Share or IRA Certificate Truth in Savings Disclosure

AGREEMENT

The following information contains basic facts about your share or IRA certificate account. This disclosure is in addition to those on the certificate itself. By opening and maintaining a share or IRA certificate account with Cornerstone Community FCU, you have agreed to the terms for this account set forth here and on the certificate and any amendments thereto. If you have any questions regarding the disclosure or the share or IRA certificate, please ask a member service representative.

NATURE OF DIVIDENDS

Dividends are paid from current income and accumulated earnings, after providing for the required transfers. For share or IRA certificates, the dividend rate and annual percentage yield are fixed and will be in effect for the term of the account. The annual percentage yield is based on the assumption that dividends earned on the certificate will remain on deposit in the certificate account until maturity. A withdrawal of dividends will reduce earnings and the annual percentage yield.

DIVIDEND RATE AND ANNUAL PERCENTAGE YIELD

As used in this disclosure, “dividend rate” means the dividends paid (or expected to be paid) on an account, without giving effect to the compounding of previously earned dividends, shown as an annual figure and expressed as a percentage of the account balance; and “annual percentage yield” or “APY” means a percentage rate reflecting the total amount of dividends expected to be earned in a year on an account, based on the dividend rate and the frequency of compounding accrued dividends.

COMPOUNDING AND CREDITING

Dividends for all share or IRA certificate accounts are credited to you every month. The dividends may be reinvested into the share certificate (compounded), transferred to a share account or mailed to you. IRA Certificate dividends must be reinvested back into the certificate. The dividend period is monthly and paid on the last day of each month.

MINIMUM BALANCE REQUIREMENTS

The minimum balance required to open a share or IRA certificate is $500. Dividends are calculated on the daily balance method of which applies the daily periodic rate to the principal balance in the account each day.

Share or IRA Certificate Accounts are Tiered Rate Accounts with varying terms.

If your account balance is $4,999.99 or below, the first dividend rate and annual percentage yield listed for this account and term in the Certificate Rate Schedule will apply.

If your account balance is $5,000.00 to $24,999.99, the second dividend rate and annual percentage yield listed for this account and term in the Certificate Rate Schedule will apply.

If your account balance is $25,000.00 to $49,999.99, the third dividend rate and annual percentage yield listed for this account and term in the Certificate Rate Schedule will apply.

If your account balance is $50,000.00 to $99,999.99, the fourth dividend rate and annual percentage yield listed for this account and term in the Certificate Rate Schedule will apply.

If your account balance is $100,000.00 or over, the fifth or Jumbo dividend rate and annual percentage yield listed for this account and term in the Certificate Rate Schedule will apply.

Once a particular balance range is met, the dividend rate and annual percentage yield will apply to the full balance of your account.

ACCRUAL OF DIVIDENDS

Dividends will begin to accrue on the business day you purchase your share or IRA certificate whether the purchase was by cash or check.

EARLY WITHDRAWAL PENALTIES

You may withdraw all or some of the principal balance of your share or IRA certificate prior to maturity. However a substantial penalty is imposed if certificate funds other than dividends are withdrawn before the maturity date. The penalty is forfeiture of earned dividends. The principal amount upon which earned dividends are forfeited is the amount withdrawn unless the amount withdrawn reduces the balance below $500. In that event, the principal amount upon which earned dividends are forfeited is the entire amount of the certificate. Additionally, if you withdraw from your IRA certificate, further tax penalties may apply. Please refer to your IRA disclosure for further details. The following penalties are currently in effect:

If the maturity of the certificate is one year or less, the forfeiture of dividends is equal to the smaller of the following two amounts: dividends since the date of issuance or renewal, or 90 days dividends.

If maturity of the certificate is more than one year, the forfeiture of dividends is equal to the smaller of the following two amounts: dividends since the date of issuance or renewal, or 180 days dividends.

The penalty will be charged at the time of withdrawal and may be taken from the principal balance of your share or IRA certificate.

Any dividends in your share or IRA certificate at maturity will be considered part of the principal of the certificate upon any renewal and thereafter become subject to the credit union’s rules concerning early withdrawal.

EXCEPTION TO EARLY WITHDRAWAL PENALTIES

At our option, we may pay the certificate before maturity without imposing an early withdrawal penalty if the single account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction. If the certificate is in two or more names, and one share account owner dies or becomes mentally incompetent, the certificate will remain in effect until its scheduled maturity under the remaining joint owner’s names. Please see your IRA disclosure for the details on the exception to early withdrawal penalties on IRA products.

TRANSACTION LIMITATIONS

Once your share or IRA certificate is opened, you may not make additional deposits to it, however, you may open a separate certificate at the then effective dividend rate.

RENEWAL POLICY

You may automatically renew the share certificate, transfer the funds to your credit union account or withdraw the funds. You may automatically renew the IRA certificate, transfer the funds to your credit union IRA share account or withdraw the funds which may result in tax penalties as defined in your IRA disclosure.

The credit union will give you a written notice of the maturity of the certificate at least 30 days prior to the maturity date. The notice will inform the owner of the terms under which the credit union proposes to renew the certificate or otherwise make funds available to the owner.

If you do not respond prior to the maturity of your certificate, the certificate will automatically renew at the current dividend rate. There is a five day grace period following the certificate’s maturity. This means you will not be assessed an early withdrawal penalty if you withdraw funds within five days of the certificate’s maturity date.

Every notice of maturity will state the dividend rate which will apply to the share or IRA certificate upon renewal or, if the renewal rate has not then been determined, will state the date that the renewal rate will be set and include a telephone number which you can call to learn what the dividend rate and APY applicable to the certificate at renewal time.

NONTRANSFERABLE/NONNEGOTIABLE

Your account is nontransferable and nonnegotiable. The funds in your share or IRA certificate may not be pledged to secure any obligation of the owner, except obligations with the credit union.