TRACY FEDERAL CREDIT UNION'S TRUTH-IN-SAVINGS DISCLOSURE

To open your account, complete the appropriate account card and return it to our Member Services Representative. Please read this brochure completely and retain it with your personal records.

All agreements and disclosures shall be construed in accordance with the provisions of the California Uniform Commercial Code (UCC). Share accounts, share draft accounts and share certificate accounts are subject to the requirements below and such other terms and conditions as established by the Board of Directors and as contained in the account agreements

GENERAL INFORMATION ABOUT ALL OF OUR ACCOUNTS
PAR VALUE
The par value of a share in the Tracy Federal Credit Union is $5.

ACCRUAL OF DIVIDENDS
Dividends begin to accrue on the business day you deposit cash or non-cash items (e.g., checks) to your account if deposited before close of business. If you close your share or share certificate account before dividends are credited, you will not receive accrued dividends.

DIVIDEND RATES
The initial dividend rate and annual percentage yield on our share or share certificate accounts are stated on the Rate Schedule accompanying this Disclosure. Dividends are paid from current income and available earnings after required transfers to reserves at the end of a dividend period.

BYLAW REQUIREMENTS
The maximum amount of shares which may be held by any one member shall be established from time to time by resolution of the board. A member who fails to complete payment of one share within 6 months of his admission to membership, or within 6 months from the increase in the par value in shares, or a member who reduces his share balance below the par value of one share and does not increase the balance to at least the par value of one share within 6 months of the reduction may be terminated from membership at the end of a dividend period.

Shares may be transferred only from one member to another, by written instrument in such form as the Credit Union may prescribe. The Credit Union reserves the right, at any time, to require members to give, in writing, not less than 7 days and not more than 60 days notice of intention to withdraw the whole or any part of the amounts so paid in by them.

No member may withdraw shareholdings that are pledged as required for security on loans without the written approval of the Credit Union, except to the extent that such shares exceed the members total primary and contingent liability to the Credit Union. No member may withdraw any shareholdings below the amount of his/her primary or contingent liability to the Credit Union if he/she is delinquent as a borrower, or if borrowers for whom he/she is comaker, endorser, or guarantor are delinquent, without the written consent of the Credit Union.

REQUIREMENT TO MAINTAIN A PRIMARY SHARE ACCOUNT
You must open a Primary Share Account to open any subsequent accounts. You must maintain the Primary Share Account to avoid closure of that account and any subsequent accounts.

ABOUT OUR SHARE ACCOUNTS
Tracy Federal Credit Union’s share accounts let you deposit your money in a savings account and withdraw your money generally at any time. Our share accounts are Primary Shares, Secondary Shares, Christmas Club, IRA Shares, and Money Market Accounts.

RATE INFORMATION
Out share accounts are designated variable rate accounts on the Rate Schedule. These rates and yields may change at any time at the Credit Union’s discretion.

BALANCE INFORMATION
We compute the balance in our share accounts to determine the dividends you will be paid by using the average daily balance method which applies a periodic rate to the average daily balance in the account for the period. We calculate the average daily balance by adding the balance in the account for each day of the period and dividing that figure by the number of days in the period.

DIVIDEND COMPOUNDING AND CREDITING
Dividends will be compounded monthly and will be credited quarterly. For the share accounts the dividend period is quarterly. For example, the beginning date of the first dividend period of the calendar year is January 1 and the ending date is March 31. All other dividend periods follow this same pattern of dates. The dividend declaration date follows the ending date of a dividend period. The most recent dividend declaration date is reflected on the accompanying Rate Schedule.

MINIMUM BALANCE AND DEPOSIT REQUIREMENTS
The minimum deposit required for you to open a Primary Share Account is $25. You must maintain an average daily balance of $250 in your share account to obtain the annual percentage yield stated on the Rate Schedule. You must maintain a minimum balance of $25 in your share account to avoid closure and a service fee.

INCORPORATION OF IRA AGREEMENT AND DISCLOSURES
All other terms and disclosures for our Individual Retirement Accounts are contained in the Credit Union’s Individual Retirement Account agreement and disclosure statement, which by this reference is incorporated into this account disclosure in its entirety. When you open your Individual Retirement Account, the Credit Union agreement and disclosure statement will be provided to you.

ABOUT OUR MONEY MARKET ACCOUNTS
Our Money Market Account is a share account accessible by share draft/check.

MINIMUM BALANCE AND DEPOSIT REQUIREMENTS
The minimum deposit required for you to open a Money Market Account is $2500. You must maintain a minimum daily balance of $2500 in this account to obtain the Annual Percentage Rate and to avoid a service fee as stated on the accompanying Rate and Fee Schedule.

TRANSACTION LIMITATIONS
The minimum amount you may withdraw is $500 per withdrawal. No more than six pre-authorized, automatic, or telephone transfers may be made from your savings account or money market deposit account to another account at the Credit Union or to a third party in any calendar month, and no more than three of these six transfers may be made by check, draft, debit card, or similar order payable to a third party. If you exceed, or attempt to exceed, these transfer limits, the excess transfer requests may be refused or reversed, a fee may be imposed on the excess transfer request, and the Credit Union may reclassify or close your account.

ABOUT OUR SHARE DRAFT ACCOUNTS
Tracy Federal Credit Union offers share draft accounts which let you withdraw your money and write checks against your account at anytime. Our share draft accounts are non-dividend earning accounts.

MINIMUM BALANCE AND DEPOSIT REQUIREMENTS
The minimum deposit required for you to open a share draft account is $100.

ABOUT OUR SHARE CERTIFICATE ACCOUNTS
Tracy Federal Credit Union’s share certificate accounts let you deposit your money for a specified period of time. Our share certificate accounts are Term and IRA Certificate Accounts.

ANNUAL PERCENTAGE YIELD
The annual percentage yield is based on an assumption that dividends will remain on deposit until maturity. If you make a withdrawal from your account, your earnings will be reduced.

MATURITY
Your account will mature as reflected on the Rate Schedule. The maturity date will be stated on the receipt provided to you at the time of opening your account.

BALANCE INFORMATION
We compute the balance in our share certificate accounts to determine the dividends you will be paid by using the daily balance method which applies a daily periodic rate to the balance in your account each day.

RATE INFORMATION
Our share certificate accounts are designated fixed rate accounts on the Rate Schedule. You will be paid this rate and yield until maturity.

DIVIDEND COMPOUNDING AND CREDITING
Dividends will be compounded monthly and will be credited monthly. If you close your account before dividends are credited, you will not receive accrued dividends.

MINIMUM BALANCE AND DEPOSIT REQUIREMENTS
The minimum deposit required for you to open a share certificate account is indicated on the Rate Schedule. You must maintain the minimum daily balance to obtain the annual percentage yield stated on the Rate Schedule and to avoid closure.

ACCOUNT LIMITATIONS
You may not make deposits into or withdrawals from this account until the maturity date. See early withdrawal penalties.

RENEWAL OF ACCOUNT/GRACE PERIOD
Your account will automatically renew at maturity for the same time period as the original term unless you withdraw all of the funds in your account at maturity or within a grace period of 7 days after maturity.

EARLY WITHDRAWAL PENALTY
We may impose a penalty if you withdraw any of the funds from your account before the maturity date. The penalty imposed shall be as follows: (a) for terms of 90 days, an amount equal to 30 days dividends on the amount withdrawn each time you make a withdrawal; (b) For terms of 6 months or greater, an amount equal to 90 days dividends on the amount withdrawn each time you make a withdrawal.

EXCEPTIONS TO PENALTIES
The penalties stated above will not apply if:

1. The withdrawal is made subsequent to the death of any owner of the share account or the share certificate account, or is made pursuant to the Credit Union’s bylaws.
2. The share certificate account is part of a pension plan which qualifies or is qualified to specific tax treatment under Section 401(d) or 408 of the Internal Revenue Code and withdrawal is made to effect distribution of the funds evidenced by such account following the participant’s death or disability or upon attaining not less than 70 1/2 years of age, or
3. Such withdrawal is made as a result of the voluntary or involuntary liquidation of the Credit Union issuing the account.

INCORPORATION OF IRA AGREEMENT AND DISCLOSURES
All other terms and disclosures for our Individual Retirement Accounts are contained in the Credit Union’s Individual Retirement Account agreement and disclosure statement, which by this reference is incorporated into this account disclosure in its entirety. When you open your Individual Retirement Account, the Credit Union agreement and disclosure statement will be provided to you.

ELECTRONIC FUND TRANSFERS DISCLOSURE AND AGREEMENT
This EFT Disclosure and Agreement as amended from time to time (“Agreement”) sets forth the terms and conditions governing the use of the Tracy Federal Credit Union electronic transfer services. Disclosure information that applies to all electronic services offered by Tracy Federal Credit Union is given below, followed by specific disclosure information for each service. This Agreement takes the place of all prior agreements and disclosures governing the use of all electronic services. By retaining, using, or allowing others to use the electronic services offered by Tracy Federal Credit Union, you are agreeing to be bound by the terms and conditions of this Agreement. In this Agreement, the term “you” and “your(s)” refer to the member, and the terms “we,” “us” and “our(s)” refer to Tracy Federal Credit Union.

PERSONAL IDENTIFICATION NUMBER
We will issue you a Personal Identification Number (PINI. This number should be memorized. After memorizing it, you should destroy it. Your accounts can only be accessed by the use of an access device with the PIN. If you forget your PIN, contact the Credit Union and we will issue you a new one.

RIGHT TO RECEIVE DOCUMENTATION OF TRANSACTIONS
You will get a monthly account statement reflecting all of your transactions unless there is no activity in a particular month. In any case you will get the statement at least quarterly. Depending on the terminal, you will receive, or you may choose to receive, a receipt at the time you make a transaction at a terminal. If you do receive a receipt, retain the receipt to compare with your monthly statement from the Credit Union.

YOUR LIABILITY FOR LOST, STOLEN OR UNAUTHORIZED TRANSACTIONS
Tell us AT ONCE if you believe your ATM/POS Card and/or PIN has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account plus your maximum overdraft line of credit. If you tell us within sixty (60) days of our sending you the statement on which the unauthorized use appears, you can lose no more than $50.00 if someone used your ATM/ POS Card or PIN without your permission.

Also, if your statement shows transactions that you did not make, tell us at once. If you do not tell us within 60 days after the statement was mailed to you, you may not get back any money you lost after the 60 days if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason (such as a long trip or hospital stay) kept you from telling us, we will extend the time periods.

If you have authorized someone else to use the ATM/POS Card and/or PIN, you are responsible for all transactions that person or persons initiates at any time, even if the amount or transactions exceed what you may have authorized, unless you notify us that transfers by that person or persons are no longer authorized.

LIABILITY FOR VISA CHECK CARD TRANSACTIONS
If there is unauthorized use on your consumer VISA Check Card or in an Interlink transaction, and the transactions take place on the VISA network, then your liability will be zero ($0.00). This provision limiting your liability does not apply to either VISA commercial cards or ATM cash disbursements. Additionally, your liability with respect to unauthorized transactions may be greater than the above limit, to the extent allowed under applicable law, if the Credit Union reasonably determines, based on substantial evidence, that you were grossly negligent or fraudulent in the handling of your account or card.

HOW TO NOTIFY THE CREDIT UNION IN THE EVENT OF AN UNAUTHORIZED TRANSACTION
If you believe your ATM/POS Card or PIN has been lost or stolen, or that someone has transferred or may transfer money from your account without your permission, call us at (209) 832-6450, or write to us at P.O. Box 1147, Tracy, California 95378-1147.

BUSINESS DAYS
Our business days are Monday through Friday, excluding holidays.

OUR LIABILITY FOR FAILURE TO MAKE TRANSFERS
If we do not complete a transaction to or from your share or share draft/checking account on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages. However, there are some exceptions. We will NOT be liable, for instance, if:

a) through no fault of ours, you do not have enough money in your account to make the transaction;

b) the transaction would go over the credit limit on your credit line;

c) the terminal where you were making the transaction did not have enough cash;

d) the ATM or network system was not working properly and you were aware of the malfunction when you started the transaction;

e) circumstances beyond our control (such as fire, flood, power failure, or computer down-time) prevented the transaction, despite reasonable precautions that we have taken;

f) the money in your account is subject to an uncollected funds hold, legal process or any other encumbrance or agreement restricting a transaction;

g) your ATM/POS Card has expired, is damaged so that the terminal cannot read the encoding strip, is inactive or because your PIN has been entered incorrectly;

h) your ATM/POS Card or PIN has been reported lost or stolen and we have blocked the account; or

I) the failure to complete the transaction is done to protect the integrity of the system or to protect the security of your account.

There may be other exceptions not specifically mentioned above.

IN CASE OF ERRORS OR QUESTIONS ABOUT YOUR TRANSACTIONS
Telephone us at (209) 832-6450 or write us at P.O. Box 1147, Tracy, California 95378-1147 as soon as you can, if you think your statement or receipt is wrong or if you need more information about a transfer listed on the statement or receipt. We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared.

1. Tell us your name and account number.
2. Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information.
3. Tell us the dollar amount of the suspected error.

If you tell us orally, we may require that you send us your complaint or question in writing within 10 business days.

We will tell you the results of our investigation within 10 business days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days to investigate your complaint or question. If we decide to do this, we will credit your account within 10 business days for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. (If the error you assert is an unauthorized Visa transaction, other than a cash disbursement at an ATM, we will credit your account within 5 business days unless we determine that the circumstances or your account history warrant a delay, in which case you will receive credit within 10 business days. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account.

If we decide that there was no error, we will send you a written explanation within three business days after we finish our investigation. You may ask for copies of the documents that we used in our investigation.

If you give notice of an error within 30 days after you make the first deposit to your account, we will have 20 business days instead of 10 business days.

If you give notice of an error within 30 days after you make the first deposit to your account, notice of an error involving a point of sale transaction, or notice of an error involving a transaction initiated outside the U.S. its possessions and territories, we will have 90 days instead of 45 days to investigate.

CHARGES
In order to obtain the electronic services listed, you must open and maintain a share or share draft account. All charges associated with our electronic fund transactions are disclosed in our Rate and Fee Schedule which accompanies this Disclosure and Agreement.

DISCLOSURE OF ACCOUNT INFORMATION TO THIRD PARTIES
We will disclose information to third parties about your account or the transfers you make:

a) when it is necessary to complete the transaction;

b) in order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant;

c) in order to comply with government agency or court orders or other legal process; or

d) if you give us your prior oral or written permission.

ADDRESS CHANGE
Keep the Credit Union informed of your current address to insure correct mailing of monthly statements.

AMENDMENTS
The Credit Union may change the terms and conditions of this Agreement from time to time by mailing written notice to your address as it appears on our records. If any change results in greater cost or liability to you or decreases access to your Accounts, you will be given at least twenty-one (21) days prior notice of the change. Prior notice may not be given where an immediate change in terms or conditions is necessary to maintain the integrity of the system and/or the security of ATM Cards, POS Cards or designated accounts.

TERMINATION
You may terminate this Agreement with us at any time. The Credit Union reserves the right to terminate this Agreement and/or your use of your ATM/POS Card or PIN with or without cause. We may do so immediately if:

a) you or any authorized user of your ATM/POS Card, PIN or account breaches this or any other agreement with the Credit Union;

b) we have reason to believe that there has been, or might be, an unauthorized use of your ATM Card, POS Card, PIN or account; or

c) you or any authorized user of your ATM/POS Card, PIN or account request that we do so.

COLLECTION COSTS
You agree to pay the Credit Union our reasonable expenses, including court costs and attorney’s fees, for enforcing our rights under this Agreement.

ADDITIONAL BENEFITS/CARD ENHANCEMENTS
The Credit Union may from time to time offer additional services to your Account. Some may be at no additional cost to you and others may involve a specified fee. You understand that the Credit Union is not obligated to offer such services and may withdraw or change them at any time.

WAIVER OF RIGHTS
The Credit Union can delay enforcing any of the provisions under this Agreement or the law any number of times without losing its right to enforce them at a later date.

OTHER AGREEMENTS
Except as stated otherwise in the Agreement, this Agreement does not alter or amend any of the terms or conditions of any other agreement you may have with the Credit Union.

SEVERABILITY
If any part of this Agreement should be held to be unenforceable, the remaining provisions of this Agreement shall remain in full force and effect.

WHO IS BOUND BY THIS AGREEMENT
Each person who signs the Application agrees to be bound by the terms and conditions of this Agreement. If more than one person signs the application, all signers are jointly and severally liable. The Credit Union can waive or delay enforcement of its rights as to one signer without affecting its ability to enforce its rights as to the other signers. The Agreement is also binding upon your heirs, personal representatives and successors.

SIGNATURES
By using your access to the system, or authorizing anyone else to use your access to the system, and/or by signing the application, you agree to be bound by the terms and conditions of this Agreement and Disclosure.

ADDITIONAL DISCLOSURE APPLICABLE TO ACH SERVICES
DOCUMENTATION OF DIRECT DEPOSIT
If you have arranged to have direct deposits made to your account at least once every 60 days from the same person or company, you can call us at (209) 832-6450, to find out whether or not the deposit has been made. If the only possible transfers to or from your account are direct deposits or pre-authorized deposits, you will get at least a quarterly statement from us.

DISCLOSURE OF RIGHT TO STOP PAYMENT
a) Right to stop payment and procedure for doing so.
If you have told us in advance to make regular payments out of your account, you can stop any of these payments. Here’s how:

Call us at (209) 832-6450, or write to us at P.O. Box 1147, Tracy, California 95378-1147, in time for us to receive your request three business days or more before the payment is scheduled to be made. If you call we may also require you to put your request in writing and get it to us within 14 days after you call.

b) Notice of varying amounts.
If these regular payments vary in amount, the person you are going to pay will tell you 10 days before each payment, when it will be made and how much it will be. You may choose instead to get this notice only when the payment would differ by more than a certain amount from the previous payment, or when the amount would fall outside certain limits that you set.

c) Liability for failure to stop payment of pre-authorized transfer.
If you order us to stop one of these payments three business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages.

TRANSACTIONS AVAILABLE
You may use your ACH services to perform the following transactions:

• Make deposits to your share or share draft/checking account;
• Make loan payments; and
• Pay bills directly from your share or share draft/checking account in the amounts and on the days you request.

All payments and deposits are subject to later verification by us.

ADDITIONAL DISCLOSURES APPLICABLE TO ATM AND POS SERVICES
RULES FOR USE
By using your ATM/POS Card with your personal identification number (PIN) at automated teller machines (ATM’s) or other electronic terminals operated by a participating institution, network system, or company (collectively “terminals”), you authorize us to effect the transactions from or to your share or share draft/checking account(s) in accordance with the instructions given at the terminals. All ATM/POS Card transactions are subject to the terms and conditions of your account agreements with us governing the affected accounts.

FEES
Fees may be imposed for initiating electronic fund transfers from an electronic terminal which is not operated by the Tracy Federal Credit Union.

TRANSACTIONS AVAILABLE
You may use your ATM/POS Card to perform the following transactions:

• Withdraw cash from your share or share draft/checking account;
• Transfer funds between your share and share draft/ checking accounts;
• Make point-of-sale payments for goods and services to others from your share draft/checking account; and
• Make account balance inquiries.

Some of the transactions listed above may not be available at all terminals. All payments and deposits are subject to later verification by us.

LIMITATIONS ON TRANSACTIONS
You may make ATM cash withdrawals or POS transactions up to $350 from ATM’s each 24-hour period as long as your available balance will cover the transaction. Various institutions which participate in networks of which the Credit Union is a member may have withdrawal limits different from the amount set forth herein. In the event that a specific ATM is so limited, you may not be able to withdraw more than the cash limit of that particular ATM. There are no limits on the number of daily POS transactions you may make.

ACCESS CARDS
All ATM Cards/POS Cards are non-transferable and belong to the Credit Union. The Credit Union may cancel, modify and restrict the use of any ATM/POS Card upon proper notice or without notice if your account is overdrawn or where necessary to maintain or restore the security of accounts on the ATM system.

ATM SAFETY
An ATM provides a quick and convenient way to access your money. However, use caution and remember the following safety tips whenever you use an ATM:

• Be aware of the surroundings, particularly at night.
• Look for well-lighted ATM’s when transacting at night.
• lf you notice anything suspicious when approaching the ATM, return later or use another ATM.
• Have your transaction ready before you go to the ATM. When you can, fill out any deposit or withdrawal slips/ envelopes before leaving your vehicle.
• Have your ATM Card ready, to avoid going through your purse or searching through the contents of your wallet at the ATM site.
• If you notice anything suspicious while you are transacting business, immediately stop your transaction, put your ATM Card away and leave.
• Consider having another person accompany you to the ATM. Immediately report all crimes to the ATM operator and to local law enforcement officials.
• Stand close to the ATM and away from others in line to avoid detection of your PIN or other account information.
• Put your cash away as soon as the transaction is complete; count the cash later in the safety of your vehicle or home.

Never give information to strangers at the ATM or to anyone over the phone. Be aware of fraud or people who pose as Credit Union employees who try to get information from you. This information should only be discussed in person by you at the Credit Union.

Remember to keep your PIN a secret. Make sure not to write it on your ATM Card or anywhere else in your wallet; thieves can easily figure out the reason for “hidden” or “secret” numbers.

ADDITIONAL DISCLOSURES APPLICABLE TO CHECK CARD SERVICES ISSUANCE OF CARD
“Card” means the Tracy Federal Credit Union Check Card and any duplicates, renewals, or substitutions the Credit Union issues to you; “Account” means the account designated on the application for your Check Card.

RESPONSIBILITY FOR TRANSACTIONS
You are responsible for all transactions you make with the Card or that you authorize another person to make with the Card. You understand that if you disclose your Check Card PIN to anyone, they will have access to all accounts identified by your account number. If the Account is a joint account, all transactions involving the Account are binding on all Account holders.

MERCHANT DISPUTES
For P0S transactions directly accessing a line of credit, the Credit Union is not responsible for the refusal of any merchant or financial institution to honor the card. The Credit Union is subject to claims and defenses (other than tort claims) arising out of goods or services you purchase with the card if you have made a good faith attempt but have been unable to obtain satisfaction from the merchant or service provider and (a) your purchase was made in response to an advertisement the Credit Union sent or participated in sending to you orb) your purchase cost more than $50 and was made in your state or within 100 miles of your home.

LIMITATIONS ON DOLLAR AMOUNTS AND FREQUENCY OF TRANSACTIONS
Purchases made above the floor limit of the merchant will require an authorization number from VISA.

USE OF THE CARD
You may use the Card and PIN to:

• Withdraw cash from your Account at ATMs, merchants, or financial institutions that accept VISA cards;
• Transfer funds between your Account and another account you have with the Credit Union; and
• Make deposits to one of your accounts at the Credit Union.

You may use the Card without the PIN to:

• Purchase goods or services at places that accept VISA cards (these are point-of-sale or P0S transactions);
• Order goods or services by mail or telephone from places that accept VISA cards; and
• Make automatic payments from your Account to pay bills or other charges, providing that the person or organization that you are paying agrees to accept payments this way.

Some of these services may not be available at all terminals. Use of the Card, the Account number on the Card, the PIN or any combination of the three for payments, purchases, or to obtain cash from merchants, financial institutions or others who honor VISA cards is an order by you for the withdrawal of the amount of the Transaction from your Account. Each Transaction with the Card will be charged to your Account on the date the Transaction is posted to your Account. When the Credit Union receives notification of a Check Card transaction, it will put a hold on an equivalent amount of funds in your share draft/checking account for 3 days.

All Check Card transactions covered by this Agreement are subject to the terms and conditions of your Account agreements with us governing the affected Accounts, except as modified by this Agreement. Any future changes to your Account agreements may affect the use of the card.

ILLEGAL USE OF VISA CHECK CARD
You agree that your VISA Check Card Account will not be used to make or facilitate any transaction(s) that are or might be construed to be illegal pursuant to applicable law, rule or ordinance, including but not limited to gambling. Said use, including any such authorized use, will constitute an event of default under this Agreement. You agree that the Credit Union has no liability, responsibility or culpability whatsoever for any such use by you or any authorized user(s). You agree that you are responsible for repayment of any and all debts incurred for these transactions. You further agree to indemnify and hold the Credit Union harmless from any suits, liability, damages or adverse action of any kind that results directly or indirectly from such illegal use.

OVERDRAFTS
You promise to pay the Credit Union immediately upon demand for any negative (overdraft) balance arising in your Account, unless you have available overdraft privileges. If you do not have overdraft privileges, the Credit Union may deduct the amount of any overdraft on your Account from any other account you have with the Credit Union, except an Individual Retirement Account.

REFUSAL TO HONOR CARD
The Credit Union is not liable for the refusal or inability of any electronic terminal to honor the Card or to complete a withdrawal from your Account, or for their retention of the Card. The Credit Union is also not responsible for the refusal of any merchant or financial institution to honor the Card or for their retention of the Card.

FOREIGN TRANSACTIONS
Transactions that are initiated in foreign countries and foreign currencies will be charged to your Account in U.S. Dollars. The conversion rate to dollars will be (i) the wholesale market rate, or (ii) the government-mandated rate, whichever is applicable, in effect one (1) day prior to the processing date, increased by one percent (1%).

YOUR ABILITY TO WITHDRAW FUNDS
Our policy is to make funds from your cash and check deposits available to you on the first business day after the day we receive your deposit. Electronic direct deposits will be available on the day we receive the deposit. Once the funds are available, you can withdraw them in cash and we will use them 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 before close of business on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit after close of business or on a day we are not open, we will consider that the deposit was made on the next business day we are open.

LONGER DELAYS MAY APPLY
In some cases, we will not make all of the funds that you deposit by check available to you on the first business day after the day of your deposit. Depending on the type of check that you deposit, funds may not be available until the fifth business day after the day of your deposit. The first $100 of your deposits, however, may be available on the first business day.

If we are not going to make all of the funds from your deposit available on the first business day, we will notify you at the time you make your deposit. We will also tell you when the funds will be available. If your deposit is not made directly to one of our employees, or if we decide to take this action after you have left the premises, we will mail you the notice by the day after we receive your deposit. If you will need the funds from a deposit right away, you should ask us when the funds will be available.

In addition, funds you deposit by check may be delayed for a longer period under the following circumstances:

• We believe a check you deposit will not be paid.
• You deposit checks totaling more than $5,000 on any one day.
• You redeposit a check that has been returned unpaid.
• You have overdrawn your account repeatedly in the last six months.
• There is an emergency, such as failure of computer or communications 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 first business day after the day of your deposit.

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 checks must be payable to you (and you may have to use a special deposit slip). The excess over$5,000 wiIl 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, the first $5,000 will not be available until the second business day after the day of your deposit.

Funds from all other check deposits will be available on the fifth business day after the day of your deposit.

UNCLAIMED PROPERTY LAW — CALIFORNIA
The holder(s) of this account shall inform the Credit Union of any change in their address(es). The shares and accumulated dividends earned thereon will not escheat to the State Controller if, for a period of three years the member has owned another account with the Credit Union and, the member has:

1. Increased or decreased the amount of the funds or deposit, cashed an interest (dividend) check, or presented appropriate record for the crediting of interest or dividends, or
2. Corresponded electronically or in writing with the Credit Union concerning the funds or deposit, or
3. Otherwise indicated an interest in the funds or deposit as evidence by a memorandum or other record on file with the financial organization.

GENERAL TERMS AND CONDITIONS OF YOUR CREDIT UNION ACCOUNTS DEFINITIONS
ACCOUNT AGREEMENT means any share, share draft, share certificate, trust, totten trust or UTMA account.

TIS AGREEMENT means Truth In Savings Agreement entitled, “About Your Credit Union Accounts.”

MEMBERSHIP & ACCOUNT APPLICATION
The terms, conditions and information contained in the Membership & Account Application, and all amendments thereto, are by this reference hereby incorporated in their entirety into this TIS Agreement and become an integral part of the General Terms and Conditions of the Credit Union Accounts.

ACCOUNT OWNERSHIP
The ownership of trust, totten trust and UTMA accounts shall be governed by the applicable Account Agreement. Unless otherwise specified in the Account Agreement, the parties who sign an Account Agreement agree with each other and with the Credit Union that all funds in the accounts shall be owned as follows:

• Individual Accounts: The account or certificate is owned by the party named on the Account Agreement (“Account Holder”). Upon the death of the party, ownership passes to the named pay-on-death payee(s), designated as the beneficiary(ies) named on the Account Agreement.
• Joint Accounts: The account or certificate is owned by the parties named on the Account Agreement (“Account Holders”). Upon the death of any of them, ownership passes to the survivor(s). Upon the death of all of them, ownership passes to the named pay-on-death payee(s), designated as the beneficiary named on the Account Agreement.

SPECIAL RULES FOR JOINT ACCOUNTS
Withdrawals by and Liability of Joint Owners - The Account Holders of an account agree with each other and with the Credit Union that all funds and all accumulations there on are subject to the withdrawal of or receipt by any of the Account Holders, and payment to any of them shall be valid and discharge the Credit Union from any and all liability for such payment. The Account Holders of an account expressly agree that each Account Holder is jointly and severally liable for any and all overdrafts, losses or charges to an account created by any Account Holder(s).

Deposits — The Credit Union may cash or deposit all checks payable to any signer when endorsed by any other signer.

Disputes — If there is a dispute about ownership or control of an account, the Credit Union may place a hold on the account and not release funds until the Credit Union receives either a court order or an instruction signed by all persons claiming an interest in the account.

NOTICE
Notice to one Account Holder shall constitute notice to all persons authorized to have access to the account.

ABILITY TO PLEDGE FUNDS
Any or all of the joint Account Holders may pledge all or any part of the funds as security for a loan or loans with the Credit Union only.

ENFORCEMENT OF LIENS
All funds in an account remain subject to any and all liens, including but not limited to statutory liens and/or consensual liens, security interests, rights of set off and charges, notwithstanding the source of the contribution.

NOTIFICATION OF CHANGES
The right or authority of the Credit Union under an Account Agreement shall not be changed or terminated by the Account Holder(s), except by written notice to the Credit Union, which written notice shall not affect transactions previously made. All parties to an Account Agreement shall keep the Credit Union informed of any change in their address (es).

WAIVER OF CERTAIN RIGHTS
The Credit Union reserves the right to waive the enforcement of any of the provisions of this TlS Agreement with respect to any transaction or series of transactions. Any such waiver will not affect the right of the Credit Union to enforce any of its rights with respect to later transactions and is not sufficient to modify the terms and conditions of this TIS Agreement.

CONSUMER REPORTS
The Credit Union makes credit available to its members on a regular basis. The Account Holder(s) of the account authorizes the Credit Union to obtain consumer reports in connection with possible future credit opportunities, and the Account Holder(s) of the account authorize any person, association, or corporation to furnish on request of this Credit Union, information concerning the affairs of the Account Holder(s). The Account Holder(s) also authorizes the Credit Union to furnish information concerning the account to consumer reporting agencies. The Account Holder(s) authorizes the Credit Union to run a consumer report if the Account Holder(s) requests the Credit Union to open a share draft/checking account. The Credit Union may also run a consumer report before issuing an ATM card, check card or other services.

NEGATIVE CREDIT REPORTING
Pursuant to State Law, you are hereby notified that a negative credit report reflecting on your credit record may be submitted to a credit reporting agency if you fail to fulfill the terms of your credit obligations.

POST-DATED SHARE DRAFTS AND CHECKS
The Credit Union will treat all share drafts or checks as though the share drafts or checks were written on the date presented.

EXAMINATION OF STATEMENTS
The Account Holder(s) to whom the periodic statement of account is sent agree(s) to exercise reasonable care and promptness in examining the statement to discover any errors or discrepancies, and to promptly notify the Credit Union after discovery thereof.

NON-CASH PAYMENTS
Non-cash payments deposited into an account maybe credited subject to final payment.

FEES AND CHARGES
All accounts shall be subject to service charges in accordance with fee schedules adopted by the Credit Union as amended from time to time.

CREDIT UNION’S RIGHT TO OFFSET
Account Holder(s) agrees that the Credit Union has the right to offset against any account of any Account Holder to cover any amount owing to the Credit Union for any reason. Account Holder(s) understands that this means that the Credit Union has the right to impress and enforce a statutory lien against the Account Holder(s)’s shares and dividends in the event of the failure of the Account Holder(s) to satisfy any financial obligation due and payable to the Credit Union. Account Holder(s) understands that the Credit Union may enforce this right without further notice.

OTHER TERMS AND CONDITIONS
The use of an account is subject to such other terms, conditions and requirements as the Credit Union may establish from time to time.

UCC PROVISIONS
This TIS Agreement shall be construed in accordance with the provisions of the California Uniform Commercial Code (UCC).

SHARE ACCOUNT AGREEMENT
TRANSFERS TO THIRD PARTIES
No more than six pre-authorized, automatic, or telephonic transfers maybe made from each savings account or money market deposit account to another account at the Credit Union or to a third party in any calendar month, and no more than three of these six transfers may be made by check, draft, debit card, or similar order payable to a third party. If an Account Holder exceeds, or attempts to exceed, these transfer limits, the excess transfer requests may be refused or reversed, a fee may be imposed on the excess transfer requests, and the Credit Union may reclassify or close the account. Transfers initiated by telephone must be counted among the six monthly transfers, except that there are no limits on the number of withdrawals paid directly to an Account Holder when initiated by mail, telephone or messenger. There are no limits on the number of withdrawals if initiated in person.

WITHDRAWALS, PRIOR NOTICE REQUIREMENT
The Credit Union reserves the right to require prior written notice of intention to withdraw all or any part of shares not to exceed the notice requirement as set forth in the Credit Union’s bylaws.

SHARE DRAFT ACCOUNT AGREEMENT
WITHDRAWALS, APPROVED METHODS
Only share draft blanks and other methods approved by the Credit Union may be used to withdraw funds from a share draft account.

DEMAND DRAFTS
The Credit Union may pay and charge to the applicable share draft account, share drafts drawn by and payable to any person, organization, association or corporation that has been authorized by an Account Holder to be paid, by the provision of MICR encoded information on the account. It is agreed that the Credit Union’s rights in respect to such share drafts shall be the same as if it were a share draft drawn and signed by an Account Holder(s) personally. This authority shall remain in effect until revoked by an Account Holder in writing. It is agreed that the Credit Union shall be fully protected in honoring such share drafts. It is further agreed that if any such share draft is dishonored, whether with or without cause, and whether intentionally or inadvertently, the Credit Union shall incur no liability whatsoever, even though such dishonor results in the forfeit of insurance, loss or damage of any kind.

OVERDRAFTS
The Credit Union is under no obligation to pay a share draft which exceeds the balance in an account; the Credit Union may, however, pay such a share draft and recover or obtain a refund of the amount of the resulting overdraft plus a service charge from any of the Account Holders of this account, each of whom expressly agrees that each Account Holder is jointly and severally liable for any and all overdrafts of this account and any and all associated costs created by any Account Holder.

STALE-DATED SHARE DRAFTS
The Credit Union is under no obligation but may pay a share draft which is presented more than six (6) months after it is dated. The Credit Union may assess a special handling charge upon receipt of any such item in addition to a service charge upon the account in accordance with the fee schedules adopted by the Credit Union and as amended from time to time.

STOP PAYMENTS
Any Account Holder(s) of this account may stop payment of any item drawn against the account. The Stop Payment Order must describe the item with reasonable certainty and must be received in such time and manner as to afford the Credit Union a reasonable opportunity to act upon it. A Stop Payment Order is effective for six (6) months, but it lapses after 14 calendar days if the original order was oral and was not confirmed in writing within that 14 day period. The Stop Payment Order may be renewed in writing for an additional six (6) month period.

TRUNCATION OF DRAFTS
The Account Holder(s) acknowledges that share drafts are truncated and hereby waives any and all rights to receive the items without prejudice to any of the Credit Union’s defenses available under the California Uniform Commercial Code (UCC).

LIABILITY OF CREDIT UNION
Except for its own lack of good faith or failure to exercise ordinary care, the Credit Union is not liable for any action it takes regarding the payment or nonpayment of a share draft, even if nonpayment results in the forfeit of insurance, loss or damage of any kind.

CLOSURE OF ACCOUNT
The Credit Union may close a share draft account at any time. Closure of a share draft account will not affect the obligation to pay any outstanding balances or charges owed.

FOR SHARE DRAFT ACCOUNTS WITH SHARE OVERDRAFT PROTECTION
If any Account Holder(s) writes a share draft that would result in this Share Draft Account being overdrawn, the Credit Union is authorized to charge the designated share account(s), regardless of which party signed the item, in such multiples as determined by the Credit Union sufficient to permit the Credit Union to honor the share draft and any associated fees and to credit such charge to this Share Draft Account. No share draft overdraft may be paid by charging a share account if, as a result of such charge, that share account would be subject in any one month to more than six pre-authorized automatic or telephonic transfers.

FOR SHARE DRAFT ACCOUNTS WITH LOAN OVERDRAFT PROTECTION
It any Account Holder(s) writes a share draft which would result in this Share Draft Account being overdrawn, and if at that time any Account Holder(s) is eligible to receive loan advances from this Credit Union on a loan designated on the Overdraft Agreement the Credit Union is authorized to make an advance from the designated loan account, and to credit the advance to this Share Draft Account in such multiples as determined by the Credit Union sufficient to permit the Credit Union to honor such share draft and any associated fees.

SHARE CERTIFICATE ACCOUNT AGREEMENT
PLEDGING OF FUNDS
Share certificates may not be pledged, transferred, or assigned to any party other than the Credit Union unless otherwise provided by statute. Shares invested for an Individual Retirement Account (IRA) or Keogh Plan may not be pledged as security for any loan. The Credit Union reserves the right to offset this certificate except as otherwise precluded by law. If the Credit Union offsets funds from this certificate, the funds withdrawn are subject to the early withdrawal penalty.