You and any other joint owner agree that:
(a) by signing the appropriate account documentation as provided by your credit union, you authorize your credit union to establish a special share account for you to be known as a “share draft” or checking account. Your credit union is authorized to pay share drafts or checks, signed by you or any other joint owner of the account and to charge the payments against the share draft account.
(b) the credit union is under no obligation to pay a share draft which exceeds the balance in the share draft account; the credit union may, pay such a share draft and charge the amount of resulting overdraft plus a service charge against any other share account from which the person who signed the share draft is entitled to withdraw shares; the credit union is under no obligation to paya share draft on which the date is more than six months old;
(c) transactions may not be processed in the order in which they occur. The order in which transactions are received and processed may impact the total amount of fees incurred by the member.
(d) except for negligence, the credit union is not liable for any action it takes regarding the payment or non-payment of a share draft;
(e) notwithstanding Paragraph (d) above, the credit union is not liable for any loss incurred or damage sustained due to the premature payment of a post-dated share draft;
(f) any objection respecting any item shown on a monthly statement of the share draft account shall be waived unless made in writing to the credit union on or before the thirtieth day following the day the statement is mailed;
(g) all non-cash payments received on shares in the share draft account will be credited subject to final payment;
(h) the share draft account shall be subject to service charges and fees in accordance with the rate and fee schedules adopted by the credit union from time to time;
(i) the use of the share draft account is subject to such other terms, conditions and requirements as the credit union may establish from time to time; and
(j) this agreement is subject to the additional terms and conditions of any joint share account agreement that applies to a share account in the names of the joint owners of this share draft account; or, if there is no such agreement, this agreement is subject to the additional terms and conditions printed below.
Additional Terms and Conditions
(Joint Share Draft Account Agreement)
The credit union is hereby authorized to recognize any of the signatures on the share draft account documentation referenced above in the payment of funds or the transaction of any business for the share draft account. The joint owners of the account hereby agree with each other and with the credit union that all sums now
paid in on shares, or previously or subsequently paid in on shares by any or all of the joint owners to their credit as joint owners, with all accumulations thereon, are and shall be owned by them jointly, with right of survivorship and be subject to the withdrawal or receipt of any of them, and payment to any of them or the survivor or survivors shall be valid and discharge the credit union from any liability for such payment.
Any or all of the joint owners may pledge all or any part of the shares in the account as collateral security for a loan or loans.
The right or authority of the credit union under this agreement may not be changed or terminated by the owners, or any of them, except by written notice to and consent of the credit union, which shall not affect transactions made prior to such notice and consent.
*Note: These Additional Terms and Conditions apply only if there is no joint share account agreement that applies to a share account in the names of the persons whose signatures are subscribed on the share draft account documentation.
