As of 11-21-24
I Binding Arbitration Consent & Agreement
II Truth-in-Savings Agreement & Disclosure (Reg. DD)
III Electronic Services Agreement & Disclosure (Reg. E)
IV Funds Availability Policy (Reg. CC)
V Funds Transfer Agreement & Notice
VI Member Conduct & Limitation of Services Policy
VII Telephone Solicitation & Do Not Call Policy
VIII Your Liability for Overdrafts
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In this Member Account Agreement and Disclosure (hereinafter referred to as “Agreement”), the words “you,” “your,” and “yours” shall mean and refer to each and all of those (whether one or more persons) who are subject to this Agreement as a result of signing a Membership Application for one or more deposit accounts with us. The words “we,” “us,” “our,” and “Credit Union” shall mean and refer to Los Angeles Federal Credit Union. The terms, conditions and information contained in the Membership Application, and all amendments thereto, are by this reference hereby incorporated in their entirety into this Agreement and become an integral part of this Agreement. This Agreement governs your accounts with us and related services, and replaces all prior agreements with the Credit Union regarding them. By signing the Credit Union’s Membership Application for your account or using your account or any service we provide, you will be considered to have received and agreed to this Agreement.
You should retain a copy of this Agreement (and any information that the Credit Union provides you regarding changes to this Agreement) for as long as you maintain your account with us.
CONTACT INFORMATION
Throughout this disclosure, contacting or notifying the Credit Union refers to the following:
Address: P.O. Box 53032, Los Angeles, CA 90053-0032
Telephone: (877) MY LAFCU (695-2328)
Fax: (818) 242-5812
Email: memberservices@LAFCU.org
Website: www.LAFCU.org
Branch Hours & Cities: Visit: https://www.lafcu.org/branches-ATMs
Debit Card Help: (888) 918-7820 (after our business hours)
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, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.
YOU ARE ELIGIBLE TO JOIN Los Angeles Federal Credit Union if you work for the City of Los Angeles. You are also eligible to join if you live in the Greater LA area (the counties of Imperial, Kern, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara, and Ventura), and are a member of the Los Angeles Charitable Association, a 501(c)3 non-profit charity.
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PART I: ARBITRATION CONSENT & AGREEMENT
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BINDING ARBITRATION CONSENT & AGREEMENT
You and we agree to attempt to informally settle any disputes arising out of, affecting, or relating to your accounts or your relationship with us. If that cannot be done, you and we agree that any claim or dispute between us (“Claim”) that is filed or initiated after the Effective Date (as defined below) of this Binding Arbitration Consent and Agreement, even if the Claim arose prior to the Effective Date of this Binding Arbitration Consent and Agreement, that arises out of or relates to this Agreement, your accounts or your use of our products or services shall, at the election of either you or us, be resolved by BINDING ARBITRATION administered by the American Arbitration Association (“AAA”) in accordance with its applicable rules and procedures for consumer disputes (“Rules”), whether such Claim is in contract, tort, statute, or otherwise. The Rules can be obtained on the AAA website free of charge at www.ADR.org; or, a copy of the Rules can be obtained at any Credit Union branch upon request. Either you or we may elect to resolve a particular Claim through arbitration, even if one of us has already initiated litigation in court related to the Claim by: (a) making written demand for arbitration upon the other party, (b) initiating arbitration against the other party, or (c) filing a motion to compel arbitration in court. AS A RESULT, IF EITHER YOU OR WE ELECT TO RESOLVE A PARTICULAR CLAIM THROUGH ARBITRATION, YOU WILL GIVE UP YOUR RIGHT TO GO TO COURT TO ASSERT OR DEFEND YOUR RIGHTS UNDER THIS AGREEMENT (EXCEPT FOR CLAIMS BROUGHT INDIVIDUALLY WITHIN SMALL CLAIMS COURT JURISDICTION, SO LONG AS THE CLAIM REMAINS IN SMALL CLAIMS COURT). This Binding Arbitration Consent and Agreement will be interpreted and enforced in accordance with the Federal Arbitration Act in Title 9 of the U.S. Code to the fullest extent possible, notwithstanding any federal or state law or regulation to the contrary, regardless of the origin or nature of the Claim. You acknowledge that this Binding Arbitration Consent and Agreement does not prevent you from submitting any issue relating to your accounts for review or consideration by a federal, state, or local governmental agency or entity, nor does it prevent such agency or entity seeking relief on your behalf.
By consenting to BINDING ARBITRATION, you understand and agree with the following terms:
• SELECTION OF ARBITRATOR: If either you or we elect to resolve a Claim through binding arbitration, your rights will be determined by a neutral arbitrator and NOT a judge or jury, in accordance with all applicable laws and Rules. The neutral arbitrator will be selected in accordance with the Rules, and must have experience and knowledge in financial transactions. In the event of a conflict between the Rules and this Binding Arbitration Consent and Agreement, this Binding Arbitration Consent and Agreement will supersede the conflicting Rules only to the extent of the inconsistency. If AAA is unavailable to resolve the Claim, and if you and we do not agree on a substitute, then you can select the appropriate forum for the Claim.
• EFFECTIVE DATE: This Binding Arbitration Consent and Agreement is effective upon the 61st day after we provide this Binding Arbitration Consent and Agreement to you (“Effective Date”), unless you opt-out in accordance with the requirements of the RIGHT TO OPT-OUT provision below.
• CLAIMS ARISING PRIOR TO EFFECTIVE DATE: THIS BINDING ARBITRATION CONSENT AND AGREEMENT APPLIES TO ALL CLAIMS THAT ARE FILED OR INITIATED AFTER THE EFFECTIVE DATE, EVEN IF THE CLAIM ARISES OUT OF, AFFECTS, OR RELATES TO CONDUCT THAT OCCURRED PRIOR TO THE EFFECTIVE DATE. If a Claim is filed or initiated prior to the Effective Date, this Binding Arbitration Consent and Agreement will not apply to such Claim.
• ARBITRATION PROCEEDINGS: Arbitration proceedings provide you a fair hearing, but the arbitration procedures are simpler and more limited than rules applicable in court. Discovery will be available for non-privileged information to the fullest extent permitted under the Rules. Any claims that can be asserted in court and defenses that would apply to a Claim if it was brought in a court of law will apply in any arbitration proceeding between us, including defenses based on the expiration of the applicable statute of limitations or otherwise relating to the timeliness of the initiation of the Claim, and the commencement of an arbitration proceeding under this Binding Arbitration Consent and Agreement will be deemed the commencement of an action for such purposes. Arbitration decisions are as enforceable as any court order and are subject to very limited review by a court and cannot be appealed. Arbitrators can award the same remedies including damages, public injunctive relief under the California Unfair Competition Law and Consumer Legal Remedies Act, and other remedies that a court can award. Any determination as to whether this Binding Arbitration Consent and Agreement is valid or enforceable in part or in its entirety will be made solely by the arbitrator, including without limitation any issues relating to whether a Claim is subject to arbitration.
• CLASS ACTION WAIVER: ANY ARBITRATION OF A CLAIM WILL BE ON AN INDIVIDUAL BASIS. YOU UNDERSTAND AND AGREE THAT YOU ARE WAIVING THE RIGHT TO PARTICIPATE AS A CLASS REPRESENTATIVE OR CLASS MEMBER IN A CLASS ACTION LAWSUIT.
• LOCATION: The place of arbitration shall be within 50 miles of your residence at the time the arbitration is commenced.
• COSTS: You understand we will pay for any filing, administration, and arbitrator fees as imposed on you by AAA. However, you will be responsible for your attorneys’ fees, unless you prevail on the merits of your Claim in arbitration and attorney’s fees are awarded to you.
• ATTORNEYS’ FEES: If you prevail on the merits of your Claim in arbitration, and attorney’s fees are awarded to you, we will pay your attorneys’ fees. You will not be required to pay our attorneys’ fees if we prevail.
• SEVERABILITY: In the event that the CLASS ACTION WAIVER in this Binding Arbitration Consent and Agreement is found to be unenforceable for any reason in relation to a Claim involving class action allegations, the remainder of this Binding Arbitration Consent and Agreement will be unenforceable. If any provision in this Binding Arbitration Consent and Agreement, other than the CLASS ACTION WAIVER, is found to be unenforceable, the remaining provisions will remain enforceable.
• SURVIVAL: This Binding Arbitration Consent and Agreement will survive termination of the Agreement.
• RIGHT OF OPT-OUT: You have the right to opt-out of this Binding Arbitration Consent and Agreement, provided that you notify us of your intent to opt-out within 60 days after we provide you this Binding Arbitration Consent and Agreement. Your opt-out is only effective if you notify us in writing within such 60 day time period. If you fail to opt-out within this 60 day time period, you will be deemed to have provided your consent to the resolution of your Claims through binding arbitration. In the event you opt-out of this Binding Arbitration Consent and Agreement, such opt-out will not affect other terms and conditions of your Agreement.
FOR MORE DETAILS or if you have questions, you may call us or visit a branch. If you have questions about AAA procedures, you should check AAA’s website, www.ADR.org, OR call AAA at (800) 778-7879. You understand that any debt or loan obligation you may have with us that is subject to the Federal Truth in Lending Act, 15 USC 1601 et seq., is not subject to this Binding Arbitration Consent and Agreement.
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PART II: TRUTH-IN-SAVINGS AGREEMENT & DISCLOSURE (REG. DD)
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SECTION 1. PAYMENT OF DIVIDENDS
The frequency and conditions upon which dividends are paid on all accounts are in accordance with the Bylaws of this Credit Union, the Federal Credit Union Act, and the Truth-in-Savings Act and Regulations. Dividends are paid from current income and available earnings after required transfers to reserves at the end of a dividend period.
The dividend rate and Annual Percentage Yield (APY) may change at the discretion of the Credit Union. Current rate information and minimum balance requirements to open and to earn the APY for these accounts are set forth in the Loans & Savings Rates brochure available at the Credit Union or on the Credit Union website.
Compounding and Crediting for all Accounts. For all dividend-bearing accounts, dividends will be earned daily for each day on which your balance equals or exceeds the minimum daily balance requirement for your account.
For all dividend bearing accounts (except certificate accounts and Holiday Accounts), dividends will be compounded daily and will be credited quarterly. For these accounts, the dividend period is quarterly. For example, the beginning date of the first dividend period of the calendar year is January 1, and the ending date of such dividend period is March 31. All other dividend periods follow this same pattern of dates. The dividend declaration date follows the ending date of a dividend period, and for this example is March 31.
For Holiday Accounts, the dividend period is monthly and dividends will be compounded daily and credited monthly.
For Certificate Accounts, the dividend period can be monthly, quarterly, or at maturity depending upon the option that you selected at the time your certificate account was established or, if you have not indicated a preference, the dividend period and the crediting frequency will be quarterly and the compounding frequency will be daily. The option that you have selected will be indicated in the Loans & Savings Rates brochure. You may also elect to have any such dividends disbursed by such means as: (a) having them transferred to your savings or Free Checking/Connect accounts with us; or (b) having them kept on deposit in your certificate account.
Balance Computation Method: For dividend bearing accounts (except certificate and money market accounts), dividends are calculated by the average daily balance method which applies a daily periodic rate to the average daily balance in the account for the period. The average daily balance is calculated by adding the balance in the account for each day of the period and dividing that figure by the number of days in the period.
Accrual on Non-Cash Dividends: Dividends will begin to accrue on the business day you deposit non-cash items (e.g., checks) to your account if deposited before the close of business. If you close any of your dividend-earning Accounts before dividends are paid, you will receive the accrued dividends through the date that the Account is closed.
SECTION 2. TERMS AND CONDITIONS
TERMS & CONDITIONS APPLICABLE TO ALL ACCOUNTS:
1. You must be and remain a member in good standing to maintain any account. In order to become a member, you must purchase one share in the Credit Union. The par value of a share in this Credit Union is $5. If you fail to maintain the minimum one share of $5 in your primary Share Savings Account after the six (6) month period immediately following the date your Share Savings Account is established, we may, at our discretion, close your Share Savings Account. Further, we may terminate your membership at the end of a dividend period if you do not increase the balance to at least the par value of one (1) share within six (6) months of the reduction.
2. Our delay in enforcing any of the terms and conditions of this Agreement does not serve as a waiver and will not prohibit us from enforcing such terms and conditions at a later date.
3. We reserve the right to change any provision of or establish new provisions to this Agreement upon thirty (30) days written notice.
4.We may refuse to follow any of your instructions, accept any deposit, or process any transaction, that in our sole judgment are illegal, fraudulent, inconsistent with our policies (or those of any of our third party processors) or would expose or risk us to exposure to potential liability. Alternatively, we may require adequate security or invoke other security measures to protect us from all losses and expenses incurred if we follow your instructions. You agree to reimburse us for any damages, losses, liabilities, expenses, and fees (including, but not limited to, reasonable attorneys’ fees) that we incur in connection with your account if we take an action in accordance with your, or what purports to be your, oral, written, or electronic instructions.
5. We reserve the right to refuse to open any account, to provide any service in connection with an account, or to accept additional deposits to an existing account.
6. All payees listed on a check must sign the check that is deposited or cashed, and must be a joint owner on the account, present a valid government-issued identification or have their endorsements guaranteed by another financial institution. All multiple party checks without proper identification are subject to being returned. Notwithstanding the foregoing, you authorize us, in our discretion, to accept checks, drafts and other items for deposit into any of your accounts if they are made payable to, or to the order of, any one or more joint owners on the account, whether or not they are endorsed by all payees. You authorize us to supply missing endorsements of any owners on any item that we take for collection, payment, or deposit to your account. You also authorize us to collect any unendorsed item that is made payable to you without first supplying your endorsement, provided the item was deposited to your account. If you deposit items which bear the endorsement of more than one person or persons that are not known to us or that require endorsement of more than one payee, we may refuse the item or require all endorsers to be present, have valid identification, or to have their endorsements guaranteed before we accept the item.
7. You authorize us to accept deposits to your account at any time, from any party, made in any manner, without questioning the authority of the person making the deposit, and to give cash back to any authorized signer(s) or designated agent on any check payable to any one or more of the account owners, whether or not it is endorsed by you. The Credit Union may also refuse to accept all or any part of any deposit.
8. You understand and agree that we use automated means to process checks and other items written on or deposited to your account. This means that we do not individually examine all of your items to determine if the item is properly completed, signed and endorsed or to determine if it contains any information other than what is encoded in the Magnetic Ink Character Recognition (MICR) line at the bottom of the check, draft or item which contains your account number, amount of check and check number. Although we may manually review checks or other items drawn on your account, you understand and agree reasonable commercial standards do not require us to do so. Our use of automated means to process checks and other items prevents us from inspecting or looking for special instructions or “restrictive legends” on checks (e.g., “Void after 6 months,” “Void over $50,” “Payment in Full,” and the like), whether on the front or back, in any form or format. For this reason, we are not required to honor any restrictive legend placed on checks you write unless we have agreed in writing to the restrictions. If you cash or deposit an item or write a check with such notation, you agree that it applies only between you and the payee or maker. The notation will have no effect on us, and you agree to accept responsibility for payment of the item. You agree to indemnify and hold us harmless from any claim or alleged loss of any maker or payee involving such notations, whether you are the maker or payee or the funds are otherwise deposited into an account in which you have an interest.
9. We may refuse to accept for deposit or collection an item that is payable in currency other than U.S. dollars or an item that is not drawn on a financial institution chartered in the U.S. (each, a “non-U.S. item”). If we accept a non-U.S. item for deposit or collection, you accept all risks associated with foreign currency fluctuation (exchange rate risk) and with any late return of the item. You agree that we may use our current buying and selling rate, as applicable when processing a non-U.S. item and we may recover from any account you maintain with us any loss incurred by us as a result of our processing such an item for you. We reserve the right to place longer holds on non-U.S. items than the time frames specified in our Funds Availability Policy.
10. We have the right to charge back to or otherwise debit any account you maintain with us for any deposited item that is returned (and assess any associated fees and to reverse or recover any associated interest that may have accrued), even if you have made withdrawals against it. This right of charge back or debit is not affected by the expiration of any applicable midnight deadline, provided we do not have actual knowledge that such deadline has expired or, having such knowledge, we conclude that: (1) the deposited item is returned in accordance with the laws governing your account or rule (including a clearing house rule); and/or (2) we have received a breach of warranty claim in connection with the deposited item.
We have the right to pursue collection of such deposited item, even to the extent of allowing the payor bank to hold the deposited item beyond the midnight deadline in an attempt to recover payment. We may, without notice to you, redeposit a returned deposited item and represent it for payment by any means (including electronic means), unless we have received instructions from you not to redeposit such deposited item. We will have no liability for taking or failing to take any action to recover payment of a returned deposited item.
If one of your deposited items is returned with a claim that there is a breach of warranty (for example, a claim that it bears a forged endorsement or is altered in any way), we may debit your account for the amount of the item (plus any associated fees) and pay the amount to the claiming party. We are under no duty to question the truth of the facts that are being asserted, to assess the timeliness of the claim, or to assert any defense.
We need not give you any prior notification of our actions with respect to the claim. You agree to immediately repay any overdrafts. We may create substitute checks from your deposited items to facilitate the forward collection of such items. You agree to indemnify and hold us harmless from and against any and all claims, damages, losses, liabilities, expenses, and fees (including reasonable attorneys’ fees) arising out of or in any way connected with such substitute check, including without limitation, any claim based on the image quality of such substitute check.
11. You acknowledge and agree that we may, at our option, create and retain electronic copies of original account records and any other records, and thereafter dispose of the originals. You further agree that electronically scanned and stored images of records will have the same effect as the original records.
12. We act only as a collecting agent for any items deposited to your account, and we do not assume any responsibility beyond the exercise of ordinary care. Any deposit that we accept and credit to your account is provisional and subject to our receipt of final payment. If final payment is not received, we reserve the right to charge your account for the amount of the deposit and impose a Return Check fee as set forth in the Fees brochure. We are not responsible for any deposit sent by mail or made at an unstaffed facility (for example, an automated teller machine that is not at a branch) until we actually receive the deposited item or money. We are not liable for the negligence or default of any correspondent or for loss in transit, and each correspondent will only be liable for its own negligence. You agree to indemnify and hold us harmless from and against any and all claims, damages, losses, liabilities, expenses, and fees (including reasonable attorneys’ fees) arising out of or relating to an item placed for collection.
13. If a deposit or other credit is made in error to your account that you are not entitled to (whether by check, cash, automated clearing house transfer, wire transfer or otherwise), you understand that we may debit your account for the amount of the erroneous deposit, and may do so without notice to you, regardless of when the original deposit took place. If you withdraw any or all of the funds erroneously deposited to your account, you agree that you are obligated to reimburse us for the amount of the erroneous deposit or credit, and any costs and fees as stated in this Agreement and the Fees brochure.
14. We will mail, send electronically, or otherwise make available to you, your periodic statements, notices and other information regarding your account (collectively “account-related information”) to the postal or electronic address of the owner as reflected in our records for your account. If there is more than one owner on your account, we may send account-related information to any one of them. If your account is in a combined statement, your statement will be sent to the address associated with the savings account in the combined statement.
Mailed account-related information will be deemed to have been delivered the second business day following the day it was mailed. Account-related information made available electronically will be deemed to have been delivered when we make it available to you.
You will exercise reasonable care and promptness in examining your statements. You must promptly notify us of, and reimburse us for, any erroneous credit to your account. Within sixty (60) days after we mail or otherwise make statements available to you, you must notify us of any claim for credit or refund due to an unauthorized transaction. For purposes of this Agreement (other than Part III, which has its own provisions relating to unauthorized transactions), an unauthorized transaction is a transaction that was not authorized by you, including but not limited to an erroneous or unauthorized debit. However, if you provided someone authorization to transact on your account, any transaction by that person is considered authorized even if he or she exceeded any authority you provided. An unauthorized transaction includes but is not limited to an erroneous or unauthorized debit. It might include a missing signature, an unauthorized signature, or an alteration, or otherwise a transaction that was not authorized by you. If you fail to uphold these duties, you understand and agree that you are precluded from asserting the error or unauthorized payment against us if: (1) we suffer a loss on the item because of your failure; or (2) we pay on another item presented by the same wrongdoer if the payment was made before you properly notified us.
If you have failed to examine your statement and report any unauthorized transaction within sixty (60) days after your statement or the item(s) has/have been made available to you, you cannot recover from us, even if we failed to exercise ordinary care in paying the item(s).
15.Unless otherwise prohibited by the laws governing your account, if two or more account-related information documents are returned, or, in the case of online statement email notifications the email notice is returned undeliverable, we may classify your account as “inactive.” This means we may discontinue sending and may destroy account-related information sent to you until you provide a valid postal or electronic address to us.
16. Any written notice you give to us is effective when it is actually received by us. Any written notice we give to you is effective on the date we deposit such notice in the U.S. Mail, postage prepaid, and addressed to you at your statement mailing address, or, if you have agreed to receive notices from us in an electronic format, any notice we give to you is effective on the date we make the notice available to you in electronic format. Notice to any one account owner is considered notice to all owners of the account.
17. We agree to investigate any transaction you have reported to us as unauthorized (a “claim of unauthorized transaction”). You agree to: (1) submit your claim of unauthorized transaction in writing to us by completing a declaration under penalty of perjury describing your claim of unauthorized transaction (in an affidavit form approved by us, if so requested); (2) file a police report; (3) complete and return to us any documents requested of you; and (4) in all respects, cooperate fully with us in our investigation of your claim of unauthorized transaction.
We reserve the right to reverse any credit made to your account if you fail to sign such documents, cooperate fully with our investigation of your claim of unauthorized transaction or if we determine that the transaction that gave rise to your claim of unauthorized transaction was proper.
18. We or you may close any of your account(s) at any time. You understand and agree, however, that our authority may not be changed or terminated except by written notice to us, which will not affect prior transactions. If an account is closed, we may send the collected balance on deposit in your account by regular mail to your most recent address shown in our records. Items presented for payment after the account is closed may be dishonored. We may require you to close your account and apply for a new account if: (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 funds in your account; (4) any checks are lost or stolen; or (5) we deem it necessary in order to prevent a loss to us.
19. If there is a dispute between any person and/or private or government organization over your account or the funds in any of your accounts, or we are uncertain who is entitled to access an account or the funds in any of your accounts, including, but not limited to, disputes between joint owners, a payee, a beneficiary of a trust account or a payable on death account, or any other person claiming an interest to funds in your account, you agree that we may, without liability to you and in our sole and absolute discretion, take one or more of the following actions: (1) restrict the account and deny access to all until such time as the conflicting claims are resolved to our satisfaction; (2) close the account and send the funds to the owner or owners of the account, according to our records, at the statement mailing address; (3) interplead all or any portion of the funds from an account into an appropriate court for resolution; or (4) restrict access to the account until our receipt of either written instructions as to the distribution of funds signed by all affected parties or an order from a court of proper jurisdiction authorizing or directing us to distribute the funds. We may charge your account for expenses (including attorneys’ fees and expenses) and fees we incur. In addition, if we receive written notice from any account owner that withdrawals, in accordance with the terms of the account, should not be permitted, we may refuse, without liability, to pay any sums on deposit pending determination of the rights of the owners. Such written notice(s) will become effective only upon receipt and after we have had a reasonable opportunity to act thereon.
20. We reserve the right to close any account(s) and terminate your membership should we discover that any of your accounts with us have been deliberately mishandled, abused or manipulated by you to our detriment, or to the detriment of any other accountholder. “Manipulation,” “mishandle,” or “abuse” includes, but is not limited to, making unauthorized withdrawals or other transactions, kiting and repeated patterns of transactions which have no apparent business reason other than to take advantage of Regulation CC hold periods and/or “interest float” to our detriment or cause the Credit Union a loss.
21. In order for us to service your account or to collect any amounts you owe, you agree that we and our third party service providers may from time to time make calls and/or send text messages to you at any telephone number(s) associated with your account or that you have provided to us through communications, including wireless telephone numbers that could result in charges to you. The manner in which these calls or text messages are made to you may include, but is not limited to, the use of prerecorded/artificial voice messages and/or an automatic telephone dialing system. You further agree that, in order for us to service your account or to collect any amounts you owe, we may send e-mails to you at any e-mail address you provide to us. You may revoke this consent at any time by notifying us in writing at Los Angeles Federal Credit Union.
22. You acknowledge that we may be obligated to report cases of actual or suspected financial abuse of elders or dependent care adults. If we suspect such financial abuse, you understand and agree that, in addition to reporting such abuse as may be required under applicable law, we have the right to restrict access to the account, refuse to complete transactions on the account, or to take any other action(s) that we deem appropriate under the circumstances. You agree to indemnify and hold us harmless from and against any and all claims, damages, losses, liabilities, expenses, and fees (including reasonable attorneys’ fees), arising out of or related to any action or inaction related to the matters described in this paragraph.
23. We may recognize the signature of anyone who signed a Membership Application as authorized to transact business on that account. Any payment applied to your account by us in good faith and in reliance on the terms and conditions of this Agreement and/or the Membership Application will be valid and discharge us from liability. Without limitation to the foregoing, we may honor checks drawn against your account by authorized signers, even if the checks are made payable to them, to cash or for deposit to their personal accounts. We have no duty to investigate or question withdrawals or the application of funds. In addition, if we receive written notice from any account owner that withdrawals, in accordance with the terms of the account, should not be permitted, we may refuse, without liability, to pay any sums on deposit pending determination of the rights of the owners. Such written notice(s) will become effective only upon receipt and after we have had a reasonable opportunity to act thereon; however, our release of amounts to an account owner in contravention to any instructions from another account owner shall not in result in liability for us.
24. We reserve the right to require you to give not less than seven (7) and up to sixty (60) days written notice of your intention to withdraw funds from any account except Free Checking/Connect accounts.
25. We may rely solely on our records to determine the form of ownership of your account. We may presume that any person named in addition to you in our records for your account owns the funds in your account with you as a joint owner, unless our records indicate that the person has some other relationship to the account. Ownership for all accounts will be established and determined by the most recent Membership Application or other document(s) evidencing such account(s). A different form of ownership may be established by executing a new Membership Application and a new account number will be assigned.
26. You are required to keep us informed of your current address. You agree to notify us promptly of any change of address or a legal name change. You may notify us in person at our office or by sending a written and signed notice to Los Angeles Federal Credit Union. In the event that you fail to do this, a charge may be made to your account for the actual cost of a necessary locator service paid to a person or business normally engaged in providing such service and incurred in determining your address. This charge will be set forth in the Fees brochure.
27. You agree to notify us immediately of the death or court declared incompetence of any owner of your account. You agree to inform each owner of your account of the obligation to notify us of such an event as well. If you die or are declared legally incompetent, we can continue to accept and collect items deposited to your account until we have actual knowledge of your death or adjudication of incompetency and have a reasonable opportunity to act.
28. All non-cash deposits will be credited subject to final payment on the day of deposit. Your right to withdraw the funds represented by certain checks or other items you deposit may be delayed for several days. You will be notified if your right to withdraw funds will be delayed. Please refer to the Funds Availability Policy in this Agreement for further details.
29. You agree that we will not be responsible for any damages you incur in the event you deposit an item with us which is subsequently returned unpaid by the paying bank and that return is “late” due to markings on the back of the item caused by you or a prior endorser.
30. You authorize us to accept and pay any check without regard to the date of the check. We are under no obligation to pay a check which is presented more than six (6) months after its date, but we may do so at our discretion and charge your account without liability, even if the presentation occurs after the expiration of a stop payment order or notice of postdated change. You agree that we are not required to identify stale dated checks or seek your permission to pay them. We may assess a special handling charge upon receipt of any such item in accordance with our Fees brochure.
31. All accounts are subject to our Fees brochure, which accompanies this Agreement and is incorporated by this reference. We will debit such charges against any account you own (including accounts on which you are a joint owner) except your IRA without prior notice to you. Only fees related to an IRA will be deducted from an IRA. If sufficient funds are not available, the charges are payable on demand and, for Free Checking/Connect accounts, will be treated as an overdraft.
32. If you do not conduct a transaction on your account (i.e., a withdrawal, deposit, or transfer to or from your account, other than an automated transaction) for 730 consecutive days, we may classify it as an “inactive” account. We will notify you in writing at your last known address if your account is classified as “inactive.” We may charge a monthly Inactive Account Fee as set forth in the Fees brochure until you initiate a transaction. Once you initiate a transaction, either in person or in writing, we will reactivate your account. We will not be responsible for any reasonable delay in reactivating your account.
33. State law establishes procedures under which unclaimed property must be surrendered to the state. In the State of California, funds in your account are considered unclaimed if a period of three (3) years has elapsed since the last time you:
a. Increased or decreased the amount of funds on deposit with us or presented an appropriate record for crediting of dividends or cashed a dividend check from any of your accounts with us; or
b. Corresponded in writing or electronically with us concerning the funds on deposit; or
c. Otherwise indicated an interest in the funds on deposit as evidenced by a memorandum on file with us.
The funds in your deposit account will not be surrendered to the state, however, if, during the previous three (3) years, you have owned another deposit account (or individual retirement or similar account) with us and, with respect to that deposit account, you have done any of the acts described in paragraphs (a), (b), or (c) above (or, with respect to an individual retirement or similar account, you have increased or decreased the principal, accepted payment of principal or income, or corresponded electronically or in writing concerning the property or otherwise indicated an interest), and, with regard to the funds in the deposit account that would otherwise be surrendered to the state, we have “communicated” (i.e., sent account statements or statements of interest paid for federal and state income tax purposes) electronically or in writing with you at the address to which communications regarding the other deposit account are regularly sent.
We may charge a fee for mailing you a notice regarding your unclaimed property as set forth in our Fees brochure. To recover funds turned over to the state, you must file a claim with the state. Once funds are surrendered to the state, we no longer have any liability or responsibility with respect to the funds.
34. Our relationship with you concerning your account is that of debtor and creditor; no fiduciary, quasi-fiduciary, or special relationship exists between us and you at any time.
35. For the safety of both staff and members, the Credit Union does not keep large amounts of cash at branch locations. Arrangements for large cash withdrawals may be made with the Branch Manager at the branch location of our choice. Large cash withdrawal requests may require up to three (3) business days advance notice to process. You understand and agree that you will be responsible for all fees that may be assessed by a third party on the Credit Union in connection with your request (e.g. cash delivery charges). In addition, you may be asked to sign a form releasing us from any liability.
36. We agree to retain and furnish to you, if requested, photocopies of certain records pertaining to your account and that these records will be available to you for the time period required by law. You agree to pay applicable fees as listed in our Fees brochure.
37. You understand and agree that we must comply if we are served with any notice of garnishment or of attachment, tax levy, withholding order, injunction, restraining order, search warrant, government agency request for information, forfeiture, seizure, subpoena, or other legal process relating to your account that we know or otherwise believe in good faith is valid, whether served in person, by mail, or by electronic notification, at any Credit Union branch. You direct us not to contest any such notice of legal process and understand that we are under no obligation to notify you of the legal process and will not notify you if prohibited by law. We may charge a legal processing fee, as set forth in our Fees brochure, and we may assess this fee against any account you maintain with us, including the account that is the subject of the legal process. You understand and agree that if a subpoena or legal process requires us to release information about an owner on an account, we must comply with such request and the information released pursuant to such subpoena or legal process may include information about other owners on the account, even if their information was not expressly requested by the subpoena or legal process. If we are not fully reimbursed for our record research, photocopying, and handling costs by the party that served any legal process, we may charge such costs to your account. You understand and agree that funds we hold or set aside in response to legal process will not earn dividends. You agree to indemnify, defend, and hold us harmless from all actions, claims, liabilities, losses, costs, and damages associated with our compliance with any process that we know or otherwise believe in good faith to be valid.
38. You understand and agree that you are not permitted to place a stop payment on a cashier’s and/or a Credit Union official check unless the cashier’s check or Credit Union official check is lost, stolen or destroyed. In the event that a cashier’s check or Credit Union official check is lost, stolen or destroyed, in order to effectuate a stop payment, you must execute and deliver to us a written Declaration of Loss and Claim for Reimbursement (“Declaration of Loss”) and/or affidavit in a form acceptable to us and in time for us to have a reasonable time to act on it. You further understand and agree that the Declaration of Loss is not immediately enforceable upon your submission. Specifically, you understand and agree that, pursuant to the California Uniform Commercial Code, we will not process your stop payment request until the later of (1) the time the Declaration of Loss form is properly delivered to us by you, or (2) the 90th day following the date of the cashier’s check or official check. We may, however, in our sole and absolute discretion, process your stop payment request sooner. You agree to indemnify and hold us harmless from and against any and all claims, damages, losses, liabilities, expenses, and fees (including reasonable attorneys’ fees) arising out of or relating to our attempt to, or stopping payment on, such cashier’s check or official check.
39. You authorize us to gather whatever credit, Free Checking/Connect account and employment information we consider appropriate from time to time. You understand that this will assist us, for example, in determining your initial and ongoing eligibility for your account and/or in connection with making future credit opportunities available to you. You authorize us to give information concerning our experiences with you to others.
40. It is your responsibility to protect the account numbers and electronic access devices (e.g., a debit card) we provide you for your account(s). You agree not to discuss, compare or share information about your account number(s) with anyone unless you are willing to give them full use of your money. If you provide your access device to another person (a family member or friend, for example) in connection with granting authority to that person to conduct funds transfers, and that person then exceeds that authority, you are liable for the transfers unless we have been notified that transfers by that person are no longer authorized sufficient time prior to the transfers or transactions.
Your account number can also be used to electronically withdraw money from your account. For example, if you provide your account number to an online merchant to purchase a service or merchandise, funds can be electronically withdrawn from your account.
You must also take precaution in safeguarding your blank checks. Notify us immediately if you believe your checks have been lost or stolen.
You agree that if we offer you services appropriate for your account to help identify and limit fraud or other unauthorized transactions against your account, and you decline those services, you will be responsible for any fraudulent or unauthorized transactions which could have been prevented by the services we offered.
41. To join our Credit Union, in addition to providing us with your name, residential address, phone number and date of birth, we will require you to provide us with current government issued picture identification and a Social Security Number (SSN) or Employer Identification Number (EIN) (generically referred to as a Taxpayer Identification Number or TIN). We will further require you to certify (confirm) for IRS reporting purposes that the SSN or EIN matches the name and address, and indicate whether you are currently subject to backup withholding and whether you are a U.S. citizen or U.S. person. If the IRS indicates that there is a problem with the name and number provided by you for the account or otherwise notifies us, your account may become subject to backup withholding, which will require us to withhold and pay a portion of the dividends, interest or other payment to the IRS.
Upon the death of the primary owner, we must be provided with the estate’s or successor’s TIN or we may either refuse to pay interest earned on the account since the date of the death or withhold a portion of the interest that has been earned on the account since the date of the death.
42. We may, without prior notice and when permitted by law, exercise our right of setoff against any of the funds in any of your accounts against any debt (whether or not matured, due, payable, in default or accelerated) or obligation that you owe us, now or in the future, by any of you having the right of withdrawal.
This right of setoff does not apply if prohibited by law. For example, we will not exercise our right of setoff: (1) against an Individual Retirement Account (IRA) or similar tax-deferred account, or (2) if the debt is created by a consumer credit transaction under a credit card plan (but this does not affect our rights under any consensual security interest). We will not be liable for the dishonor of any check when the dishonor occurs because we set off a debt against your account. You agree to indemnify and hold us harmless from and against any and all claims, damages, losses, liabilities, expenses, and fees (including reasonable attorneys’ fees) arising out of or relating to the exercise of our right of setoff.
We will also have the right to place an administrative hold on such funds pending setoff. We may apply all funds in a joint account to satisfy a debt owed to us by any one or more of the joint owners. In addition, we may, after the death of any account owner, setoff against a joint account or an account with payable-on-death beneficiaries the debts and obligations of the deceased account owner, up to the full amount in the account at the time of the account owner’s death. If any account owner is indebted to the Credit Union such that the Credit Union has a lien against an account of that owner, the Credit Union may enforce its rights against the funds in any such account in which you have an ownership interest or the right to withdraw funds, regardless of who contributed the funds to the account. Any of you may pledge all or any part of your shares as collateral for any loan or loans with us, and such pledge shall survive after your death and shall be superior to the rights of any other account owner.
Moreover, you knowingly consent and expressly agree that the application of an offset of funds in any account includes the offset of government benefits (such as Social Security and other public benefit funds) deposited in your account to the maximum extent permitted by applicable state and federal law.
43. You may conduct transactions on your Credit Union account(s) at CO-OP Shared Branching locations. All transactions conducted at a CO-OP Shared Branching location are subject to CO-OP’s operating procedures, policies, and fees. Funds deposited at CO-OP Shared Branching locations may not be available for immediate withdrawal. Check holds are the same as for similar checks deposited at a Credit Union proprietary branch; please refer to our Funds Availability Policy. Check holds cannot be removed by CO-OP Shared Branching personnel. Transactions at CO-OP Shared Branching locations are subject to this Agreement and are subject to host credit union verification. Certain transactions at CO-OP Shared Branching locations may be subject to our fee(s) as stated on the current Fees brochure.
44. Member accounts in this Credit Union are federally insured by the National Credit Union Share Insurance Fund.
45. An action or proceeding by you to enforce an obligation, duty, or right arising under this Agreement or by law with respect to your account must be commenced within one (1) year after the cause of action accrues.
46.You agree to indemnify, defend, and hold us harmless from and against any and all claims, demands, actions, costs, losses, liability, expenses and fees (including, without limitation reasonable attorneys’ fees, collection costs, skip-tracing fees, and outside services fees) which we incur by acting in accordance with this Agreement or as a result of your failure to abide by its terms.
47. Your account will be governed by California law to the extent that California law is not inconsistent with controlling federal law. However, California’s choice of law rules will not be applied if that would result in the application of non-California law.
48. If you choose to appoint an agent to act on your behalf pursuant to a power of attorney (“POA”), we may rely on instructions provided by the agent and will have no liability or responsibility to verify the transactions. The POA must be properly executed, facially valid under California law and the form of appointment must be acceptable to us. We have the right to request further documentation or information if we deem necessary or appropriate. In accordance with the terms of the POA, the agent you designate to act on your behalf will be authorized to transact business on your account(s) pursuant to the terms of such POA.
Notwithstanding the foregoing, we reserve the right to contact you as the principal under the POA, to verify your intent, prior to acting under the authority of the POA. You further agree that unless prohibited by law, we may refuse, with or without cause, to accept or otherwise act under a POA, which you grant to others.
If we choose to accept the POA, you understand and agree that we may act under the terms of such POA and to the extent permitted by law, revocation of the POA will not become effective until we have received written notification thereof. You agree to indemnify and hold us harmless for any claims that may arise against us because of our reliance on a POA.
We are not liable for any transactions by an agent for a deceased or incompetent account owner, unless we have written notice provided in accordance with applicable law that you, as the principal under the POA are deceased, have revoked the powers of the agent, or you are adjudicated totally or partially incapacitated by a court of competent jurisdiction, and we have had time to act on that notice.
49. You agree to pay our costs of collection, including reasonable attorneys’ fees and court costs, with regard to any check drawn on us by you or any item you deposit with us that causes us to incur a loss.
50. You agree that your telephone and other communications with us may be monitored and recorded to improve member service and security.
51. You understand that you may elect from time to time to use Credit Union or other parties’ social media tools and sources; that there is no claim of privacy or privilege regarding information you share or information discernible from such use or sharing; and the use of such information by us does not violate your privacy or other rights.
52. You will be in default if any obligation to which You are a party with the Credit Union is in default. You will also be in default if Your ability to repay us is materially reduced by a change in Your employment, an increase in Your obligations, bankruptcy or insolvency proceedings involving You, Your death (for loans, and lines of credit only) or if the value of our security interest materially declines. You will be in default if You fail to abide by this agreement or You make any false or misleading statements in any credit application or update of credit information. If You are in default, we have the right to demand immediate payment of You full account balance if You default, subject to our giving You any notice required by law. To the extent permitted by law You will also be required to pay our collection expenses, including court costs and reasonable attorneys’ fees plus any fees incurred as a result of bankruptcy.
53. YOU UNDERSTAND AND AGREE THAT WE WILL NOT BE LIABLE FOR ANY INCIDENTAL, CONSEQUENTIAL, SPECIAL, INDIRECT OR PUNITIVE DAMAGES IN ANY CLAIM OR ACTION ARISING FROM THIS AGREEMENT, REGARDLESS OF WHETHER YOU HAVE ADVISED US OF THE POSSIBILITY THAT YOU MAY INCUR SUCH DAMAGES.
ACCOUNT OWNERSHIP & BENEFICIARY DESIGNATION:
These rules apply to this account depending on the form of ownership and beneficiary designation, if any, specified on the account records. We reserve the right to refuse some forms of ownership on any or all of our accounts. We may also refuse to open an account for any reason. We make no representations as to the appropriateness or effect of the ownership and beneficiary designation, except as they determine to whom we pay the account funds. You may open an account either by yourself, referred to as an “individual account,” or with another person or persons, referred to as a “multiple-party account” or a “joint account.” For purposes of this Agreement, we will use the term “joint account.”
1. Individual Account. An individual account is an account owned by you alone, which you as the account owner use during your lifetime.
2. Joint Account. A joint account is an account owned by two or more persons. All joint owners agree with each other and with us that all sums now paid in or hereafter paid in by any one or all account owner(s), including all dividends thereon, if any, are and will be owned by all account owner(s) jointly and equally regardless of their net contributions with a right of survivorship and will be subject to withdrawal or receipt by any of the account owner(s) or the survivor(s) of any of the account owner(s). We are not obligated to inquire as to the source of funds received for deposit to a joint account or to inquire as to the proposed use of any sums withdrawn from the account for the purpose of establishing net contributions.
Being a joint owner of a member’s account does not constitute Credit Union membership for the joint owner. Joint owners may be non-members. However, any non-member joint owner who uses an account, requests or uses a service and signs a Membership Application, agrees to the terms, responsibilities and accompanying liabilities of this Agreement. A right of survivorship arising from the express terms of a joint account cannot be changed by a will.
Unless otherwise agreed in writing between you and us, each joint owner, without the consent of any other joint owner, may, and hereby is authorized by every other joint owner, to conduct any transaction permitted under this Agreement, including without limitation: (1) to withdraw all or any part of the account funds; (2) to pledge the account funds as collateral to us for any obligation, whether that of one or more joint owners; (3) to endorse and deposit checks and other items payable to any joint owner; (4) to give stop payment orders on any check or item, whether drawn by that joint owner, or not; (5) to consent to or revoke consent to payment of service charges on overdrafts that result from ATM transactions or one-time debit card transactions under the Courtesy Pay Service; and (6) to close the account, with the disbursement of account proceeds as instructed by the joint owner. While any owner may initiate, change, add or close a joint account and/or a service acting alone, we may require all joint owners to consent in writing to the addition or removal of any owner to or from the account. All owners agree that we have no duty to notify the owners of the account of any transaction, initiation, change, addition or closure of an account or service by any owner acting alone.
All account owners, jointly and severally, are liable for all transactions, initiations, changes, additions or closure of an account or service, and for any charges, fees, losses or liabilities incurred for any transaction, initiation, change, addition or closure of an account or service regardless of which owner conducted or benefited from the transaction, initiation, change, addition or closure. If any owner owes us money for any reason, we may enforce our rights against all funds in any account on which that person is an owner, regardless of which owner deposited the funds in the account.
3. Payable-on-Death Designation. A payable-on-death (POD) account designation is an instruction to the Credit Union that an account so designated is payable to the owner or owners during their lifetime, and upon the death of the last account owner, payable first to us to the extent of any outstanding matured or unmatured debts owed to us by you, and second, to your designated POD payee(s). If the account is a joint account, all sums are payable to one or more account owner(s) during their lives and on the death of all of them, first to us to the extent of any outstanding matured or unmatured debts owed to us by any of you, and second, to one or more POD payees then surviving in equal and undivided shares. Accounts payable to more than one surviving beneficiary are owned jointly by such beneficiaries without rights of survivorship and disbursement will be made in equal shares to each of the beneficiaries. Any POD designation will not apply to Individual Retirement Accounts (IRAs) which will be governed by a separate beneficiary designation. The Credit Union does not have any obligation whatsoever to notify any beneficiary of the existence of any account or the vesting of the beneficiary’s interest in any account. You understand that it is your responsibility (and not ours) to inform any person or organization that he, she or it is a POD beneficiary on your account(s). If a POD beneficiary on the account dies before you, it is your responsibility to notify us and change the account accordingly.
4. Rights at Death.
• Individual Account Without Payable-on-Death Designation. Upon your death, the funds in the account will go to your estate and can be claimed by your legal representative or claimant subject to the terms of this Agreement. You understand that it is your responsibility (and not ours) to inform your legal representative(s) about your account(s) with us.
• Individual Account With Payable-on-Death Designation. Upon your death, the POD beneficiary will be entitled to the funds in the account (subject to the terms of this Agreement) upon proof of your death and the POD beneficiary’s identification. If you designate more than one POD beneficiary on the account, each will be entitled to his or her (or its) equal share of the funds in the account, which will be determined by dividing the amount of the funds in the account by the number of POD beneficiaries designated on the account, and will own those funds without right of survivorship.
• Joint Account Without Payable-on-Death Designation. When one owner dies, his or her interest in the account and the funds in the account are owned by the surviving owner or owners of the account, subject to the terms of this Agreement. Upon the death of the final owner the funds in the account belong to that owner’s estate and can be claimed by that owner’s legal representative or claimant subject to the terms of this Agreement. You understand that it is your responsibility (and not ours) to inform your legal representative(s) about your account(s) with us.
• Joint Account With Payable-on-Death Designation. Upon the final owner’s death, the POD beneficiary will be entitled to the funds in the account (subject to the terms of this Agreement) upon proof of death and the POD beneficiary’s identification. If you designate more than one POD beneficiary on the account, each will be entitled to his or her (or its) equal share of the funds in the account, which will be determined by dividing the amount of the funds in the account by the number of POD beneficiaries designated on the account, and will own those funds without right of survivorship.
For joint accounts, a surviving owner’s ownership interest is subject to the Credit Union’s right of setoff 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.
TERMS & CONDITIONS APPLICABLE TO CALIFORNIA UNIFORM TRANSFERS TO MINORS’ ACT ACCOUNTS:
1. The transferor/custodian is opening an account as custodian for the minor named on the Transfers to Minors signature card (“UTMA Account Agreement”) under the California Uniform Transfers to Minors Act. The transfer of money to the minor named on the UTMA Account Agreement, which transfer will be deemed to include all dividends and any future deposits or other additions thereto, is irrevocable and is made in accordance with and to include all provisions of the California Uniform Transfers to Minors Act now in effect or hereinafter amended.
2. You acknowledge that by signing the UTMA Account Agreement, you have received the funds deposited to the account as custodian for the minor named therein under the California Uniform Transfers to Minors Act and you agree to the applicable terms and conditions set forth in this Agreement as well as the terms and conditions of the UTMA Account Agreement. You acknowledge and agree that neither the donor of the funds nor the custodian is entitled to the use or benefit of the funds, except for the benefit of the minor as allowed by the California Uniform Transfers to Minors Act. You also acknowledge and agree that we have no duty whatsoever to monitor or insure that the acts of the custodian (or successor custodian) are for the minor’s benefit.
3. For this type of account, the minor’s Social Security Number/Tax Identification Number is used for the Backup Withholding Certification.
4. Funds in an UTMA may not be pledged as security for any loan(s).
5. The successor custodian named on the UTMA Account Agreement will serve if you should be unable to act as custodian because you resign, die, or become legally incapacitated.
6. Custodial accounts are not subject to the Multiple Party Accounts law.
7. You, as custodian, agree to indemnify and hold us harmless from and against any and all claims, damages, losses, liabilities, expenses, and fees (including reasonable attorneys’ fees) we may suffer or incur arising out of any action or claim by any beneficiary with respect to the authority or actions taken by you in handling or dealing with the account.
8. Upon the minor reaching the age of majority (age 18) or the age stipulated in any applicable court order, you as custodian, have the responsibility of transferring the money in the account to the minor or to the minor’s estate. You agree to indemnify and hold us harmless for any failure to transfer the money in the account to the minor or the minor’s estate upon the minor reaching the age of eighteen (18).
TERMS & CONDITIONS APPLICABLE TO TRUST ACCOUNTS:
1. You may open an account to hold the funds of your trust and be named as trustee on our Trustee’s Account Agreement and Certification of Trust. A person named as a trustee on the Trustee’s Account Agreement and Certification of Trust has the same rights, responsibilities and liabilities as an owner of an account under this Agreement to open, initiate, change, add or close an account or service. Each trustee understands that any trustee acting alone may initiate, change, add or close the account and/or a service, and that his or her signature on the Trustee’s Account Agreement and Certification of Trust or continued use of an account or service confirms his or her agreement to any later initiation, change, addition or closure of an account and/or service by any other trustee on the account. While any trustee may initiate, change, add or close the account and/or a service acting alone, we may require all trustees to consent in writing to the addition or removal of any trustee to or from the account. All trustees agree that we have no duty to notify the trustees of the account of any transaction, initiation, change, addition or closure of an account or service by any trustee acting alone.
2. We may require you to provide us with a notarized trust certification confirming your power as a trustee prior to opening the account. We may require additional documentation as necessary or appropriate, under applicable law, prior to opening a Trust account.
3. We are not required to know, understand, interpret, or enforce the terms of your written trust instrument.
4. You acknowledge that the account is governed by the applicable terms and conditions set forth in this Agreement and by the terms and conditions set forth in the Trustee’s Account Agreement and Certification of Trust that you will be asked to sign when the account is opened.
5. Trust accounts are not subject to the Multiple Party Accounts law.
TERMS & CONDITIONS APPLICABLE TO FIDUCIARY ACCOUNTS:
1. Accounts may be opened by a person acting in a fiduciary capacity. A fiduciary is someone who is appointed to act on behalf of and for the benefit of another. This account may be opened and maintained by a person or persons named as a trustee under a written trust agreement or as executors, administrators, conservators, or guardians under court orders. By the authority vested in you as a fiduciary, you, acting individually or jointly, are authorized and empowered to transact business of any character in connection with this account. Your authority will continue in force until written notice to the contrary is received by us.
2. If the account is opened as a court-ordered blocked account, you understand and agree that you will file with the court a written receipt including an agreement with us that the funds in the account, including any dividends, may not be withdrawn or pledged except upon court order.
3. Funds in a fiduciary account may not be pledged as security for any loan(s).
4. Fiduciary accounts are not subject to the Multiple Party Accounts law.
TERMS & CONDITIONS APPLICABLE TO SOLE PROPRIETORSHIP ACCOUNTS:
1. If you request to open a sole proprietorship account with us, you affirm that you are the sole proprietor of the sole proprietorship named on the Membership Application. We may pay out funds with your signature. We may accept and/or endorse checks or other items made payable to you or the sole proprietorship named on the Membership Application, which we receive for deposit.
2. Funds in a sole proprietorship account may not be pledged as security for any loan(s).
3. Sole proprietorship accounts are not subject to the Multiple Party Accounts law.
ABOUT OUR SAVINGS ACCOUNTS
Los Angeles Federal Credit Union’s savings accounts let you deposit your money in a savings account and withdraw your money at any time (with the exception of Individual Retirement Accounts, Holiday Accounts, and Certificate Accounts). Our savings (share savings) accounts are our Share Savings Accounts, Health Savings Accounts, Emergency Savings Accounts, Holiday Accounts, Money Market Savings and Online Money Market Savings Accounts, Share Certificate Accounts, Starter Certificate Accounts, Jumbo Share Certificate Accounts, Senior Share Certificate Accounts, Senior Jumbo Share Certificate Accounts, and Traditional, Roth, and Educational Individual Retirement Share Certificate Accounts.
1. Rate Information. Dividends rates and annual percentage yields may change monthly as determined by the Credit Union Board of Directors.
2. Account Transfer Limitations. On all savings accounts, we will allow you to make up to six (6) pre-authorized, automatic, telephonic, audio response or online banking transfers to another of your accounts or to the account of any other person or organization during each statement period. No more than three (3) of the six (6) transfers may be made by check, draft, debit card (if applicable), or similar order to a third party. Your limit of six (6) pre-authorized transfers includes those transactions where you order us to pay a person or organization from your account including Automated Clearing House (ACH) transactions. The date we use to determine the number of transactions is the date a transaction is posted to your account, rather than the date you initiate the transaction. If you exceed these limitations in any calendar month, we can refuse or reverse the transfer, close your account, and charge a fee as stated in the Fees brochure. Transactions that are not covered by these limitations include (1) transfers from your account to pay a loan with us, and (2) transfers to your other accounts with us or withdrawals by check mailed directly to you, if the transfer or withdrawal is conducted in person, by mail or at an ATM.
TERMS & CONDITIONS APPLICABLE TO SHARE SAVINGS ACCOUNTS:
1. A Share Savings Account is our primary savings account which is required to be established by every member.
2. The minimum deposit required to open a Share Savings Account is $5. Except for minor accounts, beginning six (6) months after the date your Share Savings Account is established, you must maintain a minimum daily balance of $50 between your savings and Free Checking/Connect accounts, to avoid a fee set forth on the Loans & Savings Rates brochure.
3. You must maintain the minimum daily balance set forth on the Loans & Savings Rates brochure to obtain the disclosed Annual Percentage Yield (APY) and to avoid closure.
4. These accounts are subject to a tiered variable rate. Please refer to the Loans & Savings Rates brochure for the current dividend rate and corresponding APY.
5. There are no monthly service fees for this account.
6. You must be under age twenty-four to be eligible to open a Starter Share Certificate Account.
7. For an Emergency Savings account, balances up to $500 earns a different APR (Annual Percentage Rate) than balances between $501 to $999 (see our “Loans & Savings Rates” brochure), balances $1,000 and over earns the same rate are our Regular Share Savings account, the account requires the accountholder to sign up for online statements, and make a minimum $25 monthly Direct Deposit, Payroll Deduction, or Automatic Transfer into the account.
TERMS & CONDITIONS APPLICABLE TO HEALTH SAVINGS ACCOUNTS (HSA):
1. A Health Savings Account is a tax-advantaged medical savings account which can be used for reimbursement for medical expenses. The account owner is solely responsible for making sure that all account contributions are within the limits set by applicable tax laws and regulations that the aggregate contribution per tax year will not exceed the maximum amount allowed.
2. The minimum deposit required to open a Health Savings Account is $50. You must maintain a minimum average daily balance of $2,500 in this account each day to obtain the APY set forth on the Loans & Savings Rates brochure.
3. These accounts are subject to a tiered variable rate. Please refer to the Loans & Savings Rates brochure for the current dividend rate and corresponding APY.
4. You must have funds in this account to withdraw funds. This account is not eligible for Courtesy Pay and may not be used for overdraft protection. Funds in this account cannot be used as collateral for any loans.
5. There are no monthly service fees for this account.
TERMS & CONDITIONS APPLICABLE TO MONEY MARKET SAVINGS & ONLINE MONEY MARKET SAVINGS ACCOUNTS:
1. The minimum deposit required to open these accounts is $2,500. You must maintain a minimum average daily balance of $2,500 in these accounts each day to obtain the APY set forth in the Loans & Savings Rates brochure.
2. These accounts are subject to a tiered variable rate. Please refer to the Loans & Savings Rates brochure for the current dividend rate and corresponding APY.
3. Funds in a Money Market Account may not be pledged as security for any loan(s).
4. No minimum balance requirements apply to this account in order to avoid the imposition of a monthly service fee.
TERMS & CONDITIONS APPLICABLE TO HOLIDAY ACCOUNTS:
1. Holiday Accounts provide our members with an easy way to save for their holiday expenses.
2. A Holiday Account may be opened at any time. Holiday Account deposits may be made in any manner, including payroll deduction.
3. The minimum deposit required to open a Holiday Account is $10.
4. You must maintain a minimum average daily balance of $50 each day to obtain the APY set forth on the Loans & Savings Rates brochure.
5. An early withdrawal service fee applies to this account. Please refer to our Fees brochure.
6. All funds on deposit in this account will automatically be transferred to your Credit Union savings or Free Checking/Connect account at the end of the first week of November of each year. Any other withdrawals on this account may result in the immediate closure of your account and imposition of the fee set forth in the Fees brochure, as well as forfeiture of accrued dividends. Withdrawals may be made between November 1 and December 25 without being assessed a fee.
7. A withdrawal prior to the annual disbursement date stated above will result in closure of this account, and accrued dividends will be forfeited. Any balance in the account at the time of such withdrawal will be transferred to your Share Savings Account.
8. Funds in a Holiday Account may not be pledged as security for any loan(s).
9. Funds in a Holiday Account may not be used as an overdraft source for any Free Checking/Connect account.
10. These accounts are subject to a tiered variable rate. Please refer to the Loans & Savings Rates brochure for the current dividend rate and corresponding APY.
TERMS & CONDITIONS APPLICABLE TO ALL SHARE CERTIFICATE ACCOUNTS (INCLUDING IRA SHARE CERTIFICATE ACCOUNTS):
1. Other than our IRA Share Certificate Accounts, our Share Certificate Accounts are fixed-rate accounts and are non-negotiable and non-transferable. A Share Certificate Account is subject to the applicable terms and conditions set forth in this Agreement as well as the terms and conditions set forth in the Share Certificate Agreement and Disclosure, which will be provided to you in accordance with applicable law. Our Share Certificate Accounts are our Share Certificate Account, Starter Certificate Account, Jumbo Share Certificate Account, Senior Share Certificate Account, Senior Jumbo Share Certificate Account, and our Traditional, Roth, and Educational IRA Share Certificate Accounts.
2. You must maintain a minimum daily balance in your account to obtain the APY set forth in the Loans & Savings Rates brochure.
3. Your account will mature after the applicable period of time set forth in the Loans & Savings Rates brochure.
4. Except as otherwise set forth in this Agreement, we will assess an early withdrawal penalty if you withdraw any of the principal in the account before the maturity date. The amount of the penalty will equal ninety (90) days of dividends on the account for accounts with a term of one (1) year or less and 180 days of dividends on the account for accounts with a term greater than one (1) year. Any such penalties will be waived for withdrawals incident to the death of the member/owner of the account.
5. You may withdraw credited dividends; however, the disclosed APY is based upon an assumption that dividends will remain in the account until maturity. A withdrawal will reduce earnings.
6. At our option, your account will renew automatically upon maturity. You will have a ten (10) day grace period after maturity during which time you may make withdrawals from and deposits into your account without penalty. In any event, you will be notified of the renewal status of your account prior to its maturity date.
TERMS & CONDITIONS APPLICABLE TO SHARE CERTIFICATE ACCOUNTS:
1. The minimum deposit required to open a Share Certificate Account is $1,000. You must maintain a minimum daily balance of $1,000 in your account each day to obtain the APY set forth on the Loans & Savings Rates brochure.
2. These accounts are subject to a fixed rate. Please refer to the Loans & Savings Rates brochure for the dividend rate & corresponding APY.
3. For accounts with terms of twelve (12) months or less, once your account is established, you may make deposits to your account, and such deposit cannot exceed the lesser of the amount of your account opening balance. You may also make one (1) withdrawal of principal (without penalty), in an amount not to exceed $10,000, provided you maintain a balance equal to the minimum balance required to open this account. For terms to maturity greater than twelve (12) months, once your account is established, you may make deposits to your account, and such deposits cannot exceed the lesser of the amount of your account opening balance, and all withdrawals of principal are subject to a penalty.
4. There are no monthly service fees for this account.
TERMS & CONDITIONS APPLICABLE TO STARTER CERTIFICATE ACCOUNTS:
1. The minimum deposit required to open a Starter Certificate Account is $100. You must maintain a minimum daily balance of $100 in your account each day to obtain the APY set forth on the Loans & Savings Rates brochure.
2. These accounts are subject to a fixed rate. Please refer to the Loans & Savings Rates brochure for the dividend rate and corresponding APY.
3. Once the account is established, you may make deposits to your account in an amount of $50 or more, provided that the deposit does not exceed $10,000. You may also make one (1) withdrawal of principal (without penalty), in an amount not to exceed $10,000, provided you maintain a balance equal to the minimum balance required to open this account.
4. There are no monthly service fees for this account.
TERMS & CONDITIONS APPLICABLE TO JUMBO SHARE CERTIFICATE ACCOUNTS:
1. The minimum deposit required to open a Jumbo Share Certificate Account is $100,000. You must maintain a minimum daily balance of $100,000 in your account each day to obtain the APY set forth on the Loans & Savings Rates brochure.
2. These accounts are subject to a fixed rate. Please refer to the Loans & Savings Rates brochure for the dividend rate and corresponding APY.
3. For accounts with terms of twelve (12) months or less, once your account is established you may make no more than one (1) deposit to your account, and such deposit cannot exceed the lesser of the amount of your account opening balance or $10,000. You may also make one (1) withdrawal of principal (without penalty), in an amount not to exceed $10,000, provided you maintain a balance equal to the minimum balance required to open this account. For terms to maturity greater than twelve (12) months, once your account is established you may not make any deposits into your account, and all withdrawals of principal are subject to a penalty.
4. There are no monthly service fees for this account.
TERMS & CONDITIONS APPLICABLE TO SENIOR SHARE CERTIFICATE ACCOUNTS:
1. The minimum deposit required to open a Share Certificate Account is $1,000. You must maintain a minimum daily balance of $1,000 in your account each day to obtain the APY set forth on the Loans & Savings Rates brochure.
2. These accounts are subject to a fixed rate. Please refer to the Loans & Savings Rates brochure for the dividend rate and corresponding APY.
3. For accounts with terms of twelve (12) months or less, once your account is established you may make no more than one (1) deposit to your account, and such deposit cannot exceed the lesser of the amount of your account opening balance or $10,000. You may also make one (1) withdrawal of principal (without penalty), in an amount not to exceed $10,000, provided you maintain a balance equal to the minimum balance required to open this account. For terms to maturity greater than twelve (12) months, once your account is established you may not make any deposits into your account, and all withdrawals of principal are subject to a penalty.
4. There are no monthly service fees for this account.
5. You must be at least sixty (60) years of age to be eligible for a Senior Share Certificate Account.
TERMS & CONDITIONS APPLICABLE TO SENIOR JUMBO SHARE CERTIFICATE ACCOUNTS:
1. The minimum deposit required to open a Share Certificate Account is $100,000. You must maintain a minimum daily balance of $100,000 in your account each day to obtain the APY set forth on the Loans & Savings Rates brochure.
2. These accounts are subject to a fixed rate. Please refer to the Loans & Savings Rates brochure for the dividend rate and corresponding APY.
3. For accounts with terms of twelve (12) months or less, once your account is established you may make no more than one (1) deposit to your account, and such deposit cannot exceed the lesser of the amount of your account opening balance or $10,000. You may also make one (1) withdrawal of principal (without penalty), in an amount not to exceed $10,000, provided you maintain a balance equal to the minimum balance required to open this account. For terms to maturity greater than twelve (12) months, once your account is established you may not make any deposits into your account, and all withdrawals of principal are subject to a penalty.
4. There are no monthly service fees for this account.
5. You must be at least sixty (60) years of age to be eligible for a Senior Share Certificate Account.
TERMS & CONDITIONS APPLICABLE TO INDIVIDUAL RETIREMENT ACCOUNTS (“IRAs”) (INCLUDING TRADITIONAL, ROTH, & EDUCATIONAL IRA SHARE CERTIFICATE ACCOUNTS):
1. We offer IRAs to encourage our members to save for their retirement years. An IRA is subject to the applicable terms and conditions set forth in this Agreement as well as the terms and conditions set forth in the Individual Retirement Account Application which by this reference is incorporated into this Agreement in its entirety. When you open your IRA, the Individual Retirement Account Application and related agreements and disclosures will be provided to you in accordance with applicable law.
2. The minimum deposit required to open an IRA Share Certificate Account is $500. You must maintain a minimum daily balance of $500 in your account each day to obtain the APY set forth on the Loans & Savings Rates brochure.
3. These accounts can be subject to a fixed rate or a variable rate. Please refer to the Loans & Savings Rates brochure for the dividend rate and corresponding APY and the rate option you selected at the time your account was established.
4. You may not pledge any of the funds on deposit in the account as security for any loan(s).
5. Certain federal and state penalties may apply to amounts withdrawn from IRAs. These are set forth in applicable federal and state laws and regulations, which are incorporated herein by this reference.
6. Funds in an IRA will be considered abandoned and will be turned over to the State if you have not done any of the following for a period of more than three (3) years after the funds become payable or distributable:
a. Increased or decreased principal;
b. Accepted payment of principal or income (dividends);
c. Communicated with us electronically or in writing concerning the funds or otherwise indicated an interest therein.
7. IRA accounts are subject to an Opening fee, Annual Account Maintenance Fee and if transferred to another custodian, a Transfer Fee.
TERMS & CONDITIONS APPLICABLE TO FREE CHECKING/CONNECT ACCOUNTS:
A Los Angeles Federal Credit Union Free Checking/Connect account lets you withdraw your money and write checks against your account at any time.
1. The minimum deposit required to open a Free Checking/Connect account is $10.
2. You may be required to maintain a minimum average daily balance each day to obtain the APY set forth in the Loans & Savings Rates brochure. These accounts are subject to a tiered variable rate. Please refer to the Loans & Savings Rates brochure for the current dividend rate and corresponding APY.
3. You may be charged a monthly service fee set forth in the Fees brochure if your account does not meet the requirements as stated in the Loans & Savings Rates brochure.
4. We may, at our discretion, but are not obligated to, nor will we be liable for, refusal to pay funds from this account:
a. When such payment would draw the account below the minimum balance for the account as established from time to time by us.
b. If drawn by means not authorized in advance by us.
c. Against checks presented over six (6) months past their issue dates.
d. Against uncollected non-cash items.
5. We may pay and charge to your applicable account checks or other debit items (“items”) drawn by and payable to any person, organization, association or corporation whom you have authorized by providing sample MICR encoded information identifying your account, provided there are sufficient funds in your account to pay such items. You agree that our rights in respect to such items will be the same as if it were an item drawn and signed by you personally. This authority will remain in effect until revoked by you in writing (to us and to the agency to which the sample MICR writing was provided) and we have had a reasonable opportunity to act on it. You agree that we will be fully protected in honoring such items. You further agree that if any such item is dishonored, whether with or without cause, and whether intentional or inadvertent, we will have no liability whatsoever, even though such dishonor results in the forfeiture of insurance, or other loss or damage to you of any kind.
6. You, or any other person authorized to draw on the account, may request a stop payment of any check payable against your account, provided your request is timely and affords us a reasonable opportunity n it under our rules. You may request a stop payment by telephone, mail or in person. Your stop payment request must include the account number, check number, exact amount, check date, and name of payee. This information must be exact because stop payment orders are processed using automated means. We will not be liable for paying a check over a stop payment request if the request is incomplete or incorrect. A stop payment fee will be assessed for each stop payment as set forth in our Fees brochure. If you make a stop payment request orally, the request will be valid for only fourteen (14) days thereafter unless confirmed in writing. Written requests will be valid no longer than six (6) months, but may be renewed for additional six (6) month periods by written notice given during the time that the stop payment order is in effect. We are not obligated to notify you when a stop payment order will or has expired. You have the burden of establishing the fact and amount of loss resulting from payment contrary to a binding stop payment request. You may not stop payment on completed electronic point-of-sale transactions, and, except under certain limited circumstances, cashier’s checks, certified checks, or checks issued or guaranteed by us. You assign to us all rights against the payee or any other holder of the item. You agree to cooperate with us in any legal actions that we may take against such persons. You should be aware that anyone holding the item may be entitled to enforce payment against you despite the stop-payment order. You agree to indemnify, defend, and hold us harmless from and against any and all claims, damages, losses, liabilities, expenses, and fees (including reasonable attorneys’ fees) arising out of or relating to our action in stopping payment of any check pursuant to your request.
7. Your death or incompetence will not revoke our authority to accept, pay or collect a check or to account for proceeds of its collection until we know of the fact of death or adjudication of incompetence and have a reasonable opportunity to act on it. Even with knowledge, we may for ten (10) days after the date of death or incapacity, pay or guarantee checks drawn on or prior to that date unless ordered in writing to stop payment by a person claiming an interest in the account under rules established by us. We must be notified if any of you die or become incapacitated.
8. If we have paid a check under circumstances giving a basis for objection by you, we will be subrogated to the rights of:
a. Any holder in due course on the check against the drawer or maker;
b. The payee or any other holder of the check against the drawer or maker either on the item or under the transaction out of which the item arose; and
c. The drawer or maker against the payee or any other holder of the check with respect to the transaction out of which the check arose.
9. In the event of wrongful dishonor which occurs by mistake, our liability will be limited to actual damages you prove.
10. We are neither given notice, or otherwise affected by, a restrictive endorsement of any person or entity except our immediate transferor.
11. You agree that in the event you draw a check on your account with us, that you will hold us harmless and indemnify us from any liability you incur due to a delay or mis-routing of the check where the delay or mis-routing is caused by markings placed on the check by you or a prior endorser that obscure any depository endorsement placed by us or our agent.
12. We may recognize the signature of anyone who signed the Membership Application as authorized to transact any business on this account including, but not limited to, the causing or making of overdrafts and endorsement of checks payable to any owner of this account.
13. You may not pledge any or all of the funds on deposit in your Free Checking/Connect accounts as security for any loan(s).
14. You will notify us immediately if your checks are lost or stolen. You agree that you will be responsible for losses caused by a delay in your notification to us.
15. You acknowledge that we do not sell checks. As a convenience to you, we will submit your initial check order and any reorders for personalized checks ordered through us to the printer named on the face of the order. If the printer accepts the initial order and any re-orders, the printer will mail the checks either directly to you or to you in care of us. You authorize us to charge your Free Checking/Connect account for the cost of checks ordered through us, plus applicable sales tax and shipping costs at the fee set forth in the Fees brochure. You are responsible for verifying the accuracy of all information shown on your checks, whether you order them through us or elsewhere. You agree to imprint only those names of authorized owners on your checks.
16. We may provide you with temporary checks that include the exact Magnetic Ink Character Recognition (MICR) line, including routing number and account number, necessary for the proper processing of your checks. You are responsible for ensuring that any checks you use to draw on your account include this same MICR encoding. You understand that it is your responsibility to ensure that checks you order from any third party printer are printed in accordance with applicable standards set by the American National Standards Institute (ANSI) for font, paper, toner, and positioning. You understand that if checks you write do not have the correct routing number, they may not be properly posted, and that if any other part of the encoding is incorrect, posting of the checks may be delayed. If you fail to include proper MICR encoding on your checks and this results in any such check being manually processed by us, then you will pay a fee as set forth in the Fees brochure.
17. Paid checks remain the property of the Credit Union upon payment and are not returned to you with periodic statements. Checks are imaged on both sides and stored for seven (7) years from date of posting. You may request and we will provide you with a copy of a requested item within a reasonable time. Imaged checks are also available on the online banking system. We will not charge you for the first two (2) copies of items you request appearing on any statement. Additional copies will be subject to an assessment of a fee as set forth in our Fees brochure. If you have not ordered your Los Angeles Federal Credit Union checks through our approved check vendors, you understand and agree that we are not responsible for the quality of any check copy that you request from us. If at any time you should use checks printed by a check vendor that was not approved by us, we reserve the right to reject any check of poor quality.
18. When you write a check, you agree that we may pay the check regardless of the date or language restricting payment to certain periods of time. However, you agree that we are under no obligation to pay a check presented for payment before its date (a post-dated check) or more than six (6) months after its date. We may refuse to accept post-dated checks or we may treat post-dated checks as though the checks were written on the date presented. In the event that we accept a post-dated check, we may charge against your account a post-dated check even though payment is made before the date of the check. If we accept a post-dated check and you notify us within a reasonable time to permit us to act and identify the check with reasonable certainty, we cannot pay the check until the due date. Notice may be written or oral and it must include the exact amount, account number, check number, date of check, and name of payee. If oral, the notice will be valid for fourteen (14) days. If written, the notice will be valid for up to six (6) months, and can be renewed within six (6) months for another successive six (6) month period. A fee may be assessed for this service as set forth in our Fees brochure.
19. All checks written on your account must be drawn in U.S. dollars.
20. If a transaction involves a remotely-created check, we reserve the right to accept or reject the item for deposit into any of your accounts. For purposes of this Agreement, the term “remotely-created check” means a check that is not created by the paying bank and that does not bear a signature applied, or purported to be applied, by the person on whose account the check is drawn. If you deposit a remotely-created check into any of your accounts, you represent and warrant to us that you have instituted procedures to ensure that these drafts are authorized by the person on whose account the remotely-created check is drawn, in the amount stated on the check, and to the payee stated on the check. If a remotely-created check which you have deposited into your account is returned by the drawee-payor bank for any reason, you agree that we may debit your account for the amount of the item, plus any applicable fees. If the debit causes your account to be overdrawn, you agree to promptly pay the overdrawn amount on our demand within ten (10) days unless additional time is granted by us in our exclusive discretion.
21. Our measure of damages for failure to exercise ordinary care in handling a check will not exceed the amount of the item.
22. Free Checking/Connect accounts may be subject to monthly fees unless certain conditions are met. Please refer to our “Fees” brochure.
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PART III: ELECTRONIC SERVICES AGREEMENT & DISCLOSURE (REG. E)
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This Part of the Agreement sets forth the terms and conditions governing electronic fund transfers. Electronic fund transfers (“EFTs”) are electronically initiated transfers of money involving a deposit account at the Credit Union and multiple access options, such as online account access, direct deposits, automated teller machines (ATMs) and Debit Card. Your acceptance, retention, or use of a Debit Card, Personal Identification Number (PIN) or other EFT hereunder constitutes an agreement between us and you as described below.
These disclosures are given by us in compliance with the Electronic Fund Transfer Act (15 U.S.C. Section 1693 et seq.) and Regulation E (12 CFR 1005 et seq.) to inform you of certain terms and conditions for use of the electronic services described in this Agreement.
At the present time, we offer the following electronic services:
• Pre-authorized deposits of net paycheck;
• Payroll deductions;
• Pre-authorized deposits of pension checks and federal recurring payments (for example, Social Security payments);
• Pre-authorized withdrawals for bill payments and other recurring payments;
• Automated Teller Machine (ATM) EFT services at Credit Union-owned (proprietary) ATMs and on Shared Network ATMs such as the CO-OP Network, STAR, Cirrus, Plus and such other systems as may be added from time to time;
• Credit Card cash advances at ATMs on the Visa network;
• Online Banking (Online banking);
• Debit Card (including PIN and signature based transactions);
• Virtual Assistant;
• Electronic Check Transactions; and
• Transactions at a Point-of-Sale (POS) terminal whether or not an access device is used.
General disclosures applicable to all electronic services offered by us is given below, with certain specific disclosure information for each service following in separate sections. Your use of the electronic services is subject to our approval.
GENERAL DISCLOSURES
APPLICABLE TO ALL ELECTRONIC SERVICES
Business Day Disclosure:
Our business days are Monday through Friday, except federal holidays. Our business hours are 8:00 a.m. to 5 p.m. Pacific Standard Time on Monday through Friday, excluding federal holidays. Branch hours and holiday schedules may be obtained through our website or by contacting us over the telephone. Our proprietary ATMs are generally available 24 hours a day, 7 days a week, with minor interruptions for system maintenance or technical difficulties. virtual assistant telephone banking is generally available for your convenience 24 hours a day, 7 days a week, with minor interruptions for system maintenance or technical difficulties. Online Banking and Bill Pay are generally available for your convenience 24 hours a day, 7 days a week, with minor interruptions for system maintenance or technical difficulties, including those of the Internet service provider and Internet software. You agreed that the Credit Union will not be responsible to you for any financial responsibility, damages or otherwise, if Online Banking and Bill Pay or ATM’s become unavailable or interrupted due to technical difficulties or system maintenance.
Disclosure of Account Information to Third Parties:
We will maintain the confidentiality and privacy of your account information in accordance with our privacy policy. We will disclose information to third parties about your account or transfers you make in the following circumstances:
1. When it is necessary to complete an electronic transaction; or
2. In order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant; or
3. In order to comply with a government agency, court order, or any legal process; or
4. If you give us permission in writing.
Right to Receive Documentation of Transactions:
1. Terminal Transfers. In most cases, you will receive a receipt at the time you make any transfer to or from your account using an ATM when you make a purchase using a POS terminal. You should retain this receipt to compare with your statement from us. Federal law provides that a receipt need not be made available to you if the amount of the transfer initiated at an electronic terminal is $15 or less.
2. Periodic Statements. You will receive a monthly account statement for each month in which an EFT is made (but at least a quarterly statement if no transfers are made). You agree to immediately review each periodic statement mailed or otherwise made available to you to ensure that each and every transaction has been authorized by you. Your failure to promptly report any allegedly unauthorized transaction may result in future allegedly unauthorized transactions to be considered authorized.
3. Online Banking Transactions. You may print a record of any individual transaction conducted through Online banking at any time after the transaction is completed. You may also subsequently contact us to request a paper receipt for any such transaction provided it is no more than three (3) months from the date of the transaction. A fee may be charged for such a paper copy as set forth in the Fees brochure.
Your Liability for Unauthorized Transactions and Advisability of Prompt Reporting:
You are responsible for all transfers you authorize using the electronic services described in this Agreement. If you permit other persons to use your Debit Card, or PIN, you are responsible for any transactions that person authorizes or conducts on any of your accounts, even if that person exceeds your authority. However, you must tell us AT ONCE if you believe your Debit Card, or your Debit Card PIN, or online banking PIN (collectively “Card(s) and/or PIN(s)”) have been lost or stolen or if you believe that an EFT has been made without your permission using information from your check. Telephoning is the best way of keeping your possible losses down. A written notification to us signed by you should follow your telephone call. You could lose all the money in your account (plus your maximum overdraft line of credit, if you have one). However, if you believe your Card(s) and/or PIN(s) have been lost or stolen, and you tell us within two (2) business days after you learn of the loss or theft, you can lose no more than $50 if it is determined that someone used your Card(s) and/or PIN(s) to access your account without your permission.
If you do NOT tell us within two (2) business days after you learn of the loss or theft of your Card(s) and/or PIN(s) and we can prove we could have stopped someone from using your Card(s) and/or PIN(s) without your permission if you had promptly informed us, you could lose as much as $500.
Also, if your statement shows transfers that you did not make, including those made by Card, PIN or other means, you must tell us at once. If you do NOT tell us within sixty (60) days after the statement was mailed or delivered to you, you may not get back any money you lost after the sixty (60) days if we can prove that we could have stopped someone from taking the money if you had informed us in time.
If you can document that a good reason (such as a long trip or hospital stay or other extenuating circumstance) kept you from telling us, we may extend the time period.
Special Notice to Debit Card Cardholders
If you are using a Debit Card for transactions that take place on the Visa network system, you understand that Visa Operating Regulations provide for $0 liability (“Zero Liability”) for losses from unauthorized (fraudulent) activity, unless you were grossly negligent or engaged in fraud in handling your account or Debit Card. Zero Liability does NOT apply to ATM transactions using your PIN outside the United States. Zero Liability also will not apply to Debit Cards issued outside the U.S. or to Visa commercial cards. You must provide us with a written statement regarding any claim of unauthorized Debit Card transactions.
If you notify us of unauthorized transactions which were processed through Visa (this does not include cash withdrawals at an ATM outside the United States using your Debit Card), we will provide provisional credit to your account within ten (10) business days of the notification. If you tell us orally, we will require that you send us your complaint in writing. We will not credit your account until your written complaint is received. We may withhold providing provisional credit, to the extent allowed under applicable laws or regulations, if we determine that the circumstances or account history warrant the delay. “Unauthorized” means the use of your Debit Card by a person, other than you, who does not have actual, implied or apparent authority for such use and from which you receive no benefit, financial or otherwise.
How to Notify the Credit Union in the Event of an Unauthorized Transaction:
If you believe your Card(s) and/or PIN(s) have been lost or stolen or that someone will or may use it to transfer money from your account(s) without your permission, you must telephone us at: (877) 695-2328, or after hours for a Debit Card at (888) 918-7820, or write us at: Los Angeles Federal Credit Union, P.O. Box 53032, Los Angeles, CA 90053-0032.
You should also call the number or write to the address listed above if you believe a transfer has been made using the information from your check without your permission.
In case of errors or questions about your electronic services transactions:
In case of errors or questions about your electronic services transactions, telephone us at (877) 695-2328, or write us at Los Angeles Federal Credit Union, P.O. Box 53032, Los Angeles, CA 90053-0032, if you think your periodic statement or receipt is wrong or if you need more information about a transaction listed on your periodic statement or receipt. We must hear from you no later than sixty (60) days after we send you the FIRST periodic statement on which the problem or error appeared. You must:
1. Tell us your name and account number;
2. Describe the error or the transaction you are unsure about and explain, as clearly as you can, why you believe it is an error or why you need more information; and
3. Tell us the dollar amount of the suspected error.
If you tell us orally, we may require that you send us your complaint or question in writing within ten (10) business days.
We will determine whether an error occurred within ten (10) business days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to forty-five (45) days to investigate your complaint or question. If we decide to do this, we will credit your account within ten (10) business days for the amount you think is in error so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint in writing and we do not receive it within ten (10) business days, we may not credit your account.
For errors involving new accounts, point-of-sale, or foreign-initiated transactions, we may take up to ninety (90) days to investigate your complaint or question. For new accounts, we may take up to twenty (20) business days to credit your account for the amount you think is in error. Your account is considered a “new account” for the first 30 days after the first deposit is made, unless you already have an established account with us before this account is opened.
We will tell you the results within three (3) business days after completing our investigation. If we decide that there was no error, we will send you a written explanation. If we provisionally credited your account, we will reverse the provisional credit and notify you of the date we reversed the credit and the amount of the debit. You may ask for copies of the documents that we used in our investigation.
In accordance with Visa Operating Regulations, you will receive provisional credit for Debit Card losses for unauthorized use within five (5) business days after you have notified us of the loss. However, please refer to the “Additional Disclosures Applicable to PIN-Less Debit Card Transactions” section for further details regarding a Debit Card transactions initiated through a non-Visa debit network.
You also understand and agree that it is your responsibility to carefully review each receipt or sales slip you receive when you conduct a Debit Card transaction. In addition, you agree that, to the extent a Debit Card transaction is initiated using your PIN or when you sign a sales slip, it is presumed that you authorized the transaction, and the amount thereof, because the authorization was initiated through your PIN or by your signature on the sales slip. In such event, you understand and agree that the burden is on you to conclusively prove that the use of your Debit Card and/or the amount of the transaction was unauthorized.
Our Liability for Failure to Make or Complete Electronic Fund Transfers:
If we do not properly complete an EFT to or from your account on time or in the correct amount according to our agreement with you, we may be liable for your direct actual losses and damages. However, there are some exceptions. We will not be liable, for instance, if:
1. Circumstances beyond our control (such as fire, flood, earthquake, electrical failure, malfunction of central data processing facility, etc.) prevent the transaction, despite reasonable precautions that we have taken;
2. Through no fault of ours, you do not have enough money in your account (or sufficient collected funds) to complete the transaction(s);
3. The funds in your account are subject to an uncollected funds hold, legal process, or other circumstances restricting such transaction or payment;
4. We received incorrect or incomplete information from you or from third parties (e.g., the U.S. Treasury, an automated clearing house, or a terminal owner);
5. The ATM network system was not working properly and you knew about this breakdown when you started the transaction;
6. The ATM where you were conducting the transaction did not have enough cash or cash in the denominations you requested;
7. Your Debit Card, Visa(r) Credit Card, Debit Card PIN, Visa Credit Card PIN, or online banking PIN you provide is incorrect or incomplete, has been reported lost or stolen, has expired, is damaged so that the mechanical device cannot read the encoding strip, is inactive due to non-use, is retained by us due to your misuse or suspected fraudulent activities, is retained by us at your request, or your Debit Card PIN, Visa Credit Card PIN, or online banking PIN has been repeatedly entered incorrectly;
8. The transaction would exceed an unused line of credit (e.g., Visa Credit Card limit);
9. Our failure to complete the transaction or the placement of a block on your account is done to protect the security of your account and/or the electronic terminal system;
10. You make an error in keying your deposit at an ATM or through the Online Banking system (and if you make such error, we are not responsible for bounced checks, forfeited dividends, and other consequences which may result);
11. The payee mishandles or delays a payment sent by the Bill Payer Service;
12. Any transaction is prohibited by law, regulation, court order, or would be considered illegal activity; or
13. You have not provided our Bill Payer Service provider with the correct names, phone numbers, or account information for those persons or entities to whom you wish to direct payment.
There may be other exceptions not specifically mentioned above.
Provided that none of the foregoing exceptions to the service performance obligations are applicable, if we cause an incorrect amount of funds to be debited from your account, or caused funds from your account to be transferred to a person or entity which does not comply with your bill payment instructions, we will be responsible for returning the improperly transferred funds to your account and for directing to the proper recipient any previously misdirected bill payments or transfers.
THE FORGOING CONSTITUTES OUR ENTIRE LIABILITY AND YOUR EXCLUSIVE REMEDY. IN NO EVENT WILL WE BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR EXEMPLARY DAMAGES, INCLUDING LOSS OF PROFITS (EVEN IF ADVISED OF THE POSSIBILITY THEREOF) ARISING IN ANY WAY OUT OF THE INSTALLATION, USE, OR MAINTENANCE OF ANY EQUIPMENT, SOFTWARE, AND/OR SERVICE.
Personal Identification Numbers (PIN):
You understand that you cannot use your Debit Card at a Visa terminal, nor may you use online banking or virtual assistant telephone banking without the applicable identification number which we refer to as a PIN. You are responsible for the safekeeping of your PIN(s) provided by us or selected by you and for all transactions by use of a PIN. Your PIN(s) is confidential and should not be disclosed to third parties or recorded. You will notify us immediately and send written confirmation if your PINs are disclosed to anyone other than the joint owner of your account. You understand and agree that you must change the PIN immediately to prevent transactions on your account(s) if anyone not authorized by you has access to the PIN. If you disclose your PIN(s) to anyone, however, you understand that you have given them access to your account(s) and you are responsible for any such transaction. If you authorize anyone to use your PIN in any manner that authority will be considered unlimited in amount and manner until you specifically revoke such authority by notifying the Credit Union and changing your PIN immediately. You are responsible for any transactions made by such persons until you notify us that transactions and access by that person are no longer authorized and your PIN is changed. You may be responsible for all transactions made prior to the PIN change.
Fees for Electronic Fund Transfers:
All fees associated with your EFTs are disclosed in our Fees brochure, which accompanies this Agreement and is incorporated herein by reference. Any fees charged will be deducted from your Free Checking/Connect or Share Savings account. The Credit Union reserves the right to impose fees at a future date after we give you notice of such charges as required by law.
If you have been issued an additional card (whether a Debit Card or Visa Credit Card) for a joint owner or authorized user on your account, any applicable transaction fees outlined in our Fees brochure will be based on combined transactions. Withdrawals from more than one account or additional withdrawals from the same account during a single access will be counted as multiple withdrawals. Generally, transaction fees will be charged to your account within two (2) business days from the day they are incurred. The fee may not be recorded on the transaction receipt produced by the ATM, but it will be itemized on your monthly statement.
If you use an ATM that is not operated by us, you may be subject to additional fee(s) imposed by another financial institution, merchant and/or by an automated transfer network. You may be charged a fee for a balance inquiry even if you do not complete a funds transfer. This practice is known as “surcharging” and is in addition to any ATM fees charged by us.
The Credit Union will also charge fees as disclosed in the Fees brochure for each transaction you perform at non-proprietary ATMs; for example, if you check your balance and withdraw money at a non-proprietary ATM, you will be charged fees for both transactions.
Electronic Fund Transfer Limitations:
On all savings accounts, we will allow you to make up to six (6) pre-authorized, automatic, telephonic, audio response or internet transfers to another of your accounts or to the account of any other person or organization during each statement period. No more than three (3) of the six (6) transfers may be made by check, draft, debit card, or similar order to a third party. Your limit of six (6) pre-authorized transfers includes those transactions where you order us to pay a person or organization from your account including Automated Clearing House (ACH) transactions. The date we use to determine the number of transactions is the date a transaction is posted to your account, rather than the date you initiate the transaction. If you exceed these limitations in any calendar month, we can refuse or reverse the transfer, close your account, and charge a fee as stated in the Fees brochure. Transactions that are not covered by these limitations include (1) transfers from your account to pay a loan with us, and (2) transfers to your other accounts with us or withdrawals by check mailed directly to you, if the transfer or withdrawal is conducted in person, by mail or at an ATM.
Each transfer or payment through Online banking from your savings account is counted as one of the six (6) limited transfers you are permitted each statement period. We recommend that you not use a savings account as your bill payment account because of these limits on transfers.
Verification:
All transactions affected by use of ATMs, POS terminals, virtual assistant telephone banking, Electronic Check Transactions, online banking, or other electronic transaction contemplated hereunder which would otherwise require your actual signature, or other authorization, will be valid and effective as if actually signed by you when accomplished by use of an Electronic Check Transaction, the Card(s) and/or PIN(s), or as otherwise authorized under this Agreement.
Change in Terms:
We may change the terms and charges for the services described in this Agreement and may amend, modify, add to, or delete from this Agreement from time to time. If you have an account with us through which EFTs are being processed, you will receive written notice of the change in terms at least twenty-one (21) days prior to the effective date of the change(s), or as otherwise provided by law. Further, the Credit Union may, from time to time, revise or update the programs, electronic services, and/or related material(s) rendering such prior versions obsolete. Consequently, the Credit Union reserves the right to terminate this Agreement as to all such prior versions of the programs, electronic services, and/or related material(s) and limit access to the Credit Union’s more recent versions and updates.
Termination of Electronic Services:
You may, by written request, terminate any of the electronic services provided for in this Agreement. Termination by any one account owner will be binding on all account owners and we are not required to notify other account owners of the termination. We reserve the right to terminate this Agreement and your access to the electronic services, in whole or in part, at any time and for any reason. In addition, electronic services may be suspended, without advance notice, if there are insufficient funds in any one of your accounts or if any of your accounts are not in good standing as defined in our Member Conduct and Limitation of Services Policy. After suspension, electronic services may be reinstated, at our discretion, once there are sufficient funds in your account(s) to cover any fees and other transfers and debits. If you ask us to terminate your account or your access to any of the electronic services, you will remain liable for subsequent transactions performed on your account. Termination of electronic services does not terminate your accounts or agreements with us and will not affect your authorization for transfers and payments made prior to termination. Upon termination of this Agreement or the electronic services, the Credit Union will use commercially reasonable efforts to cancel any applicable account transactions you have previously authorized, but we make no guarantee that we will be able to do so. You will be solely responsible for any fees that apply to any such cancellation.
Notice and Communications:
Except as otherwise provided in this Agreement, all notices required to be sent to you will be effective when we mail or deliver them to the last known address that we have for you in our records or when we make such notices available to you through Online banking if you have agreed to receive notices from us in an electronic format. You are required to keep us informed of your current address. You agree to notify us promptly of any change of address. You may notify us in person at any of our offices, via online banking or by sending a written and signed notice “Attention: Member Services Department.” You may be requested to confirm the address change upon request by us.
Collections:
You agree that we will be entitled to recover any money owed by you as a result of your use of, or the use of anyone you have provided with access to, any of our electronic services and you agree to repay any amounts which create an overdrawn balance on any of your accounts immediately upon demand. We have a security interest in your present and future deposits and have the right to apply such deposits to any money you owe. If any legal action is required to enforce any provision of this Agreement or to collect money you owe, you agree to pay all costs of collections, including reasonable attorneys’ fees, court costs, and other charges incurred for enforcing our rights under this Agreement.
Severability:
Except as otherwise provided in Part I of this Agreement, if any of the provisions of this Agreement should be held to be unenforceable, the remaining provisions of this Agreement will remain in full force and effect.
Governing Law:
You understand and agree that this Agreement and all questions relating to its validity, interpretation, performance, and enforcement will be governed by and construed in accordance with the internal laws of the State of California, notwithstanding any conflict-of-laws doctrines of such state or other jurisdiction to the contrary. You also agree to submit to the personal jurisdiction of the courts of the State of California.
No Waiver:
The Credit Union can delay enforcing any provision under this Agreement any number of times without losing its right to enforce them at a later date as permitted by law.
Relationship to Other Disclosures:
The information in this Part applies only to the electronic service transactions described herein. Provisions in other disclosure documents, as may be revised by us from time to time, continue to apply, except to the extent expressly modified by this Agreement.
Account Access:
Your accounts, Debit Card, and any other access device or method (including ACH and electronic check transactions) may not be used for any illegal activity or transaction. Display of a payment card logo by, for example, an online merchant does not necessarily mean that transactions are lawful in all jurisdictions in which the cardholder may be located. You understand that you may not utilize your accounts, Debit Card, or any other access device or method for the purchase of any goods or services on the Internet that involve online gambling of any sort. Prohibited activity and transactions include, but are not limited to, any quasi-cash or online gambling transaction, electronic commerce gambling transaction conducted over an open network, and any betting transaction including the purchase of lottery tickets or casino gaming chips or off-track betting or wagering or for any other products, services or activities that are illegal or prohibited by law. We may deny authorization of any transactions identified as gambling or other prohibited illegal activity, service or product. However, in the event that a transaction described in this paragraph is approved and processed, you will still be responsible for such charges.
Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA):
In accordance with the requirements of the Unlawful Internet Gambling Enforcement Act of 2006, and Regulation GG, this notification is to inform you that restricted transactions are prohibited from being processed through your account or banking relationship with us. “Restricted transactions” are transactions involving the knowing transmittal or receipt of credit, funds, checks, instruments or other proceeds to or from another person engaged in the business of wagering or betting in connection with unlawful Internet gambling. If you do engage in an Internet gambling business and open a new account with us, we will ask that you provide evidence of your legal capacity to do so and may inquire as to the source of funds.
Recording of Phone Calls:
You authorize us and our agents to record any phone call between you and us concerning the electronic services or any other services provided by the Credit Union.
Assignment:
You may not assign this Agreement to any other party. The Credit Union may assign this Agreement at any time in its sole discretion. The Credit Union may also assign or delegate any of its rights and responsibilities under this Agreement to independent contractors or other third parties.
Headings:
Headings are for convenience only and will not control or affect the meaning or construction of any of the provisions of this Agreement.
DISCLAIMER OF WARRANTIES AND LIMITATION OF LIABILITY:
YOU UNDERSTAND AND AGREE THAT THE ELECTRONIC SERVICES ARE PROVIDED “AS-IS.” EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT OR AS REQUIRED BY LAW, THE CREDIT UNION ASSUMES NO RESPONSIBILITY FOR THE TIMELINESS, DELETION, MIS-DELIVERY OR FAILURE TO STORE ANY USER COMMUNICATIONS OR PERSONALIZATION SETTINGS. YOU UNDERSTAND AND EXPRESSLY AGREE THAT USE OF THE ELECTRONIC SERVICES IS AT YOUR SOLE RISK, THAT ANY MATERIAL AND/OR DATA DOWNLOADED OR OTHERWISE OBTAINED THROUGH THE USE OF THE ELECTRONIC SERVICES IS DOWNLOADED OR OBTAINED AT YOUR OWN DISCRETION AND RISK AND THAT YOU WILL BE SOLELY RESPONSIBLE FOR ANY DAMAGES, INCLUDING WITHOUT LIMITATION DAMAGE TO YOUR COMPUTER SYSTEM OR MOBILE DEVICE OR LOSS OF DATA THAT RESULTS FROM THE DOWNLOAD OR THE OBTAINING OF SUCH MATERIAL AND/OR DATA.
EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE CREDIT UNION DISCLAIMS ALL WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT OF INTELLECTUAL PROPERTY OR THIRD PARTY RIGHTS, AND THE CREDIT UNION MAKES NO WARRANTY OR REPRESENTATION REGARDING THE RESULTS THAT MAY BE OBTAINED FROM THE USE OF THE ELECTRONIC SERVICES, THE ACCURACY OR RELIABILITY OF ANY INFORMATION OBTAINED THROUGH THE ELECTRONIC SERVICES, THE ACCURACY OF ANY INFORMATION RETRIEVED BY YOU FROM THE ACCOUNTS OR THAT THE ELECTRONIC SERVICES WILL MEET ANY USER’S REQUIREMENTS, BE UNINTERRUPTED, TIMELY, SECURE OR ERROR FREE.
EXCEPT AS DESCRIBED IN THIS AGREEMENT, THE CREDIT UNION WILL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES OF ANY KIND RESULTING FROM YOUR USE OF OR YOUR INABILITY TO USE THE ELECTRONIC SERVICES, ANY INACCURACY OF ANY INFORMATION OR AMOUNT RETRIEVED BY YOU FROM THE ACCOUNTS, ANY BREACH OF SECURITY CAUSED BY A THIRD PARTY, ANY TRANSACTIONS ENTERED INTO BASED ON THE ELECTRONIC SERVICES, ANY LOSS OF, UNAUTHORIZED ACCESS TO OR ALTERATION OF A USER’S TRANSMISSION OR DATA OR FOR THE COST OF PROCUREMENT OF SUBSTITUTE GOODS AND SERVICES, INCLUDING BUT NOT LIMITED TO DAMAGES FOR LOSS OF PROFITS, USE, DATA OR OTHER INTANGIBLES, EVEN IF THE CREDIT UNION HAD BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Your Agreement to Indemnify us:
Except to the extent that the Credit Union is liable under the terms of this Agreement or another agreement governing the applicable account, you agree to indemnify, defend, and hold the Credit Union, its affiliates, officers, directors, employees, consultants, agents, service providers, and licensors, harmless from any and all third-party claims, liability, damages, and/or costs (including but not limited to reasonable attorney’s fees) arising from:
• a third-party claim, action, or allegation of infringement, misuse, or misappropriation based on information, data, files, or other materials submitted by you to us;
• any fraud, manipulation, or other breach of this Agreement by you;
• your violation of any law or rights of a third party; or
• the provision of the electronic services or use of the electronic services by you or any third party.
We reserve the right, at our own expense, to assume the exclusive defense and control of any matter otherwise subject to indemnification by you, in which event you will cooperate with us in asserting any available defenses. You will not settle any action or claims on our behalf without our prior written consent. This indemnification is provided without regard to whether the Credit Union’s claim for indemnification is due to the use of the electronic services by you or a joint account owner or other authorized person.
Copy Received:
You acknowledge receipt of a copy of this Agreement.
ADDITIONAL DISCLOSURES APPLICABLE TO PRE-AUTHORIZED DEPOSIT OF NET PAYCHECK, PAYROLL DEDUCTIONS, PENSION CHECKS, AND FEDERAL RECURRING PAYMENTS
If you have arranged to have pre-authorized electronic deposits of your net paycheck (if available from your employer), payroll deductions, pension checks, or federal recurring payments (for example, Social Security payments), the following information applies to you:
Account Access:
Pre-authorized deposits may be made only to your Free Checking/Connect or savings accounts.
Notification of Pre-authorized Deposits:
If you have arranged with a third party (for example, the Social Security Administration) to make pre-authorized deposits to your account at least once every sixty (60) days, that third party making pre-authorized deposits may have agreed to notify you every time the party sends us money to deposit to your account. If you have not made such an arrangement, you may telephone us and we will advise you whether or not the pre-authorized deposit has been made. You may also use Online banking to confirm whether or not the deposit has been made.
Documentation of Pre-authorized Deposits:
You will receive a monthly account statement for each month in which a pre-authorized deposit is made, but at least quarterly if no pre-authorized deposits are made. However, if the only electronic funds service you have with us is pre-authorized deposits, then we reserve the right to send you a quarterly statement only.
Direct Deposits:
If, in connection with a direct deposit plan, we deposit any amount in an account which we are later required to return to the Federal Government for any reason, you authorize us to deduct the amount of our liability to the Federal Government from the account or from any other account you have with us, without prior notice and at any time, except as prohibited by law. We may also use any other legal remedy to recover the amount of our liability.
ADDITIONAL DISCLOSURES APPLICABLE TO PRE-AUTHORIZED PAYMENT SERVICES
If you have requested a pre-authorized payment to a third party from any Credit Union account, the following applies to you:
Account Access:
Pre-authorized payments may be made from your Free Checking/Connect or savings account. However, the frequency of pre-authorized payments from your savings account is limited pursuant to Regulation D restrictions as disclosed in this Agreement. If your pre-authorized payment due date is scheduled to occur on a non-business day it will be sent out the next business day.
Right to Receive Documentation of Pre-authorized Payment:
1. Initial Authorization: You can get copies of the pre-authorized payment documentation from the party receiving the payment at the time you give them the initial authorization.
2. Notice of Varying Amount: If your pre-authorized payment may vary in amount, the party who will receive the payment is required to tell you ten (10) days before each such payment when it will be made and how much it will be. You may agree with the party being paid to receive this notice only when the payment will differ by more than a certain amount from the previous payment or when the amount would fall outside certain limits that you set.
3. Periodic Statement: You will receive a monthly statement for each month in which a transfer is made, but at least quarterly if no transfers are made.
Right to Stop Pre-authorized Payment:
If you want to stop a pre-authorized payment or revoke a pre-authorized payment authorization, you must call or write us in time for us to receive your stop payment request no less than three (3) business days or more before the next payment from your account is scheduled to be made. If you call, we may also require you to put your request in writing and get it to us within fourteen (14) days after you call. An oral request to stop payment ceases to be binding after fourteen (14) days if you have not provided us with any required written confirmation of your request. We will charge you for each stop payment order you give pursuant to our current Fees brochure. Such stop payment request will apply only to that particular payment. If you have given us a request to cancel the entire pre-authorized payment authorization, you understand and agree that you must also contact the third party to cancel (revoke) the entire pre-authorized payment authorization and provide us with a copy of your written revocation notice to the third party.
Our Liability for Failure to Stop Payment:
If you order us to stop one of your pre-authorized payments no less than three (3) business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages, to the extent provided by law.
AUDIO RESPONSE TELEPHONE BANKING (using our virtual assistant) ADDITIONAL DISCLOSURES:
Audio Response Telephone Banking is a service that allows you to perform monetary transactions and account balance inquiries without assistance from our staff. This service is available when calling us and using Angie, our virtual assistant. You will actually “talk” directly with our computer through the use of a touch-tone phone, and this service is available for your convenience 24 hours a day, 7 days a week, with minor interruptions for system maintenance or technical difficulties.
Personal Identification Number (PIN):
You must have a PIN to have our virtual assistant access accounts for you; and we can initially provide you PIN, or our virtual assistant can help you set it up. Before conducting your first transaction, you must select a new PIN. You are responsible for the safekeeping of your PIN provided by us, or as changed by you, and for all transactions made by our virtual assistant. This PIN will be different from your Debit Card PIN.
You must notify us immediately by phone and send written confirmation if your PIN is disclosed to anyone other than any joint owner of your account. You understand and agree that you must change your PIN immediately to prevent transactions on your account if anyone not authorized by you has access to your PIN. If you disclose your PIN to anyone, however, you understand that you have given them access to your account(s) and that you are responsible for any such transactions. You further understand that your PIN is not transferable and you will not disclose your PIN or permit any unauthorized use thereof. If the wrong PIN is entered three (3) times consecutively, your access to using it with our virtual assistant will be restricted and you will need to contact us to restore access. We are authorized to act on any instructions received under your PIN.
Types of Available Transactions. You may use our virtual assistant to:
1. Make transfers between your savings and Free Checking/Connect accounts;
2. Make inquiries regarding account and loan balances;
3. Obtain loan payment due date and pay off information;
4. Make loan payments by transferring the amount of the payment due from your savings or Free Checking/Connect account;
5. Access your Personal Line of Credit account to request loan advances;
6. Verify cleared checks; and
7. Obtain dividend information.
We may offer additional services in the future and, if so, you will be notified of them.
Limitations on Frequency and Dollar Amount of Transactions:
Account withdrawals to you are unlimited to the extent you have funds available in your account(s), or available credit from your Personal Line of Credit, and there are no dollar limitations on transfers. However, the frequency of telephone transfers is limited pursuant to Regulation D restrictions as disclosed in this Agreement. For security reasons, in the event your PIN is lost or stolen there may be restrictions on transactions you can conduct using our virtual assistant.
Withdrawal Checks:
Credit Union checks are prepared for withdrawals requested using TouchTel-24. We will mail these checks to you at your last address of record. All check requests will be mailed the next business day.
ADDITIONAL DISCLOSURES APPLICABLE TO ONLINE BANKING (ONLINE BANKING) AND THE BILL PAYER SERVICE (Online Bill Pay)
Online Banking is our electronic banking service that allows access to your accounts without assistance from our staff by using our Internet website and your Online Banking PIN. We refer to our Online Banking system as Online banking. The Online banking system is available for your convenience 24 hours a day, 7 days a week, with minor interruptions for system maintenance or technical difficulties. The Bill Payer Service is an electronic method of paying bills. We refer to the Bill Payer Service as Bill Pay. You must have a Free Checking/Connect account with us to use this service. If you would like to take advantage of these online services, visit our website and enroll with your eligible Credit Union accounts. Additional disclosures and specific terms and conditions for using Online banking and Bill Pay will be provided when you enroll.
ADDITIONAL DISCLOSURES APPLICABLE TO DEBIT CARDS
The disclosures in this section apply to the use of your Debit Card to conduct EFTs, including, but not limited to, use of the Debit Card at ATMs and POS terminals. By use of your Debit Card at a participating POS terminal, you authorize us to make withdrawals from your Free Checking/Connect account for cash advances and/or purchases. Access to ATMs is through the use of a Debit Card and a PIN.
Account Access:
You may use your Debit Card to withdraw cash from your Free Checking/Connect account by way of a cash advance from merchants, financial institutions, or others who honor the Debit Card and/or to pay for purchases. However, we are not responsible for the refusal or inability of any ATM or POS terminal, merchant, or financial institution to honor the Debit Card, to complete a transaction, or for their retention of the Debit Card. You understand that your Debit Card is not a credit card and does not provide “credit” which means that you may not defer payment of
Debit Card transactions.
Types of Available ATM Transactions:
Transaction types and services may be limited on certain ATMs on the systems which we do not own (non-proprietary ATMs), such as, for example, withdrawal limits. If a transaction or service type is not available, the attempted transaction will generally be refused as an invalid transaction.
You can use your Debit Card to perform the following ATM transactions:
1. Make deposits to your savings or Free Checking/Connect account at our proprietary ATMs (and some designated CO-OP Network ATMs).
2. Withdraw cash from your savings and Free Checking/Connect accounts.
3. Transfer funds between your savings, Free Checking/Connect, and loan accounts.
4. Make balance inquiries at our proprietary ATMs (and some shared network ATMs).
We may offer additional ATM services in the future and, if so, you will be notified of them.
Unless otherwise noted, the above services are generally available at ATMs on the CO-OP Network and shared network systems. Services, however, may be restricted on certain ATMs on the systems which we do not own. In such case, the Shared Network ATMs may refuse an attempted transaction.
Deposits:
You understand and agree that we accept deposits at an ATM subject to verification and collection by us and such deposits may only be credited or withdrawn in accordance with our Funds Availability Policy. Transactions accomplished after the close of business each day will be deemed to have occurred on our next business day.
ATM Transaction Fees:
You understand that withdrawals from network ATMs may be subject to Credit Union fees as disclosed in the Fees brochure. When you use an ATM not owned by us, you may be charged a fee by the ATM operator and/or any network used (and you may be charged a fee for a balance inquiry even if you do not complete a funds transfer). Any fees charged will be deducted from your Free Checking/Connect or savings account.
ATM Transaction Limitations:
1. You understand and agree that you may use your Debit Card at ATMs, using your PIN, to conduct withdrawals up to a maximum of $1,015 each day, as long as your available balance will cover the transaction. For purposes of the daily limits only, a “day” is defined as the twenty-four (24) hour period from midnight to midnight, Pacific Standard Time. If a transaction is initiated in another time zone, it will be processed when we receive it. Notwithstanding the foregoing, you understand that withdrawal limitations may vary between shared networks and individual ATMs. In addition, we reserve the right to adjust your maximum per day cash disbursement levels, from time to time, at our sole discretion.
2. Minimum withdrawal amounts and increment amounts may vary depending on the shared network or ATM you access. For example, the minimum withdrawal and increment amount on some shared network machines is generally $20.
3. For security reasons, in the event your Debit Card or PIN is lost or stolen, there may be restrictions on transactions you can make at the ATMs.
Authorization Holds for Debit Card Transactions:
When you use your Debit Card to pay for goods or services, the merchant may seek our prior authorization for the transaction, at which time we will generally place a hold on some or all of the funds in your account for up to three (3) business days or until the transaction is paid from your account. For more information regarding how debit card authorization holds impact your available account balance, refer to Part VIII of this Agreement, entitled “Your Liability for Overdrafts.”
Optional Overdraft Protection Plans:
You understand that you can authorize us to link your Debit Card to an overdraft protection source, including, but not limited to, a savings account, to fund any overdrafts on your Free Checking/Connect account. Refer to the paragraph entitled “Optional Overdraft Protection Plans” in Part VIII of this Agreement for additional information regarding Optional Overdraft Protection Plans.
Authorized Use – Debit Card and PIN:
Both the Debit Card and a PIN will be required each time you use an ATM, engage in a POS or other EFT. You agree to memorize your PIN and you will not write it on the Debit Card(s). If you forget the PIN, you may contact us. You agree that you must observe and abide by the following conditions for both the privacy and protection of your account and the system:
1. YOU MUST KEEP YOUR DEBIT CARD IN A SAFE PLACE AND PERMIT NO UNAUTHORIZED PERSON TO USE IT;
2. YOU MUST NOT TELL ANY UNAUTHORIZED PERSON YOUR PIN OR WRITE YOUR PIN ON YOUR DEBIT CARD (OR ANY PLACE) OR OTHERWISE MAKE IT AVAILABLE TO ANYONE ELSE;
3. YOU MUST TELL US IMMEDIATELY OF ANY LOSS OR THEFT OF YOUR DEBIT CARD AND/OR PIN.
4. IF YOU AUTHORIZE US TO ISSUE A DEBIT CARD (OR ANY OTHER ACCESS DEVICE) TO ANYONE ELSE, YOU AUTHORIZE THAT INDIVIDUAL TO WITHDRAW FUNDS FROM ANY ACCOUNT WHICH CAN BE ACCESSED BY THE DEBIT CARD, REGARDLESS OF WHETHER THAT INDIVIDUAL IS AUTHORIZED TO WITHDRAW MONEY FROM THE ACCOUNT BY ANY MEANS OTHER THAN BY USE OF THE DEBIT CARD.
5. IF YOU GIVE YOUR DEBIT CARD OR PIN TO ANYONE, ANY WITHDRAWAL OR TRANSFER BY THAT PERSON WILL BE CONSIDERED TO BE AUTHORIZED BY YOU, EVEN IF THEY EXCEED YOUR AUTHORITY.
Safety at the ATM:
You understand that you should use caution at all times when using an ATM. Some precautions you can take are: (1) avoid ATMs that are obstructed from view or unlit at night; (2) observe the area for anything unusual or suspicious; (3) when possible, bring a companion along, especially at night; (4) lock your vehicle when you leave it; (5) have your Debit Card in your hand as you approach the ATM and avoid reaching in your wallet or purse in front of the ATM; (6) avoid counting your cash at the ATM; (7) lock the doors, roll up all but the driver’s window, and keep the engine running when using a drive-up ATM; (8) prevent others from seeing you enter your PIN by using your body to shield their view; and (9) do not accept assistance from anyone you do not know when using an ATM. We want ATMs to be safe and convenient for you. Tell us if you know of any problem with the facility. For example, let us know if a light is not working or there is any damage to the facility. If you feel unsafe for any reason, you should leave the area immediately. If someone follows you after using the ATM, you should quickly go to a safe area that is well populated and well lit. You should report any incident to the police as soon as possible.
Ownership of the Debit Card:
You may request one Debit Card to access your account(s) without a charge. If your Debit Card is lost or stolen, you may also be charged a Replacement Card Fee. These fees are set forth in the Fees brochure. The Debit Card remains our property and you agree to surrender it to us upon demand. We may cancel, modify, or restrict the use of any Debit Card upon proper notice or without notice if: (1) any of your accounts are overdrawn; (2) you use your Debit Card in a manner which may cause a loss to us; (3) your account is inactive, which is defined by us as an account that has had no member-initiated transaction activity for 365 consecutive days; (4) any mail sent to your address is returned to us as undeliverable; (5) any email sent to you by us is returned as undeliverable; (6) your account has one (1) or more NSF items or transactions; (7) we are aware that you have violated any term of this Agreement, whether or not we suffer a loss; or (8) where necessary to maintain or restore the security of your account(s) or the POS system. We also reserve the right to recall the Debit Card through retrieval by any of the ATMs.
Making Electronic Funds Transactions:
You agree to follow the instructions posted or otherwise given by us or any ATM network or POS terminal concerning use of the machine/terminal.
Point-of-Sale (POS) Transactions – Dollar Limitations:
The following daily limits apply to POS transactions you conduct using your Debit Card to the extent you have available funds in your Free Checking/Connect account.
If you have a regular Free Checking/Connect account, and as long as your available balance will cover them, you may use your Debit Card to conduct up to combined ATM and/or POS transactions, not to exceed $1,015 per day for ATM & POS transactions.
At your request, we may make an exception to the dollar limits for each twenty-four (24) hour period on Debit Card transactions to accommodate a single transaction in excess of such limit, provided your available Free Checking/Connect account balance will cover the transaction.
ATM and POS terminal owners, merchants and retailers may restrict cash withdrawals and purchases to lower limits and charge proprietary fees.
Returns and Adjustments (Debit Card):
Merchants and others who honor Debit Cards may give credit for returns or adjustments, and they will do so by sending us a credit slip that we will post to your Free Checking/Connect account.
Foreign Transactions (Debit Card):
Purchases and cash advances processed outside of the United States or in a foreign currency will be billed to your account in U.S. dollars. The conversion to U.S. dollars will be made in accordance with the Visa operating regulations for international transactions. In the event that an international transaction is converted to U.S. dollars the exchange rate between the transaction currency and the billing currency used for processing international transactions will be: (1) 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 (2) the government-mandated rate in effect for the applicable central processing date. The rate in effect on the applicable processing date may differ from the rate on the date you used your Debit Card. When a credit to the account does not fully offset a charge to the account due to changes in the rate, you are responsible for the difference. The Credit Union does not presently charge a fee for purchases or cash advances outside of the United States or in a foreign currency. However, we reserve the right to charge a fee for such purchases or cash advances at a future time.
Card Claims and Transaction Questions:
When you authorize other parties to debit your Free Checking/Connect account, you are responsible for these transactions. Thus, you will be responsible to contact these parties directly if you have questions or complaints about your transactions. Any claims concerning property or services purchased with your Debit Card must be resolved by you directly with the merchant or seller who accepted the Debit Card. You understand that we will not be able to help you because we only have the information received from the third party. Any claim or defense that you assert will not relieve you of your obligation to pay us the total amount of the transaction, unless otherwise permitted by law. You are not permitted to stop payment on any purchase through the use of your Debit Card.
ADDITIONAL DISCLOSURES APPLICABLE TO PIN-LESS DEBIT CARD TRANSACTIONS
With your Debit Card you may make up to eight (8) Point of Sale (POS) withdrawals not involving your card’s PIN up to a maximum of $2,500 per business day, provided you have enough funds or credit in Your Account(s).
PIN-Less Debit Card Transactions:
We allow non-Visa debit transaction processing. This means you may use your Debit Card on a non- Visa network (also known as a PIN-Debit Network) without using a PIN to authenticate your transactions. Visa Operating Regulations generally define a PIN-Debit Network as a non- Visa debit network that typically authenticates transactions by use of a PIN, but that is not generally known for having a card program.
There are two types of authenticated transactions when using a debit card: PIN and signature. In a PIN-based debit card transaction, a cardholder enters a PIN to authorize the transaction. In a signature-based debit card transaction, a cardholder signs a receipt. You may choose to purchase goods and services with your Debit Card through a PIN-Debit Network without the requirement of entering your PIN. The non-Visa debit network that supports PIN-less transactions for the Credit Union may be various networks based on the merchant.
Examples of PIN-less debit transactions include initiating a payment directly with the biller (possibly via telephone, Internet, or kiosk locations), responding to a logo displayed at a payment site and choosing to direct payment through that network, and having your identity verified using known information derived from an existing relationship with you instead of through the use of your PIN.
You understand that the terms and conditions of your agreement with us relating to Debit Card transactions do not apply to non-Debit Card transactions. For example, the additional limits on liability (sometimes referred to as Visa’s Zero Liability program), $50 loss cap, Visa’s provisional credit policies, Visa’s chargeback and dispute resolution rules, and the streamlined error resolution procedures offered on Debit Card transactions are not applicable to transactions processed on a PIN-Debit Network.
ADDITIONAL DISCLOSURES APPLICABLE TO ELECTRONIC CHECK TRANSACTIONS
If you have authorized a one-time transfer of funds from your account via ACH where you have provided a paper check or check information to a merchant or other payee in person, by telephone, or via the Internet, to capture the routing, account, and serial numbers to electronically initiate the transfer (an “Electronic Check Transaction”), the following applies to you:
Types of Available Transactions:
You may authorize a merchant or other payee to make a one-time Electronic Check Transaction from your Free Checking/Connect account using information from your check to (1) pay for purchases or (2) pay bills. You may also authorize a merchant or other payee to debit your Free Checking/Connect account for returned check fees or returned debit entry fees.
You may make such a payment via ACH where you have provided a paper check to enable the merchant or other payee to capture the routing, account, and serial numbers to initiate the transfer, whether the check is blank, partially completed, or fully completed and signed; whether the check is presented at POS or is mailed to a merchant or other payee or lockbox and later converted to an EFT; whether the check is retained by the consumer, the merchant, other payee, or the payee’s financial institution; or you have provided the merchant or payee with the routing, account, and serial numbers by telephone or via the Internet to make a payment or a purchase.
Account Access:
Electronic Check Transactions may be made from your Free Checking/Connect account only. Limitations on Dollar Amounts of Transactions: You may make Electronic Check Transactions only to the extent that you have available funds in your Free Checking/Connect account.
Connect Account:
This is a dividend-earning, checkless, paperless transactional account with a $10 minimum opening deposit and no monthly minimum balance. There is a monthly maintenance fee unless the accountholder conducts one or more transactions with their LAFCU debit card during a calendar month, or enrolls their account in Direct Deposit. There are no overdraft or non-sufficient funds (NSF) fees with this account. If the accountholder overdrafts the account, the transaction will be declined and returned unpaid if there are not sufficient funds in the account, since the account and the overdraft are not eligible for overdraft protection (Courtesy Pay). The accountholder can access online account statements free, with paper statements available for a fee. After the accountholder has handled their account as agreed for 12 months, they can stay in Connect or request to be placed in the LAFCU Free Free Checking/Connect account (applies to negative ChexSystems accounts). Connect has access to a debit card, mobile app & online banking, electronic payments with ACH and Zelle, mobile check deposits, online bill pay, local & nationwide ATMs & Shared Branches, and LAFCU branches. This account is available to individuals aged 13 years and older. For individuals aged 13 to 17, a parent or other sponsoring adult must be a joint accountholder. This account is “BankOn” certified with details available at www.joinbankon.org.
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PART IV: FUNDS AVAILABILITY POLICY (REG. CC)
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Our policy is to make funds from your cash and check deposits available to you on the first (1st) business day after the day we receive your deposit. Electronic direct deposits will be available on the day we receive the deposit.
Once deposited funds are available, you can withdraw the funds in cash and we will use the funds to pay checks that you have written.
Funds from any deposits (cash or checks) made at automated teller machines (ATMs) we do not own or operate will not be available until the seventh (7th) business day after the day of your deposit. This rule does not apply at ATMs that we own or operate (proprietary ATMs). All ATMs that we own or operate are identified as our machines. Funds from any deposits (cash or checks) made at proprietary ATMs may not be available until the second (2nd) business day after the day of your deposit.
For determining the availability of your deposits, every day is a business day, except Saturdays, Sundays, and federal holidays. If you make a deposit before 12:00 am (midnight) Pacific Standard Time on a business day that we are open, we will consider that day to be the day of your deposit.
However, if you make a deposit after 12:00 am (midnight) Pacific Standard Time, or on a day we are not open, we will consider that the deposit was made on the next business day we are open.
Longer Delays May Apply
In some cases, we will not make all of the funds that you deposit by check available to you on the first (1st) business day after the day of your deposit. Depending on the type of check that you deposit, funds may not be available until the seventh (7th) business day after the day of your deposit. However, the first $225 of your deposits will be available on the first (1st) business day after the day of your deposit.
If we are not going to make all of the funds from your deposit available on the first (1st) business day after the day of your deposit, we will notify you at the time you make your deposit. We will also tell you when the funds will be available. If your deposit is not made directly to one of our employees, or if we decide to take this action after you have left the premises, we will mail you the notice or electronically deliver the notice, if you have agreed to receive notices from us in an electronic format, by the business day after we receive your deposit as long as the deposit is made before the established daily cut-off time.
If you will need the funds from a deposit immediately, you should ask us when the funds will be available.
In addition, funds you deposit by check may be delayed for a longer period under the following circumstances:
1. We believe a check you deposit will not be paid.
2. You deposit checks totaling more than $5,525 on any one day.
3. You redeposit a check that has been returned unpaid.
4. You have overdrawn your account repeatedly in the last six (6) months.
5. There is an emergency, such as failure of communications or computer equipment.
We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available no later than the seventh (7th) business day after the day of your deposit.
Special Rules For New Accounts:
If you are a new member, the following special rules will apply during the first thirty (30) days your account is open.
• Funds from electronic direct deposits to your account will generally be available on the same business day we receive the deposit.
• Funds from deposits of cash, wire transfers, and the first $5,525 of a day’s total deposits of cashier’s, certified, teller’s, traveler’s, and federal, state and local government checks will generally be available on the first (1st) business day after the day of your deposit if the deposit meets certain conditions (the checks must be payable to you). The excess over $5,525 will be available on the second (2nd) business day after the day of your deposit. If your deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, the first $5,525 will not be available until the second (2nd) business day after the day of your deposit.
• Funds from all other check deposits will be available on the ninth (9th) business day after the day of your deposit.
Special Notice Regarding Endorsement Standards:
The federal law dealing with funds availability requires the financial institution’s endorsement area on the back of a check be kept clear or unobstructed. This rule is designed to prevent unnecessary delays in processing your deposits as well as to promote speedier returns of dishonored checks. Only the 1-1/2 inch space from the “trailing edge” (the left edge of the check when it is facing you) can be used by you for endorsements or any other markings.
We will not be responsible for any damages incurred in the event you deposit an item which is subsequently returned unpaid by the paying bank and that return is “late” due to markings on the check caused by you or a prior endorser on the back of the check.
In the event that you draw a check on your Free Checking/Connect or loan account with us, you are responsible for any delay or mis-routing of the check caused by markings placed on the check by you that obscure any depository endorsements placed by us or our agent and you agree to hold us harmless and indemnify us from any liability due to such delay or mis-routing.
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PART V: FUNDS TRANSFER AGREEMENT & NOTICE
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Article 4A of the Uniform Commercial Code, as adopted by the State of California, Subpart B of Regulation J, as promulgated by the Board of Governors of the Federal Reserve, and Subpart B of Regulation E, as promulgated by the Consumer Financial Protection Bureau, are the laws and regulations that cover the movement of funds by means of wire transfers, Automated Clearing House (ACH) credits, and some book transfers on the Credit Union’s records.
The foregoing laws and regulations are intended to establish a comprehensive legal framework covering the duties, responsibilities and liabilities of all parties involved in a funds transfer. In this Funds Transfer Agreement and Notice (“Funds Transfer Agreement”), the following words have the following meanings:
• ”We,” “us,” “our” and “Credit Union” mean Los Angeles Federal Credit Union.
• “You,” “your” and “yours” mean each person (whether one or more persons) who has a deposit account with Los Angeles Federal Credit Union and requests Los Angeles Federal Credit Union to send a funds transfer to a designated beneficiary.
• “Funds transfer” means the series of transactions, beginning with the originator’s payment order, made for the purpose of making payment to the beneficiary of the order.
• “Payment order” means an instruction of a sender to a receiving bank, transmitted orally, electronically, or in writing, to pay, or to cause another bank to pay, a fixed or determinable amount of money to a beneficiary, provided that (1) the instruction does not state a condition to payment to the beneficiary other than time of payment; (2) the receiving bank is to be reimbursed by debiting an account of, or otherwise receiving payment from the sender; and (3) the instruction is transmitted by the sender directly to the receiving bank or to an agent, funds-transfer system, or communication system for transmittal to the receiving bank.
• “Beneficiary” means the person to be paid by the beneficiary’s bank.
• “Beneficiary’s bank” means the bank identified in a payment order in which an account of the beneficiary is to be credited pursuant to the order.
• “Receiving bank” means the bank to which the sender’s instruction is addressed, which for purposes of this Funds Transfer Agreement, is the Credit Union.
• “Sender” means the person giving the instruction to the receiving bank.
• “Originator” means the sender of the first payment order in a funds transfer.
• “Fedwire” means the funds-transfer system owned and operated by the Federal Reserve Banks that is used primarily for the transmission and settlement of payment orders governed by Subpart B of Regulation J of the Board of Governors of the Federal Reserve. Fedwire does not include the system for making ACH transfers.
This Funds Transfer Agreement contains several notices which the Credit Union is required to provide to you and establishes other terms of agreement which will apply to all funds transfers which involve you and the Credit Union. Using the Credit Union to send or receive funds transfers will constitute your acceptance of all of the terms and conditions contained in this Funds Transfer Agreement.
To the extent that the terms contained in this Funds Transfer Agreement are different than those in any other agreement or terms of account, this Funds Transfer Agreement will control and be deemed to modify such other agreements or terms of account. If any part of this Funds Transfer Agreement is invalid, illegal, or unenforceable, the remaining provisions will remain in full force and effect.
1. This Funds Transfer Agreement applies to funds transfers as defined in Article 4A of the Uniform Commercial Code (Division 11 of the California Commercial Code), Subpart B of Regulation J of the Board of Governors of the Federal Reserve, and, for international funds transfers, Subpart B of Regulation E of the Consumer Financial Protection Bureau.
2. The Credit Union may establish or change cut-off times for the receipt and processing of funds transfer requests, amendments, or cancellations. Unless other times are posted for the various types of funds transfers, the cut-off time for domestic wire transfers is 1:30 p.m. Pacific Time and for international wire transfers is 12:30 p.m. Pacific Time, on each weekday that the Credit Union is open which is not a federal holiday. Payment orders, cancellations, or amendments received after the applicable cut off time may be treated as having been received on the next business day and processed accordingly.
3. The Credit Union may charge your account for the amount of any funds transfer initiated by you or by any person authorized by you as a joint owner or other authorized party with the right of access to the account from which the funds transfer is to be made (collectively, your “Authorized Agents”). You must provide us with a complete list of your Authorized Agents at the time the funds transfer is initiated, as only you and your Authorized Agents will be permitted to initiate funds transfers from your accounts at the Credit Union. You understand and agree that you are fully responsible for all transactions conducted by your Authorized Agents, regardless of whether such transactions are authorized by you or exceed the amounts of any transaction authorized by you. You must promptly notify the Credit Union of any changes in your Authorized Agents by providing us with written notification of such change. Changes in Authorized Agents by you will be effective the business day following our receipt of written notice.
4. The Credit Union may establish, from time to time, security procedures to verify the authenticity of a payment order, including but not limited to calling any Authorized Agent. You understand and agree that the Credit Union may amend the security procedure(s). You will be notified at the time the payment order is requested of the security procedure(s), if any, to be used to verify payment orders issued by you or for which your account will be liable. You agree that the authenticity of payment orders may be verified using the security procedure(s) established by the Credit Union unless you notify the Credit Union in writing that you do not agree to the specified security procedure(s). In that event, the Credit Union will have no obligation to accept any payment order from you or other Authorized Agents on the account until you and the Credit Union agree, in writing, on an alternate security procedure. Provided the Credit Union complies with the security procedure(s) (or the security procedures as otherwise agreed, or as amended by us), you will be liable for payment of the transferred amount plus transfer fees, even if the transfer request was not actually transmitted or authorized by you. If the Credit Union does not follow the security procedure(s), but can prove the transfer request was originated by you or your Authorized Agent, you will still be liable for the transfer amount plus transfer fees. You authorize the Credit Union to record electronically or otherwise any telephone calls relating to any funds transfer under this Funds Transfer Agreement.
5. If you send or receive a wire transfer, Fedwire may be used. This means that your rights and liabilities in a wire transfer involving Fedwire will be governed by Regulation J. If you request a wire transfer to be sent to a beneficiary in a foreign country, your rights and liabilities pertaining to such wire transfer will also be governed by Subpart B of Regulation E of the Consumer Financial Protection Bureau. The Credit Union will be excused from delaying or failing to execute a funds transfer if it would result in the Credit Union’s exceeding any limitation on its intra-day net funds position established through the Federal Reserve guidelines or if it would result in violating any present or future risk control program of the Federal Reserve or a rule or regulation of other governmental regulatory authorities.
6. If you give the Credit Union a payment order which identifies the beneficiary by both name and identifying account number, payment may be made by the beneficiary’s bank on the basis of the identifying account number, even if the number identifies a person different than the named beneficiary. This means that you will be responsible to the Credit Union if the funds transfer is completed on the basis of the identifying account number you provided the Credit Union.
7. If you give the Credit Union a payment order which identifies an intermediary or beneficiary’s bank by both name and an identifying number, a receiving bank may rely on the number as the proper identification even if it identifies a different person or institution than the named financial institution. This means that you will be responsible for any loss or expense incurred by a receiving financial institution which executes or attempts to execute the payment order in reliance on the identifying number you provided.
8. For international funds transfers, you understand that you will receive a notice regarding your error resolution and cancellation rights at the time you request the international funds transfer, but prior to payment for the transfer.
9. The Credit Union will not be liable for acts or omissions by you or any other person including, without limitation, any funds transfer system, any Federal Reserve Bank, any beneficiary’s bank, and any beneficiary, none of which will be deemed the Credit Union’s agent.
10. The Credit Union may give you credit for ACH payments before it receives final settlement of the funds transfer. Any such credit is provisional until the Credit Union receives final settlement of the payment. You are hereby notified and agree that if the Credit Union does not receive such final settlement it is entitled to a refund from you of the amount credited to you in connection with that ACH entry. This means that the Credit Union may provide you with access to ACH funds before the Credit Union actually receives the money. However, if the Credit Union does not receive the money, then the Credit Union may reverse the entry on your account and you would be liable to repay the Credit Union.
11. ACH transactions are governed by operating rules of the National Automated Clearing House Association. In accordance with these rules, the Credit Union will not provide you with next day notice of receipt of ACH credit transfers to your account. You will continue to receive notices of receipt of ACH items in the periodic account statements which we provide.
12. If the Credit Union receives a funds transfer for you or for other persons authorized to have access to your account, you agree that the Credit Union is not obligated to provide you with next day notice of the receipt of the funds transfer. The Credit Union will provide you with notification of the receipt of all funds transfers by including such items in the periodic account statements which the Credit Union provides. You may of course, inquire between receipt of periodic statements whether or not a specific funds transfer has been received. If the Credit Union receives notice that a wire transfer transmitted by the Credit Union has been rejected, the Credit Union will notify you of such rejection (including the reason given for rejection) by telephone, electronic message, or U.S. mail. The Credit Union will have no further obligation to transmit the rejected wire transfer if it complied with this Funds Transfer Agreement with respect to the original transfer request.
For domestic funds transfers, you have no right to cancel or amend any transfer request after it is received by the Credit Union; however, the Credit Union will use commercially reasonable efforts to act on a cancellation or change request as long as it is received from you in accordance with the agreed-upon security procedures. The Credit Union will have no liability if the cancellation or change is not effected.
For international funds transfers, your right to cancel any such transfer will be set forth in a notice provided to you at the time you request the international funds transfer, but before you pay for the transfer. Generally, if you think there was an error in connection with your international funds transfer request, you must contact us within 180 days of the disclosed date of availability for the transfer. You may cancel an international funds transfer request within thirty (30) minutes of payment, unless the funds have been picked up or deposited.
13. If the Credit Union becomes obligated under Article 4A of the Uniform Commercial Code (Division 11 of the California Commercial Code) to pay dividends to you, you agree that the dividend rate to be paid will be equal to the dividend rate, on a daily basis, applicable to the account at the Credit Union to which the funds transfer should have been made or from which the funds transfer was made.
14. The Credit Union may, in its sole discretion, reject any funds transfer request which: (1) exceeds the collected and available funds on deposit in your designated account(s); (2) is not authenticated to the Credit Union’s satisfaction or which the Credit Union reasonably believes may not be authorized by you; (3) contains incorrect, incomplete, or ambiguous information; (4) involves funds subject to a lien, hold, dispute, or legal process pending their withdrawal; or (5) involves a transfer that is prohibited under applicable law, rule, or regulation. You understand and agree that the Credit Union will incur no liability for any loss occasioned by the Credit Union’s refusal to accept any funds transfer order.
15. The Credit Union will have the right to charge the amount of any funds transfer request to any of your accounts at the Credit Union in the event that no account is designated, or in the event that a designated account has insufficient collected funds to cover the amount of a funds transfer request. The Credit Union may charge a service charge for services relating to the sending or receiving of the funds transfer request. Such charge(s) are set forth in the Credit Union’s Fees brochure, which is incorporated herein by this reference.
16. For international funds transfers, you understand that the Credit Union is required to disclose the exchange rate to be used to effectuate the transfer. You understand and agree that there may be instances in which you request such funds to be delivered in a particular currency, but the funds are later converted into another currency due to facts that cannot be known by us. In such case, we will disclose the exchange rate based on your request, even if the funds are ultimately received in a different currency.
If you do not know the currency in which the funds will be received, or, if you request funds to be received in the currency in which the international funds transfer is funded, the Credit Union may assume that the currency in which funds will be received is the currency in which the funds transfer is funded.
You further understand and agree that if the Credit Union does not have specific knowledge regarding the currency in which the funds will be received, the Credit Union may rely on your representation as to the currency in which the funds will be received for purposes of determining whether an exchange rate is applied to the international funds transfer.
If an international funds transfer is returned for any reason, you agree to accept the refund in United States dollars in the amount of the foreign money credit, based on the then-current buying rate of the bank converting the currency to United States dollars as of the date of refund, less any charges and expenses incurred by the Credit Union.
17. Except as expressly prohibited by applicable state and federal laws and regulations, you understand and agree that the Credit Union will not be liable for any loss or liability arising from: (1) any unauthorized transfer or interest thereon (including, but not limited to, fraudulent transfers and/or a transfer which the Credit Union failed to abide by the agreed upon security procedures) which you fail to report to the Credit Union within thirty (30) days after your receipt of notification of the transfer; (2) any negligent or intentional action or inaction on the part of any person not within the Credit Union’s reasonable control, including, but not limited to, the failure of other financial institutions to provide accurate or timely information; (3) the failure of other financial institutions to accept a funds transfer order; (4) your negligent or intentional action or inaction and/or breach of this Funds Transfer Agreement; (5) any ambiguity or inaccuracy in any instruction given to the Credit Union by you or your Authorized Agent(s); or (6) any error, failure, or delay in execution of any funds transfer instruction, or cancellation or amendment caused by circumstances beyond the Credit Union’s reasonable control, including, but not limited to, any computer or communication facilities malfunction.
Except as otherwise provided by applicable state or federal laws or regulations, the Credit Union’s liability for any negligent or intentional action or inaction in connection with any funds transfer request will be limited to your direct loss and payment of interest. UNDER NO CIRCUMSTANCES WILL THE CREDIT UNION BE LIABLE FOR ANY LOST PROFITS, CONSEQUENTIAL, INDIRECT, PUNITIVE, OR SPECIAL DAMAGES WHICH YOU MAY SUFFER IN CONNECTION WITH THIS FUNDS TRANSFER AGREEMENT AND/OR ANY FUNDS TRANSFER REQUEST.
18. Subject to applicable state and federal laws and regulations, the Credit Union may amend the terms of this Funds Transfer Agreement at any time by providing notice of such amendment to you in writing. By thereafter using or continuing to use the Credit Union’s funds transfer services, you agree to such amendments.
Except as otherwise expressly provided by applicable state and federal laws and regulations, this Funds Transfer Agreement and all transactions initiated hereunder will be governed by and constructed in accordance with the internal laws of the State of California, notwithstanding any conflict of laws doctrines of such state to the contrary.
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PART VI: MEMBER CONDUCT & LIMITATION OF SERVICES POLICY
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The privilege of Los Angeles Federal Credit Union services available to members must be reserved for members who are in “good standing.” You acknowledge and agree that the purpose of this policy is to protect the employees, volunteers and members of the Credit Union from abusive members. To this end, this policy addresses standards of member conduct in order to assure the rights and protection of the Credit Union’s employees, volunteers and members. You further acknowledge and agree that this policy also defines what constitutes a “monetary loss” which may also serve as a basis for limiting member services.
You acknowledge and agree that the Credit Union’s good reputation is due in large part to the loyalty, commitment and continued efforts of its employees, volunteers and members. The Credit Union is committed to treating its employees, volunteers and members with respect and is committed to maintaining a work place free from unacceptable conduct from any source.
In the event that you engage in any type of inappropriate or “abusive behavior” (defined below) towards a Credit Union member, employee or volunteer engaged in Credit Union business, the Credit Union is authorized to apply appropriate remedial measures against you.
This policy extends to any member “not in good standing” who seeks member services whether directly or indirectly through a Credit Union account. This policy also applies to any person, including but not limited to any joint account owner, who has access to Credit Union services directly or indirectly through you.
You will not be considered to be in “good standing” with this Credit Union if:
1. You fail to comply with the terms and conditions of any lawful obligation with this Credit Union and as a result, the Credit Union suffers a “monetary loss” (defined below); or
2. You misuse, manipulate or otherwise abuse Credit Union services or products to the detriment of the Credit Union’s membership; or
3. You engage in inappropriate, harassing, “abusive behavior,” or otherwise injure any person or damage any property while on Credit Union premises, at any Credit Union function, or while on the premises of any Credit Union Service Centers Network; or
4. If any obligation to which you are a party with the Credit Union is in default. If you fail to abide by this agreement or you knowingly make any false or misleading statements in any credit application or update of credit information or engage in any fraud or false statements related to any of the accounts at the Credit Union; or
The determination of whether you are in “good standing” with this Credit Union will be made at the sole discretion of the Senior Management of this Credit Union.
This policy also extends to member conduct at any Credit Union Service Centers Network or any other shared-branching network.
DEFINITIONS
1. “Member services” are hereby defined as any products or services now or hereafter provided or sponsored by the Credit Union or otherwise made available to Credit Union members, which services include, but are not limited to: loans, deposit accounts, ATM services, online banking services, and other electronic fund transfer services.
2. A “monetary loss” to the Credit Union occurs when the Credit Union writes off as uncollectible any monies which you owe, for whatever reason, to the Credit Union. A “charge off” is only for accounting purposes and does not serve as cancellation or waiver of collection on the debt owed to the Credit Union.
(a) For loans: the monetary loss is defined as the principal amount of any monies owed and written off as uncollectible. The amount of the pecuniary loss does not include interest and expenses.
(b) For shares: monetary loss is defined as the negative balance in the share account written off as uncollectible.
3. “Abusive behavior” includes, but is not limited to, any of the following conduct:
(a) Any verbal threats of bodily harm or actual bodily harm or illegal activity against another member or an employee or volunteer engaged in Credit Union business.
(b) Any form of action which may constitute harassment under the Credit Union’s harassment policy.
For example:
• Any type of harassment, including age, sexual, ethnic, or racial harassment; making racial or ethnic slurs, engaging in sexual conduct; making sexual overtures.
• Inappropriate touching.
• Making sexual flirtations, advances or propositions; engaging in verbal abuse of a sexual, racial or ethnic nature; making graphic or degrading comments about an individual or his or her appearance.
• Displaying sexually suggestive objects or pictures.
(c) Fighting, kicking or other physical harm or attempted harm towards a Credit Union member, employee or volunteer engaged in Credit Union business. For example:
• Engaging in offensive or abusive physical contact.
• Making false, vicious or malicious statements about any Credit Union employee or volunteer or the Credit Union and its services, operations, policies, practices, or management.
(d) Using profane, abusive, vulgar, intimidating or threatening language directed towards a Credit Union member, employee or volunteer engaged in Credit Union business.
(e) Bringing or possessing firearms or weapons or any hazardous or dangerous device on Credit Union premises or at a Credit Union function or on the premises of any Credit Union Service Centers Network.
(f) Possession, sale, use or being under the influence of an unlawful or unauthorized substance (e.g., drugs or alcohol) on Credit Union premises or at a Credit Union function or on the premises of any Credit Union Service Centers Network.
(g) Attempting to coerce or interfere with a Credit Union employee or volunteer in the performance of their duties at any time.
(h) Uncivil conduct or failure to maintain satisfactory or harmonious working relationships with other members, employees and volunteers at the Credit Union.
(i) Conducting or attempting to conduct or engage in any fraudulent, dishonest or deceptive activity of any kind involving Credit Union employees or Credit Union services.
(j) Any posting, defacing, or removing notices or signs on Credit Union premises, or writing on Credit Union bulletin boards without senior management authorization.
(k) Appropriation or misappropriation of Credit Union funds, property or other material proprietary to the Credit Union.
(l) Deliberate or repeated violations of security procedures or safety rules.
(m) Any other act which endangers the safety, health or well being of another person or which is of sufficient magnitude that it causes disruption of business at the Credit Union.
This list is non-exhaustive and is used only as an example of types of behavior that may be viewed as “abusive” by the Credit Union.
POLICY
You acknowledge and agree that the availability of member services for members who are not in good standing with this Credit Union will be restricted. Any or all of the following actions may be imposed against a member who is deemed to be “not in good standing”:
1. Denial of all services other than the right to maintain a share account and the right to vote at annual and special meetings.
2. Preclusion from personal contact with Credit Union employees or volunteers such that Credit Union services may be available only through written communication through the U.S. mail, ATM, online banking, telephone banking, or other remote access device designated by Credit Union Senior Management.
3. Preclusion from access to the Credit Union premises.
4. Preclusion from access to any Credit Union Service Centers Network or any other shared-branching network and revoking any shared branching privileges.
5.Taking any other action deemed appropriate under the circumstances that is not precluded by the Federal Credit Union Act, NCUA Rules and Regulations, the Credit Union’s Bylaws or other applicable federal or state law.
You acknowledge and agree that any threats of bodily harm or any other illegal activity against any Credit Union employee, volunteer or other member will be reported to appropriate federal, state and/or local authorities.
In the case of continued abusive behavior or an extremely abusive incident, you acknowledge and agree that you may be subject to expulsion from the Credit Union at a special meeting of the members or at the next annual meeting of the membership.
These limitations will not prohibit you from exercising your rights under federal or state law or regulation.
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PART VII: TELEPHONE SOLICITATION & DO NOT CALL POLICY
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Los Angeles Federal Credit Union does engage in telephone solicitation as permitted by law. The Credit Union’s policy is to refrain from telephone solicitation using any telephone number contained in current state or federal “Do Not Call” lists. Los Angeles Federal Credit Union employees receive training on the processes necessary to document Your telephone marketing choices. If you request the Credit Union not make telephone solicitations to you, you will be placed on Our Do Not Call list and you will not be telephoned in any future solicitation campaigns, including those of the Credit Union’s affiliates. It is hereby disclosed to you that should you communicate with the Credit Union by telephone, the Credit Union may monitor or record the telephone call. For calls placed on hold, you may hear pre-recorded messages concerning the Credit Union’s products and services. You may request that the Credit Union not solicit you via telephone. In the event that the request is made not to solicit you, the Credit Union will also place you on both the Credit Union’s ‘’No Marketing Mail” and “Privacy” lists.
IMPORTANT: It is important that you inform the Credit Union of your telephone marketing preferences. If you do not inform the Credit Union of your telephone marketing preferences and any state or federal law requires that Los Angeles Federal Credit Union obtain your express consent (written or otherwise) prior to making any telephone solicitation, we will obtain such consent in accordance with applicable law before proceeding with such solicitation or marketing.
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PART VIII: YOUR LIABILITY FOR OVERDRAFTS
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GENERAL. You are responsible for keeping track of the funds in your account that are available for you to use before you write a check, make a cash withdrawal at an ATM, or use your debit card for a transaction. Among other things, you should keep a running balance that reflects all of your transactions. It is imperative that you keep track of the transactions you may have authorized (such as outstanding checks or automatic bill payments you have authorized), as your available balance (discussed in more detail below) will not reflect these transactions until they are paid from your account.
“Overdrawing” your account means that there are not sufficient available funds in your account to pay for a transaction.
PAYMENT OF OVERDRAFTS. We are not obligated to pay any item presented for payment if your account does not contain sufficient available funds. If we pay a transaction that overdraws your account, we are not obligated to continue paying such transactions in the future. We may pay all, some, or none of your overdrafts, without notice to you.
We recommend that you enroll in one of the optional overdraft protection plans described below. These plans can help you avoid overdrafts and returned items. While fees apply when you use an optional overdraft protection plan, the fees under the plan are less expensive than NSF and Courtesy Pay Fees. Refer to the “Optional Overdraft Protection Plans” section below for more information.
YOUR FREE CHECKING/CONNECT ACCOUNT BALANCE. Your Free Checking/Connect account has two kinds of balances: the “actual” balance and the “available” balance. Both can be checked when you review your account online, at a Credit Union-owned ATM, by phone, or at a branch. It is important to understand how the two balances work so that you know how much money is in your account at any given time. This section explains actual and available balances and how they work.
Your actual balance is the amount of money that is actually in your account at any given time, but not all funds included in this balance are considered accessible for transactions on your account. The actual balance is also referred to as: (a) your “Account Balance” on Credit Union ATM screens; and (b) your “Balance” or “Account Balance” in online banking, and (c) your “Current” balance in mobile banking. Your actual balance reflects transactions that have posted to your account, but not transactions that have been authorized and are pending or pending deposits that are subject to holds under our Funds Availability Policy. While the term “actual” may sound as though the number you see is an up-to-date indication of what is in your account that you can spend, that is not always the case. Your actual balance will not reflect any purchases, holds, fees, other charges, or deposits made on your account that have not yet posted. For example, if you have a $50 actual balance, but you just wrote a check for $40, then your actual balance is $50 but it does not reflect the pending check transaction. So at that point, you have an actual balance of $50, but you have already spent $40.
Your available balance is the amount of money in your account that is available to you to use without incurring an overdraft fee. The available balance takes into account factors such as holds placed on deposits and pending transactions (such as pending debit card purchases) that the Credit Union has authorized but that have not yet posted to your account. For example, assume you have an actual balance of $50 and an available balance of $50. If you were to use your debit card at a restaurant to buy lunch for $20, then that merchant could ask us to pre-authorize the payment in that amount (or even a different amount). Under this example, if the merchant requested pre-authorization in the amount of $20, we will place a “hold” on your account for $20 (referred to as an “authorization hold”). Your actual balance would still be $50 because this transaction has not yet posted, but your available balance would be $30 because of the restaurant’s pre-authorization request that resulted in an authorization hold on $20 in your account. When the restaurant submits its bill for payment (which could be a few days later and for a different amount than the amount of the authorization hold), we will release the authorization hold, post the transaction to your account and your actual balance will be reduced by the amount of the posted transaction.
Your account is considered overdrawn when the available balance in your account is negative (less than $0).
YOU ACKNOWLEDGE THAT YOU MAY STILL OVERDRAW YOUR ACCOUNT EVEN THOUGH THE AVAILABLE BALANCE APPEARS TO SHOW THAT THERE ARE SUFFICIENT FUNDS TO COVER A TRANSACTION THAT YOU WANT TO MAKE. This is because your available balance may not reflect all your outstanding checks, automatic bill payments that you have authorized, or other outstanding transactions that have not yet been paid from your account. In the example above, the outstanding check will not be reflected in your available balance until it is presented to us and paid from your account.
In addition, your available balance may not reflect all of your debit card transactions. For example, if a merchant obtains our prior authorization but does not submit a one-time debit card transaction for payment within three (3) business days of authorization (or for up to thirty (30) business days for certain types of debit card transactions, including but not limited to car rental transactions, cash transactions and international transactions), we must release the authorization hold on the transaction. The available balance will not reflect this transaction once the hold has been released, which generally occurs when the transaction has been received by us and paid from your account. Refer to the section entitled “Authorization Holds for Debit Card Transactions” below for information about how authorization holds affect your available balance.
Finally, your available balance may not reflect the most recent deposits to your account. Refer to our Funds Availability Policy for information regarding the availability for withdrawal of your deposits.
HOW TRANSACTIONS ARE POSTED TO YOUR ACCOUNT
There are basically two types of transactions in your account: credits or deposits of money into your account, and debits or 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.
We can receive credit and debit transactions in different forms at various times each business day. We reserve the right to determine the timing and order in which such transactions are posted to your account to the extent permitted by law. We determine the order in which we process and post credits and debits to your account based on a number of factors.
We may pay or authorize some transactions, and decline or return others, in any order we deem appropriate to the extent permitted by law. When the available balance in your account is not sufficient to cover all of the transactions presented that day, some posting orders can result in more returned items and more overdraft and returned item fees than other posting orders.
Some items are received by us individually and others are received in batches at various times each business day. Items that we currently receive individually include ATM withdrawals, point-of-sale (POS) transactions, and teller transactions. These individual items are generally posted to your account as they are received by us each business day. Items that we currently receive in batches include checks drawn on your account presented by other financial institutions, “on us” checks, and ACH transactions. Items within a batch presented at the same time on any given day are cleared in dollar amount order, lowest to highest amount, beginning with lower dollar amounts clearing first, followed by higher dollar amounts. We generally post batched transactions as they are received throughout each business day (subject to certain exceptions). For ACH batch transactions we receive at the same time on a particular business day, we will generally post credits first and the debit items in low-to-high dollar amounts.
The order in which items are posted to your account will depend on a number of factors. For example, in connection with our item posting process, we reserve the right to: (i) establish different categories of items, (ii) establish a posting order for each category of item(s), (iii) establish different posting orders for items within each category, and (iv) change the timing of when items are posted during the day and whether they are posted individually or in batches. Except to the extent limited by applicable law, we have the right to change any of the factors described in (i), (ii), (iii) and (iv) listed above at any time without notice to you.
AUTHORIZATION HOLDS FOR DEBIT CARD TRANSACTIONS
When you use your debit card to pay for goods or services, the merchant may seek pre-authorization from us for the transaction. When we preauthorize the transaction, we commit to make the requested funds available when the transaction finally posts and as such, we generally place a temporary hold against some or all of the funds in the account linked to your debit card, based on the amount of the pre-authorization request from the merchant. We refer to this temporary hold as an “authorization hold,” and the amount of the authorization hold will be subtracted from your available balance as authorization requests are received by us throughout each day. Until the transaction finally settles or we otherwise remove the hold (for example, we may remove the hold because it exceeds the time permitted, as discussed below, or we determine that it is unlikely to be processed), the funds subject to the hold will not be available to you for other purposes. At some point after you sign for the transaction, it is processed by the merchant and submitted to us for payment. This can happen hours or sometimes days after you signed for it, depending on the merchant and its processing company. These payment requests are received in real time throughout the day and are posted to your account as they are received.
The amount of an authorization hold may differ from the actual transaction amount because the actual transaction amount may not yet be known to the merchant when the authorization request is submitted. For example, this can happen in connection with transactions where your debit card is swiped before your actual transaction amount is known, such as at a restaurant or gas station (e.g., at a restaurant, you may choose to add a tip to the transaction amount). For these types of transactions, there may be no authorization hold, or the amount of the authorization hold may be different from the transaction amount. In some other cases we may not receive an authorization request from the merchant, and there will be no authorization hold reflected in your available balance. We cannot control how much a merchant asks us to authorize, or when a merchant submits a transaction for payment.
We are permitted to place an authorization hold on your account for up to three (3) business days (or for up to thirty (30) business days for certain types of debit card transactions) from the time of the authorization or until the transaction is paid from your account. However, if the transaction is not submitted for payment, we will release the authorization hold, which will increase your available balance until the transaction is submitted for payment by the merchant and finally posted to your account. If this happens, we must honor the prior authorization and will pay the transaction from your account.
In certain instances, when the amount of the authorization hold is either more or less than the amount of the actual transaction, we may maintain the authorization hold even after the purchase amount is actually paid from your account. However, in these instances, we will not maintain an authorization hold for longer than three (3) business days (or for up thirty (30) business days for certain transactions).
COURTESY PAY SERVICE AGREEMENT
What is Courtesy Pay?
Courtesy Pay is a service LAFCU adds to certain checking accounts to cover inadvertent overdrafts to a set limit, subject to the eligibility criteria as explained below. An overdraft occurs when there are insufficient available funds (also referred to as insufficient “available balance”) to pay a transaction, but we pay it anyway under our Courtesy Pay service. As a result of paying an overdraft transaction in such a situation, your account’s available balance will be negative and you may also be charged a Courtesy Pay fee as stated in our Fee Schedule. With Courtesy Pay we will, as a discretionary service and not as a right or obligation guaranteed to you, strive to pay your reasonable overdrafts when your account is in good standing, meeting eligibility criteria, and we reserve the right not to pay.
Good standing includes the following criteria:
• Age of account
• Number of deposits
• Dollar amount of deposits
• Deposit patterns
• Repayment patterns
• Overdraft Activity
For example, we typically do not pay overdrafts if your account is not in good standing, or you are not making regular deposits, or you have too many overdrafts. When we pay overdraft items for you, you will be charged our normal Courtesy Pay fee for each item that is presented. All deposits to overdrawn accounts are applied to the negative balance.
Eligibility - No application is required for Courtesy Pay; eligibility is at the sole discretion of LAFCU and is based on the type of checking account and on you managing your checking account in a responsible manner.
Non-Eligible Account Types
• Connect / Second Chance Checking / Health Savings Accounts / Money Market
• Coogan / CUTMA / Guardianship / Conservatorship / Rep Payee
• Club / Organization
• Corporation
Suspension/Revocation - Your Courtesy Pay may be suspended or permanently removed based on the following criteria:
• Your account type is not eligible
• You are more than 30 days past due on any LAFCU loan / Visa, or delinquent on any other obligation to LAFCU
• You are subject to any legal or administrative orders, levy, or are currently a party in a bankruptcy proceeding
• Your account is being reviewed for fraudulent activity or transactions
• The primary account owner is less than 18 years old
• A ChexSystems or another negative indicator has been reported to us
• You have an outstanding balance on an overdraft repayment plan
• Your account is dormant / inactive
• You have an unresolved prior loss with LAFCU
• We do not have a valid address for you
Transactions Covered – Courtesy Pay will be available for all checks written, ACH transactions, preauthorized automatic transfers, and Online Banking / Bill Pay. Courtesy Pay will not be available for ATM and everyday debit card transaction unless you authorize LAFCU and/or complete a Courtesy Pay Coverage Selection form.
NOTE: If you have consented to Courtesy Pay for ATM transactions, please verify your balance before initiating an ATM cash withdrawal. All ATM cash withdrawal overdrafts will be subject to our Courtesy Pay fee, if you have authorized payment of such overdrafts, for each withdrawal until the account returns to a positive balance.
Opt-Out - Courtesy Pay can be an expensive way of handling your account and you have the option to have this service removed at any time by writing us at Los Angeles Federal Credit Union 300 S. Glendale Avenue, Glendale, CA 91205 or contact your local LAFCU branch. It is important for you to consider that by opting out of this service without some other form of overdraft plan such as an account transfer or line of credit (which is offered to qualified accounts) you are instructing us to return unpaid all items presented against insufficient available funds. If you opt out, you will still be charged our Non-Sufficient Funds (NSF) fee. Members who receive a Social Security, federal direct deposit, or any other entitlement benefit must opt out if they do not want LAFCU to apply those funds to pay an overdraft.
Fees – We may assess a fee for each item that we either pay, which results in an overdraft, or do not pay, which would have resulted in an overdraft had we paid it. If we pay an item in accordance with our Courtesy Pay Service, we will charge a Courtesy Pay Fee as indicated on our Fee Schedule. If we return an item unpaid due to insufficient available funds, we will charge a Non-Sufficient Funds (NSF) Fee as indicated in our Fee Schedule each time the item is presented. Refer to the Consumer Fee Schedule and Business Fee Schedule, which are updated periodically, for a complete listing of fees.
NOTE: Please be aware that holds placed on your account for pending electronic transactions, such as hotel or rental car deposits, reduce your available balance and may cause your account to become overdrawn. Please refer to the information included in our account agreement regarding debit card authorization holds and their effect on your available balance.
Limitations on Fees - We limit the number of NSF and Courtesy Pay Fees we charge in a business day. The maximum number of overdrafts due to insufficient or unavailable funds that will be subject to overdraft charges in one day is five (5). We will not charge a fee for any item that is $5 or less, even if your ending available account balance is negative.
Represented Items – If your account does not have sufficient available funds when a transaction or item is presented to us for payment and, as a result, returned unpaid, the merchant or payee of your transaction or item may choose to resubmit the same transaction, and may do so multiple times. This may also occur when you initiate transfers and payments through your Credit Union Online Banking or Bill Payer services and your account lacks sufficient available funds at the time the transaction is scheduled to occur, as we may decline the transaction, charge a NSF Fee, and then resubmit the same transaction at a later time in an attempt to process your requested transaction. In the event a transaction or item is resubmitted for payment at a time when your account lacks sufficient available funds to pay it and we decline it, we will charge a related NSF Fee for each such resubmitted item each time that same transaction is returned unpaid or a Courtesy Pay Fee if a resubmitted item is paid when your account lacks sufficient available funds to pay it.
Discretionary Service – Courtesy Pay is a discretionary service. We are not obligated to pay any item presented for payment if your account does not contain sufficient available funds. If we pay a transaction that overdraws your account, we are not obligated to continue paying such transactions in the future. We may pay all, some, or none of your overdrafts, without notice to you. You are liable to us to repay any overdrafts on your account whether you created them or not. If you do not pay us, and we take collection action against you, you agree to pay for our costs of collection. We may close, without notice, any account with excessive insufficient funds activity, and report the account to a consumer reporting agency. Any payment made by us under Courtesy Pay will be made on a case-by-case basis, in our sole and absolute discretion. Courtesy Pay does not constitute an actual or implied agreement between you and LAFCU, nor does it constitute an actual or implied obligation LAFCU. Courtesy Pay is a privilege that the credit union provides from time to time, and which may be withdrawn or withheld by the credit union at any time, without prior notice, reason, or cause.
How Courtesy Pay is Administered - In our sole discretion, we may notify you by mail, or, if you have agreed to receive notices from us in an electronic format, you may be notified electronically, of any nonsufficient funds checks, items or other transactions that have been paid or returned; however, we are not required to so notify you. You also acknowledge and agree that we have no obligation to notify you before we pay or return any check, item or other transaction. We may refuse to pay any overdrafts without first notifying you even though your account is in good standing and even if we have paid previous overdrafts.
Repayment – Any overdraft paid by Courtesy Pay will be immediately charged against your account and a Courtesy Pay fee will also be assessed. Your account’s available balance will be negative if this occurs. The total of the overdraft (negative) balance in your checking account, including all fees and charges, is due and payable upon demand, and you are required to immediately deposit sufficient funds to cover the overdraft paid by us and pay the related fees. If your account is not brought to a positive balance before the 45th calendar day, your account may be charged-off and your credit risk profile may be affected. If you are unable to bring your account positive, contact us to discuss next steps or alternative arrangements.
Transfer / Right of Setoff – You understand and agree that we have the right to transfer available funds to your account from any of your other account(s) with us (excluding IRAs and certificate accounts), including account(s) upon which you are a joint owner, in an amount equal to the overdraft and related fees. In addition to any other rights that we may have, you agree that any deposits or future deposits in or other credits to any account in which you may now or in the future may have an interest are subject to our right of setoff for any liabilities, obligations or other amounts owed to us by you (e.g., overdrafts and any related fees and charges). Moreover, unless you opt-out of Courtesy Pay, you consent and expressly agree that the application of setoff of funds in any account includes the setoff of government benefits (such as Social Security and other public benefit funds) deposited to the account from which the overdraft or related fees are paid to the maximum extent permitted by applicable state and federal law. Each person who causes an overdraft, which is paid by us, agrees to be individually and jointly obligated to repay the unpaid negative balance in accordance with the terms and conditions of this Courtesy Pay disclosure.
Default - You will be in default if you fail to comply with any of the terms and conditions set forth in this Courtesy Pay disclosure or are in default on any loan obligation with us and/or a negative balance exists in any other deposit account with us on which you are an owner. If you are in default, in addition to any other rights we may have, we may temporarily suspend Courtesy Pay, terminate the Service, or close your account and demand immediate payment of the entire unpaid negative balance. You also agree to pay any collection costs, attorneys’ fees and court costs that we may incur as a result of your default.
Termination / Suspension - We may terminate or suspend the Service at any time without prior notice. In no event will any termination relieve you of your obligation to repay any negative account balance, overdraft fees, collection costs and attorneys’ fees, if any. We can delay enforcing any of our rights under this Agreement without losing them.
Excessive Use - Presenting items against insufficient funds and having them paid with Courtesy Pay or having them returned is an expensive practice. At LAFCU we have other less expensive methods to handle insufficient funds that may be a better service for you. We monitor member accounts for chronic or excessive use, and you may be contacted periodically to discuss alternatives and/or continued use of Courtesy Pay. If you would like to start a conversation about these alternatives, which include lines of credit, account transfers, and our Connect account, please call us or visit one of our branches.
Financial Education - LAFCU believes that financial literacy and education helps customers make informed decisions. Heightened awareness of personal financial responsibility helps customers realize the benefits of responsible money management, understanding the credit process and the availability of help if problems occur. www.MyMoney.gov is the federal government’s website that serves as the one-stop for federal financial literacy and education programs, grants and other information. To request a personal financial toolkit, call 1-888-MyMoney.
Account Agreement - Your account agreement describes the duties, obligations, and rights of depositors, authorized signatories and LAFCU with regard to your deposit accounts. That account agreement is incorporated herein for all purposes as if it were set forth verbatim as to matters not directly addressed by this disclosure. Your account agreement and this disclosure shall be construed so as to minimize conflicts between them.
Remedy - You and LAFCU agree that the exclusive remedy and forum for all disputes arising out of Courtesy Pay or your or LAFCU’s performance there under, except for matters you or LAFCU take to small claims court, is arbitration by an independent arbitrator pursuant to the applicable rules of the American Arbitration Association, except as prohibited by law. Please review Part 1 of your Account Agreement for further information regarding arbitration of disputes.
Waiver - LAFCU’s forbearance from, or delay in, exercising any of LAFCU’s rights, remedies, privileges, or right to insist on your strict performance of any provisions of your account agreement, this Courtesy Pay disclosure, or any other provision related to your account, shall not be construed to be a current or future waiver of LAFCU’s rights, remedies or privileges.
What You Need to Know about Overdrafts and Overdraft Fees
An overdraft occurs when your LAFCU checking account’s available balance is insufficient to cover a transaction, but we pay it anyway. Please see our Master Account Agreements and Disclosures provided to you, which is incorporated herein by this reference for details regarding the “available balance.” We can cover your overdrafts in two different ways:
1. We have Standard Overdraft Practices (also referred to as our “Courtesy Pay service”) that come with certain accounts. (See Courtesy Pay disclosure for complete details.)
2. We also offer Optional Overdraft Protection Plans, such as a link to a savings account or to a line of credit, which may be less expensive than our standard overdraft practices.
Standard Overdraft Practices
What are the standard overdraft practices that come with my account?
We do authorize and pay overdrafts for the following types of transactions:
• Checks and other transactions made using your checking account number
• Online Bill Payments and Online Banking Transfers
We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below):
• Everyday debit card transactions
• ATM Withdrawals
We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined.
What fees will I be charged if LAFCU pays my overdraft under standard overdraft practices?
There is no cost to you if you never have an overdraft. We will charge you a fee of up to $29 each time we pay an overdraft using Courtesy Pay. There is a limit of $145 on the total fees we will charge you for overdrawing your account on a single day. These amounts may change from time to time. We will provide you notice if they do, and you can always reference our current Fee Schedules online and at our branch locations.
What if I want LAFCU to authorize and pay overdrafts on my ATM and everyday debit card transactions?
Simply call us, visit a branch, complete a secure form within Online Banking under the “more links” tab, or complete and return the Courtesy Pay Coverage Selection form below. No action on your part is needed if you want Standard coverage which applies to checks, ACH debits, recurring debit card payments, Online Bill Pay items, and Online Banking transfers.
Optional Overdraft Protection Plans
What optional overdraft protection plans are available?
We offer optional overdraft protection plans that you may apply for, such as a personal Line of Credit loan account where your line of credit is used for overdraft protection, and an Overdraft Transfer Service where funds from a linked savings account are used for overdraft protection. Transfers will appear on your periodic statements for each applicable account. If you qualify for these optional services, we will look first to these services for overdraft protection before applying our Courtesy Pay Service when your account is overdrawn.
Line of Credit - This is a revolving line of credit, which is available to members meeting certain credit requirements. With this plan, you authorize us to automatically advance the exact amount of your overdraft from your Line of Credit that is linked to your checking account to cover your overdraft, up to your credit limit. You must repay what you have borrowed in full or in minimum monthly payments (in addition to any late charges, finance charges and annual fees).
If you are approved for a Line of Credit, you will be provided with our Credit Line Account Agreement and Disclosure, which contains the terms and conditions applicable to the Line of Credit.
Overdraft Transfer Service - With this service, you authorize us to make transfers of available funds automatically from your regular savings account to cover overdrafts in your Free Checking/Connect account. Transfers from your savings account are made in the exact amount of the overdraft. Each transfer counts as one of the limited transactions you are allowed each month from your regular savings or money market account. You must request to enroll in this service. Overdrafts paid by the Overdraft Transfer Service are subject to a per-item Overdraft Transfer Fee of $6 as set forth in the Fees brochure.
A Line of Credit and the Overdraft Transfer Service may save you money on the total fees you pay us for overdraft protection. If you decline to utilize any of the optional overdraft protection plans and you are not eligible for Courtesy Pay, and there are insufficient available funds in your account to pay an item, your items will not be paid, they will be returned, and an NSF Fee will be charged for each item returned.
What are the limits on Optional Overdraft Protection Plans?
We will not transfer more than the available account balance in a linked regular savings account or the available credit (as of the end of the previous business day) on a Line of Credit account, even if the amount of the overdraft is more than the available amount. If the available balance in a linked regular savings account or the available credit on a Line of Credit account is not enough to pay the transactions you have initiated on any day plus the Overdraft Transfer Fee, we will transfer enough funds to pay one or more transactions plus the fee. Any transactions that are not paid by the transfer will either be paid or returned, and Overdraft Transfer Fees or NSF Fees will be charged as if you did not have overdraft protection.
Who can cancel Optional Overdraft Protection Plans?
We may terminate optional overdraft protection services at any time with or without notice to you. Any owner of an account, any owner of a linked regular savings account used for overdraft protection, or any borrower on a Line of Credit account used for overdraft protection may cancel overdraft protection in person or in writing. Cancellation will be effective after we have received notice and have had a reasonable time to act on it.
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IF YOU DO NOT UNDERSTAND ANY PROVISION IN THIS PART VIII, YOUR LIABILITY FOR OVERDRAFTS, OR IF YOU HAVE ANY QUESTIONS, PLEASE CONTACT US DURING BUSINESS HOURS.