Agreements and Disclosures

Transcription

1 Agreements and Disclosures Before continuing with your online Membership Application, please take a moment to carefully read the Xceed Financial Federal Credit Union agreements and disclosures listed below. Please print these documents for your records. To view our current Share Product Rate Sheet, visit xfcu.org/rates 1. Agreement and Disclosure 2. Truth-in-Savings Disclosures 3. Services and Schedule of Fees 4. Electronic Services Agreement and Disclosure 5. Federal Privacy Policy (for members in all states) 6. Important Privacy Choices for Consumers (for California residents only) 7. What You Need to Know about Overdrafts and Overdraft Fees Notice 8. Overdraft Coverage Brochure

2 xceed financial federal credit union Agreement and Disclosures Effective: August 5, XFCU.222 XFCU.ORG

3 TABLE OF CONTENTS Introduction 3 Section I: Membership Eligibility 5 Section II: Share Account Agreement and Disclosures 6 Terms and Conditions Applicable to: All Accounts 6 Binding Arbitration 6 Accounts with Check Clearing Privileges 17 Terms and Conditions Applicable to Account Ownership: Individual and Joint Accounts 20 Pay-on-Death (POD) Designations 21 Trust Accounts 21 Custodial Accounts 24 Fiduciary Accounts 25 Section III: Funds Availability Policy 26 Section IV: ACH and Incoming Funds Transfer Agreement Notice 32

4 INTRODUCTION I understand that the Agreement and Disclosures booklet, Truth-In-Savings Disclosure, Services and Schedule of Fees, and Rate Sheet (collectively Agreement ) are part of the binding contract between you and me. In this Agreement, the words I, me, mine, my, myself, we, us, and our mean each and all of those (whether one or more persons) who sign the applicable Membership Application/Signature Card. The words you, your, and yours mean Xceed Financial Federal Credit Union. This Agreement is effective August 5, 2015, and supersedes any conflicting terms and conditions contained in previous Agreements and Disclosures. I agree to read this Agreement carefully and have any additional account owners read it as well, and to file it in a safe place along with other account and services agreement and disclosures. 3

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6 SECTION I: MEMBERSHIP ELIGIBILITY Eligibility for Xceed Financial Federal Credit Union (Credit Union) membership requires submission of a Membership Application with a deposit in the amount of the par value of a share (currently $5.00) or more to open a primary savings account. In addition, all membership applications are subject to verification of field of membership and other eligibility requirements, applicant s identity, and background information as determined by the Credit Union and/or required by law, prior to membership being granted. All applicants for membership must submit a valid U.S. government- or state-issued photo identification, a Social Security card and/or a Taxpayer Identification Number, and/or any other required identification as determined by the Credit Union. As required by federal law, the Credit Union must verify the identity of each person seeking to open an account (including joint owners) and must maintain records of the information used to verify each person s identity. Field of Membership Employees of select employer groups (SEGs) are eligible for membership. A list of these companies is on file at the Credit Union headquarters. Any member of the immediate family or household of a Credit Union member may join or rejoin the Credit Union at any time, provided that the member is in good standing with the Credit Union. Once the immediate family or household member joins the Credit Union, that person s immediate family or household member may also join. Immediate family member is defined as a spouse, child, sibling, parent, grandparent, or grandchild. For the purposes of this definition, immediate family members include stepparents, stepchildren, stepsiblings, and adoptive relationships. Household is defined as persons living in the same residence maintaining a single economic unit. Organizations of persons eligible for membership may qualify to open organizational accounts (for example, SEG employees club accounts). For further information regarding these accounts, contact the Credit Union. Members of several communities throughout the country are eligible for membership. In addition, a person who is not an employee of a SEG, is not a member of one of the communities served by the Credit Union, or is not an immediate family or household member of an existing Credit Union member may qualify for membership by first joining one of the organizations served by the Credit Union. 5

7 A complete listing of all eligible SEGs, communities, and organizations served by the Credit Union is currently available on the Credit Union s website at xfcu.org and at local Financial Centers. SECTION II: SHARE ACCOUNT AGREEMENT AND DISCLOSURES Terms and Conditions Applicable to All Accounts I, me, mine, my, myself, we, us, and our mean each and all of those (whether one or more persons) who sign the applicable Membership Application/Signature Card. The words you, your, and yours mean Xceed Financial Federal Credit Union. 1. I must be and remain a member in good standing to maintain any account. I understand and agree that if I am not a member in good standing, you may limit my access to your services and products. 2. The par value of a share necessary to become a member and maintain accounts with you is currently $5.00, which must be deposited into a primary savings account. 3. I understand that federal law requires you to obtain, verify, and record information that identifies each person who opens an account. You may use a thirdparty service or credit report to verify information for legitimate business purposes. You may also report the status and/or closure of my account(s) to such thirdparty services. 4. I understand that if any part of this Agreement should be held unenforceable, the remaining provisions of this Agreement shall remain in full force and effect. No delay or omission on your part in exercising any rights or remedies shall operate as a waiver of such rights or remedies. A waiver on any one occasion shall not be construed as a bar or waiver of any rights or remedies on future occasions. You reserve the right upon thirty (30) days written notice to change any provision of this Agreement. You also reserve the right to establish from time to time rules and regulations concerning any account, which will be available for inspection upon request. 5. I understand and agree that if it is necessary for you to take legal action in order to enforce the terms of this Agreement or to recover monies due to you from me, I will be responsible for payment of your collection costs and litigation expenses (including attorneys fees and court costs). 6. BINDING ARBITRATION: You and I agree to attempt to informally settle any disputes affecting my accounts or transactions, or arising out of, or in 6

8 any way related to, this Agreement. If that cannot be done, you and I agree that, upon the election of either of us, any claim or dispute, whether in contract, tort, statute, or otherwise, affecting my accounts or transactions and/or arising out of, or relating in any way to, this Agreement will be resolved by BINDING ARBITRATION administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules and Mediation Procedures and Supplementary Procedures for Consumer-Related Disputes. As a result, I will GIVE UP MY RIGHT TO GO TO COURT to assert or defend my rights under this Agreement (EXCEPT for matters within SMALL CLAIMS COURT jurisdiction). You and I also agree that the Federal Arbitration Act and related federal laws shall govern the interpretation, implementation, and enforceability of this BINDING ARBITRATION provision to the fullest extent possible, to the exclusion of potentially applicable state laws, regardless of the location of the arbitration proceedings or the nature of the disputes between us. I acknowledge that by agreeing to BINDING ARBITRATION I understand and agree to the following terms: My rights will be determined by a NEUTRAL ARBITRATOR and NOT a judge or jury. I understand and agree that I AM WAIVING THE RIGHT TO A TRIAL BY JURY. Arbitration proceedings provide me a FAIR HEARING, BUT the arbitration procedures are SIMPLER AND MORE LIMITED THAN RULES APPLICABLE IN COURT. Arbitration decisions are as enforceable as any court order and are subject to VERY LIMITED REVIEW BY A COURT. ARBITRATORS can award the same REMEDIES including DAMAGES that a COURT can award. Any ARBITRATION under this BINDING ARBITRATION provision WILL BE ON AN INDIVIDUAL BASIS. I understand and agree that I AM WAIVING THE RIGHT TO PARTICIPATE AS A CLASS REPRESENTATIVE OR CLASS MEMBER IN A CLASS ACTION. The PLACE OF ARBITRATION shall be in the federal district where I reside. You will reimburse me for any FILING, ADMINISTRATION, AND ARBITRATOR FEES as imposed by the American Arbitration Association. However, if the arbitrator determines that MY 7

9 CLAIM IS FRIVOLOUS, UNWARRANTED, OR BROUGHT FOR AN IMPROPER PURPOSE (in accordance with the Federal Rules of Civil Procedure Section 11(b)) I WILL RETURN TO YOU ANY FILING, ADMINISTRATION, AND ARBITRATOR FEES YOU PAID. If I PREVAIL on the merits of my claim in arbitration, you will pay MY ATTORNEYS FEES. I will NOT be required to pay YOUR ATTORNEYS FEES IF YOU PREVAIL. FOR MORE DETAILS, I can check the American Arbitration Association s website, OR call the American Arbitration Association s Customer Service telephone number at I understand that any loan obligation I may have with you under a written loan note governed by the federal Truth in Lending Act is not subject to this binding arbitration clause. 7. I understand that you may delay enforcing your rights under this Agreement without losing them. Any waiver by you shall not be deemed a waiver of other rights or of the same rights at another time. I waive diligence, demand, presentment, protest, and notice of every kind, except as set forth in this Agreement. If any of the provisions of this Agreement are determined to be void or invalid, the remainder of the Agreement shall remain in full force and effect. 8. I understand that there is a limitation on time to take action. Unless otherwise required by law, an action or proceeding by me to enforce an obligation, duty or right arising under this Agreement or by law with respect to my account or any account service must be commenced within one year after the cause of action occurs. 9. I shall pay you all costs and charges incident to my account according to this Agreement established by you and which you may change from time to time. You shall debit such charges against my account without prior notice, except where there are insufficient funds available, and then such charges shall be treated as overdrafts and due upon demand. 10. I understand that each state has laws that govern when accounts are considered abandoned and when you are required to send a member s funds to the state. I must make sure my accounts remain active so that I have the full use of my accounts and avoid the potential of having my account assets transferred to the state as abandoned property. The Unclaimed Property Law requires that inactive account balances be remitted to the state controller s office in my state if I have not: 8

10 a. Increased or decreased the amount of the account or presented an appropriate record for crediting dividends. b. Corresponded in writing with you concerning the account. c. Otherwise indicated an interest in the account as evidenced by a memorandum on file with you. You may charge a fee for mailing an escheat notice for account balances of $50 or greater and/or a service charge for official checks escheated to the state. To recover funds turned over to the state, I must file a claim with the state. You will make an effort to notify me in writing at the address listed on your records before any such transfer takes place. After such transfer, my funds can be reclaimed from my state controller s office upon presentation of adequate identification and proof of ownership. You reserve the right to charge a reasonable fee as disclosed in your Services and Schedule of Fees in your attempt to locate me. Information regarding my state s Unclaimed Property Law can be obtained by calling my state controller s office or visiting its website. 11. I understand that, to the extent permitted by federal or the law of my state, this Agreement as well as all of my share accounts and related services will be interpreted and subject to applicable federal laws and the laws of the state of California without resort to California s Conflict of Laws rules. 12. I understand and agree that you may monitor and record telephone conversations regarding my accounts, products or services at any time without further notice to me. 13. I understand that by using a facsimile signature, I am agreeing that you are not responsible for any misuse of the facsimile signature, and I also agree to indemnify and hold you harmless for all losses, claims, damages, or expenses (including attorneys fees) that are incurred as a result of your payment of a withdrawal bearing a facsimile of my signature or a facsimile that you believe I authorized. 14. I understand that by signing up for Xceed Online, including bill payment, I agree to the terms and conditions that are provided to me electronically and in your Electronic Services Agreement and Disclosure. 15. I understand that no accounts are transferable (except checking accounts) as defined in the Federal Reserve Board s Regulation D, 12 CFR, Part 204. For all accounts, except checking accounts, during any given month, I may not make more than six (6) withdrawals or transfers to another account of mine or 9

11 to a third party by means of a check, draft, debit card, preauthorized or automatic transfer, or telephonic order or instruction. Transfers or withdrawals in excess of these limitations may not be honored, and my account may be subject to closure by you. 16. I understand that your bylaws authorize your board of directors to require me to give up to sixty (60) days written notice of my intention to withdraw savings from any account except a checking account. However, you do reserve the right at any time to require not less than seven (7) days notice in writing before each withdrawal is performed from an account that earns dividends other than a share certificate account, or from any other savings account defined by Regulation D. 17. I understand that I may be required to request changes to my accounts in writing, that you are not required to act upon instructions received by facsimile or electronically, and that you have the right to require additional information from me before you act on any request. You shall have no liability or responsibility to me or to my heirs, executors, assignees, or representatives when acting upon the reasonable interpretation of my requests. 18. I understand that you may terminate and/or suspend account products at your option without written notice to me. In addition, you reserve the right to charge or amend product features or functions (such as overdrafts) at any time. 19. I agree that if I manipulate my account in an abusive manner or in such a way that constitutes a loss or detriment to you, or if I engage in threatening, harrassing, or illegal behavior effecting you or any person or property in your premises or at any one of your functions, you may close my account(s), except my primary savings account, and/or limit any further communication between you and me to written communication. In addition, I understand that you reserve the right to close any account and terminate your services based on suspected fraudulent transactions, losses sustained on my account(s), or transactions discovered to be deliberately manipulated to the detriment of you. Manipulation includes, but is not limited to, kiting and repeated patterns of transactions that have no apparent business reason. 20. I understand that you may comply with any writ of attachment, execution, garnishment, tax levy, restraining order, subpoena, warrant, or other legal process that you believe (correctly or otherwise) to be valid. If you are not fully reimbursed for your record research, photocopying, and handling costs by the party that served the process, you may charge such 10

12 costs to my account as disclosed on your Services and Schedule of Fees. Funds you hold or set aside in response to a legal process may not earn dividends. I agree to indemnify, defend, and hold you harmless from all actions, claims, liabilities, losses, costs, and damages associated with your compliance with any process that you believe to be valid. 21. You or I may terminate an account at any time. I understand, however, that your authority may not be changed or terminated except by written notice to me, which will not affect prior transactions. In addition, if you receive written notice from any owner that withdrawals, in accordance with the terms of the account, should not be permitted, you may refuse, without liability, to pay any sums on deposit pending determination of the rights of the owners. Further, if there is more than one owner and there is a conflict among us, you may require the signature of all owners. 22. I understand that the word owner(s) on a Membership Application/Signature Card means the owner in the case of a single ownership account, and it means the owners (both as an individual and as a group) in the case of an account with more than one owner. Owner(s) agree(s) that any and all sums heretofore or hereafter paid-in or deposited into an account may be withdrawn or received by any owner, and any such payment shall be valid and discharge you from any liability. 23. I agree that you may recognize the signature of anyone who has signed a Membership Application/Signature Card that I provided to you as authorized to transact any business on that account, including but not limited to, causing or making overdrafts (for which all of us shall be liable) and endorsing checks payable to any signer on the account. Any payment made from my account in good faith and reliance on the terms and conditions of this Agreement and the Membership Application/Signature Card shall be valid and discharge you from liability. Without limitation to the foregoing, you may honor checks drawn against my account by one of us, even if the checks are made payable to one of us, to cash, or for deposit in one of our personal accounts. You have no duty to investigate or question withdrawals or the application of funds. 24. I agree to be responsible to you for the actions of authorized signers on my account. This means that I am responsible for familiarizing authorized signers with all of the terms of this Agreement. 25. I understand that any joint owner of any of the accounts open under the same primary member s membership number may have access to information on all of the accounts under that same primary member s number. 11

13 26. I understand to the extent and under the circumstances permitted by federal laws and the laws of my state, individual, joint, trust, and pay-on-death (POD) accounts may be subject to the Multiple Party Accounts Law, Division 5, Part 2, of the California Probate Code, as now in effect or hereafter amended. 27. I understand that if I or any joint owner draws a check or otherwise authorizes withdrawals not presented for payment until after the drawer s death, or if any joint owner is indebted to you at the time of his or her death, you are authorized to pay such checks and withdrawals and exercise your right of offset against the account after such joint owner s death, notwithstanding any rights that a surviving joint owner, a POD payee, or a beneficiary of an in trust for (ITF or trustee for ) account may have to the funds in the account. For more information on right of offset, refer below. 28. I agree to notify you immediately of the death or court-declared incompetence of any account holder on my account. You may freeze my account and refuse to accept deposits or allow withdrawals when an account holder dies or is declared incompetent. 29. I understand and agree that title, ownership, and beneficiary designation(s) on my account will be determined by the paperwork I have completed and filed with you. If I want to change my account in any way, I must properly complete additional forms provided by you, which shall not be effective until delivered to and accepted by you. You are authorized to rely solely on the documentation you have in your possession. On behalf of myself, my beneficiaries, and my heirs, I hereby indemnify you and agree to hold you harmless from any and all liability upon your reliance on such documentation. 30. I understand that you reserve the right, in your sole discretion and without liability, to accept or refuse to accept a power of attorney or any other document authorizing a third party to act on my behalf. 31. I understand that if I am under the age of 18 and you allow me to open an account (savings, money market, checking, or share certificate account), you may request my parent or legal guardian to be a joint owner on my account. 32. I understand that share accounts with you are federally insured by the National Credit Union Share Insurance Fund (NCUSIF). 33. I agree that you may endorse and/or collect items deposited to my account without my endorsement except for certain government-issued items (e.g., state or federal tax refunds or Social Security checks), but you may require my personal endorsement prior to 12

14 accepting any item for deposit. If I deposit items that bear the endorsement of more than one person or persons who are not known to you or that require endorsement of more than one payee, you may refuse the item or require all endorsers to be present or to have their endorsements guaranteed before you accept the item. 34. I understand I may make deposits to or withdraw from my accounts only in accordance with your policies. 35. I understand and agree that it is your policy not to accept for deposit checks payable to anyone other than an owner on the account (i.e., third-party checks). 36. I understand that anyone can make a deposit to my account and that you will not question the authority of a person making a deposit to my account. 37. I understand that all deposits are subject to verification and agree that if your count differs from mine, your figure will be considered the correct one. 38. I understand and agree that you may use automated means to process checks and other items written on or deposited to my account. Although you may manually review checks or other items drawn on my account, I understand and agree that reasonable commercial standards do not require you to do so. 39. I agree that you will not be responsible for any damages I incur in the event I deposit an item with you that is subsequently returned unpaid by the paying financial institution and the return is late due to markings on the back of the check caused by me or a prior endorser. 40. I understand that although you are not obligated to, you may pay or accept checks and other items bearing restrictions or notations (e.g., Void after 6 months, Void over $50, Payment in Full ), whether on the front or back, in any form or format. If I cash or deposit an item or write a check with such notation, I agree that it applies only between me and the payee or maker. The notation will have no effect on you, and I agree to accept responsibility for payment of the item. I agree to indemnify and hold you harmless from any claim or alleged loss of any maker or payee involving such notations, whether I am the maker or payee or the funds are otherwise deposited into an account in which I earn dividends. I understand if you pay an item or honor my request that overdraws my account, a deposited item has been returned unpaid, or for any other reason my account has become overdrawn, I agree to pay the amount of the overdraft together with any fee or charge, whether or not I signed or requested the 13

15 withdrawal or participated in the transaction creating the overdraft. 41. I understand that if a depositor (e.g., a government agency) demands you to return any sums directly deposited to my account during the month of or after the death of any account holder on my account, you may honor such a demand and may debit my account for all amounts returned to the depositor. If the transaction creates an overdraft, I will be required to repay you, and notwithstanding any binding arbitration provision under this Agreement, you may take any necessary legal action in order to seek reimbursement for these amounts. 42. The minimum amount that I may withdraw from any account is $20. This limitation does not apply to the following: a. Checks drawn on my checking or money market account. b. Withdrawals, preauthorized by me, such as distributions of paid dividends and transfers of funds, pursuant to my overdraft agreement. c. Withdrawals made in person, at a point-of-sale terminal, or through your online banking and automated voice response system. 43. I agree that you are not responsible for any loss or damage that results from my negligence, including without limitation, my failure to adequately safeguard my blank checks or other personal information or means of access to my account. I will notify you immediately if my checks are lost or stolen. 44. I understand that if a disaster occurs, there may be an unforeseen delay in your ability to make funds available and to process deposits, withdrawals, transfers, and other transactions. In addition to natural disasters, the failure of communications or computer systems may also cause unforeseen delays. 45. I understand that in the event that a cashier s or official check is lost or stolen, I must execute and deliver to you a written form to resist payment in time for you to have a reasonable period to act thereon. I further understand and agree that the designated form is not enforceable until the later of: (1) the date the designated form is properly delivered to you, or (2) the 90th day following the date of issuance for the cashier s or official check, or the 90th day following the date of the acceptance of a certified check. I agree to indemnify you for any loss or claim occasioned by your attempting to, or stopping payment on, such check. 14

16 46. I understand that you require a minimum of two (2) weeks to process my request to transfer funds from another financial institution to you. 47. I understand that you have the right to restrict the amount of cash each member may transfer or withdraw in a 24-hour period. 48. I understand and agree that in cases where there may be conflicting claims against my account, you are authorized to restrict account transactions until the conflicting claims are resolved to your satisfaction. If you deem necessary, in your sole discretion and judgment, you may submit the conflict to a court of competent jurisdiction to obtain resolution of the conflict. This is commonly referred to as an interpleader, and I agree to be responsible for costs and attorneys fees you incur in resolving the conflict. 49. I understand you reserve the right to change your routing number as long as a prior thirty (30)-day notice is provided to me. 50. I understand that you will mail (U.S. mail or electronically) statements and other notices only to the address (physical or electronic) of record of the person whose signature appears first on the Membership Application/Signature Card. I shall exercise reasonable care and promptness in examining all statements and must notify you promptly in writing of any error or unauthorized payment including, but not limited to, an altered item or an unauthorized signature. If I fail to uphold these duties, I understand and agree that I am precluded from asserting the error or unauthorized payment against you if: (1) you suffer a loss on the item because of my failure, or (2) you pay on another item presented by the same wrongdoer if the payment was made before I properly notified you. Notification must be within thirty (30) days of the date of the statement. If I fail to uphold my duties but I can prove that you 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 you and me to the extent our respective actions contributed to the loss. If I have failed to examine my statement and report any unauthorized item one (1) year or more after my statement or the item has been made available to me, I cannot recover from you even if you failed to exercise ordinary care in paying the item. 51. I understand and agree that you may combine statements of one or more of my accounts unless otherwise specified by me. 52. I agree to notify you promptly of any change of address. I may notify you in person at any of your offices or by 15

17 sending a written and signed notice to your corporate headquarters at 888 North Nash Street, El Segundo, CA You reserve the right to charge a reasonable fee in your attempt to locate me as disclosed in your Services and Schedule of Fees. 53. Except as prohibited by applicable law, I understand and agree that you may impress and enforce (right of offset) a statutory lien upon my shares and dividends in any and all of my accounts with you to the extent of any loan made to me, charges payable by me, or any liabilities owed to you by me or by any joint owner on the account pursuant to Section 1757(11) of the Federal Credit Union Act or in the event that a negative balance is created in my share account. The law provides that you may take funds on deposit in my account to satisfy a debt I owe you that is not paid when due. This is called right of offset. If you exercise your right of offset against an account that is subject to an early withdrawal penalty, the account will be assessed the applicable early withdrawal penalty (whether due to ATM activity, returned deposit activity, fees and charges imposed by you, or otherwise). You may transfer funds to such account from any other share account including accounts upon which I am a joint owner in an amount equal to the negative account balance. You may use funds held in my accounts to repay my obligations to you, whether owned by me individually or jointly with another, including obligations owed by me arising out of another, including obligations are not directly incurred by me; obligations on which I am secondary liable; and any amounts for which I become liable to any governmental agency or department or any company as a result of recurring payments credited to any of your accounts after the death, legal incapacity or other termination of entitlement of the intended recipient of such funds. If I am a sole proprietor, you may use any of my personal or business accounts. I expressly agree, to the extent that I may do so by contract that such rights extend to any federal or state benefit payments (including without limitation Social Security benefits) electronically deposited into my account. I understand and agree that if I do not want my benefits applied in this way, I may change my direct deposit instructions to the benefits payor at any time. If my account is a joint account and one or more joint owners are indebted to you in any manner, you may use the funds in the joint account to pay the debt without prior notice to me. If you exercise the right of offset against my account, I agree to release and indemnify you from all liability for your actions. 54. I understand that your business days are Monday through Friday, excluding holidays. 16

18 55. I may not stop payment on completed electronic pointof-sale transactions debiting my checking account. 56. My death or incompetence, or that of any of us, or dissolution of an entity, shall not revoke your authority to accept, pay, or collect a check(s) or to account for proceeds of its collection until you know of the fact of death or adjudication of incompetence and have a reasonable opportunity to act on it. Even with knowledge, you may at your discretion for ten (10) days after the date of death, dissolution, or incapacity, pay or guarantee a check(s) drawn on or prior to that date, unless ordered in writing to stop payment by a person claiming an interest in the account under rules established by you. One of us shall notify you if any of us dies, becomes incapacitated, or the entity is dissolved. 57. You are neither given notice nor otherwise affected by a restrictive endorsement of any person or entity. If I cash or deposit an item or write a check with a restrictive endorsement, I understand that it applies only between me and the payee or maker of the item, and I agree to accept responsibility for the payment of the item. 58. All non-cash payments shall be credited subject to final payment. My right to withdraw the funds represented by certain checks or other items I deposit may be delayed for several days, pursuant to your Funds Availability Policy. I will be notified if my right to withdraw will be delayed. Terms and Conditions Applicable to Accounts with Check Clearing Privileges 1. I understand that my checking account(s) as well as select money market account(s) or select line of credit loan(s) have check-clearing privileges. 2. You may pay and charge to my account check(s) drawn by and payable to any person, organization, association, or corporation whom I have authorized by providing sample magnetic ink character recognition (MICR)-encoded information identifying my account, provided there are sufficient funds in my account to pay such check(s). I agree that your rights in respect to such check(s) shall be the same as if it were a check or checks drawn and signed by me personally. This authority shall remain in effect until I have provided written notice revoking this authorization to the agency to which the sample MICR information was provided, and until you have a reasonable opportunity to act upon it. I agree that you shall be fully protected in honoring such check(s). I further agree that if any such check(s) is/are dishonored, whether with or without cause and whether intentionally or inadvertently, you shall be under no liability 17

19 whatsoever even when such dishonor results in the forfeiture of insurance, loss, or damage to me of any kind. 3. If you have made a good faith payment to a payee, you may charge my account according to: (1) the original tenor of my check, or (2) the tenor of my completed check unless you have noticed that any such completion is improper. 4. I will notify you immediately if my checks are lost or stolen. 5. Provided such request is timely so that you shall have reasonable opportunity to act upon it under your rules, I may order stop payment of any check payable against my account for a fee as disclosed in your Services and Schedule of Fees. All the information given by me to you regarding such check must be accurate. You may, but shall not be obligated to, receive such order orally, written or electronically. If you do act upon my oral or electronic request to stop payment on a check, I agree to indemnify, defend, and hold you harmless from any and all liability, cost (including attorneys fees), judgments, and damages of every kind, regardless of the source. In such event, my oral order shall be valid for only fourteen (14) days unless confirmed in writing. Written or electronic orders shall be valid no longer than six (6) months. I have the burden of establishing the fact and amount of loss resulting from payment contrary to a binding stop payment. I understand that I must submit a new stop payment order to extend the period for another six (6) months. 6. You may without liability accept, pay, guarantee, or charge checks to the account in any order convenient to you. 7. In the event of wrongful dishonor that occurs by mistake, liability shall be limited to actual damages. The measure of damages for failure to exercise ordinary care in handling a check is the amount of the item reduced by an amount that could not have been realized by the use of ordinary care. 8. I agree that in the event I draw a check on my account with you, I will hold you harmless and indemnify you from any liability I incur due to a delay or misrouting of the check if the delay or misrouting is caused by markings placed on the check by me or a prior endorser that obscure any depository endorsement placed by you or your agent. 9. I understand that you are not selling checks. As a convenience to me, you will submit my initial order and reorders for personalized account checks to the printer named on the face of the order. If the printer accepts the initial order and reorders, the printer will 18

20 mail the checks to me and is authorized to charge my account for the cost of delivered checks ordered, plus applicable sales tax and delivery costs. 10. I understand and agree that my checks are truncated, I will not receive the originals, and you do not inspect the checks for signatures. Check copies are not returned with statements, and when paid, the checks become your property and will not be returned to me. Checks are microfilmed on both sides and stored for seven (7) years from date of posting. Upon my request, you will provide me with a photocopy of a requested item within a reasonable time and for a fee as disclosed in your Services and Schedule of Fees. If I have not ordered my checks through your approved check vendors, I understand and agree that you are not responsible for the quality of any check copy that I request from you. In addition, you are not responsible for any checks not paid as a result of quality or printing errors. 11. You may charge against my account a postdated check even though payment is made before the date of the check. However, if I notify you within a reasonable time to permit you to act and identify the check with reasonable certainty, you cannot pay the check until the due date. Notice may be written or oral, and it must include the exact amount, account number, check number, date of check, and name of payee. If oral, the notice shall be valid for fourteen (14) days. If written, the notice shall be valid for up to six (6) months and can be renewed within six (6) months for another successive six (6)-month period. A fee may be assessed for this service. 12. All checks written on my account must be written in English and drawn in U.S. dollars. 13. The following applies to my checking accounts: a. You may, at your discretion, pay funds from this account without obligation or liability for refusal to pay when such payment would draw the account below the minimum balance for the account as established from time to time by you. b. I understand that the current incremental amounts used for overdrafts are disclosed in your current Services and Schedule of Fees and are subject to change. c. You may, but shall not be required to, pay overdrafts to my account by transferring funds to cover such overdrafts from my designated savings account, money market account, and/or applicable line of credit loan. Overdrafts, if paid, in excess of funds in any loan account are payable on demand. 19

21 d. I authorize you to transfer funds on my written, electronic or oral request to my account. I understand that no more than six (6) overdraft transfers are permitted in any calendar month. You may, but are not required to, pay any check against insufficient funds. Overdrafts, paid in excess of funds available in my account, are payable on demand: if drawn by means not authorized in advance by you, or against checks or electronic debits presented over six (6) months past their dates. e. By executing the appropriate written form, I may authorize you to clear all checks validly drawn on my checking account(s) pursuant to the applicable automatic overdraft protection terms. If overdrafts are to be covered by a transfer of funds from my savings or money market account(s) to my checking account(s), such transfer will generally be made only if there are sufficient funds on deposit at the time of transfer. I understand that there might be times when some of the features of overdraft protection may not be available. Examples would include general system maintenance, system overload, or a natural disaster. Terms and Conditions Applicable to Account Ownership: Individual and Joint Accounts 1. If there is more than one owner, all of us agree with each other and with you that all sums now paid in or hereafter paid in by any one or all account owner(s), including all dividends thereon, if any, are and shall be owned by all account owners 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 you from any liability. We hereby appoint each other as agents and attorneys in fact to overdraft any of our individual or jointly held accounts. 2. You 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. 3. A transfer of ownership of funds in my account does not transfer voting rights or other privileges of membership. 4. If this is a joint account, and your Agreement so permits, any one of us may pledge any or all of the funds on deposit in the account as collateral security to any loan(s) subject to then current loan policies 20

22 except those funds on deposit in checking, money market, IRA, custodial, or trust accounts. Further, a pledge of funds by any one of us shall be binding on all of us. 5. A right of survivorship arising from the express terms of a joint account cannot be changed by my last will and testament. 6. As a primary owner, I understand that if I want to delete joint owners from my account, I must withdraw the funds and open a new account, unless at your sole discresion, you accept a written authorization signed by all joint owners, including myself, directing you to delete the joint owners from any existing account. 7. A joint owner may not terminate the membership of the primary owner of the account. 8. Each account owner expressly agrees that each account holder is jointly and severally liable for any and all overdrafts, losses, or charges to any account created by any account holder(s). Pay-on-Death (POD) Designations 1. If I have made a pay-on-death designation, all sums are payable on request to me during my lifetime and upon my death to my surviving designated POD payee(s) in equal and individual shares, 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 to one or more payees then surviving in equal and individual shares. If a POD payee dies before all of the account owner(s), all sums are equally divided among the surviving POD payees upon the death of all of the account owner(s). 2. A Pay-on-Death designation cannot be changed by my last will and testament. Trust Accounts The following terms and conditions apply to the account(s) opened under a trust with you. I understand that: 1. YOU HAVE NOT RECEIVED A COPY OF THE TRUST INSTRUMENT AND SHALL IN NO EVENT BE LIABLE FOR ITS CONTENTS. The trustee(s) and not you assume full responsibility for enforcing the provisions of the trust instrument. 2. If this is a revocable trust, one or more trustors are members with you. If this is an irrevocable trust, either the trustor or beneficiary must be members, or in the case of multiple trustors or beneficiaries, all the trustors or beneficiaries must be members with you. 21

23 All accounts opened in the name of the trust belong solely to the trust. No transfer of voting rights or other membership privileges are permitted by virtue of a transfer of shares. Accounts are not transferable, as defined in the Federal Reserve Board s Regulation D, 12 CFR, Part 204. It is understood that the trust under the Application and Agreement has no voting rights at any membership meeting, although the individual member/ trustor(s) retain(s) his/her/their personal voting rights if he/ she/they retain individual membership with you. 3. The trustee(s) affirm that the successor trustee(s) is/are bound under the trust instrument to serve and is/are authorized and fully qualified to act as trustee(s) in the event that all of the trustees named in the Application and Agreement resign, die, become incapacitated, or otherwise become unable to act as trustees of the trust. 4. In the event that all named trustees and successor trustees die, resign, become incapacitated, refuse to act, or you receive conflicting instructions, you reserve the right to interplead any and all funds held in accounts opened under the Application and Agreement and to deduct attorneys fees for the interpleader action from the trust account funds. 5. If there is a change in the parties or terms of the trust, including but not limited to, a change in trustor(s) or trustees, all trustors and trustees agree to execute a new Application and Agreement. Such change shall not be effective until you have received a properly completed and executed Application and Agreement and have had a reasonable opportunity to act on it. In the event of a change of address of trustor(s)/ trustee(s), the trustee(s) agree(s) to notify you promptly of such change(s). 6. The trustee(s) certify(ies) that he/she/they is/are duly appointed under the trust instrument and that by the authority vested in the trustee(s) under the trust instrument, any trustee, acting alone or jointly, is authorized and empowered to transact business of any kind in connection with the trust s accounts with you. It is agreed that any transaction by the trustee(s) set forth in the Application and Agreement acting alone or jointly, shall be valid and discharge you from any liability. 7. The trustee(s) may authorize the transaction of any business on accounts held with you in the name of the trust by the trustee s(s ) oral or written instruction to you. Trustee(s) may obtain funds from the trust s accounts in the trustee s(s ) names or the names of third parties upon any trustee s(s ) written, oral, or electronic instruction. 22

24 8. If the trustee(s) named on the Application and Agreement borrow(s) from you and the trust instrument must be examined by a third party (for example, a title company), you agree to forward a copy of the trust instrument from the trustee(s) to the third party only if trustee(s) present(s) a sealed envelope containing the trust instrument to you. You will not accept copies of the trust instrument that are not in a sealed envelope. Further, you will not keep any trust instrument in its files or be liable for the contents of a trust instrument. The trustee(s) shall sign a form designated by you that you have received the trust instrument in a sealed envelope when the trustee(s) present(s) the trust instrument to you. 9. The trustee(s) agree(s) that if he/she/they borrow(s) from you and use(s) trust assets as collateral, then the trustor(s) or the trustee(s), as members with you, will, by signing all documents relating to the loan, obligate themselves as individuals in addition to the signatures of the trustee(s) on behalf of the trust. 10. The trustee(s) agree(s) to promptly notify you if any of the trustor(s) or trustee(s) die(s) or become incapacitated. Prior to any successor trustee(s) transacting business on accounts held with you in the name of the trust (including any withdrawal pursuant to Number 11 below), the successor trustee(s) must provide you with either a letter of resignation signed by the existing trustee(s) or a certified copy of the death certificate for the trustee(s). The successor trustee(s) must complete a new Application and Agreement as well as a Certification of Trust. Death, resignation, or incapacity of any trustee(s) or trustor(s) shall not revoke the authority of you to act under the Application and Agreement until written notice of the death, resignation, or incapacity has been presented to you and you have reasonable opportunity to act on it. However, upon presentation of a certified copy of trustee s(s ) death certificate(s), resignation(s), or judicial declaration(s) of incapacity, you are authorized to act upon designated successor trustee s(s ) instructions in accordance with the terms of the Application and Agreement. 11. The successor trustee(s) shall close all accounts opened under the Application and Agreement within ninety (90) days after receiving notification of death, resignation, or incapacity of the trustee(s). You are authorized, but not required, to close any accounts opened under the Application and Agreement upon the 91st day after receiving notice of the trustee s(s ) death(s) and mail a check to the designated successor trustee(s) for the balance of the account made payable to the designated successor trustee(s) as trustee(s) for the above-named trust. The parties may be able to maintain the trust accounts with you under a new Application and Agreement. 23

25 12. The trustor(s) and trustee(s) acknowledge and agree that your sole obligation to the trustor(s)/ trustee(s) is as a depository institution and is a debtor/ creditor relationship, and nothing in the Application and Agreement or in the trust instrument shall be construed to impose any duties or obligations whatsoever upon you as a trustee or other fiduciary under the trust instrument or otherwise. Trustor(s) and trustee(s) hereby agree for the trust, themselves, and all trust beneficiaries for the life of the trust and the statutory life of any cause of action involving any account of the trust to indemnify and hold harmless you from any and all claims, suits, actions, damages, judgments, costs, charges, and expenses, including but not limited to, court costs and attorneys fees resulting from any and all liability, loss, and damage of any nature whatsoever that you shall or may sustain resulting from the establishment, maintenance, and transaction of any business on any trust account with you. The trustor(s) and trustee(s) on behalf of the trust agree to pay any necessary expenses, attorneys fees, or costs incurred in the enforcement of the Application and Agreement. 13. The trustor(s) and trustee(s) acknowledge and agree that you are relying upon the statements, representations, and warranties made by the trustor(s) and trustee(s) contained in the Application and Agreement, and that you shall not be responsible in any way for verifying either the existence, validity, or legality of the trust itself or the authority or powers of the trustee(s) under the governing trust instrument to establish, maintain, or transact any business on the trust accounts. You reserve the right at any time to require the trustee(s) to execute and provide a Certification of Trust pursuant to California Probate Code Section , in form and substance acceptable to you, affirming the existence of the trust and the authority and powers of the trustee(s) hereunder. 14. The Application and Agreement incorporates the full and complete understanding concerning accounts and transaction of business thereon with you for the trust. Custodial Accounts Uniform Transfer to Minors Act 1. The transferor/custodian is opening an account as custodian for the minor named on the Membership Application/Signature Card under the Uniform Transfer to Minors Act. To the extent permitted under federal laws and the laws of my state, I understand and agree that the transfer of money, including all dividends and future additions, to the minor named on the Membership Application/Signature Card is irrevocable and made according to and including all provisions of 24

26 the said statute of the State of California now in effect or hereinafter amended. 2. I acknowledge that by signing the Membership Application/Signature Card, I have received the funds deposited to the account as custodian for the minor named herein under the Uniform Transfers to Minors Act. 3. None of the funds on deposit in this account may be pledged. 4. The successor custodian named on the Membership Application/Signature Card shall serve if I should be unable to act as custodian because I resign, die, or become legally incapacitated. 5. Custodial accounts are not subject to the Multiple Party Accounts Law. Other Custodial Accounts 1. The transferor/custodian is opening an account as custodian for the individual named on the Membership Application/Signature Card based upon a court order. The transfer of money, including all dividends and future additions, to the individual named on the Membership Application/Signature Card is made according to the provisions of said court order. 2. I acknowledge that by signing the Membership Application/Signature Card, I have received the funds deposited to the account as custodian for the named individual. 3. None of the funds on deposit in this account may be pledged. 4. Custodial accounts are not subject to the Multiple Party Accounts Law. Fiduciary Accounts 1. I am duly appointed and acting in the capacity of trustee, executor, administrator, guardian, or conservator. By the authority vested in me, I am acting individually or jointly, authorized and empowered to transact business of any character in connection with this account. My authority shall continue in force until written notice to the contrary is received by you and you have time to act on it. 2. If the account is blocked, I agree that I shall file with the court any required written receipt and documentation that the money in the account, including any dividends thereon, shall not be withdrawn except upon court order. 25

27 3. Fiduciary accounts are not subject to the Multiple Party Accounts Law. 4. I agree that you are a mere depository for business transacted with respect to this account and are not acting in a fiduciary capacity. SECTION III: FUNDS AVAILABILITY POLICY Credits for Deposits A receipt may be provided or made available upon request for all deposits to my account, except for remote deposits (e.g., lockbox, night depository services, certain funds transfers). However, the amount on my deposit receipt is based solely on my deposit ticket. Funds from my deposits to my account may not be made immediately available. You shall not be construed to have received for deposit checks sent by mail or placed in the night depository until you have either received actual delivery from the U.S. Postal Service or have removed the checks from the depository. Checks placed in such depository will be removed not later than the next business day. All deposits made by mail and addressed to you without using a specific Financial Center name and street address will be considered received as of the date such deposit is received by such location. For checking accounts, funds will be made available according to Federal Reserve Regulation CC and your Funds Availability Policy. Credits for all deposits are subject to final verification and, after review, you may make adjustments to my account for any errors, including any errors appearing on my deposit ticket, but have no obligation to do so for discrepancies under $10. In addition, the availability of funds for withdrawal does not mean that the deposited check or other item is good, has cleared, or has been paid by the paying financial institution, or that the item will not be returned unpaid and my account subsequently debited, notwithstanding the passage of any period of time or any representation or belief to the contrary. You may accept credits to my account that have been originated by third parties (e.g., ACH credits, wire transfers). However, you may reverse any credit to my account that the originator of such deposit has informed you was in error or was intended for another account without investigating whether such credit was not properly payable to me. You need not accept for deposit items drawn on a non-u.s. financial institution or items payable in a foreign currency and may instead accept such items on a collection basis, even after you have taken physical possession of such items. If accepted on a collection basis, you will not be obligated to credit my account for such items until you have received final payment. The actual credit for items payable in a foreign currency will be at the exchange rate in effect at the time of final collection in U.S. dollars. Regardless of whether such items are accepted for deposit or on a collection basis, 26

28 your Funds Availability Policy will not apply to these items. I agree that you act only as a collecting agent in receiving items for deposit or collection and assume no responsibility beyond reasonable care. You will use reasonable care in the selection of collecting agents but will not be liable in the case of their failure or negligence or for losses in transit. I agree that you, and each of your correspondents, may send checks subject to collection, directly or indirectly, to any financial institution, depository, maker, or drawer in accordance with your usual custom and may accept checks, drafts, or credits on a conditional basis. In general, your policy is to make funds available to me on the first business day after the day you receive my deposit. The first $200 of this deposit will be available on the first business day after the day of my deposit. For my accounts, funds will be made available according to the Federal Reserve Board s Regulation CC and your Funds Availability Policy. Funds may be held for a longer period after review of deposited items. For purposes of determining the availability of my deposits, every day is a business day, except Saturday, Sunday, and federal holidays. If I make a deposit on a business day that you are open during business hours or through the night depository or lockbox services, you will consider that day to be the day of my deposit. However, if I make a deposit on a Saturday, Sunday, federal holiday, or through the night depository box or lockbox services on a day you are not open or after business hours, you will consider that the deposit was made on the next business day you are open. Longer Delays May Apply In some cases, you will not make all the funds I deposit by check available to me on the first business day after the day of my deposit. Depending on the type of check I deposit, funds may not be available until the second or seventh business day following the day of deposit. If there is reasonable doubt of collectability, funds may be held longer. However, the first $200 of my deposit will be available on the first business day. Note: You may delay the availability of my funds for one (1) additional day if I request a cash withdrawal, cashier s check, money order, traveler s check, certified check, official check, or any other irrevocable commitment to pay. If you delay the availability of my funds, you will tell me at the time I make my deposit and tell me when the funds will be available. If my deposit is not made directly to one of your employees or if you decide to take this action after I have left the premises, you will mail me the notice 27

29 of the delay the business day after you receive my deposit or balance your ATM. If I need the funds from deposit right away, I should ask you when the funds will be available. In addition, funds I deposit by check may be delayed for a longer period under the following circumstances: a. You believe a check I deposited will not be paid. b. I deposit checks totaling more than $5,000 on any one day. c. I redeposit a check that has been returned unpaid. d. I have overdrawn my account repeatedly in the last six (6) months. e. There is an emergency, such as failure of computer or communications equipment. You will notify me if you delay my ability to withdraw funds for any of these reasons, and you will tell me when the funds will be available. Generally, they will be available no later than the seventh business day after the day of my deposit. Special Rules for New Accounts If I am a new member, the following special rules apply during the first thirty (30) days that my account is opened. Funds from electronic direct deposits to my account will be available on the day you 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, and traveler s checks and federal, state, and local government checks will be available on the first business day after the day of my deposit if the deposit meets certain conditions. For example, the checks must be payable to me and the excess of more than $5,000 will be available on the ninth business day after the day of my deposit. If my deposit of these checks (other than a U.S. Treasury check) is not made in person to one of your employees, the first $5,000 will not be available until the second business day after the day of my deposit. Funds from all other check deposits will be available no later than the 30th calendar day after the day of my deposit. In no event does the above policy affect your right to accept or reject an item for deposit or to require written notice of an intended withdrawal. The above policy is subject to change upon fifteen (15) days written notice. Check Processing, including Check 21 Substitute Checks Checks, drafts, and other negotiable instruments, including substitute checks (collectively checks ) deposited to my account or cashed, automated clearinghouse (ACH) 28

30 entries, and all other types of external and book-entry funds transfers (checks and funds transfers collectively referred to herein as items ) may be charged back against the account (or an account for split deposits) or any other account of mine with you if you are informed that the item is being or has been returned unpaid (or for checks drawn on other accounts with you, the check is dishonored by you for any reason), without regard to whether such return or dishonor is timely. When a deposited or cashed item is returned, I will be charged a fee as disclosed in your Services and Schedule of Fees. You may charge my account whether or not the check is returned to you and whether or not you can return the item or a copy to me. Even if you verify a deposited or cashed check and tell me that the check has been paid, that will not release my liability as an endorser. This right shall extend to any check or other item deposited into my account or cashed that is finally paid and then is returned because a claim is made that the check or other item was altered, forged, unauthorized, has a missing signature, or should not have been paid for any reason. In lieu of charging my account, you may withhold an amount equal to such check or other item from my account until a final determination of the validity of such claim has been made. You have no duty to return a check that has been charged back to an account if that account has become overdrawn. You are not required to give me next-day notice if a deposited or cashed item is dishonored. Any check deposited to my account that lacks an endorsement may be, or may be deemed to be, endorsed by you on my behalf with exception of government-issued checks. With respect to any such check, my rights and my liabilities shall be determined as though I actually endorsed and deposited the item. Further, any check deposited to my account that bears my stamped or facsimile endorsement shall be deemed to bear my actual endorsement whether such endorsement was affixed by me or by someone having no authority to supply my endorsement. I agree to assume responsibility for and to indemnify you for any loss you may incur as a result of my failure to comply with the endorsement standards set forth in this Agreement. If I deposit a remotely created check, I guarantee that the check was authorized by the account holder for payment in the amount shown. Remotely created checks are created when an account holder authorizes a payee to draw a check on the account, but instead of the account holder s actual signature, the check identifies that the account holder authorized the check. You will accept deposits based solely on account numbers listed, and you are not responsible for verifying the name(s) listed on the checks or associated with the account. You may return or refuse to accept all or any part of a deposit or credit to my account at any time and will not 29

31 be liable to me for doing so even if such action causes outstanding items to be dishonored and returned. Returned or refused deposits (or the legal equivalent of the deposited item) will be returned to me. In addition, I will be solely responsible for any loss or liability you sustain in connection with the deposit of substitute checks. You will not give me next-day notice of receipt of an electronic deposit to my account but will provide such notice to me on my next periodic account statement. I may call you to confirm an ACH or wire transfer deposit. Substitute Checks Federal law permits financial institutions to replace original checks with substitute checks. These checks are similar in size to original checks with a slightly reduced image of the front and back of the original check. The front of a substitute check states, This is a legal copy of my check. I can use it the same way I 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 I receive back from you may be substitute checks. This notice describes rights I have when I receive substitute checks from you. The rights in this notice do not apply to original checks or to electronic debits to my account. However, I have rights under other laws with respect to those transactions. In certain cases, federal law provides a special procedure that allows me to request a refund for losses I suffer if a substitute check is posted to my account (for example, if I think that you withdrew the wrong amount from my account or that you withdrew money from my account more than once for the same check). The losses I may attempt to recover under this procedure may include the amount that was withdrawn from my account and fees that were charged as a result of the withdrawal (for example, overdraft check fees). The amount of my refund under this procedure is limited to the amount of my loss or the amount of the substitute check, whichever is less. I am entitled to dividends on the amount of my refunds if my account type earns dividends. If you use this procedure, I may receive up to $2,500 of my refund (plus dividends if my account earns dividends) within ten (10) business days after you received my claim and the remainder of my refund (plus dividends if my account earns dividends) not later than forty-five (45) calendar days after you received my claim. You may reverse the refund (including any dividends on the refund) if you later are able to demonstrate that the substitute check was correctly posted to my account. 30

32 Making a Refund Claim If I believe that I have suffered a loss relating to a substitute check that you received and that was posted to my account, I should contact you at 800.XFCU.222 ( ). I must contact you within forty (40) calendar days of the date that you mailed (or otherwise delivered by a means to which I agreed) the substitute check in question or the account statement showing that the substitute check was posted to my account, whichever is later. You will extend this time period if I was not able to make a timely claim because of extraordinary circumstances. My Claim Must Include: A description of why I have suffered a loss (for example, I think the amount withdrawn was incorrect). An estimate of the amount of my loss. An explanation of why the substitute check you received is insufficient to confirm that I suffered a loss. Information to help you identify the substitute check: the check number, the name of the person to whom I wrote the check, and the amount of the check. My compliance with your endorsement standards is necessary to help assure that the checks you deposit will be cleared on a timely basis. Your endorsement standards are: Member endorsements must be placed in the 11/2-inch area starting at the left side of the check. The remaining area of the check cannot contain any preprinted, stamped, or handwritten member information. (The diagram below illustrates where the endorsements must appear to comply with these endorsement standards.) 31

33 Record Retention You shall abide by federal and applicable state record retention laws and may dispose of any records that have been retained or preserved for the period set forth in these laws. Any action by or against me based on, or the determination of which would depend on, the contents of records for which a period of retention or preservation is set forth in these laws shall be brought within the time for which the record must be retained or preserved, unless applicable law provides a shorter limitation period. Any action against me on an automatically renewable share certificate account must be brought within the retention period applicable to that share certificate account based on the stated maturity date in the most recent record evidencing the existence and term of the share certificate account. SECTION IV: ACH AND INCOMING 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 covers the movement of funds by means of wire transfers, automated clearinghouse (ACH) transactions, and some book transfers on your 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 ACH and Incoming Funds Transfer Agreement and Notice ( Agreement ) contains several notices that you are required to provide to me and establishes other terms of agreement that will apply to all funds transfers that involve me and you. Using you to receive funds transfers shall constitute my acceptance of all of the terms and conditions contained in this Agreement. Except for the Outgoing Wire/Funds Transfer Agreement (For Non-Business Accounts) and the Outgoing Wire transfer Request Form Funds Transfer Terms, to the extent that the terms contained in this ACH and Incoming Funds Transfer Agreement and Notice are different than those in any other agreement or terms of account, this ACH and Incoming Funds Transfer Agreement and Notice shall control and be deemed to modify such other agreements or terms of an account. 1. This Agreement applies to funds transfers as defined in Article 4A of the Uniform Commercial Code (Division 11 of the California Uniform Commercial Code) and Subpart B of Regulation J of the Board of Governors of the Federal Reserve. 2. For incoming funds transfer, you may establish or change cutoff times for receipt and processing of 32

34 funds transfers. Unless other times are posted for the types of funds transfers, the cutoff time for incoming funds transfer will be 4:00 p.m., Pacific Time on each weekday that you are open that is not a federal holiday. Funds received after the cutoff time will be deemed received the next business day. 3. If I receive a funds transfer, Fedwire may be used. This means that my rights and liabilities in a funds transfer involving Fedwire will be governed by Regulation J. You will be excused from delaying or failing to execute a funds transfer if it would result in your exceeding any limitation on its intra-day net funds position established through the Federal Reserve guidelines or if it would result in violating any present or future risk control program of the Federal Reserve or a rule or regulation of other governmental regulatory authorities. 4. If you receive a funds transfer for me or for other persons authorized to have access to my account, I agree that you are not obligated to provide me with next day notice of the receipt of the funds transfer. You will provide me with notification of the receipt of all funds transfers by including such items in the periodic account statements which you provide. I may, of course, inquire between receipt of periodic statements whether or not a specific funds transfer has been received. 5. If you become obligated under Article 4A of the Uniform Commercial Code (Division 11 of the California Uniform Commercial Code) to pay dividends to me, I agree that the rate of dividend to be paid will be equal to the dividend rate, on a daily basis, applicable to the account with you to which the funds transfer should have been made or from which the funds transfer was made. 6. You will not be liable for acts or omissions by me or any other person including, without limitation, any funds transfer system, any Federal Reserve Bank, any beneficiary s bank, and any beneficiary, none of which will be deemed your agent. 7. You may charge a service charge for services relating to the receiving of the funds transfer request. Such charge(s) are set forth in your Schedule of Fees and Charges, which is incorporated by this reference. 8. You may give me credit for ACH payments before you receive final settlement of the funds transfer. Any such credit is provisional until you receive final settlement of the payment. I am hereby notified and agree if you do not receive such final settlement, you are entitled to a refund from me of the amount credited to me in connection with that ACH entry. This means that you may provide me with access to ACH funds before you 33

35 actually receive the money. However, if you do not receive the money, then you may reverse the entry on my account, and I would be liable to repay you. 9. Notice of ACH payments received will be provided only on my periodic account statement. ACH transactions are governed by operating rules of the National Automated Clearinghouse Association. In accordance with these rules, you will not provide me with nextday notice of receipt of ACH credit transfers to my account. I will continue to receive notices of receipt of ACH items in the periodic account statements that you provide. 10. I understand and agree that in case of unauthorized or improper ACH debit activity on my account, I must complete, sign, and submit a designated form. 11. Except as expressly prohibited by applicable state and federal laws and regulations, I understand and agree that you will not be liable for any loss or liability arising from: (1) any unauthorized transfer or interest thereon (including, but not limited to, fraudulent transfers and/or a transfer which you failed to abide by the agreed upon security procedures) which I fail to report to you within thirty (30) days after my receipt of notification of the transfer; (2) any negligent or intentional action or inaction on the part of any person not within your reasonable control, including, but not limited to, the failure of other financial institutions to provide accurate or timely information; (3) the failure of other financial institutions to accept a funds transfer order; (4) my negligent or intentional action or inaction and/or breach of this Agreement; (5) any ambiguity or inaccuracy in any instruction given to you by me or my Authorized Agent; or (6) any error, failure, or delay in execution of any funds transfer instruction, or cancellation or amendment caused by circumstances beyond your reasonable control, including, but not limited to, any computer or communication facilities malfunction. Except as otherwise provided by applicable state or federal laws or regulations, your liability for any negligent or intentional action or inaction in connection with any funds transfer request will be limited to my direct loss and payment of interest. UNDER NO CIRCUMSTANCES WILL YOU BE LIABLE FOR ANY LOST PROFITS, CONSEQUENTIAL, INDIRECT, PUNITIVE, OR SPECIAL DAMAGES WHICH I MAY SUFFER IN CONNECTION WITH THIS AGREEMENT AND/OR ANY FUNDS TRANSFER REQUEST. 12. Subject to applicable state and federal laws and regulations, you may amend the terms of this Agreement at any time by providing notice of such 34

36 amendment to me in writing. By thereafter using or continuing to use your funds transfer services, I agree to such amendments. 13. Except as otherwise expressly provided by applicable state and federal laws and regulations, this Agreement and all transactions initiated hereunder shall be governed by and construed in accordance with federal laws and the laws of the State of California, without resort to California s Conflict of Laws rules. 14. If any part of this Agreement is invalid, illegal, or unenforceable, the remaining provisions will remain in full force and effect. This credit union is federally insured by the National Credit Union Administration. 35

37 XFCU.ORG 800.XFCU.222 Effective 8/05/ /16

38 xceed financial federal credit union Truth-In-Savings Disclosure Effective: February 5, XFCU.222 XFCU.ORG

39

40 TABLE OF CONTENTS Introduction 5 Terms and Conditions Applicable to Dividends: Savings Accounts 7 Money Market Accounts 8 Checking Accounts 8 Share and IRA Certificates 9 Terms and Conditions Applicable to Specific Accounts: Primary Savings Accounts 9 Regular Savings Accounts 9 Minor Savings Accounts 10 Club Accounts 11 IRA Savings Accounts 12 Health Savings Accounts (HSAs) 13 Money Market Accounts 14 Checking Accounts 14 Terms and Conditions Applicable to Certificate Accounts: Share Certificate Accounts 15 IRA Share Certificate Accounts 17 3

41 4

42 TRUTH-IN-SAVINGS DISCLOSURE INTRODUCTION I understand that the Agreement and Disclosures booklet, Truth-In-Savings Disclosure, Services and Schedule of Fees, and Rate Sheet (collectively Agreement ) are part of the binding contract between you and me. In this Agreement, the words I, me, mine, my, myself, we, us, and our mean each and all of those (whether one or more persons) who sign the applicable Membership Application/ Signature Card. The words you, your, and yours mean Xceed Financial Federal Credit Union. This Truth-In-Savings Disclosure is effective February 5, 2016, and supersedes any conflicting terms and conditions contained in previous versions of the Truth-In-Savings Disclosure. I agree to read this Agreement carefully and have any additional account owners read it as well, and to file it in a safe place along with other account and services agreement and disclosures. 5

43

44 Terms and Conditions Applicable to Dividends: Dividend rates, frequency, and conditions upon which dividends are paid on all accounts are in accordance with your bylaws, the Federal Credit Union Act, and the Truth in Savings Act and Regulations. Dividends are paid from current income and available earnings after required transfers to reserves at the end of a dividend period. For all dividend-earning accounts, except for share certificate and IRA share certificate accounts, the dividend rate and annual percentage yield may change weekly. You may change the dividend rate and the tier structure for my account as determined by your management. For specific dividend rates for each type of dividend-bearing account, I will refer to your current rate sheet, which is available at each of the Financial Centers and on your website. Dividends will begin to accrue on the business day I deposit cash or non-cash items to my account. Paid dividends remaining in the account will become part of the account balance. Dividends will be paid only if the account remains open through the end of the dividend period. If I close my account before dividends are credited, I may not receive accrued dividends. Dividends are calculated on end-of-day balances, where a daily periodic rate is applied against the account balance to determine the amount of dividends to be accrued (earned) until posted (credited) at the dividend declaration date. Dividends are computed using a 365- day basis (unless the year is a leap year) and except for certain public fund accounts where dividends are calculated on a 360-day basis. You reserve the right not to pay dividends on any deposited item that is returned to me unpaid. Savings Accounts Regular Savings, Minor Savings, Club, IRA Savings, and Health Savings Accounts: Dividend rates are established weekly. For this account type, the dividend period is quarterly. 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 March 31. All other dividend periods follow this same pattern of dates. The dividend declaration date is the ending date of a dividend period. For example, March 31. Dividends compound quarterly and will be calculated on balances meeting specified minimum balance requirements to earn dividends based upon your current rate sheet and are credited quarterly on the last day of the quarter (March, June, September, and December). If I close my account before dividends are credited, I will not receive accrued dividends. 7

45 Money Market Accounts Prime Money Market Accounts: Dividend rates are established weekly. For this account type, the dividend period is weekly. For example, the beginning date of the first dividend period of the calendar year could be January 3, and the ending date of such dividend period would be January 9. All other dividend periods follow this same pattern of dates. The dividend declaration date follows the ending date of a dividend period. For example, January 9. Dividends compound weekly and will be calculated on balances meeting specified minimum balance requirements to earn dividends based upon your current rate sheet and will be credited every Tuesday. If I close my account before dividends are credited, I will not receive accrued dividends. Executive Money Market Accounts: Dividend rates are established weekly. For this account type, the dividend period is monthly. For example, the beginning date of the first dividend period of the calendar year is January 1, and the ending date of such dividend period is January 31. All other dividend periods follow this same pattern of dates. The dividend declaration date is the ending date of a dividend period. For example, January 31. Dividends compound monthly and will be calculated on balances meeting specified minimum balance requirements to earn dividends based upon your current rate sheet and will be credited on the last day of the month. If I close my account before dividends are credited, I will not receive accrued dividends. Checking Accounts Basic Checking Accounts: No dividends will be calculated or paid on this account. SeekMore Checking Accounts: Dividend rates are established weekly. For this account type, the dividend period is monthly. For example, the beginning date of the first dividend period of the calendar year is January 1, and the ending date of such dividend period is January 31. All other dividend periods follow this same pattern of dates. The dividend declaration date is the ending date of a dividend period. For example, January 31. Dividends compound monthly and will be calculated on balances meeting specified minimum balance requirements to earn dividends based upon your current rate sheet and are credited monthly on the last day of the month. If I close my account before dividends are credited, I will not receive accrued dividends. 8

46 Share and IRA Certificates Dividend rates are established weekly. For this account type, the dividend period is quarterly. 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 March 31. All other dividend periods follow this same pattern of dates. The final dividend declaration date may follow the ending date of a dividend period, but dividends will be posted on the last day of the certificate term and at maturity. Dividends compound quarterly and are credited quarterly on the last day of the quarter (March, June, September, and December). If I close my account before the maturity date, I will receive accrued dividends, but I may incur an early withdrawal penalty or other applicable penalties. Terms and Conditions Applicable to Specific Accounts: Primary Savings Accounts 1. A minimum deposit equal to the par value of a share (currently $5) is required to open my primary savings share account(s) and become a member with you. If the balance of my primary savings share account is subsequently reduced to less than the par value and remains so after sixty (60) days, you may close the account. 2. I understand and agree that if my primary savings share account balance is reduced to less than the par value of a share, you may transfer enough funds from any other share account I may have with you in order to bring my account balance up to the par value of a share. 3. I understand that you offer a choice of savings accounts where one can be considered as my primary savings share account with you: Regular Savings and Minor Savings. 4. I must maintain a minimum daily balance equal to the par value of a share in my account each day in order to maintain my membership with you. Regular Savings Accounts 1. I understand the minimum opening balance and the balance required to earn dividends on my account are disclosed on your current rate sheet and may change from time to time. 2. I understand that one of the accounts (Regular Savings, Club, IRA Savings, Health Savings or Money Market Account) where I am the primary owner, will be charged the monthly membership service charge, unless a fee waiver applies, as disclosed in your Services and Schedule of Fees as amended. 3. At my direction, direct deposits and/or payroll deductions can be established in this account. 9

47 4. I understand this account can be used as a source of funds for overdraft purposes. 5. As required by federal law and/or this Agreement, I understand that during any given calendar month, I may not make more than six (6) of the following transactions combined: ATM/debit card purchases; preauthorized or automatic transfers to a third party (including but not limited to ACH transfers); overdraft protection advances; transfers initiated through Xceed Online; telephonic transfers (including calls to your associates or Xceed On-Call); transfers to other accounts with you; transfers to accounts at other financial institutions; and faxed requests for transfers. Transfers or withdrawals in excess of these limitations may not be honored, and my account may be subject to closure by you. However, the following types of transactions are not subject to the abovereferenced limitation: any deposits; withdrawals from or transfers between my accounts with you if made in person at one of your Financial Centers, at an ATM or by mail; telephone request for withdrawals (if a check is mailed to me); and payments to a loan account held with you. 6. I understand that, in the event I do not have a checking account with you, then I am not eligible for a debit/check card but may apply for an ATM card. Minor Savings Accounts 1. I understand that I may open a minor savings account if I am under the age of 18 by the end of the month and there are no monthly membership service charge fees applied against my account. 2. I understand the minimum opening balance and the balance required to earn dividends on my account are disclosed on your current rate sheet and may change from time to time. 3. At my direction, direct deposits and/or payroll deductions can be established in this account. 4. None of the funds on deposit in this account may be pledged. 5. I understand that I may be assessed fees or charges relating to insufficient and uncollected funds activity occurring on my account. 6. I understand that my account may be used for a right of offset transaction on behalf of any parent or adult joint owner on the account. 7. I understand that my minor savings account shall be converted to a regular savings account when I become 18 years of age and that a monthly membership minimum balance fee will apply to my account. I understand that I may be required to 10

48 complete a new Membership Application. 8. I understand this account can be used as a source of funds for overdraft purposes for only the minor owner s checking account. 9. As required by federal law and/or this Agreement, I understand that during any given calendar month, I may not make more than six (6) of the following transactions combined: ATM/debit card purchases; preauthorized or automatic transfers to a third party (including but not limited to ACH transfers); overdraft protection advances; transfers initiated through Xceed Online; telephonic transfers (including calls to your associates or Xceed On-Call); transfers to other accounts with you; transfers to accounts at other financial institutions; and faxed requests for transfers. Transfers or withdrawals in excess of these limitations may not be honored, and my account may be subject to closure by you. However, the following types of transactions are not subject to the abovereferenced limitation: any deposits; withdrawals from or transfers between my accounts with you if made in person at one of your Financial Centers, at an ATM or by mail; telephone request for withdrawals (if a check is mailed to me); and payments to a loan account held with you. 10. I understand that, in the event I do not have a checking account with you, then I am not eligible for a debit/check card but may apply for an ATM card. Club Accounts 1. I understand the minimum opening balance and the balance required to earn dividends on my account are disclosed on your current rate sheet and may change from time to time. 2. Withdrawals are limited to one free per quarter. Withdrawals in excess of this limitation will be subject to the Club Account Excessive Withdrawal Fee disclosed in your Services and Schedule of Fees, as amended. 3. At my direction, direct deposits and/or payroll deductions can be established in this account. 4. I understand this account cannot be used as a source of funds for overdraft purposes. 5. I understand that one of the accounts (Regular Savings, Club, IRA Savings, Health Savings or Money Market Account) where I am the primary owner, will be charged the monthly membership service charge, unless a fee waiver applies, as disclosed in your Services and Schedule of Fees as amended. 6. As required by federal law and/or this Agreement, I understand that during any given calendar month, I may not make more than six (6) of the following 11

49 transactions combined: preauthorized or automatic transfers to a third party (including but not limited to ACH transfers); transfers initiated through Xceed Online; telephonic transfers (including calls to your associates or Xceed On-Call); transfers to other accounts with you; transfers to accounts at other financial institutions; and faxed requests for transfers. Transfers or withdrawals in excess of these limitations may not be honored, and my account may be subject to closure by you. However, the following types of transactions are not subject to the abovereferenced limitation: any deposits; withdrawals from or transfers between my accounts with you if made in person at one of your Financial Centers, at an ATM or by mail; telephone request for withdrawals (if a check is mailed to me); and payments to a loan account held with you. IRA Savings Accounts 1. I understand that my Individual Retirement Account application, agreement and disclosures provide more information about my account, and a copy will be provided to me at IRA plan opening. 2. None of the funds on deposit in this account may be pledged. 3. IRS and state law penalties: certain federal and state penalties may apply to early withdrawals from IRA accounts. These are set forth in your Individual Retirement Account agreement and disclosures and applicable federal and state laws and regulations, and are incorporated herein by reference. 4. At my direction, direct deposits and/or payroll deductions can be established in this account. 5. I understand this account cannot be used as a source of funds for overdraft purposes. 6. I understand that one of the accounts (Regular Savings, Club, IRA Savings, Health Savings or Money Market Account) where I am the primary owner, will be charged the monthly membership service charge, unless a fee waiver applies, as disclosed in your Services and Schedule of Fees as amended. 7. I understand that my account will be charged the IRA Transfer/Closeout Fee, disclosed in your Services and Schedule of Fees, as amended, at the time I close my IRA Savings Account. 8. As required by federal law and/or this Agreement, I understand that during any given calendar month, I may not make more than six (6) of the following transactions combined: preauthorized or automatic transfers to a third party (including but not limited to ACH transfers); transfers initiated through Xceed Online; telephonic transfers (including calls 12

50 to your associates or Xceed On-Call); transfers to other accounts with you; transfers to accounts at other financial institutions; and faxed requests for transfers. Transfers or withdrawals in excess of these limitations may not be honored, and my account may be subject to closure by you. However, the following types of transactions are not subject to the abovereferenced limitation: any deposits; withdrawals from or transfers between my accounts with you if made in person at one of your Financial Centers, at an ATM or by mail; telephone request for withdrawals (if a check is mailed to me); and payments to a loan account held with you. Health Savings Accounts (HSAs) 1. I understand that my Health Savings Account Application provides more information about my account, and a copy will be provided to me at the time I open my account. 2. I understand the minimum opening balance and the balance required to earn dividends on my account are disclosed on your current rate sheet and may change from time to time. 3. None of the funds on deposit in this account may be pledged. 4. At my direction, direct deposits and/or payroll deductions can be established in this account. 5. I understand this account cannot be used as a source of funds for overdraft purposes. 6. I understand that I must contact my employer directly to make arrangements for any applicable companymatching benefits afforded to me and deposited into this account. 7. I understand that my Health Savings Account cannot be linked to any other ATM or debit card other than my Health Savings Account (HSA) check card. 8. IRS and state law penalties: certain federal and state penalties apply to Health Savings Accounts. These are set forth in your Health Savings Account agreement and disclosures and applicable federal and state laws and regulations, and are incorporated herein by reference. 9. I understand that one of the accounts (Regular Savings, Club, IRA Savings, Health Savings or Money Market Account) where I am the primary owner, will be charged the monthly membership service charge, unless a fee waiver applies, as disclosed in your Services and Schedule of Fees as amended. 13

51 Money Market Accounts 1. I understand that you offer two types of money market accounts: Prime Money Market and Executive Money Market. 2. I understand the minimum opening balance and the balance required to earn dividends on my account are disclosed on your current rate sheet and may change from time to time. 3 At my direction, direct deposits and/or payroll deductions can be established in this account. 4. None of the funds on deposit in this account may be pledged. 5. I understand that the Prime Money Market and Executive Money Market accounts have check-clearing privileges. 6. I understand that this account can be used as a source of funds for overdraft purposes. 7. I understand that there are no ATM/debit card privileges allowed on this account. 8. I understand that one of the accounts (Regular Savings, Club, IRA Savings, Health Savings or Money Market Account) where I am the primary owner, will be charged the monthly membership service charge, unless a fee waiver applies, as disclosed in your Services and Schedule of Fees as amended. 9. As required by federal law and/or this Agreement, I understand that during any given calendar month, I may not make more than six (6) of the following transactions combined: checks or drafts made payable to third parties; preauthorized or automatic transfers to a third party (including but not limited to ACH transfers); overdraft protection advances; transfers initiated through Xceed Online; telephonic transfers (including calls to associates or Xceed On- Call); transfers to other accounts with you; transfers to accounts at other financial institutions; and faxed requests for transfers. Transfers or withdrawals in excess of these limitations may not be honored, and my account may be subject to closure by you. However, the following types of transactions are not subject to the above-referenced limitation: any deposits; withdrawals from or transfers between my accounts with you, if made in person at one of your Financial Centers, at an ATM or by mail; telephone request for withdrawals (if a check is mailed to me); and payments to a loan account held with you. Checking Accounts 1. I understand that you offer two types of checking accounts: Basic Checking and SeekMore Checking. 2. I understand that a minimum opening deposit may be required to open my checking account unless a direct 14

52 deposit is established or other specified prerequisites are met as disclosed on your current rate sheet. 3. I understand the minimum balance required to earn dividends on my account is disclosed on your current rate sheet and may change from time to time. 4. I understand that my checking accounts cannot be used as a source of funds for overdraft purposes. 5. The Basic Checking account does not earn dividends. 6. I understand that my Basic Checking account will be charged the monthly checking service charge, unless a fee waiver applies, as disclosed in your Services and Schedule of Fees as amended. 7. I understand that my SeekMore Checking account will be charged the monthly checking service charge, unless a fee waiver applies, as disclosed in your Services and Schedule of Fees as amended. 8. I understand that Platinum Checking accounts are no longer available as a new product. I understand that my existing Platinum Checking account will be charged the monthly checking service charge, unless a fee waiver applies, as disclosed in your Services and Schedule of Fees as amended. Terms and Conditions Applicable to Certificate Accounts: Share Certificate Accounts 1. The terms available and the minimum deposit required to open my certificate account is disclosed in your current rate sheet and may change from time to time. 2. The annual percentage yield disclosed in your current rate sheet assumes dividends remain in the accounts until maturity and that a withdrawal will reduce earnings. 3. I understand that from time to time, you may offer certain promotional certificate accounts that have a higher or lower minimum-balance requirement. 4. I understand the dividend rate for my certificate account is fixed for the term and starts the day of deposit and holds for the term I select for the certificate. 5. After my account is opened, I may not make additional deposits into the account until the maturity date. 6. My account will mature on the date set forth on my certificate account form. 7. Federal Reserve Board regulations require an early withdrawal penalty of seven (7) days dividends on amounts withdrawn within the first six (6) days after deposit or any partial withdrawal made prior to the date of maturity, except IRA share certificates. 15

53 8. You agree to disburse paid dividends from the account at the end of each dividend period in compliance with my instructions. 9. I understand that direct deposit and payroll deductions are not allowed on this account. 10. I understand this account cannot be used as a source of funds for overdraft purposes. 11. Except as set forth herein, I understand a substantial penalty is required for early withdrawal. Any withdrawal of the principal amount held in the account that does not reduce the balance of the account below the minimum opening balance will be subject to the following penalties: the lesser of all dividends earned or ninety (90) days loss of dividends (for certificates with a maturity of 365 days or less), or 180 days loss of dividends (for certificates with a maturity greater than 365 days), with seven (7) days minimum of simple dividends on withdrawals during the first six (6) days. 12. Any withdrawal of the principal amount held in my account that reduces the balance of the account below the minimum opening balance requirement may result in the cancellation of the certificate, and the penalties set forth above may be applied to the entire principal amount. The penalties will be applied to earned dividends only. However, if paid dividends have been withdrawn, the penalties may be applied to the principal held in the account up to the amount of the dividends that have been previously withdrawn. 13. Penalties do not apply to: a. Withdrawals of earned and paid dividends. b. Withdrawals of certificate funds during the seven (7)-day grace period following the automatic renewal of the certificate. c. Withdrawals made subsequent to my death or disability or to the death or disability of any owner of the account made pursuant to your bylaws. 14. You will send me a written maturity notice at least ten (10) days in advance of the maturity date of my share certificate. I may instruct you in person or in writing prior to the expiration of a seven (7)-day grace period following maturity to renew or close the certificate on a date of my choosing within the grace period. Funds will continue to earn dividends but at the rate of a new certificate for the same term in effect on the maturity date until such date of closure or renewal. 15. Unless I instruct you otherwise in person or in writing before the end of the grace period, you will renew the certificate automatically for the same term as the maturing certificate, if certificates of that term are then available. The renewal will be effective on the maturity date, and the rate will be the same as 16

54 your rate for opening a new certificate of like term on the renewal date. For certificates maturing on a non-business day, funds will be made available on the second business day following the maturity date. 16. I understand that my certificate accounts are nontransferable and nonnegotiable. Any account holder with borrowing privileges may pledge any or all of the funds in any certificate (except an IRA) account as collateral security to any of your loan(s) in accordance with current loan policies. IRA Share Certificate Accounts The same share certificate account terms and conditions apply to IRA share certificates with several inclusions, as listed below: 1. I understand that my Individual Retirement Account application, agreement and disclosures provide more information about my account, and a copy will be provided to me at IRA plan opening. 2. None of the funds on deposit in this account may be pledged. 3. I understand that direct deposit and payroll deductions are not allowed on this account. 4. I understand this account cannot be used as a source of funds for overdraft purposes. 5. Penalties may be waived on IRA certificates for those members aged 59½ or older. 6. Members aged 70½ or older may be required to take a required minimum distribution (RMD). Refer to a qualified tax advisor for further guidance. 7. Penalties do not apply to: a. Withdrawals of earned and paid dividends. b. Withdrawals of certificate funds during the seven (7)-day grace period following the automatic renewal of the certificate. c. Withdrawals made subsequent to my death or disability or to the death or disability of any owner of the account made pursuant to your bylaws. d. Withdrawals made to effect a required distribution of funds from accounts that are part of a pension plan that qualifies (or qualified) for specific tax treatment under Section 401 or from accounts qualifying under Section 408 of the Internal Revenue Service Code. 8. IRA accounts include traditional IRAs, Roth IRAs, SEP IRAs, contributory IRAs, and Coverdell education savings accounts (Coverdell ESAs). 9. IRS and state law penalties: certain federal and state penalties may apply to early withdrawals from IRA accounts. These are set forth in your Individual Retirement Account agreement and disclosures and 17

55 applicable federal and state laws and regulations and are incorporated herein by reference. 10. I understand that my account will be charged the IRA Transfer/Closeout Fee, disclosed in your Services and Schedule of Fees, as amended, at the time I close my IRA Share Certificate Account. This credit union is federally insured by the National Credit Union Administration. 18

56 Notes 19

57 XFCU.ORG 800.XFCU.222 Effective 2/05/ /16

58 Xceed Financial Federal Credit Union Services and Schedule of Fees Effective June 1, 2017 PROCESSING AND SERVICE FEES Account Closure (if closed within 90 days of opening date) $30 Account History Printout (per printout) $10 Account Research 1 $25/hour; 1-hour minimum Bad Address Locator (Returned Mail) (per instance) $10 Branch Transaction (per transaction) Xceed Financial Center Shared Branch 2 FREE FREE Cashier s Check (per item) $5 Check/Draft Collections (per item) Domestic Incoming & Outgoing $25 Plus third-party cost International Incoming & Outgoing $40 Plus third-party cost Check Printing Varies Copy of Paid Check (per item) $6 DMV Title 3 Fee Varies by State DMV Lien Release (per request) $10 Free of charge for the first request. Plus Notary Service Fee and/or $3 Fax Service Fee, as applicable. Insufficient/Uncollected/Nonsufficient Funds $34 (per unpaid/returned item or per failed preauthorized transaction) IRA Transfer/Closeout $35 Legal Processing (per request) 4 up to $50 Notary Service (per notarial act/signature) CA - $10, NJ - $2.50, NY - up to $2, and TX - up to $6 Fees vary depending on the state. Free of charge for members with a SeekMore or Platinum Checking account. Official Check (per item) $5 On-Us Check Cashing (for non-members, per item) $10 Overdraft Privilege (per overdrawn paid item) 5 $34 Courtesy overdraw on qualified checking accounts Overdraft Transfer (per transfer) 6 $5 Overnight Delivery Request (per request) 3 Varies Return Deposit Item (per item) $30 Statement Delivery Service Charge Electronic Statement (estatement) FREE Mailed Statement (per statement cycle and membership) $5 Charged to one of the primary owner s accounts (Regular Savings, IRA Savings, Health Savings, Money Market or Checking Account). Fee waived for any given month in which the primary owner on the account is under the age of 26 or over the age of 62 at the end of the month. Statement Copy (per statement) $10

59 Stop Payment (per request) One item $30 Two or more items $60 Temporary Checks (per page) $10 Three checks per page encoded by Xceed. Verification of Deposit (per request) $15 Wire Transfers (per transfer) Domestic Outgoing $25 International Outgoing $50 Xceed Account Alerts 7 Xceed On-Call Xceed Online, Bill Payer, Transfers/uTransfer Xceed Mobile Banking 7 CARD FEES FREE FREE FREE FREE ATM Transaction Xceed-owned ATM FREE CO-OP, CU24, Allpoint Network ATM FREE Foreign ATM (Non-Xceed-owned and non-co-op, $2 CU24, Allpoint Network ATM) 2 (per transaction including inquiries, transfers or withdrawals) Free of charge for the first four Foreign ATM transactions in a given month on a SeekMore Checking account. Card Replacement - ATM Card, Check Card (per card) $10 Card Rush - ATM Card, Check Card (per request) $40 POS Transactions 2 FREE Visa International Transaction 7 0.8% or 1.0% of transaction SAVINGS ACCOUNT FEES Club Account Excessive Withdrawal Fee (per withdrawal) $2 Free of charge for the first withdrawal per calendar quarter. Membership Service Charge (per month) $5 Charged to one of the primary owner s accounts (Regular Savings, Club, IRA Savings, Health Savings or Money Market Account). Fee waived during any given month in which (a) one of the following applies to accounts in my membership: my primary savings account is open less than 60 days, I am under the age of 18 by the end of the month, I receive a direct deposit or I have a checking account; or (b) I have $500 or more in aggregate average balances* in accounts (savings, checking, money markets, certificates, retirement accounts, credit cards and loans) where I am the primary or joint owner. Access Savings Service Charge (per month) $5 Fee waived during any given month in which I have an open Access Checking account, credit card(s) or loan(s) under the same primary owner s membership.

60 CHECKING ACCOUNT FEES Basic Checking Service Charge (per month) $7 Fee waived during any given month in which (a) the primary owner on the account is under the age of 26 by the end of the month; or (b) one of the following applies to accounts in my membership: my Basic Checking account is open less than 90 days, I have direct deposits totaling at least $500 in my membership, or I have a minimum daily balance of $750 in my Basic Checking account. SeekMore Service Charge (per month) $10 Fee waived during any given month in which (a) the primary owner on the account is under the age of 26 by the end of the month; or (b) one of the following applies to accounts in my membership: my SeekMore account is open less than 90 days, I have direct deposits totaling at least $500 in my membership, or I have a minimum daily balance of $3,000 in my SeekMore Checking account. Ways to avoid monthly service charge Basic Checking SeekMore Checking Maintain direct deposit(s) totaling Or maintain a minimum account daily balance of Otherwise, the following monthly service charge will apply $500 or more $500 or more $750 $3,000 $7 $10 Access Checking Service Charge (per month) $15 Fee reduced to $10 during any given month in which I have direct deposit(s) into this account.

61 SERVICES AND FEE DISCLOSURES 1 Fee may apply to statement reconciliation, escheat account research, or other extensive research or detailed investigative requests initiated by the account holder. 2 Some institutions or merchants may impose surcharges and/or fees for ATM/POS and/ or Shared Branch transactions not controlled by Xceed Financial Federal Credit Union ( Xceed ). 3 Based on actual expenses (e.g., actual cost of Department of Motor Vehicles (DMV) title fees, actual third party cost, etc.). 4 Fee may be charged to the member for any subpoena, court administrative order processing, tax levy or garnishment, whether or not funds are actually turned over or submitted. 5 Also referred to as Premium OD Fee or Insufficient/Uncollected Funds Fee (Paid). One Overdraft Privilege Fee per calendar quarter will be rebated no later than the third business day following the posting of such fee when during that same quarter an Overdrawn Paid Item in the amount of $5 or less is posted. 6 The funds automatically transfer from a qualifying account designated by the member (savings, money market, line of credit) to a checking account in increments of $100, or up to the available balance, whichever is less. The fee is automatically charged to the checking account. 7 Mobile carriers may impose charges that are not controlled by Xceed. 8 Fee varies depending on whether Visa International or the merchant outside the U.S. converts the charge into U.S. dollars. Refer to Electronic Services Agreement and Disclosure for further details. The service charge is assessed the following month, if applicable. * Accounts closed prior to the end of the month and past due or delinquent loan balances are not included in such aggregate average balance calculation. Note: Terms and conditions are subject to change at any time. Additional services and fees may apply. Fees and Services Charges may be waived at Xceed s sole discretion. Please refer to the Agreement and Disclosure, Truth-In-Savings Disclosure, Electronic Services Agreement and Disclosure and Overdraft Coverage brochure, as amended, for additional information applicable to specific accounts and services. This credit union is federally insured by the National Credit Union Administration. XFCU.ORG 800.XFCU.222 Effective 6/1/ /17

62 xceed financial federal credit union Electronic Services Agreement and Disclosure October 1, XFCU.222 xfcu.org

63 Table of Contents General Disclosures Applicable to: All Electronic Services 4 Additional Disclosures Applicable to: Preauthorized Deposit of Net Paychecks, Pension Checks and Federal Recurring Payments 11 Preauthorized Withdrawal Transactions and Payment Services 12 Electronic Check Transactions 13 ATM and Point-of-Sale Electronic Funds Transactions 13 ATM Electronic Funds Transactions 16 Point-of-Sale Electronic Funds Transactions 17 Xceed On-Call Electronic Telephone Banking 18 Xceed Online Banking 20 Mobile Banking 21 Alerts by Phone, , and Mobile Text 22 Shared-Branch Transactions 23 3

64 All Accounts I, me, mine, my, myself, we, us, and our mean each and all of those (whether one or more persons) who sign the applicable Membership Application/Signature Card. The words you, your, and yours mean Xceed Financial Federal Credit Union. I understand that by accepting, retaining, using or allowing others to use ATM Card/Visa Check Card or any other electronic services offered by you, I am agreeing to be bound by the terms and conditions of this Electronic Services Agreement and Disclosure ( Agreement and Disclosure ). This Agreement and Disclosure is given by you in compliance with the Electronic Funds Transfer Act (15 USC Section 1693 et seq.) and Regulation E (12 CFR 205 et seq.) to inform me of certain terms and conditions of the electronic funds transfer services I have requested. At the present time, you participate in several types of services that may be accomplished electronically: preauthorized deposits of net paychecks, pension checks and federal recurring payments (for example, Social Security payments), certain preauthorized payments from my account (for example, insurance premiums), certain preauthorized transfers, certain point-of-sale (POS) transactions, electronic funds transfers conducted at your ATMs or network ATMs identified in the ATM section, and certain transactions through electronic access systems including but not limited to, Xceed On-Call, Xceed Online, mobile banking, alerts by phone, , and mobile text services. Disclosure information applicable to all electronic services offered by you is given below, with certain specific disclosure information for each service following in separate sections. I understand that other Agreements and/or Disclosures applicable to any of my accounts (including, for example, checking accounts, savings accounts, and other applicable accounts) remain in full force and effect and continue to be applicable, except as specifically modified by this Agreement and Disclosure. GENERAL DISCLOSURES APPLICABLE TO: ALL ELECTRONIC SERVICES Security: You will never ask me to divulge my personal identification number (PIN), password, or access codes under any circumstances. Additional information regarding protecting my personal data can be found on your website at Business Day Disclosure: Your business days are Monday through Friday. Holidays are not included. Your proprietary ATMs are open but not always accessible 24 hours a day. The Xceed On-Call audio response/electronic telephone banking service and Xceed Online are available for my convenience 24 hours a day. How to Contact You: I may contact you in any of the following ways: Call your Contact Center at 800.XFCU.222 ( ) or, if I am outside the U.S., at Write you at Xceed Financial Federal Credit Union, 888 N. Nash Street, El Segundo, CA Send a secure message through Xceed Online. Visit my local Financial Center. Disclosure of Account Information to Third Parties: You will disclose information to third parties about my account or the transactions I engage in: 1. When it is necessary to complete an electronic transaction. 2. In order to verify the existence of my account for a third party, such as a credit bureau or merchant. 3. In order to comply with a government agency, court order, or any legal process. 4. If I give you my written permission or as otherwise allowed by law. Errors and Omissions: In case of errors or questions about my electronic services transactions, if I think my statement or receipt is wrong or if I need more information about a transaction listed on the statement or receipt, I will contact you as soon as I can in one of the following ways: Call your Contact Center at 800.XFCU.222 ( ) or, if I am outside the U.S., at Write you at Xceed Financial Federal Credit Union, 888 N. Nash Street, El Segundo, CA Send a secure message through Xceed Online. Visit my local Financial Center. You must hear from me no later than sixty (60) days after you send me the first statement on which the problem or error appeared. I will: 1. Tell you my name and account number. 2. Describe the error or the transaction I am unsure about and explain as clearly as I can why I believe it is an error or why I need more information. 3. Tell you the dollar amount of the suspected error. If I initially provide this information to you via the telephone, you may require that I send my complaint or question in writing within ten (10) business days. You will advise me of the results of your investigation within ten (10) business days [or twenty (20) business days if my account was opened less than thirty (30) days prior to the date of the suspected error] after I hear from you and, if you have made an error, you will correct it promptly. If it takes you longer than ten (10) business days [or twenty (20) business days if my account was opened less than thirty (30) days prior to the date of the suspected error] to research my complaint or problem, you must provisionally credit my account within such time for the amount I think is in error so that I will have the 4 5

65 use of the money during the time it takes you to conclude your investigation. If you ask me to put my question or complaint in writing and you do not receive it within ten (10) business days, you reserve the right not to credit my account. At the conclusion of your investigation, you will inform me of your results within three (3) business days. If you determine that there was no error, you will send me a written explanation. I may ask for copies of the documents that you used in your investigation. In all cases, your investigation will be completed within forty-five (45) days [or ninety (90) days if my account was opened less than thirty (30) days prior to the date of the suspected error, if the suspected error occurred at a point-of-sale location, or if the suspected error occurred outside the United States]. I understand and agree that any questions regarding the quality of goods and services should be directed to the merchant. Your Liability for Failure to Make or Complete Electronic Funds Transactions (EFTs): If you do not properly complete an electronic funds transaction to or from my account in the correct amount or time, you may be liable for my losses and damages to the extent required by law. However, there are some exceptions. You will not be liable, for instance, if: 1. Circumstances beyond your control (such as fire, flood, acts of God, power outages and the like, or earthquake) prevent the transaction, despite reasonable precautions. 2. Through no fault of yours, I do not have enough money in my account or sufficient funds to make a transaction. 3. The funds in my account are subject to an uncollected funds hold, legal process, or other circumstances restricting such electronic transactions. 4. You have received incorrect or incomplete information from me or from third parties (e.g., the U.S. Treasury, an automated clearinghouse, or a terminal owner). 5. Your ATM, a network ATM, Xceed On-Call, or Xceed Online was not working properly, and I knew about this breakdown when I started the transaction. 6. Your ATM or network ATM where I was making the transaction did not have enough cash or cash in the denominations I requested. 7. My ATM card, Visa Check Card, ATM card PIN, Visa Check Card PIN, Xceed On-Call PIN, or Xceed Online PIN has been reported lost, compromised, stolen, has expired, is damaged so that the ATM or POS terminal cannot read the encoding strip, is inactive due to non-use, is retained by you due to my misuse or suspected fraudulent activities, is retained by you at my request, or because my PIN has been repeatedly entered incorrectly. 8. The transaction would exceed my available overdraft limit. 9. My failure to provide you with complete and correct payment or transfer information, including without limitation the financial institution name, address, account number, and transfer or payment amount Delays in processing and/or payment were caused by thirdparty software and/or services. 11. My failure to complete the transaction is done to protect the security of my account and or the electronic terminal system. 12. I make an error keying in my deposit. You will not be responsible for unpaid or returned items, forfeited dividends, and other consequences that may result. 13. The payee or, for external transfers, the third party financial institution, mishandles or delays processing or posting a transaction. 14. There is terminal or equipment failure. 15. I receive notice from a merchant or institution that any payment I made through Xceed Online remains unpaid, and I fail to notify you promptly of that fact. 16. The payee was a merchant or institution I am not permitted to designate. 17. I instructed you to make a payment on a date that does not ensure timely payment to the payee (at least seven full business days prior to the due date of the bill). 18. I fail to request to stop one or more payments three business days or more before the transfer is scheduled. 19. Your failure to stop payment resulted in payment on my behalf of a debt for which I am actually liable and I thereby received the benefit of the payment. The list of examples set out in the above is meant to illustrate circumstances under which you would not be liable for failing to make a transfer or a payment and is not intended to list all of the circumstances where you would not be liable. Except as required by law, you shall not be liable for any direct, indirect, special, incidental, consequential, or exemplary damages, including loss of profits (even if advised of the possibility hereof) arising in any way out of the installation, use, or maintenance of any equipment, software, and/or service. The foregoing shall constitute your entire liability and my exclusive remedy. Charges for Electronic Funds Transaction Services: Charges associated with my electronic funds transactions may be disclosed by you through any means permitted by law, such as in your Services and Schedule of Fees or online. For example, a stop payment on a preauthorized electronic payment may be subject to a fee for each stop payment order I request. If I request a copy of the documentation relative to an ATM or POS transaction (except if the documentation is for resolution of a billing error), a fee equal to your reasonable cost of reproduction may be charged. Any fees charged will be deducted from my account(s). 7

66 Change in Terms: You may change the terms and charges for the services indicated in this Agreement and Disclosure and may amend this Agreement and Disclosure from time to time. I will receive written notice at least twenty-one (21) days prior to the effective date of the change(s) or as otherwise provided by law. Termination of Electronic Services: I may, by prior written request, terminate my use of any of the electronic services provided for in this Agreement and Disclosure. You may terminate my right to use and make electronic funds transfers at any time with or without notice. If I ask you to terminate my account or the use of any of your ATM card(s), Visa Check Card(s), Xceed On-Call, or Xceed Online, I will remain liable for subsequent transactions performed by any other party to my account. Periodic Statement: My electronic payments and transfers will be indicated on account statements you provide or make accessible by mail, electronically, or by some other means. I will receive a monthly account statement (unless there are no transfers during that month) for the account(s) that I have accessed, which will show the effective date that I initiated each transaction, the type of transaction, and the amount of transactions occurring during that statement period. In any case, I will receive a statement at least quarterly. My Liability for Unauthorized Transactions and Advisability of Reporting: I must tell you at once if I believe my ATM card, Visa Check Card, personal identification number (PIN), or password or access codes including my Xceed On-Call or Xceed Online PIN have been lost, compromised, or stolen. The best way to contact you is by telephone to minimize possible losses. I understand that I could lose all the money in my account(s) plus my maximum overdraft and line of credit limit. If I tell you within two (2) business days after I learn of the loss, I can lose no more than $50 if someone used my card, PIN, or code without my permission. If I do not tell you within two (2) business days after I learn of the loss, compromise, or theft of my card, PIN, or code and you can prove you could have stopped the unauthorized transactions if I had told you, I could lose as much as $500. If my statement shows electronic funds transfers that I did not make, I must tell you at once. If I do not tell you within sixty (60) days after the statement was mailed to me, I may be liable for transactions posting after the sixty (60) days if you can prove that you could have prevented the transactions if I had told you in time. If a good reason (such as a long trip or a hospital stay) kept me from telling you, I will let you know, and you may extend the time periods. However, if I am using my Visa Check Card for transactions that take place on the Visa network system, I understand that Visa Operating Rules and Regulations provide for zero liability for losses from unauthorized (fraudulent) activity. This does not apply to ATM transactions using a PIN. Telephone Number, , and Address to Be Notified in Event of Unauthorized Transactions: If I believe my ATM Card, Visa Check Card, PIN, or access code has been lost or stolen, or that someone will or may use it to transfer money from my account without my permission, I will contact you in one of the following ways: Call your Contact Center at 800.XFCU.222 ( ) or, if I am outside the U.S., at Write you at Xceed Financial Federal Credit Union, 888 N. Nash Street, El Segundo, CA Send a secure message through Xceed Online. Visit my local Financial Center. Limitation on Transfers, Amounts, and Frequency of Transactions: 1. For all share accounts, except checking accounts, during any given month, I may not make more than six (6) withdrawals or transfers to another account of mine or to a third party by means of a check, draft, debit card, preauthorized or automatic transfer, or telephonic order or instruction. Transfers or withdrawals in excess of these limitations may not be honored, and my account may be subject to closure by you. 2. I may make cash withdrawals, not to exceed my daily authorization limit, at any ATMs described herein. 3. I may make electronic transactions (including, but not limited to, point-of-sale transactions, transfers, withdrawals) in amounts not to exceed my daily authorization limit. 4. If my account is not in an open and active status, purchases and ATM transactions made with my card may be suspended. However, in the event that a transaction is approved and processed, I will still be responsible for such charges. 5. I agree that you are not responsible if you do not authorize or if you dishonor other POS, ATM, check, or electronic transactions drawn on my account while a hold is placed on my account. 6. Transactions cannot be made from any account in an unavailable status, such as a dormant or inactive account or from any account subject to legal process or other encumbrance restricting the transfer. 7. You reserve the right to refuse to pay any payee whom I may designate for a payment. You may notify me if it is decided to refuse to pay a payee designated by you. This notification is not required if I attempt to pay or transfer any illegal activity or transaction or for the purchase of any goods or services on the Internet that involve gambling of any sort, including but not limited to any quasicash or online gambling transaction, any electronic commerce transaction conducted over an open network, and any betting transaction including the purchase of lottery tickets or casino gaming chips or off-track betting or wagering, each of which is prohibited under this Agreement. 8 9

67 Verification: All transactions affected by use of services indicated in this Agreement and Disclosure that would otherwise require my signature, or other authorized signature, shall be valid and effective as if signed by me when accomplished by use of these services. Funds at an ATM are subject to verification by you and may only be credited or withdrawn in accordance with your Funds Availability Policy. Transactions accomplished after the close of regular business each day shall be deemed to have occurred on your next business day. You are not responsible for delays in a deposit due to improper identification on the deposit envelope or improper keying of my transaction. Information accompanying a deposit should include my name, your name and my account number. Notice and Communications: Except as otherwise provided in this Agreement and Disclosure, all notices required to be sent to me will be effective when you mail or deliver them to the last known address that you have for me in your records or when you make such notices available to me through your Xceed Online or at the last known address you have for me. Notices from me will be effective when received by mail at the address specified in the How to Contact You section in this Agreement and Disclosure and you have sufficient time to act upon my request. Overdraft From Line of Credit or Share Account: I understand that if I have designated an overdraft share and/ or line of credit accounts in conjunction with my checking account, I may use such accounts to fund any overdraft on my checking account, including but not limited to overdrafts caused by any electronic check transactions, point of sale transactions, preauthorized withdrawal transactions or payment services. If I do overdraw, I authorize you to cover the overdraft on my checking account by making an advance from my line of credit account, if any, or withdraw funds from my designated share account(s). Overdrafts that cannot be honored are payable on demand and may result in termination of my account(s). Collections: I agree that you shall be entitled to recover any money owed by me as a result of my use of, or the use of anyone I have provided with access to, any of your electronic services, and I agree to repay any amounts that create an overdrawn balance immediately upon demand. I may be charged an overdraft fee. You have a security interest in my present and future shares and have the right to apply such shares to any money I owe. If any legal action is required to collect money I owe, I agree to pay all costs of collection, including reasonable attorneys fees, court costs, and other charges incurred for enforcing your rights under this Agreement and Disclosure. Severability: If any part of this Agreement and Disclosure should be held to be unenforceable, the remaining provisions shall remain in full force and effect. Applicable Law: This Agreement and Disclosure shall be construed and governed by applicable federal laws and regulations and the laws of the state of California, without resort to California s Conflict of Laws rules. No Waiver: No delay or omission on your part in exercising any rights or remedies shall operate as a waiver of such rights or remedies. A waiver on any one occasion shall not be construed as a bar or waiver of any rights or remedies on future occasions. Disclaimer: I understand that the electronic access systems are authorized only for domestic use within the United States and territories that fall under the jurisdiction of U.S. laws and treaties. You accept no responsibility for any usage going outside or through the territorial jurisdiction of the United States or any violations of foreign encryption or telecommunication prohibitions or laws. You may offer additional systems and/or services in the future, and if so, I will be notified of them. ADDITIONAL DISCLOSURES APPLICABLE TO: PREAUTHORIZED DEPOSIT OF NET PAYCHECKS, PENSION CHECKS, AND FEDERAL RECURRING PAYMENTS If I have arranged to have preauthorized electronic deposits of my net paycheck, pension checks or federal recurring payments (for example, Social Security payments), the following information applies to me: Account Access: Preauthorized deposits may be made to my savings, money market, or checking account(s). Notification of Preauthorized Deposits: If I have arranged with a third party (for example, the Social Security Administration) to make preauthorized deposits to my account at least once every sixty (60) days, that third party making preauthorized deposits may have agreed to notify me every time the party sends you money to deposit to my account. To find out whether or not the deposit has been made, or if I have not made such an arrangement and have received a deposit, I will call your Contact Center at 800.XFCU.222 ( ) or, if I am outside the U.S., at Deposits to Deceased Members Accounts: The right to receive recurring direct deposits made to my account (such as Social Security deposits) ceases after death. When the source of the deposit is unaware of my death or the death of another account owner, deposits may continue. The depositor, usually a government agency, may then demand the return of any sums deposited during the month of and after death, including deposits that the deceased may have been receiving. You may honor the demand of the depositor agency and may debit my account for all amounts returned to the depositor. If the transaction creates an overdraft, the remaining account owners and/or my estate will be required to repay you for funds returned to the depositor. Documentation of Preauthorized Deposits: I will receive a monthly account statement for each month in which a preauthorized deposit is made, but at least quarterly if no preauthorized deposits are made. However, if the only electronic service I have with you is preauthorized deposits, then you reserve the right to send me a quarterly statement only

68 PREAUTHORIZED WITHDRAWAL TRANSACTIONS AND PAYMENT SERVICES If I have requested a preauthorized payment from my account with you (for example, preauthorized payments of insurance premiums), the following information applies to me: Initial Authorization: I can get copies of the preauthorized payment documentation from the third party being paid at the time I give the third party the initial authorization. Account Access: Preauthorized payments may be made from my checking, savings, and money market accounts. Notice of Varying Amounts: If my preauthorized payment varies in amount, the party who will receive the payment is required to tell me ten (10) days before each payment when it will be made and how much it will be. I may agree with the person being paid to receive this notice only when the payment will differ by more than a certain amount from the previous payment or when the amount would fall outside certain limits that I set. I may pay bills directly from my checking account in the amounts and on the days I request. I can authorize a merchant to convert my check to an electronic funds transfer, initiating a debit to my checking account for the amount of the purchase. I can also authorize a merchant or other payee to debit my checking account for returned check fees. You are not obligated to initiate any electronic payment when my checking account has insufficient funds to make the payment on the date the payment is scheduled to be made. The payment amount will be deducted from my checking account on the payment date. Unauthorized Transfers Consumer Liability: I may authorize a merchant or other payee to make a one-time electronic payment from my checking account using information from my check. If I believe that an electronic funds transfer has been made without my permission using information from my check or draft, I will let you know at once. Contacting you in a timely manner will help reduce my liability. I will contact you in one of the ways listed in the How to Contact You section. I may also be required to complete a form for ACH disputed transactions and supply it to you within ten (10) business days from the day I notify you. Right to Stop Preauthorized Payment: If I want to stop any of the preauthorized payments, I will contact you in one of the ways listed under the How to Contact You section above in time for you to receive my stop request three (3) business days or more before the payment is scheduled to be made. If I call, you may also require me to put my request in writing and supply it to you within fourteen (14) days. You will charge me a fee for each stop payment order I request as disclosed in your Services and Schedule of Fees. Such stop payment notice will apply only to that particular payment. To be sure that a third party does not bill me again for the stopped payment or to cancel the 12 entire preauthorized payment arrangement, I must promptly contact the third party. Your Liability for Failure to Stop Payment: If I order you to stop one of my preauthorized payments three (3) business days or more before the transfer is scheduled and you do not do so, you will be liable for my losses or damages, to the extent required by law. Liability for Unauthorized Electronic Payments: I will be liable for unauthorized transfers made from my account by a third party. If I believe an unauthorized transfer has occurred, I must follow the procedures outlined in the Errors and Omissions section for resolving errors. ELECTRONIC CHECK TRANSACTIONS If funds from my account have been transferred via ACH as an electronic check transaction, the following applies to me: Types of Available Transactions: I may make transfers via ACH where I have provided a paper check to enable the merchant or other payee to capture the routing, account, and serial numbers to initiate the transfer, whether the check is blank, partially completed, or fully completed and signed; whether the check is presented at POS or is mailed to a merchant or other payee or lockbox and later converted to an EFT; or whether the check is retained by the consumer, the merchant or other payee, or the payee s financial institution (an electronic check transaction ). I understand that a merchant or other payee may debit my checking account for returned check fees. Account Access: Electronic check transactions may be made from my checking account or any other account with checkclearing privileges. Limitations on Dollar Amounts of Transactions: Electronic check transactions may be made only to the extent that I have available funds in my checking accounts or in my available overdraft sources. ATM AND POINT-OF-SALE ELECTRONIC FUNDS TRANSACTIONS Both the ATM card and Visa Check Card are referred to as the card in this section unless specifically described. Ownership of Card: The card (whether used at POS terminals or ATMs) remains your property, and I agree to surrender the card to you upon demand. You may cancel, modify, or restrict the use of any card upon proper notice or without notice if any of my accounts are overdrawn, if any of my loan accounts are delinquent, if an advance drawn on any loan exceeds my credit limit, if I use my card in a manner that may cause loss to you, or if you are aware that I have violated any terms of your agreements and disclosures, whether or not you suffer a loss, or where necessary to maintain or restore the security of my account(s) or the ATM system. Account Ownership for Minors: I understand that the card may be issued to minors as long as there is an adult joint owner 13

69 (parent or guardian) or authorized signer on the account and written permission from the joint owner or authorized signer has been provided to you. Card Issuance: Notwithstanding any provision to the contrary herein, I may only request you to issue one card and one corresponding personal identification number (PIN) for each owner or authorized signer on my account. I understand in the event that I only have a Savings account with you, I am only eligible for an ATM card and not a Visa Check Card. If I have been issued an additional card for a joint owner or authorized signer on my account, any transaction fees outlined in your Services and Schedule of Fees that apply will be based upon transactions conducted by all owners and signers on the account. Withdrawals from more than one account or additional withdrawals from the same account during a single access will be counted as separate transactions. Activation and Use of Your Card: The activation of my ATM card shall be through PIN usage. The activation of my Visa Check Card shall be through telephone activation. I agree that all transactions made with my authorized PIN or signature utilization are made by me, and I accept all financial liability for such transactions. I also agree to sign my signature in the space provided on my card for additional security and protection. I agree to keep my PIN protected as described hereunder. If I believe an unauthorized transaction has occurred, I must follow the procedures outlined in the Errors and Omissions section for resolving errors. Right to Receive Documentation: If I choose to, I will receive a receipt when I use an ATM, point-of-sale, or other debit transaction service identified in this disclosure. I should retain this receipt to compare with my statement from you. I will receive a monthly statement (unless there are no transfers in a particular month) for the account(s) that I have with you. Restricted Transactions: My card and/or account(s) may not be used for any illegal activity or transactions. Further, I may not utilize my card and/or account for purchase of any goods or services on the Internet that involves gambling of any sort. Such transactions include, but may not be limited to, any quasi-cash or online gambling transaction, any electronic commerce transaction conducted over an open network, and any betting transaction including the purchase of lottery tickets or casino gaming chips or off-track betting or wagering. However, in the event that a transaction described in this paragraph is approved and processed, I will still be responsible for such charges. Transaction Fees: Fees will be charged to my account within two (2) days from the day they are incurred. The fee as disclosed in your current Services and Schedule of Fees or through any other means permitted by law, will not be recorded on the transaction acknowledgment/receipt produced by the ATM, but it will be itemized on my monthly statement. I may be subject to additional fee(s) imposed by another financial institution or a merchant when performing ATM and/or point-of-sale 14 transactions. This practice is known as surcharging and is in addition to any ATM fees charged by you. Foreign Transactions and Charges: If a transaction is made at a merchant or ATM that uses a currency other than U.S. dollars, Visa International Incorporated may convert the charge into a U.S. dollar amount ( multi-currency transaction ). Visa will use the government-mandated conversion rate in U.S. dollars or a wholesale currency market rate based on the transaction processing date. The currency conversion rate used by Visa on the processing date may differ from the rate that would have been used on the transaction date or the cardholder statement posting date. You have no control over the conversion rate. The merchant outside the United States may convert the currency and settle the Visa Check Card transaction in U.S. dollars ( single-currency transaction ). In this case, the currency conversion rate will be determined by the merchant involved in the transaction. An international transaction is a transaction where the merchant s country is not the U.S.A. Transactions over the Internet could qualify as an international transaction. A separate Visa International Service Assessment (ISA) fee will be charged for each foreign multi-currency transaction and single-currency transaction based upon the transaction amount. The ISA fee is charged directly to me as the cardholder and will appear on my statement as an additional charge as referred to in your Services and Schedule of Fees. Offline Activity: Special processing requirements, such as emergencies or telecommunications problems, may from time to time make it necessary for the ATM system or Visa system during scheduled hours to be temporarily out of service or to operate in an offline mode. During offline operation, withdrawals from a checking or savings account are limited and account inquiries are not available. Card and PIN Safety Precautions: Both a card and a PIN maybe used each time I use an ATM or POS terminal. The following conditions must be observed for both the privacy and protection of my account and the system(s): I. I must keep my card in a safe place and permit no other person to use it. 2. I must not disclose my PIN or access code to any other person or write it on my card, carry it in my wallet or purse, or otherwise make it available to anyone else. 3. I will immediately report to you any loss or theft of my card and/or PIN. If I authorize you to issue a card (or any other access device) to anyone else, I authorize that individual to withdraw funds from my account(s) that can be accessed by the card regardless of whether that individual is authorized to withdraw money from the account by any means other than by use of the card. Safety Tips for Using an ATM or POS Terminal: When using my card, I will observe the following precautions: 15

70 1. Be aware of my surroundings, particularly at night. 2. Consider having someone accompany me when using the ATM or POS terminal after dark. 3. Shield the terminal PIN pad when entering information to avoid having a PIN compromised. 4. Put away cash as soon as the transaction is completed, not display it, and not count the cash until later in the safety of my vehicle or home. 5. If I do notice anything suspicious when approaching the ATM, I will defer the transaction until later or use another ATM or POS terminal. 6. If I notice anything suspicious while transacting business, I will immediately cancel the transaction and put away my card. 7. Immediately report all crimes to the ATM or POS terminal operator and local law enforcement officials. My PIN: I agree to memorize my PIN and will not write it on the card. After memorizing it, I should destroy the PIN notation. Then I can be assured that no one other than me will use the card. If I forget the number, I may come to one of your Financial Centers and select a new PIN, provided I present adequate identification. Using ATMs: I agree to follow the instructions posted or otherwise given by you or the network ATM system concerning the use of the ATMs. ATM ELECTRONIC FUNDS TRANSACTIONS Both the ATM Card and Visa Check Card are referred to as the card in this section unless specifically described. If I have requested you to issue me a card and I have selected a PIN that can be used to transact business at any of your ATMs, or at any ATM displaying the logo of the ATM networks listed below, hereinafter referred to as network ATMs, or at POS network terminals, then the following information applies to me: Account Access: The following transactions are available when using the card and PIN at your ATMs or designated network ATMs such as CO-OP ATMs: Deposits, withdrawals, transfers, or balance inquires to my savings and checking account(s). All such transactions will access my savings and/or checking account(s) where I am an owner unless otherwise designated. The following transactions are available when using the card at PLUS Network,CU24, and Allpoint ATMs: Withdrawals, balance inquires, or transfers from my savings and checking account(s). All such transactions will access my primary account(s) unless otherwise designated. You may offer additional services in the future and, if so, you will notify me of them. Note: Transactions at a shared network system terminal may be 16 subject to a network transaction fee and/or a terminal use fee charged by the operator of the terminal. Cash withdrawals may be made at any ATM identified as part of the ATM network. When I use an ATM not owned by you, I may be charged a fee by the ATM operator or any network used, and I may be charged a fee for a balance inquiry even if I do not complete a fund transfer. Limitations on Frequency and Dollar Amounts of Transactions: Provided I have enough money in my savings/ checking account(s), I may withdraw up to a maximum of $500 during any day, including Saturday and Sunday, when using an ATM. However, the amount that I may withdraw daily or in any single use of the ATM may be different at network ATMs, where limits are determined by each individual participating financial institution. For security reasons, in the event my card or PIN is lost or stolen, you may restrict the transactions I can make on the ATM system. The limitations on dollar amounts of transactions apply in aggregate to card transactions on all of my accounts. POINT-OF-SALE ELECTRONIC FUNDS TRANSACTIONS Both the ATM Card and Visa Check Card are referred to as the card in this section unless specifically described. Types of Available Transactions and Limits on Transactions: By use of my ATM Card or Visa Check Card with my PIN or signature at a participating POS terminal, I authorize you to make withdrawals from my checking or savings accounts for cash advances and/or purchases. I understand that overdraft protection may not be available for such transactions for funds availability or authorization purposes. Account Access: I may use my card to withdraw cash from my checking or savings account(s) by way of a cash advance from merchants, financial institutions, or others who honor the card. I understand that my card is not a credit card and does not provide credit. I understand in the event that I only have a Savings account with you, I am only eligible for an ATM card and not a Visa Check Card. Limitations on Visa Check Card Transactions: Visa Check Cards may be used to access my checking accounts from any merchant location where the Visa logo is displayed and Visa Check Cards are accepted. The merchant may be required to obtain an authorization from you. The available balance in my account will be reduced by the amount of any transaction for which the merchant receives authorization from you, even if the documentation evidencing the transaction has not yet been received or processed by you. When the document has cleared through you, any hold placed on my account for the amount of the transaction will be released and my account will be debited for the amount of the transaction. Hold on Funds: I understand that transactions initiated by use of my Visa Check Card will create an automatic hold on funds equal to the transaction amount or may result in immediate withdrawals from my checking account or other 17

71 linked account(s) depending on the nature of the particular transaction. If I do not have adequate funds or amounts in my primary or linked account(s), my transaction may be denied. Limitations on Frequency and Dollar Amounts of Visa Check Card Transactions: I understand that the Visa Check Card has a cumulative daily transaction limit of $1,700 within which the following limits also apply: (1) $500 daily limit on cash withdrawals at an ATM, and (2) $1,200 daily limit on POS transactions using a PIN or a signature-based transaction. I understand that both ATM and POS transactions (using a PIN or a signature) are counted in the $1,700 daily limit. When used as a debit card, I may make cash advances and purchases using my Visa Check Card only to the extent that I have available funds in my account(s) plus available funds in my overdraft line of credit, subject to a $1,200 per day limitation. When used as an ATM card, I may make cash withdrawals from ATM machines using my Visa Check Card only to the extent that I have available funds in my account(s), plus available funds in my overdraft line of credit may also be considered subject to the $500 per day limitation disclosed above. The limitations on dollar amounts of transactions apply in aggregate to card transactions on all of my accounts. Card Claims and Transaction Questions: When I authorize other parties to debit my account, I am responsible for these transactions. Thus, I may have to contact these parties directly if I have questions or complaints about my transactions. Any claims concerning property or services purchased with my card must be resolved by me directly with the merchant or seller who accepted the card. I understand you will not be able to help me because you only have the information received from the other party. Any claim or defense that I assert will not relieve me of my obligation to pay you the total amount of the sales slip. I am not permitted to stop payment on any purchase made through the use of my card. Visa Check Card Purchase Returns and Adjustments: No cash refunds will be made to me on purchases made with my Visa Check Card. Any refund to me by a merchant or seller of goods or services must be made on a credit voucher signed by me and submitted to you by the merchant or seller. The amount of my credit will be indicated on my statement. Transaction Fees: You do not charge any transaction fees on my point-of-sale transactions at this time. However, I understand that other merchants and institutions may charge such transaction fees. This fee will be included in the amount of the transaction as it appears on my periodic statement. You may charge transaction fees in the future upon written notice at least twenty-one (21) days in advance, or as otherwise provided by law. XCEED ON-CALL ELECTRONIC TELEPHONE BANKING Types of Transactions: I may have access to the Xceed On- Call audio response electronic telephone banking service and be provided with a PIN for access through a touchtone phone 18 to Xceed On-Call. I may change my PIN at any time and should do so if an unauthorized person has access to my current PIN. Account Access: I may use my Xceed On-Call PIN to access my share account(s) and loan(s). Using my Xceed On-Call PIN, I may: 1. Make inquiries on account balances and loan payment data. 2. Request withdrawals from my share accounts by check with the primary owner as payee and mailed to the primary owner s mailing address on record. 3. Request advances from my applicable line of credit loan(s) to be deposited into one of my share accounts for immediate use and/or further arrange for a withdrawal by check from the share account to be sent to the primary owner as a payee and mailed to the primary owner s mailing address of record. 4. Request transfers to and from savings, money market, checking accounts, and/or loans. 5. Make transfers from my account to other authorized accounts. 6. Request transfers from share accounts to make loan or other payments. 7. Inquire about paid checks. 8. Inquire on prior and current year s dividends. 9. Place stop payments on my personal checks. 10. Opt in and out of Courtesy Pay. 11. Make payments via Pay-By-Phone service to my Xceed consumer loan from a non-xceed account. Limitations: 1. Account transfers are limited to the available funds in my share account(s), or from my applicable line of credit loan(s), excluding any balances usually available to me for overdraft purposes. 2. For security reasons, in the event my Xceed On-Call PIN is lost, compromised, or stolen, you may restrict transactions I can make on Xceed On-Call. 3. Check withdrawals requested on regular business days will be mailed on the next business day and must be made payable to the primary owner and mailed to the primary owner s mailing address of record. 4. Check withdrawal requests are limited to one check withdrawal transaction per day. Multiple check withdrawals requested in a day will be combined, and one single check will be sent for the total amount requested. The minimum withdrawal limit is $1, and the maximum daily withdrawal limit is $9, These limits may change from time to time. 5. loan payment processing from an Xceed share account is only available for exact dollar amount of payments currently due. For principal-only payments, interest-only 19

72 payments, prepayments, and other types of payments, I will contact you in one of the ways listed under the How to Contact You section above. 6. Information about my safe deposit box or credit card accounts are not available on Xceed On-Call. 7. Pay-by-Phone requests are limited to one payment per telephone call. The minimum payment limit is $1, and the maximum payment limit is $5,000. These limits may change from time to time. Payments will be posted on my loan account within 2 business days, if performed before the cutoff time of 8:00 p.m. Central Time (6:00 p.m. Pacific Standard Time). I understand and agree that I will be charged a convenience fee according to the terms and conditions disclosed to me during the telephone call. The loan must be in good standing. PIN Safety Precautions: For use of my Xceed On-Call PIN, I must observe the following conditions for both the privacy and protection of my account and the system(s): 1. I must keep my PIN in a safe place and permit no unauthorized person to use it. 2. I must not disclose my PIN or access code to any unauthorized person, carry it in my wallet or purse, or otherwise make it available to anyone else. 3. I will immediately report to you any loss or theft of my PIN. If I authorize you to issue a PIN (or any other access device) to anyone else, I authorize that individual to withdraw funds from my account(s) that can be accessed by the card, regardless of whether that individual is authorized to withdraw money from the account by any means other than by use of the PIN. 4. I understand it is recommended to change my password from the system default password after the initial enrollment to provide the best possible protection for my account. XCEED ONLINE BANKING Types of Transactions: I may have access to the Xceed Online Banking service and be provided with a password or access code to Xceed Online. Account Access: I may use my Xceed Online Banking service once I have enrolled for the service on your website and can perform the following transactions on my share account(s) and loan(s), as applicable: 1. Make inquiries on account balances and loan payment data. 2. Request withdrawals and/or payment from my checking account via your Bill Payer program. 3. Request advances from my applicable line of credit loan(s) to be deposited into one of my share accounts for immediate use. 4. Request transfers to and from savings, money market, checking accounts, and/or applicable loans. 5. Request transfers from share accounts to make regular payments and/or principal-only loan payments. 6. Inquire about paid checks. 7. Set-up Alerts and Mobile Text Services. 8. Request withdrawals from my share accounts by check with the primary owner as payee and mailed to the primary owner s mailing address on record. 9. Request transfers from my share accounts to share accounts in another Xceed member s name via Cross-Member Transfer by contacting you in one of the ways listed under the How to Contact You section above to setup Cross- Member transfer. Limitations: 1. Account withdrawals and transfers are limited to the available funds in my share account(s), or from my applicable line of credit loan(s). 2. For security reasons, in the event my Xceed Online password or access code is lost, compromised, or stolen, you may restrict transactions I can make on Xceed Online. 3. Regular loan payment processing is only available for exact dollar amount of payments currently due. For interest-only payments, prepayments, and other types of payments, I will contact you in one of the ways listed under the How to Contact You section above. 4. I understand I will be unable to see information about my safe deposit box on Xceed Online. Password Safety Precautions: For use of my Xceed Online password or access code, I must observe the following conditions for both the privacy and protection of my account and the system(s): 1. I must not disclose my password or access code to any other person, or carry it in my wallet or purse, or otherwise make it available to anyone else. 2. I will immediately report to you any loss, compromise, or theft of password or access code. 3. I may change my password or access code at any time and should do so if an unauthorized person has access to my current password or access code. Note: Additional provisions are outlined in the Xceed Online Service Agreement, which can be found online at MOBILE BANKING To provide me with alternative account access options, you offer mobile banking via web-enabled cell phones or other electronic devices. To use mobile banking, I must first be enrolled in Xceed Online. I agree that if I access Xceed Online through mobile banking, I will be bound to the terms of the Xceed Online 20 21

73 Service Agreement, which can be found online at You do not charge a fee for mobile banking. However, I understand that I may incur fees from my mobile carrier as detailed in my carrier s mobile plan. Although you are fully committed to keeping my information private and secure, I am solely responsible for the security of my mobile device. Information such as account balances and account activity may be viewed by someone with access to my phone. If I lose my phone, my phone is stolen, or I notice that unauthorized activity has occurred on my account, I will contact you immediately. It is my responsibility to reconcile my account(s), and I will not rely on mobile banking as a tool to replace my monthly account statements official records of my accounts. Note: Additional provisions are outlined in the Xceed Online Service Agreement, which can be found online at ALERTS BY PHONE, , AND MOBILE TEXT You may offer, at your discretion, certain account and servicerelated notifications, messages, and alerts (collectively alerts ) through , phone, and/or mobile text messaging services (collectively these services ). I agree that the following terms and conditions apply to these services: You may send alerts through my communication service provider in order to deliver them to me. My communication service provider will be acting as my agent in this capacity. Unless otherwise specified, you may use any telephone number or address you have in your records for me, and/or any other contact information I may provide to you for these services, in order to send me certain information about my account and services. I will indemnify, defend and hold you harmless from and against any and all claims, losses, liability, cost and expenses (including reasonable attorneys fees) arising from my provision of a phone number, address, or other delivery location that is not my own or my violation of applicable federal, state or local law, regulation or ordinance. My obligation under this paragraph shall survive termination of this Agreement. These services will be provided for my convenience and do not replace my monthly account statement(s), which is the official record of my accounts, and certain conditions may apply. These services may not be encrypted and may include personal or confidential information about me, such as my account activity or status. For phone Alerts, information may be delivered to voic or answering machines if nobody answers the phone. Alerts may be delayed or impacted by factor(s) pertaining to my Internet service provider(s), phone carriers, or other parties. You will not be liable for losses or damages arising from any disclosure of account information to third parties, nondelivery, delayed or misdirected delivery, or mishandling of, or inaccurate content in, the alerts sent through these services. If I have other types of accounts with you, these services may give me access to information on those other accounts as well. Although you charge no fees for these services, I will be responsible for any and all charges, including, but not limited to, fees associated with text messaging imposed by my communications service provider. Message and data rates may apply. Such charges include those from your communications service provider. Different options may be offered to me for the cancellation of these services. For example, I may cancel the Text Services at any time by texting STOP in reply to any alert texted to me. Note: I understand and agree that these services are offered separately and are independent from the Alerts and Mobile Text Services offered by you through Xceed Online. Terms and conditions applicable to the Alerts and Mobile Text Services are outlined in the Xceed Online Service Agreement, which can be found at SHARED-BRANCH TRANSACTIONS The following transactions are available at Credit Union Service Centers Network shared-branch locations: 1. Deposits, withdrawals, transfers, or balance inquires from my savings, checking, and money market account(s). 2. Loan payments to loan(s) with you. All such transactions shall access my share accounts and loans unless otherwise designated

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75 Rev. January 2016 FACTS Why? What? How? WHAT DOES XCEED FINANCIAL FEDERAL CREDIT UNION DO WITH YOUR PERSONAL INFORMATION? Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. The types of personal information we collect and share depend on the product or service you have with us. This information can include: Social Security number and income. Account balances and transaction history. Credit history and payment history. When you are no longer our customer, we continue to share your information as described in this notice. All financial companies need to share customers personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers personal information, the reasons Xceed Financial Federal Credit Union chooses to share, and whether you can limit this sharing. Reasons we can share your personal information For our everyday business purposes such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus Does Xceed Financial share? Yes Can you limit this sharing? No For our marketing purposes to offer our products and services to you Yes No For joint marketing with other financial companies Yes No For our affiliates everyday business purposes information about your transactions and experiences For our affiliates everyday business purposes information about your creditworthiness Yes Yes No Yes For our affiliates to market to you Yes Yes For nonaffiliates to market to you No We don t share To limit our sharing To limit direct marketing contact Call Our menu will prompt you through your choices. Talk to a Financial Center associate. Talk to your assigned account Representative (e.g., financial advisor, mortgage loan officer). Mail in the attached form to: Xceed Financial Credit Union Attn: Operations 888 N. Nash St El Segundo, CA Please note: If you are a new customer, we can begin sharing your information 45 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However you can contact us at anytime to limit our sharing. Call Our menu will prompt you through your choices. Talk to a Financial Center associate. Talk to your assigned account Representative (e.g., financial advisor, mortgage loan officer). Please note: Direct marketing is , postal mail and telephone marketing. Your telephone and postal mail opt-out choices will last for five years, subject to applicable law. Even if you limit direct marketing, we may still contact you to service your account or as otherwise allowed by law. Questions? Call 800.XFCU.222 ( ) or go to xfcu.org Mail-in Form Mark any/all you want to limit. Do not share information about my creditworthiness with your affiliates for their everyday business purposes. Do not allow your affilliates to use my personal information to market to me. Name Mail to: Address Xceed Financial Credit Union Attn: Operations 888 N. Nash St. City, State, Zip El Segundo, CA Account # /16 Federal All States

76 Page 2 Who we are Who is providing this notice? Xceed Financial Federal Credit Union ( Xceed Financial ) What we do How does Xceed Financial protect my personal information? How does Xceed Financial collect my personal information? Why can t I limit all sharing? To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We also restrict access to those employees who need to know your information and require companies that work for us to protect such information. We collect your personal information, for example, when you: Open an account or make deposits or withdrawals from your account. Pay your bills or apply for a loan. Use your credit or debit card. We also collect your personal information from others, such as credit bureaus, affiliates, or other companies. Federal law gives you the right to limit only: Sharing for affiliates everyday business purposes information about your creditworthiness. Affiliates from using your information to market to you. Sharing for nonaffiliates to market to you. State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. Definitions Affiliates Nonaffiliates Joint marketing Companies related by common ownership or control. They can be financial and nonfinancial companies. Our affiliates include Global Enterprise Resource Group, LLC.. Companies not related by common ownership or control. They can be financial and nonfinancial companies. Xceed Financial does not share your personal information with nonaffiliates so that they can market to you. A formal agreement between nonaffiliated financial companies that together market financial products or services to you. Our joint marketing partners include insurance companies. Other important information For Illinois, Maryland, Massachusetts, North Dakota and Vermont Residents Only. We will not share personal information with nonaffiliates either for them to market to you or for joint marketing without your authorization. Also, we will not share information about your creditworthiness with affiliates unless you agree to such sharing. Residents of these states do not have to contact us to implement these limits on our sharing. We may share information about your transactions and experiences with affiliates for their everyday business purposes and to market to you, but you can stop them from using the information in marketing by checking the box marked Do not allow your affiliates to use my personal information to market to me, on the Mail-in Form above. For California Residents Only. If you live in California, you will receive an additional notice that reflects your rights under California law. If you have a joint account with someone else or you are a co-borrower, your opt-out choice will be effective to both of you. Your opt-out will remain in effect until it is revoked by you.

77 xceed financial federal credit union EL SEGUNDO, CA NORTH NASH STREET ATTENTION: OPERATIONS XCEED FINANCIAL FEDERAL CREDIT UNION CALIFORNIA PRIVACY POLICY OPT-OUT REQUEST FORM For California Residents Only Postage required. Post office will not deliver without proper postage. 800.XFCU.222 XFCU.ORG

78 Your Rights Important Privacy Choices for Consumers As an Xceed Financial Federal Credit Union member, you have the right to control whether we share some of your personal information. Please read the following information carefully before you make your choices below. For California Residents Only You have the following rights to restrict the sharing of personal and financial information with outside companies with whom we do business. Nothing in this form prohibits the sharing of information necessary for us to follow the law, as permitted by law, or to provide you with the best service on your accounts with us. This includes sending you information about other products and services. Your Choices Restrict Information Sharing With Companies We Own or Control (Affiliates): Unless you say No, we may share personal and financial information about you with our affiliated companies. No, please do not share personal and financial information with your affiliated companies. Restrict Information Sharing with Other Companies We Do Business with to Provide Financial Products and Services: Unless you select No, we may share personal and financial information about you with outside companies with whom we have contracts to provide financial products and services to you. No, please do not share my personal and financial information with outside companies with whom you have contracts to provide financial products and services. Time-Sensitive Reply You may make your privacy choice at any time. Your choice marked here will remain on file unless you state otherwise. However, if we do not hear from you, we may share some of your information with other companies with whom we have contracts to provide products and services. No action is required if you ve already provided us with your choice. To exercise your option, choose only one of the following: 1. Complete, sign, and mail this form to us folded and sealed on all three sides. Place a stamp where indicated. (You may want to make a copy for your records.) 2. Call this toll-free number: Send us a secure message through Xceed Online including your request, name and membership number(s). Print Name: Membership Number(s): Daytime Telephone #: ( ) Signature: 800.XFCU.222 XFCU.ORG /16 CA only

79 xceed financial federal credit union What You Need to Know about Overdrafts and Overdraft Fees An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways: 1. We have standard overdraft practices that come with your checking account, called Overdraft Privilege. 2. We also offer overdraft protection plans, such as a link to a savings and/or money market account or to an approved line of credit, which may be less expensive than our standard overdraft practices. To learn more, ask us about these plans. This notice explains our standard overdraft practices. > What are the standard overdraft practices that come with my account? We do authorize and pay overdrafts for the following types of transactions: Checks and other transactions made using your checking account number(s) Automatic bill payments We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below): ATM transactions Everyday debit card transactions We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined. > What fees will I be charged if Xceed Financial Federal Credit Union pays my overdraft? Under our standard overdraft practices: We will charge you a fee of up to $34 each time we pay an overdraft. There is no limit on the total fees we can charge you for overdrawing your account. > What if I want Xceed Financial Federal Credit Union to authorize and pay overdrafts on my ATM and everyday debit card transactions? If you also want us to authorize and pay overdrafts on ATM and everyday debit card transactions, call us toll-free at 800.XFCU.222 ( ), visit xfcu.org/overdraftprivilege, or complete the form below and present it to your local Xceed Financial Center or mail it to: Xceed Financial Federal Credit Union, Attn: Retail Operations, 888 N. Nash Street, El Segundo, CA You can revoke your authorization for Xceed Financial Federal Credit Union to pay these overdrafts by calling us toll free at , visiting xfcu.org/overdraftprivilege, completing a revocation request at your local Xceed Financial Center or mailing your revocation request to: Xceed Financial Federal Credit Union, Attn: Retail Operations, 888 N. Nash Street, El Segundo, CA Your revocation request must include both your name and account number so that we can properly identify your account. I want Xceed Financial Federal Credit Union to authorize and pay overdrafts on my ATM and everyday debit card transactions. Cut here Printed Name Date Checking Account Number(s) Telephone Number ( ) 800.XFCU.222 xfcu.org /15 Effective 2/16

80 WHAT ELSE YOU SHOULD KNOW 1. The best way to avoid overdrafts and fees is to keep track of your account balance and the items that may be added to or withdrawn from your account balance. Such items can include checks, ACH transactions, ATM transactions, debit card transactions, in-branch transactions, fees, charges, and other amounts that can add to or reduce your account balance. It is your responsibility to keep track of your account balance, including the available balance and ledger balance, to ensure that you have sufficient funds available for transactions on your account without overdrawing your account and incurring fees. To avoid fees, we encourage you to keep track of your account balance by entering all items in your check register, reconciling your checkbook regularly, and managing your finances responsibly. However, when tracking your account balance using your check register, you should also keep in mind that your transactions may not post to your account in the order that you approved or initiated the transactions. As a result, you should track all the transactions and authorization holds that may be applied against your account balance to ensure you avoid overdrawing your account. If you have concerns that you may overdraw your account, please contact us at 800.XFCU.222 ( ) or at an Xceed Financial Center to discuss less costly ways to cover your transactions, such as overdraft protection, as previously mentioned in this brochure. In addition to using your check register, Xceed Online, Xceed Mobile Banking, Xceed On-Call, and Xceed Account Alerts are some of the tools available to help you stay on top of your spending and account balance. Please note that the balance displayed when using these tools may show either your available balance or ledger balance, or both. It is important that you understand the difference between the available balance and ledger balance. Available balance is the most current record we have about the funds available for withdrawal from your account (but does not include certain pending transactions such as outstanding checks, automatic bill payments that you have authorized, or other outstanding transactions that have been authorized but not yet paid from your account). For example, outstanding checks you wrote will not be reflected in your available balance until they are presented to us and paid from your account. Also, your available balance may not reflect all of your debit card transactions. To provide another example of how your available balance is affected by your transactions, if a merchant obtains our prior authorization for a one-time transaction you initiate using your debit card, we generally will place a temporary authorization hold on funds in your account in an amount that may differ from the actual transaction amount. If the merchant does not submit the one-time debit card transaction for payment in a timely manner, we will release the authorization hold on the transaction in accordance with payment system requirements. After the hold is released, the available balance will not reflect this pending item, unless the merchant s transaction is subsequently received by us, in which case we are legally obligated to pay the transaction from your account at such time. We provide further details regarding authorization holds below. In addition to the effect of checks you write and your debit card transactions, your available balance may not reflect the most recent deposits to your account. For details on the availability of funds for withdrawal from deposits made to your account, refer to Xceed Financial s Funds Availability Policy. Ledger balance is simply the current posted balance in your account, and such ledger balance includes credits/deposits and debits/ withdrawals posted to your account. Your ledger balance does not include pending transactions and may include deposits that are not yet available for withdrawal. Xceed Financial monthly statements display your ledger balance while Xceed Online, Xceed Mobile Banking, Xceed On-Call, Xceed Account Alerts, and ATMs display both your available and ledger balance. For a variety of reasons, neither your available balance nor your ledger balance may represent the funds in your account that will be available to cover a particular transaction at the time you enter into it (such as delivering a check to a merchant) and/or the time of its posting, depending on a number of factors, including, without limitation, how and when the item for such a transaction is presented to us. The responsibility for ensuring that a transaction will not overdraw your account is yours. You should ensure that you keep track of items on your account, and your available balance, to ensure that you avoid overdrawing your account, returned items, and/or fees. Keeping track of your available balance is particularly important because we use the available balance to determine whether there are sufficient funds in your account to cover items posted to your account. If the available balance is insufficient to cover a particular item at the time it posts to your account and payment of such item results in your account being overdrawn, you could incur a fee if we pay the item at our discretion. Your account is considered overdrawn if payment of a particular item posted to your account results in a negative (less than $0) available balance or if payment of the item results in a further negative balance on the account. You understand that you may still overdraw your account even though the available balance appears to show there are sufficient funds to cover a transaction that you initiate or approve because of pending transactions and account or authorization holds. 2. An insufficient available balance can result from several events, such as (a) the payment of checks, electronic funds transfers, or other withdrawal requests; (b) payments authorized by you; (c) the return of unpaid items deposited by you; (d) Xceed Financial fees and service charges; (e) the deposit of items that according to Xceed Financial s Funds Availability Policy are treated as not yet available or finally paid; and (f) a merchant authorization request resulting in an authorization hold that reduces your available balance. We are not obligated to pay any item presented for payment if your account does not contain sufficient available funds (including the Overdraft Privilege Limit) to cover the item(s) and the amount of any fee(s), with the exception of circumstances mentioned in this brochure. 3. Xceed Financial receives different types of transactions and authorizations in many different forms throughout each business day. We reserve the right to determine the timing and order in which such transactions are posted, paid, authorized, declined or returned to your account to the extent permitted by law. We determine the timing and order in which we process and post deposits, other credits, debits and checks, and other items to your account based on a number of factors. When the available balance in your account is not sufficient to cover all of the items presented, some processing and posting orders can result in more returned items and more overdraft and returned item fees than other orders do. We may choose our processing and posting orders to the extent permitted by law regardless of whether additional fees result. Some items are received by us individually and others are received in batches throughout each business day. In general, we post items to your account, subject to holds and our Funds Availability Policy, in the following order: (i) ACH deposits and withdrawals are received in separate batches, with deposits posting before withdrawals, by 9 a.m. Eastern Time of each business day; (ii) deposits and withdrawals made at Xceed Financial Centers and Share Branch locations are posted in real-time and deposits received at Xceed Financial s designated lockbox are posted in the afternoon of each business day; (iii) check withdrawals (inclearing checks) are received in batches and are posted by batch file number order ascending after lockbox deposits are processed in the afternoon of each business day; (iv) ATM deposits and withdrawals are posted in real-time; (v) merchant debit card transactions are posted in real-time; (vi) Online Banking internal transfers (transfers between Xceed Financial accounts) are posted in real-time; (vii) internal payroll processing deposits are posted by 3:30 p.m. Eastern Time of each business day; (viii) deposits through our Remote Deposit Capture Service are posted in batches by 4 p.m. Eastern Time of each business day; (ix) Credit Union fees can be posted at varying times; and (x) scheduled Xceed Financial preauthorized transfers, such as but not limited to, dividend transfers, scheduled internal transfers between Xceed Financial accounts, are posted in batches after the end of each business day. You understand that there are instances when transactions and posting times will not occur as listed above due to rejected items, exceptions items, off-line/stand-in status, etc. You understand that the foregoing information is not intended to be exhaustive, but is only a general explanation of how we post items to your account. We reserve the right to: (a) establish different categories of items; (b) establish a posting order for each category of item(s); (c) establish different posting orders for items within each category; (d) change the timing of when items are posted during the day and whether they are posted individually or in batches; and (e) move transaction types among categories. Except to the extent limited by regulatory and judicial authorities, we have the right to change any of the factors described in (a), (b), (c), (d) and (e) listed in this section at any time without notice to you. You agree that, to the extent permitted by law, we may determine in our discretion the timing of posting items to your account, the categories used by us to post items to your account, the transactions within each category, the order among categories, and the posting orders within a category. You agree that we may in our discretion make these changes at any time to the extent permitted by law without notice to you. You also understand and agree that we use certain third party service providers to assist in the posting of items to your account, and that such processors may change their processing and posting order with or without notice to us. You acknowledge that we are not responsible or liable in any way, to the maximum extent permitted under applicable law, for changes implemented by our third party service providers that affect the processing and posting of items to your account. Transactions may not be processed in the order in which they occurred, and the order in which Xceed Financial receives and processes transactions can affect the total number of overdraft or return fees you incur. If multiple items overdraw your account on the same day, each item will be assessed an applicable fee listed in the Services and Schedule of Fees. 4. All fees and charges will be included as part of the Overdraft Privilege Limit amount. You may become overdrawn in excess of the Overdraft Privilege Limit amount as a result of the assessment of a fee or other pending items. 5. Negative account balances due to reasons other than Overdraft Paid Items may also reduce the amount of the available Overdraft Privilege Limit. 6. As a courtesy, you will be notified by mail of any non-sufficient fund items paid or returned that you may have; however, we have no obligation to notify you before we pay or return any item. 7. You should make every attempt to bring your account to a positive end-of-day balance as soon as possible and must do so within 35 days of incurring an overdraft. Maintaining a negative account balance for a longer period may result in the closure of your account and reporting to consumer or business reporting agencies, as applicable. The total (negative) balance, including all fees and charges, is due and payable upon demand. Account owner(s) and each authorized signer(s) will continue to be liable, jointly and severally, for all such amounts, as described in the Xceed Financial Agreement and Disclosure, Truth-in-Savings Disclosure, and Services and Schedule of Fees. 8. One $34 Overdraft Privilege related fee per calendar quarter will be rebated no later than the third business day following the posting of such fee when during that same quarter an overdrawn paid item in the amount of $5 or less is posted. 9. As long as you maintain your membership in good standing and your account has a history of sufficient deposits, we may approve overdraft items on your checking account within your then-current available Overdraft Privilege Limit as a non-contractual courtesy. For Overdraft Privilege consideration, your membership may be in good standing if: (a) you make sufficient deposits to bring your account to a positive balance every 35 calendar days (including the payment of all Xceed Financial fees and charges); (b) you avoid excessive overdrafts suggesting the use of Overdraft Privilege as a continuing line of credit; (c) there is no history or evidence of a prolonged legal action such as a court order, levy, lien or administrative order against your account; (d) there are no delinquent loans with the membership; and (e) you are not in default in any obligation to us. Additional conditions may apply. Xceed Financial may refuse to pay an overdraft item at any time even though we may have previously paid overdrafts for you. 10. Although under payment system rules, Xceed Financial may be obligated to pay debit card and ATM transactions, Xceed Financial may, at its sole discretion, not authorize debit card or ATM transactions unless there are available funds (including Overdraft Privilege Limit) to cover the transactions and any fee(s). 11. Giving us your consent to pay everyday debit card and ATM overdrafts (Extended Overdraft Privilege) may cause you to incur overdraft fees for transactions that Xceed Financial would otherwise be required to pay without assessing an overdraft fee. However, by providing your consent for Extended Overdraft Privilege, it allows us to authorize transactions up to the amount of your Overdraft Privilege Limit, and may help you avoid overdrafts in excess of your available funds, that could result in the restriction of your debit card. 12. Xceed Financial may restrict your debit card use if you incur overdrafts in excess of the available funds in your account, including any Overdraft Privilege Limit. 13. When you make a purchase with your debit card, the merchant may seek our prior authorization for the transaction. We generally place a temporary hold against some or all of the funds in the account linked to your debit card if and when a merchant s authorization request is obtained. We refer to this temporary hold as an authorization hold, and the amount of the authorization hold will be subtracted from your available balance (generally in real time as they are received by us throughout each day). The amount of an authorization hold may differ (higher or lower) from the actual transaction amount or there may be no authorization hold, when, for example, the actual transaction amount is not yet known to the merchant at the time the authorization request is submitted after your debit card is swiped (such as a gas station purchase). This can happen at a restaurant or a gas station, where your debit card is swiped before your actual transaction amount is known, because you may choose to add a tip to a restaurant transaction or because the amount of gas you pump is unknown when your card is swiped. In some cases, we may not receive an authorization request from the merchant, and there will be no authorization hold reflected in your available balance. Xceed Financial may place an authorization hold on your account until the transaction settles, or the authorization hold time period has expired, or as permitted by payment system rules. The authorization hold time period under payment system rules is up to 3 (three) business days from the time of the authorization for most debit card transactions. If the transaction is not submitted by the merchant for payment in a timely manner, we may release the authorization hold, which will increase your balance until the transaction is submitted for payment by the merchant, in which case we are required under payment system rules to pay the transaction from your account. In this case, we will honor the prior authorization and pay the transaction from your account. You also understand that, in certain instances, when the amount of the authorization hold is either more or less than the amount of the actual transaction, we might maintain the authorization hold (up to the maximum time period permitted under payment system rules) even after the actual transaction is paid from the account, because our system might not match the actual transaction with the differing amount of the authorization hold. If this occurs, we will release the authorization hold by no later than the maximum time period permitted under payment system rules, which is generally 3 (three) business days from the time of authorization. We urge you to record and track all of your transactions closely to confirm that your available balance accurately reflects your spending of funds from the account linked to your debit card. 14. Overdraft Privilege is not viewed as an encouragement to overdraw your account nor a line of credit; it is a discretionary overdraft service that can be discontinued at any time without prior notice. 15. You can request to discontinue your Overdraft Privilege service in its entirety at any time by contacting us at 800.XFCU.222 ( ), completing and submitting the form at xfcu.org/overdraftprivilege, visiting your local Xceed Financial Center, or mailing your request to Xceed Financial Credit Union, Attn.: Retail Operations, 888 North Nash Street, El Segundo, CA Without Overdraft Privilege, your insufficient funds items will be returned to the payee and/or declined at the point of purchase, unless you have Overdraft Protection available to cover the item(s). You will be charged the standard return fee of $34 for each returned item. You are responsible for any overdrawn balances and preauthorized and in-process transactions at the time of discontinuation. 16. Your consent or your revocation of consent to Overdraft Privilege is not effective until Xceed Financial receives your request and has had a reasonable opportunity to act on it. Note: Overdraft Privilege is a non-contractual courtesy that is available to individually/jointly-owned accounts in good standing for personal, household, or business use. Xceed Financial Federal Credit Union ( Xceed Financial ) reserves the right to limit participation, make changes at any time, or discontinue this service without prior notice. If you have questions about Overdraft Protection or Overdraft Privilege, please call us at 800.XFCU.222. Overdraft Coverage Options Life Happens. Xceed Financial understands that unexpected overdrafts occur from time to time overdraft coverage can help. 800.XFCU.222 XFCU.ORG This credit union is federally insured by the National Credit Union Administration.

81 6013-ODP-02/16 We ve Got Your Back. Consider choosing one of the overdraft coverage options described in this brochure and avoid third-party fees, returned or rejected items, and possible damage to your credit history. Xceed Overdraft Coverage Overdraft Protection Overdraft Protection services apply to a variety of transactions by allowing you to link other sources, such as another account or line of credit at Xceed Financial to your checking account to pay for a transaction, fee or finance charge that would cause your account to be overdrawn. NOTE: Certain limitations apply. For example: you can only link like products, such as business checking accounts to business savings accounts, and consumer checking accounts to consumer savings accounts. Overdraft Privilege Overdraft Privilege allows you to overdraw your account for a fee in order to pay for a transaction. Xceed Financial may provide you a specific Overdraft Privilege limit depending on the type of account you have. For new eligible checking accounts, Overdraft Privilege is available the following business day once a total of $250 is deposited into the account. Even if you have Overdraft Protection, Overdraft Privilege is still available as secondary coverage if the other protection sources are exhausted. Please note that the Overdraft Privilege limit will not be included in your account balance, as shown through Xceed Online, Xceed On-Call, or Xceed Financial ATMs. SERVICE OPTIONS COST Overdraft Protection Overdraft Privilege Link to a savings and/or money market account you have at Xceed Financial Link to a line of credit you have at Xceed Financial 1 Standard Overdraft Privilege (Standard Coverage) Extended Overdraft Privilege (Extended Coverage) $5 fee per transfer 2 on consumer accounts. $10 fee per transfer 2 on business accounts $5 fee per transfer 2 plus any applicable finance charge and additional fees on consumer accounts. $10 fee per transfer 2 plus any applicable finance charge and additional fees on business accounts. $34 overdraft fee per item The Cost of Overdraft Privilege There is no additional cost associated with this service unless you use it. You will be charged a $34 Overdraft Privilege fee for each Overdrawn Paid Item created by check, ACH, ATM card, debit card, in-person withdrawals, or other electronic means. For example, three Overdrawn Paid Items in one day will result in three separate Overdraft Privilege fees. There is no limit on the amount of Overdraft Privilege fees that may be imposed on an account. Any fees you incur (for both paid and unpaid items) will be reflected on your monthly checking account statements, shown on Xceed Online and relayed on Xceed On-Call. The $34 Overdraft Privilege fee is the same amount that would be charged by Xceed Financial if the item were returned as unpaid. 1 Subject to credit approval. 2 The funds automatically transfer from a qualifying account designated by the member (savings, money market, line of credit) to a checking account in increments of $100, or up to the available balance, whichever is less. The fee is automatically charged to the checking account. Types of Transactions Covered by Overdraft Privilege Types of transactions covered by Overdraft Privilege depend on the coverage selected. STANDARD COVERAGE Eligible consumer checking accounts automatically receive Standard Coverage. EXTENDED COVERAGE If you choose Extended Overdraft Coverage, all the transaction types listed in Standard Coverage are included, along with ATM withdrawals and everyday debit card transactions. Xceed Financial will not authorize overdrafts for everyday debit card and ATM transactions on consumer accounts unless you give us your consent to pay these overdrafts through Extended Overdraft Coverage. Eligible business accounts automatically receive Extended Overdraft Coverage. Transactions Covered with Overdraft Privilege Standard Coverage Extended Coverage (Your consent required) Checks ACH - Auto Debits Recurring Debit Card Payments Online Bill Pay Items Teller Window Transactions ATM Withdrawals Everyday Debit Card Purchases Overdraft Privilege Limits If eligible, each of your checking accounts can have Overdraft Privilege. The limit on each will be $100 on Access Checking, $500 on Basic Checking, $750 on Platinum Checking and SeekMore Checking and $1,000 on Business Checking. Methods for Consenting to Have Extended Overdraft Privilege (covering overdrafts on ATM and everyday debit card purchases) Call us at 800.XFCU.222 ( ). Visit xfcu.org/overdraftprivilege to complete and submit the consent form online. Complete the consent form at any Xceed Financial Center. Complete and mail the consent form to: Xceed Financial Credit Union Attention: Retail Operations 888 North Nash Street El Segundo, CA 90245