Account Agreement & Disclosures

Contents

• Membership
• Potential Member Saver Reward
• Dividends (Savings and Checking Accounts)
• Savings Accounts
• Checking Accounts
  • Your Responsibility for Check Negotiation
  • Payment of Drafts (Checks)
  • Stop Payments
  • Overdraft Line-of-Credit Loan
  • Your Liability for Overdrafts
    • General
    • Your Available Balance
    • Authorization Holds for Debit Card Transactions
    • Payment of Overdrafts
    • Overdraft Transfer Service
    • Courtesy Pay Overdraft Service
• High Yield Deposit Accounts
• Certificates of Deposit (CDs)
• Health Savings Accounts (HSAs)
• Club Accounts
• ATM and Visa^® Debit Card Terms and Conditions
• Other Terms and Conditions
• Privacy Notice & Disclosure
• Notices
  • Binding Arbitration and Class Action Waiver
• Regulation E Disclosures on Electronic Funds Transfers
  • Consumer Accounts
  • Documentation
  • Preauthorized Payments
  • Non-Consumer Accounts
• Funds Availability - DEPOSIT AVAILABILITY POLICY
  • Regulation CC Disclosures
  • Deposit Availability Schedules
    • In-person to a Teller or Through the Mail
    • At a Dow Credit Union (Proprietary) ATM
    • At a Non-Proprietary (not owned or operated by Dow Credit Union) ATM
    • At a Night Drop Box
  • Checks Drawn on Foreign Banks
• Uniform Commercial Code Article 4A
• Notice Regarding Credit Entries Transmitted Through the Automated Clearing House
• Account Fee Schedule

This is the Agreement between you, the account owner, and DOW CREDIT UNION (Credit Union) headquartered in Midland, Michigan, a cooperative, nonprofit entity organized under the Michigan Credit Union Act, regarding your accounts with the Credit Union. By establishing an account with the Credit Union, you agree that this Agreement is a binding contract between you and the Credit Union.

You should retain a copy of the agreement and feel free to call the Credit Union if you have any questions. This Agreement also includes, but is not limited to, certain disclosures required under the Truth in Savings Act, the Electronic Funds Transfer Act (Regulation E), the Funds Availability Act (Regulation CC), Uniform Commercial Code Article 4A and other rules/laws regulated by the Michigan Department of Insurance and Financial Services, National Credit Union Administration, Federal Reserve Board and/or Consumer Financial Protection Bureau. The words “you” and “your” mean the member owner and any joint owners or co-depositors or co-borrowers. The words “we”, “our”, “us”, and the “Credit Union” mean the DOW CREDIT UNION.

Membership

Dow Credit Union is committed to providing superior financial services, one member at a time. Membership in this Credit Union shall consist of:

• Employees and retirees of Dow Inc. and its affiliated companies
• Employees and retirees of Select Employer Groups*
• Employees and retirees of the Dow Credit Union
• Any relative of any member, employee or retiree described above
• Any individual living under the same roof and in the same single-family household of any member, employee or retiree described above
• Revocable Trusts in which the Grantor is also a member of Dow Credit Union
• Individual owners** of stock in Dow Inc.

*Certain companies who demonstrate a business relationship with Dow Inc. or Dow Credit Union may be eligible for membership. To find out if a company is currently eligible, or to find out how a company may apply for eligibility, please visit dowcreditunion.org or call our us at 989.835.7794 or 800.835.7794.

**Individuals who own one or more shares of Dow Inc. stock in their own name are eligible for membership. This does not include Dow Inc. stock held within a retirement, 401(k) or other investment plan by another institution or group.

NOTE: The information provided above is informational only. Membership in Dow Credit Union is determined by the Dow Credit Union Bylaws. Account holders who are members are the Member-Owners of that account. Joint account holders may become members of Dow Credit Union if they are eligible for membership and open their own account. Membership in Dow Credit Union grants Member-Owners the right to participate in the democratic member control of Dow Credit Union, and also permits the Member-Owner to be able to submit loan applications for lending consideration.

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.

Inability to properly verify your identity according to Dow Credit Union policy and federal law may result in denial of credit union membership or account closure.

Potential Member Saver Reward

The Dow Credit Union Board of Directors may choose from time to time, at their discretion, to distribute a special dividend to members in good standing. One of the ways Dow Credit Union may use the special dividend is to proportionately payout an extra dividend at a declared time, typically January 1st, based on the earnings members receive from eligible deposit products in the previous year. The special dividend is the Member Saver Reward.

Deposit account earnings will be eligible for the Member Saver Reward calculation, unless you elect for a deposit product type that is not eligible for Member Saver Reward consideration.

Members in good standing are defined as those members who have at least $5 in their Prime Share Savings Account on December 31st of that year, have had no delinquent accounts, have not had adverse collection activities on their account, and have not had accounts charged off. Members who are in default or who have caused the credit union a loss typically are not eligible for year-end rebates and rewards. This definition is subject to change.

While the Member Saver Reward occurs with great regularity, this credit union benefit is not guaranteed.

Dividends (Savings and Checking Accounts)

Nature of Dividends. Dividends are paid from current income and available earnings, after required transfers to reserves at the end of a dividend period.

Rate and Annual Percentage Yield (“APY”). Your share accounts will earn what are known as dividends. Dividends are like interest, except that the dividend rate is set by Dow Credit Union’s Board of Directors (the “Board”) from time to time, and dividends are not guaranteed. Dow Credit Union estimates a prospective dividend rate and prospective annual percentage yield (APY) on your Savings (Share) and Checking (Share Draft) Accounts for each dividend period. The prospective dividend rate for each quarter will be determined in the third month of the previous quarter.

The dividend rate and APY may change every calendar quarter as determined by the Board. Past or prospective dividend rates will be available each business day at our office. The words “dividend” and “interest” may be used interchangeably in this Agreement.

Calculating Dividends. Dividends are calculated by the daily balance method which applies a daily periodic rate to the balance in the account each day. Dividends on non-cash deposits (checks) begin to accrue on the day the deposit is received by us and will accrue to, but not including, the day of withdrawal or transfer.

Compounding. We compound your dividends, even though that isn’t required by law. Compounding is more favorable to you, because once dividends have been earned by your account they are added to the balance on which you will continue to earn dividends. Because we compound dividends, the actual yield on your account may be somewhat higher than the annual dividend rate. The Annual Percentage Yield (APY) will be posted along with the annual interest/dividend rate.

For Savings and Checking 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. Dividends will be compounded quarterly.

Crediting Dividends. Dividends will be credited quarterly. Dividends are not available to you until they have been credited to your account. Even though your account earns dividends every day, we don’t actually credit them to your account until the first day of the subsequent quarter. Dividends that are credited to your account will be added directly into your account. Dividends on closed accounts will generally be paid on the following payment date for that quarter unless you waive your right to receive the dividends for that quarter. However, we reserve the right to calculate and pay such dividends on the date you close your account, subject to applicable laws and regulations.

How Withdrawals Affect Dividends. Even though we don’t credit your dividends to your account until the date specified above, we calculate them on a daily basis. Therefore, if you make a withdrawal, you won’t receive any further dividends on that amount from the day you make the withdrawal until the day that dividends are credited.

Savings Accounts

Membership. To become a member of Dow Credit Union, you must complete an appropriate application and open a Prime Share Savings Account with a $5 minimum balance. The $5 deposit into your Savings Account is placed on hold, and is known as your "Membership Share".

By submitting an application, you declare your eligibility for membership in Dow Credit Union. Information supplied on your application may be used to verify that you are within the Dow Credit Union field of membership, including contacting the employer or person listed for eligibility purposes. If Dow Credit Union determines that you are ineligible for membership at any time or if you have supplied false or misleading information on your application, it will be deemed void and your membership will be terminated.

Deposits Generally. After you have established your Prime Share Savings Account, you may make additional deposits into your Savings Account, or establish other types of accounts as described herein, at any time. The amount is not transferable except on Dow Credit Union’s books and records. We may establish minimum amounts for deposits in your Savings Account or other accounts.

You can make deposits in person, by mail or electronically. At the present time, you can also arrange to have one or more of the following deposits made directly to your share/deposit accounts in accordance with the terms and conditions of each account: (1) payroll deduction deposits, (2) net pay deposits, (3) Social Security deposits, (4) pension plan deposits, (5) stock dividends or (6) other miscellaneous deposits. If you have an automated teller machine (ATM) or Visa® Debit Card, you can also make a deposit through one of the automated teller machines equipped to accept your deposits.

All deposits are subject to proof and verification. If you deposit a check, draft or other non-cash item, we have the right to clear it before we make the money available to you subject to federal regulations. (See the Funds Availability notice under Regulation CC regarding this.) If there are special fees for collecting your deposit, you promise to pay them. We may deduct them directly from your account. If we feel there is a reason, we may refuse, limit or return any deposit. We have the right to refuse to accept any deposit and we specifically reserve the right to refuse to accept checks for deposit that have more than one endorsement. We reserve the right not to pay interest on amounts subject to garnishment, levy or other legal process; and we reserve the right not to pay interest on any deposit that is returned to us unpaid by the financial institution on which it is drawn (even if that means a reversal of credited interest).

When you endorse any item, your endorsement is a guaranty by you to us and all others who accept the item endorsed that the item you deposit is good; that the funds are properly payable; and you give other warranties under applicable laws. This means that if the item is not good or is not paid for any reason, you are fully responsible to us or any other person for the amount of the item.

Compounding and Crediting. Dividends will be compounded and credited 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.

Balance Computation Method. Interest is calculated by the daily balance method, which applies a daily periodic rate to the balance in the account each day.

Minimum Balance Requirements. The minimum balance required to open and maintain a Prime Share Savings Account is the $5 membership share. The par value membership share is required to maintain membership in the credit union.

Because of the hold on your $5 Membership Share, your Prime Share Savings Account will have at least a $5 difference between the available balance and the actual balance. Other examples of things that may cause your actual balance to differ from your available balance are pre-authorized transactions, unsettled deposits, or miscellaneous holds as permitted by applicable law. For a complete explanation of how we calculate your available balance, please refer to the “Your Liability for Overdrafts” section of this Agreement.

Accrual of Interest on Non-Cash Deposits. Interest will begin to accrue on the business day you deposit non-cash items (e.g. checks) to your account.

Prior Notice Requirement. The Credit Union reserves the right to require prior written notice of intention to withdraw all or any part of shares/deposits no less than 7-days before the withdrawal is made. Subject to cash availability, maximum withdrawal limits may be enforced without prior notice.

Additional Accounts Under This Number. With the exception of a Checking Account, subsequent share/deposit accounts opened under the same account number that are titled equally or less than the Prime Share Saving Account, may not require additional signatures.

Non-payment of items presented when there are Non-Sufficient Available Funds. If you overdraw your Savings Account, we may return the item unpaid, commonly known as a return for “non-sufficient funds” or “NSF”. It is important to understand that the Credit Union has no control over how many times an intended payee will resubmit an item to us for payment. When we return an item unpaid, we will assess you a Non-Sufficient Funds / NSF Fee each time the item is presented to us for payment. There is no limit on the number of Non-Sufficient Funds / NSF Fees we may assess against your account.

We encourage you to keep careful records and practice good account management. This will help you to avoid transactions without sufficient funds available and incurring any Non-Sufficient Fund / NSF fees. For a complete explanation of Non-Sufficient Funds/NSF Fees and overdrafts, please refer to the “Your Liability for Overdrafts” section of this Agreement.

Checking Accounts

Other Terms. The Credit Union may use the terms "Share Draft" and "Checking" interchangeably when referring to a Checking Account.

Compounding and Crediting. Dividends will be compounded and credited 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.

Balance Computation Method. Interest is calculated by the daily balance method, which applies a daily periodic rate to the balance in the account each day.

Minimum Balance Requirements. There is no minimum balance required to open or maintain a Checking Account.

Accrual of Interest on Non-Cash Deposits. Interest will begin to accrue on the business day you deposit non-cash items (e.g. checks) to your account.

Deposits Generally. After you have established your Checking Account, you may make additional deposits into your account at any time and in any amount subject to the terms of this Agreement. There is no minimum deposit for this account. The above terms regarding “Deposits Generally” also apply to Checking Accounts, except as they may be modified by this section.

Drafts (Checks) Generally. All checks presented for payment or deposit must be in a format that can be processed and/or imaged. We may refuse to accept any check that does not meet this requirement. To ensure the highest quality of check images and to prevent alterations, checks must be written in a dark ink, preferably blue or black. The Credit Union may not accept any check written in pencil or any illegible ink. All checks drawn on your Checking Account may be returned by us unpaid for any reason that checks are normally returned, such as, non-sufficient available funds, uncollected funds, or litigation.

Withdrawing Money from Your Checking Account. Subject to any applicable state or federal laws and regulations, available funds can be withdrawn from your account by written check or any other method approved by Dow Credit Union. Dow Credit Union may refuse any check or other item drawn against your account or used to withdraw funds from your account if it is not on a form approved by Dow Credit Union.

Your Responsibility for Check Negotiation.

Checks Drawn on Your Account. It is your responsibility to monitor your account by reviewing your account statement and the check images for transactions that you did not authorize. Any objection respecting any item shown on a periodic statement is waived unless made in writing to the Credit Union before the end of sixty (60) days after the statement is mailed.

For checks drawn on your account at Dow Credit Union, the Credit Union may use any manual or commercially available method to inspect checks for indicators of fraud, alteration, forgery, or counterfeited elements. There is no warranty as to the validity of the check based on these inspections nor is there an obligation for the credit union to inspect all checks. The Credit Union may dishonor a check for reasonable suspicion that the check has been altered, forged, or counterfeited.

Because the Credit Union uses information that is systematically imaged from a check's Magnetic Ink Character Recognition (MICR) line by the bank of deposit, (often times not Dow Credit Union), there is the possibility that a check may be inadvertently misread and drawn from your account. The best way to detect this is to monitor your account by reviewing your account statement for transactions that you did not authorize. Notify the Credit Union immediately if there is a question about the validity of a check withdrawal from your account.

Payment of Drafts (Checks).

Postdated/Staledated Checks. You authorize the Credit Union to accept and pay any check without regard to the date of the check even if it is presented for payment before its date, unless you notify the Credit Union of the postdating. Your notice will be effective only if Dow Credit Union receives the notice in time for us to reasonably act upon the notice and you accurately describe the check, including the number, date and amount. You understand that the exact information is necessary for the Credit Union to identify the check. If you give the Credit Union an incorrect, incomplete or untimely notice, the Credit Union will not be responsible for paying the check before the date stated and the Credit Union may charge your account as of the date the Credit Union pays the check. You may make an oral notice which will lapse within fourteen (14) calendar days unless confirmed in writing within that time. A written notice will be effective for six (6) months and may be renewed in writing from time to time. You also agree not to deposit checks, drafts or other items before they are properly payable. The Credit Union is under no obligation to pay a check drawn on your account which is presented more than six (6) months after its date. Except for negligence, the Credit Union is not liable for any action it takes regarding the payment or non-payment of a check.

Restrictive Legends. We are not required to honor, nor will we be liable for the payment of any check contrary to a restrictive legend or other limitation contained in or on checks that you write unless we have agreed in writing to the restriction(s) and/or limitation(s.) Examples of restrictive legends are “must be presented within 90 days” or “not valid for more than $1,000.”

Check Cashing. We may refuse to cash a check drawn on your account if you have non-sufficient available funds in your account to cover the amount of the check. At our discretion, we may either refuse or charge a fee to cash a check drawn on your account if it is presented for payment in person by someone who is not our member. Such refusal shall not constitute a wrongful dishonor of the check or draft and we shall have no liability for refusing payment. You agree to waive any claim that you may have against us if we refuse to honor a check under these circumstances. You also agree to indemnify us and hold us harmless for any losses, costs, damages, expenses, and liabilities, including reasonable attorney’s fees that we may incur in connection with any claim or action resulting from our refusal to cash a check for a non-member.

Payment of Drafts (Checks) After Death. Dow Credit Union may, after the date of your death, pay checks drawn before death unless ordered to stop payment by the personal representative or other appropriate person claiming an interest in the account.

Payment Order of Items. The law permits us to pay items (such as checks, drafts, or ACH) drawn on your account in any order. To assist you in handling your account with us, we are providing you with the following information regarding how we process the items that you authorize.

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 is available to you at any given time. This section explains generally how and when we post transactions to your Account.

When processing items drawn on your account, our policy is to pay them as we receive them. We commonly receive items to be processed against your Account(s) multiple times per day in what are referred to as presentment files. Each presentment file received commonly contains a large amount of a specific type of item (i.e. checks or ACH transactions). It is common for each of these presentment files to contain multiple items to be processed against your particular account. When processing the presentment files, we first process all credits of money into your account so that your available balance may increase as applicable. After all the credits of money into your account are processed, we then process the debits of money from your accounts.

When multiple debit items are received at the same time, our practice is to pay them according to the dollar amount. We pay the items in order from the smallest debit item to the largest debit item. The order in which items are paid is important if there are non-sufficient available funds in your Account to pay all of the items presented. Our payment process ensures that the largest number of items are paid, thereby decreasing the potential fees you may have to pay if there are not enough available funds to pay all of the items.

We encourage you to keep careful records and practice good account management. This will help you to avoid writing checks without sufficient available funds and incurring the resulting fees.

The information contained in this section is only a general description of how transactions are posted. These practices may change, and the Credit Union specifically reserves the right to pay items in any order, as permitted by law.

Truncated Drafts (Checks); Statements. Your canceled checks will not be returned to you. They will become Credit Union property and be held by us (“truncated”) for you. Your monthly statement will itemize your canceled checks by number, date of clearing and the amount of the check. Any objection respecting any item shown on a periodic statement is waived unless made in writing to the Credit Union before the end of sixty (60) days after the statement is mailed. A copy of any check will be made available to you. Copies of most canceled checks can be obtained through Online Banking. All others can be obtained by contacting our office. Refer to the Account Fee Schedule for current fee, if applicable.

Stop Payments.

Stop-Payment Order Request. You may request a stop-payment order on any check drawn on your account. Requests may be submitted verbally or in writing. To be binding, an order must be dated, signed, and accurately describe the check. The stop-payment will be effective if the Credit Union receives the order in time for the Credit Union to act upon the order and you state the account number, number of the check, and its exact amount. You understand that the exact information is necessary for the Credit Union to identify the check. If you give us incorrect or incomplete information, we will not be responsible for failing to stop payment on the check. If the stop-payment order is not received in time for us to act upon the order, we will not be liable to you or to any other party for payment of the check.

If we recredit your account after paying a check over a valid and timely stop-payment order, you agree to sign a statement describing the dispute with the payee, to transfer to us all of your rights against the payee or other holders of the check and to assist us in any legal action.

Duration of Order. A verbal stop-payment order is effective for fourteen (14) days. A written stop-payment order is effective for six (6) months and may be renewed in writing from time to time. We do not have to notify you when a stop-payment order expires.

Liability. Fees for stop-payment orders are set forth in the Account Fee Schedule. You may NOT stop payment on any certified check, teller’s check or any other check, draft, or payment guaranteed by us. Although payment of an item may be stopped, you may remain liable to any item holder, including us. You agree to indemnify and hold the Credit Union harmless from all costs, including attorney’s fees, damages or claims related to our refusing payment of an item, including claims of any multiple party, account owner, payee, or endorser in failing to stop payment of an item as a result of incorrect information provided by you.

Other Terms. The above terms regarding the “Nature of Dividends”, “Rate and Annual Percentage Yield”, “Calculating Dividends”, “Compounding”, “Crediting Dividends”, and “How Withdrawals Affect Dividends” also apply to Checking Accounts. The use of the Checking Account is subject to other terms, conditions and requirements as the Credit Union may establish from time to time.

Overdraft Line-of-Credit Loan

The Overdraft Lind-of-Credit Loan does not come standard with your checking account. The Dow Credit Union Overdraft Line-of-Credit Loan is a form of credit that must be separately applied for apart from your Checking Account. Applicants will be approved based on creditworthiness. If you overdraw your account, we will normally pay the overdraft subject to the limit on your overdraft line-of-credit, if applicable. No fee is imposed for overdrafts to your line-of-credit. However, the line-of-credit loan will begin to accrue interest immediately from when the advance is taken. See Credit Union for details.

Your Liability for Overdrafts.

PLEASE REVIEW THIS INFORMATION CAREFULLY. IF YOU DO NOT UNDERSTAND ANY PROVISION IN THIS “YOUR LIABILITY FOR OVERDRAFTS” SECTION, OR IF YOU HAVE ANY QUESTIONS, PLEASE CONTACT US AT 800.835.7794, OR VISIT OUR OFFICE.

This “Your Liability for Overdrafts” section describes only our Courtesy Pay and Overdraft Transfer Services.

The Credit Union also offers an overdraft line of credit for qualifying members. If you have questions regarding applying for an overdraft line of credit, please contact the Credit Union for additional information.

A. General.

1. What Does it Mean to Overdraw Your Account? “Overdrawing” your Checking Account (“Share Draft Account” or “Account”) means that there are not sufficient available funds (as described in Section B below) in your Account to pay for a transaction, resulting in a negative available balance or “overdrawn” balance. Some transactions that can result in an overdraft in your Account include, but are not limited to:

• the payment of drafts/checks, electronic fund transfers, telephone-initiated transactions, preauthorized payments under our Bill Payment Service, debit card transactions, or other withdrawal requests authorized by you;
• the return (unpaid) of items deposited by you;
• the assessment of fees by us; or
• the deposit of items that are treated as not yet “available” according to our Funds Availability Policy.

2. What Happens if the Credit Union Refuses to Pay a Transaction? If you overdraw your Account, we may return the transaction unpaid, commonly known as a return for “non-sufficient funds” or “NSF”. It is important to understand that the Credit Union has no control over how many times an intended payee will resubmit an item to us for payment. When we return an item unpaid, we will assess you a Non-Sufficient Funds / NSF Fee each time the item is presented to us for payment. There is no limit on the number of Non-Sufficient Funds / NSF Fees we may assess against your account. NSF items are described in more detail in Section D below.

3. What Happens if the Credit Union Pays the Transaction? If you overdraw your Account and we pay the item, we may do so in one of two ways:

• through an overdraft protection plan, which we call “Overdraft Transfer Service” (as described in Section E below), or
• through standard overdraft practices that come with your account, which we call “Courtesy Pay” (as described in Section F below);

You can elect to decline Courtesy Pay at any time, which may result in your transactions being declined for non-sufficient funds if the available balance in your Account is not enough to pay for your transaction.

4. How Transactions Are Posted to Your Account. The order in which transactions are paid is important if there are insufficient available funds in your Account to pay all of the transactions presented. Please refer to the “Payment Order of Items” section of this Agreement for a general description of how transactions are posted to your Account.

5. Your Obligation to Keep Records of Your Transactions. While we provide Courtesy Pay (discussed in more detail below) and the Overdraft Transfer Service (discussed in more detail below) for your convenience and as a way to help you avoid overdrafts, NSF transactions, and associated fees, you are responsible for keeping track of the funds in your Account that are available for you to use before you write a check, preauthorize a payment under our Bill Payment service, authorize an ACH transaction, 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), as your available balance (discussed in more detail below) may not reflect these transactions until they are paid from your Account.

B. Your Available Balance.

1. Actual Balance Versus Available Balance. Your 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 our office. It is important to understand how these two balances work so that you know how much money is available to you in your Account at any given time. This section explains actual and available balances and how they work.

2. Your “Actual Balance”. Your “actual” balance is the amount of money that is actually in your Account at any given time, but not all funds included in the actual balance are considered “available” for transactions on your Account. The actual balance is also sometimes referred to as your “ledger balance”. Your actual balance reflects transactions that have posted to your Account, but it does not reflect transactions that have been authorized or deposits that may be on hold. 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 because any purchases, holds, fees, other charges, or deposits made on your Account that have not yet posted will not appear in your actual balance. For example:

• assume you have a $50 actual balance, but you just wrote a check for $40. Your actual balance is $50 but it does not reflect the pending check transaction. Though your actual balance is $50, you have already spent $40.

3. Your “Available Balance”. Your available balance is the amount of money in your Account that is available to you to use without incurring a fee. The available balance takes into account factors such as holds placed on deposits and pending transactions, like pending debit card purchases, that the Credit Union has authorized, but that have not yet posted or settled to your Account. For illustration:

• assume you have an actual 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 preauthorize the payment in that amount (or even a different amount). If the merchant requests preauthorization in the amount of $20, we will place a “hold” on your Account for $20 (referred to as an “authorization hold”). Your actual balance will still be $50 because this transaction has not yet posted, but your available balance will be $30 because of the merchant’s $20 preauthorization request. Two days later the merchant submits its bill for $20 payment, 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.

4. Your Available Balance and Non-Debit Card Transactions. For electronic funds transfers (ACH), checks, bill payments, and any other non-debit card transactions, we use your available balance at the time a transaction posts to determine whether your account is overdrawn and whether a fee will be assessed. For information on how your available balance works with respect to debit card transactions, please see Section C below.

C. Authorization Holds for Debit Card Transactions.

1. ATM and Visa^® Debit Card Governing Terms. If applicable, Checking Account holders may apply for an ATM or Visa Debit Card to use for card based transactions. Governing Terms are disclosed later in this agreement in the section titled ATM and Visa Debit Card Agreement.

2. What is an Authorization Hold? When you use your debit card to pay for goods or services, the merchant may seek preauthorization 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 preauthorization 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.

3. How Does an Authorization Hold Affect Your Available Balance? Until the transaction finally settles or we otherwise remove the hold (for example, we may remove the hold because it exceeds the time permitted 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 authorize 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. We have no control over when a merchant may present an item for final settlement payment. Merchant payment requests are received in real time throughout the day and are posted to your Account as they are received.

4. The Amount of an Authorization Hold May Differ From the Amount of the Actual Transaction. 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 authorized before your actual transaction amount is known, such as at a restaurant (where you may choose to add a tip to the transaction amount) or a gas station. 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.

5. Length of an Authorization Hold. We are permitted to place an authorization hold on your Account for up to three (3) business days 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, which will decrease your available balance. However, in these instances, we will not maintain an authorization hold for longer than three (3) business days from the time of the preauthorization hold.

6. What is an "everyday" debit card transaction? Everyday purchases are one-time debit card transactions such as those conducted at grocery stores, doctor's offices, gas stations, restaurants, and other similar transactions.

7. What is a "recurring" debit card transaction? Recurring debit card payments are automatic payments where you authorize a merchant or service provider to collect charges for your specified goods or services on a prearranged recurring schedule, usually monthly.

8. Your Available Balance and Debit Card Transactions. Everyday debit card transactions are processed against your account at two different times: first, when the transaction is authorized, and again when the transaction actually settles to your account, usually days later. This delay between the time a particular transaction is authorized and when it actually settles to your account is solely within the control of the merchant and its processor. The Credit Union has no control with respect to the time period that elapses between the time a merchant seeks authorization and finally submits the transaction for settlement.

For debit card transactions, we use your available balance at the time a transaction is authorized and again when the transaction settles to your account to determine if each specific transaction will overdraw your account and whether a fee will be assessed. It is important to remember that your available balance may not reflect all of your transactions.

When the Credit Union authorizes an everyday debit transaction, the amount of the preauthorized transaction is subject to a preauthorization hold. This means that the amount of the transaction is subtracted from your actual balance. It is important to understand that even if you have sufficient available funds in your Account at the time the transaction is authorized, it is possible that the settlement of the transaction may result in an overdraft to your Account, and the incurring of a fee. The two most common scenarios are as follows:

• Example 1: Purchase transactions where the final amount is initially unknown. The most common examples of a purchase transaction where the final amount is initially unknown are gas station purchases, restaurant charges, and hotel and car reservations. In such cases the transaction may be communicated to the Credit Union for authorization in one amount, but when the transaction actually settles to your Account it does so for a greater amount. For example, if you use your debit card to pay at the pump for a gasoline purchase, you typically must utilize your debit card before operating the pump. The Credit Union may receive an authorization request in the amount of $15.00. At the time of the authorization request, the available balance in your Account is $30.00, so the Credit Union approves the authorization request, and the available balance in your Account is reduced to $15.00. You proceed with the transaction, and purchase gasoline totaling $40.00. When that transaction actually settles to your Account in the amount of $40.00 as opposed to the $15.00 that was authorized, the available balance in your Account is not sufficient to cover the settlement of the preauthorized transaction. Accordingly, the Credit Union’s payment of the preauthorized transaction results in an overdraft drawing down the balance of the Account, and potentially causing the Account to have a negative available balance.
• Example 2: Purchase transactions where intervening items paid between authorization and settlement result in the overdrafting of your Account. Assume the same gas station scenario as described in Example 1, except that you purchase gasoline totaling just $15.00, so the authorized amount of the transaction is the same as the settlement amount of the transaction. However, between the day the transaction was authorized and the day the transaction settles to your Account, a check you wrote in the amount of $35.00 is presented for payment. When the $15.00 gas station transaction actually settles to your Account, the available balance in your Account is not sufficient to cover the settlement of the preauthorized transaction, even though the settlement amount of the transaction is the same as the preauthorized amount of the transaction. Accordingly, the Credit Union’s payment of the preauthorized transaction may result in an additional overdraft, and you may incur a fee.

For debit card transactions involving merchant authorization holds, we look at the available balance at the time a transaction is authorized and again at settlement to determine whether the transaction will result in an overdraft and a possible fee. If your available balance is non-sufficient to pay the preauthorization amount requested by a merchant we may decline the request. If your available balance is sufficient to cover a merchant’s authorization request, the authorization request will be approved and an authorization hold will be placed on your Account in the amount of the merchant’s authorization request.

D. Payment of Overdrafts.

1. The Credit Union Has No Obligation to Pay Your Overdrafts. We are not obligated to pay any item presented for payment (other than a preauthorized debit transaction - see #6 in this Payment of Overdrafts section) 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 any costs of collection. We may close, without notice, any Account with excessive overdraft activity, and report the account to a consumer reporting agency.

2. Fees Associated with Overdrawing Your Account – Non-Sufficient Funds / NSF Fees. If we do not pay an item, we will return the item and charge you a Non-Sufficient Funds / NSF Fee each time an item is presented for payment and we return it unpaid due to a non-sufficient available balance. We have no control over the number of times an intended payee may resubmit the same item to us for payment. As a courtesy to you, we will waive the first three (3) Non-Sufficient Funds / NSF Fees incurred by you in a calendar year. There is no limit on the total Non-Sufficient Funds / NSF Fee we can charge you for overdrafting your account.

3. Fees Associated with Overdrawing Your Account – Courtesy Pay Fees. We assess a fee each time an item is presented for payment that we either pay, resulting in an overdraft, or which we decline to pay because payment of the item would result in an overdraft had we paid it. If we pay an item in accordance with Courtesy Pay, we will charge you a Courtesy Pay Fee. There is no limit on the total fees we can charge you for overdrafting your Account.

4. Fees Associated with Overdrawing Your Account – Overdraft Transfer Service. We do not assess a fee for using our Overdraft Transfer Service.

5. Fee Schedule. Please refer to the Account Fee Schedule for a current listing of all fees associated with overdrawing your account.

6. YOU ACKNOWLEDGE THAT YOU MAY STILL OVERDRAW YOUR ACCOUNT EVEN THOUGH THE AVAILABLE BALANCE APPEARS TO SHOW THERE ARE SUFFICIENT AVAILABLE FUNDS TO COVER A TRANSACTION THAT YOU WANT TO MAKE. This is because your available balance may not reflect all of the outstanding checks, automatic bill payments that you have authorized, or other outstanding transactions that have not yet been paid from your Account. For example, you may have written a check that is still outstanding because it has not been submitted for payment by the payee. That 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. We have no control over when a merchant submits an item for payment. For example, if a merchant obtains our prior authorization but does not submit an everyday 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 and international transactions), we are required to release the authorization hold on the transaction. Your available balance will not reflect this transaction once the hold has been released. Please refer to the section entitled “Authorization Holds for Debit Card Transactions” above for information about how authorization holds affect your available balance.

Finally, your available balance may not reflect the most recent deposits to your Account. Please refer to the Funds Availability Regulation CC Disclosures for information regarding the availability of your deposits for withdrawal.

E. Overdraft Transfer Service.

1. Overdraft Transfer Service. We offer an overdraft protection plan that we refer to as our “Overdraft Transfer Service” where funds from your linked Prime Share Savings Account are used for overdraft protection. We will look first to this service for overdraft protection before applying our discretionary Courtesy Pay when your Checking Account is overdrawn. The Overdraft Transfer Service may save you money on the total fees you pay us for overdraft protection.

With this service, we will make transfers of available funds automatically from your Prime Share Savings Account, to cover overdrafts in your Checking Account. Transfers will appear on your periodic statements for each applicable Account.

2. Limits on Overdraft Transfer Service. We will not transfer more than the available account balance in your Prime Share Savings Account. If the available balance in the Prime Share Savings Account is not enough to pay the full amount of the transaction(s) you have initiated on any day, we will transfer up to the available balance to pay one or more transactions. Any transactions that are not paid by the transfer will either be paid through Courtesy Pay or returned, and Courtesy Pay Fees and/or Non-Sufficient Funds / NSF Fees, as applicable, will be assessed.

The following illustrates how transactions work when both Overdraft Transfer Service and Courtesy Pay are part of the payment:

Assume your actual and available balances in your Checking Account are both $50, and your available balance in your Prime Share Savings Account is $10. You write a check for $80. When the check is presented for payment, because you don’t have $80 total available in both your Checking Account or Prime Share Savings Account, the item cannot be fully paid using the Overdraft Transfer Service from the Prime Share Savings Account. However, if you have also elected Courtesy Pay (as detailed in section F below), we may elect to transfer the $10 in your Prime Share Savings Account and pay the remaining portion of the item using Courtesy Pay. In such case, you will be assessed a Courtesy Pay Fee.

However, because Courtesy Pay is a discretionary service, we may instead elect to decline to pay the transaction. If we decline to pay the transaction, we will not transfer any funds from your Prime Share Savings Account, we will decline the transaction, and we will assess you an Non-Sufficient Funds / NSF Fee each time the item is presented for payment. It is important to remember that we have no control over how many times an intended payee may present the same item for payment. Multiple presentments of the same item will result in multiple fees.

3. We May Return Items Unpaid. We are not obligated to pay any item presented for payment if your Account does not contain sufficient available funds. If we do not authorize and pay an overdraft, then we decline or return the transaction or item unpaid and charge a related Non-Sufficient Funds / NSF Fee as stated in our Fee Schedule. You are responsible for ensuring that your Account contains sufficient available funds to pay the transactions you initiate or authorize when they are processed for payment from your Account, and you also acknowledge that the timing of when merchants or payees submit transactions to us for payment may vary.

If your Account does not have sufficient available funds when a transaction or item is presented to us for payment and, as a result, the item is returned unpaid, the merchant or payee of your transaction or item may choose to resubmit the same transaction, and may do so multiple times. 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 Non-Sufficient Funds / NSF Fee each time that same transaction is returned unpaid.

4. Termination of Overdraft Transfer Service. We may terminate the Overdraft Transfer Service at any time with or without notice to you.

F. Courtesy Pay Overdraft Service.

1. Courtesy Pay. "Courtesy Pay" and "Courtesy Pay Overdraft Service" may be used interchangeably. In accordance with our commitment to provide valued service and benefits, we may, if you qualify, at our discretion, pay overdrafts and fees that would cause your eligible Checking Account to have a negative balance up to the amount of your limit, which is determined by us in our sole and absolute discretion. Courtesy Pay is different than the Overdraft Transfer Service. Courtesy Pay is a backup to the Overdraft Transfer Service and will only be activated if funds are not available from the Overdraft Transfer Service to complete the transaction.

2. What Overdraft Transactions are Covered? Courtesy Pay is available for the payment of checks, preauthorized payments under our Bill Payment Service, ACH drafts, and recurring debit transactions. We call this “Basic Courtesy Pay”.

Courtesy Pay is also available for the payment of all of the items associated with Basic Courtesy Pay plus everyday debit card and ATM Card Point of Sale transactions, if you opt-in, as described below. We call this “Enhanced Courtesy Pay”.

Note that transactions authorized with a merchant as recurring debit card transactions may be covered by Basic Courtesy Pay regardless of whether you have opted into Enhanced Courtesy Pay for the payment of everyday debit card transactions.

3. Optional Overdraft Transactions-Enhanced Courtesy Pay. The following types of transactions require you to “opt in” (in other words, you must provide us with your affirmative consent) if you would like to include them in Courtesy Pay. Choosing not to opt in may result in these transactions being declined:

• ATM Card Point of Sale transactions
• Everyday Debit Card transactions

We do not require you to authorize Enhanced Courtesy Pay for your everyday debit card transactions as a condition of us providing Basic Courtesy Pay to you for your checks, ACH transactions or other transactions. If you want the Credit Union to authorize and pay overdrafts for everyday debit card transactions through Enhanced Courtesy Pay, you must provide us with your consent by: (1) calling us at either 800.835.7794 or 989.835.7794; (2) visiting our office and speaking with a Representative; or (3) mailing notice of your decision to opt in to Enhanced Courtesy Pay for everyday debit card transactions to Dow Credit Union, PO Box 1649, Midland, MI 48641-1649.

4. Eligibility for Courtesy Pay. Courtesy Pay is not a credit product. Basic Courtesy Pay a feature that is automatically included with eligible Checking Accounts (unless you decline Courtesy Pay entirely as described below or information we get from a consumer reporting agency does not meet Credit Union standards). Eligibility is at the sole discretion of the Credit Union and is based on you managing your Checking Account in a responsible manner. Basic or Enhanced Courtesy Pay may be available for Checking Accounts for which the primary Account owner is 18 years of age or older. We reserve the right to limit Courtesy Pay in our sole and absolute discretion, based on any one or more of the following criteria:

• You are not making regular deposits into your Checking Account within the last 60 days equal to the overdraft limit (see How Courtesy Pay is Administered below).
• You do not bring your Checking Account to a positive balance for at least one full business day within a thirty (30) day period;
• Your membership is not in good standing;
• You are more than thirty (30) days past due or are in default in any other respect on any loan or other obligation to us;
• You have an outstanding balance due on an overdraft repayment plan;
• Your primary savings account does not have a positive balance;
• Your Checking Account is subject to any legal or administrative orders or levies;
• You have insufficient credit or negative credit history;
• You are a party to a bankruptcy proceeding;
• Any or all of your account(s) with us are being reviewed for improper activity or transactions;
• Your Checking Account is classified as inactive;
• You use the Service to pay items written to check cashing agencies;
• You have an unresolved prior loss with us; or
• We believe you are not managing your Checking Account in a responsible manner which may harm you or us.

5. Courtesy Pay is a Discretionary Privilege. 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 the Credit Union, nor does it constitute an actual or implied obligation of the Credit Union. 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.

6. Notification. If you qualify for Courtesy Pay, we will notify you that Courtesy Pay has been added to your Account. However, we may refuse to pay an overdraft at any time, even though we may have previously paid overdrafts. We have no obligation to notify you before we pay or return any item. It is important to remember that Courtesy Pay is a purely discretionary benefit offered by the Credit Union. If at any time we determine that your Account is no longer eligible for Courtesy Pay for any reason, we can discontinue it immediately without notice to you.

7. How Courtesy Pay is Administered. If you are eligible for Courtesy Pay, we will generally pay your overdraft items up to a maximum limit established by the Credit Union in its sole discretion. We are not required to notify you of any nonsufficient funds checks, ACH items, or other transactions that may have been paid or returned. 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.

8. When is the overdraft payment due? The total of the overdraft (negative) balance in your Checking Account, including any and 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.

9. Courtesy Pay Fees. A Courtesy Pay Fee will be charged to your Checking Account, in accordance with our Fee Schedule, for each overdraft that is authorized and paid through Courtesy Pay. This means that more than one Courtesy Pay Fee may be assessed against your Checking Account per day depending upon the number of overdrafts authorized and paid through Courtesy Pay. You understand that your Courtesy Pay limit will be reduced by the amount of each overdraft paid by us through Courtesy Pay and the amount of the related Courtesy Pay Fee imposed until such amounts are repaid by you as set forth herein at which time we may replenish your Courtesy Pay limit by the amount of the repayment.

Approve Positive, Settle Negative Courtesy Pay Fee Exclusion for accounts that have Opted in to Optional Overdraft Transactions-Enhanced Courtesy Pay: If an account that has opted in to the Enhanced Courtesy Pay coverage for Everyday Debit Card Transactions initiates a transaction when the account has sufficient balance at the time of authorization to pay the transaction, but at the time the payment is settled the balance is not sufficient to make the payment, the Courtesy Pay program may still pay the transaction and draw the account negative, but a Courtesy Pay Fee will not be assessed for this use of Courtesy Pay coverage.

If we choose not to pay the item/transaction under Courtesy Pay, you may be subject to a Non-Sufficient Funds / NSF Fee in accordance with our Fee Schedule for each such item each time it is presented for payment and returned unpaid due to an non-sufficient available balance. Your periodic statement will itemize Courtesy Pay Fees and Non-Sufficient Funds/ NSF Fees for each cycle, as well as the year-to-date total of fees.

10. Transfers to Cover Overdrafts. You understand and agree that we have the right to transfer available funds to your Checking Account from any of your other Account(s) with us, including Account(s) upon which you are a joint owner, in an amount equal to the overdraft and related fees.

11. Right of Offset. In addition to any other rights that we may have, you agree that any deposits, future deposits, 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 offset for any liabilities, obligations or other amounts owed to us by you (e.g. overdrafts and any related fees and charges) and such is applicable irrespective of any contribution to the Account or source of funds in the Account. Moreover, unless you decline Courtesy Pay (see below), you consent and expressly agree that the application of offset of funds in any Account includes the offset 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 Courtesy Pay.

12. Default. You will be in default under the terms of Courtesy Pay if you fail to live up to any of the terms and conditions set forth herein or you 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 close your Checking 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.

13. Termination; Suspension. We may terminate or suspend Courtesy Pay 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 without losing them.

14. Your Right to Decline Courtesy Pay. Any owner of the Checking Account may decline the service. If you prefer not to have Courtesy Pay, visit us in our office, contact us either at 800.835.7794 or 989.835.7794, or write to us at Dow Credit Union, PO Box 1649, Midland, MI 48641-1649, and include your name, member number and a statement that you are declining the Credit Union’s Courtesy Pay Service and we will remove the service from your Checking Account. If you decline the service, you will still be charged a Non-Sufficient Funds / NSF Fee for each item returned each time an item is presented for payment and returned unpaid due to a non-sufficient available balance.

15. Overdraft Protection Plans. As discussed in more detail above, we also offer the Overdraft Transfer Service which links your Checking Account to your Prime Share Savings Account, as well as other overdraft sources that may be less expensive than Courtesy Pay. To learn more, please ask us about these plans.

THE BEST WAY TO KNOW HOW MUCH MONEY YOU HAVE AND HOW MUCH YOU HAVE AVAILABLE TO AVOID PAYING OVERDRAFT FEES IS TO RECORD AND TRACK ALL OF YOUR TRANSACTIONS CLOSELY.

High Yield Deposit Accounts

Establishing Account and Rate. High Yield Deposit Accounts may be established by a member submitting an appropriate application. These savings accounts generally earn a higher rate of interest than Share Savings Accounts. The interest rate and APY on these accounts are variable and subject to change daily at the determination of the Board of Directors or Management of Dow Credit Union.

High Yield Deposit Accounts are tiered savings accounts and interest calculation will be determined each day based on the balance in the account and the earning rate for the correlating tier shown in the chart below.

Compounding and Crediting. Interest will be compounded and credited quarterly. For example, the beginning date of the first interest period of the calendar year is January 1 and the ending date of such interest period is March 31. All other interest periods follow this same pattern of dates.

How Withdrawals Affect Interest. Although interest is credited quarterly, we calculate it on a daily basis. Therefore, if you make a withdrawal, you won’t receive any further interest on that amount from the day you make the withdrawal until the day that interest is credited.

Minimum Balance/Deposit Requirements. The purchase of a $5 share in the Credit Union is required. A minimum balance is not required to open or maintain these accounts.

Balance Computation Method. Interest is calculated by the daily balance method, which applies a daily periodic rate to the balance in the account at the close of each day. The applied daily periodic rate is determined by the correlating High Yield Tier for the days ending balance.

Accrual of Interest on Non-Cash Deposits. Interest will begin to accrue on the business day you deposit non-cash items (e.g. checks) to your account.

Transaction Limitations. The following transactions are subject to a maximum of six total per calendar month:

• Transfers or payments to third parties made by automated clearinghouse (ACH) or Online Banking
• Transfers, withdrawals or payments to third parties initiated via telephone, computer, fax or e-mail
• Transfers initiated via telephone or computer to other personal Dow Credit Union accounts

Closing Account. When a High Yield Deposit Account is closed, interest accrued through the date of closing will be paid.

Member Saver Reward Eligibility. At the opening of a High Yield Deposit Account you may be given the ability to opt-in/opt-out of eligibility for earnings to be considered in the Member Saver Reward. See Potential Year-End Member Saver Reward for details in the Account Agreement & Disclosures. High yield accounts that have opted out of the Member Saver Reward will be designated as Simple High Yield Deposit Accounts. Simple High Yield Deposit Accounts may offer a higher APY than the standard High Yield Deposit Account but is not eligible for the potential year-end Member Saver Reward. Standard High Yield Accounts that are eligible for the Member Saver Reward consideration are designated Premium High Yield Deposit Accounts. While year-end Member Saver Rewards occur with great regularity, this credit union benefit is not guaranteed. Contact the Credit Union for further details.

Other Terms. Members may open and maintain a maximum of two High Yield Deposit Accounts under the same member account number.

Certificates of Deposit (CDs)

Rate Information. The interest rate and Annual Percentage Yield (APY) for CDs is predetermined and made available at Dow Credit Union. Once you purchase a CD, your interest rate will not be changed or recalculated during the term of the certificate, unless a bump feature is available and exercised. The APY assumes that interest earned will remain on deposit until maturity. A withdrawal will reduce earnings.

Compounding and Crediting. For this account type, interest is compounded monthly, unless you elect to have interest credited monthly to another Dow Credit Union share/deposit account. If you close your account before interest is credited, accrued interest will be paid to date less any early withdrawal penalty, if applicable.

Transaction Limitations. No deposits are allowed during the term of the certificate of deposit ("certificate”, “CD”), unless otherwise noted. If a withdrawal must be made prior to maturity, any accrued interest may be withdrawn penalty free. A withdrawal of funds in excess of the accrued interest will be charged an Early Withdrawal Penalty.

Early Withdrawal Penalty. An early withdrawal penalty may be applied when a withdrawal is made prior to maturity of the certificate and could result in loss of principal. Penalty is calculated using the current interest rate that the CD is earning at the time of the early withdrawal. Early withdrawal penalties do not apply to withdrawals made after the death of any owner of the account. Early withdrawal penalties include forfeiture of interest and potentially loss of principal according to the Early Withdrawal Penalty Table:

Balance Computation Method. Interest is calculated by the daily balance method, which applies a daily periodic rate to the balance in the account each day.

Minimum Balance Requirements. The minimum balance required to open this account is $500 per certificate plus a $5 par value share balance in your regular Share Account, unless otherwise noted.

Accrual of Interest on Non-Cash Deposits. Interest will begin to accrue on the business day you deposit non-cash items (e.g. checks) at opening of your certificate account, or for Youth CDs where additional deposits are available then non-cash items begin to accrue on the day the item is received.

Maturity and Renewal Information. Members may, at any time, elect to have their certificate automatically renew at maturity, unless otherwise noted. Renewed certificates will be reinvested in another certificate at the Annual Percentage Yield (APY) in effect on the date of maturity. The APY for the renewed certificate shall be determined by the Credit Union at or before maturity, and that information will be available upon maturity. On or after that date, you may call the Credit Union during regular business hours at 989.835.7794 or 800.835.7794 to find out the APY that will apply to the certificate if it is renewed. Automatically renewing certificates will retain the same terms and conditions, including the term length of the certificate, and Member Saver Reward eligibility election, unless previously arranged or the Credit Union provides written notice of a change in such terms and conditions prior to renewal. Automatically renewing certificates have a seven (7) day grace period for withdrawals after maturity during which time no early withdrawal penalty apply. Interest will not be earned during the grace period on funds withdrawn during the grace period. For certificates that are not automatically renewed, the entire certificate balance will be transferred to the member’s Dow Credit Union share/deposit account as designated.

Member Saver Rewards (MSR). CDs may be offered with a choice of eligibility (Eligible or Not Eligible) for the annual MSR special dividend calculation. Designation of eligibility is reflected on the page 1 of the Certificate of Deposit Agreement. The determination of the MSR payout is set by Board of Director vote. While year-end Member Saver Rewards occur with great regularity, this credit union benefit is not guaranteed. Contact the Credit Union for further details.

Amendment. As allowed by applicable law or regulation, the Credit Union may change the terms and conditions of the certificate of deposit agreement upon written notice. Advance notice of any adverse changes will be provided.

Bump Rate / Youth / HSA / Special CDs. All the above terms and conditions apply to Bump Rate, Youth, HSA and Special CDs, unless specific rights or restrictions are designated within the following terms. Contact a credit union representative for more information.

• Bump Rate CDs: Bump Rate CDs allow for a one-time rate increase during the term of the certificate upon request. “Bump” requests are available in person or via the Member Contact Center only. Bump Rate CDs are variable-rate accounts, and the Annual Percentage Yield may change when the “bump” feature is exercised. On the day the “bump” is activated, the CD will begin accruing interest at the Dow Credit Union published rate for that date and CD term. Published CD rates are available upon request or at dowcreditunion.org. Bump Rate CDs are available in 48- or 60-month terms only. If a withdrawal must be made prior to maturity, the entire account balance must be withdrawn, and an early withdrawal penalty may be assessed according to the contract term of the certificate. Bump Rate CDs are not eligible for automatic renewal. Dow Credit Union cannot guarantee rate increases.

• Youth CDs: Youth CDs are available in 6- or 12-month terms only. Youth CD available to members when maturity date of Youth CD occurs prior to the primary account holder’s 18th birthday. Additional deposits allowed anytime in amounts $50 or more. Deposits are available in person or via the Member Contact Center only. Maximum deposit amount is $10,000. Only one Youth CD allowed per account. Youth CDs are not eligible for automatic renewal.

• HSA CDs: Additional restrictions apply to HSA certificates. Please refer to your HSA disclosures for important information.

• Special CDs: Special CDs have limited availability. Special CDs may be eligible for automatic renewal to a predesignated term CD.

Health Savings Accounts (HSAs)

Eligibility. Your eligibility and contribution requirements are determined by the Internal Revenue Service (IRS). By signing the Health Savings Account Application, you are stating that you are eligible to own a Health Savings Account. If you are uncertain about your eligibility or contribution limits, please seek the advice of a tax advisor.

HSA Withdrawals. Any withdrawals shall be subject to all applicable tax and other laws and regulations including possible withdrawal penalties and withholding requirements.

Should you choose to make a withdrawal from your HSA via Visa® Debit Card (eligibility required), telephone, Online Banking and/or an ATM, these withdrawals will be coded and reported to the IRS as “Normal Distributions.”

HSA Contributions. Should you choose to make contributions to your HSA via telephone, Online Banking, ATM or through payroll deduction, these contributions will be coded and reported to the IRS as a “Current Year Contribution.” All prior year contributions will require a signature. Your ability to make “Prior Year Contributions” is governed by IRS rules. If you want to designate a contribution as “Prior Year”, we require that you complete and sign a Contribution Direction form designating the contribution as “Prior Year”. Please contact a credit union representative for further information.

Electronic Access. In addition to in-person transactions and checks, you may access your Health Savings Account (HSA) via telephone, Online Banking, ACH, ATM and/or the Visa Debit Card (eligibility required).

Fees. This account is subject to a $5 termination fee which will be assessed during the account closing process and any other applicable account fee as outlined in the Account Fee Schedule.

Account Holder Responsibilities. It is up to each individual account holder to make sure that contributions to the HSA do not exceed the maximum limits. It is also the account holder’s responsibility to make sure that his/her withdrawals are for qualified medical expenses to meet tax deductibility requirements. These expenses are defined in Section 213(d) of the Internal Revenue Code. Dow Credit Union will not monitor transactions on this account and will allow the account holder to withdraw available funds for any reason.

Negative Balance. The Internal Revenue Service has ruled a negative balance HSA is considered a loan to the HSA, and IRS Notice 2008-59 considers it a prohibited transaction. If your HSA has a negative balance, according to the Internal Revenue Code Section 223 the HSA stops being an HSA as of the first day of the taxable year of the prohibited transaction. The assets of the account are deemed distributed, and the appropriate taxes, including the 10 percent additional tax under Section 223(f)(4) for distributions not used for qualified medical expenses, apply. Dow Credit Union will close the HSA in accordance with the IRS direction, and will not be able to open another HSA account for you until the next calendar year. Because of the severity of the consequences from prohibited transactions, you are encouraged to ensure authorized transactions on your HSA will not draw the HSA balance in the negative.

Please seek the advice of a tax advisor if you are uncertain about your HSA eligibility, contributions, or distributions. Please contact a credit union staff member for additional account terms and conditions.

Club Accounts

Rate. The interest rate and annual percentage yield (APY) for Club Accounts is variable and is subject to change daily at the determination of the Board of Directors or Management of Dow Credit Union.

Crediting of Interest. Interest will be compounded and credited annually at maturity. If you close your Club account prior to maturity, you will not receive the accrued interest.

Minimum Balance Requirements. There is no minimum balance required to open a Club account, except the purchase of a $5 share in Dow Credit Union.

Balance Computation Method. Interest is calculated by the daily balance method, which applies a daily periodic rate to the balance in the account each day.

Accrual of Interest on Non-Cash Deposits. Interest will begin to accrue on the business day you deposit non-cash items (e.g. checks) to your account.

Transaction Limitations. You may make deposits into your account at any time prior to maturity. The minimum amount you may deposit is an average of $2 per week. After the account is opened, you may not withdraw funds from the account without penalty.

Early Withdrawal Provisions. Your Club Account maturity date is selected during the account opening process. If you withdraw funds prior to the maturity date, a penalty will be imposed. The penalty will equal all of the accrued interest on your account. In addition, you must withdraw the balance in the account.

Renewal Policies. At maturity, the balance, including interest, will be credited to any Dow Credit Union share/deposit account as elected at the time you opened the account. If you have not withdrawn the funds prior to maturity, the account will renew automatically for the following year. There is no grace period following the maturity of this account.

ATM and Visa^® Debit Card Terms and Conditions

Dow Credit Union provides an ATM Card as an extra convenience for you to make deposits, transfer available funds between accounts and withdraw available funds from accounts. The Credit Union provides the Visa Debit Card for you to make purchases from approved merchants as well as providing the same functions as an ATM Card.

The use of the ATM Card and Visa Debit Card is subject to the terms and conditions contained in this section, to the terms and conditions applicable to any account for which they are used, and to the rules and regulations of the Credit Union governing all or any such accounts. The ATM Card and personal identification number (“ATM PIN”) and the Visa Debit Card and the Visa Debit Card personal identification number (“Visa Debit Card PIN”) remain the property of the Credit Union and the Credit Union may terminate your right to use the ATM Card and ATM PIN, or the Visa Debit Card and the Visa Debit Card PIN at any time. Upon demand of the Credit Union, you will return the ATM Card and/or the Visa Debit Card to the Credit Union. All privileges available through the use of the ATM Card and/or Visa Debit Card shall terminate upon the expiration date to be determined by the Credit Union. In addition, for your security, Dow Credit Union may not reissue your ATM Card or Visa Debit Card after 18 consecutive months of inactivity.

Your ATM Card and/or Visa Debit Card PIN, selected by you or assigned to you by Dow Credit Union, is for identification purposes in connection with the use of these devices. PIN security is important to Dow Credit Union. Your PIN should be treated like a password and be kept confidential at all times. No Dow Credit Union employee or agent will contact you via an unsolicited email, phone call or other communication method requesting your PIN. If believe your PIN has been compromised, please contact Dow Credit Union immediately at 989.835.7794 or 800.835.7794.

New Account Service Limitation. New accounts are restricted from depositing cash, checks or other non-cash items at ATMs. This restriction is in place for up to 6 months from account opening.

Special Liability Protection Rules for Visa Debit Card. Unless you have been grossly negligent or fraudulent in the handling of the account or card, you will not be liable for any unauthorized transactions made with your lost or stolen Visa Debit Card processed through the Visa network. This additional limit on liability does not apply to transactions that are not processed by Visa. If your Visa Debit Card was lost or misused due to your gross negligence or fraud, these special rules do not apply, and your liability for the unauthorized use of your Visa Debit Card is addressed below in the section called “Liability for Unauthorized Transfers” under Regulation E Disclosures on Electronic Funds Transfers.

Non-Visa Debit Transactions. Dow Credit Union enables non-Visa debit transaction processing and does not require that all such transactions be authenticated by a PIN. A non-Visa debit transaction may occur on your Dow Credit Union Visa Debit Card through the NYCE Network. The Merchant controls which network is used.

A non-Visa debit transaction will not provide the zero liability protection benefit, and if a rewards program is present, a non-Visa debit transaction may not be an eligible rewards transaction.

Provisions relating to the Dow Credit Union Visa Debit Card in any Dow Credit Union cardholder agreement relate only to Visa transactions and are not applicable to non-Visa transactions.

Foreign Transactions. Visa Debit Card and ATM Card transactions made in foreign countries and/or in foreign currencies will be debited from your account in U.S. dollars. The exchange rate between the transaction currency and the billing currency used for processing international transactions is a rate selected by Visa or MasterCard from the range of rates available in wholesale currency markets or the government mandated rate, for the applicable central processing date. The conversion may occur after the transaction date and the conversion rate may differ from the rate of exchange in effect at the time of the transaction. You agree that the converted amount will be debited from your account in U.S. dollars.

Activation. Dow Credit Union reserves the right to cancel new or reissued Visa Debit Cards and ATM cards that are not activated within 60 days.

Gambling. You may use your Visa Debit Card to purchase goods and services from participating merchants. However, you may not use your card to initiate any type of prohibited gambling transaction. However, you may not use your card to initiate any type of prohibited gambling transaction. The credit union reserves the right to restrict gambling services based on a transaction's Merchant Category Code. Internet gambling may be illegal in the jurisdiction in which you are located, including locations within the United States. Also, you agree that you will not use your Visa Debit Card for any transaction that is illegal under applicable federal, state, or local law.

Debit Card Participation in Visa Account Updater (VAU) and Your Right to Opt-Out. VAU is a mandated service that facilitates and encourages customer satisfaction, retention and loyalty by exchanging updated account information between participating merchants and Visa card issuers. VAU is a process that updates the cardholder card information that is stored for things like recurring and online transactions. Card information updates can result from account closures, cards reported lost or stolen, expiration date changes and product upgrades. Outdated account-on-file information can lead to declined transaction and cardholder inconvenience - and ultimately introduce the risks of service cancellation and customer dissatisfaction. VAU will not provide Merchants with updated information for cards that have been closed due to fraud or disputes.

Serving as an automated, dedicated, and secure clearinghouse, VAU delivers updated cardholder account information in a timely, efficient, and cost-effective manner, benefiting all parties involved in the electronic payment process. Not all Merchants participate in VAU, and updates are not guaranteed. We recommend that you still contact the Merchant to verify your card information was updated.

All Visa Debit cardholders are automatically enrolled in VAU but have the option to opt out. To opt-out, contact the Credit Union and include the cardholders name, account number and new card number.

Other Terms and Conditions

Share Insurance. Your savings in the Credit Union are federally insured to at least $250,000 by the National Credit Union Administration (NCUA) and backed by the full faith and credit of the United States Government.

Fees/Charges. Any account may be subject to service charges in accordance with the fee schedule adopted by the Credit Union from time to time. Refer to the Account Fee Schedule for a list of fees. These fees may be changed at our discretion and you agree to pay us charges in connection with your accounts in accordance with the fee schedule currently in effect. We will provide advance notice of any increase in current charges, or any new charges, as required by law. We may deduct any charges from your account. We reserve the right to waive any charges at our sole discretion.

Return of Deposits/Closed Accounts. We may, at any time, at our sole discretion, refuse to accept any deposit, or close any or all of your accounts with us without prior notice to you. However, we may not terminate your membership in the Credit Union without satisfying the notice provisions of Credit Union law. If we close an account, we will notify you and send you a check for any balance in your account after deducting all applicable charges. Any withdrawal that reduces the amount in an account to zero may automatically close that account. We are not liable for any check, withdrawal or other order after an account is closed. Any checks presented after your account has been closed will be returned unpaid. We reserve the right to advise consumer reporting agencies and other third parties of accounts closed for misuse.

Account Closing. The account owner, Joint Owner or Member-Owner, may close any account, except the Prime Share Savings account, at any time without the consent of all account holders. However, it is the requesting owner's sole responsibility to notify any and all account holders of such closure. Because the Membership Share is deposited and placed on hold in the account’s Prime Share Savings, only the Member-Owner may remove the membership share and authorize the closing of the account relationship. At the time the Prime Share Savings Account is closed, the Member-Owner is surrendering their membership in Dow Credit Union. The Credit Union is under no obligation to notify any party to the Agreement that the account has been closed.

Accounts closed within 90 days of account opening may be charged a Share Account Closing Fee. See Account Fee Schedule.

Inactive, Dormant and Abandoned Accounts. The Credit Union will consider your account inactive after 12 months without member-initiated activity. The Credit Union reserves the right to close any share/deposit account after 24 months of inactivity, or a fee may be charged to any of your accounts in accordance with the fee schedule adopted by the Credit Union from time to time. Refer to the Account Fee Schedule for more information on the Dormant Account Fee. You will be notified at the physical or email address provided to us before the first inactivity fee is imposed. The fee will be discontinued either when eligible transaction activity has occurred or your account balance is reduced to $0 and your account is subsequently closed by us. The Michigan Uniform Unclaimed Property Act requires the Credit Union to turn abandoned funds within the jurisdiction of Michigan over to the State after three years with no activity. Other accounts with other state jurisdictions have various schedules as to when abandoned funds must be submitted to them. The Credit Union reserves the right to submit funds to any state within the permissible time-frame after inactivity.

Statement. You will receive a monthly periodic statement for your Checking Account. You will receive a quarterly periodic statement for your Share Account or other savings accounts unless you have an electronic funds transfer transaction during a monthly period, or a combined statement. Each such statement shall show the transactions on your accounts and any charges. We reserve the right not to send statements for accounts we consider inactive or with a bad address.

You should examine the periodic statement carefully and reconcile the account. If there are any discrepancies, the Credit Union should be notified immediately. You are in the best position to detect an unauthorized signature, a forged endorsement, or an alteration. You have the responsibility for any fraud loss if you fail to exercise reasonable care in examining the statement or fail to report forgeries or alterations to the Credit Union within 60 days of the mailing or availability date of the earliest statement containing those items. The Credit Union will not be liable if items were forged or altered such that the fraud could not be detected by a reasonable institution.

Agreement. This Agreement shall be effective and shall govern all share/deposit and draft accounts with us, as well as all associated products and services. By submitting and/or signing a membership and services application, making deposits or withdrawals, or leaving an amount on deposit, you agree to the terms of this Agreement.

Disputes. In the event of a dispute regarding your accounts with us, you and Dow Credit Union agree to resolve the dispute by looking to this Agreement. You agree that this Agreement is the complete and exclusive statement of the agreement between you and Dow Credit Union which supersedes any proposal or prior agreement, oral or written, and any other communications between you and Dow Credit Union relating to the subject matter of this Agreement. If there is a conflict between what an employee of Dow Credit Union says and the terms of this Agreement, the terms of this Agreement shall prevail.

ACH Transactions. Dow Credit Union is under no obligation to provide ACH origination/transfer services and may in its sole discretion and at any time without notice, modify, revoke access to or no longer offer transfer services. On days that the credit union is closed, ACH origination transactions may be transmitted on the following business day. We reserve the right to assign the obligation to process transfers to a third party. It is your responsibility to ensure that you have sufficient available funds to cover each transfer. We may also collect from you any additional fees, as permitted by law, resulting from non-sufficient funds. We also have the right to terminate your access to these services, cancel a transfer or refuse to resubmit a transfer if any transfer is returned or reversed due to non-sufficient funds, cancellation, stop-payment or similar designation.

Assignment. Neither party may assign this Agreement.

Privacy Notice & Disclosure

Rev. September 2022

Notices

Business Language. Please be advised that English is the official language of both our credit union operation and our contractual arrangement with you. Clear communication is essential to ensure that your best interests are served and the financial cooperative of Dow Credit Union is protected from liability. We therefore may request all notices, requests, claims, demands or other communications be in English and perhaps additionally in writing and may deny any or all such requests that do not meet this criteria. While we will do our best to accommodate you, attempted communication in any other language may result in restricted transactions or denial of service. You acknowledge that modification or refusal of service is acceptable and not wrongful in this instance.

You further understand that it is your responsibility to obtain assistance from us, or other trusted individuals of your choosing, should the language barrier result in your inability to read or understand the account agreement and/or other Dow Credit Union communications. To ensure or expedite service to you, it may be beneficial to establish joint account relationships or set up other legal access to your account with an English-speaking individual. We would be happy to discuss these options with you.

Name or Address Changes. You are responsible for notifying us of any address (including email), contact phone number, or name change. The Credit Union is only required to attempt to communicate with you at the most recent mailing address you have provided to us in the manner prescribed by the credit union. For your safety, the Credit Union reserves the right to discontinue mailing statements, access devices or other correspondence when we have received returned items due to an inaccurate or incomplete address. The Credit Union requires all notices of change in address to be in writing and signed by the member in person, through online banking, or with other authenticated processes deemed acceptable by the Credit Union.

Amendment. We may change any of the items of this Agreement at any time without prior notice to you if the change is favorable to you. We may make changes that are adverse to you only if we provide you with any notice required by law or required in this Agreement. You agree that our provision of a notice to you summarizing the changes together with information on how you may obtain a complete copy of the revised Agreement constitutes sufficient notice of the change. When we change this Agreement, you may close the account if you do not agree to the changes; if you continue to use the account or keep the account open after the effective date of such change, you will be deemed to have agreed to the changes. In the event of joint ownership, notice to any one joint depositor shall be deemed notice to all. We reserve the right not to send notice for accounts we consider inactive or with a bad address.

Your Responsibility for Check Negotiation. - Checks Deposited in Your Account. When you deposit a check there is a risk that you will not be paid - you assume the liability for that transaction, including the total amount of the check and any fees associated with a returned check. Do not rely on money from a check unless you know and trust the person you’re dealing with, and mistakes happen where even a trusted person may present you with a check that can’t be paid.

To help you identify bad checks, the Credit Union may use any manual or commercially available method to inspect checks for indicators of fraud, alteration, forgery, or counterfeited elements. There is no warranty as to the validity of the check based on these inspections nor is there an obligation for the credit union to inspect all checks.

The Credit Union reserves the right to refuse a check or to place an exception hold, in accordance with our Funds Availability Policy, on a check when there is reasonable suspicion the funds from the check won't be collectible.

When the funds originating from a check deposit are made available in your account, the Credit Union may say the check has “cleared,” but this does not absolve you of liability should the Credit Union receive a notice of non-payment from the paying bank. Fraudulent checks can take days, weeks, or even years to be discovered. If the check is determined to be invalid for any reason, and you withdrew or otherwise used the available funds, you are solely responsible for reimbursing Dow Credit Union for any loss. To collect against any loss due to a dishonored check, the Credit Union may collect on any funds held on deposit for any of the account owners at Dow Credit Union or the Credit Union may use any available legal recourse.

Returned Item. Deposits of items, such as checks written to you and drawn on another financial institution, made to your account will be credited to your account the day of the deposit and the deposited funds may be made available to you according to our funds availability as outlined in this agreement. Upon processing of the deposited item through a draw request on the other financial institution we may receive notice that the transaction is not able to be completed for a variety of reasons (including non-sufficient funds, closed account, or suspected fraud).

If the transaction is not able to be finalized, we will remove any funds that were credited to your account as part of the deposit transaction. If you have removed the deposited amount, we will still debit your account including drawing your account balance negative up to the amount of the transaction and associated fees, if applicable. See Account Fee Schedule for details on fees.

Effect of Notice. Any written notice you give us is effective when we receive it. Any written notice we give to you is effective when it is deposited in the U.S. Mail, postage prepaid and addressed to you at your statement mailing address. Notice to any account owner is considered notice to all account owners. Notices to us should be sent to Dow Credit Union, PO Box 1649, Midland, Michigan 48641-1649.

Indemnity. If by following your instructions we are exposed to a claim or suit by an adverse claimant, you shall hold us harmless and indemnify us from any such losses, expenses, liabilities or damages including actual attorneys’ fees. If you ask us to follow instructions that we believe might expose us to claims, suits, losses, expenses, liabilities or damages, whether directly or indirectly, we may refuse to follow your instructions, or we may require a bond or other protections.

Severability. If any of this Agreement is found by any other court or regulatory body of competent jurisdiction to be invalid or unenforceable in whole or in part for any reason whatsoever, the authority of the remaining provisions or portions hereof shall not be affected thereby.

No Waiver. Dow Credit Union shall not be deemed to have waived any of its rights or remedies hereunder unless such waiver is in writing and signed by Dow Credit Union. No delay or omission on the part of Dow Credit Union in exercising any rights or remedies shall operate as a waiver of such rights or remedies or any other rights or remedies. A waiver on any one occasion shall not be construed as a bar or waiver of any rights or remedies on future occasions.

Offset. If you owe us money as a borrower, guarantor, endorser or otherwise, we have a lien on the account funds in any account in which you have an ownership interest, regardless of their source, unless prohibited by law. We may apply these funds in any order to pay off your indebtedness. By not enforcing a lien, we do not waive our right to enforce it later. In addition, you grant the Credit Union a consensual security interest in your accounts and we may use the funds from your accounts to pay any debt or amount now or hereafter owed the Credit Union, unless prohibited by applicable law. We will notify you if we have exercised our right of offset. All accounts are nonassignable and nontransferable to third parties. Notwithstanding the foregoing, the Credit Union shall not have a lien or security interest in any of your account funds or accounts for any obligation secured by your principal residence. In addition, the Credit Union expressly disclaims the lien arising under Section 361 of the Michigan Credit Union Act (Act 215 of 2003, being MCL 490.361), as amended, for any obligation secured by your principal residence, and only for those obligations secured by your principal residence.

In addition, if your account is overdrawn, you authorize us to deduct the amount your account is overdrawn from any deposit or credit to your account, including payroll/retirement checks and deposits of government payments or benefits, including, but not limited to, Social Security deposits.

Reporting of Negative Information. We may report information about your account to credit bureaus. Late payments, missed payments, or other defaults on your account may be reflected in your credit report.

Telephone Requests & Facsimile Signatures. You agree (for joint accounts, all joint tenants agree jointly and severally) that funds in any of your accounts with us can be transferred, upon the telephone request of any signer on the account, to another account with us or to any other financial institution, and that the Credit Union may accept and rely on facsimiles of your signature(s) on any deposit or withdrawal form, order or other notices, requests or instructions regarding any account under this Agreement or with the Credit Union. We shall not be responsible for any loss incurred as a result of our acting upon or executing any request, order or instruction we believe to be genuine. Furthermore, we may refuse to execute any telephone/facsimile request or order.

Telephone Monitoring. To ensure that you receive courteous and efficient service, as well as to assist in ongoing training, you consent that telephone calls may be recorded and/or monitored by supervisory personnel.

Text Messages, Calls and/or Emails to You. By providing us with a telephone number (including a wireless/cellular, mobile telephone number and/or email address), you consent to receiving calls from us at that number and/or emails from us for our everyday business purposes (including identity verification). You further consent to receiving text messages from us at that number, and/or emails from us for marketing purposes. Please review our Privacy Policy for more information.

Disabilities. We will accommodate reasonable requests to assist members with disabilities. In order to do so, you agree to notify us of any disability and/or accommodation requests. You will notify us regarding any service providers you wish to use; and you will provide us with information to allow us to identify the service providers.

Information About Your Accounts and About You. Generally, we will not disclose information to third parties about your accounts or about you without your permission. However, we may disclose information: (1) when it is necessary to complete transfers or transactions, or to send notice of dishonor or nonpayment; (2) to our accountants, attorneys or other professional advisors; (3) to Credit Union or financial institution regulators; (4) to exchange, in the regular course of business, credit information with other financial institutions or commercial enterprises, directly or through credit reporting agencies; (5) to advise third parties of accounts closed for misuse; (6) to furnish information to the appropriate law enforcement authorities when we believe we have been a victim of a crime; (7) to comply with government agency or court orders, or to furnish any information required by statute; (8) to furnish information about the existence of an account to a judgment creditor of yours who has made a written request for such information; (9) when we are attempting to collect an obligation owed to us; or (10) unless otherwise prohibited by law. In addition, you understand and agree that we may, from time to time, request and review credit reports and other information about you prepared by credit reporting agencies or others.

Section Headings. Section headings in this Agreement are for convenience of reference only and shall not govern the interpretation of any of the provisions of this Agreement.

Joint Accounts. If more than one person signs/submits an application for a Share Account or an application for another type of share/deposit account, each account holder is considered an owner of the money and the Credit Union is authorized to accept any of the signatures on the application for deposits or withdrawals or the transaction of any business in relation to the account. You agree that any funds in that account, less setoffs as allowed by law for sums due the Credit Union by any party, may be paid upon request or order of any person submitting that application whether any other applicants are living or not. Each signer appoints each other signer to be his or her irrevocable attorney: to make deposits to the account; to endorse, for cash or deposit, any checks or other items whether payable to one of the signers alone or with others; and to receive and receipt for all funds all without obligation to us to inquire into the source or application of funds. To induce us to act hereunder, each person submitting the application jointly and singly agrees to hold the Credit Union harmless and indemnify us from loss, cost, and damage in all respects in connection with any of the foregoing, including court costs and attorney fees, except as may be limited by applicable law.

Consent by the Member-Owner to accept a Joint Owner on the account, authorizes Joint Owners to request account maintenance, including opening/closing accounts, changing beneficiaries, and account number changes.

You are creating, and intend to create, a “joint tenancy with rights of survivorship,” which means that after the death of an owner, the account and all remaining funds are owned by the surviving owner(s) in accordance with the account contract. You as the owners of the account agree with yourselves and the Credit Union that all sums paid in shares or other deposits (as applicable), together with all accumulations, prior to now or hereafter, less setoffs as allowed by law for sums due the Credit Union by any party, shall be owned by all of you jointly with full right of survivorship, and shall be subject to withdrawal or receipt by any of you in whole or in part. Payment to any of you or the survivor(s) of you, or your personal representatives, administrators or assigns of the last survivor(s) of you, shall be valid and discharge the Credit Union from any liability for such payment and amount. Any or all of the joint owners may pledge all or part of the shares or deposits in the account as collateral for security on a loan. No authority or obligation of the Credit Union may be changed or terminated by one or more of the joint owners without prior written notice to the Credit Union, and no such change or termination shall affect transactions already made. Further, each joint owner is subject to the terms and disclosures of this Agreement.

Further, if we receive written notice of a dispute between account owners, or inconsistent instructions from them, we may suspend or terminate the account and require a court order or written consent from all owners to act.

Joint account owners established on any Dow Credit Union accounts will not have safe deposit box access or privileges, unless specifically appointed on the Safe Deposit Box Signature Card or as required by law. Access to safe deposit boxes will only be granted to the Renter, Co-Renter(s), Deputy(ies) or persons legally appointed to act on the Renter’s behalf.

Except as modified in this Agreement, joint accounts shall be subject to and governed by PA 41 of the Public Acts of 1968, as amended, being MCLA 490.51, and commonly known as the Credit Union Multiple-Party Accounts Act.

POD/Trust Account Designation. A payable on death (POD) account or trust account designation is an instruction to the Credit Union that a single or multiple party account so designated is payable to the owner(s) during his, her or their lifetimes and, when the last account owner dies, payable to any named and surviving POD or trust beneficiary/payee. Accounts payable to more than one surviving beneficiary/payee are owned jointly by such beneficiaries/payees with rights of survivorship.

We are not obligated to notify any beneficiary/payee of the existence of any account or the vesting of the beneficiary/payee’s interest in any account, except as otherwise provided by law.

Accounts for Minors. We may require any account established by a minor to be a multiple party account with an owner who has reached the age of majority under state law and who shall be jointly and severally liable to us for any returned item, overdraft, or unpaid charges or amounts on such account. We may pay funds directly to the minor without regard to his or her minority. Unless a guardian or parent is an account owner, the guardian or parent shall not have any account access rights. We have no duty to inquire about the use or purpose of any transaction. We will not change the account status when the minor reaches the age of majority, unless authorized in writing by all account owners.

Children's Online Privacy Protection Act (COPPA). With the exception of applying for membership, Dow Credit Union does not knowingly collect, nor is our web site designed or directed to use personal information from children under the age of 13 without containing verifiable consent from their parents in compliance with COPPA. Dow Credit Union does not collect information from such children to participate in online activities.

Electronic Storage of Documents. You agree that Dow Credit Union may, at its option, retain all documents pertaining to your share/deposit accounts or loans with Dow Credit Union in electronic format only. If retained electronically, the electronic copy shall be considered an original.

You should also consider retaining original court orders and notices, official court documents, and any notice of default, acceleration, repossession, foreclosure, or eviction related to an individual’s primary residence.

Social Media. 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 shared or discernible from such use or sharing; and the use of such information by us does not violate your privacy or other rights. If you have consented to communicating with us through your engagement via social media, we may use any social media addresses you may establish from time to time.

Agency Designation on an Account. An agency designation on an account is an instruction to us that the owner authorizes another person to make transactions as agent for the account owner regarding the accounts designated. An agent has no ownership interest in the account(s) or Credit Union voting rights. We have no duty to accept agency designations on any account or inquire about the use or purpose of any transaction made by the agent.

Legal Process. If any legal action is brought against your account, we may pay out funds according to the terms of the action or refuse any payout until the dispute is resolved. Any expenses or attorney fees we incur responding to legal process may be charged against your account without notice, unless prohibited by law. Any legal process against your account is subject to our lien and security interest.

Taxpayer Identification Numbers and Backup Withholding. Your failure to furnish a correct Taxpayer Identification Number (TIN) or meet other requirements may result in backup withholding. If your account is subject to backup withholding, we must withhold and pay to the Internal Revenue Service (IRS) a percentage of dividends, interest and certain other payments. If you fail to provide your TIN, we may suspend opening your account.

Special Account Instructions. You may request that we facilitate certain trust, will, or court-ordered account arrangements. However, because we do not give legal advice, we cannot counsel you as to which account arrangement most appropriately meets the specific requirements of your trust, will, or court order. If you ask us to follow any instructions that we believe might expose us to claims, lawsuits, expenses, liabilities, or damages, whether directly or indirectly, we may refuse to follow your instructions or may require you to indemnify us or post a bond or other protection.

Inappropriate Transactions. You understand that share/deposit accounts, loan accounts and all other services provided by Dow Credit Union are for personal use only. Use for any other purpose may result in refusal of service or account closure.

In accordance with the requirements of the Unlawful Internet Gambling Enforcement Act of 2006 and Regulation GG, restricted transactions are prohibited from being processed through your account or relationship with our institution. Restricted transactions are transactions in which a person accepts credit, funds, instruments or other proceeds from another person connected with unlawful Internet gambling.

You warrant and agree that you will not use any Credit Union accounts or services, including but not limited to loans, to make or facilitate any illegal transaction(s) as determined by applicable law; and that any such use, including any such authorized use, will constitute a breach of this Agreement. Certain federal and/or state laws or card service provider’s rules may limit or prohibit certain transactions such as (but not limited to) those coded as gambling transactions. The Credit Union may decline to accept, process or pay any transaction that we believe to be illegal or unenforceable (regarding your obligation to pay us or otherwise) under applicable law; or which is otherwise limited or prohibited, including but not limited to any transaction involving or relating to any gambling activity. Such prohibition or limitations may affect some otherwise proper or allowable transactions such as debits, charges or other transactions at or relating to a hotel-casino. You understand and agree such limitations/prohibitions are not within the Credit Union’s control and that the Credit Union will not have any liability, responsibility or culpability whatsoever for any such use by you or any authorized user(s); or for declining to accept, process, or pay any such transaction. You further agree to indemnify and hold the Credit Union harmless from any suits, liability, damages or adverse action of any kind that results directly or indirectly from any such use of your account and/or access devices.

Account Holder Conduct. Sanctions may be imposed on an account holder who engages in any type of verbal, nonverbal, or other unacceptable or abusive conduct while engaged in credit union business, on credit union property or at a credit union sponsored event. Sanctions may include denial of services, other actions as appropriate, or may result in expulsion from membership. A copy of the Member/Visitor Conduct Policy is available for review during regular business hours.

Restrictions Required by Applicable Laws. We will block, limit or otherwise restrict certain accounts or transactions when we believe in good faith that certain laws including but not limited to the Bank Secrecy Act, USA Patriot Act and Office of Foreign Assets Control Act require us to do so.

Account Monitoring and Service Suspension. It is your responsibility to monitor your account for suspicious or fraudulent activity, and to immediately notify the credit union if your account has been compromised. Dow Credit Union may use any method, manual inspection or commercially available software, to monitor your account activity. The credit union may monitor accounts for anomalous activity including, but not limited to, transactions, account changes, and service usage. If the credit union identifies account activity that is indicative of fraudulent or inappropriate usage, any or all of the account services may be suspended until further review can confirm appropriate usage or the account owner(s) can identify the activity was authorized by them. The Credit Union will comply with applicable laws to report suspicious activity with government agencies and law enforcement; such action will not be shared with you.

Termination of Account. We may terminate your account at any time without notice to you or may require you to close your account and apply for a new account if: (1) there is a change in owners or authorized signers; (2) there has been a forgery or fraud reported or committed involving your account; (3) there is a dispute as to the ownership of the account or of the funds in the account; (4) any checks are lost or stolen; (5) there are excessive returned unpaid items not covered by an overdraft protection plan; (6) there has been any misrepresentation or any other abuse of any of your accounts; or (7) we reasonably deem it necessary to prevent a loss to us. You may terminate a single party account by giving written notice. We reserve the right to require the consent of all owners to terminate a multiple party account. We are not responsible for payment of any draft, withdrawal, or other item after your account is terminated, however, if we pay an item after termination, you agree to reimburse us.

Termination of Membership. You may terminate your membership by giving us notice. You may be denied services or expelled for any reason allowed by applicable law, including causing a loss to the Credit Union.

Governing Law. This Agreement shall be governed by and construed in accordance with Dow Credit Union’s Bylaws, federal laws and regulations, the laws, including applicable principles of contract law, and regulations of the State of Michigan, and local clearinghouse rules, as amended from time to time. Except as otherwise provided in the Arbitration Section of this Agreement as permitted by applicable law, you agree that any legal action regarding this Agreement shall be brought in the jurisdiction of the Credit Union’s main office.

Permitted Time for Filing a Lawsuit. You must file any lawsuit or arbitration against us within one year after the cause of action arises, unless federal or state law or an applicable agreement provides for a shorter time. This limit is in addition to limits on notice as a condition of making a claim.

Binding Arbitration & Class Action Waiver - Resolution of Disputes by Arbitration.

THIS SECTION CONTAINS IMPORTANT INFORMATION REGARDING YOUR ACCOUNTS AND ALL RELATED SERVICES. IT PROVIDES THAT EITHER YOU OR WE CAN REQUIRE THAT ANY DISPUTES BE RESOLVED BY BINDING ARBITRATION. ARBITRATION REPLACES THE RIGHT TO GO TO COURT, INCLUDING THE RIGHT TO A JURY TRIAL AND THE RIGHT TO PARTICIPATE IN A CLASS ACTION OR SIMILAR PROCEEDING. IN ARBITRATION, THE DISPUTE IS SUBMITTED TO A NEUTRAL PARTY, AN ARBITRATOR, INSTEAD OF A JUDGE OR JURY. ARBITRATION PROCEDURES MAY BE MORE LIMITED THAN RULES APPLICABLE IN COURT.

Agreement to Arbitrate Disputes. Either you or we may elect, without the other’s consent, to require that any dispute between us concerning your membership, your deposit accounts (“Accounts”) and the services related to your membership and Accounts, including but not limited to all disputes that you may raise against us, must be resolved by binding arbitration, except for those disputes specifically excluded below.

No Class Action or Joinder of Parties. YOU ACKNOWLEDGE THAT YOU AND WE AGREE THAT NO CLASS ACTION, CLASS-WIDE ARBITRATION, PRIVATE ATTORNEY GENERAL ACTION, OR OTHER PROCEEDING WHERE SOMEONE ACTS IN A REPRESENTATIVE CAPACITY, MAY BE PURSUED IN ANY ARBITRATION OR IN ANY COURT PROCEEDING, REGARDLESS OF WHEN THE CLAIM OR CAUSE OF ACTION AROSE OR ACCRUED, OR WHEN THE ALLEGATIONS OR FACTS UNDERLYING THE CLAIM OR CAUSE OF ACTION OCCURRED. Unless mutually agreed to by you and us, claims of two or more persons may not be joined, consolidated, or otherwise brought together in the same arbitration (unless those persons are joint account holders or beneficiaries on your account and/or related accounts, or parties to a single transaction or related transaction), whether or not the claim may have been assigned.

Disputes Covered by Arbitration. YOU ACKNOWLEDGE THAT IN ARBITRATION THERE WILL BE NO RIGHT TO A JURY TRIAL. Any claim or dispute relating to or arising out of your Accounts or our relationship will be subject to arbitration, regardless of whether that dispute arose before or after your receipt of this notice. Disputes include claims made as part of a class action, private attorney general or other representative action, it being expressly understood and agreed to that the arbitration of such claims must proceed on an individual (non-class, non-representative) basis and the arbitrator may award relief only on an individual (non-class, non-representative) basis. Disputes also include claims relating to the enforceability or interpretation of any of these arbitration provisions. Any questions about whether disputes are subject to arbitration shall be resolved by interpreting this arbitration provision in the broadest way the law will allow it to be enforced.

All disputes are subject to arbitration, no matter what legal theory they are based on, or what remedy (damages, or injunctive or declaratory relief) they seek. Disputes include any unresolved claims concerning any services relating to your Accounts. Disputes include not only claims made directly by you, but also made by anyone connected with you or claiming through you, such as a joint account holder, account beneficiary, employee, representative, agent, predecessor or successor, heir, assignee, or trustee in bankruptcy. Disputes include not only claims that relate directly to the Credit Union, but also its affiliates, successors, assignees, officers, directors, employees, and agents, and claims for which we may be directly or indirectly liable, even if we are not properly named at the time the claim is made. Disputes include claims based on any theory of law, contract, statute, regulation, tort (including fraud or any intentional tort), or any other legal or equitable ground, and include claims asserted as counterclaims, cross-claims, third-party claims, interpleaders or otherwise; and claims made independently or with other claims. If party initiates a proceeding in court regarding a claim or dispute which is included under this Resolution of Disputes by Arbitration provision, the other party may elect to proceed in arbitration pursuant to this Resolution of Disputes by Arbitration provision.

Disputes Excluded from Arbitration. Disputes filed by you or by us individually in a small claims court are not subject to arbitration, so long as the disputes remain in such court and advance only an individual (non-class, non-representative) claim for relief. However, if a matter in small claims court is removed, transferred, or appealed to a non-small claims court, that claim shall be subject to this Resolution of Disputes by Arbitration provision. Our Claims or disputes against you arising from your status as a borrower under any loan agreement with the Credit Union or to collect any funds you may owe us are also excluded from this Resolution of Disputes by Arbitration provision.

Commencing an Arbitration. The arbitration must be filed with one of the following neutral arbitration forums and follow its rules and procedures for initiating and pursuing an arbitration: American Arbitration Association or JAMS. If you initiate the arbitration, you must notify us in writing at:

Dow Credit Union
Attn: Compliance
PO Box 1649
Midland, MI 48641-1649

If we initiate the arbitration, we will notify you in writing at your last known address on file. You may obtain a copy of the arbitration rules for these forums, as well as additional information about initiating an arbitration by contacting these arbitration forums:

American Arbitration Association
1-800-778-7879 (toll-free)
www.adr.org

JAMS
1-800-352-5267 (toll-free)
www.jamsadr.com

The arbitration shall be conducted in the same city as the U.S. District Court closest to your home address, unless the parties agree to a different location in writing.

Administration of Arbitration. The arbitration shall be decided by a single, neutral arbitrator. The arbitrator will be either a lawyer with at least ten years of experience or a retired or former judge selected in accordance with the rules of the arbitration forum. The arbitrator shall follow procedures and rules of the arbitration forum in effect on the date the arbitration is filed unless those rules and procedures are inconsistent with this arbitration provision, in which case this arbitration provision will prevail. Those provisions and rules may limit the discovery available to you or us. The arbitrator will take reasonable steps to protect customer account information and other confidential information if requested to do so by you or by us. The arbitrator shall decide the dispute in accordance with applicable substantive law consistent with the Federal Arbitration Act and applicable statutes of limitations, will honor claims of privilege recognized at law, and will be empowered to award any damages or other relief provided for under applicable law. The arbitrator will not have the power to award relief to, or against, any person who is not a party to the arbitration. An award in arbitration shall determine the rights and obligations between the named parties only, and only in respect of the claims in arbitration, and shall not have any bearing on the rights and obligations of any other person, or on the resolution of any other dispute. You or we may choose to have a hearing and be represented by counsel. The decision rendered by the arbitrator shall be in writing. At your or our request, the Arbitrator shall issue a written, reasoned decision following applicable law and relief granted must be relief that could be granted by the court under applicable law. Judgment on the arbitration award may be entered by any court of competent jurisdiction.

Costs. The party initiating the arbitration shall pay the initial filing fee. If you file the arbitration and an award is rendered in your favor, we will reimburse you for your filing fee. If there is a hearing, we will pay the fees and costs of the arbitration for the first day of that hearing. All other fees and costs will be allocated in accordance with the rules of the arbitration forum. However, we will advance or reimburse filing and other fees if the arbitrator rules that you cannot afford to pay them or finds other good cause for requiring us to do so, or if you ask us in writing and we determine there is good reason for doing so. Each party shall bear the expense of their respective attorneys, experts, and witnesses and other expenses, regardless of who prevails, but a party may recover any or all costs and expenses from another party if the arbitrator, applying applicable law, so determines.

Right to Resort to Provisional Remedies Preserved. Nothing herein shall be deemed to limit or constrain our right to resort to self-help remedies, such as the right of set-off or the right to restrain funds in an account, to interplead funds in the event of a dispute, to exercise any security interest or lien we may hold in property, or to comply with legal process, or to obtain provisional remedies such as injunctive relief, attachment, or garnishment by a court having appropriate jurisdiction; provided, however, that you or we may elect to arbitrate any dispute related to such provisional remedies, except in an action by us against you that has been initiated by us to collect funds that you may owe to us.

Arbitration Award. The arbitrator’s award shall be final and binding unless a party appeals it in writing to the arbitration forum within fifteen days of notice of the award or pursuant to the rules of the arbitration forum, whichever is later. The appeal must request a new arbitration before a panel of three neutral arbitrators selected in accordance with the rules of the same arbitration forum. The panel will consider all factual and legal issues anew, follow the same rules that apply to a proceeding using a single arbitrator, and make decisions based on the vote of the majority. Costs will be allocated in the same manner as allocated before a single arbitrator. An award by a panel is final and binding on the parties after fifteen days of notice of the award or pursuant to the rules of the arbitration forum, whichever is later. A final and binding award is subject to judicial intervention or review only to the extent allowed under the Federal Arbitration Act or other applicable law. A party may seek to have a final and binding award entered as a judgment in any court having jurisdiction.

Governing Law. You and we agree that our relationship includes transactions involving interstate commerce and that these arbitration provisions are governed by, and enforceable under, the Federal Arbitration Act. To the extent state law is applicable, the laws of the State of Michigan shall apply.

Severability, Survival. These arbitration provisions shall survive (a) termination or changes to your accounts or any related services; (b) the bankruptcy of any party; and (c) the transfer or assignment of your Accounts or any related services. If any portion of this Resolution of Disputes by Arbitration provision is deemed invalid or unenforceable, the remainder of this Resolution of Disputes by Arbitration provision shall remain in force. No portion of this Resolution of Disputes by Arbitration provision may be amended, severed, or waived absent a written agreement between you and us.

Applicability. Arbitration will not apply to your Account as long as you are an active duty Service Member.

Right to Reject this Resolution of Disputes by Arbitration provision. YOU MAY CHOOSE TO REJECT THIS RESOLUTION OF DISPUTES BY ARBITRATION PROVISION BY SENDING US WRITTEN NOTICE AS DESCRIBED BELOW:

Agreement to the Resolution of Disputes by Arbitration provision:

1. If you agree to be bound by the above Resolution of Disputes by Arbitration provision, then no action is needed on your part.

2. If you take no action, then effective immediately your Accounts will be bound by this Resolution of Disputes by Arbitration provision.

Rejection of the Resolution of Disputes by Arbitration provision:

1. If you do not agree to be bound by this Resolution of Disputes by Arbitration provision, you must send us written notice that you reject the Resolution of Disputes by Arbitration provision within 30 days of receiving this notice, whichever is sooner, including the following information:

a. Your written notice must include: your name, as listed on your account, your account number, and a statement that you reject the Resolution of Disputes by Arbitration provision, and;

b. You must send Your written notice to us at the following address:

Dow Credit Union
Attn: Compliance
PO Box 1649
Midland, MI 48641-1649

Regulation E Disclosures on Electronic Funds Transfers

Consumer Accounts

Regulation E and the applicable disclosures described below, only apply to consumer (natural person) accounts. Regulation E and the following disclosures (excluding Visa^®-specific disclosures) do not apply to Health Savings Accounts (HSAs) or trust accounts.

Your Liability for Unauthorized Transfers. Tell Dow Credit Union AT ONCE if you believe your ATM Card, ATM Personal Identification Number (“PIN”), Visa Debit Card, Visa Debit Card PIN, Online Banking Password, and/or Mobile Banking Password (collectively “Access Device”) has been lost or stolen, or if you believe that an electronic fund transfer has been made without your permission using information from your check. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your Account (plus your maximum overdraft/Courtesy Pay limit/line of credit). If you tell Dow Credit Union within two (2) Business Days after you learn of the loss or theft of your Password, you can lose no more than $50 if someone used your Access Device without your permission.

If you do NOT tell Dow Credit Union within two (2) Business Days after you learn of the loss or theft of your Access Device and Dow Credit Union can prove it could have stopped someone from using your Access Device without your permission if you had told Dow Credit Union, you could lose as much as $500.

Also, if your periodic statement shows transfers that you did not make, including those made by card, code, or other means, tell Dow Credit Union at once. If you do not tell Dow Credit Union within 60 days after the statement was mailed/made available to you, you may not get back any money you lost after the 60 days if Dow Credit Union can prove that it could have stopped someone from taking the money if you had told Dow Credit Union in time. If a good reason (such as a long trip or a hospital stay) keeps you from telling Dow Credit Union, it will extend the time periods.

Contact in Event of Unauthorized Transfer. If you believe that your Access Device has been lost or stolen, call 989.835.7794 or 800.835.7794, visit our office, or write:

Dow Credit Union
PO Box 1649
Midland, MI 48641-1649

You should also call the number or write to the address listed above if you believe a transaction has been made without your permission.

Electronic Funds Transfer (EFT) Disclosure - Reversing EFT. If an "Electronic Fund Transfer" described in this section was a payment of $50.00 or more for goods or services, you have the right to require us to reverse such transfer and to re-credit your account with the full amount of the transfer if (1) you tell us, within 4 calendar days after the date of the transfer, to make such a reversal, (2) you notify us that you have made a good faith attempt to resolve your dispute with the third party involved, and (3) you assure us that any returnable goods involved in the dispute will be returned.

If you do these things in writing, you MUST send the letter to our address as set forth at the end of this EFT Disclosure.

If you phone us, you MUST call at the phone number as set forth at the end of this EFT Disclosure.

If you tell us orally that you want such a transfer reversed, you MUST send us a letter to confirm your reversal request, your notice of attempted resolution of the dispute, and your assurance to return any returnable goods involved. You are required to get this letter back to us within 14 calendar days after the date of your oral request for reversal. We reserve the right to impose a reasonable charge for handling such reversal requests, and to increase such charges thereafter.

Business Days. For purposes of these disclosures, Dow Credit Union’s business days are Monday through Friday. Holidays are not included. We reserve the right to change our Business Days, hours, and days we are closed.

Transfer Types and Limitations. Any number of transactions may be affected through your use of one of the Access Devices. You may use your Access Device to:

• Withdraw cash from your checking or savings account.
• Make deposits to your checking or savings account.
• Transfer funds between your checking and savings account whenever you request.
• Pay for purchases at places that have agreed to accept the Access Device.
• Pay bills directly by telephone or through Online Banking and Mobile Banking from your checking or savings account in the amounts and on the days you request.

Some of these services may not be available at all terminals or through all Access Devices.

Electronic Check Conversion. You may authorize a merchant or other payee to make a one-time electronic payment from your checking account using information from your check to:

• Pay for purchases.
• Pay bills.

You may also be authorizing the merchant or other payee to electronically debit your account for returned check fees

Limitations on Frequency of Transfers. The following limitations apply:

• Transaction Limitations. You may withdraw up to $1,000 per day through the use of your ATM Card or Visa Debit Card. Your account has a daily limit of $5,000 when using a Visa Debit Card at merchant locations, including, but not limited to: on-line, in-person, and over the phone transactions. You may use any combination of PIN-based or Signature-based transactions to reach the daily limit of $5000. You cannot use your Visa Debit Card to access your savings account to make point-of-sale purchases of goods or services at merchant locations. Through Bill Pay offered through Online Banking, there is a minimum transaction limitation of $1 and a maximum transaction limitation of $25,000. We reserve the right to impose any such restrictions in the future as we deem reasonable, but we will give you at least twenty-one (21) days notice before doing so.
• Merchants. Merchants and others who honor your Visa Debit Card may give credit electronically for returns or adjustments. They will do so by initiating a credit to us, and your account will be credited. We are not responsible or liable for the refusal of any merchant, financial institution, or electronic terminal to honor your card, complete a withdrawal from your account or for its retention of your card even if funds are available.
• Foreign Transactions and Currency Conversion. If you effect a transaction with your debit card in a currency other than US Dollars, Visa will convert the charge into a US Dollar amount. The Visa currency conversion procedure includes use of either a government-mandated exchange rate or a wholesale exchange rate selected by Visa. The exchange rate Visa uses will be a rate in effect on the day the transaction is processed. This rate may differ from the rate in effect on the date the transaction occurred or the date the transaction was posted to your account.
• Advisory Against Illegal Use. You agree not to use your card(s) for (i) any restricted online gambling, whether legal or illegal, (ii) illegal gambling, or(iii) any other illegal purpose. 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.

Service Charges. Dow Credit Union currently imposes no separate charges for the use of an Access Device or Dow Credit Union Automated Teller Machines (“ATMs”). We reserve the right to impose or amend fees from time to time upon twenty-one (21) days prior written notice. In addition, if you use an ATM or other terminal not owned by us to complete a transaction or make a balance inquiry, the owner of that ATM or network may charge you a fee.

Confidentiality. Dow Credit Union may disclose information about your account, or the transfers, transactions, or payments you perform to third parties and you hereby authorize those third parties to disclose similar information to Dow Credit Union:

• Where it is necessary for completing transfers or transactions;
• In order to verify the existence and condition of your Account for a third party such as, for example, a credit bureau, a merchant or another financial institution;
• Where required by a federal, state, or local law or regulation to do so;
• In response to a subpoena or are ordered by a court to do so;
• In the investigation or prosecution of alleged fraudulent activity concerning your Accounts;
• If you give Dow Credit Union your permission; or
• As may be otherwise authorized in other agreements with Dow Credit Union and as set forth in Dow Credit Union’s Privacy Policy.

Documentation.

Terminal Transfers. You can get a receipt at the time you make any transfer to or from your account using one of our ATMs or point-of-sale terminals.

Preauthorized Credits. If you have arranged to have direct deposits made to your account at least once every 60 days from the same person or company, you can call Dow Credit Union at 989.835.7794 or 800.835.7794 to find out whether or not the deposit has been made.

Periodic Statements. You will get a monthly account statement, unless there are no transfers in a particular month. In any case you will get the statement at least quarterly.

Preauthorized Payments.

Right to Stop Payment and Procedure for Doing So. If you have told Dow Credit Union in advance to make regular payments out of your account, you can stop any of these payments by calling Dow Credit Union at 989.835.7794 or 800.835.7794, or writing us at Dow Credit Union, PO Box 1649, Midland, MI 48641-1649, in time for Dow Credit Union to receive your request three (3) Business Days or more before the payment is scheduled to be made. If you call, we may also require you to put your request in writing and get it to Dow Credit Union within 14 days after you call. Dow Credit Union will charge you $20 for each stop-payment order you give.

Notice of Varying Amounts. If these regular payments may vary in amount, the person you are going to pay will tell you, ten (10) days before each payment, when it will be made and how much it will be. (You may choose instead to get this notice only when the payment would differ by more than a certain amount from the previous payment, or when the amount would fall outside certain limits that you set.)

Liability for Failure to Stop Payment of Preauthorized Transfer. If you order Dow Credit Union to stop one of these payments 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.

Error Resolution Notice. In case of errors or questions about electronic funds transfers from your account or if you need more information about a transfer on your periodic statement or transaction acknowledgment, telephone Dow Credit Union at 989.835.7794 or 800.835.7794, stop in or write to Dow Credit Union at PO Box 1649, Midland, Michigan 48641-1649 as soon as you can. Dow Credit Union must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared.

1. Tell Dow Credit Union your name and account number (if any).
2. Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information.
3. Tell Dow Credit Union the dollar amount of the suspected error.

If you contact Dow Credit Union, we may require that you send your complaint or question in writing within ten (10) Business Days.

Dow Credit Union will determine whether an error occurred within ten (10) Business Days after we hear from you and will correct any error promptly. If Dow Credit Union needs more time, however, we may take up to 45 days to investigate your complaint or question. If Dow Credit Union decides 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 Dow Credit Union to complete our investigation. (If the error you assert is an unauthorized Visa Debit Card transaction, other than a cash disbursement at an ATM, Dow Credit Union will credit your Account within five (5) Business Days unless we determine that the circumstances or your account history warrant a delay, in which case you will receive credit within ten (10) Business Days.) If Dow Credit Union asks you to put your complaint or question in writing and we do not receive the complaint in writing within ten (10) Business Days, Dow Credit Union may not credit your account.

For errors involving new accounts, point-of-sale, or foreign-initiated transactions, Dow Credit Union may take up to 90 days to investigate your complaint or question. For new accounts, Dow Credit Union may take up to twenty (20) Business Days to credit your account for the amount you think is in error.

Dow Credit Union will tell you the results within three (3) Business Days after completing our investigation. If Dow Credit Union decides that there was no error, we will send you a written explanation. You may ask for copies of the documents that Dow Credit Union used in our investigation.

Liability of Dow Credit Union. If Dow Credit Union does not complete a transfer to or from your Account on time or in the correct amount according to our agreement with you or in accordance with your Transfer Instructions, we will be liable for your losses or damages. However, there are some exceptions. Dow Credit Union shall incur no liability, if Dow Credit Union is unable to complete the payment in a timely manner because:

• Your account does not contain sufficient funds to complete the transaction;
• The transaction exceeds the limit of your overdraft protection options;
• If the ATM where you are making the transfer does not have enough cash;
• The payment processing center or ATM is not working properly and you knew or were advised about the problem before completing the transaction;
• You do not provide Dow Credit Union with correct Payee Account information, or the correct name, address, phone number, or account information for the Payee, or if a Payee does not process a payment correctly, or in a timely manner;
• If circumstances beyond Dow Credit Union’s control (such as, but not limited to, telecommunication failure, fire, flood, or interference from an outside force) prevent or delay the transaction;
• Dow Credit Union has reason to believe the transaction is unauthorized by you; and/or
• There may be other exceptions stated in our agreement with you.

ATM Fees. When you use an ATM not owned by Dow Credit Union, you may be charged a fee by the ATM operator or any network used and you may be charged a fee for a balance inquiry even if you do not complete a fund transfer.

Notices. All notices from us will be effective when we have mailed them or delivered them to your last known address in our records. Notices from you will be effective when received by us at the address specified in this EFT Disclosure.

Amendments. We reserve the right to amend this EFT Disclosure in any manner and at any time. If we do so, we will give you such advance notice thereof as we deem to be reasonable under the circumstances. Where required by law, we will give you at least twenty-one (21) days advance written notice. You agree that we may amend or modify this EFT disclosure without notice if an immediate change is necessary to maintain or restore the security of our account arrangements or of any account.

Termination of Electronic Fund Transfer Services. You may terminate this EFT Disclosure or any EFT service under this EFT Disclosure at any time by notifying us in writing and stopping your use of your card(s) and any access code. Upon termination, you agree to return all cards to the credit union or destroy the cards upon request of the credit union. You also agree to notify any participating merchants that the authority to make bill payment transfers has been revoked. We may also terminate this EFT Disclosure at any time by notifying you orally or in writing at your last known address on file with us. If we terminate this EFT Disclosure, we may notify any participating merchants making preauthorized debits or credits to any of your accounts that this EFT Disclosure has been terminated and that we will not accept any further preauthorized transaction instructions. We may also program our computer not to accept your card(s) or access code for any EFT service. Whether you or the credit union terminate this EFT Disclosure, the termination will not affect your obligations under this EFT Disclosure or any electronic fund transfers made prior to termination. If either you or we terminate this EFT Disclosure, we have the option of terminating all of your accounts with us that may have any sort of electronic access (such as share draft (checking) accounts) or restricting such accounts to in office transactions, a written request (such as by mail), or a phone request made directly to a credit union employee only (which generally would be what we will do with your Share Savings Account). We also may exercise any right described elsewhere in the Account Agreement and Disclosures.

Access Device Revocation. Any card or other device which we supply you (“Access Device”) may be revoked without notice to you in the event that any of the following conditions occur:

• Overdrafts occur as result of insufficient available funds in an account.
• Any transaction that occurs on your account(s) which results in a monetary loss to the Credit Union.
• Account delinquency with the Credit Union, including but not limited to, loans or credit cards.
• Forced closure of a share or share draft account at the Credit Union.
• Any other situation in which the Credit Union deems revocation to be in its best interest.

Regulatory Authority. If you feel Dow Credit Union has violated the Michigan law with respect to the use of an Access Device, you may notify the following regulatory authority:

Dept. of Insurance & Financial Services
Consumer Services
PO Box 30220
Lansing, MI 48909-7720

Non-Consumer Accounts

Additional Liability Provisions. Dow Credit Union shall only be liable for its own negligence or misconduct and shall not be responsible for any loss or damage arising from or in connection with (a) any inaccuracy, act or failure to act on the part of any person not within its reasonable control or (b) any error, failure or delay in execution of any transfer resulting from circumstances beyond its reasonable control including, but not limited to, any inoperability of communication facilities, system delays in effecting account postings, or other operational delays. You agree to promptly examine all periodic statements accounts affected by transfers and any confirmations of transfers that Dow Credit Union or other financial institutions may send or make available to you, and to promptly notify Dow Credit Union of any discrepancy within thirty (30) days of receipt of any periodic statement or confirmation. Dow Credit Union shall not be liable for any loss or damage arising from or in connection with any transfer reflected on such periodic statement or confirmation.

In no event shall Dow Credit Union be liable for any consequential, incidental, special or indirect losses, damages (including dishonor of checks or other items), or expenses (including attorneys’ fees) which you incur or suffer by reason of any agreement with Dow Credit Union provided hereunder, whether or not the likelihood of such losses or damages was known by Dow Credit Union.

Funds Availability - DEPOSIT AVAILABILITY POLICY

Regulation CC Disclosures

This policy describes your ability to withdraw funds deposited into transaction accounts at the credit union. The credit union reserves the right to delay the availability of funds deposited into accounts that are not transaction accounts for periods longer than those disclosed in this policy. Please ask us if you have a question about which accounts are affected by this policy. When a deposit is made to your account, the funds may not be available immediately.

Our policy is to delay the availability of certain funds from your cash and check deposits depending on the circumstances of the deposit, as detailed in this policy. During the delay, you may not withdraw the funds in cash and we will not use the funds to pay checks or other items drawn from your account. Both a summary and specific availability schedules are provided in this policy.

For determining the availability of your deposits, every day is a Business Day, except Saturday, Sundays, and federal (observed) holidays. A deposit made before 11:50PM ET on a Business Day we are open is considered deposited that day. A deposit made on a day we are closed, is considered deposited the next Business Day. Deposit transactions delivered to a Night Drop Box after 2:00PM ET will be considered deposited on the next Business Day we are open.

Same-Day Availability Summary

Funds from the following deposits are generally available on the same day of deposit:

• Electronic Payments received for deposit in an account--An Electronic Payment is considered received (deposited) when the Credit Union has received both payment in collected funds and information on the account and the amount to be credited
• Cash

Next-Day Availability Summary

Funds from the following deposits are generally available on the first Business Day after the day of your deposit:

• U.S. Treasury checks that are payable to you.

If you make the deposit in person to one of our employees, funds from the following deposits are also available on the first Business Day after the day of your deposit:

• Checks drawn on Dow Credit Union
• Michigan State and local government checks that are payable to you
• Federal Reserve Bank checks, Federal Home Loan Bank checks, Cashier’s checks, Certified checks, Teller checks, and Postal Money Orders, if these items are payable to you

If you do not make your deposit in person to one of our employees (for example, if you mail the deposit), funds from these deposits will be available up to the second Business Day after the day we receive your deposit.

For example, if you deposit a check on Monday, you may not be able to withdraw the funds from that check, and we may not pay another transaction with those funds, until Tuesday or even later.

See the Availability Schedules below for details about when you can use the funds from different methods of deposits.

Please remember that even after we have made funds available to you, and you have withdrawn the funds, you are still responsible for checks or other items you deposit that are returned to us unpaid and for any other problems involving your deposit. We may charge the check back to your account.

Longer Delays May Apply

Funds from check deposits made to your checking account may be delayed for up to five (5) Business Days if:

• You deposit checks totaling more than $7,000 on any one day
• We believe a deposited check will not be paid.
• You redeposit a check that has been returned unpaid.
• You have overdrawn your account repeatedly in the last six (6) months.
• There is an emergency, such as failure of computer or communications equipment.

We will notify you if you have deposited into your checking account and we delay your ability to withdraw funds for any of these reasons. We will tell you when the funds will be available.

This policy provides the time when deposited funds are generally available. The time when deposited funds are available for withdrawal may be extended in some cases on a case-by-case basis. The latest time following a deposit that funds will be available for withdrawal is eleven (11) Business Days. We will notify you if funds deposited in your account will not be available for withdrawal until later than the time periods stated in this policy. You should ask if you need to be sure about when a particular deposit will be available for withdrawal.

Holds on Other Funds (Check Cashing). If we cash a check for you that is drawn on another financial institution, we may withhold the availability of a corresponding amount of funds that are already in your account. Those funds will be available at the time funds from the check we cashed would have been available, had you deposited it.

Holds on Other Funds (Other Accounts). If we accept for deposit a check that is drawn on another financial institution, we may make funds from the deposit available for withdrawal immediately but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available for withdrawal until the time periods that are described elsewhere in this disclosure for the type of check that you deposited.

Non-Acceptance of Checks.

The credit union may refuse check deposits at its discretion. Any items which are presented for deposit in person to a teller will be refused at that time. For mail deposits, you will be notified by mail and the deposit returned. It is the policy of the credit union to not accept Cashier’s, Certified, or Teller’s checks for deposit into credit union transaction accounts.

Definitions.

A Business Day is any day of the week except Saturday, Sunday, and federal (observed) holidays. A deposit made before 11:50PM ET on a Business Day is considered deposited that day. A deposit made on a day we are closed, is considered deposited the next Business Day.

Daily Aggregate Deposit is the sum of monetary value of the deposits for a Business Day. The Credit Union separately aggregates check deposits in three different subsets:

1. Deposits made through the Teller Line, Mail, and Night Drop Box are aggregated for the Business Day in which they are received
2. Deposits made through the ATM network are aggregated for the Business Day in which they are received
3. Deposits made through Deposit Check in the Mobile Banking app are aggregated for the Business Day in which they are received

Electronic Payment is an ACH Credit or Wire Transfer.

ACH Credit is a transaction using the Electronic Payments Association (Nacha), to transfer funds electronically via an Automated Clearing House (ACH) transfer that originates at another financial institution to push funds from an account held there to your account at Dow Credit Union.

Wire Transfer is an electronic transfer that utilizes the Federal Reserve’s Fedwire services to transfer money from the originating institution to your Dow Credit Union account.

Automated Teller Machine or ATM means an electronic device located in the United States at which a natural person may make deposits to an account by cash or check and perform other account transactions. Some ATMs may not have the ability to accept deposits.

A Proprietary ATM is an ATM that is owned or operated by Dow Credit Union. These ATMs can be distinguished by the Dow Credit Union brand being displayed on or near the ATM.

A Non-Proprietary ATM is an ATM that is not owned or operated by Dow Credit Union.

Deposit Availability Schedules

In-person to a Teller or Through the Mail

Availability Schedule for Deposits made In-person to a Teller or Through the Mail.

At a Dow Credit Union (Proprietary) ATM

Availability Schedule for Deposits made at a Dow Credit Union (Proprietary) ATM.

At Non-Proprietary (not owned or operated by Dow Credit Union) ATM

Availability Schedule for Deposits made at Non-Proprietary (not owned or operated by Dow Credit Union) ATM.

Funds from any deposits (cash or checks) made at automated teller machines (ATMs) we do not own or operate will be available no later than the fifth (5th) Business Day after the day of your deposit. This rule does not apply at ATMs that we own or operate.

ATMs not owned or operated by Dow Credit Union may not have the ability to distinguish if an item is cash or a non-cash item. The following table applies to deposits made at Non-Proprietary ATMs.

At a Night Drop Box

Availability Schedule for Deposits at a Night Drop Box.

Deposit transactions delivered to the Night Drop Box after 2:00PM ET will be considered deposited on the next Business Day we are open. If, on a Business Day we are open, you make a deposit through a Night Drop Box depository after 2:00PM ET (our cut-off time for Night Drop Box during Business Days we are open), whether or not your deposit was made before our general cut-off time for that Business Day, or your deposit was made at a time or on a day we are not open, we will consider your deposit as having been made on the next Business Day we are open.

Online Banking (mobile) Check Deposit.

See Online Banking Terms and Conditions for details on funds availability for mobile check deposits.

Checks Drawn on Foreign Banks

It is the policy of Dow Credit Union to not accept checks drawn on foreign banks. Checks drawn on non-United States financial institutions are not governed by Regulation CC funds availability. Checks drawn on foreign banks are ineligible deposits. Ineligible deposit items attempted for deposit to the Credit Union that are made payable in foreign (non-U.S.) currency or drawn on an institution located outside the United States will not be credited to your account and the Credit Union is not obligated to return the presented ineligible deposit to you.

Notice Regarding Credit Entries Transmitted Through the Automated Clearing House

Provisional Payment. Credit given by Dow Credit Union to you with respect to an automated clearing house (ACH) credit entry is provisional until we receive final settlement for such entry through a Federal Reserve Bank. If we do not receive such final settlement, you are hereby notified and agree that we are entitled to a refund of the amount credited to you in connection with such entry, and the party making payment to you via such entry (i.e. the originator of the entry) shall not be deemed to have paid you in the amount of such entry.

Notice. Under the operating rules of the National Automated Clearing House Association, which are applicable to ACH transactions involving your account, we are not required to give next day notice to you of receipt of an ACH item and we will not do so. However, we will continue to notify you of the receipt of payments in the periodic statements we provide to you.

Choice of Law. We may accept on your behalf payments to your account which have been transmitted through one or more Automated Clearing Houses (ACH) and which are not subject to the Electronic Funds Transfer Act and your rights and obligations with respect to such payments shall be construed in accordance with and governed by the laws of the State of Michigan as provided by the operating rules of the National Automated Clearing House Association, which are applicable to ACH transactions involving your account.

Special Rules for ACH Transfers from Another Financial Institution. If you request and we agree to originate an ACH transfer from another financial institution, to ensure payment in actually and finally collected funds, we will make those funds available to you no later than the fourth business day after the day of deposit. Although funds from ACH originations are posted to your account on the day of deposit, they may not be immediately available for withdrawal.

In addition, funds may be delayed for a longer period if we have reason to believe the ACH transfer may be returned by the other financial institution. Under this circumstance, we will notify you of the delay in your ability to withdraw funds, and we will tell you when the funds will be available. They will generally be available no later than the seventh business day after the day of your deposit.

Account Fee Schedule

The following fees and charges may be assessed against your Account:

Automated Teller Machine (ATM) Transaction Fees

Dow Credit Union currently imposes no separate charges for the use of your Dow Credit Union ATM Card or Dow Credit Union automated teller machines. However, Dow Credit Union reserves the right to implement and/or change the amount of service fees at any time. We will mail or deliver a written notice to you at least 21 days before the effective date of any change in fee amounts.

*A research fee may be charged for information retrieval on your account and account balancing. A copy fee may be charged for account information requested, including but not limited to statement and receipt copies. Research and copy fees associated with subpoenas or other legal requests for account information will be assessed in accordance with the maximum allowed by law.