Check Hold Policy

Funds Availability Policy Disclosure

This disclosure describes your ability to withdraw funds at METRO Federal Credit Union. It only applies to the availability of funds in transactions accounts. The credit union reserves the right to delay the availability of funds deposited to accounts that are not transaction accounts for a period longer then those disclosed in this policy.

1. General Policy - Our policy is to make funds from your deposits available to you on the day we receive your deposit. Funds from electronic deposits or wire transfers to your account will be available on the day we receive the deposit. At that time, you can withdraw the funds in cash and we will use the funds to pay checks that you have written. For determining the availability of your deposits, every day is a business day, except Saturdays, Sundays, and federal holidays. If you make a deposit during our normal business hours on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit after our normal business hours, or on a day we are not open, we will consider that the deposit was made on the next business day we are open.

2. Same Day Availability - The following items will be given "same-day" availability if all endorsement guidelines are met (the payee of the check must be the same as the name on the account). Same-day availability means that no holds will be placed on the deposited item. These items include:

· Cash

· Wire Transfers

· Electronic Funds Transfers (Direct Deposit, ACH Deposits)

· Checks drawn on METRO Federal Credit Union

· U.S. Treasury checks

· State of Illinois and local government checks including city, county, township and village checks

· Payroll checks directly issued by one of our Sponsoring Employers

· Official Checks, including Cashier's, Certified, and Treasurer’s Checks (issued by U.S. Financial

Institutions and payable in U.S. dollars.)

3. Delayed Availability - Our policy is to delay the availability of some certain types of checks that are deposited into your accounts. During the delay, you may not withdraw the funds in cash and your Credit union will not use the funds to pay checks that you have written.

1. The "delayed availability" will apply to the following types of checks: (a) personal checks; (b) Money Market Account checks; (c) Cash Management Account checks; (d) Credit Card checks; (e) Money Orders; (f) Third Party checks; (g) and Payable Through checks. A deposit accepted while the data processing system is not on line will be considered received when the transaction is posted on your Credit Union's records.

2. The categories of checks listed immediately above will be subject to delayed availability as follows:

a. Local checks. The first $100 from a deposit of local checks will be available on the same business day as the day of your deposit. The remaining funds will be available on the second business day after the day of your deposit. For example, if you deposit a local check of $700 on a Monday, $100 of the deposit is available on Monday. The remaining $600 is available on Wednesday.

b. Non-local checks. The first $100 from a deposit of non-local checks will be available the same business day as the day of your deposit. The remaining funds will be available on the fifth business day after the day of your deposit. For example, if you deposit a $700 non-local check on a Monday, $100 of the deposit is available on Monday. The remaining $600 is available on the following Monday.

c. How do I know if a check is considered local or non-local? Local checks are defined as institutions which process their checks through the Chicago Federal Reserve District Check Processing Center. Financial Institutions with routing numbers beginning with a “07” or “27” or “67” are considered local checks. All other checks beginning with a different routing number are considered non-local. S

4. Longer Delays May Apply - We may delay your ability to withdraw funds deposited by check into your account an additional number of days for these reasons:

· The check is deposited within 30 calendar days of the opening of the account.

· The check is being deposited into an account with a history of collection problems.

· We believe the check you deposited will not be paid.

· You deposit checks totaling more than $5,000 on any day.

· You redeposit a check that has been returned unpaid.

· There is a failure of communications or computer equipment.

We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. Funds will generally be available no later than the eleventh business day after the day of your deposit.

5. Automated teller machine deposits - If you make a deposit to an ATM before 2:00 p.m. on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit to an ATM after 2:00 p.m. or on a day we are not open, we will consider that the deposit was made on the next business day we are open. Availability of Funds: If your deposit made at automated teller machines (ATMs) was made before 2:00pm, the funds will be available the next business day, if your deposit was made at after 2:00pm, the funds will be available the second business day.

6. Holds on Other Funds - If the check is not of the “Same Day Availability” type, and the check is cashed, we may withhold the availability of a corresponding amount of collected funds already in your account. The funds in the account would then not be available for withdrawal until the check hold period for that check type expires.

7. Special Rules for New Accounts - If you are a new member, the following special rules will apply during the first 30 days your account is open. Funds from cash, wire transfers, and electronic direct deposits to your account will be available on the same day which we receive the deposit. Funds from check deposits as described in the “Delayed Availability” sections will be available as follows: Local Checks: funds will be available on the fifth business day after the day of your deposit. Non-Local Checks: funds will be available on the seventh business day after the day of your deposit.

8. Foreign Checks - Checks drawn on financial institutions located outside the U.S. (foreign Checks) cannot be processed the same as checks drawn on U.S. financial institutions. Foreign checks are exempt from the policies outlined in this disclosure. Generally, the availability of funds for deposit of foreign checks will be delayed for the time it takes us to collect the funds from the financial institution upon which it was drawn. A fee may be charged for foreign transactions. Refer to our Rate and Fee Schedule.

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Definitions:

Local vs. Non-Local

How do I know if a check is considered local or non-local?

The first two digits of the routing number indicate the locality of the check. Local numbers for METRO Credit Union are as follows:

Local checks are defined as institutions which process their checks through the Chicago Federal Reserve District Check Processing Center. Financial Institutions with routing numbers beginning with a “07” or “27” or “67” are considered local checks. All other checks beginning with a different routing number are considered non-local. S

The two digit numbers represent the following financial institutions:

o 07 Primary Institutions ( Bank)

o 27 Thrift Institutions (Credit Unions, Savings and Loans)

o 67 Electronic Institutions (Internet Based)

Third Party – A check payable to one party who endorses the check over to another party. All payees must endorse the check regardless of the amount.

State or Local Government, U.S. Treasury Checks and Insurance Checks – These items must be endorsed exactly as printed and all parties named on the check(s) must be present (with valid I.D.) or named on the account of deposit in order for the credit union to accept these items for deposit or cashing. Regardless of the amount we do not accept third party checks referenced in this section.