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.

The par value of a share in the Huntington Beach City Employees Credit Union is $5.

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

The initial dividend rate and annual percentage yield on all our 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.

We compute the balance in all our 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.

The maximum amount of shares that may be held by any one member shall be established from time to time by resolution of the Board.

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 3 months of the reduction may be terminated from membership at the end of a dividend period. The Credit Union requires a one-time, non-refundable membership fee of $1.

Shares may be transferred only from one member to another, by written instrument in such form as the Credit Union may prescribe. No transfer of voting rights or other membership privilege is permitted by virtue of transfer to or co-ownership of share by nonmembers. 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 Committee or a loan officer, except to the extent that such shares exceed the member's 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 co-maker, endorser, or guarantor are delinquent, without the written consent of the Credit Committee or loan officer.

You must open a Regular Share Account to open any subsequent accounts. You must maintain the Regular Share Account to avoid closure of that account and any subsequent accounts.

Huntington Beach City Employees 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 the Regular Share, Subsidiary Share and IRA Share Accounts.

Our share accounts are non-interest bearing.

Dividends will be compounded quarterly and will be credited quarterly. For our 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.

Cash withdrawals in excess of $5,000 require 24-hour prior notice.

The minimum deposit required for you to open a Regular Share or Subsidiary Share Account is $5. You must maintain a minimum balance of $5 in the account to avoid closure.

The minimum deposit required for you to open an IRA Share Account is $100. You must maintain a minimum daily balance of $100 in this account to obtain the annual percentage yield stated on the Rate Schedule and to avoid closure. If you close your IRA Share Account before dividends are credited, you will not receive accrued dividends.

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.

Huntington Beach City Employees Credit Union offers share draft accounts that let you withdraw your money and write checks against your account at any time.

Our share draft account is designated a variable rate account on the Rate Schedule. This rate and yield may change at any time at the Credit Union's discretion.

The minimum deposit required for you to open a share draft account is $25.

Huntington Beach City Employees Credit Union's share certificate accounts let you deposit your money for a specified period of time.

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.

Your account will mature as reflected on the Rate Schedule.

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

Dividends will be compounded monthly and will be credited monthly and at maturity.

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.

Your account will automatically renew at maturity for the same time period as the original term at the prevailing rate unless you withdraw all of the funds in your account at maturity or within a grace period of seven (7) days after maturity. If you choose not to renew your account, your funds will be transferred to your Regular Share Account.

We may impose a penalty if you withdraw principal from your share certificate account before the maturity date. The penalty will be as follows:

Where the term of the Share Certificate is one year or less, the
loss of 90 days dividends on the amount withdrawn whether or
not earned.

In addition, if a withdrawal reduces your balance below the minimum balance requirement, your account will be closed and the remaining funds will be transferred to your Regular Share Account.

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.

This EFT Disclosure and Agreement as amended from time to time ("Agreement") sets forth the terms and conditions governing the use of the Huntington Beach City Employees Credit Union electronic transfer services. Disclosure information that applies to all electronic services offered by Huntington Beach City Employees 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 Huntington Beach City Employees 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 Huntington Beach City Employees Credit Union.

We will issue you a Personal Identification Number (PIN). 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.

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.

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 minimizing your possible losses. You could lose all the money in your account (plus your maximum overdraft line of credit). If you tell us within two (2) business days, you can lose no more than $50.00 if someone used your ATM/POS Card or PIN without your permission. If you DO NOT tell us within two (2) business days after you learn of the loss or theft of your ATM/POS Card or PIN and we can prove that we could have stopped someone from using your ATM/POS Card or PIN without tour permission if you had told us, you could lose as much as $500.00. If you have authorized someone else to use the ATM card and/or PIN, you are responsible for all transactions that that person or persons initiates at any time, even if the amount or transactions exceed what you may have authorized.

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 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 (714) 536-6517 during business hours or (800) 800 472-3272 after business hours, or write to us at P.O. Box 910, Huntington Beach, California 92648.

Our business days are Monday through Friday, excluding holidays.

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.

Telephone us at (714) 536-6517 or write us P.O. Box 910, Huntington Beach, California 92648 at 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 (if any).

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 ten (10) business days.

We will tell you the results of our investigation within ten (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 forty-five (45)** days to investigate your complaint or question. If we decide to do this, we will credit your account within ten (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 we ask you to put your complaint or question in writing and we do not receive it within ten (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 (3) 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 thirty (30) days after you make the first deposit to your account, we will have twenty (20) business days instead of ten (10) business days.

** If you notice an error within thirty (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 ninety (90) days instead of forty-five (45) to investigate.

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

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.

Keep the Credit Union informed of your current address to ensure correct mailing of monthly statements.

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.

You may terminate this Agreement with us at any time. The Credit Union reserves the right to terminate this Agreement with or without cause. We may do so immediately if:

a. you or any authorized user of your 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 account; or

c. you or any authorized user of your account request that we do so.

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

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.

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.

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.

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.

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.

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.

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 (714) 536-6517, 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.

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

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

"Card" means the Huntington Beach City Employees 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.

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. You may not stop payment on a debit card transaction.

Your liability for unauthorized use of your debit card with the MasterCard logo ('your card') [when it is used as a MasterCard card] will not exceed (A) $0 if the conditions set forth below have been met or (B) if those conditions have not been met, the lesser of $50 or the amount of money, property, labor or services obtained by the unauthorized use before notification to us. Zero liability will apply only if:

"Unauthorized use,” means the use of your debit card by a person other than you who does not have actual, implied, or apparent authority for such use, and from which you receive no benefit. Remember to report your card lost or stolen or any unauthorized transactions immediately. This will help prevent unauthorized access to your account and minimize any inconvenience.

For more information or if you have questions, stop by the Credit Union or call us at (714) 536-6517.

For POS 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 or (b) your purchase cost more than $50 and was made in your state or within 100 miles of your home.

Purchases made above the floor limit of the merchant will require an authorization number from MasterCard.

You may use the Card and PIN to:

You may use the Card without the PIN to:

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 MasterCard 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/Debit Card transaction, it will put a hold on an equivalent amount of funds in your share draft/ checking account for three (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.

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.

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.

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%).

You may use your Audio Response Service to perform the following transactions:

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

Our policy is to make funds from your 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 they are available, you can withdraw the funds and we will use the funds to pay checks that you have written. For determining the availability of your deposits, every day is a business day, except Saturdays, Sundays and federal holidays. If you make a deposit before the 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 the 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.

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. However, the first $100 of your deposits will 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 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 11th business day after the day of your deposit.

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 escheat to the State Controller if, for a period of three (3) years:

1. There has been no account activity; or

2. There has been no written communication by you; or

3. There has been no other communication with you noted in writing by the Credit Union.

TIS Agreement means Truth in Savings Agreement entitled, "About Your Credit Union Accounts."

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.

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:

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

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.

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.

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).

The Credit Union reserves the right to waive the enforcement of any of the provisions of this TIS 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.

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 credit 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 credit reporting agencies. The Account Holder(s) authorizes the Credit Union to run credit report if the Account Holder(s) requests the Credit Union to open a share draft/checking account. The Credit Union may also run credit report before issuing an ATM card, check card or other services.

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.

The Credit Union will treat all share drafts or checks as though the share drafts or checks were written on the date presented.

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 deposited into an account may be credited subject to final payment.

All accounts shall be subject to service charges in accordance with the current Rate and Fee Schedule adopted by the Credit Union and amended from time to time.

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.

The use of an Account is subject to such other terms, conditions and requirements as the Credit Union may establish from time to time.

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

No more than six (6) pre-authorized, automatic, or telephonic transfers may be 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 (3) of these six (6) 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 (6) 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.

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. Cash withdrawals in excess of $5,000 require 24-hour prior notice.

Only share draft blanks and other methods approved by the Credit Union may be used to withdraw funds from a share draft account.

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.

The Credit Union is under no obligation to pay a share draft that exceeds the balance in an account. If the member has direct deposit and the draft is presented for payment within five (5) business days of that direct deposit, the Credit Union may 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." If the Credit Union pays an overdraft caused by a share draft, ATM, or ACH transaction and subsequently receives a deposit to cover that transaction, we will refund the non-sufficient funds fee, however we may charge a transaction fee for hand posting.

The Credit Union is under no obligation but may pay a share draft that 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.

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 fourteen (14) calendar days if the original order was oral and was not confirmed in writing within that fourteen (14) day period. The Stop Payment Order may be renewed in writing for an additional six (6) month period.

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).

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.

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.

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 anyone month to more than six pre-authorized, automatic or telephonic transfers.

If 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 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.

©1994, 1995, 1996, 1997, 1998, 2000, 2006
California Credit Union League All Rights Reserved

Rev. 11/06