Great SLFCU service – even when you’re far from home.

ALBUQUERQUE, NM AREA Mailing Address PO Box 23040 Albuquerque, NM 87192-1040

Phone Center 505.293.0500 or 800.947.5328 (800.94.SLFCU)

Credit Union Center 3707 Juan Tabo NE, 87111

Fax 505.237.3737 877.256.3737 toll-free

Cottonwood 3740 Ellison Road NW, 87114

Email [email protected]

Edgewood 150 State Road 344, Suite B Edgewood, NM 87015

Website & Online Banking www.slfcu.org

Goodrich (Inside Goodrich Corporation)

6600 Gulton Court NE, 87109 Kirtland Wyoming & I Street, KAFB, 87117 Los Lunas 2700 Palmilla Road NW Los Lunas, NM 87031 Paseo del Norte (at Ventura) 8920 Holly NE, 87122

Wire Transfer or Set-Up Direct Deposit Use ABA Routing # 307083911 28,000 No-Fee ATMs Nationwide ATM Locator at www.slfcu.org or 888.748.3266 (888.SITE.CO.OP) 4,000 Shared Branch Locations Nationwide Shared Branching Locator at www.slfcu.org or 800.919.2872 (800.919.CUSC)

Tech Park 1301 Britt Street SE, 87123

YOUR SANDIA LABORATORY FEDERAL CREDIT UNION UNIVERSAL DISCLOSURE & MEMBER HANDBOOK

Federally insured by NCUA

LIVERMORE, CA Mailing Address PO Box 2908 Livermore, CA 94551-2908 Livermore East 7011 East Avenue, 94550 Livermore Downtown 39 South Livermore Avenue Suite 101, 94550

December 2011

Change in Terms Notice for Funds Availability Effective August 6, 2013 SLFCU is changing the funds availability for check deposits made at ATMs, Shared Branches, and through CU@home® Deposit, including mobile deposits. Members eligible for these services will have the following hold times apply for check deposits. This funds availability notice does not apply to check deposits at SLFCU branches or direct deposits.

Accounts that have been open 90 days or less: The first $200 of your deposit will be available immediately. Up to the next $4,800 (total of $5,000) will be available in two business days, and the remaining funds will be available in five business days.

Accounts that have been open longer than 90 days: The first $2,500 of your deposit will be available immediately. Up to the next $2,500 (total of $5,000) will be available in two business days, and the remaining funds will be available in five business days. This change notice will be incorporated into your Universal Disclosure. Please refer to the Funds Availability Policy in your Universal Disclosure for further hold policy information.

www.slfcu.org - 800.947.5328

(07/2013)

TABLE OF CONTENTS

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

GENERAL AGREEMENTS OF MEMBERS. . . . . . . . . . . . . . . 5 Joining the Credit Union. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Membership Requirements and Eligibility for Services . . . . 5 Denial of Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Meeting Your Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 If You Experience Financial Difficulty . . . . . . . . . . . . . . . . . . 7 Your Consent to Our Right to Recover Obligations from Shares (Right of Offset) . . . . . . . . . . . 8 Collection Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Fees and Damages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Governing Agreements and Laws . . . . . . . . . . . . . . . . . . . . 9 Backup Withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Electronic Service Options . . . . . . . . . . . . . . . . . . . . . . . . . 10 Change of Address. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Waiver; Modification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Revocable Authorization to Check Credit. . . . . . . . . . . . . . 11 Your Consent to the Terms of this Handbook . . . . . . . . . . 11 YOUR CREDIT UNION SHARE ACCOUNTS . . . . . . . . . . . . 11

General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Earnings and Payment of Dividends . . . . . . . . . . . . . . . 11 Account Ownership and Transfer of Proceeds at Death . . . . . . . . . . . . . . . . . . . . . . . . . 12 Changing Account Ownership or Beneficiaries . . . . . . . 15 Continuing Authorization to Open Accounts . . . . . . . . . 15 Our Obligation to Follow Your Instructions . . . . . . . . . . 15 Privacy and Disclosure of Information. . . . . . . . . . . . . . 16 Disclosure to Owners, Obligors, and Persons Authorized on Your Accounts . . . . . . . . . . . . . . . . . 16 Disclosures to Third Parties . . . . . . . . . . . . . . . . . . . . . 16 Deposits and Withdrawals. . . . . . . . . . . . . . . . . . . . . . . 17 Federal Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Dividend Calculation, Compounding, and Crediting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Permanent Records and Statement Review . . . . . . . . . 19 In Case of Errors or Inquiries about your Statement . . . . . . . . . . . . . . . . . . . . . . . 20 Other Errors or Inquiries . . . . . . . . . . . . . . . . . . . . . . . . 20 Electronic Transfer Errors or Unauthorized Use . . . . . . 21 Inactive Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Dormant Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Closing Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Escheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Our Handling Accounts In Case Of Your Death or Incompetence . . . . . . . . . . . . . . . . . . . . . 22

Savings Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Regular Savings Account . . . . . . . . . . . . . . . . . . . . . . . 23 Investors Choice Money Market Account . . . . . . . . . . . 23 1

HOW TO CONTACT US Call:

(800) 947-5328 or (505) 293-0500 7:30 a.m. to 6:00 p.m. Monday through Friday and 8:30a.m. to 2:00 p.m. Saturdays (Mountain Time) excluding holidays. Write to us at: Member Service Department Sandia Laboratory Federal Credit Union P.O. Box 23040 Albuquerque, NM 87192-1040 Visit us on the Web: WWW.SLFCU.ORG email: [email protected] Fax: (505) 237-3737 (877) 256-3737

You may also visit any Credit Union office. WHAT TO TELL US IN CASE OF ANY ERROR OR INQUIRY

1) Tell us your name;

2) Account number;

3) Describe the error or the transfer about which you are unsure;

4) Explain, as clearly as you can, why you believe there is an error;

5) Tell us the dollar amount;

6) The date in question; and

7) Your daytime telephone number.

© 2011 Greene & Allison LLP. All rights reserved

Term Share Certificate Accounts . . . . . . . . . . . . . . . . . . . . 23 Annual Percentage Yield (APY) Assumptions. . . . . . . . 23 Renewal at Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Transaction Limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Early Withdrawal Penalties . . . . . . . . . . . . . . . . . . . . . . 24 Rates and Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Individual Retirement Accounts . . . . . . . . . . . . . . . . . . . . . 24

Fiduciary Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Custodial Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Trusts Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Organizational Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Share Draft Checking Accounts. . . . . . . . . . . . . . . . . . . . . 27 General Checking Account Information . . . . . . . . . . . . 27 Checking Account Terms. . . . . . . . . . . . . . . . . . . . . . . . 27 Stale Dated Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Stop Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Lost or Stolen Checks. . . . . . . . . . . . . . . . . . . . . . . . . . 28 Overdrafts/Pre-Authorized and Approved Overdraft Protection . . . . . . . . . . . . . . . . . . . . . . . . 29 Privilege Pay Program . . . . . . . . . . . . . . . . . . . . . . . . . 32

SPECIAL SERVICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Credit Union Checks (Cashier, Teller or Certified Checks of the Credit Union) . . . . . . . . . . . . . 34 Wire Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Shared Branching . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

FUNDS AVAILABILITY POLICY . . . . . . . . . . . . . . . . . . . . . . 38 General Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Location of Check Endorsements . . . . . . . . . . . . . . . . . . . 39 ATM Deposits Funds Availability . . . . . . . . . . . . . . . . . . . . 39 Shared Branching Funds Availability . . . . . . . . . . . . . . . . . 40 CU@home® Deposit Funds Availability . . . . . . . . . . . . . . . 41

ELECTRONIC FUNDS TRANSFER AGREEMENT AND DISCLOSURE . . . . . . . . . . . . . . . . . . . . 42

Introduction/Scope of Services . . . . . . . . . . . . . . . . . . . . . 42 Consent to Terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Security of Your Accounts . . . . . . . . . . . . . . . . . . . . . . . . . 42 Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Services offering EFTs. . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 CU@home® On The Phone (Audio Response) . . . . . . 43 CU@home® Online and BillPayer. . . . . . . . . . . . . . . . . 45 Other Bill Payer Terms . . . . . . . . . . . . . . . . . . . . . . . . . 46 Electronic Payment Processing . . . . . . . . . . . . . . . . . . 47 Paper Check Processing. . . . . . . . . . . . . . . . . . . . . . . . 47 CU@home® Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 ATM Card or a MasterMoney® Check Card. . . . . . . . . . . . 49 Returns and Merchant Disputes . . . . . . . . . . . . . . . . . . 51 Liability for Unauthorized Use . . . . . . . . . . . . . . . . . . . . 51 Loss Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Additional Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 2

Automated Clearinghouse (ACH) Services . . . . . . . . . . . . 51 ACH Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Available ACH Services . . . . . . . . . . . . . . . . . . . . . . . . 52 Limitations on ACH Services. . . . . . . . . . . . . . . . . . . . . 52 Electronic Check Conversions. . . . . . . . . . . . . . . . . . . . . . 52 Procedure and Right to Stop ACH Payments. . . . . . . . 53 Notice of Payments in Varying Amounts. . . . . . . . . . . . 54 Error Correction for ACH Transactions . . . . . . . . . . . . . 54

Terms Applicable to All EFTs . . . . . . . . . . . . . . . . . . . . . . . 54 Responsibility for Transactions . . . . . . . . . . . . . . . . . . . 54 Prohibition on Unlawful Transactions . . . . . . . . . . . . . . 55 Documentation of Transactions. . . . . . . . . . . . . . . . . . . 55 Excess Withdrawals . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Unauthorized Transactions - All EFTs. . . . . . . . . . . . . . 56 Credit Union Liability for Failure to Complete Electronic Fund Transfers . . . . . . . . . . . . 57 Privacy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Change in Terms – Cancellation . . . . . . . . . . . . . . . . . . 59 Delayed Availability of Deposits . . . . . . . . . . . . . . . . . . 59 Additional Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 In Case of Errors or Questions about Your Electronic Transfers. . . . . . . . . . . . . . . . . . . . . 60

HOW TO CONTACT US . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

WHAT TO TELL US IN CASE OF ANY ERROR OR INQUIRY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

3

INTRODUCTION

Thank you for joining Sandia Laboratory Federal Credit Union. By signing a Membership Agreement, you agree to the terms in this Handbook that apply to the Credit Union services you select. Our mission is to provide a tailored array of convenient services to satisfy the financial needs of our members, and to provide these services with the highest possible level of technical and operational efficiency while keeping a close and caring touch with our members and employees.

Your Credit Union is a unique financial institution. Unlike a bank, a Credit Union is a non-profit financial cooperative owned by you and your fellow members. It is chartered, regulated and insured by the National Credit Union Administration, an agency of the United States government. You can participate in the democratic governance of the Credit Union by attending the annual meeting and electing the Board of Directors. This Handbook outlines your rights and obligations as a member-owner and contains the agreement that governs all of your Credit Union share accounts. We may disclose additional terms to you whenever you open a new account, in periodic statements we will send you, and in our Credit Union newsletter.

Your Credit Union also offers consumer loans, home mortgage loans, and home equity lines of credit. These loans will be subject to separate written agreements. Your general obligations as a Credit Union Member as explained in this Handbook apply to all agreements you make with the Credit Union. Not all of the terms spelled out in this Handbook apply to every account. Please refer to the sections that apply to the specific types of accounts or loans that you have with the Credit Union Keep this Handbook with your permanent records. The Credit Union may change the terms of your contracts with us by sending you written notice required by law. You should also keep any such notices with your permanent records.

4

GENERAL AGREEMENTS OF MEMBERS

Joining the Credit Union We require that you complete an original Membership Agreement to join the Credit Union. Membership Agreements are available at any Credit Union office or on our web site, www.slfcu.org. Once you qualify for membership and complete your Membership Agreement, we will open your requested accounts and begin accepting deposits immediately. To protect you and your Credit Union, we will not permit withdrawals or extend credit until your Membership Agreement is completed and processed at our offices. Although we will send mail to P.O. boxes or private mailbox addresses at your request, we must have the street address of your residence to open your membership. All new accounts will be opened in accordance with the USA Patriot Act. 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 that means for you: When you open an account, we will ask for your name, street address (and mailing address if different), date of birth, taxpayer identification number (usually your social security number) and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents. We will need to see appropriate photo identification on all new accounts. We will also need the appropriate identification when adding new joint owners without a prior SLFCU relationship to an existing member’s account(s). Terminology In this Handbook, “you” and “your” refer to the Credit Union member and any joint owner of a share account. “Member” refers to the person who signs a Membership Agreement in that capacity to join the Credit Union. “Joint owner” refers to a person designated by a Member as a co-owner of the Member’s Credit Union Account(s). “SLFCU,” “we,” “us,” and “our” refer to the Credit Union. This Handbook may refer to our share accounts as “savings” accounts, to our share draft accounts as “checking” accounts, and to our term share certificate accounts as “certificates” or “certificate accounts.” “Board” refers to the Credit Union’s Board of Directors. The singular implies the plural when an account has more than one owner. Membership Requirements and Eligibility for Services Provided you are within our field of membership, your completion of a Membership Agreement and deposit of $5.00 to a Regular Share Account makes you a Member of SLFCU and entitles you to apply for all of our savings and lending services. All loans, checking accounts and electronic funds transfer services are subject to approval. 5

Our field of membership includes the following groups: 1. Current and retired employees of Sandia National Laboratories. 2. Current and retired employees of Sandia Laboratory Federal Credit Union 3. Current and retired employees of other Select Employee Groups and members of select associations approved by our Board and the National Credit Union Administration.

If you belong to an eligible group, you can join Sandia Laboratory Federal Credit Union. Membership eligibility is extended only to individuals who are members of an immediate family or household of a Credit Union member. It is not necessary for the primary member to join the Credit Union in order for the immediate family or household member of the primary member to join. However, it is necessary for the immediate family member or household member to first join in order for that person’s immediate family member or household member to join the Credit Union. “Immediate family members” include spouses, children, siblings, grandparents, and grandchildren, as well as individuals who reside with a Member in a household that is maintained as a single economic unit.

Minors may join SLFCU and have savings and certificate accounts in their own names. Minors must have an adult joint account owner to be eligible for a checking account, a MasterMoney Check Card, or Electronic Fund Transfers (“EFTs”), and have an adult joint obligor to be eligible for loans. We reserve the right to require minors who have accounts without adult joint owners to have a photo identification bearing their signature.

Denial of Services As a Member-owned cooperative, SLFCU is your Credit Union. Members are expected to uphold high standards of honesty, personal responsibility and courtesy in dealing with the Credit Union, its employees and other Members. We reserve the right to deny all services except the right to maintain a regular share account and to vote, and if appropriate restrict your access to Credit Union premises, if any of the following occur: 1) You fail to meet your obligations to the Credit Union; 2) You fail to comply with applicable law and the Credit Union’s bylaws and rules as amended from time to time; 3) You are convicted of a crime in connection with business you conduct with the Credit Union; 4) You cause the Credit Union a loss in any way (including but not limited to loan charge-off, unrestored account overdrafts, or bankruptcy); 5) We learn after establishing your membership that we relied on false information in determining your eligibility; or 6) You fail to conduct your business with the Credit Union in a civil and business-like way. Violence or threats of violence or any forms of harassment against Credit Union 6

staff, volunteers or other Members will not be tolerated. If you fail to meet your obligations to us because of a bona fide emergency such as catastrophic illness, the Board of Directors may, at its sole option, allow you to maintain your membership privileges.

Meeting Your Obligations Your Credit Union strives to offer all Members the highest possible returns on savings and the lowest possible rates on loans, taking market conditions, safety and soundness concerns, and business needs into account. To make this possible, all Members must meet their obligations to SLFCU in a timely manner.

You agree to comply with the terms and conditions governing the Credit Union services you request.

You agree to be honest with SLFCU about your financial circumstances. You agree not to omit any material information from loan applications. You agree not to request credit or use credit cards or lines of credit if you have reason to believe you will be unable to make the required payments.

You will not allow SLFCU Savings or checking accounts you open to fall below a zero balance. If you do inadvertently overdraw any Savings or Checking account, and you do not have a Preauthorized Overdraft Protection Source with available funds, you agree to immediately restore any overdraft upon our written demand. If you do not promptly restore the overdraft, you agree that our Right to Recover Obligations from Shares (see below) applies. If we cannot recover the amount under our Right to Recover Obligations from Shares, you agree that our right to recover Collection Costs (see below) applies.

You will take responsibility for items deposited to your accounts that are returned unpaid. If we have made funds available to you for an item that is returned unpaid, you agree that upon our demand, you will immediately restore the amount of the returned item to your account. If you do not do so, you agree that our Right to Recover Obligations from Shares applies. If we cannot recover the amount under our Right to Recover Obligations from Shares, you agree that our right to recover Collection Costs applies. You agree to repay money you borrow from SLFCU according to the terms of the applicable loan agreement. If you do not meet your obligations to us, we may report information about your account to credit bureaus. Late payments, missed payments or other defaults on your account may be reflected in your credit report.

If You Experience Financial Difficulty If you experience financial difficulty, let us know as soon as you can. We may be able to make arrangements, such as a debt consolidation loan, that will ease your immediate payment 7

obligations and help you get back on your feet while maintaining your good credit standing.

Your Consent to our Right to Recover Obligations from Shares (Right of Offset) By maintaining membership in the Credit Union you agree that if you become indebted to us for any reason, and you fail to pay what you owe us according to the terms of your agreements with us or upon our lawful written demand, we can take funds from any SLFCU account in which you have an ownership interest, to collect all or part of what you owe us, without notice to you, and without waiving any other collection rights we may have. This consent by you is (a) in addition to our right to impress a lien on shares under applicable state and/or federal law (b) extends to any shares you have with us that might lose special tax treatment if pledged as security for an obligation, and shares resulting from your deposit of funds normally exempt from creditors’ remedies such as social security direct deposit, to the extent not otherwise prohibited by law or the applicable account agreement [The Credit Union never requires you to deposit exempt funds with us.] and (c) applies to any extensions of credit including loans or lines of credit that we have otherwise designated as “signature” loans or “unsecured” loans (Please refer to the security agreement of your loan for the conditions, terms and definitions of default.) Our exercising this right to recover obligations from shares will not be an election of remedies and will not impair our rights to pursue any other remedies we may have against you. Our right prevails over the rights of any joint owners or pay-on-death beneficiaries to the funds in your accounts. Your consent to our right to recover obligations from shares is not a pledge by you of any account and does not affect your right to withdraw funds as long as you meet your obligations to us.

If we have permitted you to withdraw funds, for example by cash, check, or wire transfer, against an item you deposited that is later returned unpaid, we will deduct the amount of the unpaid item plus any applicable fees from the share account in which you deposited the item. If there are no funds left in that account, you agree that we can recover any remaining amount of the unpaid item by deducting it from any other share account in which you have an ownership interest. If we cannot recover the funds in this manner, then you agree that our right to recover Collection Costs applies. Collection Costs If you are in default in any obligation, you agree to pay reasonable costs we incur to collect what you owe us before we take legal action. If we take legal action of any kind (including but not limited to collection lawsuits, proceedings to protect our interests if you become a debtor in bankruptcy, appeals, foreclosures, or actions to enforce judgments), you agree to pay our reasonable attorney’s fees and costs of the action. 8

Fees and Damages All SLFCU Accounts and Loans may be subject to fees. Our fee structure is designed to encourage use of Credit Union services and to create incentives for Members to meet their obligations and handle their accounts in a responsible way. All fees are disclosed on our Schedule of Fees and Charges (“Schedule of Fees or Fee Schedule”). The Schedule of Fees, as amended from time to time, is incorporated by reference into this Handbook.

Fees for special handling of Accounts and Loans result in some instances from your failure to carry out your agreements with us such as not having enough money in your account to cover checks you write or other debits you authorize. To the extent that our charges for handling such matters may exceed our costs, they are to be considered damages. You agree that our collection of a fee does not waive any right we may have under the law to recover any loss we sustain due to your failure to meet the terms of this Handbook or other agreements you have with us. We also have the right to extra damages whenever the law provides for them, such as the exemplary damages provided as a penalty for writing bad checks. We will charge your account a fee for items that you deposit into your account and are later returned by another institution for reason such as, but not limited to: account closed, nonsufficient or insufficient funds to cover the deposit item, or a stop payment was placed on the item. All returned items incur additional processing expenses, and the fee we charge is designed to help cover those expenses. Please see the Schedule of Fees for the current fee for deposit item returns.

Governing Agreements and Laws This Handbook, SLFCU Bylaws and policies, applicable New Mexico or California and federal laws as amended from time to time, and any separate agreements and disclosures provided to you shall govern your transactions with SLFCU. We may amend agreement terms from time to time consistent with applicable law and regulation by notifying you. The term “amend” may include changing existing terms, adding new terms, or deleting old terms. If an amended term is not acceptable to you, you may elect to discontinue the related service. If any provision of this Member Handbook in its present form or as amended from time to time is found to be void or unenforceable, the rest of the Handbook and amendments to it will remain in effect. We are legally and ethically obligated to safeguard the privacy of your financial information. We take this obligation very seriously. However, there are certain situations in which the law requires us to disclose information about you or your accounts. We will comply with lawfully issued subpoenas, levies, writs of attachment, and similar orders pertaining to your account. You must take up any objections you have on matters of this type directly with the individual or entity that has 9

requested information about or asserted a claim to funds in your accounts.

You are responsible for providing us with the correct taxpayer identification number on all accounts you open with us. We have no duty of further inquiry as to the correctness of the number you provide, but we will not open or maintain accounts without taxpayer ID numbers. You may be subject to IRS penalties, and we also reserve the right to close your account and deny services to you, if you fail to provide your correct taxpayer ID number. Backup Withholding We have the right to withhold amounts required by federal tax laws from withdrawals if you or the Internal Revenue Service advises us that you are subject to backup withholding or if you fail to give us your correct Taxpayer’s ID/Social Security Number. Electronic Service Options Many members prefer to conduct their business with us electronically whenever possible. We make services available electronically when permitted by law, technically feasible, and consistent with our safety and soundness requirements. The Membership Agreement allows you to elect the services you would like us to perform electronically once your membership is established. You can request any Electronic Fund Transfer service we offer at any time after account opening as well. (See the Electronic Funds Transfers section of this disclosure.) In addition, you can apply for loans, obtain and sign agreements and disclosures for the loans and accounts you request, and authorize us to disburse loan proceeds (except for real estate-secured loans).

We will tell you the type of equipment you need to download and print documents we provide to you electronically. If you request electronic services, we can assume that you are able to download and print documents. You will have to demonstrate that you are able to receive notifications electronically by signing up for the service at our CU@home® website. If you have difficulty downloading or printing a document electronically, you should ask us to provide paper documents.

For your privacy and protection, we will not electronically release any information about your accounts or accept loan applications or disbursement authorizations without your confidential Personal Identification Number (PIN) or Password. Of course, if you prefer to conduct your business with us on paper, all of our services are available in that form. You can discontinue any electronic service at any time.

Change of Address You agree to keep us informed of your physical and mailing addresses and to promptly notify us in writing of any change of 10

address. If you choose to receive communications from us via e-mail, and our e-mail messages are returned undeliverable, we will attempt to reach you at any alternate e-mail address or postal address we have for you in our records. If paper or electronic correspondence is returned to us as undeliverable at the addresses we have for you, we are not required to continue to attempt to send paper or electronic mail to bad addresses. We may take corrective action, including closing your account(s), if we suspect identity theft (based on change of address or for any other reason.) In such case, we will notify you before we close the account.

Waiver; Modification We can fail to exercise one or more rights we may have under this or any other agreement we have with you on one or more occasions without such failure being deemed a waiver of any right and without altering the terms of any agreement with you. Consistent with any limits imposed by law, we can modify any of our agreements with you by giving notice required by law and allowing you an opportunity to avoid the changes by satisfying any outstanding obligation you have to us and discontinuing the related service. “Modify” may include changing existing terms, adding new terms or deleting terms. Any modification of the terms of an obligation you have to us (such as the extension of a loan term) will be valid only if in writing and signed by an authorized agent of the Credit Union.

Revocable Authorization to Check Credit Your Membership Agreement allows us to check your credit from time to time to determine your eligibility for SLFCU products and services. You can revoke this authorization at any time by notifying us in writing. In any case, if you apply for a loan, or maintain any open-end credit (such as a Line of Credit or Credit Card) or checking account, we can check your credit or account history with third parties as part of our normal account review process. Your Consent to the Terms of this Handbook Your deposit of $5.00 to a Regular Share Account and completion of a Membership Agreement constitutes your acknowledgment that you have received this Handbook, the Schedule of Fees and the Truth in Savings Disclosure and your agreement to their terms. YOUR CREDIT UNION SHARE ACCOUNTS General Information

Earnings and Payment of Dividends Most Credit Union Accounts earns dividends. If an account earns dividends, they accrue from the business day we receive your deposit. The Board sets our dividend rates, taking into consideration the cost of funds and market conditions. Dividends are only paid out of current income and available earnings after required transfers to reserves at the end of the dividend period. Dividends cannot be guaranteed. Except for Certificate Accounts, dividend rates and corresponding annual 11

percentage yields are not set in advance. Unless otherwise indicated, dividend rates and yields are variable and can change at any time. The Board may change dividend cycles. See our separate Truth In Savings Disclosure for the current dividend rate and Annual Percentage Yield (APY) of all accounts. The Truth in Savings Disclosure, as amended from time to time, is incorporated by reference into this Handbook and made part of it.

Account Ownership, Rights of Joint Owners, and Transfer of Proceeds at Death You own all accounts established under your Member number. When permissible, you may designate one or more joint owners of your accounts on your Membership Agreement. Joint owners are not allowed on IRA, IRA Certificate, or UTMA (Custodial) Accounts. Joint owners are also prohibited on fiduciary accounts (such as living trust or estate accounts), but in situations where more than one fiduciary is appointed, the co-fiduciaries may both sign on the account. Joint owners must complete and sign the appropriate signature form along with the Member and must meet our customer identification program and our credit review requirements.

Joint owners designated on appropriate signature form, along with the Member, own all the proceeds of each non-IRA account held under that Member number on which the joint owner’s name(s) appear with right of survivorship (unless an Account Supplement Form is on file for each sub-account to which a different designation will apply). Joint owners may deposit or withdraw any amount in any non-IRA account under that Member number. However, a joint owner may not withdraw funds in a Regular Share Account if doing so would terminate the Member’s membership. Withdrawal by any one owner of an account terminates the rights of all other account owners to the withdrawn funds. Joint owners acting individually may pledge accounts as security for loans. In addition, if a joint owner becomes indebted to the Credit Union in any manner, any account in which the joint owner has an interest becomes subject to the Credit Union’s Right to Recover Obligations from Shares (see section titled, Our Right to Recover Obligations from Shares), even if the Member on the account is not a party to the transaction that resulted in the joint owner’s debt. If the primary member on a checking account authorizes Overdraft Protection for the account from a home equity credit line, signature credit line or money market account, any joint owner on the designated checking account can also access the Overdraft Protection source; and if the primary member opens a checking and a regular share savings account, any joint owner on the checking account can access the savings account as an Overdraft Protection source. This is the case even if the joint owner of the checking account is not a joint obligor on the home equity credit line or signature credit line or a joint owner of the account from which funds will be transferred to cover overdrafts. 12

You may add one or many joint owners to your account. Once a joint owner has been added to your account, we will not remove the joint owner without the joint owner’s consent, as demonstrated by signing a notarized Joint Ownership Deletion Form. You may close a jointly-owned sub-account by withdrawing all the funds, and open a new account without joint owners if you choose.

The Credit Union recognizes and offers an agency designation for share accounts, and you as a member may appoint someone to be an agent on your account. An agent has full transaction authority, such as making deposits or withdrawals and writing checks on a checking account. An agent may be issued an ATM/Check Card in his or her name on your account. An agent does not have any ownership rights to your account. At the time of your death the funds in the account will belong to the joint owner(s), if any are listed on the account records. If your account has no joint owners, the proceeds will pass to the designated beneficiary(ies) if named in the account records, or to your estate if there are no joint owners on your account. The agent will not have transaction authority when there are no living owners remaining on the account. We will remove an agent from your account upon your notification to the Credit Union. We do not require the agent to sign a deletion form to be removed from the account as we do for joint owners who will be removed from an account. You are responsible for monitoring the actions of any agent or power of attorney you assign to your account.

Should any owner of a joint account die, any surviving owner(s) will automatically own any money in the account (unless an Account Supplement Form is on file for each sub-account to which a different designation will apply). If the surviving owner is the Member, the account number will not change. If the surviving owner is not a Member, the surviving owner can open a new Membership account if eligible, or request a check for the account proceeds. The law prohibits us from maintaining accounts whose sole owners are not Members. When the last owner dies, the account proceeds will automatically pass to any named Pay-on-Death (POD) beneficiary(ies), or, if no beneficiary(ies) is/are named, to the estate of the last owner to die.

Members may also own accounts individually rather than jointly. On individual accounts, the account proceeds will transfer at the Member’s death to any named POD beneficiary(ies) or, if no beneficiary(ies) is/are named, to the Member’s estate.

On accounts with a designated POD beneficiary(ies), funds pass automatically to the named beneficiary(ies) and are not subject to any probate proceeding. If you name more than one POD beneficiary, your beneficiaries will receive account proceeds in equal shares, unless specific percentages for each beneficiary are designated on the account agreement form in writing. If you name a POD beneficiary for your account, 13

and the POD beneficiary dies before you do, the account will become a part of your estate. If you name multiple POD beneficiaries, and one or more of the POD beneficiaries die before you, the account proceeds will be distributed to the remaining beneficiary(ies) in equal percentages.

If a Member wishes to designate different joint owners for different accounts, or to have both joint and individual accounts, or to have different POD beneficiaries for different accounts, you must complete a separate authorization in each case. The Member will have the same member number on all joint owner combinations, with different ownership combinations indicated by different suffix numbers. POD beneficiaries are not allowed on UTMA or fiduciary accounts.

You may wish to consult with your tax advisor or legal advisor before you designate POD beneficiaries on IRA accounts because your decision may have significant tax consequences. Joint owners must belong to the Credit Union in their own right to borrow money from the Credit Union, to vote in Credit Union elections, or to hold Credit Union office. Joint owners who are eligible for membership can join by opening a Regular Share Account with at least $5.00 and signing a completed Membership Agreement. We will give information about accounts to each joint owner, provided that any applicable research and copying fees are paid. We will also provide information about your accounts if we receive an information request such as a subpoena that meets legal requirements. However, any disputes about the ownership of funds in joint accounts must be resolved by the account owners without involvement from the Credit Union. We will not give out account information to POD beneficiaries until all account owners are deceased.

Under community property law (applicable in California and New Mexico), either spouse has a right to set up an account in his or her own name, or with another joint owner other than his or her spouse, without the other spouse’s consent. The account-owning spouse can designate any POD beneficiary he or she wishes. However, the surviving spouse of the account owner may have a right to his or her community property interest in the account at the death of the account owner. This interest, if asserted, would reduce the amount that transfers to a non-spouse POD beneficiary or to any surviving joint owner. We acknowledge the obligation to honor court orders and lawful powers of attorney dealing with your specific accounts. We cannot recognize accounts that require more than one signature to transact business. Each owner, or each fiduciary if the account has co-fiduciaries, must be able to transact business alone. 14

Changing Account Ownership or Beneficiaries Any change in account ownership or access shall be in writing and on a new signature form. If one of the owners of a joint account wishes to remove the other owner(s), either: (1) That person must withdraw all funds, close the account, and (if they are in our Field of Membership) re-open it in the new owner’s name with a new account number, or (2) All current owners must consent in writing to the change.

The Credit Union will retain and follow only your most recent Account Agreement Form. The Credit Union will consider any omission from your current Account Agreement Form of information that was included in a previous Account Agreement Form of yours to have been intentional. Thus, for example, if your earlier Agreement designated a POD beneficiary and your current Agreement has no POD beneficiary designation, we will assume that you want your account to pass to your estate at your death. Continuing Authorization to Open Accounts By completing a Membership Agreement, you give the Credit Union a continuing authorization to open any account for you on your verbal request and deposit of funds.

Our Obligation to Follow Your Instructions We are required to follow written instructions transmitted to us on your accounts by any account owner or any person authorized by an account owner to conduct business on your accounts. We consider instructions received in writing or via electronic means such as ATM keypads, facsimile, CU@home® (on-line banking and Bill Paying), or CU@home® On The Phone to be “written” instructions. Our following the written instructions of any authorized person excuses the Credit Union of any further legal obligation regarding the proceeds of the transaction. You agree to indemnify and hold the Credit Union harmless from any claims, suits or liability that directly or indirectly result from our handling of your accounts consistent with an authorized person’s written instructions. The Credit Union has the right to refuse to honor your instructions if they are uncertain or if a signature appears not to be authentic. If that happens, we will notify you. We also have the right to refuse to follow instructions if we reasonably believe they do not comply with state or federal law. If we receive conflicting instructions from authorized persons, we can freeze the funds and refuse to allow any transactions until we receive a court order or consistent written instructions from all authorized persons. We have the right to verify your identity in any reasonable manner before conducting business on your accounts.

Because we operate in an automated processing environment, we cannot honor dual or multiple signature requirements. 15

Privacy and Disclosure of Information

Disclosure to Owners, Obligors, and Persons Authorized to Conduct Business on Your Accounts and Loans

Members are entitled to information about accounts of which they are owners and about loans they are obligated to pay. Joint owners of accounts are entitled to information about accounts of which they are owners. Joint borrowers and nonborrowing co-signers are entitled to information about all loans that they are obligated to pay. A person that is not an obligor on a loan but has pledged real or personal property as collateral for the loan is entitled to know if and when the loan goes into default and the steps necessary to cure the default. A person whom you have designated with the Credit Union as an authorized signer on an account or an authorized user of credit has the right to information about the account or loan.

Any person who is entitled to information can authorize release of information about the account or loan to third parties. If we have the written permission of an authorized person, we will release information even though we would otherwise be prohibited from doing so by law or policy. We do not disclose account information to pay-on-death beneficiaries until all account owners are deceased.

A person who was formerly an owner of an account or an obligor on a loan can obtain information regarding the account or loan during the time he or she was an owner or obligor. For example, assume Member A adds B as a joint owner of an account on January 1, 2010, and that B is deleted as a joint owner of the account on January 1, 2011. Any time after January 1, 2011, B can obtain information about transactions on the account that took place from January 1, 2010, to January 1, 2011, without Member A’s permission and without obtaining a subpoena. If B wants information about transactions on the account that occurred before January 1, 2010, or after January 1, 2011, B will have to provide a legally sufficient subpoena or obtain Member A’s written permission. Any party who requests information about an account or loan must pay applicable research and copying costs. We are not required to retain account or loan information beyond any maximum time established by law. For accounts, the maximum retention period is generally seven years. For loans, records are generally retained until the loan is paid in full.

Disclosures to Third Parties We will honor lawfully issued subpoenas, government information requests (including but not limited to family support data matching programs), writs, levies and other lawful requests for information about your accounts and loans. Generally, the law requires persons or entities seeking information about your accounts or loans to notify you and give you an opportunity to object, although some exceptions to this general 16

rule apply. We will pass the costs of providing records on to you unless the law requires the party requesting the information to pay our research and copying costs. We will disclose information about you to third parties as necessary to process transactions or provide services that you request.

We will disclose information about you as necessary to conduct our business and protect the interests of the Credit Union. For example, if you claim fraudulent use of your Debit Card at another financial institution’s ATM, we will disclose information about you and the transaction to the other financial institution in an effort to obtain videotape or other documentation we can use to verify your claim. We will disclose our account and loan experiences with you to credit bureaus and to merchants to verify the existence and condition of your accounts and loans.

We will disclose information about you to third parties who provide our services to you on our behalf, such as a third party with whom we have a contract to process your debit card transactions. Please refer to the separate Credit Union Privacy Policy for more information on our privacy practices and your privacy rights.

Deposits and Withdrawals Funds can be deposited to your accounts by (1) Direct deposit of your net pay or retirement benefits, (2) Automatic payroll deduction, (3) In person at Credit Union branches (including designated Shared Branches), (4) By mail, (5) By wire transfer, (6) Through certain ATM networks to which the Credit Union belongs, & (7) and for those who meet our guidelines, CU@home® Deposit: A remote deposit capturing system using an image of the check or negotiable instrument. Please be aware that the Credit Union cannot be responsible for cash or currency sent through the mail for deposit. Mailing currency or cash to SLFCU is done at your own risk.

Withdrawals can be made (1) In person at Credit Union branches (including designated Shared Branches), (2) By an authenticated electronic request via CU@home® to transmit a check, bill payment electronic transfer, account to account electronic transfer or wire transfer to you or a person you designate, (3) At ATMs, (4) By writing checks if you have a Credit Union checking account, and (5) By pre-authorized transfer.

Certain deposits are subject to delayed availability, as spelled out in the “FUNDS AVAILABILITY POLICY” section of this Handbook. 17

On your Credit Union checking account, you may write as many checks and make as many transfers or withdrawals out of the Account as you wish, provided you have sufficient funds. The number of deposits you may make is unlimited on all account types except for Certificate Accounts. However, transfers out of your Regular Share Accounts by certain methods are limited. You may make as many withdrawals or transfers out of these accounts as you wish using these means: (1) in person, (2) by mail, (3) by messenger, (4) at the ATM, or (5) by a telephone request to mail a check payable to you to your address in our records. All other withdrawals or transfers out of these accounts are limited to six per month. Examples of transfers or withdrawals out of these accounts to which the limits apply include: (1) pre-authorized automatic payments, such as for health club dues or utility bills; (2) transfer requests submitted using CU@home® or (3) automatic and pre-authorized account transfers (including overdraft protection transfers). The purpose of these rules, prescribed by Federal Reserve Regulation D, is to channel transactions through checking accounts. We may refuse to accept for deposit checks or other items that appear to have been altered or are not made payable to you. If a check made payable to you is deposited without endorsement to any account on which you are a Member or joint owner, the Credit Union can endorse the check for you and present it to the bank on which it is drawn for payment. We may require that any third parties or payees who are not owners of the account have their financial institution guarantee their endorsements.

Except for checking accounts, all accounts are non-transferable, other than on the books of the Credit Union. This means that if you want to change ownership of funds in a nonchecking account you must withdraw them or change the ownership by closing the account and opening a new account with the desired ownership. We reserve the right to require you to give at least 7 days’ but not more than 60 days’ notice of your intent to withdraw funds/shares except on checking accounts. Credit Union bylaws permit us to require a notice of up to 60 days before you withdraw shares.

Funds pledged as security for loans cannot be withdrawn without the Credit Union’s prior written consent. We may refuse withdrawals if you have delinquent obligations with us. You acknowledge that our making funds from a non-cash deposit available to you for withdrawal is not a guarantee or representation by us that the item you deposited will be paid. If you are concerned about the validity of an item you want to deposit, you should contact the financial institution on which the item is drawn. No Credit Union employee has the expertise or is authorized to give you an oral or written guarantee that an item you deposit will be paid. If the paying financial institution 18

lawfully returns an item you deposited, we will deduct the amount of the item from your account, even if you have already withdrawn the funds and even if the deduction results in a negative balance.

Federal Insurance Generally, if a Credit Union member has more than one account in the same insured Credit Union, those accounts are added together and insured up to at least $250,000 by the National Credit Union Share Insurance Fund. Individual Retirement Accounts (IRAs) are separately insured up to $250,000. There are exceptions, however. For example, the shares in your Regular Share Savings Account are insured separately from those in your IRA or certain trust accounts. It is possible to increase your insured funds in the Credit Union by structuring your accounts to maximize insurance coverage. If your accounts have joint owners or pay-on-death beneficiaries, insurance coverage may be increased. For a more detailed explanation of insurance coverage, please request a current copy of “Your Insured Funds,” a publication of the National Credit Union Administration, available by contacting your Credit Union or at the NCUA’s website www.ncua.gov. Dividend Calculation, Compounding, and Crediting The policies stated in this section apply to all of our accounts except the checking account which does not earn dividends. The dividend period is monthly, for example, the beginning date of the first dividend period of the calendar year is January 1, and the ending date of such dividend period January 31. Dividends are calculated by the daily balance method, which applies a daily periodic rate to the balance in the account each day. However, no dividends are paid on any day the balance falls below any minimum balance to earn dividends stated in the Truth in Savings Disclosure. (On share accounts where the primary owner is less than 15 years old, dividends will be paid on any account balance.) We compound dividends daily. We credit accrued dividends on the first day of the month following the end of each calendar month. If you close an account prior to the first day of a calendar month, you will not forfeit dividends that have accrued but not yet been credited. Fees All Credit Union Accounts may be subject to fees, which, if assessed, may reduce earnings. Please see the Schedule of Fees.

Permanent Records and Statement Review We will mail you periodic statements recording all deposits, withdrawals, checks drawn on your account, dividends (if any), and fees. All active accounts with valid addresses receive statements monthly. Accounts without transaction activity for more than a year will have the statements discontinued until there is new activity on the account. You will receive a year-end statement at the end of the calendar year in which there was account activity if the statements were discontinued due to inactivity. 19

If there is more than one owner of the account, the statement will be sent to the primary account holder. If you have chosen to receive notification of your statement electronically (eStatements), you will be notified once a month when your statement is ready for viewing. We will mail statements to you at your address in our records, or electronically notify you at the email address you provided. Please notify us of any physical or email address change.

You will not receive your canceled checks, although all checks are microfilmed electronically imaged and retained in that form for seven years. Copies of checks will be available on request. The first two check copies you request for a statement period are free; additional check copies are subject to a fee. See Schedule of Fees for details. The Credit Union is not responsible for items lost in delivery by the post office or otherwise not collected by the member. If any mailed statements or other documents we send you are returned undelivered, we will destroy them, but they will be available as electronic images for seven years.

If you request for us to print statements for your account(s), we may charge you a fee. Please see the Schedule of Fees for the current charge. Statement printing fees are for each page printed, not for each month a statement is requested. For example, if you request for us to print last October’s statement, and the statement is five pages long, you will be charged the current fee for each page that prints, not one printing fee for the entire month. You may specify to have one page of a multiple-page statement, and you will only be charged for the specific page requested.

In Case of Errors or Inquiries about your Statement: Unauthorized Signatures or Alterations: If you suspect that there was an unauthorized signature or alteration of an item that affected one of your accounts (for example, if you think someone forged your signature on your check), you must notify us, in writing, within thirty (30) days. Tell us all the information requested under the section entitled “WHAT TO TELL US IN CASE OF ANY ERROR OR INQUIRY” (at the end of this Handbook.) If you do not tell us within 30 days, we are not responsible for any losses you incur because of the forgery or alteration of a check on your account. We operate in an electronic processing environment and it is not feasible for us to examine every signature on every check. For this reason we are, as permitted by the Commercial Code, altering the provisions of the Commercial Code regarding the time limits for reporting unauthorized signatures or other unauthorized transactions on checking accounts. Other Errors or Inquiries: Read your statement promptly to be sure we made no errors. The Credit Union will investigate 20

any errors, provided you notify us in writing within sixty (60) days of the mailing of the statement containing the error. Tell us all the information requested under the section entitled “WHAT TO TELL US IN CASE OF ANY ERROR OR INQUIRY.” We will not be liable for errors if you fail to notify us within the 60-day period. If you do not notify us within the required time periods, you may have to share the loss with us or bear the entire loss, depending on whether we were negligent.

If we correct any error that we made or accept any responsibility for a transaction, we have the right to collect the amount credited to your account from anyone else who is responsible. Our crediting your account will result in an automatic assignment to us of your rights to collect the amount from anyone else. You agree to cooperate with our efforts to collect the amount we credited to your account. If we make an error in handling your account, our liability will be limited to the actual damages. The maximum actual damages are the amount of the transaction. We will not be liable for consequential damages such as alleged harm to your credit standing, unrealized profits, emotional distress, or exemplary damages due to a claimed reckless disregard of the consequence of our actions. Electronic Transfer Errors or Unauthorized Use Please refer to the Electronic Funds Transfer Agreement and Disclosure in this Handbook for information about your rights and responsibilities.

Inactive Accounts Access to accounts with no member-initiated activity for more than six months may be restricted and require verification of the transaction that reactivates the account.

Dormant Accounts Accounts with no member-initiated activity for two years by January 1 of each year will be charged a dormant account fee. Please refer to the Fee Schedule for the current dormant fee amount. Posting of dividends to your account does not constitute member-initiated activity. Closing Accounts We have the right to close your accounts for any business reason on 10 days’ written notice to you at your last known address. Any closing of your accounts will not affect our handling of regular transactions prior to the notice, provided that sufficient funds are on deposit to handle them.

Other grounds for closing your account(s) with or without advance notice include your writing checks without sufficient funds to cover them and without overdraft protection, your failure to pay your loans, your misuse of a checking account for check kiting or other unlawful purpose, or your failure to observe the conditions of any other agreement with the Credit Union. 21

You must maintain your par share ($5) in order to keep your account at the Credit Union. According to SLFCU bylaws, you have one year from the date your account falls below the par share value to restore the balance. If after one year your account is still not at the par share level, your account will be closed. If you wish to rejoin the Credit Union after your account is closed, you will be able to do so only if you are still within our field of membership.

Escheat California Accounts: If there has been no activity on your account for three years other than the crediting of dividends, your account is presumed to have been abandoned and subject to forfeiture to the state of California. We will assess or pass on the maximum amount of fees allowed by law associated with the escheat process. For example, you are responsible for stop payments fees on Official Checks you purchased, but were never negotiated. After two years of inactivity, we will notify you at your address in our records that your account will escheat if you do not contact us to indicate an interest in your account. If you have not kept your address current with us, and we have had mail (such as account statements) returned to us, we will not send a notice that your account is subject to escheat. If your account has a balance of less than $50, we may not mail a notice to you. According to state law, you may reclaim any funds that were escheated in your name. We will provide you information on how you can claim your funds from the state of California upon your request.

New Mexico Accounts and Accounts of states other than California: If there has been no activity on your account for five years other than the crediting of dividends, your account is presumed to have been abandoned. We will assess or pass on the maximum amount of fees allowed by law associated with the escheat process. For example, you are responsible for stop payments fees on Official Checks you purchased, but were never negotiated. New Mexico law and SLFCU bylaws permit us to submit funds that are presumed abandoned to the New Mexico Education Foundation at the Credit Union Association of New Mexico to be used for educational purposes. After four years of inactivity, we will provide notice as required by state law that your account may escheat if you do not contact us to indicate an interest in it. If you have not kept your address current with us, and we have had mail (such as account statements) returned to us, we will not send a notice that your account is subject to escheat. If your account has a balance of less than $50, we may not mail a notice to you. According to state law, you may reclaim any funds that were escheated in your name. We will provide you information on how you can claim your funds from the state of New Mexico or the New Mexico Educational Foundation upon your request. Our Handling Accounts In Case Of Your Death or Incompetence If you have an individual account, your death or a court appointment of a conservator to manage your legal affairs will 22

terminate our authority to disburse funds from your account. Our authority will terminate ten days after the later of (1) the date of your death or the appointment of a conservator or (2) the date we learn of your death or the appointment of a conservator. After we learn of your death or incompetence, we will comply with the law or court orders in disbursing account proceeds, and we will honor stop pay requests by any persons claiming an interest in your account. We will also follow the instructions of any holder of a legally valid power of attorney or a guardian or conservator appointed by the court with authority to handle your financial institution accounts. Joint accounts are handled differently, because of the joint owner rights of survivorship. Funds in accounts with joint owner(s) belong to the surviving owner(s) regardless of any designated beneficiary. Savings Accounts

Regular Savings Account You must maintain a Regular Share Savings Account balance of $5.00 to be a member of the Credit Union in good standing, and each additional savings account you open must maintain a five dollar balance. Certain automated withdrawals from this account are limited as described above in the “Deposits and Withdrawals” section. Dividends are earned on a tieredbalance basis. This Account earns tiered dividends if you maintain the required minimum balance. See the Truth in Savings Disclosure the Fee Schedule for details. Investors Choice Money Market Account This account earns dividends on a tiered-balance basis. Withdrawals from this account are subject to dollar amount limitations. There are fees for exceeding six withdrawals per month. See the Fee Schedule for more information. Term Share Certificate Accounts

Annual Percentage Yield (APY) Assumptions Disclosed Annual Percentage Yields (APY) assume that accrued and credited dividends will remain in the account until maturity. Earlier withdrawals of dividends will reduce earnings. Renewal at Maturity Term Share Accounts renew automatically at maturity unless you close the Term Share Account at maturity or during the 21-day grace period that follows maturity. Automatic renewal will be for the same term and at the Dividend Rate and APY the Credit Union is then offering for Term Share Certificates of that term and balance. If the Credit Union is not offering the same term, your account will renew for the term that is disclosed to you in the renewal notice we will send you. Transaction Limits You generally may not add funds to a Share Certificate after it is opened, except at maturity or during the grace period 23

following maturity. We may offer a variable rate Term Share Certificate Account that allows additions of funds, or a bumprate Term Share Certificate Account that allows members to increase their rate to the then-current rate once during the term. You may withdraw credited dividends, and you can arrange to have credited dividends transferred to another account when you open a Term Share Certificate Account, but any other withdrawals prior to maturity will be subject to a penalty. Funds in Term Share Certificate Accounts are not available for use as overdraft protection.

Early Withdrawal Penalties If you withdraw principal from a Term Share Certificate Account prior to maturity, an early withdrawal penalty will apply. The penalty on any principal amount withdrawn on any Term Share Certificate Account within six days of opening will be 7 days’ dividends on the amount withdrawn. If the withdrawal is after six days of account opening, and the Term is 11 months or less, an early withdrawal of principal will result in a penalty of 90 days’ dividends on the amounts withdrawn. If the withdrawal is after six days of account opening, and the term is 12 months or more, an early withdrawal of principal will result in a penalty of 180 days’ dividends on the amount withdrawn. Early withdrawal penalties may invade principal. Penalties may be waived if early withdrawal results from (a) the death of an owner of the Term Share Certificate Account; (b) a lawful distribution of an IRA; (c) the voluntary or involuntary liquidation of the Credit Union; (d) a requirement imposed by the Credit Union’s bylaws; (e) our failure to pay dividends within 10 days after the agreed date, or (f) for any other grounds that the law establishes as a valid condition for the waiver of a pre-payment penalty.

Rates and Terms The Credit Union offers a wide variety of rates, yields, and term lengths on Term Share Certificate Accounts. Rates offered change frequently to reflect market conditions. Once you open a Term Share Certificate Account, the dividend rate and APY will remain fixed through the term. Please refer to the separate Truth in Savings Disclosure. Individual Retirement Accounts Regular Share Accounts and Term Share Certificate Accounts are available as IRAs, although minimum balance requirements and terms may vary. The terms stated in this disclosure and the Truth in Savings Disclosure will apply to IRAs, as well as the terms of the separate IRA agreement disclosure you will receive when you open a Credit Union IRA. Depending on your income, whether you or your spouse (if married) is an active participant in a pension plan, and whether you select a traditional or Roth IRA, your contributions may be tax deductible, and your earnings will be tax deferred. With a Roth IRA, your contributions are not deductible, but your earnings are tax-free. Federal tax law governs the tax 24

advantages of IRAs and may be subject to change. Please contact your tax advisor regarding your specific tax situation.

Fiduciary Accounts We can set up Share Saving Accounts, Investors Choice Money Market Accounts, Term Share Certificate Accounts and Share Draft checking accounts for special purposes such as family trusts, executors of estates, and guardians and conservators. Uniform Transfer to Minor Act accounts are also available. These accounts may be subject to separate written agreements. Certain restrictions apply.

Custodial Accounts SLFCU offers custodial accounts as permitted by the Uniform Transfer to Minors Act, or UTMA. Custodial accounts require the involvement of a custodian. The custodian is an adult, over the age of 21, who will manage the funds until the child reaches the age of majority. The custodian administers the account, making decisions concerning deposits and withdrawals, reinvesting dividends and so forth. The custodian may also take money from the account to spend for the benefit of the child. It is the responsibility of the custodian to distribute the funds to the minor. The Credit Union will not turn over the funds to the minor who reaches the age of majority unless directed by a court order.

Under UTMA law there may only be a single custodian in charge of the custodial account at any one time. The reason for the limitation is because the minor (or a court of law on the minor’s behalf) must be able to hold the custodian liable for the transactions. The custodian may designate a successor custodian to take over upon the custodian’s death or resignation. The law imposes certain fiduciary and record-keeping obligations on a custodian account and requires that dividend earnings are reported to the IRS under the minor’s Social Security number. SLFCU offers regular share savings, share draft checking, term share certificates, and money market accounts under a custodial account.

If you are not certain whether a custodial account is the right choice, we urge you to first seek professional legal, tax, investment and/or estate planning advice before opening the account.

Trusts Accounts An account for a trust is an account held by one or more trustees of a trust for the benefit of one or more beneficiaries. Account eligibility is determined according to the Credit Union’s policy and applicable law. At account origination, the trustee shall sign a Supplemental Account Agreement for Trust 25

Account and provide any other evidence of the trustee’s authority the Credit Union requires. Trustee affirms that a valid living trust has been created, currently exists, and that the trust is eligible for membership at SLFCU. The Credit Union does not act as a trustee and is under no obligation to inquire as to the powers or duties of the trustee(s). The trustee(s) agrees to notify the Credit Union in writing if a change of trustee occurs. The Credit Union may withhold payment of funds to any party until proper evidence of authority is provided. The Credit Union may rely upon the directions of any one trustee until a written notice of revocation of the living trust or an updated Supplemental Account Agreement for Trust Account is received. Funds may be released to any one trustee acting alone or with a co-trustee. The trustee(s) agrees to indemnify and hold the Credit Union harmless of any liability, claim, damage, or loss arising as a result of unauthorized acts of any trustee or former trustee or acts of any trustee upon which the Credit Union relies prior to notice of any account change or revocation of the trust. This Membership Handbook and additional Account Agreements shall be binding on the trust, any trustee, successor, trustee, and beneficiary. Organizational Accounts SLFCU offers organizational accounts to membership eligible organizations such as booster clubs, PTA/PTO, and neighborhood associations. To establish an organizational account, the organization itself must qualify for membership at SLFCU. Ask us how to qualify your organization to become membership eligible. In some cases we may open a club account for an individual member operating as the club, for example, the treasurer for a youth soccer team or scout troop. For club accounts, the organization does not need to be in the field of membership, only the primary member opening the account needs to be membership eligible. A member who opens a club account is personally responsible for the account, including any overdrafts caused by any signer on the account.

For organizational accounts, the organization owns the account and authorized signers are appointed by the organization’s responsible parties. SLFCU may ask for evidence of the group’s existence such as meeting minutes listing the signers as the organization’s leadership. The organization must have a proper tax identification number and we may request proof that the organization has authority to use the number. To change signers on an organizational account we may ask to see a letter from the previous signer naming the new signers, minutes from the meeting where the officers were elected, or other supporting documentation. For every account, all signers must provide proper personal identification to open or be added to an account. 26

Funds in an organizational account do not pass to the surviving signers at the death or disability of any one signer. The funds remain the property of the organization. If one authorized signer dies or becomes disabled, the remaining signer(s) can conduct business on the account. If the sole authorized signer of an organizational account dies or becomes disabled, SLFCU can follow the instructions of any person SLFCU reasonably believes has authority to conduct business on the account. Share Draft Checking Accounts

General Checking Account Information SLFCU offers members two types of checking accounts. Check with the credit union for details to see which is best for you. All accounts offer unlimited check-writing, a Check/ATM card, free CU@home® on the Phone, and free CU@home® online banking. The Check/ATM card may be subject to some fees. ATM owners may assess surcharges for your use of nonCUAnytime® and CO-OPSM Network ATMs. Other services are also subject to fees. Please refer to the Schedule of Fees and Charges for additional information about services and fees that apply to our different checking accounts. The fee for offering printed checks varies. Fees on your checking account may reduce your earnings. Please refer to the Truth in Savings Disclosures for details. Checking Account Terms The following additional terms apply to your checking account. Payments on Checks. We will make payments on current checks drawn on available funds in your checking account when signed by any person authorized on your Membership Agreement. We reserve the right to honor only completed, signed and endorsed checks, on blanks printed in a form either approved by us or printed by us and provided to you for your use. We will not be responsible for delays that result from your ordering of checks from a third party supplier. Spoiled checks should be destroyed or, if retained, disfigured. The carbon copy in the checkbook should be marked “void.”

Governing Law. In handling checking transactions we will be governed by the Uniform Commercial Code as enacted in the state where you live, Federal Reserve Board Regulations, and our Credit Union procedures, as changed from time to time. If any provision of this disclosure is found to be unenforceable, the rest of the agreement will remain in effect. Stale Dated Items. Most checks (drafts) are processed through automatic systems that do not recognize the date on the check. Therefore, checks over six months old may be paid. The Credit Union is not liable to you for any costs or damages as a result of paying checks regardless of when it was written. 27

Legends on Checks. The Credit Union does not allow legends printed on checks that require special attention. For example, we cannot honor your request to print, “Void if not cashed in 30 days” or “Not valid for over $500” or something similar on your check. In our electronic clearing process, restrictive legends cannot be accommodated. If you choose to have restrictive legends printed on your checks, you realize and acknowledge that the Credit Union is under no obligation to follow such orders.

Stopping Payment. You can stop payment on any check drawn on your account before the check has been cleared for payment by notifying us orally and in writing, and by paying the required fee. You may be asked to follow up the oral notice with a written request within fourteen (14) calendar days of the oral notice, or the stop payment request will lapse. Stop payment requests will be processed promptly, but the Credit Union will not be responsible for a check that is paid by us within the first 24 hours after you request the stop pay. Written stop payment requests are valid for only twelve months but may be renewed for additional twelve-month period by giving written notice to the Credit Union within the period during which the stop payment request is effective, and paying an additional stop-payment fee.

Stop payment requests that are received via CU@home® before 1pm mountain time will normally be processed the same business day, and requests received after 1pm mountain time will be processed the following business day. Business days for CU@home stop payments are considered Monday through Friday, excluding federal holidays. 1) For us to effectively stop payment, we need to know the drawer, the payee, the account number, the date, the check number, and the exact amount of the check. Our computer will search for the check exclusively by the check number and dollar amount. It can read nothing else on the check. If the check number is wrong, or if the dollar amount varies by even one penny, we will not find the check and no stop payment will be made. 2) If we fail to carry out a timely stop pay, we will not be obligated to reimburse you if the check paid your valid obligation. If we do reimburse you, the claim for funds against the payee of the check will be assigned to us and you agree to cooperate in collecting the amount wrongfully paid to the payee of the stopped check. Our liability to you is limited to the amount of the improperly paid check. Lost or Stolen Checks. If your checks are lost or stolen, please call us immediately at (800) 947-5328. Because of the risk that someone obtaining your account and routing number can order checks outside the sequence of numbers on which you stop payment, we recommend that you close your checking account and reopen it under a new number. If you elect to keep your account open under the same number after 28

checks have been lost or stolen, we will not be responsible for unauthorized checks paid on your account unless they fall within a sequence of check numbers on which you have stopped payment.

Post Dated Checks. Postdated checks drawn on your account may be cashed if presented by the payee before the date on the check. We will not be liable for the consequences of such early payment, unless you have given us separate notice (the date on the check alone is not sufficient notice) that the item is post-dated and identified the check to us by providing the same information and fee that we require for stop payment requests. Our responsibility for failing to carry out your instructions regarding a post-dated check is the same as if we paid a check over your stop payment order. We are not obligated to cash or process postdated checks payable to you, regardless of who wrote the check, and it is our policy not to do so. Post-dated checks you deposit at ATM’s will be returned to you. Availability of Funds for Check Writing. Non-cash deposits are made available only after the times specified in the “Funds Availability Policy” section of this disclosure. We consider these deposits to be uncollected funds until the hold period expires. Please postpone writing checks or attempting withdrawals against these funds, unless you intend to rely on your overdraft protection.

Prohibition on Pledging Funds. Funds deposited in checking accounts may not be pledged as security for a loan However, if you become indebted to us and do not pay what you owe us according to our agreement with you, you agree that funds in your checking accounts are subject to our Right to Recover Obligations from Shares. Share Draft Printing fees. The price for share drafts or checks ordered through the Credit Union varies depending upon the style and quantity ordered. Please contact us for the current prices of the checks you are interested in.

Overdrafts/Pre-Authorized and Approved Overdraft Protection The Credit Union is never required to pay a check of other checking account debit (withdrawal) item that would result in an overdraft unless you have established and have available Overdraft Protection. You may authorize overdrafts by completing an Overdraft Protection Authorization, subject to our approval. We offer Account Transfer Overdraft Protection and Line-of-Credit Overdraft Protection. By opening a checking and one or more Regular Share Savings Account(s) you authorize us to automatically transfer and use funds in your Regular Share Savings Account to pay checking account overdrafts without any other Overdraft Protection Authorization; such transfers are included in the discussion of Approved Overdraft Protection or designated 29

overdraft sources below and throughout this Handbook. Account Transfer Overdraft Protection is available, by your designation on a special form, for Money Market Accounts, but not for IRA Accounts or Certificate Accounts. By requesting an ATM Card or MasterMoney® ATM/Check Card on an account with a line of credit designated as an overdraft protection source, you accept a credit card (as defined by Federal Reserve Regulation Z). Please refer to the applicable loan or Line of Credit agreements and disclosures for additional terms applicable to overdraft protection advances from Lines of Credit. You acknowledge and agree that if someone is a joint owner or agent on your checking account, and if they write a check or initiate another checking account debit item for which there are insufficient funds, we may transfer funds from another one of your sub-accounts (including, but not limited to, savings accounts, money market accounts, or lines of credit) to cover the deficiency. We will transfer the funds from the other account to cover the check or other debit item even if the person who wrote the check or initiated the debit is not a joint owner or co-borrower on the account used to cover the deficiency.

If there isn’t enough money in your checking account to cover the checks you write, or to cover transactions by you or authorized users of your electronic transfer devices (see the ELECTRONIC FUNDS TRANSFER section of this Handbook), we will consider these checks or transfers to be requests for Pre-Authorized and Approved Overdraft Protection fund transfers or loan advances to cover the overdrafts. The money will be taken from the sources you have indicated. 1)

2)

3)

Overdraft transfers from your Regular Share Account will be in $50 multiples, up to the available funds in the account. If you have more than one share account identified for overdraft protection, we will attempt to transfer the necessary amount to cover the overdraft from a single account. If the single account has insufficient funds to cover the overdraft, we will aggregate the amount needed to cover the overdraft from multiple accounts that you have identified for overdraft protection in an attempt to cover the overdraft. Overdraft transfers from Regular Share Savings Accounts are limited to six per month. Overdraft transfers from your Money Market Account will be in $500 multiples, up to the available funds in the account. Overdraft Transfers from Money Market Accounts are limited to six free transfers per month; thereafter there is a fee for additional transfers. Please see the Schedule of Fees for the current fee. If you have a Line of Credit or Credit Card with the Credit Union in good standing and with available credit, you may also designate that Line of Credit as an overdraft protection source on your Membership Agreement. Overdraft protection advances will be posted from your Line of Credit in multiples of $100 (or the available credit, 30

whichever is less) to cover your overdrafts in the amount needed. Overdraft Line of Credit advances are governed by the terms of the applicable loan agreement. 4) When you use your ATM/Check Card or a MasterMoney® ATM/Check Card, and there are insufficient funds to cover the purchase in the account your card is tied to, we will overdraft the account you have designated for overdraft purposes. 5) If you have not designated a Line of Credit or Credit Card as an overdraft protection source, or if you have exceeded your credit limit on that designated Credit source, and there is not enough money in the Regular Share Account(s) you have designated as overdraft protection sources, we may return “NSF” (non-sufficient funds) checks presented for payment to the payee’s financial institution and charge the fee listed in the Schedule of Fees. If you do not have a pre-approved source of overdraft protection with available funds or credit, at our sole option we may also pay items that overdraw your account. Please see the section titled, “Privilege Pay Program” for more information. 6) We are never obligated to pay an item that would overdraw your account, if you do not have a pre-approved source of overdraft protection with available funds or credit, even though we may have accommodated you in this way in the past. 7) Checks you write on insufficient funds may be re-presented by the payee for payment through the ACH (automated clearinghouse) system if the payee notifies you of this possibility when you write the check. Checks on which the signature is forged, altered checks, checks for over $2,500, checks returned for reasons other than insufficient funds, or checks re-presented more than 180 days after their original date, are not eligible for ACH re-presentment. 8) You agree that we may offset a returned NSF item with the proceeds of any other account in which you have an interest. (See our Right to Recover Obligations from Shares.) 9) Unless you have a formal overdraft protection arrangement with us, we can close your checking account without prior notice for repeated overdrafts or for your misuse of the account, such as check “kiting.” Due to electronic check processing laws (Check 21), checks that you write may clear within a matter of minutes or hours. You should be sure that you have available funds before writing checks, rather than assuming that you can write a check and later make a deposit to cover it. 10) The same rules that apply to overdrafts caused by checks you write also apply if an overdraft results because you have obtained cash for an item you deposited that is later returned to us unpaid. 11) You waive the right to protest for nonpayment of deposited returned items. 31

12) The Credit Union posts debits to your checking account based on our obligation to pay them. For example, we will generally post ATM/Check Card transactions, ACH transactions, internal transfers and internal loan payments prior to the checks you have written. 13) You agree that we can post overdrafts to your accounts in any order we select consistent with the law. We typically will post overdrafts (whether under an Overdraft Protection Authorization or under our Privilege Pay Program) in check number order.

Privilege Pay Program It is Sandia Laboratory Federal Credit Union’s policy to comply with applicable laws, rules and regulations, and to conduct business in accordance with strict safety and soundness standards. A non-sufficient funds (overdraft/negative balance) may result from: A) The payment of checks, electronic funds transfers, electronic check conversions or other withdrawal requests you initiate; B) Payments authorized by you; C) The return of unpaid items that were deposited to your account; D) Charging your account for our applicable service charges and fees; and E) When items or transactions you initiate against the deposit of items to your account which, according to our Funds Availability Policy, are treated as not yet available. We are not obligated to pay any item initiated for payment against your account if your account does not contain sufficient collected funds (unless you have established and have available a pre-approved source of overdraft protection). Rather than automatically returning, unpaid, all non-sufficient funds items that you may have, if your eligible account type has been open for at least thirty (30) days and you have accumulated deposits in excess of $800, and thereafter you maintain your account in good standing, we will consider, without obligation on our part, approving your reasonable overdrafts up to your assigned Privilege Pay Limit, including our fees. “In good standing” includes, but is not limited to, the following: A) You continue to make deposits consistent with your past practices; B) You are not in default on any loan obligation to us; C) You pay your outstanding overdraft (negative) balance, including our fees, immediately or on demand; and D) Your account is not the subject of any legal or administrative order or levy, such as bankruptcy or a tax lien. If your account does not meet the thirty (30) days open criteria, the accumulated deposits requirement, and/or the “in good standing” criteria described above, we will consider, without obligation on our part, approving your reasonable overdrafts up to $100, including our fees. This discretionary service will generally be limited to an $800 overdraft (negative) balance for eligible personal and organizational checking account types, $1,500 overdraft (negative) for accounts opened two years or longer, or $100 overdraft (negative) balance for accounts not eligible for higher overdraft limits. 32

Our normal fees and charges including, without limitation, our non-sufficient funds (NSF) fee as set forth in our Schedule of Fees, will be charged for each transaction/item initiated for payment from your checking account that does not have sufficient collected funds. Typically, we will charge our normal NSF fee whether we approve an overdraft item for payment or return it unpaid.

Our NSF fee will be included in and count against your assigned Privilege Pay Limit of $100, $800 or $1,500. Whether your overdrafts will be paid or not is at our sole discretion and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing as described above, or if you have too many overdrafts. Under our Privilege Pay Program, we may refuse to pay an overdraft for you at any time, even though your account is in good standing and even though we may have previously paid overdrafts for you. You will be notified by mail (or another notification method that you have enrolled for) of any non-sufficient funds items paid or returned that you may have; however, we have no obligation to notify you before we pay or return any item. The amount of any overdrafts including our fees that you owe us shall be due and payable immediately. If there is an overdraft paid by us on an account with more than one (1) owner on the signature form, each owner, and agent if applicable, drawing/presenting the item creating the overdraft, shall be jointly and severally liable for such overdrafts including our fees. You must restore any amount by which your account is overdrawn immediately upon our demand. If you do not pay, you agree that we can cover the amount of the negative balance from any other Credit Union Account in which you have an interest under our Right to Recover Obligations from Shares. If we cannot recover that amount exercising our Right to Recover Obligations from Shares, our right to recover Collection Costs applies.

Overdraft Protection Services. We offer additional overdraft protection services that you may apply for. These include Lineof-Credit Overdraft Protection and Account Transfer Overdraft Protection (from another account of yours with us). If you apply and are approved for these optional services, you may save money on the total fees you pay us for Privilege Pay services. Ineligible Accounts and Limitations. Privilege Pay is available only for eligible checking accounts that are maintained in good standing as defined above. Savings and Money Market Accounts are not eligible for this service. We may, in our sole option and discretion, limit the number of your accounts eligible for Privilege Pay to one account per household and/or one account per taxpayer identification number.

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Transactions That May Cause or Create Overdrafts Using Your Privilege Pay Limit. NSF transactions initiated for payment against your checking account may be paid by us using your assigned Privilege Pay Limit, including our fees. Our NSF fee may be imposed for paying, or not paying, overdrafts you create by: checks; in person (teller) withdrawal; MasterMoney® ATM/Check Card or ATM card point of sale transactions; transfers and payment orders initiated in person or by telephone or by CU@home®; Automated Clearing House (ACH) debits; or other electronic means. You May Always Opt-Out. You may choose at any time not to participate in Privilege Pay by notifying one of our Credit Union employees who will explain what this “Opt-Out” means, and the potential consequences for you.

Limitations. The Privilege Pay program will limit the number of NSF fees to six per day per checking account. The limit applies whether we pay an item or if it is returned to the payee. The Credit Union will not charge you any NSF fees when the negative balance in the account is from $0 to $20. Debit /Check Card Opt-In. In accordance with federal regulations, you must specifically opt-in to Privilege Pay for everyday debit card transactions before we can cover your overdrafts. Checks, ACH, recurring check card transactions, and overdrafts other than everyday check card transactions are not subject to an opt-in and may be covered by Privilege Pay at our discretion. Always a Discretionary Service. Our Privilege Pay service does not constitute an actual or implied agreement between you and us, nor does it constitute an actual or implied obligation of or by us. Our Privilege Pay service represents a purely discretionary courtesy or privilege that we may provide to you from time to time and which may be withdrawn or withheld by us at any time without prior notice or reason or cause.

If You Need Help. Of course, overdrafts should not be used to pay ordinary or routine expenses and you should not rely on overdrafts as a means to cover these expenses. If at any time you feel you need help with your financial obligations please contact the Credit Union at (505) 293-0500 or (800) 947-5328. SPECIAL SERVICES

Credit Union Checks (Cashier, Teller or Certified Checks of the Credit Union)

If you obtain a check drawn on the Credit Union payable to someone other than yourself, we are, under normal circumstances, guaranteeing the payment of the check. For that reason we will accept a stop pay request on a Credit Union Check only after we receive a written declaration under penalty of perjury from you and, in some cases, the payee. If the check was lost, stolen or destroyed before you delivered it to the 34

payee, you must sign the declaration. If the check was lost, stolen or destroyed after delivery to the payee, but before he negotiated it, both you and the payee must sign the declaration. If we receive the stop pay after the check has cleared, we will not be responsible for the loss.

We will generally not issue a replacement check or credit your account until 90 days after the issue date of a Credit Union Check. We can require you to obtain, at your expense, a Lost Instrument Bond.

If, after 90 days have passed, we issue a replacement check or re-credit your account, we are discharged from further liability. If a holder in due course presents the original check after that time, you must pay the proceeds of the original check to the holder or the financial institution. You agree that if this happens, and you do not pay us the amount of the original check immediately upon our demand, we can deduct the amount of the original check from any Credit Union account in which you have an interest, and that if you do not have available funds for us to exercise our Right to Recover Obligations from Shares, our general rights to collect what you owe us and Collection Costs will apply. Wire Transfers We can make a wire transfer from your accounts and will carry out your written instructions. We will also receive wire transfers for you. Wire transfers are subject to the terms of Federal Reserve Regulation J and Article 4A of the Uniform Commercial Code.

Wire transfers that we send and receive are subject to the following terms: 1) If we are receiving a wire transfer on your behalf, our responsibility is to carry out the terms specifically as transmitted by the sending financial institution, including any specific security procedure. If a specific account type is not indicated, wired funds are posted to the checking account. 2) We will not be liable for damages to you or a third party if we carry out the written instructions in a reasonable manner. 3) We will not be liable for damages to you or any third party that result from causes beyond our reasonable control (such as natural disasters or acts of war or terrorism) or from the acts or omissions of other institutions or parties involved in your wire transfers. 4) We have a right to rely on any account or routing numbers furnished by you as sender or any numbers transmitted with a wire transfer from another financial institution for your benefit with reference to the deposit of the funds received. 5) We have no obligation to correct erroneous spellings of names or erroneous account numbers in sending or receiving wire transfer proceeds. 35

6) In sending wire transfers for you, we will follow security procedures. If you make your request in person, we may require photo identification. If you make your request by telephone, we may call you back at your telephone number in our records to confirm the request, and we may also ask you to confirm a telephone request by a signed authorization letter before the wire transfer is performed. 7) We reserve the right not to complete wire transfer requests that do not contain the following information: Beneficiary’s financial institution name and address (including country if outside the United States), beneficiary’s name and address, and beneficiary’s account number. All wire transfer requests are screened against lists provided to us by the United States Office of Foreign Asset Controls and we will block or not complete any wire transfer to any prohibited country or individual. 8) We will not be liable for indirect, consequential, or punitive damages in the event that loss is sustained because we have failed to carry out instructions in a reasonable manner. Our liability is limited to the amount of the wire transfer. 9) You agree that wire transfers will be reflected on your monthly statement and that we have no duty to provide any further notice of incoming wires. You agree to examine your statement promptly and notify us of any wire transfer errors within 14 days after we mailed the statement to you. If you do not notify us within 30 days of the mailing of the statement, we will not be liable for any claims, demands or expenses related to the error. 10) If we receive an erroneous transfer to your account, the sending party can reverse the transaction and the amount of the transfer will be deducted from your account. We will notify you if this happens. If a wire transfer you receive is reversed, you agree to immediately restore any resulting overdraft on our demand. If you do not do so, you agree that we can recover any overdraft amount from any Credit Union account in which you have an interest. You further agree that our rights under “Collection Costs” apply if we cannot recover what you owe by exercising our Right to Recover Obligations from Shares. 11) Unless we tell you otherwise, our cutoff time for wire transfers is 2:00 pm Mountain Time for domestic wires, and 1:30 pm Mountain Time for international wires. Payment orders, cancellations or amendments received after the cutoff time will be processed during the next business day we are open. 12) Once a wire has been sent, it generally cannot be cancelled. 13) Your wire transfer requests may be delayed if you give us erroneous information or if you have not kept current your contact information that we maintain in our records. 14) We can refuse to carry out a wire transfer request or change order if we have reason to believe that doing so will cause us a loss or for any other lawful reason. 36

Shared Branching In order to provide you with more service options, SLFCU participates in the CU Service Centers network of shared branching. As part of the CU Service Center Network, SLFCU members will have access to numerous branches across the country. You can go to any one of the cooperating branches and conduct business as if it were at one of our branches, with some limitations. You may find the locations of participating branches at www.creditunion.net.

Shared Branching Available Services You are able to make the following types of in-person transactions at a shared-branch location: • Make deposits (refer to the funds availability section for details) • Withdraw funds • Transfer funds from one account to another • Obtain balance inquiries (no fee for a verbal inquiry) • Process loan payments • Purchase cashier’s checks, money orders, and traveler’s checks • Request a statement print for your account (a fee may apply, see Schedule of Fees for details) The services offered at a particular branch are at the discretion of the CU Service Center. You may want to call the facility you plan to visit in order to verify that they offer these particular services. Shared Branching Transaction Limits For your account’s protection, SLFCU has the following aggregate daily withdrawal limits in place: • Cash limit is $2,500 • Check limit is $30,000

If you know that you will need to have access to more money than the limits stated above, you may call SLFCU to arrange for a special one-time limit increase. The increase will expire 24 hours after your request.

Shared Branch Fees Fees for shared branch transactions may be assessed against and reduce earnings on your accounts. SLFCU allows two free shared branch transactions per master account per month. SLFCU imposes a fee for each additional shared branch transaction. Please see the Schedule of Fees for the current price for additional transactions. The shared branch you visit may charge transaction fees. The shared branch is required to disclose any fees to you before you become obligated to pay them. If assessed, these fees will be deducted from the SFLCU account that you access at the shared branch. 37

Additional Shared Branching Disclosures Shared branches will not accept foreign currency or foreign checks for deposit. Please bring your foreign checks to an SLFCU branch for deposit.

You will have to appear in person and show valid, photo identification for all transactions at a shared branch location. Shared branches do not have access to the SLFCU computer system to look up account numbers; therefore, you will need to present your account number each time you visit a shared branch facility. Because of these identification requirements, ATM transactions are not allowed at shared branches unless the ATM is part of the CU Anytime® ATM (in New Mexico) or a CO-OPSM ATM (in California) system.

Opting Out of Shared Branching If you would prefer to have your account restricted from shared branching transactions, please call SLFCU and we will accommodate your request. FUNDS AVAILABILITY POLICY

When you deposit an item (such as a check) drawn on another financial institution, there is always a time delay before the item reaches the institution on which it was drawn and we receive payment. The following summary is given to you to help you understand the circumstances that might cause a delay in our making funds available to you and to meet federal notice requirements of our check hold policy. Please read this notice and keep it for future reference. General Rules Our policy is to make your funds available on the day of deposit, with certain exceptions. Funds from electronic direct deposits, wire transfers and cash deposits with a teller at an SLFCU office will be available on the day we receive them. Once they are available, you can withdraw the funds in cash and we will use the funds to clear checks and other checking account withdrawals.

For determining the day of receipt of your deposits and the availability of your deposits, every day is a business day except Saturdays, Sundays and federal holidays. If a member makes any kind of deposit with a teller at an SLFCU office, or at a “shared branch location” (as defined below,) during regular open hours, we will consider that day to be the day of deposit. If a deposit is made after branch hours, or on a day that we are not open, we will consider the deposit to have been made on the next business day we are open. Different rules apply for determining the day of deposit and funds availability for ATM deposits, as explained below.

For checks, our policy is to provide same-business-day access to your funds on checks payable to you, endorsed by you, and deposited with a teller at an SLFCU office. 38

Funds you deposit by check may be delayed for longer periods of time under the following circumstances. 1) We believe a check you deposit will not be paid. 2) You deposit checks totaling more than $5,000 in any one day. 3) You redeposit a check that has been returned unpaid. 4) You have overdrawn your account repeatedly in the last six months. 5) There is an emergency, such as failure of computer or communications equipment. 6) Your account has been open with us for less than 30 days. We will notify you in writing if we delay your ability to withdraw funds for any of these reasons, or for any other reason permitted by law, and we will tell you when the funds will be available. Your funds will generally be available no later than the 7th business day after the day of your deposit.

Foreign checks, or checks drawn on or payable through an office of a depository institution located outside of the United States are not subject to the funds availability policy (Regulation CC), and as such may be held for longer periods. We may choose to send your foreign checks for collection prior to giving you credit for the item(s). There may be additional fees assessed for processing foreign checks that are charged by the other financial institutions in clearing your foreign checks. Any fees that are assessed in the clearing of your foreign checks will be passed on to you. We will let you know at the time of deposit if there will be an extended hold placed on your foreign check, and if there will be any fees before we take your foreign check and process it. Location of Check Endorsements Federal law requires all check endorsements to be in the first 11/2 inches of the trailing edge of the back of the check. The trailing edge is opposite the left side of the face of the check. You will be responsible for any costs or delays the Credit Union incurs because checks deposited to your account do not comply with the endorsement rules.

ATM Deposits Funds Availability If you make a cash or check(s) deposit at a CU Anytime® ATM (in New Mexico) or a CO-OPSM ATM (In California) before 3:30 p.m. Mountain Time (MT) every day except Saturdays, Sundays and federal holidays, we will consider that to be the day of deposit. Otherwise, the deposit is treated as being made the following business day. Deposits of $2,500 or less will have the funds available immediately.

Deposits greater than $2,500 and less than $20,000 will have $200 available immediately and the remainder available in two business days. 39

Deposits greater than $20,000 will have $200 available immediately, $4,800 available in two business days, and the remainder available in five business days.

If you make multiple ATM deposits into multiple subaccounts under your master account, and those deposits exceed $2,500 in any one business day, we will make $200 available in the account that the initial deposit was made. The remaining funds will become available based on the timeline mentioned above. Shared Branching Funds Availability Please see the section titled “Shared Branching” for more information regarding SLFCU’s relationship with other Credit Unions across the country. With respect to items deposited at shared branch locations (meaning branches of Credit Unions other than SLFCU that accept deposits of SLFCU members through their participation in the CUSN shared-branch network), funds will be available on the following schedule.

Your Ability to Withdraw Funds from Deposits at a Shared Branch Location Our policy is to delay the availability of funds from non-cash deposits that are accepted at a shared branch location. During the delay, you may not withdraw the funds in cash and we will not use the funds to pay checks that you have written or other withdrawals you have authorized.

The length of the delay is determined by counting the business days from the day of your deposit. Every day is a business day except Saturdays, Sundays and federal holidays. If you make a deposit on a day that we are not open, we will consider the deposit to have been made on the next business day we are open. The length of delay varies depending on the type of deposit, and is explained below. Dividends will begin to accrue on the day we receive your deposit. The length of delay depends upon the type of deposit.

There is immediate availability for cash deposits. You will have immediate availability up to $20,000 for the following types of checks: • Government Checks • Federal Reserve or Federal Home Loan Checks • United States Postal Service Money Orders

If the deposit item is greater than $20,000 we will provide $200 immediately, $4,800 in two business days and the remainder in five business days. For deposits of check types not listed above, you will have immediate availability on items up to $2,500. For items greater than $2,500 and less than $20,000 you will have $200 available immediately and the remainder available in two business days. For items greater than $20,000, $200 will be available 40

immediately, $4,800 will be available in two business days, and the remainder available in five business days.

Longer Delays for checks deposited at a Shared Branch Location Checks deposited may be delayed for a longer period of time. Please refer to the “General Rules” section above for further information on why your check deposit may be delayed. In such instances, your funds will generally be available no later than the 7th business day after the day of your deposit.

CU@home® Deposit Funds Availability Please see the section titled “CU@home® Deposit” for more information regarding the convenient service available to members. Funds will be available according to this schedule when made through CU@home® Deposit.

Upon receipt of your deposit, SLFCU will grant the designated account credit in the amount of the check(s) provisionally, subject to final payment of the check(s). You shall remain liable to SLFCU for any errors, inaccuracies, breach of warranties and any other loss sustained by, or claim made against, SLFCU. To be eligible for processing on the day transmitted by CU@home® Deposit, the deposit must be technically conforming as determined by SLFCU in its sole discretion. You agree that checks transmitted through CU@home® Deposit are not subject to the funds availability rules of FRB Regulation CC.

Checks transmitted to us by CU@home® Deposit will have immediate provisional credit on amounts up to $2,500. If your deposit is greater than $2,500, we will make $200 available immediately and the remainder will become available in five business days. We reserve the right to place an Exception Hold (in which case a notice will be sent) and hold your funds up to seven business days on all Deposits.

There is a limit of $25,000 that you may deposit per business day (6pm Mountain Time, Monday-Friday, excluding federal holidays) through CU@home® Deposit. We may make funds available earlier on a case by case basis depending on factors in our sole discretion such as your history with us, your credit and transactions history and such other factors as we in our sole discretion may apply. SLFCU has sole discretion as to the manner in which checks are cleared, presented for payment and collected, subject to the Share Account Agreement.

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ELECTRONIC FUNDS TRANSFER AGREEMENT AND DISCLOSURE

Introduction/Scope of Services

Electronic Funds Transfers (EFTs) are payments to, or withdrawals from, your accounts that are initiated electronically. This agreement applies to transactions initiated with 1) CU@home® On The Phone (Audio Response) 2) CU@home® Online and Bill Payer (our on-line banking and bill payment service), 3) CU@home® Mobile, 4) Point-of-Sale (POS) terminals, 5) Use of MasterMoney® ATM/Check Card, 6) ATM Card, 7) Transfers into and out of your accounts via Automated Clearing House (ACH) such as pension payments or payroll by direct deposit, payroll deduction, automatic payment of regular bills and electronic checks (checks converted to ACH transfers). All EFTs are subject to the terms governing the Credit Union Accounts you access electronically. Consent to Terms By applying for, keeping, signing, or using any type of EFT access device offered by the Credit Union, you acknowledge receipt of this Agreement and disclosure and you agree that your use of EFT services will be subject to its terms.

Eligibility To qualify for EFT services, you must be a Credit Union member in good standing (including the deposit and maintenance of $5 in your Regular Share Account, meeting your loans obligations and avoiding overdrafts on your accounts), and your checking account history with the Credit Union and other institutions must be satisfactory. To qualify for an ATM Card or a MasterMoney® ATM/Check Card, you must have a Credit Union Account in good standing, and your credit history must be acceptable to us. Security of Your Accounts Keep Your Password or PIN Secret and Your Card Safe

You cannot use an ATM Card or a MasterMoney® ATM/Check Card at an ATM or point-of-sale terminal without keying your Personal Identification Number (PIN) into the ATM or terminal after inserting your Card into the machine. Your randomly selected PIN will be given to you when you request an ATM Card and/or a MasterMoney® ATM/Check Card.

You cannot use CU@home® On The Phone without your PIN. We will issue a PIN when you sign up for CU@home® On The Phone. You may change the PIN to any four-digit number you choose by following the instructions on the phone system. 42

You cannot use CU@home® Online without a password. You choose your own password when you self enroll. Follow the instructions available at CU@home® Online.

To keep your password or PIN secret, please follow these simple rules. Memorize them, just as you learn a frequently called telephone number. Do not keep a written record of your password or PIN. If you must write your password or PIN down, do so in a way that they will not be recognized as password or PIN, and do not write them on your Card or near the telephone or computer in your home or office. Don’t let anyone use your Card or watch you key in your PIN. If you suspect that any unauthorized person has obtained your Card or PIN, contact the Credit Union immediately and request that your old PIN be cancelled and a new PIN be issued.

Remember that a PIN is not required to use a MasterMoney® ATM/Check Card for signature transactions. Treat your ATM Card or a MasterMoney® ATM/Check Card as carefully as you treat cash. Fees Any fees that apply to EFTs are shown on the Schedule of Fees or in the Truth in Savings Disclosure. In addition, if a merchant, ATM or POS terminal that honors your ATM Card or MasterMoney® ATM/Check Card imposes a fee for the use of the Card, we will pass that fee along to you.

ATM withdrawal fees apply to each primary account, not to each ATM card or MasterMoney® ATM/Check Card or each sub-account. If a member has a checking account which offers 10 free ATM withdrawals per month and a second type of checking account which offers 20 free ATM withdrawals per month, it doesn’t matter which savings or checking account is accessed for the first 10 ATM transactions – they will all be free from ATM fees (not including fees charged by ATMs or point-of-sale devices outside of the CU Anytime® or CO-OPSM network). If the 11th transaction accesses the 10 free per month checking account or the savings account, there will be a fee. However, withdrawals from the 20 free per month checking account would still be free until the 21st transaction in the month. Services offering EFTs

CU@home® On The Phone (Audio Response) CU@home® lets you access your accounts electronically by touch-tone telephone from anywhere in the United States by dialing (505) 293-0500 (in Albuquerque) or (800) 947-5328 (outside of Albuquerque). Available Phone Services with CU@home® On The Phone By keying in your PIN and the proper command on a touchtone phone, you will be able to: 43

1) Request a withdrawal by check from your Regular Share or Share Draft checking account to be mailed to the primary Member at his/her address of record or to be picked up at a branch; 2) Transfer funds between your Share Draft Checking, Regular Share or Investors’ Choice Money Market Accounts, Loans with SLFCU and SLFCU credit cards; 3) Verify your account balances; 4) Find out the amounts and dates of deposits and withdrawals on your accounts; 5) Request a Line of Credit advance, if you have an active line of credit (a deposit of the loan advance is made to your Regular Share, Investors’ Choice Money Market, or Share Draft checking account.); 6) Find out if a check has cleared on your Share Draft checking account; 7) Find out your loan balance(s) or loan payment due date; 8) Transfer funds from your Regular Share, Investors’ Choice Money Market or Share Draft checking account to make an SLFCU loan payment; 9) Find out the interest you have paid on your loans and dividends earned on your accounts; 10) Find out the posting date and amount posted of your most recent direct deposit and/or payroll deduction; 11) Find out current loan and savings rates; 12) Change your CU@home® PIN; 13) Transfer funds to your SLFCU credit card to make a payment; 14) Find out the balance of your SLFCU credit card and the amount due for your next payment; 15) Schedule a recurring transfer to another SLFCU account.

Generally, CU@home® is available seven days a week, twentyfour hours a day. The only time you will not be able to access your account is during computer system maintenance. Please visit www.slfcu.org for a downtime schedule.

Limitations on CU@home® On The Phone All transactions are limited to available funds in your Accounts. CU@home® transfers out of your Regular Share Savings Accounts are limited by federal regulation to six per month. Investors’ Choice Money Market Accounts are also subject to dollar amount limits as explained in the Truth in Savings Disclosure.

Unauthorized Phone Transactions Notify the Credit Union immediately if you believe an unauthorized person has gained access to your secret CU@home® On The Phone PIN. You should also change your PIN immediately. Call CU@home® On The Phone to obtain instructions for changing your PIN by telephone. See “Unauthorized Transactions” in the “Terms Applicable to All EFTs” section of this Handbook for information on how to contact the Credit Union and other information on your potential liability for unauthorized transactions. 44

Additional Terms Applicable to CU@home® On The Phone Please read the section below entitled “Terms Applicable to All EFTs” carefully. These terms apply to CU@home® On The Phone.

CU@home® Online and BillPayer If you have a personal computer with Internet access and a CU@home® Online, you can use CU@home® and BillPayer with your password to conduct transactions and pay bills.

Available Services By keying in your User ID and password and the proper commands, you can use any computer with Internet access to: 1) Verify your account balances and download account statements; 2) Transfer funds between accounts at the Credit Union; 3) Request a check withdrawal to be mailed to you at your address of record from your Regular Share Savings, Share Draft, or Investors’ Choice Money Market Accounts; 4) Review your Share, Share Draft, Share Certificate, Investors’ Choice Money Market and loan account histories; 5) Find out your loan payments, due dates and payoffs; 6) Review prior year and current year-to-date interest paid/dividends received; 7) Find out your current loan and dividend rates; 8) Change your CU@home® password; 9) Send a secure e-mail message to SLFCU; 10) Apply for a loan; 11) Order checks; 12) Request stop payments on checks you have written; 13) Request a wire transfer; 14) Open a new sub account; 15) Change your address; 16) View and change payroll distribution(s); 17) View statements and check images; 18) Schedule recurring transfers; and 19) Make credit card payments (note that credit card payments may take up to three days to process, and future cash advances may be delayed until your payment is posted to your account); and 20) Transfer funds to and from accounts at other financial institutions; and 21) For members who qualify for the service, make deposits of checks into your account. With Bill Payer, you can pay your bills automatically without writing a check.

Please visit www.slfcu.org for a current CU@home® availability schedule to see when CU@home® is scheduled to be available for your use. 45

Limitations All transactions are limited to available funds in your accounts. CU@home® Online transfers out of your Regular Share Savings Account count toward the six-per-month limit (see the Deposits and Withdrawals section of this Handbook for details). Transfers out of your savings accounts are subject to a limit each month according to Regulation D of the Federal Government. Investors’ Choice Money Market Account deposits and withdrawals are also subject to dollar amount limits as explained in the Truth in Savings Disclosure. Unauthorized CU@home® and Bill Payer Transactions Notify us immediately if you believe an unauthorized person has gained access to your secret CU@home® password. See “Unauthorized Transactions” in the “Terms Applicable to All EFTs” section of this Handbook for information on how to contact the Credit Union and other information on your potential liability for unauthorized transfers.

Other Bill Payer Terms As a user of the bill payment service accessed through Sandia Laboratory Federal Credit Union’s CU@home® software, you authorize the Credit Union to transfer funds and make payments for you as authorized from time to time. The Credit Union and any other entities involved in the payment system cannot guarantee the time any payment will reach any of your creditors. Proper crediting of payment amounts is dependent on the account/payee information provided by you. If you wish to discontinue the bill payment service, please notify SLFCU via a CU@home® secure message, an e-mail to [email protected] or call the Electronic Branch at (505) 293-0500 or 800-947-5328. With BillPayer, you can schedule bills to be paid to any of your creditors. Payments can be sent from the BillPayer system electronically or as a paper check, depending upon your creditor’s (payee’s) ability to receive funds electronically. SLFCU has no control if your payment will be sent electronically or as a paper check, and most payments (over 70%) are sent electronically. If the Payment Process Date falls on Saturday, Sunday or a federal holiday, the payment will be sent on the business day prior to the weekend or holiday date. Payments can be scheduled on a recurring basis so they are processed for the same amount at the frequency you specify. Payments can also be scheduled with a single frequency, thereby only submitting one payment. Regardless of which option you choose, please be aware of the following time constraints for each processing method to be sure that your payments will be made on time and to ensure you have sufficient funds to make your payment on the day the funds will be deducted from your account. Please note the following differences in payment processing according to the processing method. 46

Electronic Payment Processing Payments that are sent electronically will be deducted from your account on the Payment Process Date. The Payment Process Date for electronic payments should be set at least two business days prior to the Payment Due Date. Funds for electronic payments must be available in your account on the Payment Process Date in order for the payment to be processed. If you have a pre-approved source of overdraft protection with available funds or credit, funds will be transferred accordingly.If the payment is not made due to insufficient funds, including insufficient funds or credit available in overdraft protection, we will make one, and only one, additional attempt to process the payment on the next business day after the originally scheduled Payment Process Date. If the payment is not made on either the original Payment Process Date or the next business day, you must reschedule the payment. Paper Check Processing Payments that are sent as a paper check will be processed (mailed) on the Payment Process Date. Because paper check payments may take up to seven business days to reach certain third party payees (for example, your church, dry cleaner, or paper carrier), the payment process date should be set at least seven business days ahead of the Payment Due Date. SLFCU’s bill payment processor will print the paper checks with SLFCU’s routing number and your designated checking account number. Paper check payments will be deducted from your account when the paper check clears our institution via the normal check-clearing process. Please refer to the Share Draft checking accounts section of the Universal Disclosure and Member Handbook for additional information on check payment and processing.

The Credit Union is not responsible for problems associated with late BillPayer payments, such as alleged harm to your credit standing or late fees, unless the payment is late because we failed to follow your timely and accurate payment instructions. We will not be responsible for inaccurate posting of payments by payees, items lost or mis-delivered by the postal service, your failure to provide timely and accurate instructions, or other causes outside our reasonable control. If you experience harm to your credit standing as a result of our bill payment processing error, our responsibility is limited to working with your creditor to correct any negative information reported about you to credit bureaus. The Credit Union will process bill payment requests only to payees as authorized by you. We are not responsible for and may not process a bill payment request if the required transaction information is incomplete.

Once a payment has been made consistent with your instructions, it is final and cannot be revoked. You must resolve any disputes, including disputes about failure to correctly credit your payments, directly with the payee. 47

If you contact us before the payment is withdrawn from your account, we can stop the payment. Any efforts to stop a payment after this time is solely an accommodation to you, cannot be guaranteed and we will not be responsible if we fail to stop the payment. There may be a charge for stop payments that you request. Please see the Schedule of Fees for fee details.

CU@home® Deposit CU@home® Deposit allows you to make secure, real-time check deposits that post to your account immediately anywhere you have access to a computer, Internet connection and a scanner. No need to mail checks or visit a branch or ATM, just follow a few simple steps as prompted by the system and enjoy access to available funds deposited using CU@home® Deposit. A portion of your deposit may not be immediately available based upon check hold policies. See the “Funds Ability Policy” section for details when your deposits may be available for withdrawal.

Not everyone will have access to CU@home® Deposit. There are eligibility requirements to use CU@home® Deposit such as having an account in good standing, enrollment in CU@home® Online, and not opting out of Shared Branching. Contact SLFCU to see if you qualify for this service. There are other requirements to use this service to, such as having a TWAIN compliant scanner, an Internet connection, and a compatible Internet browser.

Not all checks are eligible for deposit. The following checks are prohibited: 1) Checks that are payable to any person or entity other than you (no third-party checks); 2) Checks that are drawn, or otherwise issued, by you or any affiliate of yours on any account of yours or of such affiliate; 3) Checks that you know or suspect, or should know or suspect, are fraudulent or otherwise not authorized by the owner of the account on which the check is drawn, including checks received via Internet solicitations; 4) Checks that have been previously endorsed by a financial institution (a bank, savings and loan, or a credit union) and are either “substitute checks” or Image Replacement Documents (“IRD”) that purport to be substitute checks, without SLFCU’s prior written consent; 5) Checks that are drawn on financial institutions that are located outside of the United States or Territories of the United States; 6) Checks that are Remotely Created Checks, as that term is defined in Reg CC; or 7) Checks which are not acceptable to credit union for remote deposit into a deposit account, including: • Savings Bonds • Mutilated Checks 48

Additional Terms Applicable to CU@home® and Bill Payer Please read the section below entitled “Terms Applicable to All EFTs” carefully. These terms apply to CU@home® and BillPayer. ATM Card or a MasterMoney® Check Card

Available ATM and Check Card Services Your Check Card bears the MasterCard® logo, but it is a debit card, not a credit card. Whenever you use your ATM Card or a MasterMoney® Check Card for a transaction, the money is deducted from your Credit Union Account.

With Check Card merchant transactions and Point of Sale (POS) transactions the amount of the transaction is deducted from your checking account as soon as the transaction is posted to your account. You should be aware that there may be a time lag between the time a merchant obtains an authorization on your Check Card and the time the transaction posts to your account. An authorization will result in a hold on your funds for the amount of the transaction for a limited time, generally not in excess of three business days. If the transaction fails to post before the hold expires, the hold will be released and the transaction amount will be available to pay other items presented on your account. You are responsible for ensuring that you have sufficient available funds on deposit to cover all of your transactions regardless of when they post. Your ATM or Check Card may be used on designated networks, which are indicated on the back of your card and may change from time to time.

You can use your ATM Card or a MasterMoney® ATM/Check Card and randomly generated PIN on the designated networks to: 1) Withdraw cash from your Share Draft Checking and Regular Share Savings Accounts, up to $400 per calendar day. 2) Make balance inquiries on your Regular Share and Share Draft checking accounts. 3) Transfer funds between Regular Share and Share Draft checking accounts. 4) Obtain cash from merchants and financial institutions that offer MasterCard® cash advances. 5) Make deposits to your Share Draft Checking and Regular Share Savings Accounts (only at CU Anytime® ATMs in New Mexico and select CO-OPSM ATMs. Not all CO-OPSM ATMs accept deposits). 6) Make a loan payment (at select CU Anytime® ATMs only).

Available services – MasterMoney® ATM/Check Card only 1) Use your ATM/Check Card to make purchases up to $1,000 per day when you use your PIN number. 2) Your ATM/Check Card has a limit of $10,000 per day for purchases when you use the non-PIN side of your card. 49

3)

The non-PIN side of your card can usually be activated when a merchant or cashier asks if this is a credit or debit transaction and you choose credit. Although this is neither a credit card nor a credit purchase, when the transaction is run through as a credit, your limit will be $10,000 per day. You may contact us for an increase if you know you will be making a large purchase. The increase will be temporary and expire 24 hours after your request. Pay for goods or services wherever MasterCard® is accepted.

Limitations on Transactions Cash withdrawals and transactions are generally limited to your available checking account balance or the amounts indicated above. Although you have sufficient funds in your checking account to cover a requested withdrawal, it may be possible that an ATM, merchant, financial institution or other entity that honors the ATM Card or a MasterMoney® ATM/Check Card will not be able to determine your actual balance and/or to process available overdraft protection. Therefore, we will not be liable for the refusal or inability of any such ATMs or entities to allow you to use your ATM Card or a MasterMoney® ATM/Check Card or for their retention of your ATM Card or a MasterMoney® ATM/Check Card.

ATM Card & MasterMoney® ATM/Check Card Terms Use of an ATM Card or a MasterMoney® ATM/Check Card will be treated as though it were a check and will also be governed by the checking account terms in this Handbook (including any overdraft protection you have available), except that 1) We may charge withdrawals to the checking account in any order we determine consistent with the law. If funds are not sufficient to cover all withdrawals, we may pay ATM Card or a MasterMoney® Check Card withdrawals and dishonor regular checks, or vice versa. 2) We cannot honor stop payment requests on ATM Card or a MasterMoney® ATM/Check Card transactions. 3) You must attempt to settle any disputes you have with merchants regarding the goods or services you purchased with an SLFCU ATM or a MasterMoney® ATM/Check Card directly with the merchant. You agree to indemnify SLFCU and hold us harmless from any claims or liability resulting from merchant disputes.

Other ATM Card or a MasterMoney® ATM/Check Card Terms Although other documents you may receive when you initiate transactions with your ATM Card or a MasterMoney® ATM/Check Card, such as sales receipts, may have contract terms printed on them, your ATM Card or a MasterMoney® ATM/Check Card agreement with the Credit Union is limited to the terms in this Handbook, including both the ELECTRONIC FUNDS TRANSFER section and the checking account Terms. Cash withdrawals and purchases made in foreign countries and foreign currencies will be charged to your checking 50

account in U.S. Dollars. The conversion rate to U.S. Dollars will be made in accordance with the operating regulations for international transactions established by MasterCard® International, Inc., through whose facilities ATM Card or a MasterMoney® ATM/Check Card withdrawals are handled.

Returns and Merchant Disputes Merchants and others who honor the ATM Card or a MasterMoney® ATM/Check Card may give credit for returns or adjustments. When we receive the credit from the merchant or other entity, we will credit your account for that amount. Check Cards fall under Federal Reserve Regulation E, not Federal Reserve Regulation Z, because they are debit cards, not credit cards. Unlike Regulation Z, Regulation E does not give you any special rights if you have a dispute with a merchant regarding the goods or services you purchased with a debit card.

However, MasterCard® operating rules give you certain rights to dispute merchant transactions.

Liability for Unauthorized Use General Rule: In general, MasterCard® operating rules specify that you will have no liability for unauthorized use of your MasterMoney® ATM/Check Card. Zero Liability is provided under the following conditions: • Your account is in good standing. • You have exercised reasonable care in safeguarding your card. • You have not reported two or more unauthorized events in the past 12 months. Please visit www.mastercard.com to read MasterCard’s zero liability statement. See the “Unauthorized Transactions – All EFTs” section for additional liability and other information.

Loss Reporting: You agree to report the loss, theft or unauthorized use of your ATM Card or a MasterMoney® ATM/Check Card promptly. All members of the Credit Union benefit if losses for unauthorized ATM Card or a MasterMoney® ATM/Check Card use are kept to a minimum. We can terminate Credit Union services, including your ATM Card or a MasterMoney® ATM/Check Card privileges, if your negligence in failing to report unauthorized transactions causes us a loss. Additional Terms Please read the section below entitled “Terms Applicable to All EFTs” very carefully. The terms apply to your ATM Card or a MasterMoney® ATM/Check Card.

Automated Clearinghouse (ACH) Services ACH transfers are regular automatic deposits into your account, such as direct deposit of your payroll or retirement benefits, and regular automatic payments out of your account, 51

such as transfers to pay health club dues. ACH transfers will occur only if you authorize them.

Preauthorized transfers are handled through the ACH system. They are subject to national and local ACH rules, Article 4A of the Uniform Commercial Code, Federal Reserve Bank Operating Circulars, and federal regulations.

Credits to your accounts received via ACH are provisional until we receive final settlement through the Federal Reserve. If we do not receive final settlement, we will deduct the amount of the credit from your account balance, and the payor will not be considered to have paid the amount to you. Under the operating rules of the National Automated Clearing House Association, which are applicable to ACH Transactions involving your account, we are not required to give next day notice to you of receipt of an ACH item and we will not do so. However, we will continue to notify you of the receipt of payments in the periodic statements we provide to you. We may accept on your behalf payments to your account which have been transmitted through one or more Automated Clearing Houses (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 New Mexico as provided by the operating rules of the National Automated Clearing House Association, which are applicable to ACH transactions involving your account.

ACH Schedule ACH transactions are subject to the Federal Reserve schedule, and as such, will be made on business days, Monday through Friday, excluding federal holidays. If you schedule your ACH payment, or you have a recurring ACH transfer that falls on a weekend or holiday, it will be completed the following business day. Available ACH Services ACH may be used to make deposits, to make loan payments, and to pay bills on dates and in amounts that you specify. Limitations on ACH Services For deposits, the payor (the person or entity that pays you money) must offer direct deposit via ACH in order for you to receive funds in this manner. For payments, the creditor (the person or entity to whom you pay money) must accept payments via ACH transfer. ACH payments out of your Regular Share and other Savings Accounts are limited to three per month.

Electronic Check Conversions Electronic Check Conversions are one of the transaction types that may be made from your account using information from 52

your check. You may authorize a merchant or other payee, to use information from your check, to make a one time electronic payment for paying bills or to make purchases from your checking account. You can purchase goods or pay for services and authorize a merchant or service provider to convert your check into an electronic funds transfer.

At the time you offer a check to a merchant or service provider, you may be asked to authorize the merchant or service provider to electronically collect a charge in the event that the check is returned for insufficient funds and/or other fees. Paying such a fee electronically is an electronic funds transfer. Your authorization to make these types of electronic funds transfers may be expressed in writing, implied through the posting of a sign or your participation in the initiation of the processing of the transaction. This can also happen when you provide information from your check or an account to another by telephone, mail, drop box, Internet or otherwise, who then converts the information given to an electronic transaction, ACH or otherwise. You agree that any such transaction is subject to all applicable terms and conditions set forth in this Membership Agreement. Some merchants or service providers will initiate an electronic funds transfer to collect a charge in the event a check or draft is returned for insufficient funds. You generally have 60 days from the mailing of the first statement on which the item appeared to make a claim disputing the charge. Please see the section titled, “Unauthorized Transactions – All EFTs” for information on filing a dispute.

Procedure and Right to Stop ACH Payments If you have authorized us in advance to make regular ACH payments out of your account, you can stop any of these payments or cancel all future payments to that payee. Here’s how: 1) Call us or write us at the telephone number and address listed in the “HOW TO CONTACT US” section at the end of this disclosure, in time for us to receive your request three business days before the payment is scheduled to occur. If you call, we can ask you to confirm your oral request in writing within 14 days. If you fail to confirm your oral request, it may lapse. 2) To prevent any future transfers, you should also notify your initiator in writing to stop the charges and send us a copy. 3) If you order us to stop a payment three business days before it is scheduled to occur, and we do not do so, we will be liable for your direct losses or damages, not to exceed the amount of the payment. 4) There is a fee for each stop payment or cancellation. See the Schedule of Fees.

53

Notice of Payments in Varying Amounts If your regular payments vary in amount, the person you are going to pay is responsible for notifying you of the amount at least ten days in advance of the scheduled payment date. You may elect to receive this notice only when the payment amount will vary by more than a specified amount from the previous payment, or when the amount would fall outside certain limits you set. Otherwise, documentation will appear only on your periodic account statement.

Error Correction for ACH Transactions If an ACH transfer is made to your account in error (for example, if your employer inadvertently makes a double deposit of your net pay), you agree that we can reverse the erroneous payment without advance notice to you, although your statement and account history (available through CU@home®) will reflect such reversals. If an error correction results in a negative balance in your account, you agree to immediately restore your account to a positive balance on our written demand. If you do not do so, you agree that our Right to Recover Obligations from Shares applies. If we cannot recover what you owe by exercising our Right to Recover Obligations from Shares, you agree that our right to recover Collection Costs applies. Terms Applicable to All EFTs

Responsibility for Transactions 1) If you authorize us to issue a duplicate ATM Card or a MasterMoney® ATM/Check Card to someone, or if you give your ATM Card or a MasterMoney® ATM/Check Card or PIN for your ATM Card or a MasterMoney® ATM/Check Card or CU@home® to another person, you are authorizing that person to withdraw funds and perform other transactions on your accounts covered by this agreement, regardless of any limits to which you and the authorized user have agreed. You are responsible for any transactions that person makes. We are not subject to agreements between you and other people limiting their use of your EFT devices. This rule also applies to any other EFT service that may become available in the future. 2) You consent to the terms of this agreement by using any EFT access device (such as an ATM Card or a MasterMoney® ATM/Check Card, or CU@home®). You continue to be bound for all transactions resulting from the use of EFT devices until you give us written notice to deactivate the device and, if it is a physical device such as a plastic card, return it to us. a. Any person who applied for the ATM Card or a MasterMoney® ATM/Check Card, or PIN, or signs an ATM Card or a MasterMoney® ATM/Check Card, or uses an EFT device for transactions, is equally obligated (jointly and severally) with any other such person to meet the terms of this agreement. b. You are also obligated to repay any charges resulting from the use of any EFT device by another person 54

3)

4) 5)

with your express or implied permission, whether or not the person stays within the limits of use you set for them. c. Any persons who use an EFT device are also obligated to repay the Credit Union for all charges incurred because of their use of the access device. d. You remain bound to pay for charges under this agreement even though another person has been directed to pay the debt by an agreement or court order to which the Credit Union is not a party, such as a divorce decree. A release from the obligation to pay amounts owed to us will be valid only if in writing and signed by an authorized Credit Union employee or if pursuant to a court order in an action to which the Credit Union is a party. You understand and agree that if you or anyone you authorize to use an EFT device gives conflicting instructions on an electronic keypad (such as a computer or ATM keypad) and a deposit slip or other written instruction, the Credit Union will follow the instructions given on the electronic keypad. You agree that if you or anyone acting with you uses an EFT device with fraudulent intent, we consider that transaction to have been authorized by you. All EFTs are subject to Credit Union verification.

Prohibition on Unlawful Transactions You agree that you will not use or allow others to use your ATM Card or a MasterMoney® ATM/Check Card or any other EFT device for illegal transactions such as illegal on-line gambling. We have the right (but not the obligation) to refuse transaction requests or terminate your ATM/Check Card ATM Card or other EFT privileges if we reasonably believe that you are attempting to use, or allowing others to use, your Card or other EFT device for illegal transactions. However, ultimate responsibility for determining whether a transaction is legal rests with you, not the Credit Union. You cannot use the illegality of an authorized transaction as a defense to your obligation to pay it.

Documentation of Transactions Each time you use an ATM Card or a MasterMoney® ATM/Check Card at an ATM, you will receive an acknowledgement receipt describing the transaction (unless an ATM notifies you in advance that it cannot issue a receipt or, at some machines, you elect not to get a receipt.) You will also get a receipt when you use your MasterMoney® ATM/Check Card at a Point of Sale terminal or if you use it for a signature transaction. If your transaction is for $15 or less, you may not receive a receipt from an ATM, Point of Sale or signaturebased transaction. Merchants are no longer required to issue receipts for ATM Card or MasterMoney® ATM/Check Card transactions under $15. Keep the receipts you do receive to update your records and to verify your monthly statements on which these transactions will also appear. CU@home® transactions are reflected only on your monthly statement. 55

If you have Internet access, you can use CU@home® to review your account status at any time.

Excess Withdrawals Withdrawals or transfers must be backed with actual available funds in your Credit Union Share Draft Checking or Share Savings Accounts. If you have elected overdraft protection on your checking account, we will make a loan advance or transfer funds from your designated overdraft protection account source sufficient to cover any negative account balance due to EFT withdrawals up to your available credit limit or the available balance in your account, depending on the overdraft protection source(s) you have. Overdraft protection is only available on checking accounts. Remember that Regular Share and other Savings Accounts designated as overdraft protection sources are subject to a limit of six overdraft transfers per month. Funds will be taken out of your accounts in the order you designate on your separate Overdraft Authorization form. Unless you have authorized and have available Overdraft Protection, cash may not be dispensed if available funds in the accessible accounts are not sufficient. It is your responsibility not to attempt to withdraw cash against deposits that have not yet cleared in the time permitted by the law and MasterCard® and Credit Union procedures. By requesting an ATM Card or a MasterMoney® ATM/Check Card when your Share Draft checking account is linked to a line of credit or credit card for overdraft protection, you are requesting issuance of a credit card.

In rare cases, system malfunction may result in your being able to electronically withdraw funds from an account that does not have sufficient funds to cover the transaction and on which you do not have overdraft protection. If this happens, you are responsible for restoring any amount by which your account is overdrawn. If you do not, our Right to Recover Obligations from Shares and our right to recover Collection Costs apply. Unauthorized Transactions - All EFTs

Your Liability for Unauthorized Use Tell us AT ONCE if you believe that your CU@home® PIN, ATM Card or a MasterMoney® ATM/Check Card or PIN, has been lost or stolen or otherwise made available to an unauthorized person, or that someone has transferred or may transfer money from your account without your permission. Please refer to the “HOW TO CONTACT US” section at the end of this Handbook for how to notify us. Telephoning is the best way to keep losses down. You could lose all the money in your account, plus your maximum overdraft line of credit if you fail to promptly report unauthorized ATM Card or a MasterMoney® ATM/Check Card, CU@home® and BillPayer use or unauthorized use of an ATM Card or a MasterMoney® ATM/Check Card under certain circumstances.

If you believe your Card or PIN or your CU@home® PIN has been lost or stolen or otherwise made available to an 56

unauthorized person, and you tell us within two (2) business days after you learn of the loss or theft, you can lose no more than $50, if someone used your Card PIN or both without your permission. However, if you DO NOT tell us within two (2) business days after you learn of the loss or the theft of your Card and/or the loss, theft, or other unauthorized dissemination of your PIN, and we can prove we could have stopped someone from using your Card and/or PIN and/or password without your permission, you could lose as much as $500.

Also, if your statement shows transfers that you did not make, tell us at once. If you DO NOT tell us within sixty (60) days after the statement was mailed to you, you may not get back any money you lost after sixty (60) days, if we can prove that we could have stopped someone from taking the money if you had told us in time. That means you could lose all the money in your account plus your maximum overdraft line of credit. If a good reason (such as a long trip or a hospital stay) kept you from telling us, we may extend the time periods.

Please refer to the separate “MasterMoney® ATM/Check Card” section above for general rules about unauthorized use of your Check Card.

Authorized Users: Please remember, any person who receives an additional access device (ATM Card or MasterMoney® ATM/Check Card PIN or CU@home® PIN), or whom you permit (either by express or implied permission) to use your access device would be able to withdraw all of the money in your account. We refer to such persons as authorized users, and you agree that all authorized users may withdraw funds from your accounts with the access device. For example, if you give your friend your ATM Card or MasterMoney® ATM/Check Card in May and tell her to buy groceries, and she obtains your card in November and uses it to get cash out of an ATM, the November transaction is considered authorized by you. The only way you can stop an authorized user from withdrawing funds from your accounts is to notify us to cancel your access device. You remain liable for any authorized use of your EFT devices that occurs before you tell us to cancel them.

Credit Union Liability for Failure to Complete Electronic Fund Transfers If we do not properly complete an electronic fund transfer according to our agreement with you, we will be liable for your direct losses or damages. However, there are some exceptions. 1) We will not be liable, if: a. through no fault of ours, your account does not contain enough money, or you don’t have available credit, to make the transaction; 57

2)

3)

4)

5)

b. the ATM where you are making the transaction does not have enough cash; c. the equipment was not working properly and you knew about the breakdown when you started the transaction; d. the money in your account is subject to legal process or other claim; e. your ATM Card, MasterMoney® ATM/Check Card, or PIN has been reported lost, stolen, or missing and we have blocked the account; f. circumstances beyond our control such as fire, flood, electrical failure, or malfunction of the central data processing facility prevent the completion of the transaction despite our reasonable precautions; or g. there are other lawful exceptions established by the Credit Union and you are given proper advance notice of them. In no event will the Credit Union be liable for consequential, indirect or punitive costs or damages. The Credit Union will carry out instructions given to us electronically, whether through the ATM, CU@home® or a Point of Sale (POS) terminal, or in writing, such as through a pre-authorized transfer instruction or ATM/CheckCard signature transaction. We will not incur liability for doing so in a reasonable manner. You agree to indemnify and save the Credit Union harmless from all suits, costs, claims, damage, or liability that we sustain as a result of carrying out in a reasonable manner instructions received from you or any authorized user through an ATM, POS terminal, signature transaction, or any other EFT service that is now available or becomes available in the future. The Credit Union may arrange for the availability of ATMs at various locations with access during non-business hours for the convenience of its members. However, ATM sites are not subject to our control. You assume the risk of using them since the Credit Union does not in any way warrant the security or safety of any location. The Credit Union is not responsible for wrongful acts committed by anyone who is not an authorized agent or employee of the Credit Union regarding your use of ATMs. The Credit Union will not be liable for consequential damage that you claim results from our failure to complete a transaction. Security: Avoid using ATM machines alone at night or at sites that appear to have the potential for assault or robbery. Have deposit slips and any other paperwork filled out before you reach the ATM. Put your money away and leave the site as soon as you have completed the transaction. Don’t leave your receipts at the machine. Don’t key your access code into the machine when someone is in a position to see the number.

Privacy With respect to Electronic Fund Transfers, the Credit Union will disclose information about your accounts or the transfers you make only (a) when necessary to complete a transfer, (b) to 58

verify the existence and condition of your account for a third party such as a credit bureau or merchant, (c) in order to comply with government agency or court orders; or (d) if you give us written permission. Please refer to the Sandia Laboratory Federal Credit Union privacy policy, and to the section titled Privacy at the beginning of this Handbook, for more information on our maintenance of the security of member personal and financial information.

Change in Terms – Cancellation 1) The Credit Union may change the terms of the EFT section of this Handbook, including the types of EFTs available, by mailing or delivering a written notice or amended Handbook to you at your last known address on our records for the account. When we change the terms of EFTs, we will give you at least 21 days’ written notice. You agree that we may immediately terminate your EFT services without prior notice if any of the following occur: a) you (or any authorized user of your ATM Card or MasterMoney® ATM/Check Card, or card PIN or CU@home® PIN) breach this or any other agreement between us (including loan agreements); b) we have reason to believe that there has been or may be an unauthorized use of any of your Cards or PINs; c) there are conflicting claims to the funds in your account; d) you or any authorized signer on your account requests us to do so; e) you withdraw funds at a time when funds are not available in your Credit Union accounts accessed via EFT and you do not have an available source of overdraft protection; f) it is reasonably necessary to protect the security of the Credit Union or your accounts; or g) you deposit non-negotiable items at ATMs. 2) Your Cards are the property of the Credit Union and you agree to return them to us upon request. Delayed Availability of Deposits Availability of funds deposited at ATMs may be delayed. Please refer to the “FUNDS AVAILABILITY POLICY” section. You are responsible for not attempting to use EFT devices to withdraw funds before they become available. Reference to the FUNDS AVAILABILITY POLICY will help you comply with this rule.

Additional Terms 1) If an ATM is unable to complete a transaction three times in a row, usually because of the failure to key in the proper PIN, for your protection the ATM may retain the Card. 2) Business days are Monday through Friday. The Credit Union may be open to provide limited services on other days, but we do not consider those days “business days” as that term is used in this disclosure. 59

In Case of Errors or Questions about Your Electronic Transfers If you think that an electronic transfer shown on your statement is wrong, or if you need more information about a transfer, contact us at the telephone number or address listed under the “HOW TO CONTACT US” section at the end of this Handbook. Please tell us all the information requested under the section entitled “WHAT TO TELL US IN CASE OF ANY ERROR OR INQUIRY” at the end of this disclosure. We must hear from you no later than sixty (60) days after we sent you the FIRST statement on which the error or problem appeared. If you tell us orally, we may require that you send us your complaint or question in writing within ten (10) business days. We will tell you the results of our investigation within ten (10) business days (twenty (20) business days for new accounts) after we hear from you and will correct any error promptly.

If we need more time, however, we may take up to forty-five (45) days (ninety (90) business days for Point-of-Sale transactions, transactions involving foreign countries, or new accounts) to investigate your complaint or question. If we decide to do this, we will re-credit your account within ten (10) business days (twenty (20) business days for new accounts) for the amount you think is in error, so that you will have use of the money during the time it takes us to complete our investigation. If your complaint or question relates to a claim of unauthorized use of your ATM Card or a MasterMoney® ATM/Check Card and your account is not new, we will provisionally re-credit your account within ten (10) business days. A “new account” is one open thirty days or less. If we ask you to put your complaint or question in writing and we do not receive it within ten (10) business days, we may not re-credit your account. We will send you a written explanation of the results of our investigation within three (3) business days after we finish our investigation. You may ask for copies of the documents that we used in our investigation.

If we decide to reverse a provisional credit, we will notify you, and will pay any items that overdraw your account for five (5) business days after we send you this notice without imposing an overdraft fee, but only to the extent the overdrafts are equal to or less than the amount of the provisional credit we deducted from your account. If any item overdraws your account by more than the amount of the provisional credit, you will be charged an overdraft fee. You agree to immediately restore to the Credit Union the amount of any overdraft on your accounts.

60

TABLE OF CONTENTS

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

GENERAL AGREEMENTS OF MEMBERS. . . . . . . . . . . . . . . 5 Joining the Credit Union. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Membership Requirements and Eligibility for Services . . . . 5 Denial of Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Meeting Your Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 If You Experience Financial Difficulty . . . . . . . . . . . . . . . . . . 7 Your Consent to Our Right to Recover Obligations from Shares (Right of Offset) . . . . . . . . . . . 8 Collection Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Fees and Damages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Governing Agreements and Laws . . . . . . . . . . . . . . . . . . . . 9 Backup Withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Electronic Service Options . . . . . . . . . . . . . . . . . . . . . . . . . 10 Change of Address. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Waiver; Modification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Revocable Authorization to Check Credit. . . . . . . . . . . . . . 11 Your Consent to the Terms of this Handbook . . . . . . . . . . 11 YOUR CREDIT UNION SHARE ACCOUNTS . . . . . . . . . . . . 11

General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Earnings and Payment of Dividends . . . . . . . . . . . . . . . 11 Account Ownership and Transfer of Proceeds at Death . . . . . . . . . . . . . . . . . . . . . . . . . 12 Changing Account Ownership or Beneficiaries . . . . . . . 15 Continuing Authorization to Open Accounts . . . . . . . . . 15 Our Obligation to Follow Your Instructions . . . . . . . . . . 15 Privacy and Disclosure of Information. . . . . . . . . . . . . . 16 Disclosure to Owners, Obligors, and Persons Authorized on Your Accounts . . . . . . . . . . . . . . . . . 16 Disclosures to Third Parties . . . . . . . . . . . . . . . . . . . . . 16 Deposits and Withdrawals. . . . . . . . . . . . . . . . . . . . . . . 17 Federal Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Dividend Calculation, Compounding, and Crediting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Permanent Records and Statement Review . . . . . . . . . 19 In Case of Errors or Inquiries about your Statement . . . . . . . . . . . . . . . . . . . . . . . 20 Other Errors or Inquiries . . . . . . . . . . . . . . . . . . . . . . . . 20 Electronic Transfer Errors or Unauthorized Use . . . . . . 21 Inactive Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Dormant Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Closing Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Escheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Our Handling Accounts In Case Of Your Death or Incompetence . . . . . . . . . . . . . . . . . . . . . 22

Savings Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Regular Savings Account . . . . . . . . . . . . . . . . . . . . . . . 23 Investors Choice Money Market Account . . . . . . . . . . . 23 1

HOW TO CONTACT US Call:

(800) 947-5328 or (505) 293-0500 7:30 a.m. to 6:00 p.m. Monday through Friday and 8:30a.m. to 2:00 p.m. Saturdays (Mountain Time) excluding holidays. Write to us at: Member Service Department Sandia Laboratory Federal Credit Union P.O. Box 23040 Albuquerque, NM 87192-1040 Visit us on the Web: WWW.SLFCU.ORG email: [email protected] Fax: (505) 237-3737 (877) 256-3737

You may also visit any Credit Union office. WHAT TO TELL US IN CASE OF ANY ERROR OR INQUIRY

1) Tell us your name;

2) Account number;

3) Describe the error or the transfer about which you are unsure;

4) Explain, as clearly as you can, why you believe there is an error;

5) Tell us the dollar amount;

6) The date in question; and

7) Your daytime telephone number.

© 2011 Greene & Allison LLP. All rights reserved

Great SLFCU service – even when you’re far from home.

ALBUQUERQUE, NM AREA Mailing Address PO Box 23040 Albuquerque, NM 87192-1040

Phone Center 505.293.0500 or 800.947.5328 (800.94.SLFCU)

Credit Union Center 3707 Juan Tabo NE, 87111

Fax 505.237.3737 877.256.3737 toll-free

Cottonwood 3740 Ellison Road NW, 87114

Email [email protected]

Edgewood 150 State Road 344, Suite B Edgewood, NM 87015

Website & Online Banking www.slfcu.org

Goodrich (Inside Goodrich Corporation)

6600 Gulton Court NE, 87109 Kirtland Wyoming & I Street, KAFB, 87117 Los Lunas 2700 Palmilla Road NW Los Lunas, NM 87031 Paseo del Norte (at Ventura) 8920 Holly NE, 87122

Wire Transfer or Set-Up Direct Deposit Use ABA Routing # 307083911 28,000 No-Fee ATMs Nationwide ATM Locator at www.slfcu.org or 888.748.3266 (888.SITE.CO.OP) 4,000 Shared Branch Locations Nationwide Shared Branching Locator at www.slfcu.org or 800.919.2872 (800.919.CUSC)

Tech Park 1301 Britt Street SE, 87123

YOUR SANDIA LABORATORY FEDERAL CREDIT UNION UNIVERSAL DISCLOSURE & MEMBER HANDBOOK

Federally insured by NCUA

LIVERMORE, CA Mailing Address PO Box 2908 Livermore, CA 94551-2908 Livermore East 7011 East Avenue, 94550 Livermore Downtown 39 South Livermore Avenue Suite 101, 94550

December 2011

TABLE OF CONTENTS

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

GENERAL AGREEMENTS OF MEMBERS. . . . . . . . . . . . . . . 5 Joining the Credit Union. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Membership Requirements and Eligibility for Services . . . . 5 Denial of Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Meeting Your Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 If You Experience Financial Difficulty . . . . . . . . . . . . . . . . . . 7 Your Consent to Our Right to Recover Obligations from Shares (Right of Offset) . . . . . . . . . . . 8 Collection Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Fees and Damages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Governing Agreements and Laws . . . . . . . . . . . . . . . . . . . . 9 Backup Withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Electronic Service Options . . . . . . . . . . . . . . . . . . . . . . . . . 10 Change of Address. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Waiver; Modification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Revocable Authorization to Check Credit. . . . . . . . . . . . . . 11 Your Consent to the Terms of this Handbook . . . . . . . . . . 11 YOUR CREDIT UNION SHARE ACCOUNTS . . . . . . . . . . . . 11

General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Earnings and Payment of Dividends . . . . . . . . . . . . . . . 11 Account Ownership and Transfer of Proceeds at Death . . . . . . . . . . . . . . . . . . . . . . . . . 12 Changing Account Ownership or Beneficiaries . . . . . . . 15 Continuing Authorization to Open Accounts . . . . . . . . . 15 Our Obligation to Follow Your Instructions . . . . . . . . . . 15 Privacy and Disclosure of Information. . . . . . . . . . . . . . 16 Disclosure to Owners, Obligors, and Persons Authorized on Your Accounts . . . . . . . . . . . . . . . . . 16 Disclosures to Third Parties . . . . . . . . . . . . . . . . . . . . . 16 Deposits and Withdrawals. . . . . . . . . . . . . . . . . . . . . . . 17 Federal Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Dividend Calculation, Compounding, and Crediting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Permanent Records and Statement Review . . . . . . . . . 19 In Case of Errors or Inquiries about your Statement . . . . . . . . . . . . . . . . . . . . . . . 20 Other Errors or Inquiries . . . . . . . . . . . . . . . . . . . . . . . . 20 Electronic Transfer Errors or Unauthorized Use . . . . . . 21 Inactive Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Dormant Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Closing Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Escheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Our Handling Accounts In Case Of Your Death or Incompetence . . . . . . . . . . . . . . . . . . . . . 22

Savings Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Regular Savings Account . . . . . . . . . . . . . . . . . . . . . . . 23 Investors Choice Money Market Account . . . . . . . . . . . 23 1

HOW TO CONTACT US Call:

(800) 947-5328 or (505) 293-0500 7:30 a.m. to 6:00 p.m. Monday through Friday and 8:30a.m. to 2:00 p.m. Saturdays (Mountain Time) excluding holidays. Write to us at: Member Service Department Sandia Laboratory Federal Credit Union P.O. Box 23040 Albuquerque, NM 87192-1040 Visit us on the Web: WWW.SLFCU.ORG email: [email protected] Fax: (505) 237-3737 (877) 256-3737

You may also visit any Credit Union office. WHAT TO TELL US IN CASE OF ANY ERROR OR INQUIRY

1) Tell us your name;

2) Account number;

3) Describe the error or the transfer about which you are unsure;

4) Explain, as clearly as you can, why you believe there is an error;

5) Tell us the dollar amount;

6) The date in question; and

7) Your daytime telephone number.

© 2011 Greene & Allison LLP. All rights reserved