Effective Date: 07/21/11

The Funds Availability Policy and Disclosure describes your ability to withdraw funds as a member of IEG Federal Credit Union. This disclosure applies only to transaction accounts. IEG Federal Credit Union has the right to delay the availability of funds that you deposited to non-transaction accounts for a longer period of time.

Our policy is to make deposited funds available immediately except under certain circumstances listed below. Generally speaking, the funds you deposit on any business day during normal business hours will be immediately available for withdrawal. Everyday is a business day, except Saturday, Sundays, Holidays, and days that the Credit Union is closed. Any deposit made on one of the excepted days or after normal business hours is considered to be have been made the next business day.

The Credit Union conscientiously informs members of its Funds Availability policy by providing a disclosure before a person opens a new account, upon request, and on the website.

Same Day Availability. Funds from the following deposit are available on the same day the deposit is made.

• Wire Transfer
• U.S. Treasury checks payable to you
• Electronic Direct Deposit
• IEG FCU On-Us Drafts
• unds from the following deposit are also available if deposit is made in person to any one of our employees.
• Tellers, Cashiers, & Certified check(s) payable to you
• U.S. Postal Money Order payable to you
• Federal Reserve Bank checks & Federal Home Loan Bank checks payable to you
• State & Local Government check(s) payable to you
• Cash

If you do not make your deposit in person to one of our employees (example: mail, drop box, or someone else), funds will be available by the second (2nd) business day after the day of your deposit.

Longer Delays may apply on your deposit if it falls under any one of the following circumstances:

• We believe a check you deposit will not be paid.
• You deposit checks totaling more than $5,000 in any one day.
• You redeposit a check that has been returned unpaid.
• You have overdrawn your account repeatedly in the last six months.
• There is an emergency such as an interruption of communications or computer equipment.

We will notify you if we delay your ability to withdraw funds for any of these reasons and notify you when the funds will be available. Funds are generally available no later than the twelfth (12th) business day after the day of your deposit.

Reservation of Right to Hold. We will tell you if a hold will be placed on the deposit and when the funds will be available. If the deposit is made by other means (or if we decide to place a hold after you as a depositor has left the Credit Union building), we will mail a notice no later than the first business day after we receive the deposit.

We will make the first $200 of the total of each day’s deposit available on the 1st business day after the deposit. Funds from deposits place on hold are generally available the 2nd business day for local checks and the 6th business day for non-local checks after the day of deposit.

a. Local Check(s). The first $200 from a deposit of local check(s) will be available on the (1st) business day after the day of your deposit. Remaining funds from a local check(s) deposited will be available on the (3rd) business day after the day of deposit. For example, if a deposit of $900 is made on Monday, $200 will be available on Tuesday. The remaining balance is available on Thursday.

b. Non-Local Check(s). The first $200 from a deposit of non-local check(s) will be available on the (1st) business day after the day of your deposit. Remaining funds will be available on the (6th) business day after the day of deposit. For example, if a deposit of $900 is made on Monday, $200 will be available on Tuesday. The remaining balance is available on Tuesday, of the following week.

c. Local and Non-Local Check(s). If you deposit both local and non-local checks, $200 will be available by the 1st business day after the day of your deposit, not $200 from each category of check.

d. Foreign checks are checks drawn on or payable at or payable through a paying bank OUTSIDE the United States of America. IEG Federal Credit Union DOES NOT accept foreign checks.

Holds on Other Funds. When cashing a check that is drawn on another financial institution, we reserve the right to hold back equivalent amount of funds that are already in your account. We will treat such hold, as we would place a hold on any check(s) you deposit. The funds we place on hold in your account will not be available for withdrawal until the time we described in this disclosure.

Case-By-Case Holds. The Credit Union will place a hold on deposits where evidence suggests a forgery or fraud. If the Credit Union decides to impose a case-by-case hold, it will immediately deliver proper notice to the member. If for some reason the Credit Union fails to deliver notice at the time of the transaction, the Credit Union will refund any return check fees or overdraft fees assessed.

Specific Exception Holds. The Credit Union may place a specific exception hold where the transaction involves reasonable belief that the check is uncollectible; repeated overdrafts; new accounts; large deposits; redeposited items; and emergency conditions. In these situations, the Credit Union may hold local checks for 5 additional business days and non-local checks for 6 additional business days.

Specific Exceptions:

Uncollectible Checks:

1) Stale dated check (over six months old)

2) Improper Endorsement

3) Evidence suggests that the member is engaged in check kiting

4) Credit Union has received notice of dishonor from the financial institution against which the check is drawn

5) Repeated Overdrafts: An account will retain its “repeated overdraft” status for 6 months from the last overdraft.

Deposits Exceeding $5,000:

The Credit Union may apply this exception to aggregate deposits in multiple accounts that exceed $5,000 in one day

Re-Deposited Items:

Items previously returned by the paying institution for non-technical reasons (i.e., missing endorsement or the check is post-dated)

Emergency Conditions:

Conditions such as war, earthquake, fire, flood, power or equipment failure, suspension of payments from another financial institution or any other emergency. A hold will be placed on the funds for a reasonable time after the emergency has passed

(A) Notice:

If the Credit Union decides to impose a case-by-case hold, it will immediately deliver proper notice to the member. The notice will include:

1) Member’s name and account number

2) Date and amount of deposit

3) Reason for the hold

4) Date the funds will be available

Notice can be delivered by mail, fax or email if the member agrees to receive such information in this manner and if it can be downloaded and printed

Substitute Checks. The Check Clearing for the 21st Century Act (Check 21) enables financial institutions to send checks to each other electronically, and enables the Credit Union to receive a paper copy of the electronic check (called a “substitute check”).

Substitute checks are the legal equivalent of a paper check for all purposes. The Credit Union is not required to create substitute checks, but must accept them.

Legend. The substitute check will state “This is a legal copy of your check. You can use it in the same way you would use the original check.”

Disclosure. The Credit Union will provide members with a disclosure that a substitute check is the legal equivalent of an original check, along with the member rights that apply when a member in good faith believes that a substitute check was not properly charged to his/her account. The disclosure will be provided in the following circumstances:

1) Whenever a new account is opened

2) At the request of our member

New Account Special Rules. For new members at IEG Federal Credit Union, the following special rules will apply during the first 30 days.

Funds that you deposited at IEG Federal Credit Union in cash, wire transfers, and the first $5000 of a single deposit in any one single day in cashier’s check, teller’s, certified, traveler’s, federal, state, and local government checks will be available the next business day of your deposit. If your deposit is not made in person to any employee of IEG Federal Credit Union, the first $5000 will be available only on the second business day of your deposit. Remaining funds will be available on the 9th business day following the day of your deposit. U.S. Treasury checks are exempted from the above rule.

Non-propriety ATMs Deposits. If you make a deposit whether in cash or in check(s), at an ATM that we do not own or operate, funds will not be available until the fifth business day after the day of your deposit