Money Management Account Disclosure

Accountholder(s) must maintain a minimum balance of $1,000 to earn dividends at Money Management rates. No dividends will be earned for the period of time that the balance remains below the required balance.

Dividends will be computed on the actual dollar amount for each day funds are on deposit in the account. Dividends will be paid and compounded monthly and will be credited to the account as of the first day of the month following the end of the dividend period. Dividends will be available to the accountholder(s) anytime after the payment.

The average daily dividend rate on balances of $1,000 or more (Money Management Rates) will be based on money market conditions and on the average daily yield of the short-term investment portfolio maintained by Democracy FCU. These investments are usually comprised of, but not limited to, U.S. Government Agency securities and obligations, U.S. Treasury bills and notes, insured certificates of deposit, common trust investments and such similar investments. As with Share Accounts at Democracy FCU, dividends are based upon the Credit Union's earnings and cannot be guaranteed. For purposes of computing dividend rates, the rate calculation period shall extend from the 1st day of the month to and including the last day of the month for which dividends are to be computed.

Additional deposits will be accepted for credit to the Money Management Share Draft Account in any amount. Deposits may be made in person at any Democracy FCU office during normal business hours, by mail, wire transfer from another institution, or by payroll allotment/direct deposit. Deposits received prior to 4:00 p.m. any business day will be credited to the account effective the day of receipt. Funds received after 4:00 p.m. will be credited as of the next business day.

All non-cash payments received for credit to the Money Management Share Draft Account are credited subject to final payment. Withdrawals may not be made on such items deposited in this account until collected. Any amount not collected, plus expenses incurred, may be charged back to this account or any account at Democracy FCU held in the name(s) of the accountholder(s).

Withdrawals from this account may be made for amounts of $200 or more. There are no limitations as to the number of withdrawals that may be made in person or by mail. Withdrawal of funds from the Money Management Account by draft is subject to the following:

1. Only drafts and other methods approved by Democracy FCU may be used.
2. Each negotiated draft will be charged to the Money Management Account as of the date of receipt by Democracy FCU.
3. Democracy FCU is authorized to refuse any share draft, which exceeds funds available in the Money Management Share Draft Account.
4. Democracy FCU may, at its option, pay a draft, which exceeds the balance in the Money Management Account by transferring the amount of the resulting overdraft from any other share account from which the person (s) who signed the combined application is/are entitled to withdraw shares. Such transfers shall not exceed three per month. A fee in an amount established by Democracy FCU may be assessed for each transfer.
5. The minimum amount that you must withdraw at any one time is $200. If a share draft in an amount less than $200 drawn on your Money Management Account is presented to the Credit Union for payment; a nominal service charge will be assessed.
6. Democracy FCU is under no obligation to pay a Money Management Share Draft on which the date is more than six (6) months old.

Except for negligence, Democracy FCU is not liable for any action it takes regarding the payment or nonpayment of a Money Management Share Draft.

The accountholder(s) may request that payment of a share draft be stopped by providing written notification to Democracy FCU. Verbal requests by telephone may be made to initiate a stop payment order; however, it must be followed in writing (signed letter or stop payment order form) and received by Democracy FCU within seventy-two (72) hours or the order shall be deemed invalid. A service charge in an amount established by Democracy FCU may be assessed for each stop payment request.

Paid share drafts will not be returned by Democracy FCU; however, the accountholder(s) may request copies of paid share drafts when required. A service charge in an amount established by the Credit Union may be assessed for each copy provided.

The number of share drafts presented for payment against funds in the Money Management Account may not exceed three (3) each month. A service charge in an amount established by Democracy FCU may be assessed for excessive drafts.

Pre-authorized/telephone transfers of funds to a Share Draft Account and other accounts with Democracy FCU or to other institutions (wire transfer) shall not exceed three (3) each month. A transfer authorization form shall be filed with Democracy FCU prior to any requests. Democracy FCU shall not be liable for loss or damage that results from a failure to complete a transfer in accordance with this agreement if circumstances beyond Democracy FCU's control prevent the transfer. A fee in an amount established by Democracy FCU may be assessed for each transfer.

Statements of transactions on Money Management Accounts will be provided monthly. Any objection respecting any item shown on a statement of Money Management Account shall be waived unless made in writing to Democracy FCU on or before the last day of the month following the day that the statement was mailed.

Funds in the Money Management Account may not be assigned or transferred, except on the books of Democracy FCU, and may not be used as collateral for loans. In the event any indebtedness to Democracy FCU is in default, Democracy FCU may offset from this account any amounts necessary to cure default and/or to satisfy said indebtedness.

At the option of Democracy FCU, a seven (7) day notice may be imposed for the withdrawal of funds.

This account is not a mutual fund or investment security. It is a special Share Draft account and is federally insured up to $500,000 by the National Credit Union Administration, a U.S. Government agency, and Excess Share Insurance, a private insurer.

Democracy FCU reserves the right to terminate this agreement or change the terms and conditions upon which this account is offered. Accountholder(s) will be given reasonable notice before any termination or change becomes effective.