Membership Agreement & Disclosures

GENERAL MEMBERSHIP

1. Membership. Membership in the credit union is restricted to persons who, at the time of application, are within the field of membership and meet the membership requirements. To maintain membership, a minimum share deposit as stated on the schedule of fees and deposit requirements must be maintained.

2. Voting Rights. Each credit union member is entitled to one vote at any meeting of members on each matter submitted to the membership. The credit union’s Board of Directors is elected by the vote of the membership. Proxy voting is not allowed. All members are eligible to vote. Voting may be conducted by mail ballot in some circumstances.

3. Member Services. Various services are provided for members. These services include share and deposit accounts, share draft (checking) accounts, individual Retirement Accounts (IRAs), certificates of deposit, automatic teller machine access, telephone account access, consumer loans, credit card accounts, home equity loans, notary public service, cashier’s checks, wire transfers, automatic clearing house (ACH) transfers, travelers checks, discount movie and event tickets, and other services. These services are provided according to this membership agreement and/or the terms and conditions established by the credit union in any related agreements.

4. Dividends or Interest. Dividends or interest may be paid on shares or deposits at the credit union. Dividends are paid on share accounts including share draft accounts. Dividends are paid from current income and available earnings, after required transfers to reserves at the end of a dividend period. Interest is paid on deposit accounts. Interest is guaranteed and will be paid on deposit accounts. If an account is not specifically specified as a deposit account, the account is a share account subject to dividends. Dividends or interest are subject to change. No advance notice of rate decreases is required.

5. Applicable Law. Membership and credit union accounts are subject to the Financial Institutions Act of 1981 or the Federal Credit Union Act, as applicable, the Articles of Incorporation and Bylaws of the Credit Union. The applicable law, rules, policies and procedures are subject to modification and amendment.

6. Statutory Lien and Right of Set Off. All shares, deposits, accumulated interest or dividends in any individual, joint, multiple party or transaction account at the credit union are subject to a statutory lien and right of set off for any amounts owed to the credit union by a member or other person having any ownership interest in the account. This lien and right of set off applies to any amounts in the account in the future. The credit union may exercise its lien and right of set off without notice and without judicial process. The lien and right of set off does not apply to amounts in any Individual Retirement Account.

7. Account Closing. The account(s) of a member may be closed by the credit union if the member (a) has or may cause a loss to the credit union; (b) has not maintained any required minimum deposit requirements; (c) has filed a petition in bankruptcy; (d) has failed to behave properly at the credit union; or (e) has violated any other terms or conditions of membership.

8. Life Savings Insurance. The credit union does not maintain a group policy of life savings insurance.

9. National Credit Union Share Insurance Fund. Member accounts in this Credit Union are federally insured by the National Credit Union Share Insurance Fund.



ACCOUNT OWNERSHIP

1. Designation on Account Card. The ownership of any credit union accounts shall be designated on the applicable account card. Unless specific ownership is otherwise designated, the ownership of the share account shall apply to all additional accounts or subaccounts having the same account number.

2. Joint Tenancy With Rights of Survivorship. Any account owned as joint tenants with rights of survivorship shall be subject to the provisions of Utah Code Annotated 7-9-32. Any joint tenant may withdraw all amounts on deposit in the account. Upon the death of a joint tenant, amounts on deposit can be withdrawn by a surviving joint tenant.

3. Payable on Death Beneficiary. A payable on death beneficiary may be designated by the member. Any account with a payable on death beneficiary shall be subject to the provisions of Utah Code Annotated 7-9-32(6). The payable on death beneficiary may receive the amount on deposit upon written request if there is not surviving joint owner, at least thirty (30) days has passed since the member’s death and all obligations of the member to the credit union have been paid.

4. Trust Accounts. Accounts of trusts may be established at the credit union. The credit union is the depository only for the trust account. Any trustee designated on any account card may transact any business on a trust account. The credit union may rely upon written evidence submitted by the trustee or successor trustee regarding the appointment of the trustee or successor trustee.


SHARE ACCOUNTS


1. Rate Information. The dividend rate and the annual percentage yield on your share account are disclosed on the rate notice. You will be paid this rate for the initial dividend period. The dividend rate and the annual percentage yield may change quarterly as determined by the Credit Union’s Board of Directors.

2. Compounding and Crediting. Dividends will be compounded quarterly and will be credited quarterly. If you close your regular share account before dividends are credited, you will not receive dividends.

3. Minimum Balance Requirements. The minimum balance to open this account is the purchase of a $25 share in the Credit Union. You must maintain a minimum daily balance as stated on the statement of Rates, Balances and Fees in your account to avoid a service fee. If, during any month, your account balance falls below the required minimum daily balance, your account will be subject to a service fee as set forth on the statement of fees.

4. Balance Computation Method. Dividends are calculated by the average daily balance method which applies a daily periodic rate to the principal in your account each day.

5. Accrual of Dividends. Dividends will begin to accrue on the business day you deposit noncash items (e.g., checks) to your account.

6. Fees and Charges. Fees and charges may be assessed against your account. These Fees and Charges are set forth on the Statement of Rates, Balances and Fees.

7. Transaction Limitations. During any statement period, you may not make more than six withdrawals or transfers to another credit union account of yours or to a third party by means of a preauthorized or automatic transfer to telephonic order or instruction. No more than three of the six transfers may be made by check, draft, debit card, if applicable, or similar order to a third party. If you exceed the transfer limitations set forth above in any statement period, your account will be subject to closure by the credit union or to a fee.


SHARE DRAFT ACCOUNTS

1. Authorized Signatures. The credit union is authorized to pay share drafts signed by any person on the account card. All such payments shall be charged against the shares in this account.

2. Draft Forms. Only share draft blanks and checking cards (and other methods) approved by the credit union may be used to make withdrawals from this account. The credit union is not responsible for any loss based on the use of forms not approved by the credit union.

3. Drafts Exceeding Balance. The credit union is under no obligation to pay a share draft that exceeds the fully paid and collected share balance in this account. However, in the event of a share draft that would exceed such balance and result in this account being overdrawn, the credit union may:

a. Treat such share draft as a request to the credit union for an advance (in multiples of $100) from the overdraft loan account, if any, sufficient to permit the credit union to pay such share draft and credit the loan advance to this account, or

b. If no loan advance can be made, the credit union may pay such share draft and transfer shares to this account in the amount of the resulting overdraft, plus a service charge, from any other regular share account from which any of the undersigned is then eligible to withdraw shares.

4. Share Draft Date. The credit union may pay a share draft on whatever day it is presented for payment, notwithstanding the date (or any other limitation on the time of payment) appearing on the share draft.

5. Retention of Drafts. When paid, share drafts become the property of the credit union and will not be returned either with the periodic statement of this account or otherwise.

6. Credit Union Liability. Except for negligence, the credit union is not liable for any action it takes regarding the payment or nonpayment of a share draft.

7. Periodic Statements. Any objection respecting any item shown on a periodic statement of this account is waived unless made in writing to the credit union before the end of sixty (60) days after the statement is mailed.


CERTIFICATE ACCOUNTS

1. Basic Terms. The rates for certificate accounts are stated on the rate notice. Compounding and crediting for certificates is the same as share accounts unless stated on the rate notice.

2. Maturity Date. The maturity date of your account is stated on the rate notice or certificate.

3. Early Withdrawal Penalties. We may impose a penalty if you withdraw any of the funds before the maturity date. The penalty will equal three months’ dividends on your deposit.

4. Renewal Policies. Your certificate account will not automatically renew at maturity. Unless we hear from you, your certificate proceeds and interest will be deposited to your regular share account.


FUNDS TRANSFER TERMS AND CONDITIONS

1. Funds Transfers. The credit union provides funds transfer services. These services include wire transfers, automated clearinghouse (ACH) credits and transfers between accounts. Funds transfers are defined in Article 4A of the Uniform Commercial Code and Subpart B of Regulation J of the Board of Governors of the Federal Reserve System.

2. Processing Time. The credit union may establish or change cut-off times for the receipt and processing of funds transfer requests, amendments, or cancellations. Unless other times are posted for the various types of funds transfers, the cut-off time will be at 2:00 p.m. on each weekday that the credit union is open which is not a holiday. Payment orders, cancellations, or amendments received after the applicable cut-off time may be treated as having been received on the next following funds transfer business day and processed accordingly.

3. Initiation of Transfers. 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. Security Procedures. 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. Use of Fedwire. 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. Identification of Transfers. If you give the credit union a payment order which identifies the beneficiary (recipient of the funds) by both name and identifying or account number, payment may be made by the beneficiary’s bank on the basis of the identifying bank 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 identification number you provided the credit union.

7. Identification of Bank. 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 than the named bank. This means that you will be responsible for any loss or expenses incurred by a receiving bank which executes or attempts to execute the payment order in reliance on the identifying number you provided.

8. ACH Payments. The credit union may give you credit for automated clearinghouse (ACH) payments before it receives final settlement of the funds transfer. Any such credit is provisional until the credit union receives final settlement of the payment. You are hereby notified and agree, if the credit union does not receive such final settlement, that it is entitled to a refund from y ou of the amount credited to you in connection with the ACH entry. This means that the credit union may provide you with access to ACH funds before the credit union actually receives the money. However, if the credit union does not receive the money, then the credit union may reverse the entry on your account and you would be liable to pay the credit union.

9. ACH Rules. 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. Receipt of Funds Transfer. 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 will notification of the receipt of all funds transfers by including such items in the periodic account statements which we provide. You may, of course, inquire between receipt of periodic statements whether or not a specific funds transfer has been received.

11. Payment of Interest. If the credit union becomes obligated under Article 4A to pay interest to you, you agree that the rate of interest to be paid shall be equal to the account at the credit union to which the funds transfer should have been made or from which the funds transfer was made.


ELECTRONIC FUNDS TRANSFERS

1. Available Services. As a user of electronic funds transfer service, you may have access to specifically identified automatic teller machines, Telephone Teller and Automated Clearing House (ACH) services. The automatic teller machine transactions which you may initiate are: cash withdrawals. The cash withdrawals may be made from your deposit account(s), or your credit line if granted by the credit union. With Telephone Teller, you may also make account transfers and loan payments, as well as check withdrawals to yourself, balance inquiries, cleared check and other debit inquiries, and automatic deposits and credit inquiries through the Telephone Teller voice response system. Telephone Teller is assessed via touch-tone telephone after your account has been authorized and you have received your Telephone Teller PIN. You may also arrange to have preauthorized electronic funds transferred to your accounts (credits) or from your accounts (debits).

2. Access Device. To initiate any transaction with an automated teller machine, you must use an approved access device (card). Approved access cards include your Visa Checking or Visa Credit Card, your Cashgiver card or other specified card issued by the credit union PLUS your Personal Identification Number (PIN). To access the Telephone Teller voice response system, access is initiated via touch-tone telephone. Also, you must request a Personal Identification Number which allows you secure access to your account.

3. Transaction Receipts. When you use an automated teller machine card at a specified automated teller machine for your card, you will receive a receipt of the transaction(s) initiated. This receipt will tell you: (a) the amount, (b) the calendar date of the transaction, (c) the type of transaction and type of consumer account to or from which the funds are transferred, (d) the number of the card which initiated the transaction, (e) the location of the automated teller machine, and (f) when applicable, the identification of any third party to or from whom funds are transferred. Telephone Teller transactions will not be issued receipts. Each transaction will be indicated on members’ statements as being initiated via the Voice Response (VR) system.

4. Periodic Statements. For each account that you have with us that has electronic funds activity, you will receive a monthly or quarterly statement that will show all electronic funds transactions for that account.

5. Service Charges. At present, there may not be a charge for any automated teller machine transaction, but such charges may be made in the future. You will be notified as required when any change in the terms of this Agreement is made. Refer to the Credit Union Fee Schedule for current fees.

6. Your liability for Unauthorized Users. If you believe your Card or your PIN has been lost or stolen or that someone has transferred or may transfer money from your accounts without your permission, tell us AT ONCE. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account plus your overdraft credit limit. If you tell us within two (2) business days, you can lose no more than $50.00 if someone uses your Card or PIN and we can prove we could have stopped someone from using your Card without your permission. If you do not tel us within two (2) business days after you learn of the loss or theft of your Card or PIN and we can prove we could have stopped someone from using your Card or PIN without your permission if you had told us, you could lose as much as $500.00. Also, if your statement shows transfers that you did not make, tell us at once. If you do not tell us within sixty (60) days after the statement is mailed to you, you may not get back any money that you have lost after the sixty (60) days if we can prove that we could have stopped someone from taking the money if you had told us in time.

7. Telephone Number and Address. If you believe your Card or PIN has been lost or stolen, or that your statement shows transfers that you did not make, call or write to the credit union the telephone number and address shown on your monthly or quarterly statement.

8. Business Days. Our business days are stated on the credit union fee schedule. Holidays are not included.

9. Preauthorized Transfer FROM Your Account. You may preauthorize an electronic funds transfer from one of your accounts to a designated recipient account. Authorization must be in writing. A copy of your authorization may be provided by the recipient of the transfer. If you have told us in advance to make such regular payments, you may stop payment of any preauthorized transfer by notifying us orally or in writing at any time up to three (3) business days before the scheduled date of the transfer. Written confirmation of your stop order must be made by you within fourteen (14) days of the oral notification or the stop payment order will not be binding. If this regular transfer from your account may vary in amount, the person you are going to pay will tell you ten (10) days before each payment.

10. Preauthorized Transfers TO Your Account. You may arrange to have direct deposits made to your account from the same person or company at least once every sixty (60) days. You may call the number on your periodic statement or call Telephone Teller to see if the transfer did occur.

11. Our Liability if Transfers are not Made or Stopped. You agree that we shall have no liability to you for our failure to make or stop preauthorized transfers, except where such failure is intentional or the result of negligence on our part.

12. Information to Third Parties. We will not disclose information to third parties concerning your account with us except: (a) When such disclosure is necessary to complete the transactions; (b) To verify that existence and condition of your account for a third party such as a credit bureau as is permitted by law; (c) To comply with court order or applicable laws or regulations; (d) When you give us permission.

NOTICE: IN CASE OF ERRORS OR QUESTIONS ABOUT YOUR ELECTRONIC TRANSFERS: Telephone us at the number or write us at the address listed on your period statement as soon as you can if you think your statement or receipt is wrong or if you need more information about the transfer listed on the statement or receipt. We must hear from you no later than sixty (60) days after we send you the FIRST statement on which the problem or error appeared.

(1) Tell us your name and account number (if any).

(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 why you need more information.

(3) Tell us the dollar amount of the suspected error.

If you tell us orally, we require that you send us your complaint or question in writing within ten (10) business days. We will tell you the results of our investigation within ten (10) business days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to forty five (45) days to investigate your complaint or question. If we decide to do this, we will recredit your account within ten (10) business days for the amount you think is in error, so that you will have 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 ten (10) business days, we may not recredit your account.

If we decide that there was no error, we will send you a written explanation within three (3) business days after we finish our investigation. You may ask for copies of the document(s) that we used in our investigation.


DORMANT OR INACTIVE ACCOUNTS

1. Dormant or Inactive Accounts. An account is dormant or inactive if mail is returned to the credit union as undeliverable. You may also notify the credit union in writing if no activity is expected on an account but you wish to maintain the account.

2. Charges on Dormant Accounts. The credit union will assess charges related to the maintenance of dormant accounts. These charges shall be stated in the credit union’s schedule of fees.

3. Interest on Dormant Accounts. After an account becomes dormant, the credit union will cease payment of interest or dividends.

4. Charges or Interest Not Refundable. Any charges or interest shall not be refunded or credited to your account after any period of dormancy.


FUNDS AVAILABILITY POLICY DISCLOSURE

1. Your Ability to Withdraw Funds. Our policy is to make funds from your deposits available to you on the same business day as the day we receive your deposit. Once they are available, you can withdraw the funds in cash and/or 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 6:00 p.m. 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 6:00 p.m. or on a day we are not open, we will consider that the deposit was made on the next business day we are open.

2. Reservation of Right to Hold. In some cases, we will not make all of the funds that you deposit by check available to you on the same business day as the day of your deposit. Depending on the type of check that you deposit, funds may not be available until the fifth business day after the day of your deposit. However, the first $100 of your deposit will be available on the first business day after the day of your deposit. If we are not going to make all of the funds from your deposit available on the same 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, of if we decide to take this action after you have left the premises, we will mail you the notice by the business day after we receive your deposit. If you need the funds from a deposit right away, you should ask us when the funds will be available.

3. Longer Delays May Apply. We may delay your ability to withdraw funds deposited by check into your account an additional number of days for these reasons:
a. You deposit checks totalling more than $5,000 on any one day.
b. You deposit a check that has been returned unpaid.
c. We believe a check you deposit will not be paid.
d. There is an emergency, such as failure of communications or computer 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 eleventh business day after the day of your deposit.

4. Holds on Other Funds. If we cash a check for you that is drawn on another financial institution, we may withhold the availability of a corresponding amount of funds that we 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. If we accept for deposit a check that is drawn on another financial institution, we may make funds from the deposit available for withdrawal immediately but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available for withdrawal until the time periods that are described elsewhere in this disclosure for the type of check that you deposited.

5. Special Rules for New Accounts. If you are a new member, the following special rules apply during the first 30 days your account is open:
a.Funds from electronic direct deposits to your account will be available on the day receive the deposit. Funds from deposits of cash, wire transfers, and the first $5,000 of a day’s total deposits of cashier’s, certified, teller’s, traveler’s, and federal, state and local government checks will be available on the first business day after the day of your deposit if the deposit meets certain conditions. For example, the checks must be payable to you. The excess over $5,000 will be available on the ninth business day after the day of your deposit. If your deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, the first $5,000 will not be available until the second business day after the day of your deposit.
b. Funds from deposits of checks drawn on Health Care Credit Union will be available on the same business day as the day of your deposit.
c. Funds from all other check deposits will be available not later than the 11th business day after the day of your deposit.


If you have any questions regarding this Agreement and Notice, please ask your credit union personnel.