Except as specifically described, the following disclosures apply to all accounts.

1. Dividend Rate Information: The Dividend Rate and Annual Percentage Yield on your accounts as of the last dividend declaration date are set forth. The Annual Percentage Yield is a percentage rate that reflects the total amount of dividends to be paid on an account based on the dividend rate and frequency of compounding for the type of account. The Annual Percentage Yield for certificates is based on an assumption the dividends will remain on deposit until maturity. A withdrawal will reduce earnings. Tne Dividend Rate and Annual Percentage Yield may change monthly as determined by the Credit Union's Board of Directors.

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

3. Compounding and Crediting: Dividends will be compounded and credited as set forth in brochures for regular shares, clubs, drafts and certificate accounts. Brochures may be picked up at the Credit Union.

4. Balance Information: Each type of account has it's own minimum balance requirements. Call the Credit Union for details. Dividends and minimum balances are calculated using the Average Daily Balance method. The Average Daily Balance is determined by adding the full amount of principal in the account for each day of the period and dividing that figure by the number of days in that period.

5. Accrual of Dividends: Dividends will begin to accrue on cash deposits on the business day you make the deposit to your account. Dividends will begin to accrue on noncash deposits (e.g. checks) on the business day you make the deposit to your account.

6. Transaction Limitations: After your certificate account is opened, you may not add funds to your account but may make withdrawals of dividends from your account in any amount as indicated.

7. Maturity: Your certificate account will mature within the term set forth or the maturity date set forth on your Certificate or Maturity Notice. The Credit Union will give the owner(s) at least 30 days' notice prior to maturity.

Early Withdrawal Penalty: We may impose a substantial penalty if you withdraw any of the principal of your certificate before the maturity date or the renewal date, if this is a renewal account.

Amount of Penalty: For certificates with maturities over 1 year, the penalty on your account is 90 days' dividends, and for certificates with maturities of 1 year or less, the penalty is 30 days' dividends.

How the Penalty Works for Certificates: The penalty is calculated as a forfeiture of part of the dividends that have been or would have been earned on the account. It applies whether or not the dividends have been earned. In other words, if the account has not yet earned enough dividends or if the dividend has already been paid, the penalty will be deducted from the principal.

Exceptions to Early Withdrawal Penalties: At our option, we may pay the certificate account before maturity without imposing an early withdrawal penalty under the following circumstances:

1. When an account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction.
2. Where the account is an Individual Retirement Account (IRA) and any portion is paid within seven (7) days after establishment.

Renewal Policy: Your certificate account is an automatically renewable account, if indicated.

Nontransferable/Nonnegotiable: Your account is nontransferable and nonnegotiable.

Dividend rates and yields are accurate and effective for accounts as of the date indicated. If you have any questions or require current dividend rate information on your accounts, please call Bangor Hydro Federal Credit Union at (207) 945-6264 or 945-6411.