Business Membership and Account Agreement

Effective 8/5/2015
INTRODUCTION
I understand that the Business Membership and Account Agreement (“Agreement”) are part of the binding contract between you and me. In this Agreement, the words "I," "me," "mine," "my," "myself," "we," "us," and "our" mean each and all of those (whether one or more persons) who sign the applicable Business Signature Card, the business entity itself, and anyone else with the authority to deposit, withdraw, or exercise control over the funds in the account. The words "you," "your," and "yours" mean Xceed Financial Federal Credit Union. The headings in this document are for convenience or reference only and will not govern the interpretation of the provisions. Unless it would be inconsistent to do so, words and phrases used in this document should be construed so the singular includes the plural and the plural includes the singular.

This Agreement is effective August 5, 2015 and supersedes any conflicting terms and conditions contained in previous Business Membership and Account Agreement (also known as Business Services Disclosure).

I agree to read this Agreement carefully and have any additional account owners read it as well, and to file it in a safe place along with other account and services agreement and disclosures.

Important Information About Procedures For Opening A New Account
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for me: When I open an account, you will ask for my name, address, date of birth (for individuals), and other information that will allow you to identify me. You may also ask to see and photocopy my valid, unexpired, government-issued driver's license (for individuals) or other identifying documents.

Unlawful Internet Gambling Notification
Pursuant to the Unlawful Internet Gambling Enforcement Act of 2006 and Regulation GG, 'restricted transactions', such as those in which a person accepts credit, funds, instruments or other proceeds from another person in connection with unlawful Internet gambling, are prohibited. I agree and certify that such transactions will not be conducted through my account at Xceed Financial Federal Credit Union and I do not engage in an internet gambling business. If you determine that my account is being used to engage in restricted transactions, you may terminate my access to certain payment systems and/or close my account.

SECTION I: MEMBERSHIP ELIGIBILITY

Eligibility for Xceed Financial Federal Credit Union (Credit Union) membership requires submission of a Membership Application with a deposit in the amount of the par value of a share (currently $5.00) or more to open a primary savings account. In addition, all membership applications are subject to verification of field of membership and other eligibility requirements, applicant's identity, and background information as determined by the Credit Union and/or required by law, prior to membership being granted.

Field of Membership
Employees of select employer groups (SEGs) are eligible for membership. A list of these companies is on file at the Credit Union headquarters.

Any member of the immediate family or household of a Credit Union member may join or rejoin the Credit Union at any time, provided that the member is in good standing with the Credit Union. Once the immediate family or household member joins the Credit Union, that person's immediate family or household member may also join.

"Immediate family member" is defined as a spouse, child, sibling, parent, grandparent, or grandchild. For the purposes of this definition, immediate family members include stepparents, stepchildren, stepsiblings, and adoptive relationships. "Household" is defined as persons living in the same residence maintaining a single economic unit. Organizations of persons eligible for membership may qualify to open organizational accounts (for example, SEG employees' club accounts). For further information regarding these accounts, contact the Credit Union.

Members of several communities throughout the country are eligible for membership. In addition, a person who is not an employee of a SEG, is not a member of one of the communities served by the Credit Union, or is not an immediate family or household member of an existing Credit Union member may qualify for membership by first joining one of the organizations served by the Credit Union.

A complete listing of all eligible SEGs, communities, and organizations served by the Credit Union is currently available on the Credit Union's website at www.xfcu.org and at local Financial Centers.

SECTION II: BUSINESS ACCOUNT AGREEMENT AND DISCLOSURES

Terms and Conditions Applicable to All Accounts
1. I agree that each authorized signer on the business account is jointly and severally liable to you for: (a) all the business transactions with you, (b) all documents - including negotiable instruments - made, endorsed or signed by or on behalf of the entity, and (c) all obligations under this Agreement.

2. I understand that the required documentation for the entities opening an account(s) are available on your website (www.xfcu.org) or can be obtained at your financial centers.

3. This document, along with any other documents you give me pertaining to your account(s), is a contract that establishes rules which control my account(s) with you. I will read this carefully. If I sign the Business Signature Card or open or continue to have your account with you, I agree, for myself (and the person or entity I represent if I sign as a representative of another) to the terms of this account and the schedule of charges. I authorize you to deduct these charges directly from the account balance as accrued. I will pay any additional reasonable charges for services I request which are not covered by this Agreement. I will receive a separate schedule of rates, qualifying balances, and fees if they are not included in this document. If I have any questions, I will call you.

4. I agree to be responsible for the actions of Authorized Signers on my Account. This means that I am responsible for familiarizing Authorized Signers with all of the terms of this Agreement. Each Authorized Signer must be at least 18 years of age. I agree to notify you immediately if a person with access to the account leaves the entity. I agree to complete a new Business Signature Card to reflect changes to Authorized Signers. When I ask you to make a change to the information on my account, and you agree to the change, the change is not effective until you have had a reasonable time to act on the new information. As an example, if I ask you to change the signers on my account, my requested change is not effective until you have a reasonable time to act on it. If you ask me to give you additional documents or information, and I do not do so promptly, you may close my account.

5. I must be and remain a member in good standing to maintain any account. I understand and agree that if I am not a member in good standing, you may limit my access to your services and products. 6. The par value of a share necessary to become a member and maintain accounts with you is currently $5.00, which must be deposited into a primary business savings account.

7. I understand that federal law requires you to obtain, verify, and record information that identifies each person who opens an account. You may use a third-party service or credit report to verify information for legitimate business purposes. You may also report the status and/or closure of my account(s) to such third-party services.

8. I understand that if any part of this Agreement should be held unenforceable, the remaining provisions of this Agreement shall remain in full force and effect. No delay or omission on your part in exercising any rights or remedies shall operate as a waiver of such rights or remedies. A waiver on any one occasion shall not be construed as a bar or waiver of any rights or remedies on future occasions. You reserve the right upon thirty (30) days' written notice to change any provision of this Agreement. You also reserve the right to establish from time to time rules and regulations concerning any account, which will be available for inspection upon request.

9. I understand and agree that if it is necessary for you to take legal action in order to enforce the terms of this Agreement or to recover monies due to you from me, I will be responsible for payment of your collection costs and litigation expenses (including attorneys' fees and court costs).

10. I understand and agree that any and all disagreements between you and me, regardless of when they arose, will be resolved by an arbitration proceeding before a neutral arbitrator and that I am waiving my right to a jury trial or a trial before a judge in a public court. I also understand that the award of the arbitrator(s) is subject only to limited review by a Superior Court (rather than an Appellate Court) and that the Superior Court may not alter or overturn the award even if it is legally or factually incorrect. These aspects of arbitration apply to you as they do to me. Either you or I can request that a dispute be submitted by binding arbitration before a lawsuit has been filed or within sixty (60) days after a complaint, an answer, a counterclaim, or an amendment to a complaint has been served. Arbitrations, including the selection of arbitrators, will be administered by the American Arbitration Association (AAA) pursuant to its commercial arbitration rules. Arbitrations will be governed by the provisions of the Federal Arbitration Act (Title 9 of the United States Code), and to the extent any provision of that Act is inapplicable, unenforceable, or invalid, the laws of the state of California will govern. To find out how to initiate arbitration, I should contact any office of the AAA. If either party (you or I), fails to submit to arbitration following a proper demand to do so, that party shall bear all costs and expenses, including reasonable attorneys' fees, incurred by the other party in compelling arbitration. You and I authorize the arbitrator(s) to resolve any dispute regarding the terms of this Agreement. The arbitrator(s) can also decide whether any dispute is subject to arbitration. The arbitrator(s) may resolve any claim that all or any part of this Agreement is invalid but shall not have the power to change or alter the terms of this Agreement.

11. I understand that you may delay enforcing your rights under this Agreement without losing them. Any waiver by you shall not be deemed a waiver of other rights or of the same rights at another time. I waive diligence, demand, presentment, protest, and notice of every kind, except as set forth in this Agreement. If any of the provisions of this Agreement are determined to be void or invalid, the remainder of the Agreement shall remain in full force and effect.

12. I understand that there is a limitation on time to take action. Unless otherwise required by law, an action or proceeding by me to enforce an obligation, duty or right arising under this Agreement or by law with respect to my account or any account service must be commenced within one year after the cause of action occurs.

13. I shall pay you all costs and charges incident to my account according to this Agreement established by you and which you may change from time to time. You shall debit such charges against my account without prior notice, except where there are insufficient funds available, and then such charges shall be treated as overdrafts and due upon demand.

14. I understand that each state has laws that govern when accounts are considered "abandoned" and when you are required to send a member's funds to the state. I must make sure my accounts remain active so that I have the full use of my accounts and avoid the potential of having my account assets transferred to the state as "abandoned property." The Unclaimed Property Law requires that inactive account balances be remitted to the state controller's office in my state if I have not:

a. Increased or decreased the amount of the account or presented an appropriate record for crediting dividends.
b. Corresponded in writing with you concerning the account.
c. Otherwise indicated an interest in the account as evidenced by a memorandum on file with you.

You may charge a fee for mailing an escheat notice for account balances of $50 or greater and/or a service charge for official checks escheated to the state. To recover funds turned over to the state, I must file a claim with the state. You will make an effort to notify me in writing at the address listed on your records before any such transfer takes place. After such transfer, my funds can be reclaimed from my state controller's office upon presentation of adequate identification and proof of ownership. You reserve the right to charge a reasonable fee as disclosed in your Services and Schedule of Fees in your attempt to locate me. Information regarding my state's Unclaimed Property Law can be obtained by calling my state controller's office or visiting its website.

15. I understand that, to the extent permitted by federal or the law of my state, this Agreement as well as all of my share accounts and related services will be interpreted and subject to applicable federal laws and the laws of the state of California without resort to California's Conflict of Laws rules.

16. I understand and agree that you may monitor and record telephone conversations regarding my accounts, products or services at any time without further notice to me.

17. I understand that by using a facsimile signature, I authorize you, at any time, to charge me for all checks, drafts, or other orders, for the payment of money, that are drawn on me regardless of by whom or by what means the facsimile signature(s) may have been affixed so long as they resemble the facsimile signature specimen filed with you. I understand that I may be required to request changes to my Accounts in writing, that you are not required to act upon instructions received by facsimile, and that you have the right to require additional information from me before you act on any request. You shall have no liability or responsibility to me when acting upon the reasonable interpretation of my requests. You understand that if I use a facsimile signature I am agreeing that you are not responsible for any misuse of the facsimile signature, and I agree to indemnify and hold you harmless for all losses, claims, damages, or expenses (including attorney's fees) that are incurred as a result of your payment of a withdrawal bearing a facsimile of my signature or a facsimile that you believe I authorized.

18. I understand that no accounts are transferable (except checking accounts) as defined in the Federal Reserve Board's Regulation D, 12 CFR, Part 204. For all accounts, except checking accounts, during any given month, I may not make more than six (6) withdrawals or transfers to another account of mine or to a third party by means of a check, draft, debit card, preauthorized or automatic transfer, or telephonic order or instruction. Transfers or withdrawals in excess of these limitations may not be honored, and my account may be subject to closure by you.

19. I understand that your bylaws authorize your board of directors to require me to give up to sixty (60) days' written notice of my intention to withdraw savings from any account except a checking account. However, you do reserve the right at any time to require not less than seven (7) days' notice in writing before each withdrawal is performed from an account that earns dividends other than a share certificate account, or from any other savings account defined by Regulation D.

20. I understand that I may be required to request changes to my accounts in writing, that you are not required to act upon instructions received by facsimile or electronically, and that you have the right to require additional information from me before you act on any request. You shall have no liability or responsibility to me or to my heirs, executors, assignees, or representatives when acting upon the reasonable interpretation of my requests.

21. I understand that you may terminate and/or suspend account products at your option without written notice to me. In addition, you reserve the right to charge or amend product features or functions (such as overdrafts) at any time.

22. I agree that if I manipulate my account in an abusive manner or in such a way that constitutes a loss or detriment to you, or if I engage in threatening, harassing, or illegal behavior effecting you or any person or property in your premises or at any one of your functions, you may close my account(s), except my primary savings account, and/or limit any further communication between you and me to written communication. In addition, I understand that you reserve the right to close any account and terminate your services based on suspected fraudulent transactions, losses sustained on my account(s), or transactions discovered to be deliberately manipulated to the detriment of you. "Manipulation" includes, but is not limited to, kiting and repeated patterns of transactions that have no apparent business reason.

23. I understand that you may comply with any writ of attachment, execution, garnishment, tax levy, restraining order, subpoena, warrant, or other legal process that you believe (correctly or otherwise) to be valid. If you are not fully reimbursed for your record research, photocopying, and handling costs by the party that served the process, you may charge such costs to my account as disclosed on your Services and Schedule of Fees. Funds you hold or set aside in response to a legal process may not earn dividends. I agree to indemnify, defend, and hold you harmless from all actions, claims, liabilities, losses, costs, and damages associated with your compliance with any process that you believe to be valid.

24. You or I may terminate an account at any time. I understand, however, that my authority may not be changed or terminated by me except by appropriate written notice to you, which will not affect prior transactions. In addition, if you receive written notice from any authorized signer that withdrawals, in accordance with the terms of the account, should not be permitted, you may refuse, without liability, to pay any sums on deposit pending determination of the rights of the authorized signers. Further, if there is more than one authorized signer and there is a conflict among us, you may require the signature of all authorized signers.

25. I agree that any and all sums heretofore or hereafter paid-in or deposited into an account may be withdrawn or received by any authorized signer, and any such payment shall be valid and discharge you from any liability.

26. I agree that you may recognize the signature of anyone who has signed a Business Signature Card that I provided to you as authorized to transact any business on that account, including but not limited to, causing or making overdrafts (for which all of us shall be liable) and endorsing checks payable to any signer on the account. Any payment made from my account in good faith and reliance on the terms and conditions of this Agreement and the Business Signature Card shall be valid and discharge you from liability. Without limitation to the foregoing, you may honor checks drawn against my account by one of us, even if the checks are made payable to one of us, to cash, or for deposit in one of our personal accounts. You have no duty to investigate or question withdrawals or the application of funds.

27. I agree to be responsible to you for the actions of authorized signers on my account. This means that I am responsible for familiarizing authorized signers with all of the terms of this Agreement.

28. I understand that if I or any authorized signer(s) draws a check or otherwise authorizes withdrawals not presented for payment until after the drawer's death, or if any authorized signer(s) is indebted to you at the time of his or her death, you are authorized to pay such checks and withdrawals and exercise your right of offset against the account after such account signer's death, notwithstanding any survivorship and beneficiary rights to the funds in the account. For more information on right of offset, refer below.

29. I understand that share accounts with you are federally insured by the National Credit Union Share Insurance Fund (NCUSIF).

30. I understand I may make deposits to or withdraw from my accounts only in accordance with your policies.

31. I understand and agree that it is your policy not to accept for deposit checks payable to anyone other than an owner on the account (i.e., third-party checks).

32. I understand that anyone can make a deposit to my account and that you will not question the authority of a person making a deposit to my account.

33. I understand that all deposits are subject to verification and agree that if your count differs from mine, your figure will be considered the correct one.

34. I understand and agree that you may use automated means to process checks and other items written on or deposited to my account. Although you may manually review checks or other items drawn on my account, I understand and agree that reasonable commercial standards do not require you to do so.

35. I agree that you will not be responsible for any damages I incur in the event I deposit an item with you that is subsequently returned unpaid by the paying financial institution and the return is "late" due to markings on the back of the check caused by me or a prior endorser.

36. I understand that although you are not obligated to, you may pay or accept checks and other items bearing restrictions or notations (e.g., "Void after 6 months," "Void over $50," "Payment in Full"), whether on the front or back, in any form or format. If I cash or deposit an item or write a check with such notation, I agree that it applies only between me and the payee or maker. The notation will have no effect on you, and I agree to accept responsibility for payment of the item. I agree to indemnify and hold you harmless from any claim or alleged loss of any maker or payee involving such notations, whether I am the maker or payee or the funds are otherwise deposited into an account in which I earn dividends. I understand if you pay an item or honor my request that overdraws my account, a deposited item has been returned unpaid, or for any other reason my account has become overdrawn, I agree to pay the amount of the overdraft together with any fee or charge, whether or not I signed or requested the withdrawal or participated in the transaction creating the overdraft.

37. The minimum amount that I may withdraw from any account is $20. This limitation does not apply to the following:

a. Checks drawn on my checking or money market account.
b. Withdrawals, preauthorized by me, such as distributions of paid dividends and transfers of funds, pursuant to my overdraft agreement.
c. Withdrawals made in person, at a point-of-sale terminal, or through your online banking and automated voice response system.

38. I agree that you are not responsible for any loss or damage that results from my negligence, including without limitation, my failure to adequately safeguard my blank checks or other personal information or means of access to my account. I will notify you immediately if my checks are lost or stolen.

39. I understand that if a disaster occurs, there may be an unforeseen delay in your ability to make funds available and to process deposits, withdrawals, transfers, and other transactions. In addition to natural disasters, the failure of communications or computer systems may also cause unforeseen delays.

40. I understand that in the event that a cashier's or official check is lost or stolen, I must execute and deliver to you a written form to resist payment in time for you to have a reasonable period to act thereon. I further understand and agree that the designated form is not enforceable until the later of: (1) the date the designated form is properly delivered to you, or (2) the 90th day following the date of issuance for the cashier's or official check, or the 90th day following the date of the acceptance of a certified check. I agree to indemnify you for any loss or claim occasioned by your attempting to, or stopping payment on, such check.

41. I understand that you require a minimum of two (2) weeks to process my request to transfer funds from another financial institution to you.

42. I understand that you have the right to restrict the amount of cash each member may transfer or withdraw in a 24-hour period.

43. I understand and agree that in cases where there may be conflicting claims against my account, you are authorized to restrict account transactions until the conflicting claims are resolved to your satisfaction. If you deem necessary, in your sole discretion and judgment, you may submit the conflict to a court of competent jurisdiction to obtain resolution of the conflict. This is commonly referred to as a "interpleader," and I agree to be responsible for costs and attorneys' fees you incur in resolving the conflict.

44. I understand you reserve the right to change your routing number as long as a prior thirty (30)-day notice is provided to me.

45. I understand that you will mail (U.S. mail or electronically) statements and other notices only to the address (physical or electronic) on record which appears in the Business Signature Card. I shall exercise reasonable care and promptness in examining all statements and must notify you promptly in writing of any error or unauthorized payment including, but not limited to, an altered item or an unauthorized signature. If I fail to uphold these duties, I understand and agree that I am precluded from asserting the error or unauthorized payment against you if: (1) you suffer a loss on the item because of my failure, or (2) you pay on another item presented by the same wrongdoer if the payment was made before I properly notified you. Notification must be within thirty (30) days of the date of the statement. If I fail to uphold my duties but I can prove that you failed to exercise ordinary care in the payment of the relevant items, then the above preclusion will not apply, and the loss on the items will be allocated between you and me to the extent our respective actions contributed to the loss. If I have failed to examine my statement and report any unauthorized item one (1) year or more after my statement or the item has been made available to me, I cannot recover from you even if you failed to exercise ordinary care in paying the item.

46. I understand and agree that you may combine statements of one or more of my accounts unless otherwise specified by me.

47. I agree to notify you promptly of any change of address. I may notify you in person at any of your offices or by sending a written and signed notice to your corporate headquarters at 888 North Nash Street, El Segundo, CA 90245. You reserve the right to charge a reasonable fee in your attempt to locate me as disclosed in your Services and Schedule of Fees.

48. Except as prohibited by applicable law, I understand and agree that you may impress and enforce (right of offset) a statutory lien upon my shares and dividends in any and all of my accounts with you to the extent of any loan made to me, charges payable by me, or any liabilities owed to you by me or by any joint owner on the account pursuant to Section 1757(11) of the Federal Credit Union Act or in the event that a negative balance is created in my share account. The law provides that you may take funds on deposit in my account to satisfy a debt I owe you that is not paid when due. This is called "right of offset." If you exercise your right of offset against an account that is subject to an early withdrawal penalty, the account will be assessed the applicable early withdrawal penalty (whether due to ATM activity, returned deposit activity, fees and charges imposed by you, or otherwise). You may transfer funds to such account from any other share account in an amount equal to the negative account balance. You may use funds held in my accounts to repay my obligations to you, whether owned by me individually or jointly with another, including obligations owed by me arising out of another, including obligations are not directly incurred by me; obligations on which I am secondary liable; and any amounts for which I become liable to any governmental agency or department or any company as a result of recurring payments credited to any of your accounts after the death, legal incapacity or other termination of entitlement of the intended recipient of such funds. If I am a sole proprietor, you may use any of my personal or business accounts. You may use all or any of the funds in any accounts in the name of the Business Member to pay any debts or other obligations of the Business Member to you.

49. I understand that your business days are Monday through Friday, excluding holidays.

50. I may not stop payment on completed electronic point-of-sale transactions debiting my checking account.

51. My death or incompetence, or that of any of us, or dissolution of an entity, shall not revoke your authority to accept, pay, or collect a check(s) or to account for proceeds of its collection until you know of the fact of death or adjudication of incompetence and have a reasonable opportunity to act on it. Even with knowledge, you may at your discretion for ten (10) days after the date of death, dissolution, or incapacity, pay or guarantee a check(s) drawn on or prior to that date, unless ordered in writing to stop payment by a person claiming an interest in the account under rules established by you. One of us shall notify you if any of us dies, becomes incapacitated, or the entity is dissolved.

52. You are neither given notice nor otherwise affected by a restrictive endorsement of any person or entity. If I cash or deposit an item or write a check with a restrictive endorsement, I understand that it applies only between me and the payee or maker of the item, and I agree to accept responsibility for the payment of the item.

53. All non-cash payments shall be credited subject to final payment. My right to withdraw the funds represented by certain checks or other items I deposit may be delayed for several days, pursuant to your Funds Availability Policy. I will be notified if my right to withdraw will be delayed.

54. Waivers - Even if you honor a nonconforming request, you are not required to do so later. You may treat continued abuse of the stated limitations (if any) as my act of closing the account, or you may at your option reclassify my account as a transaction account. If you reclassify my account, my account will be subject to the fees and earnings rules of the new account classification. The fact that you may honor withdrawal requests that overdraw the account balance does not obligate you to do so later.

55. Earnings in the form of dividends or credits will be paid only on collected funds, unless otherwise provided by law or our policy. We may require the governing body of the legal entity opening the account to give us a separate authorization telling us who is authorized to act on its behalf. We will honor the authorization until we actually receive written notice of a change from the governing body of the legal entity.

56. If the name in which the account is held is fictitious, each account holder represents that one or more of the account holders have the right to use that name and have fulfilled all legal requirements for using and or doing business under that name.

57. To help law enforcement agencies detect illegal activities, the law requires all financial institutions to gather and report information on some types of cash transactions. If the information you need to complete the report is not provided, you are required to refuse to handle the transaction. If I have any questions regarding these rules, I will contact my local Internal Revenue Service office.

58. I agree that you may verify credit and employment history, by any necessary means, including preparation of a credit report by a credit reporting agency, and my previous banking relationships. You may also report the status and/or closure of my Account to such third party services.

59. You may change my account to another product offered by you at any time by giving me notice that my account will be changed to another product on a specified date. If my account is a time account, the change will not occur before the next maturity date of my account. If I do not close my account before the date specified in the notice, you may change my account to that other product on the date specified in the notice. You may also suspend offering account products from time to time at your discretion without notice to me.

60. It is my responsibility to protect the account number(s) and access device(s) (e.g., an ATM card, point-of-sale card and/or PIN) for my account(s). I will not discuss, compare, or share information about my account number(s) or access device(s) with anyone unless I am willing to give them full use of my money. Checks and electronic withdrawals are processed by automated methods, and anyone who obtains my account number or access device could use it to withdraw money from my account, with or without my permission. Account Numbers - Thieves can encode my account number on a check which looks and functions like an authorized check and can be used to withdraw money from my account. My account number can also be used to issue a "remotely created check." Like a typical check, a remotely created check (sometimes called a telecheck, preauthorized draft or demand draft) is a draft or check that can be used to withdraw money from my account. Unlike a typical check or draft, however, a remotely created check is not issued by the paying bank and does not contain the signature of the account owner (or a signature purported to be the signature of the account owner). For example, if I provide my account number in response to a telephone solicitation, the telephone solicitor can use the account number to issue a remotely created check to withdraw money from my account. If I have truly authorized the remotely created check (to purchase a service or merchandise, for example), it is properly payable. But it can be risky to authorize a remotely created check. A swindler could issue a remotely created check in an amount greater than I authorized, or issue additional remotely created checks that I have not authorized. You will not know if the withdrawal is unauthorized or in an amount greater than the amount I have authorized. Payment can be made from my account even though I did not contact you directly and order the payment.

Blank checks - I must also take precaution in safeguarding my blank checks. I will notify you at once if I think my blank checks have been lost or stolen. As between me and you, if I am negligent in safeguarding my checks, I must bear the loss entirely myself, or share the loss with you if you failed to use ordinary care which substantially contributes to the loss.

REMOTELY CREATED CHECKS - Like any standard check or draft, a remotely created check (sometimes called a telecheck, preauthorized draft or demand draft) is a check or draft that can be used to withdraw money from an account. Unlike a typical check or draft, however, a remotely created check is not issued by the paying bank and does not contain the signature of the account owner (or a signature purported to be the signature of the account owner). In place of a signature, the check usually has a statement that the owner authorized the check or has the owner's name typed or printed on the signature line. For example, if a person provides an account number in response to a telephone solicitation, the telephone solicitor can use the account number to issue a remotely created check to withdraw money from that account.

I warrant and agree to the following for every remotely created check you receive from me for deposit or collection: (1) I have received express and verifiable authorization to create the check in the amount and to the payee that appears on the check; (2) I will maintain proof of the authorization for at least 2 years from the date of the authorization, and supply you the proof if you ask; and (3) if a check is returned, I owe you the amount of the check, regardless of when the check is returned. You may take funds from my account to pay the amount I owe you, and if there are insufficient funds in my account, I still owe you the remaining balance

61. You may amend the terms of this Agreement from time to time, including but not limited to, rules, products and procedures. You will notify me of such changes if required by law. The changes will be effective on the date specified or as otherwise required by law. I may not modify this Agreement without prior written approval from you. No representation or statement made by any employee of ours shall be binding upon us unless it is made in writing and signed by an authorized officer. Each Account is subject to such other items, conditions, rules, and requirements as you may establish from time to time. Changes will be effective on the date that the you specify or as otherwise required by law. You will inform me of any change by:

  • including a notice of such change in the Account statements mailed to me,
  • posting a notice on the your Website,
  • posting a notice in each branch, and/or
  • such other means you considers appropriate.

The effective date of such change will be set out in the notice. Operation of an account or the use of services after the effective date of any changes will be deemed acceptance of such changes.

Terms and Conditions Applicable to Accounts with Check Clearing Privileges
1. I understand that my checking account(s) as well as select money market account(s) or select line of credit loan(s) have check-clearing privileges.

2. You may pay and charge to my account check(s) drawn by and payable to any person, organization, association, or corporation whom I have authorized by providing sample magnetic ink character recognition (MICR)-encoded information identifying my account, provided there are sufficient funds in my account to pay such check(s). I agree that your rights in respect to such check(s) shall be the same as if it were a check or checks drawn and signed by me personally. This authority shall remain in effect until I have provided written notice revoking this authorization to the agency to which the sample MICR information was provided, and until you have a reasonable opportunity to act upon it. I agree that you shall be fully protected in honoring such check(s). I further agree that if any such check(s) is/ are dishonored, whether with or without cause and whether intentionally or inadvertently, you shall be under no liability whatsoever even when such dishonor results in the forfeiture of insurance, loss, or damage to me of any kind.

3. If you have made a good faith payment to a payee, you may charge my account according to: (1) the original tenor of my check, or (2) the tenor of my completed check unless you have noticed that any such completion is improper.

4. I will notify you immediately if my checks are lost or stolen.

5. Provided such request is timely so that you shall have reasonable opportunity to act upon it under your rules, I may order stop payment of any check payable against my account for a fee as disclosed in your Services and Schedule of Fees. All the information given by me to you regarding such check must be accurate. You may, but shall not be obligated to, receive such order orally, written or electronically. If you do act upon my oral or electronic request to stop payment on a check, I agree to indemnify, defend, and hold you harmless from any and all liability, cost (including attorneys' fees), judgments, and damages of every kind, regardless of the source. In such event, my oral order shall be valid for only fourteen (14) days unless confirmed in writing. Written or electronic orders shall be valid no longer than six (6) months. I have the burden of establishing the fact and amount of loss resulting from payment contrary to a binding stop payment. I understand that I must submit a new stop payment order to extend the period for another six (6) months.

6. You may without liability accept, pay, guarantee, or charge checks to the account in any order convenient to you.

7. In the event of wrongful dishonor that occurs by mistake, liability shall be limited to actual damages. The measure of damages for failure to exercise ordinary care in handling a check is the amount of the item reduced by an amount that could not have been realized by the use of ordinary care.

8. I agree that in the event I draw a check on my account with you, I will hold you harmless and indemnify you from any liability I incur due to a delay or misrouting of the check if the delay or misrouting is caused by markings placed on the check by me or a prior endorser that obscure any depository endorsement placed by you or your agent.

9. I understand that you are not selling checks. As a convenience to me, you will submit my initial order and reorders for personalized account checks to the printer named on the face of the order. If the printer accepts the initial order and reorders, the printer will mail the checks to me and is authorized to charge my account for the cost of delivered checks ordered, plus applicable sales tax and delivery costs.

10. I understand and agree that my checks are truncated, I will not receive the originals, and you do not inspect the checks for signatures. Check copies are not returned with statements, and when paid, the checks become your property and will not be returned to me. Checks are microfilmed on both sides and stored for seven (7) years from date of posting. Upon my request, you will provide me with a photocopy of a requested item within a reasonable time and for a fee as disclosed in your Services and Schedule of Fees. If I have not ordered my checks through your approved check vendors, I understand and agree that you are not responsible for the quality of any check copy that I request from you. In addition, you are not responsible for any checks not paid as a result of quality or printing errors.

11. You may charge against my account a postdated check even though payment is made before the date of the check. However, if I notify you within a reasonable time to permit you to act and identify the check with reasonable certainty, you cannot pay the check until the due date. Notice may be written or oral, and it must include the exact amount, account number, check number, date of check, and name of payee. If oral, the notice shall be valid for fourteen (14) days. If written, the notice shall be valid for up to six (6) months and can be renewed within six (6) months for another successive six (6)-month period. A fee may be assessed for this service.

12. All checks written on my account must be written in English and drawn in U.S. dollars.

13. The following applies to my checking accounts: a. You may, at your discretion, pay funds from this account without obligation or liability for refusal to pay when such payment would draw the account below the minimum balance for the account as established from time to time by you.

b. I understand that the current incremental amounts used for overdrafts are disclosed in your current Services and Schedule of Fees and are subject to change.
c. You may, but shall not be required to, pay overdrafts to my account by transferring funds to cover such overdrafts from my designated savings account, money market account, and/or applicable line of credit loan. Overdrafts, if paid, in excess of funds in any loan account are payable on demand.
d. I authorize you to transfer funds on my written, electronic or oral request to my account. I understand that no more than six (6) overdraft transfers are permitted in any calendar month. You may, but are not required to, pay any check against insufficient funds. Overdrafts, paid in excess of funds available in my account, are payable on demand: if drawn by means not authorized in advance by you, or against checks or electronic debits presented over six (6) months past their dates.
e. By executing the appropriate written form, I may authorize you to clear all checks validly drawn on my checking account(s) pursuant to the applicable automatic overdraft protection terms. If overdrafts are to be covered by a transfer of funds from my savings or money market account(s) to my checking account(s), such transfer will generally be made only if there are sufficient funds on deposit at the time of transfer. I understand that there might be times when some of the features of overdraft protection may not be available. Examples would include general system maintenance, system overload, or a natural disaster.

SECTION III: FUNDS AVAILABILITY POLICY 

Credits For Deposits
A receipt may be provided or made available upon request for all deposits to my account, except for remote deposits (e.g., lockbox, night depository services, certain funds transfers). However, the amount on my deposit receipt is based solely on my deposit ticket. Funds from my deposits to my account may not be made immediately available. You shall not be construed to have received for deposit checks sent by mail or placed in the night depository until you have either received actual delivery from the U.S. Postal Service or have removed the checks from the depository. Checks placed in such depository will be removed not later than the next business day. All deposits made by mail and addressed to you without using a specific Financial Center name and street address will be considered received as of the date such deposit is received by such location. For checking accounts, funds will be made available according to Federal Reserve Regulation CC and your Funds Availability Policy. Credits for all deposits are subject to final verification and, after review, you may make adjustments to my account for any errors, including any errors appearing on my deposit ticket, but have no obligation to do so for discrepancies under $10. In addition, the availability of funds for withdrawal does not mean that the deposited check or other item is "good," has "cleared," or has been paid by the paying financial institution, or that the item will not be returned unpaid and my account subsequently debited, notwithstanding the passage of any period of time or any representation or belief to the contrary. You may accept credits to my account that have been originated by third parties (e.g., ACH credits, wire transfers). However, you may reverse any credit to my account that the originator of such deposit has informed you was in error or was intended for another account without investigating whether such credit was not properly payable to me.

You need not accept for deposit items drawn on a non-U.S. financial institution or items payable in a foreign currency and may instead accept such items on a collection basis, even after you have taken physical possession of such items. If accepted on a collection basis, you will not be obligated to credit my account for such items until you have received final payment. The actual credit for items payable in a foreign currency will be at the exchange rate in effect at the time of final collection in U.S. dollars. Regardless of whether such items are accepted for deposit or on a collection basis, your Funds Availability Policy will not apply to these items.

I agree that you act only as a collecting agent in receiving items for deposit or collection and assume no responsibility beyond reasonable care. You will use reasonable care in the selection of collecting agents but will not be liable in the case of their failure or negligence or for losses in transit. I agree that you, and each of your correspondents, may send checks subject to collection, directly or indirectly, to any financial institution, depository, maker, or drawer in accordance with your usual custom and may accept checks, drafts, or credits on a conditional basis. In general, your policy is to make funds available to me on the first business day after the day you receive my deposit. The first $200 of this deposit will be available on the first business day after the day of my deposit. For my accounts, funds will be made available according to the Federal Reserve Board's Regulation CC and your Funds Availability Policy. Funds may be held for a longer period after review of deposited items.

For purposes of determining the availability of my deposits, every day is a business day, except Saturday, Sunday, and federal holidays. If I make a deposit on a business day that you are open during business hours or through the night depository or lockbox services, you will consider that day to be the day of my deposit. However, if I make a deposit on a Saturday, Sunday, federal holiday, or through the night depository box or lockbox services on a day you are not open or after business hours, you will consider that the deposit was made on the next business day you are open.

Longer Delays May Apply
In some cases, you will not make all the funds I deposit by check available to me on the first business day after the day of my deposit. Depending on the type of check I deposit, funds may not be available until the second or seventh business day following the day of deposit. If there is reasonable doubt of collectability, funds may be held longer. However, the first $200 of my deposit will be available on the first business day.

Note: You may delay the availability of my funds for one (1) additional day if I request a cash withdrawal, cashier's check, money order, traveler's check, certified check, official check, or any other irrevocable commitment to pay.

If you delay the availability of my funds, you will tell me at the time I make my deposit and tell me when the funds will be available. If my deposit is not made directly to one of your employees or if you decide to take this action after I have left the premises, you will mail me the notice of the delay the business day after you receive my deposit or balance your ATM. If I need the funds from deposit right away, I should ask you when the funds will be available. In addition, funds I deposit by check may be delayed for a longer period under the following circumstances:

a. You believe a check I deposited will not be paid.

b. I deposit checks totaling more than $5,000 on any one day.

c. I redeposit a check that has been returned unpaid.

d. I have overdrawn my account repeatedly in the last six (6) months.

e. There is an emergency, such as failure of computer or communications equipment.

You will notify me if you delay my ability to withdraw funds for any of these reasons, and you will tell me when the funds will be available. Generally, they will be available no later than the seventh business day after the day of my deposit.

Special Rules for New Accounts
If I am a new member, the following special rules apply during the first thirty (30) days that my account is opened. Funds from electronic direct deposits to my account will be available on the day you 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, and traveler's checks and federal, state, and local government checks will be available on the first business day after the day of my deposit if the deposit meets certain conditions. For example, the checks must be payable to me and the excess of more than $5,000 will be available on the ninth business day after the day of my deposit. If my deposit of these checks (other than a U.S. Treasury check) is not made in person to one of your employees, the first $5,000 will not be available until the second business day after the day of my deposit. Funds from all other check deposits will be available no later than the 30th calendar day after the day of my deposit.

In no event does the above policy affect your right to accept or reject an item for deposit or to require written notice of an intended withdrawal. The above policy is subject to change upon fifteen (15) days' written notice.

Check Processing, Including Check 21 - Substitute Checks
Checks, drafts, and other negotiable instruments, including substitute checks (collectively "checks") deposited to my account or cashed, automated clearinghouse (ACH) entries, and all other types of external and book-entry funds transfers (checks and funds transfers collectively referred to herein as "items") may be charged back against the account (or an account for split deposits) or any other account of mine with you if you are informed that the item is being or has been returned unpaid (or for checks drawn on other accounts with you, the check is dishonored by you for any reason), without regard to whether such return or dishonor is timely. When a deposited or cashed item is returned, I will be charged a fee as disclosed in your Services and Schedule of Fees. You may charge my account whether or not the check is returned to you and whether or not you can return the item or a copy to me. Even if you verify a deposited or cashed check and tell me that the check has been paid, that will not release my liability as an endorser. This right shall extend to any check or other item deposited into my account or cashed that is finally paid and then is returned because a claim is made that the check or other item was altered, forged, unauthorized, has a missing signature, or should not have been paid for any reason. In lieu of charging my account, you may withhold an amount equal to such check or other item from my account until a final determination of the validity of such claim has been made. You have no duty to return a check that has been charged back to an account if that account has become overdrawn. You are not required to give me next-day notice if a deposited or cashed item is dishonored. Any check deposited to my account that lacks an endorsement may be, or may be deemed to be, endorsed by you on my behalf with exception of government-issued checks. With respect to any such check, my rights and my liabilities shall be determined as though I actually endorsed and deposited the item. Further, any check deposited to my account that bears my stamped or facsimile endorsement shall be deemed to bear my actual endorsement whether such endorsement was affixed by me or by someone having no authority to supply my endorsement. I agree to assume responsibility for and to indemnify you for any loss you may incur as a result of my failure to comply with the endorsement standards set forth in this Agreement. If I deposit a remotely created check, I guarantee that the check was authorized by the account holder for payment in the amount shown. Remotely created checks are created when an account holder authorizes a payee to draw a check on the account, but instead of the account holder's actual signature, the check identifies that the account holder authorized the check. You will accept deposits based solely on account numbers listed, and you are not responsible for verifying the name(s) listed on the checks or associated with the account.

You may return or refuse to accept all or any part of a deposit or credit to my account at any time and will not be liable to me for doing so even if such action causes outstanding items to be dishonored and returned. Returned or refused deposits (or the legal equivalent of the deposited item) will be returned to me. In addition, I will be solely responsible for any loss or liability you sustain in connection with the deposit of substitute checks.

You will not give me next-day notice of receipt of an electronic deposit to my account but will provide such notice to me on my next periodic account statement. I may call you to confirm an ACH or wire transfer deposit.

Substitute Checks
Federal law permits financial institutions to replace original checks with "substitute checks." These checks are similar in size to original checks with a slightly reduced image of the front and back of the original check. The front of a substitute check states, "This is a legal copy of my check. I can use it the same way I would use the original check." You may use a substitute check as proof of payment just like the original check.

Some or all of the checks that I receive back from you may be substitute checks. This notice describes rights I have when I receive substitute checks from you. The rights in this notice do not apply to original checks or to electronic debits to my account. However, I have rights under other laws with respect to those transactions.

In certain cases, federal law provides a special procedure that allows me to request a refund for losses I suffer if a substitute check is posted to my account (for example, if I think that you withdrew the wrong amount from my account or that you withdrew money from my account more than once for the same check). The losses I may attempt to recover under this procedure may include the amount that was withdrawn from my account and fees that were charged as a result of the withdrawal (for example, overdraft check fees). The amount of my refund under this procedure is limited to the amount of my loss or the amount of the substitute check, whichever is less. I am entitled to dividends on the amount of my refunds if my account type earns dividends.

If you use this procedure, I may receive up to $2,500 of my refund (plus dividends if my account earns dividends) within ten (10) business days after you received my claim and the remainder of my refund (plus dividends if my account earns dividends) not later than forty-five (45) calendar days after you received my claim.

You may reverse the refund (including any dividends on the refund) if you later are able to demonstrate that the substitute check was correctly posted to my account.

Making a Refund Claim
If I believe that I have suffered a loss relating to a substitute check that you received and that was posted to my account, I should contact you at 1.800.XFCU.222 (1.800.932.8222).

I must contact you within forty (40) calendar days of the date that you mailed (or otherwise delivered by a means to which I agreed) the substitute check in question or the account statement showing that the substitute check was posted to my account, whichever is later. You will extend this time period if I was not able to make a timely claim because of extraordinary circumstances.

My Claim Must Include:

  • A description of why I have suffered a loss (for example, I think the amount withdrawn was incorrect).
  • An estimate of the amount of my loss.
  • An explanation of why the substitute check you received is insufficient to confirm that I suffered a loss.
  • Information to help you identify the substitute check: the check number, the name of the person to whom I wrote the check, and the amount of the check.

My compliance with your endorsement standards is necessary to help assure that the checks you deposit will be cleared on a timely basis. Your endorsement standards are:

  • Member endorsements must be placed in the 11/2-inch area starting at the left side of the check.
  • The remaining area of the check cannot contain any preprinted, stamped, or handwritten member information.


(The diagram below illustrates where the endorsements must appear to comply with these endorsement standards.)

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Record Retention
You shall abide by federal and applicable state record retention laws and may dispose of any records that have been retained or preserved for the period set forth in these laws. Any action by or against me based on, or the determination of which would depend on, the contents of records for which a period of retention or preservation is set forth in these laws shall be brought within the time for which the record must be retained or preserved, unless applicable law provides a shorter limitation period. Any action against me on an automatically renewable share certificate account must be brought within the retention period applicable to that share certificate account based on the stated maturity date in the most recent record evidencing the existence and term of the share certificate account.

SECTION IV: ACH AND INCOMING FUNDS TRANSFER AGREEMENT AND NOTICE

The State of California has adopted as law Article 4A of the Uniform Commercial Code, and the Board of Governors of the Federal Reserve has amended Subpart B of Regulation J. This law and regulation covers the movement of funds by means of wire transfers, automated clearinghouse (ACH) transactions, and some book transfers on your records.

The law is intended to establish a comprehensive legal framework covering the duties, responsibilities, and liabilities of all parties involved in a funds transfer. This ACH and Incoming Funds Transfer Agreement and Notice (“Agreement”) contains several notices that you are required to provide to me and establishes other terms of agreement that will apply to all funds transfers that involve me and you. Using you to receive funds transfers shall constitute my acceptance of all of the terms and conditions contained in this Agreement. Except for the Outgoing Wire/Funds Transfer Agreement (For Business Accounts) and the Outgoing Wire Transfer Request Form Funds Transfer Terms, to the extent that the terms contained in this ACH and Incoming Funds Transfer Agreement and Notice are different than those in any other agreement or terms of account, this ACH and Incoming Funds Transfer Agreement and Notice shall control and be deemed to modify such other agreements or terms of an account.

1. This Agreement applies to funds transfers as defined in Article 4A of the Uniform Commercial Code (Division 11 of the California Uniform Commercial Code) and Subpart B of Regulation J of the Board of Governors of the Federal Reserve.

2. For incoming funds transfers, you may establish or change cutoff times for receipt and processing of funds transfers. Unless other times are posted for the types of funds transfers, the cutoff time for incoming funds transfer will be 4:00 p.m., Pacific Time on each weekday that you are open that is not a federal holiday. Funds received after the cutoff time will be deemed received the next business day.

3. If I receive a funds transfer, Fedwire may be used. This means that my rights and liabilities in a funds transfer involving Fedwire will be governed by Regulation J. You will be excused from delaying or failing to execute a funds transfer if it would result in your exceeding any limitation on its intra-day net funds position established through the Federal Reserve guidelines or if it would result in violating any present or future risk control program of the Federal Reserve or a rule or regulation of other governmental regulatory authorities.

4. If you receive a funds transfer for me or for other persons authorized to have access to my account, I agree that you are not obligated to provide me with next day notice of the receipt of the funds transfer. You will provide me with notification of the receipt of all funds transfers by including such items in the periodic account statements which you provide. I may, of course, inquire between receipt of periodic statements whether or not a specific funds transfer has been received.

5. If you become obligated under Article 4A of the Uniform Commercial Code (Division 11 of the California Uniform Commercial Code) to pay dividends to me, I agree that the rate of dividend to be paid will be equal to the dividend rate, on a daily basis, applicable to the account with you to which the funds transfer should have been made or from which the funds transfer was made.

6. You will not be liable for acts or omissions by me or any other person including, without limitation, any funds transfer system, any Federal Reserve Bank, any beneficiary’s bank, and any beneficiary, none of which will be deemed your agent.

7. You may charge a service charge for services relating to the receiving of the funds transfer request. Such charge(s) are set forth in your Schedule of Fees and Charges, which is incorporated by this reference.

8. You may give me credit for ACH payments before you receive final settlement of the funds transfer. Any such credit is provisional until you receive final settlement of the payment. I am hereby notified and agree if you do not receive such final settlement, you are entitled to a refund from me of the amount credited to me in connection with that ACH entry. This means that you may provide me with access to ACH funds before you actually receive the money. However, if you do not receive the money, then you may reverse the entry on my account, and I would be liable to repay you.

9. Notice of ACH payments received will be provided only on my periodic account statement. ACH transactions are governed by operating rules of the National Automated Clearinghouse Association. In accordance with these rules, you will not provide me with

next-day notice of receipt of ACH credit transfers to my account. I will continue to receive notices of receipt of ACH items in the periodic account statements that you provide.

10. I understand and agree that in case of unauthorized or improper ACH debit activity on my account, I must complete, sign, and submit a designated form.

11. Except as expressly prohibited by applicable state and federal laws and regulations, I understand and agree that you will not be liable for any loss or liability arising from: (1) any unauthorized transfer or interest thereon (including, but not limited to, fraudulent transfers and/or a transfer which you failed to abide by the agreed upon security procedures) which I fail to report to you within thirty (30) days after my receipt of notification of the transfer; (2) any negligent or intentional action or inaction on the part of any person not within your reasonable control, including, but not limited to, the failure of other financial institutions to provide accurate or timely information; (3) the failure of other financial institutions to accept a funds transfer order; (4) my negligent or intentional action or inaction and/or breach of this Agreement; (5) any ambiguity or inaccuracy in any instruction given to you by me or my Authorized Agent; or (6) any error, failure, or delay in execution of any funds transfer instruction, or cancellation or amendment caused by circumstances beyond your reasonable control, including, but not limited to, any computer or communication facilities malfunction.

Except as otherwise provided by applicable state or federal laws or regulations, your liability for any negligent or intentional action or inaction in connection with any funds transfer request will be limited to my direct loss and payment of interest. UNDER NO CIRCUMSTANCES WILL YOU BE LIABLE FOR ANY LOST PROFITS, CONSEQUENTIAL, INDIRECT, PUNITIVE, OR SPECIAL DAMAGES WHICH I MAY SUFFER IN CONNECTION WITH THIS AGREEMENT AND/OR ANY FUNDS TRANSFER REQUEST.

12. Subject to applicable state and federal laws and regulations, you may amend the terms of this Agreement at any time by providing notice of such amendment to me in writing. By thereafter using or continuing to use your funds transfer services, I agree to such amendments.

13. Except as otherwise expressly provided by applicable state and federal laws and regulations, this Agreement and all transactions initiated hereunder shall be governed by and construed in accordance with federal laws and the laws of the State of California, without resort to California’s Conflict of Laws rules.

14. If any part of this Agreement is invalid, illegal, or unenforceable, the remaining provisions will remain in full force and effect.


SECTION V: GENERAL TERMS AND CONDITIONS APPLICABLE TO ALL BUSINESS ELECTRONIC SERVICES

I understand and agree that the Services will not be used for personal, family or household purposes and that all transactions conducted by means of a card, Personal Identification Number ("PIN") or electronic service shall be the responsibility of the business. Further, I understand and I shall advise each person to whom a card and/or PIN is issued that each transaction originated by means of a card or PIN is NOT a "consumer" transaction, as defined in the Electronic Funds Transfer Act and in Regulation E and is not governed by or entitled to the protection of federal law and regulation. Restricted Transactions - The Services may not be used for any illegal activity or transaction. Further, you may not utilize the Services for purchase of any goods or services on the Internet that involve gambling of any sort. Such transactions include, but may not be limited to, any quasicash or online gambling transaction, any electronic commerce transaction conducted over an open network, and any betting transaction including the purchase of lottery tickets or casino gaming chips or off-track betting or wagering. However, in the event that a transaction described in this paragraph is approved and processed, I will still be responsible for such charges. I am responsible for all transactions and charges incurred by the use of any Services. I will take reasonable precautions to prevent unauthorized use of any card and/or PIN or Access Code and I will not disclose the PIN to anyone. If the card is given and/or the PIN is disclosed to anyone and that person then conducts business account electronic banking transactions on my Account(s), the transaction will be deemed authorized and the person will continue to be authorized to conduct transactions until I notify you otherwise by telephone at (800) XFCU-222. I will notify you at once if I discover or suspect unauthorized use of any card and/or PIN issued to me. IN NO EVENT SHALL YOU BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR EXEMPLARY DAMAGES, INCLUDING LOSS OF PROFITS (EVEN IF ADVISED OF THE POSSIBILITY HEREOF). ADDITIONAL TERMS AND CONDITIONS APPLICABLE TO ATM/CHECKCARD TRANSACTIONS

Foreign Currency - If I use the Card to withdraw foreign currency from an ATM or at a financial institution that accepts cards with the VISA® logo and uses a currency other than U.S. dollars, Visa International Incorporated will convert the charge into a U.S. dollar amount. Visa will use the government-mandated conversion rate in U.S. dollars or a wholesale currency market rate based on the transaction processing date. I understand that you have no control over the conversion rate and that the currency conversion rate used by Visa on the processing date may differ from the rate that would have been used on the purchase date or the cardholder statement posting date.

A separate Visa International Service Assessment (ISA) Fee will apply for each foreign currency transaction. The ISA fee will be charged directly to you, passed on to me, and will appear on my statement as an additional charge. Charges associated with electronic funds transactions are disclosed in your Business Services and Fee Schedule.

Limitations on Frequency and Dollar Amounts of Transactions - If permitted by you and provided I have enough money in my share/checking account(s), I may withdraw during any day, including Saturday and Sunday as follows: (1) Up to a maximum of $750 for PIN-based transactions, and up to a maximum of $2,500 for signature-based transactions. However, if allowed by you, the amount that I may withdraw daily or in a single use of the ATM may be different at Network ATMs, where limits are determined by each participating financial institution. For security reasons, in the event my Card or PIN is lost or stolen, there are limits on the dollar amount of transactions I can make on the ATM System. You count a transaction as having occurred when it is received by you in the Pacific Time zone at local time.

Telephone Number and Address to Be Notified in Event of Unauthorized Transactions - If I believe my ATM card(s), PIN, or Access Code has been lost or stolen, or that someone will or may use it to transfer money from my Account without my permission, I will telephone you at (800) XFCU-222, or write to you at 888 North Nash Street, El Segundo, CA 90245.
Additional terms and conditions applicable to electronic access systems are outlined in the Xceed Online Services Agreement, which can be found online at www.xfcu.org.

Disclaimer: I UNDERSTAND THAT THE ELECTRONIC ACCESS SYSTEMS ARE AUTHORIZED ONLY FOR DOMESTIC USE WITHIN THE UNITED STATES AND TERRITORIES THAT FALL UNDER THE JURISDICTION OF U.S. LAWS AND TREATIES. THE CREDIT UNION ACCEPTS NO RESPONSIBILITY FOR ANY USAGE GOING OUTSIDE OR THROUGH THE TERRITORIAL JURISDICTION OF THE UNITED STATES OR ANY VIOLATIONS OF FOREIGN ENCRYPTION OR TELECOMMUNICATION PROHIBITIONS OR LAWS.

SECTION VI: TERMS AND CONDITIONS APPLICABLE TO DIVIDENDS

Dividend rates, frequency, and conditions upon which dividends are paid on all accounts are in accordance with your bylaws, the Federal Credit Union Act, and the Truth in Savings Act and Regulations. Dividends are paid from current income and available earnings after required transfers to reserves at the end of a dividend period. For all dividend-earning accounts, except for share certificate accounts, the dividend rate and annual percentage yield may change weekly. You may change the dividend rate and the tier structure for my account as determined by your management. For specific dividend rates for each type of dividend-bearing account, I will refer to your current rate sheet, which is available at each of the Financial Centers and on your website. Dividends will begin to accrue on the business day I deposit cash or non-cash items to my account. Paid dividends remaining in the account will become part of the account balance. Dividends will be paid only if the account remains open through the end of the dividend period. If I close my account before dividends are credited, I may not receive accrued dividends. Dividends are calculated on end-of-day balances, where a daily periodic rate is applied against the account balance to determine the amount of dividends to be accrued (earned) until posted (credited) at the dividend declaration date. Dividends are computed using a 365-day basis (unless the year is a leap year) and except for certain public fund accounts where dividends are calculated on a 360-day basis. You reserve the right not to pay dividends on any deposited item that is returned to me unpaid.

Business Savings Accounts
Dividend rates are established weekly. For this account type, 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 of such dividend period is March 31. All other dividend periods follow this same pattern of dates. The dividend declaration date is the ending date of a dividend period. For example, March 31. Dividends compound quarterly and will be calculated on balances meeting specified minimum balance requirements to earn dividends based upon your current rate sheet and are credited quarterly on the last day of the quarter (March, June, September, and December). If I close my account before dividends are credited, I will not receive accrued dividends.

Business Money Market Accounts
Dividend rates are established weekly. For this account type, the dividend period is monthly. For example, the beginning date of the first dividend period of the calendar year is January 1, and the ending date of such dividend period is January 31. All other dividend periods follow this same pattern of dates. The dividend declaration date is the ending date of a dividend period. For example, January 31. Dividends compound monthly and will be calculated on balances meeting specified minimum balance requirements to earn dividends based upon your current rate sheet and will be credited on the last day of the month. If I close my account before dividends are credited, I will not receive accrued dividends.

Business Checking Accounts No dividends will be calculated or paid on this account.

Business Share Certificates
Dividend rates are established weekly. For this account type, 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 of such dividend period is March 31. All other dividend periods follow this same pattern of dates. The final dividend declaration date may follow the ending date of a dividend period, but dividends will be posted on the last day of the certificate term and at maturity. Dividends compound quarterly and are credited quarterly on the last day of the quarter (March, June, September, and December). If I close my account before the maturity date, I will receive accrued dividends, but I may incur an early withdrawal penalty or other applicable penalties.

SECTION VII: SPECIFIC ACCOUNT DETAILS

Business Savings Accounts
1. I understand the minimum opening balance and the balance required to earn dividends on my account is $100.

2. I understand this account can be used as a source of funds for overdraft purposes.

3. I understand during any given month that I may not make more than six (6) withdrawals or transfers to another account of mine or to a third party by means of a check, draft, debit card, preauthorized or automatic transfer, or telephonic order or instruction. Transfers or withdrawals in excess of these limitations may not be honored, and my account may be subject to closure by you.

4. I understand that my account may be charged a monthly fee, as disclosed in your Business Services and Fee Schedule.

5. If this account is my primary business savings share account, the following applies:

a. A minimum deposit equal to the par value of a share (currently $5.00) is required to become a member and maintain my membership with you. If the balance of my primary business savings share account is subsequently reduced to less than the par value and remains so after sixty (60) days, you may close the account.

b. I understand and agree that if my primary business savings share account balance is reduced to less than the par value of a share, you may transfer enough funds from any other share account I may have with you in order to bring my account balance up to the par value of a share.

c. I understand that only a Business Savings Account can be considered as my primary business savings share account with you and that the minimum opening balance for Business Savings Account is greater than the par value share as stated below.

d. I must maintain a minimum daily balance equal to the par value of a share in my account each day in order to maintain my membership with you.

Business Checking Accounts
1. I understand there is no minimum balance to open the account.

2. I understand that my account may be charged a monthly fee, as disclosed in your Business Services and Fee Schedule.

Business Money Market Accounts
1. I understand the minimum opening balance and the balance required to earn dividends on my account is $1,000.

2. I understand during any given month that I may not make more than six (6) withdrawals or transfers to another account of mine or to a third party by means of a check, draft, debit card, preauthorized or automatic transfer, or telephonic order or instruction. Transfers or withdrawals in excess of these limitations may not be honored, and my account may be subject to closure by you.

3. I understand that my account may be charged a monthly fee, as disclosed in your Business Services and Fee Schedule.

Business Share Certificates
1. I understand the minimum opening balance and the balance required to earn dividends on my account is $500.

2. The terms available and the minimum deposit required to open my certificate account is disclosed in your current rate sheet and may change from time to time.

3. The annual percentage yield disclosed in your current rate sheet assumes dividends remain in the accounts until maturity and that a withdrawal will reduce earnings.

4. I understand that from time to time, you may offer certain promotional certificate accounts that have a higher or lower minimum-balance requirement. I understand the dividend rate for my certificate account is fixed for the term and starts the day of deposit and holds for the term I select for the certificate.

5. After my account is opened, I may not make additional deposits into the account until the maturity date.

6. My account will mature on the date set forth on my certificate account form.

7. Federal Reserve Board regulations require an early withdrawal penalty of seven (7) days' dividends on amounts withdrawn within the first six (6) days after deposit or any partial withdrawal made prior to the date of maturity, except IRA share certificates.

8. You agree to disburse paid dividends from the account at the end of each dividend period in compliance with my instructions.

9. I understand that direct deposit and payroll deductions are not allowed on this account.

10. I understand this account cannot be used as a source of funds for overdraft purposes.

11. Except as set forth herein, I understand a substantial penalty is required for early withdrawal. Any withdrawal of the principal amount held in the account that does not reduce the balance of the account below the minimum opening balance will be subject to the following penalties: the lesser of all dividends earned or ninety (90) days' loss of dividends (for certificates with a maturity of 365 days or less), or 180 days' loss of dividends (for certificates with a maturity greater than 365 days), with seven (7) days' minimum of simple dividends on withdrawals during the first six (6) days.

12. Any withdrawal of the principal amount held in my account that reduces the balance of the account below the minimum opening balance requirement may result in the cancellation of the certificate, and the penalties set forth above may be applied to the entire principal amount. The penalties will be applied to earned dividends only. However, if paid dividends have been withdrawn, the penalties may be applied to the principal held in the account up to the amount of the dividends that have been previously withdrawn.

13. Penalties do not apply to: a. Withdrawals of earned and paid dividends. b. Withdrawals of certificate funds during the seven (7)-day grace period following the automatic renewal of the certificate.

14. You will send me a written maturity notice at least ten (10) days in advance of the maturity date of my share certificate. I may instruct you in person or in writing prior to the expiration of a seven (7)-day grace period following maturity to renew or close the certificate on a date of my choosing within the grace period. Funds will continue to earn dividends but at the rate of a new certificate for the same term in effect on the maturity date until such date of closure or renewal.

15. Unless I instruct you otherwise in person or in writing before the end of the grace period, you will renew the certificate automatically for the same term as the maturing certificate, if certificates of that term are then available. The renewal will be effective on the maturity date, and the rate will be the same as your rate for opening a new certificate of like term on the renewal date. For certificates maturing on a non-business day, funds will be made available on the second business day following the maturity date.

16. I understand that my certificate accounts are nontransferable and nonnegotiable. Any account holder with borrowing privileges may pledge any or all of the funds in any certificate account (except an IRA) as collateral security to any of your loan(s) in accordance with current loan policies.