MASTER ACCOUNT AGREEMENT
& DISCLOSURE
TRUTH IN SAVINGS
ELECTRONIC FUND TRANSFER
FUNDS AVAILABILITY
The purpose of this booklet is to disclose information, terms, conditions, and the various laws and
regulations relating to your accounts to help you better understand your rights and obligations as a
member of Chevron Federal Credit Union.
This Account Agreements and Disclosures booklet is effective 7/1/2025 and supersedes any
conflicting terms and conditions contained in the any prior versions or amendments. Throughout
this booklet, the booklet is referred to as the “Account Agreement.”
Throughout this Account Agreement, the words “you,” “your,” and “yours” mean each and all of
those (whether one or more persons) who are subject to the Account Agreement as a result of
signing a Membership Application and Agreement and agreeing to the Credit Union’s bylaws
and procedures for each respective account. The words “we,” “us,” or “Credit Union” mean
Chevron Federal Credit Union. The term “savings account” refers to a “share account”,
“checking account” refers to a “share draft account”, and “certificate” refers to a “term share
account”.
You can contact us about your accounts and services by visiting a local CFCU branch, by sending
a secure message through PC Access via Secure Support, or by contacting our Call Center at 800-
232-8101.
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PART I. ARBITRATION AND WAIVER OF CLASS
ACTION
You and the Credit Union agree that we shall attempt to
informally settle any and all disputes arising out of,
affecting, or relating to your accounts or the products or
services the Credit Union has provided, will provide, or has
offered to provide to you, and/or any aspect of your
relationship with the Credit Union (hereafter referred to as
the “Claims”).
Attempts to informally settle the Claims shall
include a written exchange of information describing the
Claims, the basis for the Claims, and the relief sought, and
then an in-person meeting (or a meeting by Zoom or similar
electronic means) to discuss, in good faith, potential
resolution of the Claims.
If the Claims cannot be
resolved informally
, then you agree that any and all Claims
that are threatened, made, filed or initiated after the
Effective Date (defined below) of this Arbitration and Waiver
of Class Action provision (“Arbitration Agreement”), even if
the Claims arise out of, affect or relate to conduct that
occurred prior to the Effective Date, shall, at the election of
either you or us, be resolved by binding arbitration
administered by the American Arbitration Association
(“AAA”) in accordance with its applicable rules and
procedures for consumer disputes (“Rules”), including its
Mass Arbitration Supplementary Rules, whether such
Claims are in contract, tort, statute, or otherwise. The Rules
can be obtained on the AAA website free of charge at
www.adr.org; or a copy of the Rules can be obtained at any
Credit Union branch upon request. Either you or we may
elect to resolve a particular Claim through arbitration, even
if one of us has already initiated litigation in court related to
the Claim by: (a) making written demand for arbitration upon
the other party, (b) initiating arbitration against the other
party, or (c) filing a motion to compel arbitration in court. AS
A RESULT, IF EITHER YOU OR WE ELECT TO RESOLVE
A PARTICULAR CLAIM THROUGH ARBITRATION, YOU
WILL GIVE UP YOUR RIGHT TO GO TO COURT TO
ASSERT OR DEFEND YOUR RIGHTS UNDER THIS
ACCOUNT
AGREEMENT
(EXCEPT
FOR
CLAIMS
BROUGHT INDIVIDUALLY WITHIN SMALL CLAIMS
COURT JURISDICTION, SO LONG AS THE CLAIM
REMAINS IN SMALL CLAIMS COURT). This
Arbitration Agreement shall be interpreted and enforced in
accordance with the Federal Arbitration Act set forth in Title
9 of the U.S. Code to the fullest extent possible,
notwithstanding any state law to the contrary, regardless of
the origin or nature of the Claims at issue. This Arbitration
Agreement does not prevent you from submitting any issue
relating to your accounts for review or consideration by a
federal, state, or local governmental agency or entity, nor
does it prevent such agency or entity from seeking relief on
your behalf.
1.
Selection of Arbitrator:
The Claims shall be resolved
by a single arbitrator. The arbitrator shall be selected in
accordance with the Rules and must have experience in
the types of financial transactions at issue in the Claims.
In the event of a conflict between the Rules and this
Arbitration Agreement, this Arbitration Agreement shall
supersede the conflicting Rules only to the extent of the
inconsistency. If AAA is unavailable to resolve the
Claims, and if you and we do not agree on a substitute
forum, then you can select the forum for the resolution
of the Claims.
2.
Effective Date:
Unless you opt-out in accordance with
the requirements of the RIGHT TO OPT-OUT provision
below,
t
his Arbitration Agreement is effective upon the
later of: (a) the 61st day after we initially provided it to
you; or (b) the 61st day
after we provided you an
amended version of this Arbitration Agreement in
accordance with the AMENDMENT/TERMINATION
provision below. Such effective date of this Arbitration
Agreement is referred to as its
“Effective Date”.
3.
Claims Arising Prior to Effective Date: THIS
ARBITRATION AGREEMENT APPLIES TO ALL
CLAIMS THAT ARE FILED OR INITIATED AFTER THE
EFFECTIVE DATE, EVEN IF THE CLAIM ARISES OUT
OF, AFFECTS, OR RELATES TO CONDUCT THAT
OCCURRED PRIOR TO THE EFFECTIVE DATE
. If a
Claim is
filed or initiated prior to the Effective Date, this Arbitration
Agreement will not apply to such Claim.
4.
Arbitration Proceedings:
The arbitration shall be
conducted within 50 miles of your residence at the time
the arbitration is commenced. Any claims and defenses
that can be asserted in court can be asserted through
arbitration. The arbitrator shall be entitled to award the
same remedies that a court can award, including public
injunctive relief under the California Unfair Competition
Law and Consumer Legal Remedies Act. Discovery
shall be available for non-privileged information to the
fullest extent permitted under the Rules. The Arbitrator’s
award can be entered as a judgment in court. Except as
provided in applicable statutes, the arbitrator’s award is
not subject to review by the court, and it cannot be
appealed. The Credit Union shall pay for any filing,
administration, and arbitrator fees imposed on you by
the AAA. However, you will be responsible for your own
attorney’s fees, unless you prevail on your Claim in the
arbitration, in which case, we will pay your attorney’s
fees. However, if the Credit Union prevails, then you will
not be required to pay our attorneys’ fees and cost.
Any determination as to whether this Arbitration
Agreement is valid or enforceable in part or in its entirety
will be made solely by the arbitrator, including without
limitation any issues relating to whether a Claim is
subject
to
arbitration;
provided,
however,
the
enforceability of the Class Action Waiver set forth below
shall be determined by the Court.
5.
Class Action Waiver:
ANY ARBITRATION OF A
CLAIM WILL BE ON AN INDIVIDUAL BASIS. YOU
UNDERSTAND AND AGREE THAT YOU ARE
WAIVING THE RIGHT TO PARTICIPATE AS A CLASS
REPRESENTATIVE OR CLASS MEMBER IN A CLASS
ACTION LAWSUIT.
6.
Severability:
In the event that the Class Action Waiver
in this Arbitration Agreement is found to be
unenforceable for any reason, the remainder of this
Arbitration Agreement shall also be unenforceable. If
any provision in this Arbitration Agreement, other than
the Class Action Waiver, is found to be unenforceable,
the remaining provisions will remain fully enforceable.
7.
Survival:
This Arbitration Agreement will survive
termination of the Account Agreement.
8.
Right to Opt-Out:
You have the right to opt-out of this
Arbitration Agreement, provided you notify the Credit
Union of your intent to do so within sixty (60) days after
it is provided to you. Your opt-out is only effective if you
notify the Credit Union in writing at: Chevron Federal
Credit Union Attn: Arbitration Opt-Out, c/o Operation
Services, P.O. Box 4107, Concord, CA 94524 within
such sixty
(60) day time period. If you fail to opt-out within this sixty
3
(60) day time, you will be deemed to have consented
to the resolution of your Claims through binding
arbitration. In the event you opt-out, it shall not affect
other terms and conditions of your Account Agreement
or your relationship with the Credit Union.
9.
Amendment/Termination:
We reserve the right to
amend or terminate this Arbitration Agreement,
provided that we notify you in writing at least sixty (60)
days prior to such amendment or termination taking
effect. Notwithstanding anything in the Account
Agreement to the contrary, any amendment or
termination of this Arbitration Agreement shall not
apply to known Claims that arise out of, affect or relate
to conduct that occurred prior to the effective date of
such amendment or termination.
10.
Inapplicable to Certain Borrowers:
This Arbitration
Agreement does not apply to loans made to “covered
borrowers”, including where a “covered borrower” is a
co-borrower, under the Military Lending Act and to real
estate-secured loans.
FOR MORE DETAILS or if you have questions, you
may call us or visit a branch. If you have questions
about AAA procedures, you should check AAA’s
website, www.adr.org.
PART II – SHARE ACCOUNT AGREEMENT AND
TRUTH IN SAVINGS DISCLOSURE
Section 1. General Terms and Conditions Applicable to
All Accounts Opening and Maintaining Accounts
1.
You must be and remain a member in good standing
to maintain any account.
2.
In order to become a member and maintain
membership, you must maintain a minimum of $25 in
a Primary Savings Account; to
maintain a joint membership account, a $50 minimum
applies. A monthly Low Balance fee will be charged if
your Primary Savings Account balance falls below $25
(or $50 for joint membership accounts) at any time. If
you fail to restore the minimum balance to your Primary
Savings Account within six (6) months of reduction
below the required minimum, your membership will
terminate. In addition, we can also restrict or discontinue
services provided to you any or all services provided to
you during any period you fail to maintain the required
minimum balance for membership.
3.
As required by law, the identity of each person seeking
to open an account (including joint owners) must be
verified, and we must maintain records of the
information used to verify each person’s identity. The
law requires that we also verify the identities of certain
beneficial owners or controlling parties for accounts; you
agree to provide us with any information requested
regarding beneficial owners of accounts and certify their
accuracy upon request by us. We may deny
membership, decline to open an account, or close an
account if we are prohibited from doing so under
applicable law or if we are unable to satisfactorily verify
any account owner or beneficiary’s identity.
4.
In addition to providing us with your name, residential
address, phone number and date of birth, we may
require you to provide us with current government
issued picture identification and a Social Security
Number (SSN) or Employer Identification Number (EIN)
(generically referred to as a Taxpayer Identification
Number or TIN). We may further require you to certify
(confirm) for IRS reporting purposes that the SSN or EIN
matches the name and address, and indicate whether
you are currently subject to backup withholding and
whether you are a U.S. citizen or U.S. person. If the IRS
indicates that there is a problem with the name and
number provided by you for the account or otherwise
notifies us, your account may become subject to backup
withholding, which will require us to withhold and pay a
portion of the dividends, interest or other payment to the
IRS. Upon the death of the primary owner, we must be
provided with the estate’s or successor’s TIN or we may
either refuse to pay dividends earned on the account
since the date of the death or withhold a portion of the
dividends that have been earned on the account since
the date of the death.
5.
Our relationship with you concerning your account is that
of debtor and creditor; no fiduciary, quasi-fiduciary, or
special relationship exists between us and you.
6.
Except as otherwise provided herein, we reserve the
right to change any provision of or establish new
provisions to this Account Agreement upon thirty (30)
days written notice
to the extent required by applicable
law. This includes, without limitation, making changes to
your accounts and services, the related fees, rates,
balance and rate computation methods, as well as
discontinuing or replacing such accounts and services at
our discretion, and making changes to further clarify the
terms of our products and services. We also reserve the
right to amend other forms and/or disclosures provided
to you in connection with your account
.
Further, we may, from time to time, revise or update the
electronic services, electronic programs, and/or related
material(s) rendering prior provisions of this Account
Agreement regarding EFTs obsolete. Consequently, we
reserve the right to terminate any such programs,
electronic services, and/or related material(s) and limit
access to our more recent versions and updates.
7.
We reserve the right to refuse to open any account, to
provide any service in connection with an account, or to
accept additional deposits to an existing account.
8.
All accounts are subject to our Fee Schedule, which
accompanies
this
Account
Agreement
and
is
incorporated by this reference. We will debit such
charges against any account you own (including
accounts on which you are a joint owner) except your IRA
without prior notice to you. Only fees related to an IRA
will be deducted from an IRA. If sufficient funds are not
available, the charges are payable on demand and, for
checking accounts, will be treated as an overdraft.
9.
Membership Promotion
: We may offer certain
promotional payments of $10 or more in value, including
gifts or awards, when you open, maintain, or renew
certain accounts with us, or if you increase your account
balance. Any such promotion will be subject to
additional terms and conditions provided to you, and
such promotion will not apply to all accounts. You are
responsible for all tax consequences of any promotional
payments, gifts, or awards, and you acknowledge we
will report any such payments, gifts, or awards to the
appropriate state or federal agencies as required by
applicable law.
Operation of Accounts
10.
Member accounts in this Credit Union are federally
insured by the National Credit Union Share Insurance
Fund.
11.
You may be required to request changes to your
accounts in writing. We are not required to act upon
4
instructions received by facsimile, and we have the
right to require additional information from you before
we act on any request. We shall have no liability or
responsibility to you or to your heirs, executors,
assignees, or representatives when acting upon the
reasonable interpretation of your requests.
12.
We may refuse to follow any of your instructions,
accept any deposit, or process any transaction, that in
our sole judgment are illegal, fraudulent, inconsistent
with our policies (or those of any of our third-party
processors) or would expose us to potential liability.
Alternatively, we may require adequate security or
invoke other security measures to protect us from all
losses and expenses incurred if we follow your
instructions. You agree to reimburse us for any
damages, losses, liabilities, expenses, and fees
(including, but not limited to, reasonable attorneys’
fees) that we incur in connection with your account if
we take an action in accordance with your, or what
purports to be your, oral, written, or electronic
instructions.
13.
There are many reasons why we may decline or
prevent transactions to or from your account, but we
generally do it to protect you or us, or to comply with
legal requirements. We may decline or prevent any or
all transactions to or from your account. We may
refuse, freeze, reverse or delay any specific
withdrawal, payment or transfer of funds to or from your
account, or we may place an administrative hold on
funds in your account pending investigation, including
one or more of the following circumstances: (1) your
account is involved in any legal or administrative
proceeding; (2) we receive conflicting information or
instructions regarding account ownership, control or
activity; (3) we suspect that you may be the victim of
fraud, scam or financial exploitation, even though you
have authorized the transaction(s); (4) we suspect that
any transaction may involve illegal activity or may be
fraudulent; (5) we are complying in our sole judgement,
with any federal or state law or regulation, including
federal asset control and sanction rules, and anti-
money laundering rules, and/or with our policies
adopted to ensure that we comply with those laws; or
(6) we reasonably believe that doing so is necessary to
avoid a loss or reduce risk to us. We may also limit
cash deposits to, or withdrawals from, any of your
accounts, or who may make deposits, in order to
reduce risk and/or allow us to comply with applicable
law. We will have no liability for any action we take
under this section.
14.
If there is a dispute between any person and/or private
or government organization over your account or the
funds in any of your accounts, or we are uncertain who
is entitled to access an account or the funds in any of
your accounts, including, but not limited to, disputes
between or relating to joint owners, payees, trust
account beneficiaries, business owners, association or
business directors, members, or trustees, or a payable
on death account, you agree that we may, without
liability to you or your beneficiaries and in our sole and
absolute discretion, take one or more of the following
actions: (1) restrict the account and deny access to all
until such time as the conflicting claims are resolved to
our satisfaction; (2) close the account and send the
funds to the owner or owners of the account, according
to our records, at the statement mailing address;
(3) interplead all or any portion of the funds from an
account into an appropriate court for resolution; or (4)
restrict access to the account until our receipt of either
written instructions as to the distribution of funds signed
by all affected parties or an order from a court of proper
jurisdiction authorizing or directing us to distribute the
funds. We may charge your account for expenses
(including attorneys’ fees and expenses) and fees we
incur.
15.
We may recognize the signature of anyone who signed
a Membership Application and Agreement (includes
Transfers to Minors Application, or Application and
Agreement for Credit Union Accounts in the name of
Trustees) as authorized to transact business on that
account. Any payment made on your account by us in
good faith and in reliance on the terms and conditions of
this
Account
Agreement
and/or
a
Membership
Application and Agreement will be valid and discharge us
from liability. Without limitation to the foregoing, we may
honor checks drawn against your account by authorized
signers, even if the checks are made payable to them, to
cash or for deposit to their personal accounts. We have
no duty to investigate or question withdrawals or the
application of funds. In addition, if we receive written
notice from any account owner that withdrawals, in
accordance with the terms of the account, should not be
permitted, we may refuse, without liability, to pay any
sums on deposit pending determination of the rights of
the owners. Such written notice(s) will become effective
only upon receipt and after we have had a reasonable
opportunity to act thereon; however, our release of
amounts to an account owner in contravention to any
instructions from another account owner shall not in
result in liability for us.
16.
You may conduct certain transactions on your Credit
Union accounts at CO-OP Shared Branch locations,
subject to the CO-OP Shared Branch operating
procedures, policies, and fees, as well as your Credit
Union account terms and conditions. Any deposits are
subject to verification through the CO-OP Shared Branch
location accepting the deposit, and the Credit Union also
reserves the right to limit access to deposits and
withdrawals as well as other services generally available
at CO-OP Shared Branch locations. Transactions
conducted at CO-OP Shared Branch locations may also
be subject to a CO-OP Shared Branch fee disclosed to
you prior to charging a fee.
17.
We may, without prior notice and when permitted by law,
exercise our right of setoff against any of the funds in any
of your accounts against any debt (whether or not
matured, due, payable, in default or accelerated) or
obligation that you owe us, now or in the future, by any
of you having the right of withdrawal.
This right of setoff does not apply if prohibited by law. For
example, we will not exercise our right of setoff: (1)
against an Individual Retirement Account (IRA) or similar
tax-deferred account, or (2) if 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). We will not be liable for the dishonor of
any check when the dishonor occurs because we set off
a debt against your account. You agree to indemnify and
hold us harmless from and against any and all claims,
damages, losses, liabilities, expenses, and fees
(including reasonable attorneys’ fees) arising out of or
relating to the exercise of our right of setoff.
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We will also have the right to place an administrative
hold on such funds pending setoff. We may apply all
funds in a joint account to satisfy a debt owed to us by
any one or more of the joint owners. In addition, we may,
after the death of any account owner, setoff against a
joint account or an account with payable-on-death
beneficiaries the debts and obligations of the deceased
account owner, up to the full amount in the account at
the time of the account owner’s death.
Moreover, you knowingly consent and expressly agree
that the application of an offset of funds in any account
includes the offset of government benefits (such as
Social Security and other public benefit funds)
deposited in your account for deposit-account-related
disputes to the maximum extent permitted by applicable
state and federal law.
Notifications and Records
18.
You can contact us about your accounts and services
by writing to us at Chevron Federal Credit Union, P.O.
Box 4107, Concord, CA 94524, by visiting a local
CFCU branch, by sending a secure message through
PC Access via Secure Support, or by contacting our
Call Center at 800-232-8101.
If your comment or concern is not resolved by contacting
the Credit Union as indicated above, you can contact
one of the following:
•
Chairperson of the Supervisory Committee,
Chevron Federal Credit Union, P.O. Box 4107,
Concord, CA 94524
•
National Credit Union Administration Western
Region, 1230 West Washington St., Ste 301,
Tempe, AZ 85281;
602-302-6000
19.
Except as expressly provided otherwise in this Account
Agreement, we will mail, send electronically, or
otherwise make available to you, your periodic
statements, notices and other information regarding
your
account
(collectively
“account-related
information”) to the postal or electronic address of the
owner as reflected in our records for your account. If
there is more than one owner on your account, we may
send account-related information to any one of them. If
your account is in a combined statement, your
statement will be sent to the address associated with
the savings account in the combined statement. Mailed
account-related information will be deemed to have
been delivered the second business day following the
day it was mailed. Account-related information made
available electronically will be deemed to have been
delivered when we make it available to you.
You will exercise reasonable care and promptness in
examining your statements. You must promptly notify
us of, and reimburse us for, any erroneous credit to
your account. Within sixty (60) days after we mail or
otherwise make statements available to you, you must
notify us of any claim for credit or refund due to an
unauthorized transaction (unless the unauthorized
transaction is the result of an electronic fund transfer,
then the provisions of the Electronic Services
Agreement and Disclosure included at Part V of this
Account Agreement will apply). For purposes of this
Account Agreement, an unauthorized transaction is a
transaction that was not authorized by you. However,
if you provided someone authorization to transact on
your account, any transaction by that person is
considered authorized even if he or she exceeded any
authority you provided. An unauthorized transaction
includes but is not limited to an erroneous or
unauthorized debit. It might include a missing signature,
an unauthorized signature, an alteration, or otherwise a
transaction that was not authorized by you or someone
you authorized. If you fail to uphold these duties, you
understand and agree that you are precluded from
asserting the error or unauthorized payment against us
if: (1) we suffer a loss on the item because of your
failure; or (2) we pay on another item presented by the
same wrongdoer if the payment was made before you
properly notified us.
If you submit a claim for a refund or credit related to a
transaction you consider unauthorized under this
paragraph, you agree to cooperate with us in the
investigation of the claim, including notifying law
enforcement and providing us a signed affidavit in a
form acceptable to us, as well as such other information
we reasonably request.
You agree that you will not waive any rights you have to
recover your loss against anyone who is obligated to
repay, insure, or otherwise reimburse you for your loss.
You will either pursue recovery of your loss from such
third party(ies) or, at our sole option, assign your rights
to pursue recovery to us. Any liability we may have for
your loss will be reduced by the amount you recover or
are entitled to recover from such third party(ies).
20.
We may offer you services appropriate to your account
relationship to protect the security of your account and
help identify and limit fraudulent or other unauthorized
transactions. For example, we may offer positive pay or
other commercially reasonable security procedures, and
if you reject services that we offer to protect your account
from fraudulent or unauthorized transactions, you will be
responsible
for
any
fraudulent
or
unauthorized
transactions that could have been prevented by the
services we offered, unless we acted in bad faith or to
the extent our negligence contributed to the loss. This
paragraph will not apply to consumer electronic fund
transfers subject to federal Regulation E.
21.
In order for us to service your account or to collect any
amounts you owe, you agree that we may from time to
time make calls and/or send text messages to you at any
telephone number(s) associated with your account,
including wireless telephone numbers that could result in
charges to you. The manner in which these calls or text
messages are made to you may include, but is not limited
to, the use of prerecorded/artificial voice messages
and/or an automatic telephone dialing system. You
further agree that, in order for us to service your account
or to collect any amounts you owe, we may send e-mails
to you at any e-mail address you provide to us. You may
revoke this consent at any time by notifying us.
22.
Unless otherwise prohibited by the laws governing your
account, if two or more account-related information
documents are returned, or, in the case of online
statement email notifications the email notice is returned
undeliverable we may classify your account as “inactive.”
This means we may discontinue sending and may
destroy account- related information sent to you until you
provide a valid postal or electronic address to us.
23.
Any written notice you give to us is effective when it is
actually received by us. Any written notice we give to you
is effective on the date we deposit such notice in the U.S.
Mail, postage prepaid, and addressed to you at your
statement mailing address, or, if you have agreed to
6
receive notices from us in an electronic format, any
notice we give to you is effective on the date we make
the notice available to you in electronic format. Notice to
any one account owner is considered notice to all
owners of the account.
24.
You agree to notify us promptly of any change of
address. In the event that you fail to do this, a fee may
be assessed to your account for the actual cost of a
necessary locator service paid to a person or business
normally engaged in providing such service and
incurred in determining your address. This fee will be
set forth in the Fee Schedule. In addition, items returned
to us because of an incorrect address may be subject to
a fee.
25.
You agree to notify us immediately of the death or court
declared incompetence of any owner of your account.
You agree to inform each owner of your account of the
obligation to notify us of such an event as well. If you die
or are declared legally incompetent, we can continue to
accept and collect items deposited to your account until
we know of your death or adjudication of incompetency
and have a reasonable opportunity to act.
26.
You understand and agree that we must comply if we
are served with any facially valid notice of garnishment
or of attachment, tax levy (including without limitation,
any “notice of levy”), withholding order, injunction,
restraining order, search warrant, government agency
request for information, forfeiture, seizure, subpoena, or
other legal process relating to your account that we
know or otherwise believe in good faith is valid, whether
served in person, by mail, or by electronic notification,
at any Credit Union branch. You direct us not to contest
any such facially valid notice of legal process and
understand that we are under no obligation to notify you
of the legal process and will not notify you if prohibited
by law. You agree that you must contest any such legal
process or our compliance with it directly with the third
party issuing the legal process, and not with us. We may
charge a fee and we may assess this fee against any
account you maintain with us, including the account that
is the subject of the legal process. You understand and
agree that if a subpoena or legal process requires us to
release information about an owner on an account, we
must comply with such request and the information
released pursuant to such subpoena or legal process
may include information about other owners on the
account, even if their information was not expressly
requested by the subpoena or legal process. If we are
not
fully
reimbursed
for
our
record
research,
photocopying, and handling costs by the party that
served any legal process, we may charge such costs to
your account. You understand and agree that funds we
hold or set aside in response to legal process will not
earn dividends. You agree to indemnify, defend, and
hold us harmless from all actions, claims, liabilities,
losses, costs, and damages associated with our
compliance with any process that we know or otherwise
believe in good faith to be valid.
27.
You authorize us to gather whatever credit, checking
account and employment information we consider
appropriate from time to time, including obtaining your
credit report for legitimate business purposes. You
understand that this will assist us, for example, in
determining your initial and ongoing eligibility for your
account and/ or in connection with making future credit
opportunities available to you. You authorize us to give
information concerning our experiences with you to
others.
28.
You acknowledge and agree that we may, at our option,
create and retain electronic copies of original account
records and any other records, and thereafter dispose
of the originals. You further agree that electronically
scanned and stored images of records will have the
same effect as the original records.
29.
We agree to retain and furnish to you, if requested,
photocopies of certain records pertaining to your
account and that these records will be available to you
for the time period required by law. You agree to pay
applicable fees.
30.
We will maintain the confidentiality and privacy of your
account information in accordance with our privacy
policy. We may treat all or any joint account owners, pay
on death beneficiaries after the death of all account
owners, successor trustees, or administrator of the
estate of an individual who died while an account owner
as an Owner for the purposes for accessing historical
information (including statements and transaction
information) about your accounts. We will disclose
information to third parties about your account or
transfers you make in the following circumstances:
a.
When it is necessary to complete a transaction,
including an electronic transaction; or
b.
In order to verify the existence and condition of your
account for a third party, such as a credit bureau or
merchant; or
c.
In order to comply with a government agency, court
order, or any legal process;
d.
If you give us permission in writing; or
e.
As otherwise stated in our privacy policy.
Closing Accounts, Disputes, and Restrictions on
Services
31.
We or you may close any of your account(s) at any time.
We reserve the right to require written verification of a
request to close an account. If an account is closed, we
may send the collected balance on deposit in your
account less any fees, claims, setoffs, or other amounts
you are responsible for, by regular mail to your most
recent address shown in our records. Items presented
for payment after the account is closed may be
dishonored. We 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 your account; (4) any checks are lost or stolen;
or (5) we deem it necessary in order to prevent a loss to
us.
32.
You understand and agree that we may terminate
account products at our option without written notice to
you. We may also suspend offering account products
from time to time at our discretion without notice to you.
33.
You agree that you will not use your accounts or our
services to conduct any illegal transaction or engage in
any activity which is illegal under local, state, or federal
law. Restricted transactions are prohibited from being
processed through your account or banking relationship
with us. “Restricted transactions” are transactions
involving the knowing transmittal or receipt of credit,
funds, checks, instruments or other proceeds to or from
another person engaged in the business of wagering or
betting in connection with unlawful Internet gambling.
7
You agree that you will not use our services to
manipulate our or other institutions’ accounts or rewards
programs, or the financial system in general. Examples
of abuse of accounts and services or manipulation of
accounts includes, but is not limited to, points schemes,
loan kiting, check kiting, data manipulation, check
alteration, submission of false information, or any
behavior that does not have a direct consumer or
household purpose.
You agree that violations of other agreements with us or
related to us will also be a violation of this agreement.
This includes loan documents with us, and any other
agreement with us, including but not limited to electronic
services, web services, or other agreements for
services. You further agree that violation of insurance
agreements or investment agreements offered through
us, our affiliates, or through referrals from us are also
violations of this agreement.
34.
You understand and agree that we may limit your
access to member services and products, or take other
actions provided in Part VII.
Additional General Terms
35.
You agree that your telephone and electronic
communications with us may be monitored and
recorded to improve member service and security.
36.
You understand that you may elect from time to time to
use Credit Union or other parties’ social media tools and
sources; that there is no claim of privacy or privilege
regarding information you share or information
discernible from such use or sharing; and the use of
such information by us does not violate your privacy or
other rights.
37.
Our delay in enforcing any of the terms and conditions
of this Account Agreement will not prohibit us from
enforcing such terms and conditions at a later date. Any
waiver by us shall not be deemed a waiver of other
rights or of the same rights at another time. You hereby
waive diligence, demand, presentment, protest, and
notice of every kind, except as set forth in this Account
Agreement.
38.
If a disaster occurs there may be an unforeseen delay
in our ability to make funds available and to process
deposits or otherwise perform under this Account
Agreement. In addition to natural disasters, the failure
of communication or computer systems can also cause
unforeseen delays.
39.
An action or proceeding by you to enforce an obligation,
duty, or right arising under this Account Agreement or
by law with respect to your account must be
commenced within one (1) year after the cause of action
accrues. If you have failed to examine your statement
and report any unauthorized item one (1) year or more
after your statement or the item has been made
available to you, you cannot recover from us even if we
failed to exercise ordinary care in paying the item.
40.
Except as otherwise provided above in Part 1, if any of
the provisions of this Account Agreement, are
determined to be void or invalid, the remainder of the
Account Agreement shall remain in full force and in
effect.
41.
You agree to pay our costs of collection, including
reasonable attorneys’ fees and court costs, with regard
to any check drawn on us by you or any item you deposit
with us that causes us to incur a loss.
42.
You acknowledge that we may be obligated to
report cases of actual or suspected financial abuse of
elders or dependent adults. If we suspect such financial
abuse, you understand and agree that, in addition to
reporting such abuse as may be required by applicable
law, we have the right to restrict access to the account,
refuse to complete transactions on the account, or to
take any other action(s) that we deem appropriate under
the circumstances. You agree to indemnify and hold us
harmless from and against any and all claims, damages,
losses, liabilities, expenses, and fees (including
reasonable attorneys’ fees), arising out of or related to
any action or inaction related to the matters described
in this paragraph.
43.
You agree to indemnify, defend, and hold the Credit
Union, its affiliates, officers, directors, employees,
consultants, agents, service providers, and licensors,
harmless from and against any and all claims, demands,
actions, costs, losses, liability, expenses and fees
(including, without limitation reasonable attorneys’ fees,
collection costs, skip-tracing fees, and outside services
fees) which we incur by acting in accordance with this
Account Agreement or as a result of your failure to abide
by its terms, including but not limited to those arising
from:
a.
A third-party claim, action, or allegation of
infringement, misuse, or misappropriation based on
information, data, files, or other materials submitted
by you to us;
b.
Any fraud, manipulation, or other breach of this
Account Agreement by you;
c.
Your violation of any law or rights of a third party; or
d.
Your provision of access to your account(s),
services, or electronic services to any third party.
44.
We reserve the right, at our own expense, to assume
the exclusive defense and control of any matter
otherwise subject to indemnification by you, in which
event you will cooperate with us in asserting any
available defenses. You will not settle any action or
claims on our behalf without our prior written consent.
This indemnification is provided without regard to
whether the Credit Union’s claim for indemnification is
due to the use of accounts or the electronic services by
you or a joint account owner or other authorized person.
45.
YOU UNDERSTAND AND AGREE THAT WE WILL
NOT
BE
LIABLE
FOR
ANY
INCIDENTAL,
CONSEQUENTIAL,
SPECIAL,
INDIRECT
OR
PUNITIVE DAMAGES IN ANY CLAIM OR ACTION
ARISING FROM THIS ACCOUNT AGREEMENT,
REGARDLESS OF WHETHER YOU HAVE ADVISED
US OF THE POSSIBILITY THAT YOU MAY INCUR
SUCH DAMAGES.
46.
You understand and agree that accounts and electronic
services are provided “as-is.” Except as otherwise
provided in this Account Agreement or as required by
law, the Credit Union assumes no responsibility for the
timeliness, deletion, mis-delivery, or failure to store any
communications, personalization, or electronic settings.
You understand and expressly agree that the use of
electronic services is at your sole risk, and that any
material and/or data downloaded or otherwise obtained
through the use of electronic services is downloaded or
obtained at your own discretion and risk, and that you
will be solely responsible for any damages, including
without limitation damage to your computer system or
mobile device or loss of data that results from the
download or the obtaining of such material and/or data.
47.
Except as expressly set forth in this Account
8
Agreement, the Credit Union disclaims all warranties of
any kind, express or implied, including without
limitation any warranty of merchantability, fitness for a
particular purpose, or non-infringement of intellectual
property or third-party rights, regarding its services,
including electronic services. The Credit Union makes
no warranty or representation regarding the results that
may be obtained from the use of electronic services,
the accuracy or reliability of any information obtained
through electronic services, the accuracy of any
information retrieved by you from the accounts or that
the
electronic
services
will
meet
any
user’s
requirements, be uninterrupted, timely, secure, or error
free.
48.
In the event of wrongful dishonor that occurs by mistake,
our 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.
49.
You may not assign this Account Agreement to any
other party. The Credit Union may assign this Account
Agreement at any time in its sole discretion. The Credit
Union may also assign or delegate any of its rights and
responsibilities under this Account Agreement to
independent contractors or other third parties.
50.
Headings
in
this
Account
Agreement
are
for
convenience only and will not control or affect the
meaning or construction of any of the provisions of this
Account Agreement.
51.
This Account Agreement as well as all of your 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 and to
the extent that California law is not inconsistent with
federal law.
52.
State
law
establishes
procedures
under
which
unclaimed property must be surrendered to the state. In
the State of California, funds in your account are
considered unclaimed if a period of three (3) years has
elapsed since the last time you:
a.
Increased or decreased the amount of funds on
deposit with us or presented an appropriate record
for crediting of dividends or cashed a dividend check
from any of your accounts with us; or
b.
Corresponded in writing or electronically with us
concerning the funds on deposit; or
c.
Otherwise indicated an interest in the funds on
deposit as evidenced by a memorandum on file with
us.
The funds in your deposit account will not be
surrendered to the state, however, if, during the
previous three (3) years, you have owned another
deposit account (or individual retirement or similar
account) with us and, with respect to that deposit
account, you have done any of the acts described in
paragraphs (a), (b), or (c) above (or, with respect to an
individual retirement or similar account, you have
increased or decreased the principal, accepted
payment of principal or income, or corresponded
electronically or in writing concerning the property or
otherwise indicated an interest), and, with regard to the
funds in the deposit account that would otherwise be
surrendered to the state, we have “communicated” (i.e.,
sent account statements or statements of interest paid
for federal and state income tax purposes) electronically
or in writing with you at the address to which
communications regarding the other deposit account are
regularly sent.
We may charge a fee for mailing you a notice regarding
your unclaimed property. To recover funds turned over to
the state, you must file a claim with the state. Once funds
are surrendered to the state, we no longer have any
liability or responsibility with respect to the funds.
53.
We may collect certain information from you in order to
verify your identity, including, but not limited to, biometric
information and/or images of your government-issued
identification card. We may maintain the information we
collect (for example, an image of your government-
issued ID card with your ID/DL number, name, address,
and date of birth) in a database for the purpose of
verifying your identity for future transactions or
services. You agree that we may maintain the
information we collect in a database for this purpose.
Section
2.
General
Terms
Regarding
Account
Ownership, Agents, and Beneficiary Designation for All
Accounts
1.
These rules apply to your accounts depending on the
form of
ownership and beneficiary designation, if any, specified
on the account records. We reserve the right to refuse
some forms of ownership on any or all of our accounts.
We may also refuse to open an account or add an
additional owner or beneficiary for any reason, or
otherwise refuse to do business with an individual. We
make no representations as to the appropriateness or
effect of the ownership and beneficiary designation,
except as they determine to whom we pay the account
funds. You may open an account either by yourself,
referred to as an “individual account,” or with another
person or persons, referred to as a “multiple-party
account” or a “joint account.” For purposes of this
Agreement, we use the term “joint account.”
2.
We may rely solely on our records to determine the form
of ownership of your account. We may presume that any
person named in addition to you in our records for your
account owns the funds in your account with you as a
joint owner, unless our records indicate that the person
has some other relationship to the account. Ownership
for all accounts will be established and determined by
the
most
recent
Membership
Application
and
Agreement or other document(s) evidencing such
account(s). A different form of ownership may be
established
by
executing
a
new
Membership
Application and Agreement and a new account number
may be assigned.
3.
If you want to change your account in any way, you must
properly complete additional forms provided by us,
which shall not be effective until delivered to and
accepted by us. We are authorized to rely solely on the
documentation we have in our possession. On behalf of
yourself, your beneficiaries, and your heirs, you hereby
agree to indemnify us and hold us harmless from any
and
all
liability
upon
our
reliance
on
such
documentation.
4.
The word “owner(s)” on a Membership Application and
Agreement or in this Account Agreement 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 a joint account.
5.
Individual Account:
An individual account is an
account owned by you alone, which you as the account
9
owner use during your lifetime.
6.
Joint Account:
A joint account is an account owned
by two or more persons. All joint owners agree with
each other and with us 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 will be
owned by all account owner(s) jointly and equally
regardless of their net contributions with a right of
survivorship and will be subject to withdrawal or receipt
by any of the account owner(s) or the survivor(s) of any
of the account owner(s). A right of survivorship arising
from the express terms of a joint account cannot be
changed by a will. We 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.
Being a joint owner of a member’s account does not
constitute Credit Union membership for the joint owner.
Joint owners may be non-members. However, any
non-member joint owner who uses an account,
requests or uses a service and signs a Membership
Application and Agreement, agrees to the terms,
responsibilities and accompanying liabilities of this
Account Agreement.
Unless otherwise agreed in writing between you and
us, each joint owner, without the consent of any other
joint owner, may, and hereby is authorized by every
other joint owner, to conduct any transaction permitted
under this Agreement, including without limitation: (1)
to withdraw all or any part of the account funds; (2) to
pledge the account funds as collateral to us for any
obligation, whether that of one or more joint owners; (3)
to endorse and deposit checks and other items payable
to any joint owner; (4) to give stop payment orders on
any check or item, whether drawn by that joint owner,
or not; (5) to consent to or revoke consent to payment
of service charges on overdrafts that result from ATM
transactions or one-time debit card transactions under
the Courtesy Pay Service; and (6) to close the account,
with the disbursement of account proceeds as
instructed by the joint owner. While any owner may
change, add or close a joint account and/or a service
acting alone, we may require all joint owners to consent
in writing to the addition or removal of any owner to or
from the account. All owners agree that we have no
duty to notify the owners of the account of any
transaction, change, addition or closure of an account
or service by any owner acting alone.
All account owners, jointly and severally, are liable for
all transactions, changes, additions or closure of an
account or service, and for any
charges, fees, losses or liabilities incurred for any
transaction, change, addition or closure of an account
or service regardless of which owner conducted or
benefited from the transaction, change, addition or
closure. If any owner owes us money for any reason, we
may enforce our right of setoff against all funds in any
account on which that person is an owner, regardless of
which owner deposited the funds in the account.
7.
Payable-on-Death Designation: A payable-on-death
(POD) account designation is an instruction to the Credit
Union that an account so designated is payable to the
owner or owners during their lifetime, and upon the
death of the last account owner, payable first to us to
the extent of any outstanding matured or unmatured
debts owed to us by you, and second, to your designated
POD payee(s). If the account is a joint account, all sums
are payable to one or more account owner(s) during their
lives and on the death of all of them, first to us to the
extent of any outstanding matured or unmatured debts
owed to us by any of you, and second, to one or more
POD payees then surviving. Accounts payable to more
than one surviving beneficiary are owned jointly by such
beneficiaries
without
rights
of
survivorship
and
disbursement will be made in equal shares to each of the
beneficiaries. Any POD designation will not apply to
Individual Retirement Accounts (IRAs) which will be
governed by a separate beneficiary designation. The
Credit Union does not 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.
You understand that it is your responsibility (and not
ours) to inform any person or organization that he, she or
it is a POD beneficiary on your account(s). If a POD
beneficiary on the account dies before you, it is your
responsibility to notify us and change the account
accordingly.
8.
Rights at Death.
a.
Individual Account Without Payable-on-Death
Designation:
Upon your death, the funds in the
account will go to your estate and can be claimed by
your legal representative or claimant subject to the
terms of this Account Agreement. You understand
that it is your responsibility (and not ours) to inform
your legal representative(s) about your account(s)
with us.
b.
Individual
Account
with
Payable-on-Death
Designation:
Upon your death, the POD beneficiary
will be entitled to the funds in the account (subject to
the terms of this Account Agreement) upon proof of
your death and the POD beneficiary’s identification.
If you designate more than one POD beneficiary on
the account, each will be entitled to his or her (or its)
equal share of the funds in the account, which will be
determined by dividing the amount of the funds in the
account by the number of POD beneficiaries
designated on the account, and will own those funds
without right of survivorship.
c.
Joint
Account
without
Payable-on-Death
Designation:
When one owner dies, his or her
interest in the account and the funds in the account
are owned by the surviving owner or owners of the
account, subject to the terms of this Account
Agreement. Upon the death of the final owner the
funds in the account belong to that owner’s estate
and can be claimed by that owner’s legal
representative or claimant subject to the terms of this
Account Agreement. You understand that it is your
responsibility (and not ours) to inform your legal
representative(s) about your account(s) with us.
d.
Joint Account with Payable-on-Death
Designation:
Upon the final owner’s death, the
POD beneficiary will be entitled to the funds in the
account (subject to the terms of this Account
Agreement) upon proof of death and the POD
beneficiary’s identification. If you designate more
than one POD beneficiary on the account, each will
be entitled to his or her (or its) equal share of the
funds in the account, which will be determined by
dividing the amount of the funds in the account by
the number of POD beneficiaries designated on the
10
account, and will own those funds without right of
survivorship.
9.
For joint accounts, a surviving owner’s ownership
interest is subject to the Credit Union’s right of setoff
for the deceased owner’s obligations, and to any
security interest or pledge granted by a deceased
owner, even if a surviving owner did not consent to it.
10.
POA:
If you choose to appoint an attorney-in-fact or
agent to act on your behalf pursuant to a power of
attorney (“POA”), we may rely on instructions provided
by the attorney-in-fact or agent and will have no liability
or responsibility to verify the transactions. The POA
must be properly executed, facially valid under
applicable law and the form of appointment must be
acceptable to us. In accordance with the terms of the
POA, the attorney-in-fact or agent you designate to act
on your behalf will be authorized to transact business
on your account(s) pursuant to the terms of such POA.
Notwithstanding the foregoing, we reserve the right to
contact you as the principal under the POA, to verify
your intent, prior to acting under the authority of the
POA. You further agree that unless prohibited by law,
we may refuse, with or without cause, to accept or
otherwise act under a POA, which you grant to others.
If we choose to accept the POA, you understand and
agree that we may act under the terms of such POA
and to the extent permitted by law, revocation of the
POA will not become effective until we have received
written notification thereof. You agree to indemnify and
hold us harmless for any claims that may arise against
us because of our reliance on a POA.
We are not liable for any transactions by an attorney-
in-fact or agent for a deceased or incompetent account
owner, unless we have written notice provided in
accordance with applicable law that you, as the
principal under the POA are deceased, have revoked
the powers of the attorney-in-fact or agent, or you are
adjudicated totally or partially incapacitated by a court
of competent jurisdiction, and we have had time to act
on that notice.
11.
Terms
and
Conditions
Applicable
to
Trust
Accounts:
You may open an account to hold the funds
of your trust and be named as trustee on our Trust
Account Application. A person named as a trustee on
the Trust Account Application has the same rights,
responsibilities and liabilities as an owner of an
account under this Account Agreement to open,
change, add or close an account or service. Each
trustee understands that any trustee acting alone may
change, add or close the account and/or a service, and
that his or her signature on the Trust Account
Application or continued use of an account or service
confirms his or her agreement to any later change,
addition or closure of an account and/or service by any
other trustee on the account. While any trustee may
change, add or close the account and/or a service
acting alone, we may require all trustees to consent in
writing to the addition or removal of any trustee to or
from the account. All trustees agree that we have no
duty to notify the trustees of the account of any
transaction, change, addition or closure of an account
or service by any trustee acting alone.
a.
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
Membership Application and Agreement or Trust
Account
Application
resign,
die,
become
incapacitated, or otherwise become unable to act as
trustee(s) of the Trust. The Membership Application
and Agreement or Trust Account Application will not
be approved unless successor trustee(s) are
designated.
b.
We may require you to provide us with a notarized
trust certification confirming your power as a trustee
prior to opening the account or making changes to
the account.
c.
We are not required to know, understand,
interpret, or enforce the terms of your written trust
instrument. The Credit Union is not required to keep
any Trust Instrument in its files and is not liable for
the contents of a Trust Instrument. THE CREDIT
UNION HAS NOT RECEIVED A COPY OF THE
TRUST INSTRUMENT AND SHALL IN NO EVENT
BE LIABLE FOR ITS CONTENTS.
d.
You acknowledge that the account is governed by the
applicable terms and conditions set forth in this
Account Agreement and by the terms and conditions
set forth in the Trust Account Application that you will
be asked to sign when the account is opened.
e.
Trust accounts are not subject to the Multiple Party
Accounts law.
12.
Terms and Conditions Applicable to Fiduciary
Accounts:
a.
Accounts may be opened by a person acting in a
fiduciary capacity. A fiduciary is someone who is
appointed to act on behalf of and for the benefit of
another. This account may be opened and
maintained by a person or persons named as a
trustee under a written trust agreement or as an
executor, administrator, conservator, or guardian
under court orders. By the authority vested in you as
a fiduciary, you, acting individually or jointly, are
authorized and empowered to transact business of
any character in connection with this account. Your
authority will continue in force until written notice to
the contrary is received by us.
b.
If the account is opened as a court-ordered blocked
account, you understand and agree that you will file
with the court appropriate documentation confirming
an agreement with us that the funds in the account,
including any dividends, may not be withdrawn or
pledged except upon court order.
c.
Funds in a fiduciary account may not be pledged as
security for any loan(s).
d.
Fiduciary accounts are not subject to the Multiple
Party Accounts law.
13.
Terms and Conditions Applicable to All Custodial
Accounts:
a.
The transferor/custodian is opening an account as
custodian for the minor named on the Transfers for
Minors Application under the California Uniform
Transfers to Minors Act (UTMA). The transfer of
money to the minor named on the Transfers to Minors
Application, which transfer will be deemed to include
all dividends and any future deposits or other
additions thereto, is irrevocable and is made in
accordance with and to include all provisions of the
California Uniform Transfers to Minors Act (UTMA)
now in effect or hereinafter amended. A Transfers to
Minors Application is required for each beneficiary.
11
b.
You acknowledge that by signing the Transfers to
Minors Application, you have received the funds
deposited to the account as custodian for the minor
named therein under the California Uniform
Transfers to Minors Act and you agree to the
applicable terms and conditions set forth in this
Account Agreement as well as the terms and
conditions of the Transfers to Minors Application.
You acknowledge and agree that neither the donor
of the funds nor the custodian is entitled to the use
or benefit of the funds, except for the benefit of the
minor as allowed by the California Uniform Transfers
to Minors Act. You also acknowledge and agree that
we have no duty whatsoever to monitor or ensure
that the acts of the custodian (or successor
custodian) are for the minor’s benefit.
c.
For this type of account, the minor’s Social Security
Number/ Tax Identification Number is used for the
Backup Withholding Certification.
d.
Funds in an UTMA may not be pledged as security
for any loan(s).
e.
The successor custodian named on the Transfers
to Minors Application will serve if you should be
unable to act as custodian because you resign, die,
or become legally incapacitated.
f.
Custodial accounts are not subject to the Multiple
Party Accounts law.
g.
You, as custodian, agree to indemnify and hold us
harmless from and against any and all claims,
damages, losses, liabilities, expenses, and fees
(including reasonable attorneys’ fees) we may
suffer or incur arising out of any action or claim by
any beneficiary with respect to the authority or
actions taken by you in handling or dealing with the
account.
h.
Upon the minor reaching the age of eighteen (18),
or other age stipulated in any applicable court
order, you, as custodian, have the responsibility of
transferring the money in the account to the minor
or to the minor’s estate and closing the account. If
you fail to transfer the money in the account to the
minor or to the minor’s estate within a reasonable
time after the minor reaches the age of eighteen
(18), or other age stipulated in any applicable court
order, we may pay the funds on deposit in the
account to the minor in accordance with the
custodian’s duty without waiting for instructions
from the custodian. You agree to indemnify and
hold us harmless for any failure to transfer the
money in the account to the minor or the minor’s
estate upon the minor reaching the age of eighteen
(18) or other age stipulated in an any applicable
court order.
Section 3. General Terms Regarding Access,
Transactions, Withdrawals, and Deposits to All
Accounts
1.
You may make deposits to or withdraw from your
accounts only in accordance with Credit Union policy.
Withdrawals
2.
You understand and agree that we have the right to
restrict the amount of cash each member may transfer
or withdraw in a 24-hour period.
3.
We reserve the right to require you to give not less than
seven (7) and up to sixty (60) days written notice of
your intention to withdraw funds from any account
except checking accounts.
4.
For the safety of both staff and members, the Credit
Union does not keep large amounts of cash at branch
locations. Arrangements for large cash withdrawals may
be made with the Branch Manager at the branch
location of our choice. Large cash withdrawal requests
may require up to five (5) business days advance notice
to process. You understand and agree that you will be
responsible for all fees that may be assessed by a third
party on the Credit Union in connection with your
request (e.g., cash delivery charges). In addition, you
may be asked to sign a form releasing us from any
liability.
Deposits
5.
You authorize us to accept deposits to your account at
any time, from any party, made in any manner, without
questioning the authority of the person making the
deposit, and to give cash back to any authorized
signer(s) or designated agent on any check payable to
any one or more of the account owners, whether or not
it is endorsed by you. The Credit Union reserves the
right, however, to refuse to accept all or any part of any
deposit.
6.
We are not responsible for delays in a deposit due to
improper identification on the deposit envelope or
improper keying of your transaction. Information
accompanying a deposit should include your name,
your account number, and where you want your deposit
to go.
7.
You understand and agree that it is our policy not to
accept for deposit checks payable to anyone other than
an Owner on the account (third party checks).
8.
All deposits are subject to verification. You agree that if
our count differs from yours, our determination of the
amount of a deposit will be considered the correct one.
9.
Deposits will be made available for withdrawal by you or
to cover other payments in accordance with Part III below
regarding Funds Availability.
10.
You agree that we will not be responsible for any
damages you incur in the event you deposit an item with
us which is subsequently returned unpaid by the paying
bank and that return is “late” due to markings on the back
of the item caused by you or a prior endorser.
11.
All payees listed on a check must sign the check that is
deposited or cashed, and must be a joint owner on the
account, present a valid government-issued identification
or have their endorsements guaranteed by another
financial institution. All multiple party checks without
proper identification are subject to being returned.
Notwithstanding the foregoing, you authorize us, in our
discretion, to accept checks and other items for deposit
into any of your accounts (collectively, “item”) if they are
made payable to, or to the order of, any one or more joint
owners on the account, whether or not they are endorsed
by all payees. You authorize us to supply missing
endorsements of any account owners on any item that
we take for collection, payment, or deposit to your
account (which we may supply in our sole discretion).
You also authorize us to collect any unendorsed item that
is made payable to you without first supplying your
endorsement, provided the item was deposited to your
account. If you deposit items which bear the
endorsement of more than one person or persons that
are not known to us or that require endorsement of more
than one payee, we may refuse the item or require all
endorsers to be present, have valid identification, or to
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have their endorsements guaranteed before we accept
the item.
12.
You understand and agree that we use automated
means to process checks and other items written on or
deposited to your account. This means that we do not
individually examine all of your items to determine if the
item is properly completed, signed and endorsed or to
determine if it contains any information other than what
is encoded in the Magnetic Ink Character Recognition
(MICR) line at the bottom of the check or item which
contains your account number, amount of check and
check number. Although we may manually review
checks or other items drawn on your account, you
understand
and
agree
reasonable
commercial
standards do not require us to do so. Our use of
automated means to process checks and other items
prevents us from inspecting or looking for special
instructions or “restrictive legends” on checks (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. For this reason, we are not required to
honor any restrictive legend placed on checks you write
unless we have agreed in writing to the restrictions. If
you cash or deposit an item or write a check with such
notation, you agree that it applies only between you and
the payee or maker. The notation will have no effect on
us, and you agree to accept responsibility for payment
of the item. You agree to indemnify and hold us
harmless from any claim or alleged loss of any maker or
payee involving such notations, whether you are the
maker or payee, or the funds are otherwise deposited
into an account in which you have an interest.
13.
We may refuse to accept for deposit or collection an
item that is payable in currency other than U.S. dollars
or an item that is not drawn on a financial institution
chartered in the U.S. (each, a “non- U.S. item”). If we
accept a non-U.S. item for deposit or collection, you
accept all risks associated with foreign currency
fluctuation (exchange rate risk) and with any late return
of the item. You agree that we may use our current
buying and selling rate, as applicable when processing
a non-U.S. item and we may recover from any account
you maintain with us any loss incurred by us as a result
of our processing such an item for you. We reserve the
right to place longer holds on non-U.S. items than the
time frames specified in our Funds Availability Policy.
14.
We have the right to charge back to or otherwise debit
any account you maintain with us for any deposited
item that is returned (and assess any associated fees
and to reverse or recover any associated interest that
may have accrued or been paid), even if you have
made withdrawals against it. This right of charge back
or debit is not affected by the expiration of any
applicable midnight deadline, provided we do not have
actual knowledge that such deadline has expired or,
having such knowledge, we conclude that: (a) the
deposited item is returned in accordance with the laws
governing your account or rule (including a clearing
house rule); and/or (b) we have received a breach of
warranty claim in connection with the deposited item.
We have the right to pursue collection of such
deposited item, even to the extent of allowing the payor
bank to hold the deposited item beyond the midnight
deadline in an attempt to recover payment. We may,
without notice to you, redeposit a returned deposited
item and represent it for payment by any means
(including electronic means), unless we have received
instructions from you not to redeposit such deposited
item. We will have no liability for taking or failing to take
any action to recover payment of a returned deposited
item.
If one of your deposited items is returned with a claim
that there is a breach of warranty (for example, a claim
that it bears a forged endorsement or is altered in any
way), we may debit your account for the amount of the
item (plus any associated fees) and pay the amount to
the claiming party. We are under no duty to question the
truth of the facts that are being asserted, to assess the
timeliness of the claim, or to assert any defense.
We need not give you any prior notification of our
actions with respect to the claim. We may create
substitute checks from your deposited items to facilitate
the forward collection of such items. You agree to
indemnify and hold us harmless from and against any
and all claims, damages, losses, liabilities, expenses,
and fees (including reasonable attorneys’ fees) arising
out of or in any way connected with such substitute
check, including without limitation, any claim based on
the image quality of such substitute check.
15.
We may rely on the account number on any instrument,
deposit slip, or similar record we receive from you, even
if that account number is associated with a name that is
different from the name you have provided. It is not our
responsibility to detect any inconsistency between the
account number you provide and the name. If you make
a deposit, we may provide a receipt, but the amount on
your deposit receipt is based entirely on the deposit slip
you complete. We may confirm the funds you deposit
and, after review, may adjust your account for any errors
including any errors on your deposit slip. We may not
adjust your account unless you notify us of the
discrepancy within one (1) year of the date of your
periodic statement that reflects the deposit. If you do not
notify us of the error during this notice period, the
deposit amount will be considered final. This means that
is the actual amount deposited was less than the
amount stated on the deposit receipt, the difference will
become your property, and if the actual amount
deposited was more than the amount stated on the
deposit receipt, the difference will become our property.
16.
In processing items you have deposited to your account,
we act only as a collecting agent and we do not assume
any responsibility beyond the exercise of ordinary care.
Any deposit that we accept and credit to your account is
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 the deposit and
impose a Returned Deposited Item Fee as set forth in
the Fee Schedule. We are not responsible for any
deposit sent by mail or made at an unstaffed facility (for
example, an automated teller machine that is not at a
branch) until we actually receive the deposited item or
money. We are not liable for the negligence or default
of any third party we use for the collection of items,
including responsibility for lost items. You agree to
indemnify and hold us harmless from and against any
and all claims, damages, losses, liabilities, expenses,
and fees (including reasonable attorneys’ fees) arising
out of or relating to an item placed for collection.
Checks and Other Items or Access Devices
17.
As a convenience to you, we will submit your initial check
order and any reorders for personalized checks ordered
13
through us to our approved check vendor. If the check
vendor accepts the initial order and any re-orders, the
check vendor will mail the checks either directly to you
or to you in care of us. You authorize us to charge your
checking account for the cost of checks ordered through
us, plus applicable sales tax and shipping costs at the
fee set forth in the Fee Schedule. You are responsible
for verifying the accuracy of all information shown on
your checks, whether you order them through us or
elsewhere. You agree to imprint only those names of
authorized owners on your checks. If you have not
ordered checks through our approved check vendor, we
are not responsible for the quality of any check copy that
you request. In addition, we are not responsible for any
checks not paid as a result of quality or printing errors.
18.
We may provide you with temporary checks that include
the exact MICR line, including routing number and
account number, necessary for the proper processing of
your checks. You are responsible for ensuring that any
checks you use to draw on your account include this
same MICR encoding. You understand that it is your
responsibility to ensure that checks you order from any
third- party printer are printed in accordance with
applicable standards set by the American National
Standards Institute (ANSI) for font, paper, toner, and
positioning. You understand that if checks you write do
not have the correct routing number, they may not be
properly posted, and that if any other part of the
encoding is incorrect, posting of the checks may be
delayed. If you fail to include proper MICR encoding on
your checks and this results in any such check being
manually processed by us, then you will pay a fee as set
forth in the Fee Schedule.
19.
We may pay and charge to your applicable account
checks or other debit items (“items”) drawn by and
payable to any person, organization, association or
corporation whom you have authorized by providing
sample MICR encoded information identifying your
account, provided there are sufficient funds in your
account to pay such items. You agree that our rights in
respect to such items will be the same as if it were an
item drawn and signed by you personally. This authority
will remain in effect until revoked by you in writing (to us
and to the agency to whom the sample MICR writing
was provided) and we have had a reasonable
opportunity to act on it. You agree that we will be fully
protected in honoring such items. You further agree that
if any such item is dishonored, whether with or without
cause, and whether intentional or inadvertent, we will
have no liability whatsoever, even though such dishonor
results in the forfeiture of insurance, or other loss or
damage to you of any kind.
20.
You, or any joint owner on the account, may request a
stop payment of any check payable against your
account, provided your request is timely and affords us
a reasonable opportunity to act upon it under our rules.
Call or write us at the telephone number or address
listed in this Agreement in time for us to receive your
request three (3) business days or more before the
payment is scheduled to be made. If you call, we may
also require you to submit your request in writing and
deliver it to us within 14 days after you call.
Please refer to our Fee Schedule for the amount we will
charge you for each stop payment order.
Your stop payment request must include the account
number, check number, exact amount, check date, and
name of payee. This information must be exact because
stop payment orders are processed using automated
means. We will not be liable for paying a check over a
stop payment request if the request is incomplete or
incorrect. A stop payment fee will be assessed for each
stop payment as set forth in our Fee Schedule. If you
make a stop payment request orally, the request will be
valid for only fourteen (14) days thereafter unless
confirmed in writing. Written requests will be valid no
longer than six (6) months, but may be renewed for
additional six (6) month periods by written notice given
during the time that the stop payment order is in effect.
We are not obligated to notify you when a stop payment
order will or has expired. You have the burden of
establishing the fact and amount of loss resulting from
payment contrary to a binding stop payment request. You
should be aware that anyone holding the item may be
entitled to enforce payment against you despite the stop
payment order. You agree to indemnify, defend, and hold
us harmless from and against any and all claims,
damages, losses, liabilities, expenses, and fees
(including reasonable attorneys’ fees) arising out of or
relating to our action in stopping payment of any check
pursuant to your request.
21.
We are not liable if we pay a check which you have
requested us to stop payment on as long as we act in
good faith and exercise ordinary care. In any event, any
damages that we might otherwise be liable for shall not
exceed the amount of the involved check. If we do pay
a check for which you have requested stop payment and
as a result any other item is returned unpaid by us due
to nonsufficient funds, we are not liable for any
consequences resulting from such action.
22.
Your death or incompetence will not revoke our
authority to accept, pay or collect a check or to account
for proceeds of its collection until we know of the fact of
death or adjudication of incompetence and have a
reasonable opportunity to act on it. Even with
knowledge, we may for ten (10) days after the date of
death or incapacity, pay or guarantee checks 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 us. We must be notified if any
of you dies or becomes incapacitated.
23.
We are neither given notice, or otherwise affected by, a
restrictive endorsement of any person or entity except
our immediate transferor.
24.
“Remotely created checks” are created when an
account holder authorizes a payee to draw a check on
the account, but instead of the account holder’s actual
signature, the check identifies that the account holder
authorized the check. If you deposit a remotely created
check, you guarantee it was authorized by the account
holder for payment in the amount it shows.
25.
We may pay a check bearing any form of facsimile or
computer- generated signature. If you use a facsimile or
computer-generated signature, or if you authorize us to
accept any such signature, you will be solely
responsible for any check bearing a similar signature,
regardless of your negligence or whether the signature
was the same one you previously used.
26.
If we have paid a check under circumstances giving you
a basis for objection, we shall be subrogated to the
rights of: (a) Any holder in due course on the check
against the drawer or maker; (b) The payee or any other
holder of the check against the drawer or maker, either
14
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.
27.
You authorize us to accept and pay any check without
regard to the date of the check. You understand that
post-dating a check will have no effect on whether or
not it is honored prior to or after the date of any such
check. In addition, we are under no obligation to pay a
check which is presented more than six (6) months
after its date (a stale-dated check). You agree that we
are not required to identify post-dated or stale-dated
checks or seek your permission to pay them. We may
pay or refuse to pay any post-dated or stale- dated
check or other item presented for payment on your
account without any liability.
28.
All checks written on your account must be drawn in U.S.
dollars.
29.
Our measure of damages for failure to exercise ordinary
care in handling a check will not exceed the amount of
the item.
30.
You will notify us immediately if your checks are lost or
stolen. You agree that you will be responsible for losses
caused by a delay in your notification to us.
31.
It is your responsibility to protect the account numbers
and electronic access devices (e.g., a debit card) we
provide you for your account(s). You agree not to
disclose your account number(s) to anyone unless you
are willing to give them full use of your money. If you
disclose your account number(s) or provide your access
device to another person (a family member or friend, for
example) in connection with granting authority to that
person to conduct funds transfers, and that person then
exceeds that authority, you are liable for the transfers
unless we have been notified those transfers by that
person are no longer authorized.
Your account number can also be used to electronically
withdraw money from your account. For example, if you
provide your account number to an online merchant to
purchase a service or merchandise, funds can be
electronically withdrawn from your account.
You must also take precaution in safeguarding your
blank checks. Notify us at once if you believe your
checks have been lost or stolen. We are not responsible
for any loss or damage which results from your
negligence, including without limitation, your failure to
adequately safeguard your blank checks or other
personal information or means of access to your
account.
32.
The federal law dealing with funds availability requires
the financial institution’s endorsement area on the back
of a check be kept clear or unobstructed. This rule is
designed to prevent unnecessary delays in processing
your deposits as well as to promote 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 you) can be used by you for endorsements or any
other markings.
In the event that you draw a check on your checking or
loan account with us, you are responsible for any delay
or misrouting of the check caused by markings placed
on the check by you that obscure any depository
endorsements placed by us or our agent and you agree
to hold us harmless and indemnify us from any liability
due to such delay or misrouting.
33.
Access to your account(s) through electronic means or
Cards is dictated by the provisions related to electronic
funds transfers contained in Part V.
Corrections, Disputes, and Additional Terms
Regarding Transactions
34.
If a deposit or other credit is made in error to your account
that you are not entitled to (whether by check, cash,
automated clearing house transfer, wire transfer or
otherwise), you understand that we may debit your
account for the amount of the erroneous deposit, and
may do so without notice to you, regardless of when the
original deposit took place. If you withdraw any or all of
the funds erroneously deposited to your account, you
agree that you are obligated to reimburse us for the
amount of the erroneous deposit or credit, and any costs
and fees as disclosed to you. Your withdrawal of
erroneously deposited funds may result in an overdraft of
your account.
35.
You agree to pay our costs of collection, including
reasonable attorneys’ fees and court costs, with regard
to any check drawn on us by you or any item you deposit
with us that causes us to incur a loss.
36.
You agree that if a depositor (e.g., a government agency)
demands we return any sums directly deposited to your
account during the month of or after the death of any
account holder on your account, we must honor such a
demand and may debit your account for all amounts
returned to the depositor.
37.
We agree to investigate any transaction you have
reported to us as unauthorized (a “claim of unauthorized
transaction”). You agree to: (1) submit your claim of
unauthorized transaction in writing to us by completing
a declaration under penalty of perjury describing your
claim of unauthorized transaction (in an affidavit form
approved by us, if so requested); (2) file a police report;
(3) complete and return to us any documents requested
of you; and (4) in all respects, cooperate fully with us in
our investigation of your claim of unauthorized
transaction.
We reserve the right to reverse any credit made to your
account if you fail to sign such documents, cooperate
fully with our investigation of your claim of unauthorized
transaction or if we determine that the transaction that
gave rise to your claim of unauthorized transaction was
proper.
38.
You understand and agree that you are not permitted to
place a stop payment on a cashier’s, teller or certified
check unless such check is lost, stolen or destroyed. In
the event that a cashier’s, teller or certified check is lost,
stolen or destroyed, in order to effectuate a stop
payment, you must execute and deliver to us a written
Declaration of Loss and Claim for Reimbursement
(“Declaration of Loss”) and/or affidavit in a form
acceptable to us and in time for us to have a reasonable
time to act on it. You further understand and agree that
the Declaration of Loss is not immediately enforceable
upon your submission. Specifically, you understand and
agree that we will not process your stop payment
request until the later of (1) the time the Declaration of
Loss form is properly delivered to us by you, or (2) the
90th day following the date of the cashier’s, teller or
certified check. We may, however, in our sole and
absolute discretion, process your stop payment request
sooner. You agree to indemnify and hold us harmless
from and against any and all claims, damages, losses,
liabilities, expenses, and fees (including reasonable
attorneys’ fees) arising out of or relating to our attempt
15
to, or stopping payment on, such cashier’s, teller or
certified check.
Section 4. Payment of Dividends
1.
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.
2.
For all accounts except Certificate Accounts, the
dividend rate and Annual Percentage Yield (APY) may
change; for savings and checking accounts, the
dividend rate and APY may change monthly, and for
Money Market/High Yield Savings, the dividend rate
and APY may change at any time. We may change the
dividend rates for accounts as determined by the Credit
Union’s Board of Directors. Current rate information is
set forth in the Deposit Rate Sheet accompanying this
Account Agreement. You may also obtain current rate
information by calling the Credit Union or visiting our
website.
3.
Compounding and Crediting for all Accounts:
For
all dividend bearing accounts including Certificate
Accounts, dividends will be compounded daily and will
be credited monthly. For these accounts, 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 dividend declaration date is the
ending date of a dividend period, and for this example
is January 31.
4.
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, subject to any minimum balance requirements for
earning dividends.
Dividends will begin to accrue on the business day you
deposit non- cash items (e.g., checks) to your account
if deposited before the close of business.
Except for Money Market/Share Certificate accounts, if
you close any of your dividend earning accounts before
dividends are credited you will not receive the accrued
dividends.
Section 5. Terms and Conditions Applicable to
Checking Accounts
1. If you are under the age 18 years old and we allow you
to open a checking account, your parent or legal
guardian will have to be a joint owner of your account.
2.
We may close your Checking Account at any time due
to inactivity, fraud or other reason we deem appropriate.
New Solutions Checking
3.
No minimum balance is required to earn dividends on
this account.
4.
A minimum opening deposit of $25 is required to open
a New Solutions Checking Account.
5.
Please see the current Fee Schedule for a list of
applicable fees and charges that may be assessed
against this account.
Health Savings Accounts
6.
Please see the terms and conditions applicable to
Health Savings Accounts (“HSAs”) provided to you
when you open an HSA, including the HSA application
and related documents, which are incorporated by this
reference. Any distributions taken from an HSA by debit
card, credit, or stored value card will be reported to the
IRS as normal distributions.
General Terms and Conditions Applicable to all
Checking Accounts
7.
Funds in checking accounts may not be pledged as
security for any loan(s).
8.
We may, at our 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 we establish
from time to time.
b.
If drawn by means not authorized in advance by us.
c.
Against checks or electronic debits presented over
six (6) months past their issue dates.
9.
All checking accounts are truncated checking accounts.
Check copies are not returned with statements. Both
sides of checks are microfilmed and stored for seven (7)
years from date of posting. Upon request, we will provide
you with a photocopy of a requested item within a
reasonable time. We will not charge for copies of the first
two (2) items you request appearing on any one (1)
statement. Additional copies will be subject to a fee as
disclosed in the Fee Schedule.
Section 6. Terms and Conditions Applicable to Savings
Accounts
1.
Rate
Information:
Dividends
rates
and
annual
percentage yields may change every month as
determined by the Credit Union Board of Directors.
Savings Accounts
2.
A minimum deposit equal to the par value of a share is
required to open a Savings Account(s) and become a
member of the Credit Union. If the balance of your
Savings Account(s) is subsequently reduced to less than
the par value and remains so after six (6) months, we
may close the account(s).
3.
If your Savings Account balance is reduced to less than
the par value of a share, we may transfer enough funds
from any other savings account you may have with us in
order to bring your account balance up to the par value
of a share.
Primary Savings Account
4.
A minimum opening deposit of $25 is required to open a
Savings Account for individuals, and $50 for joint
member accounts. A monthly Low Balance fee will apply
if at any point during the month the account balance falls
below the required $25 for individuals and
$50 for joint members.
5.
The minimum daily balance required in this account to
obtain dividends as stated on the Deposit Rate Sheet is
$25.
Special Purpose Savings Account
6.
This account has the same terms as the Primary
Savings Account, except that no minimum balance
requirement applies. Multiple Special Purpose Savings
Accounts can be opened by members. Please refer to
the Fee Schedule.
Special Purpose Youth Savings Account
7.
The terms of the Special Purpose Youth Savings
Account (My Savings Account) are the same as the
Primary Savings Account, except only one My Savings
Account per Social Security number may be opened
and the primary individual on the account must be less
than twenty-two (22) years of age at time of account
16
opening. A special rate/APY may be earned on
balances up to and including
$1,000. Balances of $1,000.01 and above will earn our
regular share savings account yield. When the primary
member reaches twenty-two (22) years of age, this
account will convert to a Special Purpose Savings
Account.
Club Account
8.
This account has the same terms as the Primary
Savings Account, except that no minimum balance
requirement applies, and the account distribution
schedule is established at account opening. Some
Club Accounts may not be interest bearing. Multiple
Club Accounts can be opened by members.
Money Market/High Yield Savings Accounts
9.
See the Deposit Rate Sheet provided at account
opening (also available online and in branches) for
details regarding APYs and dividend rate tiers, and the
minimum balance required for each tier to obtain the
rate. Dividend rates specified for tiers are paid on the
entire account balance.
Section 7. Terms and Conditions Applicable to
Certificates
1.
Unless otherwise specified for a specific type of
Certificate below, these general terms and conditions
shall apply to all Certificate Accounts. This section
supplements your Certificate Account Application and
Opening Certificate Receipt (“Certificate Receipt”),
which discloses specific terms of your Certificate
Account. All of our dividend-bearing term share
accounts are referred to as “Certificate Accounts”.
2.
Rate Information:
Certificate Accounts are generally
fixed-rate accounts (unless the Certificate Receipt
states otherwise) and are non-negotiable and non-
transferable; however, your dividend rate may increase
during the term of the Certificate Account, if you
selected an account allowing for such an increase
when it was opened, as reflected in your Certificate
Receipt.
3.
For current dividend rates and corresponding APY,
refer to the Deposit Rate Sheet; we may change
dividend rates and APYs offered for new Certificate
Accounts daily as determined by the Credit Union
Board of Directors. The dividend rate, APY, term, and
Maturity Date for your Certificate Account will be set
forth in a written communication we will provide to you
when you open such account referred to as the
Certificate Receipt. You may also call the Credit Union
to obtain current rate information. You will be paid the
rates and yields until maturity.
4.
Minimum Balance and Deposit Requirements:
The
minimum balance required to open and maintain a
Certificate Account is set forth on the Deposit Rate
Sheet. You must maintain this minimum daily balance
in your Certificate Account each day to obtain the
disclosed APY and to avoid account closure. The
Certificate Account will be closed if the balance falls
below the minimum balance required set forth on the
Deposit Rate Sheet. You must maintain this minimum
daily balance in your Certificate Account each day to
obtain the disclosed APY and to avoid account closure.
If during any day your Certificate Account balance falls
below the required minimum, your Certificate Account
will be subject to closure. Although credited dividends
may be withdrawn or transferred at any time without
the assessment of an early withdrawal penalty, the
disclosed APY assumes that dividends will remain in the
Certificate Account until the Maturity Date. An early
withdrawal will reduce earnings.
5.
Dividends:
Dividends will be compounded daily and will
be credited monthly and/or upon the Maturity Date.
Dividends are calculated by using 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 non-cash items (e.g., checks) are
deposited to the Certificate Account. If the Certificate
Account is closed before dividends are credited,
dividends accrued through the prior business day will be
paid, subject to any early withdrawal penalty.
6.
Dividends will be credited to the Money Market Account
or Savings Account and suffix as designated by you on
your Certificate Receipt. In the event you designate a
Savings Account that is closed, dividends may be
credited from which the certificate was originally funded
or to your source Credit Union account.
7.
From time to time the Credit Union may offer certain
promotional Certificate Accounts that have higher
minimum balance requirements and different dividend
rates.
8.
Transaction Limitations:
Once your Certificate Account
is established, you generally may not make deposits into
the account until the Maturity Date. All withdrawals of
principal before the Maturity Date are subject to early
withdrawal penalties, except during the grace period
described herein. We also reserve the right to require
members intending to make a withdrawal [of principal]
from any Certificate Account to give written notice of such
intent not less than thirty (30) days before the withdrawal.
You may not make withdrawals of principal from your
Share Certificates before maturity.
9.
Early Withdrawal Penalties.
The Certificate Account
will mature on the Maturity Date set forth in the Certificate
Receipt. The Credit Union will terminate the Certificate
Account and impose a penalty on the entire balance of
the account if a withdrawal of principal is made prior to
the Maturity Date. If the Certificate has a term to maturity
equal to or less than one (1) year, the penalty we may
impose will equal three (3) months of dividends, whether
or not earned. If the Certificate has a term to maturity
greater than one (1) year through two (2) years, the
penalty we may impose will equal six (6) months of
dividends, whether or not earned. If the Certificate has a
term to maturity greater than two (2) years through three
(3) years, the penalty we may impose will equal nine (9)
months of dividends, whether or not earned. If the
Certificate has a term to maturity greater than three (3)
years, the penalty we may impose will equal twelve (12)
months of dividends, whether or not earned.
In accordance with Federal Reserve Board Regulations,
the Credit Union may charge an early withdrawal penalty
of seven (7) days dividends on amounts withdrawn within
the first six (6) days after deposit or automatic renewal.
There are certain circumstances, such as the death or
incompetence of an owner, where we may waive or
reduce this penalty. See your plan disclosure if the
applicable account is part of an IRA or other tax qualified
plan.
The annual percentage yield is based on an assumption
that dividends will remain in the account until maturity. A
withdrawal will reduce earnings.
10.
Maturity and Renewal:
Except otherwise stated in your
Certificate Receipt, your Certificate Account will
17
automatically renew upon the Maturity Date and on the
Maturity Date of any renewal term unless you prevent
renewal by withdrawing all of the funds in your
Certificate Account. The renewal term will be equal to or
closest to that of the initial term and at the dividend rate
and APY in effect at that time for such a term. You may
instruct us in person or in writing once prior to the
expiration of a ten (10) day grace period following
maturity to renew or close the Certificate on a date of
your choosing within the grace period; however, you
should ensure that you are comfortable with your
election to renew or close, as it will be binding on you,
and you cannot change your choice once you have
instructed us to either renew or close your account
during that ten (10) day grace period, even if the grace
period has not yet expired. 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. If automatically renewed, all funds
in a Certificate Account as of the renewal date are
considered to be principal. If the certificate is no longer
offered at the time of renewal the funds will be
transferred to your Savings Account. If your Certificate
Receipt provided at account opening designated the
Certificate Account as not renewing automatically at
maturity, the principal and any unpaid earned dividends
will be transferred to your designated Savings Account
and suffix at maturity.
11.
Notice:
As a courtesy we may, but are not required to,
send you a written maturity notice at least thirty (30)
days in advance of the Maturity Date of your
Certificate.
12.
Certificate accounts subject to unclaimed property
laws may not be automatically renewed and may be
surrendered to the applicable state in accordance with
state laws.
13.
Subject to our lending policies, amounts on deposit in
Certificate Accounts (except IRA Certificate Accounts)
may be pledged as collateral security to loans.
Section 8: Terms and Conditions Applicable to IRAs
1.
As to all IRA accounts, the Credit Union is a platform
provider only, and does not undertake to provide
individual investment advice.
2.
The terms of the IRA Accumulative Account are the
same as the Special Purpose Savings Account. The
terms of IRA Share Certificates are the same as non-
IRA Share Certificates. The terms of IRA Money
Market/High Yield Savings Accounts are the same as
non-IRA Money Market/High Yield Savings Accounts,
except to the extent check writing or other transactions
are limited by federal or state law. In the absence of
instructions, deposits will be credited to the tax year in
which the funds are received.
3.
You will receive additional documentation when
opening an IRA. Consult your separate IRA agreement
for restrictions on deposits, withdrawals, and tax
penalties.
PART III – FUNDS AVAILABILITY POLICY AND
SUBSTITUTE CHECKS DISCLOSURE
Section 1: Your Ability to Withdraw Funds
1.
This Part III applies to all your share accounts with us.
Our policy is to make funds from your cash and check
deposits available to you on the first (1st) business day
after the day we receive your deposit. Electronic direct
deposits will be generally available on the first business
day after the day we collect the funds. At that time,
except if notified otherwise, you can withdraw the funds
in cash, and we will use the funds to pay checks that
you have written. With respect to check deposits made
through our Remote Deposit Capture, such check
deposits are considered deposits made directly to one
of our employees under this policy.
2.
For determining the availability of your deposits, every
day is a business day, except Saturdays, Sundays, and
federal holidays. If you make a deposit before the
posted cutoff time on a business day that we are open,
we will consider that day to be the day of your deposit.
However, if you make a deposit after the cutoff time on
a business day or on a day we are not open, we will
consider that the deposit was made on the next
business day we are open.
Cutoff times may vary on some days or at some locations.
3.
If we cash a check for you that is drawn on another
financial institution, we may withhold the availability of a
corresponding amount of funds that are already in your
account. Those funds will be available at the time funds
from the check we cashed would have been available if
you had deposited it.
4.
If we accept for deposit a check that is drawn on another
financial institution, we may make funds from the deposit
available for withdrawal immediately but delay your
availability to withdraw a corresponding amount of funds
that you have on deposit in another account with us. The
funds in the other account would then not be available for
withdrawal until the time periods that are described
elsewhere in this disclosure for the type of deposit you
made.
Section 2: Longer Delays May Apply
1.
In some cases, we will not make all of the funds that you
deposit by check available to you on the first business
day after the day of your deposit. Depending on the type
of check that you deposit, funds may not be available
until the second (2nd) business day after the day of your
deposit. The first $275 of your deposits, however, will be
available on the same day we receive your deposit.
2.
If we are not going to make all of the funds from your
deposit available immediately, we will notify you at the
time you make your deposit. We will also tell you when
the funds will be available. If your deposit is not made
directly to one of our employees, or if we decide to take
this action after you have left the premises, we will send
you the notice by the day after we receive your deposit.
3.
If you will need the funds from a deposit right away, you
should ask us when the funds will be available.
4.
In addition, funds you deposit by check may be delayed
for a longer period under the following circumstances:
a.
We believe a check you deposit will not be paid.
b.
You deposit checks totaling more than $6,725 on any
one day.
c.
You redeposit a check that has been returned unpaid.
d.
You have overdrawn your account repeatedly in the
last six months.
e.
There is an emergency, such as failure of computer
or communications equipment.
5.
We will notify you if we delay your ability to withdraw
funds for any of these reasons, and we will tell you when
the funds will be available. They will generally be
available no later than the seventh (7th) business day
after the day of your deposit.
18
Section 3: Special Rules for New Accounts
1.
If you are a new customer, the following special rules
will apply during the first thirty (30) calendar days your
account is open.
2.
Funds from electronic direct deposits to your account
will be available on the day we actually collect the funds.
Funds from deposits of cash, wire transfers, and the first
$6,725 of a day’s total deposits of cashier’s, certified,
teller’s, traveler’s, and federal, state and local
government checks will be available on the first
business day after the day of your deposit if the deposit
meets certain conditions. For example, the checks must
be payable to you (and you may have to use a special
deposit slip). The excess over $6,725 will be available
on the ninth business day after the day of your deposit.
If your deposit of these checks (other than a U.S.
Treasury check) is not made in person to one of our
employees, the first $6,725 will not be available until the
second (2nd) business day after the day of your deposit.
3.
Funds from all other check deposits will be available on
the ninth (9th) business day after the day of your
deposit.
Section 4: Holds on Other Funds
If we cash a check for you that is drawn on another
financial institution, we may withhold the availability of a
corresponding amount of funds that are already in your
account. Those funds will be available at the time funds
from the check we cashed would have been available if
you deposited it.
Section 5: Substitute Checks and Your
Rights
To make check processing faster, federal law permits
financial institutions to replace original checks with
“substitute checks”. These checks are similar in size to
original checks with a slightly reduced image of the front
and back of the original check. The front of a substitute
check states; “This is a legal copy of your check. You can
use it the same way you would use the original check.”
You may use a
substitute check as proof of payment just like the
original check. Some or all of the checks that you
receive back from us may be substitute checks. This
notice describes rights you have when you
receive substitute checks from us. The rights in this notice
do not apply
to original checks or to electronic debits to your account.
However, you have rights under other law with respect
to those transactions.
What are Your Rights Regarding Substitute Checks?
In certain cases, federal law provides a special
procedure that allows you to request a refund for losses
you suffer if a substitute check is posted to your account
(for example, if you think that we withdrew the wrong
amount from your account or that we withdrew money
from your account more than once for the same check).
The losses you may attempt to recover under this
procedure may include the amount that was withdrawn
from your account and fees that were charged as a
result of the withdrawal (for example, NSF check fees)
The amount of your refund under this procedure is
limited to the amount of your loss or the amount of the
substitute check, whichever, is less. You also are
entitled to interest on the amount of your refund if your
account is an interest-bearing account. If your loss
exceeds the amount of the substitute check, you may be
able to recover additional amounts under other law.
If you use this procedure, you may receive up to $2,500 of
your refund, plus interest if your account earns interest,
within ten (10) business days after we receive your claim
and the remainder of your refund, plus interest if your
account earns interest, not later than forty-five (45)
calendar days after we received your claim. We may
reverse the refund (including any interest on the refund) if
we later are able to demonstrate that the substitute check
was correctly posted to your account.
How Do You Make a Claim for a Refund?
If you believe that you have suffered a loss relating to a
substitute check that you received and that was posted to
your account, please contact us at the telephone number or
mailing address provided in this notice. You must contact
us within forty (40) calendar days of the date that will be
mailed (or otherwise delivered by a means to which you
agreed) the substitute check in question or the account
statement showing that the substitute check was posted to
your account, whichever is later. We will extend this time
period if you were not able to make a timely claim because
of extraordinary circumstances. Your claim must include:
•
A description of why you have suffered a loss (for
example, you think the amount withdrawn was
incorrect)
•
An estimate of the amount of your loss
•
An explanation of why the substitute check you received
is insufficient to confirm that you suffered a loss; and
•
A copy of the substitute checks [and/or] the following
information to help us identify the substitute check: [the
check number, the name of the person to whom you
wrote the check, and the amount of the check]
PART IV – ACCOUNT BALANCES AND LIABILITY
FOR OVERDRAFTS
Section 1: General
1.
You are responsible for keeping track of the funds in your
account that are available for you to use before you write
a check, make a cash withdrawal at an ATM, or use your
debit card for a transaction. Among other things, you
should keep a running balance that reflects all of your
transactions. It is imperative that you keep track of the
transactions you may have authorized (such as
outstanding checks or automatic bill payments you have
authorized), as your available balance (discussed in
more detail below) may not reflect these transactions
until they are paid from your account.
2.
“Overdrawing” your account means that there are not
sufficient available funds in your account to pay for a
transaction, but the transaction is paid under either an
optional overdraft protection plan or the Courtesy Pay
Service, which results in a negative “overdrawn” balance.
Some transactions that can result in an overdraft in your
checking account include, but are not limited to: (1) the
payment
of
checks,
electronic
fund
transfers,
preauthorized payments under our Bill Payment Service,
or other withdrawal requests authorized by you;
(2) the return (unpaid) of items deposited by you; (3) the
assessment of service charges by us; or (4) the deposit
of items that are treated as not yet “available” according
to our Funds Availability Policy.
3.
This Part IV discusses in Section 2 how to determine and
manage your account balances. Section 3 then
discusses how we will post transactions to your account.
Based on these policies, your transactions can result in
19
transaction(s) being presented for processing when
your account’s available balance is insufficient to pay
the transaction(s). Sections 4 and 5 discuss the two
kinds of services the Credit Union offers to allow for the
payment of these transactions.
Section 2: Your Checking Account Balance
1.
Your checking account has two kinds of balances: the
“actual” balance and the “available” balance. Both can
be checked when you review your account online, at a
Credit Union-owned ATM, by phone, or at a branch. It is
important to understand how the two balances work so
that you know how much money is in your account at
any given time. This section explains actual and
available balances and how they work.
2.
Your actual balance is the amount of money that is
actually in your account at any given time, but not all
funds included in the actual balance are considered
available for transactions on your account. The actual
balance is also referred to as: (a) your balance on Credit
Union ATM screens; and (b) your current balance in
Digital Banking.
Your actual balance reflects transactions that have
posted to your account, but not transactions that have
been authorized and are pending or pending deposits
that are subject to holds under our Funds Availability
Policy. While the term “actual” may sound as though the
number you see is an up-to-date indication of what is in
your account that you can spend, that is not always the
case. Your actual balance will not reflect any purchases,
holds, fees, other charges, or deposits made on your
account that have not yet posted. For example, if you
have a $50 actual balance, but you just wrote a check
for $40, then your actual balance is $50 but it does not
reflect the pending check transaction. So, at that point,
you have an actual balance of $50, but you have already
spent $40.
3.
Your available balance is the amount of money in your
account that is available to you to use without incurring
an overdraft fee. The available balance takes into
account factors such as holds placed on deposits and
pending transactions (such as pending debit card
purchases) that the Credit Union has authorized but that
have not yet posted to your account. For example,
assume you have an actual balance of $50 and an
available balance of $50. If you were to use your debit
card at a restaurant to buy lunch for $20, then that
merchant could ask us to pre-authorize the payment in
that amount (or even a different amount). Under this
example, if the merchant requested preauthorization in
the amount of $20, we would place a “hold” on your
account for $20 (referred to as an “authorization hold”).
Your actual balance would still be $50 because this
transaction has not yet posted, but your available
balance would be $30 because of the restaurant’s
preauthorization
request
that
resulted
in
an
authorization hold on $20 in your account. When the
restaurant submits its bill for payment (which could be a
few days later and for a different amount than the
amount of the authorization hold), if our system matches
the
posted
transaction
with
the
corresponding
authorization hold (which may not always occur), we will
release the authorization hold, post the transaction to
your account, and reduce your actual balance by the
amount of the posted transaction. Your account is
considered overdrawn when the available balance in
your account is negative (less than $0).
4.
Your available balance may not reflect all of your Debit
Card transactions. We use your available balance at the
time a transaction posts to determine when your
account is overdrawn and whether fees will be
assessed. In making this determination, we check your
available balance at two separate times—first, at the
time a merchant authorization request is received, and
second, when the transaction “settles” and posts to your
account. If your available balance is insufficient to pay
the preauthorization amount requested by a merchant,
we will decline the request. If your available balance is
sufficient to cover a merchant’s authorization request,
the authorization request will be approved, and an
authorization hold will be placed on your account in the
amount of the merchant’s authorization request. If the
transaction later “settles” and posts to your account at a
time when the available balance is insufficient to pay the
posted transaction without causing the account to have
a negative balance (less than $0), we will charge a
Courtesy Pay Fee on that transaction even though the
available balance was sufficient to cover it at the time
the transaction was authorized. Your account is
considered overdrawn when the available balance in
your account is negative (less than $0).
The following example illustrates how this works:
Assume your actual and available balance are both
$50, and you use your debit card at a restaurant for
$20. If the restaurant requests preauthorization in
the amount of $20, an authorization hold is placed
on $20 in your account, so your available balance is
only $30. Your actual balance would remain $50.
Before the restaurant charge is sent to us for
payment, a check that you wrote for $40 clears.
Because your available balance is only
$30 (due to the authorization hold of $20), your
account will be overdrawn by $10, even though your
actual balance is $50. In this case, if we pay the $40
check under the Courtesy Pay Service, we will
charge you a Courtesy Pay Fee as disclosed in our
Fee Schedule, which will be deducted from your
account, further increasing the overdrawn amount.
In addition, when the restaurant charge is finally
submitted to us for payment, we will release the
authorization hold and pay the transaction amount
(which may be $20 or even a different amount, for
example, if you added a tip) to the restaurant.
Because the amount of the restaurant charge
exceeded your available balance at the time the
restaurant charge “settled” (i.e., posted to your
account), we will charge you a Courtesy Pay Fee as
disclosed in our Fee Schedule, even though the
restaurant transaction was authorized and approved
with a sufficient available balance.
5.
YOU ACKNOWLEDGE THAT YOU MAY STILL
OVERDRAW YOUR ACCOUNT EVEN THOUGH THE
AVAILABLE BALANCE APPEARS TO SHOW THERE
ARE
SUFFICIENT
FUNDS
TO
COVER
A
TRANSACTION THAT YOU WANT TO MAKE
. This is
because we check your available balance at two
separate times as explained above, in addition to the
fact that your available balance may not reflect all your
outstanding checks, automatic bill payments that you
have authorized, or other outstanding transactions that
have not yet been paid from your account. In the
example above, the outstanding check will not be
reflected in your available balance until it is presented
to us and paid from your account.
20
6.
Also, your available balance may not reflect all of your
debit card transactions. For example, if a merchant
obtains our prior authorization but does not submit a
one-time debit card transaction for payment within three
(3) business days of authorization (or for up to thirty (30)
business days for certain types of debit card
transactions, including but not limited to car rental
transactions and international transactions), we must
release the authorization hold on the transaction. The
available balance will not reflect this transaction once
the hold has been released, which generally occurs
when the transaction has been received by us and paid
from your account. Refer to the section entitled
“Authorization Holds for Debit Card Transactions” below
for information about how authorization holds affect
your available balance.
7.
Finally, your available balance may not reflect the most
recent deposits to your account. Refer to Part III (Funds
Availability) for information regarding the availability for
withdrawal of your deposits. You should not assume
that you can avoid overdrawing your account by making
a deposit before a check or other item is presented for
payment because your deposit may not be immediately
available for withdrawal.
Authorization Holds for Debit Card Transactions
8.
When you use your debit card to pay for goods or
services, the merchant may seek preauthorization from
us for the transaction. When we preauthorize the
transaction, we commit to make the requested funds
available when the transaction finally posts and as such,
we generally place a temporary hold against some or all
of the funds in the account linked to your debit card,
based on the amount of the preauthorization request
from the merchant. We refer to this temporary hold as
an “authorization hold,” and the amount of the
authorization hold will be subtracted from your available
balance as authorization requests are received by us
throughout each day. Until the transaction finally settles,
or we otherwise remove the hold (for example, we may
remove the hold because it exceeds the time permitted,
as discussed below, or we determine that it is unlikely
to be processed), the funds subject to the hold will not
be available to you for other purposes. At some point
after you sign for the transaction, it is processed by the
merchant and submitted to us for payment. This can
happen hours or sometimes days after you signed for it,
depending on the merchant and its processing
company. These payment requests are received in real
time throughout the day and are posted to your account
as they are received.
9.
The amount of an authorization hold may differ from the
actual
transaction
amount
because
the
actual
transaction amount may not yet be known to the
merchant when the authorization request is submitted.
For example, this can happen in connection with
transactions where your debit card is swiped before
your actual transaction amount is known, such as at a
restaurant or gas station (e.g., at a restaurant, you may
choose to add a tip to the transaction amount). For
these types of transactions, there may be no
authorization hold, or the amount of the authorization
hold may be different from the transaction amount. In
some other cases we may not receive an authorization
request from the merchant, and there will be no
authorization hold reflected in your available balance.
We cannot control how much a merchant asks us to
authorize, or when a merchant submits a transaction for
payment.
10.
We are permitted to place an authorization hold on your
account for up to three (3) business days (or for up to
thirty (30) business days for certain types of debit card
transactions) from the time of the authorization or until
the transaction is paid from your account. However, if the
transaction is not submitted for payment, we will release
the authorization hold, which will increase your available
balance until the transaction is submitted for payment by
the merchant and finally posted to your account. If this
happens, we must honor the prior authorization and will
pay the transaction from your account.
11.
In certain instances, when the amount of the
authorization hold is either more or less than the amount
of the actual transaction, we may maintain the
authorization hold even after the purchase amount is
actually paid from your account. However, in these
instances, we will not maintain an authorization hold for
longer than three (3) business days (or for up thirty (30)
business days for certain transactions).
Section 3: How Transactions Are Posted to Your
Account
1.
There are basically two types of transactions in your
account: credits or deposits of money into your account,
and debits or payments out of your account. It is
important to understand how each is applied to your
account so that you know how much money you have
and how much is available to you at any given time. This
section explains generally how and when we post
transactions to your account.
2.
We can receive credit and debit transactions in different
forms at various times each business day. We reserve
the right to determine the timing and order in which such
transactions are posted to your account to extent
permitted by law. We determine the order in which we
process and post credits and debits to your account
based on a number of factors.
3.
We may pay or authorize some transactions and decline
or return others, in any order we deem appropriate to
the extent permitted by law. When the available balance
in your account is not sufficient to cover all of the
transactions presented that day, some posting orders
can result in more returned items and more overdraft
and returned fees than other posting orders.
4.
Some items are received by us individually and others
are received in batches at various times each business
day. Items that we currently receive individually include
ATM withdrawals, point-of-sale (POS) transactions, and
teller transactions. These individual items are generally
posted to your account as they are received by us each
business day. Examples of items that we currently
receive in batches include checks drawn on your
account presented by other financial institutions, and
ACH and debit card transactions. We generally post
batched transactions as they are received throughout
each business day, in the order received (subject to
certain exceptions).
5.
The order in which items are posted to your account will
depend on a number of factors. For example, in
connection with our item posting order for each category
of item(s), (i) establishing different posting orders for
items within each category, and (ii) change the timing of
when items are posted during the day and whether they
are posted individually or in batches. Except to the
extent limited by applicable law, we have the right to
21
change any of the factors described in (i) and (ii) listed
above at any time without notice to you. There are
several types of debit transactions. Each type of debit
transaction is described generally below. Keep in mind
that debits are often presented for payment by
merchants, and the Credit Union is not in control of
when transactions are received.
6.
The foregoing is a general description of how certain
types of transactions are posted. These practices may
change, and we reserve the right to pay items in any
order we choose as permitted by law.
Section 4: Payment of
Overdrafts
1.
We are not obligated to pay any item presented for
payment if your account does not contain sufficient
available funds. If we pay a transaction that overdraws
your account, we are not obligated to continue paying
such transactions in the future. We may pay all, some,
or none of your overdrafts, without notice to you. If we
do not authorize and pay an overdraft, then we decline
or return the transaction unpaid. The Fee Schedule for
your account explains when we charge you fees for
overdraft and for declined or returned items and the
dollar amount of the fees. Please review your Fee
Schedule for your account carefully. You are liable to
us to repay any overdrafts on your account whether
you created them or not. If you do not pay us, and we
take collection action against you, you agree to pay for
our costs of collection. We may close, without notice,
any account with excessive insufficient funds activity,
and report the account to a consumer reporting
agency.
2.
We may assess a fee for each item that we either pay,
which results in an overdraft, or do not pay, which would
have resulted in an overdraft had we paid it. If we pay
an item in accordance with our Courtesy Pay Service
(described in more detail below), we will charge a
Courtesy Pay Fee as disclosed in the Fee Schedule.
3.
We recommend that you enroll in one of the optional
overdraft protection plans described below. These plans
can help you avoid overdrafts and returned items. While
fees apply when you use an optional overdraft
protection plan, the fees under the plan are less
expensive than NSF and Courtesy Pay Fees.
4.
Transfers to Cover Overdrafts:
You understand and
agree that we have the right to transfer available funds
to your checking account from any of your other
account(s) with us (excluding IRAs and certificate
accounts), including account(s) upon which you are a
joint owner, in an amount equal to the overdraft and
related fees.
5.
If we pay an item drawn against insufficient funds on an
account with more than one (1) member on the
Membership Application and Agreement, each member,
and agent if applicable, drawing or presenting the item
creating the overdraft, shall be jointly and severally
liable for such overdrafts including Courtesy Pay or NSF
fees (if any).
6.
NSF Transactions:
We are not obligated to pay any
item presented for payment if your account does not
contain sufficient available funds. If we do not authorize
and pay an overdraft, then we decline or return the
transaction or item unpaid and charge a related NSF
Fee as stated in our Fee Schedule. You are responsible
for ensuring that your account includes sufficient
available funds to pay the transactions you initiate or
authorize when they are processed for payment from
your account, and you also acknowledge that the timing
of when merchants or payees submit transactions to us
for payment may vary.
If your account does not have sufficient available funds
when a transaction or item is presented to us for payment
and, as a result, returned unpaid, the merchant or payee
of your transaction or item may choose to resubmit the
same transaction, and may do so multiple times; this may
also occur when you initiate transfers and payments
through your Credit Union Digital Banking services and
your account lacks sufficient available funds at the time
the transaction is scheduled to occur, as we may decline
the transaction, charge a NSF Fee, and then resubmit
the same transaction at a later time in an attempt to
process your requested transaction. In the event a
transaction or item is resubmitted for payment at a time
when your account lacks sufficient available funds to pay
it and we decline it, we will charge a related NSF Fee for
each such resubmitted item each time that same
transaction is returned unpaid or a Courtesy Pay Fee if a
resubmitted item is paid when your account lacks
sufficient available funds to pay it.
Optional Overdraft Protection Plans
7.
We offer optional Overdraft Protection plans that you
may apply for, such as a line of credit loan account where
your line of credit is used for overdraft protection, and an
Overdraft Protection service where funds from a linked
savings account (such as Savings or Money Market/High
Yield Savings) are used for overdraft protection. If you
qualify for these optional services, we will look first to
these services for overdraft protection before applying
our discretionary Courtesy Pay Service when your
account is overdrawn. The Overdraft Protection service
may save you money on the total fees you pay us for
covering your overdraft transactions.
To learn more, please ask us about these plans.
•
Overdraft Protection Transfer from Personal Line of
Credit:
This is a revolving line of credit, which is
available
to
members
meeting
certain
credit
requirements. With this plan, you authorize us to
automatically advance $100 to cover your overdraft
from your line of credit (linked to your checking account)
to cover your overdraft, up to your credit limit. You must
repay what you have borrowed in full or in minimum
monthly payments (in addition to any late charges,
finance charges and annual fees). If you are approved
for a line of credit, you will be provided with separate
terms and conditions applicable to the loan.
•
Overdraft
Protection
Transfer
from
Savings
Account:
With this service, you authorize us to make
transfers of available funds in
$100 increments automatically from your eligible
savings account to cover overdrafts in your checking
account. Transfers from your savings account are made
in the exact amount of the overdraft. You must request
to enroll in this service.
8.
If you do not have sufficient available credit on your line
of credit or the available funds in your savings account
are not sufficient to pay the overdraft on your checking
account, then you understand that the overdraft may be
paid by our Courtesy Pay Service, subject to the terms
and conditions of the Courtesy Pay Service section
below, if you are eligible for the Courtesy Pay Service.
If you are not eligible for the Courtesy Pay Service, then
the item causing the overdraft will be returned or the
22
transaction denied. If you decline to utilize any of the
optional Overdraft Protection services and you are not
eligible for our Courtesy Pay Service, and there are
insufficient available funds in your checking account to
pay an item, your items will not be paid, they will be
returned, and an NSF Fee will be charged for each item
returned. Transfers will appear on your periodic
statements for each applicable account.
9.
Termination of Optional Overdraft Protection
Plans:
We may terminate optional overdraft protection
services at any time with or without notice to you. Any
owner of the checking account, any owner of a linked
savings account used for overdraft protection, or any
borrower on a personal line of credit account used for
overdraft protection may cancel overdraft protection in
person or in writing. Cancellation will be effective after
we have received notice and have had a reasonable
time to act on it.
Section 5: Courtesy Pay Service
1.
In accordance with our commitment to provide valued
service and benefits, we may, at our discretion, pay
your overdrafts that would cause your eligible checking
account to have a negative balance. We refer to this
service as our Courtesy Pay Service (hereinafter
referred to as the “Service”). The Service is different
than the Overdraft Protection service discussed above.
The Service is a backup to your existing Overdraft
Protection service and will only be activated if funds are
not available from those plans. This Courtesy Pay
Section sets forth the terms and conditions applicable
to the Service.
2.
What Overdraft Transactions are Covered?
The
Service is available only for the payment of checks,
electronic transfers, preauthorized payments under our
Bill Payment Service, recurring debit card transactions,
and ACH drafts and debits. The Service is not available
for ATM transactions and one-time debit card
transactions, unless you opt-in, as described in the
next section below.
3.
Optional Overdraft Transactions:
If you would like to
include ATM transactions and one-time debit card
transactions in the Service, you are required to “opt-in”
(in other words, you must provide us with your
affirmative consent). Choosing not to opt in may result
in these transactions being declined.
You understand and agree that we do not require you
to authorize the Service for your ATM and one-time
debit card transactions as a condition of us providing
the Service to you for the other types of transactions
subject to this Courtesy Pay Service Section. If you
want the Credit Union to authorize and pay overdrafts
for ATM and one- time debit card transactions, you
must provide us with your consent by contacting us
provided in Part II Section 1 Paragraph 18.
You may revoke your authorization to have us pay your
ATM transactions and one-time debit card transactions
at any time. Your decision to opt in does not guarantee
that we will always pay your ATM transactions or one-
time debit card transactions when there are insufficient
available funds in your account to cover the transaction.
4.
Eligibility for the Service:
The Service is not a credit
product and requires no application or credit approval
process; it is a feature that is automatically included with
eligible checking accounts (unless you opt out of the
Service entirely as described below). Eligibility is at the
sole discretion of the Credit Union and is based on you
managing your checking account in a responsible
manner. The Service is available for checking accounts
for which the primary checking account owner is 18 years
of age or older, is in good standing, and the checking
account has been open for at least thirty (30) days with
the applicable minimum balance requirement. We
reserve the right to limit the Service to one (1) account
per household or member. We may suspend or
permanently revoke the Service from your checking
account, in our sole and absolute discretion, based on
any one or more of the following criteria:
•
You are not making regular deposits into your
checking account;
•
You do not bring your checking account toa positive
balance for at least one full business day within a
thirty (30) day period;
•
Your membership is not in good standing;
•
You are more than thirty-one (31) days past due or
are in default in any other respect on any loan or
other obligation to us;
•
You have an outstanding balance due on an
overdraft repayment plan;
•
Your checking account is subject to any legal or
administrative orders or levies;
•
You have insufficient credit or negative credit history;
•
You are a party to a bankruptcy proceeding;
•
Any or all of your account(s) with us are being
reviewed for improper activity or transactions;
•
Your checking account is classified as inactive;
•
You use the Service to pay items written to check
cashing agencies;
•
You have an unresolved prior loss with us;
•
We do not have a valid mailing or email address for
you; or
•
We believe you are not managing your checking
account in a responsible manner which may harm
you or us.
5.
The Service is a benefit. Any payment made by us
under the Service will be made on a case-by-case
basis, in our sole and absolute discretion. The
Service does not constitute an actual or implied
agreement between you and the Credit Union, nor
does it constitute an actual or implied obligation of
the Credit Union. The Service is a privilege that the
Credit Union provides from time to time, and which
may be withdrawn, limited, or withheld by the Credit
Union at any time, without prior notice, reason or
cause.
6.
Limits to Your Use:
The negative balance to which you
can overdraw your account by using the Service is
determined by us in our sole and absolute discretion. We
will generally pay your overdraft items up to a maximum
of $700, including fees; however, you acknowledge and
agree that we reserve the right to further limit the number
and amount of checks or other items/transactions that
may be paid by us through the Service during any given
month.
7.
How the Service is Administered:
In our sole
discretion, we may notify you by mail, or, if you have
agreed to receive notices from us in an electronic format,
you may be notified electronically, of any nonsufficient
funds checks, items or other transactions that have been
paid or returned; however, we are not required to so
notify you. You also acknowledge and agree that we
have no obligation to notify you before we pay or return
23
any check, item, or other transaction. We may refuse to
pay any overdrafts without first notifying you even
though your account is in good standing and even if we
have paid previous overdrafts.
8.
When is the overdraft payment due?
The total of the
overdraft (negative) balance in your checking account,
including any and all fees and charges, is due and
payable upon demand, and you are required to
immediately deposit sufficient funds to cover the
overdraft paid by us and pay the related fees.
9.
Courtesy Pay Fees:
A Courtesy Pay Fee will be
charged to your checking account, in accordance with
our Fee Schedule, for each overdraft that is authorized
and paid through the Service. This means that more
than one Courtesy Pay Fee may be assessed against
your checking account per day depending upon the
number of overdrafts authorized and paid through the
Service. You understand that your Courtesy Pay Limit
will be reduced by the amount of each overdraft paid
by us through the Service and the amount of the
related Courtesy Pay Fee imposed until such amounts
are repaid by you as set forth herein at which time, we
may replenish your Courtesy Pay Limit by the amount
of the repayment. If we choose not to pay the
item/transaction under the Service, you are subject to
an NSF Fee for each such item in accordance with our
Fee Schedule. Your periodic statement will itemize
Courtesy Pay Fees and NSF Fees for each cycle, as
well as the year-to-date total of fees.
10.
Optional Overdraft Protection Plans:
As discussed
in more detail above, we also offer optional overdraft
protection plans, such as a link to a savings account or
a personal line of credit account, which may be less
expensive than our Courtesy Pay Service. To learn
more, please ask us about these plans.
11.
Your Right to Opt Out of the Service:
If you prefer
not to have the Service, contact us as described in Part
II Section 1 Paragraph 18, and we will remove the
Service from your checking account. If you opt out of
the Service, you will still be charged our NSF Fee for
each item returned.
12.
Default:
You will be in default under the terms of this
Part IV if you fail to live up to any of the terms and
conditions set forth herein or you are in default on any
loan obligation with us and/or a negative balance exists
in any deposit account with us on which you are an
owner. If you are in default, in addition to any other
rights we may have, we may temporarily suspend
overdraft or Courtesy Pay privileges, terminate the
Service, or close your checking account and demand
immediate payment of the entire unpaid negative
balance.
13.
Termination; Suspension:
We may terminate or
suspend the Service at any time without prior notice. In
no event will any termination relieve you of your other
obligations under this Agreement, including your
obligations to repay any negative account balance,
overdraft fees, collection costs, and attorneys’ fees, if
any.
Section 6: An Additional Note Regarding Overdraft,
Courtesy Pay Programs
1.
The best way to know how much money you have
and avoid paying overdraft fees is to record and
track all of your transactions closely.
2.
IF YOU DO NOT UNDERSTAND ANY PROVISION IN
THIS PART IV, OR IF YOU HAVE ANY QUESTIONS,
PLEASE CONTACT US AT (800) 232-8101, MONDAY
THROUGH FRIDAY, 6 AMTO 6 PM PACIFIC
STANDARD TIME.
Part V – EFT
This Part V of the Account Agreement sets forth the terms
and conditions governing electronic fund transfers.
Electronic fund transfers (“EFTs”) are electronically initiated
transfers of money involving a deposit account at the Credit
Union and multiple access options, such as online account
access, direct deposits, automated teller machines (ATMs),
and debit card.
Your acceptance, retention, or use of an ATM Card, debit
card, Personal Identification Number (PIN) or other EFT
hereunder constitutes an agreement between us and you to
be bound by the additional terms and conditions contained
in this Part V. Where not in conflict with the terms of this Part
V, the general terms and conditions elsewhere in this
Account Agreement, or such other agreements under which
electronic services may be provided remain in full force and
effect and continue to be applicable, except as specifically
modified by this Part V.
These disclosures are given by us in compliance with the
Electronic Fund Transfer Act (15 USC § 1693 et seq.) and
Regulation E (12 CFR Part 1005) to inform you of certain
terms and conditions for use of the electronic services
described in this Account Agreement.
At the present time, we offer the following electronic services:
•
Preauthorized deposits of net paycheck;
•
Payroll deductions;
•
Preauthorized deposits of pension checks and
federal recurring payments (for example, Social
Security payments);
•
Preauthorized withdrawals for bill payments and
other recurring payments;
•
Automated Teller Machine (ATM) EFT services at
Credit Union- owned (proprietary) ATMs and on
Shared Network ATMs such as the CO-OP Network,
STAR and Plus, and such other systems as may be
added from time to time;
•
Digital Banking
•
Debit Card;
•
Electronic Check Transactions; and
•
Transactions at a Point-of-Sale (POS) terminal
whether or not an access device is used.
General disclosures applicable to all electronic services
offered by us is given below, with certain specific
disclosure information for each service following in
separate sections. In the event that you use a third
party’s services for an ACH or other EFT transaction, you
should
carefully review that third party’s applicable terms and
conditions which will govern use of the third party ACH/EFT
services.
Section 1: General Disclosures Applicable to All
Electronic Services
1.
“Card” means the ATM Card and Debit Card. “Access
Code” means a password or identification number used
to access your account(s) and/or our EFT services. “PIN”
means a personal identification number; you may be
issued a PIN for access to your Card(s) or any other EFT
services.
2.
Your use of the EFT services is subject to our approval.
3.
Business Day Disclosure:
Our business days are
Monday through Friday, except federal holidays. Branch
24
hours and holiday schedules may be obtained through
our website or by contacting us at our general
information line. Our proprietary ATMs are generally
available 24 hours a day, 7 days a week, with minor
interruptions for system maintenance or technical
difficulties. Digital Banking is generally available for your
convenience 24 hours a day, 7 days a week, with minor
interruptions for system maintenance or technical
difficulties, including those of the Internet service
provider and Internet software.
4.
Right to Receive Documentation of Transactions:
a.
Terminal Transfers:
In most cases, you will receive
a receipt at the time you make any transfer to or from
your account using an ATM or when you make a
purchase using a POS terminal. You should retain
this receipt to compare with your statement from us.
Federal law provides that for certain small dollar
transactions at merchant locations, you may not
receive a receipt.
b.
Periodic Statements:
You will receive a monthly
account statement for each month in which an EFT
is made (but at least a quarterly statement if no
transfers are made). You agree to immediately
review each periodic statement mailed or otherwise
made available to you to ensure that each and
every transaction has been authorized by you. Your
failure
to
promptly
report
any
allegedly
unauthorized transaction may result in future
allegedly
unauthorized
transactions
to
be
considered authorized.
c.
Digital Banking Transactions:
You may print a
record of any individual transaction conducted
through Digital banking at any time after the
transaction is completed. A fee may be charged for
such a paper copy as set forth in the Fee Schedule.
5.
In case of errors or questions about your electronic
services transactions:
In case of errors or questions
about your electronic services transactions, notify us
immediately at:
CHEVRON FEDERAL CREDIT UNION
P.O. BOX 4107 CONCORD, CA 94524
Phone: 510-627-5000 OR 800-232-8101
Email: cfcumail@chevronfcu.org
If you think your periodic statement or receipt is wrong
or if you need more information about a transaction
listed on your periodic statement or receipt, you can
also contact us as provided above. We must hear from
you no later than sixty (60) days after we send you the
FIRST periodic statement on which the problem or
error appeared. You must:
a.
Tell us your name and account number;
b.
Describe the error or the transaction you are
unsure about and explain, as clearly as you can,
why you believe it is an error or why you need more
information; and
c.
Tell us the dollar amount of the suspected error.
If you tell us orally, we may require that you send us
your complaint or question in writing within ten (10)
business days.
6.
We will determine whether an error occurred within ten
(10) business days after we hear from you and will
correct any error promptly. If we need more time,
however, we may take up to forty-five (45) days to
investigate your complaint or question. If we decide to
do this, we will credit your account within ten (10)
business days for the amount you think is in error so that
you will have the use of the money during the time it
takes us to complete our investigation. If we ask you to
put your complaint in writing and we do not receive it
within ten (10) business days, we may not credit your
account.
For errors involving new accounts, point-of-sale, or
transactions initiated outside of the United States, we
may take up to ninety (90) days to investigate your
complaint or question. For new accounts, we may take
up to twenty (20) business days to credit your account
for the amount you think is in error. Your account is
considered a “new account” for the first thirty (30) days
after the first deposit is made, unless you already have
an established account with us before this account is
opened.
We will tell you the results within three (3) business days
after completing our investigation. If we decide that
there was no error, we will send you a written
explanation. If we provisionally credited your account,
we will reverse the provisional credit and notify you of
the date we reversed the credit and the amount of the
debit. You may ask for copies of the documents that we
used in our investigation.
7.
Your Liability for Unauthorized Transactions and
Advisability of Prompt Reporting:
Please note that
the term unauthorized electronic fund transfer, also
referred to herein as an unauthorized transfer, has the
same meaning as defined in Regulation E, 12 CFR §
1005.2(m).
You are responsible for all transfers you
authorize using the electronic services described in this
Account Agreement. If you permit other persons to use
your Card, PIN(s), and/or Access Code, you are
responsible for any transactions that person authorizes
or conducts on any of your accounts, even if that person
exceeds your authority. However, you must tell us AT
ONCE if you believe your Card, PIN(s), and/or Access
Code have been lost or stolen or if you believe that an
EFT has been made without your permission using
information from your check. Telephoning is the best
way of minimizing your possible losses. A written
notification to us should follow your telephone call. You
could lose all the money in your account (plus your
maximum overdraft personal line of credit, if you have
one). However, if you believe your Card, PIN(s), and/or
Access Code have been lost or stolen, and you tell us
within two (2) business days after you learn of the loss
or theft, you can lose no more than $50 if someone used
your Card, PIN(s), and/or Access Code to access your
account without your permission.
If you do NOT tell us within two (2) business days after
you learn of the loss or theft of your Card, PIN(s), and/or
Access Code and we can prove we could have stopped
someone from using your Card, PIN(s), and/or Access
Code 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, including those made by Card, PIN or other
means, you must tell us at once. If you do NOT tell us
within sixty (60) days after the statement was mailed or
delivered to you, you may not get back any money you
lost after the sixty (60) days if we can prove that we could
have stopped someone from taking the money if you had
told us in time.
If you can document that a good reason (such as a long
trip or hospital stay) kept you from telling us, we will
25
extend the time period. If you are using a MasterCard
Debit Card for transactions that take place on the
MasterCard network system, the MasterCard Operating
Rules and Regulations provide for zero liability for
unauthorized transactions under certain conditions. You
will be protected for MasterCard Debit Card transactions
processed through the MasterCard network. This does
not apply to transactions that are not processed through
the MasterCard network. These exceptions do not apply
to transactions originating from your negligence and/or
fraudulent use of your Debit Card.
8.
Your Responsibility for Transactions You Authorize
or Initiate: Y
ou understand and agree that you are
responsible for all transfers you authorize.
Transactions that you or someone acting with you
initiate with fraudulent intent are authorized
transactions. You understand and agree that you
will be responsible for all transactions that you
make
and/or
initiate,
including
fraudulent
transactions where you initiate the transaction but
are the victim of fraud, or transactions you initiate
in error.
9.
How to Notify the Credit Union in the Event of an
Unauthorized Transaction:
If you believe your
Card(s), PIN(s), or Access Code(s) have been lost or
stolen or that someone will or may use it to transfer
money from your account(s) without your permission,
you must notify us as provided in Part II Section 1
Paragraph 18 or call the number listed on your Card or
periodic statement.
You should also call the number or write to the address
listed above if you believe a transfer has been made
using the information from your check without your
permission.
10.
Our Liability for Failure to Make or Complete
Electronic Fund Transfers:
If we do not properly
complete an EFT to or from your account on time or in
the correct amount according to our agreement with
you, we may be liable for your losses and damages.
However, there are some exceptions. We will not be
liable, for instance, if:
a.
Circumstances beyond our control (such as fire,
flood, earthquake, electrical failure, malfunction of
central data processing facility, etc.) prevent the
transaction, despite reasonable precautions that we
have taken;
b.
Delays in processing and/or payment are caused by
third-party software and/or services;
c.
Through no fault of ours, you do not have enough
money in your account (or sufficient collected funds)
to complete the transaction(s);
d.
The funds in your account are subject to an
uncollected funds hold, legal process, or other
circumstances restricting such transaction or
payment;
e.
We received incorrect or incomplete information
from you or from third parties (e.g., the U.S.
Treasury, an automated clearing house, or a
terminal owner);
f.
The ATM or network system was not working
properly, and you knew about this breakdown when
you started the transaction;
g.
The ATM where you were conducting the
transaction did not have enough cash or cash in the
denominations you requested;
h.
Your Card, PIN, or Access Code you provide is
incorrect or incomplete, has been reported lost or
stolen, has expired, is damaged so that the
mechanical device cannot read the encoding strip or
chip, is inactive due to non-use, is retained by us
due to your misuse or suspected fraudulent
activities, is retained by us at your request, or your
Card, PIN, or Access Code has been repeatedly
entered incorrectly;
i.
The transaction would exceed an unused line of
credit limit or other account transaction limits;
j.
Our failure to complete the transaction or the
placement of a block on your account is done to
protect the security of your account and/or the
electronic terminal system;
k.
You make an error in keying your deposit at an ATM
or through the Digital Banking system (and if you
make such error, we are not responsible for
bounced checks, forfeited dividends, and other
consequences which may result);
l.
The payee mishandles or delays a payment sent by
the Bill Payment Service;
m.
You have not provided our Bill Payment Service
provider with the correct names, phone numbers, or
account information for those persons or entities to
whom you wish to direct payment; or
n.
Any transaction is prohibited by law, regulation,
court order, or would be considered illegal activity.
There may be other exceptions not specifically
mentioned above. Provided that none of the foregoing
exceptions to the service performance obligations are
applicable, if we cause an incorrect amount of funds to
be debited from your account, or caused funds from
your account to be transferred to a person or entity
which does not comply with your bill payment
instructions, we will be responsible for returning the
improperly transferred funds to your account and for
directing to the proper recipient any previously
misdirected bill payments or transfers.
THE FORGOING CONSTITUTES OUR ENTIRE
LIABILITY AND YOUR EXCLUSIVE REMEDY. IN NO
EVENT WILL WE BE LIABLE FOR ANY DIRECT,
INDIRECT,
SPECIAL,
INCIDENTAL,
CONSEQUENTIAL, OR EXEMPLARY DAMAGES,
INCLUDING LOSS OF PROFITS (EVEN IF ADVISED
OF THE POSSIBILITY THEREOF) ARISINGIN ANY
WAY OUT OF THE INSTALLATION, USE, OR
MAINTENANCE OF ANY EQUIPMENT, SOFTWARE,
AND/OR SERVICE.
11.
PIN and Access Code Use and Security:
You
understand that you cannot use your ATM Card, Bill
Payment Services, or other electronic transactions
contemplated hereunder without the applicable PIN or
Access Code. You are responsible for the safekeeping of
your PIN(s), or Access Code provided by us or selected
by you and for all transactions by use of a PIN or Access
Code. Your use of a PIN or Access Code is your
authorization to us to withdraw funds from your Share
(Savings) account or checking account to cover such
transactions. Your PIN(s) and Access Code are
confidential and should not be disclosed to third parties
or recorded. You will notify us immediately and send
written confirmation if your PINs or Access Code are
disclosed to anyone other than the joint owner of your
account. You understand and agree that you must
26
change the PIN or Access Code immediately to prevent
transactions on your account(s) if anyone not authorized
by you has access to the PIN or Access Code. If you
disclose your PIN(s) or Access Code to anyone,
however, you understand that you have given them
access to your account(s) and you are responsible for
any such transaction. If you authorize anyone to use
your PIN or Access Code in any manner that authority
will be considered unlimited in amount and manner until
you specifically revoke such authority by notifying the
Credit Union and changing your PIN or Access Code
immediately. You are responsible for any transactions
made by such persons until you notify us that
transactions and access by that person are no longer
authorized and your PIN or Access Code is changed.
12.
Card Safety Precautions:
YOU MUST KEEP YOUR
CARD IN A SAFE PLACE AND PERMIT NO
UNAUTHORIZED PERSON TO USE IT. YOU MUST
NOT
DISCLOSE
YOUR
ATM
PIN
TO
ANY
UNAUTHORIZED PERSON OR WRITE IT ON YOUR
CARD, CARRY IT IN YOUR WALLET OR PURSE, OR
OTHERWISE MAKE IT AVAILABLE TO ANYONE
ELSE; YOU WILL IMMEDIATELY REPORT ANY LOSS
OR THEFT OF YOUR CARD. IF YOU AUTHORIZE US
TO ISSUE A CARD (OR ANY OTHER ACCESS
DEVICE) TO ANYONE ELSE, YOU AUTHORIZE THAT
INDIVIDUAL TO WITHDRAWFUNDS FROM YOUR
ACCOUNT(S) WHICH CAN BE ACCESSED BY 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.
13.
All transactions affected by use of Electronic Check
Transactions, Cards, or other electronic transaction
contemplated hereunder which would otherwise require
your actual signature, or other authorization, will be valid
and effective as if actually signed by you when
accomplished
by
use
of
an
Electronic
Check
Transaction, the Card(s) and/or PIN(s), or as otherwise
authorized under this Account Agreement.
14.
Fees for EFTs:
All fees associated with your EFTs are
disclosed in our Fee Schedule. Any fees charged will be
deducted from your checking or savings account. The
Credit Union reserves the right to increase or add new
fees at a future date after we give you notice of such
fees as required by law.
15.
If you have been issued an additional Card for a joint
owner or authorized user on your account, any
applicable transaction fees outlined in our Fee Schedule
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. Generally, transaction
fees will be charged to your account within two (2)
business days from the day they are incurred. The fee
may not be recorded on the transaction receipt
produced by the ATM, but it will be itemized on your
monthly statement.
16.
If you use an ATM that is not operated by us (a “non-
proprietary ATM”), you may be subject to additional
fee(s)
imposed
by
another
financial
institution,
merchant, and/or by an automated transfer network.
You may be charged a fee for a balance inquiry even if
you do not complete a funds transfer. This practice is
known as “surcharging” and is in addition to any ATM
fees charged by us.
17.
The Credit Union may also charge fees as disclosed in
the Fee Schedule for each transaction you perform at
non-proprietary ATMs; for example, if you check your
balance and withdraw money at a non-proprietary ATM,
you will be charged fees for both transactions.
Termination or Suspension of Electronic Services
18.
You may, by written request, terminate any of the
electronic services provided for in this Account
Agreement. Termination by any one account owner will
be binding on all account owners and we are not required
to notify other account owners of the termination;
however, if you ask us to terminate your account or the
use of any electronic service, you will remain liable for
subsequent transactions performed by any other party to
your account. Termination of electronic service(s) does
not terminate your accounts or agreements with us and
will not affect your authorization for transfers and
payments made prior to termination. Upon termination of
electronic services, the Credit Union will endeavor to
cancel any applicable account transactions you have
previously authorized, provided that the Credit Union
makes no guarantee that it will be able to do so.
You will be solely responsible for any fees that apply to
any such cancellation.
19.
We reserve the right to terminate your access to the
electronic services, in whole or in part, at any time and
for any reason. In addition, electronic services may be
suspended, without advance notice, if there are
insufficient funds in any one of your accounts or if any
of your accounts are not in good standing as defined in
Part VII below. After suspension, electronic services
may be reinstated, at our discretion, once there are
sufficient funds in your account(s) to cover any fees and
other transfers and debits.
Section 2: Additional Disclosures Applicable to
ATM Cards and Debit Cards
1.
The disclosures in this section apply to the use of your
Card to conduct EFTs, including, but not limited to, use
of the Card at ATMs and POS terminals. By use of your
Card at a participating POS terminal, you authorize us
to make withdrawals from your designated account for
cash advances and/or purchases. Access to ATMs is
through the use of a Card and a PIN.
2.
Ownership of Card:
The Card remains our property,
and you agree to surrender the Card to us upon
demand. We may cancel, modify, or restrict the use of
any Card upon proper notice or pursuant to the
Limitation of Services provisions in Part VII. We may
also cancel, modify, or restrict the use of any Card
without notice if: (a) any of your accounts have a
negative balance that is not paid within the time
provided in this Account Agreement; (b) you use your
Card in a manner which may cause a loss to us; (c) your
account is inactive, which for the purposes of this
paragraph is defined as an account that has had no
member-initiated transaction activity for one year
(d)
any mail sent to your address is returned to us as
undeliverable;
(e)
any email sent to you by us is returned as
undeliverable; (f) your account has one (1) or more NSF
items or transactions; (g) we are aware that you have
violated any term of this Account Agreement, whether
or not we suffer a loss; or (h) where necessary to
maintain or restore the security of your account(s) or the
POS system. We also reserve the right to recall the
Card through retrieval by any of the ATMs.
27
3.
The following transactions are available when using
the Card and PIN at Credit Union ATMs and at ATMs
whose owners participated in ATM networks to which
the Credit Union belongs:
a.
Deposits to your Savings Account(s), Checking
Account(s), and Money Market/High Yield Savings
Account(s);
b.
Transfers between your Savings Account(s),
Checking Account(s), and Money Market/High
Yield Savings Account(s) and line of credit
accounts;
c.
Get cash withdrawals of up to $500 a day from your
designated
Savings
Account(s),
Checking
Account(s), and Money Market/ High Yield Savings
Account(s) or approved line of credit, not to exceed
the available balance or credit limit;
d.
Obtain Savings Account(s), Checking Account(s),
and Money Market/High Yield Savings Account(s)
or line of credit balances; this may not be available
at all ATMs.
At the present time, we do not charge transaction fees
for your ATM/ debit card transactions at our ATMs.
There also is no transaction charge for the first eight
(8) cash withdrawals per month at an authorized
network ATM, although other institutions may charge a
fee; the fee for cash withdrawals exceeding eight (8)
per month at authorized network ATMs is disclosed in
our Fee Schedule. We also charge a fee equal to our
reasonable cost of production if you request a copy of
the documentation relative to an EFT (except if the
documentation is for resolution of a billing error).
4.
Limitations on Frequency and Dollar Amounts of
Transactions:
For security reasons, in the event your
Card or PIN is lost or stolen, there are limits on the dollar
amount of transactions you can make on the ATM
System. Provided you have enough money in your
savings/checking account(s), you may withdraw up to a
maximum of $500 during any day, including Saturday
and Sunday, when using an ATM. However, the amount
that you 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.
5.
Safety Tips for Using an ATM or POS Terminal:
When using your Card, you should observe the
following precautions:
a.
Be aware of your surroundings, particularly at night;
b.
Consider having someone accompany you when
using the ATM or POS terminal after dark;
c.
Have your Card ready in your hand as you approach
the ATM, rather than waiting to get to the ATM or
POS terminal to take it out of your purse or wallet;
d.
Be careful that no one can see you enter your PIN,
by using your other hand or body to shield the
ATM/POS terminal keyboard as you enter your PIN;
e.
Put away cash as soon as the transaction is
completed, do not display it, and do not count the
cash until later in the safety of your vehicle or home;
f.
If you notice anything suspicious when approaching
the ATM, defer the transaction until later or use
another ATM or POS terminal;
g.
If you notice anything suspicious while transacting
business, immediately cancel the transaction and
put your Card away;
h.
Visually inspect the ATM for possible skimming
devices. Potential indicators can include sticky
residue or evidence of an adhesive used by criminals
to affix the device, scratches, damaged or crooked
pieces, loose or extra attachments on the card slot,
or noticeable resistance when pressing the keyboard;
i.
To keep your account information confidential,
always take your receipts or transaction records with
you; and
j.
Immediately report all crimes to the ATM or POS
terminal operator and local law enforcement officials.
6.
Right to Receive Documentation of Transactions:
Generally, you will receive a receipt at the time you make
an ATM transaction. You should retain this receipt and
compare it with your statement.
7.
Making Electronic Funds Transfers:
You agree to
follow the instructions posted or otherwise given by us
or the Network ATM systems concerning the use of the
ATMs.
8.
You understand and agree that we accept deposits at an
ATM subject to verification and collection by us and such
deposits may only be credited or withdrawn in
accordance
with
our
Funds
Availability
Policy.
Transactions accomplished after the close of business
each day will be deemed to have occurred on our next
business day.
Foreign Transactions and Charges
9.
Purchases and cash advances processed outside of the
United States or in a foreign currency will be billed to your
account in U.S. dollars. The conversion to U.S. dollars
will be made in accordance with [Visa/MasterCard]
operating regulations for international transactions. In the
event that an international transaction is converted to
U.S. dollars, the exchange rate between the transaction
currency and the billing currency used for processing
international transactions will be: (1) a rate selected by
[Visa/MasterCard] from the range of rates available in
wholesale currency markets for the applicable central
processing date, which rate may vary from the rate
[Visa/MasterCard] itself receives; or (2) the government-
mandated rate for the applicable central processing date.
The processing date on which the exchange rate is
applied may differ from the date you used your debit
card. When a credit to the account does not fully offset a
charge to the account due to changes in the rate, you are
responsible for the difference.
We
are
charged
a
Visa
International
Service
Assessment for Visa debit card foreign transactions and
a MasterCard Currency Conversion Assessment and an
Issuer Cross-Border Assessment for your ATM and
debit card transactions settled outside the United
States, and we will pass through (charge) the same fees
to you. Please note that your transactions that are
initiated by you here in the United States (such as over
the Internet) but processed by a merchant in another
country will be subject to these fees even though you
initiated the transaction here in the United States.
Additional Disclosures Applicable to
Point-Of-Sale Transactions
10.
The limitations on dollar amounts of transactions
described hereunder apply to each ATM Card and debit
card for transactions in aggregate on all of your
accounts under the same member number.
11.
You may not stop payment on a completed electronic
Point-of-Sale transaction debiting your account.
12.
Types of Available Transactions and Limits on
28
Transactions:
By use of your Card with your PIN or
signature at a participating POS terminal, you
authorize us to make withdrawals from your checking
account for cash advances and/or purchases. You
understand that overdraft protection may not be
available for such transactions for funds availability or
authorization purposes.
13.
Account Access:
You may use your Card to withdraw
cash from your checking account by way of a cash
advance from merchants, financial institutions, or
others who honor the Card. You understand that your
Card is not a credit card and does not provide “credit.”
14.
Limitations on Frequency and Dollar Amounts of
ATM Card Transactions:
You may make cash
advances and purchases only to the extent that you
have available funds in your checking account subject
to applicable limitations. You understand that the ATM
Card has a cumulative daily transaction limit of $500.
15.
Limitations on Debit Card Transactions:
Debit cards
may be used to access your checking accounts from
any merchant location with point-of-sale terminals
which are members of participating networks. The
merchant may be required to obtain an authorization
from us for any transaction over a certain dollar
amount. The available balance in your account will be
reduced by the amount of any transaction for which the
merchant receives authorization from us, even if we
have not yet received or processed the documentation
evidencing the transaction. When the document has
cleared through us, any hold placed on your account
for the amount of the transaction will be released and
your account will be debited for the amount of the
transaction. We are not responsible if we do not
authorize or if we dishonor other POS, ATM, or check
transactions drawn on your account while a hold is
placed on your account.
16.
Limitations on Frequency and Dollar Amounts of
Debit Card Transactions:
There may be limits on
debit card transactions initiated using a PIN or
signature at a merchant. Please contact us for the
amounts of such limits.
17.
Right to Receive Documentation:
Generally, you will
receive a receipt from the merchant or financial
institution at the time you make a purchase or obtain a
cash advance from your checking or regular savings
account. You should retain these receipts to compare
with your statement.
18.
Card Claims and Transaction Questions:
When you
authorize other parties to debit your account, you are
responsible for these transactions. Thus, you may
have to contact these parties directly if you have
questions or complaints about your transactions. Any
claims concerning property or services purchased with
your Card must be resolved by you directly with the
merchant or seller who accepted the Card. We will not
be able to help you because we only have the
information received from the other party. Any claim or
defense that you assert will not relieve you of your
obligation to pay us the total amount of the sales slip.
You are not permitted to stop payment on any
purchase made through the use of your Card.
19.
Debit Card Purchase Returns and Adjustments:
Any
refund to you by a merchant or seller of goods or
services may be made on a credit voucher signed by
you and submitted to us by the merchant or seller, or
through a cash refund. If a refund is made by credit
voucher, the amount of your credit will be indicated on
your checking account statement.
20.
Use of Debit Card:
The use of your debit card shall be
through PIN activation or your signature. You agree that
all transactions made with your authorized PIN or
signature utilization are made by you, and you accept all
financial liability for such transactions. You also agree to
sign your signature in the space provided on your debit
card for additional security and protection. You agree to
keep your PIN protected as described hereunder.
21.
Transaction Fees:
Merchants and institutions other than
the Credit Union may charge transaction fees for your
transactions with them. These fees will be included in the
amount of the transaction as it appears on your
statement.
Section 3:
Additional
Disclosures
Applicable
to
Electronic Check Transactions
1.
If you have authorized a one-time transfer of funds from
your account via ACH where you have provided a paper
check or check information to a merchant or other payee
in person, by telephone, or via the Internet, to capture the
routing, account, and serial numbers to electronically
initiate the transfer (an “Electronic Check Transaction”),
the following applies to you:
2.
Types of Available Transactions:
You may authorize a
merchant or other payee to make a one-time Electronic
Check Transaction from your checking account using
information from your check to
(1) pay for purchases or (2) pay bills. You may also
authorize a merchant or other payee to debit your
checking account for returned check fees or returned
debit entry fees.
3.
You may make such a payment via ACH where you have
provided a paper check to enable the merchant or other
payee to capture the routing, account, and serial
numbers to 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; whether the check is retained by the
consumer, the merchant, other payee, or the payee’s
financial institution; or you have provided the merchant
or payee with the routing, account, and serial numbers
by telephone or via the Internet to make a payment or a
purchase.
4.
Account Access:
Electronic Check Transactions may
only be made from your checking account.
5.
Limitations on Dollar Amounts of Transactions:
You
may make Electronic Check Transactions only to the
extent that you have available funds in your checking
account.
Section 4: Additional Disclosures Applicable to ACH
Transactions
1.
Account Access:
You may use our ACH services to
make one-time and recurring ACH deposits and
payments. If you schedule your preauthorized payment
due date to occur on a non-business day, it will be sent
out on the next business day.
2.
Types of Transactions:
You may use our ACH services
to perform the following transactions:
•
Make a deposit to your savings or checking account;
•
Pay bills directly from your savings or checking
account in the amounts and on the day, you request;
•
Make loan payments;
•
Authorize a merchant or other payee to make a one-
29
time electronic payment from your checking account
using information from your check to pay bills or pay
for purchases; and
•
Authorize a merchant or other payee to debit your
checking account for returned check fees or
returned debit entry fees.
All payments and deposits are subject to later
verification by us.
3.
Direct Deposit:
If you have arranged to have direct
deposits made to your account at least once every sixty
(60) days from the same person or company, you can
call us at 510-627-5000 or 800-232- 8101 to find out
whether or not the deposit has been made. For
accounts that can only be accessed by preauthorized
or direct deposits, we will provide a periodic statement
to you at least monthly.
4.
Right to Stop Payment and Procedure for Doing
So:
You can place a stop payment on a recurring
payment – Here is how:
Call or write us at the telephone number or address
listed in this Agreement in time for us to receive your
request three (3) business days or more before the
payment is scheduled to be made. If you call or tell us
orally, we may also require you to put your request in
writing and get it to us within fourteen (14) days after
you call, or the stop payment order will cease to be
binding. We will charge you a fee for each stop
payment order you give as set forth in our Fee
Schedule.
If you stop payment on a preauthorized payment from
your account and that payment is a recurring debit, the
stop payment applies only to that particular payment.
You are not revoking authorization for the third party to
receive the recurring payment. If you have requested
to
cancel
the
entire
preauthorized
payment
authorization, you understand and agree that you must
also contact the third party to cancel (revoke) the entire
preauthorized payment authorization and provide us
with a copy of your written revocation notice to the third
party.
5.
Initial Authorization:
You can get copies of the
preauthorized payment documentation from the payee
at the time you give them the initial authorization.
6.
Notice of Varying Amounts:
If recurring payments
vary in amount, the payee is required to tell you the
amount and date of the next payment at least ten (10)
days before the payment due date. You may choose to
get this notice from your payee only when the payment
would differ by more than a certain amount from the
previous payment or when the amount would fall
outside certain limits that you set.
7.
Our Liability for a Failure to Stop Payment:
If you
place a stop payment order three (3) or more business
days or more before the transfer is scheduled, and we
still pay, we will be liable for no more than the amount
of payment.
PART VI – FUNDS TRANSFER AGREEMENT AND
NOTICE
1.
This Funds Transfer Agreement and Notice (“Funds
Transfer Agreement”) contains several notices which
the Credit Union is required to provide to you and
establishes other terms of agreement which will apply
to all funds transfers which involve you and the Credit
Union, as governed by Uniform Commercial Code and
federal Regulation J, Subpart B. Using the Credit Union
to send or receive funds transfers shall constitute your
acceptance of all of the terms and conditions contained
in this Funds Transfer Agreement.
To the extent that the terms contained in this Funds
Transfer Agreement are different than those in any other
agreement or terms of account, this Funds Transfer
Agreement shall control and be deemed to modify such
other agreements or terms of account, this Funds
Transfer Agreement shall control and be deemed to
modify such other agreements or terms of account. If
any part of this Funds Transfer Agreement is invalid,
illegal, or unenforceable, the remaining provisions shall
remain in full force and effect.
2.
This Funds Transfer Agreement applies to Funds
Transfer as defined in the Article 4A of the Uniform
Commercial Code and Subpart B of Regulation J of the
Board of Governors of the Federal Reserve. This law
and regulation cover the movement of funds by means
of wire transfers, Automated Clearing House (ACH)
credits and some book transfers on the Credit Union’s
records.
3.
The Credit Union may establish or change cut-off times
for the receipt and processing of funds transfer requests,
amendments
or
cancellations.
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.
4.
We may charge your account for the amount of any funds
transfer initiated by you or by any person authorized by
you 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 (collectively, your “Authorized
Agents”). You must provide us with a complete list of your
Authorized Agents at the time the funds transfer is
initiated, as only you and your Authorized Agents will be
permitted to initiate funds transfers from your accounts at
the Credit Union. You understand and agree that you are
fully responsible for all transactions conducted by your
Authorized
Agents,
regardless
of
whether
such
transactions are authorized by you or exceed the
amounts of any transaction authorized by you. You must
promptly notify the Credit Union of any changes in your
Authorized Agents by providing written notification of
such change. Changes in Authorized Agents by you shall
be effective the business day following receipt of written
notice or a new Funds Transfer Agreement.
5.
The Credit Union may establish, from time to time,
security procedures to verify the authenticity of a
payment order. You understand and agree that the Credit
Union may amend the security procedure(s). You will be
notified of the security procedure, if any, to be used to
verify payment orders issued by you or for which your
account will be liable. You agree that the authenticity of
payment orders may be verified using the security
procedure(s) unless you notify the Credit Union in writing
that you do not agree to the security procedure(s). In that
event, we shall have no obligation to accept any payment
order from you or the Authorized Agents on the account
until you and we agree, in writing, on an alternative
security procedure. Provided we comply with security
procedure(s), you will be liable for payment of the
transferred amount plus transfer fees, even if the transfer
request was not actually transmitted or authorized by
you. If we do not follow the security procedure(s) but can
prove the transfer request was originated by you, you will
30
still be liable for the transfer amount plus transfer fees.
You authorize us to record electronically or otherwise
any telephone calls relating to any transfer under this
Funds Transfer Agreement.
6.
If you send or receive a wire transfer, Fedwire may be
used. Regulation J is the law governing all Fedwire
transactions. This means that your rights and liabilities
with regard to a wire transfer involving Fedwire will be
governed by Regulation J. We shall be excused from
delaying or failing to execute a funds transfer if it would
result in us exceeding any limitation on our intra-day net
funds position established through the Federal Reserve
guidelines or if it would result in violating any present or
future risk control program of the Federal reserve or a
rule or regulation of other governmental regulatory
authorities.
7.
If you give the Credit Union a payment order which
identifies the beneficiary (receipt of the funds) by both
name and identifying account number, payment may be
made by the beneficiary’s financial institution on the
basis of the identifying account number, even if the
number identifies a person different than the named
beneficiary. This means that you will be responsible to
us if the funds transfer is completed on the basis of the
identifying account number you provided to us.
8.
If you give us a payment order which identifies an
intermediary or beneficiary’s financial institution by both
name and an identifying number, a receiving bank may
rely on the number as the proper identification even if it
identifies a different person/entity than the named
financial institution. This means that you will be
responsible for any loss or expense incurred by the
receiving financial institution, which executes or
attempts to execute the payment order in reliance on the
identifying number you provided.
9.
We shall not be liable for acts or omissions by you or
any other person including, without limitation, any
funds transfer system, any Federal Reserve Bank, any
beneficiary’s financial institution, and any beneficiary,
none of which shall be deemed our agent.
10.
We may give you credit for ACH payments before we
receive final settlement of the funds transfer. Any such
credit is provisional until we receive final settlement of
the payment. You are hereby notified and agree, if we
do not receive such final settlement, that we are
entitled to a refund from you of the amount credited to
you in connection with that ACH entry. This means that
we may provide you with access to ACH funds before
we actually receive the money. However, if we do not
receive the money, then we may reverse the entry on
your account, and you would be liable to repay us.
11.
ACH transactions are governed by operating rules of
the National Automated Clearing House Association.
In accordance with these rules, we will not provide you
with next day notice of receipt of ACH credit transfers
to your account. You will continue to receive notices of
receipt of ACH items in your periodic account
statements.
12.
If we receive a funds transfer for you or for other
persons authorized to have access to your account,
you agree that we are not obligated to provide you with
next day notice of the receipt of the funds transfer. We
will provide you with notification of the receipt of all
funds transfers by including such items in your periodic
account statements. You may, of course, inquire
between receipts of periodic statements whether or not
a specific funds transfer has been received.
If we receive notice that a wire transfer transmitted by
us has been rejected, we shall notify you of such
rejection including the reason given for rejection by
telephone, electronic message, or U.S. mail. We would
have no further obligation to transmit the rejected wire
transfer if it complied with this Funds Transfer
Agreement with respect to the original transfer request.
Except to the extent required by applicable law, you
shall have no right to cancel or amend any transfer
request after it is received by us; however, we shall use
reasonable efforts to act on a cancellation or change
request as long as it is received from you in accordance
with the agreed-upon security procedures. We shall
have no liability if the cancellation or change is not
affected.
13.
If we become obligated under Article 4A to pay interest
to you, you agree that the rate of interest to be paid shall
be equal to the dividend rate, on a daily basis,
applicable to the account at the Credit Union to which
the funds transfer should have been made or from which
the funds transfer was made.
14.
We may, in our sole discretion, reject any funds transfer
request which (1) exceeds the collected and available
funds on deposit in your designated account(s); (2) is
not authenticated to our satisfaction or which we
reasonably believes may not be authorized by you; (3)
contains
incorrect,
incomplete,
or
ambiguous
information;
(4) involves funds subject to a lien, hold, dispute or legal
process pending their withdrawal; or (5) involves a
transfer that is prohibited under applicable law, rule, or
regulation. You understand and agree that we shall
incur no liability for any loss occasioned by our refusal
to accept any funds transfer order.
15.
We shall have the right to charge the amount of any
funds transfer request to any of your accounts at the
Credit Union 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 the funds transfer
request. We may charge a service fee for services
relating to the sending or receiving of the funds transfer
request.
Such fees are set forth in the Credit Union’s Fee
Schedule, which accompanies this Funds Transfer
Agreement and is incorporated by this reference.
16.
If you initiate a funds transfer request denominated in
United States dollars for transfer to a foreign country, we
may transfer payment in the currency of the beneficiary
bank’s country at our buying rate of exchange to United
States dollars. If the transfer is returned for any reason,
you agree to accept the refund in United States dollars in
the amount of the foreign money credit, based on the
then-current buying rate of the bank converting the
currency to United States dollars at the date of refund,
less any charges and expenses we incur.
17.
Except as expressly prohibited by applicable state and
federal laws and regulations, you understand and agree
that we 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 which we failed to abide by the agreed upon
security procedures) which you fail to report to us within
thirty
(30) days after your receipt of notification of the transfer;
(2) any negligent or intentional action or inaction on the
31
part of any person not within our 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) your negligent or intentional action or
inaction and/or breach of this Funds Transfer
Agreement; (5) any ambiguity or inaccuracy in any
instruction given to us by you or your Authorized Agent;
or (6) any error, failure or delay in execution of any funds
transfer instruction, or cancellation or amendment
caused by circumstances beyond our reasonable
control, including, but not limited to, any computer or
communication facilities malfunction.
18.
Except as otherwise provided by applicable state or
federal laws or regulations, our liability for any negligent
or intentional action or inaction in connection with any
funds transfer request shall be limited to your direct loss
and
payment
of
interest.
UNDER
NO
CIRCUMSTANCES SHALL WE BE LIABLE FOR ANY
LOST
PROFITS,
CONSEQUENTIAL,
INDIRECT,
PUNITIVEORSPECIAL DAMAGES WHICH YOU MAY
SUFFER
IN
CONNECTION
WITH
THISAGREEMENTAND/ORANYFUNDSTRANSFERR
EQUEST.
19.
Subject to applicable state and federal laws and
regulations, we may amend the terms of this Funds
Transfer Agreement at any time. By thereafter using or
continuing to use our funds transfer services, you agree
to such amendments.
PART VII – MEMBER CONDUCT, LIMITATION OF
SERVICES, and EXPULSION POLICY
Section 1: General Provisions
1.
The privilege of Credit Union services available to
members must be reserved for members who are in
“good standing.” The purpose of this policy is to (1)
protect the Credit Union’s employees, volunteers and
members from abusive members; (2) protect the Credit
Union from fraudulent activity; (3) safeguard member
assets; and (4) mitigate the risk of Credit Union losses.
To this end, this Part VII addresses standards of
member conduct in order to assure the rights and
protection of the Credit Union’s employees, volunteers
and members.
2.
The Credit Union’s good reputation is due in large part
to the loyalty, commitment and continued efforts of its
employees, volunteers and members. The Credit Union
is committed to treating its employees, volunteers and
members with respect and is committed to maintaining
a workplace free from unacceptable conduct from any
source. Failure to comply with the terms of this Account
Agreement or behavior which does not comport with
these standards for member conduct may result in
consequences, as discussed in this Part VII.
3.
“Cause” for expulsion or limitation of services, as
provided in sections 3 and 4 below,
a.
substantial or repeated violation of this Account
Agreement;
b.
substantial or repeated disruption, including
dangerous or abusive behavior, to the Credit
Unions operations;
c.
fraud, attempted fraud, or a conviction of other
illegal conduct that a member has been convicted
of in relation to the Credit Union, including in
connection
with
Credit
Union
employees
conducting business on behalf of the Credit Union.
Other actions we can take are included in section 5. This
Part VII is not an exhaustive list of actions and remedies
available to us in the event of misconduct.
4.
This Part VII extends to any person who seeks member
services whether directly or indirectly through a Credit
Union account. This policy also applies to any person,
including but not limited to any joint account owner, who
has access to Credit Union services directly or indirectly
through you. Your services may be limited if necessary
to limit the services of a person accessing accounts or
services through your accounts.
5.
This Part VII also extends to conduct at any Credit
Union Service Centers Network or any other shared-
branching network.
Section 2: Definitions
1.
“Cause” is defined as (a) a substantial or repeated
violation of this Account Agreement; (b) a substantial or
repeated disruption, including dangerous or abusive
behavior, to the Credit Union’s operations; or (c) fraud,
attempted fraud, or a conviction of other illegal conduct
that a member has been convicted of in relation to the
Credit Union, including in connection with Credit Union
employees conducting business on behalf of the Credit
Union.
2.
“Dangerous or abusive behavior” means the following:
(1) violence, intimidation, physical threats, harassment,
or physical or verbal abuse of officials or employees of
the Credit Union, members, or agents of the Credit
Union. This only includes (a) actions while on Credit
Union premises or otherwise related to Credit Union
activities, and through use of telephone, mail, email, or
other electronic method; (b) behavior that causes or
threatens damage to Credit Union property; or (c)
unauthorized use or access of Credit Union property.
The following is a non-exhaustive list of examples of
types of behavior that may be viewed as “abusive” or
“dangerous” by the Credit Union:
•
Any threats of or actual bodily harm or illegal activity
against another member or an employee or
volunteer engaged in Credit Union business.
•
Any form of action which may constitute harassment
under the Credit Union’s harassment policy. For
example:
•
Any type of harassment, including age, sexual,
ethnic, or racial harassment; making racial or ethnic
slurs, engaging in sexual conduct; making sexual
overtures.
•
Inappropriate touching.
•
Making sexual flirtations, advances or propositions;
engaging in verbal abuse of a sexual, racial or ethnic
nature; making graphic or degrading comments
about an individual or his or her appearance.
•
Displaying sexually suggestive objects or pictures.
•
Fighting, kicking or other physical harm or attempted
harm towards a Credit Union member, employee or
volunteer engaged in Credit Union business. For
example:
•
Engaging in offensive or abusive physical contact.
•
Making false, vicious or malicious statements about
any Credit Union employee or volunteer or the
Credit Union and its services, operations, policies,
practices, or management.
•
Using profane, abusive, vulgar, intimidating or
threatening language directed towards a Credit
Union member, employee or volunteer engaged in
32
Credit Union business.
•
Bringing or possessing firearms or weapons or any
hazardous or dangerous device on Credit Union
premises or at a Credit Union function or on the
premises of any Credit Union Service Centers
Network.
•
Possession, sale, use or being under the influence
of an unlawful or unauthorized substance (e.g.,
drugs or alcohol) on Credit Union premises or at a
Credit Union function or on the premises of any
Credit Union Service Centers Network.
•
Attempting to coerce or interfere with a Credit Union
employee or volunteer in the performance of their
duties at any time.
•
Conducting or attempting to conduct or engage in
any fraudulent, dishonest or deceptive activity of any
kind involving Credit Union employees or Credit
Union services.
•
Any posting, defacing, or removing notices or signs
on Credit Union premises, or writing on Credit Union
bulletin boards without management authorization.
•
Appropriation or misappropriation of Credit Union
funds, property or other material proprietary to the
Credit Union.
•
Deliberate or repeated violations of security
procedures or safety rules.
•
Any other act which endangers the safety, health or
well-being of another person or which is of sufficient
magnitude that it causes disruption of business at
the Credit Union.
Section 3: Expulsion
The Credit Union may terminate your membership in the
Credit Union in one of three ways. The first way is through
a special meeting. Under this option, the Credit Union may
call a special meeting of the members, provide you an
opportunity to be heard, and obtain a two-thirds vote of the
members present at the special meeting in favor of your
expulsion. The second way to terminate your membership
is under a nonparticipation policy given to each member
that follows certain requirements. The third way to terminate
your membership is by a two-thirds vote of a quorum of the
directors of the Credit Union for Cause.
Before the board votes on an expulsion, the Credit Union
must provide written notice to your mail address (or email,
if applicable) on record or personally provide the written
notice. The Credit Union must provide the specific reasons
for the expulsion and allow you an opportunity to rebut
those reasons through a hearing if you choose. It is your
responsibility to keep your contact information with the
Credit Union up to date, and to open and read notices from
the Credit Union. Unless the Credit Union determines to
allow otherwise, there is no right to an in-person hearing
with the board. If you fail to request a hearing within sixty
(60) calendar days of receipt of the notice, you will be
expelled. You may submit any complaints about your
pending expulsion or expulsion to NCUA’s Consumer
Assistance Center if the complaint cannot be resolved with
the Credit Union.
The Credit Union will confirm any expulsion with a letter with
information on the effect of the expulsion and how you can
request reinstatement. Expulsion or withdrawal from
membership does not relieve a member of liability to the
Credit Union, and the Credit Union may demand immediate
repayment of the money you owe to us after expulsion,
subject to any applicable contract terms and conditions.
For additional information on expulsion and a copy of our
expulsion policy, see Article XIV of the Credit Union’s
Bylaws. A copy of our Bylaws can be obtained by contacting
the Credit Union at 1-800-232-8101 or in a branch.
Section 4: Limitation of Services
1.
Cause for expulsion can also or instead be cause for
limitation of services under this Section 4. Any or all of
the following actions may be imposed for Cause:
a.
Denial of any or all services other than the right to
maintain a non- dividend bearing savings account
and the right to vote at annual and special meetings.
b.
Preclusion from personal contact with Credit Union
employees or volunteers such that Credit Union
services may be available only through written
communication through the U.S. mail, ATM, Digital
Banking, or other remote access device designated
by Credit Union Senior Management.
c.
Preclusion from access to the Credit Union premises.
d.
Preclusion from access to any Credit Union Service
Centers Network or any other shared-branching
network and revoking any shared branching
privileges.
e.
Limiting or denying you access to electronic banking
services, which include, but are not limited to,
ATM/debit card usage or Digital Banking.
f.
Taking any other action deemed appropriate under
the circumstances that is not precluded by NCUA
Rules and Regulations, the Credit Union’s Bylaws or
other applicable federal or state law.
2.
These limitations will not prohibit you from exercising
your rights under federal or state law or regulation.
Section 5: Other Actions We Can Take
1.
We may also take other actions not prohibited under
applicable law that we deem appropriate or expedient in
order to collect on loans, contact you, cause you to
contact us for loan or account servicing purposes, stop
misuse of individual services, or stop your use of
specifically impacted services from imposing undue
burdens on our operations. This may include turning off
specific electronic functionalities or access devices, or
refusing to reissue access devices or credentials. Such
individual and specific actions shall not be considered
limitation of services, and need not be for Cause.
2.
In order to encourage you to contact us, in the event that
we have been unable to contact you regarding a
delinquent negative deposit balance or loan payment,
we may limit your access to remote, card, electronic, or
automatic payment services until you contact us and/ or
provide us with your contact information in accordance
with this Account Agreement and any applicable loan
document.
3.
In the event that you are delinquent in your obligations
to us to the extent that the Credit Union incurs material
expenses, we may limit your access to remote, card,
electronic, or automatic payment services in order to
reduce the expense related to your accounts and
reduce the cost to you or the Credit Union of later
collections activity.
4.
As provided above, we or you may close any of your
account(s) at any time. If an account is closed, we may
send the collected balance on deposit in your account
less any fees, claims, setoffs, or other amounts you are
responsible for, by regular mail to your most recent
address shown in our records. Items presented for
payment after the account is closed may be dishonored.
33
5.
You acknowledge and agree that any threats of bodily
harm or any other illegal activity against any Credit
Union employee, volunteer or other member will be
reported to appropriate federal, state and/or local
authorities.
6.
Nothing in this Part VII limits the Credit Union’s from
taking administrative or actions on individual accounts,
loans, or services with respect to collections or other
normal account administrative activity.
Chevron Federal Credit Union Mailing Address:
Chevron Federal Credit Union
P.O. Box 4107
Concord, CA 94524
For inquiries or general information, contact us
at: 510-627-5000 or 800-232-8101
34
FORM CHEV-00016WHQ REV 7/25
00133-4735
