The purpose of this policy is to address the concerns and procedures relative to an individual's enrollment into, termination from and re-admission into the EPB Employees Credit Union. This policy defines the moment when Credit Union services and obligations begin and end and at what moment such services and obligations can begin again.

Note that the terms "subscription of shares" and "redemption of shares" are used interchangeably with the terms "deposits" and "withdrawals" respectively.

1. Field of Membership (FOM):

1. Individuals that are eligible to join the Credit Union do so through subscription of shares based on a FOM that is closely regulated under a charter granted by the Department of Financial Institutions, Credit Union Division, State of Tennessee. Article III, Section 1 of the Credit Union bylaws defines this field.

2. The Board of Directors authorizes management and staff to encourage membership in the Credit Union by providing a streamlined process to complete the subscription of shares.

2. Application/subscription of shares:

1. ** The appropriate application/ownership form(s) must be signed and submitted to the Credit Union before the subscription of shares can be recorded. A Membership Officer or other appropriate Credit Union personnel will examine each application for FOM qualification purposes, OFAC Policy requirements, USA Patriot Act identification requirements and Credit Union guidelines. Each qualified individual will be assigned a membership number from the membership role book.

2. A subscription of shares is measured by the amount of funds on deposit in the Credit Union. The minimum subscription for membership is six shares (Bylaws, Article III, Section 2) each with a par value of $5 (Article X, Section 2). Therefore, a minimum of $30 must be on deposit in the Primary Share Savings Account to establish and to maintain membership in this Credit Union.

3. Membership begins:
1. Official membership begins upon the completion of all of the following:
1. the submission and qualification of the "account card" application/ownership form,
2. the minimum subscription of six shares in the Primary Share Savings Account,
3. the payment of an enrollment fee of $1.

2. Funds for the subscription of shares are recorded on the Credit Union books as a $30 (or more) share deposit into a Primary Share Savings Account plus a $1 payment as an enrollment fee which is immediately taken into income. The share deposit is eligible for redemption, the $1 fee is not.

3. An individual must have his/her own tax identification number before subscription of shares is allowed. The individual must be in compliance with all USA Patriot Act laws and Credit Union policy guidelines.

4. The Board of Directors hereby waives the $1 enrollment fee if the individual is a qualifying infant no older than six months of age. Further, the Board authorizes at Credit Union expense, the purchase of the first six shares of subscription for the infant if the infant is no older than six months of age. A parent, grandparent or legal guardian must agree to be responsible for the minor's account(s).

5. A grandparent may establish a new membership for a minor grandchild. The grandparent can be a joint owner and can agree to be responsible for the minor's account(s). However, the establishment of such an account cannot infringe upon the parental rights of the parent(s) to withdraw funds or to close a minor child's account at any time. All shares in that grandchild's account(s) will be considered owned by that grandchild.

6. Minors must have at least one parent or grandparent or legal guardian to sign as joint owner and to agree to be responsible for the minor's account(s). If at all possible, the minor should sign the membership card also. At age 16 years or older, minors will be allowed to purchase additional or to redeem all shares (deposit or withdraw funds) without joint owner acknowledgement. Minors can have share draft accounts beginning at age 16 provided the parent, grandparent or legal guardian agrees to be responsible for the minor's share draft account until the minor attains 18 years of age.

7. An individual must be at least 18 years of age to join the Credit Union without a joint owner.

8. A member may have more than one share savings account, however, the Primary Share Savings Account must remain open with the minimum subscription of shares. An example of accounts the same individual membership can have:

For member number: 5432
Primary Share Savings Account: 54320.A
Secondary accounts: 54320.B-Z & 1 (shown on statement for 54320.A above)
(includes share, share draft, money market, club, IRA savings & certificate and loans)
Secondary share accounts: 54322 - 54329 (each # generates separate statement)
(54322.B-Z through 54329.B-Z includes shares, certificates and loans only)

9. Separate "account cards" will be used to specify different joint owners or beneficiaries on different accounts. Otherwise, the Credit Union will assume all deposit accounts the member has will be treated according to the specifications of the current Primary Share Savings Account card.

10. New memberships will be reported to the Board of Directors on a regular basis.

11. The appropriate Truth-in-Savings disclosures will be given upon account opening.

Membership ceases in this Credit Union immediately upon the redemption of all shares from the Primary Share Savings Account.

1. Voluntary Withdrawal:

1. A member that requests the closure of the Primary Share Savings Account for any reason is considered to be voluntarily withdrawing membership in this Credit Union. All services associated with membership shall cease immediately with that withdrawal. However, the member must keep open the Primary Share Savings Account, with the minimum required number of shares, until all other share deposits are paid out, all loans are paid off in full, and all other obligations to the Credit Union are satisfied.

2. All voluntarily withdrawing members are automatically eligible for reinstatement of membership without Board approval. However, the Primary Share Savings Account cannot be reopened or other services offered for a period of 30 days from the time of initial closure. Management is authorized to shorten the 30-day period on a case-by-case basis.

3. Only the actual member can withdraw the minimum number of shares required for membership. However, in the case of a minor, all shares may be withdrawn by a parent or joint owner, which will result in the minor's membership termination.

4. Members age 16 years or older may withdraw shares (including the minimum number required for membership) without parent or joint owner acknowledgement.

5. Joint owners can withdraw Primary Share Savings Account shares down to, but not including the required minimum shares, if the member is eighteen years of age or older.

6. In the case of garnishment, all funds on deposit will be sent as ordered by the court except for the minimum required membership shares and any Individual Retirement Account (IRA) funds.

7. In the case of a Department of the Treasury/Internal Revenue Service Notice of Levy, all funds will be sent as requested except for the required minimum shares.

8. In the case of a member's death, the Credit Union requires that all shares, including the minimum required shares, be applied to any outstanding loans or other obligations to the Credit Union prior to disbursement of funds to any joint owner, beneficiary or estate (Bylaws, Article X, Section 8 "right of setoff"). If, in the judgement of the Credit Union, all loans and obligations to the Credit Union will be satisfied by the payment of funds through the CUNA Mutual Group Loan Protection and Life Savings Insurance program, then said share withdrawal may occur provided the minimum required shares remain on deposit. Once all obligations to the Credit Union are met, the remaining shares can be paid out in full.

9. The occasional withdrawal of shares from the Primary Share Savings Account that temporarily lowers the account below the minimum requirement, but does not close it out, will cause the member to become a "member not in good standing." Credit Union services can continue, but the deficit must be corrected within 90 days. Otherwise, the member will automatically become suspended and treated accordingly.

10. Voluntary withdrawals of membership will be reported to the Board on a regular basis.

2. Suspension:

1. A member is considered suspended when the Credit Union (rather than the member) closes out the Primary Share Savings Account under certain circumstances. A suspension is considered temporary in that the cause for suspension can be remedied and the membership reactivated immediately. However, as long as the suspension lasts, the member will not be able to use any Credit Union service.

2. Repetitive withdrawals from the Primary Share Savings Account below the minimum requirement will be sufficient cause for the Credit Union to withdraw all remaining shares and to suspend the membership. If the Primary Share Savings Account balance remains below the minimum requirement for 90 days or more, the member will become automatically suspended and the account and any other services in use will be terminated without notice.

3. Abuse of any Credit Union service (credit card, share draft account, Visa Check Card, etc.) will be sufficient cause to suspend the member and/or one or more of those services including the withdrawal and closure of the Primary Share Savings Account.

4. The Credit Union will withdraw all remaining shares to comply with state escheat laws and to conform to any rules or regulations.

5. Suspended memberships will not be counted in the Credit Union active membership total. Each suspension will be reported to the Board of Directors via the Membership Report on a regular basis.

6. Suspended members can (immediately and without Board approval) remedy their suspension by paying or depositing all funds necessary to cover any negative balances, unpaid fees, any other obligations to the Credit Union, and to comply with the minimum subscription of shares.

7. Suspended members that remedy their situation and reactivate their Primary Share Savings Accounts will not be subject to additional enrollment fees.

8. Reinstated suspensions will be reported to the Board on a regular basis.

9. In the event of a loan charge-off, all shares, including the minimum requirement, will be applied by the Credit Union to a loan charge-off according to the bylaws, Article X, Section 8 ("right of setoff"). Such action will also result in immediate membership suspension. Membership suspension does not relieve the individual of any remaining liability to the Credit Union (Article XI, Section 1).

10. In the event of Chapter 13 Bankruptcy, the Primary Share Savings Account can remain open provided the member remains in good standing with the Credit Union. All membership privileges can continue only if regular loan payments are made to the Credit Union for all loan obligations. However, should Bankruptcy Court payments become sporadic or not made, the Credit Union will withdraw all remaining shares and apply said shares to any outstanding obligations. Such action will also result in immediate membership suspension and termination of all services without notice. Membership suspension does not relieve the individual of any remaining liability to the Credit Union (Article XI, Section 1).

11. In the event of Chapter 7 Bankruptcy, the Primary Share Savings Account can remain open provided the member remains in good standing with the Credit Union. However, if the member causes a loss to the Credit Union through loan charge off or other obligation failure, the Credit Union will withdraw all remaining shares and apply said shares to any outstanding obligations. Such action will also result in immediate membership suspension and termination of all services without notice. Membership suspension does not relieve the individual of any remaining liability to the Credit Union (Article XI, Section 1).

3. Membership Expulsion:

1. Only the Board of Directors has authority to expel a member according to Bylaws, Article XI.

2. Membership expulsion differs from suspension in that the Board of Directors must mandate a member's termination for reasons not already included in paragraphs A and B above. Members are considered "suspended" and not expelled whenever a loan(s) or share draft account is charged off. All shares in the Primary Share Savings Account will be applied to any outstanding loan balance or deficit share draft account at the time of loan(s) charge off (Bylaws, Article X, Section 8 "right of setoff").

3. Bylaws, Article XI requires that "no member be expelled until he has been informed, in writing, of the charges against him and has had an opportunity to be heard." To comply with Bylaws, Article XI as much as possible, a member's right to be heard by the Board will continually be made available to the former member.

4. Only the Board can reinstate an expelled member.

5. Bylaws, Article XI requires that "no member be expelled until he has been informed, in writing, of the charges against him and has had an opportunity to be heard." However, to comply with Bylaws, Article XI as much as possible, an expelled member's right to be heard by the Board will continually be made available to the former member.

The reopening of the Primary Share Savings Account marks the beginning again of membership in this Credit Union. A former member must meet certain qualifying requirements before the Primary Share Savings Account can be reopened. All Credit Union membership services may not immediately be restored depending on the former member's prior Credit Union service.

1. Automatic (Voluntary) Reinstatement:

1. Voluntarily withdrawn members may immediately reactivate their Primary Share Savings Account as many as two more times without prior Board approval provided a reactivation period of at least 30 days since closure has passed. Management may shorten this period on a case-by-case basis. This count includes suspension closures also. The Board of Directors must approve in advance a third reactivation (fourth opening).

2. A new Application for Membership must be completed and submitted.

3. The individual will qualify for membership according to the field of membership rules in effect at the time of the original joining. The individual must be in compliance with all USA Patriot Act laws and Credit Union policy guidelines.

4. A Primary Share Savings Account must be reopened and the minimum required number of shares must remain under subscription at all times (a $30 balance must remain at all times).

5. A membership fee is NOT collected on reinstatements.

6. The reinstated individual's name must appear on the monthly Membership Report to the Board.

2. Suspended Membership Reinstatement:

1. The Primary Share Savings Account can be reopened immediately without prior Board approval provided all requirements of Suspended Membership Reinstatement have been met.

2. Suspended members may immediately reactivate their Primary Share Savings Account as many as two more times provided a reactivation period of at least 30 days since closure has passed. Management may shorten this period on a case-by-case basis. This count includes voluntary closures also. The Board of Directors must approve in advance a third reactivation (fourth opening).

3. A new Application for Membership must be completed and submitted.

4. The individual will qualify for membership according to the field of membership rules in effect at the time of the original joining.

5. A Primary Share Savings Account must be reopened and the minimum required number of shares must remain under subscription at all times (a $30 balance must remain at all times).

6. A membership fee is NOT collected on reinstatements.

7. The reinstated individual's name must appear on the monthly Membership Report to the Board.

8. The former member must agree to immediate payment of any funds owed to the Credit Union because of the following circumstances:

1. The negative balance in any share savings account type (including share draft accounts) at the time of closure.
2. Any unpaid fees not already included in the above balances.
3. The remaining principal balance of any and all loans outstanding at the time of charge off.
4. Unpaid interest through the day of charge off on any loan outstanding at the time of charge off.

3. Expelled Membership Reinstatement:

1. An individual's membership application must be submitted to the Board of Directors if the Board previously expelled the member. The Board will determine the conditions for such reinstatement on a case by case basis.

2. If an individual's membership has been closed out at least 3 times either voluntarily or suspension, the application must be submitted to the Board of Directors for reinstatement.