Account Rules And Regulations

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Account Rules And Regulations

The following rules and regulations shall apply to all Accounts maintained at Scott Credit Union (“Credit Union”).

Definitions - The term “Item” means checks, drafts, negotiable orders of withdrawal or any other instruments used to withdraw funds from an Account. The term “Owner” means any person, corporation, partnership, trust or other entity designated in the title of an Account on the records of the Credit Union. The term “Account” means all share accounts and share certificates held in or issued by the Credit Union. The term “Business Day” means Monday through Friday except for legal holidays. Receipt of Deposits; Dividends - Any deposits received by the Credit Union after 2:00 p.m. on a Business Day may not be credited to the Account until the next Business Day. Credit for deposits of, or payable in, foreign currencies will be at the exchange rate in effect on final collection of US dollars. Owner waives any right to receive an original Item after it is paid. If an Account earns dividends, the Credit Union is prohibited by law from guaranteeing the payment of dividends or that dividends that are paid will be at the contracted rate. The Credit Union must base its dividend payments upon the money that the Credit Union actually earns and that is available for distribution at the end of a dividend period.

Notification of Change of Address - For security reasons, the share account owner must notify Scott Credit Union immediately of a change of address in writing or in person. Withdrawals and Closing an Account - Any Owner, and any person authorized by an Owner in any resolution or other notice to the Credit Union, shall be authorized to withdraw funds from the Account without the approval, consent or cosignature of any other person, including any withdrawal from an Account prior to any stated maturity date of such Account. If the Owner uses a facsimile signature, the Owner is solely responsible for any misuse of the facsimile stamp or machine. The Credit Union is not required to honor any restrictive legend on any Items. The Credit Union reserves the right to require the maximum amount of notice of withdrawal from an Account that is required or permitted by law or regulation. If no notice period is provided by law or regulation, the Credit Union reserves the right to require at least 7 days prior notice before withdrawal from any dividend or interest bearing Account. The Credit Union may close the Account at any time in its sole discretion by giving the Owner at least 15 days prior written notice, after which the Credit Union may deliver a check for the balance of the Account to the Owner and return any Items drawn against the Account unpaid. If the Account is a joint Account, the Credit Union may give notice to any one Owner, and deliver a check to any one of the Owners, payable to all of the joint Owners.

Authorized Signature - Your signature on the signature card is your authorized signature. For the payment of funds and for other purposes relating to any Account you have with the Credit Union, the Credit Union is authorized to recognize your signature, but it will not be liable to you for refusing to honor your checks or other signed instructions if it believes in good faith that the signature appearing on such checks or instructions is not genuine. If you voluntarily give information about your Account (such as the Credit Union’s routing number and/or your Account number) to a party who is seeking to sell you goods or services, and you do not physically deliver a check to that party, any item presented against your Account by the party to whom you gave the information is deemed to have been authorized by you. When an Account is established, you may indicate your desire for more than one authorized signature on a check or other item drawn against the Account by designating a specific number of desired signatures on the Signature Card or in a separate resolution. However, any such designation is solely for your convenience and internal control purposes. In the absence of a specific written agreement to the contrary, the Credit Union is not required to determine if any check or other item drawn against your Account contains the number of desired signatures indicated by any such

designation. In the event you authorize the use of any facsimile signature device, you agree that we may pay or honor any check, draft, order or item, or conduct any transaction, that contains what appears to be your authorized facsimile

signature, even if the signature is not authorized. If you provide your account information, code or Personal Identification Number (PIN) to any person or entity to conduct transactions, you agree that until you provide us with notice revoking your authorization, all transactions conducted by that person or entity is authorized and genuine, even if they are not conducted for your benefit or according to your instructions.

Signatures by Family Members, Employees or People You Know - In the event a family member, employee or person that you know writes a check drawn on your account payable to any person or entity, you authorize the signature, completion and payment of that check, and agree that you will address the matter to recover any loss for payment of the check with the family member, employee or person you know.

Endorsements by Family Members, Employees or People You Know - If a family member, employee or a person you know endorses a check made payable to you to any person or entity, you authorize the endorsement of the check as your endorsement, and agree that you will address the matter to recover any loss for the endorsement of the check with the family member, employee or person you know.

Pledges of Accounts –Without being required to take any

action to perfect the same, Scott Credit Union shall have a lien on the shares, accumulated dividends or interest of an Owner in his individual, joint or trust account. No Owner, or any survivor, successor, or assign of any Owner, shall be entitled to any funds from an Account until any debts owed to the Credit Union, including loans cosigned or guaranteed by the Owner, have been paid in full; this provision shall not be deemed to be waived if the Credit Union permits the Owner to withdraw funds from the Account from time-to-time. If there is more than one Owner of an Account any one Owner may pledge the Account to the Credit Union to secure the obligations of such Owner, and such pledge shall be binding on all Owners.

Death or Disability - The Credit Union does not make any inquiries to determine whether an Owner has died or become disabled or incapacitated. The Credit Union will have no obligation to take any action with respect to an Account as a result of the death or disability of an Owner until the Credit Union receives written notice thereof.

Joint Accounts - All Accounts in the name of two or more individuals will be deemed to be Joint Accounts with Right of Survivorship unless another method of Ownership is

specifically designated. If there is an overdraft in any joint Accounts, each Owner shall be responsible for repaying such overdraft regardless of which Owner created the overdraft. The Credit Union shall have the right to apply all funds in any jointly owned Account to satisfy any debts or obligations to the Credit Union of any Owner regardless of which Owner deposited the funds. Each joint Owner designates each other joint Owners as agent for endorsing any Item payable to the first joint Owner for deposit into the Account. Any references to an Owner in these rules and regulations will apply to each joint Owner jointly and individually.

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Disputes, Garnishments, Executions and Levies - If there are any disputes or adverse claims as to ownership or control of the Account, either by parties to the account or by third parties, then the Credit Union shall be entitled to freeze the Account until the dispute or adverse claim has been resolved. The Credit Union shall not be required to inquire into the merits of such dispute or adverse claim. If the Credit Union receives any garnishment, execution or levy (an “Attachment”) against the Account or any Owner, the Credit Union shall have the right to freeze any Account in which the Owner has an interest, up to the amount necessary to satisfy such Attachment. The Credit Union shall not be required to inquire into the beneficial ownership of the funds in any jointly held Account, and all other joint Owners hereby consent to the Credit Union freezing the Account if there is an Attachment against any one or more joint Owners. It shall be the obligation of the Owner to contest any such Attachment. The Credit Union shall have no liability whatsoever for freezing the Account. If the Account is subject to being drawn upon by checks or drafts, the Credit Union may return such checks or drafts unpaid as long as the Account is frozen.

Examination of Items and Statements; Unauthorized Use of Account - The Credit Union does not examine all endorsements or signatures on Items presented for payment. The Credit Union will have no liability to any Owner for any Items paid on an improper signature or endorsement if such Item is subject to bulk processing in the ordinary course of the Credit Union’s business. The Owner agrees that bulk

processing of Items, without examining all endorsements or signatures, is a reasonable banking practice. If the Owner permits another person to obtain possession of checks or withdrawal certificates, the Credit Union shall have no liability to the Owner for any funds withdrawn from the Account by such person. The Owner must examine all statements and Items received by Owner, or made available to Owner, within a reasonable time (not to exceed 14 days after the statements are received or made available). If the Owner discovers any unauthorized signature, or any alteration on an Item, the Owner must notify the Credit Union within the same period of time or the Credit Union will have no liability to the Owner.

Funds Transfers - In the event that any Owner writes a share draft which would result in the share draft Account being overdrawn, the share draft shall be deemed to be a request to the Credit Union to transfer sufficient funds from the Owner’s common share Account. Any such transfer shall be at the sole discretion of the Credit Union and the Credit Union shall have no liability to the Owner for failing to make such transfer. You agree that the Credit Union shall not be required to give

you any notices with respect to funds transfers into or out of any Account, except the ordinary periodic statement regarding the Account.

Stop Payment Orders; Stale Checks; Order of Payment - The Credit Union will not be required to honor any stop payment orders on Items unless the order precisely identifies the date, Item (check) number, payee and amount of the Item, and unless notice of the stop payment is received by the Credit Union (during normal business hours) at least 4 hours prior to the time that the Item is presented for payment. Oral notices must be given to a Member Service Representative by telephoning (618) 345-1000 or 800-888-4728. Oral stop payment orders will be effective for only 14 days. A written stop payment order for a draft (check) (including an order sent by e-mail or an electronic banking system) is effective for only 6 months unless renewed within the 6-month period. A written stop payment order for an ACH item will remain in effect until the earlier of (a) the withdrawal of the stop payment order by the member; or (b) the return of the debit entry, or where a stop payment order applies to more than one debit entry relating to a specific authorization involving a specific originator, the return of all such debit entries. No stop payment orders may be placed on Certified, Teller or Cashiers checks until 90 days after the date of the instrument. The Credit Union may pay any Instrument when presented, regardless of the date of the Instrument, without prior approval of Owner and without liability to Owner. The Credit Union may pay Items in whatever order the Credit Union may elect in its sole discretion, and the Credit Union shall not be required to pay either the lowest or highest Items first.

Limitation of Liability - The liability of the Credit Union for early payment of a post-dated Item, or for paying an item over a stop payment order, or for paying an Item with an improper signature or endorsement, shall be the lesser of the actual damages incurred by the Owner, or the face amount of the Item, or such other amount as may be provided by law. The Credit Union shall not be required to take notice of any limitations on payment of the Item that is placed on an item and the Credit Union will have no liability for paying an Item regardless of any such limitations.

Notices - All notices that an Owner may give to the Credit Union will not be effective unless delivered in writing to the Credit Union at:

101 Credit Union Way Edwardsville, IL 62025 Fees, Service Charges and Rules - The Account shall be subject to all additional fees, service charges, rules and

regulations posted in the lobby of the Credit Union or delivered or sent to the Owner. Failure of the Owner to close the Account after receipt, posting, delivery or sending of such notice shall be deemed to be an acceptance of such fees, service charges, rules and regulations by all Owners of the Account. The account will also be subject to all laws, rules and regulations imposed by any local, state or federal government or regulatory agency.

The Credit Union shall be entitled to reimbursement for all expenses and losses, including attorney fees, incurred with respect to any investigation, dispute or Attachment involving the Account, or enforcing any rights of the Credit Union, regardless of whether legal proceedings are commenced. The Credit Union may deduct such fees and expenses out of the Account or from any other funds or property of any Owner within the control or possession of the Credit Union. Governing Law - The Account, and these Rules and Regulations, will be governed by the laws of the state of Illinois and federal credit union laws and rules. Member NCUSIF.

Member Expulsion Policy

In the interest of protecting the assets of the Credit Union and maximizing dividends to members, the board of directors adopts the following policy. This policy provides for expulsion of members who have caused a loss to the Credit Union or who have engaged in actions that put the credit union at risk of loss or liability. Expulsion may result, upon board action, in the situations described below.

Expulsion criteria:

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

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Credit Union drafts purchased by the member. Member’s failure to pay fees or charges due the Credit Union for any reason.

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

2. Member actions that put the Credit Union at risk of loss or liability that may subject the member to expulsion action by the board include the following:

Members who engage in check kiting, attempted or actual deposits of counterfeit checks or other nonnegotiable items, foreign ATM transfers between checking and savings accounts which result in overdrafts of both accounts, attempted or actual theft of Credit Union or other member’s funds, or similar activities whereby the member illegally attempts to obtain funds not due the member.

Members threatening staff who deny loan applications or other services, members who engage in inappropriate conduct or language directed at staff based on sex, race, national origin, marital status, sexual orientation, physical or mental

impairment, age, or membership in the uniformed services, or similar activity whereby staff are subjected to verbal or physical abuse.

Members who fail to protect blank personal checks as evidenced by repeated claims of lost checks and unauthorized transactions (particularly when the forgeries are committed by persons living in the member’s household), or fail to protect access cards and security information such as personal identification numbers as evidenced by repeated claims of unauthorized transactions (particularly when the unauthorized transactions are committed by persons living in the member’s household), or engage in similar activities resulting from repeated failure to keep their accounts and records secure. Members who use or attempt to use false or forged documents or false information to obtain credit or access to an account.

Members who use or attempt to use false identities. 3. Effective Date of Expulsion Policy. This policy is effective as of May 1, 2005.

Electronic Fund Transfers: Your Rights and Responsibilities

The Electronic Fund Transfers we are capable of handling are indicated below, some of which may not apply to your account. Please read this disclosure carefully because it tells you your rights and obligations for these transactions. You should keep this notice for future reference.

Direct Deposits -You may make arrangements for certain direct deposits to be accepted into your share Draft (Checking) or Share Savings accounts.

Preauthorized Withdrawals - You may make arrangements to pay certain recurring bills from your Share Draft

(Checking) or Share Savings accounts.

Limitations on Frequency of Transfers - In addition to those limitations on transfers elsewhere described if any, the following limitations apply. You may not make more than 6 transfers and withdrawals, or a combination of transfers and withdrawals, per calendar month or statement cycle, from a Share Savings account to another one of your accounts at the Credit Union or to a third party by means of a pre-authorized or automatic transfer, or telephonic or data transmission (including through an electronic banking system) agreement, order or instruction.

If you authorize anyone to use your password 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 password 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 password is changed. If you fail to maintain or change the security of your PIN or password and the Credit Union suffers a loss, we may terminate your electronic funds transfer and account service immediately.

Choice of Law Disclosure -We may accept on your behalf payments to your account which have been transmitted through one or more Automated Clearing Houses (ACH) and which are not subject to the Electronic Fund Transfer Act and your rights and obligations with respect to such payments shall be construed in accordance with and governed by the laws of the state of Illinois as provided by the operating rules of the National Automated Clearing House Association, which are applicable to ACH transactions involving your account.

Charges for Electronic Fund Transfers We do not charge for direct deposits to any type of

account.

We do not charge for preauthorized withdrawals from any type of account.

Except as indicated elsewhere, we do not charge for electronic fund transfers.

Debit Card Agreement and Disclosure Your Rights and Responsibilities -Please read this Agreement and disclosure carefully because it tells you your rights and obligations for the transactions listed. You should keep this notice for future reference. Any use of the Card will constitute your acceptance of these terms.

General Terms -For purposes of the following agreements and disclosures: “we”, “our” and “us” refers to Scott Credit Union; “you” or “your” refers to the applicants for a Card; “Card” means a card issued by us that permits you to make transactions on authorized automatic teller machines (“ATM”) or which permits you to obtain cash advances or make point of sale purchases to be charged against the Account. If there is more than one applicant, each of you will be fully responsible for the acts of the other in using the Card. Transactions using the Card will result in deposits to, withdrawals from or transfers among your accounts with us which are designated in the application (“Accounts”). If your Card is authorized for use as a debit card for point of sale transactions, then any purchase of goods or services or cash advances that you make using your Card will be deducted from the Account designated in your application for the Card. We may draw against any overdraft protection plan loan that applies to your Account to cover purchases, cash advances or fund transfers that exceed the balance in your Account, but we will not be required to draw against that loan unless required to do so by the overdraft agreement. We will not be required to charge any Account other than the one specifically designated in the application for the Card. Acceptance of your Card and PIN for point of sale transactions is conditioned upon the merchant accepting the Card. We will have no responsibility if a merchant refuses to accept the Card and PIN to pay for goods or services. We may terminate your right to use the Card at any time and at our request you will return the Card to us. Per the Visa Network, Visa check cards may not be used for any illegal transactions.

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means of identification (even if the person exceeds your authority), or by any person who obtains your PIN or Card as a result of your act or negligence. If you give someone your PIN or Card and wish to terminate their authority, or if you know or believe that your means of identification is lost, stolen or otherwise is compromised, you must notify us in writing immediately so that we can take the necessary steps to change your PIN. You will indemnify us from and against any and all claims of any nature arising out of any use of your PIN or Card by a person you have authorized, permitted or enabled to have access to your PIN or Card.

Applicable Rules -All laws, regulations, and all of our general rules and regulations that otherwise apply to your Accounts will continue to apply to transactions made using the Card and PIN including, without limitation, the timing of crediting and debiting your Accounts. We may change any of these rules and regulations, or the terms of this Agreement, at any time and if you use the Card or PIN after we give you notice of the change, you will be presumed to have accepted such change. We may add or delete available ATM machines or networks anytime at our discretion. This Agreement is governed by the laws of the State of Illinois without regard to conflicts of law rules. Whenever we are required or permitted to give notices to you, such notices may be sent to your last known address in our records. Any litigation or other legal proceedings involving this Agreement shall be brought only in the state or federal courts having jurisdiction over the county where our home office is located and you agree to the jurisdiction of such courts. Available Transactions, Limitations on Amounts of Transfers -Listed below are the types of transactions available using the Card. Some of these transactions may not apply to you. You may use the Card only for the purposes designated in your application for the Card, but subject to our approval. ATM Transactions -If authorized, you may use your Card and PIN at participating ATMs to: make deposits to your Accounts (but only at our ATMs), transfer funds between your Accounts, withdraw cash from your Accounts, and obtain balance information about your Accounts. Some of these services may not be available at all ATM terminals. You may withdraw up to $500 from an ATM each day. We will charge you $1 for each withdrawal, and $0.50 for each transfer amount, accounts or balance inquiries at any ATM that we do not own or operate. The owner or operator may assess additional fees as well. Point of Sale Transactions -If authorized, you may use your Card to purchase goods or services from merchants or obtain cash from merchants using your PIN, as long as the merchants accept the Card. You may obtain up to $500 in the aggregate each day of goods or services or cash advances in point of

sale transactions if the merchants require your PIN to complete the transaction. You may obtain up to $1,500 of goods or services or cash advances in point of sale transactions if the merchants DO NOT require your PIN to complete the transaction. Per the Visa Network, Visa check cards may not be used for any illegal transactions. Other Limitations -If our computer system is off line, then the daily aggregate limit for point of sale transactions and ATM withdrawals is $200. For security reasons, there may be other limits on the number of transfers you can make using ATMs, point of sale transactions, or other authorized transactions.

Other Fees - In addition to the fees that can be charged for each transaction, we will also charge you $5 for any

replacement Card and $1 if your PIN needs to be changed. Visa will impose a 0.8% fee on international (outside the U.S.) debit and credit card transactions where a currency conversion is not performed. A 1.0% fee is assessed on international transactions when a currency conversion occurs. Other fees may be charged with respect to your Account and those fees are disclosed separately for those Accounts.

Documentation -You can get a receipt at the time you make any ATM or point of sale transaction. You will get a monthly statement (unless there are no transfers in a particular month, in which case you will get the statement at least quarterly).

Your Liability -TELL US AT ONCE if you believe your Card or PIN has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your Accounts (plus your maximum overdraft line of credit if any). If you tell us within 2 business days that your Visa check card is lost or stolen, your liability for unauthorized Visa transactions with the card, other than transactions at an ATM is $0. The provisions of this paragraph do not apply to unauthorized use of your Visa check card at an ATM. They also do not apply if you were negligent in the handling of your account or card. If you tell us within 2 business days, you can lose no more than $50 if someone used your Card or PIN without your permission. If you do NOT tell us within 2 business days after you learn of the loss or theft of your Card or PIN, and if we can prove we could have stopped someone from using your Card or PIN without your permission if you told us, you could lose as much as $500. Also, if your statement shows transfers that you did not make, tell us at once. If you do NOT tell us within 60 days after the statement was mailed to you, you may not get back any money you lost after the 60 days if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason (such as

a long trip or a hospital stay) kept you from telling us, we will extend the time periods. If you believe your Card or PIN has been lost or stolen or that someone has transferred or may transfer money from your Accounts without your permission, contact us at our telephone number or address below. Our Liability - If we do not complete a transfer to or from your Accounts on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages. However, there are some exceptions. We will not be liable, for instance: (1) if, through no fault of ours, you do not have enough money in your Account to make the transfer; (2) if the transfer would go over the credit limit on your overdraft line (if any); (3) if the ATM where you are making the transfer does not have enough cash; (4) if the ATM or point of sale terminal or system was not working properly and you knew about the breakdown when you started the transfer; (5) if circumstances beyond our control (such as fire or flood) prevent the transfer despite reasonable precautions that we have taken; or (6) there may be other exceptions stated in our agreements with you.

Confidentiality - We will disclose information to third parties about your account or the transfers you make:

(a) Where it is necessary for completing transfers, 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 or court orders, or (d) If you give us your written permission.

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error, so that you will have use of the funds during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your Account. We will tell you the results within 3 business days after completing our investigation.

If we decide that there was no error, we will send you a written explanation. You may ask for copies of the documents that we used in our investigation.

Your Account is considered a “new Account” during the first 30 days after the Account is established; an Account is not considered a new Account if you have had, within 30 calendar days before the Account is established, another account with us for at least 30 calendar days. Unless each of you already have another Account with us where the first deposit was made more than 30 days before the transaction. We will tell you the results within 3 business days after completing our investigation. If we decide that there was no error, we will send you a written explanation. You may ask for copies of the documents that we used in the investigation.

All correspondence should be directed to the address below. Business Day -For purposes of these disclosures, our business days are Monday through Friday. Holidays are not included. Contact Information -You may contact us in writing or by telephone at:

101 Credit Union Way PO Box 70 Edwardsville, Illinois 62025

ATTN: Member Service (618) 345-1000 or (800) 888-4728.

Right to Documentation

Direct Deposits - If you have arranged to have direct deposits made to your account at least once every 60 days from the same person or company, the person or company making the deposit will tell you every time they send us the money. You can call us at the phone number in this brochure, or you may use the Credit Union’s electronic banking system if you have registered for the system, to find out whether or not the deposit has been made.

Periodic Statements - You will get a monthly account statement from us for your Share Draft (Checking) accounts. You will get a quarterly account statement from us for your Share Savings accounts, unless there are transfers in a particular month, then you will receive a monthly account statement. In any case, you will get a statement at least

quarterly.

Stop Payment Procedures and Notice of Varying Amounts

Right to Stop Payment and Procedure for Doing So - If you have told us in advance to make regular payments out of your account, you can stop any of these payments. Here is how: Call or write us at the telephone number or address listed in this brochure in time for us to receive your request three business days or more before the payment is scheduled to be made. If you call, we also require you to put your request in writing and get it to us within 14 days after you call.

We will charge you for each stop payment order you give. (See Fee Schedule)

Notice of Varying Amounts -If these regular payments may vary in amount, the person you are going to pay will tell you, 10 days before each payment, when it will be made and how much it will be. (You may choose instead to get this notice 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.)

Liability for Failure to Stop Payment of Preauthorized Transfer - If you order us to stop one of these payments three business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages.

Our Liability

Liability for Failure to Make Transfers - If we do not complete a transfer to or from your account on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages.

However, there are some exceptions. We will NOT be liable, for instance:

1 If, through no fault of ours, you do not have enough money in your account to make the transfer.

2 If the transfer would go over the credit limit on your overdraft line.

3 If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions we have taken.

4 If the automated teller machine where you are making the transfer does not have enough cash.

5 If the terminal or system was not working properly and you knew about the break down when you started the transfer.

6 There may be other exceptions in our agreement with you.

Disclosure of Account Information to Third Parties We will disclose information to third parties about your account or the transfers you make:

1 Where it is necessary for completing transfers; 2 In order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant; 3 In order to comply with government agency or court orders; or

4 If you give us written permission.

Unauthorized Transfers

If any transaction involves the use of an access card (”Card”) or personal identification number (”PIN”) tell us AT ONCE if you believe your Card or PIN has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your Account (plus your maximum overdraft line of credit if any). If you tell us within 2 business days, you can lose no more than $50 if someone used your Card or PIN without your permission. If you do NOT tell us within 2 business days after you learn of the loss or theft of your Card or PIN, and if we can prove we could have stopped someone from using your Card or PIN without your permission if you told us, you could lose as much as $500.

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

If you believe that someone has transferred or may transfer money from your account without your permission, call or write us at the telephone number or address listed in this brochure.

Error Resolution

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call, write or email us at the telephone number or address listed in this brochure, as soon as you can, if you think your statement or receipt is wrong or if you need more

information about a transfer listed on the statement or receipt. We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared.

1 Tell us your name and account number. 2 Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information.

3 Tell us the dollar amount of the suspected error. If you telephone us or tell us orally, we may require that you send us your complaint or question in writing within 10 business days.

We will send you the results of our investigation within 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 45 days to investigate your complaint or question. If we decide to do this, we will credit your account within 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 or question in writing and we do not receive it within 10 business days, we may not credit your account. We will tell you the results within 3 business days after completing our investigation. If we decide that there was no error we will send you a written explanation. You may ask for copies of the documents that we used in our investigation. The 10-day time period described above is increased to 20 days if the error involves an electronic funds transfer to or from your account within 30 days after the first deposit to the Account was made. The 45-day time period described above is increased to 90 days if a notice of error involves an electronic funds transfer that was not initiated within a state, or resulted from a point-of-sale debit card transaction, or occurred within 30 days after the first deposit to the account was made.

Business days are Monday through Friday excluding federal holidays.

As result of a request or an order by you, should we ever disburse a greater amount of funds based on your request to any person or entity that you know (e.g., relative, friend, employee, business associate, etc.), you agree to assist us in recovering our funds, including participation in litigation and prosecution.

Funds Availability policy

This disclosure describes your ability to withdraw funds at Scott Credit Union. It only applies to the availability of funds in transaction accounts. The credit union reserves the right to delay the availability of funds deposited to accounts that are not transaction accounts for periods longer than those disclosed in this policy. Please ask us if you have a question about which accounts are affected by this policy.

Your Ability To Withdraw Funds -Our policy is to make funds from your cash and check deposits available to you on the first business day after the day we receive your deposit. Electronic direct deposits will be available on the day we receive the deposit. Once they are available, you can withdraw the funds in cash and we will use the funds to pay checks that you have written. 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 11:59PM 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 11:59PM or on a day we are not open, we will consider that the deposit was made on the next business day we are open.

Holds on Other Funds (Check Cashing) -If we cash a check for you that is drawn on another bank, we may withhold the availability of a corresponding amount of funds that are already in your account. Those funds will be available at the time funds from the check we cashed would have been available if you had deposited it (either 2 or 11 business days).

Holds on Other Funds (Other Account) -If we accept for deposit a check that is drawn on another bank, we may make funds from the deposit available for withdrawal immediately but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available for withdrawal until the time periods that are described elsewhere in this disclosure for the type of check that you deposited. Longer Delays May Apply - 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 business day after the day of your deposit. The first $200 of your deposits, however, may be available on the first business day. If we are not going to make all of the funds from your deposit available on the first business day, we will notify you at the time you make your deposit. 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 mail you the notice by the day after we receive your deposit. If you will need the funds from a deposit right away,

you should ask us when the funds will be available. In addition, funds you deposit by check may be delayed for a longer period under the following circumstances:

• We believe a check you deposit will not be paid. • You deposit checks totaling more than $5,000 on any one day.

• You redeposit a check that has been returned unpaid. • You have overdrawn your account repeatedly in the last six months.

• There is an emergency, such as failure of computer or communications equipment.

We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available no later than the seventh business day after the day of your deposit. Scott Credit Union reserves the right to refuse an item for deposit or cash if, in the opinion of Scott Credit Union, there is reason to doubt that the item is collectable. Scott Credit Union further reserves the right to charge back an item which is returned unpaid by the financial institution on which it is drawn, or other rights provided by law.

Special Rules for New Accounts -If you are a new member, the following special rules will apply during the first 30 days your account is open.

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Items sent for Collection -The following items are accepted “for collection only”: Insurance drafts which require a specific action prior to payment (i.e. attach title, “Upon acceptance pay to the order of”); checks drawn against foreign banks or payable in foreign currency.

Uncollected Funds - Share drafts (checks) presented against funds on hold will be returned to the financial institution of original deposit “drawn against uncollected funds.” You may be subject to charges for these items from the financial institution of original deposit.

Provisional Payment Disclosure - Credit given by us to you with respect to an Automated Clearing House credit entry is provisional until we receive final settlement for such entry through a Federal Reserve Bank. If we do not receive such final settlement, you are hereby notified and agree that we are entitled to a refund of the amount credited to you in

connection with such entry, and the party making payment to you via such entry (i.e. the originator of the entry) shall not be deemed to have paid you in the amount of such entry. Notice Disclosure - Under the Operating Rules of the National Automated Clearing House Association, which are applicable to ACH transactions involving your account, we are not required to give next day notice to you of receipt of an ACH item and we will not do so. However, we will continue to notify you of the receipt of payments in the periodic statements we provide to you.

Truth-in-Savings Disclosure

Share Savings, Holiday Club And IRA Share Accounts

Opening Balance Requirement - $5

Rate Information - The dividend rate and annual percentage yield may change on the first day of each dividend period. We may change the dividend rate for your account as determined by the credit union board of directors.

Compounding and Crediting - Dividends will be

compounded monthly and credited to your account on the last day of each calendar month.

Dividend Period - 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.

Effect of Closing Account - If you close your account before dividends are credited, you will forfeit all accrued dividends for

that period.

Minimum Balance Requirements - You must maintain a minimum balance of $100 in your account each day to obtain the disclosed annual percentage yield for that day. There is no service charge if your balance falls below the minimum, provided that the amount equal to at least one share ($5) remains in the account.*

Daily Balance Computation Method - Dividends are calculated by the daily balance method which applies a daily periodic rate to the current balance in the account each day. Accrual of Dividends on Noncash Deposits -Dividends will begin to accrue on the first business day that you deposit noncash items (for example, checks) to your account. Transaction Limitations - You are permitted to make no more than six transfers and withdrawals, or a combination of transfers and withdrawals, per calendar month to another account, (including a transaction account), at Scott Credit Union or to a third party. If you exceed the transfer limitations set forth above in any statement period, your account will be subject to closure by us and a fee as disclosed in the fee schedule. Transactions on IRA Share Accounts are restricted by IRS regulations and are detailed in the disclosure statement section of the IRA custodial agreement.

Par Value of a Share - The par value of a share in this account is $5.*

Share Draft (Checking) Account Extreme Checking - To earn the rate, you must perform the following each month:

1. Receive your monthly statement electronically

2. 12 Debit Card purchases posted and cleared by the end of the last business day each month

At any time you do not meet either of these 2 requirements, you will not earn the extreme checking interest rate. Rate Information - The dividend rate and annual percentage yield may change on the first day of each dividend period. We may change the dividend rate for your account as determined by the credit union board of directors.

Compounding and Crediting - Dividends will be compounded monthly and credited to your account on the last day of each calendar month.

Dividend Period - 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.

Effect of Closing Account - If you close your account before dividends are credited, you will forfeit all accrued dividends for that period.

Daily Balance Computation Method - Dividends are calculated by the daily balance method which applies a daily periodic rate to the current balance in the account each day. Accrual of Dividends on Noncash Deposits -Dividends will begin to accrue on the first business day that you deposit noncash items (for example, checks) to your account. Transaction Limitations - No transaction limitations apply to this account unless otherwise stated in the Common Features section.

Courtesy Pay - is a service that allows us to pay checks and ACH items presented against our member's checking account even if it causes the account to become overdrawn. If you choose, this service can also be used to pay every day Debit Card transactions. Courtesy Pay may provide certain

accountholders in "good standing" with the ability to overdraw their checking account up to $500. The Courtesy Pay limit includes any overdraft fees assessed.

If the account has been open at least 90 days and maintained in good standing, defined as A) Making regular deposits sufficient to cover transactions; B) Bringing the account to a positive balance at least once every thirty days, and; C) There are no legal orders outstanding on your account, we may, at our sole discretion, pay overdrafts up to the limits mentioned above, including our normal Non-Sufficient Funds charge(s). Whether we pay or return an item, your account will be assessed a Non-Sufficient Funds charge. Our current charge per item is $27 which may be changed with prior notice to you. Share draft items are cleared for payment first and then electronic/ACH transactions.

Courtesy Pay offers additional flexibility and convenience in managing accountholder funds, and provides peace of mind knowing that items may be paid up to the authorized overdraft limit. Using Courtesy Pay may be more costly than other overdraft payment options we may offer. Please speak to a representative to see if you qualify.

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transactions with this service. It is not a loan. No additional agreements need to be signed, and it costs nothing unless the privilege is used - by initiating checks, electronic funds transfers, or other payment or withdrawal requests for more than is on deposit in the account. If you maintain the account in good standing and have need for this "courtesy", we may, at our sole discretion, pay the item(s) up to the authorized limit, and we will charge the account our normal Non-Sufficient Funds charge for each item that overdraws the account. If your account does not remain in good standing, we may withdraw this “courtesy” until we determine your account is in good standing. Unless you have applied for and received an overdraft line of credit, we do not have to pay your overdrafts. However, if you do not have an overdraft line of credit, or do not want us to overdraw your account under any circumstances even as a courtesy to clear an item that you have written, you must tell us not to do so.

Although you are not charged for using Courtesy Pay unless you have an overdraft, you may opt-out of Courtesy Pay at any time. If you do not want us to pay your overdrafts, you must tell us (“opt-out”) by writing to us at 1100 Belt Line Road, Collinsville, IL 62234 or by calling (618) 345-1000 or (800) 888-4728. If you receive a direct deposit social security or other federal benefit check, you must opt-out if you do not want us to apply those funds to repay an overdraft.

Money Market Accounts

Variable Rate - Your dividend rate and Annual Percentage Yield may change. At our discretion we may change the dividend rate at any time.

Compounding and Crediting - Dividends will be

compounded monthly and credited to your account on the last day of each calendar month.

Minimum Balance Requirements - You must maintain a minimum daily balance of $2,500 in your account to earn

the disclosed rate and annual

percentage yield for this account.

If on any day your account falls

below $2,500 no dividends will

accrue. Daily Balance

Computation Method - Dividends are calculated by the

daily balance method which applies a daily periodic rate to the current balance in the account each day.

Accrual of Dividends on Noncash Deposits -Dividends will begin to accrue on the first business day that you deposit noncash items (for example, checks) to your account. Transaction Limitations - During any statement period, you may not make more than six withdrawals or transfers to another account of yours at the credit union or to a third party by means of a preauthorized or automatic transfer or telephonic order of instruction. If you exceed the transfer limitations set forth above in any statement period, your account will be subject to closure by us and a fee as disclosed in the fee schedule.

Health Savings Account

Variable Rate - Your dividend rate and Annual Percentage Yield may change. At our discretion we may change the dividend rate at any time.

Compounding and Crediting - Dividends will be compounded monthly and credited to your account on the last day of each calendar month.

Daily Balance Computation Method - Dividends are calculated by the daily balance method which applies a daily periodic rate to the current balance in the account each day. Accrual of Dividends on Noncash Deposits -Dividends will begin to accrue on the first business day that you deposit noncash items (for example, checks) to your account.

Common Features on All Accounts Bylaw Requirements - You must deposit and maintain a sum equal to one share in your Share Savings account as a prerequisite for membership.

Transaction Limitation - We reserve the right to, at any time, require not less than seven days notice in writing before each withdrawal from an interest-bearing account other than a time deposit, or from any other savings account as defined by Regulation D.

Nature of Dividends - Dividends are paid from current income and available earnings, after required transfers to reserves at the end of a dividend period.

National Credit Union Share Insurance Fund -Member accounts in this credit union are federally insured to at least $250,000 by the National Credit Union Share Insurance Fund.

USA Patriot Act

Scott Credit Union will notify new members and customers about the credit union’s Member Identification Policy by: lobby notice, notice posted on the website, through separate written disclosures, on the account agreement, lobby notice at participating automobile dealerships, etc. The language used to provide notice is:

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.

What this means for you: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We also ask to see your driver’s license or other identifying information.

SCOTT CREDIT UNION 101 Credit Union Way Edwardsville, IL 62205

Phone: (618) 345-1000 Toll free: (800) 888-4728 Fax: (618) 345-2447

Email: [email protected]

www.scu.org

*$5 share requirement and par value do not apply to Holiday Club, Money Market or IRA Share accounts.

For locations and information: (618) 345-1000 • (800) 888-4SCU