Effective October 15, 2015
Definitions, rules, rates, and terms for all Share Draft Accounts
- Account Defined: The Share Draft Account is the standard checking account. A Regular Share Account must be open before this account can be opened. A Debit Card is available with this account. The Share Draft Account is subject to a credit approval process.
- Joints, Custodians, Beneficiaries and Trusts: The Share Draft Account may have authorized users that are different from the member’s regular share account. The primary member must authorize and obtain signatures for the Credit Union’s required application and agreement.
- Access to Account: Access (deposits, withdrawals, transfers or inquiries) can be obtained by personal appearance, calling, written instruction, touch tone access, writing a check or draft, Debit Card, direct payment and deposit through the Automated Clearing House (ACH) of the Federal Reserve. Withdrawals to third parties (bill paying) are allowed, but carry a fee of $2 per check written. Electronic bill paying by ACH does not have a fee. The home banking Billpayer service has a monthly fee of $3.80.
- Dividends: Earnings in Credit Union are referred to as Dividends, but are the same as savings interest for IRS purposes. Dividends are paid from current income and available earnings after required transfers to reserves at the end of each dividend period. The Dividend Period is the period of time at the end of which an account earns dividend credit. The Dividend Rates and Annual Percentage Yield (APY) are the rates and yields as of the last dividend declaration date which is set forth in the Rate Schedule. For all accounts, dividends will begin to accrue on all deposits on the business day you make the deposit to your account.
- Annual Percentage Yield (APY): The APY is a percentage rate that reflects the total amount of dividends to be paid based on the dividend rate and frequency of compounding for an annual period. (See Newsletter and website for latest rate information).
- Method of Dividend Calculation: Dividends are computed by multiplying the stated rate by the balance in the account at the close of business each day and dividing by 365 days, or 366 days in Leap Years. These Daily Balance calculations are accumulated at the end of the calendar quarter and then paid/posted to the account.
- Minimum Balance to Earn Dividends: The Share Draft Account has a minimum balance requirement of $250.00 to earn dividends. End of Day balances below this amount will NOT earn dividends. All other accounts earn dividends for every cent on deposit at the End of Day.
- Minimum Balance Requirements: There is currently no minimum balance requirement for the Share Draft Account.
- Share Draft Fees: See Fee Schedule for all fees associated with a share draft account.
- Research of Disputed Debit Card Items: A fee of $10.00 per ½ hour is charged for any research to be done by the Credit Union as a result of Debit card items which are disputed by the member. However this fee will be refunded to the member’s account if and when the dispute is substantiated.
- Funds Availability: Funds deposited/transferred into a Share Draft Account by any EFT (Electronic Funds Transfer) methods are available at the opening of business on the effective day of transfer. Deposits by cash in person are available immediately. Funds deposited by check or draft are considered as posted on the day of receipt for dividend purposes and funds availability. The Credit Union reserves the right to exercise holding periods of 1, 2 or 5 days on certain out-of-city or state checks, per federal regulations (Chart available in Credit Union and on website.) If an adjustment (debit/credit) from a merchant or ATM owner is posted to your account, you will be notified in writing.
- Payment Order of Your Transactions: To assist you in handling your account(s) with us we are providing you with the following information regarding how we process the items that you authorize. When processing items drawn on your account, our policy is to pay them as we receive them. We commonly receive items to be processed against your account(s) multiple times per day in what is referred to as presentment files. Each presentment file received commonly contains a large amount of a specific type of item (check, ACH, or ATM/POS). It is common for each of these presentment files to contain multiple items to be processed against your particular account. In this case, when multiple items are received at once, the items will be paid as follows: checks are paid in order of how they are presented, ACH items, credits post before debits; ATM/POS items are paid in the order they are presented.
Important to You: The order in which items are paid is important if there is not enough money in your account to pay all of the items that are presented. Our payment policy may cause your larger and perhaps more important, items to not be paid first (such as your rent or mortgage payment). If an item is presented without sufficient funds in your account to pay it, we may, at our discretion, pay the item (creating an overdraft) or return the item (NSF). The amounts of the overdraft and NSF fees are disclosed on the Fee Schedule. We encourage you to make careful records and practice good account management. This will help you to avoid writing checks or drafts without sufficient funds and incurring the resulting fee.
- Deposit of Funds Requirements:
- Endorsements: We may accept transfers, checks, drafts and other item for deposit into any of your accounts if they are made payable to, or to the order of, one or more account owners even if they are not endorsed by all payees. You authorize us to supply missing endorsements of any owners if we choose. If a check, draft or item that is payable to two or more persons is ambiguous as to whether it is payable to either or both, we may process the check, draft or item as though it is payable to either person. If insurance, government, or other check or draft requires an endorsement as set forth on the back of the check or draft, we may require endorsement as set forth on the item. Endorsements must be made on the back of the item within 1 ½ inches from the top edge, although we may accept endorsements outside this space. However, any loss we incur from a delay or processing error resulting from an irregular endorsement or other markings by you or any prior endorser will be your responsibility.
- Collection of Items: We act only as your agent and are not responsible for handling items for deposit or collection beyond the exercise of ordinary care. Deposits made by mail or at unstaffed facilities are not our responsibility until we receive the We are no t liable for the negligence of any correspondent or for loss in transit. We may send any item for collection. Items drawn on an institution outside the US and/or in non US Dollar funds are handled on a collection basis only. You waive any notice of nonpayment, dishonor or protest regarding items we purchase or receive for credit or collection to your account.
- Final Payment: All items, EFT or ACH transfers credited to your account are provisional until we receive final paymen If final payment is not received, we may charge your account for the amount of such items or ACH transfers and impose a return item fee on your account. Any collection fees we incur may be charged to your account. We reserve the right to refuse or return any item or funds transfer.
- Direct Deposits: We may offer pre-authorized deposits (e.g. payroll checks, Social Security or retirement checks, e) or transfers from other accounts. You must pre-authorize distribution of direct deposits or transfers in writing. 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, unless you cancel an authorization, we will continue making direct deposits or transfers 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, we may deduct the amount returned from any of your accounts, unless prohibited by law.
- Government payments or benefits: By accepting this share draft account, if your account is overdrawn, you authorize us to deduct the amount your account is overdrawn from any deposit including deposits of government payments or benefits.
- Crediting of ATM Deposits: Deposits made prior to the deposit cutoff time, if any, will be credited to your account on the next business d Deposits made after the deposit cutoff time, weekend or holidays will be credited on the second business day.
- Postdated and Stale Dated Drafts: We may pay any draft without regard to its date unless you notify us in writing of a postdating pursuant to applicable laws and our requirements, together with any fee set forth in the Schedule. We are not responsible if you give us an incorrect or incomplete description, or untimely notice. You agree not to deposit checks, drafts or other items before they are properly payable. We are not obligated to pay any check or draft drawn on your account, which is presented more than six (6) months past its date; however, we have no obligation or liability to you or any other party to the instrument or in the chain of the collection process if we do so.
- Stop Payment Orders: If you don’t want us to pay a specific written instrument such as a personal check, you can ask us to place a “Stop Payment Order” (“SPO”) on the instrument. You can notify us by mail, telephone, electronically, or in person. Any such instruction must be given to an employee of the Credit Union. Your SPO will take effect when we record it on your account. A SPO will not be valid and binding on us unless your SPO includes your account number, the number and date of the written instrument, the name(s) of the payee(s), and the exact amount of the instrument. Only the person placing the SPO may release the SPO. We will charge you a service charge for any SPO as set forth in the Schedule. If you five an oral SPO that is not confirmed in writing by you or us within fourteen (14) days, your SPO will expire and the instrument may thereafter be paid. If you provide written confirmation, your SPO will be effective for a period of six (6) months. To extend the SPO for an additional six (6) months, you must deliver to us an additional written request as described above.
The Credit Union will not be responsible for any loss as a result of honoring a check: (1) more than fourteen (14) days after receipt of your oral order to stop payment; (2) more than six (6) months after your written order to stop payment; (3) through inadvertence, oversight or accident, we honor any postdate check; (4) if you fail to provide us the complete or accurate information; (5) or fail to meet your obligations as noted in this section or otherwise in this Agreement. We have no obligation to accept any order to stop payment on any certified check, cashier’s check, teller’s check or other instrument guaranteed by us. You will be responsible to the Credit Union if any claim or demand is made against us as a result of our acting in accordance with your stop payment order.
- Insufficient Funds and Cashier’s Checks: You agree that any stop payment order received when you do not have sufficient funds on deposit in your account to cover the item on which you are requesting us to stop payment shall be subject to a service charge for return of an NSF item rather than a service charge for a stop payment order. Cashier’s checks/Teller Checks: If you seek to return any cashier’s check or teller check or like item after it is issued to you or another, then you agree we may treat such items as “lost, stolen or destroyed” under the Uniform Commercial Code and reimbursement may not be made for 91 days from the date issued.
- Electronic Records: You acknowledge and agree that we may in our discretion store all records electronically; and that we will not retain and have no obligation to retain any original documents for any period of time. This applies to all documentation including but not limited to checks, transaction records, notes, mortgages, deed of trust and other loan and/or security documentation. We will routinely destroy all original documentation. We may store records electronically via imaging, scanning, filming or other technology used in the financial services industry for the storage of documentation via internal processes or third-party processors that we approve for these services. You agree that such storage shall be secure, and further agree that such records shall for all purposes be recognized and admissible in evidence or otherwise prove the agreements, rights and obligations of the parties pursuant to any such records.
- Statements: If the Credit Union provides a periodic statement for your account(s) you will receive a periodic statement from us, or notice of the availability of your statement describing all activity on your account(s) during the statement period as required by law. If you have a multiple party account we are only required to provide one periodic statement to any of the account owners identified on the Membership Application. If provided electronically, an email will be sent to you that will direct you to your home banking page to access your statement. Emails from us will be sent to the e-mail address provided by any owner. Contact us if you do not receive your regular statement. If you do not receive or have any problem accessing a periodic statement, you agree to notify us in writing within fourteen (14) days of the date that the statement is usually sent or made available by us. If you do not so notify us, you will be deemed to have received the statement for all purposes.
YOUR DUTY TO EXAMINE AND REPORT PROBLEMS: AS USED IN THIS SECTION, THE TERM “PROBLEM” MEANS ANY ERROR, ALTERATION, COUNTERFEIT CHECK, OR UNAUTHORIZED TRANSACTION (INCLUDING, BUT NOT LIMITED TO, FORGED OR MISSING SIGNATURES AND EXCLUDING CONSUMER ELECTRONIC BANKING TRANSACTIONS) RELATED TO YOUR ACCOUNT BECAUSE YOU ARE IN THE BEST POSITION TO DISCOVER ANY PROBLEM. YOU AGREE THAT IT IS YOUR DUTY TO PROMPTLY EXAMINE YOUR STATEMENT AND REPORT TO US ANY PROBLEM ON OR RELATED TO YOUR STATEMENT. YOU AGREE THAT WE WILL NOT BE RESPONSIBLE FOR ANY PROBLEM THAT: (1) YOU DO NOT REPORT TO US IN WRITING WITHIN A REASONABLE TIME NOT TO EXCEED 30 CALENDAR DAYS AFTER WE MAIL THE STATEMENT (OR MAKE THE STATEMENT AVAILABLE) TO YOU; (2) RESULTS FROM A FORGERY, COUNTERFEIT OR ALTERATION SO CLEVER THAT A REASONABLE PERSON CANNOT DETECT IT (FOR EXAMPLE UNAUTHORIZED CHECKS MADE WITH YOUR FACSIMILE OR OTHER MECHANICAL SIGNATURE DEVICE OR THAT LOOK TO AN AVERAGE PERSON AS IF THEY CONTAIN AN AUTHORIZED SIGNATURE); OR (3) AS OTHERWISE PROVIDED BY LAW OR REGULATION. YOU AGREE THAT THIS 30-DAY PERIOD TO EXAMINE YOUR STATEMNT AND REPORT PROBLEMS TO US ARE WITHOUT REGARD TO OUR LEVEL OF CARE OR THE COMMERCIAL REASONABLENESS OF OUR PRACTICES, AND WITHOUT REGARD TO WHETHER CANCELLED CHECKS ARE SUPPLIED TO YOU.
If you make a claim against us in connection with a problem, we reserve the right to conduct a reasonable investigation before re-crediting your account and you agree to fully cooperate in such investigation. Within 30 days of the date of mailing, you agree to complete and return an affidavit of forgery on the form we provide you along with any other information we may request. You further agree to file a police report if we request. If you refuse to sign such an affidavit or fail to return the affidavit and other requested documentation within 30 days of the date we mail it to you, you agree that we may consider the matter resolved and reverse any provisional credit provided. If as a result of our investigation, we determine that the charge to your account was proper, any provisional credit will be reversed. You agree to pay any fees assessed or accrued against your account during the investigation or that may arise upon reversal of any provisional credit.
- Closing Account: A share Draft Account may be closed by the member by informing the Credit Union in writing. A $5.00 closing fee will be charged.
- Overdraw Accounts for Share Drafts: A member may designate, in writing, up to two (2) other accounts at the Credit Union, to draw upon to cover checks that are NSF at presentation. Regulation D is followed and may block any transfers over 6 in a month’s time.
- Holds/Pledges on Accounts: The Credit Union reserves the right to place “holds” on funds in accounts for legitimate reasons, such as overdrawn negative balances, pre-authorized Debit Card purchases, out of state personal checks, etc. The Credit Union must notify the member of these holds, but is not obligated to inform the member before the hold takes place. Pledges may be made to hold funds in accounts to comply with lending covenants.
- Converting a Share Draft Account: If there is a need to convert a share draft account to a new account number due to possible fraud, identity theft, changing the name to a trust or any other reason, a $10.00 fee will be charged.
- “E-Mail” and Facsimile Communications: You acknowledge and agree that the internet is considered inherently insecure. Therefore, you agree that we have no liability to you whatsoever for any loss, claim or damages arising or in any way related to our response(s) to any e-mail or other electronic communication, which we in good faith believe you have submitted to us. We have no duty to investigate the validity or to verify any e-mail or other electronic communication; and may respond to an e-mail at either the address provided with the communication, the e-mail address in your Membership Application, or any other application or written communication actually received by us. Any account owner, or authorized user may change the e-mail address for statements and other information from us at any time. The Credit Union may not immediately receive e-mail communications that you send. We reserve the right to require any notices from you be submitted to us in writing and we may refuse to send certain information through unsecured e-mail communications.
- Liability; Disputes and Costs and/or Fees:
- Courtesy Overdraft Privilege: Courtesy Overdraft Privilege (ODP) is a non-contractual courtesy that we may provide to our members with a share draft (checking) account. We may cover insufficient fund checks, electronic funds transfers, Debit MasterCard transactions, or other payment/withdrawal requests up to your approval limit. We will charge our normal NSF fee for each item and send you a written notice each time an overdraft occurs. (See Courtesy Overdraft Privilege disclosure for details.
- Other/Miscellaneous Terms: The above rates and fees are not intended to be all encompassing. Each type of account may have additional terms and rules that are explained under separate disclosures. Contact the Credit Union for any additional information. Notice to one account holder shall be considered notice to all holders of the account.