ALBUQUERQUE, NM AREA

Mailing AddressPO Box 23040Albuquerque, NM 87192-1040

Credit Union Center3707 Juan Tabo NE, 87111

Cottonwood3740 Ellison Road NW, 87114

Edgewood150 State Road 344, Suite BEdgewood, NM 87015

Goodrich(Inside Goodrich Corporation)

6600 Gulton Court NE, 87109

KirtlandWyoming & I Street, KAFB, 87117

Los Lunas2700 Palmilla Road NWLos Lunas, NM 87031

Paseo del Norte (at Ventura)

8920 Holly NE, 87122

Tech Park1301 Britt Street SE, 87123

LIVERMORE, CA

Mailing AddressPO Box 2908Livermore, CA 94551-2908

Livermore East7011 East Avenue, 94550

Livermore Downtown39 South Livermore AvenueSuite 101, 94550

Phone Center505.293.0500 or800.947.5328 (800.94.SLFCU)

Fax505.237.3737877.256.3737 toll-free

Emailebranch@slfcu.org

Website & Online Bankingwww.slfcu.org

Wire Transfer orSet-Up Direct DepositUse ABA Routing # 307083911

28,000 No-Fee ATMsNationwideATM Locator at www.slfcu.orgor 888.748.3266 (888.SITE.CO.OP)

4,000 Shared BranchLocations NationwideShared Branching Locatorat www.slfcu.org or800.919.2872 (800.919.CUSC)

Federally insured by NCUA

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

YOUR SANDIA LABORATORYFEDERAL CREDIT UNIONUNIVERSAL DISCLOSURE

&MEMBER HANDBOOK

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. . . . . . . . . . . . . . . 5Joining the Credit Union. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Membership Requirements and Eligibility for Services . . . . 5Denial of Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Meeting Your Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . 7If You Experience Financial Difficulty . . . . . . . . . . . . . . . . . . 7Your Consent to Our Right to Recover

Obligations from Shares (Right of Offset) . . . . . . . . . . . 8Collection Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Fees and Damages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Governing Agreements and Laws . . . . . . . . . . . . . . . . . . . . 9Backup Withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Electronic Service Options . . . . . . . . . . . . . . . . . . . . . . . . . 10Change of Address. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Waiver; Modification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Revocable Authorization to Check Credit. . . . . . . . . . . . . . 11Your Consent to the Terms of this Handbook . . . . . . . . . . 11

YOUR CREDIT UNION SHARE ACCOUNTS . . . . . . . . . . . . 11

General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Earnings and Payment of Dividends . . . . . . . . . . . . . . . 11Account Ownership and Transfer of

Proceeds at Death . . . . . . . . . . . . . . . . . . . . . . . . . 12Changing Account Ownership or Beneficiaries . . . . . . . 15Continuing Authorization to Open Accounts . . . . . . . . . 15Our Obligation to Follow Your Instructions . . . . . . . . . . 15Privacy and Disclosure of Information. . . . . . . . . . . . . . 16Disclosure to Owners, Obligors, and Persons

Authorized on Your Accounts . . . . . . . . . . . . . . . . . 16Disclosures to Third Parties . . . . . . . . . . . . . . . . . . . . . 16Deposits and Withdrawals . . . . . . . . . . . . . . . . . . . . . . . 17Federal Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Dividend Calculation, Compounding,

and Crediting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Permanent Records and Statement Review . . . . . . . . . 19In Case of Errors or Inquiries

about your Statement . . . . . . . . . . . . . . . . . . . . . . . 20Other Errors or Inquiries . . . . . . . . . . . . . . . . . . . . . . . . 20Electronic Transfer Errors or Unauthorized Use . . . . . . 21Inactive Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Dormant Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Closing Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Escheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Our Handling Accounts In Case Of Your

Death or Incompetence . . . . . . . . . . . . . . . . . . . . . 22

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

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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 UnionP.O. Box 23040

Albuquerque, NM 87192-1040

Visit us on the Web:WWW.SLFCU.ORG

email: ebranch@slfcu.org

Fax:(505) 237-3737(877) 256-3737

You may also visit any Credit Union office.

WHAT TO TELL US IN CASE OFANY ERROR OR INQUIRY

1) Tell us your name;

2) Account number;

3) Describe the error or the transfer about whichyou are unsure;

4) Explain, as clearly as you can, why you believethere 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 . . . . . . . . . . . . . . . . . . . . 23Annual Percentage Yield (APY) Assumptions. . . . . . . . 23Renewal at Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Transaction Limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Early Withdrawal Penalties . . . . . . . . . . . . . . . . . . . . . . 24Rates and Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Individual Retirement Accounts . . . . . . . . . . . . . . . . . . . . . 24Fiduciary Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Custodial Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Trusts Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Organizational Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . 26Share Draft Checking Accounts. . . . . . . . . . . . . . . . . . . . . 27

General Checking Account Information . . . . . . . . . . . . 27Checking Account Terms. . . . . . . . . . . . . . . . . . . . . . . . 27Stale Dated Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27Stop Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28Lost or Stolen Checks. . . . . . . . . . . . . . . . . . . . . . . . . . 28Overdrafts/Pre-Authorized and Approved

Overdraft Protection . . . . . . . . . . . . . . . . . . . . . . . . 29Privilege Pay Program . . . . . . . . . . . . . . . . . . . . . . . . . 32

SPECIAL SERVICES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Credit Union Checks (Cashier, Teller or

Certified Checks of the Credit Union) . . . . . . . . . . . . . 34Wire Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Shared Branching . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

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

ELECTRONIC FUNDS TRANSFERAGREEMENT AND DISCLOSURE . . . . . . . . . . . . . . . . . . . . 42

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

Services offering EFTs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43CU@home® On The Phone (Audio Response) . . . . . . 43CU@home® Online and BillPayer . . . . . . . . . . . . . . . . . 45Other Bill Payer Terms . . . . . . . . . . . . . . . . . . . . . . . . . 46Electronic Payment Processing . . . . . . . . . . . . . . . . . . 47Paper Check Processing. . . . . . . . . . . . . . . . . . . . . . . . 47CU@home® Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

ATM Card or a MasterMoney® Check Card. . . . . . . . . . . . 49Returns and Merchant Disputes . . . . . . . . . . . . . . . . . . 51Liability for Unauthorized Use . . . . . . . . . . . . . . . . . . . . 51Loss Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Additional Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

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Automated Clearinghouse (ACH) Services . . . . . . . . . . . . 51ACH Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52Available ACH Services . . . . . . . . . . . . . . . . . . . . . . . . 52Limitations on ACH Services. . . . . . . . . . . . . . . . . . . . . 52

Electronic Check Conversions . . . . . . . . . . . . . . . . . . . . . . 52Procedure and Right to Stop ACH Payments . . . . . . . . 53Notice of Payments in Varying Amounts . . . . . . . . . . . . 54Error Correction for ACH Transactions . . . . . . . . . . . . . 54

Terms Applicable to All EFTs . . . . . . . . . . . . . . . . . . . . . . . 54Responsibility for Transactions . . . . . . . . . . . . . . . . . . . 54Prohibition on Unlawful Transactions . . . . . . . . . . . . . . 55Documentation of Transactions. . . . . . . . . . . . . . . . . . . 55Excess Withdrawals . . . . . . . . . . . . . . . . . . . . . . . . . . . 56Unauthorized Transactions - All EFTs . . . . . . . . . . . . . . 56Credit Union Liability for Failure to

Complete Electronic Fund Transfers . . . . . . . . . . . . 57Privacy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58Change in Terms – Cancellation . . . . . . . . . . . . . . . . . . 59Delayed Availability of Deposits . . . . . . . . . . . . . . . . . . 59Additional Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59In Case of Errors or Questions about

Your Electronic Transfers. . . . . . . . . . . . . . . . . . . . . 60HOW TO CONTACT US . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62WHAT TO TELL US IN CASE OF ANYERROR OR INQUIRY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

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INTRODUCTION

Thank you for joining Sandia Laboratory Federal Credit Union.By signing a Membership Agreement, you agree to the termsin this Handbook that apply to the Credit Union services youselect.

Our mission is to provide a tailored array of convenient services to satisfy the financial needs of our members, and toprovide these services with the highest possible level of technical and operational efficiency while keeping a close andcaring touch with our members and employees.

Your Credit Union is a unique financial institution. Unlike abank, a Credit Union is a non-profit financial cooperativeowned by you and your fellow members. It is chartered, regulated and insured by the National Credit UnionAdministration, an agency of the United States government.You can participate in the democratic governance of the CreditUnion by attending the annual meeting and electingthe Board of Directors.

This Handbook outlines your rights and obligations as a member-owner and contains the agreement that governs allof your Credit Union share accounts. We may disclose addi -tional terms to you whenever you open a new account, inperiodic statements we will send you, and in our CreditUnion newsletter.

Your Credit Union also offers consumer loans, home mortgageloans, and home equity lines of credit. These loans will be sub-ject to separate written agreements. Your general obligationsas a Credit Union Member as explained in this Handbookapply to all agreements you make with the Credit Union.

Not all of the terms spelled out in this Handbook apply to everyaccount. Please refer to the sections that apply to the specifictypes of accounts or loans that you have with the Credit Union

Keep this Handbook with your permanent records. The CreditUnion may change the terms of your contracts with us by sending you written notice required by law. You should alsokeep any such notices with your permanent records.

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GENERAL AGREEMENTS OF MEMBERS

Joining the Credit UnionWe require that you complete an original MembershipAgreement to join the Credit Union. Membership Agreementsare available at any Credit Union office or on our web site,www.slfcu.org. Once you qualify for membership and completeyour Membership Agreement, we will open your requestedaccounts and begin accepting deposits immediately. To protectyou and your Credit Union, we will not permit withdrawals orextend credit until your Membership Agreement is completedand processed at our offices. Although we will send mail toP.O. boxes or private mailbox addresses at your request, wemust have the street address of your residence to open yourmembership.

All new accounts will be opened in accordance with the USAPatriot Act. To help the government fight the funding of terrorism and money laundering activities, federal law requiresall financial institutions to obtain, verify, and record informationthat identifies each person who opens an account.

What that means for you: When you open an account, we willask for your name, street address (and mailing address if different), date of birth, taxpayer identification number (usuallyyour social security number) and other information that willallow us to identify you. We may also ask to see your driver’slicense or other identifying documents.

We will need to see appropriate photo identification on all newaccounts. We will also need the appropriate identifi cationwhen adding new joint owners without a prior SLFCU relationship to an existing member’s account(s).

TerminologyIn this Handbook, “you” and “your” refer to the Credit Unionmember and any joint owner of a share account. “Member”refers to the person who signs a Membership Agreement inthat capacity to join the Credit Union. “Joint owner” refers to a person designated by a Member as a co-owner of theMember’s Credit Union Account(s). “SLFCU,” “we,” “us,” and“our” refer to the Credit Union. This Handbook may refer toour share accounts as “savings” accounts, to our share draftaccounts 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. Thesingular implies the plural when an account has more thanone owner.

Membership Requirements and Eligibility for ServicesProvided you are within our field of membership, your completion of a Membership Agreement and deposit of $5.00to a Regular Share Account makes you a Member of SLFCUand entitles you to apply for all of our savings and lendingservices. All loans, checking accounts and electronic fundstransfer services are subject to approval.

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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 Union3. Current and retired employees of other Select Employee

Groups and members of select associations approved byour Board and the National Credit Union Administration.

If you belong to an eligible group, you can join SandiaLaboratory Federal Credit Union. Membership eligibility isextended only to individuals who are members of an imme diatefamily or household of a Credit Union member. It is not neces-sary for the primary member to join the Credit Union in orderfor the immediate family or household member of the primarymember to join. However, it is necessary for the immediatefamily member or household member to first join in order forthat person’s immediate family member or household memberto join the Credit Union.

“Immediate family members” include spouses, children, siblings, grandparents, and grandchildren, as well as indi viduals who reside with a Member in a household thatis maintained as a single economic unit.

Minors may join SLFCU and have savings and certificateaccounts in their own names. Minors must have an adultjoint 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 accountswithout adult joint owners to have a photo identificationbearing their signature.

Denial of ServicesAs 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 CreditUnion, its employees and other Members. We reserve the rightto deny all services except the right to maintain a regular shareaccount and to vote, and if appropriate restrict your access toCredit 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 accountoverdrafts, or bankruptcy);

5) We learn after establishing your membership that werelied on false information in determining your eligibility;or

6) You fail to conduct your business with the Credit Union ina 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 abona fide emergency such as catastrophic illness, theBoard of Directors may, at its sole option, allow you tomaintain your membership privileges.

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

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

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

You will not allow SLFCU Savings or checking accounts youopen to fall below a zero balance. If you do inadvertently over-draw any Savings or Checking account, and you do not havea Preauthorized Overdraft Protection Source with availablefunds, you agree to immediately restore any overdraft upon ourwritten 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 underour Right to Recover Obligations from Shares, you agree thatour right to recover Collection Costs (see below) applies.

You will take responsibility for items deposited to your accountsthat are returned unpaid. If we have made funds available toyou for an item that is returned unpaid, you agree that uponour demand, you will immediately restore the amount of thereturned item to your account. If you do not do so, you agreethat our Right to Recover Obligations from Shares applies.If we cannot recover the amount under our Right to RecoverObligations from Shares, you agree that our right to recoverCollection Costs applies.

You agree to repay money you borrow from SLFCU accordingto 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 youraccount may be reflected in your credit report.

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

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obligations and help you get back on your feet while maintain-ing your good credit standing.

Your Consent to our Right to Recover Obligations fromShares (Right of Offset)By maintaining membership in the Credit Union you agree thatif you become indebted to us for any reason, and you fail topay what you owe us according to the terms of your agree-ments with us or upon our lawful written demand, we can takefunds from any SLFCU account in which you have an owner-ship interest, to collect all or part of what you owe us, withoutnotice to you, and without waiving any other collection rightswe may have. This consent by you is (a) in addition to our rightto impress a lien on shares under applicable state and/or federal law (b) extends to any shares you have with us thatmight lose special tax treatment if pledged as security for anobligation, and shares resulting from your deposit of funds normally exempt from creditors’ remedies such as social security direct deposit, to the extent not otherwise prohibitedby law or the applicable account agreement [The Credit Unionnever requires you to deposit exempt funds with us.] and(c) applies to any extensions of credit including loans or linesof credit that we have otherwise designated as “signature”loans or “unsecured” loans (Please refer to the secur ity agree-ment of your loan for the conditions, terms and definitions ofdefault.) Our exercising this right to recover obligations fromshares will not be an election of remedies and will not impairour rights to pursue any other remedies we may have againstyou. Our right prevails over the rights of any joint owners orpay-on-death beneficiaries to the funds in your accounts. Yourconsent to our right to recover obligations from shares is not apledge by you of any account and does not affect your right towithdraw funds as long as you meet your obligations to us.

If we have permitted you to withdraw funds, for example bycash, check, or wire transfer, against an item you depositedthat is later returned unpaid, we will deduct the amount of theunpaid item plus any applicable fees from the share accountin which you deposited the item. If there are no funds left inthat account, you agree that we can recover any remainingamount of the unpaid item by deducting it from any other shareaccount in which you have an ownership interest. If we cannotrecover the funds in this manner, then you agree that our rightto recover Collection Costs applies.

Collection CostsIf you are in default in any obligation, you agree to pay reasonable costs we incur to collect what you owe us beforewe take legal action. If we take legal action of any kind (including but not limited to collection lawsuits, proceedingsto 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 costsof the action.

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Fees and DamagesAll SLFCU Accounts and Loans may be subject to fees.Our fee structure is designed to encourage use of Credit Unionservices and to create incentives for Members to meet theirobligations 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 referenceinto this Handbook.

Fees for special handling of Accounts and Loans result insome instances from your failure to carry out your agreementswith us such as not having enough money in your account tocover checks you write or other debits you authorize. To theextent that our charges for handling such matters may exceedour costs, they are to be considered damages. You agree thatour collection of a fee does not waive any right we may haveunder the law to recover any loss we sustain due to your failure to meet the terms of this Handbook or other agreementsyou have with us. We also have the right to extra damageswhenever the law provides for them, such as the exemplarydamages provided as a penalty for writing bad checks.

We will charge your account a fee for items that you depositinto your account and are later returned by another institutionfor reason such as, but not limited to: account closed, non-sufficient or insufficient funds to cover the deposit item,or a stop payment was placed on the item. All returned itemsincur additional processing expenses, and the fee we chargeis designed to help cover those expenses. Please see theSchedule of Fees for the current fee for deposit item returns.

Governing Agreements and LawsThis Handbook, SLFCU Bylaws and policies, applicable NewMexico or California and federal laws as amended from time totime, and any separate agreements and disclosures providedto you shall govern your transactions with SLFCU. We mayamend agreement terms from time to time consistent withapplicable law and regulation by notifying you. The term“amend” may include changing existing terms, adding newterms, or deleting old terms. If an amended term is not accept-able to you, you may elect to discontinue the related service.If any provision of this Member Handbook in its present form oras amended from time to time is found to be void or unenforce -able, the rest of the Handbook and amendments to it willremain in effect.

We are legally and ethically obligated to safeguard the privacyof your financial information. We take this obligation very seriously. However, there are certain situations in which thelaw requires us to disclose information about you or youraccounts. We will comply with lawfully issued subpoenas,levies, writs of attachment, and similar orders pertaining toyour account. You must take up any objections you have onmatters of this type directly with the individual or entity that has

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requested information about or asserted a claim to funds inyour accounts.

You are responsible for providing us with the correct taxpayeridentification number on all accounts you open with us. Wehave no duty of further inquiry as to the correctness of the number you provide, but we will not open or maintain accountswithout taxpayer ID numbers. You may be subject to IRSpenalties, and we also reserve the right to close your accountand deny services to you, if you fail to provide your correct taxpayer ID number.

Backup WithholdingWe have the right to withhold amounts required by federal taxlaws from withdrawals if you or the Internal Revenue Serviceadvises us that you are subject to backup with holding or if youfail to give us your correct Taxpayer’s ID/Social SecurityNumber.

Electronic Service Options Many members prefer to conduct their business with us electronically whenever possible. We make services availableelectronically when permitted by law, technically feasible, andconsistent with our safety and soundness requirements.

The Membership Agreement allows you to elect the servicesyou would like us to perform electronically once your member-ship is established. You can request any Electronic FundTransfer service we offer at any time after account openingas well. (See the Electronic Funds Transfers section of this disclosure.) In addition, you can apply for loans, obtain andsign agreements and disclosures for the loans and accountsyou 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 downloadand print documents we provide to you electronically. If yourequest electronic services, we can assume that you are ableto download and print documents. You will have to demon-strate that you are able to receive notifications electronicallyby 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 electronicallyrelease any information about your accounts or accept loanapplications or disbursement authorizations without your confidential Personal Identification Number (PIN) or Password.

Of course, if you prefer to conduct your business with us onpaper, all of our services are available in that form. You can discontinue any electronic service at any time.

Change of AddressYou agree to keep us informed of your physical and mailingaddresses and to promptly notify us in writing of any change of

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

Waiver; ModificationWe can fail to exercise one or more rights we may have underthis or any other agreement we have with you on one or moreoccasions without such failure being deemed a waiver of anyright and without altering the terms of any agreement with you.Consistent with any limits imposed by law, we can modify anyof our agreements with you by giving notice required by lawand allowing you an opportunity to avoid the changes by satis-fying any outstanding obligation you have to us and discontinu-ing the related service. “Modify” may include changing existingterms, adding new terms or deleting terms. Any modification ofthe terms of an obligation you have to us (such as the exten-sion of a loan term) will be valid only if in writing and signedby an authorized agent of the Credit Union.

Revocable Authorization to Check CreditYour Membership Agreement allows us to check your creditfrom time to time to determine your eligibility for SLFCU products and services. You can revoke this authorization at anytime by notifying us in writing. In any case, if you apply for aloan, or maintain any open-end credit (such as a Line of Creditor Credit Card) or checking account, we can check your creditor account history with third parties as part of our normalaccount review process.

Your Consent to the Terms of this HandbookYour deposit of $5.00 to a Regular Share Account and completion of a Membership Agreement constitutes youracknowledgment that you have received this Handbook,the Schedule of Fees and the Truth in Savings Disclosureand your agreement to their terms.

YOUR CREDIT UNION SHARE ACCOUNTSGeneral Information

Earnings and Payment of Dividends Most Credit Union Accounts earns dividends. If an accountearns dividends, they accrue from the business day we receiveyour deposit. The Board sets our dividend rates, taking intoconsideration the cost of funds and market conditions.Dividends are only paid out of current income and availableearnings after required transfers to reserves at the end of thedividend period. Dividends cannot be guaranteed. Except forCertificate Accounts, dividend rates and corresponding annual

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percentage yields are not set in advance. Unless otherwiseindicated, dividend rates and yields are variable and canchange at any time. The Board may change dividend cycles.See our separate Truth In Savings Disclosure for the currentdividend rate and Annual Percentage Yield (APY) of allaccounts. The Truth in Savings Disclosure, as amended fromtime to time, is incorporated by reference into this Handbookand made part of it.

Account Ownership, Rights of Joint Owners, andTransfer of Proceeds at DeathYou 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 ownersmust complete and sign the appropriate signature form alongwith the Member and must meet our customer identificationprogram and our credit review requirements.

Joint owners designated on appropriate signature form, alongwith the Member, own all the proceeds of each non-IRAaccount held under that Member number on which the jointowner’s name(s) appear with right of survivorship (unless anAccount Supplement Form is on file for each sub-account towhich a different designation will apply). Joint owners maydeposit or withdraw any amount in any non-IRA account underthat Member number. However, a joint owner may not withdrawfunds in a Regular Share Account if doing so would terminatethe Member’s membership. Withdrawal by any one owner ofan account terminates the rights of all other account ownersto 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 inwhich the joint owner has an interest becomes subject to theCredit Union’s Right to Recover Obligations from Shares(see section titled, Our Right to Recover Obligations fromShares), even if the Member on the account is not a party tothe transaction that resulted in the joint owner’s debt. If the primary member on a checking account authorizes OverdraftProtection for the account from a home equity credit line, signature credit line or money market account, any joint owneron the designated checking account can also access theOverdraft Protection source; and if the primary member opensa checking and a regular share savings account, any jointowner on the checking account can access the savingsaccount as an Overdraft Protection source. This is the caseeven if the joint owner of the checking account is not a joint obligor on the home equity credit line or signature credit lineor a joint owner of the account from which funds will be transferred to cover overdrafts.

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You may add one or many joint owners to your account.Once a joint owner has been added to your account, we willnot remove the joint owner without the joint owner’s consent,as demonstrated by signing a notarized Joint OwnershipDeletion Form. You may close a jointly-owned sub-accountby withdrawing all the funds, and open a new account withoutjoint owners if you choose.

The Credit Union recognizes and offers an agency designationfor share accounts, and you as a member may appoint some-one to be an agent on your account. An agent has full trans -action authority, such as making deposits or withdrawals andwriting checks on a checking account. An agent may be issuedan 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 belongto the joint owner(s), if any are listed on the account records.If your account has no joint owners, the proceeds will pass tothe 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 trans action authority when there areno living owners remaining on the account. We will removean agent from your account upon your notification to the CreditUnion. We do not require the agent to sign a deletion form tobe removed from the account as we do for joint owners whowill be removed from an account.

You are responsible for monitoring the actions of any agentor power of attorney you assign to your account.

Should any owner of a joint account die, any survivingowner(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 thesurviving owner is the Member, the account number will notchange. If the surviving owner is not a Member, the survivingowner can open a new Membership account if eligible, orrequest a check for the account proceeds. The law prohibitsus from maintaining accounts whose sole owners are notMembers. When the last owner dies, the account proceedswill 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 trans-fer at the Member’s death to any named POD bene ficiary(ies)or, if no beneficiary(ies) is/are named, to the Member’s estate.

On accounts with a designated POD beneficiary(ies), fundspass automatically to the named beneficiary(ies) and are notsubject to any probate proceeding. If you name more thanone POD beneficiary, your beneficiaries will receive account proceeds in equal shares, unless specific percentages for eachbeneficiary are designated on the account agreement formin writing. If you name a POD beneficiary for your account,

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

If a Member wishes to designate different joint ownersfor different accounts, or to have both joint and individualaccounts, or to have different POD beneficiaries for differentaccounts, you must complete a separate authorization in eachcase. The Member will have the same member number on alljoint owner combinations, with different ownership combi na -tions indicated by different suffix numbers. POD bene ficiariesare not allowed on UTMA or fiduciary accounts.

You may wish to consult with your tax advisor or legal advisorbefore you designate POD beneficiaries on IRA accountsbecause your decision may have significant tax consequences.

Joint owners must belong to the Credit Union in their own rightto borrow money from the Credit Union, to vote in Credit Unionelections, or to hold Credit Union office. Joint owners who areeligible for membership can join by opening a Regular ShareAccount with at least $5.00 and signing a completedMembership Agreement.

We will give information about accounts to each joint owner,provided that any applicable research and copying fees arepaid. We will also provide information about your accountsif we receive an information request such as a subpoena thatmeets legal requirements. However, any disputes about theownership of funds in joint accounts must be resolved by theaccount owners without involvement from the Credit Union.We will not give out account information to POD beneficiariesuntil all account owners are deceased.

Under community property law (applicable in California andNew Mexico), either spouse has a right to set up an account inhis or her own name, or with another joint owner other than hisor her spouse, without the other spouse’s consent. Theaccount-owning spouse can designate any POD beneficiaryhe or she wishes. However, the surviving spouse of theaccount owner may have a right to his or her community property interest in the account at the death of the accountowner. This interest, if asserted, would reduce the amount thattransfers to a non-spouse POD beneficiary or to any survivingjoint 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 fiduciaryif the account has co-fiduciaries, must be able to transact business alone.

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Changing Account Ownership or BeneficiariesAny change in account ownership or access shall be in writingand on a new signature form. If one of the owners of a jointaccount wishes to remove the other owner(s), either: (1) Thatperson must withdraw all funds, close the account, and (if theyare in our Field of Membership) re-open it in the new owner’sname with a new account number, or (2) All current ownersmust consent in writing to the change.

The Credit Union will retain and follow only your most recentAccount Agreement Form. The Credit Union will consider anyomission from your current Account Agreement Form ofinfor mation that was included in a previous Account AgreementForm of yours to have been intentional. Thus, for example,if your earlier Agreement designated a POD beneficiary andyour current Agreement has no POD beneficiary designation,we will assume that you want your account to pass to yourestate at your death.

Continuing Authorization to Open AccountsBy completing a Membership Agreement, you give the CreditUnion a continuing authorization to open any account for youon your verbal request and deposit of funds.

Our Obligation to Follow Your InstructionsWe are required to follow written instructions transmitted to uson your accounts by any account owner or any person author-ized by an account owner to conduct business on youraccounts. We consider instructions received in writing or viaelectronic means such as ATM keypads, facsimile, CU@home®

(on-line banking and Bill Paying), or CU@home® On ThePhone to be “written” instructions. Our following the writteninstructions of any authorized person excuses the Credit Unionof any further legal obligation regarding the proceeds of thetransaction. You agree to indem nify and hold the Credit Unionharmless from any claims, suits or liability that directly or indirectly result from our handling of your accounts consistentwith 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 notto be authentic. If that happens, we will notify you. We alsohave the right to refuse to follow instructions if we reasonablybelieve they do not comply with state or federal law. If wereceive conflicting instructions from authorized persons, wecan freeze the funds and refuse to allow any transactions untilwe receive a court order or consistent written instructions fromall 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.

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Privacy and Disclosure of Information

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

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

Any person who is entitled to information can authorize releaseof information about the account or loan to third parties. If wehave the written permission of an authorized person, we willrelease 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 accountor loan during the time he or she was an owner or obligor.For example, assume Member A adds B as a joint owner ofan account on January 1, 2010, and that B is deleted as a jointowner of the account on January 1, 2011. Any time afterJanuary 1, 2011, B can obtain information about trans actionson the account that took place from January 1, 2010, toJanuary 1, 2011, without Member A’s permission and withoutobtaining a subpoena. If B wants information about trans -actions 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 loanmust pay applicable research and copying costs. We are notrequired to retain account or loan information beyond any maximum time established by law. For accounts, the maximumretention period is generally seven years. For loans, recordsare generally retained until the loan is paid in full.

Disclosures to Third PartiesWe will honor lawfully issued subpoenas, government information requests (including but not limited to family supportdata matching programs), writs, levies and other lawfulrequests for information about your accounts and loans.Generally, the law requires persons or entities seeking informa-tion about your accounts or loans to notify you and give you anopportunity to object, although some exceptions to this general

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rule apply. We will pass the costs of providing records on toyou unless the law requires the party requesting the informa-tion to pay our research and copying costs.

We will disclose information about you to third parties as necessary to process transactions or provide services thatyou request.

We will disclose information about you as necessary to conduct our business and protect the interests of the CreditUnion. For example, if you claim fraudulent use of your DebitCard at another financial institution’s ATM, we will discloseinformation about you and the transaction to the other financialinstitution in an effort to obtain videotape or other documen -tation we can use to verify your claim.

We will disclose our account and loan experiences with youto credit bureaus and to merchants to verify the existence andcondition 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 partywith whom we have a contract to process your debit card transactions.

Please refer to the separate Credit Union Privacy Policy formore information on our privacy practices and your privacyrights.

Deposits and Withdrawals Funds can be deposited to your accounts by (1) Direct depositof your net pay or retirement benefits, (2) Automatic payrolldeduction, (3) In person at Credit Union branches (includingdesignated Shared Branches), (4) By mail, (5) By wire transfer,(6) Through certain ATM networks to which the Credit Unionbelongs, & (7) and for those who meet our guidelines,CU@home® Deposit: A remote deposit capturing system usingan image of the check or negotiable instrument.

Please be aware that the Credit Union cannot be responsiblefor 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 anauthenticated electronic request via CU@home® to transmit acheck, 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 aCredit Union checking account, and (5) By pre-authorizedtransfer.

Certain deposits are subject to delayed availability, as spelledout in the “FUNDS AVAILABILITY POLICY” section of thisHandbook.

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On your Credit Union checking account, you may write asmany checks and make as many transfers or withdrawals outof the Account as you wish, provided you have sufficient funds.The number of deposits you may make is unlimited on allaccount types except for Certificate Accounts. However, transfers out of your Regular Share Accounts by certain methods are limited. You may make as many withdrawals ortransfers out of these accounts as you wish using thesemeans: (1) in person, (2) by mail, (3) by messenger, (4) at theATM, or (5) by a telephone request to mail a check payable toyou 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 towhich the limits apply include: (1) pre-authorized automaticpayments, such as for health club dues or utility bills;(2) transfer requests submitted using CU@home® or(3) auto matic and pre-authorized account transfers (includingoverdraft protection transfers). The purpose of these rules, prescribed by Federal Reserve Regulation D, is to channeltransactions through checking accounts.

We may refuse to accept for deposit checks or other itemsthat appear to have been altered or are not made payableto you. If a check made payable to you is deposited withoutendorsement to any account on which you are a Member orjoint owner, the Credit Union can endorse the check for youand present it to the bank on which it is drawn for payment.We may require that any third parties or payees who arenot owners of the account have their financial institution guarantee their endorsements.

Except for checking accounts, all accounts are non-transfer-able, other than on the books of the Credit Union. This meansthat if you want to change ownership of funds in a non-checking account you must withdraw them or change the ownership by closing the account and opening a new accountwith the desired ownership. We reserve the right to requireyou to give at least 7 days’ but not more than 60 days’ noticeof your intent to withdraw funds/shares except on checkingaccounts.

Credit Union bylaws permit us to require a notice of up to 60days before you withdraw shares.

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

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lawfully returns an item you deposited, we will deduct theamount of the item from your account, even if you havealready withdrawn the funds and even if the deductionresults in a negative balance.

Federal InsuranceGenerally, if a Credit Union member has more than oneaccount in the same insured Credit Union, those accountsare added together and insured up to at least $250,000 bythe National Credit Union Share Insurance Fund. IndividualRetirement Accounts (IRAs) are separately insured up to$250,000. There are exceptions, however. For example, theshares in your Regular Share Savings Account are insuredseparately from those in your IRA or certain trust accounts.It is possible to increase your insured funds in the Credit Unionby struc turing your accounts to maximize insurance coverage.If your accounts have joint owners or pay-on-death benefi -ciaries, insurance coverage may be increased. For a moredetailed explanation of insurance coverage, please requesta current copy of “Your Insured Funds,” a publication of theNational Credit Union Administration, available by contactingyour Credit Union or at the NCUA’s website www.ncua.gov.

Dividend Calculation, Compounding, and CreditingThe policies stated in this section apply to all of our accountsexcept the checking account which does not earn dividends.The dividend period is monthly, for example, the beginningdate of the first dividend period of the calendar year is January1, and the ending date of such dividend period January 31.Dividends are calculated by the daily balance method, whichapplies a daily periodic rate to the balance in the account eachday. However, no dividends are paid on any day the balancefalls below any minimum balance to earn dividends stated inthe Truth in Savings Disclosure. (On share accounts where the primary owner is less than 15 years old, dividends will be paidon 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 anaccount prior to the first day of a calendar month, you will notforfeit dividends that have accrued but not yet been credited.

FeesAll Credit Union Accounts may be subject to fees, which,if assessed, may reduce earnings. Please see the Scheduleof Fees.

Permanent Records and Statement ReviewWe will mail you periodic statements recording all deposits,withdrawals, checks drawn on your account, dividends(if any), and fees. All active accounts with valid addressesreceive statements monthly. Accounts without transactionactivity for more than a year will have the statements discon -tinued until there is new activity on the account. You willreceive a year-end statement at the end of the calendaryear in which there was account activity if the statementswere discontinued due to inactivity.

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If there is more than one owner of the account, the statementwill be sent to the primary account holder. If you have chosento receive notification of your statement electronically(eStatements), you will be notified once a month whenyour 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 checksare microfilmed electronically imaged and retained in that formfor seven years. Copies of checks will be available on request.The first two check copies you request for a statement periodare 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 deliveryby the post office or otherwise not collected by the member.If any mailed statements or other documents we send you arereturned undelivered, we will destroy them, but they will beavailable 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 Feesfor the current charge. Statement printing fees are for eachpage printed, not for each month a statement is requested.For example, if you request for us to print last October’s state-ment, and the statement is five pages long, you will be chargedthe current fee for each page that prints, not one printing feefor the entire month. You may specify to have one page of amultiple-page statement, and you will only be charged for thespecific page requested.

In Case of Errors or Inquiries about your Statement:Unauthorized Signatures or Alterations: If you suspect thatthere was an unauthorized signature or alteration of an itemthat affected one of your accounts (for example, if you thinksomeone forged your signature on your check), you must notifyus, in writing, within thirty (30) days. Tell us all the informationrequested under the section entitled “WHAT TO TELL US INCASE OF ANY ERROR OR INQUIRY” (at the end of thisHandbook.)

If you do not tell us within 30 days, we are not responsible forany losses you incur because of the forgery or alteration of acheck on your account. We operate in an electronic processingenvironment and it is not feasible for us to examine every signature on every check. For this reason we are, as permittedby the Commercial Code, altering the provisions of theCommercial Code regarding the time limits for reporting unauthorized signatures or other unauthorized transactionson checking accounts.

Other Errors or Inquiries: Read your statement promptly tobe sure we made no errors. The Credit Union will investigate

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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 the60-day period. If you do not notify us within the required timeperiods, you may have to share the loss with us or bear theentire loss, depending on whether we were negligent.

If we correct any error that we made or accept any respon - sibility for a transaction, we have the right to col lect the amountcredited to your account from anyone else who is responsible.Our crediting your account will result in an automatic assign-ment to us of your rights to collect the amount from anyoneelse. You agree to cooperate with our efforts to collect theamount we credited to your account.

If we make an error in handling your account, our liability willbe limited to the actual damages. The maximum actual damages are the amount of the transaction. We will not beliable for consequential damages such as alleged harm to yourcredit standing, unrealized profits, emotional distress, or exemplary damages due to a claimed reckless disregard ofthe consequence of our actions.

Electronic Transfer Errors or Unauthorized UsePlease refer to the Electronic Funds Transfer Agreement andDisclosure in this Handbook for information about your rightsand responsibilities.

Inactive AccountsAccess to accounts with no member-initiated activity for morethan six months may be restricted and require verification ofthe transaction that reactivates the account.

Dormant AccountsAccounts with no member-initiated activity for two years byJanuary 1 of each year will be charged a dormant account fee.Please refer to the Fee Schedule for the current dormant feeamount. Posting of dividends to your account does not constitute member-initiated activity.

Closing AccountsWe have the right to close your accounts for any business reason on 10 days’ written notice to you at your last knownaddress. Any closing of your accounts will not affect our handling of regular transactions prior to the notice, providedthat sufficient funds are on deposit to handle them.

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

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

EscheatCalifornia Accounts: If there has been no activity on youraccount 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 orpass on the maximum amount of fees allowed by law asso -ciated 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 thatyour account will escheat if you do not contact us to indicatean interest in your account. If you have not kept your address current with us, and we have had mail (such as account state-ments) returned to us, we will not send a notice that youraccount is subject to escheat. If your account has a balance ofless than $50, we may not mail a notice to you. According tostate law, you may reclaim any funds that were escheated inyour name. We will provide you information on how you canclaim your funds from the state of California upon your request.

New Mexico Accounts and Accounts of states other thanCalifornia: If there has been no activity on your account forfive years other than the crediting of dividends, your account ispresumed to have been abandoned. We will assess or pass onthe maximum amount of fees allowed by law associated withthe escheat process. For example, you are responsible for stoppayments fees on Official Checks you purchased, but werenever negotiated. New Mexico law and SLFCU bylaws permitus to submit funds that are presumed abandoned to the NewMexico Education Foundation at the Credit Union Associationof New Mexico to be used for educational purposes. After fouryears of inactivity, we will provide notice as required by statelaw that your account may escheat if you do not contact us toindicate an interest in it. If you have not kept your address current with us, and we have had mail (such as account state-ments) returned to us, we will not send a notice that youraccount is subject to escheat. If your account has a balanceof less than $50, we may not mail a notice to you. Accordingto state law, you may reclaim any funds that were escheatedin your name. We will provide you information on how you canclaim your funds from the state of New Mexico or the NewMexico Educational Foundation upon your request.

Our Handling Accounts In Case Of Your Deathor IncompetenceIf you have an individual account, your death or a courtappointment of a conservator to manage your legal affairs will

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

Savings Accounts

Regular Savings Account You must maintain a Regular Share Savings Account balanceof $5.00 to be a member of the Credit Union in good standing,and each additional savings account you open must maintaina five dollar balance. Certain automated withdrawals from thisaccount are limited as described above in the “Deposits andWith drawals” section. Dividends are earned on a tiered-balance basis. This Account earns tiered dividends if you maintain the required minimum balance. See the Truth inSavings Disclosure the Fee Schedule for details.

Investors Choice Money Market AccountThis 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 permonth. See the Fee Schedule for more information.

Term Share Certificate Accounts

Annual Percentage Yield (APY) AssumptionsDisclosed Annual Percentage Yields (APY) assume thataccrued and credited dividends will remain in the account untilmaturity. Earlier withdrawals of dividends will reduce earnings.

Renewal at MaturityTerm Share Accounts renew automatically at maturity unlessyou close the Term Share Account at maturity or during the21-day grace period that follows maturity. Automatic renewalwill be for the same term and at the Dividend Rate and APYthe Credit Union is then offering for Term Share Certificates of that term and balance. If the Credit Union is not offeringthe same term, your account will renew for the term that is disclosed to you in the renewal notice we will send you.

Transaction LimitsYou generally may not add funds to a Share Certificate afterit is opened, except at maturity or during the grace period

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following maturity. We may offer a variable rate Term ShareCertificate Account that allows additions of funds, or a bump-rate Term Share Certificate Account that allows members toincrease their rate to the then-current rate once during theterm. You may withdraw credited dividends, and you canarrange to have credited dividends transferred to anotheraccount when you open a Term Share Certificate Account,but any other withdrawals prior to maturity will be subjectto a penalty. Funds in Term Share Certificate Accounts arenot available for use as overdraft protection.

Early Withdrawal PenaltiesIf you withdraw principal from a Term Share Certificate Accountprior to maturity, an early withdrawal penalty will apply. Thepenalty on any principal amount withdrawn on any Term ShareCertificate Account within six days of opening will be 7 days’dividends on the amount withdrawn. If the with drawal is aftersix days of account opening, and the Term is 11 months orless, an early withdrawal of principal will result in a penalty of90 days’ dividends on the amounts withdrawn. If the withdrawalis after six days of account opening, and the term is 12 monthsor more, an early withdrawal of principal will result in a penaltyof 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 CertificateAccount; (b) a lawful distribution of an IRA; (c) the voluntaryor involuntary liquidation of the Credit Union; (d) a requirementimposed by the Credit Union’s bylaws; (e) our failureto pay dividends within 10 days after the agreed date, or(f) for any other grounds that the law establishes as a validcondition for the waiver of a pre-payment penalty.

Rates and TermsThe Credit Union offers a wide variety of rates, yields, andterm lengths on Term Share Certificate Accounts. Rates offeredchange frequently to reflect market conditions. Once you opena Term Share Certificate Account, the dividend rate and APYwill remain fixed through the term. Please refer to the separateTruth in Savings Disclosure.

Individual Retirement AccountsRegular Share Accounts and Term Share Certificate Accountsare available as IRAs, although minimum balance require-ments and terms may vary. The terms stated in this disclosureand the Truth in Savings Disclosure will apply to IRAs, as wellas the terms of the separate IRA agreement disclosure you willreceive 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, andwhether you select a traditional or Roth IRA, your contributionsmay be tax deductible, and your earnings will be tax deferred.With a Roth IRA, your contributions are not deduct ible, butyour earnings are tax-free. Federal tax law governs the tax

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

Fiduciary AccountsWe can set up Share Saving Accounts, Investors ChoiceMoney Market Accounts, Term Share Certificate Accounts andShare Draft checking accounts for special purposes such asfamily trusts, executors of estates, and guardians and con -servators. Uniform Transfer to Minor Act accounts are alsoavailable. These accounts may be subject to separate writtenagreements. Certain restrictions apply.

Custodial AccountsSLFCU offers custodial accounts as permitted by the UniformTransfer to Minors Act, or UTMA. Custodial accounts requirethe involvement of a custodian. The custodian is an adult, overthe age of 21, who will manage the funds until the child reaches the age of majority. The custodian administers theaccount, making decisions concerning deposits and with-drawals, reinvesting dividends and so forth. The custodianmay 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 tothe minor. The Credit Union will not turn over the funds to theminor who reaches the age of majority unless directed by acourt order.

Under UTMA law there may only be a single custodian incharge of the custodial account at any one time. The reasonfor the limitation is because the minor (or a court of law on theminor’s behalf) must be able to hold the custodian liable for thetransactions. The custodian may designate a successor custo-dian 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 dividendearnings are reported to the IRS under the minor’s SocialSecurity number.

SLFCU offers regular share savings, share draft checking,term share certificates, and money market accounts under acustodial account.

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

Trusts AccountsAn account for a trust is an account held by one or moretrustees of a trust for the benefit of one or more beneficiaries.Account eligibility is determined according to the Credit Union’spolicy and applicable law. At account origination, the trusteeshall sign a Supplemental Account Agreement for Trust

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Account and provide any other evidence of the trustee’sauthority the Credit Union requires. Trustee affirms that a validliving trust has been created, currently exists, and that the trustis 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 thetrustee(s). The trustee(s) agrees to notify the Credit Union inwriting if a change of trustee occurs. The Credit Union maywithhold payment of funds to any party until proper evidenceof authority is provided. The Credit Union may rely upon thedirections of any one trustee until a written notice of revocationof the living trust or an updated Supplemental AccountAgreement for Trust Account is received. Funds may bereleased to any one trustee acting alone or with a co-trustee.The trustee(s) agrees to indemnify and hold the Credit Unionharmless of any liability, claim, damage, or loss arising as aresult of unauthorized acts of any trustee or former trustee oracts of any trustee upon which the Credit Union relies prior tonotice of any account change or revocation of the trust. ThisMembership Handbook and additional Account Agreementsshall be binding on the trust, any trustee, successor, trustee,and beneficiary.

Organizational AccountsSLFCU offers organizational accounts to membership eligibleorganizations such as booster clubs, PTA/PTO, and neighbor-hood associations. To establish an organizational account,the organization itself must qualify for membership at SLFCU.Ask us how to qualify your organization to become member-ship eligible.

In some cases we may open a club account for an individualmember operating as the club, for example, the treasurer fora youth soccer team or scout troop. For club accounts, theorganization does not need to be in the field of membership,only the primary member opening the account needs to bemembership eligible. A member who opens a club account ispersonally responsible for the account, including any over-drafts caused by any signer on the account.

For organizational accounts, the organization owns the accountand authorized signers are appointed by the organization’sresponsible parties. SLFCU may ask for evidence of thegroup’s existence such as meeting minutes listing the signersas the organization’s leadership. The organization must have aproper tax identification number and we may request proof thatthe organization has authority to use the number.

To change signers on an organizational account we may ask tosee a letter from the previous signer naming the new signers,minutes from the meeting where the officers were elected, orother supporting documentation.

For every account, all signers must provide proper personalidentification to open or be added to an account.

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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 oneauthorized signer dies or becomes disabled, the remainingsigner(s) can conduct business on the account. If the soleauthorized signer of an organizational account dies orbecomes disabled, SLFCU can follow the instructions of anyperson SLFCU reasonably believes has authority to conductbusiness on the account.

Share Draft Checking Accounts

General Checking Account Information SLFCU offers members two types of checking accounts. Checkwith 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® onlinebanking. The Check/ATM card may be subject to some fees.ATM owners may assess surcharges for your use of non-CUAnytime® and CO-OPSM Network ATMs. Other services arealso subject to fees. Please refer to the Schedule of Fees andCharges for additional information about services and fees thatapply to our different checking accounts. The fee for offeringprinted checks varies. Fees on your checking account mayreduce your earnings. Please refer to the Truth in SavingsDisclosures for details.

Checking Account TermsThe following additional terms apply to your checking account.

Payments on Checks. We will make payments on currentchecks drawn on available funds in your checking accountwhen signed by any person authorized on your MembershipAgreement. We reserve the right to honor only completed,signed and endorsed checks, on blanks printed in a formeither approved by us or printed by us and provided to youfor your use. We will not be responsible for delays that resultfrom 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 begoverned by the Uniform Commercial Code as enacted in thestate where you live, Federal Reserve Board Regulations, andour 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 processedthrough automatic systems that do not recognize the dateon the check. Therefore, checks over six months old maybe paid. The Credit Union is not liable to you for any costsor damages as a result of paying checks regardless of whenit was written.

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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 ifnot cashed in 30 days” or “Not valid for over $500” or some-thing similar on your check. In our electronic clearing process,restrictive legends cannot be accommodated. If you chooseto have restrictive legends printed on your checks, you realizeand acknowledge that the Credit Union is under no obligationto follow such orders.

Stopping Payment. You can stop payment on any checkdrawn on your account before the check has been cleared forpayment by notifying us orally and in writing, and by paying therequired fee. You may be asked to follow up the oral noticewith a written request within fourteen (14) calendar days of theoral notice, or the stop payment request will lapse. Stop payment requests will be processed promptly, but the CreditUnion will not be responsible for a check that is paid by uswithin the first 24 hours after you request the stop pay. Writtenstop payment requests are valid for only twelve months butmay be renewed for additional twelve-month period by givingwritten notice to the Credit Union within the period duringwhich the stop payment request is effective, and paying anadditional stop-payment fee.

Stop payment requests that are received via CU@home®

before 1pm mountain time will normally be processed thesame business day, and requests received after 1pm mountaintime will be processed the following business day. Businessdays for CU@home stop payments are considered Mondaythrough Friday, excluding federal holidays.1) For us to effectively stop payment, we need to know the

drawer, the payee, the account number, the date, thecheck number, and the exact amount of the check. Ourcomputer will search for the check exclusively by thecheck number and dollar amount. It can read nothingelse on the check. If the check number is wrong, or if thedollar amount varies by even one penny, we will not findthe 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 validobligation. If we do reimburse you, the claim for fundsagainst the payee of the check will be assigned to usand you agree to cooperate in collecting the amountwrong fully paid to the payee of the stopped check. Ourliability to you is limited to the amount of the improperlypaid check.

Lost or Stolen Checks. If your checks are lost or stolen,please call us immediately at (800) 947-5328. Because of therisk that someone obtaining your account and routing numbercan order checks outside the sequence of numbers on whichyou stop payment, we recommend that you close your checking account and reopen it under a new number. If youelect to keep your account open under the same number after

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

Post Dated Checks. Postdated checks drawn on your accountmay be cashed if presented by the payee before the date onthe check. We will not be liable for the conse quences of suchearly payment, unless you have given us separate notice(the date on the check alone is not sufficient notice) that theitem is post-dated and identified the check to us by providingthe same information and fee that we require for stop paymentrequests. Our responsibility for failing to carry out your instruc-tions regarding a post-dated check is the same as if we paid acheck over your stop payment order. We are not obligated tocash or process postdated checks payable to you, regardlessof 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 depositsare made available only after the times specified in the “FundsAvailability Policy” section of this disclosure. We considerthese deposits to be uncollected funds until the hold periodexpires. Please postpone writing checks or attempting with-drawals against these funds, unless you intend to rely onyour overdraft protection.

Prohibition on Pledging Funds. Funds deposited in checkingaccounts may not be pledged as security for a loan However,if you become indebted to us and do not pay what you owe usaccording to our agreement with you, you agree that funds inyour checking accounts are subject to our Right to RecoverObligations from Shares.

Share Draft Printing fees. The price for share drafts orchecks ordered through the Credit Union varies dependingupon the style and quantity ordered. Please contact us forthe current prices of the checks you are interested in.

Overdrafts/Pre-Authorized andApproved Overdraft ProtectionThe Credit Union is never required to pay a check of otherchecking account debit (withdrawal) item that would resultin an overdraft unless you have established and have availableOverdraft Protection. You may authorize overdrafts by com -pleting an Overdraft Protection Authorization, subject to ourapproval. We offer Account Transfer Overdraft Protection andLine-of-Credit Overdraft Protection.

By opening a checking and one or more Regular ShareSavings Account(s) you authorize us to automatically transferand use funds in your Regular Share Savings Account to paychecking account overdrafts without any other OverdraftProtection Authorization; such transfers are included in the discussion of Approved Overdraft Protection or designated

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overdraft sources below and throughout this Handbook.Account Transfer Overdraft Protection is available, by yourdesignation on a special form, for Money Market Accounts, butnot for IRA Accounts or Certificate Accounts. By requesting anATM Card or MasterMoney® ATM/Check Card on an accountwith a line of credit designated as an overdraft protectionsource, you accept a credit card (as defined by FederalReserve Regulation Z). Please refer to the applicable loan orLine of Credit agreements and disclosures for additional terms applicable to overdraft protection advances from Linesof Credit.

You acknowledge and agree that if someone is a joint owneror agent on your checking account, and if they write a checkor initiate another checking account debit item for which thereare insufficient funds, we may transfer funds from another oneof your sub-accounts (including, but not limited to, savingsaccounts, money market accounts, or lines of credit) to coverthe deficiency. We will transfer the funds from the otheraccount to cover the check or other debit item even if the person who wrote the check or initiated the debit is not ajoint owner or co-borrower on the account used to coverthe deficiency.

If there isn’t enough money in your checking account tocover the checks you write, or to cover transactions by you orauthorized users of your electronic transfer devices (see theELECTRONIC FUNDS TRANSFER section of this Hand book),we will consider these checks or transfers to be requests forPre-Authorized and Approved Overdraft Protec tion fund transfers or loan advances to cover the overdrafts. Themoney will be taken from the sources you have indicated.

1) Overdraft transfers from your Regular Share Account willbe in $50 multiples, up to the available funds in theaccount. If you have more than one share account identi-fied for overdraft protection, we will attempt to transfer thenecessary amount to cover the overdraft from a singleaccount. If the single account has insufficient funds tocover the overdraft, we will aggregate the amount neededto cover the overdraft from multiple accounts that youhave identified for overdraft protection in an attempt tocover the overdraft. Overdraft transfers from RegularShare Savings Accounts are limited to six per month.

2) Overdraft transfers from your Money Market Accountwill be in $500 multiples, up to the available funds inthe account. Overdraft Transfers from Money MarketAccounts 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.

3) If you have a Line of Credit or Credit Card with the CreditUnion in good standing and with available credit, you mayalso designate that Line of Credit as an overdraft protec-tion source on your Membership Agreement. Overdraftprotection advances will be posted from your Line ofCredit in multiples of $100 (or the available credit,

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whichever is less) to cover your overdrafts in the amountneeded. Overdraft Line of Credit advances are governedby 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 coverthe purchase in the account your card is tied to, we willoverdraft the account you have designated for overdraftpurposes.

5) If you have not designated a Line of Credit or Credit Cardas an overdraft protection source, or if you have exceeded your credit limit on that designated Creditsource, and there is not enough money in the RegularShare Account(s) you have designated as overdraft protection sources, we may return “NSF” (non-sufficientfunds) checks presented for payment to the payee’sfinancial institution and charge the fee listed in theSchedule of Fees. If you do not have a pre-approvedsource of overdraft protection with available funds orcredit, 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-approvedsource of overdraft protection with available funds or credit, even though we may have accommodated youin this way in the past.

7) Checks you write on insufficient funds may bere-presented by the payee for payment through the ACH(automated clearinghouse) system if the payee notifiesyou of this possibility when you write the check. Checkson which the signature is forged, altered checks, checksfor over $2,500, checks returned for reasons other thaninsuf ficient funds, or checks re-presented more than 180days after their original date, are not eligible for ACHre-presentment.

8) You agree that we may offset a returned NSF item withthe proceeds of any other account in which you have aninterest. (See our Right to Recover Obligations fromShares.)

9) Unless you have a formal overdraft protection arrange-ment with us, we can close your checking account withoutprior notice for repeated overdrafts or for your misuse ofthe account, such as check “kiting.” Due to electroniccheck processing laws (Check 21), checks that you writemay clear within a matter of minutes or hours. You shouldbe sure that you have available funds before writingchecks, rather than assuming that you can writea check and later make a deposit to cover it.

10) The same rules that apply to overdrafts caused by checksyou write also apply if an overdraft results because youhave obtained cash for an item you deposited that is laterreturned to us unpaid.

11) You waive the right to protest for nonpayment of deposited returned items.

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12) The Credit Union posts debits to your checking accountbased on our obligation to pay them. For example, we willgenerally post ATM/Check Card transactions, ACH trans-actions, internal transfers and internal loan paymentsprior to the checks you have written.

13) You agree that we can post overdrafts to your accountsin any order we select consistent with the law. We typically will post overdrafts (whether under an OverdraftProtection Authorization or under our Privilege PayProgram) in check number order.

Privilege Pay ProgramIt is Sandia Laboratory Federal Credit Union’s policy to complywith 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 fundstransfers, electronic check conversions or other withdrawalrequests you initiate; B) Payments authorized by you; C) Thereturn of unpaid items that were deposited to your account; D) Charging your account for our applicable service chargesand fees; and E) When items or transactions you initiateagainst the deposit of items to your account which, accordingto our Funds Availability Policy, are treated as not yet available.

We are not obligated to pay any item initiated for paymentagainst your account if your account does not contain sufficientcollected funds (unless you have established and have avail-able a pre-approved source of overdraft protection). Ratherthan automatically returning, unpaid, all non-sufficient fundsitems that you may have, if your eligible account type has beenopen for at least thirty (30) days and you have accumulateddeposits in excess of $800, and thereafter you maintain youraccount in good standing, we will consider, without obligationon our part, approving your reasonable overdrafts up to yourassigned Privilege Pay Limit, including our fees. “In goodstanding” includes, but is not limited to, the following: A) Youcontinue to make deposits consistent with your past practices;B) You are not in default on any loan obligation to us; C) Youpay your outstanding overdraft (negative) balance, includingour fees, immediately or on demand; and D) Your account isnot the subject of any legal or adminis trative order or levy,such as bankruptcy or a tax lien. If your account does not meetthe thirty (30) days open criteria, the accumulated depositsrequirement, and/or the “in good standing” criteria describedabove, we will consider, without obligation on our part, approving your reasonable overdrafts up to $100, includingour fees.

This discretionary service will generally be limited to an $800overdraft (negative) balance for eligible personal and organiza-tional 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 overdraftlimits.

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Our normal fees and charges including, without limitation,our non-sufficient funds (NSF) fee as set forth in our Scheduleof 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 normalNSF fee whether we approve an overdraft item for paymentor return it unpaid.

Our NSF fee will be included in and count against yourassigned Privilege Pay Limit of $100, $800 or $1,500. Whetheryour overdrafts will be paid or not is at our sole discretion andwe reserve the right not to pay. For example, we typically donot pay overdrafts if your account is not in good standing asdescribed above, or if you have too many overdrafts. Underour Privilege Pay Program, we may refuse to pay an over-draft for you at any time, even though your account is ingood standing and even though we may have previouslypaid overdrafts for you. You will be notified by mail (or another notification method that you have enrolled for) of anynon-sufficient funds items paid or returned that you may have; however, we have no obligation to notify you before we payor return any item. The amount of any overdrafts including ourfees that you owe us shall be due and payable immediately.If there is an overdraft paid by us on an account with morethan one (1) owner on the signature form, each owner, andagent if applicable, drawing/presenting the item creating theoverdraft, shall be jointly and severally liable for such over-drafts including our fees.

You must restore any amount by which your account is over-drawn immediately upon our demand. If you do not pay, youagree that we can cover the amount of the negative balancefrom any other Credit Union Account in which you have aninterest under our Right to Recover Obligations from Shares.If we cannot recover that amount exercising our Right toRecover Obligations from Shares, our right to recoverCollection Costs applies.

Overdraft Protection Services. We offer additional overdraftprotection services that you may apply for. These include Line-of-Credit Overdraft Protection and Account Transfer OverdraftProtection (from another account of yours with us). If you applyand are approved for these optional services, you may savemoney 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 main-tained in good standing as defined above. Savings and MoneyMarket Accounts are not eligible for this service. We may, inour sole option and discretion, limit the number of youraccounts eligible for Privilege Pay to one account per house-hold and/or one account per taxpayer identification number.

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Transactions That May Cause or Create Overdrafts UsingYour Privilege Pay Limit. NSF transactions initiated for payment against your checking account may be paid by ususing your assigned Privilege Pay Limit, including our fees.Our NSF fee may be imposed for paying, or not paying,over drafts you create by: checks; in person (teller) withdrawal;MasterMoney® ATM/Check Card or ATM card point of saletransactions; transfers and payment orders initiated in personor 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 notto participate in Privilege Pay by notifying one of our CreditUnion employees who will explain what this “Opt-Out” means,and the potential consequences for you.

Limitations. The Privilege Pay program will limit the numberof NSF fees to six per day per checking account. The limitapplies whether we pay an item or if it is returned to the payee.The Credit Union will not charge you any NSF fees when thenegative balance in the account is from $0 to $20.

Debit /Check Card Opt-In. In accordance with federal regula-tions, you must specifically opt-in to Privilege Pay for everydaydebit card transactions before we can cover your overdrafts.Checks, ACH, recurring check card transactions, and over-drafts other than everyday check card transactions are notsubject to an opt-in and may be covered by Privilege Payat our discretion.

Always a Discretionary Service. Our Privilege Pay servicedoes not constitute an actual or implied agreement betweenyou and us, nor does it constitute an actual or implied obliga-tion of or by us. Our Privilege Pay service represents a purelydiscretionary courtesy or privilege that we may provide to youfrom time to time and which may be withdrawn or withheld byus at any time without prior notice or reason or cause.

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

SPECIAL SERVICES

Credit Union Checks (Cashier, Teller or Certified Checksof the Credit Union)If you obtain a check drawn on the Credit Union payable tosomeone other than yourself, we are, under normal circum-stances, guaranteeing the payment of the check. For that reason we will accept a stop pay request on a Credit UnionCheck only after we receive a written declaration under penaltyof perjury from you and, in some cases, the payee. If the checkwas lost, stolen or destroyed before you delivered it to the

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payee, you must sign the declaration. If the check was lost,stolen or destroyed after delivery to the payee, but before henegotiated it, both you and the payee must sign the declaration.

If we receive the stop pay after the check has cleared, we willnot be responsible for the loss.

We will generally not issue a replacement check or credit youraccount until 90 days after the issue date of a Credit UnionCheck. We can require you to obtain, at your expense, a LostInstrument Bond.

If, after 90 days have passed, we issue a replacement checkor re-credit your account, we are discharged from further liability. If a holder in due course presents the original checkafter that time, you must pay the proceeds of the original checkto the holder or the financial institution. You agree that if thishappens, and you do not pay us the amount of the originalcheck immediately upon our demand, we can deduct theamount of the original check from any Credit Union account inwhich you have an interest, and that if you do not have avail-able funds for us to exercise our Right to Recover Obligationsfrom Shares, our general rights to collect what you owe usand Collection Costs will apply.

Wire TransfersWe can make a wire transfer from your accounts and willcarry out your written instructions. We will also receive wire transfers for you. Wire transfers are subject to the terms ofFederal Reserve Regulation J and Article 4A of the UniformCommercial 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, ourresponsibility is to carry out the terms specifically as transmitted by the sending financial institution, includingany specific security procedure. If a specific account typeis not indicated, wired funds are posted to the checkingaccount.

2) We will not be liable for damages to you or a third partyif we carry out the written instructions in a reasonable manner.

3) We will not be liable for damages to you or any third partythat result from causes beyond our reasonable control(such as natural disasters or acts of war or terrorism) orfrom the acts or omissions of other institutions or partiesinvolved in your wire transfers.

4) We have a right to rely on any account or routing numbers furnished by you as sender or any numberstransmitted with a wire transfer from another financialinstitution for your benefit with reference to the depositof the funds received.

5) We have no obligation to correct erroneous spellingsof names or erroneous account numbers in sending or receiving wire transfer proceeds.

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6) In sending wire transfers for you, we will follow securityprocedures. If you make your request in person, we mayrequire photo identification. If you make your request bytelephone, we may call you back at your telephone num-ber in our records to confirm the request, and we mayalso ask you to confirm a telephone request by a signedauthorization letter before the wire transfer is performed.

7) We reserve the right not to complete wire transferrequests that do not contain the following information:Beneficiary’s financial institution name and address(including country if outside the United States),benefi ciary’s name and address, and beneficiary’saccount number. All wire transfer requests are screenedagainst lists provided to us by the United States Officeof Foreign Asset Controls and we will block or not complete any wire transfer to any prohibited countryor individual.

8) We will not be liable for indirect, consequential, or punitive damages in the event that loss is sustainedbecause we have failed to carry out instructions in a reasonable manner. Our liability is limited to theamount of the wire transfer.

9) You agree that wire transfers will be reflected on yourmonthly statement and that we have no duty to provideany further notice of incoming wires. You agree to examine your statement promptly and notify us of anywire transfer errors within 14 days after we mailed thestatement to you. If you do not notify us within 30 days ofthe mailing of the statement, we will not be liable for anyclaims, demands or expenses related to the error.

10) If we receive an erroneous transfer to your account, thesending party can reverse the transaction and the amountof the transfer will be deducted from your account. We willnotify you if this happens. If a wire transfer you receive isreversed, you agree to immediately restore any resultingoverdraft on our demand. If you do not do so, you agreethat we can recover any overdraft amount from any CreditUnion account in which you have an interest. You furtheragree that our rights under “Collection Costs” apply if wecannot recover what you owe by exercising our Right toRecover Obligations from Shares.

11) Unless we tell you otherwise, our cutoff time for wiretransfers is 2:00 pm Mountain Time for domestic wires,and 1:30 pm Mountain Time for international wires.Payment orders, cancellations or amendments receivedafter the cutoff time will be processed during the nextbusiness 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 userroneous information or if you have not kept current yourcontact information that we maintain in our records.

14) We can refuse to carry out a wire transfer request orchange order if we have reason to believe that doing sowill cause us a loss or for any other lawful reason.

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Shared BranchingIn order to provide you with more service options, SLFCU participates in the CU Service Centers network of sharedbranching. As part of the CU Service Center Network, SLFCUmembers will have access to numerous branches across thecountry. You can go to any one of the cooper ating branchesand conduct business as if it were at one of our branches, withsome limitations. You may find the locations of participating branches at www.creditunion.net.

Shared Branching Available ServicesYou 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 discretionof the CU Service Center. You may want to call the facilityyou plan to visit in order to verify that they offer these particularservices.

Shared Branching Transaction LimitsFor 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 moneythan the limits stated above, you may call SLFCU to arrangefor a special one-time limit increase. The increase will expire24 hours after your request.

Shared Branch FeesFees for shared branch transactions may be assessed againstand reduce earnings on your accounts.

SLFCU allows two free shared branch transactions per masteraccount per month. SLFCU imposes a fee for each additionalshared branch transaction. Please see the Schedule of Feesfor the current price for additional transactions. The sharedbranch you visit may charge transaction fees. The sharedbranch is required to disclose any fees to you before youbecome obligated to pay them. If assessed, these fees willbe deducted from the SFLCU account that you access atthe shared branch.

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Additional Shared Branching DisclosuresShared branches will not accept foreign currency or foreignchecks for deposit. Please bring your foreign checks to anSLFCU 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 computersystem to look up account numbers; therefore, you will needto present your account number each time you visit a sharedbranch facility. Because of these identification requirements,ATM transactions are not allowed at shared branches unlessthe ATM is part of the CU Anytime® ATM (in New Mexico) ora CO-OPSM ATM (in California) system.

Opting Out of Shared BranchingIf you would prefer to have your account restricted fromshared branching transactions, please call SLFCU and wewill accommodate your request.

FUNDS AVAILABILITY POLICY

When you deposit an item (such as a check) drawn on anotherfinancial institution, there is always a time delay before theitem reaches the institution on which it was drawn and wereceive payment. The following summary is given to you tohelp you understand the circumstances that might cause adelay in our making funds available to you and to meet federalnotice requirements of our check hold policy. Please read thisnotice and keep it for future reference.

General Rules Our policy is to make your funds available on the day ofdeposit, with certain exceptions. Funds from electronic directdeposits, wire transfers and cash deposits with a teller at anSLFCU office will be available on the day we receive them.Once they are available, you can withdraw the funds in cashand we will use the funds to clear checks and other checkingaccount withdrawals.

For determining the day of receipt of your deposits and theavailability of your deposits, every day is a business dayexcept Saturdays, Sundays and federal holidays. If a membermakes 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 dayof deposit. If a deposit is made after branch hours, or on a daythat we are not open, we will consider the deposit to havebeen made on the next business day we are open. Differentrules 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 accessto your funds on checks payable to you, endorsed by you,and deposited with a teller at an SLFCU office.

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Funds you deposit by check may be delayed for longer periodsof 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 withdrawfunds for any of these reasons, or for any other reason permitted by law, and we will tell you when the funds will beavailable. Your funds will generally be available no later thanthe 7th business day after the day of your deposit.

Foreign checks, or checks drawn on or payable through anoffice of a depository institution located outside of the UnitedStates are not subject to the funds availability policy (Regu la -tion CC), and as such may be held for longer periods. We maychoose to send your foreign checks for collection prior to givingyou credit for the item(s). There may be additional feesassessed for processing foreign checks that are charged bythe other financial institutions in clearing your foreign checks.Any fees that are assessed in the clearing of your foreignchecks will be passed on to you. We will let you know at thetime of deposit if there will be an extended hold placed on yourforeign check, and if there will be any fees before we takeyour foreign check and process it.

Location of Check EndorsementsFederal law requires all check endorsements to be in the first11/2 inches of the trailing edge of the back of the check. The trailing edge is opposite the left side of the face of thecheck. You will be responsible for any costs or delays theCredit Union incurs because checks deposited to youraccount do not comply with the endorsement rules.

ATM Deposits Funds AvailabilityIf you make a cash or check(s) deposit at a CU Anytime® ATM(in New Mexico) or a CO-OPSM ATM (In California) before 3:30p.m. Mountain Time (MT) every day except Saturdays,Sundays and federal holidays, we will consider that to be theday of deposit. Otherwise, the deposit is treated as beingmade 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 twobusiness days.

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

If you make multiple ATM deposits into multiple subaccountsunder your master account, and those deposits exceed $2,500in any one business day, we will make $200 available in theaccount that the initial deposit was made. The remaining fundswill become available based on the timeline mentioned above.

Shared Branching Funds AvailabilityPlease see the section titled “Shared Branching” for more information regarding SLFCU’s relationship with other CreditUnions across the country. With respect to items deposited atshared branch locations (meaning branches of Credit Unionsother than SLFCU that accept deposits of SLFCU membersthrough their participation in the CUSN shared-branch network), funds will be available on the following schedule.

Your Ability to Withdraw Funds from Deposits at aShared Branch LocationOur policy is to delay the availability of funds from non-cashdeposits that are accepted at a shared branch location. Duringthe delay, you may not withdraw the funds in cash and we willnot 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 businessdays from the day of your deposit. Every day is a business dayexcept Saturdays, Sundays and federal holidays. If you make adeposit on a day that we are not open, we will consider thedeposit to have been made on the next business day we areopen. The length of delay varies depending on the type ofdeposit, and is explained below.

Dividends will begin to accrue on the day we receive yourdeposit.

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 OrdersIf the deposit item is greater than $20,000 we will provide $200immediately, $4,800 in two business days and the remainder infive business days.

For deposits of check types not listed above, you will haveimmediate availability on items up to $2,500. For items greaterthan $2,500 and less than $20,000 you will have $200 avail-able immediately and the remainder available in two businessdays. For items greater than $20,000, $200 will be available

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

Longer Delays for checks deposited at aShared Branch LocationChecks deposited may be delayed for a longer period of time.Please refer to the “General Rules” section above for furtherinformation on why your check deposit may be delayed. Insuch instances, your funds will generally be available no laterthan the 7th business day after the day of your deposit.

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

Upon receipt of your deposit, SLFCU will grant the designatedaccount credit in the amount of the check(s) provisionally, subject to final payment of the check(s). You shall remain liableto SLFCU for any errors, inaccuracies, breach of warranties andany other loss sustained by, or claim made against, SLFCU.

To be eligible for processing on the day transmitted byCU@home® Deposit, the deposit must be technically con -forming as determined by SLFCU in its sole discretion. Youagree that checks transmitted through CU@home® Depositare not subject to the funds availability rules of FRBRegulation CC.

Checks transmitted to us by CU@home® Deposit will haveimmediate provisional credit on amounts up to $2,500. If yourdeposit is greater than $2,500, we will make $200 availableimmediately and the remainder will become available in fivebusiness days. We reserve the right to place an ExceptionHold (in which case a notice will be sent) and hold your fundsup to seven business days on all Deposits.

There is a limit of $25,000 that you may deposit per businessday (6pm Mountain Time, Monday-Friday, excluding federalholidays) through CU@home® Deposit. We may make fundsavailable earlier on a case by case basis depending on factorsin our sole discretion such as your history with us, your creditand transactions history and such other factors as we in oursole discretion may apply.

SLFCU has sole discretion as to the manner in which checksare cleared, presented for payment and collected, subject tothe Share Account Agreement.

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ELECTRONIC FUNDS TRANSFERAGREEMENT 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, automaticpayment of regular bills and electronic checks (checksconverted to ACH transfers). All EFTs are subject to theterms governing the Credit Union Accounts you accesselectronically.

Consent to TermsBy applying for, keeping, signing, or using any type of EFTaccess device offered by the Credit Union, you acknowledgereceipt of this Agreement and disclosure and you agree thatyour use of EFT services will be subject to its terms.

EligibilityTo qualify for EFT services, you must be a Credit Union member in good standing (including the deposit and main -tenance of $5 in your Regular Share Account, meeting yourloans obligations and avoiding overdrafts on your accounts),and your checking account history with the Credit Union andother institutions must be satisfactory. To qualify for an ATMCard or a MasterMoney® ATM/Check Card, you must havea Credit Union Account in good standing, and your credit history must be acceptable to us.

Security of Your AccountsKeep Your Password or PIN Secret and Your Card Safe

You cannot use an ATM Card or a MasterMoney® ATM/CheckCard at an ATM or point-of-sale terminal without keying yourPersonal Identification Number (PIN) into the ATM or terminalafter inserting your Card into the machine. Your randomlyselected PIN will be given to you when you request an ATMCard 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 ThePhone. You may change the PIN to any four-digit number youchoose by following the instructions on the phone system.

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

To keep your password or PIN secret, please follow these simple rules. Memorize them, just as you learn a fre quentlycalled telephone number. Do not keep a written record of yourpassword or PIN. If you must write your password or PINdown, do so in a way that they will not be recognized as password or PIN, and do not write them on your Card or nearthe 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 Cardor PIN, contact the Credit Union immediately and request thatyour 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 ATMCard or a MasterMoney® ATM/Check Card as carefully asyou treat cash.

FeesAny fees that apply to EFTs are shown on the Schedule ofFees or in the Truth in Savings Disclosure. In addition, if a merchant, ATM or POS terminal that honors your ATM Cardor MasterMoney® ATM/Check Card imposes a fee for the useof the Card, we will pass that fee along to you.

ATM withdrawal fees apply to each primary account, not toeach ATM card or MasterMoney® ATM/Check Card or eachsub-account. If a member has a checking account which offers10 free ATM withdrawals per month and a second type ofchecking account which offers 20 free ATM withdrawals permonth, it doesn’t matter which savings or checking account isaccessed for the first 10 ATM transactions – they will all befree from ATM fees (not including fees charged by ATMs orpoint-of-sale devices outside of the CU Anytime® or CO-OPSM

network). If the 11th transaction accesses the 10 free permonth checking account or the savings account, there will be afee. However, withdrawals from the 20 free per month checkingaccount would still be free until the 21st transaction inthe month.

Services offering EFTsCU@home® On The Phone (Audio Response)CU@home® lets you access your accounts electronically bytouch-tone telephone from anywhere in the United States bydialing (505) 293-0500 (in Albuquerque) or (800) 947-5328(outside of Albuquerque).

Available Phone Services with CU@home®On The PhoneBy keying in your PIN and the proper command on a touch-tone phone, you will be able to:

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1) Request a withdrawal by check from your Regular Shareor Share Draft checking account to be mailed to the primary Member at his/her address of record or to bepicked up at a branch;

2) Transfer funds between your Share Draft Checking,Regular Share or Investors’ Choice Money MarketAccounts, 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 toyour Regular Share, Investors’ Choice Money Market,or Share Draft checking account.);

6) Find out if a check has cleared on your Share Draftchecking 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 tomake 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 yourmost 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, twenty-four hours a day. The only time you will not be able to accessyour account is during computer system maintenance.Please visit www.slfcu.org for a downtime schedule.

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

Unauthorized Phone Transactions Notify the Credit Union immediately if you believe an unauthorized person has gained access to your secretCU@home® On The Phone PIN. You should also change yourPIN immediately. Call CU@home® On The Phone to obtaininstructions for changing your PIN by telephone. See“Unauthorized Transactions” in the “Terms Applicable to AllEFTs” section of this Handbook for information on howto contact the Credit Union and other information on yourpotential liability for unauthorized transactions.

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

On The Phone.

CU@home® Online and BillPayerIf you have a personal computer with Internet access anda CU@home® Online, you can use CU@home® and BillPayerwith 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 MarketAccounts;

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; and19) Make credit card payments (note that credit card

payments may take up to three days to process, andfuture cash advances may be delayed until your paymentis posted to your account); and

20) Transfer funds to and from accounts at other financialinstitutions; and

21) For members who qualify for the service, make depositsof checks into your account.

With Bill Payer, you can pay your bills automatically withoutwriting a check.

Please visit www.slfcu.org for a current CU@home® availabilityschedule to see when CU@home® is scheduled to be availablefor your use.

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LimitationsAll transactions are limited to available funds in your accounts.CU@home® Online transfers out of your Regular ShareSavings Account count toward the six-per-month limit (see theDeposits and Withdrawals section of this Handbook fordetails). Transfers out of your savings accounts are subject toa limit each month according to Regulation D of the FederalGovernment. Investors’ Choice Money Market Accountdeposits and withdrawals are also subject to dollar amount limits as explained in the Truth in Savings Disclosure.

Unauthorized CU@home® and Bill Payer TransactionsNotify us immediately if you believe an unauthorized personhas gained access to your secret CU@home® password.See “Unauthorized Transactions” in the “Terms Applicable toAll EFTs” section of this Handbook for information on howto contact the Credit Union and other information on your potential liability for unauthorized transfers.

Other Bill Payer TermsAs a user of the bill payment service accessed through SandiaLaboratory 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 CreditUnion and any other entities involved in the payment systemcannot guarantee the time any payment will reach any of yourcreditors. Proper crediting of payment amounts is dependenton the account/payee information provided by you. If youwish to discontinue the bill payment service, please notifySLFCU via a CU@home® secure message, an e-mail toebranch@slfcu.org 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 yourcreditors. Payments can be sent from the BillPayer systemelectronically or as a paper check, depending upon your creditor’s (payee’s) ability to receive funds elec tronic ally.SLFCU has no control if your payment will be sent electron ic -ally or as a paper check, and most payments (over 70%)are sent electronically. If the Payment Process Date falls onSaturday, Sunday or a federal holiday, the payment will besent on the business day prior to the weekend or holiday date.

Payments can be scheduled on a recurring basis so they areprocessed for the same amount at the frequency you specify.Payments can also be scheduled with a single frequency, thereby only submitting one payment. Regard less of whichoption 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 fundswill be deducted from your account.

Please note the following differences in payment processingaccording to the processing method.

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Electronic Payment ProcessingPayments that are sent electronically will be deducted fromyour account on the Payment Process Date. The PaymentProcess Date for electronic payments should be set at leasttwo business days prior to the Payment Due Date. Fundsfor electronic payments must be available in your accounton the Payment Process Date in order for the payment tobe processed. If you have a pre-approved source of overdraft protection with available funds or credit, funds will be trans -ferred accordingly.If the payment is not made due to insufficientfunds, including insufficient funds or credit available in over-draft protection, we will make one, and only one, additionalattempt to process the payment on the next business day afterthe originally scheduled Payment Process Date. If the paymentis not made on either the original Payment Process Date orthe next business day, you must reschedule the payment.

Paper Check ProcessingPayments that are sent as a paper check will be processed(mailed) on the Payment Process Date. Because paper checkpayments may take up to seven business days to reach certainthird party payees (for example, your church, dry cleaner,or paper carrier), the payment process date should be set atleast seven business days ahead of the Payment Due Date.SLFCU’s bill payment processor will print the paper checkswith SLFCU’s routing number and your designated checkingaccount number. Paper check payments will be deducted fromyour account when the paper check clears our institution viathe normal check-clearing process. Please refer to the ShareDraft checking accounts section of the Universal Disclosureand Member Handbook for additional information on checkpayment and processing.

The Credit Union is not responsible for problems asso ciatedwith late BillPayer payments, such as alleged harm to yourcredit standing or late fees, unless the payment is late becausewe failed to follow your timely and accurate payment instructions. We will not be responsible for inaccurate postingof payments by payees, items lost or mis-delivered by thepostal service, your failure to provide timely and accurateinstructions, or other causes outside our reasonable control.If you experience harm to your credit standing as a result ofour bill payment processing error, our responsibility is limitedto working with your creditor to correct any negative information reported about you to credit bureaus.

The Credit Union will process bill payment requests only topayees as authorized by you. We are not responsible for andmay not process a bill payment request if the required transaction information is incomplete.

Once a payment has been made consistent with your instruc-tions, it is final and cannot be revoked. You must resolve anydisputes, including disputes about failure to correctly credityour payments, directly with the payee.

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If you contact us before the payment is withdrawn from youraccount, 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 failto stop the payment. There may be a charge for stop paymentsthat you request. Please see the Schedule of Fees for feedetails.

CU@home® DepositCU@home® Deposit allows you to make secure, real-timecheck deposits that post to your account immediately any-where you have access to a computer, Internet connectionand a scanner. No need to mail checks or visit a branch or ATM,just follow a few simple steps as prompted by the system andenjoy access to available funds deposited using CU@home®

Deposit. A portion of your deposit may not be immediatelyavailable based upon check hold policies. See the “FundsAbility Policy” section for details when your deposits may beavailable for withdrawal.

Not everyone will have access to CU@home® Deposit. Thereare eligibility requirements to use CU@home® Deposit such ashaving an account in good standing, enrollment in CU@home®

Online, and not opting out of Shared Branching. ContactSLFCU to see if you qualify for this service.

There are other requirements to use this service to, such ashaving a TWAIN compliant scanner, an Internet connection,and a compatible Internet browser.

Not all checks are eligible for deposit. The following checksare 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 suchaffiliate;

3) Checks that you know or suspect, or should know or suspect, are fraudulent or otherwise not authorized bythe 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 financialinstitution (a bank, savings and loan, or a credit union)and are either “substitute checks” or Image ReplacementDocuments (“IRD”) that purport to be substitute checks,without SLFCU’s prior written consent;

5) Checks that are drawn on financial institutions that arelocated outside of the United States or Territories of theUnited States;

6) Checks that are Remotely Created Checks, as that termis defined in Reg CC; or

7) Checks which are not acceptable to credit union forremote deposit into a deposit account, including:

• Savings Bonds • Mutilated Checks

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Additional Terms Applicable to CU@home® and Bill PayerPlease read the section below entitled “Terms Applicable toAll EFTs” carefully. These terms apply to CU@home® andBillPayer.

ATM Card or a MasterMoney® Check Card

Available ATM and Check Card ServicesYour Check Card bears the MasterCard® logo, but it is a debitcard, not a credit card. Whenever you use your ATM Card ora MasterMoney® Check Card for a transaction, the money isdeducted from your Credit Union Account.

With Check Card merchant transactions and Point of Sale(POS) transactions the amount of the transaction is deductedfrom your checking account as soon as the transaction is post-ed to your account. You should be aware that there may be atime lag between the time a merchant obtains an authorizationon your Check Card and the time the transaction posts to youraccount. An authorization will result in a hold on your funds forthe amount of the transaction for a limited time, generally not inexcess of three business days. If the trans action fails to postbefore the hold expires, the hold will be released and the trans-action amount will be available to pay other items presented onyour account. You are responsible for ensuring that you havesufficient 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 cardand may change from time to time.

You can use your ATM Card or a MasterMoney® ATM/CheckCard and randomly generated PIN on the designatednetworks to:1) Withdraw cash from your Share Draft Checking and

Regular Share Savings Accounts, up to $400 percalendar day.

2) Make balance inquiries on your Regular Share andShare Draft checking accounts.

3) Transfer funds between Regular Share and Share Draftchecking accounts.

4) Obtain cash from merchants and financial institutionsthat offer MasterCard® cash advances.

5) Make deposits to your Share Draft Checking and RegularShare Savings Accounts (only at CU Anytime® ATMs inNew 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 only1) 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.

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The non-PIN side of your card can usually be activatedwhen a merchant or cashier asks if this is a credit ordebit transaction and you choose credit. Although thisis neither a credit card nor a credit purchase, when thetransaction is run through as a credit, your limit will be$10,000 per day. You may contact us for an increase ifyou know you will be making a large purchase. Theincrease will be temporary and expire 24 hours afteryour request.

3) Pay for goods or services wherever MasterCard®

is accepted.

Limitations on TransactionsCash withdrawals and transactions are generally limited toyour available checking account balance or the amounts indicated above. Although you have sufficient funds in yourchecking account to cover a requested withdrawal, it may bepossible that an ATM, merchant, financial institution or otherentity 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 anysuch ATMs or entities to allow you to use your ATM Card or aMasterMoney® ATM/Check Card or for their retention of yourATM Card or a MasterMoney® ATM/Check Card.

ATM Card & MasterMoney® ATM/Check Card TermsUse of an ATM Card or a MasterMoney® ATM/Check Card willbe treated as though it were a check and will also be governedby the checking account terms in this Handbook (including anyoverdraft protection you have available), except that1) We may charge withdrawals to the checking account in

any order we determine consistent with the law. If fundsare not sufficient to cover all withdrawals, we may payATM Card or a MasterMoney® Check Card withdrawalsand dishonor regular checks, or vice versa.

2) We cannot honor stop payment requests on ATM Cardor a MasterMoney® ATM/Check Card transactions.

3) You must attempt to settle any disputes you have withmerchants regarding the goods or services you purchased with an SLFCU ATM or a MasterMoney®

ATM/Check Card directly with the merchant. You agreeto indemnify SLFCU and hold us harmless from anyclaims or liability resulting from merchant disputes.

Other ATM Card or a MasterMoney® ATM/Check Card TermsAlthough other documents you may receive when you initiatetransactions with your ATM Card or a MasterMoney®

ATM/Check Card, such as sales receipts, may have contractterms printed on them, your ATM Card or a MasterMoney®

ATM/Check Card agreement with the Credit Union is limited tothe terms in this Handbook, including both the ELECTRONICFUNDS TRANSFER section and the checking account Terms.

Cash withdrawals and purchases made in foreign countriesand foreign currencies will be charged to your checking

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account in U.S. Dollars. The conversion rate to U.S. Dollarswill be made in accordance with the operating regulations forinternational transactions established by MasterCard®

International, Inc., through whose facilities ATM Card or aMasterMoney® ATM/Check Card withdrawals are handled.

Returns and Merchant Disputes Merchants and others who honor the ATM Card or aMasterMoney® ATM/Check Card may give credit for returns oradjustments. When we receive the credit from the merchantor other entity, we will credit your account for that amount.

Check Cards fall under Federal Reserve Regulation E, notFederal Reserve Regulation Z, because they are debit cards,not credit cards. Unlike Regulation Z, Regulation E doesnot give you any special rights if you have a dispute with a merchant regarding the goods or services you purchasedwith a debit card.

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

Liability for Unauthorized Use General Rule: In general, MasterCard® operating rules specifythat you will have no liability for unauthorized use of yourMasterMoney® ATM/Check Card. Zero Liability is providedunder 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’szero 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 Unionbenefit if losses for unauthorized ATM Card or a MasterMoney®

ATM/Check Card use are kept to a minimum. We can terminateCredit Union services, including your ATM Card or aMasterMoney® ATM/Check Card privileges, if your negligencein failing to report unauthorized transactions causes us a loss.

Additional TermsPlease read the section below entitled “Terms Applicable toAll EFTs” very carefully. The terms apply to your ATM Cardor a MasterMoney® ATM/Check Card.

Automated Clearinghouse (ACH) ServicesACH transfers are regular automatic deposits into youraccount, such as direct deposit of your payroll or retirementbenefits, and regular automatic payments out of your account,

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

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

Credits to your accounts received via ACH are provisional untilwe receive final settlement through the Federal Reserve. If wedo not receive final settlement, we will deduct the amount ofthe credit from your account balance, and the payor will notbe considered to have paid the amount to you.

Under the operating rules of the National Automated ClearingHouse Association, which are applicable to ACH Transactionsinvolving your account, we are not required to give next daynotice 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 accountwhich have been transmitted through one or more AutomatedClearing Houses (ACH) and which are not subject to theElectronic Fund Transfer Act and your rights and obligationswith respect to such payments shall be construed in accordance with and governed by the laws of the state ofNew Mexico as provided by the operating rules of theNational Automated Clearing House Association, which areapplicable to ACH transactions involving your account.

ACH ScheduleACH transactions are subject to the Federal Reserve schedule,and as such, will be made on business days, Monday throughFriday, excluding federal holidays. If you schedule your ACHpayment, or you have a recurring ACH transfer that falls ona weekend or holiday, it will be completed the following business day.

Available ACH ServicesACH 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 ServicesFor deposits, the payor (the person or entity that pays youmoney) must offer direct deposit via ACH in order for youto 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 yourRegular Share and other Savings Accounts are limitedto three per month.

Electronic Check ConversionsElectronic Check Conversions are one of the transaction typesthat may be made from your account using information from

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your check. You may authorize a merchant or other payee,to use information from your check, to make a one time elec-tronic payment for paying bills or to make purchases from your checking account. You can purchase goods or pay for servicesand authorize a merchant or service provider to convert yourcheck 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 serviceprovider to electronically collect a charge in the event that thecheck is returned for insufficient funds and/or other fees.Paying such a fee electronically is an electronic funds transfer.Your authori zation to make these types of electronic fundstransfers may be expressed in writing, implied through theposting of a sign or your participation in the initiation of the processing of the transaction. This can also happen when youprovide information from your check or an account to anotherby telephone, mail, drop box, Internet or otherwise, who thenconverts 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 inthis Membership Agreement.

Some merchants or service providers will initiate an electronicfunds transfer to collect a charge in the event a check or draftis 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 informationon 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 pay-ments 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 endof this disclosure, in time for us to receive your requestthree business days before the payment is scheduled tooccur. If you call, we can ask you to confirm your oralrequest 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 notifyyour initiator in writing to stop the charges and sendus a copy.

3) If you order us to stop a payment three business daysbefore 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.

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

Error Correction for ACH TransactionsIf an ACH transfer is made to your account in error(for example, if your employer inadvertently makes a doubledeposit of your net pay), you agree that we can reverse the erroneous payment without advance notice to you, althoughyour statement and account history (available throughCU@home®) will reflect such reversals. If an error correctionresults in a negative balance in your account, you agree toimmediately restore your account to a positive balance on ourwritten demand. If you do not do so, you agree that our Rightto Recover Obligations from Shares applies. If we cannotrecover what you owe by exercising our Right to RecoverObligations from Shares, you agree that our right to recoverCollection Costs applies.

Terms Applicable to All EFTs

Responsibility for Transactions1) If you authorize us to issue a duplicate ATM Card or a

MasterMoney® ATM/Check Card to someone, or if yougive your ATM Card or a MasterMoney® ATM/Check Cardor PIN for your ATM Card or a MasterMoney® ATM/CheckCard or CU@home® to another person, you are authorizingthat person to withdraw funds and perform other trans -actions on your accounts covered by this agreement,regardless of any limits to which you and the authorizeduser have agreed. You are responsible for any trans -actions that person makes. We are not subject to agree-ments between you and other people limiting their use ofyour EFT devices. This rule also applies to any otherEFT service that may become available in the future.

2) You consent to the terms of this agreement by using anyEFT access device (such as an ATM Card or aMasterMoney® ATM/Check Card, or CU@home®).You continue to be bound for all transactions resultingfrom the use of EFT devices until you give us writtennotice to deactivate the device and, if it is a physicaldevice 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 anATM Card or a MasterMoney® ATM/Check Card,or uses an EFT device for transactions, is equallyobli gated (jointly and severally) with any other suchperson to meet the terms of this agreement.

b. You are also obligated to repay any charges resultingfrom the use of any EFT device by another person

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with your express or implied permission, whether ornot the person stays within the limits of use you setfor them.

c. Any persons who use an EFT device are also obligated to repay the Credit Union for all chargesincurred because of their use of the access device.

d. You remain bound to pay for charges under thisagreement even though another person has beendirected to pay the debt by an agreement or courtorder to which the Credit Union is not a party, such asa divorce decree. A release from the obligation to payamounts owed to us will be valid only if in writing andsigned by an authorized Credit Union employee or ifpursuant to a court order in an action to which theCredit Union is a party.

3) You understand and agree that if you or anyone youauthorize to use an EFT device gives conflicting instructions on an electronic keypad (such as a computeror ATM keypad) and a deposit slip or other written instruction, the Credit Union will follow the instructionsgiven on the electronic keypad.

4) You agree that if you or anyone acting with you usesan EFT device with fraudulent intent, we consider that transaction to have been authorized by you.

5) All EFTs are subject to Credit Union verification.

Prohibition on Unlawful TransactionsYou agree that you will not use or allow others to use your ATMCard or a MasterMoney® ATM/Check Card or any other EFTdevice for illegal transactions such as illegal on-line gambling.We have the right (but not the obligation) to refuse transactionrequests or terminate your ATM/Check Card ATM Card or otherEFT privileges if we reasonably believe that you are attemptingto use, or allowing others to use, your Card or other EFTdevice for illegal transactions. However, ultimate responsibilityfor 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 TransactionsEach time you use an ATM Card or a MasterMoney®

ATM/Check Card at an ATM, you will receive an acknowledge-ment receipt describing the transaction (unless an ATM notifiesyou in advance that it cannot issue a receipt or, at somemachines, you elect not to get a receipt.) You will also get areceipt when you use your MasterMoney® ATM/Check Cardat a Point of Sale terminal or if you use it for a signature trans -action. If your transaction is for $15 or less, you may notreceive a receipt from an ATM, Point of Sale or signature-based transaction. Merchants are no longer required to issuereceipts for ATM Card or MasterMoney® ATM/Check Cardtransactions under $15. Keep the receipts you do receive toupdate your records and to verify your monthly statementson which these transactions will also appear. CU@home®

transactions are reflected only on your monthly statement.

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

Excess WithdrawalsWithdrawals or transfers must be backed with actual availablefunds in your Credit Union Share Draft Checking or ShareSavings Accounts. If you have elected overdraft protection onyour checking account, we will make a loan advance or trans-fer funds from your designated overdraft protection accountsource sufficient to cover any negative account balance dueto EFT withdrawals up to your available credit limit or the available balance in your account, depending on the overdraftpro tection source(s) you have. Overdraft protection is onlyavailable on checking accounts. Remember that RegularShare and other Savings Accounts designated as overdraftprotection sources are subject to a limit of six overdraft trans-fers per month. Funds will be taken out of your accounts in theorder you designate on your separate Overdraft Authorizationform. Unless you have authorized and have available OverdraftProtection, cash may not be dispensed if available funds in theaccessible accounts are not sufficient. It is your responsibilitynot to attempt to withdraw cash against deposits that have notyet cleared in the time permitted by the law and MasterCard®

and Credit Union pro cedures. By requesting an ATM Cardor a MasterMoney® ATM/Check Card when your Share Draftchecking account is linked to a line of credit or credit cardfor overdraft protection, you are requesting issuance ofa credit card.

In rare cases, system malfunction may result in your being ableto electronically withdraw funds from an account that does nothave sufficient funds to cover the transaction and on which youdo not have overdraft protection. If this happens, you areresponsible for restoring any amount by which your account isoverdrawn. If you do not, our Right to Recover Obligationsfrom Shares and our right to recover Collection Costs apply.

Unauthorized Transactions - All EFTs Your Liability for Unauthorized UseTell 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 anunauthorized person, or that someone has transferred or maytransfer money from your account without your permission.Please refer to the “HOW TO CONTACT US” section at theend of this Handbook for how to notify us. Telephoning is thebest way to keep losses down. You could lose all the moneyin your account, plus your maximum overdraft line of creditif you fail to promptly report unauthorized ATM Card or aMasterMoney® ATM/Check Card, CU@home® and BillPayeruse 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® PINhas been lost or stolen or otherwise made available to an

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unauthorized person, and you tell us within two (2) businessdays after you learn of the loss or theft, you can lose no morethan $50, if someone used your Card PIN or both withoutyour permission.

However, if you DO NOT tell us within two (2) businessdays after you learn of the loss or the theft of your Cardand/or the loss, theft, or other unauthorized dissemination ofyour PIN, and we can prove we could have stopped someonefrom using your Card and/or PIN and/or password withoutyour 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) daysafter the statement was mailed to you, you may not get backany money you lost after sixty (60) days, if we can prove thatwe could have stopped someone from taking the moneyif you had told us in time. That means you could lose all themoney in your account plus your maximum overdraft lineof 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 ofyour Check Card.

Authorized Users: Please remember, any person whoreceives an additional access device (ATM Card orMasterMoney® 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 ofthe money in your account. We refer to such persons asauthorized users, and you agree that all authorized users maywithdraw funds from your accounts with the access device. Forexample, if you give your friend your ATM Card or MasterMoney®

ATM/Check Card in May and tell her to buy groceries, andshe obtains your card in November and uses it to get cashout of an ATM, the November transaction is considered author-ized by you. The only way you can stop an authorized userfrom withdrawing funds from your accounts is to notify us tocancel your access device. You remain liable for any authorized use of your EFT devices that occurs beforeyou tell us to cancel them.

Credit Union Liability for Failure to CompleteElectronic Fund TransfersIf we do not properly complete an electronic fund transferaccording to our agreement with you, we will be liable foryour direct losses or damages. However, there are someexceptions.1) We will not be liable, if:

a. through no fault of ours, your account does not containenough money, or you don’t have available credit, tomake the transaction;

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b. the ATM where you are making the transaction doesnot have enough cash;

c. the equipment was not working properly and youknew about the breakdown when you started thetransaction;

d. the money in your account is subject to legal processor other claim;

e. your ATM Card, MasterMoney® ATM/Check Card,or PIN has been reported lost, stolen, or missing andwe 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 theCredit Union and you are given proper advance noticeof them.

2) In no event will the Credit Union be liable for consequential, indirect or punitive costs or damages.

3) The Credit Union will carry out instructions given to uselectronically, whether through the ATM, CU@home®

or a Point of Sale (POS) terminal, or in writing, such asthrough a pre-authorized transfer instruction orATM/CheckCard signature transaction. We will not incurliability for doing so in a reasonable manner. You agreeto indemnify and save the Credit Union harmless fromall suits, costs, claims, damage, or liability that we sustainas a result of carrying out in a reasonable manner instructions received from you or any authorized userthrough an ATM, POS terminal, signature transaction,or any other EFT service that is now available orbecomes available in the future.

4) The Credit Union may arrange for the availability of ATMsat various locations with access during non-businesshours for the convenience of its members. However, ATMsites are not subject to our control. You assume the riskof using them since the Credit Union does not in any waywarrant the security or safety of any location. The CreditUnion is not responsible for wrongful acts committed byanyone who is not an authorized agent or employee ofthe Credit Union regarding your use of ATMs. The CreditUnion will not be liable for consequential damage that youclaim results from our failure to complete a transaction.

5) Security: Avoid using ATM machines alone at night orat sites that appear to have the potential for assault or robbery. Have deposit slips and any other paperworkfilled out before you reach the ATM. Put your moneyaway and leave the site as soon as you have completedthe 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.

PrivacyWith respect to Electronic Fund Transfers, the Credit Union willdisclose information about your accounts or the transfers youmake only (a) when necessary to complete a transfer, (b) to

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verify the existence and condition of your account for a thirdparty such as a credit bureau or merchant, (c) in order to comply with government agency or court orders; or (d) if yougive us written permission. Please refer to the SandiaLaboratory 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 securityof member personal and financial information.

Change in Terms – Cancellation1) The Credit Union may change the terms of the EFT

section of this Handbook, including the types of EFTsavailable, by mailing or delivering a written notice oramended Handbook to you at your last known address onour records for the account. When we change the termsof EFTs, we will give you at least 21 days’ written notice.You agree that we may immediately terminate your EFTservices 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 orCU@home® PIN) breach this or any other agreementbetween us (including loan agreements);

b) we have reason to believe that there has been or maybe an unauthorized use of any of your Cards or PINs;

c) there are conflicting claims to the funds in youraccount;

d) you or any authorized signer on your account requestsus to do so;

e) you withdraw funds at a time when funds are not available in your Credit Union accounts accessedvia EFT and you do not have an available sourceof overdraft protection;

f) it is reasonably necessary to protect the securityof 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 DepositsAvailability 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 towithdraw funds before they become available. Reference tothe FUNDS AVAILABILITY POLICY will help you comply withthis rule.

Additional Terms1) 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 retainthe Card.

2) Business days are Monday through Friday. The CreditUnion may be open to provide limited services on otherdays, but we do not consider those days “business days”as that term is used in this disclosure.

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In Case of Errors or Questions aboutYour Electronic TransfersIf you think that an electronic transfer shown on your statementis 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 sectionentitled “WHAT TO TELL US IN CASE OF ANY ERROR ORINQUIRY” at the end of this disclosure.

We must hear from you no later than sixty (60) days afterwe sent you the FIRST statement on which the error or problem appeared. If you tell us orally, we may require thatyou 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 fromyou 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-Saletransactions, 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 withinten (10) business days (twenty (20) business days for newaccounts) for the amount you think is in error, so that you willhave use of the money during the time it takes us to completeour investi gation. If your complaint or question relates to aclaim 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) businessdays. A “new account” is one open thirty days or less.

If we ask you to put your complaint or question in writing andwe do not receive it within ten (10) business days, we maynot re-credit your account. We will send you a written explana-tion of the results of our investigation within three (3) busi-ness days after we finish our investigation. You may ask forcopies 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 imposingan overdraft fee, but only to the extent the overdrafts are equalto or less than the amount of the provisional credit we deductedfrom your account. If any item overdraws your account by morethan the amount of the provisional credit, you will be chargedan overdraft fee. You agree to immediately restore to theCredit Union the amount of any overdraft on your accounts.

TABLE OF CONTENTS

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

GENERAL AGREEMENTS OF MEMBERS. . . . . . . . . . . . . . . 5Joining the Credit Union. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Membership Requirements and Eligibility for Services . . . . 5Denial of Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Meeting Your Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . 7If You Experience Financial Difficulty . . . . . . . . . . . . . . . . . . 7Your Consent to Our Right to Recover

Obligations from Shares (Right of Offset) . . . . . . . . . . . 8Collection Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Fees and Damages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Governing Agreements and Laws . . . . . . . . . . . . . . . . . . . . 9Backup Withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Electronic Service Options . . . . . . . . . . . . . . . . . . . . . . . . . 10Change of Address. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Waiver; Modification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Revocable Authorization to Check Credit. . . . . . . . . . . . . . 11Your Consent to the Terms of this Handbook . . . . . . . . . . 11

YOUR CREDIT UNION SHARE ACCOUNTS . . . . . . . . . . . . 11

General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Earnings and Payment of Dividends . . . . . . . . . . . . . . . 11Account Ownership and Transfer of

Proceeds at Death . . . . . . . . . . . . . . . . . . . . . . . . . 12Changing Account Ownership or Beneficiaries . . . . . . . 15Continuing Authorization to Open Accounts . . . . . . . . . 15Our Obligation to Follow Your Instructions . . . . . . . . . . 15Privacy and Disclosure of Information. . . . . . . . . . . . . . 16Disclosure to Owners, Obligors, and Persons

Authorized on Your Accounts . . . . . . . . . . . . . . . . . 16Disclosures to Third Parties . . . . . . . . . . . . . . . . . . . . . 16Deposits and Withdrawals . . . . . . . . . . . . . . . . . . . . . . . 17Federal Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Dividend Calculation, Compounding,

and Crediting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Permanent Records and Statement Review . . . . . . . . . 19In Case of Errors or Inquiries

about your Statement . . . . . . . . . . . . . . . . . . . . . . . 20Other Errors or Inquiries . . . . . . . . . . . . . . . . . . . . . . . . 20Electronic Transfer Errors or Unauthorized Use . . . . . . 21Inactive Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Dormant Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Closing Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Escheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Our Handling Accounts In Case Of Your

Death or Incompetence . . . . . . . . . . . . . . . . . . . . . 22

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

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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 UnionP.O. Box 23040

Albuquerque, NM 87192-1040

Visit us on the Web:WWW.SLFCU.ORG

email: ebranch@slfcu.org

Fax:(505) 237-3737(877) 256-3737

You may also visit any Credit Union office.

WHAT TO TELL US IN CASE OFANY ERROR OR INQUIRY

1) Tell us your name;

2) Account number;

3) Describe the error or the transfer about whichyou are unsure;

4) Explain, as clearly as you can, why you believethere 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

ALBUQUERQUE, NM AREA

Mailing AddressPO Box 23040Albuquerque, NM 87192-1040

Credit Union Center3707 Juan Tabo NE, 87111

Cottonwood3740 Ellison Road NW, 87114

Edgewood150 State Road 344, Suite BEdgewood, NM 87015

Goodrich(Inside Goodrich Corporation)

6600 Gulton Court NE, 87109

KirtlandWyoming & I Street, KAFB, 87117

Los Lunas2700 Palmilla Road NWLos Lunas, NM 87031

Paseo del Norte (at Ventura)

8920 Holly NE, 87122

Tech Park1301 Britt Street SE, 87123

LIVERMORE, CA

Mailing AddressPO Box 2908Livermore, CA 94551-2908

Livermore East7011 East Avenue, 94550

Livermore Downtown39 South Livermore AvenueSuite 101, 94550

Phone Center505.293.0500 or800.947.5328 (800.94.SLFCU)

Fax505.237.3737877.256.3737 toll-free

Emailebranch@slfcu.org

Website & Online Bankingwww.slfcu.org

Wire Transfer orSet-Up Direct DepositUse ABA Routing # 307083911

28,000 No-Fee ATMsNationwideATM Locator at www.slfcu.orgor 888.748.3266 (888.SITE.CO.OP)

4,000 Shared BranchLocations NationwideShared Branching Locatorat www.slfcu.org or800.919.2872 (800.919.CUSC)

Federally insured by NCUA

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

YOUR SANDIA LABORATORYFEDERAL CREDIT UNIONUNIVERSAL DISCLOSURE

&MEMBER HANDBOOK

December 2011

TABLE OF CONTENTS

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

GENERAL AGREEMENTS OF MEMBERS. . . . . . . . . . . . . . . 5Joining the Credit Union. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Membership Requirements and Eligibility for Services . . . . 5Denial of Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Meeting Your Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . 7If You Experience Financial Difficulty . . . . . . . . . . . . . . . . . . 7Your Consent to Our Right to Recover

Obligations from Shares (Right of Offset) . . . . . . . . . . . 8Collection Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Fees and Damages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Governing Agreements and Laws . . . . . . . . . . . . . . . . . . . . 9Backup Withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Electronic Service Options . . . . . . . . . . . . . . . . . . . . . . . . . 10Change of Address. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Waiver; Modification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Revocable Authorization to Check Credit. . . . . . . . . . . . . . 11Your Consent to the Terms of this Handbook . . . . . . . . . . 11

YOUR CREDIT UNION SHARE ACCOUNTS . . . . . . . . . . . . 11

General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Earnings and Payment of Dividends . . . . . . . . . . . . . . . 11Account Ownership and Transfer of

Proceeds at Death . . . . . . . . . . . . . . . . . . . . . . . . . 12Changing Account Ownership or Beneficiaries . . . . . . . 15Continuing Authorization to Open Accounts . . . . . . . . . 15Our Obligation to Follow Your Instructions . . . . . . . . . . 15Privacy and Disclosure of Information. . . . . . . . . . . . . . 16Disclosure to Owners, Obligors, and Persons

Authorized on Your Accounts . . . . . . . . . . . . . . . . . 16Disclosures to Third Parties . . . . . . . . . . . . . . . . . . . . . 16Deposits and Withdrawals . . . . . . . . . . . . . . . . . . . . . . . 17Federal Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Dividend Calculation, Compounding,

and Crediting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Permanent Records and Statement Review . . . . . . . . . 19In Case of Errors or Inquiries

about your Statement . . . . . . . . . . . . . . . . . . . . . . . 20Other Errors or Inquiries . . . . . . . . . . . . . . . . . . . . . . . . 20Electronic Transfer Errors or Unauthorized Use . . . . . . 21Inactive Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Dormant Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Closing Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Escheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Our Handling Accounts In Case Of Your

Death or Incompetence . . . . . . . . . . . . . . . . . . . . . 22

Savings Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Regular Savings Account . . . . . . . . . . . . . . . . . . . . . . . 23Investors 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 UnionP.O. Box 23040

Albuquerque, NM 87192-1040

Visit us on the Web:WWW.SLFCU.ORG

email: ebranch@slfcu.org

Fax:(505) 237-3737(877) 256-3737

You may also visit any Credit Union office.

WHAT TO TELL US IN CASE OFANY ERROR OR INQUIRY

1) Tell us your name;

2) Account number;

3) Describe the error or the transfer about whichyou are unsure;

4) Explain, as clearly as you can, why you believethere 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