Except as specifically described, the following disclosures apply to all of the term accounts.
1. Rate Information: The Dividend Rates and Annual Percentage Yields on your accounts are set forth. The Annual Percentage Yield is a percentage rate that reflects the total amount of dividends to be paid on an account based on the Dividend Rate and frequency of compounding for an annual period. For Time Certificates, the Dividend Rate and Annual Percentage Yield are fixed and will be in effect for the term of the Account. The Annual Percentage Yield is based on an assumption that dividends will remain on deposit until maturity. A withdrawal of dividends will reduce earnings.
2. Compounding and Crediting: Dividends will be compounded and credited quarterly. The Dividend Period begins on the first calendar day of the quarter and ends on the last calendar day of the quarter.
3. Balance Information: The minimum balances required to open each account are set forth with each type of account. Dividends are calculated by the daily balance method which applies a daily periodic rate to the principal in the account each day.
4. Accrual of Dividends: Dividends begin to accrue on cash deposits on the business day you make the deposit to your account. Dividends will begin to accrue on noncash items (e.g. checks) on the business day you make a deposit to your account.
5. Transaction Limitations: After your account is opened, you may make withdrawals of dividends. Withdrawal of any portion of the principle requires the account to be closed and may be subject to penalty or forfeiture. Additional deposits are not allowed unless indicated above.
6. Maturity: Your account will mature on the maturity date stated on your Certificate Account Receipt or Renewal Notice.
7. Early Withdrawal Penalty - Regular Certificate: We may impose a penalty if you withdrawal any portion of the principal before the maturity date.
a. Amount of Penalty: The amount of the early withdrawal penalty is determined as follows: For accounts with terms less than 12 months, early withdrawals are subject to a penalty of 90 days' dividends. For accounts with terms of 12-23 months, early withdrawals are subject to a penalty of 150 days' dividends. For accounts with terms of 24-35 months, early withdrawals are subject to a penalty of 180 days' dividends. For accounts with terms of 36-59 months, early withdrawals are subject to a penalty of 240 days' dividends. For accounts with terms of 60 months or greater, early withdrawals are subject to a penalty of 365 days' dividends.
b. How the Penalty Works: The penalty is calculated as a forfeiture of part of the dividends that have been earned. In other words, if the account has not yet earned enough dividends or if the dividend has already been paid, the penalty will be deducted from the principal.
c. Exceptions to Early Withdrawal Penalties: At our option, we may pay the account before maturity without imposing an early withdrawal penalty under the following circumstances: (i) When an account owner dies or is determined incompetent by a court or other body of competent jurisdiction.
8. Renewal Policy.
a. Regular Certificate: Your account will automatically renew for another term upon maturity. You have a grace period of ten (10) days after maturity to withdraw funds in the account without being charged an early withdrawal penalty. The Credit Union reserves the right not to renew this account and will provide written notice of non-renewal thirty days prior to the scheduled renewal date.
9. Nontransferable/Non-Negotiable: Your account is nontransferable and non-negotiable. The funds in your account may not be pledged to secure any obligation of an owner, except obligations of the Credit Union.