Business Membership and Account Agreement

Business Membership and Account Agreement 253.383.2016 800.562.8130 soundcu.com

TABLE OF CONTENTS I. MEMBERSHIP AND ACCOUNTS 1. Membership Eligibility 2. Individual Business Accounts 3. Accounts of Business Organizations 4. Certificate of Authority 5. Deposit Requirements 6. Electronic Check Conversions 7. Account Access 8. Account Rates and Fees 9. Transaction Limitations 10. Overdrafts 11. Postdated and Stale Dated Items 12. Stop Payment Orders 13. Lost Items 14. Credit Union s Liability for Errors 15. Credit Union Lien and Security Interest 16. Legal Process 17. Notices 18. Taxpayer Identification Numbers (TIN) and Backup Withholding 19. Statements 20. Termination of Account 21. Termination of Membership 22. Special Account Instructions 23. Severability 24. Enforcement 25. Governing Law II. III. FUNDS AVAILABILITY POLICY 1. General Policy 2. Reservation of Right to Hold 3. Holds on Other Funds 4. Longer Delays May Apply 5. Night Deposit 6. Special Rules for New Accounts ELECTRONIC FUNDS TRANSFER AGREEMENT AND DISCLOSURES 1. Services 2. Service Limitations 3. Conditions of Card Use 4. Authorized Users 5. Member Liability 6. Fees and Charges 7. Right to Receive Documentation of Transfers 8. Account Information Disclosure 9. Credit Union Liability for Failure to Make Transfers 10. Termination of Electronic Funds Transfer Services 11. Notices 12. Enforcement

SOUND CREDIT UNION BUSINESS MEMBERSHIP AND ACCOUNT AGREEMENT This Agreement is the contract of deposit, which covers your and our rights and responsibilities concerning Business Membership and Account(s) offered to you. In this Agreement, the words you and yours mean anyone who signs the Business Account Card or Account Change Card ( Account Card ). The words we, us, and our mean Sound Credit Union ( Credit Union ). The word account means any one or more accounts you have with the Credit Union. The classification and form of ownership of your accounts are designated on your Account Card. By signing the Account Card that is a part of the Agreement, each of you agree to the terms and conditions in this Agreement, including the Funds Availability Policy and Electronic Funds Transfer Agreement, Rate and Fee Schedule, and Privacy Policy accompanying this Agreement, any account receipt, the Credit Union s Bylaws and policies, and any amendments which collectively govern your Membership and Accounts. You agree that additional accounts and services you request in the future will be governed by this Agreement, as amended from time to time. I. MEMBERSHIP AND ACCOUNTS 1. Membership Eligibility. To be eligible for membership in the Credit Union you must be an individual or entity qualifying within the Credit Union s field of membership and must satisfy the membership qualifications as required by the Credit Union s Bylaws. You authorize us to check your account, credit and employment history, and obtain a credit report from third parties, including credit reporting agencies, to verify your eligibility for accounts and services we may offer. 2. Individual Business Accounts. An individual business account is an account owned by one depositor, including any individual, sole proprietor qualified for Credit Union membership. If the account is an individual account, the interest of a deceased individual owner will pass, subject to applicable law, to the descendant s estate. 3. Accounts of Business Organizations. You must designate on the Account Card who is authorized to act on behalf of the Account Owner. You agree to notify the Credit Union of any change in authority. The Credit Union may rely on the written authorization until such time as the Credit Union is informed of changes in writing and has had a reasonable time to act upon such notice. The Credit Union may require that third party checks payable to a club or association may not be cashed, but must be deposited to the account. The Credit Union shall have no notice of any breach of fiduciary duties arising from a transaction by any agent of the account owner, unless the Credit Union has actual notice of any wrongdoing. 4. Certificate of Authority. a. Name. The Account Owner shown on the front of the Account Card is the complete and correct name of the Account Owner. b. Authorized Signers. The listed officers, authorized agents, or trustees, as applicable of the Account Owner presently occupy the positions shown on the front side and are authorized to transact business on behalf of the Account Owner. c. Authority. (i) The Account Owner and the individuals signing on the Account Card certify and agree that the Account Owner s accounts will be governed by the terms set forth in this Agreement, as amended from time to time. (ii) The Credit Union is directed to accept and pay without further inquiry any item, bearing any one of the signatures indicated on the account card, drawn against the Account Owner s account with the Credit Union. (iii) Account Owner agrees that any one Authorized Signer is expressly authorized to cash, deposit, endorse, or negotiate all checks and other items payable to Account Owner; to receive cash back on behalf of Account Owner; to request and receive a Visa check card for use on behalf of Account Owner; and to execute such other agreements and to perform such other acts as they deem reasonably necessary to carry out the provisions of this Agreement. Credit Union has no obligation to inform Account Owner of any such transactions, irrespective of the amount or frequency of such transactions. (iv) The authority given to the Authorized Signers shall remain in full force until written notice of revocation is delivered to and received by the Credit Union. Any such notice shall not affect any items in process at the time notice is given. 1

An authorized officer, trustee, or agent of the Account Owner will notify the Credit Union of any change in the Account Owner s composition, assumed business names, or any aspect of the entity affecting the deposit relationship between the Account Owner and the Credit Union before any such change occurs. The Account Owner agrees that the Credit Union shall not be liable for any losses due to the Account Owner s failure to notify the Credit Union of such changes. 5. Deposit Requirements. Funds may be deposited to any account in any manner approved by us in accordance with the requirements set forth on the Rate and Fee Schedule. All accounts are nonassignable and nonnegotiable to third parties. Certificate Accounts are governed by the terms of this Agreement and the terms and disclosures on your Certificate Account Receipt for each account, which is incorporated by this reference. You agree not to deposit any substitute check or similar item that you have created, or for which no financial institution has provided any substitute check warranties and indemnity. If you do so, you agree to indemnify the Credit Union for all losses the Credit Union incurs in connection with the substitute check or item. You agree not to deposit any substitute check without our consent. a. Endorsements. You authorize us to accept transfers, checks, drafts, and other items for deposit if they are made payable to, or to the order of one or more owners even if they are not endorsed by all payees. You authorize us, in our discretion, to supply missing endorsements if we choose. When you deposit items to your account, you warrant that all prior endorsements are genuine. We may require an endorsement on third party checks presented for deposit either in person or by comparison with member signature files. If an insurance, government, and certain other checks or drafts require an endorsement as set forth on the back of the check, the Credit Union may require such endorsement. Endorsements must be placed on the back of the check within 1.5 inches from the top edge. While we may accept endorsements outside this space, if any such endorsement or other markings you or any prior endorser make on the check cause any delay or error in processing the item for payment, you will be responsible for any loss we incur due to the delay or error. b. Collection of Items. We are not responsible beyond the exercise of ordinary care for deposit or collection items. Deposits made by mail or at an unstaffed facility are not our responsibility until we receive them. We are not liable for the negligence of any correspondent or for loss in transit. We may send any item for collection. We will handle items drawn on an institution located outside the United States on a collection basis only. You waive any notice of nonpayment, dishonor, or protest regarding any items we purchase or receive for credit or for collection to your account. c. Final Payment. All items or Automated Clearing House ( ACH ) transfers credited to your account are provisional until we receive final payment. If final payment is not received, we may charge your account for the amount of those items or ACH transfers and impose a return charge on your account. After we have received final payment, we refer to these deposits as collected items. If we incur any fee to collect any item, we may charge such fee to your account. We reserve the right to refuse or to return any item or funds transfer. We may charge your account for items returned unpaid, regardless of whether funds were available to you. d. Direct Deposits. We may offer preauthorized deposits (e.g., payroll checks, Social Security or retirement checks, or other government checks) or transfers from other accounts. You authorize each direct deposit by completing a separate authorization form. You must notify us at least thirty (30) days in advance to cancel or change a direct deposit or transfer option. Upon a bankruptcy filing, if you fail to cancel an authorization, you instruct your employer and us to make and apply direct deposits in accordance with your authorization on file with us. If we are required to reimburse the U.S. Government for any benefit payment directly deposited into your account for any reason, you agree we may deduct the amount returned from any of your accounts, unless prohibited by law. e. Crediting of Deposits. Generally, deposits made on Saturdays, Sundays, and Credit Union holidays will be credited to your account on the next business day. If we accept deposits on Saturdays at a branch location, we will credit your account that day. Ask for our current deposit cutoff time. Deposits we receive at unstaffed facilities, such as night depositories, will be credited on the day we remove and process such funds. Funds will be credited to your account when we receive final payment. 6. Electronic Check Conversions. a. Electronic Checks. If you authorize a merchant to electronically debit your checking account using the routing, account, and serial number of your check to initiate the transfer, whether the check is blank, partially, or fully completed and signed, such 2

authorization is an electronic check conversion. An electronic check conversion is an electronic funds transfer ( EFT ) subject to terms in Section III. Electronic Funds Transfer Agreement and Disclosures. You authorize us to honor any electronic check conversion from your checking account just the same as a regular written check. b. Electronic Represented Checks. If you write a check on an account that we return unpaid because of insufficient or uncollected funds, the payee or any subsequent holder of the check may re-present the check to us, through an electronic instruction ( Electronic Re-Presented Check ) to charge your account for the amount of the check. If we receive an electronic re-presented check, we will pay or return the electronic re-presented check as if the original paper check was presented to us. Any collection fee you authorize the merchant to debit from your account is an electronic funds transfer subject to the terms of Section III. Electronic Funds Transfer Agreement and Disclosures. If you want to reverse an electronic re-presented check, you must give us an affidavit within fifteen (15) days after we send or make available to you the periodic statement that reflects payment of that electronic re-presented check. In your affidavit, you must declare and swear under oath that the electronic re-presented check was ineligible or unauthorized. If we receive proper notice or affidavit from you within the fifteen (15) day period, we will credit your account with the amount of the charge. If you wish to stop payment of any electronic re-presented check, you must follow the procedures contained in this Agreement for stopping payment of checks, not the procedures for stopping payment on electronic loan or bill payments. If you ask us to request the depositor s bank to send us the original paper check or copy of the paper check, and we provide it to you, you agree that you will not seek to have your account recredited due to a prior stop payment order or if the item is otherwise ineligible for collection. 7. Account Access. a. Authorized Signature. In order to access any account, the Credit Union must have an authorized signature of all Authorized Signers on the Account Card. The Credit Union is authorized to recognize your signature, but will not be liable for refusing to honor any item or instruction of yours if it believes in good faith that the signature on such item or instruction is not genuine. If you have authorized the use of a facsimile signature, the Credit Union may honor any draft that appears to bear your facsimile signature even if it was made by an unauthorized person. If you give your account number to a third person, you authorize us to honor transactions initiated by the third person even if you did not specifically authorize a particular transaction. b. Access Options. You may make withdrawals or transfers from your account in any manner which is permitted by the Credit Union (i.e., check, automated teller machine (ATM), debit card, in person, by mail, automatic transfer, telephone, or Online Banking). If the Credit Union accepts any check or draft that is not drawn on a form provided by the Credit Union, you will be responsible for any loss incurred by the Credit Union for handling the draft. The Credit Union may return as unpaid any check that is not drawn in the form provided by the Credit Union. c. ACH and Wire Transfers. If offered, you may initiate or receive credits or debits to your account via wire transfer or ACH ( Automated Clearing House ) transfer. You agree that if you receive funds by a wire or ACH transfer, the Credit Union is not required to notify you at the time the funds are received. Instead, the transfer will be shown on your periodic statement. The Credit Union may provisionally credit your account for an ACH transfer before it receives final settlement for the transfer. You agree that if the Credit Union does not receive final settlement for a transfer, it may reverse the provisional credit to your account, or you will refund the amount to the Credit Union. If an ACH or wire transfer is converted to or from a foreign currency, you assume all risks associated with the foreign exchange conversion, and agree that any loss resulting from any foreign exchange conversion will be allocated to you. When you initiate a wire transfer, you may identify either the recipient or any financial institution by name and by account or identifying number. The Credit Union (and other institutions) may rely on the account or other identifying number you give as the proper identification number, even if it identifies a different party or institution. Wire transfers are governed by Federal Reserve Regulation J if the transfer is cleared through the Federal Reserve. ACH transactions are governed by the rules of the National Automated Clearing House Association. d. Credit Union Examination. The Credit Union may disregard information on any check other than the signature of the drawer and amount of the item and any magnetic encoded information. You agree the Credit Union does not fail to exercise ordinary care in paying an item solely because its procedures do not provide for sight examination of items. 8. Account Rates and Fees. We pay dividends and impose fees based on the account rates and fees, earnings, payment, and balance requirements as set forth on the Rate and Fee 3

Schedule and each Certificate Account Receipt. A current Rate and Fee Schedule has been provided to you separately. You agree we may change the Rate and Fee Schedule from time to time and you will be notified of such changes as required by law. 9. Transaction Limitations. a. Withdrawal Restrictions. We will permit a withdrawal only if you have sufficient available funds in your account to cover the full amount of the withdrawal or have an established overdraft protection plan. Drafts or other transfer or payment orders which are drawn against insufficient available funds will be subject to a service charge, set forth in the Rate and Fee Schedule. If there are sufficient available funds to cover some but not all of your withdrawal orders, we may allow those withdrawals for which there are sufficient available funds in any order at our discretion. We may disallow a withdrawal in other cases; for example: any dispute between the owners about the account (unless a court has ordered us to allow the withdrawal); a legal garnishment or attachment is served; the account secures an obligation to us; any required documentation has not been presented; or you fail to repay a Credit Union loan on time. You will be advised of the reasons for refusal if such action is taken. We reserve the right to require you to give notice in writing of any intended withdrawals from any account up to ninety (90) days before such withdrawal. b. Transfer Limitations. For savings and money market accounts, you may make up to six (6) preauthorized, automatic, telephone, or audio response transfers to another account of yours or to a third party during any calendar month. A preauthorized transfer includes any arrangement with us to pay a third party from your account upon oral or written orders, including orders received through the automated clearing house (ACH). There is no limit on the number of transactions you may make in the following manner: (i) transfers to any loan account with us; (ii) transfers to another Credit Union account or withdrawals (checks mailed directly to you) when such transfer or withdrawal is initiated in person, by mail, or at an ATM. If a transfer request would exceed the transfer limitations set forth above in any statement period, we may refuse or reverse the transfer, and suspend or close your account, and we may impose a charge. 10. Overdrafts. a. Overdraft Liability. If on any day, the available funds in your checking account are not sufficient to cover checks and other items posted to your account, those checks and items will be handled in accordance with our overdraft procedures or an overdraft protection plan you have with us. Our determination of an insufficient account balance may be made at any time between presentation and our midnight deadline with only one review of the account required. We have no duty to notify you of an insufficient funds check. Your account will then be subject to a charge for the item whether paid or returned as set forth in the Rate and Fee Schedule. Except as otherwise agreed in writing, by covering one or any overdraft, we do not agree to cover overdrafts in the future and may discontinue covering overdrafts at any time. If we pay a draft that would otherwise overdraw your account, you agree to pay the overdraft amount immediately. We reserve the right to pursue collection of previously dishonored items at any time, including giving a payor bank extra time beyond any midnight deadline limits. b. Overdraft Protection Plans. We offer several discretionary overdraft protection plans that permit transfers from a savings account or line of credit account to cover overdrafts. An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts for checks, automatic bill payments and recurring ACH transactions. Also, upon your request, we offer a Courtesy Pay overdraft protection service to pay overdrafts for ATM and debit card transactions as set forth in Section 10.c. We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined. Under our standard overdraft practices we will charge you a fee as set forth on the Rate and Fee Schedule, each time we pay an overdraft. There is no limit on the total fees we can charge you for overdrawing your account. c. Courtesy Pay Service. If you want us to authorize and pay an overdraft on your ATM and debit card/pos transactions under the Courtesy Pay service, we may, at our discretion and not as a right of yours or our obligation to you, pay overdrafts up to an approved overdraft limit under the terms of this service. We are not obligated to pay any transaction presented for payment if your account does not contain sufficient funds. This overdraft service is not a line of credit, is not guaranteed, and is independent of other overdraft plans we may offer. Overdraft Limit/Available Balance. Upon approval of the service the limits we may allow overdrafts (overdraft limit) will be disclosed to you. The Credit Union s fees and charges and each paid transaction will be included in this limit. This overdraft limit will not 4

be included or reflected in your actual or available balance of your account provided by a teller, at an ATM or POS facilities or on your periodic statements. Generally, we will not pay an overdraft in excess of any limit we have established for your account type. Also, we may refuse to pay an overdraft for you at any time, even if we have previously paid overdrafts for you. We may notify you electronically of any insufficient funds, checks, or items paid or unpaid and returned that you may have. However, we have no obligation to notify you before we pay or return any item. Overdraft Fees. The fee for each paid overdraft (per check or item) is set forth on the Rate and Fee Schedule and will be listed on your statement as an Overdraft Fee. If we do not pay the overdraft, there is an NSF/Returned Item fee (per check or item) as set forth on the Rate and Fee Schedule and will be listed on your statement as a Returned Item Fee. There is no limit on the number of overdrafts paid or overdraft fees incurred on any one day. These fees may be amended as set forth in our Rate and Fee schedule. Member Repayment Responsibility. You agree your Courtesy Pay balance, including applicable overdraft fees, is due and payable upon demand. If there is more than one owner on an account, all owners are jointly and severally liable for repayment of the overdraft balance. If you fail to repay your overdraft balance within 30 days of notice from us, we may immediately suspend the Courtesy Pay service. Accounts may be closed for failure to repay overdraft balances and we will report account closures to consumer reporting agencies and we may refer your account to an agency for collection. Termination of Service. The Credit Union offers the overdraft protection service as a service and convenience to members for incidental overdrafts. We do not encourage you to repeatedly overdraw your account. We encourage you to manage your finances responsibly. You may terminate the service at any time by notifying the Credit Union, by phone, in person or through your Online Banking account. You understand that by opting-out of this service, the Credit Union may refuse to pay any check or item that is presented against an insufficient balance on your account and you will be responsible for any NSF/Returned Item fees. You are still responsible to pay any overdraft, even if you have terminated the service. 11. Postdated and Stale Dated Items. You authorize us to accept and pay any check, even if the check is presented for payment before its date, unless you notify us of the postdating. Your notification is subject to all the terms and conditions of a stop payment request. Your notice will be effective only if we receive the notice in time for us to notify our employees and reasonably act upon the notice and you accurately describe the check, including the number, date, and amount. You understand that the exact information is necessary for our computer to identify the check. If you give us an incorrect, incomplete, or untimely notice, we will not be responsible for paying the item before the date stated and we may charge your account as of the date we pay the item. You may make an oral notice which will lapse within fourteen (14) days unless continued in writing, within that time. A written notice will be effective for six (6) months. A written notice may be renewed in writing from time to time. You also agree not to deposit checks, drafts, or other items before they are properly payable. We have no obligation to you to pay a check or draft drawn on your account which is presented more than six (6) months after its date. 12. Stop Payment Orders. a. Stop Payment Request. You may ask the Credit Union to stop payment on any check drawn upon and ACH debit scheduled from your checking account. You may request a stop payment online, by telephone, by mail, or in person. For checks and ACH debits, the stop payment will be effective if the Credit Union receives the order in time for the Credit Union to act upon the order. For preauthorized ACH debits, the stop payment order must be received at least three (3) banking days before the scheduled date of the transfer. You must state the number of the account, date, and exact amount of the check or ACH, and the number of the check or originator of the ACH debit. If you give the Credit Union incorrect or incomplete information, the Credit Union will not be responsible for failing to stop payment on the item. If the 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 item. If we recredit 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 all of your rights against the payee or other holders of the check to us, and to assist us in legal action taken against the person. b. Duration of Order. Stop payment orders for checks and Electronic Check Conversion transactions will be effective for six (6) months, but will lapse after fourteen calendar days if the original order is verbal and is not confirmed in writing within that period. Stop payment orders for Visa debit and credit transactions will be effective for fourteen (14) months, but will lapse after fourteen calendar days if the original order was verbal and is not confirmed in writing within that period. Stop payment orders for Preauthorized 5

Electronic Funds Transfers will remain in effect until a written request to remove the stop payment is received. We are not obligated to notify you when a stop payment order expires. c. Liability. We may charge a fee for each stop payment order requested, as set forth on the Rate and Fee Schedule. You may not place a stop payment on any certified check or draft, cashier s check or money order, or any other check, draft, or payment guaranteed by us. You should be aware that while payment of the item may be stopped, you may remain liable to any person, including us, who is a holder of the item despite the stop payment order. You agree to indemnify and hold us harmless from all costs, including attorney s fees, damages, or claims related to our action in refusing payment of an item, including claims of any multiple party account owner, payee, or endorsee in failing to stop payment of an item as a result of incorrect information provided by you. 13. Lost Items. We act only as your agent in receiving items from you for withdrawal or deposit, and we may reverse the credit for any deposited items or charge your account for the items should they become lost in the collection process. 14. Credit Union s Liability for Errors. If we do not properly complete a transaction according to this Agreement, we will be liable for your losses or damages not to exceed the amount of the transaction, except as otherwise provided by law. We will not be liable if: (a) through no fault of ours, your account does not contain enough money to make the transaction; (b) circumstances beyond our control prevents the transaction; (c) your loss is caused by your negligence or the negligence of another financial institution; or (d) the money in your account is subject to legal process or other claim. We will not be liable for consequential damages except liability for wrongful dishonor. Our actions will constitute the exercise of ordinary care if such actions or nonactions are consistent with applicable state law, Federal Reserve regulations and operating letters, clearing house rules, and general banking practices followed in the area serviced by us. You grant us the right, in making payments of deposited funds, to rely exclusively on the form of the account and the terms of this Account Agreement. Any conflict between oral representations by you or our employees and any written form will be resolved by reference to this Agreement and applicable written form. 15. Credit Union Lien and Security Interest. To the extent you owe us money as a borrower, guarantor, endorser, or otherwise, we have a lien on any or all of the funds in any account in which you have an ownership interest regardless of the source of the funds. We may apply these funds in any order to pay off your indebtedness. If we choose not to enforce our lien, we do not waive our right to enforce the lien at a later time. In addition, you grant us a consensual security interest in your accounts and agree we may use the funds from your accounts to pay any debt or amount owed to us, except obligations secured by your dwelling, unless prohibited by applicable law. All accounts are nonassignable and nontransferable to third parties. 16. Legal Process. If any legal action, such as a levy, garnishment, or attachment, is brought against your account, we may refuse to payout any money from your account until the dispute is resolved. If we incur any expenses or attorney s fees in responding to legal process, such expenses may be charged against your account without prior notice to you unless prohibited by law. Any legal process against your account is subject to our lien and security interest. 17. Notices. a. Name or Address Changes. It is your responsibility to notify us upon a change of address or change of name. We are only required to attempt to communicate with you at the most recent address you have provided to us. We will accept notice of a change in address and any other notice from you if provided in writing. If we attempt to locate you, we may impose a service fee as set forth on the Rate and Fee Schedule. b. Notice of Amendments. Except as otherwise prohibited by applicable law, the terms of this Agreement are subject to change at any time. We will notify you of any changes in account terms, rates, or fees as required by law. Changes in account ownership, such as adding or removing a joint account owner, must be evidenced in writing. No joint owner may remove another joint owner from the account without the consent of all owners. We reserve the right to waive any term in this Agreement. Any such waiver shall not affect our right to enforce any right in the future. c. Effect of Notice. Any written notice you give us will be effective when received by us. Any written notice we give to you will be effective when it is deposited in the U.S. Mail, postage prepaid and addressed to you at your mailing address of record. Notice to any one account owner is considered notice to all owners of the account. 6

18. Taxpayer Identification Numbers (TIN) and Backup Withholding. If your account is or becomes subject to backup withholding, we are required by law to withhold and pay to the Internal Revenue Service (IRS) a required percentage of payments of dividends and certain other payments under certain conditions. Your failure to furnish a correct taxpayer identification number (TIN) or meet other applicable requirements may result in backup withholding as well as civil or criminal penalties. If you refuse to provide your TIN, we may suspend the opening of your account. 19. Statements. a. Contents. If we provide a statement for your account, you will receive a periodic statement of all transactions and activity on your account during the statement period. If a periodic statement is provided, you agree that only one statement is necessary for a multiple party account. For checking accounts, you understand that when paid, your original check (or any substitute check) becomes property of the Credit Union and may not be returned to you. You agree to keep a copy or carbon copy of your original check in order to verify its validity. If you request us to provide you with an original check or sufficient copy, you agree that we may provide an electronic image of the original check or sufficient copy. You understand your statements and checks are made available to you on the date the statement is mailed to you. b. Examination. You are responsible for examining each statement and reporting any irregularities to us. We will not be responsible for any forged, altered, or unauthorized item drawn on your account if (1) you fail to notify us within thirty (30) days of the mailing date of the earliest statement and availability of checks containing any forgery, alteration, or unauthorized signature on the item; or (2) any items forged or altered in a manner not detectable by a reasonable person including the unauthorized use of a facsimile signature machine. c. Notice to Credit Union. You agree that our retention of drafts does not alter or waive your responsibility to examine your statements and draft copies or the time limit for notifying us of any errors. The statement will be considered correct for all purposes and we will not be liable for any payment made or charge to your account unless you notify us in writing within the above time limit after the statement and checks are made available to you. 20. Termination of Account. We may terminate your account at any time without notice to you or may require you to close your account and apply for a new account if (1) there is a change in owners or authorized signers; (2) there has been a forgery or fraud reported or committed involving your account; (3) there is a dispute as to the ownership of the funds in the account; (4) any account checks are lost or stolen; (5) there are excessive returned unpaid items not covered by an overdraft protection plan; (6) there has been any misrepresentation or any other abuse of any of your accounts; (7) we determine that you no longer meet the criteria we have established to maintain the account; or (8) any account owner is verbally or physically abusive to a Credit Union employee, volunteer, or member. You may terminate your account at any time by notifying us orally or in writing. We will not be responsible for payment of any check, withdrawal, or other item once your account is terminated; however, if we pay a check after termination, you agree to reimburse us for the payment. 21. Termination of Membership. You may terminate your Credit Union membership after giving written notice of your intent to withdraw from membership. You may be denied services or expelled from membership for any reason allowed by applicable law, including causing us a loss. This includes, without limitation, any conduct that is abusive, threatening, or harassing to a Credit Union employee, volunteer, or member. 22. Special Account Instructions. If you ask us to follow instructions that we believe might expose us to claims, suits, lawsuits, expenses, liabilities, or damages, whether directly or indirectly, we may refuse to follow your instructions or may require you to post a bond to indemnify us. Any item presented with a full payment legend must be presented in person to a Credit Union officer; otherwise, payment is accepted with full reservation of rights. Account changes requested by you, or any account owner, such as adding or closing an account or service, must be evidenced by a signed Account Card and accepted by us. We will not recognize the authority of someone to whom you have given power of attorney without written authorization and a copy of the Power of Attorney on record with us. The Credit Union reserves the right to accept or refuse a Power of Attorney. 23. Severability. In the event that any paragraph of this Agreement or any portion thereof 7

is held by a court to be invalid or unenforceable for any reason, the other paragraphs and portions of this Agreement shall not be invalid or unenforceable and will continue in full force and effect. 24. Enforcement. You agree to be liable for any loss, or expense as provided in this Agreement that we incur as a result of any dispute involving your accounts or services. You authorize us to deduct any such liability, loss, or expense from your account without prior notice to you. In the event either party brings a legal action to enforce the Agreement or collect any overdrawn funds on accounts accessed under this Agreement, the prevailing party shall be entitled, subject to applicable law, to payment by the other party of its reasonable attorney s fees and costs and any collection agency costs, if applicable, including fees on any appeal, bankruptcy proceedings, and any post-judgment collection actions, if applicable. 25. Governing Law. This Agreement is governed by the Credit Union Bylaws, federal laws and regulations, the laws and regulations of the State of Washington, and local clearinghouse rules, as amended from time to time. Any disputes regarding this Agreement shall be subject to the jurisdiction of the court of the county in which the Credit Union is located. II. FUNDS AVAILABILITY POLICY For savings accounts and deposits made through Mobile Deposit, we reserve the right to place reasonable holds on deposited funds to the extent permitted by law. For checking accounts, our Funds Availability policy is set forth below. 1. General Policy. Our policy is to make funds from deposits made to your checking account available to you on the same business day that we receive your deposit. Electronic direct deposits will be available on the day we receive the deposit. Once they are available, 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 federal holidays. If you make a deposit after business hours, or on a day we are not open, we will consider that the deposit was made on the next business day we are open. 2. Reservation of Right to Hold. In some cases, we will not make all of the funds that you deposit available to you on the same business day that we receive your deposit. However, the first $200 of your total combined daily deposit(s) will generally be available on the same business day. The next $4,800 will be available on the second business day following the day of deposit, and deposit amounts exceeding $5,000 will be available on the seventh business day following the day of deposit. If we are not going to make all of the funds from your deposit available on the same business day, we will notify you at the time you make your deposit and tell you when the funds will be available. If the hold on your deposit changes, we will mail you the notice by the next business day after we receive your deposit. 3. Holds on Other Funds. If we cash a check for you that is drawn on another financial institution, we may withhold the availability of a corresponding amount of funds that are already in your account. Those funds will be available at the time funds from the check we cashed would have been available if you had deposited it. If we accept for deposit a check that is drawn on another financial institution, we may make funds from the deposit available for withdrawal immediately but delay your ability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available for withdrawal until the time periods that are described elsewhere in this disclosure for the type of check that you deposited. 4. Longer Delays May Apply. We may delay your ability to withdraw funds deposited by check into your account an additional number of days if (a) we believe a check you deposit will not be paid; (b) you deposit checks totaling more than $5,000 on any one day; (c) you deposit a check that has been returned unpaid; (d) you have overdrawn your account repeatedly in the last six months; or (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. 5. Night Deposit. If you deposit funds at a Sound night deposit prior to 9:00 am on a business day, then it is considered the day of deposit. However, if you deposit funds after 9:00 am or on a non-business day, we will consider the day of deposit to be the following business day. 8

6. 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 deposits 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 will be available on the first business day after the day of your deposit if the deposit meets certain conditions. For example, the deposit must be made in person to one of our employees and the check must be payable to you. The excess over $5,000 will be available on the ninth business day after the day of your deposit. If your deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, funds will generally be available on the fifth business day after the day of your deposit. Funds from all other check deposits will generally be available on the ninth business day after the day of your deposit. III. ELECTRONIC FUNDS TRANSFER AGREEMENT AND DISCLOSURES By signing the Account Card or signing or using your Visa debit card, Online Banking service, Mobile Banking Service, or Telephone Banking service, you agree to the following terms governing your and our rights and responsibilities concerning the electronic funds transfer services and any amendments, as applicable. Terms and conditions set forth elsewhere in this Agreement shall also apply to your electronic funds transfer service. Electronic funds transfers ( EFTs ) are electronically initiated transfers of money through direct deposits, automated teller machines ( ATMs ), Telephone Banking transactions, Mobile Banking transactions, Online Banking transactions, Bill Pay transactions, Point of Sale ( POS ) terminals, and Visa debit card purchases involving your deposit accounts at the Credit Union. 1. Services. a. Automated Teller Machines (ATMs). Upon approval, you may use your Visa debit card and your Personal Identification Number ( PIN ) in automated teller machines of the Credit Union, and within such ATM networks we may designate. At the present time, you may use your Card to make the following transactions on your accounts: Withdraw cash from your checking or savings account. Transfer funds between your checking and savings accounts. Deposit funds to your checking and savings account. Access your checking account to withdraw Travelers Cheques from American Express Travelers Cheque Dispensers. Other transactions as offered and permitted in the future. b. Visa Debit Card. Upon approval, you may use your Visa debit card to purchase goods and services any place your Card is honored by participating merchants. Funds to cover your Visa debit card purchases will be deducted from your checking account. A Visa debit card purchase will not be authorized if, at the time the authorization is requested, the amount of purchase exceeds the available balance in your account and overdraft protection is not available. For a Visa debit card purchase that has been authorized, if there are insufficient funds in your account at the time the authorized transaction is processed by the Credit Union, your overdraft protection plan may be used to pay these transactions. If the balance in your account is not sufficient to pay the transaction amount, your account will be subject to a charge as set forth in the Account Rate and Fee Schedule, and the Credit Union may terminate all services under this Agreement. c. Non-Visa Debit Transactions. Some merchants may permit you to initiate debit and bill payment transactions with your card using either the Visa network or another network such as the STAR, PLUS, or CO-OP Networks. The Credit Union will honor your debit transactions processed by any of these networks. Transactions processed over the Visa network do not require you to use your PIN to validate the transaction. Generally, you will sign a receipt, provide your card number (e.g. internet, mail, or telephone transactions), or swipe your card at a terminal. Also, there are certain protections and rights such as the zero liability protections in the section titled Member Liability, applicable only to Visa processed transactions. Transactions processed over other networks may not require you to use your PIN in order to validate a transaction. Generally, you enter your card number or swipe your card and provide or enter a PIN. However, some merchants may not require you to provide a PIN, and allow you to choose whether the transaction is processed by Visa or another network. Provisions applicable only to Visa transactions (such as Visa s zero liability protections) will 9

not apply to non-visa debit transactions and the liability rules for other EFTs in the section titled Member Liability will apply. d. Telephone Banking. If we approve the Telephone Banking service for your accounts, you may choose an access code. You must use your access code along with your account number to access your accounts. At the present time, you may use the Telephone Banking service to: Make account balance, certificate, and loan inquiries. Transfer funds between your deposit accounts. Take an advance on your line of credit. Obtain YTD interest information on loans and YTD dividend information on deposit accounts. Verify deposits and withdrawals. Tell if a particular check has cleared. Complete other transactions as offered and permitted in the future. e. Electronic Check Transactions. You may authorize a merchant or other payee to make a one-time electronic payment from your checking account using information from your check to pay for purchases, pay bills, or pay other obligations ( electronic check transactions ). You agree that your authorization for an electronic check transaction occurs when you initiate such a transaction after receiving any required notice regarding the merchant s right to process the transaction or payment, including any written sign provided by the merchant at the time of your transaction. All terms governing electronic funds transfer services will apply to electronic check transactions. You remain responsible for notifying us of any unauthorized electronic check transaction shown on your statement. Transactions involving your deposit accounts will be subject to the terms of your Business Membership and Account Agreement and transactions involving a line of credit account will be subject to your Loan Agreement and Disclosures, as applicable. 2. Service Limitations. a. Automated Teller Machines (ATMs). i. Withdrawals. There is no limit on the number of withdrawals you may make at our ATMs and nonproprietary ATMs. However, you may be charged a fee as set forth on the Fee Schedule. You may withdraw up to $500 total per day, subject to your account having a sufficient available balance and limits placed on each individual ATM. ii. Transfers. You may transfer between your savings and checking accounts up to the balance in your accounts at the time of the transfer at available locations. iii. Deposits. The servicing and processing schedule of automated teller machines may result in a delay between the time a deposit is made and when it will be available for withdrawal. You should refer to the Credit Union s Funds Availability Policy. b. Visa Debit Card/POS Purchases. You may make Visa debit card purchases at participating merchants and POS terminals up to the maximum amount set by any participating merchant (if there are sufficient funds in your account). We reserve the right to refuse any transaction which would draw upon insufficient funds, lower an account below a required balance, or otherwise require us to increase our required reserve on the account. We may set other limits on the amount of any transaction, and you will be notified of those limits. We may refuse to honor any transaction for which you do not have sufficient available verified funds. c. Automated Telephone Banking. Your accounts can be accessed via a touch tone telephone only. Not all pushbutton phones are touchtone. Converters may be purchased for pulse and rotary dial phones. Audio response service will be available for your convenience seven (7) days a week. This service may be interrupted for a short time each day for data processing. While there is no limit to the number of inquiries, transfers, or withdrawal requests you may make in anyone day, there are certain limitations on transfers from a savings or money market account. No transfer or withdrawal may exceed the available funds in your account. We reserve the right to refuse any transaction which would draw upon insufficient funds, exceed a credit limit, lower an account below a required balance, or otherwise require us to increase our required reserve on the account. If available, check transactions may not exceed the available balance in your account. All checks are payable to you as a primary member and will be mailed to your address of record. We may set other limits on the amount of any transaction, and you will be notified of those limits. We may refuse to honor any transaction for which you do not have sufficient available verified funds. There is no limit on the number of transaction requests you may make during a single phone call. The system will discontinue service after three (3) unsuccessful attempts to enter a transaction. d. Illegal Use of Internet Gambling. You agree that all transactions that you initiate 10