MEMBERSHIP AGREEMENT AND DISCLOSURES

Dear Credit Union Member:

The Lisbon Credit Union is unique in the financial world. It is a co-op, owned by you and your fellow Members and operated in your common interest. The Lisbon Credit Union is non-profit and exists only to serve you, not to make money. As a Credit Union Member, you own, operate, and control your Credit Union through your Board of Directors, which is composed of your fellow Members and manages the Credit Union based on the needs and wishes of the Members. The Board of Directors sets dividend rates, loan interest rates, and fees, among other things, and also determines Credit Union policy such as that set forth in this Agreement. In addition, your Credit Union works cooperatively with Maine’s other Credit Unions and the Maine Credit Union League, pooling resources for research and development of cost effective services which benefit not only you and your fellow Members, but all Credit Union Members in Maine.

IDENTITY VERIFICATION NOTICE
Federal law requires financial institutions to obtain sufficient information to verify the identity of all signatories to an account. You may be asked several questions and to provide one or more forms of identification to fullfill this requirement. In some instances we may use outside sources to confirm the information. All verification procedures will be in compliance with our privacy policy that protects the information you provide.

GENERAL TERMS
This agreement contains the terms and conditions governing your Membership in and accounts offered by the Credit Union. Please read this agreement carefully. By signing your Membership card and/or account agreement(s), you accept and agree to be bound by the provisions as set forth in them, this Agreement, the rate and fee disclosures applicable to your account(s) with the Credit Union, the Credit Union’s charter and by-laws, and any amendments or changes in terms to any of them, and all of them are incorporated into and made a part of this Agreement of reference. You will receive notice of any changes in terms in accordance with all applicable state and federal laws and regulations. The terms and conditions as set forth in this Agreement are applicable to all types
of accounts offered by your Credit Union. There may be different or more specific terms and conditions which apply to certain accounts. Those different or specific terms are contained in the Membership card, share certificate, share draft agreement, or other documents evidencing the account. To the extent that there are different terms or terms which are not included in this Agreement or those documents, such terms supersede this Agreement.

ACCOUNT OWNERSHIP
You can structure the ownership of your account(s) at the Credit Union in a variety of ways. Rights and obligations relating to the account will depend on the type of ownership of the account.
1. Sole Accounts
If you are the sole owner of an account, only you can make deposits or withdrawals or otherwise have access to the funds in the account. Upon death, the funds in the account are distributed in accordance with the terms of your will or, if you do not leave a will, the intestacy laws of the state of your residency.
2. Joint Accounts
Any joint owner has an equal right of access to the funds in a joint account and can withdraw all of the funds in the account at any time without permission from or notification to the other joint owner(s). At the death of one joint owner, the funds automatically belong to the surviving joint owner(s). Joint owners do not have to be Credit Union Members.
3. Payable on Death Accounts
Payable on death accounts belong to the person(s) listed as the owner or owners of the account during their lives. On death, the funds automatically belong to the person or persons designated as payable on death beneficiaries.
4. Trust Accounts
Depending on Membership eligibility, you may hold an account as Trustee for the benefit of another person or persons, or another person or persons may hold an account as Trustee for your benefit. In order to establish a Trust account, Membership eligibility requirements must be met in accordance with the Credit Union’s charter or bylaws.
5. Organizational Accounts
The funds in an organizational account are owned by a corporation, trust (including a living trust), partnership, social club, sports team, etc. In order for the organization to be a Credit Union Member, eligibility requirements must be met in accordance with the Credit Union’s charter or bylaws. If the organization does not qualify for Membership, it can be a joint owner of the account with an individual Member.

LIEN ON SHARES
A lien will be impressed on all your Credit Union shares and share dividends in an amount equal to that which you may owe your Credit Union because of a loan, non-sufficient funds fees, or any other fees or charges payable by you to the Credit Union. The lien may be enforced and your funds withdrawn and applied to your debt, without further notice to you except where required by law, if you default in paying the amount you owe.

ACCOUNT CLOSING
Your regular Credit Union share account cannot be closed until all amounts you owe the Credit Union are paid in full and all other accounts that you have with the Credit Union are closed.

SHARE INSURANCE
Funds in your account at your Credit Union are insured up to $100,000 by the National Credit Union Administration (NCUA), an agency of the United States Government. If you would like more information about your share insurance, please contact a Member Service Representative.

GOVERNING LAW
The rights, duties, obligations, and liabilities of you and the Credit Union in connection with your Membership and account(s) are and shall be controlled by Maine and/or federal law as applicable and in effect at the time the rights, duties, obligations, and liabilities arise, other than as specifically set forth in this Agreement, the Credit Union charter and bylaws, or your specific account documentation.

COMPLAINT RESOLUTION PROCEDURE
If you have a dispute with the Credit Union regarding your account(s), you may contact the Credit Union’s Member Service Representatives and attempt to resolve the problem directly with the Credit Union. If the Credit Union fails to resolve the problem, write a letter detailing the problem
and the resolution you are seeking to:
Consumer Outreach Program
Bureau of Financial Institutions
State House Station 101
Augusta ME 04333

To file a complaint electronically, you may contact the Bureau of Financial Institutions at the following Internet address: http://www.state.me.us/pfr/bkg/bkg_consumer.htm

The Bureau of Banking will acknowledge receipt of your complaint promptly and investigate your claim or refer it to the appropriate federal supervisory agency and inform you to whom it has been referred. You will be informed of the results of any Bureau of Financial Institutions investigation.

REGULATION J – FUNDS TRANSFER
You may desire to initiate a funds transfer using the Lisbon Credit Union, and the Credit Union may receive funds transfers for credit to an account of yours at the Lisbon Credit Union, or for further transfer on your behalf. Transfers sent or received by you or on your behalf may go through Fedline. Regulation J governs Fedline. In addition to the specific provisions of Regulation J, this part of the Agreement is applicable to all such funds transfers.

1. Security Procedures
Your instructions specifying the terms and conditions of funds transfers shall be verified according to the Credit Union’s security procedures. In the event that you decline to accept the security procedure recommended by the Credit Union, you agree that any security procedure you select is commercially reasonable. You further agree that you shall be bound by any instruction, whether or not authorized, which is issued in your name and accepted by the Credit Union in compliance
with the security procedure.

2. Inconsistencies in Orders
You acknowledge and agree that the Credit Union and the beneficiary’s (funds transfer recipient) financial institution in the funds transfer may rely on the number in a payment order that identifies the beneficiary, a person different from the person identified by name in the payment order, if the beneficiary’s financial institution does not know of the inconsistency. You also acknowledge that the Credit Union may rely on a number in the payment order which identifies an intermediary
financial institution or beneficiary’s financial institution, even if it identifies a financial institution different from the financial institution identified by name in the payment order, if the Credit Union does not know of the inconsistency. The Credit Union has no duty to detect any such inconsistencies.

3. Notice
For each funds transfer you receive at the Credit Union, you will receive notice of the transfer by having the amount received posted to your records or by some mutually agreeable means. The Credit Union is not required to give you a notice of receipt and will not do so. The Credit Union will, however, notify you of the receipt of payments in any periodic statements that the Credit Union provides to you.

4. Provisional Credit
Credit given by the Credit Union to you with respect to a funds transfer is provisional until the Credit Union receives final settlement for the transfer through a Federal Reserve Bank. If the Credit Union does not receive such final settlement, you acknowledge and agree that the Credit Union is entitled to a refund amount credited to you or your account(s) in connection with the transfer. In the event
that the Credit Union does not receive final settlement, you agree that the Credit Union may reverse the entry on its records and adjust your account(s) accordingly. The party making payment to you via such transfer shall not be deemed to have paid you the amount of credit.

5. Interest/and/or Dividends
If the Credit Union is obligated to pay interest or dividends with respect to any funds transfer, the amount payable shall be limited to the dividend rate on the account to which a funds transfer is deposited or from which the transfer should have occurred.

6. Instructions
The Credit Union is not obligated to accept any instruction(s) from you relating to any funds transfer. If the Credit Union rejects a payment order you issue, you will be notified of the rejection in writing. The notice will be sent via the U.S. Post Office, postage prepaid, to you at your address as listed in the Credit Union’s records.

REGULATION CC: FUNDS AVAILABILITY DISCLOSURES
Important information on deposits, holds, and withdrawals
YOUR ABILITY TO WITHDRAW FUNDS AT THE CREDIT UNION

Our policy is to make funds from your deposits available to you on the same business day we receive your deposit. At that time, you can withdraw the funds in cash and we will use the funds to pay checks that you have written. If you make a deposit before 5:00PM Monday through Thursday or before 6:00 PM on Friday of a business day, we will consider that day to be the date of your deposit. However, if you make a deposit after the hours stated or on a day we are closed for business or in night depository, the deposit will be credited to your account on the next business
day we are open.

Reservation of Right to Hold
In some cases, we will not make all of the funds that you deposit by check available to you on the same business day of your deposit. Funds held on a local check will be available for withdrawal on the second business day following the business day on which funds are deposited. Funds held on an out-of-state or non-local check will be available for withdrawal on the fifth business day following the business day on which the funds are deposited. However, the first $100 of your deposit will
be available on the first business day after the day of your deposit. If we are not going to make all of the funds from your deposit available on the same business day, we will notify you at the time you make your deposit. We will also tell you when the funds will be available. If your deposit is not made directly to one of our employees, or if we decide to take this action after you have left the premises, we will mail you the notice by the business day after we receive your deposit. For
determining the availability of your deposits, every day is a business day, except Saturdays, Sundays and Federal Holidays.

Longer Delays May Apply
We may delay your ability to withdraw funds deposited by check into your account an additional number of days for these reasons:
• You deposit checks totaling more than $5,000 on any one day
• You deposit a check that has been returned unpaid
• You have overdrawn your account repeatedly in the last six months
• We believe a check you deposit will not be paid
• There is an emergency, such as a failure of communications or computer equipment

We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available no later than the fourth business day after the day your deposit would otherwise be available for withdrawal.

Holds On Other Funds
If we cash a check drawn on another financial institution, we may withhold the availability of a corresponding amount of funds that are already in your account. These funds will be available at the time funds from the check we cashed would have been available if you had deposited it. If we accept for deposit a check that is drawn on another financial institution, we may make funds from the deposit available for withdrawal immediately but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us.
The funds in the other account would then not be available for withdrawal until the time periods that are described elsewhere in this disclosure for the type of check that you deposited.

Deposits at Automated Teller Machines
Funds from any deposits (cash or checks) made at automated teller machines (ATMs) we do not own or operate will not be available until the second business day after the day of your deposit. This also applies to deposits made to your share draft account at the In-Store Banking terminals located at the service desk in major supermarkets throughout Maine.

Dividend Payment Policy
Dividends are paid monthly on the average daily balance (excluding checking accounts) and are available on the first day of the following month.

ELECTRONIC FUNDS TRANSFER EFT
DISCLOSURE & CARDHOLDER AGREEMENT

This disclosure, required by law, is designed to give you information concerning your transfers (EFTs). Types of transactions available:
• deposit of employer payroll deduction
• deposit of government payments
• pre-authorized debits (withdrawals)
Limitations:
There are no limitations on the frequency and dollar amounts of EFTs

Charges for EFTs
There are no charges for EFTs or the right to make EFTs. However, a fee will be assessed for each EFT returned to the originator due to insufficient funds, account closure, etc. (contact the Credit Union for current fee schedule). If you use an ATM or other electronic terminal that we do not own, you may be charged a fee by the terminal owner and any national, regional or local network used in processing the transaction. Any such fee(s) will be debited from your account if you elect to complete the transaction.

Personal Identification Number
(P.I.N.) is your “remote banking signature.” You are responsible for maintaining its confidentiality. The P.I.N. should be memorized and not written, in order to prevent unauthorized use, and so you may report its loss or theft accurately.

Authorized Use:
Only you are qualified to direct the deposit or withdrawal of funds to or from your account(s) whether with the use of the “CU24” card and/or your P.I.N. at merchant or bank locations or remote facilities or otherwise. Positive identification may be requested by the merchant or bank prior to any transaction. You agree that you will not use or allow anyone else to use your card or P.I.N. for any transaction that is illegal under applicable federal, state, or local law.

Consumer Liability for Unauthorized Electronic Funds Transfers Made In Connection
With CU24 VISA® Check Card
This Section Applies To Unauthorized Electronic Funds Transfers Made In Connection With A CU24 VISA® Check Card. Tell us AT ONCE if you believe your card P.I.N. or other information which could
provide electronic access to your account has been LOST or STOLEN, or if you believe someone has used your card or P.I.N. or accessed your account without your permission. Telephoning is the best way of keeping your possible losses down. If a VISA® or Interlink transfer was made using your card or card number without your permission and was not caused by your gross negligence or fraud, you will have no liability for the unauthorized transfer. For all other transfers, including transfers made using ATMs, you can lose no more than $50.00 if you tell us within two (2) business days that your card or P.I.N. was used to make a transfer without your permission.

If you do NOT tell us within (2) business days, and we can prove that we could have stopped someone from making a transfer without your permission if you had told us, you could lose as much as $500.00. If your statement shows transfers you did not make or authorize, tell us at once. If
you DO NOT tell us within 60 days after the statement was mailed to you, you may not get back any money you lost if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason such as a long trip or a hospital stay kept you from telling us, we will extend the time period.

Consumer Liability for All Other Unauthorized Electronic Funds Transfers

Tell us AT ONCE if you believe your card P.I.N. or other information which could provide
electronic access to your account has been LOST or STOLEN. Telephoning is the best way of keeping your possible losses down. If you tell us within two business days, you can lose no more than $50.00 if someone uses your card or P.I.N. or other information without your permission.

If you DO NOT tell us within two business days after you learn of the loss or theft of your card or P.I.N., or other information and we can prove that we could have stopped someone from using your card or P.I.N. or other information without your permission if you had told us, you could lose as much as $500.00.

If your statement shows transfers you did not make or authorize, tell us at once. If you DO NOT tell us within 60 days after the statement was mailed to you, you may not get back any money you lost if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason such as a long trip or a hospital stay kept you from telling us, we will extend the time period.

Notification Procedure:
If you believe that your card, P.I.N. or other information which could provide electronic access to your account has been LOST or STOLEN, or that someone has transferred or may transfer money from your account without permission, call us at the number shown at the beginning of this Agreement, or write us at the address given at the beginning of this Agreement.

Electronic Check Transfers:
Merchants and other payees may be authorized to electronically debit your share draft or checking account using information you provide on or with a share draft or check. These debits are electronic funds transfers subject to this agreement.

Business Days
The business days of the Credit Union are:
Monday – Thursday: 9:00 a.m. to 5:00 p.m.
Friday : 9:00 a.m. to 6:00 p.m.
Saturday: 9:00 a.m. to Noon

EFTs, in most cases, will be posted to your account by the open of the normal business day (9:00 a.m.). EFTs are not posted on Saturdays.

The following holidays are not business days:
New Year’s Day
Martin Luther King, Jr. Day
Presidents’ Day
Memorial Day
Independence Day
Labor Day
Columbus Day
Veterans’ Day
Thanksgiving Day
Christmas Day

Summary of Your Rights to Receive Documentation of EFTs:
Periodic Statement: You will receive a monthly account statement on share draft accounts. On passbook or statement accounts, you will receive a quarterly statement.

Notice of Credits:
If you have arranged to have EFT deposits made to your account, you can call us at (207) 353-4144 or toll-free at (877) 353-4144 to find out whether or not the deposit has been made.

Summary of Your Rights to Stop Payment:
If you have told us in advance to make regular payments out of your account, we must be notified in writing three (3) business days or more before the payment is scheduled to be made. Note: This does not apply to authorization given to any other entity outside the Credit Union.

Liability
Here is a summary of our liability to you for failure to make or stop certain transfers: If we do not complete a transfer to or from your account on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages. However, there are exceptions. We will not be liable, for instance:
• if, through no fault of ours, you do not have enough money in your account to make those transfers
• if circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions we have taken
• there may be other exceptions stated in our agreement with you

Conditions Under Which We Will Disclose Information To A Third Party
Here are the circumstances under which we will disclose information to third parties about your account or the transfers you make:
• when necessary for completing transfers
• in order to verify the existence and condition of your account for a third party, such as a credit bureau or a merchant
• in order to comply with government agency court orders

Error Resolution
In case of errors or questions about your EFTs, telephone us at (207) 353-4144 or toll-free at (877) 353-4144 or write us at 325 Lisbon Street, PO Box 878, Lisbon ME 04250, as soon as you can, if you think your statement or passbook is wrong, or if you need more information about a transfer listed on the statement or passbook. We must hear from you no later than 60 days after we sent the first statement on which the problem or error appeared.
1. Tell us your name and account number
2. Describe the error or transfer you are unsure about, and explain as clearly as you
can why you believe it is an error or why you need more information
3. Tell us the dollar amount of the suspected error

If you tell us orally, we may require that you send us your complaint or question in writing within 10 business days.

We will tell you the results of our investigation within 10 business days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days to investigate your complaint or question. If we decide to do this, we will re-credit your account within 10 business days for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or
question in writing and we do not receive it within 10 business days, we may not recredit your account.

If we decide that there was no error, we will send you a written explanation within 3 business days after we finish our investigation. You may ask for copies of the documents that we used in our investigation.

Rev. 2/03

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