PATRIOT ACT
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 that means to you: When you
IMPORTANT DOCUMENTS PLEASE KEEP FOR YOUR RECORDS
ACCOUNT AGREEMENT
AND TRUTH-IN-SAVINGS DISCLOSURE Page
PART I—PAYMENT OF DIVIDENDS
Payment of Dividends ... 2
PART II—TERMS AND CONDITIONS Terms and Conditions Applicable to: All Accounts. ... 2
Individual and Joint Accounts ... 9
Pay-on-Death (POD) Designations ...10
Living Trust Accounts ...10
Uniform Transfer to Minors’ Accounts ...10
Fiduciary Accounts...11
Sole Proprietorship Accounts ...11
Corporate, Partnership and Unincorporated Association Accounts ...12
Savings and Holiday Club Accounts ...12
Checking Accounts ...12
Courtesy Pay Agreement ...17
Substitute Checks and Your Rights ...19
Money Market Accounts. ...20
IRA Share Accounts. ...20
Term Share (Certificate) Accounts. ...21
Individual Retirement Accounts ...21
PART III Instructions to Payer’s Request for Taxpayer Identification Number and Certification (IRS Form W-9) ...21
PART IV (A) Disclosure of Funds Availability For Accounts Other Than Term Share (Certificate) Accounts ...27
(B) Special Notice Regarding Endorsement Standards...29
(C) Funds Transfer Agreement and Notice ...29
ELECTRONIC SERVICES DISCLOSURE AND AGREEMENT General Disclosures Applicable to all Electronic Services ...33
Preauthorized Deposits ...36
Preauthorized Payments. ...37
Quickline. ...38
Personal Computer Electronic Banking & Mobile Banking. ...38
ATM ...40
Point-of-Sale ...43
Right to Receive Documentation ...43
Liability for and Reporting Unauthorized Transactions ...44
Regulation D Restrictions ...44
Verification ...45
ADDITIONAL CREDIT UNION DISCLOSURES & FORMS Financial Elder Abuse Reporting Act ...46
Member Choices ...47
ACCOUNT AGREEMENT AND
TRUTH-IN-SAVINGS DISCLOSURE
In the following Agreement and Disclosure, the words “you,” and “your” mean each and all of those (whether one or more persons) who are subject to this Agreement and Disclosure as a result of signing an Account Signature Card or opening one or more account(s) with Southland Credit Union. The words “our,” “us,” and “we” mean Southland Credit Union.
I. PAYMENT OF DIVIDENDS
Dividend Rates: The frequency and conditions upon
which dividends are paid on all accounts are in accordance with the Bylaws of this Credit Union, state law, and the Truth-in-Savings Act and Regulations. Dividends are paid from current income and available earnings, after required transfers to reserves at the end of a dividend period. For all accounts except Term Share (Certificate) and IRA Certificate Accounts, the Dividend Rate and Annual Percentage Yield (APY) may change every month as determined by the Credit Union’s Board of Directors. Dividends on Money Market Accounts can change weekly. For specific dividend rate(s) for each type of dividend bearing account, you should refer to the Dividend Rate Sheet, which is incorporated by this reference. For all accounts except Term Share (Certificate) and IRA Certificate Accounts, dividends will be compounded monthly and will be credited monthly. For example, the beginning date of the first dividend period of the calendar year is January 1 and the ending date of such dividend period is January 31. All other dividend periods follow this same pattern of dates. The dividend declaration date follows the ending date of a dividend period, and for example is January 31. Dividends on Term Share (Certificate) Accounts are compounded and credited as set forth in your Certificate and IRA Account Agreement and Disclosure. If you close your account before dividends are credited, you will not receive the accrued dividends.
Balance Computation Method: Dividends are calculated
by the daily balance method, which applies a daily periodic rate to the balance in the account each day. Dividends will begin to accrue on the business day you deposit non-cash items (e.g., checks) to your account.
II. TERMS AND CONDITIONS
TERMS AND CONDITIONS APPLICABLE TO ALL ACCOUNTS:
1. You must be and remain a member in good standing to maintain any account. The par value of a share in this Credit Union is $25.00. In order to become a member, you must purchase one (1) share or pay a one-time Membership Entrance Fee as disclosed on the Schedule of Fees and Charges. If your membership is based on the purchase of a share, you must maintain the share value in your primary
-2-savings account to remain a member in good standing. 2. All accounts (except checking accounts) are not
transferable except as defined in 12 CFR, Part 204. For all accounts except checking accounts, during any statement period, you may not make more than six (6) withdrawals or transfers to another Credit Union account of yours or to a third party by means of a preauthorized or automatic transfer or telephonic order or instruction. To help you understand these Reg. D savings account
transaction limitations, and to avoid excess activity charges, please review the following information: Non-Limited Transactions:
• Deposits
• ATM cash withdrawals and transfers (subject to the daily amount limits and sufficient available funds)
• Withdrawals made in person, by mail, or by messenger at a Southland branch
• Transfers made in person at a Southland branch • Automatic transfers to repay your Southland loan Limited Transactions:
• Checks, point-of-sale (POS) transactions, or debit card purchases
• Automatic transfers to another deposit account at Southland
• Automatic transfers to a third party or another institution • Telephone transfers, including Quickline and those
initiated by phone call, fax or email through a credit union representative
• eBranch online banking transfers and ePay bill payments 3. Our delay in enforcing any of the terms and conditions of
this Agreement and Disclosure shall not prohibit us from enforcing such terms and conditions at a later date. 4. We reserve the right upon thirty days (30) written
notice to change any provision of or establish new provisions to this Agreement and Disclosure.
5. You authorize us to accept items payable to any account owner for deposit to your account from any source without questioning the authority of the person making the deposit, and to give cash back to any authorized signer(s) or designated agent on any check payable to any one or more of the account owners, whether or not it is endorsed by you. 6. We may endorse and/or collect items deposited to your
account without your endorsement, but may require your personal endorsement prior to accepting an item for deposit. If you deposit items that bear the endorsement of more than one person or persons that are not known to us or requires the endorsement of more than one payee, we may refuse the item or require all endorsers to be present or to have their endorsements guaranteed before we accept the item. 7. You understand and agree that we may utilize
automated means to process checks and other items
-3-
-4-written on or deposited to your account. Although we may manually review checks or other items drawn on your account, you understand and agree reasonable commercial standards do not require us to do so. 8. We will mail all statements and other notices only to the
person whose signature appears first on the Account Signature Card. You shall exercise reasonable care and promptness examining your statements and must promptly notify us of any error or unauthorized payment including but not limited to an altered item or an unauthorized signature. If you fail to uphold these duties, you understand and agree that you are precluded from asserting the error or unauthorized payment against us if we: 1) suffer a loss on the item because of your failure; or 2) we pay on another item presented by the same wrongdoer if the payment was made before you properly notified us. Notification must be within thirty (30) days of the date of the statement. If you fail to uphold your duties but you can prove that we failed to exercise ordinary care in the payment of the relevant items, then the above preclusion will not apply and the loss on the items will be allocated between the Credit Union and you to the extent our respective actions contributed to the loss. If you have failed to examine your statement and report any unauthorized item one (1) year or more after your statement or the item has been made available, you cannot recover from us even if we failed to exercise ordinary care in paying the item. 9. You or we may terminate your account(s) at any time. You
understand and agree, however, that our authority may not be changed or terminated except by written notice to us, which will not affect prior transactions. Moreover, if we receive conflicting claims to funds in an account we hold, we may, at our discretion, restrict the account and deny access to all; close the account and send the funds to the owner or owners of the account, according to our records, at the statement mailing address; interplead all or any portion of the funds from an account to the court; or hold the funds, without liability to anyone, pending resolution of the claim to our satisfaction. 10. We reserve the right to close any account(s) discovered
to be deliberately manipulated to our detriment and/or our membership. “Manipulation” includes, but is not limited to, kiting and repeated patterns of transactions which have no apparent business reason other than to take advantage of Regulation “CC” hold periods and/or “interest float” to our detriment. 11. The credit union reserves the right to restrict services
and limit access for members who commit significant financial misconduct, cause a loss to the credit union, or exhibit highly disruptive or abusive behavior.
-5-Signature Card shall be valid and discharge us from liability. Without limitation to the foregoing, we may honor checks drawn against your account by authorized signers, even if the checks are made payable to them, to cash or for deposit to their personal accounts. We have no duty to investigate or question withdrawals or the application of funds.
13. We reserve the right to require you to give not less than seven (7) and up to sixty (60) days written notice of your intention to withdraw funds from any account except Checking Accounts. 14. You understand and agree that Individual, Joint, Trust,
and Pay-on-Death accounts may be subject to Multiple Party Accounts Law, Division 5 of the California Probate Code, as now in effect or hereafter amended.
15. Ownership for the primary account and all sub-accounts shall be established and determined by the most recent Account Signature Card or other document(s) evidencing such account(s). A different form of ownership may be established by executing a new Signature Card. A new account number will be assigned. The word “owner(s)” means the owner of the funds in the case of an individual account and it means the joint owners (both as an individual and as a group) in the case of a joint or other account with multiple parties. 16. You agree to notify us promptly of any change of address.
You may notify us in person at our office or by sending a written and signed notice to SOUTHLAND CREDIT UNION, P.O. Box 3003, Los Alamitos, CA 90720-1303.
17. You are required to keep us informed of your current address. In the event that you fail to do this, a charge may be made to your account for the actual cost of a necessary locator service paid to a person or concern normally engaged in providing such service and incurred in determining your address. 18. All non-cash payments shall be credited subject to final
payment on the day of deposit. Your right to withdraw the funds represented by certain checks, savings or other items you deposit may be delayed for several days. You will be notified if your right to withdraw will be delayed. You should refer to the Credit Union’s Disclosure of Funds Availability Policy for further details. 19. If a check or other item which we cash for you or which
-6-may do so without telling you the check was not paid or that we are presenting it again. We may charge a fee for each deposited or cashed check charged back to your account. We may, at our option, notify you, by telephone or in writing, if a check has been returned unpaid and the fee charged. 20. You agree that we will not be responsible for any damages
you incur in the event you deposit an item with us which is subsequently returned unpaid by the paying bank and that return is “late” due to markings on the back of the item caused by you or a prior endorser. 21. Although we are not obligated to, we may pay or accept
checks and other items bearing restrictions or notations (e.g., “Void after 6 months,” “Void over $50.00,” “Payment in Full,” and the like), whether on the front or back, in any form or format. If you cash or deposit an item or write a check with such notation, you agree that it applies only between you and the payee or maker. The notation will have no effect on us, and you agree to accept responsibility for payment of the item. You agree to indemnify and hold us harmless from any claim or alleged loss of any maker or payee involving such notations, whether you are the maker or payee or the funds are otherwise deposited into an account in which you have an interest. 22.We are under no obligation to pay a check that is presented
more than six (6) months after its date, but we may do so at our discretion and charge your account without liability, even if the presentation occurs after the expiration of a stop payment order or notice of postdated change. You agree that we are not required to identify stale dated checks or seek your permission to pay them. 23. All accounts are subject to our Schedule of Fees
and Charges (herein “Schedule”) and the Deposit Rate Sheet, which accompanies this Agreement and Disclosure and is incorporated by this reference. We shall debit applicable fees and charges against any account you own (including accounts on which you are a joint owner). If sufficient funds are not available, the fees and charges are payable on demand and, for checking accounts, will be treated as an overdraft. 24. California law states that inactive account balances in
savings, checking, and matured Term Share (Certificate) accounts must be turned over (“escheat”) to the state after a period of three (3) years if you have not:
a. Increased or decreased the amount of any of your account(s) with us (if the account statements are sent to the same address) or presented an appropriate record for crediting of interest or dividends or cashed a dividend check from any of your accounts with us; or b. Corresponded in writing or electronically
with us concerning the account; or
c. Otherwise indicated an interest in the account as evidenced by a memorandum on file with us. We may charge a fee for mailing an escheat notice if the
-7-money orders escheated to the state. To recover funds turned over to the state, you must file a claim with the state. Your deposit account will not escheat to the state, however,
if, during the previous three (3) years, you have owned another deposit account with the Credit Union and, with respect to that deposit account, you have done any of the acts described in paragraphs a, b, or c above, and, with regard to the deposit account that would otherwise escheat, we have “communicated” (i.e., sent account statements or statements of interest paid for federal and state income tax purposes) electronically or in writing with you at the address to which communications regarding the other deposit account are regularly sent. 25. We may but are not obligated to transfer funds from your
savings accounts or loan accounts on your written, electronic (if applicable), or oral request. You understand and agree that no transfer will be made unless there are sufficient available funds on deposit or sufficient credit available at the time of transfer. You agree that any such transfer(s) shall be in the exact amount authorized and will be processed only on our “business days.” If a transfer is to occur on a day other than a business day, such transfer will occur on the next business day. Moreover, if funds are not available for the transfer on the day authorized, the transfer will not occur. 26. Federal law requires us to report certain domestic currency
transactions and foreign transactions. This reporting applies to all member accounts at the Credit Union. 27. We agree to retain and furnish to you, if requested, photocopies of certain records pertaining to your account and that these records for the time frame required by law will be available to you. You agree to pay applicable fees for those copies.
28. You understand and agree that we must comply if we are served with any notice of garnishment or of attachment, tax levy, injunction, restraining order, subpoena or other legal process relating to your account that we reasonably believe is valid. We may charge a Legal Process fee, and we may assess this fee against any account you maintain with us, including the account that is the subject of the legal process. 29. In the event a cashier’s, teller’s, or certified check is lost
-8-30. You authorize us to gather whatever credit, checking account and employment information we consider appropriate from time to time. You understand that this will assist us, for example, in determining your initial and ongoing eligibility for your account and/or in connection with making future credit opportunities available to you. You authorize us to give information concerning our experiences with you to others. 31. We are not responsible for any loss or damage that
results from your negligence, including without limitation, your failure to adequately safeguard your blank checks or other personal information or means of access to your account. We are also not responsible for items lost while not in our possession.
32. Federal law requires that we obtain and have certified by you a Taxpayer Identification Number (TIN) on all accounts. We will not open an account without this identification number. For additional information on this requirement, you should read “INSTRUCTION TO PAYER’S REQUEST FOR TAXPAYER IDENTIFICATION NUMBER AND CERTIFICATION (IRS FORM W-9).” These instructions are found in Section III of this Agreement and Disclosure. In addition to any other rights that we may have, you agree
that any deposits or future deposits in or other credits to any account in which you may now or in the future may have an interest are subject to our right of off-set for any liabilities owed to us by (e.g., overdrafts and any related fees and charges) and such is applicable irrespective of any contribution to the account or source of funds in the account. 33. In the event that a negative balance is created in your
account (whether due to ATM activity, nonsufficient funds activity, Credit Union imposed fees and charges, or otherwise) or you have other outstanding financial obligations of any kind owed to us, you understand and agree that we may transfer funds to such account from any other account (excluding IRA accounts), including account(s) upon which you are a joint owner, in an amount equal to the negative account balance or the outstanding financial obligation. 34. You agree to repay any negative share balance within one
hundred twenty (120) days, in the event the Shares account becomes overdrawn, or otherwise has a negative balance. 35. In the event any of your actions cause us to sustain a loss of
$10.00 or more, we will deny you the right to vote and access to all Credit Union benefits and services (except for a single non-dividend earning primary share savings account). 36. You authorize us to initiate and/or adjust your
direct deposit and/or payroll deduction amount(s) on your behalf according to your instructions. 37. Pursuant to Federal Law, the Credit Union must verify
-9-means “each formal banking or business relationship established to provide ongoing services, dealings, or other financial transactions.” For example, a deposit account, a transaction or asset account, and a credit account or other extension of credit would each constitute an account. Due to the high risk and nature of the business, SCU will
not open any type of Money Service Business (MSB), cannabis clubs, or medical marijuana dispensaries. 38. Member accounts in this Credit Union are federally insured
by the National Credit Union Share Insurance Fund. 39. An action or proceeding by you to enforce an obligation,
duty or right arising under this Agreement and Disclosure or by law with respect to your account must be commenced within one year after the cause of action occurs.
40. You agree to indemnify, defend and hold us and our employees harmless from and against every claim, demand, action, cost, loss, liability and expense (not including attorneys’ fees) which we incur by acting in accordance with this Agreement and Disclosure or as a result of your failure to abide by its terms. 41. California law will govern your account, to the extent that
California law is not inconsistent with controlling federal law. However, California’s choice of law rules shall not be applied if that would result in the application of non-California law. 42. We, and you, agree to attempt to informally settle any
problems that might occur. If that cannot be done, we, and you, agree that a judge will hear our claims without a jury. 43. You agree to pay all the Credit Union’s costs in enforcing
this Agreement and Disclosure, including court costs, reasonable attorney’s fees and also those costs, expenses and attorney’s fees incurred appellate, bankruptcy and post-judgment proceeding, except as to the extent such costs or fees are prohibited by law.
TERMS AND CONDITIONS APPLICABLE TO ALL INDIVIDUAL AND JOINT ACCOUNTS:
1. If there is more than one owner, all agree with each other and with us that all sums now paid in or hereafter paid in by anyone or all account owner(s) including all dividends thereon, if any, are and shall be owned by all account owner(s)
jointly and equally regardless of their net contributions
with a right of survivorship and shall be subject to withdrawal or receipt by any of the account owner(s) or the survivor(s) of any of the account owner(s). Any such payment shall be valid and shall discharge us from any liability. 2. We are not obligated to inquire as to the source of funds
received for deposit to a joint account or to inquire as to the proposed use of any sums withdrawn from the account for the purpose of establishing net contributions.
-10-privileges is permitted by virtue of a transfer of funds. 4. Being a joint owner of a member’s account does not
constitute Credit Union membership for the joint owner. Joint owners may be non-members. 5. Except as set forth herein or in the applicable loan
agreement(s), you may pledge any or all of the funds on deposit in an account as security for any loan(s) subject to then current loan policies. Further, a pledge of funds by any one of you shall be binding on all of you. You may not withdraw funds that are pledged as security on loan(s) without the written approval of a loan officer, except to the extent that such funds exceed your total primary and contingent liability to us. You may not withdraw any funds below the amount of your primary or contingent liability to us if you are delinquent as a borrower, or if borrowers for whom you are cosigner, endorser, or guarantor are delinquent, without the written approval of a loan officer. 6. A right of survivorship arising from the express terms
of a joint account cannot be changed by a will.
TERMS AND CONDITIONS APPLICABLE TO ALL PAY-ON-DEATH (P.O.D.) DESIGNATIONS:
1. If you have made a Pay-On-Death (P.O.D.) designation, all sums are payable on request to you during your lifetime and upon your death, first to us to the extent of any outstanding matured or unmatured debts owed to us by you and second to your designated P.O.D. payee(s) or if the account is jointly owned, to one or more account owner(s) during their lives and on the death of all of them, first to us to the extent of any outstanding matured or unmatured debts owed to us by any of you and second to one or more payees then surviving in equal and individual shares. If a P.O.D. payee dies before all of the account owner(s), then upon the death of all of the owner(s), all sums are divided equally among the surviving P.O.D. payees. 2. A Pay-On-Death designation cannot be changed by a will.
TERMS AND CONDITIONS APPLICABLE TO ALL LIVING TRUST ACCOUNTS:
1. If you are a trustor/trustee and want to establish an account in connection with a written trust, we may require you to provide us with a notarized trust certification confirming your power as a trustee prior to opening the account. 2. We are not required to know, understand, interpret
or enforce the terms of the Trust Instrument. 3. You acknowledge that the Account is governed by the
-11-Multiple Party Accounts Law.
TERMS AND CONDITIONS APPLICABLE TO ALL UNIFORM TRANSFER TO MINORS’ ACCOUNTS:
1. The transferor/custodian is opening an account as custodian for the minor named on the Account Signature Card under the Uniform Transfers to Minors Act. The transfer of money to the minor named on the Account Signature Card, which transfer shall be deemed to include all dividends and any future deposits or other additions thereto, is irrevocable and is made in accordance with and to include all provisions of the said statute of the State of California now in effect or hereinafter amended. 2. You acknowledge that by signing the Account Signature
Card, you have received the funds deposited to the account as custodian for the minor named herein under the Uniform Transfers to Minors Act and you agree to the applicable terms and conditions set forth in this Agreement and Disclosure as well as the terms and conditions of the Account Signature Card.
3. The successor custodian named on the Account Signature Card shall serve if you should be unable to act as custodian because you resign, die, or become legally incapacitated. 4. You may not pledge any or all of the funds on deposit
in the account as security for any loan(s). 5. Custodial accounts are not subject to the
Multiple Party Accounts Law.
TERMS AND CONDITIONS APPLICABLE TO ALL FIDUCIARY ACCOUNTS:
1. You are duly appointed and acting in the capacity of Executor, Administrator, Guardian or Conservator. By the authority vested in you, you are acting individually or jointly, authorized and empowered to transact business of any character in connection with this account. Your authority shall continue in force until written, notice to the contrary, is received by us. 2. If the account is blocked, you understand and agree
that you shall file with the court a written receipt including an agreement with us that the funds in the account, including any dividends, shall not be withdrawn or pledged except upon court order. 3. Fiduciary accounts are not subject to the
Multiple Party Accounts Law.
TERMS AND CONDITIONS APPLICABLE TO ALL SOLE PROPRIETORSHIP ACCOUNTS:
-12-received are not withdrawable until collected. 2. Sole proprietorship accounts are not subject
to Multiple Party Accounts Law.
TERMS AND CONDITIONS APPLICABLE TO ALL CORPORATE, PARTNERSHIP AND UNINCORPORATED ASSOCIATION ACCOUNTS:
1. The person(s) named on the Account Signature Card is duly authorized to make the certification, certify that at a regularly held meeting the person(s) named were elected or appointed officers of said corporation or organization or are duly acting partners of said partnership, and that by virtue of the authority vested in them by the constitution, bylaws or otherwise, any one (1) of the signators, as named on the Account Signature Card, is authorized and empowered to transact business of any character whatsoever in connection with the account. You certify that the signature(s) appearing on the Account Signature Card are the genuine signature(s) of said authorized person(s); and that your authority shall continue in force until written notice to the contrary is received by us. 2. Corporate, partnership and unincorporated association
accounts are not subject to the Multiple Party Accounts Law.
TERMS AND CONDITIONS APPLICABLE TO ALL SAVINGS ACCOUNTS:
1. The minimum deposit required to open a Primary Savings Account is the purchase of one (1) share at $25.00 unless you have paid the Entrance fee as disclosed on the Schedule of Fees and Charges. 2. There may be a monthly service fee for this account
as disclosed on the Schedule of Fees and Charges. 3. You must maintain the minimum daily balance as set
forth in the Deposit Rate Sheet in your account each day to obtain the disclosed Annual Percentage Yield (APY).
TERMS AND CONDITIONS APPLICABLE TO ALL HOLIDAY CLUB ACCOUNTS:
1. There is no minimum deposit required to open the Holiday Club savings account.
2. There is no minimum balance required to obtain the Annual Percentage Yield (APY) as disclosed on the Dividend Rate Sheet.
3. If the balance in the account exceeds $100.00 on November 1st of each year, the funds will be transferred to your checking account. If you do not have a checking account, the transfer will be to your Primary Share Savings Account. 4. Balances of $100.00 or less on each November 1st will remain
in the Holiday Club account and may be withdrawn.
-13-ACCOUNTS:
1. Terms And Conditions For Basic Checking Accounts a. There is no minimum deposit or daily balance
requirements to keep this account open. b. There is no monthly service fee for this account. c. Dividends will not be earned or paid
on the Basic Checking Account.
2. Terms And Conditions For Cash Rewards Checking Accounts a. There is no minimum deposit to open this account. b. There is no daily balance requirement to keep this
account open.
c. There is no monthly service fee for this account. d. Qualifications required to earn rewards:
i. Be enrolled for Direct Deposit (this is described as having one (1) ACH debit or credit transaction), make one (1) ePay transaction posted per month, or make one (1) eTransfer transaction posted per month. ii. Perform ten (10) Debit Card purchases posted per
month (Signature-based or Point of Sale (POS) transactions only, ATM withdrawals do not count.) iii. Be enrolled to receive eStatements
e. If these qualifications are not met, promotional rewards and refund of ATM charges will not be paid.
f. If qualified, you will be refunded up to $20.00 per month for ATM Fees charged.
g. To qualify for the annual eStatement Reward, you must opt-in to receive eStatements. Additional annual rewards will only be paid if you maintain eStatements for 12 consecutive months.
3. Terms And Conditions For Opportunity Checking Accounts a. There is no minimum deposit or daily balance
requirements to keep this account open. b. There is a monthly service fee for this account as
disclosed on the Schedule of Fees and Charges. c. Dividends will not be earned or paid on
the Opportunity Checking Account.
4. Terms And Conditions For Teen Checking Accounts a. There is no minimum deposit or daily balance
requirements to keep this account open. b. There is no monthly service fee for this account. c. Dividends will not be earned or paid
on the Teen Checking Account.
d. Teen Checking Accounts are available for Members 13-19 years old. Minors under 18 require a parent or legal guardian to be a joint signer on the account. Teen Checking Accounts will convert to a Cash Rewards Checking Account at age 20. 5. We may, but are not obligated to nor shall we be liable
for our refusal to pay funds from this account:
a. When such payment would draw the account below the minimum balance for the established account (“overdrafts”).
b. If drawn by any means not authorized by the Credit Union.
-14-dates.
6. We are authorized, by you, to pay and charge to your applicable account for checks and substitute checks drawn by you and payable to any person, organization, association or corporation whom you have authorized by providing sample MICR encoded information identifying your account, provided there are sufficient funds in your account to pay such checks. You further agree, that in respect to such checks, the Credit Union’s rights shall be the same as if it were a check drawn and signed by you personally. This authority shall remain in effect until revoked by you in writing (to the Credit Union and to the agency to whom the sample MICR writing was provided) and we have had a reasonable opportunity to act on it. You also agree that if any check, ACH debit or other debit transaction is dishonored, whether with or without cause, and whether intentional or inadvertent, we shall be under no liability whatsoever, even though such dishonor results in the forfeiture of insurance, loss or damage to you of any kind. 7. If we have made payment to a holder in good faith,
we may charge your account according to: a. The original terms of your check; or
b. The terms of your completed check, unless we notice that any such completion is improper.
8. You, or any other person authorized to draw on the account, may request a stop payment of any check payable against your account, provided the request is timely and affords the Credit Union a reasonable opportunity to act upon it under its rules. You may also stop payment on a line of credit check. Your stop payment must include the account number, check number, exact amount, check date and name of payee. The Credit Union will not be liable for paying a check over a stop payment request if the request is incomplete or incorrect. You agree to indemnify, defend and hold the Credit Union harmless for all claims, actions and damages related to or arising from its action in stopping payment of any check pursuant to your request. A stop payment fee will be assessed for each stop payment request. If you give a stop payment request orally, the request will be valid for only fourteen (14) days thereafter unless confirmed in writing. A request for stop payment expires and is of no further effect one year from the date of the request. You have the burden of establishing the fact and amount of loss resulting from payment contrary to a binding stop payment request. You may not stop payment on completed electronic
point-of-sale transactions, certified checks, checks issued or guaranteed by the Credit Union.
-15-ordered in writing to stop payment by a person claiming an interest in the account under rules established be the Credit Union. Upon death, incapacitation or organization dissolution of an account holder any signatories on the account, it is the responsibility of the remaining signatories or your estate to notify the Credit Union. 10. If the Credit Union has paid a check under
circumstances giving a basis for objection by you, we shall be subrogated to the rights of:
a. Any holder in due course on the check against the drawer or maker;
b. The payee or any other holder of the check against the drawer or maker either on the item or under the transaction out of which the item arose; and c. The drawer or maker against the payee or any
other holder of the check with respect to the transaction out of which the check arose. 11. We may, without liability, accept, pay, guarantee
or charge checks to the account in any order that is convenient to the Credit Union.
12. You agree that in the event of a wrongful dishonor, which occurs by mistake, the Credit Union’s liability shall be limited to the actual damages you prove. In the event of a dishonor of any check, share draft or other debit on your account, our determination of whether sufficient funds exist in your account may be made at any time between the time the item is received and the time it is returned. If we choose to make a subsequent account balance check, we must use the last figure in deciding whether to dishonor the check, share draft or other debit. 13. In the event that you draw a check on your account with
the Credit Union, you will hold the Credit Union harmless and indemnify us from any liability that you may incur due to a delay or misrouting of the check where the delay or misrouting is caused by marking placed on the check by you or by a prior endorser that obscures any depository endorsement placed by the us or our agent. 14. You may authorize all checks from your checking account(s)
-16-accounts that have a negative balance caused directly or indirectly by overdrafts. This offset may be from any of your other accounts (except IRA accounts) or with any electronic deposit to your account including, but not limited to, direct deposit of your paycheck or Social Security payments. 16. You authorize the Credit Union to recognize the signature
of anyone who signed the Account Signature Card as authorized to transact any business on this account including, but not limited to, the causing or making of overdrafts and endorsement of checks payable to any signer of this account. Each account owner is jointly and severally responsible for paying any overdrafts created by you whether or not the account owner participated in the transaction of benefited from its proceeds. 17. If the Account Signature Card is signed by more that
one person you each hereby appoint each other as agents and attorneys in fact to overdraft any of your savings or loan accounts (including any accounts on which you are joint owners except IRA accounts). 18. You may not pledge any or all of the funds on deposit
in any checking account as security for any loan(s). 19. If this is an ORGANIZATION account (i.e., corporate,
partnership or unincorporated association account), the persons authorized to sign on this account certify that they are duly appointed officers of said organization and have the authority to transact business of any character whatsoever in connection with this account. 20. You will immediately notify the Credit Union if
your checks, or VISA Check Card, are lost or stolen. You further agree that you will be responsible for losses caused by a delay of this notification.
21. As a convenience to you, we will submit your initial order and reorders for personalized checks to the printer named on the face of the order. If the printer accepts the initial order and reorders, the printer will mail the checks either directly to you or to you in care of the Credit Union. You authorize the Credit Union to charge your account for the cost of delivered checks ordered, plus applicable sales tax and shipping costs at the fee set forth in the Schedule. You are responsible for verifying the accuracy of all information shown on your checks whether you order them through the Credit Union or elsewhere. 22. These are truncated checking accounts. Checks are
-17-23. All checks written on your account must be drawn in U. S. dollars.
COURTESY PAY AGREEMENT:
Pursuant to our commitment to provide valued service and benefits, we may pay your overdrafts that would cause your personal checking account (“Checking Account”) to have a negative (or further negative) balance, pursuant to the terms and conditions of this Agreement up to a maximum of $1,000.00, including applicable fees and charges (the “Maximum Courtesy Pay Limit”). YOU UNDERSTAND AND
AGREE THAT ANY PAYMENT MADE BY US USING COURTESY PAY WILL BE MADE ON A CASE-BY-CASE BASIS, IN OUR SOLE AND ABSOLUTE DISCRETION. You also understand
that we may decide not to apply Courtesy Pay, in whole or in part, to your Checking Account for any or no reason, including, but not limited to, our belief, whether reasonable or not, that Courtesy Pay has been or will be abused or improperly used by you in any way. However, you agree that under no circumstances shall we have any obligation to monitor your transactions or any account activity or advise you concerning any potential abuse or improper use unless we are otherwise required to do so under applicable law or agreement. We may terminate or suspend Courtesy Pay at any time without prior notice. In no event shall any termination relieve you of your obligation to repay such sums already overdrafted, overdraft fees, collection costs, and attorneys’ fees, if any. We can delay enforcing any of our rights under this Agreement without losing them. Courtesy Pay is not applicable to savings accounts and money market accounts. We may limit the number of Checking Accounts eligible for Courtesy Pay to no more than one Checking Account per household or Taxpayer Identification Number, without notice of reason or cause. Courtesy Pay is not a credit product and requires no application or credit approval process. Courtesy Pay will only be applied to your Checking Account if:
• You are a member for at least thirty (30) days; • You maintain your membership in good standing; • You have a Checking Account with the Credit
Union that is more than thirty (30) days old; • You must not be more than thirty-one (31) days
delinquent or be in default in any other respect on any loan or other obligation to us;
• There must not be any legal or administrative orders or levies against your Checking Account; We do authorize and pay overdrafts for the following types of transactions:
• Checks and other transactions made using your checking account number
• Automatic bill payments
-18-• ATM transactions
• Everyday debit card transactions
-19-in any account -19-includes the off-set of government benefits (such as Social Security and other public benefit funds) deposited to the account from which the overdraft or related fees are paid. Each owner of the Checking Account agrees to be individually and jointly obligated to repay the unpaid negative Checking Account balance and all fees and charges in accordance with the terms and conditions of this Agreement. You will be in default under the terms of this Agreement if you fail to live up to any of the terms and conditions of this Agreement or you are in default on any loan obligation with us and/or a negative balance exists in any other deposit account with us on which you are an owner. If you are in default, in addition to any other rights we may have, we may temporarily suspend overdraft privileges or terminate Courtesy Pay or close your Checking Account and demand immediate payment of the entire unpaid negative balance. You also agree to pay any collection costs, attorneys’ fees, and court costs, which you or we shall or may incur as a result of your default. You understand that we may terminate or suspend Courtesy Pay at any time without prior notice. In no event shall any termination relieve you of your obligation to repay such sums already overdrafted, overdraft fees, collection costs, and attorneys’ fees, if any. We can delay enforcing any of our rights under this Agreement without losing them. If you prefer not to have Courtesy Pay, please contact us at 800.426.1917 Monday through Friday, 8:00 a.m. to 6:00 p.m., and we will remove Courtesy Pay from your Checking Account.
SUBSTITUTE CHECKS AND YOUR RIGHTS:
What is a Substitute Check? To make check processing faster,
federal law permits banks to replace original checks with “Substitute Checks.” These checks are similar in size to original checks with a slightly reduced image of the front and back of the original check. The front of a substitute check states: “This is a legal copy of your check. You can use it the same way you would use the original check.” You may use a substitute check as proof of payment just like the original check. Some or all of the checks that you receive back from us may be Substitute Checks. This notice describes rights you have when you receive substitute checks from us. The rights in this notice do not apply to original checks or to electronic debits to your account. However, you have rights under other law with respect to those transactions.
What are my rights regarding Substitute Checks? In certain
-20-the amount of your loss or -20-the amount of -20-the substitute check, whichever is less. You also are entitled to interest on the amount of your refund if your account is an interest-bearing account. If your loss exceeds the amount of the substitute check, you may be able to recover additional amounts under other laws. If you use this procedure, you may receive up to $2,500 of your refund (plus interest if your account earns interest) within not more than ten (10) business days after we receive your claim and the remainder of your refund (plus interest if your account earns interest) not later than forty-five (45) calendar days after we received your claim. We may reverse the refund (including any interest on the refund) if we later are able to demonstrate that the substitute check was correctly posted to your account.
How do I make a claim for a refund? If you believe that
you have suffered a loss relating to a substitute check that you received and that was posted to your account, please contact us at SOUTHLAND CREDIT UNION, P.O. Box 3003, Los Alamitos, CA 90720-1303. You must contact us within forty (40) calendar days of the date that we mailed (or otherwise delivered by a means to which you agreed) the substitute check in question or the account statement showing that the substitute check was posted to your account, whichever is later. We will extend this time period if you were not able to make a timely claim because of extraordinary circumstances. Your claim must include:
• A description of why you have suffered a loss (for example, you think the amount withdrawn was incorrect);
• An estimate of the amount of your loss;
• An explanation of why the substitute check you received is insufficient to confirm that you suffered a loss; and • A copy of the substitute check [and/or] the following
information to help us to identify the substitute check: (identifying information, for example the check number, the name of the person to whom you wrote the check, the amount of the check).
TERMS AND CONDITIONS APPLICABLE TO ALL MONEY MARKET ACCOUNTS:
1. There is no minimum deposit required to open this account but a minimum deposit of $2,500.00 is required to earn dividends. 2. You must maintain the minimum daily balances
in your account for the specific Tier in order to obtain the disclosed Annual Percentage Yield (APY) as set forth in the Dividend Rate Sheet.
3. The Dividend Rate and APY are subject to change weekly as determined by the Credit Union’s Board of Directors.
TERMS AND CONDITIONS APPLICABLE TO ALL IRA SHARE ACCOUNTS:
-21-2. There is no minimum balance required to earn the Annual Percentage Yield (APY) stated on the weekly Dividend Rate Sheet.
3. The Dividend Rate and APY are subject to change weekly as determined by the Credit Union’s Board of Directors.
TERMS AND CONDITIONS APPLICABLE TO ALL TERM SHARE (CERTIFICATE) ACCOUNTS:
A Term Share (Certificate) Account is subject to the applicable terms and conditions set forth in this Agreement and Disclosure as well as the terms and conditions set forth in the Certificate and IRA Certificate Account Agreement and Disclosure.
TERMS AND CONDITIONS APPLICABLE TO ALL INDIVIDUAL RETIREMENT ACCOUNTS (IRAs):
1. An IRA is subject to the applicable terms and conditions set forth in this Agreement and Disclosure as well as the terms and conditions set forth in the IRA Share Account the “Certificate and IRA Certificate Agreement and Disclosure” and the applicable Traditional Individual Retirement or Roth IRA Disclosure Statement and Trust Agreement, which will be provided to you in accordance with applicable law.
2. There is an annual fee for this account as disclosed in the Schedule of Fees and Charges.
3. The minimum deposit required to open this account is set forth in the Deposit Rate Sheet. Additional deposits are permitted to Contributory IRAs only.
4. You may not pledge any of the funds on deposit in the account as security for any loan(s).
5. Certain federal and state penalties apply to amounts withdrawn from IRA accounts. These are set forth in applicable federal and state law and regulations which are incorporated by this reference.
6. Funds in an IRA will escheat to the state, if you have not done any of the following for a period of more than three (3) years after the funds become payable or distributable:
a. Increased or decreased principal;
b. Accepted payment of principal or income (dividends); or c. Corresponded electronically or in writing with us
concerning the funds or otherwise indicated an interest therein.
III. INSTRUCTION TO PAYER’S REQUEST FOR
TAXPAYER IDENTIFICATION NUMBER AND
CERTIFICATION (IRS Form W-9)
(Section References are to the Internal Revenue Code)
Purpose of Form:
-22-taxpayer identification number (TIN) to report income paid to you, real estate transactions, mortgage interest you paid, the acquisition or abandonment of secured property, cancellation of debt or contributions you made to an IRA.
You must use Form W-9 only if you are a U.S. citizen (including
a resident alien), to give your correct TIN to us, and, when applicable: 1) to certify that the TIN you are giving is correct (or you are waiting for a number to be issued); 2) to certify you are not subject to backup withholding; or 3) to claim exemption from backup withholding if you are an exempt payee.
If you are a foreign person, you must use a Form W-8. See Pub 515, Withholding of Tax on
Nonresident Aliens and Foreign Corporations.
Note: If we give you a form other than a W-9 to request your TIN,
you must use our form if it is substantially similar to Form W-9.
What Is Backup Withholding?
Under certain conditions we are required to withhold and pay to the IRS a specified percentage of payments. This is called “backup withholding.” Payments that may be subject to backup withholding include interest, dividends, broker and barter exchange transactions, rents, royalties, nonemployee pay, and certain payments from fishing boat operators. Real estate transactions are not subject to backup withholding. You will not be subject to backup withholding on payments you receive if you give us your correct TIN, make the proper certifications, and report all your taxable interest and dividends on your tax return.
Payments you receive will be subject to backup withholding if:
1. You do not furnish us with your TIN; or
2. You do not certify your TIN when required (see the Part III instructions or Certification for details); or 3. The IRS tells us that you furnished an incorrect TIN; or 4. You are told by the IRS that you are subject to
backup withholding because you did not report all your interest and dividends on your tax return (for reportable interest and dividends only); or
-23-PENALTIES:
Failure to Furnish TIN. If you fail to furnish your correct TIN to us,
you are subject to a penalty of $50.00 for each such failure unless your failure is due to reasonable cause and not to willful neglect.
Civil Penalty for False Information With Respect to Withholding. If you make a false statement with no reasonable
basis that results in no backup withholding, you are subject to a $500.00 penalty.
Criminal Penalty for Falsifying Information. Willfully
falsifying certifications or affirmations may subject you to criminal penalties including fines and/or imprisonment.
Misuse of TINs. If we disclose or use TINs in violation of Federal
law, we may be subject to civil and criminal penalties.
SPECIFIC INSTRUCTIONS:
Name. If you are an individual, you must generally enter the
name shown on your Social Security card. However, if you have changed your last name, for instance due to marriage, without informing the Social Security Administration of the name change, you enter your first name, the last name shown on your social security card and your new last name. If the account is in joint names, you must first list
and then circle the name of the person or entity whose number you enter in Part I of the form.
Sole Proprietor. You must enter your individual name
as shown on your social security card on the “Name” line. You may enter your business, trade or “doing business as” (DBA) name on the “Business name” line.
Limited Liability Company (LLC). If you are a
single-member LLC (including a foreign LLC with a domestic owner) that is disregarded as an entity separate from its owner under Treasury regulations section 301.7701-3,
you enter the owner’s name on the “Name” line. You
enter the LLC’s name on the “Business name” line.
Other Entities. You enter the business name as shown on
required Federal tax documents on the “Name” line. This name should match the name shown on the charter or other legal document creating the entity. You may enter any business, trade or DBA name on the “Business name” line.
Exempt from backup withholding. If you are exempt,
-24-requester the appropriate completed Form W-8.
Note: If you are exempt from backup withholding, you should still
complete the form to avoid possible erroneous backup withholding.
PART I. Taxpayer Identification Number (TIN). You must enter your TIN in the appropriate box.
If you are a resident alien and you do not have and are not eligible to get a SSN, your TIN is your IRS individual taxpayer identification number (ITIN). You must enter it in the social security number box. If you do not have a TIN, you must see How To Get a TIN below.
If you are a sole proprietor and you have an EIN, you may enter either your SSN or EIN. However, the IRS prefers you to use your SSN.
If you are an LLC that is disregarded as an entity separate
from its owner (see Limited Liability Company (LLC) above),
and is owned by an individual, you will enter your SSN (or “pre-LLC” EIN, if desired). If the owner of a disregarded LLC is a corporation, partnership, etc, enter the owner’s EIN.
Note: See the chart entitled “What Name and
Number to Give the Requester” for further clarification of name and TIN combinations.
How To Get A TIN. If you do not have a TIN, you should apply
for one immediately. To apply for an SSN, you must get Form
SS-5, Application for a Social Security Card, from your local
Social Security Administration office. You must get Form W-7, Application for IRS Individual Taxpayer Identification Number, to apply for an ITIN or Form SS-4, Application for Employer Identification Number, to apply for an EIN. You can get Forms W-7 and SS-4 from the IRS by calling 1-800-TAX-FORM (1-800-829-3676) or from the IRS Internet Web Site at www.irs.gov. If you do not have a TIN, you must write “Applied For” in the space provided for the TIN on your Account Signature Card, sign and date the form and give it to us. For interest and dividend payments and certain payments made with respect to readily tradable instruments, generally you will have 60 days to get a TIN and give it to us. The 60-day rule does not apply to other types of payments. You will be subject to backup withholding on all such payments until you provide your TIN to the requester.
Note: Writing “Applied For” on the Account Signature
Card means that you have already applied for a TIN, OR that you intend to apply for one soon.
Note: See the chart entitled “What Name and
Number to Give the Requester” for further clarification of name and TIN combinations.
Caution: A disregarded domestic entity that has a
foreign owner must use the appropriate Form W-8.
-25-To establish to the withholding agent that you are a U.S. person, or resident alien, you must sign Form W-9. You may be requested to sign by the withholding agent even if items 1, 3, and 5 below indicate otherwise. For a joint account, only the person whose TIN is shown in Part I of the W-9 should sign (when required). Exempt residents, see Exempt from backup withholding.
Signature requirements. Complete the
certification as indicated in 1 through 5 below. 1. Interest, Dividend, and Barter Exchange Accounts
Opened Before 1984 and Broker Accounts That Were Considered Active During 1983 —You must give your
correct TIN, but you do not have to sign the certification. 2. Interest, Dividend, Broker and Barter Exchange
Accounts Opened After 1983 and Broker Accounts That Were Considered Inactive During 1983 — You
must sign the certification or backup withholding will apply. If you are subject to backup withholding and are merely providing us with your correct TIN, you must cross out item 2 in the certification before signing the form. 3. Real Estate Transactions — You must sign the certification.
You may cross out item 2 of the certification.
4. Other Payment — You must give your correct TIN, but do not have to sign the certification unless you have been notified that you have previously given an incorrect TIN. “Other payments” include payments made in the course of the requestor’s trade or business for rents, royalties, goods (other than bills for merchandise), medical and health care services (including payments to corporations), payments to a non-employee for services, payments to certain fishing boat crew members and fishermen and gross proceeds paid to attorneys (including payments to corporations). 5. Mortgage Interest paid by you, acquisition or
abandonment of secured property, cancellation of debt qualified state tuition program payments, IRA or MSA contributions or distributions, and pension distributions. You must give your correct
TIN, but do not have to sign the certification.
Privacy Act Notice.
-26-You must provide your TIN whether or not you are required to file a tax return. We must generally withhold 29% of taxable interest, dividend, and certain other payments to you if you do not furnish your TIN to us. Certain penalties may also apply.
WHAT NAME AND NUMBER TO GIVE THE CREDIT UNION
For this type of account:
Given the name and SSN of:
1. Individual The individual.
2. Two or more individuals (joint account)
The actual owner of the account or, if combined funds, the first individual on the account.1
3. Custodian account of a minor (Uniform Gift to
Minors Act) The minor.
2
4a.The usual revocable savings trust (grantor is
also trustee) The grantor-trustee.
1
4b.So-called trust account that is not a legal or valid trust under state law
The actual owners.1
5. Sole proprietorship The owner.3 6. A valid trust, estate or
pension trust Legal entity.
7. Corporate The corporation.
8. Association, club, religious, charitable, educational or other tax-exempt organization
The organization.
9. Partnership The partnership.
10. A broker or registered
nominee The broker or nominee.
11. Account with the Department of Agriculture in the name of a public entity (such as a state or local government, school district or prison) that receive agricultural program payments.
The public entity.
NOTE: If no name is circled when there is more than one name
listed, the number will be considered to be that of the first name listed.
1. You must list first and circle the name of the person whose number you furnish. If only one person on a joint account has an SSN, that person’s number must be furnished.
2. You must circle the minor’s name and furnish the minor’s SSN. 3. You must show your individual name, but you may also enter your
-27-IV. DISCLOSURE OF FUNDS AVAILABILITY FOR
ALL ACCOUNTS OTHER THAN TERM SHARE
(CERTIFICATE) ACCOUNTS
Our policy is to delay the availability of funds from your cash and check deposits. During the delay, you may not withdraw the funds in cash and we will not use the funds to pay checks that you have written.
(A) FUNDS AVAILABILITY POLICY
In compliance with Federal Regulation CC, Southland Credit Union adopts the following Funds Availability Policy. Our policy is to delay the availability of funds from checks that you deposit in your account at Southland Credit Union. During the delay, you may not withdraw the funds in cash, and we will not use the funds to pay share drafts or other withdrawals that you have authorized.
Determining the Availability of a Deposit
The length of the delay is counted in business days from the day of your deposit. Every day is a business day, except Saturdays, Sundays, and Credit Union holidays. If a deposit is made before 6:00 pm on a business day, we will consider that day to be the date of deposit. However, if the deposit is made after 6:00 pm, or on a day the Credit Union is not open, we will consider the deposit was made on the nest business day that we are open. I. Availability
Funds from the following deposits may be held up to the 1st business day following the banking day of deposit:
• Electronic Direct Deposit, Wire Transfers, Cash and U.S. Treasury checks that are payable to you. • Share drafts drawn on Southland Credit
Union, state and local government checks and payroll checks that are payable to you. • Cashier’s, Certified, and Treasurers
Drafts that are payable to you.
• Federal Reserve bank checks, Federal Home Loan Bank checks, pension checks and US Postal Money Orders that are payable to you.
When deposits of the above types of checks are not made in person (for example, when they are made at one of Southland Credit Union ATMs) the funds may be held up to the 2nd business day. Deposits, cash or check, made at an ATM not owned by Southland Credit Union may be held up to the 5th business day. II. Availability of Other Check Deposits
-28-III. Longer Delays May Apply
In some cases, we will not make all of the funds that you deposit by check available to you immediately. Instead, funds may not be available until the second business day after the day of your deposit. If we are not going to make all of the funds from your deposit available at the ordinary time, 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
$5,000.00 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
communications or computer equipment. • You presented a foreign check that
must be sent for collection. • You are a new member (first 30 days).
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.
Funds from any deposits (cash or checks) made at an automated teller machine (ATM) we do not own or operate may not be available until the fifth business day after the day of the deposit. This rule does not apply at ATMs that we own or operate. All ATMs that we own or operate are identified as our machines. IV. Special Rules for New Accounts
The following special rules will apply to new members during the first 30 days an account is open:
-29-(B) SPECIAL NOTICE REGARDING ENDORSEMENT STANDARDS
The federal law dealing with funds availability requires the financial institution’s endorsement area on the back of a check be kept clear or unobstructed. This rule is designed to prevent unnecessary delays in processing your deposits as well as to promote speedier returns of dishonored checks. Only the 1-1/2 inch space from the “trailing edge” (the left edge of the check when it is facing you) can be used by you for endorsements or any other markings. We will not be responsible for any damages incurred in the event you deposit an item which is subsequently returned unpaid by the paying bank and that return is “late” due to markings on the check caused by you or a prior endorser on the back of the check.
In the event that you draw a check on your checking or loan account with us, you are responsible for any delay or misrouting of the check caused by markings placed on the check by you that obscure any depository endorsements placed by us or our agent and you agree to hold us harmless and indemnify us from any liability due to such delay or misrouting.
(C) FUNDS TRANSFER AGREEMENT AND NOTICE
The State of California has adopted as law Article 4A of the Uniform Commercial Code and the Board of Governors of the Federal Reserve has amended Subpart B of Regulation J. This law and regulation cover the movement of funds by means of wire transfers, Automated Clearing House (ACH) credits and some book transfers on the Credit Union’s records. The law is intended to establish a comprehensive legal framework covering the duties, responsibilities and liabilities of all parties involved in a funds transfer. This Funds Transfer Agreement (Agreement) contains several notices which the Credit Union is required to provide to you and establishes other terms of agreement which will apply to all funds transfers which involve you and the Credit Union. Using the Credit Union to send or receive funds transfers shall constitute your acceptance of all the terms and conditions contained in this Agreement. To the extent that the terms contained in this Agreement are different than those in any other agreement or terms or account, this Agreement shall control and be deemed to modify such other agreements or terms of account. 1. This Agreement applies to Funds Transfers as defined in the
Article 4A of the Uniform Commercial Code (Division II of the California Uniform Commercial Code) and Subpart B of Regulation J of the Board of Governors of the Federal Reserve. 2. The Credit Union may establish or change cut-off times
-30-may be treated as having been received on the next following business day and processed accordingly. 3. The Credit Union may charge your account for the amount of any funds transfer initiated by you or by any person authorized by you as a joint tenant or other authorized party with the right of access to the account from which the funds transfer is to be made. 4. The Credit Union may establish, from time to time, security
procedures to verify the authenticity of a payment order. You will be notified of the security procedure, if any, to be used to verify payment orders issued by you or for which your account will be liable. You agree that the authenticity of payment orders may be verified using that security procedure unless you notify the Credit Union in writing that you do not agree to that security procedure. In that event, the Credit Union shall have no obligation to accept any payment order from you or other authorized parties on the account until you and the Credit Union agree, in writing, on an alternate security procedure. 5. If you send or receive a wire transfer, Fedwire may be used.
Regulation J is the law covering all Fedwire transactions. This means that your rights and liabilities in a wire transfer involving Fedwire will be governed by Regulation J. 6. If you give the Credit Union a payment order which identifies
the beneficiary (receipt of the funds) by both name and identifying account number, payment may be made by the beneficiary’s bank on the basis of the identifying account number, even if the number identifies a person different than the named beneficiary. This means that you will be responsible to the Credit Union if the funds transfer is completed on the basis of the identifying account number you provided the Credit Union. 7. If you give the Credit Union a payment order which
identifies an intermediary or beneficiary’s bank by both name and an identifying number, a receiving bank may rely on the number as the proper identification even if it identifies a different person or institution than the named bank. This means that you will be responsible for any loss or expense incurred by a receiving bank which executes or attempts to execute the payment order in reliance on the identifying number you provided.
-31-9. ACH transactions are governed by operating rules of the National Automated Clearing House Association. In accordance with these rules, the Credit Union will not provide you with next day notice of receipt of ACH credit transfers to your account. You will continue to receive notices of receipt of ACH items in the periodic account statements, which we provide. 10. If the Credit Union received a funds transfer for you or
for other persons authorized to have access to your account, you agree that the Credit Union is not obligated to provide you with next day notice of the receipt of the funds transfer. The Credit Union will provide you with notification of the receipt of all funds transfers by including such items in the periodic account statements, which the Credit Union provides. You may, of course, inquire between receipt of periodic statements, whether or not a specific funds transfer has been received. 11. If the Credit Union becomes obligated under Article
4A (Division II of the California Uniform Commercial Code) to pay interest to you, you agree that the rate of interest to be paid shall be equal to the dividend rate, on a daily basis, applicable to the account at the Credit Union to which the funds transfer should have been made or form which the funds transfer was made. 12. The Credit Union may, in its sole discretion, reject any
funds transfer request which: (1) exceeds the collected and available funds on deposit in your designated account(s); (2) is not authenticated to the Credit Union’s satisfaction or the Credit Union reasonably believes may not be authorized by you; (3) contains incorrect, incomplete, or ambiguous information; or (4) involves funds subject to a lien, hold, dispute or legal process pending their withdrawal. You understand and agree that the Credit Union shall incur no liability for any loss occasioned by the Credit Union’s refusal to accept any funds transfer order. 13. The Credit Union shall have the right to charge the
amount of any funds transfer request to any of your accounts at the Credit Union in the event that no account is designated, or in the event that a designated accounts has insufficient collected funds to cover the amount of a funds transfer request. The Credit Union may charge a service charge for services relating to the sending or receiving of the funds transfer request. Such charge(s) are set forth in the Credit Union Schedule. 14. Except as expressly prohibited by applicable state and
