Share Certificate Policy

Share Certificate Policy

1. Terms, tier levels & types. P. C. Federal Credit Union (PCFCU)Share Certificates will be offered with the following terms and types available:
LEVEL 1 – 6, 12, 18 & 24 month terms               $1,000.00 minimum deposit
LEVEL 2 – 6, 12, 18 & 24 month terms               $5,000.00 minimum deposit
LEVEL 3 – 6, 12, 18 & 24 month terms               $10,000.00 minimum deposit
LEVEL 4 – 12, 18 & 24 month terms                   $25,000.00 minimum deposit
LEVEL 5 – 12, 18 & 24 month terms                   $50,000.00 minimum deposit

2. Rate Information. The dividend rates will be established every Friday; the declared rates will become effective on the following Monday and weekly thereafter. The dividend rate and APY on all Certificates of Deposit are fixed and will be paid until the first maturity date on the Certificate.

3. Payment of Dividends/Interest. Dividends on share certificates will normally be paid at maturity by deposit into a regular share account or withdrawal by check.

4. Early Withdrawal Penalties. Certificate Accounts will mature after the applicable term of the Certificate of Deposit set forth above. PCFCU will impose a penalty if any of the funds in a Certificate of Deposit are withdrawn within the first six days after the Account is opened. The penalty will equal seven day’s dividend on the account. Partial withdraw-als of principal prior to the maturity date may not be made. PCFCU will impose a penalty if a Certificate is redeemed prior to the maturity date. The penalty for early withdrawal will be a maximum loss of 30 days dividends for each 6 month increment of the term of the certificate, not to exceed 180 days.

EXCEPTIONS TO EARLY WITHDRAWAL PENALTIES. At our option, we may pay the account before maturity without imposing an early withdrawal penalty in these circumstances:

a. When an account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction.
b. When a member wants to change from multiple individual certificates held at the Credit Union, to one certificate under the new tier structure.

5. Balance Computation Method. We will calculate dividend using the average daily bal-ance method that applies a periodic rate to the average daily balance in the account for the period. The average daily balance is calculated by adding the balance in the account for each day of the period and dividing that figure by the number of days in the period.

6. Accrual of Dividends. Dividends will begin to accrue on the business day a deposit (cash and non-cash items such as checks) is made to an account.

7. Transaction Limitations. Additional deposits cannot be made into a Certificates of Deposit until the maturity date stated on the Certificate. Certificates of Deposit are non-transferable and non-negotiable.

8. Life Savings Insurance. There will be no Life Savings Insurance on Share Certificates.

9. Renewal Policies. A Certificate of Deposit will automatically renew at maturity at the dividend rate and APY then being paid on Certificates having the same term unless the member informs the Credit Union otherwise. Members will have a grace period of ten calendar days after the maturity date to withdraw the funds in the account without being charged an early withdrawal penalty.

a. Renewal Notice – Certificate holders will be notified 15 days in advance of the maturity date and they will have 10 days beyond the maturity date to redeem with no penalty, the notice will contain the appropriate disclosures specified in the regulations and a reference to the Truth in Savings Disclosure for time accounts.

b. Additional Renewal Notice information – The Renewal Notice will also contain:

· the date the existing account matures;
· a statement that the dividend rates have not yet been determined;
· the maturity date of the renewed account;
· the date when the Dividend Rate & APY will be determined (if known); the Credit Union’s address & phone number so member can call for current Dividend Rate & applicable APY

10. Redemption. Upon redemption of the Certificate:

a. the member shall surrender the Original copy of the Certificate
b. if this copy is not available, an acknowledgment will be drawn up stating: why the original Certificate is not available; the #, issue date & the amount of the original Certificate; a further acknowledgment of receipt of $_________ amount of funds which represents the value of the funds invested in the lost Share Certificate and that in consideration of receipt of these funds, the member agrees to indemnify & save harmless said credit union from all loss or liability as the result of claims from any other person, intending to be legally bound hereby.
c. This acknowledgment shall be signed by the member and an official of the Credit Union, then it will be notarized and maintained on file in the same manner that a bond would be kept (i.e. – virtually forever, unless the member turns the original in).
d. A copy of the format that this acknowledgment will take, shall become a permanent part of this policy – copy follows policy.

11. Existing Certificates of Deposit as of 10/01/2006. It is the intent of the Board of Directors Certificates of Deposit purchased prior to 10/01/2006 (excluding those that fall with the stated Grace Period) shall be governed by the provisions of the previous Share Certificate Policy until the next scheduled renewal date of the Certificate of Deposit in question.

REVISED 1-01-2012 EFFECTIVE 1-01-2012