This is the Agreement between you (the “member”) and FINANCIAL PLUS FEDERAL CREDIT UNION (“Credit Union”), a Federally Chartered Credit Union, of Flint, Michigan, regarding your accounts with the Credit Union. By establishing a membership account with the Credit Union, you agree that this Agreement is a binding contract between you and the Credit Union.
You should retain a copy of the Agreement and feel free to contact the Credit Union if you have any questions. This Agreement also includes certain disclosures required under the National Credit Union Administration and Federal Reserve Board regulations and commentary, the Electronic Fund Transfer Act (Regulation E), the Michigan Electronic Funds Transfers Act, the Funds Availability Act (Regulation CC), the Reserve Requirements of Depository Institutions Regulation D, the National Credit Union Administration (NCUA) Rules and Regulations Part 707 (Truth-In-Savings Act), Part 716 (Privacy of Consumer Financial Information), Part 717 (Fair Credit Reporting) and Part 748 (Safeguarding Member Information), and Uniform Commercial Code Article 4A. The words “you” and “your” mean the member and any joint owners or co-depositors or co-borrowers. The words “we”, “our”, “us”, and “Credit Union” mean the FINANCIAL PLUS FEDERAL CREDIT UNION.
I. MEMBERSHIP
A. Generally. Membership in Financial Plus Federal Credit Union is open to applicants within the field of membership as described in Section 5 of the Credit Union’s charter. A copy is available on request.
Membership in the Credit Union is a lifetime membership provided that you keep your membership in good standing. The Federal Credit Union Act provides that “once a member, always a member” so that even if you retire, change jobs (outside the field of membership) or move to a new location, you may remain a member of the Credit Union. Only members in good standing may receive the benefits and services of the Credit Union.
B. Becoming a Member. To become a member of the Credit Union, you must complete a Membership Application and Signature Card and open a Regular Share Account. The basic share deposit that you must always keep in your Regular Share Account to retain membership is $5.00. If your Regular Share Account balance drops below the $5.00 minimum membership deposit requirement and is not replenished within forty-five (45) calendar days, as provided in the Credit Union’s Bylaws, your account will be charged a Membership Termination Fee equal to your account balance at that time and your membership will be terminated.
C. Valid Photo Identification. The USA PATRIOT Act requires the Credit Union to safeguard your account when you open, access, transact business with, or close your account. To comply with this federal law, we will request that you present a valid, unexpired government-issued identification bearing a photograph. Failure to provide such identification may limit the services we can provide you and may delay the availability of your funds (refer to Section XIII, Funds Availability Policy).
II. OUR PRIVACY POLICY
AT FINANCIAL PLUS FEDERAL CREDIT UNION, WE TAKE YOUR PRIVACY SERIOUSLY.
Financial Plus Federal Credit Union is owned by its members and run by a Board of Directors elected by its members. The privacy and confidentiality of your personal information is a top priority. We are required by law to provide you with this notice to inform and explain how we collect, use, and safeguard your personal financial information. If you have any questions about this disclosure or what it says, please contact the Credit Union at (810) 244-2200 or toll free (800) 748-0451.
Information We Collect About You
We collect information from membership and other product/service applications. We obtain information such as, but not limited to, your name, address, social security number, employer, income, and account information at other financial institutions.
We collect information from transactions with us and other companies we work with to provide you with products and services. We obtain information such as account balances, payment histories, parties to transactions, and credit card usage. From consumer reporting agencies we obtain information related to your creditworthiness.
From census data providers, we obtain information to develop competitive marketing programs for our members.
Information We Share About You
We disclose information we collect about you, under certain circumstances, and as permitted or required by law. The disclosure of this information typically includes processing transactions on your behalf, as you authorize, to provide you with a product or service; to conduct the operations of this Credit Union; and to protect the security of our financial records.
We sometimes disclose the information we collect about you with other organizations to provide you with certain products and services. In some cases, we enter into agreements with third parties to provide these products and services to you on our behalf or to jointly market products and services. To protect your privacy, we only do business with companies that agree in writing to maintain strong confidentiality protections. We restrict these companies to using your information only for the reason we have given to them, and for no other purpose.
We do not disclose any nonpublic personal information about former members, except as permitted or authorized by law.
How We Protect Your Information
Under no circumstances do we provide any information we collect about you to telemarketers or other third parties that do not act on your behalf as a member of this Credit Union. We maintain the confidentiality of the personal financial information we obtain from all users of our ATMs.
We restrict access to nonpublic personal information about you to only those employees, Board of Directors and Committee members who have a specific business purpose for accessing and utilizing this information, all of whom are trained in the importance of maintaining confidentiality and member privacy. We maintain physical, electronic and procedural safeguards as part of a comprehensive risk management system that complies with federal regulations to protect against anticipated threats or hazards to the security of your information and to protect against unauthorized access and use of that information.
If you discover inaccurate records related to any of your transactions with the Credit Union, or believe an unauthorized person has accessed your account or obtained access information, such as a Personal Identification Number (PIN) or password, contact us immediately so that we may take appropriate action.
III. DIVIDENDS/INTEREST
A. Rate and Annual Percentage Yield (“APY”). Your account(s) will earn what are known as dividends. Refer to our current Investment Rates schedule for our current dividend rates and Annual Percentage Yield. Dividends are like interest, except that the Credit Union’s Board of Directors (the “Board”) are responsible for setting the rate of dividends from time to time. Dividends are not guaranteed. The Credit Union estimates a prospective dividend rate and prospective Annual Percentage Yield (APY) on your account(s) for each dividend period. The dividend rates and APYs will be available each business day at our office. You may also contact us at (810) 244-2200 or toll-free (800) 748-0451 for rate information.
B. Calculating and Compounding Dividends and Interest. Dividends and interest are calculated by the daily balance method, which applies a daily periodic rate to the balance in an account each day. We compound your dividends, even though the law doesn’t require that. Compounding is more favorable to you, because once dividends have been earned by your account they are added to the balance on which you will continue to earn dividends. Because we compound dividends, the actual yield on your account will be somewhat higher than the annual dividend rate.
C. Accrual and Crediting of Dividends. Dividends on all accounts that earn them are paid from current income and available earnings, after required transfers to reserves at the end of a dividend period. Dividends will begin to accrue on the business day you deposit non-cash items (for example, checks) to your account. Dividends are not available to you until they have been credited to your account. Dividends that are credited to your account will be added directly into your account. If you close your account before dividends are paid, you will not receive the accrued dividends.
D. How Withdrawals Affect Dividends/Interest. Even though your account earns dividends every day, we don’t actually credit them to your account until the final day of the dividend period, and become available the first day of the subsequent period. Therefore, if you make a withdrawal, you won’t receive any further dividends on that amount from the day you make the withdrawal until the day that dividends are credited.
IV. ACCOUNT TERMS AND CONDITIONS
The following paragraphs apply to all accounts opened with the Credit Union, except as specifically expressly modified elsewhere in this Agreement.
A. Accounts Not Transferable. None of your accounts is transferable, except on the Credit Union’s books and records.
B. Agency Designation on an Account. An agency designation on an account is an instruction to us that the owner authorizes another person to make transactions as agent for the account owner regarding the accounts designated. An agent has no ownership interest in the account(s) or Credit Union voting rights. We have no duty to inquire about the use or purpose of any transaction made by the agent, but we reserve the right to deny any withdrawal request. Account owners agree to hold the Credit Union harmless for any loss resulting from any withdrawal from an agency account.
C. Agreement. This Agreement shall be effective and shall govern all deposit accounts with us. By signing a signature card, making deposits or withdrawals, or leaving amounts on deposit, you agree to the terms of this Agreement, effective immediately. This Agreement shall supersede all previous agreements for such accounts.
1. Amendment. We may change any of the terms of this Agreement at any time without prior notice to you if the change is favorable to you. We may make changes that are adverse to you only if we provide you with any notice required by law or required in this Agreement. You may close the account if you do not agree to the changes; if you continue to use the account or keep the account open after the effective date of such change, you will be deemed to have agreed to the changes.
2. Section Headings. Section headings in this Agreement are for convenience of reference only and shall not govern the interpretation of any of the provisions of this Agreement.
3. Governing Law. This Agreement shall be governed by the laws, including applicable principles of contract law, and regulations of the State of Michigan, except as superseded by federal laws and regulations, by the Credit Union’s Bylaws, and by local clearinghouse rules. Unless prohibited by applicable law, any action brought pursuant to this Agreement against the Credit Union must be brought in the local State District Court or State Circuit Court in the jurisdiction of the Credit Union’s main office.
4. Severability. If any of this Agreement is found by any other court or regulatory body of competent jurisdiction to be invalid or unenforceable in whole or in part for any reason whatsoever, the authority of the remaining provisions or portions hereof shall not be affected thereby.
D. Endorsement. All endorsements placed on the reverse side of any check or draft which you deposit to your account must be placed so that they are on the left side of the item when looking at it from the front and must be placed so they do not go beyond an area located 1½ inches from the left edge of the item when looking at it from the front. The Credit Union may refuse to accept any item that does not meet this requirement, and, if the Credit Union does accept it, you agree that you are completely responsible for any loss we incur which is premised on an endorsement not meeting this requirement, including any court costs and reasonable attorney fees.
E. Fees. Any account may be subject to fees in accordance with the Fee Schedule adopted by the Credit Union from time to time. You agree to pay us fees in connection with your accounts in accordance with the Fee Schedule then in effect. We will provide advance notice of any increase in current fees, or any new fees, as required by law. We may deduct any fees owed from any of your accounts. We reserve the right to waive any fees in our sole discretion. Fees may reduce earnings on any of your accounts.
F. Final Credit for Deposits. All deposits are subject to proof and verification. If you deposit a check, draft or other non-cash item, we have the right to clear it before we make the money available to you subject to applicable federal regulations. If there are special fees for collecting your deposit, you promise to pay them (see the Fee Schedule for a list of fees). We may deduct them directly from your account. If we feel there is an objective reason to do so, we may refuse, limit or return any deposit. We reserve the right to refuse to accept any deposit and we specifically reserve the right to refuse to accept checks for deposit that have more than one endorsement. We reserve the right not to pay interest or dividends on amounts subject to garnishment, levy or other legal process; and we reserve the right not to pay interest or dividends on any deposit that is returned to us unpaid by the financial institution on which it is drawn (even if that means a reversal of credited interest or dividends).
G. Funds Availability. If you make a non-cash deposit into any share account other than a Share Draft Checking Account, that money may not be available to you right away. We will advise you when such funds will be available at the time you make such a deposit. A minimum hold of at least three (3) days will apply to any personal check presented and accepted for deposit within the first 30 days an account, other than a Share Draft Checking Account, is opened. We reserve the right to shorten or extend all such holds at our discretion. If you make a deposit by authorizing us to receive funds from another account (for example, from a savings account at another credit union or bank), that deposit will not be available, nor will it earn dividends, until we actually receive the funds. Refer to the Funds Availability Policy (Section XIII below) for information regarding the availability of funds deposited into Share Draft Checking Accounts.
H. Inactive Accounts. The Credit Union will consider an account inactive after one year of no deposits or withdrawals on the account(s), and will access a fee to your account(s) each month thereafter (see the Fee Schedule for a list of fees). This excludes interest or dividends credited to your account by the Credit Union. The Michigan Unclaimed Property Act requires the Credit Union to turn these funds over to the State after five years of no activity. The Credit Union may voluntarily turn these funds over to the State of Michigan after two years. Before turning funds from inactive accounts over to the State of Michigan, the Credit Union will send notices as required by Michigan law advising you of your rights.
I. Joint Accounts. Members should plan carefully and completely when choosing to enter into a joint account relationship. If two or more parties have signed a Signature Card, you are creating, and intend to create, a “joint tenancy with rights of survivorship.” That is, you as the owners of the account agree with yourselves and the Credit Union that all sums paid in shares or other deposits (as applicable), together with all accumulations, prior to now or hereafter, less set-offs as allowed by law for any sums due the Credit Union by any party, shall be owned by all of you jointly with full right of survivorship, and shall be subject to withdrawal or receipt by any of you in whole or in part. Payment to any of you or the survivor(s) of you, or your personal representatives, administrators or assigns of the last survivor(s) of you, shall be valid and discharge the Credit Union from any liability for such payment and amount. Each signer appoints each other signer to be his or her irrevocable attorney; to make deposits to the account; to endorse, for cash or deposit, any checks or other items whether payable to one of the signers alone or with others; and to receive and receipt for all funds all without obligation to us to inquire into the source or application of funds. To induce us to act there under, each person signing the signature card jointly and singly agrees to hold the Credit Union harmless and indemnify us from loss, cost, and damage in all respects in connection with any of the foregoing, including court costs and attorneys fees, except as may be limited by applicable law. Any or all of the joint owners may pledge all or part of the shares or deposits in the account as collateral for security on a loan(s). No authority or obligation of the Credit Union may be changed or terminated by one or more of the joint owners without prior written notice to the Credit Union, and no such change or termination shall affect transactions already made. Further, each joint owner is subject to the terms and disclosures of this Agreement, and hereby acknowledges receipt of the Agreement. We may refuse to authorize a withdrawal from a joint account when we have knowledge of a dispute between the joint accountholders until the matter is resolved. Except as modified in this Agreement, joint accounts shall be subject to and governed by PA 41 of the Public Acts of 1968, as amended, being MCLA 490.51, and commonly known as the Credit Union Multiple-Party Accounts Act.
J. Accounts for Minors. We may require any account established by a minor to be a multiple party account with an owner who has reached the age of majority under Michigan law and who shall be jointly and severally liable to us for any unauthorized usage or fraudulent acts, returned items, overdrafts, fees or other unpaid charges, losses, obligations or amounts on such account. We may pay funds directly to a minor without regard to his or her minority. Unless a guardian or parent is an account owner, the guardian or parent shall not have any account access rights. We have no duty to inquire about the use or purpose of any transaction. We will not change the account status when the minor reaches the age of majority, unless authorized in writing by all account owners and such notice shall not become effective until ten (10) days after it is received by the Credit Union, and will have no effect on transactions prior to the date that the notice is effective.
K. Legal Compliance and Protection
1. Legal Process. If any legal action is brought against your account, we may pay out funds according to the terms of the action or refuse any pay out until the dispute is resolved. Any expenses or attorney fees we incur responding to legal process may be charged against your account without notice, unless prohibited by law. Any legal process against your account is subject to our statutory lien and security interest.
2. Share Insurance. Your savings in the Credit Union are insured by the National Credit Union Administration (NCUA), an agency of the Federal Government, in accordance with regulations promulgated by the NCUA. For more information regarding NCUA share insurance, please refer to the NCUA brochure entitled “Your Insured Funds,” which can be found in any of our branches. Because we are not authorized to provide legal advice, we cannot counsel you as to how to structure your accounts in order to maximize your account insurance protection.
3. Taxpayer Identification Numbers and Backup Withholding. Your failure to furnish a correct Taxpayer Identification Number (TIN) or meet other requirements may result in backup withholding. If your account is subject to backup withholding, we must withhold and pay to the Internal Revenue Service (IRS) a percentage of dividends, interest and certain other payments. If you have designated on the W-9 or W-8BEN that you have applied for a TIN, you must provide the TIN within 60 days. Upon the expiration of the 60-day period, the Credit Union may begin withholding from your account. The Credit Union reserves the right to refuse to open any account until a valid TIN is received.
L. Form of Negotiable Instruments. All negotiable instruments presented for deposit must be in a format that can be processed and/or photographed. The Credit Union may refuse to accept any check or draft that does not meet this requirement. Substitute checks (as defined in the “Check 21 Act”) are the legal equivalent to traditional checks when used in appropriate transactions.
M. Notices. Notices to us should be sent to: Financial Plus Federal Credit Union, P.O. Box 7006, Flint, MI 48507-0006.
1. Notice of Withdrawals. All of your accounts are subject to the Credit Union’s right to require advance notice of withdrawal, as provided in the Credit Union’s Bylaws.
2. Name or Address Changes. You are responsible for notifying us of any address, e-mail address or name change. Whenever we are required to send you notice, the Credit Union is only required to attempt to communicate with you at the most recent address you have provided to us in writing. The Credit Union requires all notices of change in address, e-mail address or name to be in writing. A name change requires a court order specifically identifying the new legal name. Other documents, including Secretary of State filings, shall not suffice to demonstrate an individual person’s name change.
3. Other Notices. All notices regarding the account will be posted in our office lobbies, sent to you at the address shown on your statement, or delivered on or with your statement or appended to your electronic statement (e-statement) if you have chosen to receive e-statements (Refer to Section XV for information and disclosures regarding Electronic Statements. In the event of joint ownership, notice by or to any one joint owner shall be deemed notice by or to all.
4. Effect of Notice. Any written notice you give us is effective when we receive it, except for the written notice required in Section J regarding accounts for minors. Any written notice we give to you is effective when it is deposited in the U.S. Mail, postage prepaid and addressed to you at your statement mailing address or at the time that an electronic message is sent informing you that your electronic statement or notice is available.
N. Offset. If you owe us money as a borrower, guarantor, endorser or otherwise, we have a lien on the account funds in any account in which you have an ownership interest, regardless of their source, unless prohibited by law. We may apply these funds in any order to pay off your indebtedness. By not enforcing a lien, we do not waive our right to enforce it later. In addition, you grant the Credit Union a consensual security interest in your accounts and we may use the funds from your accounts to pay any debt or amount now or hereafter owed the Credit Union.
O. Pay On Death Account Designation. A Payable on Death (POD) account designation is an instruction to the Credit Union that a single or multiple party account so designated is payable to the owner(s) during his, her or their lifetimes, and when the last account owner dies, payable to any named and surviving POD beneficiary/payee. Once an account becomes payable, all then-living beneficiaries/payees own the account jointly, payable in equal shares to each beneficiary/payee, without rights of survivorship. The Credit Union is not obligated to notify any beneficiary/payee of the existence of any account or the vesting of the beneficiary/payee’s interest in any account, except as otherwise provided by law. The Credit Union reserves the right to require documentation in order to confirm that an account has become properly payable.
P. Requests and Special Instructions by Member
1. Changes Requested by You. Account changes requested by you, such as adding or closing an account or service, may be required to be evidenced by a signed Account Change Form and accepted by us.
2. Facsimile Signatures and Electronic Communication. You agree (for joint accounts, all joint owners agree jointly and severally) that the Credit Union may accept and rely on facsimiles of your signature(s) or authorization by electronic communication on any deposit or withdrawal form, order or other notices, requests or instructions regarding any account under this Agreement or with the Credit Union. We shall not be responsible for any loss incurred as a result of our acting upon or executing any request, order or instruction we believe to be genuine, except as otherwise provided by law. Furthermore, we may refuse to execute any facsimile or electronic request or order.
3. Special Account Instructions. You may request that we facilitate certain business, trust, will, or court-ordered account arrangements. However, because we do not give legal advice, we cannot counsel you as to which account arrangement most appropriately meets the specific requirements of your business, trust, will, or court order. If you ask us to follow any instructions that we believe might expose us to claims, lawsuits, expenses, liabilities, or damages, whether directly or indirectly, we may refuse to follow your instructions or may require you to indemnify us or post a bond or other protection.
4. Telephone Requests. You agree (for joint accounts, all joint owners agree jointly and severally) that funds in any of your accounts with us can be transferred and that additional accounts and services can be authorized or terminated upon the telephone request of any signer on the account. We shall not be responsible for any loss incurred as a result of our acting upon or executing any request, order or instruction we believe to be genuine. Furthermore, we may refuse to execute any telephone request or order.
5. Indemnity. If by following your instructions we are exposed to a claim or suit by an adverse claimant, you shall hold us harmless and indemnify us from any such losses, expenses, liabilities or damages including actual attorneys’ fees. If you ask us to follow instructions that we believe might expose us to claims, suits, losses, expenses, liabilities or damages, whether directly or indirectly, we may refuse to follow your instructions, or we may require a bond or other protections.
Q. Return of Deposits/Closed Accounts. We may, at any time, in our sole discretion, refuse to accept any deposit, or close any or all of your accounts with us without prior notice to you. However, we may not terminate your membership in the Credit Union without satisfying the notice provisions of the Federal Credit Union Act and related Bylaw Provisions and regulations. If we close an account, we will notify you and send you a check for any balance in your account after deducting all applicable fees. Any withdrawal that reduces the amount in an account to zero (other than a Share Draft Checking Account) may automatically close that account. We are not liable for any check, withdrawal or other payment order after an account is closed. Any checks, or other payment orders presented after your account has been closed will be returned unpaid. We reserve the right to advise consumer reporting agencies and other third parties of accounts closed for misuse, with regard to all parties named on the accounts, without regard to which individual(s) misused the account. Please refer to “Termination” (subsection S) below for information regarding termination of accounts and membership from the Credit Union.
R. Statement and Member Responsibility. You will receive a periodic statement (normally monthly) for your Share Draft Checking Account. You will receive a periodic statement (normally quarterly) for your Regular Share Account or other savings accounts unless you have an electronic funds transfer transaction during a monthly period (in which case you will receive a monthly statement), or you will receive a combined statement on a monthly basis if you have a Share Draft Checking Account and other savings accounts. Each such statement shall show the transactions on your accounts and any fees. It remains your responsibility to promptly examine each periodic statement carefully and reconcile the account. If there are any discrepancies, you should notify us immediately. Except as expressly provided for elsewhere, you have the responsibility for any fraud loss if you fail to exercise reasonable care in examining the statement or fail to report forgeries or alterations to the Credit Union within sixty (60) days of the mailing date or within sixty (60) days of the date of e-mail notification that your statement is available, if you have chosen electronic statement, of the earliest statement containing those items. The Credit Union will not be liable if items were forged or altered such that a reasonable financial institution could not detect the fraud.
S. Termination
1. Of Account. We may terminate your account at any time without notice to you, or 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 account or of the funds in the account; (4) any checks, or cards are lost, stolen, or the number has been compromised; (5) there are excessive returned unpaid items not covered by an overdraft protection plan; (6) there has been any misrepresentation or any other abuse of any of your accounts; or (7) we reasonably deem it necessary to prevent a loss to us. You may terminate a single party account by giving written notice. There may be a fee for termination of account, processing an account number change, or replacing lost or stolen cards. Refer to our current schedule of fees. We reserve the right to require the consent of all owners to terminate a multiple party account. We are not responsible for payment of any check withdrawal, or other item after your account is terminated, however, if we pay an item after termination, you agree to reimburse us.
2. Of Membership. You may terminate your membership by giving us notice. You may be denied services or expelled for any reason allowed by applicable law, including causing a loss to the Credit Union. If your Regular Share Account balance drops below the $5.00 minimum membership deposit requirement and is not replenished within forty-five (45) calendar days, as provided in the Credit Union’s Bylaws, your account will be charged a Membership Termination Fee equal to your account balance at that time and your membership will be terminated.
T. Transaction Limitations (Regulation D). During any calendar month, you may not make more than six transfers or withdrawals, or a combination of such transfers and withdrawals, from any non-transaction account to another account or to a third party by means of a preauthorized or automatic transfer or telephonic agreement, order or instruction, and no more than three of the six such transfers may be initiated by check, draft, debit card, or similar order. If you exceed the transfer limitations set forth above in any month, your account may be subject to closure by the Credit Union. This limitation does not apply to your Share Draft Checking account.
U. Waiver. We may waive any of these provisions at our sole discretion, but any such waiver will apply only on that occasion. If we chose to waive any provision, we will not be bound to waive the same provision or any other provision on another occasion.
V. REGULAR SHARE ACCOUNT
A. Deposits. After you have established your Regular Share Account, you may make additional deposits into that account, or establish other types of accounts as described below, at any time and in any amount. You may make deposits to your account by any method approved by the Credit Union.
B. Withdrawing Money. As long as you have money in your account, and subject to any applicable state or federal laws and regulations, the transaction limitations in this Agreement, and the Credit Union’s Bylaws, money can be withdrawn from your account by any method approved by the Credit Union. Withdrawals will reduce earnings on your Regular Share Account.
C. Rate Information and Nature of Dividends. This is a variable rate account on which the dividend rate and Annual Percentage Yield (APY) may change every month as determined by the Credit Union. Rate changes are solely at the discretion of the Credit Union and there are no limitations on the amount the rate may change. Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period. Refer to our current Investment Rates schedule for the current anticipated dividend rate and Annual Percentage Yield (APY).
D. Compounding and Crediting. Dividends are calculated by the daily balance method, which applies a daily periodic rate to the balance in the account each day. Dividends are compounded and credited to your account on the last day of each quarter. Dividend payment periods are from January through March, April through June, July through September, and October through December. If you close your account before dividends are paid, you will not receive the accrued dividends.
E. Balance Information. There is a minimum opening balance requirement of $5.00, which must remain in the account to continue membership eligibility. We reserve the right to adjust minimum deposit balance requirements from time to time. Dividends will begin to accrue on the business day you deposit non-cash items (i.e. checks) to your account.
F. Transaction Limitations. Transfers and withdrawals made by telephone, by Touch Tone Teller, by Home Financial Services, by transfer to a third party, or to cover share draft overdrafts will be limited to six (6) such transfers per month (Regulation D). If the transfer limitations set forth are exceeded, the account is subject to closure. Credit Union Bylaws reserve the right to require a member intending to make a withdrawal from any account (except Share Draft Checking), to give written notice of such intent up to sixty (60) days before such withdrawal.
VI. SHARE DRAFT CHECKING ACCOUNT
A. Deposits. After you have established your Share Draft Checking Account, you may make additional deposits into that account at any time and in any amount subject to the terms of this Agreement. You may make deposits to your account by any method approved by the Credit Union.
B. Withdrawing Money from Your Share Draft Checking Account. As long as you have money in your Share Draft Checking Account, and subject to any applicable state or federal laws and regulations, and the Credit Union’s Bylaws, you may withdraw money from your account by a check or any other method approved by the Credit Union. Checks must generally be ordered through the Credit Union. If checks are not ordered through the Credit Union, the Credit Union will assess a fee whenever problems arise in automatically clearing such checks. When you order checks through the Credit Union, the Credit Union will charge your account for the costs of those checks, which will vary depending on the style of checks ordered. You may select checks from the current styles available. Withdrawals will reduce earnings on your Share Draft Checking Account.
C. Rate Information and Nature of Dividends. This is a variable rate account on which the dividend rate and Annual Percentage Yield (APY) may change every month as determined by the Credit Union. Rate changes are solely at the discretion of the Credit Union and there are no limitations on the amount the rate may change. Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period. Refer to our current Investment Rates schedule for the current anticipated dividend rate and Annual Percentage Yield (APY).
D. Compounding and Crediting. Dividends are calculated by the daily balance method, which applies a daily periodic rate to the balance in the account each day. Dividends are compounded and credited to your account on the last day of each quarter. Dividend payment periods are from January through March, April through June, July through September, and October through December. If you close your account before dividends are paid, you will not receive the accrued dividends.
E. Balance Information. There are no requirements to maintain a minimum balance in a Share Draft Checking Account at this time, but you must maintain a basic membership share of $5.00 on deposit in your Regular Share Account to retain a Share Draft Checking Account. We reserve the right to adjust the minimum balance requirements from time to time. If you do not maintain any such minimum balance in the account, we may assess a fee. Refer to our Fee Schedule for more information regarding this fee. Dividends will begin to accrue on the business day you deposit non-cash items (i.e. checks) to your account.
F. Transaction Limitations. Except as otherwise stated in this Agreement, or in any applicable federal or state law or regulation, there are no transaction limitations on this account.
G. Payment of Checks. The Credit Union is under no obligation to pay a check that is more than six (6)- months old. Except for negligence, the Credit Union is not liable for any action it takes regarding the payment or non-payment of a check. We may return all checks drawn on your Share Draft Checking Account unpaid for any reason that checks are normally returned, such as, for example, insufficient funds, uncollected funds, or litigation.
H. Funds Availability. Funds from deposits you make into your Share Draft Checking Account may not always be immediately available for withdrawal or transfer. Refer to Section XIII Funds Availability for more details.
I. Overdraft Protection. The Credit Union is under no obligation to pay a check you have written, or “electronic fund transfer” (“electronic fund transfer” services are itemized in Section XII (E) of this Agreement) if it would result in this Share Draft Checking Account being overdrawn. However, the Credit Union will transfer an amount sufficient to cover a Share Draft Checking Account deficiency caused by a check presented for payment, a preauthorized debit or merchant purchase presented against your account, with a transfer from your account(s), as you have designated, if funds are available. Refer to our Fee Schedule for the fee applicable to this transfer. If you have been approved for a Line-of-Credit loan, the Credit Union may pay the check, preauthorized debit, or merchant purchase and add the amount of the resulting overdraft to the balance of your Line-of-Credit loan in accordance with the terms and conditions of the Line-of-Credit loan Agreement.
The Credit Union has the option of honoring a check, preauthorized debit, or merchant purchase when your Share Draft Checking Account has non-sufficient funds or may dishonor it, solely at our discretion. Honoring of past overdrafts does not obligate the Credit Union to honor them in the future. The Credit Union may pay the check, preauthorized debit, or merchant purchase and charge the amount of the resulting overdraft plus any applicable fee against any account(s). Refer to our Fee Schedule. You agree to deposit sufficient funds to cover the amount of the overdraft and fee. Failure to cover any resulting deficiency balance within thirty (30) days of the date that your account first becomes negative will result in account privilege restrictions. If this is a joint account (that is, if two or more people are parties to this account), all of the joint owners are jointly and severally liable to repay the Credit Union the amount of any overdraft and fees, regardless, which of the parties creates an overdraft.
J. Truncated Checks; Statements. Your canceled checks will not be returned to you. They will become Credit Union property and be held by us (“truncated”) for you. Your monthly statement will itemize your canceled checks by number, date of clearing, and the amount of the check. Any objection in regard to any item shown on a periodic statement is waived unless made in writing to the Credit Union before the end of sixty (60) days after the statement is mailed or within sixty (60) days of the date of e-mail notification that your statement is available, if you have chosen electronic statement. A copy of any check or “substitute check” (a legal check under federal law – Check 21) will be available to you as required by law. There may be a small fee to obtain a copy of a check (see the Fee Schedule for a list of fees).
K. Stop Payments.
1. Stop Payment Order Request. You may request a stop payment order on any check drawn on your account. This request may be provided orally or in writing. We may require you to confirm your oral request in writing within 14 calendar days. If requested in writing, upon the expiration of the 14 calendar days, we may disregard your request, unless we have received written confirmation. To be binding, the written confirmation must be dated, signed, and describe the account, check number and the exact amount. The stop payment will be effective if the Credit Union receives the order in time for the Credit Union to act upon the order and you state the number of the account, number of the check, and its exact amount. You understand that the exact information is necessary for the Credit Union’s computer to identify the check. If you give us incorrect or incomplete information, or only a oral notice is given to us without providing written confirmation, when requested, we will not be responsible for failing to stop payment on the check. If the stop payment order is not received in time for us to act upon the order, we will not be liable to you or to any other party for payment of the check. If we re-credit your account after paying a check over a valid and timely stop payment order, you agree to sign a statement describing the dispute with the payee, to transfer to us all of your rights against the payee or other holders of the check, and to assist us in any legal action.
Stop payments related to pre-authorized transactions must be provided to the Credit Union within three (3) business days before the scheduled date of the transfer. This request may be provided orally or in writing. We may require you to confirm your oral request within 14 calendar days, subject to the requirements provided above.
2. Duration of Order. A stop payment order is effective for six months and may be renewed in writing from time to time. We will not notify you when a stop payment order expires.
3. Liability. Fees for stop payment orders are set forth on our Fee Schedule. You generally may NOT stop payment on any certified check, teller’s check or any other check, or payment guaranteed by us. Even if payment of such an item is stopped, you may remain liable to any item holder, including us. You agree to indemnify and hold the Credit Union harmless from all costs, including attorney’s fees, damages or claims related to our refusing payment of an item, including claims of any multiple party, account owner, payee, or endorser in failing to stop payment of an item as a result of incorrect information provided by you.
L. Automated Processing. You recognize that we have implemented automated collection and payment procedures that rely primarily upon information encoded onto each item in magnetic ink. In recognition of this fact, you agree that in paying an item, we may disregard all information on the item other than the identity of the drawee bank, the amount of the item, and any information encoded onto the item in magnetic ink according to general banking standards, whether or not that information is consistent with any other information on the item. You acknowledge that the Credit Union does not fail to exercise ordinary care in paying an item solely because its procedures do not provide for sight review of items. Any electronic debit initiated by a third party against this account is deemed authorized by the owner(s) if any owner voluntarily gives the third party information about the account and the Credit Union’s routing number.
M. Payment of Checks after Death. The Credit Union may, after the date of your death, pay checks drawn before death unless ordered to stop payment by the Personal Representative or other appropriate person claiming an interest in the account.
VII. HI-YIELD AND HI-YIELD PLUS ACCOUNT
A. Deposits. After you have established your Hi-Yield or Hi-Yield Plus Account, you may make additional deposits into that account at any time and in any amount. You may make deposits to your account by any method approved by the Credit Union.
B. Withdrawing Money from Your Hi-Yield or Hi-Yield Plus Account. As long as you have money in your account, and subject to any applicable state or federal laws and regulations, the transaction limitations in this Agreement, and the Credit Union’s Bylaws, money can be withdrawn from your account by any method approved by the Credit Union. Withdrawals will reduce earnings on your Hi-Yield or Hi-Yield Plus Account.
C. Rate Information and Nature of Dividends. Hi-Yield and Hi-Yield Plus Accounts are variable rate accounts on which the dividend rate and Annual Percentage Yield (APY) may change weekly as determined by the Credit Union. Rate changes are solely at the discretion of the Credit Union and there are no limitations on the amount the rate may change. Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period. Refer to our current Investment Rates schedule for the current anticipated dividend rate and Annual Percentage Yield (APY).
D. Compounding and Crediting. Dividends are calculated by the daily balance method, which applies a daily periodic rate to the balance in the account each day. Dividends are compounded and credited to your account on the last day of each month. The dividend payment period begins on the first day of the calendar month and continues through the last day of the calendar month. If you close your account before dividends are paid, you will not receive the accrued dividends.
E. Balance Information. There is a minimum opening balance requirement of $1,500.00 for the Hi-Yield account. There is a minimum opening balance requirement of $50,000.00 for the Hi-Yield Plus account, as well as (1) the maintenance of an active checking account in good standing, with direct deposit regularly posted to the account, or (2) a minimum of $10,000.00 new money (funds not currently on deposit with the Credit Union) at the time the account is opened. Balances below $1,500.00 in the Hi-Yield Account earn no dividends and balances below $50,000.00 in the Hi-Yield Plus Account earn the declared dividend rate and APY set for the Regular Share Account with balances of $3,000.00 and over. If you do not maintain any such minimum deposit balance requirement we may charge you a monthly maintenance fee (see the Rate and Fee Schedule for a list of fees). We reserve the right to adjust the minimum balance requirements from time to time. Dividends will begin to accrue on the business day non-cash items (i.e. checks) are deposited to the account.
F. Transaction Limitations. Transfers and withdrawals made by telephone, by Touch Tone Teller, by Home Financial Services, by transfer to an authorized third party, or to cover share draft overdrafts will be limited to six such transfers per month (Regulation D). If the transfer limitations set forth are exceeded, the account is subject to closure. Credit Union bylaws reserve the right to require a member intending to make a withdrawal from the account to give written notice of such intent up to sixty (60) days before such withdrawal.
VIII. MISCELLANEOUS SHARE AND CHRISTMAS CLUB ACCOUNTS
A. Deposits. After you have established your Miscellaneous Share Account(s) or Christmas Club Account, you may make additional deposits into that account at any time and in any amount. You may make deposits to your account by any method approved by the Credit Union.
B. Withdrawing Money from Your Miscellaneous Share Account(s) and Christmas Club Account. As long as you have money in your account, and subject to any applicable state or federal laws and regulations, the transaction limitations in this Agreement and the Credit Union’s Bylaws, money can be withdrawn from your account by any method approved by the Credit Union. Withdrawals will reduce earnings on any one of your accounts.
C. Rate Information and Nature of Dividends. These are variable rate accounts on which the dividend rate and Annual Percentage Yield (APY) may change every month as determined by the Credit Union. Rate changes are solely at the discretion of the Credit Union and there are no limitations on the amount the rate may change. Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period. Refer to our current Investment Rates schedule for the current anticipated dividend rate and Annual Percentage Yield (APY).
D. Compounding and Crediting. Dividends are calculated by the daily balance method, which applies a daily periodic rate to the balance in the account each day. Dividends are compounded and credited to your account on the last day of each quarter, except Christmas Club accounts which have an additional dividend payment on the last day of October. Dividend payment periods are from January through March, April through June, July through September, and October through December (October and November through December for Christmas Club accounts). If you close your account before dividends are paid, you will not receive the accrued dividends.
E. Balance Information. There are no requirements to maintain a minimum balance in a Miscellaneous Share or Christmas Club account at this time, but you must maintain a basic membership share of $5.00 on deposit in your Regular Share Account to retain a Miscellaneous Share or Christmas Club account. We reserve the right to adjust the minimum balance requirements from time to time. If you do not maintain any such minimum balance in the account, we may assess a fee. Refer to our Fee Schedule for more information regarding this fee. Dividends will begin to accrue on the business day you deposit non-cash items (i.e. checks) to your account.
F. Transaction Limitations. Transfers and withdrawals made by telephone, by Touch Tone Teller, by Home Financial Services, by transfer to an authorized third party, or to cover share draft overdrafts will be limited to six such transfers per month (Regulation D). If the transfer limitations set forth are exceeded, the account is subject to closure. Credit Union bylaws reserve the right to require a member intending to make a withdrawal from any account to give written notice of such intent up to sixty (60) days before such withdrawal.
G. Distribution of Christmas Club Accounts. The balance of your Christmas Club Account will be distributed to you on the last business day of October, when it will be transferred to your Share Draft Checking Account. If you have not established a Share Draft Checking Account, the transfer will be made to your Regular Share Account. We reserve the right to change the date of distribution.
IX. INDIVIDUAL RETIREMENT SHARE ACCOUNT (IRA)
A. Deposits. After you have established your IRA, you may make additional deposits into that account, at any time and in any amount subject to any restrictions under federal law. You may make deposits to your account by any method approved by the Credit Union.
B. Withdrawing Money from Your IRA Account. As long as you have money in your account, and subject to any applicable state or federal laws and regulations, the transaction limitations in this Agreement and the Credit Union’s Bylaws, money can be withdrawn from your account by any method approved by the Credit Union. Withdrawals will reduce earnings on your IRA account. Consultation with a tax advisor is recommended before withdrawals are made, as tax penalties may result.
C. Rate Information and Nature of Dividends. This is a variable rate accounts on which the dividend rate and Annual Percentage Yield (APY) may change every month as determined by the Credit Union. Rate changes are solely at the discretion of the Credit Union and there are no limitations on the amount the rate may change. Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period. Refer to our current Investment Rates schedule for the current anticipated dividend rate and Annual Percentage Yield (APY).
D. Compounding and Crediting. Dividends are calculated by the daily balance method, which applies a daily periodic rate to the balance in the account each day. Dividends are compounded and credited to your account on the last day of each quarter. Dividend payment periods are from January through March, April through June, July through September, and October through December. If you close your account before dividends are paid, you will not receive the accrued dividends.
E. Balance Information. There are no requirements to maintain a minimum balance in an IRA Share Account at this time, but you must maintain a basic membership share of $5.00 on deposit in your Regular Share Account to retain an IRA Share Account. We reserve the right to adjust the minimum balance requirements from time to time. If you do not maintain any such minimum balance in the account, we may assess a fee. Refer to our Fee Schedule for more information regarding this fee. Dividends will begin to accrue on the business day you deposit non-cash items (i.e. checks) to your account.
F. Transaction Limitations. Credit Union bylaws reserve the right to require a member intending to make a withdrawal from the account to give written notice of such intent up to sixty (60) days before such withdrawal.
G. IRA Certificates. IRA Certificates are governed by the terms of Section X: Six-Month and Long-Term Certificate Accounts.
X. SIX-MONTH, TWELVE-MONTH AND LONG-TERM CERTIFICATE ACCOUNTS, INCLUDING IRA AND SPECIAL RATE CERTIFICATE ACCOUNTS
A. Deposit. A member may establish a Six-Month Certificate Account, a Twelve-Month Certificate Account, and/or a Long-Term Certificate Account, including Certificates designated as IRA Certificates and Special Rate Certificates (we will refer to these as “Certificates”). Certificates are savings accounts (also known as “Term Share Accounts”) that generally earn a higher rate of interest than other savings accounts. If you wish to deposit additional funds into a Certificate, you may purchase another Certificate at the then current rate.
B. Rate Information and Nature of Dividends. Certificates are fixed rate accounts on which the dividend rate and Annual Percentage Yield (APY) are fixed for the term of the Certificate. Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period. Refer to our current Investment Rates schedule for the current anticipated dividend rate and Annual Percentage Yield (APY).
C. Compounding and Crediting. Dividends are calculated by the daily balance method, which applies a daily periodic rate to the balance in the account each day. Dividends are compounded and credited to your account on the last day of each quarter. Dividend payment periods are from January through March, April through June, July through September, and October through December. If you close your Certificate before interest is credited, accrued interest will be paid to date less any early withdrawal penalty, if applicable. See the discussion of early withdrawal penalties in subsection B above.
D. Balance Information. There is a minimum opening balance requirement of $500.00 for all Certificates, except Special Rate Certificates, in which the minimum opening balance requirement is $2,500.00 new money (funds not currently on deposit with the Credit Union), and you must also maintain a basic membership share of $5.00 on deposit in your Regular Share Account to retain a Certificate account. Dividends will begin to accrue on the business day you deposit non-cash items (i.e. checks) to your account.
E. Renewal Policy. All Certificate accounts will automatically be renewed on the initial or any subsequent renewal maturity date, unless otherwise directed by you, or the Credit Union shall, prior to maturity, give you written notice that it will not be renewed. The dividend rate and Annual Percentage Rate (APY) to be paid upon renewal shall be determined by the Credit Union at or before maturity, and written notice of the renewal rate shall be mailed to you no later than two (2) business days after maturity. All other terms and conditions, including the length of the term of the Certificate, shall be the same as the original Certificate unless the Credit Union shall, prior to maturity, give written notice of a change in such terms and conditions. There is a seven (7) day grace period for withdrawals from the Certificate after it matures. If the Certificate is presented for payment on its maturity date or within seven (7) days thereafter, no penalty shall be imposed but no dividends shall be earned after the maturity date. If the Certificate is not renewed, at maturity, the funds will be transferred to your Regular Share Account in the Credit Union, or other account designated by you. If there is no such account at the time, the balance will be deposited to an Accounts Payable until such time as you can be reached and disposition of the Certificate is determined.
F. Early Withdrawal Penalty. A substantial penalty is imposed if Certificate funds, other than dividends, are withdrawn prior to the original or subsequent renewal maturity date. If an early withdrawal reduces the principal balance below the original Certificate amount or below the Certificate amount of a subsequent renewal, the Certificate will be canceled, and a forfeiture will be imposed equal to the value of 90 days dividends on the entire amount evidenced by the Certificate if the current term is one year or less, or the value of 180 days dividends on that amount if the current term is more than one year. In any case of early withdrawal, if accrued dividends are not sufficient to cover the applicable penalty, the penalty will result in the loss of all dividends earned. If a Certificate is withdrawn within the first six days following the original deposit date, the penalty will be equal to seven (7) days interest, and shall be deducted from the principal of the Certificate if accrued dividends are insufficient to cover the penalty. These penalties do not apply in these cases: (1) withdrawals after the death of any owner of the Certificate; (2) if the Certificate is part of an Individual Retirement Account, and the withdrawal is made as required by the Internal Revenue Code after attaining age 70½, or withdrawals following the participant owner(s) death or disability; (3) withdrawals resulting from the voluntary or involuntary liquidation of this Credit Union.
G. Transaction Limitations. After a Certificate is purchased, you may generally not make deposits into or withdraw principal from that Certificate until the maturity date. If a withdrawal of principal must be made prior to maturity, the entire account balance must be withdrawn. In addition, an early withdrawal penalty will be assessed, as discussed in subsection B above. Credit Union bylaws reserve the right to require a member intending to make a withdrawal from the account to give written notice of such intent up to sixty (60) days before such withdrawal. Certificates may not be pledged, transferred, or assigned to any party other than the Credit Union.
XI. FIDUCIARY ACCOUNTS
A. Accounts for Trusts
1. Generally. Individuals may open a separate membership account for a Revocable Trust, provided that any of the settlers or initial trustees of the Trust are eligible for membership in the Credit Union and the person(s) opening the account has been appointed and has accepted the responsibility to act as Trustee(s).
As used herein the words “we,” “us,” “our,” and “Credit Union” shall refer to and mean Financial Plus Federal Credit Union, and the word “you” shall refer to and mean the Trust or Trustee(s) as t
