Small Business Checking Account Truth-in-Savings Disclosure

1. Business Use Only. You agree that the account will be used for business purposes only, and will not be used for personal, family or household purposes. You acknowledge and agree that this is material inducement to our allowing the account to be opened and maintained; and that we have no obligation or duty to monitor use of the account.

2. Rate Information. The dividend rate and corresponding annual percentage yield that you will receive will depend on whether your average daily balance for your account for the dividend period is in Tier 1, Tier 2, or Tier 3. We will pay the applicable dividend rate with the corresponding annual percentage yield on your entire average daily balance for your account for the dividend period. For example, if the average daily balance in your account is $10,000 or more you will receive the Tier 3 dividend rate with the corresponding Tier 3 annual percentage yield on the entire average daily balance in your account of the dividend period. If the average daily balance in your account is $5,000 or more, but less than $10,000, you will receive the Tier 2 dividend rate with the corresponding Tier 2 annual percentage yield on the entire average daily balance in your account for the dividend period. If your average daily balance is $1,000 or more, but less than $5,000, you will receive the Tier 1 dividend rate with the corresponding Tier 1 annual percentage yield on the entire average daily balance in your account for the dividend period. We determine the average daily balance for each account separately. We do not combine the balances in your Small Business Checking Account with any other account to determine your dividend rate or annual percentage yield. The dividend rate and annual percentage yield may change each dividend period as determined by the Credit Unionœs Board of Directors.

3. Compounding and Crediting. Dividends will be compounded monthly and will be credited on the last day of each month. The dividend period for each account is monthly. The dividend period begins on the first calendar day of the period and ends on the last day of the period. If you close your Small Business Account before dividends are paid, you will not receive the accrued dividends.

4. Minimum Balance Requirements. . You must deposit at least One Thousand Dollars ($1,000) to open this account. You must maintain a minimum average daily balance of One Thousand Dollars ($1,000.00) in your account to avoid a service fee. If during any month your account falls below the required minimum average daily balance, your Small Business Account will be subject to a service fee of Ten Dollars ($10.00) for that month.

5. Balance Computation Method. Dividends are calculated by the average daily balance method which applies a periodic rate to the average daily balance in your account for the period. The average daily balance is calculated by adding the balance in the account for each day of the period and dividing that figure by the number of days in the period.

6. Accrual of Dividends. Dividends will begin to accrue on the business day you deposit cash and non-cash (e.g. checks) items to your account.

7. Fees and Charges. The fees and charges that may be assessed against your account are set forth in the Fee Schedule.

8. Transaction Limitations. The Credit Union reserves the right, at any time, to require members to give, in writing, not more than 60 days notice of intention to withdraw the whole or any part of the amounts paid in by them. No member may withdraw shareholdings that are pledged as required as security on loans without the written approval of the credit committee or a loan officer, except to the extent that such shares exceed the memberœs total primary and contingent liability to the Credit Union. No member may withdraw any shareholdings below the amount of his or her primary or contingent liability to the Credit Union if the member is delinquent as a borrower, or if borrowers for whom the member is a comaker, endorser, or guarantor are delinquent, without the written approval of the credit committee or loan officer.

9. Nature of Dividends. Dividends are paid from current income and available earnings after required transfers to reserves at the end of a dividend period.

10. National Credit Union Share Insurance fund. Member accounts in this Credit Union are federally insured by the National Credit Union Share Insurance Fund.

11. Other Terms and Conditions. You acknowledge and agree that this is material inducement to our allowing the account to be opened and maintained; and that we have no obligations or duty to monitor use of the account.

If this Small Business Account Truth-in-Savings Disclosure was given to you as a result of your request for information, please note that the dividend rates and corresponding annual percentage yields may change each month, as determined by the Credit Union's Board of Directors. For the most current information on Small Business Account dividend rates and corresponding annual percentage yields, please call 930-7700 (neighbor islands call 1-800-514-2328 or 1-877-331-3148). You may also call our phone teller system (CALL24) at 329-9440 (neighbor islands call 1-800-303-9440).