YOUR SANDIA LABORATORY

Accounts that have been open

(07/2013)

TABLE OF CONTENTS

INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

GENERAL AGREEMENTS OF MEMBERS. . . . . . . . . . . . . . . 5

Your Consent to Our Right to Recover

Obligations from Shares (Right of Offset) . . . . . . . . . . . 8

Collection Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Fees and Damages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Governing Agreements and Laws . . . . . . . . . . . . . . . . . . . . 9

Backup Withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Electronic Service Options . . . . . . . . . . . . . . . . . . . . . . . . . 10

Change of Address. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Waiver; Modification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Revocable Authorization to Check Credit. . . . . . . . . . . . . . 11

Savings Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Prohibition on Unlawful Transactions . . . . . . . . . . . . . . 55

Documentation of Transactions. . . . . . . . . . . . . . . . . . . 55

Excess Withdrawals . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Unauthorized Transactions - All EFTs. . . . . . . . . . . . . . 56

Credit Union Liability for Failure to

Privacy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Change in Terms – Cancellation . . . . . . . . . . . . . . . . . . 59

Delayed Availability of Deposits . . . . . . . . . . . . . . . . . . 59

Additional Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

select.

Our mission is to provide a tailored array of convenient

services to satisfy the financial needs of our members, and to

provide these services with the highest possible level of

technical and operational efficiency while keeping a close and

caring touch with our members and employees.

Your Credit Union is a unique financial institution. Unlike a

bank, a Credit Union is a non-profit financial cooperative

owned by you and your fellow members. It is chartered,

regulated and insured by the National Credit Union

of your Credit Union share accounts. We may disclose addi -

tional terms to you whenever you open a new account, in

periodic statements we will send you, and in our Credit

Union newsletter.

Your Credit Union also offers consumer loans, home mortgage

loans, and home equity lines of credit. These loans will be sub-

ject to separate written agreements. Your general obligations

as a Credit Union Member as explained in this Handbook

apply to all agreements you make with the Credit Union.

Not all of the terms spelled out in this Handbook apply to every

are available at any Credit Union office or on our web site,

www.slfcu.org. Once you qualify for membership and complete

your Membership Agreement, we will open your requested

accounts and begin accepting deposits immediately. To protect

you and your Credit Union, we will not permit withdrawals or

extend credit until your Membership Agreement is completed

and processed at our offices. Although we will send mail to

P.O. boxes or private mailbox addresses at your request, we

must have the street address of your residence to open your

membership.

All new accounts will be opened in accordance with the USA

different), date of birth, taxpayer identification number (usually

your social security number) and other information that will

allow us to identify you. We may also ask to see your driver’s

license or other identifying documents.

We will need to see appropriate photo identification on all new

accounts. We will also need the appropriate identifi cation

when adding new joint owners without a prior SLFCU

relationship to an existing member’s account(s).

In this Handbook, “you” and “your” refer to the Credit Union

that capacity to join the Credit Union. “Joint owner” refers to

accounts as “checking” accounts, and to our term share

certificate accounts as “certificates” or “certificate accounts.”

“Board” refers to the Credit Union’s Board of Directors. The

singular implies the plural when an account has more than

one owner.

3. Current and retired employees of other Select Employee

Groups and members of select associations approved by

our Board and the National Credit Union Administration.

If you belong to an eligible group, you can join Sandia

Laboratory Federal Credit Union. Membership eligibility is

extended only to individuals who are members of an imme diate

family or household of a Credit Union member. It is not neces-

sary for the primary member to join the Credit Union in order

for the immediate family or household member of the primary

member to join. However, it is necessary for the immediate

family member or household member to first join in order for

that person’s immediate family member or household member

to join the Credit Union.

joint account owner to be eligible for a checking account,

a MasterMoney Check Card, or Electronic Fund Transfers

(“EFTs”), and have an adult joint obligor to be eligible for loans.

We reserve the right to require minors who have accounts

without adult joint owners to have a photo identification

bearing their signature.

As a Member-owned cooperative, SLFCU is your Credit Union.

Members are expected to uphold high standards of honesty,

personal responsibility and courtesy in dealing with the Credit

3) You are convicted of a crime in connection with business

4) You cause the Credit Union a loss in any way (including

5) We learn after establishing your membership that we

6) You fail to conduct your business with the Credit Union in

Your Credit Union strives to offer all Members the highest

possible returns on savings and the lowest possible rates on

loans, taking market conditions, safety and soundness

concerns, and business needs into account. To make this

possible, all Members must meet their obligations to SLFCU

in a timely manner.

from loan applications. You agree not to request credit or use

credit cards or lines of credit if you have reason to believe you

will be unable to make the required payments.

You will not allow SLFCU Savings or checking accounts you

open to fall below a zero balance. If you do inadvertently over-

draw any Savings or Checking account, and you do not have

a Preauthorized Overdraft Protection Source with available

funds, you agree to immediately restore any overdraft upon our

written demand. If you do not promptly restore the overdraft,

you agree that our Right to Recover Obligations from Shares

our demand, you will immediately restore the amount of the

returned item to your account. If you do not do so, you agree

that our Right to Recover Obligations from Shares applies.

If we cannot recover the amount under our Right to Recover

Obligations from Shares, you agree that our right to recover

Collection Costs applies.

You agree to repay money you borrow from SLFCU according

to the terms of the applicable loan agreement.

If you do not meet your obligations to us, we may report

information about your account to credit bureaus. Late

If a Member wishes to designate different joint owners

for different accounts, or to have both joint and individual

accounts, or to have different POD beneficiaries for different

accounts, you must complete a separate authorization in each

case. The Member will have the same member number on all

joint owner combinations, with different ownership combi na -

tions indicated by different suffix numbers. POD bene ficiaries

are not allowed on UTMA or fiduciary accounts.

You may wish to consult with your tax advisor or legal advisor

before you designate POD beneficiaries on IRA accounts

elections, or to hold Credit Union office. Joint owners who are

Membership Agreement.

We will give information about accounts to each joint owner,

provided that any applicable research and copying fees are

paid. We will also provide information about your accounts

if we receive an information request such as a subpoena that

meets legal requirements. However, any disputes about the

ownership of funds in joint accounts must be resolved by the

account owners without involvement from the Credit Union.

We will not give out account information to POD beneficiaries

until all account owners are deceased.

his or her own name, or with another joint owner other than his

property interest in the account at the death of the account

owner. This interest, if asserted, would reduce the amount that

transfers to a non-spouse POD beneficiary or to any surviving

joint owner.

We acknowledge the obligation to honor court orders and

lawful powers of attorney dealing with your specific accounts.

are in our Field of Membership) re-open it in the new owner’s

name with a new account number, or (2) All current owners

must consent in writing to the change.

The Credit Union will retain and follow only your most recent

Account Agreement Form. The Credit Union will consider any

omission from your current Account Agreement Form of

infor mation that was included in a previous Account Agreement

Form of yours to have been intentional. Thus, for example,

if your earlier Agreement designated a POD beneficiary and

your current Agreement has no POD beneficiary designation,

we will assume that you want your account to pass to your

Union a continuing authorization to open any account for you

We are required to follow written instructions transmitted to us

on your accounts by any account owner or any person author-

ized by an account owner to conduct business on your

accounts. We consider instructions received in writing or via

electronic means such as ATM keypads, facsimile, CU@home

borrowing co-signers are entitled to information about all loans

that they are obligated to pay. A person that is not an obligor

on a loan but has pledged real or personal property as

collateral for the loan is entitled to know if and when the loan

goes into default and the steps necessary to cure the default.

credit has the right to information about the account or loan.

of information about the account or loan to third parties. If we

have the written permission of an authorized person, we will

release information even though we would otherwise be

prohibited from doing so by law or policy.

We do not disclose account information to pay-on-death

beneficiaries until all account owners are deceased.

A person who was formerly an owner of an account or an

obligor on a loan can obtain information regarding the account

or loan during the time he or she was an owner or obligor.

obtaining a subpoena. If B wants information about trans -

actions on the account that occurred before January 1, 2010,

or after January 1, 2011, B will have to provide a legally

sufficient subpoena or obtain Member A’s written permission.

Any party who requests information about an account or loan

must pay applicable research and copying costs. We are not

required to retain account or loan information beyond any

maximum time established by law. For accounts, the maximum

retention period is generally seven years. For loans, records

are generally retained until the loan is paid in full.

tion about your accounts or loans to notify you and give you an

opportunity to object, although some exceptions to this general

necessary to process transactions or provide services that

you request.

We will disclose information about you as necessary to

conduct our business and protect the interests of the Credit

Union. For example, if you claim fraudulent use of your Debit

Card at another financial institution’s ATM, we will disclose

information about you and the transaction to the other financial

institution in an effort to obtain videotape or other documen -

tation we can use to verify your claim.

We will disclose our account and loan experiences with you

provide our services to you on our behalf, such as a third party

Please refer to the separate Credit Union Privacy Policy for

more information on our privacy practices and your privacy

rights.

Funds can be deposited to your accounts by (1) Direct deposit

of your net pay or retirement benefits, (2) Automatic payroll

deduction, (3) In person at Credit Union branches (including

designated Shared Branches), (4) By mail, (5) By wire transfer,

(6) Through certain ATM networks to which the Credit Union

belongs, & (7) and for those who meet our guidelines,

Deposit: A remote deposit capturing system using

an image of the check or negotiable instrument.

Please be aware that the Credit Union cannot be responsible

for cash or currency sent through the mail for deposit.

Mailing currency or cash to SLFCU is done at your own risk.

Withdrawals can be made (1) In person at Credit Union

branches (including designated Shared Branches), (2) By an

Credit Union checking account, and (5) By pre-authorized

transfer.

Certain deposits are subject to delayed availability, as spelled

out in the “FUNDS AVAILABILITY POLICY” section of this

Handbook.

transfers out of your Regular Share Accounts by certain

methods are limited. You may make as many withdrawals or

transfers out of these accounts as you wish using these

means: (1) in person, (2) by mail, (3) by messenger, (4) at the

ATM, or (5) by a telephone request to mail a check payable to

you to your address in our records. All other withdrawals or

transfers out of these accounts are limited to six per month.

Examples of transfers or withdrawals out of these accounts to

which the limits apply include: (1) pre-authorized automatic

payments, such as for health club dues or utility bills;

(2) transfer requests submitted using CU@home

or

(3) auto matic and pre-authorized account transfers (including

overdraft protection transfers). The purpose of these rules,

prescribed by Federal Reserve Regulation D, is to channel

and present it to the bank on which it is drawn for payment.

We may require that any third parties or payees who are

not owners of the account have their financial institution

guarantee their endorsements.

Except for checking accounts, all accounts are non-transfer-

able, other than on the books of the Credit Union. This means

that if you want to change ownership of funds in a non-

checking account you must withdraw them or change the

ownership by closing the account and opening a new account

with the desired ownership. We reserve the right to require

without the Credit Union’s prior written consent. We may

refuse withdrawals if you have delinquent obligations with us.

You acknowledge that our making funds from a non-cash

deposit available to you for withdrawal is not a guarantee or

representation by us that the item you deposited will be paid.

If you are concerned about the validity of an item you want to

deposit, you should contact the financial institution on which

the item is drawn. No Credit Union employee has the expertise

or is authorized to give you an oral or written guarantee that an

item you deposit will be paid. If the paying financial institution

Generally, if a Credit Union member has more than one

account in the same insured Credit Union, those accounts

are added together and insured up to at least $250,000 by

the National Credit Union Share Insurance Fund. Individual

Retirement Accounts (IRAs) are separately insured up to

$250,000. There are exceptions, however. For example, the

shares in your Regular Share Savings Account are insured

separately from those in your IRA or certain trust accounts.

It is possible to increase your insured funds in the Credit Union

by struc turing your accounts to maximize insurance coverage.

If your accounts have joint owners or pay-on-death benefi -

your Credit Union or at the NCUA’s website www.ncua.gov.

The policies stated in this section apply to all of our accounts

except the checking account which does not earn dividends.

The dividend period is monthly, for example, the beginning

date of the first dividend period of the calendar year is January

1, and the ending date of such dividend period January 31.

Dividends are calculated by the daily balance method, which

applies a daily periodic rate to the balance in the account each

day. However, no dividends are paid on any day the balance

falls below any minimum balance to earn dividends stated in

the Truth in Savings Disclosure. (On share accounts where the

primary owner is less than 15 years old, dividends will be paid

on any account balance.) We compound dividends daily.

account prior to the first day of a calendar month, you will not

if assessed, may reduce earnings. Please see the Schedule

We will mail you periodic statements recording all deposits,

withdrawals, checks drawn on your account, dividends

(if any), and fees. All active accounts with valid addresses

We will mail statements to you at your address in our records,

or electronically notify you at the email address you provided.

Please notify us of any physical or email address change.

You will not receive your canceled checks, although all checks

are microfilmed electronically imaged and retained in that form

for seven years. Copies of checks will be available on request.

The first two check copies you request for a statement period

are free; additional check copies are subject to a fee.

See Schedule of Fees for details.

available as electronic images for seven years.

we may charge you a fee. Please see the Schedule of Fees

for the current charge. Statement printing fees are for each

page printed, not for each month a statement is requested.

For example, if you request for us to print last October’s state-

ment, and the statement is five pages long, you will be charged

the current fee for each page that prints, not one printing fee

for the entire month. You may specify to have one page of a

multiple-page statement, and you will only be charged for the

specific page requested.

Unauthorized Signatures or Alterations: If you suspect that

someone forged your signature on your check), you must notify

If you do not tell us within 30 days, we are not responsible for

any losses you incur because of the forgery or alteration of a

check on your account. We operate in an electronic processing

environment and it is not feasible for us to examine every

signature on every check. For this reason we are, as permitted

by the Commercial Code, altering the provisions of the

ment to us of your rights to collect the amount from anyone

else. You agree to cooperate with our efforts to collect the

amount we credited to your account.

If we make an error in handling your account, our liability will

be limited to the actual damages. The maximum actual

damages are the amount of the transaction. We will not be

liable for consequential damages such as alleged harm to your

credit standing, unrealized profits, emotional distress, or

exemplary damages due to a claimed reckless disregard of

the consequence of our actions.

than six months may be restricted and require verification of

the transaction that reactivates the account.

Accounts with no member-initiated activity for two years by

January 1 of each year will be charged a dormant account fee.

Please refer to the Fee Schedule for the current dormant fee

amount. Posting of dividends to your account does not

constitute member-initiated activity.

We have the right to close your accounts for any business

funds to cover them and without overdraft protection, your

failure to pay your loans, your misuse of a checking account

for check kiting or other unlawful purpose, or your failure

to observe the conditions of any other agreement with the

Credit Union.

be closed. If you wish to rejoin the Credit Union after your

account is closed, you will be able to do so only if you are still

within our field of membership.

account for three years other than the crediting of dividends,

your account is presumed to have been abandoned and

subject to forfeiture to the state of California. We will assess or

pass on the maximum amount of fees allowed by law asso -

ciated with the escheat process. For example, you are

responsible for stop payments fees on Official Checks you

current with us, and we have had mail (such as account state-

less than $50, we may not mail a notice to you. According to

state law, you may reclaim any funds that were escheated in

your name. We will provide you information on how you can

claim your funds from the state of California upon your request.

five years other than the crediting of dividends, your account is

presumed to have been abandoned. We will assess or pass on

the maximum amount of fees allowed by law associated with

the escheat process. For example, you are responsible for stop

payments fees on Official Checks you purchased, but were

Mexico Education Foundation at the Credit Union Association

current with us, and we have had mail (such as account state-

ments) returned to us, we will not send a notice that your

account is subject to escheat. If your account has a balance

of less than $50, we may not mail a notice to you. According

to state law, you may reclaim any funds that were escheated

in your name. We will provide you information on how you can

claim your funds from the state of New Mexico or the New

we will comply with the law or court orders in disbursing

account proceeds, and we will honor stop pay requests by any

persons claiming an interest in your account. We will also

follow the instructions of any holder of a legally valid power of

attorney or a guardian or conservator appointed by the court

with authority to handle your financial institution accounts. Joint

accounts are handled differently, because of the joint owner

rights of survivorship. Funds in accounts with joint owner(s)

belong to the surviving owner(s) regardless of any designated

beneficiary.

and each additional savings account you open must maintain

With drawals” section. Dividends are earned on a tiered-

balance basis. This Account earns tiered dividends if you

maintain the required minimum balance. See the Truth in

Savings Disclosure the Fee Schedule for details.

This account earns dividends on a tiered-balance basis.

Withdrawals from this account are subject to dollar amount

limitations. There are fees for exceeding six withdrawals per

month. See the Fee Schedule for more information.

Disclosed Annual Percentage Yields (APY) assume that

Term Share Accounts renew automatically at maturity unless

you close the Term Share Account at maturity or during the

21-day grace period that follows maturity. Automatic renewal

will be for the same term and at the Dividend Rate and APY

the Credit Union is then offering for Term Share Certificates

of that term and balance. If the Credit Union is not offering

the same term, your account will renew for the term that is