SCHOFIELD FEDERAL CREDIT UNION MEMBERSHIP AND

SCHOFIELD FEDERAL CREDIT UNION

MEMBERSHIP AND ACCOUNT AGREEMENT

This Agreement covers your rights and responsibilities concerning your accounts and the rights and

responsibilities of the Credit Union providing this Agreement (Credit Union). In this Agreement, the

words “you,” “your,” and “yours” mean anyone who signs an Account Card, Account Change Card, or

any other account opening document (Account Card), or for whom membership and/or service requests

are approved through the Credit Union’s online application and authentication process. The words “we,”

“us,” and “our” mean the Credit Union. The word “account” means any one or more share or deposit

accounts you have with the Credit Union.

Your account type(s) and ownership features are designated by you on your Account Card or through

the Credit Union’s online application and authentication process. By signing an Account Card or

authenticating your request, each of you, jointly and severally, agree to the terms and conditions in this

Agreement, and any Account Card, Funds Availability Policy Disclosure, Truth-in-Savings Disclosure,

Electronic Fund Transfers Agreement and Disclosure, Privacy Disclosure, or Account Receipt

accompanying this Agreement, the Credit Union Bylaws or Code of Regulations (Bylaws), Credit Union

policies, and any amendments made to these documents from time to time that collectively govern your

membership, accounts and services.

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT — To help the

government ﬁght the funding of terrorism and money laundering activities, Federal law requires all

ﬁnancial institutions to obtain, verify, and record information that identiﬁes each person who opens an

account.

What this means for you: When you open an account, we will ask for your name, address, date of birth,

if applicable, and other information that will allow us to identify you. We may also ask to see your

driver’s license or other identifying documents.

1. MEMBERSHIP ELIGIBILITY — To join the Credit Union, you must meet the membership requirements,

including purchase and maintenance of the minimum required share(s) (hereinafter membership share)

and/or paying a membership fee as set forth in the Credit Union’s bylaws. You authorize us to check

your account, credit and employment history, and obtain reports from third parties, including credit

reporting agencies, to verify your eligibility for the accounts, products and services you request and for

other accounts, products, or services we may offer you or for which you may qualify.

2. INDIVIDUAL ACCOUNTS — An individual account is an account owned by one member who has

qualiﬁed for credit union membership. If the account owner dies, the interest passes, subject to

applicable law, to the account owner’s estate or Payable on Death (POD) beneﬁciary/payee or trust

beneﬁciary, subject to other provisions of this Agreement governing our protection for honoring

transfer and withdrawal requests of an owner or owner’s agent prior to notice of an owner’s death, any

security interest or pledge granted by the account owner, and our statutory lien rights.

3. JOINT ACCOUNTS — A joint account is an account owned by two or more persons.

a. Rights of Survivorship. Unless otherwise stated on the Account Card or documented through the

Credit Union’s online application and authentication process, a joint account includes rights of

survivorship. This means that when one owner dies, all sums in the account will pass to the surviving

owner(s). For a joint account without rights of survivorship, the deceased owner’s interest passes to his

or her estate. A surviving owner’s interest is subject to the Credit Union’s statutory lien for the deceased

owner’s obligations and to any security interest or pledge granted by a deceased owner, even if a

surviving owner did not consent to it.

b. Control of Joint Accounts. Any owner is authorized and deemed to act for any other owner(s) and

may instruct us regarding transactions and other account matters. Each owner guarantees the signature

or authenticated request of any other owner(s). Any owner may withdraw or transfer funds, pledge to

us all or any part of the shares, or stop payment on items without the consent of the other owner(s). We

have no duty to notify any owner(s) about any transaction. We reserve the right to require written

consent of all owners for any change to or termination of an account. If we receive written notice of a

dispute between owners or inconsistent instructions from them, we may suspend or terminate the

account and require a court order or written consent from all owners in order to act.

c. Joint Account Owner Liability. If an item deposited in a joint account is returned unpaid, a joint

account is overdrawn, or if we do not receive ﬁnal payment on a transaction, the owners, jointly and

severally, are liable to us for any returned item, overdraft, or unpaid amount and for any related fees

and charges, regardless of who initiated or beneﬁted from the transaction. If any account owner is

indebted to us, we may enforce our rights against any account of the indebted owner, including all funds

in the joint account, regardless of who contributed the funds.

4. POD/TRUST ACCOUNT DESIGNATIONS — A Payable on Death (POD) account or trust account

designation is an instruction to the Credit Union that an individual or joint account so designated is

payable to the owner(s) during his, her, or their lifetimes and, when the last account owner dies, is

payable to all surviving POD or trust beneﬁciaries/payees. Funds in accounts payable to more than one

surviving beneﬁciary/payee are owned jointly by such beneﬁciaries/payees with rights of survivorship

among the beneﬁciaries/payees. Any POD or trust beneﬁciary/payee designation shall not apply to

Individual Retirement Accounts (IRAs). We are not obligated to notify any beneﬁciary/payee of the

existence of any account nor the vesting of the beneﬁciary/payee’s interest in any account, except as

otherwise provided by law. This paragraph does not apply to an account held on behalf of or in the

name of a trust.

5. ACCOUNTS FOR MINORS — We may require any account established by a minor to be a joint

account with an owner who has reached the age of majority under state law and who shall be jointly

and severally liable to us for any returned item, overdraft, or unpaid amount on such account and for

any related fees and charges. We may pay funds directly to the minor without regard to his or her

minority. Unless a guardian or parent is an account owner, the guardian or parent shall not have any

account access rights. We have no duty to inquire about the use or purpose of any transaction except as

required by applicable law. We will not change the account status when the minor reaches the age of

majority unless the change is authorized in writing by all account owners.

6. UNIFORM TRANSFERS TO MINORS ACCOUNT — A Uniform Transfers to Minors Account (UTMA) is

an individual account created by a custodian who deposits funds as an irrevocable gift to a minor. The

minor to whom the gift is made is the beneﬁciary of the custodial property in the account. The custodian

has possession and control of the account for the exclusive right and beneﬁt of the minor and, barring a

court order otherwise, is the only party authorized to make deposits, withdrawals, or close the account.

We have no duty to inquire about the use or purpose of any transaction except as required by applicable

law. If the custodian dies, we may suspend the account until we receive instructions from any person

authorized by law to withdraw funds or a court order authorizing withdrawals.

7. AGENCY DESIGNATION ON AN ACCOUNT — An agency designation on an account is an instruction to

us that the owner authorizes another person to make transactions as agent for the account owner

regarding the accounts designated. An agent has no ownership interest in the account(s) or credit union

voting rights. We have no duty to inquire about the use or purpose of any transaction made by the

agent except as required by applicable law.

8. DEPOSIT OF FUNDS REQUIREMENTS — Funds may be deposited to any account, in any manner

approved by the Credit Union in accordance with the requirements set forth in the Truth-in-Savings

Disclosure. Deposits made by mail, at night depositories, or at unstaffed facilities are not our

responsibility until we receive them. We reserve the right to refuse or to return any deposit.

a. Endorsements. We may accept transfers, checks, drafts, and other items for deposit into any of your

accounts if they are made payable to, or to the order of, one or more account owners even if they are

not endorsed by all payees. You authorize us to supply missing endorsements of any owners if we

choose. If a check, draft, or item that is payable to two or more persons is ambiguous as to whether it is

payable to either or both, we may process the check, draft, or item as though it is payable to either

person. If an insurance, government, or other check or draft requires an endorsement, we may require

endorsement as set forth on the item. Endorsements must be made on the back of the check or draft

within 1½ inches of the top edge, although we may accept endorsements outside this space. However,

any loss we incur from a delay or processing error resulting from an irregular endorsement or other

markings by you or any prior endorser will be your responsibility. If we offer a remote deposit capture

service and you have been approved to use the service to make deposits to your account, you agree

that, prior to transmitting check or draft images, you will restrictively endorse each original check or

draft in accordance with any other agreement with us that governs this service.

b. Collection of Items. We act only as your agent and we are not responsible for handling items for

deposit or collection beyond the exercise of ordinary care. We are not liable for the loss of an item in

transit or the negligence of any correspondent. Each correspondent will only be liable for its own

negligence. We may send any item for collection. Items drawn on an institution located outside the

United States are handled on a collection basis only. You waive any notice of nonpayment, dishonor, or

protest regarding items we purchase or receive for credit or collection to your account. We reserve the

right to pursue collection of previously dishonored items at any time, including giving a payor ﬁnancial

institution extra time beyond any midnight deadline limits.

c. Restrictive Legends. Some checks and drafts contain restrictive legends or similar limitations on the

front of the item. Examples of restrictive legends include “two signatures required,” “void after 60

days,” and “not valid over $500.00.” We are not liable for payment of any check or draft contrary to a

restrictive legend or other limitation contained in or on the item unless we have speciﬁcally agreed in

writing to the restriction or limitation.

d. Final Payment. All checks, drafts, automated clearinghouse (ACH) transfers or other items credited to

your account are provisional until we receive ﬁnal payment. If ﬁnal payment is not received, we may

charge your account for the amount of such items and impose a returned item fee on your account. Any

collection fees we incur may be charged to your account. We reserve the right to refuse or return any

item or fund transfer.

e. Direct Deposits. We may offer direct deposit services, including preauthorized deposits (e.g., payroll

checks, Social Security or retirement checks, or other government checks) or preauthorized transfers

from other accounts. You must authorize direct deposits or preauthorized transfers by completing a

separate authorization document. You must notify us if you wish to cancel or change a direct deposit or

preauthorized transfer. Any cancellation or change will become effective once we receive notice from

you and have a reasonable period of time to act on your request. If your account is overdrawn, you

authorize us to deduct the amount your account is overdrawn from any deposit, including deposits of

government payments or beneﬁts. If we are required to reimburse the U.S. Government for any beneﬁt

payment directly deposited into your account, we may deduct the amount returned from any of your

accounts, unless prohibited by law.

f. Crediting of Deposits. Deposits will be credited to your account on the day we consider them

received as stated in our Funds Availability Policy Disclosure.

9. ACCOUNT ACCESS

a. Authorized Signature. Your signature on the Account Card, or authentication and approval of your

account, authorizes your account access. We will not be liable for refusing to honor any item or

instruction if we believe the signature is not genuine. If you have authorized the use of a facsimile

signature, we may honor any check or draft that appears to bear your facsimile signature, even if it was

made by an unauthorized person. You authorize us to honor transactions initiated by a third person to

whom you have given your account information, even if you do not authorize a particular transaction.

b. Access Options. You may access your account(s) in any manner we permit including, for example, in

person at one of our branch ofﬁces, at an ATM or point- of-sale device, or by mail, telephone, automatic

transfer, internet access or mobile application. We may return as unpaid any check or draft drawn on a

form we do not provide, and you are responsible for any losses, expenses or fees we incur as a result of

handling such a check or draft. We have the right to review and approve any form of power of attorney

and may restrict account withdrawals or transfers. We may refuse to honor a power of attorney if our

refusal is conducted in accordance with applicable state law.

c. Credit Union Examination. We may disregard any information on any check or draft other than the

signature of the drawer, the amount of the item, and any magnetic encoding. You agree that we do not

fail to exercise ordinary care in paying an item solely because our procedures do not provide for sight

examination of items.

10. FUND TRANSFERS — Fund transfers we permit that are subject to Article 4A of the Uniform

Commercial Code, such as wire transfers, will be subject to such provisions of the Uniform Commercial

Code as enacted by the state where the main ofﬁce of the Credit Union is located, except as otherwise

provided in this Agreement. ACH transfers are subject to rules of the National Automated Clearinghouse

Association (NACHA). We may execute certain requests for fund transfers by Fedwire which are subject

to the Federal Reserve Board’s Regulation J.

a. Authorization for Transfers/Debiting of Accounts. You may make or order fund transfers to or from

your account. We will debit your account for the amount of a fund transfer from your account and will

charge your account for any fees related to the transfer.

b. Right to Refuse to Make Transfers/Limitation of Liability. Unless we agree otherwise in writing, we

reserve the right to refuse to execute any payment order to transfer funds to or from your account. We

are not obligated to execute any payment order to transfer funds out of your account if the amount of

the requested transfer plus applicable fees exceeds the available balance in your account. We are not

liable for errors, delays, interruptions or transmission failures caused by third parties or circumstances

beyond our control including mechanical, electronic or equipment failure. In addition, we will not be

liable for consequential, special, punitive or indirect loss or damage you may incur in connection with

fund transfers to or from your account.

c. No Notice Required. We will not provide you with notice when fund transfers are credited to your

account. You will receive notice of such credits on your account statements. You may contact us to

determine whether a payment has been received.

d. Interest Payments. If we fail to properly execute a payment order and such action results in a delay in

payment to you, we will pay you dividends or interest, whichever applies to your account, for the period

of delay as required by applicable law. You agree that the dividend or interest rate paid to you will be

based on the lowest nominal dividend or interest rate we were paying on any account during that

period.

e. Provisional Credit for ACH Transactions. We may provisionally credit your account for an ACH

transfer before we receive ﬁnal settlement. If we do not receive ﬁnal settlement, we may reverse the

provisional credit or require you to refund us the amount provisionally credited to your account, and the

party originating the transfer will not be considered to have paid you.

f. Payment Order Processing and Cut-off Times. Payment orders we accept will be executed within a

reasonable time of receipt. Unless we have agreed otherwise in writing, a payment order may not

necessarily be executed on the date it is received or on a particular date you specify. Cut-off times may

apply to the receipt, execution and processing of fund transfers, payment orders, cancellations, and

amendments. Fund transfers, payment orders, cancellations, and amendments received after a cut-off

time may be treated as having been received on the next fund transfer business day. Information about

any cut-off times is available upon request. From time to time, we may need to temporarily suspend

processing of a transaction for greater scrutiny or veriﬁcation in accordance with applicable law. This

action may affect settlement or availability of the transaction.

g. Identifying Information. If your payment order identiﬁes the recipient and any ﬁnancial institution by

name and account or other identifying number, the Credit Union and any other ﬁnancial institutions

facilitating the transfer may rely strictly on the account or other identifying number, even if the number

identiﬁes a different person or ﬁnancial institution.

h. Amendments and Cancellations of Payment Orders. Any account owner may amend or cancel a

payment order regardless of whether that person initiated the order. We may refuse requests to amend

or cancel a payment order that we believe will expose the Credit Union to liability or loss. Any request to

amend or cancel a payment order that we accept will be processed within a reasonable time after it is

received. You agree to hold us harmless from and indemnify us for all losses and expenses resulting from

any actual or attempted amendment or cancellation of a payment order.

i. Security Procedures. We may require you to follow a security procedure to execute, amend or cancel

a payment order so that we may verify the authenticity of the order, amendment or cancellation. You

agree that the security procedure established by separate agreement between you and the Credit Union

is commercially reasonable. If you refuse to follow a commercially reasonable security procedure that

we offer, you agree to be bound by any payment order, whether authorized or not, that is issued in your

name and accepted by us in good faith in accordance with the security procedure you choose.

j. Duty to Report Unauthorized or Erroneous Fund Transfers. You must exercise ordinary care to

identify and report unauthorized or erroneous fund transfers on your account. You agree that you will

review your account(s) and periodic statement(s). You further agree you will notify us of any

unauthorized or erroneous transfers within the time frames described in the “Statements” section of

this Agreement.

k. Recording Telephone Requests. You agree that we may record payment order, amendment and

cancellation requests as permitted by applicable law.

l. Remittance Transfers. A “remittance transfer” is an electronic transfer of funds of more than $15.00

which is requested by a sender and sent to a designated recipient in a foreign country by a remittance

transfer provider. If we act as a remittance transfer provider and conduct a remittance transfer(s) on

your behalf, the transaction(s) will be governed by 12 C.F.R. part 1005, subpart B - Requirements for

remittance transfers. Terms applicable to such transactions may vary from those disclosed herein and

will be disclosed to you at the time such services are requested and rendered in accordance with

applicable law.

11. ACCOUNT RATES AND FEES — We pay account earnings and assess fees against your account as set

forth in the Truth-in-Savings Disclosure and Schedule of Fees and Charges. We may change the Truth-in-

Savings Disclosure or Schedule of Fees and Charges at any time and will notify you as required by law.

12. TRANSACTION LIMITATIONS

a. Withdrawal Restrictions. We will pay checks or drafts, permit withdrawals, and make transfers from

the available balance in your account. The availability of funds in your account may be delayed as

described in our Funds Availability Policy Disclosure. We may also pay checks or drafts, permit

withdrawals, and make transfers when you have an insufﬁcient available balance in your account if you

have established an overdraft protection plan or, if you do not have such a plan with us, in accordance

with our overdraft payment policy.

We may refuse to allow a withdrawal in some situations and will advise you accordingly if, for example:

(1) there is a dispute between account owners (unless a court has ordered the Credit Union to allow the

withdrawal); (2) a legal garnishment or attachment is served; (3) the account secures any obligation to

us; (4) required documentation has not been presented; or (5) you fail to repay a credit union loan on

time. We may require you to give written notice of 7 to 60 days before any intended withdrawals.

b. Transfer Limitations. We may limit the dollar amount or the number of transfers from your account.

Please consult your Truth-in-Savings Disclosure or your Electronic Fund Transfers Agreement and

Disclosure.

13. CERTIFICATE ACCOUNTS — Any term share, share certiﬁcate, time deposit or certiﬁcate of deposit

account (certiﬁcate account), whichever we offer as allowed by applicable federal or state law, is subject

to the terms of this Agreement, the Truth-in-Savings Disclosure, the Account Receipt for each account,

and any other documents we provide for the account, the terms of which are incorporated herein by

reference.

14. OVERDRAFTS

a. Payment of Overdrafts. If, on any day, the available balance in your share or deposit account is not

sufﬁcient to pay the full amount of a check, draft, transaction, or other item, plus any applicable fee,

that is posted to your account, we may return the item or pay it, as described below. The Credit Union’s

determination of an insufﬁcient available account balance may be made at any time between

presentation and the Credit Union’s midnight deadline with only one review of the account required.

We do not have to notify you if your account does not have a sufﬁcient available balance in order to pay

an item. Your account may be subject to a fee for each item regardless of whether we pay or return the

item. We may charge a fee each time an item is submitted or resubmitted for payment; therefore, you

may be assessed more than one fee as a result of a returned item and resubmission(s) of the returned

item.

If we offer standard overdraft services, this service allows us to authorize payment for the following

types of transactions regardless of whether your share or deposit account has sufﬁcient funds: (1) share

drafts/checks and other transactions made using your checking account, except as otherwise described

below; (2) automatic bill payments; (3) and ACH transactions. For ATM and one-time debit card

transactions, you must afﬁrmatively consent to such coverage. Without your consent, the Credit Union

may not authorize and pay an ATM or one-time debit card transaction that will result in insufﬁcient

funds in your account. If you have established a service linking your share or deposit account with other

individual or joint accounts, you authorize us to transfer funds from another account of yours to cover

an insufﬁcient item, including transfers from a share or deposit account, an overdraft line-of-credit

account, or other account you so designate. Services and fees for these transactions are shown in the

document the Credit Union uses to capture your afﬁrmative consent and the Schedule of Fees and

Charges. Except as otherwise agreed in writing, if we exercise our right to use our discretion to pay such

items that result in an insufﬁciency of funds in your account, we do not agree to pay them in the future

and may discontinue coverage at any time without notice. If we pay these items or impose a fee that

results in insufﬁcient funds in your account, you agree to pay the insufﬁcient amount, including the fee

assessed by us, in accordance with our standard overdraft services or any other service you may have

authorized with us or, if you do not have such protections with us, in accordance with any overdraft

payment policy we have, as applicable.

b. How Transactions are Posted to Your Account. Basically, there are two types of transactions that

affect your account: credits (deposits of money into your account) and debits (payments out of your

account). It is important to understand how each is applied to your account so that you know how much

money you have and how much is available to you at any given time. This section explains generally how

and when we post transactions to your account.

Credits. Deposits are generally added to your account when we receive them. However, in some

cases when you deposit a check, the full amount of the deposit may not be available to you at

the time of deposit. Please refer to the Funds Availability Policy Disclosure for details regarding

the timing and availability of funds from deposits.

Debits. There are several types of debit transactions. Common debit transactions are generally

described below. Keep in mind that there are many ways transactions are presented for

payment by merchants, and we are not necessarily in control of when transactions are received.

- Checks. When you write a check, it is processed through the Federal Reserve system.

We receive data ﬁ les of cashed checks from the Federal Reserve each day. The checks

drawn on your account are compiled from these data ﬁles and paid each day. We

process the payments in the order that we choose.

- ACH Payments. We receive data ﬁles every day from the Federal Reserve with

Automated Clearing House (ACH) transactions. These include, for example, automatic

bill payments you have authorized. ACH transactions for your account are posted the

order that we choose.

- PIN-Based Debit Card Purchase Transactions. These are purchase transactions using

your debit card for which a merchant may require you to enter your personal

identiﬁcation number (PIN) at the time of sale. They are processed through a PIN debit

network. These transactions are similar to ATM withdrawal transactions because the

money is usually deducted from your account immediately at the time of the

transaction. However, depending on the merchant, a PIN-based transaction may not

be immediately presented for payment.

- Signature-Based Debit Card Purchase Transactions. These are purchase transactions

using your debit card that are processed through a signature-based network. Rather

than entering a PIN, you typically sign for the purchase; however, merchants may not

require your signature for certain transactions. Merchants may seek authorization for

these types of transactions. The authorization request places a hold on funds in your

account when the authorization is completed. The “authorization hold” will reduce

your available balance by the amount authorized but will not affect your actual

balance. The transaction is subsequently processed by the merchant and submitted to

us for payment. This can happen hours or sometimes days after the transaction,

depending on the merchant and its payment processor. These payment requests are

received in real time throughout the day and are posted to your account when they

are received.

The amount of an authorization hold may differ from the actual payment because the

ﬁnal transaction amount may not yet be known to the merchant when you present

your card for payment. For example, if you use your debit card at a restaurant, a hold

will be placed in an amount equal to the bill presented to you; but when the

transaction posts, it will include any tip that you may have added to the bill. This may

also be the case where you present your debit card for payment at gas stations, hotels

and certain other retail establishments. We cannot control how much a merchant asks

us to authorize, or when a merchant submits a transaction for payment.

This is a general description of certain types of transactions. These practices may change, and we

reserve the right to pay items in any order we choose as permitted by law.

c. Understanding Your Account Balance. Your checking account has two kinds of balances: the actual

balance and the available balance. Your actual balance reﬂects the full amount of all deposits to your

account as well as payment transactions that have been posted to your account. It does not reﬂect

checks you have written and are still outstanding or transactions that have been authorized but are still

pending. Your available balance is the amount of money in your account that is available for you to use.

Your available balance is your actual balance less: (1) holds placed on deposits; (2) holds on debit card or

other transactions that have been authorized but are not yet posted; and (3) any other holds, such as

holds related to pledges of account funds and minimum balance requirements or to comply with court

orders. We use your available balance to determine whether there are sufﬁcient funds in your account

to pay items, including checks and drafts, as well as ACH, debit card and other electronic transactions.

Pending transactions and holds placed on your account may reduce your available balance and may

cause your account to become overdrawn regardless of your actual balance. In such cases, subsequent

posting of the pending transactions may further overdraw your account and be subject to additional

fees. You should assume that any item which would overdraw your account based on your available

balance may create an overdraft. You may check your available balance online at www.schoﬁeldfcu.org,

at an ATM, by visiting a credit union branch or by calling us at 808-624-9884.

15. POSTDATED AND STALEDATED CHECKS OR DRAFTS — You agree not to issue any check or draft that

is payable on a future date (postdated). If you do draw or issue a check or draft that is postdated and we

pay it before that date, you agree that we shall have no liability to you for such payment. You agree not

to deposit checks, drafts, or other items before they are properly payable. We are not obligated to pay

any check or draft drawn on your account that is presented more than six months past its date;

however, if the check or draft is paid against your account, we will have no liability for such payment.

16. STOP PAYMENT ORDERS

a. Stop Payment Order Request. Any owner may request a stop payment order on any check or draft

drawn on the owner’s account. To be binding, the order must accurately describe the check or draft,

including the exact account number, check or draft number, and amount of the check or draft. This

exact information is necessary for the Credit Union to identify the check or draft. If we receive incorrect

or incomplete information, we will not be responsible for failing to stop payment on the check or draft.

In addition, we must receive sufﬁcient advance notice of the stop payment order to allow us a

reasonable opportunity to act on it. If we recredit your account after paying a check or draft over a valid

and timely stop payment order, you agree to sign a statement describing the dispute with the payee, to

assign to us all of your rights against the payee or other holders of the check or draft, and to assist us in

any legal action.

Stop payment orders for preauthorized debit transactions from your account are governed by

Regulation E. Please refer to the Electronic Fund Transfers Agreement and Disclosure for rules regarding

stop payments on preauthorized debit transactions.

b. Duration of Order. You may make an oral stop payment order which will lapse within 14 calendar

days unless you conﬁrm it in writing, or in a record if allowed by applicable law, within that time. A

written stop payment order is effective for six months and may be renewed for additional six-month

periods by submitting a renewal request in writing, or in a record if allowed by applicable law, before

the stop payment order then in effect expires. We do not have to notify you when a stop payment order

expires.

c. Liability. Fees for stop payment orders are set forth in the Truth-in-Savings Disclosure or Schedule of

Fees and Charges. You may not stop payment on any certiﬁed check, cashier’s check, teller’s check, or

any other check, draft, or payment guaranteed by us. Although payment of an item may be stopped, you

may remain liable to any item holder, including us. You agree to indemnify and hold the Credit Union

harmless from all costs, including attorney’s fees and all damages or claims related to our refusal to pay

an item, as well as claims of any joint account owner or of any payee or endorsee for failing to stop

payment of an item as a result of incorrect information provided by you.

17. CREDIT UNION LIABILITY — If we do not properly complete a transaction according to this

Agreement, we will be liable for your losses or damages not to exceed the amount of the transaction,

except as otherwise provided by law. We will not be liable if, for example: (1) your account contains an

insufﬁcient available balance for the transaction; (2) circumstances beyond our control prevent the

transaction; (3) your loss is caused by your or another ﬁnancial institution’s negligence; or (4) your

account funds are subject to legal process or other claim. We will not be liable for consequential

damages, except liability for wrongful dishonor. We are not responsible for a check or draft that is paid

by us if we acted in a commercially reasonable manner and exercised ordinary care. We exercise

ordinary care if our actions or nonactions are consistent with applicable state law, Federal Reserve

regulations and operating letters, clearinghouse rules, and general ﬁnancial institution practices

followed in the area we serve. You grant us the right, in making payments of deposited funds, to rely

exclusively on the form of the account and the terms of this Agreement. Any conﬂict regarding what you

and our employees say or write will be resolved by reference to this Agreement.

18. CHECKS OR DRAFTS PRESENTED FOR PAYMENT IN PERSON — We may refuse to accept any check

or draft drawn on your account that is presented for payment in person. Such refusal shall not

constitute a wrongful dishonor of the check or draft, and we shall have no liability for refusing payment.

If we agree to cash a check or draft that is presented for payment in person, we may require the

presenter to pay a fee. Any applicable check or draft cashing fees are stated in the Schedule of Fees and

Charges.

19. REMOTELY CREATED CHECKS OR DRAFTS — For purposes of this paragraph, “account” means a

transaction account, credit account, or any other account on which checks or drafts may be drawn. A

remotely created check or draft is a check or draft created by someone other than the person on whose

account the check or draft is drawn. A remotely created check or draft is generally created by a third

party payee as authorized by the owner of the account on which the check or draft is drawn.

Authorization is usually made over the telephone or through online communication. The owner of the

account does not sign a remotely created check or draft. In place of the owner’s signature, the remotely

created check or draft usually bears a statement that the owner authorized the check or draft or bears

the owner’s printed or typed name. If you authorize a third party to draw a remotely created check or

draft against your account, you may not later revoke or change your authorization. It is your

responsibility to resolve any authorization issues directly with the third party. We are not required to

credit your account and may charge against your account any remotely created check or draft for which

the third party has proof of your authorization.

20. PLEDGE, RIGHT OF OFFSET AND STATUTORY LIEN — Unless prohibited by law, you pledge and grant

as security for all obligations you may have now or in the future, except obligations secured by your

principal residence, all shares and dividends and all deposits and interest, if any, in all accounts you have

with us now and in the future. If you pledge a speciﬁc dollar amount in your account(s) for a loan, we

will freeze the funds in your account(s) to the extent of the outstanding balance of the loan or, if

greater, the amount of the pledge if the loan is a revolving loan. Otherwise, funds in your pledged

account(s) may be withdrawn unless you are in default. You agree we have the right to offset funds in

any of your accounts against the obligation owed to us. Federal or state law (depending upon whether

we have a federal or state charter) gives us a lien on all shares and dividends and all deposits and

interest, if any, in accounts you have with us now and in the future. Except as limited by federal or state

law, the statutory lien gives us the right to apply the balance of all your accounts to any obligation on

which you are in default. After you are in default, we may exercise our statutory lien rights without

further notice to you.

Your pledge and our statutory lien rights will allow us to apply the funds in your account(s) to what

you owe when you are in default, except as limited by federal or state law. If we do not apply or offset

the funds in your account(s) to satisfy your obligation, we may place an administrative freeze on your

account(s) in order to protect our statutory lien rights and may apply or offset the funds in your

account(s) to the amount you owe us at a later time. The statutory lien and your pledge do not apply to

any Individual Retirement Account or any other account that would lose special tax treatment under

federal or state law if given as security. By not enforcing our right to apply or offset funds in your

account(s) to your obligations that are in default, we do not waive our right to enforce these rights at a

later time.

21. LEGAL PROCESS — If any legal action is brought against your account, we may pay out funds

according to the terms of the action or refuse any payout until the dispute is resolved, as permitted by

law. Any expenses or attorney fees we incur responding to legal process may be charged against your

account without notice, unless prohibited by law. Any legal process against your account is subject to

our lien and security interest.

22. ACCOUNT INFORMATION — Upon request, we will give you the name and address of each agency

from which we obtain a credit report regarding your account. We agree not to disclose account

information to third parties except when: (1) it is necessary to complete a transaction; (2) the third party

seeks to verify the existence or condition of your account in accordance with applicable law; (3) such

disclosure complies with the law or a government agency or court order; or (4) you give us written

permission.

23. NOTICES

a. Name or Address Changes. You are responsible for notifying us of any name or address change. The

Credit Union is only required to attempt to communicate with you at the most recent address you have

provided to us. We may require all name and address changes to be provided in writing. If we attempt

to locate you, we may impose a service fee as set forth in the Truth-in-Savings Disclosure or Schedule of

Fees and Charges.

b. Notice of Amendments. Except as prohibited by applicable law, we may change the terms of this

Agreement at any time. We will notify you, in a manner we deem appropriate under the circumstances,

of any changes in terms, rates or fees as required by law. We reserve the right to waive any terms of this

Agreement. Any such waiver shall not affect our right to future enforcement.

c. Effect of Notice. Any written notice you give us is effective when we receive it. Any written notice we

give to you is effective when it is provided electronically or is deposited in the U.S. mail, postage prepaid

and addressed to you at your statement mailing address, and will be effective whether or not received

by you. Notice to any account owner is considered notice to all account owners.

d. Electronic Notices. If you have agreed to receive notices electronically, we may send you notices

electronically and discontinue mailing paper notices to you until you notify us that you wish to reinstate

receiving paper notices.

24. TAXPAYER IDENTIFICATION NUMBER AND BACKUP WITHHOLDING — You agree that we may

withhold taxes from any dividends or interest earned on your account as required by federal, state or

local law or regulations. Your failure to furnish a correct Taxpayer Identiﬁcation Number (TIN) or meet

other requirements may result in backup withholding. If your account is subject to backup withholding,

we must withhold and pay to the Internal Revenue Service a percentage of dividends, interest, and

certain other payments. If you fail to provide your TIN within a reasonable time we may close your

account and return the balance to you, less any applicable service fees.

25. STATEMENTS

a. Contents. If we provide a periodic statement for your account, you will receive a periodic statement

that shows the transactions and activity on your account during the statement period as required by

applicable law. If a periodic statement is provided, you agree that only one statement is necessary for

joint accounts. For share draft or checking accounts, you understand and agree that your original check

or draft, when paid, becomes property of the Credit Union and may not be returned to you, but copies

of the check or draft may be retained by us or by payable-through ﬁnancial institutions and may be

made available upon your request. You understand and agree that statements are made available to you

on the date they are mailed to you or, if you have requested, on the date they are made available to you

electronically. You also understand and agree that checks, drafts, or copies thereof are made available

to you on the date the statement is mailed to you or is provided to you electronically, even if the checks

or drafts do not accompany the statement.

b. Examination. You are responsible for promptly examining each statement upon receiving it and

reporting any irregularities to us. If you fail to report any irregularities such as forged, altered,

unauthorized, unsigned, or otherwise fraudulent items drawn on your account, erroneous payments or

transactions, or other discrepancies that are reﬂected on your statement within 33 days of the date we

sent or otherwise provided the statement to you, we will not be responsible for your loss. We also will

not be liable for any items that are forged or altered in a manner not detectable by a reasonable person,

including the unauthorized use of facsimile signature equipment.

Unauthorized electronic fund transfers governed by Regulation E are subject to different reporting

periods. Please refer to the Electronic Fund Transfers Agreement and Disclosure for reporting

requirements pertaining to electronic fund transfers.

c. Notice to Credit Union. You agree that the Credit Union’s retention of checks or drafts does not alter

or waive your responsibility to examine your statements or the time limit for notifying us of any errors.

The statement will be considered correct for all purposes, and we will not be liable for any payment

made or charge to your account unless you notify us in writing within the above time limit for notifying

us of any errors. If you fail to receive a periodic statement, you agree to notify us within 14 days of the

time you regularly receive a statement.

d. Address. If we mail you a statement, we will send it to the last known address shown in our records. If

you have requested to receive your statement electronically, we will send the statement or notice of

statement availability to the last e-mail address shown in our records.

26. INACTIVE ACCOUNTS — As allowed by applicable law, we may classify your account as inactive or

dormant and assess a fee if you have not made any transactions in your account over a speciﬁed period

of time. The period of inactivity, the fee for servicing an inactive or dormant account, and the minimum

balance required to avoid the service fee, if any, are set forth in our Schedule of Fees and Charges. You

authorize us to transfer funds from another account of yours to cover any service fees, if applicable. To

the extent allowed by law, we reserve the right to transfer the account funds to an account payable or

reserve account and to suspend any further account statements. If a deposit or withdrawal has not been

made on the account and we have had no other sufﬁcient contact with you within the period speciﬁed

by state law, the account will then be presumed to be abandoned. Funds in abandoned accounts will be

reported and remitted in accordance with state law. Once funds have been turned over to the state, we

have no further liability to you for such funds. If you choose to reclaim such funds, you must apply to the

appropriate state agency.

27. SPECIAL ACCOUNT INSTRUCTIONS — You may request that we facilitate certain trust, will, or court-

ordered account arrangements. However, because we do not give legal advice, we cannot counsel you

as to which account arrangement most appropriately meets the speciﬁc requirements of your trust, will,

or court order. If you ask us to follow any instructions that we believe might expose us to claims,

lawsuits, expenses, liabilities, or damages, whether directly or indirectly, we may refuse to follow your

instructions or may require you to indemnify us or post a bond or provide us with other protection. We

may require that account changes requested by you, or any account owner, such as adding or closing an

account or service, be evidenced by a signed Account Change Card or other document which evidences

a change to an account and accepted by us.

28. TERMINATION OF ACCOUNT — We may terminate your account at any time without notice to you

or may require you to close your account and apply for a new account if, for example: (1) there is a

change in owners or authorized signers; (2) there has been a forgery or fraud reported or committed

involving your account; (3) there is a dispute as to the ownership of the account or of the funds in the

account; (4) any checks or drafts are lost or stolen; (5) there are excessive returned unpaid items not

covered by an overdraft protection plan;(6) there has been any misrepresentation or any other abuse of

any of your accounts; (7) we reasonably deem it necessary to prevent a loss to us; or (8) as otherwise

permitted by law. You may terminate an individual account by giving written notice. We reserve the

right to require the consent of all owners to terminate a joint account. We are not responsible for

payment of any check, draft, withdrawal, transaction, or other item after your account is terminated;

however, if we pay an item after termination, you agree to reimburse us.

29. TERMINATION OF MEMBERSHIP; LIMITATION OF SERVICES — You may terminate your membership

by giving us written notice or by withdrawing your minimum required membership share, if any, and

closing all of your accounts. You may be expelled from membership for any reason allowed by applicable

law. We may restrict account access and services without notice to you when your account is being

misused; you have demonstrated conduct which is abusive in nature; as outlined in any policy we have

adopted regarding restricting services; or as otherwise permitted by law.

30. DEATH OF ACCOUNT OWNER — We may honor all transfer orders, withdrawals, deposits, and other

transactions on an account until we know of a member’s death. Even with such knowledge, we may

continue to pay checks or drafts or honor other payments or transfer orders authorized by the deceased

member for a period of ten days after the member’s death unless we receive instructions from any

person claiming an interest in the account to stop payment on the checks, drafts, or other items. We

may require anyone claiming a deceased owner’s account funds to indemnify us for any losses resulting

from our honoring that claim. This Agreement will be binding upon any heirs or legal representatives of

any account owner.

31. UNLAWFUL INTERNET GAMBLING AND OTHER ILLEGAL ACTIVITIES — You agree that you are not

engaged in unlawful internet gambling or any other illegal activity. You agree that you will not use any of

your accounts, access devices or services for unlawful internet gambling or other illegal activities. We

may terminate your account relationship if you engage in unlawful internet gambling or other illegal

activities.

32. SEVERABILITY — If a court holds any portion of this Agreement to be invalid or unenforceable, the

remainder of this Agreement shall not be invalid or unenforceable and will continue in full force and

effect. All headings are intended for reference only and are not to be construed as part of the

Agreement.

33. ENFORCEMENT — You are liable to us for any losses, costs, or expenses we incur resulting from your

failure to follow this Agreement. You authorize us to deduct any such losses, costs, or expenses from

your account without prior notice to you. If we bring a legal action to collect any amount due under or

to enforce this Agreement, we shall be entitled, subject to applicable law, to payment of reasonable

attorney’s fees and costs, including fees on any appeal, bankruptcy proceedings, and any post judgment

collection actions.

34. GOVERNING LAW — This Agreement is governed by the following, as amended from time to time:

the Credit Union’s bylaws; local clearinghouse and other payment system rules; federal laws and

regulations, including applicable principles of contract law; and the laws and regulations of the state of

Hawaii. As permitted by applicable law, you agree that any legal action regarding this Agreement shall

be brought in the county in which the Credit Union is located.

35. NEGATIVE INFORMATION NOTICE — We may report information about your loan, share, or deposit

accounts to credit bureaus. Late payments, missed payments, or other defaults on your accounts may

be reﬂected in your credit report.

36. MONITORING AND RECORDING COMMUNICATIONS — We may monitor and record

communications between you and us, including telephone conversations, electronic messages,

electronic records, or other data transmissions that affect your accounts or other products and services.

Except as otherwise prohibited by applicable law, you agree we may monitor and record such

communications without your approval or further notice to you.

37. CONSENT TO CONTACT — By signing or otherwise authenticating an Account Card, you agree we

and/or our third-party providers, including debt collectors, may contact you by telephone or text

message at any telephone number associated with your account, including wireless telephone numbers

(i.e. cell phone numbers) which could result in charges to you, in order to service your account or collect

any amounts owed to us, excluding any contacts for advertising and telemarketing purposes as

prescribed by law. You further agree methods of contact may include use of pre-recorded or artiﬁcial

voice messages, and/or use of an automatic dialing device. You may withdraw the consent to be

contacted on your wireless telephone number(s) at any time by providing written notice to us at

P.O. Box 860669, Wahiawa, HI 96786-0669 or by any other reasonable means. If you have provided a

wireless telephone number(s) on or in connection with any account, you represent and agree you are

the wireless subscriber or customary user with respect to the wireless telephone number(s) provided

and have the authority to give this consent. Furthermore, you agree to notify us of any change to the

wireless telephone number(s) which you have provided to us.

In order to help mitigate harm to you and your account, we may contact you on any telephone number

associated with your account, including a wireless telephone number (i.e. cell phone number), to deliver

to you any messages related to suspected or actual fraudulent activity on your account, data security

breaches or identity theft following a data breach, money transfers or any other exigent messages

permitted by applicable law. These contacts will not contain any telemarketing, cross-marketing,

solicitation, advertising, or debt collection message of any kind. The contacts will be concise and limited

in frequency as required by law. You will have an opportunity to opt-out of such communications at the

time of delivery.