Disclosures

INTRODUCTION

This document contains disclosures, rules, and regulations which govern your account(s) with University First Federal Credit Union doing business as University Federal Credit Union. If you have questions about any rules governing your account, please call us at 801-481-8800.


In this document, the words "we", "us", "our" and "Credit Union" mean University Federal Credit Union. The word "you" and "your" mean the account holder. The word "account(s)" refers to all transaction accounts offered by the Credit Union.


DEPOSITS AND WITHDRAWALS

DEPOSITS

  • Provisional credit is given to all deposited items, other than cash, subject to actual payment being received by the Credit Union.
  • The Credit Union may forward items for collection to correspondent banks. The Credit Union will not be liable for actions of a correspondent bank or for items lost in transit.

WITHDRAWALS

  • Any person(s) who signs in the space designated for signature(s) on the Membership Application may withdraw or transfer all or any part of the account balance at any time, subject to the provisions of Utah Code Annotated 7-9-32.
  • We reserve the right to refuse any withdrawal or transfer request which is attempted by any method not specifically permitted, which exceeds any frequency limitation or violates any minimum or maximum dollar limitation. We will use the date a transaction is completed by us (as opposed to the date you initiate it) to apply any frequency limitations.

MEMBERSHIP REQUIREMENTS

To be a member of this Credit Union, you must subscribe to at least one share. One share equals $10.00. Therefore, you must maintain a minimum balance of $10.00 in your Primary Savings account to retain your membership.

LIENS

We have a lien and right of set off on any funds in your account or an account jointly held by you, including funds now or hereafter deposited with us:


  • This lien does not apply to funds deposited to an Individual Retirement Account. This lien secures any amount you may now or hereafter owe us. We may enforce this lien by applying your funds directly to any amount you owe us. We may exercise this right without obtaining a court judgment, as permitted by law.

DIVIDENDS

  • Dividends are paid from current income and available earnings after required transfers to reserves at the end of a dividend period. Dividends are calculated using the daily balance method, which applies a daily periodic rate to the principal in the account each day.
  • The Annual Percentage Yield is based upon monthly posting of dividends. The Annual Percentage Yield is a percentage which reflects the total amount of dividends that would be paid to your account assuming all funds initially deposited remained on deposit for a full year. The computation is based on the dividend rate and the frequency of compounding for a 365 day period (366 days in Leap Year). The result is expressed in the Annual Percentage Yield.
  • Cash deposits to all deposit accounts begin earning dividends when they are posted. Deposits in the form of checks or other means begin earning dividends no later than when the amount is collected by the Credit Union. Dividends are not earned for any time before a deposit has been posted to your account. To verify current dividend rates, visit any of Credit Union branch location, go online at ucreditu.com or call us at (801) 481-8800.

CHECKING ACCOUNTS

OVERDRAFTS

  • If at any time, the available funds in your account are not sufficient to cover checks, ACH, debit cards and other electronic transactions presented for payment on your account, those checks and other items will be handled in accordance with our overdraft procedures. Your account will then be subject to a charge for the item whether paid or returned as set for in our Fees & Charges schedule. This fee is imposed for any overdraft created by checks, ACH, debit cards, or by other electronic means. Additionally, more than one overdraft fee may be charged against the account per day, depending on the number of checks presented on, and other withdrawals made from the account.
  • We will honor drafts drawn on insufficient funds by transferring funds from a share account or another deposit account or a loan account, as you have directed. No more than 6 transfers may be permitted in any calendar month from deposit shares. Once the transfer total for the month has reached 6, any insufficient funds items will be handled in accordance with our regular overdraft procedures. The fee for these overdraft transfers and excessive transfers, if any, is set forth in our fee schedules.
  • If you qualify for our Courtesy Pay program, the University Credit Union may choose to pay a transaction even when you have insufficient funds in your checking account. This is not a line of credit, and payment of your transaction(s) is not guaranteed. The University Credit Union allows members up to $500 in Courtesy Pay transactions at any time. This includes any fees charged. Each Courtesy Pay transaction incurs a fee. If you never use the program, you never pay a fee. If you access the Courtesy Pay program, you have thirty days to return your account to a positive balance. If the negative balance is not resolved in a timely manner, your account will be charged off, and we will be required to report all signers to Chex Systems. In addition, further collection may result.
  • If you choose to cancel this benefit, please contact our Member Service Center at 801-481-8800 or visit any of our convenient branch locations.

RIGHT TO PAY OR RETURN

  • If paper check, debit card, ACH or other electronic type transaction is presented without sufficient funds in your account to pay it, we may, at our discretion, pay the item (creating an overdraft) or return the item (NSF). While we reserve the right to pay or not pay any item presented without sufficient funds, you may request that we not pay such items. In that case, we will return any item presented without sufficient funds (NSF). If you prefer that we not pay such items you must contact us at the address or phone number listed on the Fees & Charges schedule and informing us that you do not want us to pay any items presented without sufficient funds. If you do not notify us, we retain the right, in our discretion, to pay or not pay any item presented without sufficient funds. The amount of the overdraft and NSF fees are disclosed in the Fees & Charges schedule. We encourage you to make careful records and practice good account management. This will help you to avoid writing checks or drafts without sufficient funds and incurring the resulting fees. If you have not opted in for Overdraft Protection for one time debit card or ATM transactions, these transactions will not be paid. Exceptions to non-payment may apply based on other applicable requirements.
  • We may pay a check on the day it is presented for payment, notwithstanding the date appearing on the check, unless you have given us notice of the postdating in the same manner as a stop-payment order. You must precisely identify the check with the account number and exact amount and instruct us not to pay the check before the date on the check. The notice must be received in time to give us reasonable opportunity to act on it.
  • Paid checks will not be returned to you. We will make photocopies of specific paid checks available to you upon request. (See Fees and Charges schedule.) Photocopies may be obtained within the seven year period following the date a check is paid.
  • A stop-payment order must be received in time to allow reasonable opportunity to act on it and before our stop-payment cutoff time. You must precisely identify the account number, check number, and amount of the check. We will honor a stop-payment order by any authorized signer, not just the person who signed the check. A release of the stop-payment must be signed by the same person authorizing the stop-payment. We must have an authorized signature on the stop-payment order within 24 hours of the request or the stop payment will be reversed.
  • If we dishonor a check by mistake, our liability is limited to actual damages proved. The Credit Union is not responsible for any payment which occurs because of inaccurate information or the inability of the Credit Union's data processing system to identify the item(s).
  • If the sum of all items presented for payment on your account exceeds the funds available for withdrawal, you agree that we may pay or refuse to pay the items in any order we choose.
  • We may close your account at any time by mailing you a notice with a remittance for the balance therein. We are not liable for any checks presented for payment after the account has been so closed.

MEMBER ORGANIZATION FOR BUSINESS ACCOUNTS

  • Accounts held in your name, organization, or association for business purposes are subject to the same terms set forth in this Agreement and the following additional rules.
  • You agree to inform us of the persons authorized to transact business on behalf of the business or organization in a form acceptable to us. The authorized parties may contract and otherwise act on behalf of the entity in connection with the account. We may rely on any information about the business or organization
  • and/or the Membership Application until such time
  • that we are informed of the changes in writing. We require checks payable to a business or organization not to be cashed but be deposited to the account of the payee. Any account used for business or organizational purposes shall be a "business account" and may be subject to business account fees or other requirements.
  • No P.O.D. beneficiary designation or other designation shall apply to the accounts of organizations or business. Sole Proprietors may designate a beneficiary.

REG GG

In accordance with the requirements of the Unlawful Internet Gambling Enforcement Act of 2006 and regulation GG, this notification is to inform you that restricted transactions are prohibited from being processed through your account or relationship with the Credit Union. Restricted transactions are transactions in which a person accepts credit, funds, instruments or other proceeds from another person in connection with unlawful Internet Gambling.

FUNDS TRANSFERS AGREEMENT

This agreement applies to Fed wire transfers you make through the Credit Union. These transfers are governed by several laws including Article 4A of the Uniform Commercial Code, Subpart B of the Federal Reserve Regulation J and applicable National Automated Clearing House Association ("NACHA") rules. This Agreement does not apply to any transactions subject to the Electronic Funds Transfer Act and Regulation E. In the event of any conflicting terms with this agreement and other applicable laws or regulations, this agreement shall govern.

SERVICES AVAILABLE

You may request a transfer of funds to or from your account, or to and from another institution. The Credit Union security procedures apply to your transfers. We may debit any of the accounts you designate as a source of payment for funds transfers and any related fees and service charges. We have no obligation to accept or execute any payment order if (1) the account(s) from which it is to be made does not contain sufficient available collected funds; (2) the payment order is not authorized or does not comply with applicable security procedures; or (3) acting in good faith we have reasonable cause for rejecting the payment order.

PERSON(S) AUTHORIZED TO MAKE TRANSFERS

You, any authorized signer of an account, or any person authorized by a written instrument by you or any authorized signer, that is acceptable to us, may initiate, request, cancel, amend or verify transfers on your account(s). We may rely on the authority of any person(s) designated by you or any authorized signer until we receive written notice revoking or modifying that authority.

SECURITY PROCEDURE(S)

The Credit Union security procedures to verify the authenticity of a payment order apply. You agree that the authenticity of payment orders may be verified using that security procedure unless you notify us in writing that you do not agree to that security procedure. You authorize us to record any telephone communications regarding any transfer order, which we may maintain for any period of time we deem appropriate.

TIME LIMITATIONS FOR ACCEPTANCE OF ORDERS

Cut-off times for the receipt and processing of outgoing fund transfer orders, amendments or cancellations are 2:00 PM local time. Under special circumstances other cut-off times may apply. Transfer orders, cancellations or amendments received after the cut-off time may be treated as received on the next following fund transfer business day, and processed accordingly. Your request for transfer(s), amendments(s) and cancellation(s) is considered accepted when executed by us.


CANCELLATION OR AMENDMENT OF TRANSFER REQUEST(S)

You may not be able to cancel or amend a request after it is received by us. However, we may, in our sole discretion, use reasonable efforts to act on your request for cancellation or amendment. Any request for cancellation or amendment is subject to applicable security procedure(s). We shall have no liability if such cancellation or amendment is not affected. Furthermore, you agree to indemnify and hold us harmless from any and all liabilities, costs and expenses we may incur in attempting to cancel or amend any transfer.

MEMBER INSTRUCTIONS IDENTIFYING BENEFICIARY OR FINANCIAL INSTITUTION

Transfers are made based upon the account number you provide when requesting a transfer. You are responsible for all transfers made based upon the information you provide even if that information is incorrect. Wire transfers received by us for your benefit may be paid by us solely on the basis of account number.

ACCOUNT STATEMENTS AND NOTICES

  • All transfers subject to this Agreement will be reflected on your periodic account statement(s). Notification of receipt of all such transfers will be provided by including such item in the periodic account statement(s) we provide to you. You may inquire whether a specific transfer has been received at any time during our normal business hours.
  • You agree to review each statement or other notice for any discrepancies in connection with transfers. If you think a transfer is not authorized, wrong, or if you need more information about a transfer, you must contact us in writing upon discovery of the error or within 30 days after you receive the first notice or statement that reflects the discrepancy you allege, whichever is earlier. Failure to do so will relieve us of any obligation to pay interest or otherwise compensate you for the amount of any unauthorized or erroneous transfer.

METHODS USED TO MAKE THE MAKE TRANSFERS

The Credit Union will select the means for transfer of funds. We are not responsible for performance failure as a result of an interruption in transfer facilities, labor disputes, power failures, equipment malfunctions, suspension of payment by another party, refusal or delay by another financial institution to accept the transfer, war, emergency conditions, fire, earthquake or other circumstances not within our control.


LIMITATIONS OF CREDIT UNION'S LIABILITY

In addition to any applicable defense or exception from liability, the Credit Union shall not be liable for any special, indirect, exemplary, consequential, or punitive damages (including lost profits). Further, we shall in no case be responsible for the payment of any attorneys' fees or other legal expenses whatsoever. If we become obligated to pay dividends to you under applicable law, you agree that the dividend rate shall be equal to the dividend rate applicable to the account on which the transfer was made.

NOTICE OF RECEIPT OF ACH ITEMS

The Credit Union does not give you next day notice of receipt of an ACH item. We will continue to notify you of receipt of payments in the periodic statements.

PROVISIONAL PAYMENT

The Credit Union may give you a credit for ACH payments or wire transfers before we receive final settlement of the funds transfer. We reserve the right to reject any such payment or transfer without liability to you. Any such credit is provisional until we receive final settlement. If we do not receive such settlement, we are entitled to a refund from you in the amount provisionally credited.

CHOICE OF LAW

Utah law shall apply to funds transfers to or from the Credit Union.

ELECTRONIC FUNDS TRANSFER AGREEMENT

University Federal Credit Union provides several accounts and services which involve electronic funds transfers. These accounts or services include direct deposit, telephone transfers, account transfers, automated clearing house (ACH) deposits or withdrawals, automatic payments to third parties, withdrawals, deposits, transfers, and payments performed at an Automated Teller Machine (ATM). The following terms and conditions apply to these accounts.


  • Direct deposit, ACH deposits and withdrawals and automatic payments are voluntary arrangements you may establish. Automatic transfers may be stopped, provided you advise the Credit Union at least three (3) business days before the scheduled transfer date. You may stop payments by calling us at (801) 481-8800. Any telephone stop-payment must be confirmed in writing at the Credit Union within one day from the date of your call. The Credit Union's customary stop-payment charges apply to the stop-payments on automatic transfers. (See Fees & Charges schedule.)
  • The Credit Union is not responsible for losses or damages resulting from non-arrival of deposits.
  • Information regarding your accounts will be given to third parties only: (a) in order to comply with the order of a government agency or court; (b) if you give the Credit Union written permission; or (c) where necessary to complete an automatic transfer.
  • The Credit Union can amend this agreement as necessary. Electronic fund transfers are subject to the rules and terms in effect at the time the transfers are made. Any of the accounts or services may be discontinued by the Credit Union in the future.
  • Service charges for transactions or services may apply. These charges are disclosed in the Credit Union's Fees & Charges schedule. These charges are subject to change.
  • All deposits are subject to the Credit Union's deposit hold policies and procedures. All transactions are binding upon the Credit Union after its verification. Transactions made after normal business hours each day may be posted on the next business day. The Credit Union may set limits on the amount and number of types of available transactions. You are responsible for assuring that sufficient collected and verified funds are available to meet all transfer or withdrawal requests.The maximum liability of the Credit Union shall be the actual damages caused by the Credit Union's breach of this agreement. The Credit Union is not responsible for incidental, consequential or punitive damages.
  • The Credit Union's business hours are Monday through Friday from 9:00 a.m. to 6:00 p.m. (Saturdays, 9:00 a.m. to 2:00 p.m.), excluding legal holidays. (Some branch hours vary; call 481-8800 for details.) All accounts or services may not be available at all Credit Union locations.
  • The Credit Union is not responsible for any losses or damages resulting from circumstances beyond the Credit Union's control.
  • All statements will be considered final and accepted by you unless you notify the Credit Union within sixty (60) days of the date of the statement.

ERROR RESOLUTION NOTICE

In case of errors or questions about your electronic transfers, telephone us at (801) 481-8800 or write us at P.O. Box 58025, Salt Lake City, UT 84158, 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 sixty (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 verbally, we may require you to send us your complaint or question in writing within ten business days (or 20 business days for foreign-initiated transactions and all transfers resulting from point-of-sale debit card transactions) after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days (or 90 days for foreign-initiated transactions and all transfers resulting from point-of-sale debit card transactions) to investigate your complaint or questions. If we decide to do this, we will re-credit your account within 10 business days (or 20 business days for foreign-initiated transactions and all transfers resulting from point-of-sale debit card transactions) 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 (or 20 business days for foreign-initiated transactions and all transfers resulting from point-of-sale debit card transactions), we may not re-credit your account. If we decide that there is 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.

ELECTRONIC CHECK CONVERSION

You may issue checks that are converted by the merchant or payee to be an electronic debit from your checking account. These transactions are subject to the terms of this electronic funds transfer agreement. The Credit Union is unable to provide you with copies of checks that are electronically converted.




FUNDS AVAILABILITY DISCLOSURE

The Funds Availability Act was created by Congress to ensure that depositors of all financial institutions across the country will have timely access to their deposits. The Act has established guidelines which will regulate the maximum time that deposits to accounts can be held.


WHAT IT MEANS TO YOU


Our policy has always been to make funds immediately available to members, and only on occasion do we have to hold certain funds for deposit.


FUNDS AVAILABILITY POLICY


The University Federal Credit Union maintains a general policy that the funds you deposit at the Credit Union are immediately available for withdrawal. For determining the availability of your deposits, every day is a business day except Saturdays, Sundays and legal holidays. If you make a deposit after 5:00 p.m. (6:00 p.m. at a drive-up facility) or on a day we are not open, we will consider that the deposit was made on the next business day we are open. A maximum daily withdrawal limit applies to ATM withdrawals. This ATM withdrawal limit is conditioned on availability of funds you deposit.

LONGER DELAYS MAY APPLY


On a case-by-case basis and for several reasons, the Credit Union may receive a deposit for collection only or otherwise delay availability of deposits. If availability of your deposit is to be delayed, and you make your deposit directly to a Credit Union employee, you will be given a notice at the time of the deposit. This notice will tell you that a delay is being imposed and will tell you when the funds will be available. If your deposit is made at an unstaffed facility, such as an ATM or night depository, or if the Credit Union decides to delay availability after you have left the Credit Union, we will mail you notification of the delay by the close of business on the next business day after the date of deposit. If your deposit is made directly to a Credit Union employee without a decision being made about availability, you will be notified that a delay has been imposed and given the date your funds will be available.


If you have any questions regarding the availability of a specific deposit, you should check with the Credit Union as soon as possible after the deposit has been made.

TRUTH-IN-SAVINGS DISCLOSURE

The Truth-in-Savings Act (TISA) was adopted by the National Credit Union Administration on September 9, 1993, and went into effect January 1, 1995. The purpose of Truth in Savings is to assist consumers in making informed decisions regarding their deposit accounts.


GENERAL TERMS

All Savings and Checking accounts (except Certificate accounts) are subject to the following terms and conditions:

  • Rate information--The dividend rate and Annual Percentage Yield (APY) on your account may change.
  • The dividend rate and APY may change every month as determined by the Credit Union Board of Directors.
  • Compounding and crediting frequency--Dividends are compounded and credited monthly. If the account is closed before dividends are credited, you will not receive accrued dividends.
  • Balance computation method--Dividends are calculated using the daily balance method, which applies a daily periodic rate to the principal in the account each day.
  • Accrual of dividends--Dividends will begin to accrue on the effective date of deposit to your account.
  • Nature of dividends--Dividends are paid from current income and available earnings, after required transfers to reserves at the end of a dividend period are made.
  • Transaction limitations--During any statement period, a savings account is only permitted to have up to six (6)pre-authorized or automatic withdrawals, telephone transfers, or transfers initiated electronically to another account at the same credit union or to a third party during a calendar month or statement cycle. Not counted against this six (6) monthly transfer limit are those transfers that the member makes in person, at an ATM, by mail, by messenger or by a telephone call that results in a check being mailed to the member.

TERMS FOR SAVINGS ACCOUNTS

Savings accounts are subject to the following terms and conditions in addition to the general terms:

  • Minimum balance to open the account--The minimum balance required to open a Primary Savings account is $10.00; Money Market Account is $1,000, and High Yield Money Market Account is $25,000.
  • Secondary Savings Accounts are available with no minimum balance.
  • Fees--See Fees & Charges schedule.
  • No ATM transactions are allowed on Secondary Savings • and Money Market Accounts.
  • Minimum balance to obtain the Annual Percentage
  • Yield disclosed--You must maintain a minimum balance of $10.00 in the Primary Savings account each day to obtain the disclosed Annual Percentage Yield.

TERMS FOR CHECKING ACCOUNTS

Checking Accounts are subject to the following terms and conditions in addition to the general terms:

  • Minimum balance requirements--The minimum balance to open the account is zero. Crimson Checking is subject to a $7 monthly maintenance fee if the balance drops below $1,000 during the month or the combined share balances drop below $25,000. Smart Checking is subject to a monthly maintenance fee of $5 if four out of ten criteria are not met during the month.
  • Fees--See Fees & Charges schedule.
  • Transaction limitations--No transaction limitations apply to this account except on eChecking, which is limited to 5 checks processed a month before a fee is assessed.
  • Dividends are not paid on eChecking and Smart Checking; however dividends are paid on the entire balance of Crimson Checking accounts.

TERMS FOR CHRISTMAS CLUB ACCOUNTS

Christmas Club Accounts are subject to the following terms and conditions in addition to the general terms:

  • Minimum balance to open the account--The minimum balance required to open this account is zero.
  • Fees--See Fees & Charges schedule.
  • Transaction limitations--During any month, you may not make any withdrawals or transfers from your Christmas Club Account without your account being subject to closure by the Credit Union. The entire • Christmas Club account balance, including dividends for the month of November, will be transferred to your specified Credit Union account or a check will be mailed to you the day following Thanksgiving.

TERMS FOR IRA ACCUMULATOR ACCOUNTS

IRA Accumulator savings accounts are subject to the following terms and conditions in addition to the general terms:

  • Minimum balance to open the account--The minimum • balance required to open this account is zero.
  • Fees--See Fees & Charges schedule.

TERMS FOR SAVINGS SECURED LOAN ACCOUNTS

Savings Secured Loan Accounts are subject to the following terms and conditions in addition to the general terms:

  • Minimum balance to open the account--The minimum balance required to open this account is determined by the amount of funds pledged to secure your loan. The balance in this account must equal or exceed the amount owed on your savings secured loan.
  • Fees--See Fees & Charges schedule.
  • Transaction limitations--No withdrawals are permitted on this account except when balances exceed the amount of the secured loan, including accrued interest and, if any, late fees. Deposits cannot be made into this account after the initial amount is pledged against the loan.

TERMS FOR CERTIFICATE ACCOUNTS

Certificate Accounts are subject to the following terms and conditions:

  • Rate information--The dividend rate for your account and the Annual Percentage Yield (APY) are stated on the face of the certificate. Also stated on the face of the certificate is the maturity date and the minimum balance requirement to obtain the disclosed APY. The disclosed APY assumes dividends paid will remain on deposit with the certificate until maturity. A withdrawal of dividends prior to maturity will reduce earnings.
  • Balance computation method--We use the daily balance method to calculate the dividends on your account. Dividends may be paid monthly to the certificate, transferred to another account or withdrawn.
  • Renewal--The Credit Union will mail a notice of maturity to the primary owner's address on record at east 13 days prior to maturity. This notice will request that contact be made with the Credit Union prior to maturity if any change is to be made to the certificate.
  • Certificates shall automatically renew at the rate and term offered on the maturity date unless it is withdrawn within a seven (7) day grace period after the maturity date.
  • Early withdrawal penalties--If there are withdrawals from a certificate prior to the maturity date, the account holder shall forfeit ninety (90) days dividend on certificate maturities of up to 12 months and one hundred and eighty (180) days dividend on certificate maturities of more than 12 months (or such lesser amount as may hereafter be required by applicable laws or regulations) on the amount withdrawn at the rate being paid in the account, regardless of the length of time the funds withdrawn have remained in the account. This may reduce the amount of the principal deposit.
  • Exceptions to the penalty--Early withdrawal penalties do not apply to early withdrawals because of death, incompetence, or disability of the holder, unless the certificate has been renewed after the occurrence of such an event.
  • Compounding and credit--Dividends will be compounded and credited monthly.
  • All member accounts at the University Federal Credit Union are federally insured by the National Credit Union Share Insurance Fund.

*Additional terms, conditions, and disclosures provided on request.

UFCU PRIVACY NOTICE