Early Withdrawal Penalties. The Certificate Account will mature on the Maturity Date set forth in the Certificate Receipt. The Credit Union will terminate the Certificate Account and impose a penalty on the entire balance of the account if a withdrawal of principal is made prior to the Maturity Date. If the Certificate has a term to maturity equal to or less than one (1) year, the penalty we may impose will equal three (3) months of dividends, whether or not earned. If the Certificate has a term to maturity greater than one (1) year through two (2) years, the penalty we may impose will equal six (6) months of dividends, whether or not earned. If the Certificate has a term to maturity greater than two (2) years through three (3) years, the penalty we may impose will equal nine (9) months of dividends, whether or not earned. If the Certificate has a term to maturity greater than three (3) years, the penalty we may impose will equal twelve (12) months of dividends, whether or not earned. In accordance with Federal Reserve Board Regulations, the Credit Union may charge an early withdrawal penalty of seven (7) days dividends on amounts withdrawn within the first six (6) days after deposit or automatic renewal. There arecertaincircumstances, suchasthe death or incompetence of an owner, where we may waive or reduce this penalty. See your plan disclosure if the applicable account is part of an IRAor other tax qualified plan. The annual percentage yield is based on an assumption that dividends will remain in the account until maturity. A withdrawal will reduce earnings.
Appears in 4 contracts
Samples: Master Account Agreement, Master Account Agreement, Master Account Agreement
