Share Draft Accounts

NCUA $250,000 Insurance Logo A “share draft” account is similar to a commercial bank’s checking account. Drafts (checks) are written which are automatically paid as long as there are sufficient funds to cover all items. The original drafts are not returned to the member. Photocopies are available at a charge of $2.00 each. Most paid drafts can be viewed on your own personal computer via our on-line account access (Virtual Branch). A monthly statement itemizes each draft by draft number, amount and date cleared. Statements are also available via personal computer and HFS.

To qualify for this account, you must apply for and be approved for membership in this Credit Union and maintain a minimum balance of $30.00 in your Primary Share Savings Account during the entire term of membership. You must also be at least 18 years of age, otherwise, a parent must be a joint owner and ultimately responsible for the account.

This account type can be accessed for cash withdrawals at Automated Teller Machines and for purchases at participating merchants with a Visa Debit Card.

Only one draft account is permitted per member.

We cannot open or maintain “business” type draft accounts.

Additional Share Draft Account Disclosures:

Rate Information:

The dividend rate and the annual percentage yield may change every dividend period, as determined by the Credit Union Board of Directors. Rates can be viewed by clicking here: Current Share Rates.

Nature of Dividends:

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

Dividend Compounding and Crediting:

Dividends will be compounded every calendar quarter. Dividends will be paid to your account on the last day of every calendar quarter. If you close your Share Draft Account before dividends are credited, you will not receive accrued dividends.

Minimum Balance Requirement:

A minimum balance of $30.00 applies to the Primary Share Savings account only. There is no minimum balance requirement for a share draft account.

Balance Computation Method:

Dividends are calculated by the average daily balance method which applies a periodic rate to the average daily balance in the account for the period. The average daily balance is calculated by adding the balance in the account for each day of the period and dividing that figure by the number of days in the period.

Accrual of Dividends:

Dividends will begin to accrue no later than the business day we receive provisional credit for the placement of noncash items (e.g. checks) to your account.

Fees and Charges:

There are no automatic fees or charges to maintain a Share Draft Account. However, the Credit Union does have the right of setoff (see Bylaw Requirements). Also, you can authorize the Credit Union to withdraw funds from your Share Draft Account and to fund ATM, ACH and share draft withdrawals and to pay fees or charges for other Credit Union services. For the Share Draft Account, the following fees and charges may be assessed against your account. Fees are subject to change without notice.

Wire transfers:

Should you wish to transfer funds by wire to/from this Credit Union to/from another financial institution the fee is $20.00. International wire transfers are $50 each.

Returned items:

We charge $10 per item if a check deposited into your account is returned for any reason.

Overdraft Transfer:

On Share Draft accounts, sufficient funds will be automatically transferred from your Primary Share account to the Share Draft account to cover the total amount of share drafts or ACH or Visa Check Card items clearing each day, plus $3 for the transfer fee.

Stop Payment:

A request to stop payment on a share draft that has not cleared can be requested as long as the member agrees to pay the $30.00 fee per each share draft.

Par Value:

The par value of a regular share in the credit union is $5.00.

Statement of Activity:

You will receive a monthly statement, as of the last day of the month, showing the Primary Share Account as well as ALL accounts you have with the Credit Union. All transactions for the month will be shown on this statement. Statements can also be viewed via HFS and the Internet.

Transaction Limitations:

No transaction limitations apply to the Share Draft account. However, because the Primary Share savings account represents membership in the Credit Union, withdrawal of all funds will necessitate termination of membership and all its services.

Bylaw Requirements:

If your Primary Share Savings balance falls below the par value of six shares ($30.00), you cease to be a member in good standing. Your Primary Share Savings account will be subject to closure at the end of the dividend period, thereby terminating your membership completely. The Credit Union, at its discretion, may transfer funds at any time, from the Share Draft Account or Club Savings Account or other account to maintain the minimum $30.00 Primary Share Savings Account balance. Membership termination requires closure of all accounts.

Notice of Intent to Withdraw Funds

The board of directors may require you, at any time, to give not more than sixty days' notice in writing, of your intention to withdraw the whole or any part of the amount paid in by you on account of shares.

Right of Setoff:

The credit union has a lien or right of setoff on any shares and special accounts, and upon the dividends payable thereon, for and to the extent of any loans made to you, or any dues, fees, fines or other obligations payable by you. Should you withdraw all shares from the credit union, you are not relieved of any remaining liability that you may have to the credit union.

Electronic Transfer Limitation:

Telephone transfers from your Share Draft Account into another account with us are not limited. Any “pre-authorized” transfers will be paid by the Credit Union from your account for your benefit. It is your obligation and responsibility to take all precautions and care to prevent unauthorized activity to your share draft account.

Non-sufficient (NSF) Funds:

Insufficient funds in the Share Draft account and/or the Primary Share account are not available to pay draft(s), ACH or Visa Check Card items, those unpaid items will be considered NSF (non-sufficient funds) and will be returned unpaid. A charge of $30 per each item will be assessed even though the Share Draft account may be forced into a negative balance. Excessive NSF activity will be cause for closure of the Share Draft account.

Error Resolution:

Unauthorized account activity must be brought to our attention within 14 days of receiving your statement. If the credit union makes an error, you must notify us within 60 days of receiving your statement. Any other problems must be brought to our attention within 60 days of receiving your statement or you lose your right to assert the problem against us. The “statement” is the statement during which the problem first occured.

Additional Share Draft Accounts:

Only one share draft account is permitted per member.

Printed Share Drafts:

The Credit Union will provide at no costs a “standard design” supply of share drafts. Custom design drafts are available for a charge through the Credit Union and Liberty Direct Check Printers. The member may order drafts through another check supplier, but the member will be totally responsible for the printing accuracy and delivery of those drafts.

Please note that the above rules of class are subject to change without notice. Fees and charges are also subject to change without notice. Please check with the Credit Union for the latest information.