Common use of Early Withdrawal Penalties Clause in Contracts

Early Withdrawal Penalties. The Certificate Account will mature on the Maturity Date set forth in the Certificate Receipt. The Credit Union will terminate the Certificate Account and impose a penalty on the entire balance of the account if a withdrawal of principal is made prior to the Maturity Date. If the Certificate has a term to maturity equal to or less than one (1) year, the penalty we may impose will equal three (3) months of dividends, whether or not earned. If the Certificate has a term to maturity greater than one (1) year through two (2) years, the penalty we may impose will equal six (6) months of dividends, whether or not earned. If the Certificate has a term to maturity greater than two (2) years through three (3) years, the penalty we may impose will equal nine (9) months of dividends, whether or not earned. If the Certificate has a term to maturity greater than three (3) years, the penalty we may impose will equal twelve (12) months of dividends, whether or not earned. In accordance with Federal Reserve Board Regulations, the Credit Union may charge an early withdrawal penalty of seven (7) days dividends on amounts withdrawn within the first six (6) days after deposit or automatic renewal. There arecertaincircumstances, suchasthe death or incompetence of an owner, where we may waive or reduce this penalty. See your plan disclosure if the applicable account is part of an IRAor other tax qualified plan. The annual percentage yield is based on an assumption that dividends will remain in the account until maturity. A withdrawal will reduce earnings.

Early Withdrawal Penalties. A. Under certain circumstances early withdrawals may be prohibited up to seven days from date of issue. B. The Share Certificate Account will mature on the Maturity Date set forth in the Certificate Receiptestablished at account opening. The Credit Union will terminate the Certificate Account and impose a penalty on the entire balance of the account if If a withdrawal of principal is made prior to the Maturity Date, we may impose a penalty on the amount withdrawn that is subject to penalty. Penalties may reduce the principal balance. C. We may charge, in accordance with Federal Reserve Board Regulation D, an early withdrawal penalty of seven days simple dividends on amounts withdrawn within the first six days after account opening or within six days following the last partial withdrawal. D. If the Share Certificate Account has a term to maturity equal to or less than one (1) year, the penalty we may impose imposed will be the required Federal Reserve Board Regulation D penalty, whether or not earned, E. If the Share Certificate Account has a term to maturity of between one year and two years, the penalty imposed will equal three (3) months 180 days of simple dividends, whether or not earned. . F. If the Share Certificate has a term to maturity greater than one (1) year through two (2) years, the penalty we may impose will equal six (6) months of dividends, whether or not earned. If the Certificate Account has a term to maturity greater than two (2) years through three (3) years, the penalty will equal 270 days simple dividends, whether or not earned. G. If the certificate has an original maturity of more than one year, the penalty we may impose will equal nine is the lesser of all dividends since the date of issuance (9) months of dividends, whether or not earned. If the Certificate has a term to maturity greater than three (3) years, the penalty we may impose will equal twelve (12) months of dividends, whether or not earned. In accordance with Federal Reserve Board Regulations, the Credit Union may charge an early withdrawal penalty of seven (7) days dividends on amounts the amount withdrawn within if earned dividends are less than seven days), or 270 days dividends on the first six (6) days after deposit or automatic renewal. amount withdrawn. H. There arecertaincircumstances, suchasthe death or incompetence of an owner, are certain circumstances where we may waive or reduce this penalty. See your plan disclosure if , such as death or incompetence of an owner, withdrawal after the applicable close of the dividend period in which the owner’s credit union membership was terminated under Article II, Section 5 of the bylaws and withdrawal as a result of liquidation of the credit union. I. If the account is part an IRA, at this Credit Union’s option, penalties may also be waived for those who have attained the age of an IRAor other tax qualified plan. The annual percentage yield is based on an assumption that dividends 59½ (please see your IRA plan disclosure). X. Inherited IRA accounts will remain in the account until maturity. A not be charged a withdrawal will reduce earningspenalty.