Applicants must agree to the following terms before proceeding:
This Agreement covers your rights and responsibilities concerning your accounts and the rights and responsibilities of Cy-Fair Federal Credit Union
(Credit Union). In this Agreement, the words "you," "your," and "yours" mean anyone who signs an Account Card, Account Change Card, Member
Services Request, or any other account opening document (Account Card), or for whom membership and/or service requests are approved through the
Credit Union's online application and authentication I. process. The words "we," "us," and "our" mean the Credit Union. The word "account" means any
one or more share or deposit accounts you have with the Credit Union.
Your account type(s) and ownership features are designated by you on your Account Card or through the Credit Union's online application and
authentication process. By signing an Account Card or authenticating your request, each of you, jointly and severally, agree to the terms and conditions
in this Agreement, and any Account Card, Funds Availability Policy Disclosure, Truth-in-Savings Disclosure, Electronic Fund Transfers Agreement and
Disclosure, Privacy Disclosure, or Account Receipt accompanying this Agreement, the Credit Union Bylaws or Code of Regulations (Bylaws), Credit
Union policies, and any amendments, including additions, deletions, or other changes, made to these documents from time to time that collectively
govern your membership, accounts and services.
IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT - To help the government fight the funding of terrorism and
money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens
an account.
What this means for you: When you open an account, we will ask for your name, address, date of birth, if applicable, and other information that will allow
us to identify you. We may also ask to see your driver's license or other identifying documents.
1. MEMBERSHIP ELIGIBILITY - To join the Credit Union, you must meet the membership requirements, which may include the purchase and
maintenance of the minimum required share(s) (hereinafter membership share), paying a membership fee, or other requirement(s) as set forth in the
Credit Union's bylaws. You authorize us to check your account, credit and employment history, and obtain reports from third parties, including credit and
consumer reporting agencies, to verify your eligibility for the accounts, products and services you request and for other accounts, products, or services
we may offer you or for which you may qualify.
2. SINGLE PARTY ACCOUNTS - A single party account is payable to one party, the owner, who has qualified for credit union membership. If the
owner dies, the account is payable to the Payable on Death (POD) beneficiary(ies), if so named, or as a part of the owner's estate under his or her will or
by the applicable laws of intestacy. Payment of the account is subject to other provisions of this Agreement protecting the Credit Union for honoring
transfer and withdrawal requests of an owner or owner's agent prior to notice of an owner's death, any security interest or pledge granted by the account
owner, and our statutory lien rights.
3. JOINT MULTIPLE PARTY ACCOUNTS - A joint multiple party account is an account payable to any one of two or more parties, the owners.
During their lifetimes, the owners of a joint multiple party account own the account in proportion to their net contributions to the account. The owners of a
joint multiple party account are presumed to own the account in equal undivided interests, unless there is satisfactory proof of the parties' net
contributions to the account. The owners' net contributions to a joint multiple party account are calculated in accordance to Sec. 125.104(b) of the Texas
Finance Code and Sec. 113.003 of the Texas Estates Code, as amended from time to time.
a. Rights of Survivorship. For joint multiple party accounts with rights of survivorship, on the death of one party, all sums in the account on the
date of the death vest in and belong to the surviving party(ies) as his or her separate property and estate. This means that when one owner dies,
ownership of the account passes to the surviving owner(s). If there are two or more surviving owners, their respective ownerships during lifetime
shall be in proportion to their previous net contributions to the account, increased for each survivor by an equal share of any interest the decedent
may have owned in the account immediately before his or her death. The rights of survivorship in the account continue until only one owner
survives. For a joint multiple party account without rights of survivorship, when one owner dies, the deceased owner's interest in the account
passes as part of the deceased owner's estate under his or her will or by the applicable laws of intestacy. Payment of the account is subject to
other provisions of this Agreement protecting the Credit Union for honoring transfer and withdrawal requests of an owner or by an owner's agent
prior to notice of an owner's death, and to our statutory lien for the owner's obligations, and to any security interest or pledge granted by the owner.
b. Control of Joint Multiple Party Accounts. Any owner is authorized and deemed to act for any other owner(s) and may instruct us regarding
transactions and other account matters. Each owner guarantees the signature or authenticated request of any other owner(s). Any owner may
withdraw or transfer funds, pledge to us all or any part of the shares or stop payment on items without the consent of the other owner(s). We have
no duty to notify any owner(s) about any transaction. We reserve the right to require written consent of all owners for any change to or termination
of an account. However, subject to a policy adopted by the Credit Union's board of directors, a member, by written notice to us, may change any
joint owner designated on the account or remove any such joint owner, change the form of the account, or stop or vary payment under the terms of
the account. If we receive written notice of a dispute between owners or inconsistent instructions from them, we may suspend or terminate the
account and require a court order or written consent from all owners in order to act.
c. Joint Multiple Party Account Owner Liability. If an item deposited in a joint multiple party account is returned unpaid, a joint multiple party
account is overdrawn, or we do not receive final payment on a transaction, the owners, jointly and severally, are liable to us for any returned item,
overdraft, or unpaid amount and for any related fees and charges, regardless of who initiated or benefited from the transaction. If any account
owner is indebted to us, we may enforce our rights against any account of the indebted owner, including all funds in the joint multiple account,
regardless of who contributed the funds.
4. POD ACCOUNT - A POD account is a single or joint multiple party account that is payable on request to the owner(s) during his, her, or their
lifetimes and, upon the death of all owners, is payable to the surviving named POD beneficiary(ies). Unless state law provides for different ownership or
as permitted and documented by us, the beneficiaries will own the funds jointly in equal shares without rights of survivorship when there is more thanone surviving beneficiary. Any POD designation shall not apply to Individual Retirement Accounts (IRAs). We are not obligated to notify any beneficiary
of the existence of any account nor the vesting of the beneficiary's interest in any account, except as otherwise provided by law.
5. ACCOUNTS FOR MINORS - We may require any account established by a minor to be a joint multiple party account with an owner who has
reached the age of majority under state law and who shall be jointly and severally liable to us for any returned item, overdraft, or unpaid amount on such
account and for any related fees and charges. We may pay funds directly to the minor without regard to his or her minority. Unless a parent is an
account owner, the parent shall not have any account access rights. We have no duty to inquire about the use or purpose of any transaction except as
required by applicable law. We may not change the account status when the minor reaches the age of majority unless the change is authorized in writing
by all account owners.
6. ACCOUNTS SUBJECT TO TUTMA - An account designated as subject to the Texas Uniform Transfers to Minors Act (TUTMA) is a single party
account for a minor. The account is created by the transfer of funds into an account subject to the TUTMA for a named minor. The transfer and all
additional deposits to the account are irrevocable gifts to the minor. The transferor of the initial deposit to the account must name one person eligible
under the TUTMA to serve as custodian of the account. The custodian has possession and control of the account and is required by law to manage the
account for the exclusive right and benefit of the minor and, barring a court order otherwise, is the only party authorized to make deposits, withdrawals,
or close the account. We have no duty to inquire about the use or purpose of any transaction except as required by applicable law. If the custodian dies
without a successor custodian already named for the account, we may suspend the account until a successor custodian is named, we receive
instructions from any person authorized by law to withdraw funds, or we receive a court order authorizing withdrawals. The account will terminate and be
distributed in accordance with applicable law.
7. CONVENIENCE ACCOUNT - A convenience account is an account established by one or more parties, the owners, who have authorized one or
more other persons, the convenience signers, to make transactions to the account. All sums on deposit in a convenience account may be paid or
delivered to the account, to the owner(s), or to the convenience signer(s) for the convenience of the owner(s). The convenience signer(s) have no
ownership interest in a convenience account and no voting rights in the Credit Union. The deposit of funds to a convenience account does not affect the
title to the deposit and does not constitute a gift to a convenience signer of the deposit, any additions, or any accruals. If anyone other than an account
owner makes a deposit to a convenience account, the deposit and any additions and accruals are deemed to have been made by an owner. Upon the
death of the last surviving owner, ownership of a convenience account passes as a part of the owner's estate under his or her will or by the applicable
laws of intestacy; a convenience signer has no right of survivorship in the account. We may continue to pay funds in a convenience account to the
convenience signer(s) until we receive written notice from any account owner not to make payment to a convenience signer(s) or until we receive written
notice of the death of the last account owner. We have no duty to inquire about the use or purpose of any transaction made by a convenience signer for
a convenience account except as required by applicable law.
8. DEPOSIT OF FUNDS REQUIREMENTS - Funds may be deposited to any account, in any manner approved by the Credit Union in accordance
with the requirements set forth in the Truth-in-Savings Disclosure. Deposits made by mail, at night depositories, or at unstaffed facilities are not our
responsibility until we receive them. We reserve the right to refuse or to return any deposit.
a. Endorsements. We may accept transfers, checks, drafts, and other items for deposit into any of your accounts if they are made payable to, or
to the order of, one or more account owners even if they are not endorsed by all payees. You authorize us to supply missing endorsements of any
owners if we choose. If a check, draft, or item that is payable to two or more persons is ambiguous as to whether it is payable to either or both, we
may process the check, draft, or item as though it is payable to either person. If an insurance, government, or other check or draft requires an
endorsement, we may require endorsement as set forth on the item. Endorsements must be made on the back of the check or draft within
1½ inches of the top edge, although we may accept endorsements outside this space. However, any loss we incur from a delay or processing error
resulting from an irregular endorsement or other markings by you or any prior endorser will be your responsibility. If we offer a remote deposit
capture service and you have been approved to use the service to make deposits to your account, you agree that, prior to transmitting check or
draft images, you will restrictively endorse each original check or draft in accordance with any other agreement with us that governs this service.
b. Collection of Items. We act only as your agent and we are not responsible for handling items for deposit or collection beyond the exercise of
ordinary care. We are not liable for the loss of an item in transit or the negligence of any correspondent. Each correspondent will only be liable for
its own negligence. We may send any item for collection. Items drawn on an institution located outside the United States are handled on a
collection basis only. You waive any notice of nonpayment, dishonor, or protest regarding items we purchase or receive for credit or collection to
your account. We reserve the right to pursue collection of previously dishonored items at any time, including giving a payor financial institution extra
time beyond any midnight deadline limits.
c. Restrictive Legends. Some checks and drafts contain restrictive legends or similar limitations on the front of the item. Examples of restrictive
legends include "two signatures required," "void after 60 days," and "not valid over $500.00." We are not liable for payment of any check or draft
contrary to a restrictive legend or other limitation contained in or on the item unless we have specifically agreed in writing to the restriction or
limitation.
d. Final Payment. All checks, drafts, automated clearinghouse (ACH) transfers or other items credited to your account are provisional until we
receive final payment. If final payment is not received, we may charge your account for the amount of such items and impose a returned item fee
on your account. Any collection fees we incur may be charged to your account. We reserve the right to refuse or return any item or fund transfer.
e. Direct Deposits. We may offer direct deposit services, including preauthorized deposits (e.g., payroll checks, Social Security or retirement
checks, or other government checks) or preauthorized transfers from other accounts. You must authorize direct deposits or preauthorized transfers
by completing a separate authorization document or process. You must notify us if you wish to cancel or change a direct deposit or preauthorized
transfer. Any cancellation or change will become effective once we receive notice from you and have a reasonable period of time to act on your
request. If your account is overdrawn, you authorize us to deduct the amount your account is overdrawn from any deposit, including deposits of
government payments or benefits. If we are required to reimburse the U.S. Government for any benefit payment directly deposited into your
account, we may deduct the amount returned from any of your accounts, unless prohibited by law.
f. Crediting of Deposits. Deposits will be credited to your account on the day we consider them received as stated in our Funds Availability
Policy Disclosure.
9. ACCOUNT ACCESS
a. Authorized Signature. Your signature on the Account Card, or authentication and approval of your account, authorizes your account access.
We will not be liable for refusing to honor any item or instruction if we believe the signature is not genuine. If you have authorized the use of a
facsimile signature, we may honor any check or draft that appears to bear your facsimile signature, even if it was made by an unauthorized person.
You authorize us to honor transactions initiated by a third person to whom you have given your account information, even if you do not authorize a
particular transaction. In addition to establishing a Savings Account, You may also from time to time request additional Accounts and/or Account
Services be established on Your behalf. We may open additional accounts using the information you supplied on the Membership Application and
Agreement card. The same signer ownership, beneficiaries, and TIN or SSN must be utilized for all additional accounts. Your signature is Your continuing authorization for Cy-Fair Federal Credit Union to follow Your written instructions to do so and You agree that Your continuing
authorization will remain in effect unless We receive written instructions to the contrary.
b. Access Options. You may access your account(s) in any manner we permit including, for example, in person at one of our branch offices, at
an ATM or point-of-sale device, or by mail, telephone, automatic transfer, internet access or mobile application. We may return as unpaid any
check or draft drawn on a form we do not provide, and you are responsible for any losses, expenses or fees we incur as a result of handling such a
check or draft. We have the right to review and approve any form of power of attorney and may restrict account withdrawals or transfers. We may
refuse to honor a power of attorney if our refusal is conducted in accordance with applicable state law.
c. Credit Union Examination. We may disregard any information on any check or draft other than the signature of the drawer, the amount of the
item, and any magnetic encoding. You agree that we do not fail to exercise ordinary care in paying an item solely because our procedures do not
provide for sight examination of items.
10. FUNDS TRANSFERS - Funds transfers we permit that are subject to Article 4A of the Uniform Commercial Code, such as wire transfers, will be
subject to such provisions of the Uniform Commercial Code as enacted by the state where the main office of the Credit Union is located, except as
otherwise provided in this Agreement. ACH transfers are subject to Nacha rules. We may execute certain requests for funds transfers by Fedwire which
are subject to the Federal Reserve Board's Regulation J.
a. Authorization for Transfers/Debiting of Accounts. You may make or order funds transfers to or from your account. We will debit your
account for the amount of a funds transfer from your account and will charge your account for any fees related to the transfer.
b. Right to Refuse to Make Transfers/Limitation of Liability. Unless we agree otherwise in writing, we reserve the right to refuse to execute
any payment order to transfer funds to or from your account. We are not obligated to execute any payment order to transfer funds out of your
account if the amount of the requested transfer plus applicable fees exceeds the available balance in your account. We are not liable for errors,
delays, interruptions or transmission failures caused by third parties or circumstances beyond our control including mechanical, electronic or
equipment failure. In addition, we will not be liable for consequential, special, punitive or indirect loss or damage you may incur in connection with
funds transfers to or from your account.
c. No Notice Required. We will not provide you with notice when funds transfers are credited to your account. You will receive notice of such
credits on your account statements. You may contact us to determine whether a payment has been received.
d. Interest Payments. If we fail to properly execute a payment order and such action results in a delay in payment to you, we will pay you
dividends or interest, whichever applies to your account, for the period of delay as required by applicable law. You agree that the dividend or
interest rate paid to you will be based on the lowest nominal dividend or interest rate we were paying on any account during that period.
e. Provisional Credit for ACH Transactions. We may provisionally credit your account for an ACH transfer before we receive final settlement.
If we do not receive final settlement, we may reverse the provisional credit or require you to refund us the amount provisionally credited to your
account, and the party originating the transfer will not be considered to have paid you.
f. Payment Order Processing and Cut-off Times. Payment orders we accept will be executed within a reasonable time of receipt. Unless we
have agreed otherwise in writing, a payment order may not necessarily be executed on the date it is received or on a particular date you specify.
Cut-off times may apply to the receipt, execution and processing of funds transfers, payment orders, cancellations, and amendments. Funds
transfers, payment orders, cancellations, and amendments received after a cut-off time may be treated as having been received on the next funds
transfer business day. Information about any cut-off times is available upon request. From time to time, we may need to temporarily suspend
processing of a transaction for greater scrutiny or verification in accordance with applicable law. This action may affect settlement or availability of
the transaction.
g. Identifying Information. If your payment order identifies the recipient and any financial institution by name and account or other identifying
number, the Credit Union and any other financial institutions facilitating the transfer may rely strictly on the account or other identifying number,
even if the number identifies a different person or financial institution.
h. Amendments and Cancellations of Payment Orders. Any account owner may amend or cancel a payment order regardless of whether that
person initiated the order. We may refuse requests to amend or cancel a payment order that we believe will expose the Credit Union to liability or
loss. Any request to amend or cancel a payment order that we accept will be processed within a reasonable time after it is received. You agree to
hold us harmless from and indemnify us for all losses and expenses resulting from any actual or attempted amendment or cancellation of a
payment order.
i. Security Procedures. We may require you to follow a security procedure to execute, amend or cancel a payment order so that we may verify
the authenticity of the order, amendment or cancellation. You agree that the security procedure established by separate agreement between you
and the Credit Union is commercially reasonable. If you refuse to follow a commercially reasonable security procedure that we offer, you agree to
be bound by any payment order, whether authorized or not, that is issued in your name and accepted by us in good faith in accordance with the
security procedure you choose.
j. Duty to Report Unauthorized or Erroneous Funds Transfers. You must exercise ordinary care to identify and report unauthorized or
erroneous funds transfers on your account. You agree that you will review your account(s) and periodic statement(s). You further agree you will
notify us of any unauthorized or erroneous transfers within the time frames described in the "Statements" section of this Agreement.
k. Recording Telephone Requests. You agree that we may record payment order, amendment and cancellation requests as permitted by
applicable law.
l. Remittance Transfers. A "remittance transfer" is an electronic transfer of funds of more than $15.00 which is requested by a sender and sent
to a designated recipient in a foreign country by a remittance transfer provider. If we act as a remittance transfer provider and conduct a remittance
transfer(s) on your behalf, the transaction(s) will be governed by 12 C.F.R. part 1005, subpart B - Requirements for remittance transfers. Terms
applicable to such transactions may vary from those disclosed herein and will be disclosed to you at the time such services are requested and
rendered in accordance with applicable law.
11. ACCOUNT RATES AND FEES - We pay account earnings and assess fees against your account as set forth in the Truth-in-Savings Disclosure
and Schedule of Fees and Charges. We may change the Truth-in-Savings Disclosure or Schedule of Fees and Charges at any time and will notify you
as required by law.
12. TRANSACTION LIMITATIONS
a. Withdrawal Restrictions. We will pay checks or drafts, permit withdrawals, and make transfers from the available balance in your account.
The availability of funds in your account may be delayed as described in our Funds Availability Policy Disclosure.
We may also pay checks or drafts, permit withdrawals, and make transfers when you have an insufficient available balance in your account if you have established an overdraft
protection plan or, if you do not have such a plan with us, in accordance with our overdraft payment policy.
We may refuse to allow a withdrawal in some situations and will advise you accordingly if, for example: (1) there is a dispute between account
owners (unless a court has ordered the Credit Union to allow the withdrawal); (2) a legal garnishment or attachment is served; (3) the account
secures any obligation to us; (4) required documentation has not been presented; (5) you fail to repay a credit union loan on time; or (6) we deem it
necessary for any other reason allowed by applicable law. We may require you to give written notice of 7 to 60 days before any intended
withdrawals.
b. Transfer Limitations. We may limit the dollar amount or the number of transfers from your account. Please consult your Truth-in-Savings
Disclosure or your Electronic Fund Transfers Agreement and Disclosure.
13. CERTIFICATE ACCOUNTS - Any term share, share certificate, time deposit or certificate of deposit account (certificate account), whichever we
offer as allowed by applicable federal or state law, is subject to the terms of this Agreement, the Truth-in-Savings Disclosure, the Account Receipt for
each account, and any other documents we provide for the account, the terms of which are incorporated herein by reference.
14. OVERDRAFTS
a. Payment of Overdrafts. If, on any day, the available balance in your share or deposit account is not sufficient to pay the full amount of a
check, draft, transaction, or other item, plus any applicable fee, that is posted to your account, we may return the item or pay it, as described below.
The Credit Union's determination of an insufficient available account balance may be made at any time between presentation and the Credit
Union's midnight deadline with only one review of the account required. We do not have to notify you if your account does not have a sufficient
available balance in order to pay an item. Your account may be subject to a fee for each item regardless of whether we pay or return the item. We
may charge a fee each time an item is submitted or resubmitted for payment; therefore, you may be assessed more than one fee as a result of a
returned item and resubmission(s) of the returned item.
If we offer standard overdraft services, this service allows us to authorize payment for the following types of transactions regardless of whether your
share or deposit account has sufficient funds: (1) share drafts/checks and other transactions made using your checking account, except as
otherwise described below; (2) automatic bill payments; (3) and ACH transactions. For ATM and one-time debit card transactions, you must
affirmatively consent to such coverage. Without your consent, the Credit Union may not authorize and pay an ATM or one-time debit card
transaction that will result in insufficient funds in your account. If you have established a service linking your share or deposit account with other
individual or joint accounts, you authorize us to transfer funds from another account of yours to cover an insufficient item, including transfers from a
share or deposit account, an overdraft line-of-credit account, or other account you so designate. Services and fees for these transactions are
shown in the document the Credit Union uses to capture your affirmative consent and the Schedule of Fees and Charges.
Except as otherwise agreed in writing, if we exercise our right to use our discretion to pay such items that result in an insufficiency of funds in your
account, we do not agree to pay them in the future and may discontinue coverage at any time without notice. If we pay these items or impose a fee
that results in insufficient funds in your account, you agree to pay the insufficient amount, including the fee assessed by us, in accordance with our
standard overdraft services or any other service you may have authorized with us or, if you do not have such protections with us, in accordance
with any overdraft payment policy we have, as applicable.
b. How Transactions are Posted to Your Account. Basically, there are two types of transactions that affect your account: credits (deposits of
money into your account) and debits (payments out of your account). It is important to understand how each is applied to your account so that you
know how much money you have and how much is available to you at any given time. This section explains generally how and when we post
transactions to your account.
Credits. Deposits are generally added to your account when we receive them. However, in some cases when you deposit a check, the full
amount of the deposit may not be available to you at the time of deposit. Please refer to the Funds Availability Policy Disclosure for details
regarding the timing and availability of funds from deposits.
Debits. There are several types of debit transactions. Common debit transactions are generally described below. Keep in mind that there are
many ways transactions are presented for payment by merchants, and we are not necessarily in control of when transactions are received.
• Checks. When you write a check, it is processed through the Federal Reserve system. We receive data files of cashed checks from
the Federal Reserve each day. The checks drawn on your account are compiled from these data files and paid each day. We
process the payments from low to high dollar value.
• ACH Payments. We receive data files every day from the Federal Reserve with Automated Clearing House (ACH) transactions.
These include, for example, automatic bill payments you have authorized. ACH transactions for your account are posted throughout
the day from low to high dollar value.
• PIN-Based Debit Card Purchase Transactions. These are purchase transactions using your debit card for which a merchant may
require you to enter your personal identification number (PIN) at the time of sale. They are processed through a PIN debit network.
These transactions are similar to ATM withdrawal transactions because the money is usually deducted from your account
immediately at the time of the transaction. However, depending on the merchant, a PIN-based transaction may not be immediately
presented for payment.
• Signature-Based Debit Card Purchase Transactions. These are purchase transactions using your debit card that are processed
through a signature-based network. Rather than entering a PIN, you typically sign for the purchase; however, merchants may not
require your signature for certain transactions. Merchants may seek authorization for these types of transactions. The authorization
request places a hold on funds in your account when the authorization is completed. This is referred to as an "authorization hold". An
authorization hold will reduce your available balance by the amount authorized but will not affect your actual balance. The transaction
is subsequently processed by the merchant and submitted to us for payment. This can happen hours or sometimes days after the
transaction, depending on the merchant and its payment processor. These payment requests are received in real time throughout the
day and are posted to your account when they are received.
The amount of an authorization hold may differ from the actual payment because the final transaction amount may not yet be known
to the merchant when you present your card for payment. For example, if you use your debit card at a restaurant, a hold will be
placed in an amount equal to the bill presented to you; but when the transaction posts, it will include any tip that you may have added
to the bill. This may also be the case where you present your debit card for payment at gas stations, hotels and certain other retail
establishments. We cannot control how much a merchant asks us to authorize, or when a merchant submits a transaction for
payment.
For debit card transactions involving merchant authorization holds, there may be a delay between the hold being applied and the
transaction posting to your account. During the delay, intervening transactions may impact the available balance in your account. It is
important to keep in mind that we check your available balance both at the time the merchant's authorization request is received and
again when the transaction settles and posts to your account. If your available balance is insufficient to cover the amount of the
merchant's authorization request, we will decline the request. If your available balance is sufficient to cover the merchant's
authorization request, the request will be approved, and an authorization hold in the amount of the request will be placed on your
account. The transaction will be subsequently processed by the merchant and submitted to us for payment. If the transaction settles
and posts to your account at a time when the available balance is insufficient to pay the transaction without causing an overdraft (i.e.,
posting the transaction results in an available balance of less than $0), we will charge you a fee for overdrawing your account, even
though the available balance in your account was sufficient to cover the transaction at the time it was authorized.
The following example illustrates how this works:
Assume your actual and available balances are both $40, and you use your debit card at a restaurant to pay your bill totaling $30. If
the restaurant requests authorization in the amount of $30, an authorization hold is placed on $30 in your account. Your available
balance is only $10, but the actual balance remains $40. Before the restaurant charge is sent to us for payment, a check that you
wrote for $40 is presented for payment. Because your available balance is only $10 due to the $30 authorization hold, your account
will be overdrawn by $30 when the check transaction is posted to your account even though your actual balance is $40. In this
example, if we pay the $40 check in accordance with our standard overdraft services, we will charge you a fee for overdrawing your
account as disclosed in the Schedule of Fees and Charges. The fee will also be deducted from your account, further increasing the
overdrawn amount. In addition, when the restaurant charge is finally submitted to us for payment, we will release the authorization
hold and pay the transaction amount to the restaurant. The transaction amount may be $30 or a different amount (for example, if you
added a tip). Because the amount of the restaurant charge exceeds your available balance at the time the charge is settled (i.e., at
the time the merchant or its financial institution requests payment or the transaction posts to your account), we will charge you
another fee for overdrawing your account, even though you had a sufficient available balance in your account at the time the
restaurant charge was authorized and approved.
This is a general description of certain types of transactions. These practices may change, and we reserve the right to pay items in any order we
choose as permitted by law.
c. Understanding Your Account Balance. Your checking account has two kinds of balances: the actual balance and the available balance.
Your actual balance reflects the full amount of all deposits to your account as well as payment transactions that have been posted to your account.
It does not reflect checks you have written and are still outstanding or transactions that have been authorized but are still pending. Your available
balance is the amount of money in your account that is available for you to use. Your available balance is your actual balance less: (1) holds placed
on deposits; (2) holds on debit card or other transactions that have been authorized but are not yet posted; and (3) any other holds, such as holds
related to pledges of account funds and minimum balance requirements or to comply with court orders. We use your available balance to determine
whether there are sufficient funds in your account to pay items, including checks and drafts, as well as ACH, debit card and other electronic
transactions. Pending transactions and holds placed on your account may reduce your available balance and may cause your account to become
overdrawn regardless of your actual balance. In such cases, subsequent posting of the pending transactions may further overdraw your account
and be subject to additional fees. You should assume that any item which would overdraw your account based on your available balance may
create an overdraft. You may check your available balance online at www.cyfairfcu.org, at an ATM, by visiting a credit union branch or by calling us
at 281.571.5000 or 888.571.9601.
15. POSTDATED AND STALEDATED CHECKS OR DRAFTS - You agree not to issue any check or draft that is payable on a future date (postdated).
If you do draw or issue a check or draft that is postdated and we pay it before that date, you agree that we shall have no liability to you for such payment.
You agree not to deposit checks, drafts, or other items before they are properly payable. We are not obligated to pay any check or draft drawn on your
account that is presented more than six months past its date; however, if the check or draft is paid against your account, we will have no liability for such
payment.
16. STOP PAYMENT ORDERS
a. Stop Payment Order Request. Any owner may request a stop payment order on any check or draft drawn on the owner's account. To be
binding, the order must accurately describe the check or draft, including the exact account number, check or draft number, and amount of the check
or draft. This exact information is necessary for the Credit Union to identify the check or draft. If we receive incorrect or incomplete information, we
will not be responsible for failing to stop payment on the check or draft. In addition, we must receive sufficient advance notice of the stop payment
order to allow us a reasonable opportunity to act on it. If we recredit your account after paying a check or draft over a valid and timely stop payment
order, you agree to sign a statement describing the dispute with the payee, to assign to us all of your rights against the payee or other holders of
the check or draft, and to assist us in any legal action.
Stop payment orders for preauthorized debit transactions from your account are governed by Regulation E. Please refer to the Electronic Fund
Transfers Agreement and Disclosure for rules regarding stop payments on preauthorized debit transactions.
b. Duration of Order. A written stop payment order is effective for six months and may be renewed for additional six-month periods by
submitting a renewal request in writing, or in a record if allowed by applicable law, before the stop payment order then in effect expires. We do not
have to notify you when a stop payment order expires.
c. Liability. Fees for stop payment orders are set forth in the Truth-in-Savings Disclosure or Schedule of Fees and Charges. You may not stop
payment on any certified check, cashier's check, teller's check, or any other check, draft, or payment guaranteed by us. Although payment of an
item may be stopped, you may remain liable to any item holder, including us. You have the burden of establishing the fact and amount of loss
resulting from the payment of an item contrary to a binding stop payment order. You agree to indemnify and hold the Credit Union harmless from all
costs, including attorney's fees and all damages or claims related to our refusal to pay an item, as well as claims of any joint account owner or of
any payee or endorsee for failing to stop payment of an item as a result of incorrect information provided by you.
17. CREDIT UNION LIABILITY - If we do not properly complete a transaction according to this Agreement, we will be liable for your losses or damages
not to exceed the amount of the transaction, except as otherwise provided by law. We will not be liable if, for example: (1) your account contains an
insufficient available balance for the transaction; (2) circumstances beyond our control prevent the transaction; (3) your loss is caused by your or another
financial institution's negligence; or (4) your account funds are subject to legal process or other claim. We will not be liable for consequential damages,
except liability for wrongful dishonor. We are not responsible for a check or draft that is paid by us if we acted in a commercially reasonable manner and
exercised ordinary care. We exercise ordinary care if our actions or nonactions are consistent with applicable state law, Federal Reserve regulations and
operating letters, clearinghouse rules, and general financial institution practices followed in the area we serve. You grant us the right, in making
payments of deposited funds, to rely exclusively on the form of the account and the terms of this Agreement. Any conflict regarding what you and our
employees say or write will be resolved by reference to this Agreement
18. CHECKS OR DRAFTS PRESENTED FOR PAYMENT IN PERSON - We may refuse to accept any check or draft drawn on your account that is
presented for payment in person. Such refusal shall not constitute a wrongful dishonor of the check or draft, and we shall have no liability for refusing
payment. If we agree to cash a check or draft that is presented for payment in person, we may require the presenter to pay a fee. Any applicable check
or draft cashing fees are stated in the Schedule of Fees and Charges.
19. REMOTELY CREATED CHECKS OR DRAFTS - For purposes of this paragraph, "account" means a transaction account, credit account, or any
other account on which checks or drafts may be drawn. A remotely created check or draft is a check or draft created by someone other than the person
on whose account the check or draft is drawn. A remotely created check or draft is generally created by a third-party payee as authorized by the owner
of the account on which the check or draft is drawn. Authorization is usually made over the telephone or through online communication. The owner of the
account does not sign a remotely created check or draft. In place of the owner's signature, the remotely created check or draft usually bears a statement
that the owner authorized the check or draft or bears the owner's printed or typed name. If you authorize a third party to draw a remotely created check
or draft against your account, you may not later revoke or change your authorization. It is your responsibility to resolve any authorization issues directly
with the third party. We are not required to credit your account and may charge against your account any remotely created check or draft for which the
third party has proof of your authorization.
20. PLEDGE, RIGHT OF OFFSET AND STATUTORY LIEN - Unless prohibited by law, you pledge and grant as security for all obligations you may
have now or in the future, except obligations secured by your principal residence, all shares and dividends and all deposits and interest, if any, in all
accounts you have with us now and in the future. If you pledge a specific dollar amount in your account(s) for a loan, we will freeze the funds in your
account(s) to the extent of the outstanding balance of the loan or, if greater, the amount of the pledge if the loan is a revolving loan. Otherwise, funds in
your pledged account(s) may be withdrawn unless you are in default. You agree we have the right to offset funds in any of your accounts against the
obligation owed to us. Federal or state law (depending upon whether we have a federal or state charter) gives us a lien on all shares and dividends and
all deposits and interest, if any, in accounts you have with us now and in the future. Except as limited by federal or state law, the statutory lien gives us
the right to apply the balance of all your accounts to any obligation on which you are in default. After you are in default, we may exercise our statutory
lien rights without further notice to you.
Your pledge and our statutory lien rights will allow us to apply the funds in your account(s) to what you owe when you are in default, except
as limited by federal or state law. If we do not apply or offset the funds in your account(s) to satisfy your obligation, we may place an administrative
freeze on your account(s) in order to protect our statutory lien rights and may apply or offset the funds in your account(s) to the amount you owe us at a
later time. The statutory lien and your pledge do not apply to any Individual Retirement Account or any other account that would lose special tax
treatment under federal or state law if given as security. By not enforcing our right to apply or offset funds in your account(s) to your obligations that are
in default, we do not waive our right to enforce these rights at a later time.
Security Interests/Cross Collateralization. Any property you pledge at any time now or in the future to the Credit Union as security for a loan from the
Credit Union will also secure all other loans you may have or will have in the future and any other amounts you may owe to the Credit Union now or at
any time in the future, except any loan secured by your principal residence.
21. LEGAL PROCESS - If any legal action is brought against your account, we may pay out funds according to the terms of the action or refuse any
payout until the dispute is resolved, as permitted by law. Any expenses or attorney fees we incur responding to legal process may be charged against
your account without notice, unless prohibited by law. Any legal process against your account is subject to our lien and security interest.
22. ACCOUNT INFORMATION - Upon request, we will give you the name and address of each agency from which we obtain a credit report regarding
your account. We agree not to disclose account information to third parties except when: (1) it is necessary to complete a transaction; (2) the third party
seeks to verify the existence or condition of your account in accordance with applicable law; (3) such disclosure complies with the law or a government
agency or court order; or (4) you give us written permission.
23. NOTICES
a. Name or Address Changes. You are responsible for notifying us of any name or address change. The Credit Union is only required to
attempt to communicate with you at the most recent address you have provided to us. We may require all name and address changes to be
provided in writing. If we attempt to locate you, we may impose a service fee as set forth in the Truth-in-Savings Disclosure or Schedule of Fees
and Charges.
b. Notice of Amendments. Except as prohibited by applicable law, we may amend this Agreement by adding, removing, or changing terms at
any time. We will notify you, in a manner we deem appropriate under the circumstances, of any changes in terms, rates or fees as required by law.
We reserve the right to waive any terms of this Agreement. Any such waiver shall not affect our right to future enforcement.
c. Effect of Notice. Any written notice you give us is effective when we receive it. Any written notice we give to you is effective when it is
provided electronically or is deposited in the U.S. mail, postage prepaid and addressed to you at your statement mailing address, and will be
effective whether or not received by you. Notice to any account owner is considered notice to all account owners.
d. Electronic Notices. If you have agreed to receive notices electronically, we may send you notices electronically and discontinue mailing
paper notices to you until you notify us that you wish to reinstate receiving paper notices.
24. TAXPAYER IDENTIFICATION NUMBER AND BACKUP WITHHOLDING - You agree that we may withhold taxes from any dividends or interest
earned on your account as required by federal, state or local law or regulations. Your failure to furnish a correct Taxpayer Identification Number (TIN) or
meet other requirements may result in backup withholding. If your account is subject to backup withholding, we must withhold and pay to the Internal
Revenue Service a percentage of dividends, interest, and certain other payments. If you fail to provide your TIN within a reasonable time, we may
suspend opening your account or close your account and return the balance to you, less any applicable service fees.
25. STATEMENTS
a. Contents. If we provide a periodic statement for your account, you will receive a periodic statement that shows the transactions and activity on
your account during the statement period as required by applicable law. If a periodic statement is provided, you agree that only one statement is
necessary for joint multiple party accounts. For share draft or checking accounts, you understand and agree that your original check or draft, when
paid, becomes property of the Credit Union and may not be returned to you, but copies of the check or draft may be retained by us or by payablethrough financial institutions and may be made available upon your request. You understand and agree that statements are made available to you
on the date they are mailed to you or, if you have requested, on the date they are made available to you electronically. You also understand and
agree that checks, drafts, or copies thereof are made available to you on the date the statement is mailed to you or is provided to you electronically,
even if the checks or drafts do not accompany the statement.
b. Examination. You are responsible for promptly examining each statement upon receiving it and reporting any irregularities to us. If you fail to
report any irregularities such as forged, altered, unauthorized, unsigned, or otherwise fraudulent items drawn on your account, erroneous payments
or transactions, or other discrepancies that are reflected on your statement within 33 days of the date we sent or otherwise provided the statementto you, we will not be responsible for your loss. We also will not be liable for any items that are forged or altered in a manner not detectable by a
reasonable person, including the unauthorized use of facsimile signature equipment.
Unauthorized electronic fund transfers governed by Regulation E are subject to different reporting periods. Please refer to the Electronic Fund
Transfers Agreement and Disclosure for reporting requirements pertaining to electronic fund transfers.
c. Notice to Credit Union. You agree that the Credit Union's retention of checks or drafts does not alter or waive your responsibility to examine your statements or the time limit for notifying us of any errors. The statement will be considered correct for all purposes, and we will not be liable for any payment made or charge to your account unless you notify us in writing within the above time limit for notifying us of any errors. If you fail to receive a periodic statement, you agree to notify us within 14 days of the time you regularly receive a statement.
d. Address. If we mail you a statement, we will send it to the last known address shown in our records. If you have requested to receive your statement electronically, we will send the statement or notice of statement availability to the last e-mail address shown in our records.
26. INACTIVE ACCOUNTS - As allowed by applicable law, we may classify your account as inactive or dormant and assess a fee if you have not
made any transactions in your account over a specified period of time. The period of inactivity, the fee for servicing an inactive or dormant account, and
the minimum balance required to avoid the service fee, if any, are set forth in our Schedule of Fees and Charges. You authorize us to transfer funds
from another account of yours to cover any service fees, if applicable. To the extent allowed by law, we reserve the right to transfer the account funds to
an account payable or reserve account and to suspend any further account statements. If a deposit or withdrawal has not been made on the account
and we have had no other sufficient contact with you within the period specified by state law, the account will then be presumed to be abandoned. Funds
in abandoned accounts will be reported and remitted in accordance with state law. Once funds have been turned over to the state, we have no further
liability to you for such funds. If you choose to reclaim such funds, you must apply to the appropriate state agency.
27. SPECIAL ACCOUNT INSTRUCTIONS - You may request that we facilitate certain trust, will, or court-ordered account arrangements. However,
because we do not give legal advice, we cannot counsel you as to which account arrangement most appropriately meets the specific requirements of
your trust, will, or court order. If you ask us to follow any instructions that we believe might expose us to claims, lawsuits, expenses, liabilities, or
damages, whether directly or indirectly, we may refuse to follow your instructions or may require you to indemnify us or post a bond or provide us with
other protection. We may require that account changes requested by you, or any account owner, such as adding or closing an account or service, be
evidenced by a signed Account Change Card, Member Services Request, or other document which evidences a change to an account and accepted by
us.
28. TERMINATION OF ACCOUNT - We may terminate your account at any time without notice to you or may require you to close your account and
apply for a new account if, for example: (1) there is a change in owners or authorized signers; (2) there has been a forgery or fraud reported or
committed involving your account; (3) there is a dispute as to the ownership of the account or of the funds in the account; (4) any checks or drafts are
lost or stolen; (5) there are excessive returned unpaid items not covered by an overdraft protection plan; (6) there has been any misrepresentation or
any other abuse of any of your accounts; (7) we reasonably deem it necessary to prevent a loss to us; or (8) as otherwise permitted by law. You may
terminate a single party account by giving written notice. We reserve the right to require the consent of all owners to terminate a joint multiple party
account. We are not responsible for payment of any check, draft, withdrawal, transaction, or other item after your account is terminated; however, if we
pay an item after termination, you agree to reimburse us.
29. TERMINATION OF MEMBERSHIP; LIMITATION OF SERVICES - You may terminate your membership by giving us written notice or by
withdrawing your minimum required membership share, if any, and closing all of your accounts. You may be expelled from membership for any reason
allowed by applicable law. We may restrict account access and services without notice to you when your account is being misused; you have
demonstrated conduct which is abusive in nature; as outlined in any policy we have adopted regarding restricting services; or as otherwise permitted by
law.
30. DEATH OR INCOMPETENCE - We may honor all transfer orders, withdrawals, deposits, and other transactions on an account until we know of an
owner's death or adjudication of incompetence. Even with such knowledge, we may continue to pay checks or drafts drawn on the deceased owner’s
account for a period of ten days after the owner's death unless we receive instructions from any person claiming an interest in the account to stop
payment on the checks or drafts. To the extent permitted by law, we may require anyone claiming funds from a deceased owner’s account to indemnify
us for any losses we sustain if we honor that claim. This Agreement will be binding upon any heirs or legal representatives of any account owner.
31. UNLAWFUL INTERNET GAMBLING AND OTHER ILLEGAL ACTIVITIES - You agree that you are not engaged in unlawful internet gambling or
any other illegal activity. You agree that you will not use any of your accounts, access devices or services for unlawful internet gambling or other illegal
activities. We may terminate your account relationship if you engage in unlawful internet gambling or other illegal activities.
32. SEVERABILITY - If a court holds any portion of this Agreement to be invalid or unenforceable, the remainder of this Agreement shall not be invalid
or unenforceable and will continue in full force and effect. All headings are intended for reference only and are not to be construed as part of the
Agreement.
33. ENFORCEMENT - You are liable to us for any losses, costs, or expenses we incur resulting from your failure to follow this Agreement. You
authorize us to deduct any such losses, costs, or expenses from your account without prior notice to you. If we bring a legal action to collect any amount
due under or to enforce this Agreement, we shall be entitled, subject to applicable law, to payment of reasonable attorney's fees and costs, including
fees on any appeal, bankruptcy proceedings, and any post judgment collection actions.
34. GOVERNING LAW - This Agreement is governed by the following, as amended from time to time: the Credit Union's bylaws; local clearinghouse
and other payment system rules; federal laws and regulations, including applicable principles of contract law; and the laws and regulations of the state of
Texas. As permitted by applicable law, you agree that any legal action regarding this Agreement, except for disputes covered by arbitration, shall be
brought in the county in which the Credit Union is headquartered.
35. CLASS ACTION WAIVER - No member or accountholder may maintain or pursue against the Credit Union a class action, class-wide arbitration, or
private attorney general action. Nor shall any class action, class-wide arbitration, or private attorney general action be pursued by a member against the
Credit Union in any arbitration or in any court proceeding, regardless of when the claim or cause of action arose or accrued, or when the allegations or
facts underlying the claim or cause of action occurred.
36. NEGATIVE INFORMATION NOTICE - We may report information about your loan, share, or deposit accounts to credit bureaus. Late
payments, missed payments, or other defaults on your accounts may be reflected in your credit report.
37. MONITORING AND RECORDING COMMUNICATIONS - We may monitor and record communications between you and us, including telephone
conversations, electronic messages, electronic records, or other data transmissions that affect your accounts or other products and services. Except as
otherwise prohibited by applicable law, you agree we may monitor and record such communications without your approval or further notice to you
38. BINDING ARBITRATION OF CLAIMS AND DISPUTES
RESOLUTION OF DISPUTES BY ARBITRATION: THIS SECTION CONTAINS IMPORTANT INFORMATION REGARDING YOUR ACCOUNTS AND
ALL RELATED SERVICES. IT PROVIDES THAT EITHER YOU OR WE CAN REQUIRE THAT ANY DISPUTES BE RESOLVED BY BINDING
ARBITRATION. ARBITRATION REPLACES THE RIGHT TO GO TO COURT, INCLUDING THE RIGHT TO A JURY TRIAL AND THE RIGHT TO
PARTICIPATE IN A CLASS ACTION OR SIMILAR PROCEEDING. IN ARBITRATION, THE DISPUTE IS SUBMITTED TO A NEUTRAL PARTY, AN
ARBITRATOR, INSTEAD OF A JUDGE OR JURY. ARBITRATION PROCEDURES MAY BE MORE LIMITED THAN RULES APPLICABLE IN COURT.
Agreement to Arbitrate Disputes.
Either you or we may elect, without the other’s consent, to require that any dispute between us concerning your accounts and the services related to your
accounts be resolved by binding arbitration, except for those disputes specifically excluded below.
No Class Action or Joinder of Parties.
YOU ACKNOWLEDGE THAT YOU AND WE AGREE THAT NO CLASS ACTION, CLASS-WIDE ARBITRATION, PRIVATE ATTORNEY GENERAL
ACTION, OR OTHER PROCEEDING WHERE SOMEONE ACTS IN A REPRESENTATIVE CAPACITY, MAY BE PURSUED IN ANY ARBITRATION OR
IN ANY COURT PROCEEDING, REGARDLESS OF WHEN THE CLAIM OR CAUSE OF ACTION AROSE OR ACCRUED, OR WHEN THE
ALLEGATIONS OR FACTS UNDERLYING THE CLAIM OR CAUSE OF ACTION OCCURRED. Unless mutually agreed to by you and us, claims of two
or more persons may not be joined, consolidated, or otherwise brought together in the same arbitration (unless those persons are joint account holders
or beneficiaries on your account and/or related accounts, or parties to a single transaction or related transaction), whether or not the claim may have
been assigned.
Disputes Covered by Arbitration.
YOU ACKNOWLEDGE THAT IN ARBITRATION THERE WILL BE NO RIGHT TO A JURY TRIAL. Any claim or dispute relating to or arising out of
your accounts or the services related to your accounts or our relationship will be subject to arbitration, regardless of whether that dispute or the facts
underlying or giving rise to that dispute arose before or after your receipt of this notice. Disputes include claims made as part of a class action, private
attorney general, or other representative action, it being expressly understood and agreed to that the arbitration of such claims must proceed on an
individual (non-class, non-representative) basis and the arbitrator may award relief only on an individual (non-class, non-representative) basis. Disputes
also include claims relating this arbitration provision’s enforceability, validity, scope, or interpretation. Any questions about whether disputes are subject
to arbitration shall be resolved by interpreting this arbitration provision in the broadest way the law will allow it to be enforced.
All disputes are subject to arbitration, no matter what legal theory they are based on, or what remedy (damages, or injunctive or declaratory relief) they
seek. Disputes include any unresolved claims concerning any services relating to your accounts. Disputes include not only claims made directly by you,
but also made by anyone connected with you or claiming through you, such as a joint account holder, account beneficiary, employee, representative,
agent, predecessor or successor, heir, assignee, or trustee in bankruptcy. Disputes include not only claims that relate directly to the Credit Union, but
also its parent, affiliates, successors, assignees, employees, and agents, and claims for which we may be directly or indirectly liable, even if we are not
correctly named at the time the claim is made. Disputes include claims based on any theory of law, contract, statute, regulation, tort (including fraud or
any intentional tort), or any other legal or equitable grounds, and include claims asserted as counterclaims, cross-claims, third-party claims, interpleaders
or otherwise; and claims made independently or with other claims. If a party initiates a proceeding in court regarding a claim or dispute that is included
under this arbitration provision, the other party may elect to proceed in arbitration pursuant to this arbitration provision.
Disputes Excluded from Arbitration.
Disputes filed by you or by us individually in a small claims court are not subject to arbitration, so long as the disputes remain in such court and advance
only an individual (non-class, non-representative) claim for relief. However, if a matter in small claims court is removed, transferred, or appealed to a
non-small claims court, that claim shall be subject to this arbitration provision. Claims or disputes arising from your status as a borrower under any loan
agreement with the Credit Union are also excluded from this arbitration provision.
Procedures Prior to Filing a Claim in Arbitration
Prior to either party filing a claim in arbitration, they shall first make a written demand upon the other party setting forth their claim. The parties shall then
attempt to resolve the dispute in good faith for a minimum of 60 days before any claim may be filed in arbitration. During this period, both parties agree
to toll any applicable statute of limitations.
Commencing an Arbitration.
The arbitration must either conducted by a neutral arbitrator selected by agreement of the parties or be filed with the following neutral arbitration forum
and follow its rules and procedures for initiating and pursuing an arbitration:
JAMS
1-800-352-5267 (toll-free)
If we initiate the arbitration, we will notify you in writing at your last known address on file. You may obtain a copy of the arbitration rules and additional
information about initiating an arbitration by contacting JAMS.
If you initiate the arbitration, you must notify us in writing at:
Cy-Fair Federal Credit Union
9601 Jones Rd Ste 100
Houston TX 77065
The arbitration shall be conducted in the same city as the U.S. District Court closest to your home address unless the parties agree to a different location
in writing.
If JAMS is unable to or unwilling to handle the claim for any reason, then the matter shall be arbitrated by a neutral arbitrator selected by agreement of
the parties (or, if the parties cannot agree, selected by a court in accordance with the Federal Arbitration Act). The neutral arbitrator selected by the
parties or the court shall apply the Federal Rules of Evidence and the Federal Rules of Procedure concerning discovery, except that the below class
action waiver is specifically enforceable notwithstanding any Federal Rules of Procedure to the contrary.
Administration of Arbitration.
The arbitration shall be decided by a single, neutral arbitrator. The arbitrator will be either a lawyer with at least ten years’ experience or a retired or
former judge selected in accordance with the rules of the arbitration forum. The arbitration will be conducted in accordance with the JAMS Comprehensive Arbitration Rules & Procedures in effect on the date the arbitration is filed or such other rules as to which the parties may agree. If there is a conflict
between a particular provision of the JAMS Rules and this arbitration provision and/or this agreement, this arbitration provision and this agreement will
control.
You understand and agree that the applicable rules and procedures in arbitration may limit the discovery available to you or us. The arbitrator must take
reasonable steps to protect customer account information and other confidential information if requested to do so by you or by us. The arbitrator shall
decide the dispute in accordance with applicable substantive law consistent with the Federal Arbitration Act and applicable statutes of limitations, will
honor claims of privilege recognized at law, and will be empowered to award any damages or other relief provided for under applicable law. The arbitrator
will not have the power to award relief to, or against, any person who is not a party to the arbitration. An award in arbitration shall determine the rights
and obligations between the named parties only, and only in respect of the claims in arbitration, and shall not have any bearing on the rights and
obligations of any other person, or on the resolution of any other dispute. You or we may choose to have a hearing and be represented by counsel.
The decision rendered by the arbitrator shall be in writing. At your or our request, the arbitrator shall issue a written, reasoned decision following
applicable law and relief granted must be relief that could be granted by a court under applicable law. Judgment on the arbitration award may be entered
by any court of competent jurisdiction.
Costs.
The party initiating the arbitration shall pay the initial filing fee. If you file the arbitration and an award is rendered in your favor, we will reimburse you for
your filing fee. If there is a hearing, we will pay the fees and costs of the arbitration for the first day of that hearing. All other fees and costs will be
allocated in accordance with the rules of the arbitration forum. However, we will advance or reimburse filing and other fees if the arbitrator rules that you
cannot afford to pay them or finds other good cause for requiring us to do so, or if you ask us in writing and we determine there is good reason for doing
so. Each party shall bear the expense of their respective attorneys, experts, witnesses, and other expenses, regardless of who prevails, but a party may
recover any or all costs and expenses from another party if the arbitrator, applying applicable law, so determines.
Right to Resort to Provisional Remedies Preserved.
Nothing herein shall be deemed to limit or constrain our right to resort to self-help remedies, such as the right of set-off or the right to restrain funds in an
account, to interplead funds in the event of a dispute, to exercise any security interest or lien we may hold in property, or to comply with legal process, or
to obtain provisional remedies such as injunctive relief, attachment, or garnishment by a court having appropriate jurisdiction; provided, however, that you
or we may elect to arbitrate any dispute related to such provisional remedies.
Arbitration Award.
The arbitrator’s award shall be final and binding unless a party appeals it in writing to the arbitration forum within fifteen days of notice of the award or
pursuant to the rules of the arbitration forum, whichever is later. The appeal must request a new arbitration before a panel of three neutral arbitrators
selected in accordance with the rules of the same arbitration forum. The panel will consider all factual and legal issues anew, follow the same rules that
apply to a proceeding using a single arbitrator, and make decisions based on the vote of the majority. Costs will be allocated in the same manner as
allocated before a single arbitrator. An award by a panel is final and binding on the parties after fifteen days of notice of the award or pursuant to the rules of
the arbitration forum, whichever is later. A final and binding award is subject to judicial intervention or review only to the extent allowed under the Federal
Arbitration Act or other applicable law. A party may seek to have a final and binding award entered as a judgment in any court having jurisdiction.
Governing Law.
You and we agree that our relationship includes transactions involving interstate commerce and that this arbitration provision is governed by, and
enforceable under, the Federal Arbitration Act. To the extent state law is applicable, the laws of the State of Texas shall apply.
Severability, Survival.
This arbitration provision shall survive (a) termination or changes to your accounts or any related services; (b) the bankruptcy of any party; and (c) the
transfer or assignment of your accounts or any related services. If any portion of this arbitration provision is deemed invalid or unenforceable, the
remainder of this arbitration provision shall remain in force. No portion of this arbitration provision may be amended, severed, or waived absent a written
agreement between you and us.
Right to Reject this Arbitration Provision.
You have the right to opt-out of this agreement to arbitrate if you opt out within 30 days after you have opened or joined your first account with us, either
as a member or as a joint accountholder. However, if we sent or offered you this or any version of an agreement to arbitrate with a notice for the first
time after your first account was opened, you must opt out within 30 days after we sent our notice and the agreement. To opt-out, send us written notice
as follows: (i) your written notice must include your name, as listed on your account, your account number, and a statement that you reject this
agreement to arbitrate, and, (ii) you must send your written notice to us at the following address: Cy-Fair Federal Credit Union, 9601 Jones Road Ste
100, Houston TX 77065 or operations@cyfaircu.org