Certificate Disclosure and Agreement

In the following Disclosure and Agreement, unless otherwise noted, the words “I,” “me,” “mine,” “my,” “us,” “they,” “their,” and “our” mean each and all of those (whether one or more persons) who are subject to this agreement(s) as a result of opening a Certificate. The words “you,” “your,” and “yours” mean Mills42 Federal Credit Union (“Mills42 FCU”). The words “Savings Certificate(s)” refer to any non-IRA* Mills42 FCU Certificate.


A certificate may be opened with a minimum deposit of $500, $2,000 or $20,000. Additional deposits may not be made to the account until the maturity date stated on the account.

Minimum Balance

A minimum balance of $500, $2,000, or $20,000 is required in order to maintain an active certificate. If the balance ever becomes less than $500, $2,000, or $20,000 as applicable, the certificate will automatically be closed by Mills42 FCU; a penalty will be applied and the Savings Certificate funds transferred to my Primary Savings Account, or the IRA Certificate funds transferred to my Adjustable IRA Account.


In order to earn the stated dividend rate, no less than the minimum balance must remain in the certificate until maturity.

Withdrawals Prior to Maturity

At the sole discretion of Mills42 FCU, withdrawals prior to the maturity date of the certificate may be made without penalty only upon one of the following events:

  • The owner of an IRA Certificate attaining age 591/2, or
  • The death of any owner of the certificate, or
  • The voluntary or involuntary liquidation of the credit union issuing the certificate.

Note: IRS PENALTIES MAY APPLY on withdrawals from IRA Certificates.


Funds earn dividends from the date of deposit (cash and noncash items). The Annual Percentage Yield (APY) is based on an assumption that dividends and original principal will remain in the certificate until maturity. Dividends are calculated using the daily balance method and are compounded monthly. I may choose one of the following dividend payment methods:

  • monthly, to the Certificate
  • monthly, to my Savings or Checking (Savings Certificate)
  • monthly, Check mailed to me (Savings Certificate)

If no payment method is selected, dividends will be credited to the certificate the last day of each calendar month.

Dividend Penalty Calculation

If the term is at least 90 days but not more than 2 years, I shall forfeit an amount equal to 90 days of dividends.

If the term is at greater than 2 years, I shall forfeit an amount equal to 180 days of dividends.

Accrued dividends, if applicable, will be credited prior to penalties being applied.

Reporting Dividends

Mills42 FCU is required to report the gross dividends credited on any Savings to the Internal Revenue Service at the end of the calendar year. It is my responsibility to record any penalties applied and claim any allowable deduction on my income tax return.


This account will NOT automatically renew at maturity. If I do not instruct you to renew the account, my funds will be placed in my Regular Share Account and earn dividends at the Regular Share Dividend Rate.

Individual Retirement Account - a government regulated savings plan.


We are required, by federal law, to obtain, verify, and record information that identifies each person opening or having access to a Mills42 FCU Account. We will ask for your legal name, residential address, Social Security Number (SSN), Phone Number, and Date of Birth.


No individual can be named on this account in any capacity without having provided the following current identification, one of which must include a picture and one of which must reflect the individual’s current residential address as given.

If one of these forms of identification includes both you need only submit that one:

  • US Driver’s License
  • US Social Security Card
  • Passport
  • US Military ID

Mills42 FCU reserves the right to request additional identification.

If you are already a Mills42 FCU member and have provided the above information you are not required to provide the REQUIRED IDENTIFICATION to open your Certificate but you must provide your Mills42 FCU Member #, Legal Name, and SSN.