Rules and Regulations - Local Government Federal Credit Union

isclosureRules and Regulations

F If there is an unforeseen emergency(such as a breakdown of communications channelsor a breakdown of computer equipment)Holds on Other Funds—Check CashingIf we cash a check for you that is drawn on anotherfinancial institution, the Credit Union may temporarilywithhold access to the same dollar amount in fundsalready on deposit with us. You can access these fundson the same schedule as if the original check had beendeposited, rather than cashed. For example, if youpresent a $100 check to be cashed, you will receive therequested funds, but $100 in funds already on depositwith the Credit Union will not be available until as manyas seven business days following the date the checkwas cashed. In this circumstance, a notice will be sent toyou by the next business day, advising you of the hold.Holds on Funds—Other AccountsIf we accept for deposit a check drawn on anotherfinancial institution, we may make those funds availableto you for immediate withdrawal, but delay yourability to withdraw a corresponding amount of fundsalready on deposit with us. The hold on these fundswill be released once the funds from the depositedcheck are available, as per Regulation CC. If this occurs,a notice will be sent advising you of this hold by thenext business day following our receipt of the deposit.Deposits at Automated Teller Machines (ATMs)Funds resulting from any deposit (cash or checks)or transfer made at a CashPoints ® ATM are available onthe same business day of deposit or transfer unlesswe mail you a notice advising you of a delay in fundsavailability. If a member transfers funds betweenLGFCU accounts at any other (non-CashPoints ® ) ATM,the funds may not be available until the fifth businessday following the date of transfer.Substitute Check Policy Disclosureand Your RightsThe Check Clearing for the 21st Century Act (Check 21)became effective on October 28, 2004. The regulation’sgoal is “to improve the overall efficiency of the nation’spayment system.” To expedite the check collectionprocess and reduce the costs associated with checkprocessing, Check 21 allows for the creation of anegotiable item called a “substitute check.”What is a substitute check?A substitute check is a special electronic image ofthe original paper check. Its benefit is that it can beexchanged quicker and more efficiently than physicallytransporting a check between financial institutions.Substitute checks are similar in size to the originalpaper check, but with slightly reduced images of thefront and back of the check. The front of the copystates: “This is a legal copy of your check. You can useit the same way you would use the original check.” Youmay use the substitute check as proof of payment justlike the original check.Some or all of the checks that you receive back fromthe Credit Union may be substitute checks or copiesof substitute checks. This notice describes the rightsyou have when you receive substitute checks fromus. The rights in this notice do not apply to originalchecks or to electronic debits to your Credit Unionaccount. However, you have rights under other lawswith respect to those transactions.What are my rights regarding substitute checks?In some cases, federal law provides special proceduresthat allow you to request a refund for losses yousuffer with regard to a substitute check posted to yourCredit Union account (for example, you believe theamount withdrawn was incorrect, or that the amountof the same check was withdrawn more than once).The losses you may attempt to recover under thisprocedure include the amount that was withdrawnfrom your account and any associated fees that werecharged as a result of the withdrawal (for example,insufficient funds fees).The amount of your refund under these proceduresis limited to the amount of your loss or the amountof the substitute check, whichever is less. You are alsoentitled to dividends on the amount of your refund ifyour account is a dividend-bearing account. If your lossexceeds the amount of the substitute check, you maybe able to recover additional amounts under the law.Should an error be found, you may receive up to $2,500of your refund (plus dividends, if your account earnsdividends) before the end of the tenth business day afterwe receive your claim, and the remainder of your refund(plus dividends, if your account earns dividends) no laterthan 45 calendar days after your claim is received.4 5

The Credit Union may reverse the refund (includingany associated dividends) if we later demonstratethat the substitute check was correctly posted to yourCredit Union account.How do I make a claim for a refund?If you believe you have suffered a loss resultingfrom a substitute check that you received and/orposted to your Credit Union account, please callthe Contact Center at 1-888-732-8562 or visit yourlocal branch to complete the appropriate form. Youmust file a written claim within 40 calendar daysof the date we mailed (or otherwise delivered by ameans to which you agreed) the substitute check inquestion or the date we mailed the account statementshowing the substitute check posted to youraccount, whichever is later. We may extend this timeperiod if you were unable to make a timely claimbecause of extraordinary circumstances. Your claimmust include all of the following:F A description of why you feel you have suffered aloss (for example, the amount withdrawn from yourCredit Union account was incorrect)F An estimate of the amount of your financial lossF An explanation of why the substitute check youreceived is insufficient to confirm that you suffereda lossF A copy of the substitute check and/or the followinginformation to assist the Credit Union in identifyingthe substitute check in question: the check number,the name of the person to whom you wrote the checkand the amount of the check.Regulation DThe Federal Reserve Bank’s Regulation D limitscertain withdrawals and transfers from your Share,tax-advantaged (excluding health savings accounts)and Money Market Share accounts. The followingwithdrawals and/or transfers are limited to a total ofsix (6) per account per calendar month:F Internet transfers from a Share, tax-advantaged(excluding health savings accounts) or MoneyMarket Share account to another deposit accountF Phone transfers from a Share or Money MarketShare account to another deposit account viaLGFCU Voice ResponseF Phone transfers from a Share or Money MarketShare account to another deposit account viaMember ConnectF Overdraft transfers from a Share or Money MarketShare account to a checking accountF Automated funds transfers from a Share or MoneyMarket Share account to another deposit accountF Funds transfers or withdrawals not initiated inperson at a branch and payable to a third party(such as a wire transfer request)F Safe deposit box auto-debit fees that occur yearlyfrom a Share or Money Market Share accountThe following withdrawals and/or transfers are notlimited on your Share, tax-advantaged or MoneyMarket Share accounts and can be performed asoften as needed:F Transactions completed in person at a branchF Transactions completed at an ATMF Transfers to loans or credit cardsF Transactions sent in by mailF Transactions by telephone, but only when thetransaction results in a check being mailed tothe depositorNOTE: Deposit accounts that are exempt fromRegulation D and therefore have no withdrawaland transfer limitations are as follows: checkingaccounts, CashPoints ® Global Accounts (CPG) andhealth savings accounts (HSAs).Truth-In-Savings DisclosureThis section provides information on our shareaccounts, including Shares, Individual RetirementAccounts (IRAs), Checking Accounts, Share TermCertificates (STCs), Money Market Share Accounts,Health Savings Accounts (HSAs), Coverdell EducationSavings Accounts (CESAs), CashPoints ® Global andSimplified Employee Pension (SEP) accounts. Thesedisclosures apply to all types of ownerships of theseaccounts including Individual, Joint with Right ofSurvivorship, Trustee (Payable upon Death), Revocableand Irrevocable Living Trusts and Uniform Transferto Minors Act accounts. The type of ownership of theaccount is designated by the member at the time theaccount is opened.6 7

Compounding, Crediting and Dividend AccrualDividends are compounded daily and creditedmonthly on the date the statement is created for Share,Checking, Money Market Share, IRAs, CESAs, SEPsand HSA accounts. If you receive a printed statement,the date the statement is created is determined bythe ZIP code to which the statement is mailed. Statementsare mailed approximately every 30 days, butnot always on the same day of the month. If you optout of printed statements and retrieve your statementvia our website, you may select the approximate timeeach month you wish your statement to be created,which will still be approximately every 30 days butnot always the same day of the month.Dividends are not compounded on Share TermCertificates; dividends accrue on the principal amountonly. Dividends are automatically paid monthly bytransfer from the STC to another Share account; however,if the term is six or 12 months, you may requestthat your dividends be paid when the STC matures.Dividends that are transferred to another Shareaccount will earn dividends at the current rate beingpaid for that type of account. If an STC is automaticallyrenewed, the dividend rate will be based on the ratefor that term on the date of renewal.An automatically renewed STC may be canceled withoutpenalty during the seven-day grace period followingrenewal. If you choose to cancel your STC during thatperiod, the STC will earn dividends from the date ofrenewal until the day of cancellation. Dividends are notearned on CashPoint Global Accounts.Dividends begin to accrue on the business day of receiptfor cash or non-cash funds received by any method.Calculation MethodDividends are calculated by applying a periodic rate tothe balance eligible for dividend accrual in the accounteach day.Effect of ClosingAccrued, but unpaid, dividends will be paid if theaccount is closed prior to dividend crediting exceptfor share term certificates, which are subject to earlywithdrawal penalties (see Fixed Rate Accounts).Minimum Balance RequirementsThere is no minimum balance requirement to earndividends on Share Accounts, IRAs, SEPs, HSAsor Checking Accounts.There is no minimum balance required to avoid a feeon Fat Cat Share, Holiday Cash, Salary Advance or HSAaccounts. A minimum balance is not required to avoid afee on CashPoints ® Global and Checking Accounts; however,these accounts are charged a monthly maintenancefee regardless of the balance in the account.The minimum balance to earn dividends on STCsand Money Market Share Accounts is $250. Theminimum balance to avoid a monthly service feeon Share Accounts, CESAs, SEPs and IRAs is $25.00.The minimum balance required to avoid a monthlyservice fee on Money Market Share Accounts is $250.Fixed-Rate AccountsShare Term Certificates (STCs) are fixed-rate accounts,which means the rate does not change during theterm of the certificate. Available rates for STCs aresubject to change daily at the discretion of the boardof directors. The term of the certificate is selected bythe account holder at the time the account is opened.Available terms are six, 12, 18, 24, 30, 36, 48 and 60months. After the certificate is opened, no additionaldeposits may be made to the account. No partialwithdrawals may be made from a certificate.If the principal is withdrawn before the maturity date, anearly withdrawal penalty will be charged. The penaltyis 90 days’ dividends on the certificate amount or theactual dividends earned, whichever is less.Certificates automatically renew into a new certificatefor the same term at the current dividend rate for thatterm unless the member specifically requests thatthe principal be transferred into another shareaccount at maturity.Fourteen days prior to the STC maturity or renewaldate, the Credit Union will send a notice to the memberindicating the upcoming action and member options.Future dividends earned on matured funds aredetermined based on the existing rate for the Shareaccount to which funds are transferred. Futureearnings on renewed funds are at the rate offeredon the renewal date for the STC of that term.8 9

Variable Rate AccountsShare Accounts, IRA/SEP/HSA Accounts, Checkingand Money Market Share Accounts are variable-rateaccounts. The rate is subject to change daily at thediscretion of the board of directors.Nature of DividendsDividends are paid from the available earnings afterany required transfers to reserves.Transaction LimitationsShare, Money Market Share, and tax-advantagedaccounts (except Health Savings Accounts [HSAs])are limited to no more than six withdrawals and/or transfers per account per calendar month (SeeRegulation D).No checks can be written and no automated clearinghouse (ACH) debits are allowed on CashPoints ®Global, Share or Money Market Share Accounts.RatesCurrent dividend rates and corresponding annualpercentage yields for all Share accounts may beobtained online at www.lgfcu.org, by calling our 24-Hour Voice Response Service at 888.732.8562 or, in theRaleigh area, 919.857.2150 from a touch-tone phone, orby calling or visiting your local branch.SafetyYour Credit Union shares are federally insured bythe National Credit Union Association (NCUA), anindependent government agency that charters,regulates and insures federal credit unions. TheNCUA is backed by the full faith and credit of theUnited States Government.Individual accounts are insured up to $250,000 forcombined balances in your savings, checking, sharecertificates, and money market savings accounts.Joint accounts are insured up to $250,000 for eachjoint owner on the account. The most share insurancecoverage any member can have as a result of jointownership is $250,000, regardless of the number ofaccounts that are jointly owned.Combined balances in your Traditional, SimplifiedEmployee Pension (SEP), and Roth IRA plans areinsured separately from your other LGFCU accountsfor up to $250,000. Educational savings accounts arealso insured separately from your other Credit Unionaccounts for $250,000.Payable on Death (POD) accounts are insuredseparately from your other LGFCU accounts. Eachowner is insured up to $250,000 per beneficiary.Naming the same beneficiary on more than onePOD account does not increase insurance coverage.Deposit Trust Accounts are insured separately fromyour other Credit Union accounts. Each beneficiaryaccount established under a trust arrangement isinsured up to $250,000.For more information about NCUA’s Share InsuranceFund please call the Contact Center at 1.888.732.8562, visityour local branch, or go to our website www.lgfcu.org.Share Accounts *F The dividend is computed daily based on the actualaccount balance, beginning on the business day thedeposit is received.F Dividends are variable (subject to change) daily.F Dividends are paid every month.F Dividends are declared at the beginning of thedividend period (dividend period begins on theday your monthly statement is created).F The minimum balance required is $25.00.F You will be charged $1.00 per month when thebalance is below $25.00. Fat Cat Share Accountsare exempt from service fees.F There is no minimum withdrawal.F There is no early withdrawal penalty or maturity date.Checking AccountF If we receive a deposit (cash or checks) to yourChecking Account, you begin earning dividendson the business day the deposit is received.F The dividend is computed on the actual dailyaccount balance beginning on the day of receiptof the deposit.F Dividends are paid every month.F Dividends are declared at the beginning of thedividend period (dividend period begins on theday your monthly statement is created).F There is no minimum deposit to open an account* Please see the Regulation D section of this brochure for thewithdrawal/transfer limitations on this account.10 11

F There is no minimum balance required afterinitial deposit.F Our service fees include:F $25.00 for items returned due to non-sufficientfunds (NSF)F $8.00 for each stop payment requestedF There is no charge for the first 50 checks writtenper month. After that, there is a $0.20 fee foreach additional check posted to an account.F $1.00 maintenance fee is charged each month.F Fees are subject to change. Members arenotified in advance of any change.Money Market Share Account *F If we receive a deposit (cash or checks) to your MoneyMarket Share Account, you begin earning dividendson the business day the deposit is received.F The dividend is computed on the actual daily balance,beginning on the day of receipt of deposit.F Dividends are variable (subject to change) daily.F Dividends are declared at the beginning of thedividend period, which begins on the day yourmonthly statement is created.F Dividends are paid every month.F The minimum balance requirement is $250.F There is no minimum withdrawal.F No dividends are earned on days wherethe minimum balance is not met.F There is no early withdrawal penalty or maturity date.F There is a $2.00 per month fee if the balance fallsbelow $250.F Fees are subject to change. Members arenotified in advance of any change.F Account is limited to six monthly pre-authorizedautomatic transfers per account.Share Term CertificateF Our Certificate terms are: six, 12, 18, 24, 30, 36, 48,and 60 months.F Dividends are paid at maturity on the six- and12-month certificates. Dividends are paid monthlyfor certificates of 18 months or longer.F Dividend calculations are based on the actualdollar amount in the account.F Dividend rates are fixed for the term of the certificate.F The minimum deposit and balance requiredfor all certificates is $250.F The certificate maturity date is determinedat the time of purchase.F The early withdrawal penalty for all certificatesis 90 days’ dividends on the amount withdrawnor the actual dividends earned, whichever is less.F No partial withdrawals may be made.Individual Retirement Accounts (IRAs) †F Dividends are computed on the actual balance daily,beginning on the business day the deposit is received.F Dividends are variable (subject to change) daily.F Dividends are paid every month.F Dividends are declared at the beginning of thedividend period (dividend period begins on thesame day that your monthly statement is created).F The minimum balance required is $25.00.F There is no minimum withdrawal.F There is no maturity date.Summary of Service Fees (as of June 1, 2013)Checking AccountMonthly Maintenance $1.00Transaction FeesNon-Sufficient Funds $25.00Stop Payment Orders $8.00Personalized ChecksOverdraft Protectiontransfer fee ‡BillPay §Free for 50 checksper month ($ 0.20 foreach additional transaction)Price varies accordingto style and quantity$0.50 per transactionFree for 50 transactionsper month ($ 0.20 foreach additional transaction)* Please see the Regulation D section of this brochure for thewithdrawal/transfer limitations on this account.† Please consult your tax advisor with regard torequired minimum distributions.‡ Overdraft transfers are limited to no more than six per monthfrom a Share or Money Market Share Account. Overdraftsexceeding six per month will be charged a fee equal to thecurrent non-sufficient funds fee. Repeated excess transfersmay cause the loss of overdraft privileges.§ The first 50 transactions per month through the BillPay Service areat no charge. Additional transactions are $0.20 each. This fee isdebited from the same Checking or CashPoints ® Global Account.12 13

Summary of Service Fees, cont.Share AccountMonthly Fee *No Transaction FeesMoney Market Share AccountMonthly Fee *No Transaction FeesCashPoints ® ATMReissue$0$0No feeLost Card Replacement $8.00Rush Delivery of Card $15.00PLUS Approved Transaction $0.75FeePLUS Denied Transaction $0.35FeeNo Transaction Feefor CashPoints ® ATMsMiscellaneous FeesCoupons, Bonds, Collections $7.00Cashier’s Check $1.00Notary Services $0Wire Transfers—Outgoing $6.00DomesticWire Transfers—Outgoing $10.00ForeignSafe Deposit BoxesAnnual Rental FeeLost KeyBox DrillingLate Rental Payment $12.00Varies accordingto box size$18.00 minimum$145 minimum* There is no service fee on these accounts if the minimum balanceis maintained for Share/IRA/SEP/CESA ($25.00) and Money MarketShare Accounts ($250), or if fewer than 50 checks are written perstatement cycle for Checking Accounts. A $0.20 per check fee isassessed on Checking Accounts if these requirements are notmet. A flat monthly fee of $1.00 on Share/IRA/SEP/CESA accountsis assessed if the account balance is below the minimum on thestatement cutoff date. Money Market Share Accounts are assesseda $2.00 flat monthly fee if the balance falls below the minimum atany time during the statement period. Health Savings Accountsand Holiday Cash Club Accounts have no minimumbalance and no service fees.Agreement For Account ServicesBy opening a share account of any type at LGFCU, you,as the account holder, agree to the terms and conditionsin this brochure, including funds availability, substitutecheck policy, Regulation D, Truth in Savings, and theagreement for account services. The following GeneralRules apply to accounts at the Credit Union. The CreditUnion accepts business only on the condition that thedepositor agrees as follows:General Rules(1) In this instrument except as otherwise indicated,the singular includes the plural.(2) All items deposited are received by the Credit Unionfor deposit or collection and the Credit Union acts onlyas depositor’s collecting agent and as such, assumesno responsibility beyond the exercise of due care. TheCredit Union accepts no responsibility for warrantiesand indemnities on substitute checks that are createdby other financial or non-financial institutions, entitiesor persons. The Credit Union will only assume responsibilityfor indemnities and warranties associated withsubstitute checks created by the Credit Union.(3) Items drawn on this Credit Union are receivedconditionally and, if not good at the close of the businessday on which it was deposited or if payment is stopped,the item may be charged back to the depositor.(4) The Credit Union accepts no responsibility forpayment of checks or drafts that are presented thesame day as deposits are made unless there is alreadya sufficient balance to the depositor’s credit in additionto such deposits.(5) Items received for collection or credit and not drawnon this Credit Union are taken subject to final paymentand at depositor’s (member’s) risk; should such itemsbe lost, returned unpaid (NSF, Stop Payment, etc.) orshould returns not be received within a reasonabletime, the amount of the items can be deducted from thedepositor’s (member’s) account.(6) Items may be sent directly to the financialinstitution upon which they are drawn, or throughcollecting agents selected by the Credit Union whomay collect and remit. Collecting agents shall have14 15

the right to send items directly to the financialinstitution up on which they are drawn or at whichthey are payable.(7) This Credit Union and/or collecting agents mayaccept either cash, draft or credit in settlement ofsuch items, and shall not be liable for failure to collector realize on drafts or credits so received.(8) Each collecting agent is the agent of thedepositor (member), but no agent shall be liable forany loss growing out of neglect, default or failure ofany other agent.(9) This contract shall be held and construed to bea North Carolina contract, and the rights, obligationsand liabilities of this Credit Union shall be determinedby the laws of North Carolina.(10) “Depositor” includes those who forward itemsfor collection or other handling, as well as one whomakes a deposit in the ordinary sense of the word.(11) Depositor covenants that depositor has authorityto agree as aforesaid on depositor’s own behalf, andon behalf of holder or owner of said items; authorityis given this Credit Union to enter into contract withcorrespondent banks and others in connection with thecollection or other handling of any item hereunder.(12) Delivery of items for deposit, collection, credit orpayment to the Credit Union will constitute acceptanceof these conditions by the depositor (member). Therights or authority of the Credit Union under thisagreement shall not be changed or terminated bythe depositor except by written notice to said CreditUnion and receipt of such a notice by the CreditUnion, which shall not affect transactions occurringprior to the Credit Union’s receipt of the notice.(13) Service and maintenance fees, made in accordancewith the rules of the Credit Union in effect at the time,may be charged to this account without notice. Thesemay include fees for handling checks drawn againstinsufficient funds. The Credit Union shall not be liablefor dishonoring checks or drafts because of insufficientfunds resulting from such charges. A reasonable servicefee may be made against this account if there are nodeposits or withdrawals made by depositor within asix-month period.(14) The Credit Union may refuse any deposits andit may require depositor to withdraw the accountbalance upon notice to depositor at the last addressshown on the records of the Credit Union.(15) If the account is a Share account, the depositormay withdraw any part or all of the balance ondeposit. However, the Credit Union, at its discretion,may require 60-days’ notice in writing before makingpayment to the depositor.(16) No assignment or transfer of the funds in anaccount will be recognized by the Credit Union unlessthe consent of the Credit Union is first obtained andsuch consent is entered on the Credit Union’s records.(17) The Credit Union is specifically given the right toapply any deposit in said Credit Union account againstpast due indebtedness due by the depositor to saidCredit Union as allowed by law and by the contractualobligations between the depositor and the Credit Union.(18) If a check drawn is payable on a future date,unless the account holder is required to notify theCredit Union immediately in writing that this checkis not to be honored before the payment date. If theCredit Union prematurely pays the check in the regularcourse of business, the account holder agrees thatthe Credit Union shall have no liability to the accountholder for such payment.(19) The Credit Union is under no obligation to paya check or draft drawn on an account when the checkor draft is presented more than six months after thedate it is written. However, if the check is paid againstan account, the Credit Union takes no responsibility forsuch payment unless a stop payment order issued bythe account holder was in effect at the time of payment.Stopping Payment on Checksor Preauthorized TransactionsThe Credit Union may refuse to honor any stoppayment order that cannot be authenticated by youeither in writing or electronically. Previously authorizeddebits to an account from an institution, agency orcompany other than the Credit Union must be revokedin writing to the originating institution, agency orcompany. Upon notification of this revocation by theaccount holder, the Credit Union will stop and returnunpaid all future debits from the institution, agency16 17

or company regardless of the amount. Preauthorizedperiodic transfers or payments from or to the CreditUnion accounts may be stopped if written order isreceived by the Credit Union at least three businessdays in advance of a scheduled transfer. Stop paymentorders confirmed by you in writing remain in effectfor 12 months. In order for the stop payment order tocontinue for another 12 months, a new stop paymentorder must be completed in writing by the accountholder and submitted to the Credit Union.StatementsStatements showing all deposits, withdrawals,dividends earned, balance on deposit, etc. will bemade available at periodic intervals. Statements willbe mailed to the depositor by regular first-class mailat the last address shown on the records of the CreditUnion, unless you previously opted out of paper statements.CashPoints ® Global account holders will receiveonly electronic statements. Electronic statements areavailable to all members by logging on to LGFCU’ssecure online banking service, Member Connect,through www.lgfcu.org. Unless depositor notifies theCredit Union in writing within 60 days of the delivery ormailing of any statement of account and/or canceledvouchers that the signature upon any returned voucher(check, drafts, etc.) was forged, or any transaction wasposted in error or was not authorized, the statementof account shall be considered correct for all purposesand the Credit Union shall not be liable for paymentsmade and charged to the depositor’s account whichare later alleged to have been based on forgery, error,or improper authority.Joint AccountsAll joint accounts are governed by North CarolinaGeneral Statute 54-109.58. All joint accounts withLGFCU, regardless of who deposits the funds, shall beheld by the depositors as co-owners with the right ofsurvivorship. The Credit Union may pay the funds inthe account to, or on the order of, either or any of thedepositors named on the account. Upon the death of onejoint owner, the money remaining in the account willbelong to the surviving joint owners, and will not passby inheritance to the heirs of the deceased joint owneror be controlled by the deceased joint owner’s will.Trustee and Revocable Living Trust AccountsThe Credit Union accepts accounts titled in the nameof a member’s revocable or irrevocable living trust.However, the Credit Union accepts no responsibilityfor determining whether a grantor or trustee isqualified to act or has been duly appointed to act inthat capacity, nor whether any transaction involvingthe account is in accordance with or authorized byapplicable law or the trust agreement. The CreditUnion acts only as a depository for the funds.Personal Agency AccountsPersonal agency accounts are governed by NorthCarolina General Statute 54-109.63 as it may beamended or changed from time to time. The agentnamed on the account may sign checks/withdrawalson the account and make deposits to the account. Ifthe owner of the account becomes incapacitated and/or mentally incompetent, the agent has the authority tocontinue acting on behalf of the owners. The personalagent’s authority ends upon the death of the lastaccount holder and the funds remaining in the accountwill be controlled by the will or inherited by the heirs ofthe last account owner to die, or released to any PODbeneficiary(ies), if the account is a POD account.Payable On Death AccountPayable on Death (POD) accounts are governedby North Carolina Statute 54-109-57A as it may beamended or changed from time to time. The PODaccount may be set up with multiple owners andmultiple beneficiaries. If there are two or moreowners, the owners shall own the account as jointtenants with the right of survivorship. During thelifetime of the owner(s), they are the sole owner(s)of the funds in the account and any owner maywithdraw the funds in the account. By written noticeto the Credit Union, the owner(s), individually orjointly, may change the beneficiary(ies) at any time.Upon the death of the last surviving owner, thefunds remaining in the account will belong to thebeneficiary(ies) and will not be inherited by the heirsof the owners or controlled by will. If one or moreowners survive the last surviving beneficiary whowas a natural person, or if a beneficiary who is anentity other than a natural person should cease toexist before the death of the owner, the account shallbecome an individual account of the owner, or a jointaccount with right of survivorship of the owners.LGFCU reports dividends earned under the primaryowner’s Social Security Number.18 19

Uniform Transfers to Minor Act (UTMA) AccountThe terms of these accounts shall be governed by theprovisions of North Carolina General Statutes, Chapter33A as it may be amended or changed from time totime. This transfer of funds to the minor named, whichtransfer shall be deemed to include all earnings thereonand any future additions there to, is irrevocable.Closing an AccountThe Credit Union may close an account if the accountholderbreaches any terms of this agreement or theCredit Union at its sole discretion determines continualmaintenance of the account exposes the Credit Unionto risk of financial loss.The Credit Union, at its sole discretion, with notice,may close an account for any reason not prohibitedby applicable law.Federal Wire Transfers and ACH TransactionsThe following is provided as a requirement of Article4A of the Uniform Commercial Code. If a membersends or receives a wire transfer, the Federal ReserveBank’s FEDWIRE transfer system may be used.Regulation J is the law governing those transfers.If a member gives the Credit Union a paymentorder which identifies the beneficiary (recipient ofthe funds) by both name and identifying or accountnumber,payment may be made by the beneficiary’sfinancial institution on the basis of the identifyingfinancial institution account number, even if thenumber identifies a person different than the namedbeneficiary. If a member gives the Credit Union apayment order which identifies an intermediaryor beneficiary’s institution by both name and anidentifying number, a receiving institution may relyon the number as the proper identification, even ifit identifies a different institution than the namedfinancial institution. Wire transfers not initiated inperson at a branch from Share, tax-advantaged(excluding HSAs) or Money Market Share Accountsare subject to restrictions under Regulation D.Automated clearing house (ACH) items (such asdirect deposit of a payroll check or benefit payment)are paperless transfers between financial institutions.The Credit Union may give a member credit forACH payments it receives for the member before itreceives final settlement of the funds transfer fromthe originating financial institution. The member ishereby notified and agrees that if the Credit Uniondoes not receive such final settlement, it is entitled toa refund from the member of the amount credited tothe member in connection with that ACH entry. ACHtransactions are governed by the operating rules ofthe National Automated Clearing House Association. Inaccordance with these rules, the Credit Union will notprovide any members with next day notice of receiptof ACH credit transfers to an account. Notices of receiptof ACH items are included in the periodic accountstatements the Credit Union provides.The Credit Union may accept payments to youraccount on your behalf which have been transmittedthrough one or more automated clearing houses andwhich are not subject to the Electronic Funds TransferAct. Your rights and obligations with respect to suchpayments shall be construed in accordance with andgoverned by the laws of the State of North Carolina.Electronic Funds Transfers *A member may use an LGFCU debit card or Visa CheckCard and a four-digit personal identification number(PIN) to authorize transactions on Share and creditaccounts (withdraw cash, balance inquiries, transferfunds between accounts, make deposits and paymentsand purchases) on qualified automated teller machines(ATM) or point-of-sale (POS) terminals. With a 24-HourVoice Response Service PIN, members may performinquiries and transfers between accounts (deposit andcredit) via touch-tone phone. With a Member ConnectPIN or with Member Connect through your mobiledevice, you may access account information and performtransfers via the Internet. † Transfers from Share,tax-advantaged (excluding HSAs) or Money MarketShare Accounts via Member Connect are limited to atotal of six (6) transactions per account, per calendarmonth. The member agrees to all terms concerning theuse of an LGFCU debit card in the disclosures that aremailed with the card or provided electronically.A member may also use preauthorized electronicfunds transfers through the ACH system to makedeposits to accounts or to pay bills or make paymentsfrom a Checking Account. † The member may use* Purchases made with your LGFCU Visa ® Check Card may be subjectto Visa’s Operating Rules.† Check with your mobile device service provider for rates and fees.20 21

LGFCU’s BillPay service to authorize electronic billpayments on a CashPoints ® Global account. In theevent an unauthorized ACH debit transaction is postedto the member’s account, the member must reportthe transaction in writing to the Credit Union within 60days of the Credit Union’s transmittal of the periodicstatement to avoid liability for subsequent transfers.In order to be eligible for reimbursement of anunauthorized ACH debit, the member must notify theCredit Union orally or in writing within 60 days of thesettlement date of the transaction. When a notificationis made orally, the member may also be required tosubmit a written notice within 10 business days.The best way to minimize your possible loss is totelephone, although you may advise the Credit Unionin person, in writing, or via email. If you do not notifythe Credit Union, you could potentially lose all themoney in your account (including the maximumamount of your line of credit). If you inform the CreditUnion within two business days of learning aboutthe unauthorized access, you will lose no more than$50.00. If you do not inform the Credit Union withintwo business days and we determine that we couldhave stopped the loss had we been made aware, youcould lose as much as $500.If you discover any unauthorized electronic fundstransfers on your account statement, advise us at once.If you do not inform us within 60 days of when thestatement was mailed, you may not be able to recoverthe money you lost, provided the Credit Union canprove that we could have prevented the loss, had webeen made aware.has notified the depositor that he or she is no longersubject to back-up withholding. The Internal RevenueService does not require the member’s consent toany provisions of this document other than thecertifications required to avoid back-up withholding.Notice of Negative InformationSubject to applicable laws and regulations, the CreditUnion may report information about your account tocredit bureaus. Late payments, missed payments, orother defaults on your Credit Union account may bereflected on your credit report.Disclosures, Agreements, Rules and RegulationsThese disclosures, agreements, rules and regulationsmay be added to, rescinded, altered or amended by theCredit Union at any time, without notice to the depositor,in order to comply with then-applicable laws and regulationsgoverning Credit Union operations. Upon signing an AccountServices Form, the depositor hereby assents and agrees tothese rules and regulations and their subsequent changesor amendments for this account or subsequent accountsopened, as described above.Eligibility CertificationI certify that I meet the eligibility requirementsfor membership in the Credit Union.If there is a legitimate reason (such as a long trip or ahospital stay) that prevented you from informing theCredit Union about your loss within the establisheddeadline, the time frame may be extended.Tax Identification CertificationUnder penalty of perjury, each depositor certifiesthat he or she is a legal U.S. person (including U.S.resident alien). Each depositor further certifies thatthe taxpayer identification number listed on theaccount is accurate and that the depositor is notsubject to back-up withholding either because he orshe has not been notified that he or she is subject tobackup withholding as a result of a failure to reportall dividends, or that the Internal Revenue Service22 23

LGFCU Member Identification NoticeImportant Information About Proceduresfor Opening a New AccountTo help the government fight the funding of terrorismand money laundering activities, federal law requires allfinancial institutions to obtain, verify and record informationthat identifies each person who opens an account.What this means to you: When you open an account,we will ask for your name, address, date of birth andother identifying information. We may also ask to seeyour driver’s license or other identifying documents.To learn more about anyof our services, visit us atwww.lgfcu.org or call theContact Center at 888.732.8562.Calls may be monitored forquality assurance./ To improve the lives of our members /REV 07.13Federally insured by NCUAThe Quorum Center323 West Jones Street, Suite 600, Raleigh, NC 27603919.755.0534 / 800.344.4846 / f: 919.755.0193

Rev. 02/07/2013factsWhy?What?How?What does Local Government federal credit union (LGFCU)do with your personal information?Financial companies choose how they share your personal information. Federal law givesconsumers the right to limit some but not all sharing. Federal law also requires us to tellyou how we collect, share, and protect your personal information. Please read this noticecarefully to understand what we do.The types of personal information we collect and share depend on the product or serviceyou have with us. This information can include:• Social Security number and income• Account balance and payment history• Credit history and credit scoreWhen you are no longer our member, we continue to share your information as describedin this notice.All financial companies need to share members’ personal information to run their everydaybusiness. In the section below, we list the reasons financial companies can share theirmembers’personal information; the reasons Local Government Federal Credit Unionchooses to share; and whether you can limit this sharing.Reasons we can share your personal information Does LGFCU share? Can you limit this sharing?For our everyday business purposes—such as to process your transactions, maintainyour account(s), respond to court orders and legalinvestigations, or report to credit bureausFor our marketing purposes—to offer our products and services to youYesYesNoNoFor joint marketing with other financial companies Yes NoFor our affiliates’ everyday business purposes—information about your transactions and experiencesFor our affiliates’ everyday business purposes—information about your creditworthinessYesNoNoWe don’t shareFor nonaffiliates to market to you No We don’t shareQuestions? Call 800.344.4846

Page 2Who we areWho is providing this notice?Local Government Federal Credit UnionWhat we doHow does LGFCU protect mypersonal information?To protect your personal information from unauthorized accessand use, we use security measures that comply with federal law.These measures include computer safeguards and secured filesand buildings.How does LGFCU collect mypersonal information?Why can’t I limit all sharing?We collect your personal information, for example, when you• open an account or deposit money• pay your bills or apply for a loan• use your credit or debit cardWe also collect your personal information from others, such ascredit bureaus, affiliates or other companies.Federal law gives you the right to limit only• sharing for affiliates’ everyday business purposes—informationabout your creditworthiness• affiliates from using your information to market to you• sharing for nonaffiliates to market to youState laws and individual companies may give you additionalrights to limit sharing.DefinitionsAffiliatesCompanies related by common ownership or control. They canbe financial and nonfinancial companies.• Example: LGFCU Financial Partners, LLC.NonaffiliatesCompanies not related by common ownership or control. They canbe financial and nonfinancial companies.• Example: State Employees’ Credit UnionJoint marketingA formal agreement between nonaffiliated financial companiesthat together market financial products or services to you.• Example: MEMBERS ® Trust Company