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Disclosures

  1. Certificates of Deposit
  2. Share (Savings), Checking, And Money Market Accounts
  3. Account Agreement

Account Agreement, page 4 of 6

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CHECKS AND WITHDRAWALS

1. Payment Authorization.  The provisions of this Agreement, which address checks drawn and paid against your Account, shall be applicable only to the extent that the Credit Union offers checking or similar Accounts. In this Account Agreement, the term "check" shall be used and given the same meaning as "share draft" unless the context of this Agree­ment clearly indicates otherwise. You authorize us to pay checks signed by you and charge the payments against the applicable Account. Only checks ordered through us, or other methods approved by us may be used to withdraw funds from your Account. You agree that it will be your responsibility to verify the accuracy of information appearing on any checks, deposit slips, or other forms, and you agree that we will not be liable for any printing errors on any such forms. All checks, withdrawal forms, deposit slips, and transfer instructions used in connection with any Account must be on forms that we provide or otherwise expressly approve in writing. You agree to complete checks using a non-gel, black or dark blue ink that will readily transfer during any imaging of the check. We will not be liable for any resulting losses, and you agree to hold us harmless, if you fail to follow the requirements in this paragraph. In the event that the applicable Account has sufficient funds on deposit to cover one or more, but not all of the checks or other withdrawal orders presented during any given business day, we may honor those items and allow those withdrawals in any order that we may choose in our sole discretion including withdrawal orders or checks payable to the Credit Union, and dishonor or refuse any item or withdrawal order for which there are insufficient funds available thereafter. In making distributions upon the death or disability of any party, you agree that we may rely upon the form of the Account at the time of any such death or disability.

2. Stale Items.  We are under no obligation to pay a check, which is presented for payment more than six (6) months from its date. In the event that a check drawn on your Account is payable, by its terms, within a stated period of time, we are under no obligation to pay that check if it is presented after the expiration of that time period.

3. Overdrafts and Overdraft Protection.  You agree to maintain funds in your Accounts at all times sufficient to pay any withdrawal order (whether oral, written, or otherwise) or item presented for payment against the applicable Account. We are under no obligation to pay any order or item (i) the amount of which exceeds the available balance in the Account upon which the order was made or the item was drawn, or (ii) that would exceed limitations imposed upon the applicable Account under our policies and procedures, or under applicable law, including Federal Reserve Board Regulation D.  In the event that we do pay any such item, we will not waive our right to dishonor any subsequent items presented. If we do pay an item, the amount of which exceeds the balance in the Account upon which it is drawn, or if any item deposited to your Account is subsequently returned and charged back to your Account creating an overdraft, you agree to pay us immediately the amount by which that Account is overdrawn together with any fees that we might assess. You also authorize us to deduct any overdraft from your next deposit (including a direct deposit of social security or other government benefits), to withhold or to transfer funds from any other Account to which you are party in amounts sufficient to cover any overdraft and overdraft fees, or to use any other collection remedy available to us by law.
 
In the event that you write a check or take any other action that would result in an Account becoming overdrawn, such check or action taken shall be deemed to be a request by you to us to transfer available funds from your Savings Account or other designated Account, or if applicable, to make an advance on your line of credit account with us, in increments that we deem sufficient to pay such check or otherwise remedy the overdraft, together with any service charge we may impose. We will use our best efforts to transfer funds to your Checking Account from your Savings Account or other Account in the manner you have specified. A fee may be charged for overdraft protection as set forth in the Fee Schedule. If sufficient funds are not available, then any such item presented will be returned to the payee due to insufficient funds and a charge will be made to your Account in such amounts as we may establish from time to time. Each party to any of your Accounts will be jointly and severally liable for overdrafts caused by any other party to such Account. In the event the Credit Union reasonably believes that your use of your Account or Accounts is abusive due to excessive checks drawn on non-sufficient funds, excessive activity, or otherwise, your Account may be closed.

4. Transaction/Transfer Limitations.  On Share Savings Accounts, during any month, you may make no more than six  (6) withdrawals or transfers to another Credit Union Account of yours or to a third party by means of a pre-authorized, automatic, or computer transfer or telephonic order or instruction and no more than three of these six such transfers may be made by check, draft, debit card, or a similar order payable to a third party.  There is no limit on the number of transactions you make in the following manner: (1) transfers to any loan account with us, (2) transfers to another Account of yours with us or withdrawals when such transfer or withdrawal is initiated in person, by mail, or at an ATM. If you exceed the transfer limitations set forth above, your Account may be subject to closure by the Credit Union. On Money Market Draft  Accounts, you may make no more than six (6) withdrawals/transfers monthly (including, but not limited to, with­drawals made by Automated Clearing House (ACH), telephone, Internet or wire). Overdraft protection will not be offered or allowed on your Money Market Draft Account. If transfer request would exceed the transfer limitations set forth above in any statement period, we may refuse or reverse the transfer, and suspend or close your Account, and we may impose a charge. If you continue to exceed any transfer limits on your Account after the Credit Union has notified you of such transfer violation, your Account will be subject to closure. Funds on deposit will be transferred to your regular Share Savings  Account.

5. Signatures.  You authorize us to recognize any of the signatures set forth on the Application in the payment of funds or the transaction of any business for your Ac­counts.  You authorize us to pay a check presented for payment even though the signature or signatures thereon do not correspond exactly with the signatures on the Application. We are not obligated to honor a check unless the signature or signatures do correspond ex­actly with the signatures on the Application. We may recognize facsimile signatures, signatures imprinted by mechanical devices, or any other authentication method acceptable to us, including orders to pay that are received electronically or telephonically. You agree that we may act upon and rely upon documentation, correspondence, or other instructions with respect to your Accounts that we receive by way of electronic or facsimile transmission, including Account Agreements, requests to modify Accounts, loan agreements, and any other order with respect to your Accounts, and you agree to such verification procedures as we may implement from time to time. 

6. Postdated, Incomplete and Conditional Items. You agree to hold us harm­less from any and all loss and liability which you may incur due to our inadvertent payment of incomplete or postdated items, items endorsed "without recourse", or conditional items. You agree that we will not have any duty to discover or comply with postdated, incomplete or conditional items. You agree that we may disregard any information on any check or draft other than the amount of the item, the identity of the drawee bank, any magnetically encoded information, and the signature of the drawer, regardless of whether that information is consistent with any other information on the item. You agree that we may decline to accept, process, or pay any item or order that, in our estimation, is ambiguous or otherwise unclear in its terms. You also agree that, at our option, we may use our best efforts to resolve any such ambiguity and you agree to release and hold us harmless from any and all loss and liability that we may incur or that may arise in connection with our attempts to resolve any such ambiguity.

7. Wire Transfers, Automated Clearing House (ACH), and Other Payment Order Transactions.
       
(a)   Governing Regulations.  If you send or receive a wire transfer, Fedwire may be used. Federal Reserve Board Regulation J is the law that covers transactions made over Fedwire. If you are a party to an Automated Clearing House (ACH) entry, you acknowledge and agree that any such entry will be governed by the National Automated Clearing House Association (NACHA) Operating Rules, the Rules of any local ACH, and the Rules of any other system through which the entry is made. Other payment orders you make may be governed by Article 4A of the Texas Business & Commerce Code.

(b)   Notification.  Under NACHA Rules we are not required to give you next day notice of the receipt of an ACH entry and we will not do so, nor will we give you next-day notice of the receipt of a wire transfer. However, we will notify you of these transfers in your Account Statement.

(c)   Provisional and Final Payment.  If we credit your Account for an ACH entry or a wire transfer, the credit is provisional until we receive final settlement for the payment order.  If we do not receive final settlement, or if we credit your Account by mistake, we are entitled to a refund of the amount credited and you agree that, at our option, we may reverse the credit or require that you reimburse us by way of direct payment.

(d)   Identifying Account Numbers.  You agree that we can rely upon any identifying Account number given to us in connection with any ACH, wire transfer, or other payment order, even if the number identifies a person different than the named beneficiary or a financial institution different from the named financial institution. You agree that neither we nor any other institution involved in the transaction has a duty to determine whether the number given matches the intended beneficiary or the named financial institution.

(e)   Liability; Interest Payable. We may be responsible for your direct expenses if we fail to exercise ordinary care in carrying out your instructions in connection with a wire transfer transaction. In no event, however, will we be liable for any special, indirect, exemplary, or consequential damages (including lost profits) of any kind. We are not required to pay interest on any amount we may owe to you due to an unauthorized wire transfer arising out of our error unless you exercise ordinary care to discover the unauthorized transfer and promptly advise us of the relevant facts within the time period set forth below in the Account Statements paragraph. Any rate of interest that we might be obligated to pay to you as a matter of law for a delay or incorrect transfer arising out of our error will be the lower of the federal funds rate at the time of the correction or the dividend or interest rate that we pay on the Account to or from which the funds transfer should have occurred.

(f)    Security Procedures.  You agree that we may verify the authenticity of payment orders using our security procedures in place at the time of any such order, which may include a combination of signature verification, call back procedures, the use of identifying words or numbers, and identification via employee ID badge, valid driver’s license, or other photo identification document. If you do not agree to our security procedures, you must notify us in writing. In such event, we shall have no obligation to accept any payment order from you or other authorized parties on the Account until you and the Credit Union agree, in writing, on an alternate security procedure.

(g)   Cutoff Times. Unless other times are posted for various types of fund transfers, fund transfers, payment orders, and communications canceling or amending payment orders received after 2:00 p.m. on each weekday we are open that is not a holiday may be treated as having been received on the next banking day and processed accordingly.

(h)   Force Majeure. We are not liable for a failure to execute a payment order according to your instructions if an interruption in communication facilities or some other circumstance beyond our control such as fire or flood prevents the transfer, despite reasonable precautions we have taken.

(i)    General.  You agree that only our forms, methods, and procedures may be utilized. You also agree that in the event of an error, we may correct any such error without prior approval by you. Any authorization you make to initiate paperless debit or credit entries will remain in effect until we receive written notice from you that your authorization has been revoked in a manner and in time to provide us with a reasonable opportunity to act on it. 

8. Stop Payment.  You may stop payment of items drawn on your Accounts. You agree to hold us harmless from any claim, loss, damage or expense incurred, including attorney's fees, by virtue of our refusing payment of any item on which you have stopped payment, as well as for payment of any item after your stop payment order has expired. A stop payment order will be effective for six months and may be renewed upon a request made in writing to us.  A stop payment order, a renewal of any such order, or a revocation of any such order shall not be effective unless it is delivered to us in writing during regular business hours and we have had a reasonable opportunity to act on any such order, renewal or revocation. In addition, we will not be liable for the payment of an item over a stop payment order if the order is received after 10:00 a.m. on the next banking day after the banking day on which we received the item. Due to computer systems limitations, we can intercept an item subject to a stop payment order only if the precise amount, date, check number, name of payee and any other information that we may reasonably require. If that information is not pro­vided, we will not be responsible if we are unable to stop payment. If the order is made orally, we have no obligation to honor it. If we do honor an oral stop payment order, it will only be binding for twenty-four (24) hours after which it must be renewed in writing. Any stop payment order, renewal or revocation will incur a charge which is set forth on the Fee Schedule. You agree that we may honor a stop payment order, revocation or renewal if made by the person who signed the check to be stopped or any other person who has signed the Application or is otherwise authorized to transact business relating to the Ac­count. You agree that we will not be liable for any inadvertent payment of any item, notwith­standing a stop payment order, if we have used ordinary care and followed our usual prac­tices in handling such an order. You may not stop payment of cashier's checks, or Credit Union checks issued by us at your request. In the event that you request that we stop payment of any cashier's check or Credit Union check, we shall be under no obligation to do so. However, in the event that, at our option, we agree to stop payment pursuant to your request, we may require that you provide us with an indemnity agreement and bond sup­ported by such surety or sureties as we may deem sufficient, to indemnify us against any possible loss in connection with the presentment or payment of the original item. You will also be required to pay a fee in connection with any request for a stop payment order, which fee is set out on the Fee Schedule which accompanies this Agreement. If an item is inadvertently paid over a valid stop payment order, due to our failure to exercise ordinary care, we will be liable to you for any loss you suffer as a result. You agree that it will be your responsibility to establish any such loss. You agree that we will never be liable for more than your actual loss and that we will not be liable for any consequential damages. If we do recredit your Account after paying an item over a valid stop payment order, you will take whatever action we deem necessary to transfer to us all of your rights against the payee or holder of the item and to assist us if we take legal action against the payee or any other person.
                In the event that you instruct us to stop payment of certain pre-authorized debits you acknowledge and agree that, at our option, we may stop payment of all pre-authorized debits from your Account if we deem that action necessary to ensure that your stop payment order will be effective. You also acknowledge and agree that we will not be liable for our failure to stop payment of future pre-authorized debits, notwithstanding your stop payment order, if our failure is caused in whole or in part by the actions of the payee. You may not stop payment of transactions initiated through the use of a check card or ATM Card used at an ATM or point of sale. For additional information concerning your right to stop payment of pre-authorized elec­tronic fund transfers, please refer to your Electronic Fund Transfers Disclosures.

9. DATCU Credit Union Liability.  Except for losses caused by our failure to exercise ordinary care or our failure to act in good faith, you agree that we will not be liable for any action or inaction regarding the payment or nonpayment of items, collection of items, other withdrawals, or advances of credit in satisfaction of overdrafts. Subject to applicable law, you agree that we will never be liable for consequential damages arising out of or related to any of our obligations under this Agreement. The term "ordinary care” shall be construed in keeping with the definition of that term in Article 3-103 (a) (7) of the Uniform Commercial Code as amended in 1990. We will be deemed to have exercised ordinary care if we have observed reason­able commercial standards prevailing for credit unions in the area where you are located.

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