Membership and Account Agreement 
This Agreement covers your and our rights and responsibilities concerning Accounts the Credit Union (Credit Union) offers. In this Agreement, the words "you" and "yours" mean anyone who signs a Signature Card, which is any membership application recorded with the credit union, including any Account Update. The words "we", "us", and "our" mean the Credit Union. The word "account" means any one or more share or other accounts you have with the Credit Union.
Your account type(s) and ownership features are designated on your Signature Card. By signing a Signature Card, each of you, jointly and severally, agree to the terms and conditions in this Agreement, Signature Card, the Funds Availability Disclosure, Rate Sheet, Fee Schedule, if applicable, Electronic Funds Transfer Transaction Disclosure, and any Account Receipt accompanying this Agreement, and the Credit Union's Bylaws and policies, and any amendments of these documents from time to time which collectively govern your Membership and Accounts.

1. Membership Eligibility and Information. To join the Credit Union you must meet the membership requirements including purchase and maintenance of at least one (1) share ("membership share") as set forth in the Credit Union's Bylaws. You authorize us to check your account, credit, and employment history, and obtain reports from third parties, including credit reporting agencies, to verify your identity and/or eligibility for the accounts and services you request. You authorize us to contact your employer and obtain information we need and you consent to release of that information to us.

2. Identification. As a credit union responsible for the safety and security of members' funds, Tower may require at least two forms of acceptable identification to conduct financial transactions. Circumstances may further require that the identification presented be approved by management.

Important Information about Procedures for Opening a New Account 
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.

What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We will also ask to see your driver's license and/or other identifying documents.
 
3. Individual Accounts. An individual account is an account owned by one member (individual, corporation, partnership, trust or other organization) qualified for credit union membership. If the account owner dies, the interest passes, subject to applicable law, to the decedent's estate or Payable on Death (POD) beneficiary/payee or trust beneficiary, subject to other provisions of this Agreement governing our protection for honoring transfer and withdrawal requests of an owner or owner's agent prior to notice of an owner's death. The account is subject to the terms of the Maryland Multiple-Party Accounts law.
 
4. Joint Accounts. A Joint Account is subject to the Maryland Multiple-Party Accounts Law and includes joint accounts, POD accounts, and some trust accounts. An account owned by two or more persons is a joint account. A "party" is a person who possesses a present right to draw on funds in a joint account.

a. Rights of Survivorship. Unless otherwise stated on the Signature Card, a joint account includes rights of survivorship. This means when one party dies, all sums in the account will pass to the surviving party(ies). For an account without rights of survivorship, the deceased party's interest passes to his or her estate. A surviving party's interest is subject to the Credit Union's statutory lien for the deceased party's obligations, and to any security interest or pledge granted by a deceased party, even if a surviving party did not consent to it.

b. Control of Accounts. Any party is authorized and deemed to act for any other party(ies) and may instruct us regarding transactions and other account matters. Each party guarantees the signature of any other party(ies). Any party may withdraw all funds, stop payment on items, transfer, or pledge to us all or any part of the shares (except the membership share) without the consent of the other party(ies). We have no duty to notify any party(ies) about any transaction. We reserve the right to require written consent of all parties for any change to or termination of an account. If we receive written notice of a dispute between parties or inconsistent instructions from them, we may suspend or terminate the account, but are not required to, and require a court order or written consent from all parties to act before we take further action.

c. Liability of Parties on an Account. If a deposited item in a joint account is returned unpaid, an account is overdrawn, if we do not receive final payment on a transaction, or otherwise suffer a loss on an account, the parties, jointly and severally, are liable to us for the amount of the returned item, overdraft, unpaid amount, or loss and any charges, regardless of who initiated or benefited from the transaction. We may charge any account in which any party has an ownership interest, including individual accounts and joint owner accounts with other persons, for the amount of such liability. If any party is indebted to us for any reason, including, but not limited to, as borrower, drawer, guarantor, endorser, or otherwise, we may apply funds in or charge the joint account for the amount of the indebtedness and any charges, regardless of who contributed funds to the joint account and even if such charge creates an overdraft in the joint account. This means that if one party overdraws his or her individual account, the overdraft may be charged to any joint account in which he or she is a party, and, if funds are not available in the joint account to pay the overdraft, we may apply funds in or charge any individual account of any other party, or any joint account of any other party and another person or persons, for the amount of the joint account overdraft.

d. POD/Trust Account Designations. A Payable on Death (POD) account or trust account designation is an instruction to the Credit Union that a single or joint account so designated is payable to the party(ies) during his, her, or their lifetimes and, when the last party on an account dies, payable to any named and surviving POD payee or trust beneficiary. When there is more than one surviving beneficiary/payee the amounts in the account are owned jointly in equal shares by such beneficiaries/payees. Any POD or trust beneficiary/payee designation shall not apply to Individual Retirement Accounts (IRAs) which are governed by a separate beneficiary/payee designation. We are not obligated to notify any beneficiary/payee of the existence of any account or the vesting of the beneficiary/payee's interest in any account, except as otherwise provided by law.

e. Death of a Party. If two or more parties survive, and the surviving parties are members of the Credit Union, the account will remain a joint ownership account and the survivors each will own the account in full with survivorship rights. If the surviving parties are not members of the Credit Union, membership will be offered if Field of Membership eligibility requirements are satisfied as specified in the Credit Union's Bylaws. If the surviving parties are not eligible for membership, then the account will be closed and separate checks, in equal shares, will be made payable to the surviving parties. If only one party survives and the sole surviving party is a member of the Credit Union, the account will become an individual ownership account and funds will be transferred to the Prime Share account of the sole surviving party. If only one party survives and the sole surviving party is not a Credit Union member, membership will be offered if Field of Membership eligibility requirements are satisfied as specified in the Credit Union's Bylaws. If membership is accepted, then the funds will be transferred to the new member's Prime Share account. If the sole surviving party is not a credit union member, does not wish to become a member, or is not eligible for membership, then the account will be closed and a check will be made payable to the sole surviving party.
 
5. Accounts for Minors. We may require any account established by a minor to be a joint account with a member who has reached the age of majority under state law and who shall be jointly and severally liable to us for any returned item, overdraft, or unpaid charges, or losses or amounts on such account. We may take deposits from and pay funds directly to the minor without regard to his or her minority. Unless a guardian or parent is an account owner, the guardian or parent shall not have any account access rights. We have no duty to inquire about the use or purpose of any transaction. We will not change the account status when the minor reaches the age of majority, unless authorized in writing by the member account owner.
 
6. Uniform Transfers to Minors Account. A Uniform Transfers to Minors Account (UTMA), Custodial Account, is an individual account created by a custodian who deposits funds as an irrevocable gift to a minor. The minor to whom the gift is made is the beneficiary of the custodial property in the account. The custodian has possession and control of the account for the exclusive right and benefit of the minor and, barring a court order otherwise, is the only party entitled to make deposits, withdrawals, or close the account. We have no duty to inquire about the use or purpose of any transaction. If the custodian dies, we may suspend the account, until we receive instructions from any person authorized by law to withdraw funds or a court order authorizing withdrawal.
 
7. Agency Designation on an Account (Convenience Account). A Convenience Account is an instruction to us that the owner authorizes another person (Convenience Person) to make transactions as agent for the account owner regarding the accounts designated. A Convenience Person has no ownership interest in the account(s) or Credit Union voting rights. We have no duty to inquire about the use or purpose of any transaction made by the Convenience Person.
 
8. Deposit of Funds Requirements. Funds may be deposited to any account, in any manner approved by the Credit Union, in accordance with the requirements set forth in this agreement. We reserve the right to refuse any deposit in our sole discretion.

a. Endorsements. We may accept transfers, checks, drafts, and other items for deposit into any of your accounts if they are made payable to, or to the order of, one or more account owners even if they are not endorsed by all payees. You authorize us to supply missing endorsements of any owners if we choose. If a check, draft, or item that is payable to two or more persons is ambiguous as to whether it is payable to either or both, we may process the check, draft, or item as though it is payable to either person. If an insurance, government, or other check or draft requires an endorsement as set forth on the back of the check or draft, we may require endorsement as set forth on the item. Endorsements must be made on the back of the share draft or check within 1-1/2 inches from the top edge, although we may accept endorsements outside this space. However, any loss we incur from a delay or processing error resulting from an irregular endorsement or other markings by you or any prior endorser will be your responsibility. By giving, whether orally or in writing, a third party information about your account (for example, your account number or the MICR information appearing at the bottom of your checks), you are authorizing those parties to generate withdrawal items withdrawing money from your account in the amounts they draw payable to whom they identify. All withdrawal items generated by third parties who have your account information are deemed to be authorized by you. You authorize us to honor those withdrawal items and we have no obligation to recredit your account.

b. Collection of Items. We act only as your agent and we are not responsible for handling items for deposit or collection beyond the exercise of ordinary care. Deposits made by mail or at unstaffed facilities are not our responsibility until we receive them. We are not liable for the negligence of any correspondent or for loss in transit, and each correspondent will only be liable for its own negligence. We may send any item for collection. Items drawn on an institution located outside the United States are handled on a collection basis only. You waive any notice of nonpayment, dishonor, or protest regarding items we purchase or receive for credit or collection to your account.

c. Final Payment. All items or Automated Clearing House (ACH) transfers credited to your account are provisional until we receive final payment. If final payment is not received, we may charge your account for the amount of such items or ACH transfers and impose a return item charge on your account. Any collection fees we incur may be charged to your account. We reserve the right to refuse or return any item or funds transfer.

d. Direct Deposits. We may offer preauthorized deposits (e.g., payroll checks, Social Security or retirement checks, or other government checks) or preauthorized transfers from other accounts. You must authorize each direct deposit or preauthorized transfer by filling out a separate form. You must notify us at least thirty (30) days in advance to cancel or change a direct deposit or transfer option. Upon a bankruptcy filing, unless you cancel an authorization we will continue making direct deposits in accordance with your authorization on file with us. If we are required to reimburse the U.S. Government for any benefit payment directly deposited into your account, we may deduct the amount returned from any of your accounts, unless prohibited by law.

e. Crediting of Deposits. Deposits made after the deposit cutoff time and deposits made on either holidays or days that are not our business days will be credited to your account on the next business day.

9. Account Access.

a. Authorized Signature. Your signature on the Signature Card authorizes your account access. We will not be liable for refusing to honor any item or instruction if we believe the signature is not genuine. If you have authorized the use of a facsimile signature, we may honor any draft that appears to bear your facsimile signature even if it was made by an unauthorized person. You authorize us to honor transactions initiated by a third person to whom you have given your account number even if you do not authorize a particular transaction.

b. Access Options. You may withdraw or transfer funds from your account(s) in any manner we permit (e.g., at an automated teller machine, in person, by mail, automatic transfer, or telephone, as applicable). We may return as unpaid any draft drawn on a form we do not provide, and you are responsible for any loss we incur handling such a draft. We have the right to review and approve any form of power of attorney and may restrict account withdrawals or transfers. We are under no obligation to honor any power of attorney.

c. ACH & Wire Transfers. If we provide the service, you may initiate or receive credits or debits to your account through wire or Automated Clearing House (ACH) transfer. You agree that if you receive funds by a wire or ACH transfer, we are not required to notify you at the time the funds are received. Instead, the transfer will be shown on your periodic statement. We may provisionally credit your account for an ACH transfer before we receive final settlement. We may reverse the provisional credit or you will refund us the amount if we do not receive final settlement. When you initiate a wire transfer, you may identify either the recipient or any financial institution by name and by account or identifying number. The Credit Union (and other institutions) may rely on the account or other identifying number as the proper identification even if it identifies a different party or institution.

d. Credit Union Examination. We may disregard information on any draft or check, other than the signature of the drawer, the amount and any magnetic encoding. You agree we do not fail to exercise ordinary care in paying an item solely because our procedures do not provide for sight examination of items.
 
10. Account Rates and Fees. We pay account earnings and assess fees against your account as set forth in the Rate Sheet and Fee Schedule. We may change the Rate Sheet and Fee Schedule at any time and will notify you as required by law.
 
11. Transaction Limitations.

a. Withdrawal Restrictions. We permit withdrawals only if your account has sufficient available funds to cover the full amount of the withdrawal or you have an established overdraft protection plan. Drafts or other transfer or payment orders which are drawn against insufficient funds may be subject to a service charge set forth in the Fee Schedule. If there are sufficient funds to cover some, but not all, of your withdrawal, we may allow those withdrawals for which there are sufficient funds in any order at our discretion.

We may refuse to allow a withdrawal in some situations, and will advise you accordingly; for example: (1) a dispute between account owners (unless a court has ordered the Credit Union to allow the withdrawal); (2) a legal garnishment or attachment is served; (3) the account secures any obligation to us; (4) required documentation has not been presented; and (5) you fail to repay a Credit Union loan on time. We may require you to give written notice of seven (7) days to sixty (60) days before any intended withdrawals.

b. Transfer Limitations. For Share Savings and Money Market accounts, if applicable, you may make up to six (6) preauthorized, automatic, telephonic, or audio response transfers to another account of yours or to a third party during any calendar month. Of these six, you may make no more than three (3) transfers to a third party by check or debit card. Any checks in excess of three (3) per month drawn on a money market account will be returned. A preauthorized transfer includes any arrangement with us to pay a third party from your account upon oral or written orders including orders received through the Automated Clearing House (ACH). You may make unlimited transfers to any of your accounts or to any Credit Union loan account and may make withdrawals in person, by mail, or at an ATM. However, we may refuse or reverse a transfer that exceeds these limitations and may assess fees against, suspend or close your account.

If we have been notified, or we reasonably believe there is a legitimate dispute among any parties who have or claim an interest in your account, including the Credit Union, we may, at our discretion: (i) continue to rely on the signature cards, resolutions, and other account documents in our possession, (ii) freeze all or any portion of the funds we deem appropriate until the dispute is resolved; (iii) pay the funds into an appropriate court of law or equity for resolution; (iv) honor the competing claim upon receipt of evidence we deem satisfactory to justify such claim; or (v) close the account and pay any proceeds to: (a) all who have or claim an interest in the account, or (b) the account owner(s) as indicated in our records. In addition, we may, at our option, commence a lawsuit to determine the ownership of your account.

The Credit Union's right to freeze or place a hold on your account includes prohibiting any type of withdrawal or transfer from the account and/or preventing any deposits or credits from being made to the account. The Credit Union's right to freeze or place a hold on your account shall also apply if the Credit Union, in good faith, believes: (i) it has a claim against the account owner(s) or the funds in the account or something has occurred or is reasonably expected to occur which will result in the Credit Union having a claim or dispute against the account owner(s) or the funds in the account; or (ii) that placing a hold on the account will best protect the interest of any one of the members or signers on the account; or (iii) placing a hold on the account would protect the Credit Union from any claims regarding disposition of the funds in the account. You further agree that, as a result of a hold placed on an account, the Credit Union shall have no liability based on any item which is returned unpaid, causes the account to go into overdraft status, results in any item being declared "NSF" or causes any other loss or damage to you.
 
12. Certificate Accounts. Any time deposit, term share, share certificate, or certificate of deposit account allowed by state law (Certificate Account), whichever we offer, is subject to the terms of this Agreement, Rate Sheet, Fee Schedule, and Share Certificate Account Agreement for each account the terms of which are incorporated herein by reference.
 
13. Overdrafts.

a. Payment of Overdrafts. If, on any day, the available funds in your share or deposit account are not sufficient to pay the full amount of a check, draft, item, transaction or other items posted to your account plus any applicable fee (“overdraft”), we may pay or return the overdraft.The credit union’s determination of an insufficient available account balance may be made at any time between presentation and the credit union’s midnight deadline with only one review of the account required.We do not have to notify you if your account does not have sufficient available funds to pay an overdraft.Your account may be subject to a charge for each overdraft regardless of whether we pay or return the overdraft. Except as otherwise agreed in writing, if we exercise our right to use our discretion to pay an overdraft,we do not agree to pay overdrafts in the future and may discontinue covering overdrafts at any time without notice. If we pay an overdraft or impose a fee that overdraws your account, you agree to pay the overdrawn amount in accordance with your overdraft protection plan or, if you do not have such a plan, in accordance with our overdraft policy.

b. Order of Payments. Checks, drafts, items and other transactions may be processed in the order that you make them or in the order that we receive them.We may, at our discretion, pay a check, draft or item and execute other transactions on your account in any order we choose.The order in which we process checks, drafts and items and execute other transactions on your account may affect the total amount of overdraft fees that may be charged to your account. Please contact us if you have questions about how we pay checks and drafts and process transfers and withdrawals.
 
14. Postdated and Staledated Drafts. We may pay any draft without regard to its date unless you notify us of a postdating. The notice must be given to us in time so that we can notify our employees and reasonably act upon the notice and must accurately describe the draft, including the exact number, date, and amount. You understand that the exact information is necessary for the Credit Union's computer to identify the draft. We are not responsible if you give us an incorrect or incomplete description, or untimely notice. You may make an oral or written notice which is effective until the earlier of the date written on the draft or six (6) months and may be renewed in writing from time to time. You agree not to deposit checks, drafts, or other items before they are properly payable. We are not obligated to pay any check or draft drawn on your account which is presented more than six (6) months past its date.
 
15. Stop Payment Orders.

a. Stop Payment Order Request. You may request a stop payment order on any draft drawn on your account. If provided in writing, to be binding an order must be dated and describe the account and draft number and the exact amount. The stop payment will be effective if the Credit Union receives the order in time for the Credit Union to act upon the order and you state the number of the account, number of the draft, and its exact amount. You understand that the exact information is necessary for the Credit Union's computer to identify the draft. If you give us incorrect or incomplete information, we will not be responsible for failing to stop payment on the draft. If the stop payment order is not received in time for us to act upon the order, we will not be liable to you or to any other party for payment of the draft. If we recredit your account after paying a draft over a valid and timely stop payment order, you agree to sign a statement describing the dispute with the payee, to transfer to us all of your rights against the payee or other holders of the draft, and to assist us in any legal action.

b. Duration of Order. You may make an oral or written stop payment order which is effective for six (6) months and may be renewed in writing from time to time. We do not have to notify you when a stop payment order expires.

c. Liability. Fees for stop payment orders are set forth on the Fee Schedule. You may not stop payment on any certified check, cashier's check, teller's check, or any other check, draft, or payment guaranteed by us. Although payment of an item may be stopped, you may remain liable to any item holder, including us. You agree to indemnify and hold the Credit Union harmless from all costs, including attorney's fees, damages, or claims related to our refusing payment of an item under your stop payment order, including claims of any joint account owner, payee, or indorsee, or related to in failing to stop payment of an item as a result of incorrect information provided by you.
 
16. Credit Union Liability. If we do not properly complete a transaction according to this Agreement, we will be liable for your losses or damages not to exceed the amount of the transaction, except as otherwise provided by law. We will not be liable if: (1) your account contains insufficient funds for the transaction; (2) circumstances beyond our control prevent the transaction; (3) your loss is caused by you or another financial institution's negligence; or (4) your account funds are subject to legal process or other claim. We will not be liable for consequential damages, except liability for wrongful dishonor. We exercise ordinary care if our actions or nonactions are consistent with applicable state law, federal reserve regulations and operating letters, clearinghouse rules, and general banking practices followed in the area we serve. You grant us the right, in making payments of deposited funds, to rely exclusively on the form of the account and the terms of this Account Agreement. Any conflict between what you or our employees may say or write will be resolved by reference to this Agreement.
 
17. Credit Union Lien and Security Interest. If you owe us money as a borrower, guarantor, endorser, or otherwise, we have a statutory lien on the account funds in any account in which you have an ownership interest, regardless of their source, unless prohibited by law. We may apply these funds, without further notice to you, in any order to pay off your indebtedness. By not enforcing a lien, we do not waive our right to enforce it later. In addition, you grant the Credit Union a consensual security interest in your accounts and we may use the funds from your accounts to pay any debt or amount now or hereafter owed the Credit Union, except for obligations secured by your residence, unless prohibited by applicable law. All accounts are nonassignable and nontransferable to third parties.
 
18. Legal Process. If any legal action is brought against your account, we may pay out funds according to the terms of the action or refuse any payout until the dispute is resolved. Any expenses or attorney fees we incur responding to legal process may be charged against your account without notice, unless prohibited by law.
 
19. Account Information. Upon request, we will give you the name and address of each agency from which we obtain a credit report regarding your account. We agree not to disclose account information to third parties except when: (1) it is necessary to complete a transaction; (2) the third party seeks to verify the existence or condition of your account in accordance with applicable law; (3) such disclosure complies with the law or a government agency or court order; or (4) you give us written permission.
 
20. Notices.

a. Name or Address Changes. You are responsible for notifying us of any address or name change. The Credit Union is only required to attempt to communicate with you at the most recent address you have provided to us. We require all notices from you to us be provided in writing. We may impose a fee as set forth in the Fee Schedule when mail is returned because of an invalid address.

b. Notice of Amendments. Except as prohibited by applicable law, we may change the terms of this Agreement. We will notify you of any changes in terms, rates, or fees as required by law. We reserve the right to waive any term in this Agreement. Any such waiver shall not affect our right to future enforcement.

c. Effect of Notice. Any written notice you give us is effective when we receive it. Any written notice we give to you is effective when it is deposited in the U.S. Mail, postage prepaid and addressed to you at your statement mailing address. Notice to any account owner is considered notice to all account owners.
 
21. Taxpayer Identification Numbers and Backup Withholding. Your failure to furnish a correct Taxpayer Identification Number (TIN) or meet other requirements may result in backup withholding. If your account is subject to backup withholding, we must withhold and pay to the Internal Revenue Service (IRS) a percentage of dividends, interest, and certain other payments. If you fail to provide your TIN, we may suspend or deny opening your account, or, if applicable, you may request a non-dividend or non-interest bearing account until a TIN is provided.
 
22. Statements.

a. Contents. If we provide a periodic statement for your account, you will receive a periodic statement of transactions and activity on your account during the statement period as required by applicable law. If a periodic statement is provided, you agree that only one statement is necessary for a joint account. For share draft or checking accounts, you understand and agree that your original draft, when paid, becomes property of the Credit Union and may not be returned to you, but copies may be retained by us or payable through financial institutions and made available upon your request. You understand and agree that statements are made available to you on the date they are mailed to you. You also understand and agree that drafts or copies thereof are made available to you on the date the statement is mailed to you, even if the drafts do not accompany the statement.

b. Examination. You are responsible for examining each statement and reporting any irregularities to us. We will not be responsible for any forged, altered, unauthorized or unsigned items drawn on your account if (1) you fail to notify us sixty (60) days of the mailing date of the earliest statement regarding any forgery, alteration or unauthorized signature on any item described in the statement; or (2) any items are forged or altered in a manner not detectable by a reasonable person, including the unauthorized use of a facsimile signature machine.

c. Notice to Credit Union. You agree that the Credit Union's retention of drafts does not alter or waive your responsibility to examine your statements or the time limit for notifying us of any errors. The statement will be considered correct for all purposes and we will not be liable for any payment made or charge to your account unless you notify us in writing within the above time limit for notifying us of any errors. If you fail to receive a periodic statement you agree to notify us within fourteen (14) days of the time you regularly receive a statement.
 
23. Inactive Accounts. If your account falls below any applicable minimum balance and you have not made any transactions over a period specified in the Fee Schedule we may classify your account as inactive. Unless prohibited by applicable law, we may charge a service fee set forth on the Fee Schedule for processing your inactive account. You authorize us to transfer funds from another account of yours to cover any service fees, if applicable. To the extent allowed by law, we reserve the right to transfer the account funds to an account payable and to suspend any further account statements.
 
24. Escheat Accounts. Under Maryland law your account will be considered inactive if within the past three (3) years you have not: (1) deposited to or withdrawn from your account; (2) presented a passbook or other similar evidence of your account for crediting of interest or dividends; (3) written to us about your account or otherwise expressed an interest in your account as evidenced by a memorandum in our files; or (4) engaged in any credit or deposit transactions with us. We will notify you when your account becomes inactive. If you fail to respond to this notice within thirty (30) days, state law requires us to send all funds in your account to the state of Maryland as abandoned property. Unless prohibited by applicable law, we may charge a service fee set forth in the Fee Schedule for processing your escheat account.
 
25. Denial of Services. Any member who has caused Tower a loss may be denied all credit union products and services except for their ability to maintain a Prime Share account and to vote in annual or special meetings. A member may also be denied products and services if their account is not maintained in a manner in accordance with our account agreements and normal financial practices.
 
26. Special Account Instructions. You may request that we facilitate certain trust, will, or court-ordered account arrangements. However, because we do not give legal advice, we cannot counsel you as to which account arrangement most appropriately meets the specific requirements of your trust, will, or court order. If you ask us to follow any instructions that we believe might expose us to claims, lawsuits, expenses, liabilities, or damages, whether directly or indirectly, we may refuse to follow your instructions or may require you to indemnify us or post a bond or provide us with other protection. Account changes requested by you, or any account owner, such as adding or closing an account or service, must be evidenced by a signed Account Update form and accepted by us.
 
27. Termination of Account. We may terminate your account at any time without notice to you or may require you to close your account and apply for a new account if: (1) there is a change in owners or authorized signers; (2) there has been a forgery or fraud reported or committed involving your account; (3) there is a dispute as to the ownership of the account or of the funds in the account; (4) any share drafts are lost or stolen; (5) there are excessive returned unpaid items not covered by an overdraft protection plan; (6) there has been any misrepresentation or any other abuse of any of your accounts; or (7) we reasonably deem it necessary to prevent a loss to us. You may terminate an individual account by giving written notice. We reserve the right to require the consent of all owners to terminate a joint account. We are not responsible for payment of any draft, withdrawal, or other item after your account is terminated, however, if we pay an item after termination, you agree to reimburse us.
 
28. Termination of Membership. You may terminate your membership by giving us notice. You may be denied services or expelled for any reason allowed by applicable law, including causing a loss to the Credit Union.
 
29. Death of Account Owner. We may continue to honor all transfer orders, withdrawals, deposits, and other transactions on an account until we are notified of a member's death. Once we are notified of a member's death, we may pay drafts or honor other payments or transfer orders authorized by the deceased member for a period of ten (10) days after that date unless we receive instructions from any person claiming an interest in the account to stop payment on the drafts or other items in accordance with this Agreement. We may require anyone claiming a deceased owner's account funds to indemnify us for any losses resulting from our honoring that claim. This Agreement will be binding upon any heirs or legal representatives of any account owner.
 
30. Severability. If a court holds any portion of this Agreement to be invalid or unenforceable, the remainder of this Agreement shall not be invalid or unenforceable and will continue in full force and effect. All headings are intended for reference only and are not to be construed as part of the Agreement.
 
31. Enforcement. You are liable to us for any loss, cost or expense, including reasonable attorney's fees, we incur resulting from your failure to follow this Agreement. You authorize us to deduct any such loss, costs, or expenses from your account without prior notice to you. If we bring a legal action to collect any amount due under or to enforce this Agreement, we shall be entitled, subject to applicable law, to payment of reasonable attorney's fees and costs, including fees on any appeal, bankruptcy proceedings, and any post-judgment collection actions.
 
32. Governing Law. This Agreement is governed by the Credit Union's Bylaws, federal laws and regulations, the laws, including applicable principles of contract law, and regulations of the state in which the Credit Union's main office is located, and local clearinghouse rules, as amended from time to time. As permitted by applicable law, you agree that any legal action regarding this Agreement shall be brought in the county in which the Credit Union is located.
 
33. Checking Sub-Account Structure. Your checking account is structured as a master account with a checking sub-account and a savings sub-account. Funds not rountinely needed to pay debits may be transferred to the savings sub-account. Tower may periodically transfer funds between these two sub-accounts. This process will not affect your available account balance, the dividends you may earn, your monthly statement, your National Credit Union Administration insurance protection, or any other feature of your checking account(s).

Truth-In-Savings Disclosures 

Except as specifically described, the following disclosures apply to all of the accounts. All accounts described in this Truth-In-Savings Disclosure are share accounts.

Rate Information. The Annual Percentage Yield is a percentage rate that reflects the total amount of dividends to be paid on an account based on the dividend rate and frequency of compounding for an annual period. For all accounts, the Dividend Rate and Annual Percentage Yield may change at any time as determined by the Credit Union's Board of Directors. The Dividend Rates and Annual Percentage Yields are the prospective rates and yields that the Credit Union anticipates paying for the applicable dividend period.The Money Market Account is a Tiered Rate account. If your Daily Balance is from $0 to $2,499.99, the first Dividend Rate and Annual Percentage Yield for this account will apply. If your Daily Balance is $2,500 or greater, the second Dividend Rate and Annual Percentage Yield for this account will apply. Once a particular range is met, the Dividend Rate and Annual Percentage Yield for that balance range will apply to the full balance of your account. You may refer to the Rate Sheet provided with this disclosure for each applicable Annual Percentage Yield and Dividend Rate.

Nature of Dividends. Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period.

Dividend Computation, Compounding, and Crediting. Dividends are calculated by the daily balance method which applies a daily periodic rate to the balance in the account each day. The compounding and crediting frequency of dividends for all accounts is monthly. The Dividend Period is the period of time at the end of which an account earns dividend credit. The dividend period for all accounts begins on the first day of the calendar month and ends on the last day of the calendar month.

Accrual of Dividends. For all accounts, dividends will begin to accrue on noncash deposits (e.g., checks) on the business day you make the deposit to your account.

Balance Information. To open any account, you must deposit or already have on deposit at least the par value of one full share in a Prime Share (Savings) account. In accordance with the Credit Union's bylaws, the par value of one share is established at $5. When the Daily Balance of the Prime Share (Savings) account is reduced below the par value of one share at any point in time, the Credit Union may transfer funds from another share account on which the Primary Member is an owner. When the Daily Balance of the Prime Share (Savings) account is reduced below the par value of one share and sufficient funds are not present in another share account on which the Primary Member is an owner, the Credit Union, at its discretion, may assess the Prime Share (Savings) account a below minimum balance fee of up to $4.99. In addition, the Credit Union may terminate your membership until a sufficient deposit is made to meet the required par value of one share. The account statement will serve as the notice that the account has fallen below the minimum balance requirement, and the first charge will be applied thirty (30) days after mailing of that statement. If you have a loan secured by the Prime Share (Savings) account, additional credit advances will be prohibited, and you shall be denied any account services; however, you will be allowed to pay on the loan as agreed.

Account Limitations. For Prime Share (Savings), Money Market, Holiday Club, and "You Name It" Club accounts, no more than six (6) pre-authorized, automatic, or telephone transfers may be made from each account to another account or to a third party in any month, and no more than three (3) of these six (6) transfers may be made by check, draft,or debit card to a third party. If you exceed these limitations, your account may be subject to a fee or be closed. For Holiday Club accounts, the entire balance will be transferred to another account of yours on or after October 1st and the account will remain open. For all accounts, cash withdrawals of $2,500 or more require advance notice of at least five (5) business days. This will insure that sufficient cash is available to satisfy your withdrawal request. Notwithstanding any other provision, the Credit Union may, at any time, require at least sixty (60) days prior written notice of an intention to withdraw or transfer funds from the account.

Fees for Overdrawing Accounts. Fees may be imposed on each check, draft, item,ATM card withdrawal, debit card point of purchase, preauthorized automatic debit, telephone initiated withdrawal or any other electronic withdrawal or transfer transaction that is drawn on an insufficient available account balance.The entire balance in your account may not be available for withdrawal, transfer or paying a check, draft or item. You may consult the Funds Availability Policy for information regarding the availability of funds in your account. Fees for overdrawing your account may be imposed for each overdraft, regardless of whether we pay or return the draft, item or transaction. If we have approved an overdraft protection limit for your account, such fees may reduce your approved limit. Please refer to the Fee Schedule for current fee information.

Loan Disclosures 

Bill Consolidation, Education Loans, and Signature/Co-Applicant Loans
The Annual Percentage Rate (APR) for variable-rate advances is based on the average rate of the 2-year Treasury Bill for the first full business week of the month preceding the rate change (Index), rounded up to the nearest 1/10th of 1 percent, plus assigned basis points (BP) shown in the "Basis Points Above Index" column above.

The APR for new advances and existing balances is subject to change quarterly on the first day of each January, April, July and October to reflect any change in the Index. The APR will not increase or decrease more than 1% per quarter, or 4% per year.

The Minimum index rate is 7.25%. The maximum APR will never exceed the rate permitted under the Federal Credit Union Act. Any increase in the APR will result in more payments at the same amount, except those classes of loans with terms of 84 months or more.

Minimum Payments are never less than $30 every Month.
 
Certificate Secured Loans

Extended Term Certificate Loans: The Annual Percentage Rate (APR) will be adjusted periodically to remain 3% over the dividend rate of the Tower Federal Credit Union Share Certificate, which is set at the discretion of Tower Federal Credit Union.
 
MasterCard Disclosures

Finance Charges - Finance Charges on purchases are computed by applying the monthly periodic rate to the "Average Daily Balance of Purchases" in your account during the billing cycle covered by the periodic statement. To get your "Average Daily Balance of Purchases," we take the beginning balance of your purchases each day, add any new purchases, and subtract any payments or credits and any unpaid Finance Charges. This gives us the daily balance. Then we add all the daily balances of purchases for the billing cycle together and divide the total by the number of days in the billing cycle. This gives us the "Average Daily Balance of Purchases."

Finance Charges are imposed on cash advances from the date the cash advance is posted to your account until the cash advance is paid in full. The Finance Charge for cash advances is computed by applying the daily periodic rate to the "Average Daily Balance of Cash Advances" and multiplying the product by the number of days in the cycle. To get your "Average Daily Balance of Cash Advances," we take the beginning balance of cash advances each day, add any new cash advances, and subtract any payments or credits and any unpaid Finance Charges. This gives us the Average Daily Balance of Cash Advances. Then, we add up all the daily balances of cash advances for the billing cycle and divide the total by the number of days in the billing cycle.

Minimum monthly payments will be either:

1. 2% of your total new balance, or $15 whichever is greater, or
2. Your total new balance, if less than $15, plus
3. Any portion of the minimum payment(s) shown on the prior statement(s) which remains unpaid.

 
Home Equity Line of Credit

Variable Rate Feature: This plan has a variable rate feature and the annual percentage rate, (corresponding to the periodic rate) minimum payment and/or the length of the plan may change. The annual percentage rate includes only interest and no other costs.

The annual percentage rate is based on the value of an index. The index is the Prime Rate published in the Wall Street Journal. When a range of rates has been published, the highest rate is used. We will use the most recent index value available to us as of 3 days before the date of any annual percentage rate adjustment.

Margin: To determine the annual percentage rate that will apply to your account we add a margin to the value of the index. The margin that will apply to your plan will be based on your loan-to-value ratio. The margin for a loan-to-value equal to or less than 80% will be -1/2%. The margin for a loan-to-value greater than 80% will be +1%.

Repayment of Closing Costs: Closing costs paid by Tower must be repaid if you close the line of credit within the first 24 months.

Rate Changes: The annual percentage rate can change quarterly on the eleventh day of January, April, July, and October. There is no limit on the amount by which the annual percentage rate can change during any one year period. The maximum ANNUAL PERCENTAGE RATE that can apply is 18%.

Minimum Payment Requirements: During the 15 year draw period, your minimum payment will be the finance charge due. The minimum payment during the draw period will not repay the principal that is outstanding on the line. Your payment will be rounded up to the nearest dollar. During the draw period, if the interest rate increases, your minimum payment will increase. During the 15 year repayment period, your minimum payment will be equal to 1.5% of the outstanding balance at the end of the draw period.

During both the draw and repayment periods, your payment will never be less than the smaller of $50, or the full amount you owe.

Call or visit the credit union for complete terms of our home equity line of credit plan.
 
Personal Line of Credit, EZLine

EZLine Personal Line of Credit Variable Interest Rate. The Annual Percentage Rate (APR) is based on the Prime Rate (Index) as listed in the "Money Rates" section of the Wall Street Journal. The rate will be determined as of the third (3rd) Monday of the month preceding any Annual Percentage Rate adjustment, plus the applicable percentage listed above. The APR may change on the first day of each quarter (January, April, July, October) to reflect any change in the Index. The interest rate will never exceed 18% APR, or the maximum permitted under the Federal Credit Union Act, whichever is less. Any increase in the APR may result in an increase in your payment amount until what you owe has been repaid.

Minimum Payment: Your minimum payment is the greatest of: (1) 2% of the New Balance; or (2) $30; or (3) the New Balance, if the New Balance is less than $30. The "Payment Due Date" is approximately 20 days from the "Closing Date" of the billing period.

Funds Availability 

Tower's policy is to provide our members with the quickest access to the funds from their deposits as is reasonably possible. However, based on the type of item presented for deposit, a hold may be required. Many items are available for immediate credit, others are available on a partial or delayed credit basis for a one (1) to nine (9) day hold period. This hold period is the number of business days that funds in your account (either from a deposited item or cashed item) are not available to you.

Determining the Availability of a Deposit. The length of delay is counted in business days from the day of your deposit. Every day is a business day except, Saturday, Sunday, and federal holidays.

If a deposit is made at a Tower ATM before 12:00 noon on a day that the Credit Union is open, that day will be considered to be the day of deposit. However, if a deposit is made at a Tower ATM after 12:00 noon or on a day when the Credit Union is not open, the deposit will be considered made on the next business day the Credit Union is open.

If a deposit is made to a Tower 24-hour Depository or Express Deposit machine before 3:00 p.m. on a day that the Credit Union is open, that day will be considered the day of deposit. However, if a deposit is made after 3:00 p.m., or on a day when the Credit Union is not open, the deposit will be considered made on the next business day the Credit Union is open.

Immediate Availability. If you make a deposit in person or through the mail, funds from the following deposit items, if payable directly to you, are available on the same day as your deposit:

• Cash
• U.S. Treasury checks
• Money orders
• Checks drawn on a Federal Reserve Bank or Federal Home Loan Bank
• State and local government checks
• Cashier’s, certified, travelers, or teller’s checks
• Tower share drafts and other Tower checks (“on-us checks”)
• Insurance checks
• Payroll checks if easily and clearly identified as such
• Any check or portion of a check used to make a payment on a Tower loan obligation (the remaining portion would be subject to normal holds). In the event of a returned check, the funds will be added back to the outstanding loan balance.

Standard Hold*. Deposit items which are not classified in the Immediate Availability or Exceptions Hold categories are subject to a Standard Hold. If you make a deposit in person or through the mail, funds from these deposit items are made available on the following basis:

• Available Immediately—The first $500 of check(s) deposited are available immediately. However, at ATMs the immediate availability is $250.
• Available Next Day—The aggregated amount of deposit by check(s) in excess of $500 up to $5,000 will be held one (1) business day.
• Available Sixth Day—The aggregated amount of a deposit or deposits by check(s), in excess of $5,000, will be held five (5) business days.

Exception Hold*. Deposit items in this category will be held either six (6) days if a local check or nine (9) days if a non-local check. A local check is defined as a check deposited in the same Federal Reserve check processing region as Tower Federal Credit Union. A non-local check is defined as a check deposited in Tower Federal Credit Union but where the paying institution is located in a different check processing region. This category includes check(s) that are deposited under the following circumstances:

• Re-deposited checks*—The check being deposited has been presented before and returned.
• Repeated overdrafts*—You have had excessive NSF/Overdrafts on your Tower account(s) in the last six (6) months.
• Reasonable cause to doubt collectibility (DC);
  • We received notice* that the check is being returned unpaid.
  • We have received information* that gives us reason to believe that the check is uncollectible. (Stop payment, insufficient funds, etc.)
  • The check is staledated or postdated. (stale/postdated)*
  • We have confidential* information that indicates that the check may not be paid.
  • Emergency* conditions exist which may include: interruption of communications, computer failure, or other equipment failures; suspension of payments by another financial institution; a war; or other emergency conditions beyond the control of the depositary financial institution.

Restricted Service Hold*. We will notify you in writing if you are placed on restricted services and the reason(s) for this. Your check(s) will be held either six (6) days local or nine (9) days non-local.

*The Credit Union will provide notice if the ability to withdraw funds is delayed for any of these reasons and will state when the funds will be available. The reason(s) for the extended hold will be printed on your receipt under the amount of any check being deposited.

PLEASE NOTE: If the Credit Union cashes or accepts for deposit a check that is drawn on another financial institution, funds from the deposit may be available for withdrawal immediately but the ability to withdraw a corresponding amount of funds on deposit in one of your accounts with the Credit Union may be delayed. The funds would then not be available for withdrawal until the time periods that are described above for the type of check deposited.

The staff that accepts your deposits normally do not have the authority to waive or override Tower’s check hold policies. If you have a question or a concern about a hold, please see the Branch Manager for additional clarification.

See the Fee Schedule, Rate Sheet, and the rest of this Agreement for additional account terms.

Fee Schedule 
The credit union’s Fee Schedule sets forth the service charges or fees that may be imposed for maintenance, activity, overdrafts, return of unpaid withdrawal items or deposits, or other service fees applicable to your account. The Fee Schedule, which has been provided within this Agreement, is subject to amendment from time to time, and is available upon request. Some of these fees and charges may be reduced or avoided through your actions.

TOWER'S PHILOSOPHY ON FEES
Tower exists to provide superior value to our members. One way that we do this is to provide products and services for as little cost as possible. At Tower, we don't believe in hidden fees. All of our fees are referenced here. If you compare our fee schedule with other financial institutions, you'll be pleased with the results.

Checking and Money Market Account
If you overdraw your account, there is a $20 fee for each occurrence. Check certification is available for $5 per check. Stop payments are $7.50 each. Copies of canceled checks are $3 each. Copies of your statement are $2 per page up to a maximum of $5 per statement month. Pricing of specialty checks is available upon request. The first time you require assistance balancing your account, there is no charge. Subsequent requests are charged at the rate of $3 per quarter hour. Assistance is free to visually impaired .

Prime Share Account
If your Prime Share account falls below $5 for six consecutive months, a below minimum balance fee, equal to the balance in the account, will be assessed and the account will be closed.

ATM/Debit Card
If you use a non-Tower ATM, there is a $.75 fee for each transaction, including cash advances, inquiries and transfers. Replacement cards are $5 each and replacement PINs are $2. Copies of sales drafts are $3 each. The cross-border transaction fee is up to 1% of the transaction.

Bill Payment
The online service is free if you make three or more bill payments within a calendar month, otherwise the cost is $2.95 per calendar month. There is a $25 fee for each bill payment you stop. There is a $20 fee each time there are non-sufficient funds in your checking account to cover a transaction. Fees will automatically be deducted from your Payment account.

Funds Transfer
Inbound 3-day transfers are free; next-day transfers are $5. Outbound: 3-day transfers are $3; next-day transfers are $5.

MasterCard®
If your account is over the limit or payment is received 14 days after the due date, your MasterCard account will be charged $10. A replacement card charge is $5. Copies of sales drafts are $3 each and copies of your statement are $2 per page up to a maximum of $5 per statement month. If you use your MasterCard to obtain a cash advance at an ATM, there will be a $.75 fee. The cross-border transaction fee is up to 1% of the transaction.

American Express Travelers Cheques
Travelers cheques are priced at 1% of the purchase amount. Gift cheques are $2.50 each.

Miscellaneous Fees
Returned deposit due to non-sufficient funds (NSF) automatically charged to your account: $7.50 each. Outgoing wires: $10 each. Money orders: $1.50 each. Gift cards: $1.75 each. Foreign check deposit pricing depends on the amount, type of currency and financial institution of check. Garnishment/IRS levy fee: $75. Notary service (non-members): $2 per item. Inactive member fee (members over 22 with less than $100 deposit balance and no account activity in a 12-month period): $3 per quarter. Invalid address fee: $10 per quarter. Escheat fee (applies to accounts closed due to a 3-year period of inactivity): $20. Non-member cashing Tower check at a branch: $5 per item. Debits against savings accounts that are NSF: $20 each. Exceeding regulatory transaction limit fee: $20.

Fees are subject to change at any time without notice, except as required by law or regulation.

Electronic Funds Transfer (EFT) Transactions 
 
Tower Talk 24 and Home Banking Agreement
In this Agreement, the words "you" and "your" mean each person who applies for Tower Talk 24 and Tower's Home Banking service. The words "Credit Union" and "Tower" mean Tower Federal Credit Union. The words "account" and "accounts" mean those Tower accounts that are accessible with a PIN/password and the Tower Talk 24 and Home Banking services. The word "transaction" means an electronic funds transfer.

This Agreement defines your responsibilities and the Credit Union's responsibilities with respect to telephone and personal computer-initiated transactions. It is understood that the agreements and rules and regulations applicable to your accounts remain in effect and continue to be applicable, except as specifically modified by this Agreement. By signing the application for Tower Talk 24 and Home Banking, and/or using a PIN/password to conduct transactions, you agree to the terms of this Agreement.

PIN/Password Choice. The Credit Union will issue you an initial PIN/password to use when you access Tower Talk 24 for the first time. You will then be prompted to change your PIN. Your Tower Talk 24 PIN/password will be your PIN/password for the Credit Union's Home Banking service. Login and change your Home Banking PIN/password to one of your own choosing immediately after your Home Banking service is activated. If you do not use Home Banking, it may become inactive until you contact the Credit Union to reactivate your Home Banking service. The Credit Union will have no record of the PIN/password you select. You should not write your PIN/password on any paper which identifies what it is or on any paper with your account numbers or Social Security number. You agree not to give or make available your PIN/password to any other individuals. If you elect to share your PIN/password with any other person, including, but not limited to, the joint owner of your account, you do so at your risk, and not at Tower's risk. By electing to share your PIN/password with another person, you have authorized that person to conduct transactions with your accounts, including to transfer funds out of all of your accounts. You are liable for these transactions; Tower is not. If you give your PIN/password to the joint owner of your account, the joint owner will have access to all of your other Tower accounts, even accounts which are not joint accounts or which are joint with other persons. If you believe that your password has been compromised, you must immediately change your password and notify Tower that your password was compromised. Contact Tower immediately at 301-497-7000 or 800-787-8328.

PIN/Password Use. You may access your accounts by telephone through Tower Talk 24 or by personal computer through the Credit Union's Home Banking service using your PIN/password to conduct transactions. You agree to follow the instructions on use of Tower Talk 24 and Home Banking. These instructions will be considered part of the Agreement. Your PIN/password may only be used to access those accounts that you have requested and the Credit Union has approved for access through Tower Talk 24 and Home Banking. If by mistake, the use of your PIN/password permits you to withdraw funds from any account that you should not be allowed to use, the Credit Union may charge the amount involved to a valid account. Your PIN/password may not be used to overdraw any account. If you use your PIN/password to overdraw an account, then you owe the Credit Union the amount immediately—plus any service charge. The Credit Union also may deduct, without prior notification to you, the amount owed from any of your Tower accounts, or, if you have a Tower loan account, the overdrawn amount will be considered as a request for a loan advance, at the discretion of the Credit Union.

Transactions. By using your member number and PIN/password, you may transfer funds among your accounts and to other Tower member accounts that are linked for access to Tower Talk 24 or Home Banking, as well as make payments on your Credit Union loan accounts. You may also request a wire transfer be made from your account using the Wire Transfer Request Form in Home Banking. You agree that use of your member number and PIN/password shall constitute sufficient verification of your identity.

Under normal circumstances, all Tower Talk 24 and Home Banking transactions will be posted to your accounts within 24 hours.

Responsibility. You are responsible for all transactions made on your accounts with your PIN/password through Tower Talk 24 and Home Banking by anyone, including unauthorized transactions, subject to the limitations of applicable law. Legal limitations on your liability for unauthorized transactions are summarized below in the "Electronic Funds Transfers Disclosures" section. The Credit Union has no obligation to monitor the use of your PIN/password or notify you if unusual activity (regarding any of your accounts which may be assessed through a PIN/password) is noted.

Termination and Amendment. The Credit Union may terminate or cancel your use of Tower Talk 24 and Home Banking at any time. The Credit Union may give notice of termination or cancellation, but is not obligated to do so. Your PIN/password may not be used with Tower Talk 24 and Home Banking after termination. You may terminate or cancel the use of your PIN/password with Tower Talk 24 and Home Banking by giving the Credit Union written notice. Your written notice of termination will become effective no later than the end of the first business day following the Credit Union's receipt of notice. The termination of your Tower Talk 24 and Home Banking access will not affect any liability incurred by you prior to termination. The Credit Union may change this Agreement at any time by mailing a copy of the changes to your current account statement address. Unless the Credit Union is required to give advance notice by law, changes are effective on the date changes are mailed. Use of a PIN/password after the effective date of the change will acknowledge your acceptance of that change.

System Malfunction. You will not attempt to make a transaction when Tower Talk 24 or the Home Banking system informs you (or other circumstances give you a reason to believe) that the system is closed or is not operating properly due to a technical malfunction or is unable to initiate the desired transaction.

Equipment and Technical Requirements. To use Tower Talk 24 and Home Banking, you must have the necessary telephonic and electronic equipment. To use Home Banking you must have Internet access, such as a PC with a modem. It is your responsibility to acquire the equipment, software, and Internet service necessary to use the Home Banking service.

Limitation of Liability for Equipment and Viruses. The Credit Union is not responsible for any errors or failures caused by the malfunction of your equipment, software (including anti-virus software) or Internet access. The Credit Union also is not responsible for any computer viruses caused by use of the Home Banking service.

Collection Expenses. If the Credit Union has to file a lawsuit to collect what is owed by you, you will pay any reasonable expenses incurred by the Credit Union, including, but not limited to, outside collection agency fees and attorney's fees.

Agreement Controls. Both the Credit Union and you will be bound by this Agreement. If there is a conflict between the Agreement and something said by the Credit Union's employees, you agree that this Agreement controls. This Agreement is governed by the internal laws of Maryland and federal law.

Joint Account Owner(s). If one or more joint account holders signed the application for Tower Talk 24 or Home Banking service, then the words "you" and "your" also include joint account holders and joint account holders agree to all of the terms of this Agreement, except that joint account holders are not issued PIN/Passwords and may not make transactions. All joint account holders who sign the application for Tower Talk 24 and Home Banking consent to all transactions conducted by or authorized by the primary account holder and are jointly and severally responsible together with the primary account holder for all transactions conducted by the primary account holder. Joint account holders shall hold Tower harmless for any and all transactions made by anyone who is authorized on the account.

Agreement to Transact Business and Receive Disclosures by Electronic Means. The nature of the Home Banking Service requires all transactions to be conducted via the Internet and/or the World Wide Web. By clicking to mark the "I accept" box at the time of your first login to the Home Banking service, you agree that your Payment Account and its use in connection with the Service will be conducted by electronic means, that we may provide this Agreement, amendments, periodic statements, and other communications regarding the Service electronically in a format that allows visual text to be displayed on your personal computer or other electronic equipment, and that the initial disclosures, periodic statements, and change-in-terms notices required by Regulation E of the Electronic Funds Transfer Act may be sent to you electronically. Unless this Agreement provides otherwise, all documents delivered electronically will be effective when we transmit them to your Electronic Address as shown in our records unless we state a later effective date. We will mail you the most recent version of this disclosure upon your written request for no charge. Your consent to electronic delivery of disclosures applies only to the Service. You can send us messages electronically via the application's e-messaging feature. Generally, electronic messages sent and received via the application's e-messaging feature are secure, assuming you have logged on to the Service correctly and your Internet browser shows that a secured connection has been established. You may withdraw your consent to electronic delivery of disclosures by sending us a message electronically via the application's e-messaging feature. Otherwise, you may withdraw your consent to electronic delivery of disclosures by sending us notice in writing and sent by certified or registered United States mail, return receipt requested, postage prepaid, to Tower Federal Credit Union, Attention: MSC - Electronic Services, P.O. Box 123, Annapolis Junction, Maryland 20701-0123. Communications sent over the public Internet are not always secure. Accordingly, we strongly suggest that you do not send confidential information concerning the Service unless using the application's e-messaging feature. You agree that we may respond to any electronic message that you send to us via the application's e-messaging feature or Internet e-mail and that we may include in our response to you confidential information. However, we reserve the right not to respond to questions that you send via Internet e-mail and, instead, to respond to you in another manner. You may update the information we need to contact you electronically by sending us an e-mail as described above. Otherwise, send us notice of the updated information as described above.
 
eStatements
As a Home Banking user, you have the option to access your Credit Union share account and loan periodic statements online, also called eStatements. If you choose this option, you no longer will receive statements by mail with the exception of your MasterCard® credit card account monthly statements, if applicable. From the time you sign up for eStatements, your online statements will be available to you for eighteen (18) months after you are notified that they are available prior to being purged. We will alert you of the availability of your eStatements by sending you an e-mail notice at the electronic address as shown in your records. By changing your e-mail address in the “user options” in Home Banking, you will change your e-mail notice address. The e-mail notice will identify the account involved and the location where the eStatement is available. You will retrieve your own eStatements by accessing Home Banking with your personal password. It is your responsibility to maintain the proper equipment/software that will enable you to view, print, and save these statements for your records. To access and retain the electronic disclosures, you will need the hardware and software currently required for access to Home Banking. These requirements can be found on Tower's Home Page at towerfcu.org under Home Banking Login. From the Home Banking Hints & Help menu, select “Trouble Logging In?” By consenting to receive eStatements, you acknowledge that you are able to access the electronic disclosures online. You may order duplicate paper copies for the fee shown in the Fee Schedule. The Fee Schedule can be found by clicking on “Fee Schedule” on Tower’s Home Page at towerfcu.org. You may discontinue eStatements at any time and get paper statements instead. You must notify Tower prior to the last business day of the month, excluding Saturdays, to discontinue eStatements for that month. If you notify Tower after the last business day of the month, excluding Saturdays, your eStatements will not be discontinued until the following month. To discontinue eStatements you must notify Tower electronically via the Home Banking e-messaging feature or in writing sent by certified or registered United States mail, return receipt requested, postage prepaid, to Tower Federal Credit Union, Attention: MSC-Electronic Services, P.O. Box 123, Annapolis Junction, Maryland 20701-0123. You also agree it is your responsibility to examine each statement and report any irregularities to Tower within sixty (60) days after receiving the e-mail alerting you that the statement is available.

Fees. We will charge you the following amounts for each transfer you make using the Funds Transfer service:

Incoming transfer to Tower account (3 days)        Free
Incoming transfer to Tower account (next day)     $5
Outgoing transfer from Tower account (3 days)     $3
Outgoing transfer from Tower account (next day)  $5

There are no fees to cancel a pending transfer request (as long as such cancellation is made within the time period permitted by the Funds Transfer service cancellation policies). In all cases, limits and conditions placed on account transactions by Tower, according to the Fee Schedule, apply to transfers made using Funds Transfer. The cost of each transfer will automatically be debited from the Tower account that you are using to transfer money to/from an external account.

Limitations on Transactions. The daily transfer limit for transfers made using the Funds Transfer service is $2,000, which is a combined limit for inbound and outbound transfers. The total monthly transfer limit is $5,000, which is based on a rolling 30-day period. The minimum transfer amount for any Funds Transfer is $10.

Prohibited Transfers. Transfers to accounts outside of the United States or its territories are prohibited through the Funds Transfer service.

Charging your Payment Account; Available Balances to Make Transactions. You authorize us to charge the Tower account used to perform the Funds Transfer for each transaction you request and you agree to have sufficient funds available in that account for this purpose. If any Funds Transfer transaction you request, including applicable fees, exceeds the balance of available collected funds in the account selected to perform the Funds Transfer, we need not make such transaction and shall incur no liability to you for such inaction.

Cancellation of Service. Funds Transfer may be cancelled at anytime you wish. You may cancel your Funds Transfer account by clicking on 'unsubscribe' from the Edit Profile page in Funds Transfer or by sending Tower an e-mail through E-mail Manager in Home Banking at towerfcu.org. You may fax or mail your written request to close your Funds Transfer account or you may visit any branch location. The fax number is 301-497-8930. Any written requests must be mailed to: Tower Federal Credit Union, Attn: MSC ­ Electronic Services, P.O. Box 123, Annapolis Junction, Maryland 20701-0123.

Cross Member Transfer Agreement and Disclosures
Cross Member Transfer service allows you to use your online Home Banking or Tower Talk 24 telephone service to transfer money from your account to the accounts of other Tower Federal Credit Union members. This is a one-way transfer and you cannot transfer funds from another member's account back to your account. Only main or primary members 18 years old or older may authorize Cross Member Transfers using Tower's Electronic Cross Member Transfer Authorization Form. Members under the age of 18 are required to complete a paper authorization form with an adult joint owner's signature.

When activated, the accounts you have registered will appear in the drop-down box within the account transfer option in Home Banking. You do not need a new PIN/password for Home Banking Cross Member Transfer.

When you complete a Cross Member Transfer, you cannot reverse it, even if you have made an error in the amount or the account to which you made the transfer.

Circumstances in Which Information Will Be Disclosed to Third Parties. If you transfer funds from your accounts to the accounts of other members via Cross Member Transfer in Home Banking or Tower Talk 24, Tower will disclose the following information to the account holder(s) to whom you make the transfer: your account number, suffix, and the transfer amount.

You authorize Tower Federal Credit Union to transfer sums of money as designated from your account to the account numbers listed on the Cross Member Transfer Authorization form when requested through online Home Banking or Tower Talk 24 service. When you authorize Cross Member Transfer in Home Banking, you automatically authorize Tower Talk 24 Cross Member Transfer. Tower's Home Banking and Tower Talk 24 agreements apply to Cross Member Transfers.
 
 
Bill Payment Service Agreement and Disclosures
Checkfree Terms and Conditions of the Bill Payment Service
The Bill Payment Service is provided through Tower’s Home Banking product by CheckFree Corporation. Checkfree requires acceptance of the following terms and conditions which have been incorporated into Tower’s Member Account Agreements.

Service Definitions

“Service” means the Bill Payment Service offered by Tower Federal Credit Union, through CheckFree Services Corporation.

“Agreement” means these Terms and Conditions of the Bill Payment Service.

“Payee” is the person or entity to which you wish a bill payment to be directed or is the person or entity from which you receive electronic bills, as the case may be.

“Payment Instruction” is the information provided by you to the Service for a bill payment to be made to the Payee (such as, but not limited to, Payee name, Payee account number, and Payment Due Date).

“Payment Account” is the checking account from which bill payments will be debited.

“Billing Account” is the checking account from which all Service fees will be automatically debited.

“Bill Payment Month” is the period of time starting with the first calendar day of the previous month to the last calendar day of that same month.

“Business Day” is every Monday through Friday, excluding Federal Reserve holidays.

“Payment Due Date” is the Business Day your Payment Account will be debited and is also the day the payment will arrive at the payee, unless the Payment Due Date falls on a non-Business Day in which case it will be considered to be the previous Business Day.

“Due Date” is the date reflected on your Payee statement for which the payment is due. It is not the late date or grace period.

“Scheduled Payment” is a payment that has been scheduled through the Service but has not begun processing.

Payment Scheduling. Transactions begin processing four (4) business days prior to the Payment Due Date you entered in Bill Payment and will arrive approximately on the Due Date.

The Service Guarantee. Due to circumstances beyond the control of the Service, particularly delays in handling and posting payments by Payees or financial institutions, some transactions may take longer to be credited to your account. The Service will bear responsibility for any late payment related charges up to $50 should a payment post after its Due Date as long as the payment was scheduled in accordance with the guidelines described under "Payment Scheduling" in this Agreement.

Payment Authorization and Payment Remittance. By providing the Service with names and account information of Payees to whom you wish to direct payments, you authorize the Service to follow the Payment Instructions that it receives through the payment system. In order to process payments more efficiently and effectively, the Service may edit or alter payment data or data formats in accordance with Payee directives.

When the Service receives a Payment Instruction, you authorize the Service to debit your Payment Account and remit funds on your behalf so that the funds arrive as soon as reasonably possible after the Payment Due Date designated by you. You also authorize the Service to credit your Payment Account for payments returned to the Service by the Post Office or Payee, or payments remitted to you on behalf of another authorized user of the Service.

The Service will use its best efforts to make all your payments properly. However, the Service shall incur no liability and any Service Guarantee shall be void if the Service is unable to complete any payments initiated by you because of the existence of any one or more of the following circumstances:

1. If, through no fault of the Service, your Payment Account does not contain sufficient funds to complete the transaction or the transaction would exceed the credit limit of your overdraft account;
2. The payment processing center is not working properly and you know or have been advised by the Service about the malfunction before you execute the transaction;
3. You have not provided the Service with the correct Payment Account information, or the correct name, address, phone number, or account information for the Payee; and/or
4. Circumstances beyond control of the Service (such as, but not limited to, fire, flood, or interference from an outside force) prevent the proper execution of the transaction and the Service has taken reasonable precautions to avoid those circumstances.

Provided none of the foregoing exceptions are applicable, if the Service causes an incorrect amount of funds to be removed from your Payment Account or causes funds from your Payment Account to be directed to a Payee which does not comply with your Payment Instructions, the Service shall be responsible for returning the improperly transferred funds to your Payment Account, and for directing to the proper Payee any previously misdirected transactions, and, if applicable, for any late payment related charges.

Payment Methods. The Service reserves the right to select the method in which to remit funds on your behalf to your Payee. These payment methods may include, but may not be limited to, an electronic payment, an electronic to check payment, or a laser draft payment.

Payment Cancellation Requests. You may cancel or edit any Scheduled Payment (including recurring payments) by following the directions within the application. There is no charge for canceling or editing a Scheduled Payment. Once the Service has begun processing a payment it cannot be canceled or edited; therefore, a stop payment request must be submitted.

Stop Payment Requests. The Service's ability to process a stop payment request will depend on the payment method and whether or not a check has cleared. The Service may also not have a reasonable opportunity to act on any stop payment request after a payment has been processed. If you desire to stop any payment that has already been processed, you must contact Customer Service. Although the Service will make every effort to accommodate your request, the Service will have no liability for failing to do so. The Service may also require you to present your request in writing within fourteen (14) days. The charge for each stop payment request will be the current charge for such service as set out in the applicable fee schedule.

Prohibited Payments. Payments to Payees outside of the United States or its territories are prohibited through the Service.

Exception Payments. Tax payments and court ordered payments may be scheduled through the Service; however, such payments are discouraged and must be scheduled at your own risk. In no event shall the Service be liable for any claims or damages resulting from your scheduling of these types of payments. The Service Guarantee as it applies to any late payment related changes is void when these types of payments are scheduled and/or processed by the Service. The Service has no obligation to research or resolve any claim resulting from an exception payment. All research and resolution for any misapplied, mis-posted, or misdirected payments will be the sole responsibility of you and not of the Service.

Bill Delivery and Presentment. This feature is for the presentment of electronic bills only and it is your sole responsibility to contact your Payees directly if you do not receive your statements. In addition, if you elect to activate one of the Service's electronic bill options, you also agree to the following:

Information provided to the Payee—The Service is unable to update or change your personal information such as, but not limited to, name, address, phone numbers, and e-mail addresses with the electronic Payee. Any changes will need to be made by contacting the Payee directly. Additionally it is your responsibility to maintain all user names and passwords for all electronic Payee sites. You also agree not to use someone else's information to gain unauthorized access to another person's bill.

Activation—Upon activation of the electronic bill feature the Service may notify the Payee of your request to receive electronic billing information. The presentment of your first electronic bill may vary from Payee to Payee and may take up to sixty (60) days, depending on the billing cycle of each Payee. Additionally, the ability to receive a paper copy of your statement(s) is at the sole discretion of the Payee. While your electronic bill feature is being activated it is your responsibility to keep your accounts current. Each electronic Payee reserves the right to accept or deny your request to receive electronic bills.

Notification—The Service will use its best efforts to present all of your electronic bills promptly. In addition to notification within the Service, the Service may send an e-mail notification to the e-mail address listed for your account. It is your sole responsibility to ensure that this information is accurate. In the event you do not receive notification, it is your responsibility to periodically login to the Service and check on the delivery of new electronic bills. The time for notification may vary from Payee to Payee. You are responsible for ensuring timely payment of all bills.

Cancellation of electronic bill notification—The electronic Payee reserves the right to cancel the presentment of electronic bills at any time. You may cancel electronic bill presentment at any time. The timeframe for cancellation of your electronic bill presentment may vary from Payee to Payee. It may take up to sixty (60) days, depending on the billing cycle of each Payee. The Service will notify your electronic Payee(s) as to the change in status of your account and it is your sole responsibility to make arrangements for an alternative form of bill delivery. The Service will not be responsible for presenting any electronic bills that are already in process at the time of cancellation.

Non-Delivery of electronic bill(s)—You agree to hold the Service harmless should the Payee fail to deliver your statement(s). You are responsible for ensuring timely payment of all bills. Copies of previously delivered bills must be requested from the Payee directly.

Accuracy and dispute of electronic bill—The Service is not responsible for the accuracy of your electronic bill(s). The Service is only responsible for presenting the information we receive from the Payee. Any discrepancies or disputes regarding the accuracy of your electronic bill summary or detail must be addressed with the Payee directly.

This Agreement does not alter your liability or obligations that currently exist between you and your Payees.

Exclusions of Warranties. THE SERVICE AND RELATED DOCUMENTATION ARE PROVIDED “AS IS” WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

Password and Security. You agree not to give or make available your password or other means to access your account to any unauthorized individuals. You are responsible for all payments you authorize using the Service. If you permit other persons to use the Service or your password or other means to access your account, you are responsible for any transactions they authorize. If you believe that your password or other means to access your account has been lost or stolen or that someone may attempt to use the Service without your consent or has transferred money without your permission, you must notify the Service at once by calling 301-497-7000 or 800-787-8328 during customer service hours.

Your Liability for Unauthorized Transfers. If you tell us within two (2) Business Days after you discover your password or other means to access your account has been lost or stolen, your liability is no more than $50 should someone access your account without your permission. If you do not tell us within two (2) Business Days after you learn of such loss or theft, and we can prove that we could have prevented the unauthorized use of your password or other means to access your account if you had told us, you could be liable for as much as $500. If your monthly financial institution statement contains transfers that you did not authorize, you must tell us at once. If you do not tell us within sixty (60) days after the statement was sent to you, you may lose any amount transferred without your authorization after the sixty (60) da