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Statements of Terms, Conditions, and Disclosures - Page 1

General

Your agreement with the Credit Union - This brochure contains terms, conditions, and disclosures relating to your membership, accounts maintained and services received at Desert Schools Federal Credit Union (the Credit Union). All references to "you" and "your" mean both the Credit Union member and any and all parties signing a Membership Savings Account Application. By applying for membership, signing your Membership Savings Account Application or maintaining accounts at the Credit Union, you agree to these terms, conditions and disclosures. The Credit Union may, at any time, change these terms, conditions and disclosures and will provide you with any notice required by law. By continuing to maintain your accounts at the Credit Union, you agree to any such changes. If any provision of this Disclosure book is declared to be invalid, unenforceable or illegal, that part will not affect the validity of the other provisions.

You should retain a copy of this Disclosure book and any information that the Credit Union provides you regarding changes to this Disclosure book for as long as your account is open. You should ask the Credit Union any questions you have about this Disclosure book.

Membership

To join the Credit Union, you must qualify under our approved Field of Membership and meet the membership requirements as established in the Credit Union’s bylaws. You authorize the Credit Union now and in the future to check your account, credit and employment history, including obtaining a report from a consumer reporting agency, to verify your eligibility for membership, accounts and services. The Credit Union reserves the right to decline an application for membership based on information received from a third party, such as a credit reporting agency, if such information reveals that providing services to an applicant would pose an unreasonable financial risk of loss to the Credit Union or its members.

A Membership Savings Account with the Credit Union must be maintained in order to continue membership and to be eligible for any other Credit Union services. Membership may be terminated by the Credit Union in accordance with its Bylaws and Membership Policy, including, but not limited to, expulsion due to nonparticipation in the Credit Union. Nonparticipation includes, but is not limited to, failure to vote in annual credit union elections, failure to purchase shares from, obtain a loan from, or lend to the Credit Union. Notification will be provided as required by law. A Limited Membership fee may be assessed to any Membership Savings Account in accordance with the Credit Union's published Fee Schedule.

Identification Verification

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 you: 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 documents.

Deposit Insurance

Deposit insurance through the National Credit Union Administration (NCUA), an agency of the Federal government, is provided up to the maximum of $250,000 aggregate on all accounts in any one member's name. Additional insurance up to a $250,000 maximum is provided for certain joint, payable on death and fiduciary accounts. Insurance up to a $250,000 maximum is provided for all IRA accounts in any one member’s name.

Payment of Dividends

Except for Savings Certificates, dividends are based on the Credit Union's earnings at the end of a dividend period after regulatory transfers to the reserves are made and thus cannot be guaranteed. A lower effective yield may result depending upon account activity or the amount of funds upon which dividends will be paid.

Dividends are earned on a daily basis from date of deposit up to date of withdrawal, except Savings Certificates which are subject to forfeiture for early withdrawal, and except for conditions such as collection items and drafts over $5000. Collection items begin to accrue dividends when the Credit Union receives provisional credit and the funds are deposited to the account.

Dividends become taxable income to the primary owner upon payment to the savings, checking and certificate accounts.

Business Days

Although many of our branches are open on Saturdays, for the purposes of this Agreement, our business days are Monday through Friday, excluding Federal holidays, and Credit Union declared holidays as published in our newsletter.

Account Statements

Member statements will be produced and mailed on a monthly cycle basis. For consumer accounts opened prior to May 22, 2009, the scheduled cycle date will be determined by the last digit of the Membership Savings Account number. For consumer accounts opened after that date, the scheduled cycle date will be determined by the opening date of the Membership Savings Account. Scheduled cycle dates for consumer account statements will be the 5th, 10th, 15th, 20th, and 25th of the month. The scheduled cycle date for business accounts will be the last day of the month. If the scheduled statement cycle date falls on a non-business day, the statement date will be the date prior to the next business date.

Transaction Limitations

The Credit Union Board of Directors shall have the right to require members to give, in writing, not less than 7 and not more than 60 days notice of intention to withdraw the whole or any part of the amounts so paid in by them. Funds in checking accounts may be withdrawn without notice.

The Credit Union may refuse to allow withdrawals from an account if there is a dispute between the owners of an account, if there is an adverse claim against the account or if there is a good faith belief on the part of the Credit Union that the withdrawal request is not valid or authorized, in addition to other limits contained in this Disclosure book. The Credit Union may require a court order before it permits any account owner from withdrawing funds from that parties' accounts.

Federal regulations limit the total number of transfers or withdrawals from your Money Market Checking and Savings Accounts, as well as other savings accounts at the Credit Union, to six per statement cycle. These six transfers may include preauthorized automatic transfers, electronic funds transfers, telephone-initiated transfers, online banking transfers, overdraft protection transfers, Point of Sale (POS) transactions, checks and drafts. Some of these transfers may not be available for certain types of accounts. In-branch and ATM transactions do not apply toward the transfer limitations. Those accounts exceeding the six transaction limitation will be assessed an excess withdrawal fee for each occurrence in accordance with the Fee Schedule as adopted by the Credit Union from time to time.

The Credit Union reserves the right to limit the amount of cash provided in a withdrawal transaction. The Credit Union will make every effort to accommodate all withdrawal requests, but may limit larger amounts to non-cash items.

Deposit Verifications

The Credit Union is not responsible for a deposit until it has been received and verified by a Credit Union employee. You must maintain a record of each item you give the Credit Union for deposit or collection. If, upon verification of a deposit, an error is found, the Credit Union reserves the right to make adjustments to that deposit. A notification of the adjustment will be forwarded to the member at the address of record.

Fees and Charges

The savings and/or checking account will be subject to service charges in accordance with the Fee Schedule adopted by the Credit Union from time to time.

Inactive and Abandoned Accounts

If there has not been member contact regarding an account for a period of 365 days, the member will be notified of an inactive account status and applicable fees. Unless the member contacts the Credit Union regarding that account or initiates activity on that account such as a deposit or withdrawal, inactive fees will be charged to the account as specified in the Fee Schedule. Inactive account fees are not refundable. Inactive fees will be waived and notices will not be sent for:

  1. Members under the age of 18
  2. Accounts with balances of $200 or more
  3. Membership Savings Accounts if the member maintains at least one other active account with the Credit Union.

If there is no activity on a member's account for three years, (two years for IRA accounts that have reached distribution status), the Credit Union will notify the member by mail that the account has been presumed to be abandoned. If there is no contact with the member by the prescribed time, the account will be deemed abandoned and the funds will be turned over to the state of Arizona as in accordance with state law. Once funds have been turned over to the state, the Credit Union has no further liability to the member of the funds, and if the member wishes to reclaim such funds, the member must apply to the Arizona State Department of Revenue.

Credit Union Lien and Right of Set Off

The Credit Union has a lien provided by law on all your deposit accounts at the Credit Union. Additionally, you agree that the Credit Union also has the right to set off amounts you owe the Credit Union against any accounts you maintain at the Credit Union, to the full extent permitted by law. You waive any applicable notice with respect to any such set off.

Member Contact and Communication

The Credit Union, its agents or attorneys are hereby authorized to make telephone calls to any telephone numbers associated with your account, including any wireless or cellular telephone numbers provided by you to the Credit Union. The Credit Union may also use such telephone numbers to contact you by text message, or may contact you via email address provided by you to the Credit Union. The manner in which these calls or text messages are made to you may include the use of pre-recorded voice messages and/or an automatic telephone dialing system. Since you are hereby authorizing such means of contact and communication, no such contact or communication will be deemed a violation of the Telephone Consumer Protection Act (47 U.S.C. 227).

Change of Address/Notices

It is the member's responsibility to notify the Credit Union upon a change of address or change of name. The Credit Union is only required to attempt to communicate with the member at the most recent address provided by the member. Notice to any one owner of an account is notice to all owners of that account. The Credit Union may require the notice of change be provided in writing.

Account Garnishment, Levy or Seizure

Your account may be subject to legal action, such as a tax levy, third-party garnishment, seizure or forfeiture. Such legal action is subject to the Credit Union's security interest and right of setoff. Fees or expenses the Credit Union incurs in responding to legal action (including without limitation attorneys' fees and the Credit Union's internal expenses) may be charged against your account.

Deposit of Items

You may make deposits in person, by mail or by any other method the Credit Union makes available, such as its automated teller machines. The Credit Union is not responsible for deposits made by mail or through a depository not staffed by the Credit Union's staff until the Credit Union actually receives them. The Credit Union may at any time refuse or return to you the whole or any part of a deposit. If you do not use a deposit slip and simply write an account number on the items deposited, the Credit Union is authorized to deposit the item into that account without comparing the name of the payee or any endorsement to the account number.

The Credit Union may accept items for deposit in your account that are payable to you without your endorsement. If you fail to endorse an item that you submit for deposit, the Credit Union has the right, but is not obligated, to supply the missing endorsement. You agree to reimburse the Credit Union for any loss or expense it incurs because you failed to endorse an item exactly as it is drawn.

Cash Transaction Reporting

Government regulations require us to report transactions involving currency in excess of $10,000 and other unusual transactions to the IRS. We have this obligation even if the $10,000 is spread out over several transactions in one day.

Illegal Use of Accounts and Services

Any financial service provided by the Credit Union may be used for any transaction permitted by law. Any illegal use of a financial service will be deemed an action of default and/or breach of contract and such service and/or other related services may be terminated at the Credit Union's discretion. Should illegal use occur, the right to sue the Credit Union for such illegal activity directly or indirectly related to it is waived. The Credit Union will be held harmless from any suits or other legal actions or liability, directly or indirectly, resulting from such illegal use.

Member/Vendor/Employee Relations

Desert Schools Federal Credit Union is committed to providing a work environment that ensures all employees are treated with respect and dignity, and that is free from unlawful and improper harassment or discrimination of any kind. Harassment, threats or abusive or similar behavior will not be tolerated, whether committed by employees, management personnel, members, vendors, contractors or visitors. Desert Schools Federal Credit Union will promptly respond to employee complaints by conducting an investigation and taking any remedial action it deems appropriate, up to and including closure of member accounts.

Powers of Attorney

We are not required to recognize any power of attorney to act on an account and may require that a power of attorney be executed on our internal Special Durable Power of Attorney document. Upon acceptance of a power of attorney, we may continue to recognize the authority of the attorney-in-fact until we receive written notice of revocation or termination and have had a reasonable time to act upon it. We may terminate our acceptance of a power of attorney at any time and for any reason. We also reserve the right to restrict the types or size of transactions we will permit an attorney-in-fact to conduct, on a case-by-case basis, and may require the attorney-in-fact to present the original power of attorney before conducting any transaction.

Miscellaneous

The member and any other account owner agree to hold the Credit Union harmless from any and all losses that the Credit Union may suffer resulting from the use of financial services by additional signatories of the member and/or account owner.

Each of your accounts is governed by the laws and regulations of the United States (including the Federal Reserve Board and National Credit Union Administration) and Arizona state law.

Account Ownership

Individual Accounts

By opening an account that is designated as an individual account on the account application you are considered by the Credit Union as the sole owner of the Account. You may designate another person to write checks on the account, if agreed to by the Credit Union, by granting that person a limited power of attorney on a form acceptable to the Credit Union. Otherwise, you will be the only person authorized to use the account.

Joint Accounts

A personal account opened by two or more persons is treated as a "joint account." The Credit Union offers one type of joint account: a joint account with right of survivorship.

Two or more persons opening a joint account with survivorship will be treated by the Credit Union as joint tenants with right of survivorship and not as tenants in common. Upon the death of a joint tenant, the surviving owner has the right to all the funds in the account, subject to the Credit Union's right of setoff and security interest in the account. If more than one joint tenant survives, they will own the account as joint tenants with right of survivorship and not as tenants in common.

Each joint owner on an account may withdraw, by any means the Credit Union makes available, any or all of the funds on deposit, close the account, and enter into special agreements regarding the account. Each joint owner guarantees the signatures of the other joint owners and authorizes the others to endorse checks for deposit if they are payable to any of the joint owners. Each joint owner also authorizes the Credit Union to exercise setoff and enforce its security interest in the entire joint account, even though only one of the joint owners is the debtor; these rights exist irrespective of who contributed funds to the joint account. Similarly, the Credit Union can enforce overdraft liability in the joint account against any joint owner individually. Garnishments against either or both joint owners are subject to the Credit Union's right of setoff and security interest. Notice provided by the Credit Union to any one joint owner is notice to all joint owners.

Agency and Fiduciary Accounts

Any individual acting as an Agent, Guardian, Personal Representative, Trustee, Custodian, or in some other fiduciary capacity must be designated to the Credit Union as such on the Membership Savings Account application. It will otherwise be assumed that you own the account in an individual capacity. The Credit Union is authorized to follow the directions of your Agent regarding your account until it receives written notice that the agency has been terminated and has had reasonable time to act upon that notice. The Credit Union is not liable for the misapplication of funds from your account by your Agent. The terms of any Agency Agreement, Trust Agreement, Court Order, or other document in which the account is opened will govern the account, and the Credit Union has the right to review such a document.

Accounts Under Uniform Transfers to Minors Act

This account may be opened in accordance with the Arizona Uniform Transfers to Minors Act. Only the custodian is authorized to instruct the Credit Union regarding the account(s). The Credit Union may, however, disclose information about the account(s) to the minor or the minor's representative(s). The custodian of all account(s) will abide by the law by notifying the Credit Union in writing immediately upon the death of the minor or at the time the minor attains the age of maturity. After notifying the Credit Union of either of these events, your authority over the account continues to the extent allowed by law.

Payable on Death Designation

If reflected on the account application, an account may have a payable on death (POD) beneficiary designation. This means that the account is owned by the account holder or holders during the holder's lifetime, but upon the death of the last surviving account holder, the funds in the account are payable to all surviving POD beneficiaries. Certain accounts, such as IRAs, are not eligible for POD beneficiaries. The Credit Union is under no obligation to notify any POD beneficiary of the existence of a POD account or the vesting of the funds with the beneficiary or beneficiaries.

Accounts of Businesses and Organizations

Accounts held in the name of a business, organization or association member are subject to all of the conditions and terms contained in this Agreement for natural person accounts (except as noted), and the following additional rules. The Credit Union reserves the right to require the business member to provide an account authorization card or other documentary evidence satisfactory to the Credit Union informing the Credit Union who is authorized to act on the business member's behalf. No POD beneficiary designation or other designation shall apply to the account. You agree to notify the Credit Union of any change in this representative authority of your agent. The Credit Union may rely on your written authorization until such time as the Credit Union is informed of changes in writing and has had a reasonable time to act upon such notice. The Credit Union does not allow checks payable to a business to be cashed, but must be deposited to the business account. Third party checks that have been endorsed over to a business will not be accepted. You agree that the Credit Union shall have no notice of any breach of fiduciary duties arising from any transactions by any agent of the account owner, unless the Credit Union has actual notice of such breach.

Electronic transactions conducted on business accounts and identified as corporate entries are governed by the rules established by the National Automated Clearing House Association (NACHA) as published in the ACH Rules manual. In establishing your business accounts you acknowledge this authority.

Terms and Conditions Applying to Membership Savings Accounts and Business Membership Savings Accounts

A minimum balance of $25.00 is required to maintain a Membership Savings Account or a Business Membership Savings Account. A membership savings account must be maintained in order to continue membership and be eligible for any other credit union services.

Membership Savings Accounts and Business Membership Savings Accounts are variable rate accounts, and the Dividend Rate and Annual Percentage Yield (APY) may change after the account is open.

Dividends are computed on the daily balance and accrue on the entire balance once a minimum is met.

To earn and receive dividends, a Membership Savings Account and a Business Membership Savings Account must have a minimum daily balance of $25.00. On any day the account balance is less than $25.00, no dividend will be earned for that day.

Dividends earned are deposited to the account after the close of business the last business day of the scheduled statement cycle and reflect dividends earned through the statement period.

If a Membership Savings Account or a Business Membership Savings Account is closed during a dividend period, the accrued dividend will be paid at the time of closure.

Federal Credit Union bylaws give the Credit Union the authority to impose a notice of up to 60 days for withdrawal of savings.

The Credit Union is under no obligation to pay an electronic debit which exceeds the available balance in the savings account.

The Membership Savings Account and the Business Membership Savings Account may be subject to service charges in accordance with the Fee Schedule adopted by the Credit Union from time to time. The Fee Schedule may be obtained at any of the Credit Union staffed locations or by calling (602) 433-7000.

A current Rate Sheet describing Dividend Rate and APY may be obtained at any of the Credit Union staffed locations by visiting us at desertschools.org.

Terms and Conditions Applying to IRA Savings Accounts

In addition to the terms contained in this Disclosure book, please consult your IRA Plan Agreement for additional terms that apply to your account. If there are any contradictory terms between this Disclosure book and your IRA Plan Agreement, your Plan Agreement controls.

No minimum balance or initial deposit will be required to open an IRA Savings Account.

IRA Savings Accounts are variable rate accounts and the Dividend Rate and Annual Percentage Yield (APY) may change after the account is opened.

Dividends are computed on the daily balance and accrue on the entire balance. Dividends are credited and compounded monthly.

If an IRA Savings Account is closed during a dividend period, the accrued dividend will be paid at the time of closure.

Contributions can be made over the counter, through mail or through online banking transfers.

Balances of $1000.00 or more may be transferred to an IRA Certificate.

There are no Credit Union penalties for withdrawals to IRA Savings Accounts, however, all IRS penalties and requirements apply to IRA Certificates and IRA Savings

The penalty does not apply to early withdrawals if the account is part of a qualified individual retirement or Keogh Plan, withdrawals upon the participant's disability or attainment of not less than 59 1/2 years of age, and withdrawals as a result of voluntary or involuntary liquidation of the Credit Union.

Federal Credit Union bylaws give the Credit Union the authority to impose a notice of up to 60 days for withdrawal of savings.

IRA Savings Accounts may be subject to service charges in accordance with the Fee Schedule adopted by the Credit Union from time to time. The Fee Schedule may be obtained at any of the Credit Union staffed locations or by calling (602) 433-7000.

A current Rate Sheet describing the Dividend Rate and APY may be obtained at any of the Credit Union staffed locations or by visiting us at desertschools.org.

Terms and Conditions Applying to the Health Savings Account and VISA® Health Savings Account Debit Cards

In addition to terms contained in this Disclosure, please consult your Health Savings Account Plan Agreement for additional terms that apply to your account. If there are any contradictory terms between this Disclosure and your HSA Plan Agreement, your Plan Agreement controls.

Health Savings Accounts are variable rate accounts and the Dividend Rate and Annual Percentage Yield (APY) may change after the account is opened.

Dividends are computed on the daily balance and accrue on the entire balance. Dividends are credited and compounded monthly.

Dividends earned are deposited to the account after the close of business the last business day of the scheduled statement cycle and reflect dividends earned through the statement period.

If a Health Savings Account is closed during a dividend period, the accrued dividend will be paid at the time of closure.

Contributions can be made through payroll deduction, over the counter, through Online Banking, or through a Desert Schools ATM.

There are no Credit Union penalties for withdrawals to a Health Savings Account, however, all IRS penalties and requirements apply.

Federal Credit Union bylaws give the Credit Union the authority to impose a notice of up to 60 days for withdrawal of savings.

Health Savings Accounts may be subject to service charges in accordance with the Fee Schedule adopted by the Credit Union from time to time. The Fee Schedule may be obtained at any of the Credit Union staffed locations or by calling 602-433-7000.

A current Rate Sheet describing the Dividend Rate and APY may be obtained at any of the Credit Union staffed locations or you may obtain current rates by calling the RATE LINE at 602-433-7283.

A VISA Health Savings Account Debit Card may be issued for the Health Savings Account, which can be used at ATMs for the purpose of deposits and withdrawals, and for point-of-sale transactions at merchants.

A Health Savings Account may be closed by the Credit Union due to excessive returned checks due to insufficient funds, negative balances, abuse of the VISA Health Savings Account Debit Card or any other abuse of the account privileges.

The Credit Union is authorized to pay checks signed by any signer on the account and to charge the payments against the Health Savings Account.

The Credit Union is under no obligation to pay a check which exceeds the balance of the Health Savings Account.

The Credit Union is under no obligation to pay a check on which the date is more than six (6) months old. However, the Credit Union may pay such item if we do so in good faith. You agree that we are acting in good faith as long as there is not a stop payment order in effect when we pay the item. The Credit Union is not liable for paying a check that the member has postdated.

Except for negligence, the Credit Union is not liable for any action it takes regarding the payment or non-payment of a check.

All members must notify the Credit Union within 30 days of the date the statement was mailed or delivered of any unauthorized signature, or alteration on a check identified on the statement.

Funds in a Health Savings Account may not be used as collateral for any loans.

Paid checks will not be returned but will be stored. Originals will be available for a fee for 30 days. Copies will be available for a fee as long as records are retained. (Refer to Fee Schedule) Records are retained for the time limit required by the Arizona Revised Statues.

You may stop payment on any of your checks provided the Credit Union receives your stop payment order in a manner and at a time that gives the Credit Union a reasonable opportunity to act on it before paying, accepting, cashing or otherwise becoming obligated to pay your check as provided by law. A stop payment order can be submitted to the Credit Union in person at any branch location, by phone through our Member Assistance Center, or through Online Banking. The stop payment will remain in effect for six (6) months or until revoked by the account holder, whichever comes first.

Desert Schools assumes no liability for any action it takes regarding the payment or non-payment of the stopped item, unless payment is caused by negligence and causes actual loss to you. You must reimburse the Credit Union for any loss it sustains in honoring a stop payment request.

If the Credit Union credits your account after paying a check over a valid and timely stop payment order, you agree to sign an affidavit in form and substance acceptable to the Credit Union describing the dispute with the payee, to transfer to the Credit Union all of your rights against the payee or other holder of the check, and to assist the Credit Union in legal action against that person.

Stop payments may not be placed on VISA Health Savings Account Debit Card transactions.

Terms and Conditions Applying to Savings Accounts and Business Savings Accounts (excluding Membership Savings and Business Membership Savings Accounts)

No initial deposit amount will be required to open a Savings Account(s) or a Business Savings Account(s).

Savings Accounts and Business Savings Account s are variable rate accounts, and the Dividend Rate and Annual Percentage Yield (APY) may change after the account is opened.

Dividends are computed on the daily balance and accrue on the entire balance. Dividends are credited and compounded monthly.

Dividends earned are deposited to the account after the close of business the last business day of the scheduled statement cycle, and reflect dividends earned through the statement period.

Federal Credit Union bylaws give the Credit Union the authority to impose a notice of up to 60 days for withdrawal of savings.

Savings Accounts and Business Savings Account s may be subject to service charges in accordance with the Fee Schedule adopted by the Credit Union from time to time. The Fee Schedule may be obtained at any of the Credit Union staffed locations or by calling (602) 433-7000.

A current Rate Sheet describing the Dividend Rate and APY may be obtained at any of the Credit Union staffed locations or by visiting us at desertschools.org.

Terms and Conditions Applying to Secured Savings Accounts

The purpose of the Secured Savings Account is to secure the collateral for a Savings Secured Loan. The Secured Savings Account requires an initial deposit equal to the initial loan amount plus 5%.

Secured Savings Accounts are variable rate accounts, and the Dividend Rate and Annual Percentage Yield (APY) may change after the account is opened.

Dividends are computed on the daily balance and accrue on the entire balance. Dividends are credited and compounded monthly.

Dividends earned are deposited to the account after the close of business the last business day of the scheduled statement cycle, and reflect dividends earned through the statement period.

Federal Credit Union bylaws give the Credit Union the authority to impose a notice of up to 60 days for withdrawal of savings.

Secured Savings Accounts may be subject to service charges in accordance with the Fee Schedule adopted by the Credit Union from time to time. The Fee Schedule may be obtained at any of the Credit Union staffed locations or by calling (602) 433-7000.

A current Rate Sheet describing the Dividend Rate and APY may be obtained at any of the Credit Union staffed locations or by visiting us at desertschools.org.

Terms and Conditions Applying to Savings Certificates

Regular, Jumbo, and IRA Savings Certificates

A minimum deposit of $1000.00 is required to open and maintain a Regular and IRA Savings Certificate.

A minimum deposit of $100,000 is required to open and maintain a Jumbo Savings Certificate.

Dividends are computed on the daily balance and paid monthly.

Early withdrawal of any portion of the certificate principal may result in the change of certificate terms or closure of the certificate.

Additions to the principal of any certificate before the maturity date are prohibited.

The penalty for early withdrawal of the certificate with a term of one year or less will be the amount equal to dividends for 90 days, or $25, whichever is greater. NOTE: penalty could result in reduction of principal balance.

The penalty for early withdrawal of the certificate with a term in excess of one year will be the amount equal to dividends for 180 days, or $25, whichever is greater. NOTE: penalty could result in reduction of principal balance.

The Annual Percentage Yield (APY) calculation assumes that the principal and dividends will remain in the certificate until maturity. Withdrawal of dividends may cause a lower APY.

The Credit Union will mail notice to the owner at least 30 days prior to maturity. The notice will inform the owner of the terms under which the Credit Union proposes to renew the certificate or otherwise make funds available to the owner. Savings Certificate funds will be handled by the Credit Union in the manner described in the notice unless the owner notifies the Credit Union to the contrary on or before the maturity date. You will have a grace period of ten (10) business days after the maturity date to withdraw the funds in the account without being charged an early withdrawal penalty.

Federal Credit Union bylaws give the Credit Union the authority to impose a notice of up to 60 days for withdrawal of savings.

In the event of death of the primary owner, the certificate must be closed by the beginning of the quarter following the quarter of death.

Changes in credit union policy regarding certificates can be made without member approval or notification and will be mailed 30 days prior to change. Changes will not be made to the present certificate during the current qualifying period.

All the funds in the certificate account, including all deposits and dividends added to the account, are owned by the listed owners as joint owners with full rights of survivorship. This means that if any of the listed owner(s) die, that the remaining owner(s) will own the entire account.

  1. Any joint owner may receive payment at maturity, or make withdrawals prior to maturity
  2. When any joint owner makes a withdrawal from the certificate, whether before or after the death of any other joint owner, the Credit Union will have no further obligations with respect to the amount withdrawn.

A current rate sheet describing the terms, minimum balances, Dividend Rate, and APY may be obtained at any of the Credit Union staffed locations or by visiting us at desertschools.org.

College Savings Certificates

A minimum deposit of $1000.00 is required to open a College Savings Certificate. A minimum monthly transfer of $25 is required to maintain the certificate. If the initial deposit is $5,000.00 or more, the monthly transfer requirement may be waived.

Dividends are computed on the daily balance and paid monthly.

The certificate will be set up on the child's account with the parent/guardian/grandparent or other relative as the joint owner. The child whose account will have the certificate must be under the age of 18.

Term will be set at one (1) year and renewed annually at the highest prevailing one (1) year premium certificate rate, regardless of the account relationships.

The penalty for early withdrawal of the certificate will be the amount equal to dividends for 90 days, or $25, whichever is greater. Note: penalty could result in reduction of principal. Penalty for early withdrawal in excess of 7 days dividends will be waived upon proof of high school graduation, GED, or age 18.

The Annual Percentage Yield (APY) calculation assumes that the principal and dividends will remain in the certificate until maturity. Withdrawal of dividends may cause a lower APY.

The Credit Union will mail notice to the owner at least 30 days prior to maturity. The notice will inform the owner of the terms under which the Credit Union proposes to renew the certificate or otherwise make funds available to the owner. College Savings Certificate funds will be handled by the Credit Union in the manner described in the notice unless the owner notifies the Credit Union to the contrary on or before the maturity date. You will have a grace period of ten (10) business days after the maturity date to withdraw the funds in the account without being charged an early withdrawal penalty.

Certificate may not be used as collateral for a loan.

Federal Credit Union bylaws give the Credit Union the authority to impose a notice of up to 60 days for withdrawal of savings.

In the event of death of the primary owner, the certificate must be closed by the beginning of the quarter following the quarter of death.

Changes in credit union policy regarding certificates can be made without member approval or notification and will be mailed 30 days prior to change. Changes will not be made to the present certificate during the current qualifying period.

All the funds in the certificate account, including all deposits and dividends added to the account, are owned by the listed owners as joint owners with full rights of survivorship. This means that if any of the listed owner(s) die, that the remaining owner(s) will own the entire account.

  1. Any joint owner may receive payment at maturity or make withdrawals prior to maturity.
  2. When any joint owner makes a withdrawal from the certificate, whether before or after the death of any other joint owner, the Credit Union will have no further obligations with respect to the amount withdrawn.

A current Rate Sheet describing the terms, minimum balances, Dividend rate and APY may be obtained at any of the Credit Union staffed locations or by visiting us at desertschools.org.

Terms and Conditions Applying to Money Market Accounts and VISA® Money Market Debit Cards

A minimum deposit of $2,000.00 is required to open a Money Market Account.

A minimum deposit of $2,000.00 is required to open a Business Money Market Account.

Money Market Accounts are variable tiered rate accounts, and the Dividend Rate and Annual Percentage Yield (APY) may change after the account is open.

Dividends are computed on the daily balance and accrue on the entire balance once a tier minimum is met.

To earn and receive dividends on a Money Market Account or a Business Money Market Account, a minimum daily balance of $2,000.00 is required. On any day the account is less than $2,000.00, no dividend will be earned that day.

A fee penalty will be assessed monthly if the balance on any day falls below the required minimum balance. (Refer to Fee Schedule)

If the Money Market Account is closed during a dividend period, the accrued dividends will be paid at the time of closure.

A VISA® Money Market Debit Card may be issued for the Money Market Account, which can be used at ATMs for the purpose of deposits, withdrawals, and transfers, and for point-of-sale transactions at merchants.

Money Market Accounts may have unlimited over-the-counter transactions.

Federal Credit Union bylaws give the Credit Union the authority to impose a notice of up to 60 days for withdrawal of savings.

Federal regulations limit the total number of transfers or withdrawals from your Money Market accounts to six per statement cycle. These six transfers may include preauthorized automatic transfers, electronic funds transfers, telephone-initiated transfers, online banking transfers, overdraft protection transfers, Point of Sale (POS) transactions, checks and drafts. Some of these transfers may not be available for certain types of accounts. In-branch and ATM transactions do not apply toward the transfer limitations.

If the maximum number of transactions permitted per statement cycle is exceeded on a continual basis, we may close your account or transfer your funds into a regular checking account.

Use of the VISA® Money Market Debit Card through an ATM is a request for a non-check withdrawal of funds from the Money Market Account.

All Money Market Accounts may be subject to service charges in accordance with the Fee Schedule adopted by the Credit Union from time to time.

The Fee Schedule may be obtained at any of the Credit Union staffed locations or by calling (602) 433-7000.

A current Rate Sheet describing the Dividend Rate and APY may be obtained at any of the Credit Union staffed locations or by visiting us at desertschools.org.

A Money Market Account may be closed by the Credit Union due to excessive returned checks due to insufficient funds, negative balances, delinquent loans, abuse of the VISA® Money Market Debit Card or any other abuse of the account privileges.

The Credit Union is authorized to pay checks signed by any signer on the account and to charge the payments against the Money Market Account.

The Credit Union is under no obligation to pay a check which exceeds the balance of the Money Market Account.

The Credit Union is under no obligation to pay a check on which the date is more than six (6) months old. However, the Credit Union may pay such item if we do so in good faith. You agree that we are acting in good faith as long as there is not a stop payment order in effect when we pay the item. The Credit Union is not liable f or paying a check that the member has postdated.

Except for negligence, the Credit Union is not liable for any action it takes regarding the payment or non-payment of a check.

All members must notify the Credit Union within 30 days of the date the statement was mailed, any claim for credit or refund due for example (and without limitation) to either an erroneous debit, a missing signature, an unauthorized signature, or a material alteration. If the Credit Union is not notified within the specified time, the stated balance will be conclusively presumed to be correct.

Funds in a Money Market Account may not be used as collateral for any loans.

Paid checks will not be returned but will be stored. Originals will be available for a fee for 30 days. Copies will be available for a fee as long as records are retained. (Refer to Fee Schedule) Records are retained for the time limit required by the Arizona Revised Statutes.

You may stop payment on any of your checks provided the Credit Union receives your stop payment order in a manner and at a time that gives the Credit Union a reasonable opportunity to act on it before paying, accepting, cashing or otherwise becoming obligated to pay your check as provided by law. A stop payment order can be submitted to the Credit Union in person at any branch location, by phone through our Member Assistance Center, or through our online banking service. The stop payment will remain in effect for six (6) months or until revoked by the account holder, whichever comes first.

Desert Schools assumes no liability for any action it takes regarding the payment or non-payment of the stopped item unless payment is caused by negligence and causes actual loss to you. You must reimburse the credit union for any loss it sustains in honoring a stop payment request.

If the Credit Union credits your account after paying a check over a valid and timely stop payment order, you agree to sign an affidavit in form and substance acceptable to the Credit Union describing the dispute with the payee, to transfer to the Credit Union all of your rights against the payee or other holder of the check, and to assist the Credit Union in legal action against that person.

Stop payments may not be placed on VISA® Money Market Debit Card transactions.

Terms and Conditions Applying to Checking Accounts, VISA® Debit Cards, VISA® Business Check Cards and ATM Cash Cards

An initial deposit of $20.00 will be required to open a Desert Connect, Desert Fusion, or Desert Skyline checking account.

An initial deposit of $25.00 will be required to open a Business Value, Business Value Plus, Business Platinum, or Organization Checking Account.

Checking accounts are variable rate accounts, and the Dividend Rate and Annual Percentage Yield (APY) may change after the account is opened.

Dividends will be earned and received on the entire balance on the Desert Skyline, Business Value Plus and Business Platinum checking accounts.

Dividends are computed on the daily balance and accrue on the entire balance.

Dividends earned are deposited to the account after the close of business the last business day of the scheduled statement cycle, and reflect dividends earned through the statement period.

To earn and receive dividends on a Desert Fusion Checking Account, the following requirements must be satisfied:

Dividends earned on the Desert Fusion checking account are deposited to the account after the close of business the last business day of the scheduled statement cycle. Accounts must be open on the last day of the cycle in order to receive earned dividends.

If earned, dividends are computed on the daily balance and accrue on the entire balance.

No dividends will be paid on Desert Connect, Desert Select, Business Value, or Organization Checking Accounts.

All checking accounts may be subject to a service charge in accordance with the Fee Schedule adopted by the Credit Union from time to time.

The Fee Schedule may be obtained at any of the Credit Union staffed locations or by calling (602) 433-7000.

A current Rate Sheet describing the Dividend Rate and APY may be obtained at any of the Credit Union staffed locations or by visiting us at desertschools.org.

A checking account may be closed by the Credit Union due to excessive returned checks due to insufficient funds, negative balances, delinquent loans, abuse of the VISA® Debit Card, VISA® Business Check Card, or ATM Cash Card, or any other abuse of the checking account privilege.

The Credit Union is authorized to pay checks signed by any signer on the account and to charge the payments against the checking account or against the savings account or line of credit loan as authorized.

The Credit Union is under no obligation to pay an electronic debit or a check which exceeds the balance in the overdraft options of the checking account. The Credit Union has the right to withdraw funds from any account on which the member or joint owner is a signer in order to pay funds owed on checking or savings accounts, at any time and for any reason as allowed by law.

The Credit Union is under no obligation to pay a check on which the date is more than six (6) months old. However, the Credit Union may pay such item if we do so in good faith. You agree that we are acting in good faith as long as there is not a stop payment order in effect when we pay the item. The Credit Union is not liable for paying a check that the member has postdated.

Except for negligence, the Credit Union is not liable for any action it takes regarding the payment or non-payment of a check.

All members must notify the Credit Union within 30 days of the date the statement was mailed, any claim for credit or refund due for example (and without limitation) to either an erroneous debit, a missing signature, an unauthorized signature, or a material alteration. If the Credit Union is not notified within the specified time, the stated balance will be conclusively presumed to be correct.

Funds in the checking account may not be used as collateral for any loans.

Paid checks will not be returned, but will be stored. Originals will be available for a fee for 30 days. Copies will be available for a fee as long as records are retained. Records are retained for the time limit required by the Arizona Revised Statutes.

The Credit Union may deny a checking account to any member because of unfavorable credit history and/or history of abuse of other checking accounts.

The Credit Union may pay or return any item that is drawn against nonsufficient funds. Any decision to return an item may be made without notice to you, even though the Credit Union may have previously established a pattern of honoring such items. Any negative account balance is immediately due and payable, unless the Credit Union agrees otherwise in writing. Your account will be subject to a charge for the item, whether paid or returned, as set forth in the Fee Schedule adopted by the Credit Union from time to time. At the Credit Union’s discretion, the fee may be waived if the resulting negative balance is within the tolerance established by the Credit Union from time to time.

Upon your request, we may set up automatic overdraft transfers for your Desert Schools checking account. When there are insufficient funds in your checking account to cover a check or other debit, we will transfer the amount needed from your Membership Savings account or Money Market Account up to the available amount. We are limited as to the frequency of these automatic transfers by federal regulations (see section titled "Transaction Limitation", page 2). In addition, you may apply for an overdraft protection loan. With an overdraft protection loan, we will transfer the amount needed up to your available credit, in accordance with your loan agreement to cover a check or other debit from your Desert Schools checking account when sufficient funds are not available. Fees for overdraft protection transfers are assessed in accordance with the Fee Schedule as adopted by the Credit union from time to time.

You may be eligible for our Privilege Pay program, which allows us to pay certain items on your checking account that exceed your available balance. Qualifying transactions include the clearing of share drafts (checks), ACH debits, debits by other electronic means, and in-person withdrawals. Transactions such as ATM withdrawals and one time debit card transactions may also be included provided you have submitted an opt-in authorization to the Credit Union (opt-in authorization not required for business accounts). If an item is paid against insufficient available funds, a notice will be sent to you and a fee will be imposed as set forth in the Fee Schedule adopted by the Credit Union from time to time. This program is not a line of credit. An overdrawn balance must be repaid within thirty (30) days. We may not pay items under the program if you do not maintain your account in good standing by bringing your account to a positive balance within every thirty (30) day period for a minimum period of one business day, if you default on any loan or other obligation to the Credit Union or if your account is subject to any legal or administrative order or levy.

You may stop payment on any of your checks provided the Credit Union receives your stop payment order in a manner and at a time that gives the Credit Union a reasonable opportunity to act on it before paying, accepting, cashing or otherwise becoming obligated to pay your check as provided by law. A stop payment order can be submitted to the Credit Union in person at any branch location, by phone through our Member Assistance Center, or through Online Banking. The stop payment will remain in effect for six (6) months or until revoked by the account holder, whichever comes first.

Desert Schools assumes no liability for any action it takes regarding the payment or non-payment of the stopped item unless payment is caused by negligence and causes actual loss to you. You must reimburse the credit union for any loss it sustains in honoring a stop payment request.

If the Credit Union credits your account after paying a check over a valid and timely stop payment order, you agree to sign an affidavit in form and substance acceptable to the Credit Union describing the dispute with the payee, to transfer to the Credit Union all of your rights against the payee or other holder of the check, and to assist the Credit Union in legal action against that person.

Stop payments may not be placed on VISA Debit Card, VISA Business Check Card and ATM Cash Card transactions.

The Credit Union may pay items presented against your account in any order it chooses, unless a particular order is either required or prohibited by law. Items may not be processed in the order in which they occurred and the order in which items are received and processed may impact the total amount of fees incurred by you. The Credit Union may change the order of posting items to your account at any time without notice to you.

For purposes of reporting balances to the Federal Reserve Bank, Credit Union checking accounts are structured into transactions and savings portions. This structuring has no effect on available balance, dividend earnings, NCUSIF insurance, statement, or any other feature of the account. The credit union may periodically transfer funds between these two portions. The savings portion will be governed by the rules governing our other savings accounts indicated within the withdrawals section of your Account Agreement. This process will have no impact on the account.

Terms and Conditions Applying to Use of the VISA® Debit Card, the VISA® Business Check Card, the VISA® Money Market Debit Card, the VISA® Health Savings Account Debit Card or the ATM Cash Card

The Credit Union VISA® Debit Card is issued with the Desert Connect Checking, Desert Fusion Checking, Desert Select Checking and Desert Skyline Checking accounts. The Credit Union VISA® Business Check Card is issued with the Business Value Checking, Business Value Plus Checking, Business Platinum Checking and Organization Checking accounts. The VISA® Money Market Debit Card is issued with the Money Market Accounts. The VISA® Health Savings Account Debit Card is issued with the Health Savings Account. The Credit Union ATM Cash Card is issued with the Membership Savings Account. These Cards may be used to access their respective accounts through select automated teller machines, and to make purchases and/or cash advances at participating merchants. The Credit Union will issue a maximum of one card per account holder for each eligible account held.

Cardholder(s) are liable to the Credit Union for payment made on checks or transactions made with the VISA® Debit Card, VISA® Business Check Card, VISA® Money Market Debit Card, VISA® Health Savings Account Debit Card or ATM Cash Card and for any lawful fees assessed against the account. The cardholder(s) will pay all costs incurred by the Credit Union to collect from the cardholder(s), including, but not limited to, attorney fees and court costs.

The VISA® Debit Card, VISA® Business Check Card, VISA® Money Market Debit Card, VISA® Health Savings Account Debit Card and/or the ATM Cash Card is and remains the property of the Credit Union, is not transferable by the cardholder(s), and must be returned to the Credit Union immediately upon request or when the account is closed. The Credit Union may terminate your card privileges at any time without notice to you.

The Credit Union may deactivate a VISA Debit Card, VISA Business Check Card, VISA Money Market Debit Card, or an ATM Cash Card after the card has been inactive for a period of 6 months. To reactivate the debit card you must contact the credit union.

Use of the VISA® Debit Card or the account number on the card in an electronic terminal or for payments, or purchases or to obtain cash advances from merchants, financial institutions or others who honor the VISA® Debit Card, is a request for withdrawal of funds from the checking account. Each VISA® Debit Card withdrawal will be charged to the checking account.

Use of the VISA® Money Market Debit Card or the account number on the card in an electronic terminal or for payments, or purchases or to obtain cash advances from merchants, financial institutions or others who honor the VISA® Money Market Debit Card, is a request for withdrawal of funds from the Money Market Account. Each VISA® Money Market Debit Card withdrawal will be charged to the appropriate money market account.

Use of the VISA® Health Savings Account Debit Card or the account number on the card in an electronic terminal or for payments, or purchases or to obtain cash advances from merchants, financial institutions or others who honor the VISA® HSAHEALTH SAVINGS ACCOUNT Debit Card is a request for withdrawal of funds from the Health Savings Account.

Merchants will transmit electronic authorizations for purchases made with the VISA® Debit Card. Once the Credit Union approves an authorization, the amount of that authorization will be held against the checking account or applicable overdraft accounts until the completed financial transaction is submitted by the merchant or one business day, whichever occurs first. While the funds are on hold for an authorization, they are not available for withdrawal by any means.

The Credit Union is not liable for the refusal or inability of terminals or persons outside the Credit Union to Honor the VISA® Debit Card, VISA® Business Check Card, VISA® Money Market Debit Card, VISA® Health Savings Account Debit Card, or the ATM Cash Card withdrawals, or for the retention of the VISA® Debit Card, VISA® Business Check Card, VISA® Money Market Debit Card, VISA® Health Savings Account Debit Card or the ATM Cash Card by such terminals or persons.

VISA® Debit Card, VISA® Business Check Card, VISA® Money Market Debit Card, VISA® Health Savings Account Debit Card and ATM Cash Card transactions made in foreign countries and foreign currencies will be charged to the applicable Credit Union account in U.S. dollars. If you use the Card in a foreign country or in a transaction involving a currency other that U.S. dollars, each transaction will be converted to U.S. dollars under regulations established by Visa® International. The conversion to U.S. dollars may occur on a date other than the transaction date; therefore, the conversion rate may differ from the rate in effect at the time of the transaction. You agree to pay the converted amount. For these transactions, the rate of exchange between the transaction currency and the billing currency used for processing international transactions is a rate selected by VISA® from the range of rates available in wholesale currency markets for the applicable central processing date, which rate may vary from the rate VISA® itself receives, or the government-mandated rate in effect for the applicable central processing date, plus 1 percent. Desert Schools does not control exchange rates or the date or place of exchange.

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