member service representative

General Responsibilities and Requirements

Member Service Representative

04/29/2021

General Responsibilities and Requirements – Member Services

Education First Federal Credit Union

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Table of Contents Section 1: General Member Service Requirements ......................................... 9

Member Services Responsibilities .................................................................. 9 Profile ..................................................................................................... 9 Favorable Service Techniques .................................................................... 9 Initial Contact/Greeting the member ......................................................... 10 Cut Off All Other Work Interruptions ......................................................... 10 Interview ............................................................................................... 10

Products and Services ................................................................................ 11 Fee Schedule ............................................................................................ 12

Account Fees.......................................................................................... 12 Other Service Fees.................................................................................. 12 Safe Deposit Box Fees ............................................................................. 13 Bill Pay Fees .......................................................................................... 13

Section 2: Regulations .............................................................................. 14

Office of Foreign Assets Control Policy .......................................................... 14 Member Service Representatives .............................................................. 14 What to do with the Verafin information provided ....................................... 14

Securities Transfer Agents Medallion Program – (STAMP) ............................... 16 Purpose ................................................................................................. 16 Procedures............................................................................................. 16 Authorized Signers .................................................................................. 16

Customer Identification Policy (CIP) ............................................................. 18 CIP Procedures ....................................................................................... 19 Coverage ............................................................................................... 19

Collection of Information from Individuals .................................................... 20 Information Required .............................................................................. 20 Verification of the Identity of Individuals ................................................... 20 Person Not Present (New and Existing Member) ......................................... 21 Record Retention .................................................................................... 22

Checking Government Lists ........................................................................ 23 Verifying Member’s Identity by Phone .......................................................... 24

Guidelines.............................................................................................. 24 Membership Eligibility Verification ................................................................ 25

Underserved Area ................................................................................... 25 Sponsorship ........................................................................................... 25 Joint Spouses ......................................................................................... 25 Ineligible Membership ............................................................................. 25

Harland eFunds/ChexSystems ..................................................................... 26 IF HARLAND EFUNDS IS DOWN, CALL CHEXSYSTEMS (1-800-328-5120), OUR

MERCHANT CODE IS #20023105. ................................................................ 26

Membership Guidelines ................................................................................. 30

Forms of Ownership/Definitions ................................................................... 30 Minor Accounts/Parent Opening Account for Children ..................................... 30 Opening a New Membership ........................................................................ 31

Forms Required ...................................................................................... 31 Terminal Transactions ............................................................................. 31 Accounts Opened or Changed-Person Not Present ....................................... 32



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Completion of Signature Cards .................................................................... 33 Forms Required ...................................................................................... 33 Procedure .............................................................................................. 33

Audit/Maintenance of Signature Cards .......................................................... 34 Guidelines.............................................................................................. 34 Forms Required ...................................................................................... 34 Audit Procedure ...................................................................................... 34

Account Changes/Change of Ownership ........................................................ 36 Guidelines.............................................................................................. 36 Name Change ........................................................................................ 36 Addition of Joint Owner ........................................................................... 36 Deletion of Joint Owner ........................................................................... 36 Payable on Death Change ........................................................................ 36

Decedents Accounts ................................................................................... 37 Forms Required ...................................................................................... 37

Decedent's - Loans and Visa ....................................................................... 39 Forms Required ...................................................................................... 39 Procedures............................................................................................. 39 Visa Accounts ......................................................................................... 39 VISA Department Responsibilities ............................................................. 40

Account Numbers\Types ............................................................................. 41 Member Account Number ......................................................................... 41 Accounts ............................................................................................... 41 Account Table ........................................................................................ 42

Social Security Representative Payee Accounts ............................................. 43 Forms Required ...................................................................................... 43 XP2 Procedures ...................................................................................... 43 Completing the Account Card ................................................................... 44

New Primary Savings Accounts.................................................................... 46 Scope.................................................................................................... 46 Joint Accounts ........................................................................................ 46 Dividends .............................................................................................. 46

Closing a Primary Savings Account .............................................................. 47 Guidelines.............................................................................................. 47 Procedure for Closing Membership ............................................................ 47

Re-Joining After Closure ............................................................................. 50 Closing an Account (Not Primary Savings) .................................................... 51

Guidelines.............................................................................................. 51 Procedure .............................................................................................. 51 Verify: ................................................................................................... 52

Christmas Club Accounts /Vacation Club ....................................................... 53 Guidelines.............................................................................................. 53 Term ..................................................................................................... 53 Dividend Rates ....................................................................................... 53 Penalties ............................................................................................... 53 Loans .................................................................................................... 53 Insurance .............................................................................................. 53 Account Numbers ................................................................................... 53 Forms Required ...................................................................................... 54 XP2 Transaction ..................................................................................... 54 Procedure to Open .................................................................................. 54



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Opening a New Certificate .......................................................................... 55 Guidelines.............................................................................................. 55 Transaction ............................................................................................ 55

CD Dividend Rate Match ............................................................................. 56 Guidelines.............................................................................................. 56

Bump Up Certificates ................................................................................. 57 Guidelines.............................................................................................. 57 Procedure to Increase Dividend Rate ......................................................... 57

Dividend Calculations ................................................................................. 58 How to Compute Dividends on Certificates ................................................. 58

Traditional Individual Retirement Plan (IRA) ................................................. 59 Overview/General Information ................................................................. 59 Contributions ......................................................................................... 59 Distributions .......................................................................................... 60

Roth Individual Retirement Plan (IRA) .......................................................... 61 Overview/General Information ................................................................. 61 Contributions ......................................................................................... 61 Distributions .......................................................................................... 62

Coverdell ESA (Education Savings Account) .................................................. 63 Overview ............................................................................................... 63 Contributions ......................................................................................... 63 Distributions .......................................................................................... 63

IRA Share Account..................................................................................... 64 Forms Required ...................................................................................... 64 XP2 Transaction ..................................................................................... 64 Procedures............................................................................................. 64

IRA Plan-To-Plan Transfers ......................................................................... 65 Guidelines.............................................................................................. 65 Custodian/Trustee to Custodian/Trustee .................................................... 65 Distribution and Redeposit (Rollover) ........................................................ 65 Forms Required ...................................................................................... 65

IRA Rollovers ............................................................................................ 67 Guidelines.............................................................................................. 67 Form ..................................................................................................... 67 Procedure .............................................................................................. 68 Rollover (In) .......................................................................................... 68 Rollover (Out) ........................................................................................ 68

New Checking Accounts.............................................................................. 69 Guidelines.............................................................................................. 69 Forms Required ...................................................................................... 69 Procedure .............................................................................................. 70

Debit Cards for Minors ............................................................................... 71 Guidelines.............................................................................................. 71

Segue Student Checking Account ................................................................ 72 Eligibility ............................................................................................... 72 Procedure .............................................................................................. 72

Money Market Accounts .............................................................................. 74 Guidelines.............................................................................................. 74 Forms Required ...................................................................................... 74 Procedure .............................................................................................. 75

Overdraft Protection .................................................................................. 76



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Guidelines.............................................................................................. 76 Courtesy Pay Policy ................................................................................... 77

New Account Procedures ......................................................................... 77 Courtesy Pay Limit Suspension ................................................................. 79 Ineligible or Member Declined Accounts ..................................................... 79 Re-Opening Closed Accounts .................................................................... 79 Opt-In Form ........................................................................................... 80 Opt-In Maintenance ................................................................................ 81

Overdrawn Accounts/Accounts Showing Abuse .............................................. 82 Guidelines.............................................................................................. 82

Accepting & Processing Check Orders ........................................................... 83 Guidelines.............................................................................................. 83 Operation Begins .................................................................................... 83 Procedures............................................................................................. 83 Member File Information ......................................................................... 84

Check Printing Errors ................................................................................. 85 Guidelines.............................................................................................. 85 Procedure .............................................................................................. 85

Check Order Billing Errors........................................................................... 86 Guidelines.............................................................................................. 86 Procedures............................................................................................. 86

Check Orders Lost In the Mail ..................................................................... 87 Guidelines.............................................................................................. 87

Shredding Checks ...................................................................................... 88 Guidelines.............................................................................................. 88 Log Required .......................................................................................... 88 Procedure .............................................................................................. 88

Temporary Checks ..................................................................................... 89 Guidelines.............................................................................................. 89 Procedure .............................................................................................. 89 Printing Temporary Checks ...................................................................... 89

Checking Account Statements ..................................................................... 92 Notification of Errors/Questions On Monthly Statements .............................. 92 Member Responsibilities .......................................................................... 92 Credit Union Responsibilities .................................................................... 92

Checking Account Dividends ....................................................................... 94 Formula for Calculating Dividend (Example) ............................................... 94

Verification of Check Funds ......................................................................... 95 Guidelines.............................................................................................. 95

Stop Payments & Unauthorized or Authorization Revoked ACH Debits ............. 96 Guidelines.............................................................................................. 96 Forms Required ...................................................................................... 96 XP2 Transaction for Checks ...................................................................... 96 XP2 Transaction for ACH .......................................................................... 96

Check Copy Requests ................................................................................. 99 Guidelines.............................................................................................. 99 Member Services Platform Transaction ...................................................... 99 Procedure .............................................................................................. 99 Procedures for share drafts cashed at the Credit Union. ............................. 100 Total eReceipts ..................................................................................... 100 Nautilus ............................................................................................... 100



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Check Encoding Errors ............................................................................. 101 Procedure ............................................................................................ 101

Check Paid Twice on Account .................................................................... 102 Procedure ............................................................................................ 102

ATM Disputes .......................................................................................... 103 Guidelines............................................................................................ 103 Forms Required .................................................................................... 103 Procedure if Machine Error ..................................................................... 103 Procedure if Fraud/Theft ........................................................................ 103

Power of Attorney (POA) .......................................................................... 104 Forms Required .................................................................................... 104 Policies ................................................................................................ 104 Procedures........................................................................................... 105

Forgery of Maker's Signature (Drafts) ........................................................ 106 Guidelines............................................................................................ 106 Forms Required .................................................................................... 106 Procedure ............................................................................................ 106 Proceed as follows: ............................................................................... 107

Forgery of Endorsement (Draft) ................................................................ 108 Guidelines............................................................................................ 108 Forms Required .................................................................................... 108 Procedures........................................................................................... 108

VISA Card Disputes ................................................................................. 110 Guidelines............................................................................................ 110 Forms Required: ................................................................................... 110 Fraud: ................................................................................................. 111

VISA Check Card – Debit .......................................................................... 111 Forms Required: ................................................................................... 111

VISA - Out of Town Notices ...................................................................... 112 Procedures: ......................................................................................... 112

WireXchange .......................................................................................... 113 Guidelines............................................................................................ 113 Information Gathered ............................................................................ 113 Entering a Wire .................................................................................... 113 Verifying a Wire .................................................................................... 116 Release an Outgoing Wire ...................................................................... 117

Western Union Wires ............................................................................... 118 Western Union & Wire Xchange Stopped .................................................... 119

Forms Required .................................................................................... 119 Procedure ............................................................................................ 119

Direct Deposit Authorizations/Miscellaneous................................................ 120 Guidelines............................................................................................ 120 Forms ................................................................................................. 120 Procedure ............................................................................................ 120

Payroll Allocations ................................................................................... 121 Guidelines............................................................................................ 121 Forms Required .................................................................................... 121 XP2 Transaction ................................................................................... 121 Procedure ............................................................................................ 122

Automatic Transfers ................................................................................. 123 Guidelines............................................................................................ 123



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Forms Required .................................................................................... 123 Operation Begins .................................................................................. 123

Safe Deposit Boxes .................................................................................. 124 TTT - Cross Member Transfer Enrollment .................................................... 125

Forms Required .................................................................................... 125 XP2 Transaction ................................................................................... 125 Procedure ............................................................................................ 125

Request for Payoff on Loan ....................................................................... 126 Forms Required .................................................................................... 126 Procedure ............................................................................................ 126

Skip-a-Payment/Extension ....................................................................... 127 Forms Required .................................................................................... 128 Procedure ............................................................................................ 128

How to Re-Amortize a Loan ...................................................................... 129 Sending Documents with EchoSign (Adobe Sign) ......................................... 130

Procedure ............................................................................................ 130



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Section 1: General Member Service Requirements

Member Services Responsibilities

The Member Services Department provides and processes a wide range of services for

members and provides support to the branch system. These include:

− Maintain the integrity of all members’ records in a confidential manner.

− Open new accounts for Savings, Checking, IRAs, Money Market, and

Certificates.

− Cross-sell additional services to provide the member with a complete package

to meet their financial needs.

− Order checks.

− Review and research member problems and adjust accounts as required.

− Process stop-payment orders.

− Retrieve copies of paid checks and statements at member's request.

− Process wire transfer request.

− Issue debit cards.

− Help with Online Banking.

Profile

The following list provides a profile of services offered to members by the Member

Services Department:

− Orient members to the credit union as their full-service financial institution

and inform them of the multiple benefits of doing business with the credit

union.

− Open all types of new accounts.

− Inform members of our low interest loans.

− Provide quality service to members.

Favorable Service Techniques

First impressions are long lasting. Therefore, all credit union personnel must:

− Assist the members in a professional and courteous manner, commencing with

the first initial contact; and

− Follow through to help the member feel assured that the "right" financial

institution has been chosen, and

− Provide confidence that the credit union offers the products and services that

meet their needs either now, or in the future.



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Initial Contact/Greeting the member

The following is a list of suggestions, which are beneficial when establishing a positive

and productive rapport with the member.

− Stand up, when possible.

− Establish eye contact.

− Smile.

− Introduce yourself.

− Ask if you can help. Listen to the member before assuming what service is

needed.

If the member wishes to open an account, thank them for choosing EFFCU.

Make the member feel at home (small courtesies make the difference-offer a seat).

Cut Off All Other Work Interruptions

Try to arrange for someone to back you up when you are opening an account. If you

are interrupted, don't forget, the member is still the most important person; excuse

yourself and make the interruption as short as possible.

Use member's name as often as possible. Remember that 75% of face-to-face

communication is non-verbal (i.e. gestures, posture, appearance, tone, etc.).

− Maintain a neat, orderly well-organized desk, giving the member ample room

to complete and/or sign the appropriate documents.

Interview

− Tactfully find out why the member is there. Be a good listener.

− Example: “Is this your FIRST account at a credit union”? Perhaps this

member is new to the community and the credit union; in which case, several

services may be needed.

− Perhaps this member was unhappy with a credit union and is moving the

account. If so, find out what went wrong and try to avoid making the mistake

yourself.

− Perhaps this member already has an account with EFFCU and is opening an

additional account.



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Products and Services

157BSavings/Checking Products

Regular Savings

Prime Reward (no longer offering)

Christmas Club

Vacation Club

Checking

Segue Student Checking

Money Market

Traditional IRA

Roth IRA

Educational IRA

Certificates 158B

159BAdditional Services

Direct Deposits (Automated Clearing House - ACH)

Payroll Allocations

Automatic Transfers

Online Banking

Touch Tone Teller

Check Orders

Stop Payments

Notary Services

Signature Guarantee

Automated Teller Machine Service (ATM's)

Wire Transfers (Bank to Bank and Western Union)

Visa Gift Cards



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Fee Schedule

Account Fees

Overdraft Transfer Fee $5.00 per transfer

Non-Sufficient Funds – “NSF Fee” $30.00 per item

Paid by overdraft fee $30.00 per item

Return Item Fee $5.00 per item

Stop Payment Fee $30.00 per item (check or pre-authorized electronic debit)

Check Printing Fee Prices vary depending on style

Temporary Checks $3.00 per page (12)

Returned item drawn on Members’ account at

another institution (NSF) Fee

$30.00 per item

Inactive Account Fee

$5 per month, if no activity for 12 months, and/or balance under $100 and no other services

Other Service Fees

Account Research/Reconciliation Fee $15.00 per hour

Statement Copy Fee (includes account print out) $3.00 per statement

Returned Statement/Mail Fee $5.00 per statement/mail

Deposited Item Return Fee $5.00 per item

Wire Transfer Fee $15.00 per item

Cashier’s Check Fee $5.00

Money Order Fee $2.00 each

Legal Process Fee $25.00 per service

Telephone Transfer Fee* $1.00 per transfer

Copy of Paid Check Fee $2.00 per check

Plastic Card Replacement Fee $10.00 per card

ATM Transaction Fee $1.00 per transaction (excludes CU PASS Network ATMs)

Account Balance Inquiry $1.00 per inquiry

Check Cashing Fee $5.00 per check (excludes Active Checking Account or Current Loans)

Dormant Account Fee $25 per account

Inactive Account Fee

$5 per month, no activity for 12 months, under $100, and no other services

Collection Items $15.00 per item

Photocopy Service* $.50 per page

Administrative Fee (closure of primary savings within 180 days of opening) $15.00

ACH/Card Origination Payments

No charge online; $5 over the phone ACH/Debit card; $10 over the phone credit card



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Safe Deposit Box Fees

Box Sizes: Annual Fee:

3 X 5 $20.00

5 X 5 $25.00

3 X 10 $25.00

5 X 10 $40.00

10 X 10 $60.00

Key Deposit $10.00

Key Replacement $55.00

Drilling Fee $100.00

Bill Pay Fees

Account to Account – to another institution $2.95

Same Day Bill Payment $9.95

Overnight check – check sent overnight $14.95

Pop Money:

Send Money Fee: $1.00 - $249.00 $0.50

$250.00 - $999.00 $0.75

$1,000.00 and above $1.50

Request Money Fee: $1.00 - $249.00 $0.50

$250.00 - $999.00 $0.75

$1,000.00 and above $1.50

Stop Payment $20

e-Greetings $0.25



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Section 2: Regulations

Office of Foreign Assets Control Policy

The Office of Foreign Asset Control of the Department of the Treasury administers and

oversees a series of laws that impose economic sanctions against hostile targets to

further U.S. foreign policy and national security objectives. OFAC is responsible for

promulgating, developing, and administering the sanctions for the Treasury. NCUA is

responsible for determining that credit unions comply with OFAC regulations. OFAC

laws and regulations promote national and international security by requiring asset

freezing of; oppressive governments, international terrorists, narcotic traffickers, and

other specially designated persons.

Note: If additional OFAC information is needed, contact your supervisor and/or

compliance for further instruction.

Member Service Representatives

1 Upon opening a new account with Education First Federal Credit Union all

names of the potential member, joint owners and payable on death

beneficiaries are checked against the OFAC database using Verafin.

2 Each transaction that involves a person or entity that is not a current

member is individually checked against OFAC SDN list. This includes wires

sent to non-members as well.

What to do with the Verafin information provided

If there is a match anywhere from 90% - 100% compliance must be contacted to

determine how to proceed with the transaction. E-mail

[email protected] or call Rachel Gilmore or Amanda Lowe.

Beginning at the Home page

1 Click Internet Links

2 Click Verafin

3 Sign in

4 Enter individuals name and address. If available use social security number

as well.

5 Click Search (see screen shots on next page)



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Securities Transfer Agents Medallion Program – (STAMP)

Purpose

The Securities Transfer Agents Medallion Program is a signature guarantee program

endorsed by the Securities Transfer Association (STA) and recognized by securities

industry participants in the US and Canada.

For over one hundred years, Issuers of Securities and Transfer Agents have relied upon

the signature guarantee process for the transfer of securities. This process, codified in

the Uniform Commercial Code (UCC), makes the Transfer Agent liable for improper

securities registration. To register or re-register a security, the Transfer Agent or Issuer

relies upon the warranties made by a Medallion Guarantor when placing a Medallion

Guarantee Stamp on a security, namely, that the signature is genuine, the signer is an

appropriate person to endorse, and the signer had the legal capacity to sign.

Education First Federal Credit Union provides signature guarantees as a service to

members or joint owners (only).

The Credit Union guarantees to the issuer of the securities or its transfer agent that the

registered owner’s signature, or that of an agent authorized to act for the owner on the

security or transfer form, is genuine.

Procedures

The member must sign the security in front of a Credit Union employee authorized to

provide signature guarantees. The employee must witness the actual signing. Valid

identification is required such as:

− Driver’s License

− Identification Card

− Military Identification or

− Passport

Signature guarantee logs and stamp are kept in the vault at the Rosedale and Lamar

offices. At the Administration office, the log and stamp are kept in a locked area.

Note: If authorized staff is not available to perform this service for the member at the

Rosedale or Lamar Branches, we can find the appropriate person in the Administration

Office for the member.

Authorized Signers

The authorized signers are as follows:

Christine Sliva, Gilesha Serf (Admin)

Joanna Alfaro, Laura Landry (Laurel)

Carrie Hulsey (Lamar)

Aisha Diop, Cristal Godina (Rosedale)

Jared Mason (Jasper)



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163BBond Coverage

Education First Federal Credit Union is required to carry bond coverage for losses

resulting from guaranteeing a signature to sell, transfer, surrender, or exchange

securities. Bond is up to $500,000.00.



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Customer Identification Policy (CIP)

Education First Federal Credit Union has adopted this policy to comply with the

requirements of the USA Patriot Act and its implementing regulations to establish the

identity of individuals and entities opening accounts at the credit union.

Education First Federal Credit Union’s Member and Customer Identification Program

(CIP) consist of this board approved policy as well as procedures established by

management that at a minimum include:

− Verifying the identity of any member or customer seeking to open an account.

− Maintaining records of the information used to verify identity, using either un-

expired government-issued documents or non-documentary verification

methods; and

− Determining whether the customer appears on any government list provided

to the credit union by federal agencies, when these federal lists are issued.

In formulating and maintaining appropriate procedures, management will take into

consideration the types of accounts offered, the method of establishing accounts, and

the credit union’s field of membership to determine what level of risk the credit union

feels it has in opening accounts. Procedures will establish what documents and non-

documentary information are to be relied upon to verify identity.

For purposes of CIP, accounts include all formal account relationships established,

whether established as share, share draft, certificate, or other savings account, as well

as loan account relationships. New members and customers establishing any type of

account on or after October 1, 2003 will be subject to CIP procedures.

The term customer includes non-member joint owners, non-member co-borrowers or

any other individual or entity (business, corporation, trust, partnership) establishing a

formal account relationship with Education First Federal Credit Union who will not be a

member.

Prior to opening any account every new member or customer is required to provide a:

− Name,

− Date of birth,

− Address, and

− Identification number

The Credit Union will maintain this information for five years after the account is closed.

Reasonable steps will be taken to verify this information through documentary or non-

documentary verification methods as required by the Treasury Department’s CIP

regulations. The verification methods accepted are specified in Education First Federal

Credit Union’s CIP procedures, and the description of documents reviewed and the

verification method used will be maintained for five years after the description is

recorded.



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Additional verification will be required for individuals whose true identity cannot be

verified using the standard verification methods. An account will not be opened if

verification of an individual’s identity cannot be verified.

The Bank Secrecy Act officer is responsible for maintaining ongoing compliance with the

PATRIOT Act requirements and its implementing regulation. Appropriate staff will be

adequately trained on BSA and CIP requirements.

An annual audit of CIP compliance will be conducted by the credit union’s internal

auditor.

Before opening an account, potential members and new customers will be advised of

the credit union’s CIP program through the appropriate notice as specified in the

implementing procedures.

Education First Federal Credit Union believes that it has a reasonable basis to assume

that members and customers of record as of October 1, 2003 are known to the credit

union. If events occur that raise questions as to whether the credit union knows the

true identity of a person, the credit union will seek to verify the person’s identity, as

called for in the CIP procedures.

CIP Procedures

This program is designed to assure Education First Federal Credit Union’s compliance

with the USA Patriot Act and the implementing regulatory requirements of the U.S.

Treasury Department and the National Credit Union Administration to assist in

preventing and tracking money laundering and terrorism financing activities. These

procedures implement the policy adopted by Education First Federal Credit Union’s

board of directors. The credit union will take reasonable and practical steps to verify

the identity of people who open accounts with the credit union.

Coverage

These CIP procedures will apply after October 1, 2003 to anyone establishing a formal

relationship with Education First Federal Credit Union to provide services, or engage in

other financial transactions that include share, share draft, certificate, or other accounts,

as well as loan account relationships.

The term customer as used in this program refers to anyone establishing an account

relationship with Education First Federal Credit Union, including members, non-member

joint owners, non-member co-borrowers or any other individual or entity (business,

corporation, trust, partnership) establishing a formal account relationship with the credit

union.

The term customer also refers to the individual who opens an account for a minor lacking

legal capacity or for an entity that is not a legal person, such as an office bowling league,

the annual picnic fund, etc.

If events occur that raise questions about the true identity of an existing member or

customer, the credit union will follow these procedures to verify that person’s identity.



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Collection of Information from Individuals

Information Required

Education First Federal Credit Union requires the following information to be provided

by each individual member or customer before opening an account with the credit union:

− Name

− Residential or business street address, plus a mailing address if different than

the residential or business street address

− Army Post Office (APO) or Fleet Post Office (FPO) box number for members of

the military; residential or business street address of relative or another

contact individual

− Date of birth

− Identification number, which will be a Social Security number for U.S. citizens.

For non-U.S. persons, a W-8Ben form is required (using #000-00-0004) or a

Social Security/tax identification number; passport number and country of

issuance; alien identification card number.

Verification of the Identity of Individuals

Accounts Opened in Person

Education First Federal Credit Union verifies the identity of a new member or a customer

appearing at the credit union by examining the following unexpired documents that look

authentic. Two forms of ID are required when opening accounts. One of which must be

from the primary list; the second form can be from either list:

Primary Identification Secondary Identification − Driver’s licenses - Social Security card

− Passports - Student ID card

− State identification card or - Employer Photo badge

− US Government identification - National or local credit or debit card

− Texas Concealed Handgun License - Birth certificate

When opening a new membership, if the person’s address on the ID is incorrect it is

okay to obtain the new address from the member. The member is not required to

bring in proof of their new address before the account is opened.

Identification number, place of issuance and Identification used will be recorded on the

signature card and scanned into XP2 Images.

If the document presented for purposes of identification is not one the staff is familiar

with, it is brought to their immediate supervisor for review and/or approval.

In addition to documents, we will use other methods to verify identity such as reports

from ChexSystems through Harland eFunds. If a situation arises where staff has a



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concern about being able to verify the identity of the person, the Member Support

Center Manager, Branch Manager, Assistant Branch Manager, Executive Vice President

or President is to be notified for advice on how to handle the situation.

Application for TIN Is In Process

Education First Federal Credit Union will not open an account for an individual awaiting

a Social Security number/individual taxpayer identification number (ITIN).

Joint Account Holders of Credit Cards

The Credit Union will obtain information from Experian Credit Reporting Agency about

any joint account holder on a credit card account who is not currently a member of

EFFCU before extending credit to the non-member joint accountholder.

Person Not Present (New and Existing Member)

An account opened by mail, internet, in-direct lending or payroll deduction requires the

following:

− Name

− Social security or tax identification number

− Physical address

− Date of birth

− Eligibility; and

− Copy of acceptable photo identification.

EFFCU verifies the identity of a new member or a customer who remotely opens an

account at the credit union by the following non-documentary methods. Methods used

in all cases:

− Name

− Physical address

− Social security/tax identification number

− Date of birth, and

− Copy of acceptable photo identification

Other acceptable steps the credit union may take to verify identity may include:

− Use of a verification service

− Use employment information or

− Use a student identification card



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Accounts Opened Prior To Verification

Education First Federal Credit Union does not open any accounts before the verification

procedure is completed.

Discrepancies with Information Provided

The credit union seeks to resolve any substantive discrepancies discovered when

verifying the identifying information obtained from a person, and will record the

description and results of any measures used to resolve those discrepancies176B

Record Retention

Information Collected

Information required from the individual and business accountholders (name, date of

birth, address, identification number and any other information collected under these

procedures) is retained for five years after the account is closed. The information is

retained on the Account Card, Account Authorization Card and in our computer system.

If requested by a federal government agency, the information will be retrieved by our

Research Department.

Verification Descriptions

Records on the descriptions of any document (including type of documents,

identification number, place of issuance and, if any, date of issuance and expiration),

descriptions of non-documentary methods used, and descriptions of any resolution of

substantive discrepancies found when verifying an identity will be retained for five years

after the account is opened.

This information will be retained on the membership application, account change card

and in our data processing system. If requested by a federal government agency the

information will be retrieved by our Research Department.



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Checking Government Lists [Reserved: yet to be announced by Treasury]

Procedures need to be developed once the Treasury Department issues any information

on any designated CIP lists, which are in addition to the credit union’s current

responsibilities for checking names against the OFAC lists and the FinCEN requests.

CIP Notice

New members and customers will be notified about the credit union’s CIP policy by:

lobby notice, notice posted:

− On the website

− Orally, and

− On the account agreement.

Annual Audit

Education First Federal Credit Union has an annual audit conducted by its internal

auditor to determine whether the requirements of the customer identification program

are being met.

Training

The credit union’s service staffs, Tellers, Member Service, Lending Service and Member

Support Center Representatives, are required to participate in regular Bank Secrecy Act

training, including customer identification program requirements and procedures. The

lending staff’s responsibilities for non-member/co-borrowers is to make sure that

person’s identify is established before a loan is granted. Evidence of participation will

be retained for audit purposes.



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Verifying Member’s Identity by Phone

Guidelines

Members make several requests by phone. All information, concerning the member's

account, must be handled in a confidential manner. It is imperative members are

properly identified via telephone. Since the member cannot be seen, rely on your

listening skills to help pick up any indication of fraud.

Operation Begins

When phone call is received.

Member Services Platform Transaction

Access Membership Summary page

Procedure

1. Obtain the following information from the caller when verifying identity:

a. Member number and the name of the individual

b. Current address and phone number

c. Social Security Number

d. Date of Birth

e. Driver’s License Number

f. Last known deposit or transaction

g. Current loan(s) with the credit union

h. Name(s) of additional signers on the account

i. For those with access to home banking reset, you may log in and ask

up to 3 of the challenge/response questions available

2. A and b are required. Any combination of c through i must be verified to

continue with the request. Change it up; do not always ask the same for

each phone call.

3. If the caller cannot give this information, do not go any further.

4. If fraud is suspected, place a detailed contact on the account and contact a

manager. (See contact management procedures)



25

Membership Eligibility Verification

Anyone who lives, works, worships or attends school in the six county areas of Jefferson,

Orange, Hardin, Newton, Jasper and Tyler can join Education First FCU, along with the

employees and retirees of the East Chambers and High Island Independent School

Districts.

A family member(s) of any EFFCU member (i.e., spouse, children, parents, brothers,

sisters, grandparents and grandchildren) is eligible for membership.

Underserved Area

The reference to “the underserved area” includes the ENTIRE county. This allows ANY

person within the six counties to become a member of Education First FCU.

Sponsorship

A sponsorship letter of introduction is required under most circumstances from the

individual sponsoring their immediate family member.

If the sponsor is present there is no letter required.

If family members can be positively identified, there will be no letter needed.

If the family member who wishes to join can give you the primary owner’s

present address and date of birth this would be sufficient for identification,

therefore not requiring a sponsor letter.

If there is a doubt about family membership or marriage then a birth certificate

or marriage license may be required.

Joint Spouses

A spouse who is currently a joint owner on an account may open another account under

that primary number.

The joint owner may obtain signature cards that have been typed with all the

information to take to the primary owner and return.

When these cards are returned to the credit union, all signatures are verified.

Ineligible Membership

If it is found at any time after the account is opened that someone was not actually

eligible for membership, the account may be closed immediately. An explanation letter

is sent to the individual accompanied by a check for the total of funds in the account.

When the account is closed the address is placed on hold to prevent a statement from

being processed on that account. See XP2 Address Procedures.



26

Harland eFunds/ChexSystems

Potential members must pass the Harland eFunds check, which pulls ChexSystems

history, to join the credit union. All signing owners on an account must pass the

ChexSystems risk assessment.

Depending on the information reported, you may grant or deny the opening of the

membership. If you deny membership, print/give an Adverse Action letter. If you are

unsure whether or not to approve the membership, get with an available supervisor. If

the member wants to verify or refute a debt, they need to contact the reporting agency.

If the debt is paid, the member is allowed to provide proof of payment.

IF HARLAND EFUNDS IS DOWN, CALL CHEXSYSTEMS (1-800-328-5120), OUR MERCHANT CODE IS #20023105.

If ChexSystems is “recommending decline” get with a supervisor to interpret the codes.

Depending on what is being reported, we may need to decline membership.

If the member already has a savings account established, go to the Individual Level,

Custom Data screen and choose “ChexSystems Declined” in the Declined Checking

Reason field. Add a contact to the account under the category Product Notes as to

why we declined the checking account.

ChexSystems also checks:

Social Security Number Validity – SSN Validation Message could be:

- Impossible Number

- Invalid Number – Not yet issued

- Number Inactivated Due To Report of Death

-

A “Please Call” response is generated when a consumer has issued a written statement

to ChexSystems disputing or clarifying information on their consumer record. Call

immediately to receive the additional information about the potential member’s

situation.

Decline Recommendations are based on:

- Fraud closure reported on the consumer within the last five years.

- Abuse closures reported on the consumer within the last five years.



27

Review Conditions will exist due to:

- Consumer ID Theft Alert – The consumer has requested an Identity Theft Alert

be placed at ChexSystems.

- Consumer Security Freeze Alert – The consumer has placed a freeze on their

consumer report.

- Driver’s License Information – The driver’s license format review rule evaluates

the alphanumeric combination of the driver’s license, State ID, and Military ID

number for all 50 states, U.S. Territories and Military Bases. It does not verify

the validity of the number.

- Warm Address – Examples of warm addresses include hotels, penitentiaries,

mailbox drop sites, etc.

- Invalid Telephone Number – The input telephone number is invalid when the

exchange/prefix is not found in that area code. This rule does not evaluate

whether or not the actual telephone number has been issued.

See Detailed Reason Codes on next two pages.

*DDA = Demand Deposit Account

*FI – Financial Institution



28



29



30

Membership Guidelines

Forms of Ownership/Definitions

The following information defines the various forms of account ownership available:

Individual Ownership Single and complete control of funds

Joint Ownership Two or more persons sharing equal ownership of the

funds on deposit, regardless of their net contribution, with a possible right of survivorship. The first named on the account is the primary member.

Individual Retirement Accounts

EFFCU acts as trustee for a member who owns an IRA. IRA is specific to the primary member account.

Social Security Rep. Payee Accounts

The primary member on the account is the beneficiary of funds with a designated representative payee controlling those funds on the beneficiary’s behalf—designated by the Social Security

Administration. The rep. payee does not own the account but manages it on the beneficiary’s behalf.

Minor Accounts/Parent Opening Account for Children

A parent may open an account for their children without them being present as long as

the child’s social security number is listed on that account and they are under the age

of 18.

If they are 16 or 17 years, the parent will be required to take the signature cards to

the child for their signature before the account can be opened.

Identification is not mandatory for children not signing on the account.

If the child is young and the parent signs for them, the child is not able to withdraw

from the account. When the child is old enough to sign on his/her own, the signature

card can be updated and driver’s license or state ID will need to be verified.

A parent is required as joint owner on an account until the child reaches the age of 18.

The CIP policy will apply for anyone 18 years of age or older.



31

Opening a New Membership

Forms Required

Valid photo identification card along with secondary ID

Account Card

Membership and Account Agreement

Truth-in-Savings Disclosure and Agreement

Schedule of Rates & Fee Service Charges

Transaction Receipt

Terminal Transactions

Verify with OFAC (Verafin)

Verify with Harland eFund

XP2 Enroll Member or Lending 360 New Membership



32

Accounts Opened or Changed-Person Not Present

Note: On an existing membership, do not make any changes to the account in XP2

until account documents reflecting those changes have been received.

If the member is not able to open a new membership or make changes to an

existing membership in person:

1 Membership eligibility will be verified in the same manner as if the member

had enrolled by coming into the building. (See Collection of Information

from Individuals: Person Not Present.)

2 Before the account is established, send required disclosures via email, fax,

or mail—dependent on the member’s preferences.

3 The Account Card and Account Change Card require “wet” signatures

meaning the member must physically sign the documents if they are being

sent (via email, fax, or mail) for signing and send them back to the credit

union (via email, fax, or mail) for signature verification and to complete

account opening/changes. We must receive signed documents and

opening deposit within 30 days of paperwork being sent.

a. Create documents in L360 or IMM (depending on the membership

type) and save the documents to your computer.

b. For New Membership: Add the red alert “No activity allowed see

membership services” to the account as well as a Contact

explaining the reason and how best to reach the member.

c. Send documents to the member via EchoSign. The member will

print, sign, and return them. (See EchoSign instructions.) After

each follow up, add a Contact to the account explaining the

interaction with the member.

1. Follow up with the member that documents have been received

immediately after sending. Offer to assist them in completing

the forms either over the phone or with a video chat. (Video

chat only if your schedule allows it.)

2. Follow up after 3 days if documents have not been returned—

answer questions/offer assistance.

3. Follow up after 10 days if documents have not been returned.

4. Mail Account Opening/Account Change Termination Letter

(found on the Intranet: Quick Links: Policies & Forms) to the

member if documents have not been received in 30 days.

4 After the account has been established, send a welcome letter, receipt,

member account identification card, and any other documents pertinent to

the membership via email, fax, or mail—dependent on the member’s

preferences.



33

Completion of Signature Cards

The Account Card Form is a multi-purpose signature form and application/agreement

that serves to identify members by their signature. They agree to the terms and

conditions set by the credit union for the account. A Line Card, for quick signature

verification, is also completed and scanned into XP2 images. An Account Card form

must be on file for every account opened.

The Account Card Form is used for two purposes:

− To open all account types requested by the members.

− To update account type/ownership as requested by the members.

Forms Required

Account Card or Account Change Card

Line Card

Procedure

Review all signature forms for completeness and legibility. The following data must be

verified:

1 Primary owner's information completed and signed in the appropriate

spaces. Appropriate Social Security number or primary identification

number must be provided.

2 Harland E-fund verification numbers are recorded on the signature form to

indicate CIP is followed.

Note: If a credit card is used as secondary ID, do not record or copy any credit

card numbers. Record credit card type only. (i.e. VISA, MASTERCARD…)

3 The joint owner's section is completed, including: Social Security number,

date of birth, signature and valid identification.

4 If the member does not have a Social Security number, a W-8 Certificate

is completed and signed.

5 If the member selects Payable on Death Beneficiary (under Account

Ownership Information), the relationship information is provided on the

P.O.D Beneficiaries section. Enter name and identifying information (see

example). OFAC search must be run on beneficiary.

Example: Daughter DOB 12-31-1942 or Fiancé SS 123-45-6789

6 Verify that the data base system reflects accordingly, date and initial card.



34

Audit/Maintenance of Signature Cards

Guidelines

For each new account opened, the appropriate signature form must be completed with

the correct date.

− Completed forms are to be imaged and maintained at the Administrative Office

on the Nautilus System.

− A line card for quick signature verification is also completed. (Refer to the

previous section "Completion of Signature Cards.")

− Review of signature forms for new accounts may be delegated by the Branch

Manager but are the primary focus of the Quality Assurance department.

− The designated supervisors will review new account reports daily and ensure

that associated signature forms are completed.

− The Branch Manager will communicate daily to ensure that all forms are

checked for accuracy and that the Customer Identification Policy is faithfully

followed.

− In the event a signature form is incomplete or missing, it will be held in the

pending file until a properly completed form is received. The member has 30

days to submit a completed signature form.

Forms Required


Line Card

Audit Procedure

1 Compare all personal information on the Account Card/Account Change

Card to XP2.

2 Compare all new accounts forms to the Savings Report/RPT301B-New

Accounts in Nautilus. This report is produced daily and is printed by

Assistant Branch Manager and/or the Branch Manager.

3 Verify completion of the member’s signature and withholding option under

the IRS Code 3406 (a) (1) (c). With one signature, the member agrees to

the membership, account agreement and indicates withholding status. If

the form is incomplete or missing, a corrected form is sent out allowing

the member 30 days to respond. After 20 days a reminder letter is sent

out. The account will be closed if a signed signature card is not received

after 30 days.



35

4 Insure that the Customer Identification Program (CIP) has been followed

faithfully.

5 A pending file is created for Account Cards/Account Change Cards with

errors until a corrected form is received. The pending file is reviewed daily

by the Branch Manager to ensure all forms are completed and returned in

a timely fashion.

6 All signature cards are either archived in Nautilus or are sent to Quality

Assurance and imaged on the Nautilus System.



36

Account Changes/Change of Ownership

Guidelines

For all types of ownership changes it is necessary to obtain an Account Change Card

and a line card for signature verification. The Account Change card reflecting any

changes must be signed and returned before changes are made in XP2.

Updated account documents must be received within 30 days of the change

request. If signed documents are not returned within 30 days, all changes are

voided/reversed.

Name Change

When a surname change is required for a primary member,

- Obtain new social security card or receipt of change from Social Security

Administration. ***Required***

- If new driver’s license is available, scan in XP2 for identification purposes.

- Complete Account Change Card with the new legal name, information and

signature. Verify the member's previous surname in XP2. Update the primary

name in XP2.

When a Joint Owner changes their name, either a driver’s license or a social security

card is acceptable proof.

Addition of Joint Owner

A member may add a joint owner at any time. Obtain an Account Change Card. Have

both the member and the joint owner(s) sign where indicated. Also have joint owner(s)

show proper identification, and run through Verafin and Harland eFunds. Only the

primary member can authorize the addition of a joint owner.

Deletion of Joint Owner

An Account Change Card must be obtained with the signature of the member along with

any other joint signers that are still on the account. If a joint owner requests to be

deleted from an account he/she must sign the “Revocation of Joint Share Account

Agreement” form. An Account Change Form must be mailed to primary member along

with letter explaining request for update of signature card.

Payable on Death Change

To change or appoint a Payable On Death beneficiary, the primary owner and any

joint owner of the account must complete the Account Ownership Selection on the

Account Change Form. (For changes of IRA's, refer to IRA/Trust Services Section.)



37

Decedents Accounts

Due to the complexity of handling the closure of a deceased member account,

Accounting Department staff must be notified before any action is taken. They will

provide procedures on what documentation is needed and how to close the account.

Forms Required

Certified copy of Death Certificate Letters of Administration, Letters Testamentary (if there is no joint owner).

190BProcedures

Upon notification of the death of a member, proceed as follows:

1 Notify Accounting Department.

2 Remove limit from Line of Credit and Credit Card.

3 Joint owner or beneficiary:

a. Advise of status of the account and options available.

b. Ask for any needed information or documents.

c. Advise of loans and possible credit life.

4 Handle account according to written instructions from joint owner or

beneficiary.

5 If it is an "Individual Account":

d. Call Accounting for approval to release funds, if balance of account is $100.00 or

less and there are no conflicting claims.

e. If the balance is over $100.00, we must have Letters of administration or

Letters Testamentary, before releasing funds.

6 If there are loans, share accounts cannot be closed until loans are paid off

7 Accounts without loans can be processed and closed once the required

documents, including death certificate, written instructions for

disbursement and proper identification are received from the joint owner,

beneficiary, or administrator.

Before giving anyone information about a deceased members’ account, you must make

sure that the person can receive that information legally. Upon notification of a

deceased member, the MSR will verify if the person asking for the information is a signer

on the account.

Never agree that the supposed deceased member has an account until the person has

presented a death certificate and documents showing they are over the estate. If the



38

person is not a signer on the account all you can tell them is that they are not a signer

on the account.

Speak with the Accounting Department before releasing any information on a deceased

member’s account. No deposits/transactions are to be made to a deceased members

account without approval from the Accounting Department.

In regards to a missing person, if someone is claiming a member is missing and is

inquiring about the account; verify if the person asking for the information is a signer

on the account before releasing any information. The MSR will only be able to release

information if the person has a Durable Power of Attorney over the missing person

(approved by Gary Coker, C.U. attorney), or if the credit union is served with a court

order. Be compassionate to the family, legally, however, we cannot release any

information about the account or even confirm if the person has an account with the

credit union now or in the past.



39

Decedent's - Loans and Visa

Upon notification of the death of a member/borrower, review the death claims procedure

as shown in the previous section, "Decedents Accounts," then proceed as follows:

Forms Required

Certified copy of Death Certificate

Letters of Administration, Letters of Testamentary (if applicable).

Procedures

The Record Retention Department - Main Office will:

1 Notify Accounting

2 Pull signature forms/card and line cards.

3 Alpha inquiry and search for multiple accounts.

4 Loan With Insurance Coverage

- Notify Accounting Department.

5 Loan Without Insurance Coverage

- Notify the Loan Department.

6 Notification of Loan Payoff

- Notify Loan Department.

Visa Accounts

1 Deceased Member - Individual (1) Card

a. Notify Credit Card Department

b. Request card from informant or survivor.

2 Deceased Member - Joint Applicant (2) Cards

a. Notify Credit Card Department

b. Advise survivor that due to the death of the primary cardholder, the

limits have been removed and no further charges can be honored.

Request that cards be returned to the Credit Union, and complete an

application for a VISA credit card if survivor is or would like to be a

member.



40

VISA Department Responsibilities

1 Upon receipt of status change request, VISA will status the account.

2 Enter in appropriate Warning Bulletin.

3 Upon confirmation that the account is in the Warning Bulletin, VISA will

change VISA cross-reference number on our system to prevent any further

activity on the account or the possibility of the card being reissued.

Standard collection procedures will be followed on VISA balances, when necessary.



41

Account Numbers\Types

Member Account Number

All members are assigned an account number at the time they open their primary

savings account.

Accounts

Under the member account number, a member may have a total of ninety-nine (99)

accounts, which may include savings, checking, certificates, and Individual Retirement

Accounts (subject to IRA regulations).

Each account is assigned a number based on the account type. When opening an

account, select the appropriate type from the Product Template. Then select the

specific account from the Product drop-down menu.

An Account Table listing all available accounts is provided on the reverse side.



42

Account Table

SV# Description Type Input Code

Saving and Checking Accounts 1 Regular Savings Regular Deposit RS

2 Regular Checking Account Basic Share Draft SD/NC

2,6 Segue Student Checking Basic Share Draft CS/CT

5,4 IRA Savings Regular Deposit RA,ED,RO,RC

6,7,8 Special Checking Basic Share Draft SD/NC

3,6,7,8 Special Savings Regular Deposit SS

8 Checking Basic Share Draft SD/NC

9 Money Market Basic Share Draft H3

29 or 30

Christmas Club Savings/Vacation Club Certificate Deposit CC/VC

Business Accounts

1 Business Share Account Regular Deposit BS

2 Free Business Checking Basic Share Draft BF

2 Simple Business Checking Basic Share Draft BU

2 Plus Business Checking Basic Share Draft BP

Association Accounts

1 Association Savings Account Regular Deposit AS

2 Association Checking Basic Share Draft AC

10 - 30 Certificates

3 Months Certificate Deposit 3M

6 Months Certificate Deposit 6M 1 Year Certificate Deposit 1Y

2 Years Certificate Deposit 2Y





43

Social Security Representative Payee Accounts

A representative payee for a Social Security beneficiary may open an account on behalf

of the SS beneficiary. The beneficiary must be within our field of membership.

The representative payee should have a letter from the SS Administration naming them

representative payee, or the original check issued from the Treasury. The rep. payee

serves in the capacity of “manager” of the account, not the owner. The beneficiary is

listed as the Primary Member/Tax Owner on the account but will not have access to

funds. Loans cannot be originated on this account type.

Forms Required

Valid photo identification card along with secondary ID of the Rep Payee

Account Card

Membership and Account Agreement

Truth-in-Savings Disclosure and Agreement

Schedule of Rates & Fee Service Charges

Transaction Receipts

XP2 Procedures

Beginning with Enroll Member,

1 The SS beneficiary is the Primary Member and only owner on the account.

Search/Input the beneficiary’s information. The mailing address should be

the address of the representative payee.

2 On the Assign Member Number page, add new membership and Primary

member not a signer on account alerts:

3 Select products as requested by the rep payee. (Usually a savings and a

checking account. SS Rep Payee accounts are NOT eligible for Courtesy Pay.

Checking accounts are opened as Checking Account – CNC.)

a. Rep Payee accounts can have Overdraft Protection set up.

4 Set up MTS for the rep. payee to access.

5 Scan images for the rep payee’s driver’s license. The signature card is

signed by the representative payee and scanned.

(Ex. Sally Smith Rep. Payee Sally Smith Rep. Payee)



44

Adding Representative Payee to Account

Beginning on the Membership Summary,

1 Select Ownership from the side menu.

2 Look up the representative payee or add a new individual.

a. Ownership type is SS Representative Payee. Submit.

3 The rep payee can order a debit card on the account.

Completing the Account Card

1 On the Account Card, the Member/Owner is titled with the beneficiary’s

name and the representative payee’s name like so:

2 The Account Ownership Selection is never filled out. Section must be left

blank.

3 In the section on the Account Card, below Convenience Signer Designation,

complete like so:

4 There are no joint owners on the account.

5 Mark accounts opened in Account Type section with suffix numbers listed.

Complete Account Services section.



45

6 The Account Card is signed:

Note: In general, the funds should be used for the benefit of the SS beneficiary

but the credit union is under no obligation to monitor their use. The rep payee

can NEVER co-mingle their personal funds in the account nor cash checks against

the account that is payable to the rep payee.



46

New Primary Savings Accounts

Scope

To become a member of Education First FCU, a savings account must be opened with a

minimum deposit of $5.00.

Members can open up to a total of ninety-nine (99) accounts under the same

member.

Members may have an unlimited number of member numbers.

Joint Accounts

If there is more than one owner on the account, all funds on deposit are owned jointly

and equally, regardless of the net contribution with or without right of survivorship.

All signers on each member number are required to sign on all accounts for that

member number.

If the member wishes to add a joint owner on specific accounts: Example on a

#2 or #11 account etc., an additional member number must to be opened

listing those owners only.

A $5.00 minimum share deposit is not required for any additional member

numbers.

Dividends

Dividends are declared and paid monthly and computed on the daily balance. The

minimum balance requirement to earn dividends is $25.00. Savings accounts are

insured up to $250,000 in the aggregate by the NCUA (National Credit Union

Administration)

Savings and checking account balances may escheat to the state if, for a period of more

than 3 years, the owner has not:

1 Increased or decreased the amount of the deposit or presented an

appropriate record for crediting of dividends.

2 Corresponded in writing with this credit union concerning the funds on

deposit.

3 Indicated an interest in the funds on deposit as evidenced by a

memorandum on file with the credit union.

210B



47

Closing a Primary Savings Account

Guidelines

All signers may close a primary savings account, providing there are no outstanding

loans or safe deposit boxes on the account and all Visa check card debits have been

paid. If the primary savings account is closed all other accounts under that member

number must also be closed.

If the member is making the request in person, advise them of the account status and

the steps necessary to comply with their request.

If the request is received through the mail or fax, complete form letter (Exhibit 'A')

advising the member of the status. The account cannot be closed without a signed

withdrawal slip or a written request. The member’s signature must be obtained and

verified.

If the member is requesting to close the account before 180 days has passed since

opening, a fee of $15.00 is charged.

Procedure for Closing Membership

Post dividends prior to closing.

1 Member is closing in person:

a. Identify member by verifying:

- Date of Birth

- Social Security Number

- Photo ID and Signature

b. Ask the member High Impact Questions.

- Why do they want to close their membership?

- What can we do to keep their membership?

- What can we do to improve at our credit union?

Note: Summarize the discussion and include it in the contact added to the account for

closure reason.

2 If member is closing by request received in mail:

a. Close the account, if you have authorization from the member in writing with their

signature;

b. Verify member’s signature with signature card on file.

c. If the signature matches, process request.



48

3 Accounts can be closed by the credit union at the discretion of

management in certain cases. Such as:

- Charged off loans

- Negative account balances

- Mismanaged accounts

4 Carefully review all data including the memos and alerts to verify the

following:

a. No Loan/VISA Credit Line exists under the member's number; and no loans exist

under a different primary number, which have pledged a savings account under

this primary number as collateral.

b. No other open accounts under this primary number.

c. No payroll allocated to this account.

d. No contacts or holds to indicate a problem with closing the account.

e. No safe deposit boxes are open.

f. Disable Mobile Device and Online Banking in Relationship Manager.

g. Enter Contact with account closed reason and input details of discussion with the

member:

h. Disburse funds as requested by member in the Financial Platform by clicking on

the account balance. This will flag that account as Closed when posted.

i. Place member’s authorization in the daily work if requested via mail. (If mailing

a check, attach to the check copy that is sent to Accounting.)



49

Request Received by mail and we are unable to close:



50

Re-Joining After Closure

Members can re-join at any time as long as the following qualifications apply

− Member does not owe credit union any funds.

− Meet Membership Eligibility requirements.

− A flag will be added to the account, “Reopened Membership __/__/____.”

a. Member will be treated as a brand new member in regards to check

holds (9 day holds) and Courtesy Pay qualifications.



51

Closing an Account (Not Primary Savings)

Guidelines

A member may make a request to close the account at any time. Dividends will be

calculated and applied to the account before closing.

If the account is a Certificate of Deposit, a penalty will be assessed when the member

closes the account outside of the 10 day grace period following maturity.

If the account is a Christmas/Vacation Club account, the member forfeits dividends

earned when closing before maturity.

Procedure

Post dividends prior to closing.

Member is closing in person:

a. Identify member by verifying

− Date of Birth

− Social Security Number

− Photo ID and Signature

If member is closing by request received in mail:

a. Close the account, if you have authorization from the member in writing with their

signature;

b. Verify member’s signature with signature card on file.

c. If the signature matches, process request.

Closed by the credit union:

Accounts can be closed by the credit union at the discretion of management in

certain cases. Such as:

− Charged off loans

− Negative account balances

− Mismanaged accounts



52

Verify:

1 No loans exist with this savings account pledged as collateral.

2 No payroll allocated to this account.

3 No automatic transfers are set up to/from the account.

4 No memos or holds to indicate a problem when closing the suffix.

5 Pay any dividends owed except for Christmas and Vacation Club accounts.

(See XP2 Procedures)

a. Christmas and Vacation club accounts forfeit dividends earned as a penalty for

closing before the maturity date. The account cannot be re-opened until after the

original maturity date. (November 1st or May 1st.)

6 Click on account balance in Financial Platform. (Account is flagged as

Closed when the balance is selected).

a. If the account is a Certificate (CD), assess the penalty by clicking on Edit Details

in the Financial Platform prior to posting the transaction.

7 Click on cash or check disbursement.

8 Print withdrawal check or process a cash withdrawal.

9 Have member sign the receipt.

10 If mailing a check, confirm address.

11 Enter Contact with account closed reason.

12 Place member’s authorization in the daily work. Attach to the check copy

that is sent to Accounting.



53

Christmas Club Accounts /Vacation Club

Guidelines

The Christmas club and Vacation club account is available to members with the Credit

Union, enabling them to conveniently save for their holiday expenses. The minimum

opening deposit and minimum balance requirement is $0.00. Additional deposits can

be made through automatic transfer, online banking, payroll deduction, in person, or

through the mail, with no minimum amount requirement.

Term

Opening date for Christmas club is "November 1st through October 31st , and opening

date for Vacation club is May 1st – April 30th. The balance of either Account will

automatically be deposited in the savings account on October 31st for Christmas club

and April 30th for Vacation Club

Dividend Rates

Dividends are posted at the date of maturity and calculated from opening date through

maturity date each year utilizing the Average Daily Balance method.

Penalties

Withdrawals from the Christmas Club and Vacation Club account prior to "October 31st

and/or April 30th", will require that the entire balance be withdrawn and the account

closed. All dividends will be forfeited.

Loans

No shares in this account can be pledged as collateral for a loan.

Insurance

The Christmas Club and Vacation Club Account are insured by the NCUA, for up to

$250,000 aggregate.

Account Numbers

All Christmas Club and/or Vacation Club Accounts will be opened as account number 29

or 30.

225B



54

Forms Required


Truth-in-Savings Disclosure / Rate and Fee Schedule

Transaction Receipt

Automatic Transfer Form if applicable

XP2 Transaction

Add Product

Account Details – Maturity Date

Procedure to Open from XP2

Beginning at the Membership Summary page,

1 Click on Accounts.

2 On the Product Selection page, select Share Certificate from the

Product Template drop down menu.

3 Select Christmas Club Savings (D10CC) or Vacation Club Savings (VCS).

4 Click box next to Christmas Club/Vacation Club Savings in Product Search

Results area.

5 Click on Add Product. On Account Creation Page, ensure account number

is either 29 or 30, and change the Term to 365.

6 After the account is opened, go to the Account Details page, in rate and

terms section, enter maturity date: 10-31-YY for Christmas Club and

submit changes. Or, enter maturity date: 04-30-YY for Vacation Club and

submit changes.

7 Complete Automatic Transfer form if applicable.

8 Give member copy of the Transaction Receipt and Truth-in-Savings

Disclosure/Rate and Fee Schedule.

229B



55

Opening a New Certificate

Guidelines

CD terms offered are 3 months, 6 months, 1 year, 2 years, 3 years and 5 years. All

CDs with a different term will need to be closed upon maturity such as promotional

CDs.

Minimum amount to open a CD is $500.00.

We only offer monthly disbursements or compounding of dividends on a CD. We

prefer compounding or transfer of dividends. We will only offer a dividend check

mailed to members upon request.

CDs are opened to automatically renew. This will also be marked on the Account

Receipt. Be sure to discuss the process with the member. The member may

close the CD during their grace period without penalty. A grace period of 10

business days is given from the maturity date on a CD. (Business days Monday

thru Friday except for holidays.)

Dividends need to be posted on a CD before closing. No dividends are paid during

CD grace period.

Documents for CDs will be located in eAtlas under the New Account document set if

the membership is new, or under the Account Change Card document set for

existing members. Provide a Truth-In-Savings Disclosure and a CD Receipt to

members for all new CDs.

We do not do partial withdrawals from a CD.

CD penalties are calculated by XP2 upon pre-mature closure.

We do offer CD secured loans. Refer to loan policies for regulations and

procedures.

234B Forms Required


Certificate Account Agreement and Truth in Savings Disclosure

Schedule of Fees and Service Charges

Account Receipt

Transaction

See XP2 Procedures



56

CD Dividend Rate Match

Guidelines

Beginning July 24, 2018, staff will be able to match CD dividend rates at CD

account opening and renewal with the following authority/limitations:

233BProcedure to Verify Rate Match


1 Click on account details of CD with rate match.

2 Click on Custom Data.

3 Select “Yes” from drop-down of CD Rate Match field.

4 Check box for Verified – By.

5 Submit.



57

Bump Up Certificates

Guidelines

Members are allowed to bump up the dividend rate one time during the certificate

term. (Check “Jump Up Count” field in details.) A Bump Up must be manager

approved and will follow the CD Rate Match Dividend Rate Increase Chart.

Deposits are allowed at time of bump.

New TIS disclosure and Account Receipt must be given to member.

Qualified Terms: 1 year, 2 year, 3 year, 5 year

Procedure to Increase Dividend Rate

From Account Details:

Jump up Rate

Sets a new rate for the certificate. This rate replaces the Current Rate and is used

for the entire dividend posting period until the certificate matures.

In the Jump up Rate field, enter a new rate for the certificate.

Click Submit. The following occurs:

• The new rate moves to the Current Rate field.

• The Jump up Rate field returns to blank.

• The Jump up Count Field adds on to the current count.

• The Date and the Operator ID that performed the change display

next to the Jump Up Count field.



58

Dividend Calculations

How to Compute Dividends on Certificates

Example Assumptions

− Certificate Account Opened January 1

− Dividends Compounded Quarterly

− Term of Account is 365 days.

Equation: Principal X Rate divided by 365 days X number of days in the dividend

period.

Certificate

Quarter Days Balance Computation Dividend

Jan - Mar 90 2,000.00 2,000.00 x 3.0% / 365 x 90 = 14.79

Apr – Jun 91 2,014.79 2,014.79 x 3.0% / 365 x 91 = 15.07

Jul – Sep 92 2,029.86 2,029.86 x 3.0% / 365 x 92 = 15.35

Oct – Dec 92 2,045.21 2,045.21 x 3.0% / 365 x 92 = 15.47

Annual Percentage Yield Computation

Certificate minimum balance = $2,000.00

Total Dividend for 365 days = $60.68

Annual Yield = $60.68 divided by 2,000.00 - .03034

Annual Yield = 3.03%

If a Certificate Account is paid monthly and at maturity the calculation would be the

same except that the days in the period would equal the number of days in the month

and the certificate would earn simple interest. 18B



59

Traditional Individual Retirement Plan (IRA)

Overview/General Information

Individual Retirement Accounts ("IRAs") are tax deferred investment vehicles. A

Traditional IRA is an IRA in which the account holder deposits a portion of their income

for a particular tax year up to the established contribution limit. This is the most

common type of IRA.

If the account holder's spouse is not a wage earner, it may be possible for the

spouse to open a separate IRA. This IRA is a separate IRA account into which a

portion of the wage earning spouse's allowable IRA contribution can be

channeled.

There are no fees involved to establish an IRA. All IRA's are insured by the

NCUA up to $250,000 separately from other accounts that the member

maintains in the Credit Union. Minimum to open is $100.00

Contributions

The contribution limit to a Traditional IRA is as follows:

− $6,000 Age 18-49

− Owners over 50 years of age can contribute an additional $1,000.

Contributions to Traditional IRA's must be allocated to a particular tax year. IRS

regulations permit an individual to make a contribution to a Traditional, Roth

and Coverdell IRA for a particular tax year on or before the due date (excluding

extensions) of the tax returns for that tax year.

Subsequently, for individuals on a calendar tax year, a contribution attributable

to a given tax year can be made on or before April 15th of the following year.

However, it is important to note that the earlier the contribution is made, the

more dividends will be earned on that contribution.

Those individuals, who file their income tax early, may take a tax deduction

prior to actually establishing or contributing to the Traditional IRA, providing the

IRA contribution is made no later than April 15.

In order to make a contribution to a Traditional IRA for a given tax year, an

individual must not reach the age of 72 during the tax year. However, in the

event, that there is a spousal IRA, contributions may continue for a non-employed

spouse under the age of 72 even if the employed spouse is over age 72.

Contributions made in excess of the authorized limits are subject to an IRS penalty

of 6% on the excess amount, unless removed by the tax filing date.



60

Distributions

A member may withdraw all or part of their IRA funds at any time. IRA account holders

are entitled to receive retirement proceeds at any time without penalty after:

1 Reaching age 59 ½

2 Mandatory distributions must commence in the year in which the account

holder reaches age 72

3 Becoming permanently disabled

4 Death

5 Large Medical Expenses

6 Educational Expenses

7 First Time Home buyers

However, in the event of a premature withdrawal, there may be penalties imposed by

the IRS. These penalties would include:

− 10% Federal Tax Penalty

− Although not a penalty, the amount of the distribution would also be subject

to ordinary federal and state income tax.

For all traditional IRA’s a member must commence distributions no later than

April 1 following the year in which the account holder reaches age 72.

It is not necessary that the account holder withdraw the entire sum in the IRA.

If the account holder fails to take the minimum required distributions, a 50%

federal tax penalty may be imposed on the difference between the amount that

should have been distributed and what was actually distributed.

However, periodic distributions (at least annually) must be made, and the

amount of such distributions will be calculated by using the Uniform Lifetime

table established for the age of the account holder.



61

Roth Individual Retirement Plan (IRA)

Overview/General Information

Unlike traditional IRAs, contributions to a Roth IRA are not tax deductible. However,

the money in your Roth IRA, including earnings, can be withdrawn tax free once you

qualify to do so. The member can contribute to both Traditional and Roth IRAs; the

total contributions of both IRA’s cannot exceed annual limits, though. Contributions

may be made to the members Roth IRA after 72 and leave the contributions as long as

they like.

A Roth IRA is nondeductible but the interest earned is tax-free if distributed for one of

the qualifying reasons under distributions. The contribution must stay in the IRA for

five years before it achieves tax-free status on the earnings. However, if taken before

the five years is up, the earning will be taxable but no premature penalty.

There are no fees involved to establish this IRA. All IRA’s are insured by the NCUA up

to $250,000 separately from other accounts that the member maintains in the Credit

Union. Minimum to open is $100.00

Contributions

You may contribute annually $6,000 if under age 50, or $7,000 if over age 50. However,

one cannot contribute more than 100% of earned income. For example, if you earn

$3,000 annually, you may only contribute up to $3,000 for the year.

The Roth IRA limits some members from eligibility to a Roth based on their Modified

Adjusted Gross Income. Eligibility is determined by two questions:

− Do you have earned income?

− Is your MAGI within the limits?

See IRS.gov

Contributions to a Roth IRA must be allocated to a particular tax year. IRS regulations

permit an individual to make a contribution to an IRA for a particular tax year on or

before the due date (excluding extensions) of the tax returns for that tax year.

Subsequently, for individuals on a calendar tax year a contribution attributable to a

given tax year can be made on or before April 15th of the following year. However, it is

important to note that the earlier the contribution is made, the more dividends will be

earned on that contribution.



62

Distributions

A member may withdraw all or part of their IRA funds at any time. A distribution from

a Roth IRA that is a “qualified distribution” is not included in income. A distribution that

is not a “qualified” distribution is taxable on the portion that is distributed from earnings.

The Roth contributions have already been taxed.

A qualified distribution is as follows:

1 After five years and 59½ or

2 After five years and death, or

3 After five years and disabled, or

4 After five years and first time home-buyer



63

Coverdell ESA (Education Savings Account)

Overview

The Coverdell ESA is a non-deductible education savings account, but

distributions are tax-free as long as they are distributed to pay qualified

education expenses.

It is a trust established by an individual for the purposes of paying qualified

education expenses of a designated beneficiary. There are no fees involved to

establish the Coverdell ESA. Minimum to open is $100.00

The Grantor is the individual who opens the ESA.

An ESA must have one responsible individual to oversee the account. The

responsible individual must be a parent or legal guardian of the beneficiary and

is the controlling party who can withdraw funds at any time.

The Responsible individual also decides when to roll over the ESA to a qualified

family member. The Grantor and the Responsible individual can be one and the

same.

No money from a Traditional or Roth IRA can be rolled over into an ESA.

All ESAs are insured by NCUA up to $250,000 separately from other accounts that the

member maintains in the Credit Union.

Contributions

One Coverdell ESA can be opened per beneficiary, and a parent, grandparent or any

other person for any other person, can make a non-deductible maximum contribution

of $2000 per year.

Contributions are not allowed if MAGI reach certain amounts. See IRS.gov or call

Ascensus for limits. Contribution deadline is April 15 for the prior year.

Distributions

Qualified educational expense includes elementary, secondary and college expenses.

When the beneficiary turns 30 years old, the balance in the Coverdell ESA must be

distributed. The Coverdell ESA can be rolled over into an ESA for a broadly defined

family member of the original beneficiary, if the money is not spent for the designated

person. Family members of the designated beneficiary who are eligible to receive

unused funds include (but are not limited to) spouses, siblings, stepsiblings, nieces,

nephews, first cousins, parents, aunts, uncles, grandparents, children and

grandchildren. The new designated beneficiary must be under the age of 30 at the time

of the rollover, except if the new beneficiary is a special needs beneficiary.

Withdrawals from the Coverdell not used for qualified educational expenses may be

subject to both income tax and a 10% penalty tax.



64

IRA Share Account

Minimum to open $100.00

IRA Share Accounts cannot be pledged as collateral security for a loan, or as a source

of overdraft protection.

Forms Required

IRA Application-whichever applies (Traditional, Roth, Coverdell)

Transaction Receipt

Truth in Savings Disclosure


Contribution Direction form if opened between January 1st and April 15th

XP2 Transaction

IRA Plan link from Individual Summary. See XP2 Procedures

Procedures

1 Obtain the following items from the member:

− Completed IRA Application form.

− Funds to be deposited.

− Contribution Direction Form (if applicable)

− IRA Rollover and Contribution Form (if applicable)

2 The account is to be opened using the members present primary number

and adding a suffix 5 to denote IRA. Complete XP2 Retirement Plan

Opening.

3 Member is to receive:

− Copy of IRA Application

− Transaction Receipt

− Credit union Truth-in-Savings Disclosure and Agreement for IRA Share

Accounts.

− Schedule of Fees and Service Charges

4 Contributions received between Jan. 1 – April 15th, code “C” or “P” in XP2.

5 Forward all original copies to the IRA Administrator to check in

Ascensus.(Lamar Branch)

NOTE: For any questions pertaining to IRAs, call the Ascensus helpline at

(800) 356-9140. Choose option 6, and the Credit Union Organization Number is 23434.

The Credit Union ID Number is 31007.



65

IRA Plan-To-Plan Transfers

Guidelines

A Plan-to-Plan transfer occurs when a member moves IRA funds from one

Custodian/Trustee to another. There are two types of transfers:

- Custodian/Trustee to Custodian/Trustee

- Distribution and Redeposit-Rollover

The principal features of each kind of transfer are as follows:

Custodian/Trustee to Custodian/Trustee

− Member must sign transfer documents at receiving institution.

− Member cannot take personal receipt of funds.

− Check must be made payable to the receiving institution

Distribution and Redeposit (Rollover)

− Member must request the distribution directly from financial institution.

− Member will actually receive the funds.

− Member must redeposit funds into another IRA at a financial institution within

60 days of receipt to prevent income taxation.

Forms Required

See below

266BIRA Transfer In

1 In Ascensus/IRA Direct fill out the IRA Application if new IRA and the

Contribution and Investment Selection Form. If existing IRA, only need

Contribution and Investment Selection. Also need IRA Direct Transfer

Instructions. Obtain an IRA Statement or certificate on the account that is

to be transferred to us. Have member sign all forms and give the member

a copy.

2 Open the IRA account and place and alert message stating “when check

received from (name of institution), give to IRA Representative for

deposit.”

3 Photocopy the statement and forward the original IRA Direct Transfer

Instructions form to the financial institution along with a return envelope.

4 Contact the institution if funds are not received within 30 days.



66

5 Enter the information in IRA Direct and forward the original to the IRA

Representative to be checked in IRA Direct.

267BIRA Transfer Out To Another Institution

1 Obtain transfer documents from Successor Custodian/Trustee. Make sure

that there is an acceptance letter from the Successor Custodian/Trustee.

Do not process a transfer on a sight draft only.

2 Close account and make check payable to Successor Custodian/Trustee as

stated on documents.

3 Forward original documents to IRA Administrator.

4 All distributions on IRA accounts are processed by the MSR.

268BIRA Distribution/Redeposit (Rollover-Incoming)

1 Have member complete the IRA Express Application Form.

2 Obtain a copy of Passbook/Statement to prove that these funds are

actually IRA funds.

3 Open the account following the appropriate procedures for the type of IRA

selected by the member.

269BIRA Distribution/Redeposit (Rollover-Outgoing)

1 Obtain a completed withdrawal form from the member.

2 Close account making the check payable to the member only. Depending

on the age of the member, when closing an IRA Share, use the option " "

(IRA premature withdrawal) or " " (IRA normal withdrawal).

3 Notate on check "IRA".

Forward completed documentation and copy of withdrawal check to IRA

Administrator (Lamar Branch). All distributions on the IRA account are processed

by the IRA/Trust Department.



67

IRA Rollovers

Guidelines

A rollover occurs when funds are received from a "Qualified Plan" and "rolled" into an

IRA account. The member must receive a "Qualified Rollover Distribution" from a

qualified plan. Examples of Qualified Plans are pensions, Keoghs, or plans such as the

FSSP. The member must roll the distribution into the IRA within 60 days of receipt of

funds. There are two types of qualifying rollover distributions.

A distribution that represents a lump sum received in one taxable year

A partial distribution, if the distribution equals at least 50% of the individuals

balance in the qualified Plan.

A distribution that represents a lump sum received in one taxable year.

A member may receive a lump sum distribution as a result of:

− Attaining the age of 59 ½.

− Separation of service.

− Total and permanent disability.

− Death.

− And in certain cases, termination of a retirement or pension plan.

A lump sum distribution may be paid to an individual in more than one payment

provided all payments are received in one taxable year. In this instance the distribution

must be re-deposited into an IRA within 60 days of receipt of the last payment.

A partial distribution may be rolled into an IRA if:

− The distribution equals at least 50% of the individuals balance in the qualified

Plan.

− The distribution is not one of a series of payments, and,

− The member elects rollover treatment at the time and in the manner

prescribed by the IRS.

Note: Only employer contribution, deductible (pre-taxed) voluntary employee

contributions, and any interest/dividends earned on the plan may be rolled over.

Form

IRA Trust Application /Disclosure and Agreement

Rollover and Transfer Contribution Form



68

Procedure

Rollover (In)

1 Obtain a copy of plan breakdown from member's previous Qualified Plan

to determine eligibility.

2 Open the account following the appropriate procedures for the type of IRA

selected. When opening an IRA Share account use the option " ".

Note: These funds must not be commingled with any other funds.

Rollover (Out)

1 Follow procedures for IRA Distribution/Redeposit (Rollover-Outgoing).

2 When closing an IRA Share Account use the option " ". Notate on the

withdrawal check that these are IRA Rollover funds.



69

New Checking Accounts

Guidelines

A member may open more than one checking account under a single primary number.

A new checking account is initially opened under account number 2. Additional regular

checking accounts will follow under account numbers 3, 6, 7 and 8.

When there is more than one owner on an account, all funds deposited are owned jointly

and equally, regardless of the net contribution, with the rights of survivorship, with

rights of survivorship and POD or without rights of survivorship.

$25 minimum to open.

Monthly Statements

A descriptive statement, in accordance with Regulation DD requirements, is mailed

monthly to the member at the address of record. Original checks are not returned with

the statement; however, with the convenience of carbonless copy checks, reconciling

the account becomes easy. Copies of specific original checks are available upon request.

Check copies are $2.00 each. Check copies are also available free of charge on Home

Banking.

Overdraft Protection

When opening the account the member may select Overdraft Protection. Overdraft

Protection allows needed transfers to be made from available funds from the member's

savings or additional checking account within the same membership. Transfer charge

is $5.00.

Dividends

Dividends are earned on the daily balance of $2,000.00 from the date of deposit to

withdrawal, payable monthly. Share accounts maintained in different rights or

capacities, or forms of ownership may each be separately insured up to $250,000 by

NCUA.

Forms Required


Truth-in-Savings Disclosure


Important Information Regarding Courtesy Pay – Action Required

Receipt

Temporary checks, if requested by member



70

Procedure



2 On the Product Selection page, select Basic Share Draft from the Product

Template drop down menu.

3 Select Checking SD from the Product drop down menu. (The Reject

Overdrafts box will be selected on the Account Details page.)

4 Click box next to Checking SD in Product Search Results area.

5 Click on Add Product. See XP2 Procedures to complete Account Creation

Page.

6 Complete the appropriate Account Card or Account Change Card and get

member's signature along with deposit.

7 Personalized checks are to be ordered upon request of the member. Have

member select type of checks to be ordered. Because of truncation, advise

the member that their checks will not be returned to them and the use of

duplicate checks should be encouraged.


- Truth-in-Savings Disclosure

- Transaction Receipt.

- Starter Kit (temporary checks).

- Schedule of Fees and Service Charges

9 Explain the terms and conditions of the overdraft coverage selected.

10 Inform the member that payment for checks ordered will be automatically

deducted from their checking account.

11 Complete the signature card including date opened and member

identification (joint if applicable).

12 Order checks for the member (if applicable).

13 Account Card or Account Change Card is checked before archiving in

Nautilus.



71

Debit Cards for Minors

Guidelines

For minor members that have valid identification.

Parent/Guardian must be a joint owner on the account and sign the Minor Account

Affidavit.

Checking account does not qualify for Courtesy Pay—the system will not grant the

account Courtesy Pay until the member turns 18.

If the card is lost or stolen, must I.D. member to re-issue.



72

Segue Student Checking Account

Eligibility

A Segue Student Checking Account is available to all college level students ages

18 – 23 years.

$25 minimum to open

Valid student ID required

Works the same as a regular checking.

Once member reaches age 24, the account will be converted to a regular checking.

Procedure





3 Select Segue Student Checking SSD from the Product drop down menu.

(SNC denotes no courtesy pay.)

4 Click box next to Segue Student Checking SSD in Product Search

Results area.

5 Click on Add Product. See XP2 Procedures to complete Account Creation

Page.

6 Complete the appropriate Account Card or Account Change Card and get

member's signature along with deposit.

7 Personalized checks are to be ordered upon request of the member. Have

member select type of checks to be ordered. Because of truncation, advise

the member that their checks will not be returned to them and the use of

duplicate checks should be encouraged.


- Truth-in-Savings Disclosure

- Transaction Receipt.

- Starter Kit (temporary checks).

- Schedule of Fees and Service Charges

9 Explain the terms and conditions of the overdraft coverage selected.

10 Inform the member that payment for checks ordered will be automatically

deducted from their checking account.



73

11 Complete the signature card including date opened and member

identification (joint if applicable).

12 Order checks for the member (if applicable).

13 Account Card or Account Change Card is checked before archiving in

Nautilus.



74

Money Market Accounts

Guidelines

Eligibility

A Money Market Account is available to all members in good standing with the Credit

Union.

Minimum opening deposit is $2000.00. Members are allowed to deposit any amount to

a Money Market Account. All uncollected funds are subject to a hold of up to 7 working

days as stipulated in the Funds Availability Disclosure Statement.

Money Market accounts are subject to Reg D. No more than six (6) transfers or

withdrawals from the money market account to another account of the members, or to

a third party in any month by means of preauthorized, automatic or internet transfer,

by telephonic order or instruction, or by check or debit card are allowed. If the member

exceeds these limitations the account may be subject to a fee or be closed. 28

Dividends

Calculated on a 365-day basis, compounded monthly on the daily balance. If the balance

falls below $2000.00 the account will not earn any dividends.

Insurance

Money Market Accounts are insured by the NCUA up to $250,000 aggregate.

Loans

Funds on deposit in the Money Market Account CANNOT be pledged as collateral for a

loan.

Statements

Statements are mailed monthly and/or will be included with the members Savings

and/or Checking Account Statements.

Forms Required


Truth-in-Savings Disclosure

Rate and Fee Schedule

Line card if needed

295B



75

Procedure





3 Select Money Market-D62H3 from the Product drop down menu.

4 Click box next to Money Market in Product Search Results area.

5 Click on Add Product.

6 See XP2 Procedures for Account Creation.

7 Provide member with Schedule of Fees and Disclosures.

8 Complete membership form, line card, and deposit the funds into the

account. Verify that the form/line card is complete, initialed and signed.

Obtain and scan identification from the member.

9 Bring initial deposit to the Teller Department and obtain receipt for

member.

10 Print temporary checks and order checks if requested by the member.

11 Add account to Touch Tone Teller.

12 Account Card or Account Change Card is checked before archiving.



76

Overdraft Protection

Guidelines

The Credit Union offers overdraft protection above the membership requirement of

$5.00. The source can be the member's primary savings, special savings, prime

rewards savings, additional checking or money market accounts. The member has the

option to select the individual source or a multiple source protection package. Sources

must remain within the same membership.

324BXP2 Transaction

Account Summary - Overdraft



77

Courtesy Pay Policy

Courtesy pay is designed to eliminate embarrassment for the members from

returned checks, provide a safety net for unexpected overdrafts or emergencies,

help them avoid merchant return check fees, and create trust and loyalty with the

credit union. The Courtesy Pay service will pay checks and electronic items

presented on the checking account up to $500 per member, including fees ($30 per

transaction).

Exceptions can be made by senior management allowing items to be paid in excess

of the $500 limit under extenuating circumstances. EFFCU will disclose and charge

a fee per item paid into overdraft. The Paid by Overdraft fee is disclosed on the

Schedule of Fees and Charges.

EFFCU may refuse to pay an overdraft at any time, even if the account is in good

standing and even though we may have previously paid overdrafts on the account.

All account owners are jointly and severally liable for any overdrafts plus any fees

charged to the account.

Account holders are notified upon each occurrence of an overdraft by mail of the

negative balance and the fee assessed. All accounts that remain in a negative status

for 30 consecutive days will be removed from the program. All accounts that remain

negative for 45 days will be charged off. Circumstances may dictate that accounts

remain negative in excess of 45 days. Senior management can make exceptions to

the 45-day limit.

Members are offered an opportunity to repay any negative balance by establishing a

loan. Loans are offered as a collection tool and provide a means of systematic payments

to repay the negative balance. Loan terms not to exceed six months and Courtesy Pay

loans are offered at zero percent interest.

The maximum total dollar of Courtesy Pay advances EFFCU extends to members will

not exceed 5% of Capital.

EFFCU’s Courtesy Pay service does not constitute an actual or implied agreement

between the member and EFFCU. Nor does it constitute an actual obligation by

EFFCU. This service represents a purely discretionary courtesy that we may provide

the members and may be withdrawn or withheld by us at any time without prior

notice.

New Account Procedures

The Member Service Representative will discuss overdraft privilege options with the

member upon opening the checking or money market account. Courtesy Pay has

two levels: level one is coverage for checks and ACH/EFT items that attempt to

clear the account and level two is coverage for everyday ATM/Debit card

transactions. The member must Opt-In if they wish to have Courtesy Pay coverage

on their ATM/Debit card transactions.



78

Opening a Courtesy Pay Eligible Account:

Beginning on the Membership Summary page,


2 After selecting the Basic Share Draft template, select either Checking

Account-D2SD (SD), Segue Student Checking-SSD (CS), or Money Market-

D62H3 (H3) product from the drop-down list. Add Product.

3 From the Account Creation page, flag the account under opt-in option as

“yes” or “no”.

Note: The Courtesy Pay limit is not yet available for ATM/POS transactions and will be

approved/and or disapproved depending on set parameters after 60 days.

4 The “Reject Overdrafts” box on the Account Detail screen is automatically

checked upon opening the account.

5 XP2 will review new accounts after their initial 60 days to determine if they

are eligible for Courtesy Pay. All of the following parameters must be met:

✓ Open 60 days

✓ 18 years older

✓ No NSF’s in 60 days

✓ No loans delinquent greater than 30 days

✓ Minimum 15 transactions

✓ No Negative account balances

✓ No Bankruptcy



79

The program that searches for these parameters will automatically run Monday –

Friday. If the account qualifies, XP2 will turn on Courtesy Pay by unchecking the

“Reject Overdrafts” box.

Note: A minor’s checking account is opened as Checking Account-D2SD. The system

will not give Courtesy Pay until there is no longer a minor on the account.

6 A “New Account Activation” letter is sent to the member.

Courtesy Pay Limit Suspension

The limit of $500 is suspended by XP2 and the “Reject Overdrafts” box will be

checked automatically if the account meets one of the following parameters when

the daily report is ran:

✓ Accounts overdrawn 30 consecutive days

✓ Loans delinquent greater than 30 days

✓ Member deceased

✓ Bankruptcy

✓ Courtesy Pay loan becomes active

The credit union will send collection letters at 15, 30, 37, and 45 days for negative

balances.

Accounts overdrawn 45 days will be charged off by the Collection Department and

the debit card will be blocked.

Ineligible or Member Declined Accounts

Accounts that are never eligible for Courtesy Pay are Social Security Representative

Payee and Business Checking Accounts.

If the member does NOT wish to have their account access Courtesy Pay, the

account is opened under product “Checking Account-CNC.” Add the green alert to

the membership, “Member declined Courtesy Pay.”

Re-Opening Closed Accounts

Beginning on the Account Details page of the checking/money market account,

1 Update the open date to the day of re-opening.

2 Manually check the “Reject Overdrafts” box. (For an SD and H3 accounts,

the system will automatically give Courtesy Pay in this case unless

overridden manually.)



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Opt-In Form

The following Opt-In form is completed at account opening and any time the

member wishes to make changes to their election.



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Opt-In Maintenance

For existing accounts:

1. Update ATM/Debit Card OD Fee field on the Account Details page.

2. Update OD Fee Opt-In/Out Method field on the Account Details page.

3. If member does opt-in, update Plastic Cards tab to include negative limit. This

will need to be done for each card on the account.

This step is only completed if the member chooses to Opt-In.

UIn Person U: Complete and give the member the Courtesy Pay Opt-In Form. Give

the member the Important Information Regarding Courtesy Pay – Action

Required disclosure.

UBy PhoneU: Mail the member the Courtesy Pay Opt-In Confirmation Sheet and

the Important Information Regarding Courtesy Pay – Action Required disclosure.

UForm Received By Mail U: Send the form to be imaged. Mail the member the

Courtesy Pay Opt-In Confirmation Sheet and the Important Information

Regarding Courtesy Pay – Action Required disclosure.

Additional Information:

Steps 1 and 2 have to be completed for each checking account the member wants

the additional level of Courtesy Pay to cover. List each account suffix on the

Courtesy Pay Opt-In Form.

Once a member has Opted-In and decides to Opt-Out, the representative need only

verbal confirmation and will modify the account as necessary.

If a member disputes whether they have Opted In/Out, we will not spend time

researching daily work for authorization forms. Honor the member’s request and

complete the necessary steps.

Note: A balance inquiry at the ATM will not include the negative limit total. There is

no notification at the ATM that you are about to overdraw your checking account.



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Overdrawn Accounts/Accounts Showing Abuse

Guidelines

Unacceptable Trends

Members are responsible for maintaining their accounts in a satisfactory manner.

Accounts are monitored for trends showing abusive use of checking accounts, such as

kiting, excessive returned items (deposit reversals), checks drawn on non-sufficient or

uncollected funds, and accounts with overdrawn balances. Accounts reflecting

unacceptable trends are revealed by three primary sources of information:

1 SDA Exception Report (NSF or UCF checks drawn on the account of the

member).

2 Returned items (charge back of deposited items).

3 ATM

The responsibility for monitoring these accounts is in the Member Service Department.

Accounts that continue to show unacceptable activity are closed, and if overdrawn,

referred to the Collection Department that handles charged off accounts.

Charged off Checking Accounts

Once the checking account is overdrawn 45 days, it is closed and the balance owed is

reported to Telechek and Chexsystems. If the member repays the amount owed plus

the $5.00 membership deposit, they can still use their savings account. Notify the

collections department once the member pays the amount owed.

Once the balance is repaid, the checking account may be re-opened with approval from

Chexsystems and management.



83

Accepting & Processing Check Orders

Guidelines

Each office is required to place check orders initiated through their offices directly with

"Harland Online Check Center." When a check order is placed the member should be

informed of:

− Approximate cost of the checks selected.

− Estimated time allowance for printing.

− Method of payment (i.e., charge will be deducted from the member's account).

Operation Begins

Member submits a check order

Member opens a new account

Member reorders on an existing account

Procedures

All checking accounts are to be under the credit union routing and transit number:

313177785

For check ordering purposes, the checking account SDC number is turned in to 14 digits.

The Suffix (1) will always be used after the SDC number and the check digit will be

calculated and placed after the suffix (1).

Example: Member # 123951 plus suffix 1

The total MICR line would be :313177785 : 00000012395117

Check digits are figured by using IMM Integrated Check Digit Calculator. Enter the

SDC# and the number 1 in the account number field and press calculate.



84

Member File Information

− Member & Joint Owners: verify that all names on the order form are owners

on the account.

− Address: verify that the address on the checks matches XP2 Address Page.

Members may choose to have their checks mailed to the credit union. Use

7025 Eastex Freeway, c/o ________ Branch, Beaumont TX 77706

− Name change: If the member's name differs on the order from the system

information, other than spelling, refer to the "Change of Ownership" section.

− Business name: If the account is a business account, verify that the name

on the check order form matches the information on the system.

− Account Number: Verify the accuracy of the account number.

− After verifying all information, log into Harland and verify against previous

order. Make changes if necessary.

− If the member is present, have them review the order form to verify

information is correct or to make us aware of any corrections that need to be

made.



85

Check Printing Errors

Guidelines

In the event of a printing error caused by the credit union or the check printing company,

a reorder is processed at no cost to the member.

Tactfully encourage the member to return the incorrect checks for proper destruction.

If this is not possible, advise him/her to destroy them by burning or shredding.

310B

Procedure

1 Each office processes their own orders.

a. Prepare check order form as specified by the member. If reorder is dropped off

or received in the mail, verify information against members account. If the

information in the system and on the check order differ, contact member.

b. Manually update the Harland Online Check Center.

c. Select rerun and select the reason for rerun.



86

Check Order Billing Errors

Guidelines

When check order charges are duplicated or there are other apparent billing errors,

reimbursement is provided by the check printing company.

31

Procedures

1 Verify the dates and amount of the multiple or incorrect charges on the

member's statement.

2 The Credit Union employee assisting the member reimburses the members

account. A deposit is credited immediately to the member’s account using

GL# 0264-0020. If it is an error on a Plus Club member use GL# 0271-

0003.



87

Check Orders Lost In the Mail

Guidelines

Imprinted check orders are shipped by the printing company to the member via U.S.

Mail (third class) unless special instructions are notated on line requesting First Class

mail delivery.

Three to five working days should be allowed for Third Class mail delivery on the

“Custom” style check. Specialty orders could take from seven to ten working days.

Undelivered check orders exceeding this time frame should be considered lost in the

mail.

Upon notification of an undelivered order from a member, complete the following steps:

1 Research order date, pull copy of order and confirm mailing address with

member.

2 Log on to Harland to rerun the order at no charge for the member. Choose

Lost in Mail (Never Received) for the rerun reason. DO NOT USE THE SAME

STARTING NUMBER on the replacement order. The numbers should begin

with the next calculated check number.

3 Place a stop payment on the series of checks missing (at no charge), and

notify the member not to use the checks in that missing series, if received.

Member signs Stop Payment Request form.

4 Offer member the alternatives of where they would like their next box

mailed:

a. Send to Credit Union.

b. Send to an address other than the original address.

c. The same address.



88

Shredding Checks

Guidelines

Call the member to address the problem or place a memo on account to have them

contact an MSR/MSR II about their check order. The checks are kept in the teller vault

until the member comes to pick them up. If the member does not pick up the checks

in the allotted time, the checks are shredded.

Log Required

Check returned to credit union log

Procedure

A designated member service representative will be responsible for documenting any

boxes of checks returned on a day-to-day basis. The documentation is written on the

front of the box.

1 Write the date the checks were received in the office, the employee’s

initials, letter mailed and the shred date.

2 A memo is added to the members account so that if their account is pulled

up, anyone will be able to know there are checks in the vault. The memo

will be set to fall off at the end of the given week.

3 If the checks are still in the vault after (2) week and there has been no

response from the member, the information is entered in the log and the

checks shredded.

4 The member will be responsible for paying for another check order if they

want to re-order. They will not get reimbursed for the 1st order that wasn’t

picked up.



89

Temporary Checks

Guidelines

When a new checking account is opened, the member will receive temporary checks in

a starter kit. The member may need to order additional temporary checks and may do

so at no charge. Members requesting temporary checks must have a positive balance

in the account. Temporary checks are issued by the Member Services Department and

must be maintained in a secure location at all times.

Procedure

1 When the member initially makes their request for temporary checks;

a. Properly identify the person as the proper person to receive the

checks.

b. Review balance of checking account, Payroll deduction allocation

Record/History and remarks field.

c. Place Contact on membership summary noting temp check #s

printed.

Printing Temporary Checks

2 From Checking Account Summary, click on Links to access N_eAtlas

link.

3 Click on LaserChex tab.



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4 Make sure information is correct.

5 Fill in Number of Checks to Print.

6 Click UProcess LaserChex U.



91

7 Go to File menu and select Print. Select None on the Page Scaling drop

down box. Uncheck the box next to auto rotate and center. Select the

correct printer. Click OK.

The reasons temporary checks may be printed at no charge are:

− New account.

− Second set for new account.

− Check order placed through Harland, but haven’t been received.

Note: For existing checking accounts, if member has not ordered checks through

Harland, a fee is charged for temporary checks.



92

Checking Account Statements

Notification of Errors/Questions On Monthly Statements

Checking Account statements will be prepared and mailed on a monthly basis.

Occasionally, a member will dispute the balance of his/her account or will request

information about their monthly statement. The Fair Credit Billing Act contains the

rights and responsibilities of the account holder, as well as some of the obligations of

the financial institution issuing statements.

As directed by the "Act" the member is informed monthly of his/her Billing Rights and

Responsibilities via a summary that appears on the reverse side of their account

statement.

The following are excerpts from the summary:

Member Responsibilities

1 If the member thinks that the "statement is wrong, or if they need more

information about a transaction on the statement, they must contact the

Credit Union."

2 The Credit Union must hear from the member in writing no later than 60

days after "the first statement was mailed on which the error or problem

appeared.” The letter should state:

− Members name and account number.

− The dollar amount that cleared the account and date of the suspected error.

− A description of the error, if possible.

− Signature & Date.

3 The member "can telephone, but doing so, according to the act, does not

preserve the member's rights."

Credit Union Responsibilities

1 The Credit Union is obligated to acknowledge the member's letter within

30 days, unless it was corrected. Within 90 days, the error must either be

corrected, or an explanation must be made why the statement is correct.

2 While the account is under investigation, the member does not have to

pay any questioned amount, but he/she is obligated to pay the parts of

the statement that are not in question.

3 If it is found that the Credit Union made a mistake on the statement, the

member does not have to pay finance charges related to the questioned

amount.



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4 If the Credit Union did not make a mistake, the member will be expected

to pay finance charges, plus make up missed payments on the questioned

amount. In either case, the Credit Union will send a statement to the

member indicating the amount and date due.

5 If the member fails to pay the amount that the Credit Union has

determined as due, and if the explanation does not satisfy the member,

and the member writes a letter within 10 days refusing to pay, the Credit

Union can report the payment history to the Credit Bureau.

6 On Electronic Transfers, we must hear from the member no later than 60

days after we sent the first statement on which the problem or error

appeared. We will tell the member the results of our investigation within

10 business days after hearing from them 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

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 credit 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.



94

Checking Account Dividends

The Board of Directors in accordance with the Bylaws of the Credit Union declares the

Dividend Rate.

The dividend rate is declared by payment of dividends on checking accounts: Dividends

are calculated on balances over $2,000.00 and paid monthly.

Dividends are calculated on the actual number of days in the calendar year.

Formula for Calculating Dividend (Example)

Balance of $2,000.00 and over X rate divided by 365 X (number of days) funds are

on deposit.



95

Verification of Check Funds

Guidelines

Verification of checks are only done in person. The check must be brought in for

negotiating. We do not allow funds availability to be verified over the phone. Our

member’s confidentiality is priority.



96

Stop Payments &

Unauthorized or Authorization Revoked ACH Debits

Guidelines

Members may request a stop payment on an individual check or on a group of checks,

provided the check has not been paid. In addition to checks drawn on these accounts,

stop payments can be placed on debits that are automatically deducted from the

member's account.

There is a nominal fee charged for each stop payment placed on the account. If a

member has a group of checks of which he requests stop payments, and the checks are

in numerical sequence, they will only be charged for a single stop payment.

We will accept an oral authorization only on one time stop-payment requests by phone;

however, the member must forward written authorization to the Credit Union within 14

calendar days. For unauthorized or authorization revoked ACH debits, the form must be

signed prior to the stop setup. Branches are responsible for entering stop payments

(received at their offices) into the system and forwarding authorization to the Main

Office.

Forms Required

Stop Payment Request or

Written Statement of Unauthorized Debit (ACH)

XP2 Transaction for Checks

Stop Payment Maintenance Page and ACH Stops Tab

XP2 Transaction for ACH

332BMembership Level – ACH Stops Tab

333BProcedure

1 Stop payment requests on checks:

a. Verify that check has not already cleared.

b. Complete Stop Payment Request form by asking the member for

the information required on the form.

c. Verify all of the information with the member.

d. Obtain members’ signature.

e. Complete transaction in XP2. (see XP2 Procedures)



97

2 Stop payment requests on ACH (A One Time Stop Payment):

a. Check computer to determine source of debit. The source of the

debit is indicated by the assigned group number. This is found on the

Account History Detail. Never set up a stop payment on Group

200 or 3299.

*If Processing Group Number is 200, a group number must be

assigned. Use the lookup table, or get with the Accounting

Dept.

*If Processing Group Number is 3299, it is an item the

member has set up through the credit union e-bill pay. If the

member is having a problem with a payee set up on the credit

union’s e-bill pay, they can still cancel it if it is pending. If the

merchant has already been paid, they will need to contact the

merchant, or try Partner Care at (844) 785-4484. E-Bill pay

experts are Tayla Davis and Suzette Morgan.

b. Complete Stop Payment Request form by asking the member for

the information required on the form.

c. Verify all of the information with the member.

d. Obtain members’ signature.

e. Complete transaction in XP2. (see XP2 Procedures)

3 Unauthorized ACH Debits or Authorization Revoked ACH Debits:

a. See step a from above.

b. Complete Written Statement of Unauthorized Debit (ACH) by

asking the member for the information required on the form.

c. Verify all the information and obtain members’ signature.

d. Complete transaction in XP2. (see XP2 Procedures)

e. Note: If the ACH item is being returned, a refund is possible up to 60

days from the current date.

4 Stop payment requests on Paper Drafts:

“8000-8999" cleared by draft/check (If the check numbers, for the members

share drafts have reached 8000, the stop must be by amount for paper drafts.)

a. If stopping paper draft by check number and amount, one form is

completed; however, two stop pay transactions must be set up. One

by amount and one by check number.

5 Further Responsibilities:

a. Co-worker is to review the form and confirm that the stop payment

was entered into the system.

b. Charge member's account for stop-payment fee.

i. Terminal transaction, debit the member's account $30.00 for

check stop payment and $30.00 for ACH and Electronic Drafts.



98

ii. Exceptions: all stop payment orders are to be charged,

except: closed accounts, stop payments deleted, employees,

collection items, checks not received from check printer

c. If stop payment request is taken by phone, advise the member

verbally of the 14-day grace period on stop payment requests. The

stop payment will be deleted if the signed form is not received

within 14 days.

d. Mail stop payment form to member and send a return envelope to

your attention.

6 Send signed document to accounting.



99

Check Copy Requests

Guidelines

Check copy requests can go back for 7 years. Members may come in/call the credit

union to obtain copies of their paid checks for a fee of $2.00 per copy. Check copies

are available to owners on the account only. Members may also print out free copies of

paid share drafts from our Online Banking. A history of six months can be accessed from

the online banking site.

Most check copies can be found in the member’s account history. If not there, check

copies can be found in Nautilus from August 2015 forward, or Catalyst Corporate,

Tranzact prior to August of 2015. TranZact holds seven years of history.

Member Services Platform Transaction

Access Account

Procedure

1 Access member account in XP2

2 Click on account history link. Check copies are available in the history. If

the check link does not work, check copies are located in Nautilus from

August of 2015 forward.

3 Sign in to Nautilus. Click on Checks – On Us & Related Images, and Check

Image.

4 Search by Member Number. You can narrow the search using the date

ranges.

5 For checks maintained at Catalyst Corporate Tranzact proceed as follows:

6 Note date check cleared and trace number in account history.

7 Log into Tranzact.

8 Select Item Processing.

9 Select View Image.

10 Enter date check cleared and trace number.

11 Print check copy.

339B



100

Procedures for share drafts cashed at the Credit Union.

a. Obtain the following information from the member’s history and

look up in Total eReceipts or Nautilus.

b. Member number

c. Check number

d. Amount of Check

e. Inquire on members account as to clearing date of check and confirm

paid amount of check

f. Teller Id

Total eReceipts

1. Click Search

2. Search by month and year, a specific day, member number or teller number

3. Click Search Receipts.

Nautilus

1. Select Qwik Receipt in the Document Type Groups.

2. Select Qwick Receipt in Document Types

3. In the Keywords section, search by Member Number or Teller Number.



101

Check Encoding Errors

A check encoding error occurs when a check clears for a different amount than the

member wrote the check for. For example, a member writes a check to Entergy for

$118.09, and it clears for $118.90.

Procedure

1 Review member’s account history to obtain check number, amount, date

paid and trace number.

2 Pull check copy from TranzAct.

3 Determine if there is a discrepancy with the amount paid. Be sure to go off

of the legal line, not the numerical amount.

4 To make the correction with Catalyst Corporate, in TranzAct, click on Item

Processing.

5 Click on SD Adjustment.

6 In the Adjustment Type drop down list, choose Encoding Error.

7 Fill in Paid Date.

8 Fill in Sequence # (Trace number).

9 Fill in Amount Good For (the correct amount).

10 Click Submit. You will be given a confirmation number. You may keep this

for your own records.

11 To correct the member’s account, deposit the wrong amount to the checking

account using GL#0744-0010. Then withdraw the correct amount from the

checking account using the same GL. Effective date both transactions, and

put a description (i.e. Correction ck# 5005 s/b $118.09).



102

Check Paid Twice on Account

If a member claims the same check number has cleared more than once, verify this

by looking over the member’s checking account history. Obtain the date, check

number, trace number and amount of both items.

Procedure

1 Correct the member’s account by depositing the duplicate amount from

GL#0744-0010. Be sure to effective date the deposit and put a description

on the transaction (i.e. Correction Ck #5005 cleared twice).

2 To make the correction with Catalyst Corporate, log in to TranzAct.

3 Click on Item Processing.

4 Click on SD Adjustment.

5 In the Adjustment Type drop down list, choose Item Paid Twice.

6 Fill in the 1st Paid Date.

7 Fill in the 1st Sequence # (Trace #).

8 Fill in the 2nd Paid Date.

9 Fill in the 2nd Sequence #.

10 Click Submit. You will be given a confirmation number that you may keep for

your records.



103

ATM Disputes

Guidelines

Members may have an ATM dispute because of machine error, or fraud or theft.

Whatever the case may be, an ATM Inquiries form must be thoroughly completed

and signed by the member if present. If the member is calling, a form can be faxed

or mailed to the member. The completed form is forwarded to the Accounting

Department and they will research the transaction. If the member claims the funds

were stolen, a police report is encouraged to be filed.

Forms Required

ATM Inquiries

Procedure if Machine Error

1 Review account history to determine the date, time, location, and amount of

transaction disputed.

2 Print the history to forward to the Accounting Department along with the

ATM Inquiries form.

3 Make sure the member explanation is detailed.

4 Fax the form to the Accounting Department and forward the original via

inner-office envelope.

5 Explain to the member that the funds will be credited to their account once

the Accounting Department has determined what happened. (usually a few

days)

Procedure if Fraud/Theft

6 347BFollow steps 1 through 4 from above. If available, a copy of the police report and

the detectives contact information should be included.

7 348BBlock the ATM/Visa Check Card as stolen and reissue a new card.

8 349BThe length of time it takes to refund the member depends on the investigation

time.



104

Power of Attorney (POA)

A Power of Attorney is a written instrument authorizing a person to act as the agent or

attorney-in-fact for our member. It authorizes the agent to act on behalf of the member

(principal) and can be limited to special functions.

A Power of Attorney is valid only during the lifetime of the grantor (member), or until

revoked by him/her.

After the Power of Attorney has been duly signed by all parties, grantor(s) and attorney-

in-fact, the appointee signs documents/checks as follows:

Harry V. Brown POA for Mary Jane Smith

The credit union attorney, Gary Coker, must approve all Powers Of Attorney for validity.

Kimberly Stephens and Claudia Jaume also work with him.

We only accept a Durable Power of Attorney. A durable power of attorney remains

in force even after the member/principal later becomes mentally incapacitated.

Powers of Attorney must be accepted by financial institutions unless a specific reason is

found to deny acceptance. This would be determined by Gary Coker.

An electronic copy or a photocopy is as valid as the original.

Forms Required Durable Power of Attorney

Certification of Durable POA by Agent (Notarized Forms) (MS_Affidavit_POA)

Policies

The Credit Union has the following policies on a Power of Attorney:

1 The Power of Attorney needs to be notarized elsewhere when presented

for use at EFFCU. In other words, we do not notarize a power or attorney that

will be used on a member’s account.

2 No agent can delegate authority through a second Power of Attorney.

3 Joint Tenancy accounts require that ALL owners of the account authorize

the Power of Attorney.

4 Power of Attorney is unacceptable where minors are concerned.

5 No agent can make changes to or create beneficiaries or survivorships on

an account.

6 Transactions or updates on accounts can only be done at the credit union,

not over the telephone.

7 Power of Attorney ends when the principal individual dies.

8 Durable POA’s approved by Gary Coker are allowed access to Safe Deposit

Boxes.



105

Procedures

For any account, new or old, when a Power of Attorney is claimed, the Certification

of Durable POA by Agent (Notarized Forms) (MS_Affidavit_POA) form must be

completed, presented and filed with the Credit Union.

1. When presented with a Power of Attorney, read over it to ensure it is a Durable Power

of Attorney.

2. Get the presenter’s valid drivers’ license and contact information, and let them know

you will be contacting them once the POA is reviewed and approved by credit union

council.

3. E-mail the Power of Attorney to [email protected], [email protected]

and Carbon Copy (cc) [email protected], Quality Assurance

([email protected]). Include a summary of what the presenter intends to do with

the member’s account, and your contact information so someone from Gary Coker’s

office can get back with you on how to proceed.

4. It can take up to 10 business days to hear back from our attorney. Please do not call

the attorney’s office as soon as you e-mail the Power of Attorney. They will respond as

soon as possible.

5. If Mr. Coker denies the acceptance of the Power of Attorney, a form will be e-mailed

to you to print on our letterhead. Mail that to the member’s address on file. A copy

needs to be imaged as well. Place a contact on the member’s account noting that the

Power of Attorney was denied and why.

6. If Mr. Coker approves the Power of Attorney, place an alert on the member’s account.

(i.e. Jane Smith is Power of Attorney over (member’s full name). POA executed on

________ date. Gary Coker reviewed and approved the Durable Power of Attorney. It

has been scanned in to Nautilus.) Type the names the exact way it is listed on the POA.

7. Call the attorney-in-fact to let them know it was approved/denied.

8. When the attorney-in-fact comes in to conduct business, the Certification of Durable

POA by Agent (Notarized Forms) (MS_Affidavit_POA) form must be signed and

notarized. This is done each time they come in.

mailto:[email protected]





106

Forgery of Maker's Signature (Drafts)

Guidelines

A potential forgery is a draft (check) drawn on a legitimate account in which the

signature on the draft appears to be the signature of the account owner(s), but in reality

is the signature of an unauthorized signer. A temporary draft signed by someone other

than the account owner(s) is also considered a forgery.

When an alleged forgery is presented, other than over the counter, it must be returned

along with an Affidavit of Forgery within 24 hours. After the 24-hour reclamation period

has passed, it will not be accepted as a returned item, and will need to be sent for

collection. An Affidavit of Forgery is required in order to file a claim with the bonding

company.

Forms Required

Affidavit of Forgery

Forgery Proof of Loss (if applicable)

Police Report or Case Number (if available – highly recommended)

Copy of returned or Paid check, and or signed receipts.

Procedure

The MSR Department is responsible for obtaining the signed Affidavit of Forgery and

related documents as outlined in procedures #1 through #9 below.

The forgery claim is then investigated and reimbursed (if applicable). After the

investigation, the original documents are forwarded to CUNA for bond claim filing with

CUMIS Insurance provided the collection item was returned due to untimely manner,

and the original item was cashed at the Credit Union

1 Pull check copies in order for the member to verify the authenticity of the

signature.

2 Compare signature card on file. If the signature is proven to be valid, a

service fee will be assessed for the copy.

3 Obtain statement showing the date the draft/check was paid, and a stop

payment order, if appropriate.

4 Request the maker of the purported forgery to compare the signature on

the copy of the check; if declared "forged", then obtain a notarized

Affidavit of Forgery and a statement of circumstances written by the

member, giving details about the check(s), i.e., when or where check(s)

were lost or stolen, identifying features or any unusual events or

circumstances, and request the Police Case number from the member.



107

5 If the item was cashed at the Credit Union, send all originals along with a

Police Case Number to Accounting, and upon approval Accounting will give

credit to the member’s account.

6 If the item was returned insufficient, reimburse all charges, place a stop

payment on the checks, which were lost or stolen. A fee for the stop

payment will not be accessed. Give the member an Affidavit of Forgery to

be given to the Merchants.

7 Formal proof of loss must be filed with CUNA by the Accounting

Department.

Proceed as follows:

1 Complete appropriate "Proof of Loss" claim form.

2 Include police report and all related information, if applicable.

3 Originals are sent to Accounting.

4 Claim will be mailed, and finalized by the Accounting Department.



108

Forgery of Endorsement (Draft)

Guidelines

If an endorsement on the reverse side of a draft is termed "forgery" and has been

allegedly signed by an unauthorized person, the original intended payee is entitled to

recover by making a claim explaining the circumstances, and filing a notarized Affidavit

of Forgery.

Under the general statute of Limitation laws covering "forged endorsements", the payee

is protected up to seven years and can make claim at any time within the seven-year

period, even though the check was paid.

When a forged endorsement claim is presented to the Credit Union, the MSR

Department is responsible for interfacing with the member (maker) and the payee to

obtain the notarized Affidavit of Forgery from the payee, and process the claim for

reimbursement as shown below.

Forms Required

Affidavit of Forgery

Proof of Loss Forgery

Copy of check

Procedures

Checks negotiated through another financial institution:

1 Pull check copy.

2 Pull statement showing check paid, copy of stop payment, if appropriate.

3 Send an Affidavit of Forgery to the payee, along with a copy of the check

(draft). Payee must complete the affidavit in his/her own handwriting,

have it notarized and return it to the Accounting Department at the Main

Office for processing.

4 After receipt of the notarized Affidavit, credit the member’s account if

applicable.

5 Send copy of check and affidavit to Accounting for collection.

6 Upon reimbursement from the endorsing bank, credit amount to the GL#

0726-000.

7 Maintain copies for file.

8 Checks negotiated at a Credit Union Office:



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Follow steps 1 through 4 above and continue as outlined below.

9 Research account to determine how and when the check was processed.

If cashed, note the teller's name, number and possible approving staff

member's name.

10 Submit documentation to the Department Supervisor.

11 Forward copies of all documents to the Administration Office for record

retention.



110

VISA Card Disputes

Guidelines

The following procedures apply to VISA credit card and check card transactions

used as credit. (Signature based debit card transactions)

Fraud is the act of making a purchase using someone else’s credit card information.

If the member has fraudulent charges on their VISA, a dispute letter is written.

The letter needs to include the following information:

- Did the member authorize the charges?

- Did they contact the merchant? If so, when and whom did they speak with

and what was the result?

- Was the card in their possession?

- A list of transactions with dates, amounts and names of the merchants.

- The card number.

- If the card was stolen, explain the incident. Was a police report filed? If so,

include the case number and police department information.

- What is the best contact number for the member? (Provide as much contact

information as possible: phone number, email address, alternate phone

number, work phone number etc.…)

- The letter must be dated and signed by the member.

If fraud is not involved the member should first try to resolve the item with the

merchant. Situations such as the wrong amount charged, the same transaction is

charged twice or a recurring charge that needs to be cancelled, can all be taken

care of by the merchant. If the merchant is going to issue a credit, it must be done

within 15 days.

If however, the member contacts the merchant and they do not issue a credit, the

credit card department will then handle it. A dispute letter needs to be written.

Copies of transaction receipts should be included with the letter.

When a letter is submitted for a charge that was authorized by the member (wrong

charge posted, item was not received) have the member include all correspondence

from the merchant. I.E. Receipt of purchase, shipping notifications or order

confirmations, etc.…

Forms Required:

Dispute Letter



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Fraud:

1. Determine which transactions need to be disputed.

2. Block the card the fraudulent transactions cleared on via Integrated Desktop.

3. Help member with Dispute Letter.

4. Scan in forms to credit card department. Use e-mail address:

[email protected] Type Member Number and Member’s Name in

the subject line.

5. Forward the originals.

6. The credit card department will issue conditional credit while the charges are

being investigated. Disputes are worked in the order they are received.

7. If fraud is not proven during investigation, the transactions will be re-posted

to the account. (Any provisional credit will be revoked.)

VISA Check Card – Debit

Forms Required:

Unauthorized ATM Inquiries

If a member is disputing an item processed as a debit (PIN based transaction) an

Unauthorized ATM Inquiries form is completed and handled in the Accounting

department.




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VISA - Out of Town Notices

In an effort to battle fraudulent charges, VISA blocks all charges from foreign

countries from posting to a member’s account. VISA also monitors any unusual

activity, and will block transactions until they can be verified by the member.

When a member is travelling, it is in their best interest to let us know where they

are travelling and what dates they will be gone.

Procedures:

Compose an e-mail to the credit card department at [email protected].

Type the member number and member’s name in the subject line.

Advise the credit card department of the member’s plans for travel so they can

notify VISA.




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WireXchange

Guidelines

A member may send funds from Education First FCU to other financial institutions for

credit to their account or another recipient’s account by a wire transfer.

This is one of the extended services offered to members, and the operation is completed

by the Credit Union's subscription and participation in an electronic wire transfer system

controlled by the Federal Reserve Bank called WireXchange.

The member authorizes the Credit Union to transfer funds as described herein and debit

the members account in the amount transferred, plus applicable charges.

Note: OFAC must be checked if the wire is being sent to someone other than a member.

Information Gathered

- Name and address of institution the wire is going to.

- Institution’s routing number.

- Name of person wire is going to and their primary address on the account of the

receiving FI.

- Account Number of person receiving wire.

- Phone number to contact member in case there is any trouble with the wire.

- What forms of identification were used to verify member.

Entering a Wire

1 Check the member’s account stop codes and alerts. If the member has

active stop codes, a supervisor must remove them before the wire will

complete.

2 Log in to WireXchange:

https://wirexchange.goxroads.com/wxonline/Login?envir=313177785

3 Go to the tab “Wire Transfer.” Hover over “Wire Entry/Verification” and

select “Search ABA Directory.”

https://wirexchange.goxroads.com/wxonline/Login?envir=313177785



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4 Search the directory by entering the Receiving Financial Institution’s routing

number, Submit.

5 Verify that the information retrieved matches the information the member

provided and select New Wire-Long Form from the Action column.

6 Enter the account that the funds will be debited from. (Ex. 12345-2) Enter

the amount the member is sending. Continue.

Note: Wire fee is only waived for wires initiated by Mortgage or Lending.

7 Verify Originator information according to member information in XP2.



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8 Enter the Beneficiary, ID Code of “D-DDA account Number”, Identifier

(account number funds are being wired to), and Address. (The beneficiary

address is the primary address on the receiver’s account at receiving FI.)

9 “Reference for Beneficiary” and “Originator to Beneficiary Information”

sections are typically used for notes for wires generated for loan purposes

such as file numbers, names, loans purchased, etc…

10 Memo section is for internal use only. List the contact/call back number for

the member.

a. Wires over $3,000 must have a reason inputted.

11 After reviewing all the information, submit.



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Verifying a Wire

Wires $5,000 and more must be verified by a supervisor. (The supervisor will verify

all the information with the member. A contact number for the member should be

entered in the memo line of the wire form.)

Once logged in to WireXchange,

1 Click the Verify Wires link on the left side of the home screen. (The link can

also be found in Quick Links.)

2 Click the link of the wire amount for the wire that needs verification.

3 Review the information entered. Be sure there are no errors or missing

information. Mark the Approve radial. In the Memo Notes section, input

how the wire was verified. (Ex. Verified DL/DOB/Address/Wire Info.)

4 Enter 5 digit Verifying PIN. Approve.

Note: Some wires may fail OFAC but could be a false positive. The reason for failure

will have to be included in OFAC reason.

NOTE: Verifying

information can be

SSN, DOB,

Address, Phone #,

DL #, types of

account, types of

loans, last

transaction, last

payment on loan,

etc.…



117

Release an Outgoing Wire

Check the member’s account for any stops/alerts. (Green, yellow, or red.) If there

are any active, it will prevent the wire from completing via regular means. The wire

will need to be overridden.

Once logged in to WireXchange,

1 Click the Release Outgoing Wires link on the left side of the home screen.

2 Check the box for the wire being released. Choose the option to “post.”

a. If the wire release needs an override due to stops/alerts on the

member’s account, select the option “override” from the drop-down.



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Western Union Wires

To send a wire via Western Union, we need to know the name of the person receiving

the funds, and the city and state to send the wire to. The wire transfer fee is charged

to MI Code WF. The wire amount is charged to MI code WA.

The credit union can receive a Western Union Quick Collect Wire. The member

gives our city code, BAEFCU, and their name and member number. Funds are

available for immediate credit as long as the funds are received by 5:00pm. There

is a $5.00 fee.



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Western Union & Wire Xchange Stopped

If the Member requests to send a wire to another financial institution or Western

Union and WireXchange is down or alerts/stops is preventing the member services

representative to complete the wire.

Note: OFAC must be checked if the wire is being sent to someone other than a member.

Forms Required

Funds/Wire Transfer Request

Procedure

Accept the request for the transfer of funds, and confirm the identity of the

member. Complete Wire Transfer form, withdraw funds from member’s account,

and check OFAC system if funds are being sent to an account other than the

member’s. All wires $5,000 or more credited to an account other than the

member's account are reviewed and approved by a supervisor.

Forward authorization to the Accounting Department. If the wire request is

received before 3:00 p.m., the wire is sent the same day. The cut-off time for

Western Union wires is 5:00 p.m.

XP2 Transaction

Beginning on the Financial Platform page accessed through the Individual

Summary:

1 Enter the amount of the wire transfer fee in the Withdrawal field of the

account.

2 Click on the Miscellaneous Fee Code drop down box, and choose WF

Wire Transfer Fee.

3 Enter the fee amount in the Charge field.

4 Click on Submit.

5 Enter the amount of the wire in the Withdrawal field of the account.

6 Click on the Miscellaneous Fee Code drop down box, and choose WA

Wire Transfer Amount.

7 Enter the wire amount in the Charge field.

8 Type description in History Description field. (Ex: Wire to Chase Bank

Atlanta, GA ABA: 123456789)

9 Hit Enter or click on Submit. Review and Post All.



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Direct Deposit Authorizations/Miscellaneous

Guidelines

Members may authorize a direct deposit of their payroll check receivable from various

sources. Their payroll department must originate these requests provided they

participate in the Automated Clearing House (ACH) program.

To commence this process, the depositor's payroll department will obtain a deposit slip

or voided check from the member showing the required routing and transit number and

account number, or the Credit Union can provide a Payroll Deduction/Direct Deposit

Authorization Form.

Note: Explain to the member that the deposit slip/voided check must have the proper

transit and routing number, otherwise the deposit will not post.

Forms

Payroll Deduction/Direct Deposit Authorization

Procedure

1 When a member/depositor requests a direct deposit of regulated payroll

funds from another employer, advise him/her to contact the employer’s

payroll department to determine that they do participate in this program.

Also, verify that the correct routing and transit number appears on the

member's deposit slip or checks.

2 If the other employer is equipped to relay deposits to the member's

account, they normally execute the proper procedures. However, if they

expect the Credit Union to complete the form first, then proceed to assist

the member as follows:

3 Obtain the correct receiving account number from the member.

4 Verify the Credit Union's transit number "313177785", and member number.



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Payroll Allocations

Guidelines

Members can have part or all of their paychecks transferred into the credit union and

deposited to their accounts. A member can also request allocations to other accounts

or loans, triggered by the payroll deposit. XP2 supports two types of direct deposits:

Automated Clearing House (ACH) transactions and Automatic Deposits. It is important

to know the difference between an ACH transaction and an Automatic Deposit, because

they are handled differently.

An ACH transaction is a funds transfer that has been processed by the Federal Reserve

and sent to the credit union in an electronic file.

An Automatic Deposit is a transfer that has not been processed by the Federal Reserve.

It comes into the credit union in the form of a physical check and a list of members,

account and amounts. Accounting will go through the list to verify the amounts and

create “links” to the member’s accounts. When the check is deposited, the automatic

deposit is posted, transferring the funds to the member’s accounts.

For both ACH and automatic deposits, once the money is transferred into an account,

allocations are made. See XP2 Procedures manual for specific instructions on how to

set up Allocations.

Members are required to sign a new authorization form each time they wish

to set up an allocation or change an existing allocation.

Any MSR representative can process the authorizations for this service. All initial

deposits must go into the primary member’s account before allocating funds to another

account.

Forms Required

Payroll Deduction Direct Deposit Authorization

XP2 Transaction

Membership Level – Allocations



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Procedure

1 Upon receipt of the payroll deduction authorization verify completeness of

the form, and compare data to the existing payroll inquiry, when

applicable; Check for:

a. Complete payroll number.

b. Sufficient payment to cover all allocations listed.

c. Signatures on both deduction and distribution sections.

d. Account number.

2 Set up allocation.

3 Send completed (signed & dated) form to Quality Assurance.



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Automatic Transfers

Guidelines

Automatic Transfers provide automatic share transfers and loan payments for

members. Automatic Transfers are specifically used to allocate funds that are

already in the credit union. They are also set up to mail dividend checks for

members with Paid Monthly Certificates. Available dates are the 1st , 3rd, 10th, 15th

, 20th and 25th of the month as well as every Friday.

Forms Required

Automatic Transfer Authorization

Operation Begins

Member requests an automatic transfer for shares, loan payment or dividend check

mailed for Paid Monthly CD.

See XP2 Procedures on how to set up Automatic Transfer.



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Safe Deposit Boxes

Safe Deposit boxes are available for rent at the Rosedale and Lamar Branches. The box

inventory is maintained on XP2. An unlimited number of boxes can be defined per

member.

Refer to the Safe Deposit Box manual in the designated branch for policy and

procedures.

Box Size Location Annual Fee*

3 X 5 (Small) Lamar $20.00

5 X 5 (Regular) Rosedale $25.00

3 X 10 (Medium) Both $25.00

5 X 10 (Large) Both $40.00

10 X 10 (X-Large) Rosedale $60.00

*Plus Club Members receive a $5.00 discount.

Key Deposit $10.00

Lost Key $55.00

Drilling Fee $100.00

Boxes may only be rented in person. We cannot hold a box for someone. They are

available on a first come first serve basis.

The credit union has insurance on the vault, not the boxes themselves. We do not insure

box contents.

To check if boxes are available, use the Safe Deposit Box link in XP2 Services.



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TTT - Cross Member Transfer Enrollment

Members are able to transfer between two different member numbers via Touch

Tone Teller. This can be allowed once the credit union has their signature on a

Cross Member Transfer Authorization form. Once the member is enrolled for the

transaction, the member will be able to make cross transfers via Touch Tone Teller.

Forms Required

TTT Authorization (Touch-Tone Tellers Cross Member Transfer Authorization)

XP2 Transaction

MTS link

Procedure

1 Upon receipt of the Cross Member Transfer Authorization form, verify

completeness of the form.

2 If member is not already enrolled in the Touch Tone Teller, see XP2

Procedures.

3 If member is already enrolled in the Touch Tone Teller, update the service

by clicking MTS link. (See XP2 Procedures)

Examples of common transfer situations:

Parent wants to transfer funds TO child’s checking account:

MTS link on child’s member number

Enter member number of parent

Enter T, to transfer funds

Enter 2, (child’s account number to receive funds)

Wife wants to transfer FROM husband’s savings account:

MTS link on husband’s member number

Enter member number of wife

Enter F, to transfer from

Enter 1, (husband’s account number that funds will come from)

Wife wants to transfer TO/FROM husband’s accounts (all accounts):

MTS link on husband’s member #

Enter member number of wife

Enter B, to transfer to/from

Enter ALL, (husband’s account numbers that funds will come from)



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Request for Payoff on Loan

The member may ask a representative for a payoff on their loan. We do not give

payoff’s verbally—over the phone or in person. The payoff must be verified by

another employee—MSR I, II, or Loan Officer, Loan Processor (verify only) or

MSCR. A payoff letter is given to the member.

Note: If there are flags/alerts on the account, contact the Collections Department

before proceeding with the payoff.

Forms Required

Accounting Statement – when the payoff is given to the member directly

Payoff Letter – when the payoff is sent to a third party on behalf of the member

Procedure

Beginning on the Individual Summary,

1 View the history for the loan to check for Credit Life and/or Disability

premiums. (If the member does have payment protection, add the previous

month’s premiums to the payoff figure.)

2 Click on the title of the loan the member wants the payoff for to see the

Account Details.

3 Select the link “Payoff” found under the header Balance Information.

4 Enter the effective date 10 calendar days from the date of the request.

5 Calculate and print the loan payoff page.

6 If the loan has payment protection (Credit Life and/or Disability), add the

last month’s premium to the payoff amount.

7 Write on the printed payoff page the premium figures added to the payoff

amount.

a. Add any additional monies owed needed to pay off the loan to the

payoff amount. (Ex. Other loans that need to be brought current,

negative balances in their accounts, cash-back promo money if the

contract ended before the stipulated time for the promotion.)

8 Complete the Accounting Statement/Payoff Letter.

9 Loan payoff sheet and Accounting Statement/Payoff Letter is verified by

another employee. Once the payoff is correct, verifying employee will sign

and date the sheet.

10 Give the Accounting Statement to the member or Payoff Letter to 3rd party.



127

Skip-a-Payment/Extension

Definition: A deferral program for loans already on our books permitting the

member or borrower to have a maximum of one skip-a- payment, (in which the

entire payment is skipped), during any calendar year. A fee will be charged $25 for

a skip-a-payment. Extensions (in which interest only is received) will be granted on

a case by case basis. No fee will be charged for an extension. Most loan types

qualify.

Maximum Term: One monthly payment.

Maximum Amount: Amount of monthly payment.

Maximum Aggregate: Not to exceed 6 months of non-principal reductions for

closed end loans; not to exceed 1 skip per calendar year

for open-end credit.

Authority: Skip-a-Payment may be granted by: Telephone Service

Representatives, Consumer Loan Specialists, MSRII & Consumer Loan

Officers

Extensions may be granted by: Consumer Loan Officers

General: All members cannot qualify for this program. All accounts and loans

will be reviewed and extensions will be granted only if the member

can qualify.

1. The Skip-a-Payment program will be available for any month during the

calendar year. A minimum regular payment must be made between any skip-a-

payment and extension.

2. Payments may not be skipped on new loans. The first full payment has to

have been made.

3. The loan must be paid up to date-or within the 10 grace days.

4. EXCEPTIONS- Loans secured with real estate, certificates or promotional

loans cannot be extended.

The SKIP-A-PAYMENT program is an extension of the original loan. It is therefore

recognized that the original term of the loan will be exceeded and this practice will

be acceptable under the terms of this program provided the maximum terms

allowed under the Federal Credit Union Act, Rules and Regulations and Bylaws are

not exceeded. Credit Union employees should keep in mind that a loan

secured by collateral may be subject to a loss of equity in the collateral by

both the member and the credit union. It will be the practice of each

employee to advise each member requesting an extension on a

collateralized loan of this condition, and to provide a new amortization

schedule explaining the new payoff date to the member.

Example: An automobile loan that is originally set on an approximate 60 month

repayment term could result in a 65 month repayment term if a payment is skipped

each year. This could cause the member to have less equity (Collateral Value less

Loan Balance) during the longer term of this loan. The member will also pay

interest on a simple interest basis for the longer term. The amount of interest will

depend on the loan balance, rate and number of days the balance is outstanding.



128

Forms Required

Subsequent Action

Procedure

1. Research the contacts for the membership to verify that a skip-a-

payment/extension has not already been granted for the year.

2. Re-amortize the loan and go over the new payoff date with the member.

Give the member a copy of the amortization schedule. Keep a copy for our

records.

3. Obtain signature on the Subsequent Action form for the loan type. (e-

mail/fax is acceptable)

4. Execute the skip-a-payment in XP2. See XP2 Procedures. (Procedures are

different for open end loans versus closed end loans.)

5. From the Membership Summary - place a contact on the account under

the Primary Category of SAP/EXT detailing the date of the skip-a-

payment/extension, and the updated payoff date according to the

amortization schedule.

EX: MBR REQ SAP L143 for 7-10-14; NEXT DUE 8-10-14. MBR GIVEN

AMORTIZATION SCHEDULE WITH NEW PAYOFF DATE OF 02-10-16. 2ND SKIP

FOR L143.

***If the member is doing skips on multiple loans, include information for all loan

skips in the same contact for ease of reading.***

6. Input the information about the skip into your Skip-a-Pay log to be

submitted to the Quality Assurance Dept. the first of the month for the

previous month. Ex: Februarys Skips Log is sent March 1st.



129

How to Re-Amortize a Loan

1. From the loan details page of the loan that needs to amortized, check for

credit life and/or disability coverage. If there is coverage, add that to the

payment calculator for an accurate re-amortization.

2. Go to Details on the side menu and select Payment Calculator.

3. Complete the information to solve for term: Loan Product (if it did not

carry over), clear out the term after selecting the Term button, Rate,

Payment Amount, First Due Date (after the skip), check the payment

frequency to match the loan, select any protection plans active on the loan

and complete the DOB section corresponding with payment method as Loan

Advance.

***Effective Date should be the last date that the loan was paid. The system should

automatically have the correct effective date input—double check the date is correct. ***

4. Once all the information is complete, Calculate.

5. Select the link for the amortization result matching the loan:

6. Print the results for the member’s records and keep a copy to be imaged

with the subsequent action or supporting documentation.



130

Sending Documents with EchoSign (Adobe Sign)

EchoSign is to be used to securely send sensitive documents to the member.

For example:

• Payoffs (if IMM is down)

• Subsequent Action Forms (if IMM is down)

• Letters with sensitive information

• Statements

• Stop Payment Forms (if IMM is down)

• Unauthorized ACH Forms (if IMM is down)

• Account Card (person not present)

• Account Change Card (person not present)

• Revocation of Joint Owner (person not present)

Procedure

After documents have been created and are ready for sending,

1. Log in to EchoSign. From the homepage you can either select “Get a

Document Signed” or go to the Send tab.

2. Enter the recipient email(s). If the document requires your signature as

well, select Add Me.

a. Click “Password” by each recipient and input a Password

Authentication. The password will be disclosed to the member via

phone. (You may use the same password for all recipients.)

3. In the Message field, input the name of the document in the “Agreement

Name” and instructions on how to complete the document in the field below.

Example: Please review and sign/initial the Account Card. The following

sections require completion:

Pg. 1: Account Ownership Selection: each party on the account must

initial beside the ownership designation of JOINT MULTIPLE PARTY

ACCOUNT WITH RIGHT OF SURVIVORSHIP.

Pg. 2: Authorization: each owner on the account must sign their

name.

Please mail, email, or fax the documents back to Education First FCU

within 30 days.

Fax #: [Your branch fax]

Note: For new membership and account changes, be sure to let the member know that

we must receive the signed documents within 30 days.

4. Add Files or drag files to be sent.

5. Select Next.



131

6. After the document has processed:

a. If the document can be signed electronically, add Signature Fields

by click and holding the appropriate field type on the right—Signature

or Initials—and place it on the document where necessary.

b. If the document cannot be signed electronically, select the button to

Sign, then Send. When the “Missing Signature Fields” box appears,

click Send. The member will receive the documents via email.

i. The member will acknowledge/consent to signing electronically

and “sign.”

ii. After “signing”, they will receive a confirmation message

allowing them to “download a copy” of what they signed.

They will download and print from there in order to complete

the account forms.

iii. Once the documents have been signed, the member will

email, fax, or mail them back to the credit union.

iv. ***When multiple signers must sign account documents, send

the documents to one signer at a time so that all signatures

can be captured on the same form.***