Account Agreement and Rules

In consideration for opening a depository account of any type at the Credit Union, you, as an accountholder, agree to the terms and conditions in this entire brochure including Funds Availability, Truth-In-Savings and Account Agreement Rules, all of which shall govern the use of your account. The following applies to accounts at the Credit Union and the depositor agrees as follows, and the Credit Union accepts business on such conditions only.

General Rules

In this instrument except as otherwise indicated, the singular includes the plural.
All items deposited are received by the Credit Union for deposit or collection and the Credit Union acts only as depositor’s collecting agent and assumes no responsibility beyond the exercise of due care.
Items drawn on this Credit Union are received conditionally and if not good at the close of business day on which deposited or if payment is stopped the item may be charged back to the depositor.
The Credit Union accepts no responsibility for payment of checks or drafts which are presented the same day deposits are made unless there is already a sufficient balance to the depositor’s credit in addition to such deposits.
Items received for collection or credit and not drawn on this Credit Union are taken subject to final payment and at depositor’s risk; should such items be lost, or should returns not be received within a reasonable time, they may be charged back to the depositor’s account.
Items may be sent directly to the financial institution upon which drawn, or through collecting agents selected by the Credit Union with due care who may collect and remit, and collecting agents shall have the right to send items directly to the financial institution on which drawn or at which payable.
This Credit Union and/or collecting agents may accept either cash, drafts or credits so received.
Each collecting agent is the agent of depositor, but no agent shall be liable for any loss growing out of neglect, default or failure of any other agent.
This contract shall be held and construed to be a North Carolina contract, and the rights, obligations and liabilities of this Credit Union shall be determined by the laws of North Carolina.
“Depositor” includes those who forward items for collection or other handling, as well as one who makes a deposit in the ordinary sense of the word.
Depositor covenants that depositor has authority to agree as aforesaid on depositor’s own behalf, and on behalf of holder or owner of said items; authority is given this Credit Union to enter into contract with correspondent banks and others in connection with the collection or other handling of any item hereunder.
Delivery to the Credit Union of items for deposit, collection, credit or payment will constitute acceptance of these conditions by the depositor. The rights or authority of the Credit Union under this agreement shall not be changed or terminated by the depositor except by written notice to said Credit Union which shall not affect transactions occurring prior to the notice.
Service and maintenance charges, including charges for handling checks drawn against insufficient funds, made in accordance with the rules of the Credit Union in effect at the time of such charge, may be charged to this account without notice. The Credit Union shall not be liable for dishonoring checks or drafts because of insufficient funds resulting from such charges. A reasonable service charge may be made against this account if there are no deposits or withdrawals made by depositor within a six month period.
The Credit Union may refuse any deposits and it may require depositor to withdraw the account balance upon notice to depositor at the last address shown on the records of the Credit Union.
If the account is a share account, the depositor may withdraw any part or all of the balance on deposit provided, however, that the Credit Union, at its discretion, may require sixty days notice in writing before making any such payment.
No assignment or transfer of the funds in an account will be recognized by the Credit Union unless the consent of the Credit Union is first obtained and such consent is entered on the Credit Union’s records.
The Credit Union is specifically given the right to apply any deposit in said Credit Union account against any past due indebtedness due by the depositor to said Credit Union. Not applicable to IRAs or SEPs.
If a check drawn is payable on a future date and the accountholder does not notify the Credit Union immediately that this check is not to be honored before the payment date and the Credit Union prematurely pays the check in the regular course of business, the accountholder agrees the Credit Union shall have no liability to the accountholder for such payment.
The Credit Union is under no obligation to pay a check or draft drawn on an account presented more than six months after the date it is written. If, however, the check is paid against an account, the Credit Union takes no responsibility for such payment if no current Stop Payment order issued by the accountholder was in effect.

Stopping Payment on Checks or Preauthorized Transactions
The Credit Union will not be required to observe any stop payment order until such order is received in writing. Previously authorized debits to an account from an institution, agency or company other than the Credit Union must be revoked in writing to the originating institution or agency or company. Upon notification of this revocation by the accountholder, the Credit Union will stop and return unpaid all future debits from the institution, agency or company regardless of the amount. Preauthorized periodic transfers or payments from or to the Credit Union accounts may be stopped if written order is received at least three business days in advance of a scheduled transfer. Stop orders remain in effect for six months.

Statements
Statements showing all deposits, withdrawals, dividends earned, balance on deposit, etc. may be mailed at periodic intervals. Statements will be mailed to the depositor by regular first-class mail at the last address shown on the records of the Credit Union. Unless depositor notifies the Credit Union in writing within thirty days of the delivery or mailing of any statement of account and/or canceled vouchers that the signature upon any returned voucher (check, drafts, etc.) was forged, the statement of account shall be considered correct for all purposes and the Credit Union shall not be liable for payment made and charged to the depositor’s account.

Individual Retirement Accounts
The Local Government Federal Credit Union was officially affirmed to offer IRAs on July 1, 1983 by a Custodian Agreement known as form 5305-A (Individual Retirement Custodial Account). LGFCU was affirmed for SEP-IRAs on April 1, 1994. LGFCU began offering the Roth IRA and Coverdell Education Savings Account, January 1, 1998. this just says when were allowed to offer these accounts, but nothing on how they are governed

Joint Accounts
All joint accounts are governed by North Carolina General Statute 54-109.58. All funds in the account, regardless of who deposits the funds, shall be held by the depositors as co-owners with the right of survivorship. The Credit Union may pay the funds in the account to, or on the order of, either or any of the depositors named on the account. Upon the death of one joint owner, the money remaining in the account will belong to the surviving joint owners and will not be inherited by the heirs of the deceased joint owner or be controlled by the deceased joint owner’s will.

Trustee and Revocable Living Trust Accounts
Trustee accounts are governed under the provisions of North Carolina General Statute 54-109.57. During the depositor’s lifetime, depositor is sole owner of the funds and may withdraw funds in the account. By written notice to the Credit Union, depositor may change the beneficiary at any time. Upon depositor’s death, funds remaining in the account will belong to beneficiary and funds will not be inherited by depositor’s heirs or controlled by deceased depositor’s will. The Credit Union will accept account ownership titled to the Revocable Living Trust of a member. However, the Credit Union will accept no responsibility for determining whether a grantor or trustee is qualified to act or has been duly appointed to act in that capacity, nor whether any transaction involving the account is in accordance with or authorized by applicable law or the trust agreement. The Credit Union acts only as a depository for the funds.

Personal Agency Accounts
Personal agency accounts are governed under North Carolina General Statute 54-109.63. Depositor understands that the appointed agent named on the account may sign checks/withdrawals on the account and make deposits to the account. Upon the depositor’s death, funds remaining in the account will be controlled by the deceased depositor’s will. If the owner of the account becomes incapacitated or mentally incompetent, the agent will have the authority to continue acting on behalf of the owner.

Share Term Certificate
Should an early withdrawal be made of these funds, a penalty will be assessed on the interest earned. No partial withdrawals may be made.

Payable Upon Death Account
Effective October 1, 2001, the Credit Union will offer a new ownership type. (is this first sentence still needed?) A Payable Upon Death account is a revocable trust agreement with one or more designated beneficiaries. The account owner or owners retain control of the funds. LGFCU reports dividends/interest earned under the primary owner’s name and social security number. Upon the death of all owners, LGFCU will release the funds to the beneficiary(s).

Uniform Transfers to Minor Act Accounts
The terms of these accounts hereby are deemed to include the provisions of said Statute of this State as it is now or hereafter may be amended. This transfer of money to the minor named, which transfer shall be deemed to include all earnings thereon and any future additions thereto is irrevocable and is made in accordance with and to include all the provisions of the said Statute of this State as it is now or hereafter may be amended.

Closing an Account
The Credit Union may close an account if the accountholder breaches any terms of this agreement or the Credit Union at its sole discretion determines continual maintenance of the account exposes the Credit Union to risk of financial loss. An account may be closed without prior notification to the accountholder.

Federal Wire Transfers and ACH Transactions
The following is provided as a requirement of Article 4A of the Uniform Commercial Code. If a member sends or receives a wire transfer, the Federal Reserve Bank’s FEDWIRE transfer system may be used. Regulation J is the law governing those transfers. If a member gives the Credit Union a payment order which identifies the beneficiary (recipient of the funds) by both name and identifying account number, payment may be made by the beneficiary’s bank on the basis of the identifying bank account number, even if the number identifies a person different than the named beneficiary. If a member gives the Credit Union a payment order which identifies and intermediary or beneficiary’s bank by both name and an identifying number, a receiving bank may rely on the number as the proper identification even if it identifies a different bank than the named bank. Automated Clearing House (ACH) items are paperless transfers between financial institutions such as direct deposit of a payroll check or benefit payment. The Credit Union may give a member credit for ACH payments it receives for the member before it receives final settlement of the funds transfer from the originating financial institution. The member is hereby notified and agrees that if the Credit Union does not receive such final settlement, it is entitled to a refund from the member of the amount credited to the member in connection with that ACH entry. ACH transactions are governed by the operating rules of the National Automated Clearing House Association. In accordance with these rules, the Credit Union will not provide any members with next day notice of receipt of ACH credit transfers to an account. Notices of receipt of ACH items are included in the periodic account statements the Credit Union provides.

Electronic Funds Transfers
A member may use a LGFCU MemberCard and a 4-digit Personal Identification Number (PIN) to authorize transactions on deposit and credit accounts (withdraw cash, balance inquiries, transfer funds between accounts, make deposits and payments and pay for purchases) on qualified Automated Teller Machines (ATM) or point-of-sale (POS) terminals and with a 24-Hour Voice Response System 3-digit PIN to perform inquiries and transfers between accounts (deposit and credit) via touch-tone phone. A member may also use preauthorized electronic funds transfers through the ACH system to make deposits to accounts or to pay bills or make payments from a Share Draft Checking account. All terms in the disclosures concerning the use of a MemberCard that are mailed with the card are agreed to by the cardholder. If a cardholder fails to notify the Credit Union within two business days after learning of the loss or theft of a MemberCard or of the cardholder’s knowledge of unauthorized automatic transactions and the Credit Union could have stopped the transactions, the cardholder could lose as much as $500. If the cardholder notifies the Credit Union as required, cardholder liability may be limited to $50 or the amount of the transaction, whichever is less. The cardholder must notify LGFCU in writing to Post Office Box 27465, Raleigh, NC 27611-7465 or call 800.662.8821. If LGFCU does not make a transfer or transaction to or from an account on time or in the correct amount according to the members’ request, LGFCU will be liable for the member’s losses or damages except under exceptional circumstances permitted by law such as insufficient funds in the account to perform the transaction. LGFCU will disclose information about accounts or transactions to a third party whenever it is necessary to complete a transaction, verify the existence of an account, comply with a government agency or court order or whenever a member gives permission to do so. In case of errors or questions about electronic transfers, call the Credit Union (800.662.8821 during business days, Monday-Friday, 8:30 a.m. - 5:30 p.m. EST, except on holidays) to obtain more information about a transaction or to report incorrect transfers within 60 days after receiving the first statement showing the error. Give the Credit Union the accountholder’s name, account number, a description of the error or explanation needed and amount in question. LGFCU may request the information in writing. The Credit Union will respond within 10 business days as to the results of the investigation. If more time is needed to investigate, LGFCU has up to 45 days (90 days for international or Point Of Service transactions) to finalize credit to the account. If the Credit Union decides there is no error, LGFCU will send a written explanation within 3 business days of the decision with any documentation requested.

Tax Identification Certification
Under penalties of perjury, each depositor certifies the taxpayer identification number listed on the depositor’s account is correct for the depositor and that the depositor is not subject to backup withholding either because the depositor has not been notified that the depositor is subject to backup withholding as a result of a failure to report all interest or dividend, or the Internal Revenue Service has notified the depositor that the depositor is no longer subject to backup withholding.

Disclosures, Agreements, Rules and Regulations
These disclosures, agreements, rules and regulations may be added to, rescinded, altered or amended by the Credit Union at any time without notice to the depositor. Upon signing of an account signature card, depositor hereby assents and agrees to these rules and regulations and their subsequent changes or amendments.

Our Privacy Policy
One of the most sacred qualities between a financial institution and the people who rely on it for services is trust. Trust is one of the core principles of Local Government Federal Credit Union. For this reason, we share with you our long-standing policies on a very important topicprivacy.

LGFCU has never, and will never sell your financial information to anyone for any reason. Our policy has always been to keep your financial information private. This commitment is ongoing; and, before any new service is adopted at the Credit Union, we thoroughly review the scope of the service to make certain our privacy standards will be maintained. If in the future, the Credit Union should identify a beneficial reason to share your personal financial information; your consent will be requested before any disclosure is made.

LGFCU has a special reason for protecting the privacy of members. The Credit Union is owned by its members and managed by a Board of Directors you elect. Because the Credit Union is a cooperative, you can be confident that your financial privacy is a top priority of this Credit Union. After all, the privacy of the board, volunteers, and staff of the Credit Union is at stake as well.

Disclosing Financial Information
LGFCU is committed to providing you with competitive products and services to meet your needs. In some cases, it is necessary that some information about you be shared with third party financial services providers that supply data processing and transactional services. The main provider of services to LGFCU is the State Employees’ Credit Union (SECU). LGFCU has a contractual agreement with SECU to provide member services and operational support. Law permits the disclosure of information about you in such an agreement. These disclosures typically include information to follow your instructions for service:

In order to complete transactions
To maintain your accounts
When you request additional services

To protect your privacy, all service providers to LGFCU must agree in writing to maintain strong confidentiality protections and not use information for any purpose other than specifically contracted. The Credit Union does not and will not permit service providers to sell to other third parties information about LGFCU members.

In the normal process of serving you, the Credit Union routinely collects nonpublic personal information about you from the following sources:

Information we receive from you on account and loan applications, such as name, address, social security number and income.
Information about your transactions with others, or us such as account balances, payment history and credit card usage.
Information we receive from a consumer-reporting agency, such as your creditworthiness and credit history.
Information obtained when verifying the data you provide on an application, such as current and past employers, or other institutions where you conduct financial transactions.

Occasionally LGFCU may be required by law to disclose nonpublic personal information for governmental or judicial purposes.

If you decide to terminate your membership or become an inactive member, we will adhere to the privacy policies and practices as described in this notice.

How We Protect Your Information
LGFCU is committed to maintaining a trustful relationship with our members by respecting and preserving our members’ financial privacy. We require all employees to actively safeguard member privacy and confidentiality. We also have adopted physical, electronic and procedural safeguards that comply with federal regulations and industry standards to protect your nonpublic personal information. If you have questions about the Credit Union’s Privacy Policy, please contact us. We welcome your inquiries and comments.

LGFCU Administrative Office
323 West Jones Street, Suite 600
Raleigh, NC 27603

E-mail: info@lgfcu.org

Phone: 919.755.0534
Toll Free: 800.344.4846
Fax: 919.755.0193