Except as specifically described, the following disclosures apply to all the accounts:


1. Rate Information


The Dividend Rate and Annual Percentage Yield on your accounts are set forth based on the account you opened. For all accounts except certificates, the Dividend Rate and Annual Percentage Yield may change at any time as determined by the credit union.


University Checking Accounts are tiered rate accounts. For these accounts, the specified Dividend Rate for a tier will apply only to the portion of the account balance that is within that tier. The range of annual percentage yield(s) (which vary depending on the balance in the account) are shown for each tier.


The Dividend Rates and Annual Percentage Yields for the account you opened are the rates as of the last dividend declaration date, which is the effective date shown above. For Certificate Accounts, the Dividend Rate and Annual Percentage Yield are fixed and will be in effect for the term of the account. For Certificate accounts, the Annual Percentage Yield is based on an assumption that dividends will remain on deposit until maturity. A withdrawal of dividends will reduce earnings.


2. Nature of Dividends


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


3. Compounding and Crediting


Dividends will be compounded and credited as set forth above. For dividend bearing accounts, the Dividend Period begins on the first calendar day of the period and ends on the last calendar day of the period.


4. Accrual of Dividends


Dividends will begin to accrue on noncash deposits (e.g., checks) on the business day you make the deposit to your account. If you close your account before accrued dividends are credited, accrued dividends will not be paid.


5. Balance Information


The minimum balance required to open each account and earn the stated Annual Percentage Yield is set forth above. If you do not maintain the minimum balance, you will not earn the stated Annual Percentage Yield. For all accounts, dividends are calculated using the Average Daily Balance method, which applies a daily periodic rate to the average daily balance for the dividend period. To get the average daily balance, we add up the ending balance in the account for each day in the period, then divide that amount by the number of days in the period.


6. Certificate Account Features


a. Account Limitations.

After your account is opened, you may not make additional de- posits to a Certificate account.


b. Maturity.

Your Certificate account will mature on the maturity date set forth on your Account Receipt or Renewal Notice.


c. Early Withdrawal Penalty.

We may impose a penalty if you withdraw any of the principal of your Certificate account before the maturity date.


i. Amount of Penalty.

The amount of the penalty depends on the term of the account. For certificates with terms of six months or less, the penalty is all dividends earned as of the date of the withdrawal. For certificates with terms greater than six months up to 18 months, the penalty is 90 days’ dividends. For certificates with terms greater than 18 months up to 30 months, the penalty is 180 days’ dividends. For certificates with terms greater than 30 months and up to 60 months, the penalty is 365 days’ dividends.


ii. How the Penalty Works.

The penalty is calculated on the amount of early withdrawal. It applies irrespective of whether the dividends have already been earned or not. If accrued dividends are insufficient to pay the penalty, it will be deducted from principal.


iii. Exceptions to Early Withdrawal Penalties.

At our option, we may pay the account before maturity without imposing an early withdrawal penalty under the following circumstances: when an account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction. Where the account is an Individual Retirement Account (IRA), and any portion is paid within seven (7) days after establishment or where the account is an IRA, and the owner attains age 59½ or becomes disabled and begins making periodic withdrawals.


d. Renewal Policy.

Certificate accounts are automatically renewable accounts. Automatically renewable accounts will renew for another term upon maturity. You have a grace period of ten days after maturity in which to withdraw funds in the account without being charged an early withdrawal penalty.


e. Nontransferable/Nonnegotiable.

Your account is nontransferable and nonnegotiable. The funds in your account may not be pledged to secure any obligation of an owner, except obligations with the Credit Union.