Truth-In-Savings Act Disclosure
Except as specifically described, the following disclosures apply to all Share Certificate and IRA Share Certificate Accounts.
1. Rate Information. The Dividend Rate and Annual Percentage Yield on your accounts as of the last Dividend Declaration Date, will be notated in your Truth-In-Savings Disclosure at the time you open your Certificate. The Annual Percentage Yield is a percentage rate that reflects the total amount of dividends to be paid on an account based on the dividend rate and frequency of compounding for the term of the account. The Annual Percentage Yield is based on an assumption the dividends will remain on deposit until maturity. A withdrawal will reduce earnings.
2. Nature of Dividends. Dividends are paid from current income and available earnings after required transfers to reserves at the end of a dividend period.
3. Compounding and Crediting. Dividends will be compounded and credited monthly. The Dividend Period begins on the first calendar day of each month and ends on the last calendar day of each month.
4. Withdrawal of Dividends. Credited dividends to a Share Certificate may be withdrawn from or transferred to another account without penalty. Monthly dividend checks are available and can be mailed for a $4.00 per check, processing fee. Credited dividends to an IRA Certificate may be withdrawn without credit union penalty but may be subjected to IRS penalties and/or taxes.
5. Balance Information. The minimum balance required to open Share & IRA Certificates is $1,000 per account. Monty Moose and Take Charge Share Certificates require an open balance of $500 per account. Dividends are calculated by the Daily Balance method which applies a daily periodic rate to the principal in the account each day.
6. Accrual of Dividends. Dividends will begin to accrue on cash deposits and noncash deposits (e.g. checks) on the business day you make the deposit to your account.
7. Transaction Limitations. After your account is opened, you may not add funds to your account, but may make withdrawals of dividends from your account in any amount as indicated above.
8. Maturity. Your account will mature within the term set forth at the time your certificate is opened and also on your Share Certificate or Maturity Notice. The Credit Union will give the owner(s) at least ten days' notice prior to maturity.
9. For fixed rate accounts, the rate and yield will remain in effect for the entire term of the account.
Early Withdrawal Penalty. We may impose a substantial penalty if you withdraw any of the principal before the maturity date or the renewal date, if this is a renewable account.
Penalty Amounts. Share Certificate and IRA Certificates closed prior to the maturity date will be subjected to a penalty in the amount equal to the following dividends, whether earned or not:
6-month term - penalty is equal to 90 days' dividend
1 year term - penalty is equal to 90 days' dividend
15-month term - penalty is equal to 90 days' dividend
2 year term - penalty is equal to 180 days' dividend
3 year term - penalty is equal to 270 days' dividend
4 year term - penalty is equal to 360 days' dividend
5 year term - penalty is equal to 450 days' dividend
How the Penalty Works. The penalty is calculated as a forfeiture of part of the dividends that have been or would have been earned on the account. This applies whether or not the dividends have been earned. In other words, if the account has not earned enough dividends, or if the dividend has already been paid, the penalty will be deducted from the principal.
Exceptions to Early Withdrawal Penalties. At our option, we may pay the amount before maturity without imposing an early withdrawal penalty under the following circumstances:
(i) When an account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction.
(ii) Where the account is an Individual Retirement Account (IRA) and any portion is paid within seven (7) days after establishment; or where the account is a Keogh Plan (Keogh), provided the depositor forfeits an amount at least equal to the simple dividends earned on the amount withdrawn; or where the account is an IRA or Keogh and the owner is deceased or becomes disabled.
Renewal Policy. Your account is automatically renewed for the same term unless other instructions are given prior to the maturity date. Once a Share or IRA Certificate renews, there is a 10 business day window to make changes, withdrawals or closures without penalty.
Nontransferable/Nonnegotiable. Your account is nontransferable and nonnegotiable. The funds in your account may not be pledged to secure an obligation of an owner, except any obligations with the Credit Union. The rates and yields appearing in the Rate Schedule will be provided to the Member by the Member Service Representative, when the account is opened. If you have any questions or require current rate information on your accounts, please call Midcoast Federal Credit Union toll free at 1-877-964-3262.
Complaint Resolution Procedure
If you have a dispute with Midcoast Federal Credit Union regarding your account(s), you may contact us to resolve the problem directly. If we fail to resolve the issue, you may communicate the problem and the resolution you are seeking to:
Maine Bureau of Financial Institutions
Consumer Outreach Program
36 State House Station
Augusta, ME 04333-0036
To file a complaint electronically, you may contact the Maine Bureau of Financial Institutions at the following Internet address:
http://www.maine.gov/pfr/financialinstitutions/complaint.htm
The Maine Bureau of Financial Institutions will acknowledge receipt of your complaint promptly and investigate your claim. You will be informed of the results of the investigation. When your complaint involves a federally-chartered credit union, the Maine Bureau of Financial Institutions will refer it to the appropriate federal supervisory agency and inform you to whom it has been referred.