Scope of Agreement

This Agreement describes the terms and conditions that govern Electronic Fund Transfer (EFT) transactions at Lexington Avenue Federal Credit Union (the "Credit Union"). In this Agreement, the words "you", "your" and "yours" refer to the member who has access to Electronic Fund Transfer Services. The words, "we", "our" and "us" refer to the Credit Union.

The EFT services listed are governed by Article 4A of the Uniform Commercial Code Subpart B of Regulation J and Regulation E of the Board of Governors of the Federal Reserve System.

If you send or receive a wire transfer, Fedwire may be used. Regulation J is the law covering all Fedwire transactions. All other services are governed by Regulation E. Usage of any of these services constitutes your acceptance of the terms of this Disclosure and Agreement. You understand that the agreements, rules and regulations applicable to your checking account, regular share savings account, and any other applicable account remain in full force and effect and continue to be applicable except as specifically modified by this Disclosure and Agreement.

Types of Electronic Funds Transfer (EFT) Available

The following summarizes the types of EFT services the Credit Union offers. You must sign up for each type of service seperately. Therefore, some of the following may not apply to you at this time, but may apply to you at some time in the future.
A. Pre-Authorized Deposites (Direct Deposit) - You can arrange to have amounts, which are regularly paid to you (i.e. Net Pay, Social Security, etc.), deposited directly to your account at least every 60 days. The third party making preauthorized deposits may have agreed to notify you every time the party sends us money to deposit to your account. If you do not have such an arrangement, you may telephone us and we will advise you whether or not the preauthorized deposit has been made.
B. Pre-Authorized Transfer to Third Parties - You may authorize automatic transfers (withdrawls) from your account to pay third parties. The authorization must be in writing. A copy of the authorization must be provided to you by the party you authorized to receive transfers from your account. If your pre-authorized transfer varies in amount from the previous transfer, the third party must give you written notice of the amount and the schedules date of the transfer at least 10 days in advance.
C. Automated Teller Machine (ATM) Services and Point of Banking (POB) Facilities - You may make deposites or withdrawls to or from your accounts and may transfer funds between your accounts at designated ATM and POB facilities using your ATM Card, hereafter referred to as The Card. Certain facilities may not be available for receipt of deposits or certain other transactions. A fee will imposed for each ATM withdrwal after four (4) in any calendar month. The charge will appear on your monthly account statement, please fefer to the fee schedule. You may withdraw up to $300 each time you use the card, with a maximum of $300 in any 24 hour period. If you use an ATM or POB terminal that we do not own and operate, you may also be charged a fee by the owner of the ATM terminal or by any network used. The owner of the ATM terminal or any network used may charge a fee for a balance inquiry even if you do not compltee a fund transfer. This fee, called a surcharge, will be disclosed to you by the ATM-owning institution before you complete your transaction. You may cancel the transaction at that time. If you agree to complete the transaction, the amount of your transaction plus the ATM owner's fee will be deducted from your account.
D. Audio Response System - 24 Hour Telephone Line - With your PIN and touch-tone telephone, you may make the following transactions at any time, twenty-four hours a day, using our Audio Response System: Make transfers between share accounts of the same base number, Account balance inquiries, Transfer funds to make loan payments. (Additional transactions may be offered in the future.) There are withdrawl limitations on Club (Holiday Vacation), Certificate, and IRA accounts. Other withdrawals are unlimited to the extent you have funds available in your account or from you Line of Credit.
E. Internet Banking - With access to the World Wide Web and yoru account number, you may perform the following transactions, twenty-four hours a day, using "CU Online" our Internet banking product: Balance inquiries, account and loan history inquiries and transfers, payments on your overdraft line of credit or check withdrawals from your credit union account made payable to you and mailed to you at your address of record. Additional transactions may be offered in the future.
F. VISA Debit Card - Using your card and pin number, you may withdraw cash from your checking account at any ATM displaying the VISA logo. Makes purchases or reservations at any merchant that accepts regular VISA credit cards. Withdrawals and purchases are limited by the amount on deposit in your checking account. Other restrictions may apply.
G. Wire Transfers - If you give the Credit Union a payment order which identifies the beneficiary (recipient of the funds) by both name and identifying or account number, payment may be made by the beneficiary's financial institution on the basis of the identifying or account number, even if the number identifies a person different than the named beneficiary. If you give the Credit Union a payment order which identifies an intermediary or beneficiary's financial institution by both name and an identifying number, a receiving financial institution may rely on the number as the proper identification even if it identifies a different person than the named financial institution.

The Credit Union may establish, from time to time, security procedures to verify the authenticity of a payment order. You will be notified of the security procedure, if any, to be used to verify payment orders issued by you or for which your account will be liable. You agree that the authenticity of payment orders may be verified using that security procedure unless you notify the Credit Union in writing that you do not agree to that security procedure. In that event, the Credit Union shall have no obligation to accept any payment order from you or other authorized parties on the account until you and the Credit Union agree in writing, on an alternate security procedure.

If the Credit Union becomes obligated under Article 4A of the Uniform Commercial Code to pay interest to you, you agree that the rate of interest to be paid shall be equal to the dividend rate, applicable to the account at the Credit Union to which the funds transfer should have been made or from which the funds transfer was made.

General Disclosures Applicable To All EFT Services

Business Days - Our business days are Monday through Friday, excluding holidays. Audio Response is available 24 hours a day, 7 days a week. The service may be interrupted for a short time each day for data processing.

Documentation of Transactions

• Periodic Statements - ACH transactions are governed by operating rules of the National Automated Clearing House Association. In accordance with these rules, the Credit Union will not provide you with next-day notice of receipt of electronic funds transfers to your account. If the Credit Union received a fund transfer for you or for other persons authorized to have access to your account, you agree that the Credit Union is not obligated to provide you with next-day notice of the receipt of the funds transfer. We will send notice of electronic funds transfers in the periodic account statements which the Credit Union will provide (at least quarterly).
• Terminal Receipt - You will usually get a receipt any time you make a transaction at an ATM. At some locations, you may have to request a receipt. If there is a conflict between the receipt and our records concerning a transaction, our records will prevail.

In Case of Errors or Questions About Your EFT Transactions - Call or write us at Lexington Avenue Federal Credit Union, 1275 Lexington Avenue, Rochester, New York 14606, (800) 309-6470 as soon as you can if you think your statement or receipt is wrong or if you need more information about a transaction listed on your statement or receipt. We must hear from you no later than 60 days after the first statement on which the problem or error appeared was sent to you.

• Tell us your name and account number
• Describe the error or the transaction you are unsure about and explain as clearly as you can why you believe it is in error or why you need more information.
• Tell us the dollar amount of the suspected error.
• Give us the receipt, if applicable (ATM transactions.)

We will tell you the results of our investigation within 10 business days after we hear from you, and we 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 recredit 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 to complete our investigation. If we ask you to put your complain or questions in writing and we do not receive it within 10 business days, we may not recredit your account.

If we determine that there was no error, we will send you a written explanation within 3 business days after we finish our investigation. If we have provisionally recredited your account during the investigation and determine that there was no error, we will notify you of the date on which we will re-debit your account and the amount to be re-debited. You should make certain that your account contains sufficient funds to cover this debit. If an overdraft occurs during this period, we have the right to collect the amount from you. If this happens, your right to participate in the specific Program under which the debit was made will be suspended, and you will not be considered for reinstatement until you pay for all such debits.

Failure to Make Transactions - If we do not complete a transaction to or from your account on time or in the correct amount according to our Agreement with you, we may be liable for your losses or damages. However, there are some exceptions. We will no be liable, for instance:

• If, through no fault of ours, you do not have enough money in your account to make the transfer.
• If, the Terminal where you are making the transaction does not have enough cash.
• If the terminal was not working properly and you knew about the breakdown where you started the transaction.
• If the money in the account is subject to a Court Order restricting its removal from the account or is the subject of dispute.
• If we believe in good faith that the transaction is being started without your authorization.
• If our failure to complete the transaction is justified by any provision of this Agreement or any other agreement between you and us concerning your account or by law or applicable regulation.
• If the right to use your ATM card has been cancelled.
• If circumstances beyond our control (such as fire or flood) prevent the transaction, despite reasonable precautions that we have taken to prevent the occurence.
• If we hav received incorrect or incomplete information from you or from third parties (i.e., the U.S. Treasury, an automated clearing house, or a terminal owner)
• If your ATM card or Audio Response PIN has been reported lost or stolen; has expired; is damaged so that the ATM cannot read the encoding strip; is inactive due to non-use; is retained by us at your request or your ATM PIN has been repeatedly entered incorrectly.
• There may be other exceptions not stated herein.

Provisional ACH Credit - The Credit Union may give you credit for ACH payments before it receives final settlement of the funds transfer. Any such credit is provisional until the Credit Union receives the final settlement of the payment. You are hereby notified and agree, if the Credit Union does not receive such final settlement, that it is entitled to a refund from you of the amount credited to you in connection with that ACH entry.

Charges for Electronic Funds Transfer Services - All charges associated with the electronic funds transactions are disclosed in the Fee Schedule. A stop-payment placed on a preauthorized electornic payment is subject to a fee, as disclosed in the Fee Schedule, for each stop payment order you give. If you request a copy of the documentation relative to an ATM transaction (except if the documenation is for resolution of a billing error), a fee equal to our reasonable cost of reproduction will be charged. Any fees charged will be deducted from your checking or savings account.

Changes of Terms and Address - The Credit Union may change the terms and charges of this Electronic Funds Transfer Services Disclosure and Agreement at any time. You will receive written notice of the changes to the extent required by law. Any notice we send to you will be sent by regular mail to your mailing address as shown in our records. You must promptly notify us in writing of a change in your address.

Disclosure of Funds Availability - We may place a hold for uncollected funds on an item you deposit. This could delay your ability to withdraw such funds. For further details see the Funds Availability Disclosure contained in this brochure.

Termination of Electronic Funds Transfer Services - In the event you fail to comply with any term of this agreement, any underlying agreement, applicable law, rule or regulation, or die or become bankrupt, we may declare all amounts owed to the Credit Union to be immediately due and payable without any notice. If the amount owed to the Credit Union is referred for collection to an attorney, you agree to pay reasonable attorneys' fees together with actual expenditures for necessary court process. The Audio Response PIN and the ATM card are property of the Credit Union and you agree to surrender them to us upon demand. Your privilege of using them may be cancelled by us at any time without caure or notice, but no such cancellation will affect your indebtedness.

If you ask us to terminate your account or the use of any electronic transfer service you must do so in writing. Your participation will be terminated on the business day after we receive your written notification. You will remain liable for subsequent transactions performed by any other party to your account.

Additional Disclosures Applicable to Preautorized Payment

If you have requested a preauthorized payment, such as insurance premiums, health club dues, etc. from any Credit Union account, the following information applies to you:

Initial Authorization - You can get copies of the preautorized payment documentation from the third party being paid at the time you give them the initial authorization.

Notice of Varying Amounts - If your preautorized payment may vary in amount, the party who will receive the payment is required to tell you 10 days before such payment, when it will be made and how much it will be. You may agree with the person being paid to receive this notice only when the payment will differ by more than a certain amount from the previous payment, or when the amount would fall outside certain limits that you set.

Right to Stop Preautorized Payment - If you want to stop a preautorized payment, call us at (800) 309-6470 or write us at Lexington Avenue Federal Credit Union, 1275 Lexington Avenue, Rochester, NY 14606 in time for us to receive your request 3 business days or more before the payment is scheduled to be made. If you call, we will also require you to put your request in writing and get it to us within 14 days after you call. Each stop payment notice will apply only to that particular payment. To be sure that a third party does not bill you again for the "stopped" payment or to cancel the entire preauthorized payment arrangement, contact the third party.

Our Liability for Failure to Stop Payment - If you order us to stop one of your preauthorized payments 3 business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages.

Liability for Unauthorized Electronic Payment - You will be liable for unauthorized transfers made from your account by a third party. If you believe such a transfer has occurred, follow the procedure outlined in "General Disclosures Applicable to All Electronic Services" section for resolving errors.

Additional Disclosures Applicable to ATM Cards, Visa Debit Cards and Audio Response

Personal Identification Number (PIN) - You have been assigned a PIN for use with your Card(s), and have chosen or been assigned a PIN for use with the Audio Response System. To access these services, you must communicate your pint to the machine. To ensure that no unauthroized charges are made to your account, you should take all reasonable precautions to prevent any other person from learning your PIN or using your card.

Cards or PINs Issued to More Than One Person - If Cards or PIN's relating to your account are issued to more than one person, all of those persons will be individually and jointly liable under this Agreement. We can send or deliver any notice converning this Agreement to any one of them, and it will be binding on all of them.

Liability for Unauthorized Transactions - Tell us AT ONCE if you believe your Card or PIN has been lost or stolen. Telephoning is the best way of keeping your possible loss down. You could lose all the money in your account; however, if you tell us within 2 business days, you can lose no more than $50 if someone used your Card or PIN without your permission.

If you do NOT tell us within 2 business days after you learn of the loss or theft of your Card or PIN, and we can prove that we could have stopped someone from using your Card or PIN without your permission if you had told us, you could lose as much as $500.

Also, if your statement shows transactions that you did not make, tell us AT ONCE. If you do not tell us within 60 days after the statement was mailed to you, you may lose up to $50 for transactions occuring before the end of those 60 days and you may not get back any money you lost after the 60 days if we can prove that we could have stopped someone from taking the money had you told us in time.

Evidence and Conflicts - In any legal proceeding involving this Agreement, a copy of this agreement kept by us in regular course of business is to be admitted into evidence as an original of this Agreement. If any part of this Agreement conflicts with any applicable law or regulation, the law or regulation will control. If any part of this Agreement is determined by a court to be invalid, the rest will remain in effect.

If after reading this agreement you have questions, please contact us at:

Lexington Avenue Federal Credit Union
1275 Lexington Avenue
Rochester, NY 14606
Tel: (585) 254-4543
Fax: (585) 254-0984
Email: info@lexfcu.org