Share Certificate Application

1. Rate Information. The Dividend Rate and Annual Percentage Yield are fixed and will be in effect for the term of the account. The Annual Percentage Yield is based on an assumption that dividends will remain on deposit until maturity.
2. Nature of Dividends. Dividends are paid from current income and available earnings after required transfers to reserves at the end of a dividend period.
3. Compounding and Crediting. For Share Certificates with a term of 1 year or less dividends will be compounded and credited at maturity; the dividend period is at maturity. For Share Certificates with a term of more than 1 year, dividends will be compounded and credited annually; the dividend period is annually.
4. Accrual of Dividends. Dividends will begin to accrue on noncash deposits (e.g., checks) on the business day you make the deposit to your account. If you close your account before accrued dividends are credited, you will not receive the accrued dividends.
5. Balance Information. If you do not maintain the minimum balance, you will not earn the stated Annual Percentage Yield. Dividends are calculated using the Average Daily Balance method, in which dividends are calculated by applying a periodic rate to the balance in the account each day.
6. Certificate Account Features
a. Account Limitations. After your account is opened, you may not make additional deposits to a Share Certificate account. Any withdrawal from a Share Certificate account will be treated as a withdrawal of the entire balance. The certificate will be closed, and any remaining balance will be transferred to a Savings account and will earn the rate for that account.
b. Maturity. Your Share Certificate account will mature on the maturity date set forth on your Account Receipt or Renewal Notice.
c. Early Withdrawal Penalty. We may impose a penalty if you withdraw any of the principal of your Share Certificate account before the maturity date.
i. Amount of Penalty. The penalty will equal 30 days’ dividends on the entire balance, whether earned or not, if the term of the certificate is 3 months or less, and 60 days’ dividends on the entire balance, whether earned or not, if the term of the certificate is greater than 3 months.
ii. How the Penalty Works. The penalty is calculated as a forfeiture of dividends earned or to be earned on the account. If earned dividends are insufficient or have previously been withdrawn, the penalty will be deducted from the principal balance.
iii. Exceptions to Early Withdrawal Penalties. At our option, we may pay the account before maturity without imposing an early withdrawal penalty under the following circumstances: when an account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction.
d. Renewal Policy. Share Certificate accounts are automatically renewable accounts. Automatically renewable accounts will renew for another term upon maturity. You have a grace period of seven (7) calendar days after maturity in which to withdraw funds in the account without being charged an early withdrawal penalty.
e. Nontransferable/Nonnegotiable. Your account is nontransferable and nonnegotiable. The funds in your account may not be pledged to secure any obligation of an owner, except obligations with the Credit Union.