abide by the agreed-upon security procedures) which I fail to report to you within thirty (30) days after my receipt of notification of the transfer; (2) any negligent or intentional action or inaction on the part of any person not within your reasonable control, including, but not limited to, the failure of other financial institutions to provide accurate or timely information; (3) the failure of other financial institutions to accept a funds transfer order; (4) my negligent or intentional action or inaction and/or breach of this Agreement; (5) any ambiguity or inaccuracy in any instruction given to you by me or my authorized agent; or (6) any error, failure, or delay in execution of any funds transfer instruction, or cancellation or amendment caused by circumstances beyond your reasonable control, including, but not limited to, any computer or communication facilities malfunction. Except as otherwise provided by applicable state or federal laws or regulations, your liability for any negligent or intentional action or inaction in connection with any funds transfer request shall be limited to my direct loss and payment of interest. UNDER NO CIRCUMSTANCES SHALL YOU BE LIABLE FOR ANY LOST PROFITS, CONSEQUENTIAL, INDIRECT, PUNITIVE, OR SPECIAL DAMAGES THAT I MAY SUFFER IN CONNECTION WITH THIS AGREEMENT AND/OR ANY FUNDS TRANSFER REQUEST. 18. Subject to applicable state and federal laws and regulations, you may amend the terms of this Agreement at any time. By thereafter using or continuing to use your funds transfer services, I agree to such amendments. 19. Except as otherwise expressly provided by applicable state and federal laws and regulations, this Agreement and all transactions initiated hereunder shall be governed by and construed in accordance with the internal laws of the State of California, notwithstanding any conflict of laws doctrines of such state to the contrary. 40

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48 Kinecta Federal Credit Union 1440 Rosecrans Ave. Manhattan Beach, CA /10