Share Account Agreement

Part 1

General Provisions   

Legal Provisions in this Agreement

The provisions set forth in this Share Agreement (“Agreement”) apply to all members of the Science Park Federal Credit Union who hold share draft or share savings accounts.  Throughout the agreement, Science Park Credit Union will be called the “Credit Union” and you, the member\account holder will be called “you”.  When you open a share draft or any share savings account “account” with the Credit Union by signing a Membership Application or Signature Card, you agree the terms and conditions in this ‘Agreement” and Signature card.  Funds Availability Policy Disclosures and the Truth –In- Savings Disclosures, accompanying this Agreement and the Credit Union Bylaws and Policies and any amendments of these documents from time to which collectively govern your membership and accounts.  This agreement is a legally binding contract.  Please READ and RETAIN this agreement.  If you have any questions after reading this agreement, the Credit Union will provide clarification upon request.

Eligibility Membership

To be eligible for membership in the Credit Union, you must be an individual or entity qualifying within in the Credit Union’s field of membership and must purchase and maintain at least one share as required by the Credit Union’s Bylaws.  If more than one member owns an account, you may designate additional membership shares in the account.  You may authorize the Credit Union to check your account, credit, and employment history, and obtain a credit report from third parties, including credit reporting agencies, to verify your eligibility for the accounts and services you request.

Address Change/ email Change.

Change Notices that the Credit Union sends to you at your address/email as shown on our records will be binding on you for all purposes. You agree to notify the Credit Union in writing of any change address.

Effect of State and Federal Laws and Regulations

The deposit relationship between you and the Credit Union is governed primarily by this Agreement.  It is also governed by the By-laws of the Credit Union; and the laws of the State of Connecticut; the laws of the United States; the applicable rules of the Federal Reserve System ; the clearing house rules and regulation of other proper Credit Union supervisory and insuring authorities.  If any terms of this Agreement come into conflict with applicable law, those terms will be nullified to the extent that they are inconsistent with the law, and the applicable law will govern.  If any provision of this agreement is declared to be invalid, unenforceable, or illegal, that part will not affect the validity of other provisions.  Any disputes regarding this Agreement shall be subject to the jurisdiction of the court of the county in which the Credit Union is located.

 Deposit Protection

Members funds are insured up to $250,000 per member by the National Credit Union  Share Insurance Fund in accordance with the terms and conditions of the National Credit Union Administrations Rules and Regulations.  Under the NCUA’s rules and regulations, up to $250,000 in deposit insurance will be provided for the money a member has in a variety of retirement accounts, primarily Traditional and Roth IRA’S (Individual Retirement Accounts).  In addition the IRA’S and other retirement accounts that will be protected under the new rules of $250.000 are insured separately from the other accounts at the same Credit Union that will continue to be insured up to at least $250,000.  

Waiver of Rights by the Credit Union

The Credit Union reserves the right to waive the enforcement of any of the terms of this Agreement with respect to any transaction or series of transactions.  Any such waiver will not, however, affect the right of the Credit Union to enforce any of its rights with respect to other members or to enforce any of its rights with respect to later transactions with you.  Furthermore, such waiver is not sufficient to modify the terms and conditions of this Agreement.

Modification of Agreement

The Credit Union may, at any time modify any provision(s) of this   Agreement.  Except as described below, the Credit Union will notify by mailing you, in your statement or in your statement address, written notification of any change below that would affect your account, and any other amendment that may adversely affect your account at least thirty (30) days before the effective date of the amendment:

  • The frequency of compounding interest;
  • The frequency of crediting interest;
  • Grace periods
  • Minimum balance requirements; and
  • Rates, fees, charges and penalties’.

When thirty (30) days’ notice is not required by law, notice of amendments will be posted in all offices or mailed to you at least fifteen (15) days before the effective date of the amendment.  Copies of these amendments will be available at the Credit Union upon request.  The Credit Union will not provide advance notice of the change of rate of interest or the effective annual yield on variable rate accounts.

Termination of Agreement

This Agreement may be terminated by either you or the joint account holders of the Credit Union at any time by written notification to the other party.  Such a termination will not release you from (1) any fees or other obligations incurred prior to the termination; (2) those fees incurred in the process of closing the account; or (3) your liability on any outstanding items. Any items presented to the Credit Union subsequent to termination may be presented as unpaid.  The Credit Union may require you to close your account and apply for a new account if (1) there is any change in owners or authorized signers (2) if there is a forgery or fraud reported or committed involving your account; (3) there is a dispute as to the ownership of the funds in the account (4) any share drafts lost or stolen (5) there are excessive returned or unpaid items not covered by an overdraft protection plan; (6) there has been any misrepresentation or any other abuse of any of your accounts; or (7) the Credit Union reasonably deem it necessary to prevent loss to the Credit Union.



Part 2

 Ownership of Accounts

Individual or Single Party Accounts

By opening an account that is designated as an individual or single party account on the Membership Application, you are the sole owner of the account.   If the account has been opened as an individual or a single party account, the interest of a deceased individual owner will pass, in accordance with applicable law, to the descendants estate subject to the provisions of this Agreement governing the Credit Union‘s protection for honoring transfer and withdrawal requests of an owner or owners agent prior to notice of the owners death.  As an individual owner you are the only person authorized to engage in transaction on this account.  You may designate another person to engage in transactions concerning this account by granting him or her limited power of attorney on a form acceptable to the Credit Union without granting him or her any ownership interest in your account.  Otherwise you will be the only person authorized to engage in transactions on this account.

Joint or Multiple Party Accounts

When an account is opened in two or more names, it is designated on the membership application as a Joint account.  If two or more persons open a joint  or multiple party account with the right of survivorship, the upon death of one joint owner, the surviving owner or owners of the account has the right to all funds in the account, subject to the Credit Union’s right of setoff and security interest in the account.  When an account is designated as a joint account on the Membership Application, any joint or multiple party account holder is authorized and deemed to act of the owner(s) and the Credit Union may accept orders and instructions regarding the account, requests for future services and any transaction from any other account owner(s).  Each joint owner may make deposits into the account , withdraw any or all of the funds on deposit and if applicable, stop payment on or any share draft drawn on the account without the consent of the other account holders and the Credit Union shall have no duty to notify any of the other account holders.  Each joint owner guarantees the signature of the other account owner(s) and authorizes the other joint owner(s) to endorse instruments for deposit if they are payable to any of the joint  owner(s).  In accordance with section 3.1 of this Agreement, the Credit Union has the right to endorse share drafts or other orders of payment of money made out to any of the joint owner(s). Once endorsed, the Credit Union may pay cash to any joint owner or deposit money into the joint owner(s) account.  Notice provided by the Credit Union to one joint owner is deemed notice to all joint owners.  Once a joint account is opened one owner cannot remove another joint owner from the title of the account without consent of the primary owner.

Joint or Multiple Party Account Owner Liability

If any item deposited in a joint or multiple party account is returned unpaid, the account is overdrawn or the Credit Union does not receive final payment on any transaction, each of the account owners is jointly and severally liable to the Credit Union for the returned item, overdraft, or any unpaid amount and any charges in connection therewith, regardless of who created the overdraft, deposited or cashed the item or benefited from the transaction.  Each joint owner further authorizes the Credit Union to use funds in the joint owners account to pay any debts owed to the Credit Union by any or all of the joint owners.  This right exists irrespective of which joint owner contributed the funds to the joint account                                                                                                           

 Account for Minors

If you open an account as custodian for a minor beneficiary who is less than twenty one (21) years of age, your rights and duties are governed by the Uniform Gift to Minors Act.

 IRA Accounts

You are bound by the terms and conditions of a separate IRA agreement and disclosure given to you at that time.

Part 3

General Rules Governing Accounts

Deposit of Items

Deposits to your account made electronically or in person at any of our offices during normal business hours or by mail.  The Credit Union is not responsible for deposits made by mail until the Credit Union actually receives such items.  If the Credit Union receives an item on a weekend or holiday or after the Credit Unions cutoff hour on a business day, the item is deemed to have been received on the next business day.  If you deposit a check or draft the Credit Union has the right to clear it before making the funds available to you. Disbursements of funds are subject to the Credit Unions availability fund policy.   If there are special fees for collecting any deposited items, you agree to pay them.  If the Credit Union feels there are adequate reasons, it may refuse, limit or return any deposit.


Crediting of Deposits

Unless otherwise stated the Credit Unions availability fund policy deposits received at our offices on business days before the deposit cutoff time will be credited to your account on the same business day.


Direct Deposits

The Credit Union may offer direct deposit options allowing you to make preauthorized deposits (ie; payroll checks, social security or retirement checks, or other government checks) or preauthorized transfers from other accounts at the Credit Union.  You must authorize any direct deposits to your account by a direct deposit authorization form.     


 Collection of Items

All items deposited into your account are received by the Credit Union as a collection agent for you.  The Credit Union assumes no responsibility beyond the exercise of ordinary care.  The Credit Union will not be liable for the insolvency, neglect, misconduct, mistake or default of any of its correspondents for the loss or destruction of any item in transit.  


 Final Payment

  All items or Automated Clearing House (ACH) transfers credited to your account are provisional and subject to final payment and receipt of proceeds by the Credit Union.  If the cashed or deposited item is not honored for any reason against the drawer’s account, the Credit Union will charge your account for the unpaid item.  The unpaid item will be mailed to you at your last known address shown on the Credit Union’s records.  The Credit Union is authorized to pursue collection of previously dishonored items and in doing so it may permit the payor institution to hold an item beyond the midnight deadline.  In accordance with the Credit Union’s Fee Schedule, a service fee may be assessed for the activity.



Funds may be withdrawn from your account by using share draft forms approved by the Credit Union, or by any other means permitted by the Credit Union (ie; automated teller machines, in person, by mail, automatic transfer  or telephone as applicable).


 Account Access

In order to access your account, the Credit Union must have an authorized signature of your on a Membership Application.  The Credit Union is authorized to recognize your signature, but will not be liable for refusing to hone any item or instruction of yours if it believes in good faith that the signature on such item or instruction is not genuine.  If you give your account number to a third party, you authorize the Credit Union to honor transactions initiated by the third person even if you did not specifically authorize a particular transaction..


ACH and Wire Transfers

You may initiate or receive credits or debits to your account via wire transfer or ACH transfer.  You agree that if you receive funds by a wire or ACH transfer, the Credit Union is not required to notify you at the time the funds are received.  The Credit Union may provisionally credit your account for an ACH transfer before it receives final settlement for the transfer.  You agree that if the Credit Union does not receive final settlement for an ACH transfer, the Credit Union may reverse the provisional credit to your account or you will refund the amount to the Credit Union. Regulation j is the law governing funds transfers.  The cutoff time for outgoing wires is 12:45pm Monday thru Friday the cutoff time for incoming wires is 3:00pm Monday thru Friday.  When you initiate a wire transfer, you may identify the recipient or any other financial institution by name and account number and any other identifying number.  The Credit Union may rely on the account number or any other identifying number as the proper identification, even if it identifies a different party or institution.  The Credit Union does not initiate international wires


Automated Teller Machines

Transactions may be from your account by using an Automated Teller Machine (ATM) in conjunction with one of the networks which the Credit Union belongs.  If you decide to apply for and receive an automated teller machine card, you are bound by the terms of the separate agreement and disclosure statement for the use of this card.


Stop Payment Orders

If you do not want the Credit Union to pay a draft you have written, you can order a stop payment on it. You can notify the Credit Union by mail, phone or in person.  A stop payment order is effective for six (6) months.  A written stop payment will be valid upon receipt by the Credit Union.  The Credit Union has no obligation as to the expiration of the stop payment order.


Credit Union Checks   

 Stop payment orders on cashier’s checks are not generally permitted.  A stop payment order on these instruments can only be initiated in the circumstances where the instrument has been lost, stolen or destroyed in your possession.   



 Periodic Statements

If the Credit Union provides a periodic statement for your account, it will mail to you at your last known address on record, a statement of your account covering all transactions made during the statement cycle.   The credit union has estatements through online banking.  If you wish to receive your statement electronically, you may sign up at the credit union or Upon filing bankruptcy, periodic statement mailing will cease.  You agree to exercise reasonable care and promptness in examining such a statement to discover any error or irregularity including, but not limited to, any unauthorized signature and alteration, and your further agree to notify the Credit Union promptly after such a discovery.  Otherwise, the statement printed and received, will be deemed correct.  Moreover,  because you are in the best position to discover an unauthorized transfer, an unauthorized signature, an unauthorized endorsement or a material alteration, you agree that the Credit Union will not be liable for paying such items if (1) you did not exercise reasonable care in examining the statement  or you have not reported the forgeries or alterations to the Credit Union within thirty (30) days of the mailing date of the earliest statement containing these items or such a period may be required by law or government regulation (2) these items were forged  or altered so cleverly and expertly(as by authorized use of a facsimile machine or otherwise) that the forgery or alteration could not be detected by a reasonable person.


Right of Setoff

If you owe the Credit Union money as a borrower, guarantor, endorser, or otherwise, and it becomes due the Credit Union, unless prohibited by law has the right under this agreement in which you grant the Credit Union a security interest in your account to use the money in your account to pay the debt.  The Credit Union may use this money to pay your debt even if withdrawal results in an interest penalty or dishonor of drafts.  In case of a joint owner, each joint owner agrees that the Credit Union may use the money in the joint account to satisfy any one of the joint owner’s obligations.  Similarly, each joint owner further agrees that the Credit Union may use the money in his or hers individual account(s), if any, satisfy obligations in the joint account.  If the Credit Union chooses not to enforce its lien, the Credit Union does not waive its right to enforce the lien at a later time.  Before exercising its security its security interest, the Credit Union will give you such notice as required by law.  The security interest mentioned above is consensual.


Death or Incompetence

Neither a members death nor a legal adjudication of incompetence revokes the Credit Union’s authority to accept, pay, or collect items until the Credit Union knows of the fact of death or of an adjudication of incompetence and has a reasonable opportunity to act on it.   Even with such knowledge, however ,the Credit Union may, for ten (10) days after the date of death, pay or certify drafts drawn or before the date of death unless ordered to stop payment by a person claiming interest in the account.  This Agreement will be binding upon any heirs or legal representative of any account owner


 Transfer of Ownership

Accounts are not transferable or assignable by you or any other joint owner(s).


Dormant Accounts

The Credit Union will deem your account to be dormant if you do not make any deposits to or withdrawals from the account for the period of one year.  A dormant account remains subject to service fees.  Under certain circumstances as required by law, funds in dormant accounts may be turned over to the appropriate governmental authorities as abandoned property.  Once funds have been remitted, the Credit Union has no further liability to you for such funds and if you choose to reclaim the funds, you must apply to the Abandoned Property Division of the applicable governmental authority.


Taxpayer Identification Numbers and Backup Withholding

If your account is or becomes subject withholding the Credit Union is required by law to withhold and pay to the Internal Revenue Service a required percentage of the payments and dividends, interest and certain other payments under certain conditions.  Your failure to furnish a correct taxpayer identification number, the Credit Union may suspend the opening of your account or you may request a non-dividend or interest bearing account until a tax identification number is provided .


 Fees and Charges

Please refer to the schedule of fees to determine the fees which apply to your account.





 Legal Proceedings

If your account becomes involved in legal proceedings, your use of the account may be restricted.  You agree to be liable to the Credit Union for any loss, costs, or expense, including reasonable attorney fees, to the extent permitted by law, that the Credit Union incurs as a result of any dispute involving your account, and you further authorize the Credit Union to deduct any such loss, costs, or expenses from your account without prior notice to you.  This obligation includes disputes between you and the Credit Union involving the account and situations where the Credit Union becomes involved in disputes between you and an authorized signer, another joint owner, or a third party take action with respect to your account that causes the Credit Union in good faith to seek the advice of council whether or not the Credit Union actually becomes involved in the dispute.



If the Credit Union believes in its sole discretion that any instruction which it agrees to accept might expose it to claims, suits, losses, expenses, liabilities or damages  whether directly or indirectly, may require you to sign a agreement indemnifying it from such claims, suits, losses, liabilities or damages which may arise prior to following your instructions.  You further agree that if you refuse to sign such an indemnification agreement, the Credit Union is not required to follow such instructions.


 Disclaimer of Liability

The Credit Union is not responsible for, subject to any liabilities to its members other than those imposed upon it by the Uniform Commercial Code for its own lack of good faith or failure to exercise ordinary care.  The obligation to exercise ordinary care in the handling of items of deposits and of withdrawal shall be measured by the standard of reasonableness of procedures established for the transaction involved and mere clerical error, inadvertence or oversight without malice, or an honest mistake of judgment shall not be or constitute, as to any transaction, a failure to perform such obligations or a failure to exercise ordinary care and in no case shall be deemed wrongful. 


 Termination of Membership

A member whom has caused a loss to the Credit Union will only be allowed a non interest share account, no other services will be offered.


 Paying of Overdrafts

The Credit Union, at its sole discretion, may honor items presented for payment or authorization against your account even if there is insufficient funds in your account.  Items include, ACH debits, drafts, and transactions conducted at the branch, by automated phone system or online banking.  They do not include ATM or one time POS/Signature debit transactions.  However, if you OPT IN for Courtesy Pay coverage of one time debit transactions, the Credit Union at its sole discretion may honor these transactions even if there are insufficient funds in your account.  When there are insufficient funds in your account and we pay the item, there is a fee, which is indicated on your fee schedule.  The Credit Union will notify you in writing each time an item is paid or returned. The notice will contain the amount of the item and any fees that were assessed your account.


 Illegal Transactions

You agree that you will not cause or allow your account (including using checks, ACH,  Electronic  Funds Transfer, VISA credit or check/debit cards) to be used in any manner or for any transaction that we poses an undue risk of illegality, including unlawful gambling.  We may refuse to authorize any such use or transaction.  We reserve the right to terminate your membership if we find your account is being used for illegal transactions.


Prohibition Against Unlawful Internet Gambling

Federal law, the Unlawful Internet Gambling Enforcement Act of 2006 and implementing regulations prohibit commercial customers from receiving any deposits or other credits of any kind related to their operation of an illegal Internet gambling business. Science Park Federal Credit Union is required to enforce that prohibition.