SECURITY FEDERAL CREDIT UNION
ELECTRONIC SERVICES DISCLOSURE

Security Federal Credit Union makes available to members various Electronic Fund Transfers services, made possible by our advanced electronic data processing system. Some of these transfers are made by use of a plastic Security Federal ATM Card (Hereinafter referred to as ATM Card). Other transfers may be made by use of Audio Teller or transactions processed through the use of a personal computer.

We will provide a secret personal identification number (called a “PIN”) to a member to be used with the ATM Card, Audio Teller, or personal computer use. Your ATM Card along with the PIN may be used in any Security Federal ATM or any ATM displaying NYCE, CIRRUS, Co-Op Network, PLUS or VISA Network Logos. Networks may be added or deleted from time to time without notice.

In addition, Security Federal Credit Union makes available to members who qualify, a Security Check Card which may be used at merchants displaying a MasterCard Logo. “Cards” – refers to both the Security Check Card and Security ATM Card and is used in this contract when a particular provision relates to both cards.

The terms and conditions of this agreement govern the issuing of PINs, use of the cards and PINs, and making of such electronic transactions in the following cases:

• If you use a PIN together with the Card or Audio Teller to make transactions.
• If you use a PIN and password to conduct business through the use of a personal computer.
• If you use your Security Check Card to purchase goods at a merchant displaying a MasterCard Logo.
• In all cases, your making transactions constitutes your acceptance of the terms and conditions of this agreement.
• Until the PIN is issued, (cards are validated), the Card may not be used to make ATM or Audio Teller transactions.
• If you do not want to use the Card, destroy it immediately by cutting it in half.

The terms “You” and “Yours” includes the plural in cases where two or more persons have an interest in a single account effected by this Electronic Fund Transfer Service Agreement.

ACCOUNT AGREEMENTS

The terms and conditions of any agreement relating to your accounts with us will remain in effect except to the extent modified by this agreement.

Each of the following types of accounts at Security Federal Credit Union can be subject to some kind of Electronic Fund Transfer Service: Regular Shares, Share Draft Checking, Christmas Savings Accounts, Special Savings Account, Daily IRA Share Accounts, Insured Daily Investment Accounts (IDI). The types of accounts referred to in this disclosure are sometimes referred to as “Accounts.”

RIGHT TO TERMINATE

You may terminate this agreement at any time. You may notify us in writing or in person and we will take the necessary steps to make your account or accounts in the Credit Union no longer accessible through the ATM, Audio Teller, personal computer, and SECURITY Check Card. The cards must be returned to us.

IMPROPER USE/MALFUNCTION

We will make electronic fund transfers you initiate at the ATM, Audio Teller, or personal computer, but we are not responsible to you for any loss or damages you sustain if you operate an ATM or Audio Teller, personal computer, or Security Check Card improperly or if it malfunctions through causes beyond our control.

FEES

Security Federal Credit Union will charge you, in accordance with the applicable Rate and Fee Schedule, for each ATM overdraft transfer and for each withdrawal, deposit, inquiry or transfer you process at an ATM which is not owned by Security Federal Credit Union. These fees are for electronic fund transfers or the right to make them. Other fees and charges may also apply to your account as set forth in the applicable Rate and Fee Schedule. The Rate and Fee Schedule referred to was provided to you when you opened your account and may have been amended since that time. A Rate and Fee Schedule currently applicable to your account is available at any Security Federal Credit Union office. The applicable Rate and Fee Schedule is incorporated into this Disclosure by reference. Fees are subject to change with prior notification. If you use an automated teller machine that is not operated by us, you may be charged a fee by the operator of the machine and/or by an automated transfer network. Other fees may apply for foreign transactions.

SECRECY OF PIN

Notify the Credit Union immediately if your PIN is disclosed to anyone other than a joint owner on the account. Any disclosure of the PIN, and/or change of possession of the Card permitting transactions, whether intentional or through your neglect, is entirely your liability.

ELECTRONIC FUND TRANSFER SERVICES

At the present time, you can authorize the following types of Electronic Fund transfers to or from your account at Security Federal Credit Union including the following:

TRANSFER TO YOUR ACCOUNT(S) INCLUDING THE FOLLOWING:
Deposits of payroll deductions and net paychecks from any employer who has agreed to work with us, Direct Deposit of various governmental benefits such as Social Security pensions, deposits from any third party through the facilities of the Michigan Automated Clearing House Association, automatic transfers to your account(s) from the account of other parties, and transfers to your account(s) from your other asset or loan accounts.

TRANSFER from YOUR ACCOUNT(S) INCLUDING THE FOLLOWING:
Automatic deductions from your account for car insurance premiums, disability insurance, payments of your house mortgage payments, insurance premiums and utility bills, as well as other types of payments to third parties through transfers from your account(s) to the account of others and to make loan payments at the credit union. We may accept deposits to your account which have been transmitted through the one or more Automated Clearing House (ACH), and which are not subject to the Electronic Fund Transfer Act, and your rights and obligations with respect to such payments shall be construed in accordance with and governed by the laws of the state of Michigan and the operating rules of the National Automated Clearing House Association, which are applicable to ACH transactions involving your account.

AUDIO TELLER PROGRAM TRANSACTION:

You may make withdrawals from your accounts with the Credit Union, as well as transfers to or from certain accounts with the Credit Union.

AUTOMATED TELLER MACHINE (ATM) TRANSACTION:

If you have an ATM Card you may make withdrawals from your account with the credit union as well as transfers to or from accounts with the credit union. You may use your ATM Card at any Security Federal ATM machine, or any ATM displaying NYCE, CIRRUS, Co-Op Network, PLUS or VISA Network Logos and to make deposits to the accounts, to make cash withdrawals from your accounts, and to transfer funds from your accounts.

MASTERCARD DEBIT CARD:

If you have a Security Check Card, you may use it to purchase goods or services at places that accept MasterCard cards. Payment may only be made from funds in your checking account. Access to other accounts is not permitted for point of sale transactions.

We may make additional types of Electronic Fund Transfer Services available in the future. We may also discontinue one or more, or all, of our electronic fund transfer services.

ELECTRONIC STATEMENTS

If you elect to receive your monthly or quarterly statement electronically through the use of a personal computer, and will no longer receive a paper-based statement on a monthly or quarterly basis, you understand and agree to furnish your email address to the Credit Union as part of this agreement. If you change your email address you agree to change your email address with the Credit Union as a requirement to receive your electronic statement. If you do not change your email address or notify the Credit Union of any new email address, you understand that you may not receive your monthly or quarterly statement notification.

If you have elected to receive your monthly or quarterly statement electronically you understand and agree to install Adobe Acrobat on your computer in order to access and read your electronic statement.

You understand and agree that the security of the PIN and password used to access electronic statements is your responsibility and further agree to notify the Credit Union immediately if your PIN becomes compromised or known to unauthorized individuals.

PREAUTHORIZED CREDITS

If you have arranged to have direct deposits made to your account, you can call us at (810) 235-2322 to find out whether or not the deposit has been made.

PREAUTHORIZED PAYMENTS

RIGHT TO STOP PAYMENT AND PROCEDURE FOR DOING SO.
If you have told us in advance to make regular payments out of your account, you can stop any of these payments. Here’s how – call us at (810) 235-2322, or write us at P.O. Box 5160, 3801 W. Boulevard Drive, Flint, Michigan 48505-0160, in time for us to receive your request three business days or more before the payment is scheduled to be made. If you call, we may also require you to put your request in writing and get it to us within 14 days after you call. We will charge you a fee for each stop payment order you give in the amount set forth in the applicable Rate and Fee Schedule.

NOTICE OF VARYING AMOUNTS. If these regular payments may vary in amount, the person you are going to pay will tell you, 10 days before each payment, where it will be made and how much it will be. If you choose instead to get this notice only when the payment would differ by more than a certain amount from the previous payment, or when the amount would fall outside certain limits that you set, you will only receive notice when the payment exceeds these amounts.

LIABILITY FOR FAILURE TO STOP PAYMENT OF PREAUTHORIZED TRANSFER. If you order us to stop one of these payments three business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages.

DEBITS OR WITHDRAWALS

All uses of the Cards, Audio Teller or personal computer and PIN are subject to verification by Security Federal Credit Union prior to entry on actual records and considered as though your signature. Withdrawals and cash advances will be posted as of the actual business day they occur.

CREDITING OF DEPOSITS AND PAYMENTS

Deposits made in an ATM, whether cash, check, draft, or money order, are subject to verification and the posting of such deposits and payments to share accounts or loan accounts may be delayed until they can be collected from the ATM, verified, and entered into our accounting system. Further delay may occur if the transaction is made immediately prior to a Saturday, Sunday, or holiday on which we are closed. If you place a check, draft, or money order in the ATM as a deposit or payment, it is subject to collection in accordance with our published check hold policy.

RESPONSIBILITY FOR OVERDRAFT

If an overdraft occurs the overdraft amount is due and payable the moment you are notified of it and you agree to pay the amount to us, plus any and all legal expenses incurred by us in our efforts to collect the overdraft. The amount of the overdraft may be subject to overdraft charges and/or transfer charges. You also authorize us, in such a case, to apply from any other shares you may have in the Credit Union such amount as may be necessary to pay such overdraft amount plus any applicable transfer charges. If the overdraft is created in your checking account, a transfer will be made from your other share account(s) in the Credit Union to cover the overdraft, in accordance with your checking account agreement with us.

LIMITATION OF CARD USE

For security reasons, there are limitations on the frequency and dollar amount of the transaction which you make using your Security ATM Card or Security Check Card. For details on these limitations please call (810) 235-2322.

CARD OWNERSHIP

The Cards and PIN remain the property of Security Federal Credit Union and will be surrendered upon request.

OUR RIGHT TO TERMINATE

The Cards and all privileges may be canceled or limited at any time without notice should the Credit Union receive information indicating you are unwilling or unable to perform under the agreement, under the terms of any account that could be utilized with the Card, or any regulations and statutes applicable. The Credit Union can discontinue access to accounts without notice and will not be liable for transactions that cannot be honored.

TRANSACTION RECEIPTS

(a) You can receive a transaction receipt at the time you make any transfer to or from or between your accounts using an ATM or Point of Sale terminal.

(b) If you have arranged to have direct deposit (which are Electronic Fund Transfers as described above) made into your accounts at least once every 60 days from the same person or company.

In most cases, the person or company making the deposit will tell you every time they send us money, but if the person or company does not give us such notice you can call us at (810) 235-2322 to find out whether the deposit was made.

(c) You will get a statement for each account for each month in which an Electronic Fund Transfer, as described above, occurs. But you will get such a statement quarterly even if such transfer does occur during the particular quarter if the account is still active. Any statement we send you on an account which is subject to Electronic Fund Transfers as previously described and transaction receipts you receive from an ATM are admissible evidence.

PERIODIC STATEMENTS

You will be provided with a statement which will include, among other things, a brief description of all electronic funds transfers made to or from your account by means of an ATM, Audio Teller, personal computer, Security Check Card sufficient to enable you to identify each such transaction and relate it to a receipt furnished to you relating to that transfer. This statement will be provided each month a transaction occurs, or quarterly, whichever is more frequent.

RULE OF EVIDENCE

Transaction receipts and periodic statements we furnish to you as provided in the last five paragraphs are admissible as evidence.

AMENDMENTS

We reserve the right to amend this agreement in whole or in part in any manner and at any time, except as may be prohibited by law. We will notify you of such amendments in advance.

LOST OR STOLEN CARDS OR PIN

NOTICES OF LOSS OR THEFT. IF YOUR SECURITY CHECK CARD IS LOST OR STOLEN YOU SHOULD CALL (800) 449-7728. if you believe your ATM card or pin has been lost or stolen, or that someone has transferred or may transfer money from your account without your permission you should call us at once at: (810) 235-2322, or write: P.O. Box 5160, 3801 W. Boulevard Drive, Flint, Michigan 48505-0160. you may also cancel your ATM card immediately through security’s audio teller (810) 235-0820.

LIABILITY FOR UNAUTHORIZED USE

Tell us at once if you believe your ATM card was lost, used without authorization, or stolen. Telephone is the best way of keeping your possible losses down. You could lose all of the money in your account. If you tell us within two business days, you can lose no more than $50.00 if someone used your Card without your permission. If you do not tell us within two business days after you learned of the loss or theft of your Card, and we could prove we could have stopped someone from using the Card without your permission if you had told us, you could lose as much as $500.00.

Also, if your statement shows transfers that you did not make, tell us at once. If you do not tell us within 60 days after the statement was mailed to you, you may not get back any money lost after the 60 days if we can prove we could have stopped someone from taking the money if you had told us in time.

If a good reason (such as a long trip or hospital stay) kept you from telling us, we will extend the time period.

Liability for Unauthorized Transaction Involving Security Check Card.

The limitation of your liability for unauthorized transactions described above generally apply to all Electronic Fund Transfers. However, different limitations apply to certain transactions involving your Security Check Card. These limits apply to unauthorized transactions processed on the MasterCard Network.

If you notify us of an unauthorized transaction involving your Security Check Card or any unauthorized transactions that took place on the MasterCard Network, your liability will be zero ($0.00). We may increase the limit of your liability for such unauthorized transactions if we reasonably determine, based on substantial evidence, that you are grossly negligent or fraudulent in the handling of your account of your Security Check Card.

IN CASE OF ERRORS OR QUESTIONS
ABOUT YOUR TRANSACTIONS

Call Security Federal Credit Union at the telephone number or write to the address appearing on your Periodic Statement or at the end of this Agreement as soon as you can if you believe your Periodic Statement or receipt is wrong, or if you need more information about a transaction listed on the Periodic Statement or receipt in order to assert an error. Security Federal Credit Union must hear from you no later than 60 days after it sent you the FIRST Periodic Statement on which the problem or error appeared. You must do all of the following:

1. Give Security Federal Credit Union your name and the account number of your account involved (if any).
2. Describe the error or the transaction you are not sure about and explain as clearly as you can why you believe it is an error or why you need the information.
3. Give Security Federal Credit Union the dollar amount of the suspected error.

If you give Security Federal Credit Union oral notice, you will be required to send in your complaint or question in writing within 10 business days. If Security Federal Credit Union does not receive your complaint or question in writing within 10 business days (20 days for point of sale or foreign transaction), it might not credit your account during its investigation. Security Federal Credit Union will investigate the matter and tell you the results of its investigation within 10 business days after it hears from you and will correct any error promptly. If Security Federal Credit Union needs more time, however, it may take up to 45 days (90 days for point of sale or foreign transaction) to investigate your complaint or question. If Security Federal Credit Union decides to do this, it will credit your account within 10 business days for the amount which you think is in error, so that you will have the use of the money during the time it takes Security Federal Credit Union to complete its investigation. If the alleged error has occurred within 30 days after the first deposit to the account was made, Security Federal Credit Union will have 20 days instead of 10 days to investigate and tell you the results and/or to credit your account, as described in this paragraph, and/or 90 days instead of 45 days to investigate your complaint or question. The 90 day time period also replaces the 45 day period if the notice of error involves an electronic fund transfer that was not initiated within the United States or resulted from a point of sale debit card transaction.

If Security Federal Credit Union determines that there was no error, it will send you a written explanation within 3 business days after it completes its investigation. You may ask for copies of the documents Security Federal Credit Union used in its investigation.

GENERAL RULE

You may be responsible for money taken from your account by use of the ATM if:

1. You write your PIN on your Card.
2. You keep your PIN with your Card.
3. You voluntarily give your Card and PIN to someone who takes money out of your account without your permission.

DISPUTES REGARDING
POINT OF SALE TRANSACTIONS

Security Federal Credit Union will reverse an EFT transfer resulting from a point of sale transaction at a participating Merchant and recredit your account for the full amount of the transfer if all of the following occur:

1. You provide notice to Security Federal Credit Union of having made a good faith attempt to seek redress and make an assurance to Security Federal Credit Union of the return to the participating Merchant of related goods in dispute, where returnable goods are involved.
2. The amount of the transaction is $50 or more.
3. Within 4 calendar days following the transaction, Security Federal Credit Union receives from you during Security Federal Credit Union’s normal business hours a written or oral request for the reversal. You must also verify any oral reversal order, notice and assurance in writing within 14 calendar days following oral notification, on a form to be provided by Security Federal Credit Union for that purpose. If written verification is not furnished, Security Federal Credit Union will reinstate the original debits and credits involved in the transaction. Security Federal Credit Union’s lien impressment rights apply with regard to any overdraft which occurs due to these transactions.

LIABILITY FOR FAILURE TO COMPLETE
EFT TRANSFERS

If Security Federal Credit Union does not properly complete an EFT transfer to or from your account on time or in the correct amount in accordance with the terms of this Agreement, it will be liable for your losses or damages. However, there are some exceptions. Security Federal Credit Union will not be liable, for instance:

• If, through no fault of Security Federal Credit Union, you do not have enough money in your account to make the transfer or if your funds are subject to legal process or other legal encumbrance.
• If Security Federal Credit Union has terminated this Agreement or the transaction would exceed your established credit line.
• If the ATM or any part of the system supporting the operation of the ATM was not working properly and you know of the breakdown when you began the transaction or at some time during the processing of the transaction.
• If the ATM where you attempted to make the transaction did not have enough cash to allow the transaction.
• When your Card or PIN has been reported lost or stolen or Security Federal Credit Union has reason to believe that a transaction has not been properly authorized.
• When, despite reasonable precautions taken by Security Federal Credit Union, an act of God or other circumstances beyond its control, interferes with or prevents the transaction.
• When Security Federal Credit Union receives inaccurate or incomplete information needed to complete a transaction.
• If any necessary authorizations for completing the EFT transfer have been revoked by an operation of law.
• In the case of preauthorized transfers, Security Federal Credit Union will not be liable where there was a breakdown of the system which would normally handle the transfer at the time that the transfer should have occurred.
• There may be other exceptions provided by applicable law.

DISCLOSURE OF INFORMATION TO THIRD PARTIES

In the ordinary course of business, we will only disclose the information concerning your “account” or Electronic Fund Transfers as described above effecting your accounts (1) as provided by law, or (2) with your permission and written consent, or (3) to furnish credit information under the Federal Fair Credit Reporting Act, or (4) if necessary, to verify your complete Electronic Fund Transfers, or (5) to verify the existence of your account (as an appearance), or (6) if the information relates to improper use of your accounts, or (7) to comply with government agencies or court orders.

REFUSAL TO HONOR CARD

Security Federal Credit Union is not liable for the refusal or inability of any electronic terminal, person or vendor to honor your ATM Card or your Security Check Card or to complete a withdrawal from your account or from the retention of your Card. The Credit Union is also not responsible for the refusal of any merchant, or financial institution, to honor the ATM Card or Security Check Card or for the retention of either card.

FOREIGN TRANSACTIONS

If you effect transactions with your Security Check Card or Security Federal ATM Card in a currency other than US dollars, MasterCard International Inc., will convert the charge into a US dollar amount. At MasterCard International they use a currency conversion procedure, which is disclosed to institutions that issue MasterCard. Currently the currency conversions rate used by MasterCard International to determine the transaction amount in US dollars for such transactions is generally either a government mandated rate or wholesale rate, determined by MasterCard International for the processing cycle in which the transaction is processed, increased by an adjustment factor established from time to time by MasterCard International. The currency conversion rate used by MasterCard International on the processing date may differ from the rate that would have been used on the purchase date or the cardholder statement posting date. You may also be charged a 1% conversion fee.

ILLEGAL TRANSACTIONS

Your Security Check Card may not be used for on-line gambling or other illegal transactions. The Credit Union, in its discretion, may refuse to honor any transaction to your account for on-line gambling or illegal transactions.

CREDIT REPORTS

Your signature(s) on this application acknowledges your receipt of the attached Electronic Fund Transfer Agreement and Disclosure. I (We) have read all the terms and conditions which accompany this application. Furthermore, we agree that Security Federal Credit Union may obtain a credit report prior to or anytime during which we hold a ATM Card or Security Check Card with the Credit Union.

ELECTRONIC COMMUNICATIONS

If this Electronic Services and Electronic Fund Transfer Disclosure has been provided to you through electronic communication, by initiating the first transaction subject to this Disclosure, you are certifying and acknowledging that you agreed with Security Federal Credit Union to accept this Disclosure electronically instead of in writing and that this Disclosure was accepted by you in a format that allowed you to see the text on equipment such as a personal computer monitor.

REGULATORY AGENCY

If you believe that we may have violated the Michigan Law regulating electronic fund transfers or Federal Law, you may contact:

The National Credit Union Administration
Region I (Albany)
9 Washington Square, Washington Avenue Extension
Albany, NY 12205