Federal law requires us to obtain sufficient information to verify your identity. You may be asked several questions and to provide one or more forms of identification to fulfill this requirement. In some instances, we may use outside sources to confirm the infor-mation. The information you provide is protected by our privacy policy and federal law.
This Account Terms & Disclosures (Disclosure) booklet is part of the Account Agreement(s) that you signed to establish your ac-count(s) with Educational Federal Credit Union (Credit Union). This Disclosure establishes the terms and conditions applicable to your account(s) and outlines the rights and responsibilities of both you and the Credit Union. Please read this Disclosure carefully and retain a copy for your records.
In this Disclosure, the words “you” and “yours” mean anyone who signs an Account Agreement. The words “we” and “us” mean the Credit Union. The word “account” means any one or more shares or other accounts you have with the Credit Union. The classi-fication and form of ownership of your account is set forth on your Account Agreement(s).
Membership Eligibility—To be eligible for membership, you must be an individual or entity qualifying within the Credit Union’s field of membership and must purchase and maintain at least one share (the “membership share”) as required by the Credit Union’s By-laws. Your eligibility to join the Credit Union is a fringe benefit for employ- ees of the select employer groups within our field of mem-bership. You authorize the Credit Union to check your account, credit, and employment history, and to obtain a credit report from third parties, including credit report- ing agencies, to verify your eligibility for the accounts and services you request.
Denial of Membership—Individuals may be denied membership based on derogatory information from the Credit Union’s own records or information obtained from a reputable third party (such as a credit reporting agency). Additionally, the Credit Union will not provide account services to any person or organization that:
Routinely deposits and/or withdraws in aggregate more than $50,000 in cash per calendar month.
Routinely engages in providing check cashing services to third parties or acting as a third-party processor.
Utilizes their account in a manner inconsistent with the account type.
Engages in the business of betting or wagering, or that knowingly accepts payments in connection with the participation of another person in unlawful Internet gambling, as defined in Regulation GG, implementing the Unlawful Internet Gambling Enforcement Act (UIGEA).
Engages in the operation of a marijuana-related business (MRB) or dispensary, or any other type of business that violates state or federal law.
Account Ownership—The Credit Union reserves the right to refuse some forms of ownership on any or all accounts. The Credit Union makes no representations as to the appropriateness or effect of the ownership and beneficiary designations, except that they shall determine to whom we pay the account funds.
Single Party Accounts—A single party account is an account owned by one member including any individual, association, or other organization qualified for Credit Union membership. If the account is a single party account, the interest of a deceased individual owner will pass, subject to applicable law, to the decedent’s estate or account beneficiary(ies), subject to other provisions of this Dis-closure governing our protection for honoring transfer and withdrawal requests of a member/owner or owner’s agent prior to notice of an owner’s death.
Multiple Party Accounts—An account owned by two or more persons is a multiple party account.
Rights of Survivorship—On a multiple party account, upon death of one of the owners, that person’s inter- est will pass to the surviv-ing owner(s).
Control of Multiple Party Account Owners—Any multiple party account owner is authorized and deemed to act for the other own-er(s) and the Credit Union may accept orders and instructions regarding the account, requests for future services, and any transaction from any other account owner. Each multiple party account owner guarantees the signature of the other owners. Any account owner may withdraw all funds in the account, stop payment on items drawn on an account, transfer funds in or out of the account, or pledge to the Credit Union all or any part of the shares of any account without the consent of the other account own- er(s) and the Credit Union shall have no duty in such event to notify any other account owner(s).
The Credit Union reserves the right at any time to require written consent of all account owners for a change of ownership or termi-nations of a multiple party account. If the Credit Union receives written notice of a dispute between account owners or receives in-consistent instructions from them, the Credit Union may suspend or terminate the account, require a court order to act or require that all account own- ers agree in writing to any transaction concerning the account.
Multiple Party Account Owner Liability—If any item deposited in a multiple party account is returned unpaid, an account is over-drawn, or if the Credit Union does not receive final payment on any transaction, each of the multiple party account owners is jointly and severally liable to the Credit Union for the amount of the returned item, overdraft, or unpaid amount and any fees, regardless of who created the overdraft, deposited or cashed the item or benefited from the transaction. If any account owner is indebted to the Credit Union, the Credit Union may enforce its rights against any or all funds in the multiple party account regardless of who contributed the funds to the account.
Beneficiary Designation—By designating beneficiaries on an account, you are establishing a Payable-On- Death (POD) Account. Beneficiary designation is an instruction to the Credit Union that an account is payable to the owner or owners during their lifetimes, and upon the death of all account owners, is payable to any named and surviving beneficiary designated on the Account Agree-ment. The amount paid to each benefi- ciary is governed by the percentage indicated on the Account Agreement. Any beneficiary designation on a Prime Share account will also apply to any Special Savings shares (Student, College Tuition, Holiday, Income Tax, Member’s Choice, Payday, Property Tax, Shared Earnings Dividend, Summer, or Vacation Savings), and any Money Market Sav-ings shares on that account. Individual Retirement Accounts (IRA) and Checking shares shall be governed by separate beneficiary designations respectively. The Credit Union shall at no time have any obligation whatsoever to notify any beneficiary of the exist-ence of any account or the vesting of the beneficiary’s interest in any account, except as otherwise provided by law. The Credit Union makes no representation concerning the legal consequences or effect of any beneficiary designation, and you under- stand that you should consult with your attorney if you have any question regarding the validity, effective- ness, or fitness of any such beneficiary designation for any purpose.
Trust Accounts—A Certification of Trust is required to establish a Trust Account. An existing member account may not be con-verted into a Trust Account; a separate account in the name of the trust must be established. Trustees agree to conform to the by-laws of the Credit Union and agree to the terms, conditions and fee schedules established and amended by the Credit Union from time to time. Trust Accounts shall be subject to withdrawal or receipt by any one of the Trustees and payment to any of them shall be valid and shall dis- charge the Credit Union from any liability for such payment. Each of the Trustees is authorized to access the Trust Account by any means approved by the Credit Union. Any or all of the Trustees may borrow from the Credit Union, guaran-tee debts of others made by the Credit Union, and pledge all or any part of the account as collateral security for a loan or loans with the Credit Union, and each warrant that such transactions are permitted under the governing Trust documents. Any Trustee may access any credit line loan established with the Trust Account through any access means made available by the Credit Union. The Trustees agree that the Credit Union is authorized to charge at any time against the Trust Account any indebtedness owing to the Credit Union by the Trust. Trustee(s) warrant that each account he or she establishes and maintains in the Credit Union is wholly consistent with the governing Trust document. The Trust and the Trustees release Educational Federal Credit Union, its officers, directors, and employees from any and all liability or claim
for loss of funds resulting from any transaction initiated by or through any named Trustee or any successor Trustee (whether or not named in the Certification of Trust). The Credit Union shall not be responsible for the validity, existence or legality of the Trust nor shall it be required to validate the authority of any Trustee to transact business as set forth above. The Trustee(s) hereby agree to indemnify, defend, and hold the Credit Union harmless from any and all claims, suits, actions, damages, judgments, costs, fees and expenses, including court costs and attorneys’ fees, against any and all liability, loss and damage of any nature what- soever that the Credit Union shall or may sustain resulting from the estab-lishment, maintenance and transaction of any business related to the Trust Account(s) established pursuant to the Trust Member-ship Application & Master Account Agreement. The Trustee(s) agree to pay any necessary expenses, attorneys’ fees or costs in the enforcement of an Indemnification and Hold Harmless Agreement. Trustee(s) agree that the Credit Union shall be notified if there is any change in the Trustee(s). Any change shall be effective as
to the Credit Union only after it is received in writing by the Credit Union at its business office with reason- able time to act upon such notice. Trustee(s) agree that the Credit Union shall be noti-fied of any change
in address of any of the persons who are Trustee(s). The Credit Union shall have discretion in how it deter- mines the identity of any person claiming to be a Trustee. Such determination shall be binding on the Trust, Grantor(s), Trustor(s), Set-tlor(s), Trustee(s) and any successor Trustee(s). The Credit Union may require that any or all disbursement(s) shall be made paya-ble to any one or more of the Trustee(s).
Accounts for Minors—For any account established by or for a minor, the Credit Union reserves the right to require the minor ac-count to be a multiple party account with an owner who has reached the age of majority under state law who shall be jointly and severally liable to the Credit Union for any returned item, overdraft, or unpaid fees or amounts on such account. The Credit Union may make payments of refunds directly to the 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 right to access the account. The Credit Union has no duty to inquire of the use or purpose of any transaction by the minor or any account owner.
Agency Designation—An agency designation is an instruction to the Credit Union that the account owner has authorized another person to make transactions as agent for the account owner regarding the accounts desig- nated. The customary method used in appointing an agent is a Power of Attorney. An agent has no ownership interest in the account or Credit Union voting rights. The Credit Union has no duty to inquire of the use or purpose of any transaction by the agent or ensure that the acts of the agent are for your benefit. An agency designation
is acceptable for designated transactions on single party accounts. As to multiple party ac-counts, in order for an agent to handle designated transactions, the agent must be appointed by all owners. The Credit Union has the right to review and approve any form of Power of Attorney and may restrict any withdrawals or transfers on your accounts. You agree not to hold the Credit Union responsible for any loss or damage you may incur as a result of the Credit Union following instructions given by an agent acting under a valid Power of Attorney.
Deposit Protection—Funds in your account(s) with the Credit Union are insured by the National Credit Union Administration (NCUA) and backed by the full faith and credit of the United States. The amount of insurance coverage you have depends on the number of accounts you have with us that are of different “ownership.” An individual account is one unique form of “ownership”; a joint account, a beneficiary/trust account, and a self-di- rected qualified retirement account (e.g. an IRA) are examples of other types of ownership. Share insurance
for a person’s self-directed qualified retirement account is up to $250,000. (An IRA is a self-directed qualified retirement account as is any account where the owner decides where and how to invest the balance). Share insurance for the other ownerships is at least $250,000 per interest of the owner.
Deposit of Funds Requirements—Funds may be deposited to any account, in any manner approved by the Credit Union in accord-ance with the requirements set forth in this Disclosure.
Endorsements—You authorize the Credit Union, in its discretion, to accept transfers, checks, drafts, and other items for deposit into any of your accounts if they are made payable to, or to the order of, any one or more owners on the account, whether or not they are endorsed by all payees. You authorize the Credit Union to supply missing endorsements of any owners if the Credit Union so chooses. If an insurance, government, or other check or draft requires an endorsement as set forth on the back of the check or draft, the Credit Union may require endorsement as set forth on the item. Endorsements must be placed in accordance with in-structions on the draft or check. The Credit Union may accept drafts or checks with endorsements outside this space. However, if any such endorsement or any other marking you or any prior endorser has made on
the draft or check cause any delay or error in processing the item for payment, you will be responsible for any loss incurred by the Credit Union due to the delay or error.
Collection of Items—The Credit Union shall not be responsible for deposits made by mail or at an unstaffed facility until the Credit Union actually receives them. In handling items for deposit or collection, the Credit Union only acts as your agent and assumes no responsibility beyond the exercise of ordinary care. The Credit Union will not be liable for the negligence of any correspondent or for loss in transit, and each correspondent will only be liable for its own negligence. The Credit Union reserves the right to send any item for collection.
Final Payment—All items or ACH (Automated Clearing House) transfers credited to your account are provi- sional and subject to our receipt of final payment. If final payment is not received, the Credit Union reserves the right to charge your account for the amount of such items or ACH transfers or both and impose a return item fee on your account. If the Credit Union incurs any costs to collect any item, the Credit Union may apply such costs to your account. The Credit Union reserves the right to refuse or to return all or any item or funds transfer. The Credit Union shall have the right to charge back against your account all previously deposited items or other items endorsed by you that are returned to the Credit Union unpaid, regardless of whether the amount of the item has been available for your use. We routinely re-deposit returned items.
Direct Deposits—The Credit Union may offer direct deposit options allowing you to preauthorize deposits (i.e. payroll checks, So-cial Security or retirement checks, or other government checks) or preauthorize trans- fers from other accounts at the Credit Union. You must authorize any direct deposits to your accounts by
a separate authorization form. If applicable, you must notify the Credit Union at least thirty (30) days prior to any direct deposit or preauthorized transfer if you wish to cancel or change the direct deposit or direct
transfer option. Upon filing bankruptcy, if you fail to cancel any direct deposit authorization, you instruct your employer and the Credit Union to make and apply direct deposits in accordance with your authorization on file with the Credit Union. If the Credit Union is required to reimburse your employer or the U.S. Government for any benefit payment directly deposited into your ac-count for any reason, you agree that the Credit Union may deduct the amount returned from any of your accounts, unless prohib-ited by law.
Crediting of Deposits—Deposits received at unstaffed facilities such as night depositories will be credited on the day funds are removed and processed by the Credit Union. Items drawn on an institution located outside the United States are handled on a col-lection basis only. Amounts will be credited to your account when final payment is received. You waive any notice of non-payment, dishonor, or protest regarding any items pur- chased or received by the Credit Union for credit to your account or for collection.
Transactions by Mail—You may deposit checks by mail. You should endorse the check being sent through the mail with the words “For Deposit Only” and should include your correct account number and share ID
underneath to ensure the check is credited to the correct account. If you do not provide the Credit Union with instructions indicating how or where the check should be credited, we may apply it to any account or any loan balance you have with the Credit Union, or we may return the check to you. Following your deposit, examine your statement carefully to ensure that we received the item. Do not send cash through the mail for deposit.
Account Access
Authorized Signature—In order to access any account, the Credit Union must have an authorized signature of yours on an Account Agreement. The Credit Union is authorized to recognize your signature but will not be lia- ble for refusing to honor any item or instruc-tion 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 accounts’ secret access code to a third person, you authorize the Credit Union to honor transac- tions initiated by the third person even if you did not specifically authorize a particular transaction.
Access Options—You may make withdrawals or transfers from your account in any manner which is permitted by the Credit Un-ion (i.e. draft, automated teller machines (ATMs), Point-of-Sale transactions (POS), Online Banking, Mobile Banking, in person, by mail, automatic transfer, or telephone, as applicable).
If the Credit Union accepts any 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 draft that is not drawn on the form provided by the Credit Union. The Credit Union may also return, as unpaid, any draft showing a signature that does not match the signature on file at the Credit Union, for the account on which it is drawn.
Pre-Authorized Drafts—If you voluntarily give information about your deposit account (such as the Credit Union’s routing number and your account number) to a party who is seeking to sell you goods or services, and you do not physically deliver a check to the party, any debit to your account initiated by the party to whom you gave the information is deemed authorized.
ACH & Wire Transfers—If provided by the Credit Union, you may initiate or receive credits or debits to your account via wire transfer or ACH 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 pro-visionally 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 an ACH transfer, it may reverse the provisional credit to your account, or you will re-fund the amount to the Credit Union. When you initiate a wire transfer, you may identify either the recipient or any financial institu-tion by name and by account or identifying number. The Credit Union (and other institutions) may rely on the account or other iden-tifying number as the proper identification, even if it identifies a different party or institution. Wire transfers are governed by Fed-eral 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 (NACHA).
International ACH Transactions (IAT) may be subject to review and examination due to Office of Foreign Assets Control Rules and Regulations (OFAC Rules). Settlement of IAT entries may be delayed or suspended pending the Credit Union’s review. OFAC Rules may require termination of the IAT. If OFAC Rules require termination
of the IAT entry, the Credit Union may be required to place an indefinite hold on the funds covered by the IAT. Any delay described in this paragraph is a permissible delay under the laws and regulations applicable to funds availability in deposit accounts. In the event an IAT is delayed or terminated, the Credit Union will provide you with any notice required by NACHA Rules, OFAC Rules, or other applicable laws and regulations.
Credit Union Examination—The Credit Union may disregard information on any draft or check other than the signature of the drawer, amount of the item and any magnetic encoded information referred to as the MICR line (numbers and symbols at the bottom of draft/check).
Any other instruction on the draft/check cannot be recognized by the Credit Union because of truncation and automatic processing which is necessary and allows the Credit Union to clear the greatest number of items
at the lowest possible cost for all members. You agree that 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.
Service Fees—The Credit Union will apply service fees for accounts and services provided as set forth in the Service Fee Schedule. You agree that the Credit Union may change the Service Fee Schedule at any time, and you will be notified of such changes as re-quired by law.
Transaction Limitations
Withdrawal Restrictions—The Credit Union may permit a withdrawal only if you have sufficient available funds in your account to cover the full amount of the withdrawal. Share drafts or other transfer or payment orders which are drawn against insufficient funds will be subject to a service fee, set forth in the Service Fee Schedule. If there are sufficient funds to cover some but not all of your withdrawal orders, the Credit Union may allow those withdrawals for which there are sufficient funds in any order at the Credit Union’s discretion.
The Credit Union may also refuse to allow a withdrawal in other cases. For example: any dispute between the owners about the account (unless a court has ordered the Credit Union to allow the withdrawal); a legal garnishment or at-tachment is served; the account secures any obligation to the Credit Union; 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.
Transfer Limitations—There is no limit on the number of transactions you may make from a Savings Account, Money Market Savings share, or Checking Account to another account of yours or to a third party.
Time Accounts – The terms, conditions, and disclosures applicable to Share and Jumbo Certificates are set forth on the Certificate Disclosure, which is provided with a Share Certificate Agreement when a certificate is established.
Dividends and Rates
Rate Information—All Savings Accounts (Prime Share, Student, College Tuition, Holiday, Income Tax, Member’s Choice, Payday, Property Tax, Shared Earnings Dividend, Summer, or Vacation Savings), Money Market Savings shares, and Share Drafts (Checking Accounts), are Variable Rate Accounts. The Current Dividend Rates and Annual Percentage Yields (APYs) for your accounts are avail-able at www.edfed.org/ rates. The APY 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. The Dividend Rate and Annual Percentage Yield are based on the last dividend declaration date and may change as determined by the Credit Union’s Board of Directors.
Nature of Dividends—Dividends are paid from current income and available earnings after any required trans- fers to reserves at the end of a dividend period.
Compounding and Crediting—Dividends on Savings Accounts, Money Market Savings shares, and Checking Accounts will be com-pounded daily and credited quarterly. The dividend period for these shares and accounts is quarterly, for example, the beginning date of the first dividend period of the calendar year is January 1, and the ending date of such dividend period is March 31. All other quar-terly dividend periods fol- low this same pattern of dates.
Accrual of Dividends—Dividends will begin to accrue on deposits on the business day you make the deposit to your account. If you close your account before accrued dividends are credited, accrued dividends will be credited at that time.
Balance Requirements & Computation Method—The minimum balance required to earn dividends on a Prime Share is $100. There is no minimum balance requirement for other Savings Accounts, Money Market Savings shares or Checking Accounts. Divi-dends are calculated by the daily balance method, which applies a daily periodic rate to the principal in the applicable share or ac-count each day.
Transaction Processing—There are two basic types of transactions that post to your account: credits (deposits) and debits (with-drawals). Credits and debits can be presented in many forms, most typically as cash, checks, wires, debit card or ATM transactions, and ACH. It is important to be familiar with how each type of credit and debit is applied to your account so that you know the amount of funds available to you at any given time. The Credit Union posts transactions in the order they are received and cannot control when transactions are pre- sented for deposit or payment. The Credit Union makes every reasonable effort to post credits before deb-its so that members receive the maximum benefit of their funds.
Actual Balance—Your actual balance is the actual amount of money in your account, which is updated through- out the day as transactions are posted. It does not reflect pending transactions or funds placed on hold.
Available Balance—Your available balance is the amount of money in your account that is currently available for you to make pur-chases, withdrawals, etc. The available balance reflects any pending transactions as well as any holds placed on deposits. Your available balance is updated throughout the day as transactions are posted. It does not include any checks you have written that have not been presented for payment, bill payments that have been scheduled but not yet sent, or ACH transactions (direct with-drawals and/or direct
deposits) that have not yet posted. Available balance is used to determine whether an item will be paid and to assess overdraft fees.
Fees for ATM
Availability of Funds Deposited at an ATM—EdFed ATMs: All funds deposited in excess of $225 at an ATM are subject to an initial one (1) business day hold pending verification of the deposit. Thereafter, the applicable hold periods set forth in the Funds Availabil-ity Policy may apply. Deposits made after 5:00 p.m. Eastern Time are considered as made on the next business day.
Non-EdFed ATMs: EdFed will charge you $1.00 for each withdrawal you make using an ATM not owned by EdFed. For ATMs outside of the U.S., EdFed will charge an international fee of $1.00 plus a foreign ATM owner’s fee.
When you use an ATM not owned by EdFed, you may be charged a fee by the ATM operator, or any network used (and you may be charged a fee for a balance inquiry even if you do not complete a fund transfer).
Safety Consideration Using an ATM—When using an ATM, please consider the following:
Be aware of your surrounding.
Consider having someone accompany you.
Do not display cash in the vicinity of the ATM. When the transactions have been completed, count the cash in the safety of your vehicle or home.
If you notice anything suspicious, use another ATM at a different location or come back later.
If you notice anything suspicious while conducting a transaction, cancel the transaction and leave the area.
Report any crime to the local law enforcement officials and the operators of the ATM.
Be sure to always take your ATM receipt with you.
Understanding and Avoiding Overdraft and Nonsufficient Funds (NSF) Fees
Generally—The information in this section is being provided to help you understand what happens if your account is overdrawn. Understanding the concepts of overdrafts and nonsufficient funds (“NSF”) is important and can help you avoid being assessed fees or charges. This section also provides contractual terms related to overdrafts and NSF transactions.
Overdrafts
Determining Overdraft Status—The Credit Union pays debits based on the account’s available funds. If on any day, the available funds in your account are not sufficient to pay one or more debits presented against the account, the Credit Union will attempt to pay those debits using any or all of the applicable overdraft programs
for which you have enrolled or are qualified to receive. Your account will be subject to a fee for the item whether paid under the Courtesy Pay Protection program or returned for non-sufficient funds (NSF) as set forth in the Service Fee Schedule.
Overdraft Protection—If any debit, including but not limited to a check, ACH, or debit card transaction, is pre- sented against your account and there are insufficient funds available to pay the debit, the Credit Union will transfer funds from your Savings Account(s) to pay the item. There is no fee for this service.
Courtesy Pay—The Credit Union may honor a transaction that results in an overdrawn account through the use of the Credit Un-ion’s Courtesy Pay Protection program. Under this program, the Credit Union imple- ments a service fee to provide for the payment of a transaction that would otherwise be returned due to
non-sufficient funds (NSF). The Credit Union is under no obligation to pay every overdraft. The service fee for such transfers is set forth in the Service Fee Schedule. Overdrawn accounts must be brought to a positive balance within 30 days in order to retain Courtesy Pay privileges.
You may choose to opt-out of this service for check, ACH and Bill Pay transactions by contacting the Credit Union. For one-time debit card and ATM transactions, you must opt-in for this service in writing, by phone or through Online Banking. Only members in good standing are eligible for this service. The Credit Union may ter- minate this program for any member who fails to pay any negative balance amounts upon demand, who ceases to be considered a member in good standing, for excessive use, or at the Credit Union’s sole discretion.
Non-sufficient Funds (NSF)—If available funds are not in the account when a debit is presented for payment, and Overdraft Pro-tection or Courtesy Pay are not available, the item will be returned unpaid. An NSF fee will be assessed for each returned item. If an NSF item is later re-presented for payment and available funds are not in the account when the debit is re-presented, an addi-tional NSF fee may be assessed. The Credit Union cannot control the number of times an item is presented or re-presented for payment.
Postdated and Staledated Drafts—You authorize the Credit Union to accept and pay any draft without regard to the date of the draft even if the draft is presented for payment before its date. You also agree not to deposit checks, drafts, or other items before they are properly payable. The Credit Union is under 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.
Stop Payment Orders
Stop Payment Request—You may ask the Credit Union to stop payment on any draft or electronic payment you or any account owner draw upon your Share Draft Checking Account. You may not stop payment on any cashier’s check, teller’s check, or any other check, draft, or payment guaranteed by the Credit Union. You may request a stop payment via Online Banking, Bank-by-Phone, by fax, by mail, or in person. 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, the number of the draft, its exact amount, and the payee’s name. You under- stand that the exact information is necessary for the Credit Union’s system to stop the payment. If you give
the Credit Union incorrect or incomplete information, the Credit Union will not be responsible for failing to stop payment. If the stop payment order is not received in time for the Credit Union to act upon the order, the Credit Union will not be liable to you or to any other party for failing to stop the payment. If the Credit Union re-credits your account after allowing a payment over a valid and timely stop payment order, you agree to sign a state- ment describing the dispute with the payee, to transfer all of your rights against the payee or other holders of the draft to the Credit Union, and to assist the Credit Union in legal action taken against the person.
Duration of Order—In the event of lost or stolen checks, you may make an oral stop payment order which will lapse after fourteen (14) days unless confirmed in writing within that time. A written stop payment order will be effective for one (1) year. A written stop payment order may be renewed in writing from time to time. The Credit Union is not obligated to notify you when a stop payment order expires. If you confirm in writing your oral stop payment order, the one-year period dates from the giving of the oral order. A written stop payment order for electronic payments is effective indefinitely or as directed by you.
Service Fees & Indemnification—The Credit Union may apply a service fee for each draft or payment for which a stop payment order is requested, as set forth on the Service Fee Schedule. You should be aware that while payment of the item may be stopped, you may remain liable to any person, including the Credit Union, who is a holder of the item despite the stop payment order. You agree to indemnify and hold the Credit Union
harmless from all costs, including attorney’s costs, damages or claims related to the Credit Union’s 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.
Credit Union Liability—If the Credit Union does not properly complete a transaction according to this Disclosure, the Credit Union will be liable for your losses or damages not to exceed the amount of the transaction, except as otherwise provided by law. The Cred-it Union will not be liable if: (a) through no fault of the Credit Union, your account does not contain enough money to make the trans-action; (b) circumstances beyond the Credit Union’s control prevents the transaction; (c) your loss is caused by your negligence or the negligence of another finan- cial institution; or (d) the money in your account is subject to legal process or other claim. The Credit Un-ion will not be liable for consequential damages, except liability for wrongful dishonor. The Credit Union’s actions will constitute the exercise of ordinary care if such actions or nonactions are consistent with applicable state law, Federal Reserve regulations and op-erating letters, clearinghouse rules, and general banking practices followed in the area served by the Credit Union. You grant the Credit Union the right, in making payments of deposited funds, to rely exclusively on the form of the account and the terms and con-ditions of this Disclosure. Any conflict between oral representations by you or Credit Union employees and any written form will be resolved by reference to this Disclosure and applicable written form.
Credit Union Lien and Security Interest—To the extent you owe the Credit Union money as a borrower, guar- antor, endorser or otherwise, the Credit Union has 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, unless prohibited by law. Without prior notice to you, the Credit Union may apply these funds in any order to pay off your indebtedness. If the Credit Union chooses not to enforce its lien, the Credit Union does not waive its right to enforce the lien at a later time. In addition, you grant the Credit Union a consensual security interest in your accounts and agree that the Credit Union may use the funds from your accounts to pay any payment or amount due now or hereafter owed the Credit Union unless pro-hibited by applicable law. You agree to hold the Credit Union harmless from any claim arising as a result of the Credit Union’s exercise of its right to repayment. All accounts are nonassignable and nontransferable to third parties.
Legal Process—If any legal action, such as a levy, garnishment, or attachment, is brought against your account, the Credit Union may refuse to pay out any money from your account until the dispute is resolved or the Credit Union is legally required to pay out such funds in accordance with a court order or applicable law or regula- tions. If the Credit Union incurs any expenses or attorney costs in responding to a 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 the Credit Union’s lien and security interest.
Account Information—The Credit Union will not disclose any nonpublic personal information about you to any- one, except as permitted by law. The Credit Union will disclose information to third parties about your account or the transfers you make:
As necessary to complete the transaction.
To verify the existence or condition of your account to a third party in accordance with applicable law, such as a credit bureau or merchant.
To comply with a government agency or court order.
If you give the Credit Union your written permission.
Also, upon your request, the Credit Union will inform you of the name and address of each credit-reporting agency from which the Credit Union obtains a credit report in connection with your account.
Notices
Name or Address Changes—It is your responsibility to notify the Credit Union upon a change of address or change of name. The Credit Union is only required to attempt to communicate with you at the most recent address you have provided to the Credit Union. The Credit Union may require that a notice of a change in address be provided in writing.
Notice of Amendments—Except as otherwise prohibited by applicable law, the terms and conditions of this Disclosure are subject to change at any time. The Credit Union will notify you of any changes in terms, rates, or service fees as required by law. The Credit Union reserves the right to waive any term in this Disclosure. Any such waiver shall not affect the Credit Union’s right to enforce any right in the future.
Effect of Notice—Any written notice you give to the Credit Union is effective when it is actually received by the Credit Union. Any written notice the Credit Union gives to you is effective when it is deposited in the U.S. Mail, postage prepaid and addressed to you at your statement mailing address. Notice to any one account owner is considered notice to all owners of the account.
Taxpayer Identification Numbers and Backup Withholding—If your account is or becomes subject to backup withholding, the Credit Union is required by law to withhold and pay to the Internal Revenue Service (IRS) a required percentage of payments of divi-dends. Your failure to furnish a correct taxpayer identification number (TIN) or meet other applicable requirements may result in backup withholding. If you fail to provide your TIN, the Credit Union may suspend the opening of your account until a TIN is provided.
Statements
Contents—The Credit Union provides to you a periodic statement of transactions and activity on your account during the state-ment period. You understand and agree that statements are made available to you on the date they are mailed to you and that only one statement is necessary for a multiple party account. For Share Draft checks, you understand and agree that, when paid, your original draft becomes property of the Credit Union and may not be returned to you, but copies may be retained for up to seven (7) years by the Credit Union or a payable through financial institution and made available upon your request. If copies are not avail- able, the Credit Union will provide you with a letter identifying the item and the date that the item was paid.
Examination—The Credit Union will mail periodic statements to you to the address as shown on the Credit Union records. You are responsible for examining each statement and reporting any irregularities to the Credit Union. The Credit Union will not be responsi-ble for any forged, altered or unauthorized items drawn on your account if: (1) you fail to notify the Credit Union within thirty (30) days of the mailing date of the earliest statement regarding any forgery, alteration or unauthorized signature on any item described in the statement; or (2) any
items are forged or altered in a manner not detectable by a reasonable person, including the unauthor-ized use of a facsimile signature machine. You are in the best position to detect an unauthorized item.
Notice to Credit Union—You agree that the Credit Union’s retention of drafts does not alter or waive your responsibility to exam-ine your statements or the time limit for notifying the Credit Union of any errors. The statement will be considered correct for all purposes and the Credit Union will not be liable for any payment made or charged to your account unless you notify the Credit Un-ion in writing within the above time limit for notifying the Credit Union of any errors.
Inactive Accounts—If you have not made a withdrawal from, deposit to, or transfer involving your account for more than one (1) year, the Credit Union may classify your account as a dormant account. Unless prohibited by applicable law, the Credit Union may impose a service fee for continuing to process your dormant account as set forth on the Service Fee Schedule. The Credit Union will notify you, as required by law, at your last known address prior to imposing any service fees. You authorize the Credit Union to trans-fer funds from another account of yours to cover any applicable service fees. To the extent allowed by law, the Credit Union reserves the right to transfer the account funds to an account payable and to suspend any further account statements. If a deposit or with-drawal has not been made on the account and the Credit Union has had no other sufficient contact with you within the period speci-fied by state law, the account will be presumed to be abandoned. Funds in abandoned accounts will be reported and remitted in ac-cordance with state law. Once funds have been turned over to the state, the Credit Union has no further liability to you for such funds and if you choose to reclaim such funds, you must apply to the appropriate state agency.
Special Account Instructions—You may request the Credit Union to facilitate certain trust, will or court-ordered account ar-rangements. However, because the Credit Union does not give legal advice, it cannot counsel you as to which account arrangement most appropriately meets the specific requirements of your trust, will, or court order. If you ask the Credit Union to follow any in-structions that the Credit Union believes might expose it to claims, lawsuits, expenses, liabilities, or damages, whether directly or indirectly, the Credit Union may refuse to follow your instruction or may require you to obtain a court order or indemnify the Credit Union. Account changes requested by you, or any account owner, such as adding or closing an account or service, must be evi-denced by a new Account Agreement and accepted by the Credit Union.
Suspension and Discontinuance of Services—The Credit Union may temporarily suspend or permanently discontinue account services to account holders for reasonable cause, which includes misconduct, abusive behavior, participating in or attempting fraud, engaging in high-risk or prohibited account activities, causing a financial loss to the Credit Union, and/or account or service abuse. Account services may also be suspended to prevent the Credit Union from incurring a loss. Suspension and discontinuance of ser-vices applies to
all account types, including those held by employees or officials of the Credit Union. Under certain circum- stances, services may be reinstated, for example, where a member has caused the Credit Union a financial loss and later reimburses the Credit Union in full. Account holders may appeal the suspension or discontinu- ance of services to Education Federal Credit Union’s Supervi-sory Committee. Unless expelled from member- ship pursuant to the Federal Credit Union Act, members retain the right to maintain a share savings account (while earning applicable dividends) and the right to vote in annual and special meetings.
Termination of Account—The Credit Union may require you to close your account and establish 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 share drafts are lost or stolen; (5) if there are excessive returned unpaid items; (6) if there has been any misrepresentation or any other abuse of any of your accounts; or (7) if the Credit Union reasonably deems it necessary to prevent a loss to the Credit Union. You may terminate any single party account at any time by notifying the Credit Union in writing. The closing of your account requires that all outstanding indebtedness to the Credit Union be paid in full. The Credit Union reserves the right to require the consent of all multiple party account owners for termination of a mul-tiple party account. The Credit Union is not responsible for payment of any share draft check, withdrawal, or other item after your account is terminated; however, if the Credit Union pays an item after termination, you agree to reimburse the Credit Union for the payment.
Termination of Membership—You may terminate (withdraw) your Credit Union membership by closing your account. In order to withdraw your membership, all outstanding indebtedness to the Credit Union must be paid in full.
Expulsion—A member may be expelled from the Credit Union for non-participation in the affairs of the Credit Union, which is de-fined as failing to maintain a membership share pursuant to the Credit Union’s Bylaws.
Death or Incompetence of Account Owner—You agree to notify the Credit Union if any person with a right to withdraw funds from your account dies or becomes legally incompetent. The Credit Union may continue to honor all transfers, withdrawals, deposits and other transactions on the account until the Credit Union is notified of the member’s death or of a court adjudication of incompe-tency. Once the Credit Union is notified, the Credit Union may pay drafts or honor other payments or transfer orders authorized by the deceased/incompetent member for a period of ten (10) days unless the Credit Union receives instructions from any person claim-ing
an interest in the account to stop payment on the share draft checks or other items. You agree that the Credit Union can require that anyone who claims funds in your account after your death indemnify the Credit Union for any losses resulting from honoring that claim. In the event you are adjudicated incompetent by a court order, all activity on your account will be by court order if the account is a single party account. The terms and conditions of this Disclosure will be binding upon any heirs or legal representatives of any account owner.
Severability—In the event that any portion of this Disclosure is held by a court to be invalid or unenforceable for any reason, the remainder of this Disclosure shall not be invalid or unenforceable and will continue in full force and effect. All headings are in-tended for reference only and are not to be construed as part of the Disclosure.
Enforcement—You agree to be liable to the Credit Union for any loss, cost or expense that the Credit Union incurs as a result of your failure to follow the terms and conditions of this Disclosure. You authorize the Credit Union to deduct any such loss, costs or expenses from your account without prior notice to you. In the event the Credit Union brings a legal action to enforce the terms and conditions of this Disclosure or collect any amount due under this Disclosure, the Credit Union shall be entitled, subject to applicable law, to payment of its reasonable attorney’s costs, including costs on any appeal, bankruptcy proceedings and any post-judgment collection actions. In the event a court action is initiated by you or the Credit Union, you agree to waive the right to jury trial in dis-putes concerning this account.
Governing Law—The terms and conditions of this Disclosure are governed by applicable Bylaws of the Credit Union, the laws of the State of Florida, and all applicable federal laws and regulations. To the extent permitted by applicable law, you agree that any legal action, including arbitration proceedings, regarding this Disclosure shall be brought in Miami-Dade County, Florida.
Unlawful Use of Financial Services—Any financial service provided by the Credit Union may be used for any transaction per-mitted by law. You agree that illegal use of any financial service will be deemed an action of default and/or breach of contract, and such service and/or other related services may be terminated at the Credit Union’s discretion. You further agree, should illegal use occur, to waive the right to sue the Credit Union for such illegal activity directly or indirectly related to it. You also agree 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.
The Credit Union has established policies and procedures in accordance with the U.S. Unlawful Internet Gambling Act of 2006 (the Act) to prohibit the processing of payments through the Credit Union for Internet gambling transactions. Any attempt to process a payment through the Credit Union for Internet gambling is restricted by the Act and is a violation of the terms of your account.
Claim of Loss—If you claim a credit or refund because of a forgery, alteration, or any other unauthorized with- drawal, you agree to cooperate with the Credit Union in the investigation of the loss, including giving us an affidavit containing whatever rea-sonable information the Credit Union requires concerning your account, the transaction, and the circumstances surrounding the loss. You will notify law enforcement authorities of any criminal act related to the claim of lost, missing or stolen checks, or unau-thorized withdrawals. The Credit Union will have a reasonable period of time to investigate the facts and circumstances surround-ing any claim of loss. Unless the Credit Union has acted in bad faith, the Credit Union will not be liable for special or conse- quential damages, including loss of profits or opportunity, or for attorneys’ costs incurred by you. You agree that you will not waive any rights you have to recover your loss against anyone who is obligated to repay, insure, or otherwise reimburse you for your loss. You will pursue your rights or, at our option, assign them to us so that we may pursue them. Our liability will be reduced by the amount you recover or are entitled to recover from these other sources.
Credit Reporting—The Credit Union may report information about your share and loan accounts to credit bureaus. Late pay-ments, missed payments, or other defaults on your accounts may be reflected in your credit report.
Reopened Accounts—Should your account be closed at any time or times by withdrawal of the balance of the account, and later re-opened by you, such re-opened account shall be subject to all of the terms and condi- tions of this Disclosure, whether or not any new Account Agreement is signed.
Binding Arbitration and Class Action Waiver: Resolution of Disputes by Arbitration—This section contains important information regarding your accounts and all related services. It provides that either you or we can require that any disputes be resolved by bind-ing arbitration. Arbitration replaces the right to go to court, including the right to a jury trial and the right to participate in a class ac-tion or similar proceeding. In arbi- tration, the dispute is submitted to a neutral party, an arbitrator, instead of a judge or jury. Arbitra-tion proce- dures may be more limited than rules applicable in court.
Agreement to Arbitrate Disputes—Either you or we may elect, without the other’s consent, to require that any dispute between us concerning your accounts and the services related to your accounts be resolved by binding arbitration, except for those disputes specifically excluded below. This Arbitration Agreement (Agreement) is entered into pursuant to the Federal Arbitration Act, 9 U.S.C. §§ 1 – 16 (the “FAA”).
Disputes Covered by Arbitration—Claims or disputes between you and us arising out of or relating to your account(s), transac-tions involving your account(s), safe deposit box, and any related service with us are subject to arbitration. Any claims or disputes arising from or relating to this Agreement, any prior Account Agreement between us, or the advertising, the application for, or the approval or establishment of your account are also included. Claims are subject to arbitration regardless of what theory they are based on or whether they seek legal or equitable remedies. Arbitration applies to any and all such claims or disputes, whether they arose in the past, may currently exist or may arise in the future. Disputes also include claims or disputes relating to the enforce- abil-ity, validity, scope or interpretation of any of these arbitration provisions. This means that sole jurisdiction to determine such claims or disputes, including the issue of whether a claim or dispute between us is arbitrable and subject to these provisions, shall lie with the arbitrator. In making such determinations, this arbitration provision
shall be construed and interpreted in the broadest way the law will allow. All such disputes and claims are referred to in this section as “Claims.” An exception to arbitration of Claims is that both you and we have the right to pursue a Claim in a small claims court instead of arbitration, if the Claim is in that court’s jurisdic-tion and proceeds on
an individual basis. Claims or disputes arising from your status as a borrower under any loan agreement with the Credit Union are also excluded from this Resolution of Disputes by Arbitration provision.
No Class Action or Joinder of Parties—You acknowledge that you and we agree that no class action, class- wide arbitration, private attorney general action, or other proceeding where someone acts in a representative capacity, may be pursued in any arbitration or in any court proceeding, regardless of when the claim or cause of action arose or accrued, or when the allegations or facts underlying the claim or cause of action occurred. Unless mutually agreed to by you and us, claims of two or more persons may not be joined, consolidated, or otherwise brought together in the same arbitration (unless those persons are joint account owners or bene- ficiaries on your account and/or related accounts, or parties to a single transaction or related transaction), whether or not the claim may have been assigned.
Right to Reject this Resolution of Disputes by Arbitration Provision—You have the right to opt out of this Agreement to arbitrate if you tell us within 30 days of the first date on which you established your origi- nal membership with us. To opt out, send us written notice that you reject the Resolution of Disputes by
Arbitration provision, including your name as listed on your account relation-ship(s) and any related account numbers to the following address: P.O. Box 830370, Miami, FL 33283-0370. Otherwise, this Agree-ment to arbitrate will apply without limitation.
The Arbitration Proceeding—The arbitration must be filed with one of the following neutral arbitration forums: American Arbi-tration Association (“AAA”) or JAMS. For AAA, the arbitration will be conducted in accordance with the AAA Consumer Due Process Protocol in concert with the AAA Consumer Arbitration Rules. For JAMS, the arbitration will be conducted in accordance with the JAMS Comprehensive Arbitration Rules & Procedures. If there is a conflict between a particular provision of the AAA or JAMS Rules and this arbitration provision and/or this Agreement, this arbitration provision and this Agreement will control. If JAMS or the
AAA is unable or unwilling to handle the claim for any reason, then the matter shall be arbitrated by a neutral arbitrator selected by agreement of the parties (or, if the parties cannot agree, selected by a court in accor- dance with the FAA). The neutral arbitrator selected by the parties or the court shall apply the Federal Rules of Evidence and the Federal Rules of Procedure concerning discov-ery, except that the above class action waiver is specifically enforceable notwithstanding any Federal Rule of Procedure to the con-trary.
Costs—The party initiating the arbitration shall pay the initial filing fee. If you file the arbitration and an award is rendered in your favor, we will reimburse you for your filing fee. If there is a hearing, we will pay the fees and costs of the arbitration for the first day of that hearing. All other fees and costs will be allocated in accordance
with the rules of the arbitration forum. However, we will ad-vance or reimburse filing and other fees if the arbitra- tor rules that you cannot afford to pay them or finds other good cause for requir-ing us to do so, or if you ask us in writing and we determine there is good reason for doing so. Each party shall bear the expense of their respec- tive attorneys, experts, and witnesses and other expenses, regardless of who prevails, but a party may recover any or all costs and expenses from another party if the arbitrator, applying applicable law, so determines.
Right to Resort to Provisional Remedies Preserved—Nothing herein shall be deemed to limit or constrain our right to resort to self-help remedies, such as the right of set-off or the right to restrain funds in an account, to interplead funds in the event of a dis-pute between claimants to the funds in the account, to exercise any security interest or lien we may hold in property, or to comply with legal process, or to obtain provisional remedies such as injunctive relief, attachment, or garnishment by a court having appro-priate jurisdiction; provided, however, that you or we may elect to arbitrate any dispute related to such provisional remedies.
Severability, Survival—These arbitration provisions shall survive (a) termination or changes to your accounts or any related ser-vices; (b) the bankruptcy of any party; and (c) the transfer or assignment of your accounts or any related services. If any portion of this Resolution of Disputes by Arbitration provision is deemed invalid or unenforceable, the remainder of this Resolution of Disputes by Arbitration provision shall remain in force. No portion of this Resolution of Disputes by Arbitration provision may be amended, severed, or waived, absent a written agreement between you and us.