AGREEMENT
The following information contains basic facts about your share
certificate account. This disclosure is in addition to those
on the certificate itself. By opening and maintaining a share
certificate account with Cornerstone Community FCU, you have
agreed to the terms for this account set forth here and on the
certificate and any amendments thereto. If you have any questions
regarding the disclosure or the share certificate, please ask
a member service representative.
NATURE OF DIVIDENDS
Dividends are paid from current income and accumulated earnings,
after providing for the required transfers. For share certificates,
the dividend rate and annual percentage yield are fixed and
will be in effect for the term of the account. The annual percentage
yield is based on the assumption that dividends earned on the
certificate will remain on deposit in the certificate account
until maturity. A withdrawal of dividends will reduce earnings
and the annual percentage yield.
DIVIDEND RATE AND ANNUAL PERCENTAGE YIELD
As used in this disclosure, dividend rate means the dividends
paid (or expected to be paid) on an account, without giving
effect to the compounding of previously earned dividends, shown
as an annual figure and expressed as a percentage of the account
balance; and annual percentage yield or APY means a percentage
rate reflecting the total amount of dividends expected to be
earned in a year on an account, based on the dividend rate and
the frequency of compounding accrued dividends.
COMPOUNDING AND CREDITING
Dividends for all share certificate accounts are credited to
you every month. The dividends may be reinvested into the share
certificate (compounded), transferred to a share account or
mailed to you. The dividend period is monthly and paid on the
last day of each month.
MINIMUM BALANCE REQUIREMENTS
The minimum balance required to open a share certificate is
$500. Dividends are calculated on the daily balance method of
which applies the daily periodic rate to the principal balance
in the account each day.
Share Certificate Accounts are Tiered Rate Accounts with varying
terms.
If your account balance is $4,999.99 or below, the first dividend
rate and annual percentage yield listed for this account and
term in the Certificate Rate Schedule
will apply.
If your account balance is $5,000.00 to $24,999.99, the second
dividend rate and annual percentage yield listed for this account
and term in the Certificate Rate Schedule will apply.
If your account balance is $25,000.00 to $49,999.99, the third
dividend rate and annual percentage yield listed for this account
and term in the Certificate Rate Schedule will apply.
If your account balance is $50,000.00 to $99,999.99, the fourth
dividend rate and annual percentage yield listed for this account
and term in the Certificate Rate Schedule will apply.
If your account balance is $100,000.00 or over, the fifth or
Jumbo dividend rate and annual percentage yield listed for this
account and term in the Certificate Rate Schedule will apply.
Once a particular balance range is met, the dividend rate and
annual percentage yield will apply to the full balance of your
account.
ACCRUAL OF DIVIDENDS
Dividends will begin to accrue on the business day you purchase
your share certificate whether the purchase was by cash or check.
EARLY WITHDRAWAL PENALTIES
You may withdraw all or some of the principal balance of your
share certificate prior to maturity. However a substantial penalty
is imposed if certificate funds other than dividends are withdrawn
before the maturity date. The penalty is forfeiture of earned
dividends. The principal amount upon which earned dividends
are forfeited is the amount withdrawn unless the amount withdrawn
reduces the balance below $500. In that event, the principal
amount upon which earned dividends are forfeited is the entire
amount of the certificate. The following penalties are currently
in effect:
If the maturity of the certificate is one year or less, the
forfeiture of dividends is equal to the smaller of the following
two amounts: dividends since the date of issuance or renewal,
or 90 days dividends.
If maturity of the certificate is more than one year, the forfeiture
of dividends is equal to the smaller of the following two amounts:
dividends since the date of issuance or renewal, or 180 days
dividends.
The penalty will be charged at the time of withdrawal and may
be taken from the principal balance of your share certificate.
Any dividends in your share certificate at maturity will be
considered part of the principal of the certificate upon any
renewal and thereafter become subject to the credit union's
rules concerning early withdrawal.
EXCEPTION TO EARLY WITHDRAWAL PENALTIES
At our option, we may pay the certificate before maturity without
imposing an early withdrawal penalty if the single account owner
dies or is determined legally incompetent by a court or other
body of competent jurisdiction. If the certificate is in two
or more names, and one share account owner dies or becomes mentally
incompetent, the certificate will remain in effect until its
scheduled maturity under the remaining joint owner's names.
TRANSACTION LIMITATIONS
Once your share certificate is opened, you may not make additional
deposits to it, however, you may open a separate certificate
at the then effective dividend rate.
RENEWAL POLICY
You may automatically renew the share certificate, transfer
the funds to your credit union account or withdraw the funds.
The credit union will give you a written notice of the maturity
of the certificate at least 30 days prior to the maturity date.
The notice will inform the owner of the terms under which the
credit union proposes to renew the certificate or otherwise
make funds available to the owner.
If you do not respond prior to the maturity of your certificate,
the certificate will automatically renew at the current dividend
rate. There is a five day grace period following the certificate's
maturity. This means you will not be assessed an early withdrawal
penalty if you withdraw funds within five days of the certificate's
maturity date.
Every notice of maturity will state the dividend rate which
will apply to the share certificate upon renewal or, if the
renewal rate has not then been determined, will state the date
that the renewal rate will be set and include a telephone number
which you can call to learn what the dividend rate and APY applicable
to the certificate at renewal time.
NONTRANSFERABLE/NONNEGOTIABLE
Your account is nontransferable and nonnegotiable. The funds
in your share certificate may not be pledged to secure any obligation
of the owner, except obligations with the credit union.
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