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Disclosures

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

Account Agreement, page 5 of 6

Pages 1 2 3 4 5 6

DEPOSIT OF ITEMS

1. Handlinq of Items.  We act only as a collecting agent for any items deposited. Any deposit that we accept shall be provisional and will be subject to subsequent payment verification. We are not responsible for any deposit or other transaction initiated by mail until the item is actually received. We will not be responsible for any deposit or other transaction made through the use of our night depository or any other unattended facility until the item or items are actually removed from the depository or facility by our personnel. We will not be responsible for any deposit or other transaction during the course of delivery to us by any courier or other third party until the item or items are actually received by our personnel. We have the right to endorse all checks payable to you for deposit into your Account. We will not be liable for the negligence of any correspondent bank or institution nor for any loss incurred in transit when items are forwarded to corre­spondents. We will not be liable for any delay as a result of any interruption of communica­tion facilities or any other circumstances beyond our control. You agree to bear the risk of any change in the exchange rate with respect to any items which may be payable in foreign currency. You agree that we may charge back any item before payment without notice, whether the item has been returned or not. You agree that, if a check that has been deposited to your Account or cashed by you at the Credit Union is subsequently returned based upon a breach or alleged breach of any transfer warranty, presentment warranty, or otherwise, we may charge back the amount of any such item to your Account at any time without notice. You agree that we may resubmit an item that has been returned to us for payment, and you waive notice that an item has been dishonored or charged back against your Account. You also agree that, if we are charged a fee by any other institu­tion in connection with any of your Accounts, that fee expense may be charged to your Account.

2. Endorsement Standards.  The area from the trailing edge of a check to 1.5 inches from the trailing edge of a check is reserved for the payee's endorsement. The trailing edge of a check is defined as the left side of the check looking at it from the front.  You and all other endorsers must make your endorsement within this prescribed area.  If any endorsement or other writing that you or any other endorser makes causes any error or delay in the processing of the item, you agree that you will be liable for any loss that we incur as a result of that delay or error, and you agree to hold us harmless from any such loss. We are not required to recognize endorsement restrictions limiting payment to a particular person or prohibiting further transfer or negotiation of the instrument and we will not do so.

3. Right to Refuse Deposit.  If you request that we accept a check for a deposit that has already been deposited at a financial institution but returned, we are under no obligation to accept that check for deposit. If you request that we accept a Substitute Check or Remotely Created Check for deposit, we are under no obligation to accept such Substitute Check or Remotely Created Check.  If we do, however, you agree to hold us harm­less from any loss or liability, including consequential damages, attorney's fees, and ex­penses, which may arise because of our acceptance of the item.  DATCU will not accept any Substitute Check or Remotely Created Check for deposit that was not created by a Bank or other acceptable financial institution.  In any event, in our discre­tion, we may refuse any deposit, limit the amount which may be deposited, accept all or any part of a deposit for collection only, return all or any part of any deposit, or close the Ac­count subject to applicable regulations.

GENERAL PROVISIONS

1. Taxpayer Identification Number and Backup Withholding. The Internal Revenue Service (IRS) requires most recipients of dividend, interest, or other payments to give taxpayer identification numbers to credit unions and other payers who must report the payments to the IRS. The IRS uses the numbers for identification purposes. Credit unions and other payers must be given the numbers regardless of whether recipients are required to file tax returns. Credit unions and other payers must generally withhold a percentage of taxable interest, dividend, and certain other payments to a payee who does not furnish a taxpayer identification number.  Certain penalties may also apply. In the event that (a) you have been notified by the IRS that you are subject to backup withholding due to payee underreporting and you have not received a notice from the IRS that the backup withholding has been terminated or (b) you provide us with an incorrect taxpayer identification number, the Credit Union is required to withhold payment, in part, of dividends or interest owing to you in amounts determined by the IRS and to pay interest or dividends withheld to the IRS.

2. Inactive Accounts.  We are required by law to preserve an Account that is inactive. An Account is inactive if for more than one year there has not been a debit or credit to the Account because of an act by you or your agent (other than the Credit Union) and you have not communicated with us. An Account is presumed abandoned if (a) the Account has been inactive for at least five years from the date of your last transaction on the Account or your last correspondence with us, and (b) we are unable to locate you. If an Account is presumed abandoned, we are required to report the abandonment and to pay the funds in the Account to the State.

3. Account Statements.  You are responsible for promptly examining each Account statement.  Any objection that you may have respecting any unauthorized withdrawal, any payment order (including a wire transfer), or any other item or deposit shown on or missing from a statement will be waived unless made in writing to us, and received on or before the 60th day following the date the statement is mailed or otherwise delivered to you, subject to applicable law. You agree that we will not be liable for any unauthorized withdrawal, any payment order, any forged, unauthorized, or altered item drawn on or deposited to your Account, any item with missing signatures or endorsements, any missing or diverted deposit, or any other error or discrepancy if you fail to notify us within that 60-day period, nor will we be liable for any forged or altered item if the forgery or alteration is not readily ascertainable upon inspection. You agree that no legal action may or will be instituted by you against us seeking the recovery of any alleged loss as a result of the payment of a forged, unauthorized, or altered item or as a result of any missing or diverted deposit, or due to any other error or discrepancy, unless you have provided us with notice within the period prescribed above and any such legal action shall have been instituted within two years after the date that the statement containing any such error was mailed or otherwise made available to you. Please refer to your Electronic Fund Transfers Agreement and Disclosures to determine your notification obligations in the event of unauthorized electronic fund transfers or other errors in connection with such transfers.

Unless we adopt alternative procedures from time to time, checks drawn on your Account will not be returned to you and copies of checks will be made available to you upon your request, subject to any fee disclosed on the Fee Schedule. You agree that your duty to examine statements promptly and your obligation to notify us in the event of any error is not waived or diminished in any respect by our retention of checks drawn on your Account.
 
        You will receive an Account statement monthly for your Checking Accounts. You will receive an Account statement at least quarterly for your Savings Accounts. It is your responsibility to ensure that your statements are received, and you agree that we will not be responsible for the loss or theft of your statements. You agree to notify us immediately if you fail to receive a statement for your Checking Accounts monthly, or a statement for your Savings Accounts at least quarterly. It is important that you make note of the time that you regularly receive your statement.  You agree to notify us immediately and in any event within 14 days of that time, if you fail to receive your statement.

You acknowledge that we employ an automated collection procedure in order to more efficiently handle the high volume of items we process, and for that reason, our procedures generally do not include sight-review of items. You acknowledge and agree that reasonable commercial standards do not require us to sight-review every check presented and that any failure to sight-review does not constitute a lack of ordinary care in the payment of any item.

You may choose to receive your statements online via email through our Home Banking.  If email statements are selected, no paper statement will be issued.

4. Legal Process.  You agree that we may debit your Account for charges and costs in connection with the production of statements, items or other documents in connec­tion with subpoenas, court orders, levies, garnishments or other instruments of legal pro­cess, including attorney's fees, to the extent not otherwise prohibited by law. You agree that any levy, attachment, or garnishment against your Account will be subject to our contractual lien set forth below, and you authorize us to exercise that contractual lien whether or not any outstanding obligation is in default, subject to applicable law.

5. Contractual Lien.  Unless otherwise prohibited by applicable law or our policies and procedures, you may pledge all or any part of your shares and deposits as security for any loan. In addition to any lien we have as a matter of law, you grant us a contractual lien on any and all funds deposited or maintained in any Account in which you have an interest to the extent of any loans made to you and any other obligation of yours which you owe to us, which lien secures repayment of any such loan or obligation to the extent not prohibited under the Federal Truth-in-Lending Act. You are not giving a security interest in any shares or deposits in an IRA or any other Account, which if pledged, would result in the loss of special tax treatment under the Internal Revenue Code. You agree that, if any such Account is a joint Account, the entire amount in such Account shall be subject to our lien and shall secure the indebtedness of each Joint Owner owing to us. You agree that we may exercise our lien and apply the entire amount in any such Account against the indebt­edness of any Joint Owner owing to us notwithstanding the interest of any other Joint Owner in the Account, and without notice. You agree to hold us harmless for expenses and costs, including attorney's fees, which we may incur in enforcing our right to exercise our lien against the indebtedness of any one or more Joint Owners, and you agree that we will not be liable for dishonoring checks or other items where the exercise of our lien or any right of offset which may exist results in there being insufficient funds in the Account to honor such items. If we elect not to enforce our lien at any time, we do not waive our right to enforce that lien on subsequent occasions. The lien secures all direct and indirect indebtedness which you may owe to us whether as a borrower, co-maker, guarantor or otherwise. You agree that, with regard to any indebtedness owing to us secured by your principal residence, our lien shall not be construed so as to diminish or forfeit any security interest in or indebtedness secured by such residence, nor shall our lien be construed so as to permit the modification of any claim we may have under 11 U.S.C. §1322(b)(2), and to the extent that this lien is so construed, it is hereby waived and shall be void.

6. Dispute Resolution.  If we suspect that fraudulent misconduct is or has taken place with respect to any Account, or if we are notified that a party to an Account has died or is incompetent to manage his or her affairs, or if we have been notified that a dispute exists between or among parties to the Account or third parties with regard to their respec­tive interests in the Account, or if there are competing claims to funds on deposit, or if we are in doubt concerning the respective interests of any parties to an Account or persons claiming an interest in the Account, we may restrict withdrawals from the Account until we are satisfied that any obligation we may have at law and under this Agreement has been met or until any such dispute, doubt, suspected fraudulent misconduct or probate matter has been resolved by a court of competent juris­diction or by written settlement agreement entered into by all parties to the Account and any third party making claim to funds in any such Account. You agree that we may recover any attorney's fees or costs expended in connection with the foregoing, which fees will be payable out of the Account made the subject of any such doubt, dispute, misconduct or probate proceeding or out of any other Account in which you have an interest. You agree, further, that we may impose withdrawal limitations on any of your Accounts at any time, including your ability to access your Accounts electronically or otherwise, if you are delinquent under any obligation you owe to us.

7. Power of Attorney.  You agree that we shall be under no obligation to recog­nize and honor any Power Of Attorney, which authorizes someone to deal with your Account on your behalf. Transactions involving custodial Accounts, such as withdrawals, deposits, and investment changes, may be made by an agent duly authorized pursuant to a durable power of attorney legally enforceable under applicable law if such power of attorney clearly and specifically authorizes such transactions, except that we will not accept the use of a power of attorney to effect changes to any beneficiary designations.

8. Withdrawal of Services.  In the event that any Credit Union member causes a loss to the Credit Union, or makes known his or her intention to cause a loss to the Credit Union, whether by way of loan default, Account overdraft, discharge in bankruptcy or other­wise, or in the event that any Credit Union member has been abusive in the conduct of his or her affairs with the Credit Union, it is the policy of the Credit Union to withdraw member services otherwise extended to that member including, but not limited to, the right to maintain Accounts at the Credit Union. To the extent allowed by applicable law, regulations, and the Credit Union's bylaws, your Credit Union membership may be terminated if you cause a loss to the Credit Union.

9. Closing the Account.  Any Owner of an Account may close the Account at any time.  Your right to close an Account is subject to any statutory or contractual lien existing in the Credit Union's favor and any legal process levied against any such Account. The Credit Union may close an Account at any time and disburse funds on deposit in any such Account to the Owners of the Account or in satisfaction of any obligation owing to us, in any manner it deems appropriate, if (a) any of the events set forth in the preceding paragraphs 6 or 8 should arise, (b) the Credit Union believes that it may suffer a loss if the Account is not closed or we believe that the volume of Account activity exceeds that which we can reasonably and safely process, (c) we determine that any member or Joint Owner of the Account or any party claiming an interest in the Account has been abusive in the use of the Account or in the conduct of his or her affairs with the Credit Union, or (d) there has been a change in Account owner­ship or a change with regard to the persons authorized to sign on the Account.

10. Attorney's Fees.   In addition to any other rights we may have at law or under this Agreement to recover fees and costs, we shall be entitled to recover reasonable attorney’s fees and costs expended in connection with the enforcement of this Agreement and the defense of any rights we may have under this Agreement, and you authorize the Credit Union to deduct any such fees and costs from your Account without further notice to you.

11. Amendment.  You agree that we may add to, change, or delete any of the terms of this Agreement, the Truth-In-Savings Rate and Fee Schedules, and any notice, agreement or policy made a part of this Agreement, from time to time in our sole discretion, subject to applicable law.

12. Severability.  If any provision of this Agreement shall be declared invalid, unenforceable or illegal, that part will not affect the validity, enforceability or legality of any other provision.

13. Reopened Accounts.  Should your Account be closed at any time or times by withdrawal of the balance of the Account, and later reopened by you, such reopened Ac­count shall be subject to all of the terms and conditions of this Agreement, whether or not any new signature card or other Account agreement is signed.

14. Record Retention.  You understand and agree that the Credit Union intends to scan any or all document(s) relating  to your Account(s) and scanned document(s) may be stored electronically.  You also understand and agree that we may not retain the original document(s), and that an electronically stored image of the document(s) will have the same effect as and will serve as an original.

15. Governing Law.  This Agreement shall be governed by applicable state and federal credit union laws and regulations, the Credit Union's Bylaws, and to the extent not preempted by federal law, the laws of the State of Texas.  Venue is proper in the county where the Credit Union's principal office is situated.

16. Credit Reports.  You authorize us to check your credit and employment history, and to request and use credit reports when considering any Application to open an Account or any Application for related financial services. We may also report our experience with you to credit bureaus. If you believe that information we have reported or may report to a credit bureau is inaccurate or incomplete, please notify us in writing at DATCU Credit Union, 225 W. Mulberry, P.O. Box 827, Denton, TX 76202. Include your name, address, contact telephone number and Account number and identify the information you believe is incorrect. If your notification relates to an incident of identity theft, we will require a copy of your identity theft report filed with law enforcement authorities.

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