Investment Certificate

Terms and Conditions

Agreement. These terms and conditions govern the operation of this account unless varied or supplemented by Eastman Credit Union ("ECU") in writing or electronically in accordance with applicable law. Unless it would be inconsistent to do so, words and phrases used herein should be construed so that the singular includes the plural and the plural includes the singular. As used herein and as used in the Investment Certificate Application for this account, the words "we", "our"/or "us" mean Eastman Credit Union and the words "you" and/or "your" mean the member and /or the owner of this account. If there are joint owners for this account, then the words "you" and/or "your" also mean all joint owners. Unless a different meaning clearly appears from the context, the words "account" and/or "accounts" mean the Investment Certificate that you have purchased or will purchase from us via the internet, ECU Online™ or other electronic means.

You agree to the terms and conditions contained herein and all other regulations, bylaws and policies (including changes thereto) of ECU. You acknowledge and agree that you are authorized to purchase an Investment Certificate from us via the internet, ECU Online™ or other electronic means. If there are joint owners on your account, you agree that any one of the joint owners is authorized to purchase said Investment Certificate on behalf of all of you. This account is non-negotiable and non-transferable. If any notice is necessary or otherwise required, you agree that the notice will be sufficient if we mail the notice to your last known address of record or the last known address that you have provided to us for your account. You must notify us, in writing, of any changes to this address.

Ownership of Account. These rules apply to this account depending on the type of account ownership:

Member as Sole Owner. Account is owned only by member. Funds remaining in the account upon member's death shall become part of the member's estate.
Joint Tenants With Rights of Survivorship. This type of account is owned by more than one member as joint tenants with right of survivorship (collectively referred to herein as "Joint Owners"). All sums deposited into this account or heretofore or hereafter paid into or deposited into this account by any or all of the Joint Owners, with accumulations and dividends thereon, are and shall be owned by all of the owners jointly, with right of survivorship, and shall be subject to the withdrawal or receipt of any of the Joint Owners, and shall be payable to any of the Joint Owners or to the survivor thereof. In addition thereto, the surviving owner of the Joint Owners is entitled to all funds (including all accumulated dividends) on deposit in the account upon the death of all of the other Joint Owners. The rights and/or interests of a Joint Owner in the account terminate upon his/her death unless he is the sole surviving owner. Any account previously established as a joint owner with right of survivorship account converts into a "Member as Sole Owner" account if there is only one surviving owner.
Gift or other Transfer to Minors. The rights of Custodian, the Minor and Eastman Credit Union in this account are governed by this Application and by Title 35, Chapter 7, of the Tennessee Code Annotated as amended from time to time.

Special Rules for Electronic/Online Application for Investment. We have offered you the opportunity to purchase investment certificates via the internet, ECU Online™ or other electronic means. We have established certain rules, restrictions and regulations that apply solely to accounts which are created via internet (online) applications, ECU Online™ or other electronic means. To establish this account, you must transfer funds from your share account, your share draft account or any other account(s) that you have with us (collectively referred to herein as the "Funding Account" and/or "Funding Accounts"). In order to induce us to establish this account, you present and warrant that you are authorized to access the Funding Account via ECU Online™ or electronic means and to otherwise transfer funds from the Funding Accounts.

Certain rules and/or restrictions apply to this account because the account has been (or will be established) via the internet, ECU Online™ or other electronic means. These rules and restrictions include, without limitations, the following:

Ownership of the Funding Account determines the ownership of this account. The ownership of this account shall be the same as the ownership of the Funding Account as of the date that this account is created. If the Funding Account is a member as sole owner account, then this account will be established as a member as sole owner account and the sole owner of said Funding Account will be the sole owner of this account. If the Funding Account is a joint tenants with right of survivorship account, then this account will be established as joint tenants with right of survivorship account. All Joint Owners on the Funding Account will also be Joint Owners on this account even if only one of the Joint Owners establishes this account.
If the Funding Account is a joint tenants with right of survivorship account, then this account must also be joint tenants with right of survivorship account. You may not use funds from a Funding Account established as a joint tenants with right of survivorship account to establish this account as a "Member as Sole Owner" account. If you are establishing this account from a Funding Account designated as a joint tenants with right of survivorship account, then you acknowledge and understand that the other Joint Owners on the Funding Account are Joint Owners on this account. You may apply for an Investment Certificate in person at one of our branches if you desire to use funds from a Funding Account designated as a joint tenants with right of survivorship account to purchase an Investment Certificate having owner(s) who differ from the Funding Account.
Payable on Death ("P.O.D.") Beneficiary Designations are prohibited. You may not name a payable on death beneficiary for this account. This account will not have payable on death beneficiaries even if the Funding Account has such beneficiaries. The payable on death beneficiaries on the Funding Account do not transfer to this account. If you desire to name payable on death beneficiaries for this account, then you must apply for an Investment Certificate in person at one of our branches.
Additional Authorized Signatories are prohibited. You may not name any additional authorized signatories for this account. This account will not have additional authorized signatories even if the Funding Account does have such signatories. The additional authorized signatories on the Funding Account do not transfer to this account. If you desire to name additional authorized signatories for this account, then you must apply for an Investment Certificate in person at one of our branches.

Prohibited Electronic and/or Online Activities. You may not perform any of the following actions via the internet, ECU Online™, electronic communications or other electronic means:

Make changes to the ownership and/or the ownership interest of your account. You may not change the owners and/or the ownership interest on your account via the internet, ECU Online™, electronic communications or other electronic means. If any of you desire to change the ownership on your account, you must do so in person at one of our branches.
You cannot name Payable on Death Beneficiaries for this account. You may not name Payable on Death Beneficiaries for this account if this account is created via the internet, ECU Online™, electronic communications or other electronic means. If you desire to name payable on death beneficiaries on your account, you may do so in person at one of our branches.
You cannot name Additional Authorized Signatories for this account. You may not name additional authorized signatories for this account if this account is created via the internet, ECU Online™, electronic communications, or other electronic means. If you desire to name additional authorized signatories on your account, you may do so in person at one of our branches.

The signatures and the consent of all of the Joint Owners may be required to make the changes, alterations and/or revisions described above. Please contact us for more information.

Changes in the Ownership of the Funding Account. As previously indicated, the ownership of this account is the same as the ownership of the Funding Account as of the date the account is created. All of you acknowledge and agree that the ownership of the Funding Account may change from time to time. Notwithstanding, the ownership of this account will not change even if the ownership of the Funding Account changes.

Other changes in Funding Account. The payable on death beneficiaries and/or additional authorized signatories on the Funding Accounts may change from time to time. Notwithstanding, any such changes to the Funding Account shall not, in any manner, affect this account. All of you acknowledge and agree that this account may not have and does not have any payable on death beneficiaries and/or authorized signatories.

Modifications to Investment Certificates previously purchased via electronic means. If you are renewing an Investment Certificate previously purchased from us via the internet, ECU Online™ or other electronic means, then you acknowledge and agree that the terms and conditions contained herein apply to the renewal of said Investment Certificate. Upon renewal, all payable on death beneficiaries and/or additional authorized signatories named in the previous Investment Certificate, if any, will be removed and deleted from the account.

Lien and Set-Off. To the extent that your deposit includes shares, you each agree that we may impress and enforce a lien on your shares and dividends to the extent of any due and payable loans, financial obligations, other charges, and/or attorneys' fees that any of you with ownership rights in this account may owe to us now or in the future. In the case of any deposit, you each agree that we may (without prior notice and when permitted by law) set off the funds in this account against any due and payable debt or any other charge (including reasonable attorneys' fees) that anyone with an ownership interest in this account may owe us now or in the future. If the debt arises from a note, "any due and payable debt" includes the total amount which we are entitled to demand payment under the terms of the note at the time we enforce our lien or set-off including any balance the due date for which we properly accelerate the note. This lien or right of set-off does not apply to this account if (a) it is an Individual Retirement Account or any other account that would lose special tax treatment under state or federal law if given as security, or (b) the debt is created by a credit transaction under a consumer credit card plan, or (c) the debtor's right of withdrawal only arises in a representative capacity, or (d) the lien or right of set off is otherwise prohibited under state or federal law. We will not be liable for the dishonor of any item when the dishonor occurs because we set off a debt against this account. You agree to hold us harmless from any claim arising as a result of the exercise of our right of set-off.

Miscellaneous

Amendments and termination. Rules regarding changes to dividends have been provided separately. From time to time we may amend any term of this Agreement upon giving you reasonable notice in writing, by electronic means or by any other method permitted by law, including, in appropriate circumstances, posting notice in our building. We may also close this account at any time upon reasonable notice to you and tender of the account balance personally or by mail. Notice from us to any one of you is notice to all of you. Failure to comply with any of the provisions of the Agreement may result in the closing of this account as well as any or all of your other accounts with us either with or without prior notice.

Effect of Amendments. Any changes, modifications, amendments, and/or revisions ("Amendment") to this Agreement shall be effective as to and be enforceable in relation to any account created prior to, upon, and/or after the date of the Amendment.

Truth in Savings

Investment Certificate (Less Than One Year)

Rate Information. The dividend rate and annual percentage yield may change at any time. Rate changes will be at the discretion of Eastman Credit Union. For corresponding rate and annual percentage yield, refer to ECU deposit account rate sheet.

Compounding frequency - Unless otherwise paid, dividends will be compounded every month.

Crediting frequency - Dividends will be credited to your account every month. Alternately, you may choose to have dividends paid to you or to another account every month rather than credited to this account. The annual percentage yield assumes dividends remain in the account until maturity. Withdrawals will reduce earnings.

Dividend period - For this account, the dividend period is monthly.

Minimum balance requirements - The minimum balance required to open this account is $2,500.00 or $100,000.00 for a Jumbo Investment Certificate.

You must maintain a daily balance of $2,500.00 or $100,000.00 for Jumbo Investment Certificate in your account each day to obtain the disclosed annual percentage yield.

Daily balance computation method - Dividends are calculated by the daily balance method which applies a daily periodic rate to the balance in the account each day.

Accrual of dividends on non-cash deposits - Dividends will begin to accrue on the business day you place non-cash items (for example, checks) to your account.

Transaction limitations - After the account is opened, you may not make additions into the account until the maturity date stated on the account.

You may make withdrawals of principal from your account before maturity. Principal withdrawn before maturity is included in the amount subject to early withdrawal penalty.

You can only withdraw dividends before maturity if you make arrangements with us for periodic payments of dividends in lieu of crediting.

Time requirements - Your account will mature.

Early withdrawal penalties (a penalty will be imposed for withdrawals before maturity) -

If your account has an original maturity of 30 to 179 days:

The penalty will equal the greater of:
- Seven days dividends, on the amount withdrawn subject to penalty, if the withdrawal is made within the first six days after the deposit, or
- All dividends on the amount withdrawn not to exceed 90 days.

If your account has an original maturity of 180 to 364 days:

The penalty will equal 90 days dividends on the amount withdrawn subject to penalty.

There are certain circumstances, such as death of an owner, where we may waive or reduce this penalty. See your plan disclosure if this account is part of an IRA or other tax qualified plan.

Automatically renewable account - This account will automatically renew at maturity. You may prevent renewal if you withdraw the funds in the account at maturity (or within the grace period mentioned below) or we receive written notice from you within the grace period mentioned below. We can prevent renewal if we mail notice to you at least 30 calendar days before maturity. If either you or we prevent renewal, dividends will continue to accrue during the grace period. Your deposit will be placed in another dividend-bearing account and the rate will be the rate in effect on that account.

Each renewal term will be the same as the original term, beginning on the maturity date. The dividend rate will be the same we offer on new term share accounts on the maturity date which have the same term, minimum balance and other features as the original term share account.

You will have a grace period of ten calendar days after maturity to withdraw the funds without being charged an early withdrawal penalty.

Investment Certificate (One Year and Over)

Compounding frequency - Unless otherwise paid, dividends will be compounded every month.

Dividend period - For this account, the dividend period is monthly.

Minimum balance requirements - The minimum balance required to open this account is $1,000.00 or $100,000.00 for a Jumbo Investment Certificate.

You must maintain a daily balance of $1,000.00 or $100,000.00 for Jumbo Investment Certificate in your account each day to obtain the disclosed annual percentage yield.

Daily balance computation method - Dividends are calculated by the daily balance method which applies a daily periodic rate to the balance in the account each day.

Accrual of dividends on non-cash deposits - Dividends will begin to accrue on the business day you place non-cash items (for example, checks) to your account.

Transaction limitations - After the account is opened, you may not make additions into the account until the maturity date stated on the account.

You may make withdrawals of principal from your account before maturity. Principal withdrawn before maturity is included in the amount subject to early withdrawal penalty.

You can withdraw dividends credited in the term before maturity of that term without penalty. You can withdraw dividends anytime during the term of crediting after they are credited to your account.

Time requirements - Your account will mature.

Early withdrawal penalties (a penalty will be imposed for withdrawals before maturity) -

If your account has an original maturity of 365 to 729 days:

The penalty will equal 90 days dividends on the amount withdrawn subject to penalty.

If your account has an original maturity of 730 to 1,826 days:

The penalty will equal 180 days dividends on the amount withdrawn subject to penalty.

If your account has an original maturity of 2,191 days:

The penalty will equal 365 days dividends on the amount withdrawn subject to penalty.

There are certain circumstances, such as death of an owner, where we may waive or reduce this penalty. See your plan disclosure if this account is part of an IRA or other tax qualified plan.

Withdrawal of dividends prior to maturity - The annual percentage yield is based on an assumption that dividends will remain in the account until maturity. A withdrawal will reduce earnings.

You will have a grace period of ten calendar days after maturity to withdraw the funds without being charged an early withdrawal penalty.

Lifeline Savers Certificate

Compounding frequency - Unless otherwise paid, dividends will be compounded every month.

Dividend period - For this account, the dividend period is monthly.

Minimum balance requirements - The minimum balance required to open this account is $100.00. You must maintain a minimum daily balance of $100.00 in your account each day to obtain the disclosed annual percentage yield.

Daily balance computation method - Dividends are calculated by the daily balance method which applies a daily periodic rate to the balance in the account each day.

Accrual of dividends on non-cash deposits - Dividends will begin to accrue on the business day you place non-cash items (for example, checks) to your account.

Transaction limitations - After the account is opened, you may make deposits to this account. There will be a minimum of $10.00 required for all deposits with the exception of automatic payroll deductions which may be done in any amount.

You may make withdrawals of principal from your account before maturity. Principal withdrawn before maturity is included in the amount subject to early withdrawal penalty.

You can only withdraw dividends credited in the term before maturity of that term without penalty. You can withdraw dividends anytime during the term of crediting after they are credited to your account.

Time requirements - Your account will mature.

Early withdrawal penalties (a penalty will be imposed for withdrawals before maturity) -

If your account has an original maturity of 365 to 729 days:

The penalty will equal 90 days dividends on the amount withdrawn subject to penalty.

There are certain circumstances, such as death of an owner, where we may waive or reduce this penalty. See your plan disclosure if this account is part of an IRA or other tax qualified plan.

Withdrawal of dividends prior to maturity - The annual percentage yield is based on an assumption that dividends will remain in the account until maturity. A withdrawal will reduce earnings.

You will have a grace period of ten calendar days after maturity to withdraw the funds without being charged an early withdrawal penalty.

IRA Accumulation Account

Rate Information - The dividend rate and annual percentage yield may change at any time. Rate changes will be at the discretion of Eastman Credit Union. For corresponding rate and annual percentage yield, refer to ECU deposit account rate sheet.

Compounding and crediting - Dividends will be compounded and credited monthly.

Dividend period - For this account, the dividend period is monthly, for example, the beginning date of the first dividend period of the calendar year is January 1, and the ending period of such dividend period is January 31. All other dividend periods follow this same pattern of dates. The dividend declaration date follows the ending date of a dividend period, and for the example above is January 31.

Minimum balance requirements - The minimum balance required to open this account is $5.00.

You must maintain a minimum daily balance of $5.00 in your account each day to obtain the disclosed annual percentage yield.

Daily balance computation method - Dividends are calculated by the daily balance method which applies a daily periodic rate to the balance in the account each day.

Accrual of dividends on non-cash deposits - Dividends will begin to accrue on the business day you place non-cash items (for example, checks) to your account.

Transaction limitations - You may not make any withdrawals or transfers to another credit union account of yours or to a third party by means of a preauthorized or automatic transfer, telephonic order or instructions, or similar order to a third party.

We reserve the right to at any time require not less than 60 days notice in writing before each withdrawal from a dividend-bearing account other than a time deposit, or from any other savings account as defined by Regulation D.

IRA-Access Account

Compounding and crediting - Dividends will be compounded and credited monthly.

Minimum balance requirements - The minimum balance required to open this account is $10,000.00.

You must maintain a minimum daily balance of $10,000.00 in your account each day to obtain the disclosed annual percentage yield.

Daily balance computation method - Dividends are calculated by the daily balance method which applies a daily periodic rate to the balance in the account each day.

Accrual of dividends on non-cash deposits - Dividends will begin to accrue on the business day you place non-cash items (for example, checks) to your account.

Transaction limitations - The minimum deposit we allow is $1,000.00 per transaction. The minimum amount you may withdraw is $1,000.00 per transaction. No more than six withdrawals are allowed each month.

You may not make any withdrawals or transfers to another credit union account of yours or to a third party by means of a preauthorized or automatic transfer, telephonic order or instruction, or similar order to a third party.

Common Features

Nature of dividends - Dividends are paid from current income and available earnings, after required transfers to reserves at the end of a dividend period. (This disclosure further explains the dividend feature of your non-term share account(s)).

National Credit Union Share Insurance Fund - Member accounts in this credit union are federally insured by the National Credit Union Share Insurance Fund.