Table of Contents. Membership Dividends/Interest Account Terms and Conditions Regular Savings Accounts... 13

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1 Table of Contents Membership... 2 Dividends/Interest... 3 Account Terms and Conditions Regular Savings Accounts Checking Accounts Money Market Account Special Savings Account, Spread the Pay Accounts, and Holiday Club Accounts Individual Retirement Account (IRA) Certificate Accounts Fiduciary Accounts Electronic Fund Transfers (EFT) Funds Availablity Policy Wire Transfer Notification Our Privacy Policy

2 MICHIGAN FIRST CREDIT UNION MEMBERSHIP/ACCOUNT AGREEMENT This is the Agreement between you (the member ) and MICHIGAN FIRST CREDIT UNION ( Credit Union ), a Michigan Credit Union, whose principal place of business is located at Evergreen Road, Lathrup Village, Michigan, regarding your accounts with the Credit Union. By establishing an account with the Credit Union, you agree that this Agreement is a binding contract between you and the Credit Union. You should retain a copy of the Agreement and feel free to call the Credit Union Member Services Team if you have any questions. This Agreement also includes certain disclosures required under the Truth-In-Savings Act and National Credit Union Administration and Federal Reserve Board regulations and commentary, the Electronic Fund Transfer Act (Regulation E), the Michigan Electronic Funds Transfers Act, the Funds Availability Act (Regulation CC), Regulation D, the National Credit Union Administration (NCUA) Rules and Regulations Part 716 (Privacy of Consumer Financial Information), Part 717 (Fair Credit Reporting) and Part 748 (Safeguarding Member Information), and Uniform Commercial Code Article 4A. The words you and your mean the member and any joint members or co-depositors. The words we, our, us, and Credit Union mean the MICHIGAN FIRST CREDIT UNION. I. Membership A. Generally. Membership is open to anyone who lives, works, or worships within the state of Michigan, as well as alumni/alumnae of the post-degree and degree-granting institutions as described in the Credit Union s bylaws. Our membership also includes: retirees who were eligible for membership at time of retirement; spouses of members and children (by blood, marriage or adoption) of any member; any individual living under the same roof and in the same household of a member; the surviving spouse of a deceased member; employees of the Credit Union; and other groups as may be added to the Credit Union s bylaws. Membership in Michigan First Credit Union is also open to everyone described in Article 3 of the Credit Union s bylaws. A copy is available upon request. Membership in the Credit Union is a lifetime membership provided that you keep your membership in good standing. The Credit Union s bylaws provide that once a member, always a member so that even if you retire, change jobs (outside the field of membership) or move to a new location, you may remain a member of the Credit Union. Only members in good standing may receive the benefits and services of the Credit Union. B. Becoming a Member. To become a member of the Credit Union, you must complete a Membership Card (which includes an Application for Membership) and open a regular savings account. The basic savings deposit that you must always keep in your regular savings account to retain membership is $ In this Agreement, we will refer to your Share Savings 2

3 Account account as Regular Savings Account and Share Savings as Regular Savings. Where we use the word savings generically, it will mean all your accounts with us except otherwise noted. C. Valid Photo Identification. The USA Patriot Act requires the Credit Union to properly identify you when you open, access, transact business with, or close your account. To comply with this federal law, we will request that you present a valid, unexpired government-issued identification bearing a photograph. Failure to provide such identification may limit the services we can provide you and may delay the availability of your funds (Refer to Section XIIIXII. Funds Availability Policy). II. Dividends/Interest A. Rate and Annual Percentage Yield ( APY ). Your Account(s) except as otherwise noted will earn what are known as dividends. The words dividend and interest may be used interchangeably in this Agreement. Refer to our current Rate page and Fee Schedule for our current dividend rates. Dividends are like interest, except that the Credit Union sets the rate of dividends from time to time. Dividends are not guaranteed. The Credit Union estimates a prospective dividend rate and prospective annual percentage yield (APY) on your Account(s) for each dividend period. Your accounts, except for certificate or term accounts, are variable rate accounts. The dividend rate and APY may change at any time as determined by the Credit Union. Refer to the Rates Page for current interest rates and Annual Percentage Yield. The dividend rates will be available each business day at our office. You may also call Member Services at for current rates, or view our savings rates at MichiganFirst.com. B. Calculating and Compounding Dividends and Interest. Dividends and interest are calculated by the daily balance method which applies a daily periodic rate to the balance in an account each day. We compound your dividends even though the law doesn t require that. Compounding is more favorable to you because once dividends have been earned by your account, they are added to the balance on which you will continue to earn dividends. Because we compound dividends, the actual yield on your account will be somewhat higher than the annual dividend rate. The Annual Percentage Yield (APY) will be posted along with the annual interest (dividend) rate. For most account types, the dividend period is monthly. For example, the beginning date of the first dividend period of the calendar year is January 1 to January 31. All other dividend periods follow this same pattern of dates. Dividends will be compounded monthly. The dividend declaration date follows the ending date of a dividend period, and for the example above is February 1. C. Accrual and Crediting of Dividends. Dividends on all accounts that earn them are paid from current income and available earnings after required transfers to reserves are paid at the end of a dividend period. Dividends will begin to accrue on the business day you deposit non-cash items (for example, checks) to your 3

4 account. Dividends will be credited monthly. Dividends are not available to you until they have been credited to your account. Dividends that are credited to your account will be added directly into your account. If you close your account before dividends are paid, you will not receive the accrued dividends. D. How Withdrawals Affect Dividends/Interest. Even though your account earns dividends every day, we don t actually credit them to your account until the final day of the period, and they become available the first day of the subsequent period. If you make a withdrawal, you won t receive any further dividends on that amount from the day you make the withdrawal until the day that dividends are credited. III. Account Terms and Conditions The following paragraphs apply to all Accounts opened with the Credit Union, except as specifically modified elsewhere. A. Accounts Not Transferable. None of your accounts are transferable, except on the Credit Union s books and records. B. Authorized Agents. 1. Agency Designation on an Account. An agency designation on an account is an instruction to us that the owner authorizes another person to make transactions as agent for the account owner regarding the accounts designated. An agent has no ownership interest in the account(s) or Credit Union voting rights. We have no duty to inquire about the use or purpose of any transaction made by the agent, but we reserve the right to deny any withdrawal request. Account owners agree to hold the Credit Union harmless for any loss resulting from any withdrawal from an agency account. 2. Powers of Attorney. Unless it has contracted to the contrary, the Credit Union is under no obligation to honor a power of attorney. However, the Credit Union may choose to do so at its discretion. It will generally honor a power of attorney if the original document has been first presented to the Credit Union by the account owner (Principal) involved and the Credit Union finds it to be in satisfactory form. Exceptions to presentation by the Principal will only be made in extenuating circumstances (such as military service) and will generally either require a representation by the attorney for the Principal of the document s continuing validity or certification by appropriate medical personnel. The Credit Union must identify the attorney-in-fact pursuant to the requirements of the USA Patriot Act in all cases before the agent will be allowed to sue the power of attorney. The Credit Union may impose additional requirements from time to time at its sole discretion. 4

5 C. Agreement. This Agreement shall be effective and shall govern all deposit accounts with us. By signing a signature card, making deposits or withdrawals, or leaving amounts on deposit, you agree to the terms of this Agreement, effective immediately. This Agreement shall supersede all previous agreements for such accounts. 1. Amendment. We may change any of the items of this Agreement at any time without prior notice to you if the change is favorable to you. We may make changes that are adverse to you only if we provide you with any notice required by law or required in this Agreement. You may close the account if you do not agree to the changes; if you continue to use the account or keep the account open after the effective date of such change, you will be deemed to have agreed to the changes. 2. Section Headings. Section headings in this Agreement are for convenience of reference only and shall not govern the interpretation of any of the provisions of this Agreement. 3. Governing Law. This Agreement shall be governed by the laws, including applicable principles of contract law, and regulations of the State of Michigan, except as superseded by federal laws and regulations, by the Credit Union s Bylaws, and by local clearinghouse rules. Unless prohibited by applicable law, any action brought pursuant to this Agreement against the Credit Union must be brought in the local State District Court or State Circuit Court with jurisdiction over the location of the Credit Union s principal place of business. 4. Severability. If any of this Agreement is found by any other court or regulatory body of competent jurisdiction to be invalid or unenforceable in whole or in part for any reason whatsoever, the authority of the remaining provisions or portions hereof shall not be affected thereby. D. Endorsement. All endorsements placed on the reverse side of any check or draft which you deposit to your account must be placed so that they are on the left side of the item when looking at it from the front and must be placed so they do not go beyond an area located 1 and 1/2 inches from the left edge of the item when looking at it from the front. The Credit Union may refuse to accept any item that does not meet this requirement, and, if the Credit Union does accept it, you agree that you are completely responsible for any loss we incur which is premised on an endorsement not meeting this requirement, including any court costs and reasonable attorney fees. E. Fees. Any account may be subject to service charges in accordance with the Fee Schedule adopted by the Credit Union from time to time. You agree to pay us fees in connection with your accounts in accordance with the Rate page and Fee Schedule then in effect. We will provide advance notice of any increase in current 5

6 charges, or any new charges as required by law. We may deduct any fees owed from any of your accounts except that no fee may be deducted from an Individual Retirement Account (IRA) unless the fee relates to the IRA. We reserve the right to waive any charges in our sole discretion. Fees may reduce earnings on any of your accounts. F. Final Credit for Deposits; Return of Deposits. All deposits are subject to proof and verification. If you deposit a check, draft or other non-cash item, we have the right to clear it before we make the money available to you subject to applicable federal regulations. If there are special fees for collecting your deposit, you promise to pay them (see the Fees Schedule for a list of fees). We may deduct them directly from your account. If we believe there is reasonable basis, in our sole discretion, to do so, we may refuse, limit or return any deposit. We reserve the right to refuse to accept any deposit and we specifically reserve the right to refuse to accept checks for deposit that have more than one endorsement. We reserve the right not to pay interest or dividends on amounts subject to garnishment, levy or other legal process; and we reserve the right not to pay interest or dividends on any deposit that is returned to us unpaid by the financial institution on which it is drawn (even if that means a reversal of credited interest or dividends). G. Funds Availability. If you make a non-cash deposit into any savings account other than a checking account, that money may not be available to you right away. We will advise you when such funds will be available at the time you make such a deposit. A minimum hold of at least three (3) business days will apply to any personal check presented and accepted for deposit within the first 30 days an account, other than a checking account, is opened. We reserve the right to extend all such holds at our discretion. If you make a deposit by authorizing us to receive funds from another account (for example, from a savings account at another credit union or bank), that deposit will not be available, nor will it earn dividends, until we actually receive the funds. Refer to the Funds Availability Policy (Section XIII below) for information regarding the availability of funds deposited into checking accounts. Our decision to make funds available to you for withdrawal does not relieve you of liability if an item is returned to us unpaid after we have made funds available to you. You remain responsible for all items deposited into your accounts, including any losses incurred as a result of an item you deposit being returned to us unpaid. H. Inactive Accounts. The Credit Union will consider your account inactive after three (3) years of no deposits or withdrawals on your account. This excludes interest or dividends credited to your account by the Credit Union. The Michigan Uniform Unclaimed Property Act permits the Credit Union to turn these funds over to the State after two years of no activity and requires the Credit Union to turn these funds over to the State after three (3) years of no activity. Before turning funds from inactive accounts over to the State of Michigan, the Credit Union will send notices, as required 6

7 by Michigan law, advising you of your rights. I. Joint Savings Accounts. Members should plan carefully and completely when choosing to enter into a joint savings account. All account owners are members. If two or more parties have signed a signature card, you are creating, and intend to create, a joint tenancy with rights of survivorship. That is, you, as the owners of the account, agree with yourselves and the Credit Union that all sums paid into the savings account involved, together with all accumulations prior to now or hereafter, less set-offs as allowed by law for any sums due the Credit Union by any party, shall be owned by all of you jointly with full right of survivorship, and shall be subject to withdrawal or receipt by any of you in whole or in part. Payment to any of you or the survivor(s) of you, or, if the account has no Beneficiaries, the personal representatives, administrators or assigns of the last survivor(s) of you, shall be valid and discharge the Credit Union from any liability for such payment and amount. Each signer appoints each other signer to be his or her irrevocable attorney: to make deposits to the account; to endorse, for cash or deposit, any checks or other items whether payable to one of the signers alone or with others; and to receive and receipt for all funds all without obligation to us to inquire into the source or application of funds. To induce us to act thereunder, each person signing the signature card jointly and singly agrees to hold the Credit Union harmless and indemnify us from loss, cost, and damage in all respects in connection with any of the foregoing, including court costs and attorney s fees, except as may be limited by applicable law. Any or all of the joint owners may pledge all or part of the savings (savings or deposits) in the account as collateral for security on a loan(s). No authority or obligation of the Credit Union may be changed or terminated by one or more of the joint owners without prior written notice to the Credit Union, and no such change or termination shall affect transactions already made. Further, each joint owner is subject to the terms and disclosures of this Agreement, and hereby acknowledges receipt of the Agreement. We may refuse to authorize a withdrawal from a joint account when we have knowledge of a dispute between the joint accountholders until the matter is resolved. Any owner who is a surviving owner agrees that the Credit Union, to the extent allowed by law, may set off any money in the account against any obligation of a deceased owner within thirty days after the Credit Union becomes aware of the deceased owner s death unless such a setoff would not have been allowed during the deceased individual s lifetime. All owners who are surviving owners also agree that their interests in the account are subject to any security interest or pledge granted by a deceased owner, even if they individually did not consent to it. Except as modified in this Agreement, joint accounts shall be subject to and governed by PA 41 of the Public Acts of 1968, as amended, being MCLA , and commonly known as the Credit Union Multiple-Party Accounts Act. J. Minors - Accounts for. We may require any account established by a minor to be a multiple party 7

8 account with an owner who has reached the age of majority under Michigan law and who shall be jointly and severally liable to us for any returned item, overdraft, or unpaid charges or amounts on such account. We may pay funds directly to a minor without regard to his or her minority. Unless a guardian or parent is an account owner, the guardian or parent shall not have any account access rights. We have no duty to inquire about the use or purpose of any transaction. We will not change the account status when the minor reaches the age of majority, unless authorized in writing by all account owners. K. Legal Compliance and Protection 1. Legal Process. If any legal action is brought against your account, we may pay out funds according to the terms of the action or, unless a court order or a proper government levy is involved, refuse any pay out until the dispute is resolved. Any expenses or attorney fees we incur responding to legal process may be charged against your account without notice, unless prohibited by law. Any legal process against your account is subject to any lien and security interest we may have on your account. 2. Federal (NCUA) Savings Insurance. Your savings in the Credit Union are insured by the National Credit Union Administration (NCUA), an agency of the Federal Government, in accordance with regulations promulgated by the NCUA. For more information regarding NCUA sharesavings insurance, please refer to the NCUA brochure entitled Your Insured Funds, which can be found in any of our branches. You can also visit NCUA.gov for more information on savings insurance. 3. Additional Private ShareSavings Protection. Your savings account is further protected with Excess savings Insurance (ESI) for an additional $250,000 by the Credit Union, at no charge to you. 4. Advice Concerning ShareSavings Insurance/ Protection. Because we are not authorized to provide legal advice, we cannot counsel you as to how to structure your accounts in order to maximize your account insurance protection. 5. Taxpayer Identification Numbers and Backup Withholding. Your failure to furnish a correct Taxpayer Identification Number (TIN) or meet tax law or other legal requirements may result in backup withholding. If your account is subject to backup withholding, we must withhold and pay to the Internal Revenue Service (IRS) a percentage of dividends, interest and certain other payments. If you have designated on the W-9 or W-8BEN that you have applied for a TIN, you must provide the TIN within 60 days. Upon the expiration of the 60- day period, the Credit Union may begin 8

9 withholding from your account. L. Negotiable Instruments - Form of. All negotiable instruments presented for deposit must be in a format that can be processed and/or photographed. The Credit Union may refuse to accept any check or draft that does not meet this requirement. Substitute checks (as defined in the Check 21 Act ) are the legal equivalent to traditional checks when used in appropriate transactions. M. Notices. Notices to us should be sent to: Michigan First Credit Union, Evergreen Road Lathrup Village, MI 48076, ATTN: President/CEO. 1. Notice of Withdrawals. All of your accounts are subject to the Credit Union s right to require advance notice of withdrawal, as provided in the Michigan Credit Union Act and in the Credit Union s Bylaws. 2. Name or Address Changes. You are responsible for notifying us of any address or name change. Whenever we are required to send you notice, the Credit Union is only required to attempt to communicate with you at the most recent address you have provided in writing or through electronic channels if allowed by the Credit Union. The Credit Union requires all notices of change in address or name to be in writing. A name change, except due to marriage, requires a court order specifically identifying the new legal name. Other documents, including Secretary of State filings, shall not suffice to demonstrate an individual person s name change. 3. Other Notices. All notices regarding the account will be posted in our office lobbies or will be sent to you to the address shown on your statement or through electronic channels. In the event of joint ownership, notice by or to any one joint owner shall be deemed notice by or to all. 4. Effect of Notice. Any written notice you give us is effective when we receive it. Any written notice we give to you is effective when it is deposited in the U.S. Mail, postage prepaid and addressed to you at your statement mailing address. N. Liens and Security Interests in Your Accounts. Except for debts that are secured by your principal residence, if you owe us money as a borrower, guarantor, endorser or otherwise, we have a lien on the funds in any account in which you have an ownership interest, regardless of their source. We may apply these funds in any order to pay off your indebtedness. By not enforcing a lien, we do not waive our right to enforce it later. In addition, you grant the Credit Union a consensual security interest in your accounts and we may use the funds from your accounts to pay any debt or amount now or hereafter owed the Credit Union, except for obligations secured by your residence, unless prohibited by applicable law. The lien and security interest described in this Section do not apply 9

10 to any Individual Retirement Account or other account permitting tax deferrals or providing other tax benefits under state or federal law. We will notify you if we have exercised our rights under this Section. O. Beneficiary Designation. When opening an account or, if all owners agree, at any time thereafter, you may designate one or more persons as beneficiaries of your accounts (except as prohibited by law) under the Michigan Credit Union Beneficiary Accounts Act (Public Act 31 of 1992), being M.C.L et seq. Upon the death of the last surviving owner of the account, the surviving beneficiaries shall become the owners of the account. If there is more than one surviving beneficiary, the account shall be divided equally between them, and each beneficiary shall be the sole owner of that beneficiary s savings. In accordance with the Credit Union Beneficiary Accounts Act, there shall be no joint ownership among beneficiaries. The Credit Union is not obligated to notify any beneficiary/payee of the existence of any account or the vesting of the beneficiary/payee s interest in any account, except as otherwise provided by law. The Credit Union reserves the right to require documentation in order to confirm that an account has become properly payable to a beneficiary or beneficiaries. An account owned by a person that is not a natural person (that is, an account owned by a corporation or other legal entity or by a trust) may not have beneficiaries. P. Requests and Special Instructions by Member 1. Changes Requested by You. Account changes requested by you, such as adding or closing an account or service, may require a signed Account Change form and be accepted by us. In some cases, a form signed by all owners may be required. 2. Facsimile Signatures. You agree (for joint accounts, all joint owners agree jointly and severally) that the Credit Union may accept and rely on facsimiles of your signature(s) on any deposit or withdrawal form, order or other notices, requests or instructions, paper or electronic, regarding any account under this Agreement or with the Credit Union. We shall not be responsible for any loss incurred as a result of our acting upon or executing any request, order or instruction we believe to be genuine. Furthermore, we may refuse to execute any facsimile request or order. 3. Special Account Instructions. You may request that we facilitate certain business, trust, will, or court-ordered account arrangements. However, because we do not give legal advice, we cannot counsel you as to which account arrangement most appropriately suits the specific requirements of your business, trust, will, or court order. If you ask us to follow any instructions that we believe might expose us to claims, lawsuits, expenses, liabilities, or damages, whether directly or indirectly, we may refuse 10

11 to follow your instructions or may require you to indemnify us or post a bond or other protection. 4. Telephone Requests. You agree (for joint accounts, all joint owners agree jointly and severally) that funds in any of your accounts with us can be transferred upon the telephone request of any signer on the account. We shall not be responsible for any loss incurred as a result of our acting upon or executing any request, order or instruction we believe to be genuine. Furthermore, we may refuse to execute any verbal request or order. 5. Indemnity. If by following your instructions we are exposed to a claim or suit by an adverse claimant, you shall hold us harmless and indemnify us from any such losses, expenses, liabilities or damages, including actual attorney s fees. If you ask us to follow instructions that we believe might expose us to claims, suits, losses, expenses, liabilities or damages, whether directly or indirectly, we may refuse to follow your instructions, or we may require a bond or other protections. Q. Return of Deposits/Closed Accounts. We may, at any time, in our sole discretion, refuse to accept any deposit, or close any or all of your accounts with us without prior notice to you. However, we may not terminate your membership in the Credit Union without satisfying the notice provisions of the Michigan Credit Union Act and related Bylaw Provisions and regulations. If we close an account, we will notify you and send you a check for any balance in your account after deducting all applicable charges. Any withdrawal that reduces the amount in an account to zero (other than a checking account) may automatically close that account. We are not liable for any check, withdrawal or other payment order after an account is closed. Any checks, or other payment orders presented after your account has been closed will be returned unpaid. We reserve the right to advise consumer reporting agencies and other third parties of accounts closed for misuse, with regard to all parties named on the accounts, without regard to which individual(s) misused the account. Please refer to the Termination (Section S below) for information regarding termination of accounts and membership from the Credit Union. R. Statement and Member Responsibility. You will receive a periodic statement (normally monthly) for your Checking Account. You will receive a periodic statement (normally quarterly) for your Regular Savings Account or other savings accounts unless you have an electronic funds transfer transaction during a monthly period (in which case you will receive a monthly statement), or you will receive a combined statement on a monthly basis if you have a checking account and other savings accounts. Each such statement shall show the transactions on your accounts and any charges. We reserve the right not to send statements for accounts we consider inactive, or for those accounts for which we do not have a valid address on file. It is your responsibility 11

12 to promptly examine each periodic statement carefully and reconcile the account. If there are any discrepancies, you should notify us immediately. Except as expressly provided for elsewhere, you have the responsibility for any fraud loss if you fail to exercise reasonable care in examining the statement or fail to report forgeries or alterations to the Credit Union within 60 days of the mailing date of the earliest statement containing those items. The Credit Union will not be liable if items were forged or altered such that a reasonable financial institution could not detect the fraud. It is also your responsibility to verify all transactions prior to departing the teller window, whether inside the branch or in the drive-through, to confirm proper crediting of deposits and transfers, as well as proper amount of withdrawals in cash and other instruments. Once you have departed the teller window, the Credit Union shall not be responsible for reported discrepancies due to your failure to verify your transaction while you remained at the teller window. S. Termination 1. Of Account. We may terminate your account at any time without notice to you, or we may require you to close your account and apply for a new account if: a. there is a change in owners or authorized signers; b. there has been a forgery or fraud reported or committed involving your account; c. there is a dispute as to the ownership of the account or of the funds in the account; d. any checks are lost or stolen; e. there are excessive returned unpaid items not covered by a contractual overdraft protection plan; f. there has been any misrepresentation or any other abuse of any of your accounts; or g. we reasonably deem it necessary to prevent a loss to us. You may terminate a single party account by giving written notice. We reserve the right to require the consent of all owners to terminate a multiple party account; however, a person may give up his/her ownership rights in a multiple party account at any time by completing a document acceptable to the Credit Union in that regard. We are not responsible for payment of any check withdrawal, or other item after your account is terminated; however, if we pay an item after termination, you agree to reimburse us. 2. Of Membership. You may terminate your membership by giving us notice. You may be denied services or expelled for any reason allowed by applicable law, including causing a loss to the Credit Union. T. Transaction Limitations (Reg D). During any calendar month, you may not make more than 12

13 six transfers or withdrawals, or a combination of such transfers and withdrawals from your Savings, Money Market, Special Savings, Spread the Pay, or Holiday Club Accounts to another account or to a third party by means of a preauthorized or automatic transfer or telephonic agreement, order or instruction. If you exceed the transfer limitations set forth above in any month, your account may be subject to closure by the Credit Union. U. Waiver. We may waive any of these provisions at our sole discretion except those required by law (such as transfer limitations), but any such waiver will apply only on that occasion. If we chose to waive any provision, we will not be bound to waive the same provision or any other provision on another occasion. V. Cash Withdrawal Limitations. For security reasons we may limit the amount of withdrawals that may be taken in cash from an account or by any given individual; we will establish such limits in our discretion from time to time. Please contact us if you have any questions about such limits. W. Disputed Transactions. If you report to us that a transaction is unauthorized, you agree to provide us with whatever assistance and information we may reasonably require in our investigation of the matter and efforts to secure reimbursements from parties involved with the transaction(s) you report to us as unauthorized. Such required assistance may include, but is not limited to, signing affidavits of forgery, filing police reports, viewing video tapes, or other photographic material at our sole discretion to assist in identifying the people involved, and cooperating in any litigation we may initiate to recover funds from any party not entitled to them. IV. Regular Savings Account A. Deposits. After you have established your Regular Savings Account, you may make additional deposits into that account, or establish other types of accounts as described below, at any time and in any amount. We may establish minimum amounts for deposits in your Regular Savings Account or other savings accounts. You can make deposits in person or by mail. At the present time, you can arrange to have one or more of the following deposits made directly to your Regular Savings Account: a. payroll deduction deposits b. net pay deposits c. Social Security deposits d. pension plan deposits e. stock dividends or f. other miscellaneous deposits. If you have an Automatic Teller Machine (ATM) or Debit Card, depending upon applicant qualifications, you may also be able to make a deposit through one of the automated teller machines equipped to accept deposits. If you have applied for and been given access to Audio Teller (our Audio Response System), Michigan First Mobile or Online Banking, you can also transfer funds from one account to another, provided you are an 13

14 owner on every account involved in the transfer. B. Withdrawing Money from Your Regular Savings Account. As long as you have money in your account, and subject to any applicable state or federal laws and regulations, the transaction limitations in this Agreement, and the Credit Union s Bylaws, money can be withdrawn from your account by any method approved by the Credit Union. Withdrawals will reduce earnings on your Regular Savings Account. C. Minimum Balance to Earn Dividends. This is a variable rate account. You earn dividends on your regular Savings Account each day that your account balance is $10.00 or more. We reserve the right to adjust minimum deposit balance requirements from time to time. If you do not maintain the minimum deposit balance requirement we may charge you a monthly maintenance fee (see the Rate page and Fee Schedule for a list of fees). V. Checking Accounts We offer multiple types of checking accounts, depending upon applicant qualifications. Except where indicated below, these terms and conditions apply to each type of checking account. A. Deposits. Members may establish a Checking Account by designating the appropriate option on the Membership Card or completing an Account Change Form. After you have established your checking account, you may make additional deposits into that account at any time and in any amount in any manner acceptable for deposits into your Regular Savings Account subject to the terms of this Agreement. There is no minimum deposit for your Checking Account. B. Minimum Balance. There are no requirements to maintain a minimum balance in a Checking Account, but you must maintain $10.00 on deposit in your Regular Savings Account to retain a Checking Account. We reserve the right to adjust the minimum balance requirements from time to time. If you do not maintain any such minimum balance in the account, we may assess a fee. Refer to our Rate page and Fee Schedule for more information regarding this fee. C. Withdrawing Money from Your Checking Account. As long as you have money in your Checking Account, and subject to any applicable state or federal regulations, as well as the Credit Union s Bylaws, you may withdraw money from your account by a check or any other method approved by the Credit Union. Checks must generally be ordered through the Credit Union. If checks are not ordered through the Credit Union, the Credit Union may assess a fee whenever problems arise in automatically clearing such checks. When you order checks through the Credit Union, the Credit Union will charge your account for the costs of those checks, which will vary depending on the style of checks ordered. You may select checks from the current styles available. Withdrawals will reduce earnings on your checking account. D. Transaction Limitations, Premier and First Gear Checking. If you have a Premier or First Gear 14

15 Checking Account, except as otherwise stated in this Agreement, or in any applicable federal or state law or regulation, there are no transaction limitations on this account. E. Transaction Limitations, Classic Checking. If you have a Classic Checking Account, you will be permitted to make deposits of cash or electronic deposits directly into this account. We reserve the right to refuse to accept any other types of deposits into this account, but you may be permitted to make deposits of other types into your Regular Savings Account and later, with our approval, transfer the funds involved to your Classic Checking Account. In addition, your ability to make deposits with your ATM/Debit card, or through our shared savings branching network, may be restricted. F. Payment of Checks. The Credit Union is under no obligation to pay a check that is more than 6 months old. Except for negligence, the Credit Union is not liable for any action it takes regarding the payment or nonpayment of a check. We may return all checks drawn on your checking account unpaid for any reason that checks are normally returned, such as, for example, insufficient funds, uncollected funds, or litigation. G. Minimum Balance to Earn Interest, Premier and First Gear Checking. If you have a Premier or First Gear Checking Account, this is a variable rate account. You earn interest on your checking account each day that your account balance is more than the minimum amount disclosed in the Rates Page. We reserve the right to adjust minimum deposit balance requirements from time to time. If you do not maintain any such minimum deposit balance requirements, we may charge you a monthly maintenance fee. H. No Interest, Classic Checking. If you have a Classic Checking Account, we will not pay interest on this account. I. Funds Availability. Funds from deposits you make into your checking account may not always be immediately available for withdrawal or transfer from Online Banking and/or Online Bill Pay. Refer to our Funds Availability Policy (Section XII below) further on for more details. J. Overdraft Protection. The Credit Union is under no obligation (unless it has contracted to the contrary) to pay a check you have written if it would result in this checking account being overdrawn (a check written against your checking account when sufficient available funds are not on deposit in the account and contractual arrangements are not in place to cover it is known as an NSF Check). However, the Credit Union will transfer an amount sufficient to cover the checking account deficiency with a transfer from your designated savings account, if funds are available. If you have been approved for a Line of Credit and the amount of the overdraft does not exceed your available credit, the Credit Union will pay the check and add the amount of the resulting overdraft to the balance of your Line of Credit in accordance with the terms and conditions of the Line of Credit Agreement. The Credit Union has the option of honoring an NSF Check or dishonoring 15

16 it to avoid the creation of an overdraft. Honoring of past overdrafts does not obligate the Credit Union to honor them in the future. The Credit Union may pay the check and charge the amount of the resulting overdraft plus any applicable service charge against a designated account. The Credit Union is not required to send prior notice of checks returned NSF or NSF checks paid, and you agree to immediately deposit sufficient funds to cover any overdraft and service charges. Failure to immediately cover any resulting negative balance may result in account privilege restrictions. If this is a joint account (that is, if two or more people are parties to this account), all of the joint owners are jointly and severally liable to repay the Credit Union the amount of any overdraft and service charges, regardless of which of the parties writes the check that creates an overdraft. K. Truncated Checks; Statements. Your canceled checks will not be returned to you. They will become Credit Union property and be held by us ( truncated ) for you. They also may be truncated earlier in the check clearing process, such as by the bank into which the payee deposits them. This may be done either pursuant to a contractual electronic presentment process or under a federal law commonly referred to as Check 21. Your monthly statement will itemize your canceled checks by number, date of clearing and the amount of the check. Any objection respecting any item shown on a periodic statement is waived unless made in writing to the Credit Union before the end of sixty (60) days after the statement is mailed. A copy of any check or substitute check (a legal check under federal law - Check 21) will be available to you as required by law. There may be a small fee to obtain a check copy (see the Rate page and Fee Schedule for a list of fees), and check copies are available online through Online Banking. L. Stop Payments. 1. Stop Payment Order Request. You may request a stop payment order on any check drawn on your account. This request may be provided orally or in writing. We may require you to confirm your oral request within 14 calendar days. Upon the expiration of the 14 calendar days, we may disregard your request. To be binding, the written confirmation must be dated, signed, and describe the account and check number and the exact amount. The stop payment will be effective if the Credit Union receives the order in time for the Credit Union to act upon the order and you state the number of the account, number of the check, and its exact amount. You understand that the exact information is necessary for the Credit Union s computer to identify the check. If you give us incorrect or incomplete information, or only an oral notice is given to us without providing written confirmation upon request within 14 calendar days, we will not be responsible for failing to stop payment on the check. If the 16

17 stop payment order is not received in time for us to act upon the order, we will not be liable to you or to any other party for payment of the check. If we re-credit your account after paying a check over a valid and timely stop payment order, you agree to sign a statement describing the dispute with the payee, to transfer to us all of your rights against the payee or other holders of the check, and to assist us in any legal action. Stop payments related to pre-authorized transactions through Online Banking or Online Bill Pay from your checking account must be provided to the Credit Union within three (3) business days before the scheduled date of the transfer. This request may be provided orally or in writing. We may require you to confirm your verbal request within 14 calendar days, subject to the requirements provided above. If we have asked you to confirm your verbal request in writing and you have not done so within 14 days after we make the request, we may, after the expiration of the 14 day period, disregard your verbal stop payment order. 2. Duration of Order. A stop payment order is effective for six months and may be renewed in writing from time to time. We have no obligation to notify you when a stop payment order expires. 3. Liability. Fees for stop payment orders are set forth on the Rate page and Fee Schedule. Even if payment of an item is stopped, you may remain liable to any item holder, including us; and you agree to indemnify and hold the Credit Union harmless from all costs, including attorney s fees, damages or claims related to our refusing payment of an item including claims of any multiple party, account owner, payee, or endorser in failing to stop payment of an item as result of incorrect information provided by you. M. Payment of Checks after Death. The Credit Union may, after the date of your death, pay checks drawn before death unless ordered to stop payment by Personal Representative or other appropriate person claiming an interest in the account. N. Refusal to Pay Item. You agree that we may refuse to pay an item drawn on your account if the payee presents the item in person and is a person to whom the Credit Union has previously chosen to deny services due to having previously caused a loss to the Credit Union or otherwise engaged in fraudulent activity in connection with the Credit Union. O. Monthly Maintenance Fee, Classic Checking. If you have a Classic Checking Account, this account will be subject to a monthly maintenance fee. Please refer to the Rate page and Fee Schedule for disclosure of this fee. 17

18 VI. Money Market Account (MMA) A. Establishing Account and Rate. A member may establish a Money Market Account (MMA) by designating the appropriate option on the Membership Card and making a deposit. MMAs are savings accounts that generally earn a higher rate of interest than Regular Savings Accounts. The interest rate and APY for MMAs are variable and subject to change. B. Deposits. After you have established your MMA, you may make additional deposits into that account at any time and in any amount. We may establish minimum amounts for deposits in your MMA. C. Withdrawing Money from Your Money Market Account. As long as you have money in your account, and subject to any applicable state or federal laws and regulations, the transaction limitations in this Agreement, and the Credit Union s Bylaws, money can be withdrawn from your account by any method approved by the Credit Union. Withdrawals will reduce earnings on your MMA. D. Minimum Balance to Earn Interest. You earn interest on your MMA each day that your account balance is more than the required minimum balance. We reserve the right to adjust minimum deposit balance requirements from time to time. If you do not maintain any such minimum deposit balance requirements we may charge you a monthly maintenance fee (see the Rate page and Fee Schedule for a list of fees). VII. Special Savings Accounts A. Establishing Account and Rate. A member may establish a Special Savings Account, designating the appropriate option on the Membership Card and making a deposit. The interest rate and APY for Special Savings Accounts are variable and subject to change. B. Deposits. After you have established your Special Savings Account, you may make additional deposits into that account at any time and in any amount. We may establish minimum amounts for deposits in these Accounts from time to time. C. Withdrawing Money from Your Special Savings Account, or Holiday Club Account. As long as you have money in your account, and subject to any applicable state or federal laws and regulations, the transaction limitations in this Agreement and the Credit Union s Bylaws, money can be withdrawn from your account by any method approved by the Credit Union. Withdrawals will reduce earnings on any one of your accounts. Funds accumulated in your Holiday Club Account will be transferred to your Regular Savings Account (or your checking account if you so request) on the first business day of October of each year. D. Minimum Balance to Earn Dividends. You earn dividends on your Special Savings Account each day that your account balance is more than zero. We reserve the right to adjust minimum deposit balance requirements from time to time. If you do not maintain the minimum deposit balance requirement we may charge you a monthly maintenance fee (see the Rate 18

19 page and Fee Schedule for a list of fees). E. Distribution of Spread the Pay Accounts. The balance of your Spread the Pay Account will be distributed to you during the summer. Bi-weekly transfers of approximately one fifth of the Spread the Pay account balance will be made to your checking account. The transfers will commence according to an annual schedule. If you have not established a checking account, the transfers will be made to your Regular Savings Account. You may have the funds transferred to another of your accounts by giving written notice to the Credit Union. VIII. Individual Retirement Account (IRA) A. Establishing Account and Rate. A member may establish an Individual Retirement Account (IRA) by designating the appropriate option on the Membership Card, completing a Credit Union Individual Retirement Account custodial application, and making a deposit. These accounts are savings accounts that may provide tax benefits to the account owner. The interest rate and APY for IRAs are variable and subject to change monthly. B. Deposits. After you have established your IRA, you may make additional deposits into that account at any time and in any amount, subject to any restrictions under federal law. We may establish minimum amounts for deposits in your IRA. C. Withdrawing Money from Your IRA Account. As long as you have money in your account, and subject to any applicable state or federal laws and regulations, the transaction limitations in this Agreement and the Credit Union s Bylaws, money can be withdrawn from your account by any method approved by the Credit Union. Withdrawals will reduce earnings on your IRA account. D. Minimum Balance to Earn Interest. You earn interest on your IRA each day that your account balance is more than zero. We reserve the right to adjust minimum deposit balance requirements from time to time. If you do not maintain any such minimum deposit balance requirements, we may charge you a monthly maintenance fee (see the Rate page and Fee Schedule for a list of fees). E. IRA Certificates. Governed by the terms of Section X. Six-Month and Long-Term Certificate Accounts. IX. Certificate Accounts A. Establishing Account and Rate. A member may establish a Certificate Account and/or a Long Term Certificate Account (we will refer to these as Certificates ) by signing appropriate documentation and making the required minimum deposit. Certificates are savings accounts (also known as Term Accounts ) that generally earn a higher rate of interest than other savings accounts. The interest rate and APY for Certificates are fixed. Once you purchase a Certificate, 19

20 your interest rate will not be changed or recalculated during the term of that Certificate. The APY assumes that interest earned will remain on deposit until maturity. A premature withdrawal from this account will reduce earning and may incur penalties (see the Rate page and Fee Schedule for information concerning such penalties). B. Minimum Balance Requirement. From time to time, the Credit Union will establish a minimum balance required to open a Certificate. Refer to the Rate page and Fee Schedule for information about the current minimum balance requirements. You must also maintain a minimum membership balance of $10.00 in your Savings Account to maintain a Certificate beyond its next maturity date. C. Compounding and Crediting. Interest is compounded and paid monthly. If you close your Certificate before interest is credited, accrued interest will be paid to date less any early withdrawal penalty, if applicable. See the discussion of early withdrawal penalties below. D. Renewal Policy. For automatically renewing Certificates, there will be a 10 calendar day grace period for withdrawals after maturity, during which time no early withdrawal penalty will apply. Interest will not be earned during the grace period on funds withdrawn during the grace period. If a Certificate account is not withdrawn within 10 days after it matures, it will automatically renew from its last maturity date unless we give you notice that it will not renew. Renewed certificates will be reinvested in another Certificate of equal term at the interest rate and APY in effect on the date of maturity and renewal. The Credit Union shall determine the interest rate for the renewed Certificate on or before maturity, and that information will be available upon maturity prior to renewal. Within 10 days after the maturity date, you may call Member Services during regular business hours at to find out the interest rate and APY that will apply to the Certificate if it is renewed. You can also find current Certificate rates online at MichiganFirst.com. You may make an additional deposit to certificates during the 10- day grace period unless you choose a new certificate with a different length of maturity. All other terms and conditions, including the term length of the Certificate, shall be the same as the previous Certificate unless the Credit Union shall, prior to renewal, give written notice of a change in such terms and conditions. E. Transaction Limitations. After a Certificate is purchased, you may generally not make deposits into or withdraw principal from that Certificate until the maturity date. If a withdrawal of principal must be made prior to maturity, the amount remaining on deposit after the withdrawal must not fall below the minimum balance requirement for that certificate, otherwise the entire account balance must be withdrawn. In addition, an early withdrawal penalty will be assessed, as discussed below, for all withdrawals from any Certificate account prior to maturity. If you wish to deposit additional funds into a Certificate, you may purchase another Certificate at the then current rates. 20

21 F. Early Withdrawal Penalty. If you withdraw any principal from a Certificate before the maturity date, you will be assessed a penalty equal to 90 days interest on the entire principal amount. If the penalty exceeds the interest due at the time of such early withdrawal, the difference shall be deducted from the principal amount. No early withdrawal penalty will be assessed if the principal is withdrawn due to the death of any joint party to the Certificate (see the Rate page and Fee Schedule for a list of fees). X. Fiduciary Accounts A. Accounts for Trusts 1. Generally. Individuals can open a separate membership account for a Revocable Living Trust. 2. Retitling. An account owned by one (1) or more individuals may be titled or retitled in the name of a trust and not in the name of the individuals if all of the following are met: a. The trust is eligible for membership in the domestic Credit Union under subsection (1). b. Each owner consents, in writing, to titling or retitling the account in the name of the trust. c. Any beneficiaries listed on the account are removed as beneficiaries by the owners. d. The account is not an account that provides tax deferrals or any other tax benefit under state or federal law. e. Outstanding loans have been fully paid and closed. 3. Membership status of individuals when retitled. If an account is retitled in the name of a trust under subsection (2), the membership of any individual or individuals who had owned all or an interest in the account is terminated unless he or she is a member based on ownership of another account, or he or she qualifies for, applies for, and is accepted into membership. 4. Products and Services. The following types of financial products and services will be available to Trusts: a. Regular Savings Accounts b. Premier Checking Accounts (except where co-fiduciaries exist) c. Money Market Accounts d. Certificate Accounts e. Special Savings Accounts To the extent applicable and not superseded by this section, the terms and conditions governing those types of accounts for individuals, as described previously, govern accounts established for Trusts. 5. Documentation. In order to open an account for a Trust, a Trustee must provide such documentation as is required by the Credit 21

22 Union with regard to the Trust, including, but not necessarily limited to, the Trust document itself and/or a Certificate of Trust prepared by the attorney who drafted the Trust and/or a Certificate of Trust Existence and Authority. The Credit Union reserves the right to refuse membership to a Trust when it is not drafted in accordance with and governed by the laws of the State of Michigan or for any other reason in its sole discretion. 6. Distribution of Accounts. If an account is opened for a Trust, the Trust is the party with which the Credit Union is contracting, and the Trust agrees that the Credit Union may distribute funds pursuant to the terms of the most recently dated Trust Agreement or Certificate of Trust on file at the Credit Union, and the Trust, forever indemnifies and holds the Credit Union harmless for distributions made pursuant to that Trust made in good faith reliance on that Trust Agreement or Certificate of Trust. The trust further agrees that it is the responsibility of the Trust to notify the Credit Union when a Trust for which an account has been opened has been revoked, rescinded, revised, or in any way modified. 7. Withdrawals. All sums paid to the Credit Union on deposits (less set-offs allowed by law and/or provided by contract) shall be paid on proper withdrawal demand. Such demand must be made by the Trustee(s) as indicated on the Membership Card for Accounts Opened by Fiduciaries. The Credit Union has no obligation to monitor the further distribution of any funds withdrawn from the account, but we reserve the right to deny any withdrawal request. Only methods approved by the Credit Union may be used to make account withdrawals. 8. Representations of Trustee(s). Any Trustee for a Trust who signs an Application for Membership and Account Agreement for Revocable Trusts represents the following: (i) the Trust is in full force and effect and it has not been revoked or amended in any manner which would cause the representations made herein to be inaccurate or incorrect; (ii) the named Trustee(s) has qualified, is acting as Trustee(s), and is authorized to open this account; (iii) the Trustee(s) is authorized to hold, manage, deposit, withdraw, invest and reinvest funds deposited, purchase and sell certificates of deposit, and accomplish any or all other banking transactions; (iv) the Trust document contains a hold harmless provision for any third party dealing with the trust or any trustee and that such provision applies to the Credit Union; (v) Trustee(s) will send written notice of any change in Trustee(s), of any amendment or modification of the Trust which would cause the representations 22

23 made herein to be or become inaccurate or incorrect, or of the occurrence of any event which would affect the Trust s revocability, the powers of the Trustee(s), or any other representations made to the Credit Union; and (vi) any one Trustee has the power to authorize withdrawals or transfers from authorized accounts, or authorize new accounts or services. The Credit Union may rely on these representations and any instructions by the Trustee(s) and act in accordance therewith in any respect affecting the account before or after termination of the Trust, unless and until it receives a written notice of changes to the Trust, with notice of changes in Trustee(s), or written notice of any events affecting the Trustee(s) powers described above or in any documents required by the Credit Union. 9. Acknowledgement of Fiduciary Responsibility. Any Trustee for a Trust who signs an Application for Membership and Account Agreement for Revocable Trusts acknowledges and understands the Trustee s legal obligations as a fiduciary and as more fully set forth in the Michigan Estates and Protected Individuals Code. Such Trustee further agrees to conduct all business with the Credit Union on behalf of the Trust in accordance with state and federal laws as well as orders from any court of competent jurisdiction. 10. Indemnification. Any Trustee for a Trust who signs an Application for Membership and Account Agreement for Revocable Trusts hereby jointly and severally (if more than one) agrees to hold the Credit Union and each of its officers, directors, employees, agents, and affiliates harmless and indemnify them against any claims, judgments, settlement amounts, or other liabilities or costs of defense or settlement, including attorney s fees arising out of or related to any alleged or actual improper or unsuitable actions taken at the instruction of Trustee(s) in connection with account for the Trust or for any distribution of Trust assets to any person or entity. This indemnification is made by the Trustee(s) both in the capacity as Trustee and individually, and shall not be limited by any other independent documentation. If a Trustee provides instructions or an order to the Credit Union that the Credit Union reasonably believes might expose it to claims, suits, losses, expenses, liability, or damages, it may refuse to follow the instruction or order. B. Custodial Account under the Michigan Uniform Transfers to Minors Act (UTTMA) 1. Generally. Members who maintain a $10.00 membership savings in their Regular Savings 23

24 Accounts in the Credit Union can open a separate membership account as a custodian for a Minor under the Michigan Uniform Transfers to Minors Act ( UTTMA ), provided the Custodian is a member of the Credit Union in his or her own right and the Minor is eligible for membership in the Credit Union. The Membership and Account Agreement that shall apply to the account is that of the minor, not that of the Custodian. As a Custodian for a Minor opening an account under the Michigan UTTMA, any Custodian signing a General Membership Card for a Minor understands and agrees that the authority of the Custodian shall cease and the Minor shall receive full control of the account when the Minor reaches the age of majority. The Custodian understands that funds in this account may not be pledged as security for any purpose. Custodians may, at the time the account is opened, extend the time for disbursement to the minor from age 18 to age 21, but no further. 2. Products and Services. The following types of financial products and services will be available to Custodial Accounts under the Michigan UTTMA: Regular Savings Accounts, Money Market Accounts, and Certificate Accounts. To the extent applicable and not superseded by this section, the terms and conditions governing those types of accounts for individuals, as described previously, govern accounts established for Minors under the UTTMA. 3. Deposits. The Custodian has transferred funds into this account for the benefit of the named Minor. Any funds deposited into the account by the Custodian or other persons authorized to make deposits shall be conclusively presumed to be property of the Minor at the time of deposit. 4. Withdrawals. All sums paid to the Credit Union as withdrawals from savings (savings or deposit) accounts (less set-offs allowed by law and/or provided by contract) shall be paid on proper withdrawal demand by the named Minor on or after he or she reaches the age of majority (18, 19, 20, or 21) specified on the Account Agreement. Any withdrawal demands made prior to that time by any party will be paid in the form of a check made payable to the Custodian for the benefit of the named Minor. The Credit Union has no obligation to monitor the further distribution of any funds withdrawn from the account, unless required to do so by Court Order. We reserve the right to refuse any withdrawal request. 5. Indemnification. Custodian hereby holds the Credit Union and each of its officers, directors, employees, agents, and affiliates harmless and personally indemnifies them 24

25 against any claims, judgments, settlement amounts, or other liabilities or costs of defense or settlement, including attorney s fees arising out of or related to any alleged or actual improper or unsuitable actions taken at the instruction of the Custodian in connection with the Custodial Account or for any distribution of assets from this account to any person or entity. This indemnification is made by the Custodian, both in his or her capacity as such and individually, and shall not be limited by any other independent documentation. If a Custodian provides instructions or an order to the Credit Union that the Credit Union reasonably believes might expose it to claims, suits, losses, expenses, liability, or damages, it may refuse to follow the instruction or order. C. Account for Other Fiduciary Relationships 1. Generally. Members who maintain a minimum $10.00 deposit in their Regular Savings Accounts in the Credit Union can open a separate membership account as a Fiduciary for another named Person or Estate if the person involved qualifies for membership or, in the case of an estate for a deceased individual, the deceased individual was a member of the Credit Union at the time of death. For example, an account can be opened by a Conservator, Guardian, Personal Representative, Representative Payee, etc. These accounts are referred to collectively as Fiduciary Accounts and the individuals or estates for whose benefit they are opened are referred to collectively as Protected Persons. The member opening the account will be referred to as the Fiduciary. As Fiduciary, you understand and agree that you owe the Protected Person a legal fiduciary responsibility to care for his or its property, including funds held on deposit in this Account, and you understand and agree that funds in this Account may not be pledged as security for any purpose. 2. Products and Services. The following types of financial products and services will be available to Fiduciary Accounts: a. Regular Savings Accounts b. Premier Checking Accounts (except where co-fiduciaries exist) c. Money Market Accounts d. Certificates of Deposit e. Special Savings Accounts We reserve the right not to allow certain accounts to be opened as Fiduciary Accounts. To the extent applicable and not superseded by this section, the terms and conditions governing those types of accounts for individuals, as described previously, govern Fiduciary Accounts. 3. Documentation. In order to open an Account, 25

26 you agree to provide such documentation as is required by the Credit Union with regard to the Fiduciary relationship, including, but not necessarily limited to, Letters of Authority naming you as Conservator, Guardian, Personal Representative, etc. The Credit Union reserves the right to refuse to open a Fiduciary Account when documentation does not derive from the authority of the laws of the State of Michigan or Social Security Rules and Regulations. 4. Distribution of Accounts. If you have opened an account for a Protected Person, an Estate, or a Social Security Beneficiary, you, as Fiduciary, understand and agree that the Credit Union may distribute funds pursuant to the terms of the most recently dated Letters of Authority or other documentation on file at the Credit Union, and you, on behalf of the Protected Person, forever indemnify and hold the Credit Union harmless for distributions made in good faith reliance on those Letters of Authority or other documentation. You further agree that it is your responsibility to notify the Credit Union when your authority as a Fiduciary has been revoked, rescinded, revised, or in any way modified. 5. Withdrawals. All sums paid to the Credit Union on deposits (less set-offs allowed by law and/or provided by contract) shall be paid on proper withdrawal demand made by the named Fiduciary. The Credit Union has no obligation to monitor the further distribution of any funds withdrawn from the account, unless required to do so by Court Order. We reserve the right to deny any withdrawal request. The Credit Union shall not be liable for the misappropriate of funds resulting from a withdrawal from the Representative Payee account. XI. Electronic Fund Transfers (EFT) A. Generally. Michigan First Credit Union offers you various electronic fund transfer (EFT) services, made possible by our advanced electronic data processing system. Some of these transfers are made by use of an Automated Teller Machine Card (ATM Card) and/or MasterCard Debit Card that we issue to certain members. Sometimes two or more persons are furnished such cards relating to a single account held at the Credit Union. If we also provide a secret Personal Identification Number ( PIN ) to a member in relation to an ATM Card and/or a Debit Card, the ATM Card and PIN and/or the Debit Card and PIN can be used in any one of a number of Automated Teller Machines (ATMs) to make EFTs. Transfers can be made to, from or between one or more Credit Union accounts. Simply follow the instructions at the machine. EFTs can also be made through our Audio Response system once you have been issued a secret 26

27 PIN for that purpose. This disclosure is furnished to you to meet the requirements of both the federal and Michigan statutes relating to EFTs. It also meets the requirements of the regulation (Reg E) issued by the Federal Reserve Board pursuant to the federal statute, whether such EFTs are made by use of an ATM or in any other manner. This disclosure is also part of your Account Agreement contract with us. The terms and conditions set out in this section are binding on you and on us as to the making of such EFTs and the use of Online Banking, Mobile Banking, the Audio Teller system, EZ Scan&Deposit, your ATM Card, or your Debit Card and PINs, or any other EFTs, in the following cases: a. If you use the account(s) covered by this disclosure after receipt of this Agreement. b. If you already have an ATM Card and PIN, a Debit Card and PIN, an Audio Teller PIN, and/or Online Banking or Mobile Banking password provided by us, and you use them to make such transactions after receipt of this Agreement. c. If you ask us to provide you with a PIN and you thereafter use it, together with an ATM Card and/ or a Debit Card, to make such transactions. d. If you ask us to provide you with a PIN and you thereafter use it to make Audio Teller transactions. e. If you receive an ATM Card or a Debit Card from us without asking for it, but then ask us to provide you with a PIN so that you can use the card(s), and you use the card(s) and PIN to make such transactions. In any such cases, your use of the account(s) or your making of such transactions constitutes your acceptance of the terms and conditions set out in this disclosure. Although your account(s) may be subject to EFTs, and in that regard are subject to the terms and conditions of this disclosure, you may continue to use those account(s) to the same extent and in the same manner that you have in the past, insofar as over-the-counter and other non-electronic transactions are concerned. This disclosure is being furnished to all of our members. Members who have not authorized any electronic access to their account(s) in the credit union when they receive this disclosure need not concern themselves with this section of the Agreement. B. Accounts Affected. Each of the following-types of accounts in the credit union can be subject to some kind of EFT service: a. Savings Accounts b. Checking Accounts c. Special Savings d. Money Market Accounts These types of accounts are sometimes referred to in this disclosure as asset account(s) or simply as your account(s). You may notify us if you do not want your accounts to be to be subject to any particular type of electronic transfer service, and you may change those instructions in the future. We will, in all cases, follow your instructions to the extent our EFT programs permit 27

28 at that time. C. Account Agreement. The other terms and conditions of the Membership Account Agreement relating to your accounts with us remain in effect except to the extent modified by this section. D. Minimum Balance. You must always maintain a minimum of $10.00 in your Savings Account to be entitled to make (by use of ATM, Debit Card, Audio Response system, Home Banking or Mobile Banking) EFTs affecting your account(s). PINs for use with electronic access devices will not be issued to members whose loan payments to us are more than 30 days delinquent within the past six (6) months. We reserve the right to increase minimum balance requirements or to impose other restrictions in the future, but if we do so, we will give you at least 21 days advance written notice. E. EFT Services. At the present time, you can authorize the following types of EFTs to or from your asset account(s) in the Credit Union: 1. Transfers TO your account(s) (credits): a. Direct deposit of Social Security, pension, disability, or survivorship benefits. b. Direct deposit of Veterans Administration benefits. c. Direct deposit of Railroad Retirement Board benefits. d. Deposits from any third party through the facilities of the Payments Authority (of which we are a member). 2. Transfers FROM your account(s) (debits): Payments of your house mortgage payments, insurance premiums and utility bills, as well as other types of payment to third parties through the facilities of the Payments Authority. 3. Automated Teller Machine (ATM) Transactions: If you have an ATM Card or a MasterCard Debit Card (both types of cards will be referred to collectively in this section as Card ), along with a PIN, you can use it to make any or all of the following transactions at an ATM. (Some networks may not allow all transaction types.) a. Deposits to your transaction or savings accounts (in Michigan only if you have a Classic Checking Account, your ability to make deposits via ATM may be limited); b. Cash withdrawals from your transaction or savings accounts up to your available balance or authorized limit; c. Transfers (non-cash) from your transaction account or savings account to your transaction account or loan account (in Michigan only, with your Debit Card); d. Balance inquiries on your transaction or savings accounts (with your Debit Card); e. Cash payments on loans (with your Debit Card); and f. Withdrawals or deposits to other subsidiary savings accounts (with your 28

29 Debit Card). Some networks may not allow all transaction types. 4. Point of Sale (POS) Transactions: Your Card may be used to purchase goods or services from merchants who have arranged to accept an ATM Card or a MasterCard Debit Card as a means of payment. If you have a Debit Card, it may be used to purchase goods and services from any merchant displaying a MasterCard logo. These merchants are collectively referred to as Participating Merchants and will display a logo or other symbol that identifies them as a merchant who will accept your Card. Purchases made with your Card, including any purchases where you receive cash back, are referred to as point of sale transactions or POS transactions. A POS transaction will cause your checking account to be debited for the amount of the purchase. Only checking accounts may be used in connection with POS transactions. There are primarily two ways to use your Michigan First Credit Union MasterCard Debit Card: (1) PIN-based (Personal Identification Number), also known as a debit point of sale; and (2) Signature-based, also known as a credit, which sometimes requires your signature. Whenever you use your Debit Card with a PIN (debit), the money is deducted from your account at that time. Whenever you use your debit card as a Signature-based (credit), the amount of your Debit Card transaction or purchase is immediately put on hold in your account until the transaction clears. This hold is known as a preauthorization hold. The preauthorization hold can be on your account for up to three business days and for certain transactions longer or whenever the purchase transaction actually clears your account, whichever happens first. The important thing to know is that whenever you use your Debit Card, the money is either immediately withdrawn from your account or put on hold and is not available. Important to Know: a. Account Balance: The Balance is the actual amount of funds in your account. The Available Balance is the balance in your account available for withdrawal. Transactions authorized but not yet posted to your account and holds placed on deposited checks will reduce your available balance. b. Debit Card Information Making Reservations: Whenever you use your debit card for reservations such as airline, rental car, or hotels, the reservation amount may be placed on hold and reduce your available balance until the purchase amount posts to your account. 29

30 c. Other Transactions: Many gas station pay-at-the-pump transactions will place a preauthorization hold for a nominal amount until the actual purchase amount clears your account, so it is the member s responsibility to know what the actual purchase amount is to subtract it from your account balance. d. Keep Good Records: It s important to keep a record of your account by subtracting what you ve spent from the balance in your account. Michigan First Credit Union offers many ways to help you verify and reconcile your account, including Online Banking, Mobile Banking, Audio Teller and ATM balance inquiries. 5. Electronic Check Conversion. You may provide your check or draft to a merchant or service provider who will scan the check or draft for the encoded credit union and account information. The merchant or service provider will then use this information to convert the transaction into an electronic funds transfer. This may occur at the point of purchase, or when you provide your check or draft by other means such as by mail or drop box. Note that some merchants or service providers will initiate an electronic funds transfer to collect the amount of a check or draft and a returned check/draft charge in the event a check or draft, even if originally presented in paper form, is returned for insufficient funds 6. Online Banking, Mobile Banking and Online Bill Pay: You may also obtain various EFT services by subscribing to our Online Banking, Mobile Banking and Bill Payment services. A separate agreement governing those types of EFTs will be provided to you at the time you enroll in those services. F. Excluded Transactions. We have developed an advanced electronic data processing system which makes it possible to offer you many electronic services. However, some of these services do not constitute EFTs for purposes of this disclosure. For example, automatic transfers from your account(s) to pay your loan(s) owed to us and automatic transfers between your own asset accounts in the Credit Union. The terms and conditions of this disclosure only apply to those services and transfers which are EFTs as described above; they do not apply to other transactions which, although electronic in nature, do not constitute EFTs described in that section. G. Illegal Use of a Card or Other EFT Service. You understand and agree that EFT services, including, but not limited to the use of a Card, may not be used for any illegal transaction. You further understand and agree that illegal use of an EFT service will be deemed an action of default and/or breach of contract, and as a result your account and other related services may be terminated at the discretion of the Credit Union. 30

31 You further agree, should illegal use occur, to waive any right to sue the Credit Union for such illegal use or any activity directly or indirectly related to it, and, additionally, to indemnify and hold the Credit Union harmless from any suits or other legal action or liability directly or indirectly resulting from such illegal use. Internet gambling may be illegal in the jurisdiction in which you are located, including the United States and elsewhere. Display of a payment card logo by an online merchant does not mean that Internet gambling transactions are legal in the jurisdiction in which the you are located. The Credit Union may decline to authorize any transaction the Credit Union believes poses an undue risk of illegality or unlawfulness. The Credit Union will immediately report and comply fully with law enforcement agencies seeking to investigate illegal use of a Credit Union Card or other EFT service. H. Card Ownership. All ATM Cards, MasterCard Debit Cards, PINs, Online Banking and Mobile Banking Passwords, and Audio Teller PINs remain the property of the Credit Union and may be revoked or cancelled at any time without giving you prior notice. Your use of such services is a revocable privilege. Because we retain ownership of all ATM Cards, MasterCard Debit Cards, PINs, Online Banking and Mobile Banking Passwords, and Audio Teller PINs, we may, in our sole discretion, revoke your access to such privileges for repeated overdrafts, account misuse, loan delinquencies, and other activities deemed adverse to the Credit Union s interests. If this Agreement is terminated, you agree to surrender any Card(s) to us. I. PIN Secrecy and Member Responsibility. If we have issued a PIN or password to you, you agree to keep your PIN or password secret, and you also agree that you will not write any PIN on your ATM Card or Debit Card or on any item you keep with your cards. Unless you provide evidence to the contrary, the Credit Union will attribute all PIN-based transactions made on your accounts to your own activities. J. EFT Fees. We reserve the right to charge fees, which you agree to pay, for various EFT services. Refer to our Rate page and Fee Schedule for specific fees. We reserve the right to change such fees from time to time. We will give you at least 21 days advance written notice before imposing or increasing any such fees. When you use an ATM that is not owned by us, you may be charged a fee by the ATM operator and/or by an automated transfer network. We will separately publish a list of machines owned and operated by us from time to time. The number and location of ATMs is subject to change. K. MasterCard Fees. Purchases, cash advances and cash withdrawals made in foreign currencies will be debited from your account in U.S. dollars. The exchange rate used to convert foreign currency transactions to U.S. dollars is either a government-mandated exchange rate or a wholesale exchange rate and is selected by MasterCard. The rate MasterCard uses for a particular transaction is the rate MasterCard selects for the applicable currency on the day the transaction is 31

32 processed. This rate may differ from the rate applicable on the date the transaction occurred or was posted to your account. All MasterCard transactions occurring in foreign countries will be assessed a Foreign Transaction Fee, and all currency conversions for these foreign country transactions will be assessed an additional Foreign Currency Conversion Fee. Refer to our Rate page and Fee Schedule for specific amounts. L. Limitations on EFTs Completed at an ATM. You are limited to 10 ATM transactions during any 24- hour day (15 per day during the months of November and December). There are no limitations on the dollar amount of deposits or payment transactions you may make at any ATM during its 24-hour operating cycle. To protect against possible losses, use of your card at an ATM owned by us is subject to a daily cash withdrawal card limit. Because of the confidential nature of your daily cash withdrawal limit you will be notified separately in writing of that limit. You will not be allowed to withdraw more than your daily cash withdrawal limit from an ATM, or as part of a PIN-based transaction, during such a 24-hour cycle. While our system is online you will not be allowed to withdraw more than the verified balance of the account(s) and not more than $ while our system is off-line, reduced by the amount of any cash withdrawn during the online part of the cycle. Different ATMs dispense cash in differing multiples and minimum and/or maximum amounts depending on the brand and ownership of the machine. We reserve the right to change these limitations, and we will give you written notice of any such change at least 21 days in advance. You also have the right to require us to issue a lower daily cash withdrawal limit where we program our system so that no more than $50.00 or some other higher amount of cash can be obtained by use of your ATM Card during a single day. Please contact us if you want this option. M. Other EFT Limitations. As to transactions other than those made at an ATM, you are limited to 10 PIN based and 15 signature-based POS transactions per day (15 and 20 per day, respectively, during the months of November and December). You are limited to $5,000 in such transactions during any one day; however, except for this limitation, in general, there are no restrictions as to the dollar amount of any one EFT, although we may restrict your ability to make some or all types of EFTs when your account is overdrawn, or when legally permissible to do so. N. EFT Documentation and Transaction Receipts. If you make an electronic funds transfer at an ATM or Point of Sale (POS), a receipt detailing the transaction will be furnished to you at the time of the transaction, either automatically or upon request. If the machine fails to provide a receipt at that time, please contact us and we will send you a proper receipt promptly. If you have arranged to have direct deposits made to your account at least once every 60 days from the same person or company, the person or company making the deposit will tell you every time they send us the money. You can contact the Audio Teller, log onto Online 32

33 Banking, Mobile Banking, or call Member Services at to find out whether or not the deposit has been made. You will get a statement every month of each asset account to which you have authorized any EFT service. Periodic statements we send you on accounts that are subject to EFTs described above and transaction receipts are admissible evidence in resolving a dispute. O. Right to stop payments and procedure for doing so. If you have told us in advance to make regular payments out of your account, you can stop any of these payments. Here s how: Call Member Services at or write us at the address below in time for us to receive your request 3 business days or more before the scheduled payment. If you call, we may also require you to put your request in writing and send it to us within 14 days after you call. Upon the expiration of the 14 calendar days, we may disregard your verbal stop payment request if it has not been confirmed in writing. Send written requests to: Michigan First Credit Union, Attn: Administrative Support, Evergreen Road Lathrup Village, MI If these regular payments vary in amount, the person you are going to pay will tell you, 10 days before each payment, when it will be made and how much it will be. (You may choose instead to get this notice only when the payment would differ by more than a certain amount from the previous payment, or when the amount would fall outside certain limits that you set.) If you order us to stop one of these payments 3 business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages following a good faith attempt to reverse the transaction with the payee. P. Reversing EFTs. If an EFT authorized by you was a payment of $50.00 or more for goods or services, you have the right to request that we reverse such transfer and to re-credit your account with the full amount of the transfer if a. you tell us, within four calendar days after the date of the transfer, to make such a reversal, b. you notify us that you have made a good faith attempt to resolve your dispute with the third party involved, and c. you assure us that any returnable goods involved in the dispute will be returned. The Credit Union has the right to require that you submit your dispute to us in writing within 14 calendar days. If you do these things in writing, you MUST send the letter to the address listed above. If you phone us, you MUST call Member Services at If you tell us orally that you want such a transfer reversed, you MUST send us written notice, on a form we will provide you, to confirm your reversal request, your notice of attempted resolution of the dispute, and your assurance to return any returnable goods involved. You are required to get this notice letter back to us within 14 calendar days after the date of your oral request for reversal. We reserve the right to impose a reasonable charge for handling such reversal requests, 33

34 and to increase such charges thereafter. Should you fail to perform any of these steps, including the written confirmation letter, you will remain liable to the Credit Union for the EFT. Q. Confidentiality. We will disclose information to third parties about the EFTs you make: a. Where it is necessary for completing transfers, or b. In order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant, or c. In order to comply with government agency or court orders, or d. If you give us written permission. R. Errors or Questions. In case of error or questions about your EFTs: Telephone us or write us at the number or address listed above as soon as you can, if you think your statement or receipt is wrong or if you need more information about a transfer listed on the statement or receipt. We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared. a. Tell us your name and account number, if any. b. Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information. c. Tell us the dollar amount of the suspected error. If you tell us orally, we may require that you send us your complaint or question in writing within 10 business days (Monday through Friday, except designated holidays). We will determine whether an error occurred within 10 business days* after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days** to investigate your complaint or question. If we decide to do this, we will credit your account within 10 business days* for the amount you think is in error, so that you may have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account. We will tell you the results of our investigation within three business days after we finish our investigation. If we decide that there was no error, we will send you a written explanation. You may ask for copies of the documents that we used in our investigation * If you give notice of an error within 30 days after you make the first deposit to your account, we will have 20 business days instead of 10 business days. ** If you give notice of an error within 30 days after you make the first deposit to your account, notice of an error involving a point of sale transaction, or notice of an error involving a transaction initiated outside the U.S., its possessions and territories, we will have 90 days instead of 45 days to investigate. S. Consumer Liability. Tell us AT ONCE if you believe your ATM Card, Debit Card, Online Banking, 34

35 Mobile Banking, or Audio Teller PIN has been lost or stolen, or if you believe that an electronic fund transfer has been made without your permission using information from your check. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account (plus your maximum overdraft line of credit). If you tell us within 2 business days, you can lose no more than $50.00 if someone used your ATM Card, your Debit Card, your Online Banking/Mobile Banking PIN, or your Audio Teller PIN without your permission. If you do NOT tell us within 2 business days after you learn of the loss or theft of your ATM Card, your Debit Card, your Online Banking/ Mobile Banking PIN, or your Audio Teller PIN, and we can prove we could have stopped someone from using your ATM Card or your Audio Teller PIN without your permission if you had told us, you could lose as much as $500. Also, if your statement shows transfers that you did not make, including those made by card, code, or other means, tell us at once. If you do not tell us within 60 days after the statement was mailed to you, you may not get back any money you lost after the 60 days if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason (such as a long trip or a hospital stay) kept you from telling us, we may extend the time periods. If you believe your ATM Card, Audio Teller PIN, Online Banking or Mobile Banking PIN has been lost or stolen, or that someone has transferred or may transfer money from your account without your permission, call the Credit Union Member Services Team at: If you believe your MasterCard Debit Card or PIN has been lost or stolen, or that someone has transferred or may transfer money from your account without your permission after normal business hours call: a. Lost or Stolen ATM or Debit Card , or b. 24-Hour Credit Card Services for Lost or Stolen Credit Card You should also write IMMEDIATELY: Michigan First Credit Union, Attn: Branch Support, Evergreen Road Lathrup Village, MI T. Special Liability Protection Rules for MasterCard Debit Card. Unless you have failed to use reasonable care to safeguard your Debit Card from risk of loss or theft, or you have reported two or more incidents of unauthorized use to us in the 12 months immediately preceding any report of unauthorized use, or your account is not in good standing, you will not be liable for any unauthorized transactions made with your lost or stolen MasterCard Debit Card, when used for POS transactions (excluding transactions performed at an ATM). If your card or PIN was lost because you failed to use reasonable care to safeguard the card from the risk of loss or theft, or if you have reported two or more incidents of unauthorized use to us in the 12 months immediately preceding any report of unauthorized use, or if your account is not in good standing, these special rules do not apply, and your liability for the unauthorized use of your MasterCard Debit Card is addressed above. These special rules do not apply to 35

36 PIN-based transactions or transactions not processed by MasterCard. U. Our Liability for Failure to Make EFTs. If we do not complete an EFT as described above, to or from your accounts, on time, and in the correct amount according to our agreements with you, we will be liable for your losses or damages. However, there are some exceptions. We will not be liable for loss of a card that is retained or destroyed by an ATM or for the failure to complete a transfer under any of the following circumstances: a. If, through no fault of ours, you do not have enough money in your account to make the transfer; b. If there is not enough money in your account, in excess of amounts you have pledged to us as collateral for a loan, to make the transfer; c. If funds in your account are subject to garnishment or other legal process; d. If we have, because of your default on a loan, exercised our rights against the funds on deposit in an account; e. If the transfer would take the balance on your overdraft loan (if applicable) over the credit limit; f. If the ATM where you made the transfer did not have enough cash; g. If the ATM where you are making the transfer was not working properly and you knew about the breakdown when you started the transfer; h. If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions we have taken; i. If you operate the machine improperly; j. If your line of credit or any other obligation owing to us is delinquent. We will also be excused from such liability if you fail to observe the terms of this Agreement, or our account Agreements with you, which relate to such EFTs. V. Business Days. Our business days are as follows: Monday through Friday, except designated holidays. If a designated holiday falls on a Sunday, the next Monday is not a business day, unless we are open for business. W. Regulatory Agency. This Agreement and the EFT services provided hereunder are governed in part by federal and Michigan law. You may notify the Federal Trade Commission or the Office of Financial and Insurance Regulation of the State of Michigan of any violation of law at: Federal Trade Commission Electronic Funds Transfers Washington, D.C State of Michigan Office of Financial and Insurance Regulation Box Lansing, MI X. Amendments/Termination. We reserve the right to amend this section of the Agreement at any time. If we do so, we will give you such advance 36

37 notice thereof as we deem to be reasonable under the circumstances; however, in the specific cases mentioned earlier, we will give you at least 21 days advance written notice. You agree that we may amend or modify this EFT disclosure without notice if an immediate change is necessary to maintain or restore the security of our account arrangements or of any account. We also reserve the right to terminate this disclosure (Agreement) by sending a notice of such termination by first class mail to your last known address on our records, which notice shall be effective when mailed. Y. Responsibility for Overdraft. If you use your Card for a transaction that would cause your available account balance to go below zero or make an Audio Teller, Online Banking, Mobile Banking or Online Bill Pay transaction that would cause your account balance to go below zero, we will not be required (unless we have contracted to the contrary) to complete any such transaction, but if we do, the overdrawn amount is due and payable the moment you receive your money, and you agree to pay the full amount of it to us together with an overdrawn account charge as set forth in the Rate page and Fees Schedule. You also authorize us, in such a case, to apply from any other shares or deposits you may have in the credit union any amount necessary to pay such overdraft and fees. If the overdraft is created in your Checking Account and you have the appropriate contractual arrangements in place, (1) a transfer will be made from your other share account(s) to cover the overdraft in accordance with your Checking Account Agreement with us, or (2) if you have an overdraft line of credit, an advance on your line of credit will be made to cover the overdraft, and you will pay that advance in accordance with the conditions of your line of credit plan, depending upon which form of overdraft protection you have selected. If there are not sufficient funds to make a transfer according to (1) or (2) of this paragraph, or if you have no overdraft protection for your checking account, then such overdraft will be paid to us as provided in the first sentence of this section. Z. Crediting of Deposits and Payments. Deposits or payments made in an ATM or using EZ Scan&Deposit, whether in cash, check, draft or money order, are subject to verification, and the funds of such deposits and payments to share, checking or loan accounts may be held until they can be collected from the machine, verified and entered into our accounting systems. Further delay may occur if the transaction is made on or immediately prior to a Saturday, Sunday or holiday on which we are closed. If you place a check, draft or money order in the machine as a deposit or payment, it is subject to collection in accordance with your account agreement with Regulation CC and us. AA. Warranty. Except where expressly contained herein, the Credit Union makes no warranties, expressed or implied, pertaining to the use of any EFT services. 37

38 XII. Funds Availability Policy (Regulation CC) The following information describes the Credit Union s policy of holding deposited items in a checking account (also known as a transaction account ) before funds are made available to you for withdrawal. This is what is called a Funds Availability Policy. Generally, transaction accounts are accounts which would permit an unlimited number of payments by check, telephone, preauthorized transfers, or other order to third persons, or other accounts you may have with us. Funds availability policies for accounts that are not transaction accounts have been described elsewhere in this Agreement. Nothing in this Policy requires the Credit Union to accept any item for deposit. At the Credit Union s discretion, we may (i) refuse to accept any item for deposit; or (ii) agree to accept an item for deposit only into a non-transaction account. Our decision to make funds available to you for withdrawal does not relieve you of liability if an item is returned to us unpaid after we have made funds available to you. You remain responsible for all items deposited into your accounts, including any losses incurred as a result of an item you deposit being returned to us unpaid. A. Generally. In general, our policy is to make funds from your deposits, including electronic deposits, made to your transaction accounts available to you on the day we receive your deposit. At that time, you can withdraw the funds in cash and we will use the funds to pay checks that you have written. For determining the availability of your deposits, every day is a business day, except Saturdays, Sundays, and Credit Unionobserved holidays. If you make a deposit to one of our employees before our branch closes on a business day we are open, we will consider that day to be the day of your deposit. However, if you make a deposit after the branch closes, or through a channel other than to one of our employees, or on a day we are not open, we will consider that the deposit was made on the next business day we are open. The length of the delay varies depending on the type of deposit and is explained below. B. Longer Delays May Apply. In some cases, we will not make all of the funds that you deposit by check available to you on the day of your deposit. If the decision to delay the availability is made, such as in the case of check deposits made electronically and not made to one of our employees, funds may not be available until the second business day after the day of your deposit. However, the first $ of your deposits will be available on the first business day following the day of your deposit. If your deposit is made directly to one of our employees, and if we are not going to make all of the funds from your deposit available on the day of your deposit, we will notify you at the time you make your deposit. We will also tell you when the funds will be available. If we decide to take this action after you have left the premises, we will mail you the notice by the day after we receive your deposit. If you will need the funds from a deposit right away, 38

39 you should ask us when the funds will be available before you complete the deposit. We cannot return funds to you once an item has been deposited into the Credit Union. In addition, funds you deposit by check may be delayed for a longer period under the following circumstances: a. We believe a check you deposit will not be paid. b. You deposit checks totaling more than $5,000 in any one day. c. You re-deposit a check that has been returned unpaid. d. You have overdrawn your account repeatedly in the last six months. e. There is an emergency, such as failure of communications or computer equipment. We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available no later than the seventh business day after the day of your deposit. C. Deposits at Automated Teller Machines 1. Credit Union Owned and Operated ATMs. Funds from any deposits (cash or checks) made at ATMs that we own or operate will not be available until the second business day after the day your deposit is made. The first $200 of checks deposited at one of these machines will be made available on the next business day your deposit is made. On-us checks and the first $5,000 of US Treasury Checks will also be made available the next business day. 2. If you make a deposit at an ATM we own or operate on a Saturday, Sunday or a Federal holiday, we may consider the deposit made on the next business day we are open. 3. Other ATMs. Funds from any deposits (cash or checks) made at automated teller machines (ATMs) we do not own or operate may not be available until the fifth business day after the day of your deposit. All ATMs that we own or operate are identified as our machines. D. Holds on Other Funds 1. Check Cashing. If we cash a check for you that is drawn on another financial institution, we may withhold the availability of a corresponding amount of funds that are already in your account. Those funds will be available at the time funds from the check we cashed would have been available had you deposited it. 2. Other Account. If we accept for deposit a check that is drawn on another financial institution, we may make funds from the deposit available for withdrawal immediately, but delay your ability to withdraw a corresponding amount of funds that you have on deposit in another account with us. 39

40 The funds in the other account would then not be available for withdrawal until the time periods that are described elsewhere in this disclosure. E. Special Rules for New Accounts. If you are a new member, the following special rules will apply during the first 30 days your account is open. Funds from electronic direct deposit to your account will be available on the day we receive the deposit. Funds from deposits of cash, wire transfers and the first $5,000 of a day s total deposits of cashier s, certified, teller s, traveler s, and federal, state, and local government checks payable to you will be available on the first business day after the day of deposit if the deposit meets certain conditions of collectability. For example, the checks must be available to you. The excess over $5,000 will be available on the seventh Business Day after the day of your deposit. If your deposit of these checks (other than U.S. Treasury checks) is not made in person to one of our employees, the first $5,000 will not be available until the second Business Day after the day of your deposit. Funds from all other check deposits will be available in accordance with the previously stated availability schedule. F. Questions. In case you have any questions regarding our Funds Availability Policy, please contact Member Services at XIII. Wire Transfer Notification (Uniform Commercial Code Article 4A) The following rules shall apply to all wire transfers services provided by the Credit Union. Michigan First Credit Union may accept, on your behalf, payments to your account that have been submitted by Fedwire. Your rights and obligations with respect to such transfers shall be governed and construed in accordance with Regulation J, Subpart B-Funds Transfers Through Fedwire. These regulations and state law are applicable to funds transfers involving your account. If you give us a payment order that identifies a beneficiary (the person to whom you are wiring funds) by name and account or some other identifying number (such as a Social Security, Taxpayer I.D. or drivers license number), we may pay the beneficiary on the basis of the number provided to us by you and consider that number to be proper identification. This will be true even if the number you provided to us identifies a person different from the named beneficiary, unless otherwise provided by law or regulation. If you give us a payment order that identifies the beneficiary s financial institution in the funds transfer by name and Routing and Transit ( R/T ) or other identifying number, we, as well as the receiving financial institution, may rely on the number provided to us by you as the proper identification. This will be true even if the number provided identifies a financial institution that is different from the named financial institution, unless otherwise provided by law or regulation. Therefore, it is in your best interest to contact the receiving institution to acquire the appropriate wire transfer instructions so 40

41 that you may feel confident that your money will arrive safely. You, the member, are ultimately responsible for providing accurate information regarding funds transfers and are consequently liable for any losses or expenses should an error occur. You may not be provided with separate notification each time we receive a wire transfer into your account. We will provide you with notification of an incoming wire transfer as part of your periodic statement. In the event we accept payments to your account through one or more Automated Clearing Houses ( ACH ), the operating rules of the National Automated Clearing House Association ( NACHA ) will be applicable to ACH transactions involving your account. These rules do not require that we provide you with next day notice of receipt of an ACH item. Therefore, we will provide you with notification of the receipt of these items as part of your periodic statement. In addition, if we are ever obligated to pay interest on the amount of the transfer, you will be paid interest on a daily basis equal to the current dividend rate that is otherwise applicable to the account from which the funds transfer should have occurred. In the event we are ever liable to you for damages due to a transfer, your damages will be limited to actual damages only. We will not be responsible for incidental or consequential damages, court costs or attorneys fees, unless otherwise provided by law or regulation. We may accept, on your behalf, payments to your account that have been transmitted through one or more Automated Clearing Houses and that are not subject to the Electronic Funds Transfer Act ( Regulation E ). Your rights and obligations with respect to such payments shall be governed and construed in accordance with the applicable Federal Reserve Bank Operating Circular. Whenever an ACH is used as part of a transaction, its rules will govern that part of the transaction. Where none of the above stated rules apply, the transactions contemplated by this Agreement shall be governed by the laws of the State of Michigan, including Article 4A of the Michigan Uniform Commercial Code. Credit given by us to you, with respect to an ACH entry, is provisional until we receive final settlement for the credit entry through a Federal Reserve Bank. If we do not receive final settlement, you are hereby notified that we are entitled to a refund of the amount credited to you in connection with the credit entry. Moreover, you are hereby notified that the party making payment to you (originator) shall not be deemed to have paid you the amount of the credit entry. XIV. Privacy We take the Privacy of our members and their information very seriously. Please refer to the Privacy Policy, included at the end of this Account Agreement. 41

42 Michigan First Credit Union Privacy Policy Facts What does Michigan First Credit Union do with your personal information? Why? 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. What? 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 account balances Payment history and transaction or loss history Account transactions and credit card or other debt When you are no longer a member, we continue to share your information as described in this notice. How? 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 Michigan First Credit Union chooses to share; and whether you can limit 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 Michigan First 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 companies Yes No For our affiliates everyday business purposes information about your transactions and experiences For our affiliates everyday business purposes information about your credit worthiness For non-affiliates to market to you No No No We don t share We don t share We don t share Questions? Call or go to MichiganFirst.com. (Continued)

43 What we do How does Michigan First Credit Union collect my personal information? We collect your personal information, for example, when you: Open an account or apply for a loan Use your credit or debit card Give us your employment history Give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies Why can t I limit sharing? 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 non-affiliates to market to you When you are no longer a member, we continue to share your information as described in this notice. Definitions Affiliates Companies related by common ownership or control. They can be financial and nonfinancial companies. Michigan First Credit Union has one affiliate Michigan First Mortgage. Non-affiliates Companies not related by common ownership or control. They can be financial and nonfinancial companies. Michigan First Credit Union does not share with non-affiliates so they can market to you. Joint marketing A formal agreement between non-affiliated companies that together market products or services to you. Our joint marketing partners may include insurance companies, securities brokers, and membership rewards providers. MichiganFirst.com /31/2014