Common use of TERM SHARE and CERTIFICATE ACCOUNTS Clause in Contracts

TERM SHARE and CERTIFICATE ACCOUNTS. The following applies to Certificate Accounts: Maturity. Your account will mature according to the term indicated on your certificate account disclosure, and as indicated on your statement. Early Withdrawal; Penalties. We will impose a penalty if you withdraw any of the funds in your account before the maturity day. The amount of the penalty is disclosed on the Certificate Account Disclosures. The penalty is calculated as a forfeiture of part of the dividends that have been or would have been earned on the account, and applies whether or not the dividends have been earned. The penalty may be deducted from the principal amount of the deposit. The Annual Percentage Yield disclosed for your account is based on an assumption that dividends will remain in the account until maturity; a withdrawal will reduce earnings. Early withdrawal penalties are permitted for IRA accounts or other accounts as allowed by applicable law allows. Renewal Policies. Your certificate account will automatically renew at maturity as indicated on the Certificate Account Disclosures unless you have provided other instructions. If it automatically renews you will have a grace period, also indicated on the Certificate Account Disclosures, in which you may withdraw or transfer the funds without incurring an Early Withdrawal Penalty.