About Us

About Your Kern Federal Credit Union Accounts

• Share Accounts
• Share Draft (Checking) Accounts
• IRA Accounts
• Electronic Funds Transfers
• Funds Availability
• Unclaimed Property Law
• Account Agreements

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

Information Regarding Member Identification

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 Our Members: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying objects.

General Information About All of Our Account

Par Value

The par value of a share in the Kern Federal Credit Union for members 16 years of age and older is $50. The par value of a share for members under 16 years of age is $5. Members under 16 years of age must increase their par value to $50 upon obtaining age 16 to retain membership.

Accrual Of Dividends

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

Dividend Rates

The initial dividend rate and Annual Percentage Yield on our share and checking accounts are stated on the Rate Schedule accompanying this Disclosure. Dividends are paid from current income and available earnings after required transfers to reserves at the end of a dividend period.

Balance Information

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

Bylaw Requirements

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

A member who fails to complete payment of one share within 2 months of his admission to membership, or within 2 months from the increase in the par value in shares, or a member who reduces his share balance below the par value of one share and does not increase the balance to at least the par value of one share within 2 months of the reduction may be terminated from membership.

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

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

Requirement To Maintain A Regular Share Account

You must have ownership in a Regular Savings Account or Association Savings Account to open any subsequent accounts. You must maintain the Regular Share Account to avoid closure of that account and any subsequent accounts.

About Our Share Accounts

Kern Federal Credit Union's share accounts let you deposit your money in a savings account and withdraw your money generally at any time. Our share accounts are Member Savings, Subsidiary Savings, Association Savings, Money Market and IRA Savings.

Rate Information

Our share accounts are designated variable rate accounts on the Rate Schedule. This rate and yield may change at any time at the Credit Union's discretion.

Dividend Compounding and Crediting

Dividends will be compounded monthly and will be credited monthly. For our share accounts 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 is January 31. All other dividend periods follow this same pattern of dates.

Transaction Limitations

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

About Our Member Savings, Subsidiary Savings and Association Savings Accounts

Minimum Balance and Deposit Requirements

The minimum deposit required for you to open a Member Savings, or Association Savings Account is $50. There is no minimum deposit required to open a Subsidiary Savings Account. The minimum deposit required to open a Member Savings Account for our members under 16 years of age is $5. You must maintain a minimum average daily balance of $100 in your Member Savings, Subsidiary Savings or Association Savings Account to obtain the Annual Percentage Yield stated on the Rate Schedule. You must maintain a minimum balance of $50 in the Member Savings or Association Savings Account to avoid a service fee.

About Our Money Market Account

Our Money Market Account is a tiered rate share account.

Minimum Balance and Deposit Requirements

The minimum deposit required for you to open a Money Market Account is $2,500. The minimum daily balance is indicated for each tier on the accompanying Rate Schedule. The dividend rate and the Annual Percentage Yield are based on the entire average daily balance of the tiered accounts. If your daily balance is increased or decreased, the dividend rate and the Annual Percentage Yield for the appropriate tier will be paid on the entire daily balance in your account. You must maintain a minimum balance of $2,500 in the Money Market Account to avoid a service fee.

Transaction Limitations

The minimum dollar amount you may withdraw from your Money Market Account is $250 per withdrawal. If you withdraw less than $250 at any time, you will be assessed the withdrawal fee listed on the Fee Schedule. The maximum number of withdrawals you may make is 6 within a calendar month. If you exceed the withdrawal limitation in any month, your account will be subject the fee as stated on the accompanying Fee Schedule.

About Our IRA Savings Account

Minimum Balance and Deposit Requirements

The minimum deposit required for you to open an IRA Savings Account is $100 and you must maintain a minimum average daily balance of $100 in the account to obtain the Annual Percentage Yield stated on the Rate Schedule.

Incorporation Of Ira Agreement and Disclosures

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

About Our Share Draft Accounts (Checking Accounts)

Kern Federal Credit Union offers checking accounts which let you withdraw your money and write checks against your account at any time. Our checking accounts are Free Checking and Plus Checking.

About Our Free Checking Account

Dividend Information

Our Free Checking Account is a non-dividend earning account.

Minimum Balance and Deposit Requirements

The minimum deposit required for you to open your Free Checking Account is $25.

About Our Plus Checking Account

Balance Information

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

Rate Information

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

Dividend Compounding and Crediting

Dividends will be compounded monthly and will be credited monthly. For our Plus Checking Account, 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 is January 31. All other dividend periods follow this same pattern of dates.

Minimum Balance and Deposit Requirements

The minimum deposit required for you to open a Plus Checking Account is $25. You must maintain a minimum daily balance of $0.01 in your Plus Checking to obtain the Annual Percentage Yield stated on the Rate Schedule. You must maintain a balance of $2,000 in this checking account to avoid a Service Fee as stated on the Fee Schedule. The Service Fee may be waived if you have an aggregate of $10,000 in the Plus Checking Account and any combination of savings accounts, IRA, Money Market and share certificate accounts

About Our Share Certificate Accounts

Kern Federal Credit Union's share certificate accounts let you deposit your money for a specified period of time. Our share certificate accounts are Term Certificates, IRA Term Certificates, and IRA Loan Certificates.

About Our Term and IRA Term Certificates

Annual Percentage Yield

The Annual Percentage Yield is based on an assumption that dividends will remain on deposit until maturity. If you make a withdrawal from your account, your earnings will be reduced.

Maturity

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

Balance Information

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

Rate Information

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

Dividend Compounding and Crediting

Dividends will be compounded monthly and will be credited monthly. The dividend period is monthly. If you close your account before dividends are credited, you will not receive accrued dividends.

Minimum Balance and Deposit Requirements

The minimum deposit required for you to open a Term Certificate or IRA Certificate is indicated on the Rate Schedule. You must maintain the minimum balance to obtain the Annual Percentage Yield stated on the Rate Schedule and to avoid closure.

Account Limitations

You may not make deposits into your share certificate account before the maturity date. You may withdraw credited dividends from your account at any time.

Early Withdrawal Penalty

We may impose a penalty and close the account if you withdraw principal from your account before the maturity date. The penalty imposed shall be as follows: If the term is one year or less, you will forfeit all dividends for 90 days, or all dividends since the date of issuance or renewal, whichever is less. If the term is more than one year, you will forfeit all dividends for 180 days, or all dividends since the date of issuance or renewal, whichever is less. Unless otherwise instructed the remaining funds will be transferred to a Member Share Account at the prevailing rate stated on the Rate Schedule effective on the date of transfer.

Exceptions To Penalties

The penalties stated above will not apply if:

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

Renewal Of Account

Your account will automatically renew at maturity for the same time period as the original term at the prevailing rate unless you withdraw all of the funds in your account at maturity or within a grace period of 10 days after maturity.

About Our IRA Loan Certificates

Kern Federal Credit Union offers an IRA Loan Certificate to be opened in conjunction with your one year IRA Loan. We will place the proceeds from your loan into your IRA Certificate and transfer the funds to your IRA Savings Account at the end of the year. The certificate is non-dividend earning.

Minimum Balance and Deposit Requirements

The minimum deposit required for you to open an IRA Loan Certificate is $2,000. You must maintain a minimum balance of $2,000 in the account to avoid closure.

Renewal Of Account/Grace Period

Your account will not renew at maturity. Your funds will be transferred to your IRA Share Account.

Account Limitations

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

Early Withdrawal Penalty

We may impose a penalty if you withdraw any of the funds from your account before the maturity date. The penalty imposed shall be equal to 10% of the principal.

Exceptions To Penalties

The penalties stated above will not apply if:

The withdrawal is made subsequent to the death or disability of any owner of the share certificate account, or is made pursuant to the Credit Union's bylaws; or such withdrawal is made as a result of the voluntary or involuntary liquidation of the Credit Union issuing the account.

Incorporation Of Ira Agreement and Disclosures

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

Electronic Fund Transfer Disclosure and Agreement

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

Personal Identification Number

The Credit Union will issue you a Personal Identification Number (PIN) that must be used with the ATM or Debit Card for transactions that require the use of a PIN. This number should be memorized-DO NOT write it on your ATM or Debit Card. After memorizing your PIN, you should destroy the notice disclosing your PIN. If you forget your PIN, contact the Credit Union and we will issue you a new one.

Right To Receive Documentation Of Transactions

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

Your Liability For Lost, Stolen Or Unauthorized Transactions Involving Automated Teller Machine (ATM) Cards

Tell us AT ONCE if you believe your ATM/POS Card and/or Personal Identification Number (PIN) has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account (plus your maximum overdraft line of credit if you have one with us). If you tell us within two (2) business days, you can lose no more than $50 if someone used your ATM/POS Card or PIN without your permission. If you DO NOT tell us within two (2) business days after you learn of the loss or theft of your ATM/POS Card or PIN, and we can prove that we could have stopped someone from using your ATM/POS Card or PIN without your permission if you had told us, you could lose as much as $500. Also, if your statement shows transfers that you did not make, tell us at once. If you do not tell us within 60 days after the statement was mailed to you, you may not get back any money you lost after the 60 days if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason (such as a long trip or a hospital stay) kept you from telling us, we will extend the time periods. If you have authorized someone else to use the ATM/POS Card and/or PIN, you are responsible for all transactions that person or persons initiates at any time, even if the amount or transactions exceed what you may have authorized.

Your Liability For Lost, Stolen Or Unauthorized Transactions Involving Debit Cards

Tell us AT ONCE if you believe your Debit Card and/or Personal Identification Number (PIN) has been lost or stolen or if your statement shows transfers that you did not make. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account (plus your maximum overdraft line of credit if you have one with us). If you tell us within 60 days of our sending your statement, you can lose no more than $50 if someone used your debit card without your permission. If you do not tell us within 60 days after the statement was mailed to you, you may not get back any money you lost after the close of the 60 days and before notice to us. If your delay in notifying us was due to extenuating circumstances beyond your reasonable control, including extended travel, your or a member of your family's death or serious illness, hospitalization, permanent mental impairment or serious physical impairment, unless the circumstance did not reasonably contribute to your delay in notifying us within the 60-day period, we will extend the 60-day period by a reasonable period.

Special Notice To Mastercard Mastermoney® Debit Card Cardholders

If there is an unauthorized use of your Debit MasterCard® Card then your liability will be zero ($0.00) so long as:

1. You exercised reasonable care in safeguarding your card from risk of loss or theft;
2. You have not reported two or more incidents of unauthorized use within the preceding twelve (12) months; and
3. Your account is in good standing.

If you cannot meet these requirements then your liability with respect to unauthorized transactions may be greater than the above zero ($0.00) liability limit, to the extent allowed under applicable law. In any case, to minimize your potential liability you should notify us of any unauthorized use no later than 60 days after your statement was mailed to you. This provision limiting your liability does not apply to either MasterCard commercial cards or ATM cash disbursements.

How To Notify The Credit Union In The Event Of An Unauthorized Transaction

If you believe your ATM/POS Card or PIN has been lost or stolen, or that someone has transferred or may transfer money from your account without your permission, call us at (800) 336-KERN (5376) or (661) 327-9461, for Debit Cards please call us at 800.449.7728. You may write to us at P. O. Box 1667, Bakersfield, California 93302.

Business Days

Our business days are Monday through Friday, excluding holidays.

Our Liability For Failure To Make Transfers

If we do not complete a transaction to or from your share or checking account on time or in the correct amount according to our agreement are some exceptions. We will NOT be liable, for instance, if:

1. through no fault of ours, you do not have enough money in your account to make the transaction;
2. the transaction would go over the credit limit on your credit line;
3. the terminal where you were making the transaction did not have enough cash;
4. the ATM or network system was not working properly and you were aware of the malfunction when you started the transaction;
5. circumstances beyond our control (such as fire, flood, power failure, or computer down-time) prevented the transaction, despite reasonable precautions that we have taken;
6. the money in your account is subject to an uncollected funds hold, legal process or any other encumbrance or agreement restricting a transaction;
7. your ATM/POS Card has expired, is damaged so that the terminal cannot read the encoding strip, is inactive or because your PIN has been entered incorrectly;
8. your ATM/POS Card or PIN has been reported lost or stolen and we have blocked the account; or
9. the failure to complete the transaction is done to protect the integrity of the system or to protect the security of your account.

There may be other exceptions not specifically mentioned above.

In Case Of Errors Or Questions About Your Electronic Transfers

Telephone us at (800) 336-KERN (5376) or (661) 327-9461 or write us P. O. Box 1667, Bakersfield, California 93302 as soon as you can, if you think your statement or receipt is wrong or if you need more information about a transfer listed on the statement or receipt. We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared.

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

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

We will tell you the results of our investigation within 10* business days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45** days to investigate your complaint or question. If we decide to do this, we will credit your account within 10* business days for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account.

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

• If you give notice of an error within 30 days after you make the first deposit to your account, we will have 20 business days instead of 10 business days.
• If you notice an error within 30 days after you make the first deposit to your account, notice of an error involving a point of sale transaction, or notice of an error involving a transaction initiated outside the U.S. its possessions and territories, we will have 90 days instead of 45 to investigate.

Charges

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

Disclosure Of Account Information To Third Parties

We will disclose information to third parties about your account or the transfers you make:

1. when it is necessary to complete the transaction;
2. in order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant;
3. in order to comply with government agency or court orders or other legal process; or
4. if you give us your prior oral or written permission.

Address Change

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

Amendments

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

Termination

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

1. you or any authorized user of your ATM/POS Card, PIN or account breaches this or any other agreement with the Credit Union;
2. we have reason to believe that there has been, or might be, an unauthorized use of your ATM/POS Card, PIN or account; or
3. you or any authorized user of your ATM/POS Card, PIN or account request that we do so.

Collection Costs

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

Additional Benefits/Card Enhancements

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

Waiver Of Rights

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

Other Agreements

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

Severability

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

Who Is Bound By This Agreement

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

Signatures

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

Consumer Reports

The Credit Union makes credit available to its members on a regular basis. The Applicant(s)/Account Holder(s) of the account authorizes the Credit Union to obtain consumer reports in connection with credit and business transactions involving the Applicant(s)/Account Holder(s), including but not limited to applying for membership, the opening of a share or checking account or the issuance of an ATM card, check card, or other service provided by the Credit Union, and the Applicant(s)/ Account Holder(s) of the account authorize any person, association, or corporation to furnish on request of this Credit Union, information concerning the affairs of the Applicant(s)/Account Holder(s). The Applicant(s)/Account Holder(s) also authorizes the Credit Union to furnish information concerning the account to consumer reporting agencies.

Additional Disclosures Applicable to ACH Services

Documentation Of Direct Deposit

If you have arranged to have direct deposits made to your account at least once every 60 days from the same person or company, you can call us at (800) 336-KERN (5376) or (661) 327-9461 to find out whether or not the deposit has been made. If the only possible transfers to or from your account are direct deposits or pre-authorized deposits, you will get at least a quarterly statement from us.

Disclosure Of Right To Stop Payment

1. Right to stop payment and procedure for doing so.

   If you have told us in advance to make regular payments out of your account, you can stop any of these payments. Here's how:

   Call us at (800) 336-KERN (5376) or (661) 327-9461, or write to us at P. O. Box 1667, Bakersfield, California 93302, in time for us to receive your request three business days or more before the payment is scheduled to be made. If you call we may also require you to put your request in writing and get it to us within 14 days after you call.

2. Notice of varying amounts.

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

Transactions Available

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

• Make deposits to your share or checking account;
• Make loan payments;
• Pay bills directly from your checking account in the amounts and on the days you request;
• Authorize a merchant to convert your share draft/check or checking account number to an electronic fund transfer, initiating a debit to your share draft/checking account for the amount of purchase; and
• Authorize a merchant to debit your share draft/checking account for returned check fees or returned debit entry fees.
• All payments and deposits are subject to later verification by us.

Additional Disclosures Applicable to ATM and POS Services

Rules For Use

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

ATM Fees

When you use an ATM not owned by Kern Federal Credit Union, you may be charged a fee by the ATM operator and you may be charged a fee for a balance inquiry even if you do not complete a fund transfer. A fee will not be imposed for use of an ATM or Debit Card issued by Kern Federal Credit Union for use of an electronic terminal operated by Kern Federal Credit Union.

Transactions Available

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

• Make deposits to your share or checking account;
• Withdraw cash from your share or checking and loan account;
• Transfer funds between your share and checking and loan account;
• Make point-of-sale payments for goods and services to others from your checking account;
• Access your Line of Credit Account for loan advances;
• Transfer funds from your Line of Credit to your share checking and share savings accounts;
• Make loan payments; and
• Make account balance inquiries.

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

Limitations On Transactions

You may make ATM cash withdrawals up to $500 each 24-hour period as long as your available balance will cover the transaction. You may make up to 15 daily ATM transactions. Various institutions which participate in networks of which the Credit Union is a member may have withdrawal limits different from the amount set forth herein. In the event that a specific ATM is so limited, you may not be able to withdraw more than the cash limit of that particular ATM.

Access Cards

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

ATM Safety

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

• Be aware of the surroundings, particularly at night.
• Look for well-lighted ATM's when transacting at night.
• If you notice anything suspicious when approaching the ATM, return later or use another ATM.
• Have your transaction ready before you go to the ATM. When you can, fill out any deposit or withdrawal slips/envelopes before leaving your vehicle.
• Have your ATM Card ready, to avoid going through your purse or searching through the contents of your wallet at the ATM site.
• If you notice anything suspicious while you are transacting business, immediately stop your transaction, put your ATM Card away and leave.
• Consider having another person accompany you to the ATM.
• Immediately report all crimes to the ATM operator and to local law enforcement officials.
• Stand close to the ATM and away from others in line to avoid detection of your PIN or other account information.
• Put your cash away as soon as the transaction is complete; count the cash later in the safety of your vehicle or home.
• Never give information to strangers at the ATM or to anyone over the phone. Be aware of fraud or people who pose as Credit Union employees who try to get information from you. This information should only be discussed in person by you at the Credit Union.
• Remember to keep your PIN a secret. Make sure not to write it on your ATM Card or anywhere else in your wallet; thieves can easily figure out the reason for "hidden" or "secret" numbers.

Additional Disclosures Applicable to Audio Response

Transactions Available

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

• Obtain account and loan balances;
• Obtain loan payment due date and payoff information;
• Obtain last dividend, date and amount;
• Obtain clearance of specific checks;
• Request a check withdrawal from your share or checking account;
• Transfer funds between your share and checking accounts;
• Access your Line of Credit Account to request loan advances;
• Transfer funds from your Line of Credit to your checking and share accounts;
• Make loan payments;
• Apply for a loan; and
• Obtain tax information, (dividends paid this year and last year along with tax withholdings.

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

Additional Disclosures Applicable to MasterCard MasterMoney® Debit Card Services

Issuance Of Card

"Card" means the Kern Federal Credit Union MasterCard MasterMoney® Debit Card and any duplicates, renewals or substitutions the Credit Union issues to you; "Account" means the account designated on the application for your MasterCard MasterMoney® Debit Card.

Responsibility For Transactions

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

Merchant Disputes

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

Limitations On Dollar Amounts and Frequency Of Transactions

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

With your ATM Card you may make ATM cash withdrawals up to $500 each 24-hour period as long as your available balance will cover the transaction. You may make up to 15 daily ATM transactions.

The MasterCard MasterMoney® Debit Card purchase transaction limit is $2,500 each 24-hour period, as long as your available balance will cover the transaction. You may make up to 15 daily transactions.

Various institutions which participate in networks of which the Credit Union is a member may have withdrawal limits different from the amount set forth herein. In the event that a specific ATM is so limited, you may not be able to withdraw more than the cash limit of that particular ATM.

Use Of The Card

You may use the Card and PIN to:

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

You may use the Card without the PIN to:

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

Some of these services may not be available at all terminals.

Use of the Card, the account number on the Card, the PIN or any combination of the three for payments, purchases, or to obtain cash from merchants, financial institutions or others who honor MasterCard Debit Card is an order by you for the withdrawal of the amount of the transaction from your account. Each transaction with the Card will be charged to your account on the date the transaction is posted to your account. When the Credit Union receives notification of a Debit Card transaction, it will put a hold on an equivalent amount of funds in your checking account for 3 days or until the day the transaction is charged to your account.

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

Illegal Use Of Mastermoney Debit Card

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

Overdrafts

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

Refusal To Honor Card

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

Foreign Transactions

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

Regulations Relating to Fund Transfers

Applicable Law

This agreement and notice applies to funds transfers as defined in the Article 4A of the Uniform Commercial Code and Subpart B of Regulation J of the Board of Governors of the Federal Reserve System.

Funds Transfer Cut-Off Time

The Credit Union may establish or change cut-off times for the receipt and processing of funds transfer requests, amendments, or cancellations. Unless other times are posted for the various types of funds transfers, the cut-off time will be at 1:00 p.m. on each weekday that the Credit Union is open excluding holidays. Payment orders, cancellations, or amendments received after the applicable cut-off time may be treated as having been received on the next funds transfer business day and processed accordingly.

Service Charges/Fees

The Credit Union may charge your account for the amount of any funds transfer initiated by you or by any person authorized by you as a joint tenant or other authorized party with the right of access to the account from which the funds transfer is to be made. Please refer to our Schedule of Fees for current fees.

Security Procedures

The Credit Union may establish, from time to time, security procedures to verify the authenticity of a payment order. You will be notified of the security procedure, if any, to be used to verify payment orders issued by you or for which your account will be liable. You agree that the authenticity of payment orders may be verified using that security procedure unless you notify the Credit Union in writing that you do not agree to that security procedure. In that event, the Credit Union shall have no obligation to accept any payment order from you or other authorized parties on the account until you and the Credit Union agree, in writing, on an alternate security procedure.

Use Of Fedwires

If you send or receive a wire transfer, Fedwire may be used. Regulation J is the law covering all Fedwire transactions. This means that your rights and liabilities in a wire transfer involving Fedwire will be governed by Regulation J.

Identification Of Beneficiary

If you give the Credit Union a payment order which identifies the beneficiary (recipient of the funds) by both name and identifying or account number, payment may be made by the beneficiary's bank on the basis of the identifying or bank account number, even if the number identifies a person different than the named beneficiary. This means that you will be responsible to the Credit Union if the funds transfer is completed on the basis of the identification number you provided the Credit Union.

Identification Of Beneficiary and Intermediary Bank By Number

If you give the Credit Union a payment order which identifies an intermediary or beneficiary's bank by both name and an identifying number, a receiving bank may rely on the number as the proper identification even if it identifies a different bank than the named bank. This means that you will be responsible for any loss or expenses incurred by a receiving bank which executes or attempts to execute the payment order in reliance on the identifying number you provided

Provisional ACH Payments

The Credit Union may at its discretion give you credit for automated clearinghouse (ACH) payments before it receives final settlement of the funds transfer. Any such credit is provisional until the Credit Union receives final settlement of the payment. You are hereby notified and agree, if the Credit Union does not receive such final settlement, that it is entitled to a refund from you of the amount credited to you in connection with that ACH entry. This means that the Credit Union may provide you with access to ACH funds before the Credit Union actually receives the money. However, if the Credit Union does not receive the money, then the Credit Union may reverse the entry on your account and you would be liable to repay the Credit Union.

Notice Of Receipt Of ACH Funds

ACH transactions are governed by operating rules of the National Automated Clearing House Association. In accordance with these rules, the Credit Union will not provide you with next day notice of receipt of ACH credit transfers to your account. You will continue to receive notices of receipt of ACH items in the periodic account statements which we provide.

Receipt Of Incoming (Non-ACH) Funds Transfers

If the Credit Union receives a funds transfer for you or for other persons authorized to have access to your account, you agree that the Credit Union is not obligated to provide you with next day notice of the receipt of the funds transfer. The Credit Union will provide you with notification of the receipt of all funds transfers by including such items in the periodic account statements which we provide. You may, of course, inquire between receipt of periodic statements whether or not a specific funds transfer has been received.

Payment Of Dividends (Or Interest)

If the Credit Union becomes obligated under Article 4A to pay interest (or dividends) to you, you agree that the rate of interest (or dividends) to be paid shall be equal to the dividend rate, on a daily basis, applicable to the account at the Credit Union to which the funds transfer should have been made or from which the funds transfer was made.

Your Ability To Withdraw Funds

Our policy is to make funds from your deposits available to you on the first business day after the day we receive your deposit. Electronic direct deposits will be available on the day we receive the deposit. Once they are available, you can withdraw the funds in cash and we will use the funds to pay checks that you have written.

For determining the availability of your deposits, every day is a business day, except Saturdays, Sundays, Credit Union holidays and federal holidays. If you make a deposit before the close of business or 3:00 p.m. at a drop box on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit after the close of business or after 3:00 p.m. at a drop box, we will consider that the deposit was made on the next business day we are open.

Longer Delays May Apply

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

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

If you will need the funds from a deposit right away, you should ask us when the funds will be available.

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

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

We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available no later than the 10th business day after the day of your deposit.

Special Rules For New Accounts

If you are a new member, the following special rules will apply during the first 30 days your account is open. Funds from electronic direct deposits to your account will be available on the day we receive the deposit. Funds from deposits of cash, wire transfers, and the first $5,000 of a day's total deposits of cashier's, certified, teller's, traveler's, and federal, state and local government checks will be available on the first business day after the day of your deposit if the deposit meets certain conditions. For example, the checks must be payable to you (and you may have to use a special deposit slip). The excess over $5,000 will be available on the ninth business day after the day of your deposit. If your deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, the first $5,000 will not be available until the second business day after the day of your deposit.

Funds from all other check deposits will be available on the 10th business day after the day of your deposit.

Holds On Other Funds

If we cash a check for you that is drawn on another financial institution, we may withhold the availability of a corresponding amount of funds that are already in your account. Those funds will be available at the time funds from the check we cashed would have been available if you had deposited it.

Unclaimed Property Law - California

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

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

General Terms and Conditions Of Your Credit Union Accounts

Definitions

ACCOUNT AGREEMENT means any share, checking, share certificate, trust, totten trust or UTMA account.

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

Membership & Account Application

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

Account Ownership

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

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

Special Rules For Joint Accounts

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

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

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

Notice

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

Ability To Pledge Funds

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

Enforcement Of Liens

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

Notification Of Changes

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

Waiver Of Certain Rights

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

Consumer Reports

The Credit Union makes credit available to its members on a regular basis. The Applicant(s)/Account Holder(s) of the account authorizes the Credit Union to obtain consumer reports in connection with credit and business transactions involving the Applicant(s)/Account Holder(s), including but not limited to applying for membership, the opening of a share or checking account or the issuance of an ATM card, check card, or other service provided by the Credit Union, and the Applicant(s)/Account Holder(s) of the account authorize any person, association, or corporation to furnish on request of this Credit Union, information concerning the affairs of the Applicant(s)/Account Holder(s). The Applicant(s)/Account Holder(s) also authorizes the Credit Union to furnish information concerning the account to consumer reporting agencies.

Negative Credit Reporting

We may report information about your account to credit bureaus. Late payments, missed payments, or other defaults on your account may be reflected in your credit report.

Reporting Inaccurate Information

If you believe the Credit Union is reporting inaccurate information to a credit reporting agency, please notify us at Kern Federal Credit Union, P.O. Box 1667, Bakersfield, CA 93302, so we can investigate.

Post-Dated Share Drafts and Checks

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

Examination Of Statements

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

Non-Cash Payments

Non-cash payments deposited into an account may be credited subject to final payment.

Fees and Charges

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

Credit Union's Right To Offset

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

Other Terms and Conditions

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

Governing Law

This TIS Agreement shall be construed in accordance with the laws of the State of California, including the California Uniform Commercial Code (UCC)

Share Account Agreement

Transfers To Third Parties

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

Withdrawals, Prior Notice Requirement

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

Checking Account Agreement

Withdrawals, Approved Methods

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

Electronic Check Conversion

Upon prior notification from the merchant to the Account Holder, a purchase made with a share draft or check can be converted to a one-time electronic fund transfer (EFT) if authorized by the Account Holder. The Account Holder may also authorize merchants to electronically debit the account for returned check fees. It is agreed that the Account Holder authorizes the electronic funds transfers if the transaction is completed after being told (orally or by a notice posted) that the transfer may be processed electronically or if the Account Holder signs a written authorization.

Demand Drafts

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

Overdrafts

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

Overdraft Privilege Pay Program

The Credit Union recognizes that sometimes you may overdraft you share draft account. In such cases the Credit Union may decide to honor drafts for which there are insufficient funds. This is the Credit Union's Overdraft Privilege Pay Program. The Credit Union provides the Overdraft Privilege Pay Program as an accommodation to you and is not obligated to do so, even when it has done so in the past. You do not apply for this service.

The Credit Union may honor overdrafts, including share drafts, automated debits (ACH,) ATM withdrawals and Debit Card transactions so long as you are a member in good standing and have an active shares draft account that has been open for a minimum of two (2) months. When an overdraft is covered, the account will be taken negative by the dollar amount of the overdraft plus the amount of the Overdraft Privilege Pay Program fee. If we honor multiple overdrafts we may honor them in any order at the Credit Union's option or return any such items. The following Overdraft Privilege Pay limits are:

• $500, if a minimum deposit of $500 has been made into the account within the past 35 days.
• $1000, if the member has made a minimum of two (2) deposits totaling of at least $3000 into the account within the past 65 days OR if the member has a monthly paycheck or other monthly recurring payments directly deposited into the account of at least $1500

When the Credit Union honors overdraft items, you must deposit funds immediately, but in no case more than thirty-one (31) days from the date of the notice sent to you. If you fail to cover the total overdraft amount within thirty-one (31) days, the Credit Union may pursue all collection options available to it. The Credit Union may, but is not obligated to, transfer funds from your other accounts with us to cover the overdraft.

The Overdraft Privilege Pay Program service is a discretionary privilege offered members and not a right of membership. The Credit Union encourages you to properly maintain your accounts with us. You agree that the Credit Union will not be held liable for either paying or refusing to pay an overdraft item. The Credit Union reserves the right to discontinue this service at any time without any notice.

If you do not want the Overdraft Privilege Pay Program, you must inform the Credit Union by using of the following methods:

• In person
• By telephone
• Or by sending written notice to: Kern Federal Credit Union at PO Box 1667, Bakersfield, CA 93302

Stale-Dated Checks

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

Stop Payments

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

Truncation Of Drafts

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

Liability Of Credit Union

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

Closure Of Account

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

For Checking Accounts With Share Overdraft Protection

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

For Checking Accounts With Loan Overdraft Protection

If any Account Holder(s) writes a check which would result in this Checking Account being overdrawn, and if at that time any Account Holder(s) is eligible to receive loan advances from this Credit Union on a loan designated on the Overdraft Agreement, the Credit Union is authorized to make an advance from the designated loan account, and to credit the advance to this Checking Account in such multiples as determined by the Credit Union sufficient to permit the Credit Union to honor such check and any associated fees.

Share Certificate Account Agreement

Pledging Of Funds

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