Credit Union Certificate of Deposit Account Agreement. Multistate Completion Guide for the CDAACU Form Series

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1 Credit Union Certificate of Deposit Account Agreement Multistate Completion Guide for the CDAACU Form Series

2 Table of Contents INTRODUCTION... 1 Warranties and Limitations... 3 Warranties and Limitations for this Guide... 3 Warranties and Limitations for the Form(s) That Are the Subject of this Guide... 4 Other Important Terms for the Use of this Guide... 4 Certificate of Deposit Account Agreement (CDAACU)... 5 Part A - Certificate... 8 Part B - Additional Terms and Disclosures... 8 Part C - Account Ownership... 9 Part D - Backup Withholding Certification... 9 Part E - Endorsements/Signatures... 9 Form PM-CDAACU 4/2009 ii

3 INTRODUCTION USE OF THIS GUIDE. Use of this guide will constitute an express acceptance of all the terms set forth in the Introduction, Warranties and Limitations and Other Important Terms for the Use of this Guide sections of this guide. Forms and Purpose. This guide is intended to assist credit unions that have purchased any of the following copyrighted Wolters Kluwer Financial Services, Inc., Term Share Certificate and Certificate of Deposit forms. CDAACUDIV CDAACUDIVNPD CDAACUDIV-[state abbreviation] CDAACUDIVLAZ CDAACUDLZNPD CDAACUDVLZ [state abbreviation] CDAACUDIV-WS CDAACUDNPDWS CDAACUDWS-[state abbreviation] CDAACUINT CDAACUINTNPD CDAACUINT-[state abbreviation] CDAACUINTLAZ CDAACUILZNPD CDAACUINLZ [state abbreviation] CDAACUINT-WS CDAACUINPDWS CDAACUIWS-[state abbreviation] Usage. The forms listed above should only be used for the purposes for which they are intended. These forms are intended for use as combination (a) certificates of deposit or term share certificates, (b) account agreements, (c) Truth in Savings disclosures, (d) backup withholding certifications, and (e) deposit penalty notices. The first nine listed forms should be used only by credit unions that pay dividends. The second nine listed forms should be used only by credit unions that pay interest. These forms consist of a CERTIFICATE page 1, a CERTIFICATE COPY page 1, and a page 2. The CERTIFICATE page 1 and CERTIFICATE COPY page 1 are similar, but not identical. The CERTIFICATE page 1 has no place for signing the Backup Withholding Certification and has a place for Endorsement when, but only when, withdrawal is requested. The CERTIFICATE COPY page 1 has a place for signing the Backup Withholding Certification and has a place for Signatures at the time of issuance agreeing to the terms. At the time of issuance the owners should be given (a) the CERTIFICATE page 1 together with a page 2, and (b) a CERTIFICATE COPY page 1 together with a page 2. A CERTIFICATE COPY page 1 together with a page 2 should be retained by the credit union. Form PM-CDAACU 4/2009 1

4 Format. In this guide, we attempt to answer the most common questions and problems you might confront in completing these forms. This guide is not intended to address state specific laws. The pages of the CDAACUDIV are copied in this guide. This form is used only for illustrative purposes - the forms for your state may differ, especially in the ownership and beneficiary designation areas. The explanatory text begins with a simple statement of what should ordinarily be filled in on the line being discussed. In some cases, this simple explanation may be followed by a more detailed explanation and cross-references to other portions of the form which need to be considered with the item under discussion. Form Specific. This guide is written solely for use with the above referenced forms. The existence of varying state laws means that some of the terms discussed may not be applicable in your state. Additionally, there may be provisions in the forms developed for your state which are not discussed in this guide. Feel free to call us at our toll free number ( ) if you need information about specific sections. This guide is not intended to be used with any other forms. Private Attorneys. In developing this guide, the forms to which it pertains, and all of our other technical forms, we have interpreted many statutes, cases and regulations. We strongly encourage you to seek the advice of your own attorney concerning the utility and legality of this guide, the forms to which it pertains, and all of our other technical forms. Any legal references in this guide are merely to assist you and your counsel in your review of our forms and this guide. If you or your counsel s interpretations are contrary to ours, you should, of course, follow your own interpretations in using and completing the forms. Comments. We encourage you to comment on and criticize this guide, the forms to which it pertains, and all of our other forms. We make every effort to keep up with statutes, case law and financial institution practices, but the industry is constantly evolving and our effort is often assisted by our customers. We especially appreciate copies of any statutes or cases which you might feel are pertinent. Please submit your comments in writing either to your Sales Representative or to: Compliance Services Wolters Kluwer Financial Services 6815 Saukview Drive P.O. Box 1457 St. Cloud, MN Form PM-CDAACU 4/2009 2

5 Warranties and Limitations Warranties and Limitations for this Guide WARRANTY DISCLAIMER. THIS GUIDE (INCLUDING ANY UPDATES TO IT), IS PROVIDED TO YOU AS IS AND WITH ALL FAULTS. WOLTERS KLUWER FINANCIAL SERVICES (WKFS) DOES NOT EXPRESSLY OR IMPLIEDLY WARRANT THE UTILITY OF THIS GUIDE OR THE INFORMATION THAT IT CONTAINS. THE USER OF THIS GUIDE MUST MAKE HIS/HER OWN INDEPENDENT JUDGMENT ON THESE ITEMS. WKFS MAKES NO WARRANTY, EXPRESS, IMPLIED, BY DESCRIPTION, BY SAMPLE OR OTHERWISE, AND IN PARTICULAR WITHOUT LIMITATION, MAKES NO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS OF PURPOSE REGARDING THIS GUIDE. WKFS employees, sales representatives, and other WKFS agents and representatives do not have authority to create any warranty obligations regarding this guide or to modify the above Warranty Disclaimer. Any such created warranty obligations or modifications will not be effective unless they are in writing and signed by the President or the Chief Financial Officer of WKFS. LIMITATION OF LIABILITY AND REMEDIES. WKFS's liability, whether in contract, warranty, in tort, or otherwise arising in any way in connection with the sale or licensing of this guide (including any updates to it) SHALL NOT INCLUDE LIABILITY FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOST PROFITS, LOSS OR EXPENSE. WKFS's liability for any damages based on the providing, selling, licensing or using of this guide (including any updates to it), regardless of the form of action, shall not be more than the amount you paid for it or ten dollars, whichever is less. TIME LIMIT. No action, regardless of form, arising out of the providing, selling, licensing or using of this guide, may be brought by either party more than one (1) year after the cause of action has occurred, except that this limitation will not apply to an action for non-payment brought by WKFS. NO SUBSTITUTE FOR LEGAL COUNSEL. Before using this guide, you are advised to have your attorney review it to determine its legal sufficiency for your purposes. You acknowledge that WKFS is not authorized to practice law, nor may any of WKFS's officers, employees or agents provide legal counsel or accounting advice to you or your institution. Thus, any questions requiring legal or accounting advice must be directed to your institution's attorney or accounting professional for whom WKFS has no obligation or liability. The following notice is required by law: WOLTERS KLUWER FINANCIAL SERVICES PRODUCTS AND SERVICES ARE NOT A SUBSTITUTE FOR THE ADVICE OF AN ATTORNEY Form PM-CDAACU 4/2009 3

6 Warranties and Limitations for the Form(s) That Are the Subject of this Guide The form(s) that are the subject of this guide are covered by an express warranty as follows: Preprinted Form(s). If you received the form(s) in preprinted format, they are covered by the Compliance Warranty for Lending, Deposit, and Retirement Plan Documents, as it may be updated or amended from time to time. The current Compliance Warranty is located on WKFS's internet website: Refer to the website for terms of the warranty. WKFS Software. If you produce the form(s) using WKFS document generating software, they are covered by the express warranty contained in your WKFS software license agreement. Refer to your license agreement for terms of the warranty. Electronic Format. If you received the form(s) in an electronic format ("EForms" or other electronic images) through a license with WKFS or with a third party provider, they are covered by the express warranty contained in your license agreement with WKFS or the third party provider. Refer to your license agreement for terms of the warranty. Other Important Terms for the Use of this Guide APPLICABLE LAW. The terms under which this guide is provided, sold, licensed or used will be governed by the laws of the State of Minnesota without regard to its conflict of laws provisions or those of any other state. Any action relating in any way to this guide will be exclusively venued in a court of competent jurisdiction in the State of Minnesota. COPYRIGHT. No part of this guide or any of WKFS's copyrighted forms may be reproduced by any person, by any means, or for any reason, without WKFS's express written permission. WKFS vigorously enforces its copyright interests and you should be aware that there are criminal penalties as well as civil penalties for violation of copyright law. For additional information about reproducing, licensing, or purchasing this guide, please contact us at: Wolters Kluwer Financial Services North American Law Department 6815 Saukview Drive P.O. Box 1457 St. Cloud, Minnesota Telephone: Form PM-CDAACU 4/2009 4

7 Certificate of Deposit Account Agreement (CDAACU) Form PM-CDAACU 4/2009 5

8 Form PM-CDAACU 4/2009 6

9 Form PM-CDAACU 4/2009 7

10 Part A - Certificate A-1 Fill in the date the Certificate is issued. A-2 Fill in the term of the Certificate. A-3 Fill in the taxpayer identification number of an owner of the Certificate. This taxpayer identification number should be the same as the taxpayer identification number in D-1. A-4 Fill in the Certificate Number. A-5 Fill in the Member Number. A-6 Fill in the Account Number. A-7 Fill in the original amount of the Certificate using words instead of numerals. A-8 Fill in the original amount of the Certificate using numerals instead of words. A-9 Fill in the name and address of each owner of the Certificate. A-10 Fill in the name and address of the credit union. You may also wish to include your logo here. A-11 Fill in the name of the credit union employee issuing the Certificate or have the credit union employee issuing the Certificate sign here. A-12 If the credit union is not federally insured the document must so disclose. This disclosure can be placed here. The language we suggest is as follows: This institution is not federally insured, and if the institution fails, the federal government does not guarantee that depositors will get back their money. Part B - Additional Terms and Disclosures B-1 Fill in the date the Certificate matures. B-2 Fill in the dividend rate. B-3 Fill in the annual percentage yield. B-4 Describe your policy with respect to compounding dividends here. B-5 Describe your policy with respect to crediting dividends here. B-6 Check this box if the annual percentage yield assumes that dividends remain in the account until maturity and a withdrawal of dividends will reduce earnings. B-7 Check this box if accrued dividends will not be paid if the account is closed before the dividends are credited. B-8 Fill in the NUMBER OF ENDORSEMENTS needed for withdrawal or any other purpose. B-9 Fill in any minimum amount of funds required to open the account. B-10 Check this box if any minimum amount of funds required to open the account must be maintained as a minimum balance on a daily basis to earn the annual percentage yield disclosed. Form PM-CDAACU 4/2009 8

11 B-11 Check the appropriate box and describe your policy with respect to the withdrawal of dividends. B-12 Describe the amount of any early withdrawal penalty. B-13 If this account will not automatically renew, check the Single Maturity box and check the appropriate box to indicate whether dividends will or will not accrue after maturity. B-14 If this account will automatically renew, check the Automatic Renewal box and check the appropriate box to indicate whether dividends will or will not accrue after final maturity. Part C - Account Ownership C-1 Check the appropriate box and complete as needed to indicate the type of ownership. C-2 If it s a Revocable Trust or Pay on Death Designation account, check the appropriate box to indicate which it is. C-3 If it s a Revocable Trust or Pay on Death Designation account, fill in the beneficiaries names and addresses here. Part D - Backup Withholding Certification D-1 Fill in the taxpayer identification number of an owner of the certificate. This taxpayer identification number should be the same as the taxpayer identification number in A-3. D-2 Check this box to certify that the taxpayer identification number is correct. D-3 Check this box to certify that the owner whose taxpayer identification number is stated is not subject to backup withholding. D-4 Check this box to certify that the owner whose taxpayer identification number is stated is an exempt recipient under the Internal Revenue Service Regulations. D-5 (CERTIFICATE COPY page 1 only) The owner whose taxpayer identification number is stated should sign here. D-6 (CERTIFICATE COPY page 1 only) Fill in the date of signing here. Part E - Endorsements/Signatures E-1 (CERTIFICATE page 1 only) The required number of owners should sign beneath ENDORSEMENTS-SIGN ONLY WHEN YOU REQUEST WITHDRAWAL when, but only when, withdrawal is requested. E-2 (CERTIFICATE COPY page 1 only) All owners should sign beneath SIGNATURES: I AGREE TO THE TERMS STATED ON PAGE ONE AND PAGE TWO at the time the Certificate is issued. Form PM-CDAACU 4/2009 9

12 Form PM-CDAACU 4/ Wolters Kluwer Financial Services Form PM-CDAACU 4/2009

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