MEMBERSHIP AGREEMENT AND DISCLOSURES

This Agreement is the contract which covers your and our rights and responsibilities concerning Membership and Account(s) offered to you by Credit Union 1 (“Credit Union”). In this Agreement, the words “you” and “yours” mean those who sign the Membership Application as owners, or any authorized users. The words “we”, “us”, and “our” mean Credit Union 1. The word “account” means any one or more accounts you have with the Credit Union.

By signing the Membership Application and Master Account Agreement, each of you, jointly and severally, agrees to the terms and conditions in this Agreement, including the Funds Availability Policy. In addition you agree to abide by the Credit Union’s Bylaws and policies and any amendments of these documents which collectively govern your membership and account(s). You agree that any additional accounts and services you request in the future will be governed by this Agreement. You may receive a copy of any of the above documents by requesting a copy or by accessing them online at www.creditunion1.org.

Membership Eligibility: To be eligible for membership in the Credit Union you must be an individual or entity qualifying within the Credit Union’s field of membership and must purchase and maintain at least one share at par value in your savings account as required by the Credit Union’s Bylaws. You authorize us to look at your account, credit and employment history, and obtain a credit report from third parties, including credit reporting agencies, to verify your eligibility for accounts and services you request.

Joint Accounts: An account owned by two or more persons is a joint account. If your account is a joint account, the account is owned as a joint account with rights of survivorship, meaning that upon the death of one of the joint owners, that person’s interest will become the property of the surviving joint owner or owners. If your Membership Application indicates that you have a joint account (more than one owner) then all sub-accounts under that account number (except IRA’s and Certificate accounts) will be held by the same persons.

a. Rights of Joint Account Owners: Any joint owner is authorized to act for the other owner(s) and the Credit Union may accept orders and instructions regarding the account and requests for future services from any joint owner. Any joint account owner may terminate the account by withdrawing all funds in the account and requesting that it be closed, stop payment on items drawn on an account, withdraw, transfer or pledge all or any part of the shares of any account, including funds representing a membership share, without the consent of the other joint account owner(s) and the Credit Union shall have no duty to notify any other joint owner. If the Credit Union receives written notice of a dispute between joint owners or receives inconsistent instructions from them, the Credit Union may suspend or terminate the account, require a Court order to act, or require that all joint owners agree in writing to any transaction concerning the account.

b. Joint Account Owner Liability: If any item deposited in a joint account is returned unpaid or an account is overdrawn, each of the joint account owners is jointly and severally liable to the Credit Union for the amount of the returned item or overdraft and any charges, regardless of who created the overdraft, deposited the item, or benefited from the transaction. If any joint owner is indebted to the Credit Union such that the Credit Union has a lien against an account of that joint owner, the Credit Union may enforce its rights against any or all funds in the joint account regardless of who contributed the funds to the joint account.

Payable on Death (P.O.D.) Accounts: A payable on Death (P.O.D.) account is an account payable to the owners during their lifetimes, and upon the death of the last owner, payable to the beneficiary or beneficiaries named on your P.O.D. account card. Upon receiving proof of the death of the last account holder, the Credit Union will disburse the funds to the beneficiaries listed on the P.O.D. account card in equal proportions. If there is no surviving P.O.D. beneficiary upon the death of the last owner, state law will determine ownership of the funds in the account. Any P.O.D. beneficiary shall not apply to IRA accounts or Certificates of Deposit, which shall be governed by a separate beneficiary designation. The Credit Union shall at no time have any obligation whatsoever to notify any beneficiary of the existence of any account or the vesting of the beneficiary’s interest in any account, except as otherwise provided by law.

Accounts for Minors: For any account established by a minor (someone under the age of 18) the Credit Union reserves the right to require the minor account to be a joint account with an owner who has reached the age of majority under state law who shall be jointly and severally liable to the Credit Union for any returned item, overdraft, or unpaid charges or amounts on such account. The Credit Union may make payments of funds directly to the minor without regard to his or her minority. Unless a guardian or parent is an account owner, the guardian or parent shall not have any right to access the account.

Uniform Transfers/Gifts to Minors Account: A Uniform Transfers/Gifts to Minors Account (UTTMA/UGMA) is an individual account established by a member as a custodian on behalf of a minor. A minor for the purpose of a UTTMA/UGMA account is anyone under the age of 21. The custodian deposits funds as an irrevocable gift to a minor and must open the account in his or her name and provide the minor’s Social Security Number (SSN) on the account card. The minor to whom the gift is made is the owner and beneficiary of the account. The Custodian has possession and control of the account for the exclusive right and benefit of the minor, and barring a court order otherwise, is the only party entitled to make deposits to, withdrawals from, or close the account. The custodian is the only person authorized to sign on the account. The Credit Union has no duty to inquire of the use or purposes of any transaction by the custodian. In the event of the custodian’s death, resignation, or incapacity, any successor custodian named on the account may serve, otherwise, the Credit Union may place an administrative hold on the account, until it receives instructions from any person authorized to withdraw funds or a court order authorizing such withdrawal. The Credit Union has not provided you any tax advice on this account and you are advised to see a qualified tax advisor on the tax treatment of this account.

Accounts for Living Trusts: A living trust is an account created by a written document under which the grantor (person establishing the trust) transfers his or her property into the trust. A trustee (usually the same as the grantor) administers the property. The grantor must be a member of the credit union. Credit Union requires a copy of the applicable pages of the trust document before setting up the account.

Club Accounts: Accounts held for an organization or association or business purpose are subject to the same terms set forth in this Agreement and the following additional rules. The account owners agree to inform the Credit Union of the persons authorized to transact business on behalf of the organization The Credit Union may rely on the account owner’s representation of authorization until such time as the Credit Union is informed of changes in writing. Third party checks payable to the organization may not be cashed, but must be deposited to an account. The agent authorized to act on behalf of the organization has no ownership rights to the account and no Credit Union voting rights.

Deposit of Funds Requirements: Funds may be deposited to any account, in any manner approved by the Credit Union and in accordance with any instructions that may accompany a specific sub-account. Generally, funds may be deposited at the main facility or any of the branches, as well as by mail, by depositing in an ATM (Automatic Teller Machine), by ACH, direct deposit or payroll deduction.

a. Endorsements: You authorize the Credit Union, in its discretion, to accept transfers, checks, drafts, and other items for deposit into any of your accounts if they are made payable to, or to the order of, any one or more owners on the account, whether or not they are endorsed by all owners/payees. You authorize the Credit Union to supply missing endorsements if the Credit Union chooses to supply such endorsements. When you deposit items to your account, you warrant that all prior endorsements are genuine. The Credit Union reserves the right to verify all endorsements on third party checks presented for deposit. The Credit Union may require that insurance, government, and certain other checks or drafts be endorsed in person exactly as they are made payable. Endorsements must be placed in the space on the back of the share draft or check between the top edge and 1-1/2 inches from the top edge. The Credit Union may accept drafts or checks with endorsements outside this space. However, if any such endorsement causes any delay in processing the item for payment, you will be responsible for any loss incurred by the Credit Union due to the delay or error.

b. Collection of Items: The Credit Union shall not be responsible for deposits made by mail or at an unstaffed facility until the Credit Union actually receives them. In handling items for deposit or collection, the Credit Union only acts as your agent and assumes no responsibility beyond the exercise of ordinary care. The Credit Union will not be liable for the negligence of any correspondent or for loss in transit, and each correspondent will only be liable for its own negligence. The Credit Union reserves the right to send any item for collection.

c. Final Payment: All noncash deposits or ACH (Automated Clearing House) transfers to your account are provisional and subject to our receipt of final payment. If final payment is not received, we reserve the right to charge your account for the amount of those deposits and impose a return deposit charge on your account. After we have received final payment, we refer to these deposits as collected items. If the Credit Union incurs any fee to collect your deposit item, the Credit Union may charge such fee to your account. The Credit Union reserves the right to refuse or to return all or a part of a deposit or to close your account. The Credit Union shall have the right to charge back against your account all previously deposited items or other items endorsed by you that are returned to the Credit Union unpaid, regardless of whether the amount of the item has been available for your use.

d. Direct Deposit: The Credit Union may offer direct deposit options allowing you to preauthorize deposits (i.e., payroll checks, Social Security or retirement checks, or other government checks) or preauthorize transfers from other accounts at the Credit Union. You must authorize any direct deposits to your accounts by a separate authorization form. If applicable, you must notify the Credit Union at least 30 days prior to the cancellation of any direct deposit or preauthorized transfer. Upon filing of bankruptcy, you must instruct your employer to cancel any direct deposit authorizations. If you fail to notify your employer or the Credit Union, the Credit Union will continue to accept and apply direct deposits in accordance with your authorizations on file with the Credit Union.

e. Crediting of Deposits: Unless otherwise stated in the Funds Availability Policy below, deposits received at our offices on business days before closing time will be credited to your account as of the day of the deposit. Deposits made on Sundays and Credit Union holidays will be credited to your account on the next business day. Deposits received at unstaffed teller locations such as night depositories will be credited on the day funds are removed and processed by the Credit Union. Items drawn on an institution located outside the United States are handled on a collection basis only and amounts will be credited to your account when we receive final payment. You waive any notice of nonpayment, dishonor or protest regarding any items received by Credit Union for credit to your account or for collection.

Truth-in-Savings (TIS) Disclosures: The Credit Union’s payment of dividends on share accounts is subject to the following:

a. Rate Information: The Dividend Rate and Annual Percentage Yield (APY) on your savings, money market accounts, and Certificate Accounts (C.D.’s and IRA’s), and any other applicable accounts are set forth on the Rate Schedule or any rate sheet that may accompany a specific account. The Dividend Rate and Annual Percentage Yield for these accounts may change as determined by the Credit Union Board of Directors or as specified on the Certificate itself in the case of Certificate Accounts. The Board of Directors declares dividends based on current income and available earnings of the Credit Union after providing for the required reserves at the end of the month. The stated Dividend Rate and Annual Percentage Yield reflect the earnings the Credit Union anticipates having available for distribution. The Dividend Rate and Annual Percentage Yield are not guaranteed except on Certificate Accounts.

b. Compounding and Crediting: Dividends on your primary savings account are caculated daily and are paid and compounded monthly on balances greater than $50.00. Once your savings account reaches a balance of $50.00 you are paid dividends on the entire amount. Dividend rates are subject to change each dividend period. Shares earn dividends from the date of deposit to the date of withdrawal. If you close your accounts before the end of the dividend period, you may not receive the accrued dividends for that period. The frequency with which dividends will be compounded and credited to your other accounts are set forth in the Rate Schedule.

c. Balance Requirements: Any minimum balance requirement to open an account, avoid the imposition of a fee and obtain the disclosed Annual Percentage Yield for savings, money market, applicable checking accounts and certificate accounts are set forth on the Rate Schedule or the Fee Schedule. Both schedules are available on our web site at www.creditunion1.org, through 1-Touch audio or at any branch. You may also call the Credit Union and request those schedules be sent to you. Where applicable, if your accounts falls below the minimum daily balance, your account may not earn dividends. Dividends are calculated by the daily balance method which applies a daily periodic rate to the balance in the account each day.

d. Fees and Charges: The Credit Union may charge you fees for accounts and services provided by the Credit Union. These fees and charges are set forth on the aforementioned Fee Schedule. You agree that the Credit Union may change the Fee Schedule at any time and you will be notified of such changes as required by law.

e. Transaction Limitations:

1. Savings Account:

If you make more than four transfers from your savings account to your checking account or more than three withdrawals from your savings account excluding ATM withdrawals during any calendar month you will be assessed a fee in accordance with the Fee Schedule.

2. Money Market Account/Savings Accounts:

During any calendar month,you may not make more than six withdrawals or transfers to another Credit Union account of yours or to a third party by means of a preauthorized or automatic transfer or telephone order or instruction. A preauthorized transfer includes any arrangement with the Credit Union to pay a third party from the member’s account upon oral or written orders including orders received through the automated clearing house (ACH). No more than three of the six transfers may be made by check, draft, debit card, if applicable, or similar order to a third party. There is no limit on the number of transactions you may make in the following manner: (i) transfers to any loan account with the Credit Union; or (ii) withdrawals (checks mailed directly to you) when such withdrawal is initiated in person, by mail, or at an ATM. If a transfer request would exceed the transfer limitations set forth above in any calendar month, the Credit Union may refuse or reverse the transfer, and your account will be subject to suspension or closure by the Credit Union, and the Credit Union may impose a fee, which is set forth on the Fee Schedule.

f. Features of Share Certificate Accounts: The dividend rate and minimum required to open the account, to avoid the imposition of a fee and to obtain the annual percentage yield disclosed on your share certificate account is listed on the Rate and Fee Schedules and on the Certificate itself. The rate and APY stated in the Rate Schedule are the rate and APY that were offered within the most recent seven calendar days and were accurate as of the date you received the Rate and Fee Schedules. Please call the Credit Union at 800-252-6950, to obtain current rate information. You will be paid this rate until the maturity date of your Certificate. The APY stated assumes that funds will be left in the account until maturity. A penalty may be imposed for withdrawals before maturity. Your Certificate Account will automatically renew unless you notify the Credit Union otherwise. You will be notified of the maturity date within 10 days of that date. You will be notified of any change in terms as required by law.

g. Nature of Dividends: Dividends on accounts other than Share Certificate Accounts are paid from current income and available earnings after required transfers to reserves at the end of the dividend period.

Account Access:

a. Authorized Signature: In order to access any account, the Credit Union must have an authorized signature of yours on a Membership Application. Credit Union 1 is authorized to recognize your signature, but will not be liable for refusing to honor any item or instruction of yours if it believes in good faith that the signature on such item or instruction is not genuine. If you have authorized the use of a facsimile signature, the Credit Union may honor any draft that appears to bear your facsimile signature even if it was made by an unauthorized person. If you give your account number to a third person, you authorize us to honor transactions initiated by the third person even if you did not specifically authorize a particular transaction.

b. ACH & Wire Transfers: You may initiate or receive credits or debits to your account via wire transfer or ACH transfer. You agree that if you receive funds by a wire or ACH transfer, the Credit Union is not required to notify you at the time the funds are received. Instead, the transfer will be shown on your periodic statement. You may initiate a wire transfer either in person or by phone by calling 1-800-252-6950. In some cases, we may require you to come into a branch to initiate the wire transfer in person. The Credit Union may provisionally credit your account for an ACH transfer before it receives final settlement for the transfer. You agree that if the Credit Union does not receive final settlement for an ACH transfer, we may reverse the provisional credit to your account or you will refund the amount to the Credit Union. When you initiate a wire transfer, you may identify either the recipient or any financial institution by name and by account or identifying number. The Credit Union (and other institutions) may rely on the account or other identifying number as the proper identification, even if it identifies a different party or institution. Wire transfers are governed by Federal Reserve Regulation J if the transfer is cleared through the Federal Reserve. ACH transactions are governed by the rules of the National Automated Clearing House Association and both may be subject to Article 4 of the UCC.

c. Examination of Signature: The Credit Union may disregard information on any draft or check other than the signature of the drawer, amount of the item and any magnetic encoded information. You agree the Credit Union does not fail to exercise ordinary care in paying an item solely because its procedures do not provide for sight examination of items.

d. Transactions by Mail: Except as otherwise provided in this Agreement, the Credit Union may permit you to make deposits, transfers, and withdrawals by mail. Transfers and withdrawals by mail will require a signed written request by you. Such transactions will be posted to your account as of the day the transaction is processed at the Credit Union.

e. Transactions via Automatic Teller Machine (ATM): You can request a cash card (debit card) to be used at ATM’s. Transactions through an ATM are governed by Regulation E (Electronic Fund Transfers), which is printed elsewhere in this brochure.

f. Transactions via 1-Touch Access: 1-Touch allows you access to your account(s) 24 hours a day, seven days a week by dialing 800-252-6950 on a touch-tone phone. You must have a personal identification number (P.I.N.) to participate in 1-Touch transactions. You will receive a Personal Identification Number (PIN) with your welcome packet or you may call the credit union for information.

g. Transactions via Personal Computer: You may also access your account via Home Banking on the Internet. To do this you must contact our Member Service Department for an application or receive one online through our Web Site at www.creditunion1.org.

h. Withdrawal Restrictions: The Credit Union is required to permit a withdrawal only if you have sufficient available funds in your account to cover the full amount of the withdrawal or have an established overdraft protection plan. Checks or other transfer or payment orders which are drawn against insufficient available funds will be subject to a service charge, set forth in the Rate and Fee Schedule. If there are sufficient available funds to cover some but not all of your withdrawal orders, the Credit Union may allow those withdrawals for which there are sufficient available funds in any order at the Credit Union’s discretion.

i. Check Printing Information: If you do not order your checks from Credit Union 1 and they are incorrectly printed, we are not liable for any fees that you may incur. Incorrectly printed checks will cause your checks to be returned “unidentified account”. When ordering your checks from a source other than Credit Union 1, you are at risk of having those checks printed with incorrect account information. In addition, checks must be printed in the range of 101- 7999 ONLY. If you are using a source other than Credit Union 1 to print your checks, please contact our Member Service Department to receive the correct account information. The Credit Union may also refuse to allow a withdrawal in other cases; for example: any dispute between the owners about the account (unless a court has ordered the Credit Union to allow the withdrawal); a legal garnishment or attachment is served; the account has been pledged as collateral for a debt to the Credit Union; any required documentation has not been presented; or you fail to repay a Credit Union loan on time. You will be advised of the reasons for refusal if such action is taken. Any garnishment is subject to the Credit Union’s lien or security interest in an account. The Credit Union reserves the right to require members to give notice in writing of any intended withdrawals from any account (except checking) of not fewer than 7 days and up to 60 days in accordance with applicable law before such withdrawal.

Overdrafts:

a. Overdraft Liability: If on any day, the available funds in your checking account are not sufficient to cover checks and other debit transactions posted to your account, those checks and items will be handled in accordance with our overdraft procedures or an overdraft protection plan you have with us. The Credit Union’s determination of an insufficient account balance may be made at any time between presentation and the Credit Union’s midnight deadline with only one review of the account required. The Credit Union has no duty to notify you of an insufficient funds check or item. Your account will then be subject to a charge for the item whether paid or returned as set forth in the Rate and Fee Schedule. Except as otherwise agreed in writing, the Credit Union, by covering one or any overdraft, does not agree to cover overdrafts in the future and may discontinue covering overdrafts at any time.

If the Credit Union pays a draft that would otherwise overdraw your account, you agree to pay the overdraft amount immediately. We reserve the right to pursue collection of previously dishonored items at any time, including giving a payor bank extra time beyond any midnight deadline limits.

b. Overdraft Protection Plan: If we have approved an overdraft protection plan for you, we will honor checks and other transaction items drawn on insufficient funds in your checking account by initiating a transfer of the necessary funds from an overdraft line of credit or another deposit account of yours to your checking account. We will transfer funds to your checking account from an overdraft line of credit or savings account in the order you have directed. Transfers from a share account will be governed by this Agreement. Transfers from an overdraft line of credit account will be governed by your Loan Agreement.

Postdated and Stale Dated Items:

If you date a check later than the date you write it and the item is presented for payment before its date, the Credit Union may return it unpaid or pay the item. The Credit Union will not be responsible for paying the item before the date stated and the Credit Union may charge your account as of the date the Credit Union pays the item. You also agree not to deposit checks, drafts, or other items before they are properly payable.

Stop Payment Orders:

a. Stop Payment Request: You may, upon timely and proper request, ask the Credit Union to stop payment on any check or other payment order drawn upon your checking account including preauthorized debits and ACH payments. You may request a stop payment by telephone, by mail, or by appearing in person. The stop payment will be effective if the Credit Union received the order in time for the Credit Union to act upon the order and you state the number of the account, date and number of the item, its exact amount, and to whom it was issued. If you give the Credit Union incorrect or incomplete information, the Credit Union will not be responsible for failing to stop payment on the item. If the stop payment order is not received in time for the Credit Union to act upon the order, the Credit Union will not be liable to you or to any other party for payment of the item. If we recredit your account after paying a check or other transaction item over a valid and timely stop payment order, you agree to sign a statement describing the dispute with the payee, to transfer to the Credit Union all of your rights against the payee or other holders of the draft, and to assist the Credit Union in legal action taken against the person.

b. Duration of Order: Verbal stop payment orders remain in effect for fourteen (14) days. Written stop payment orders are in effect for six (6) months. Lost and stolen checks will require you to fill out an affidavit and this stop payment order will be in effect indefinitely or until you notify us otherwise.

c. Liability: The Credit Union may charge a fee for each stop payment order requested as set forth in the Rate and Fee Schedule. You may not stop payment on any certified check or draft, cashier’s check or any other check, draft or payment guaranteed by you or the Credit Union. You can stop payment on any other checks or drafts that the Credit Union issues on your behalf at the Credit Union’s sole discretion. You should be aware that while payment of the item may be stopped, you may remain liable to any person including the Credit Union, who is a holder of the item, despite the stop payment order.

Lost Items: The Credit Union, in receiving items from you for withdrawal or deposit, acts only as your agent and reserves the right to reverse the credit for any deposited items or to charge your account for the items should they become lost in the collection process.

Credit Union’s Liability for Errors: If the Credit Union does not properly complete a transaction according to this Agreement, the Credit Union will be liable for your losses or damages not to exceed the amount of the transaction. The Credit Union will not be liable if: (a) through no fault of the Credit Union, your account does not contain enough money to make the transaction; (b) circumstances beyond the Credit Union’s control prevent normal processing of the transaction (i.e. the Credit Union’s computer system is not operating; (c) your loss is caused by the negligence of another financial institution; or (d) the money in your account is subject to legal process or other claim. In no event will the Credit Union be liable for consequential damages.

Credit Union Lien: The Credit Union will have a lien on any of the funds in any account in which you have an ownership interest at the Credit Union, regardless of the source of the funds. The Credit Union may apply the funds on which it has a lien to pay off your indebtedness as a borrower, guarantor, or endorser to the Credit Union. If the Credit Union chooses not to enforce its lien, the Credit Union does not waive its right to enforce the lien at a later time.

Our right to repayment arising under this section does not apply to this account if: (a) it is an Individual Retirement Account or other tax-deferred retirement account, or (b) the debt is created by a consumer credit transaction under a credit card plan (but this does not affect our rights under any consensual security interest), or (c) the debtor’s right of withdrawal arises only in a representative capacity. We will not be liable for the dishonor of any check or draft when the dishonor occurs because we charge and deduct an amount you owe us from your account. You agree to hold us harmless from any claim arising as a result of our exercise of our right to repayment.

Account Information: Upon your request, the Credit Union will inform you of the name and address of each credit reporting agency from which the Credit Union obtains a credit report and to which it reports credit information in connection with your account. The Credit Union agrees not to disclose information to third parties about your account regarding any transaction or balances except when: (1) it is necessary to complete the transaction; (2) the third party seeks to verify the existence or condition of your account in accordance with the Fair Credit Reporting Act or other applicable laws and regulations; (3) such disclosure is in compliance with the law, government agencies or court orders; or (4) you give us your written permission.

Notices:

a. Name or Address Changes: It is your responsibility to notify the Credit Union upon a change of address or change of name. The Credit Union is required to honor items drawn only upon the name as listed on the account and to attempt to communicate with you only at the most recent address you have provided to the Credit Union. The Credit Union may require any notice of change in address to be made in person or in writing and may require any other notice from you to the Credit Union be provided in writing to a branch manager or officer of the Credit Union.

b. Notice of Amendments: Except as otherwise prohibited by applicable law, the terms of this Agreement and all fees and other agreements provided to you in connection with this account are subject to change at any time. If required by law, the Credit Union will notify you of any changes in terms, rates, or fees at such time as is required by law. To the extent permitted by law, amendments will be effective upon posting of the amendments in the branch office or upon delivery of notice to the last address which you have specified for this account. If notice is given by mail, you agree only one notice is necessary in the case of a joint account. You agree that oral instructions are binding and agree to hold the Credit Union harmless from any liability arising as a result of such instructions.

Taxpayer Identification Numbers (TINS) and Backup Withholding: The Credit Union is required by law to withhold and pay to the Internal Revenue Service (IRS) a percentage of payments of interest, dividends and certain other payments under certain conditions. This is called backup withholding. Your failure to furnish a correct taxpayer identification number, social security number or meet other applicable requirements may result in backup withholding as well as civil or criminal penalties. If you refuse to provide your TIN, the Credit Union may suspend your account privileges. The Credit Union provided you with the required TIN and backup withholding certification and instructions at the time you established your account.

Periodic Statements: You will receive a statement for any month that you have activity in your checking account or an electronic transaction on your account. If you do not have a checking account and there are no electronic transactions on your account, you will receive a quarterly statement of your account activity. You are responsible for examining each statement and reporting any irregularities to us. We will not be responsible for any forged, altered, unauthorized or unsigned items drawn on your account if you fail to notify us within sixty (60) days from the time your statement is mailed to you.

You may also choose to have your periodic statement sent to you via your personal computer. If you have elected to receive your periodic statement on line you also elect not to have your periodic statement sent to you through the mail. For checking accounts, you understand and agree that, when paid, your original draft becomes property of the Credit Union and may not be returned to you, but copies may be retained by the processor and made available upon your request for a fee.

Termination of Account: The Credit Union may terminate your account at any time without notice to you or may require you to close your account and apply for a new account if (1) there is a change in owners or authorized signers; (2) there has been a forgery or fraud reported or committed involving your account; (3) there is a dispute as to the ownership of the funds in the account; (4) any account checks are lost or stolen; (5) there are excessive returned unpaid items not covered by an overdraft protection plan; or (6) there has been any misrepresentation or any other abuse of any of your accounts. The Credit Union is not responsible for payment of any check, withdrawal, or other item once your account is terminated.

Inactive and Abandoned Accounts: If there has been no activity on your account and the Credit Union has had no other contact with you for five (5) years as required by the Uniform Unclaimed Property Act, the account will be presumed to be abandoned. Funds in abandoned accounts will be remitted in accordance with state law. Once funds have been turned over to the state, the Credit Union has no further liability to you for such funds, and if you choose to reclaim such funds, you must apply to the appropriate state agency.

Death of a Member: Upon the death of a member, funds in the account shall be payable to joint owners, or others in accordance with applicable state law. The Credit Union may require the survivor or other claimant to the account to produce certain documents before releasing the funds in the account. The Credit Union may continue to honor all transfers, withdrawals, deposits and other transactions on the account until the Credit Union learns of the member’s death and may pay checks or honor other payments or transfers authorized by the deceased member for a period of ten (10) days after receiving that notice. Funds may not be released until any or all outstanding debts of the member are satisfied, including Social Security Reclamation, Pension Reclamation or outstanding loans.

MEMBER EXPULSION POLICY

The Credit Union, in the interest of protecting the assets of the Credit Union and maximizing dividends to members, has adopted the following policy. This policy provides for expulsion of members who cause a loss to the Credit Union. Expulsion may result, upon board action, in the situations described below.

Expulsion Criteria: The following member-caused losses may subject the member to expulsion action by board.

1. Member’s failure to pay amounts due under a loan. “Amounts due” includes, without limitation: principal; interest; fees and charges; financed insurance premiums; collection agency charges or attorney’s fees incurred in collecting amounts due under a note or guarantee, in repossessing and liquidating collateral under a security agreement, or in obtaining a deficiency judgment. A member who files for bankruptcy, but signs an enforceable reaffirmation agreement or otherwise voluntarily makes arrangements to repay all amounts due, will remain eligible for membership.

2. Member’s failure to provide collected funds to cover share account withdrawals or to cover personal share drafts.

3. Member’s failure to provide collected funds to cover Credit Union drafts purchased by the member.

4. Member’s failure to pay fees or charges due the Credit Union for any reason.

5. Notwithstanding the foregoing, a member who has caused a loss (due to bankruptcy), but, in the sole discretion of the management of the Credit Union, establishes that the loss was unavoidable and the result of extraordinary hardship resulting from loss of job, serious family illness, dissolution of marriage, or death in the immediate family will remain eligible for membership.

ELECTRONIC FUND TRANSFER (EFT) YOUR RIGHTS AND RESPONSIBILITIES

This disclosure is designed to give you information concerning your share account(s) that may utilize Electronic Fund Transfers (EFTs). This agreement covers your DEBIT CARD which includes your Visa Check Card (VCC) and your ATM card and PERSONAL IDENTIFICATION NUMBER (PIN). The use of your DEBIT CARD is subject to the following terms and conditions:

Debit Card: The debit card is the property of the Credit Union and is subject to revocation at any time. It must be returned to us by you whenever we request. You agree that the debit card issued to you may be impounded automatically by the Credit Union at any time by an automated terminal. You agree that you will be the only one to use the debit card issued to you and that you will not divulge, give, or make available to any other person, even Credit Union employees, your personal identification number (PIN) either directly or indirectly at any time.

Personal Identification Number (PIN): The Credit Union will issue to you a personal identification number to be used with your debit card. You agree not to write your personal identification number on your debit card and not carry your personal identification number with you at the same time as you carry your debit card. You agree to use your best efforts to commit your personal identification number to memory. Release of your personal identification number to unauthorized parties will result in the revocation of your card privileges.

Authorization: We will treat each transaction made at any automated terminal involving your debit card and your personal identification number as having been made or authorized by you. If the account to which the debit card relates is a joint account, all those transactions will be binding on all parties to the account.

Withdrawals: You agree that you will not use your debit card to withdraw amounts of money in excess of your balance(s). If you have a credit card account and/or a pre-authorized line of credit, you agree not to withdraw amounts of money in excess of your then available pre-authorized credit limit(s), you hereby agree to authorize the Credit Union to debit any of your accounts not so overdrawn and thereby cover your unauthorized withdrawal.

You agree that you will not use your ATM, Debit Card or Credit Card for illegal transactions. You may not use these cards for gambling online.

Receipts: Cash withdrawals made with your debit card shall be evidenced by a document created electronically at the time of the withdrawal and you agree that any such cash withdrawal shall constitute a valid charge against your account.

Deposits: If there is a discrepancy between the amount received at an automated terminal for your deposit and the amount you state as being the amount placed in the deposit envelope, we will credit you with the amount found in the deposit envelope. Recent deposits may not appear in response to your balance inquiry and may not be available for withdrawal through an automated terminal until verification has been complete.

Cancellation: You shall have the right to cancel your debit card and personal identification number at any time upon giving us written notice of such intention and by returning to us your debit card.

Service Fees: By application and/or use of the debit card, you shall be subject to service fees in accordance with the Rate and Fee Schedule adopted by the Credit Union. Fees will not be refunded due to cancellation or other reasons.

Related Accounts: This agreement will be subject to the agreement and rules and regulations covering the account(s) to which your debit card relates.

Continued Effectiveness: If any of the terms of this agreement are determined by a governmental authority to be ineffective, the rest will continue in effect. A waiver of the Credit Union of any of these conditions on any occasions will not constitute a waiver of the same or any other terms and conditions on any other occasion.

Lost/Stolen Card: If you determine your debit card is lost or stolen at any time, report this immediately to the Credit Union and file a police report to record the unlawful use of your card.

Your Liability for Unauthorized Transfers:

Tell us AT ONCE if you believe your Visa check card or your ATM card has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account (plus your maximum overdraft line of credit, if you have one).

If your Visa Check Card or Visa Credit Card is lost or stolen, your liability for unauthorized Visa transactions with the card, other than transactions at an ATM, is zero ($0).

If we determine that you have been grossly negligent or fraudulent in the handling of your account or cards, or if the unauthorized use involves your ATM card or use of your Visa Check Card or Visa Credit Card at an ATM machine, the following will apply: If you believe your cards have been lost or stolen and you tell us within two business days after you learn of the loss or theft, you can lose no more than $50 if someone used your card without your permission. If you do not tell us within two business days after you learn of the loss or theft of your card and we can prove we could have stopped someone from using your card without your permission if you had told us, you could lose as much as $500.

Also, if your statement shows transfers that you did not make, tell us at once. If you do not tell us within 60 days after the statement was mailed to you, you may not get back any money you lost after the 60 days if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason (such as a long trip or a hospital stay) kept you from telling us, we will extend the time periods.

Credit Union Telephone Number and Address: If you believe your debit card and/or personal identification number has been lost or stolen or that someone has transferred or may transfer money from your account(s) without your permission, call the Credit Union at 800-252-6950 or write to:

Credit Union 1
P.O. Box 100
Rantoul, IL 61866

BUSINESS DAYS:

Our business days and hours are:
Monday through Friday 8:30 a.m. to 5:00 p.m.
Holidays are not included.

Our Electronic Fund Transfer Services: We are providing or can provide you with the following electronic fund transfer services.

a. Debit Card: If you have a debit card, you may use it to:

(i) with