Truth in Savings Disclosures for Term Share Certificate Accounts

Except as specifically described, the following disclosures apply to all Term Share Certificate accounts.  All accounts described in this Truth-in-Savings Disclosure are share accounts.

1. Rate Information. The Annual Percentage Yield is a percentage rate that reflects the total amount of dividends to be paid on an account based on the dividend rate and frequency of compounding for an annual period. For all accounts, the Dividend Rate and Annual Percentage Yield are fixed and will be in effect for the term of the account. For accounts subject to dividend compounding, the Annual Percentage Yield is based on an assumption that dividends will remain on deposit until maturity. A withdrawal of dividends will reduce earnings.
   
   
2. Dividend Period. For each account, the dividend period is the account's term.  The dividend period begins on the first day of the term and ends on the maturity date. 
   
   
3. Dividends Compounding and Crediting. The compounding and crediting frequency of dividends are stated in the Rate Schedule. *For Certificate accounts, the dividends will be deposited to a specified Share type or back to the certificate.
   
   
4. Balance Information. The minimum balance requirements applicable to each account are set forth in the Rate Schedule. To open any account, you must deposit or already have on deposit at least the par value of one full share in any account.  The par value amount is stated in the Fee Schedule.  For all accounts, dividends are calculated by the Average Daily Balance method which applies a periodic rate to the average daily balance in the account for the period. The average daily balance is determined by adding the full amount of the principal in the account for each day of the period and dividing that figure by the number of days in the period.
   
   
5. Accrual of Dividends. For all accounts, dividends will begin to accrue on noncash deposits (e.g. checks) on the business day you make the deposit to your account. If you close your account before accrued dividends are credited, accrued dividends will not be paid.
   
   
6. Transaction Limitations. For all accounts, after your account is opened you may make withdrawals subject to the early withdrawal penalties stated below.
   
   
7. Maturity. Accounts will mature as indicated on this Truth-in-Savings Disclosure or on the Account Receipt or Renewal Notice.
   
   
8. Early Withdrawal Penalty. We may impose a penalty if you withdraw any of the principal before the maturity date.
   
   
9. Amount of Penalty. For all accounts, the amount of the early withdrawal penalty for your accounts is ninety (90) days dividends.
   
   
10. How the Penalty Works. The penalty is calculated as a forfeiture of part of the dividends that have been or would be earned on the account. It applies whether or not the dividends have been earned. In other words, if the account has not yet earned enough dividends or if the dividend has already been paid, the penalty will be deducted from the principal.
    
    
11. Exceptions to Early Withdrawal Penalties. At our option, we may pay the account before maturity without imposing an early withdrawal penalty under the following circumstances:
    
    
    1. When an account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction.
       
       
    2. Where the account is an Individual Retirement Account (IRA) and any portion is paid within seven (7) days after establishment; or where the account is a Keogh Plan (Keogh) provided that the depositor forfeits an amount of at least equal to the simple dividends earned in the amount withdrawn; or where the account is an IRA or Keogh and the owner attains age 59½ or becomes disabled.
       
       
12. Renewal Policy. The renewal policy for your accounts is indicated on the Rate Schedule. For IRA Certificate accounts, your account will automatically renew for another term upon maturity. You do not have a grace period after maturity in which to withdraw funds in the account without being charged an early withdrawal penalty. For Certificate accounts, your account will be automatically renewed at maturity for the same term.
    
    
13. Nontransferable/Nonnegotiable. Your account is nontransferable and nonnegotiable. The funds in your account may not be pledged to secure any obligation of an owner, except obligations with the Credit Union.