State Savings Bank

Internet Banking Agreement

www.yourfullservicebank.com

GENERAL TERMS

This agreement (the “Agreement”) made between you and us for accessing your State Savings Bank accounts via State Savings Bank’s Internet Banking includes certain disclosures for electronic funds transfer and terms and conditions governing the use of available services offered through State Savings Bank’s Internet Banking. As used in this document, the words “we,” “our,” and “us” mean State Savings Bank and the words “you” and “your” mean the account holder(s) and anyone else with authority to deposit, withdrawal, or exercise control over the funds in the account. By using the State Savings Bank Online Services, you agree to abide by the terms and conditions of this agreement and acknowledge your receipt and understanding of the disclosures contained in this Agreement. Please read this Agreement carefully and keep a copy for your records.

 This agreement is in addition to other agreements between you and us, including the applicable deposit account disclosure agreement(s) and terms and conditions, and our rules and regulations as well as your loan agreements with us. If there is a conflict between the terms and conditions of this Agreement and the terms and conditions of any other agreements between you and us, as it relates to Internet Banking, this agreement will control.

 Your use of Internet Banking Services may be made by use of certain numbers, codes, marks, signs, passwords (PINS), public or private keys or other means which are acceptable to us to establish your  identity and acceptance of the electronic communications. All electronic communications that meet these requirements will be deemed to be valid and authentic and you intend and agree that those electronic communications will be given the same legal effect as written and signed paper communications. You agree that electronic copies of communications are valid and you will not contest the validity of the originals or copies, absent proof of altered data or tampering. 

We may from time to time, introduce new Internet Banking Services. We will notify you of the existence of these new Internet Banking Services. By using new Internet Banking Services when they become available, you agree to be bound by the rules governing these new Internet Banking Services.

 Business Days/Hours: The term “business day” shall mean every day except Saturdays, Sundays, and federal banking holidays. Our business hours are 9:00 a.m. to 2:00 p.m. Central Time.

THE SERVICE

1. Eligible Accounts

To access your accounts through State Savings Bank, you must have at least one eligible account with us. For purposes of the Agreement, the term “Eligible Account” includes the types of deposit and credit accounts that are identified below. If you have more that one Eligible Account, we will “link” the relationships together unless you request certain accounts not be linked. Accounts that are linked under State Savings Bank Services will have one common owner and signer. Any signer, acting alone, must be authorized to access a linked account. Any non-linked account will not be accessible through State Savings Bank. An account that requires two or more signatures to make withdrawals or with special withdrawal restrictions may not be designated as an Eligible Account.

 The following are Eligible Accounts: Checking, Savings, Money Market Deposit, Certificate of Deposit, IRAs, Commercial, Installment, and Real Estate Loans.

 2. Access Codes

To initially access State Savings Bank Banking Service the Bank will assign you a temporary password. With your first access to State Savings Bank you will be asked to designate a new password that has certain specifications. The State Savings Bank instructions will explain the specifications.  

You agree to keep your State Savings Bank Password confidential to prevent unauthorized access to your accounts and to prevent unauthorized use. For security purposes, we recommend that you memorize your Password. If you choose to write it down, store it in a secure place.

 If you suspect your Password is lost or in the hands of an unauthorized user, tell us AT ONCE. Telephone customer service at 1-712-523-2131. We reserve the right to block your access to State Savings Bank Services to maintain or restore security to our web site and systems, if we reasonably believe your Password has been or may be obtained or is being used or may be used by an unauthorized person(s).

 3. Equipment and Software

To access State Savings Bank’s Services you must have an active account with an Internet Service Provider (ISP), an internet browser software program from software publisher(s) (Internet Explorer or Netscape) with version number(s) 4.0 and above with a 128 bit encryption that we may specify from time to time. You are responsible for, at your expense, obtaining, installing, maintaining, and operating all equipment you use. We do not warrant nor will we be responsible for any errors or failures from the malfunction or failure of your equipment.

To open and view an E-Statement or any other document sent by the Bank, your computer system must be equipped with Adobe Reader software.  You may download Adobe Reader for free at www.adobe.com.  To print a copy of your E-Statement, you will need a printer attached to your computer capable of printing Web pages.  To retain your E-Statement on your computer, you can use the “save” feature of your Internet software to save the pages to your hard drive or to some other media such as a CD-Rom.

4. Description of Services

Account Information

You can specifically obtain the following information:

1) Obtain certain account history for the current and previous statement cycles and export this information directly to your computer in a variety of file formats such as Quicken or Microsoft Money.

2) Obtain interest information on your interest bearing deposit account and loan accounts.

3) Obtain account-related information such as current balances, loan payment amounts, payment due dates, and time certificate of deposit maturity dates.

Funds Transfers

You may:

1) Transfer funds from checking to checking

2) Transfer funds from checking to savings

3) Transfer funds from savings to savings

4) Transfer funds from savings to checking

5) Make payments from checking to loan accounts with us.

6) Make payments from savings to loan accounts with us

All transfers between deposit accounts will occur at the earliest possibly time. You may make arrangements for payments to loan accounts described above to occur at the earliest possible time, at a date in the future, or on a recurring basis.

 Transfers made after 2:00 p.m. Central time will normally not be credited until the next business day. 

Duplicate Transactions: It will be the customer’s responsibility to detect duplicate transactions. State Savings Bank will pay all transactions initiated online by the customer unless there are insufficient funds of uncollected funds.

 Holds: If a hold has been placed on deposits made to an account from which you wish to transfer funds, you cannot transfer the portion of the funds held until the hold expires.  

You agree that you will instruct us to make a transfer only when a sufficient balance is or will be available in the designated account at the time of the transfer. You understand that we will not act on any transfer instructions from you if sufficient funds are not available in the account that you designated. 

Your ability to make transfer from you savings account and money market accounts is restricted by Federal Reserve Board Regulation D. For each of your savings accounts, you are prohibited from making more than six pre-authorized transfers per month.  Pre-authorized transfers include transfers made through State Savings Bank’s Internet Banking Service. The following transfers do not count towards your limit: (1) transfers from your savings account or money market account to repay any amounts owed to State Savings Bank for loans and associated expenses; (2) transfers made by mail, messenger, ATM or in person, or; (3) withdrawals authorized by you by telephone or online if the funds are mailed to you by check. Once a savings account or money market account has violated the Regulation D limits, State Savings Bank will notify you and may convert the account to a transaction type account.  

Failure to make transfers. If we do not complete a transfer to or from your account on time or in the correct amount according to our agreement with you, we will make every effort to remedy the situation; however, we cannot assume any responsibility:

·  If through no fault of ours, you do not have enough money in your account to make a transfer

or if your account has been closed.

·  If the terminal or system was not working properly and you knew about the breakdown when

you started the transfer.

·  If circumstances beyond our control (such as fire or flood or systems failure) prevent the transfer, despite reasonable precautions that we have taken.

·  If the money in your account is subject to legal process, adverse claims, or other encumbrances restricting transfer.

·  If you have not properly followed instructions on how to make a transfer.

·  If we have placed a hold on funds in your account in accordance with our reasonable business procedures.

·  If we have a reasonable basis for believing that unauthorized use of your Password has occurred or may be occurring, if you are in default under this agreement with us, if we or you terminate the Agreement, or if we have suspended your use of State Savings Bank’s Internet Banking Service. 

Bill Payer

If you elect to subscribe to Bill Payer Service, you may use Bill Payer to electronically direct us to make payments from a designated Transaction Account (“Account”) on your behalf to third parties (“Payees”) that you have selected in advance. You may make payments through Bill Payer to any business, merchant, etc., that generates a bill or invoice or to an individual on your behalf that has an address and telephone number that we can verify. Payments may only be made to Payees with an U.S. postal address. We reserve the right to decline to make payments to certain individuals or entities.

Personal Payee List. You must provide sufficient information about each payee as we may request from time to time, to properly direct a payment to that payee and permit the Payee to identify the correct account (“Payee Account”) to credit with your payment. This information may include, among other things, the name and address of the Payee and your Payee Account number. We will provide you with an online list of the payees you have authorized when you use Bill Payer (your “Personal Payee List”).

 Scheduling Payments. You may use State Savings Bank to electronically schedule payments with

Bill Payer.

To access State Savings Bank and electronically schedule a payment you will be required to enter your (a) Password, (b) the amount of your payment, and (c) the date on which you like your payment to be deducted from your Account, or for Recurring Payments (see the section on recurring payments below), the day of the month on which you would like such payments deducted each month. Individual payments may be in any amount not less than $1.00 and not exceeding $25,000.00. 

Delivery of Your Payments. You may schedule payments to be deducted from your Account on the day that you enter the payment information, on a future date, or on the same date each month, subject to the restrictions in this Agreement. Although you can enter payment information through Bill Payer 24 hours a day, 7 days a week, payments can be deducted from your Account only on business days. The day on which you direct State Savings Bank to initiate the bill payment process is the “Transaction Date”. The date you enter as you “Payment Date” is the date on which the payment will be deducted from your Account, unless the date you enter as your payment date is not a business day, in which case the payment will be deducted from your account on the next business day. After funds are withdrawn from your Account, we may remit your payments by mailing your Payee a check drawn on an account we maintain for the purpose; by electronic funds transfer; or by other means.

Insufficient funds Bill Payer Requests. Will be dropped from the system after the first attempt and a notice of that action will be mailed to the customer. 

Recurring Payments. You may schedule payments to particular Payees to be automatically initiated in a fixed amount on a weekly, bi-weekly, monthly, quarterly, semi-annual or annual basis. The date on which a transaction is scheduled to be initiated is referred to below as the “Recurring Payment Date”. If the  Recurring Payment Date falls on a day other than a business day, your payment will not be initiated (i.e. deducted from your Account) until the next business day. Thus, your actual Payment Date for any month may not be the Recurring Payment Date. For example, if you schedule a Recurring Payment to

be initiated on the 5th of each month and August 5th is a Saturday; your payment for August would not

be initiated until August 7th, which would be your actual Payment Date for August. Because differences in the days of the week can reduce the number of business days between your scheduled Recurring Payment Date and your payment Due Date, we recommend that you schedule the Recurring Payment Date 7-10 calendar days prior to your Payment Date. Please note that the Payment Guarantee described below does not apply to a Recurring Payment if, for that specific payment, the Payment Date does not fall at least 5 business days prior to the Due Date.

 Notice of Varying Amounts. If these regular payments may vary in amount, the person you are going to pay will tell you 10 days before each payment, when it will be made, and how much it will be. In no event will we be liable for indirect, incidental, or consequential damages, except as otherwise stated in the payment guarantee under the Bill Payer section. See the section titled Limitation of Liability Relating to State Savings Bank Services.

 Payment Guarantee. If we do not complete a transfer to or from your account on time or in the correct amount according to our agreement, we will reimburse you for any late payment fees or penalties you are charged, up to a maximum of $25 per scheduled payment as a result of the failure of a Business Payee to receive a payment made through the Service by the Due Date provided you meet each of the conditions referred to in the above paragraphs.

 Canceling or Changing Payments. Cancellation or changes to Bill Payer should be made through State Savings Bank Internet Banking anytime prior to 2:00 p.m. Central Time on the day prior to the payment date. You change both the payment amount and the Payment Date to cancel any scheduled payment. You will need to call Customer Service at 1-712-523-2131 if we are to recall a payment.

Reviewing Your Payments. You can review bill payments for the current and previous cycle. Your payee list will be maintained for a period of two years.

 E-Statements

If you elect to have E-Statements and agree to access the monthly statements you are provided in connection with your accounts with the Bank electronically. You understand that the Bank will discontinue mailing printed account statements to your address of record. All future statements will be maintained on a website which you access to obtain, review, print, save, and download your monthly statements for a period of 12 months. By accepting this Agreement, you give your consent to receive electronic notice of any notice or other type of communication provided to you by the Bank. Your consent also covers all disclosures that are required or may be provided on or with your account including, but not limited to the Right to Financial Privacy Notice as required by Regulation P and the Error Resolution Notice required by the Electronic Funds Transfer Act. You are required to have Online Banking in order to access E-Statements and you will be automatically enrolled if you have not already done so.

Joint Accounts: If your account is joint with another person(s), one of you may consent to receive disclosures electronically and that person’s election to receive Paperless Statements shall apply to all owners.

 Duty to Review Monthly Statements. You must promptly access and review your statement and any accompanying items and notify us in writing within the applicable time period specified by law of any error, unauthorized transaction, or other irregularity.  If you allow someone else to access your statement, you are still fully responsible to review your statement for any errors, unauthorized transactions, or other irregularities.  Any applicable time periods within which you must notify us of any errors on your account statement(s) shall begin on the statement date regardless of when you receive and/or access the statement.

 Your Right to Withdraw Consent.  You have the right to withdraw your consent to have the your statements provided in an electronic form by notifying us in person at any of our branch locations or by filling out the “Opt-Out for E-Statements Form” found on our website under forms. We must receive your withdrawal of consent not less than thirty (30) days before the date statements are processed for a statement period for you to receive a paper statement for that statement period. You will receive paper statements for subsequent statement periods.

 Change of E-mail Address.  You agree to notify us immediately of any change in your e-mail address. You may change your e-mail address by visiting our office, or by calling (712) 523-2131.

 Disclaimer of Warranty and Limitation of Liability.  We make no warranty of any kind, express or implied, including any implied warranty of merchantability or fitness for a particular purpose, in connection with the online statements provided to you under this Agreement. We do not and cannot warrant that online statements will operate without error or that online statements will be available at all times. Except as specifically provided in this Agreement, or otherwise required by law, you agree that our officers, directors, employees, agents ,or contractors are not liable for any indirect, incidental, special, or consequential damages under or by reason of any services or products provided under this Agreement or by reason of your use of Paperless Statements including loss of profits, revenue, data, or use by you or any third party, whether in an action in contract or tort or based on a warranty or any other legal theory.

 Requesting a Paper Copy of a Statement.  Requests for a paper copy of a statement can be made by visiting our office or in writing to the address listed below. A fee may be charged for each statement copy. Please refer to a current Schedule of Fees.

1. Hours of Operation

You can access banking services through State Savings Bank’s Internet Banking 24 hours a day, seven days a week. However, at certain times, some or all of the service may not be available due to system or Internet maintenance. If we need to change the scope of State Savings Bank, we will attempt to provide prior notices of such interruptions and changes, but cannot guarantee that such notice will be provided.

 A transfer between deposit accounts initiated through State Savings Bank before 2:00 p.m. Central

Time on a business day will be posted to your accounts on the same day. We cannot ensure that a transfer between deposit accounts after 2:00 p.m. Central Time on a business day will be posted to your account the same day. Transfers initiated on a Saturday, Sunday, or a federal holiday, will be posted on the next business day. Credits to loan accounts initiated through State Savings Bank’s Internet Banking may take up to two business days to post.

 2. Electronic messaging

Sending electronic messages to us through State Savings Bank’s web site allows you to contact us with questions and the bank to contact you with notices and disclosures. However, e-mail is neither secure (encrypted) nor available after you log-on to State Savings Bank’s Internet Banking. Therefore, we ask that you not use e-mail to initiate banking transactions.

 You agree that we may send you, or make available to you, notices, disclosures, and other information electronically including, but not limited to, notices, disclosures, and other information required under the Electronic Funds Transfer Act and Regulation E of the Federal Reserve Board. If you have given us an e-mail address or postal address, we are entitled to rely on that address and assume that messages sent to that address are received by you until you give us notice in writing or by e-mail that the address is no longer valid. If we send you a notice or disclosure electronically, and you wish to download or print it and are unable to do so, contact us at the mailing address or telephone number in the Error Notice section of this Agreement to send us an e-mail and we will provide you with a copy on paper.

 3. Limitation of Liability Relating to State Savings Bank’s Internet Banking

Except as otherwise provided in this Agreement or otherwise expressly provided by applicable law or regulation, you agree that neither we nor any party that provides Internet access or provides equipment used to access the State Savings Bank Services or any agent, independent contractor, or subcontractor of any of the foregoing will be liable for any loss, injury, or damage including without limitation, direct, indirect, incidental, special, consequential, or punitive damages, whether under a contract, tort or any other theory of liability, arising in any way of the installation, use, or maintenance of State Savings Bank, Services, or of the Internet access provider used to access the available State Savings Bank services including, without limitation any loss, injury, or damage relating to any failure of performance, error, omission, interruption, defect, delay in operation or transmission, computer virus, line failure or unauthorized interception or access to your communications with us, even if we or the Service Providers are aware of the possibility of such event.

 4. Periodic Statements

You will receive a monthly account statement from us for your checking and money market deposit accounts. You will receive a monthly account statement from us for your EFT Savings accounts if there are transfers from the savings account in particular month. In any case you will receive a savings statement at least quarterly.

 5. Preauthorized Payments

Right to stop payment and procedures for doing so. If you have told us in advance to make regular payments out of your account, you can stop any of these payments. Here is how:

Call Customer Service at 1-712-523-2131 or write us as State Savings Bank, PO Box 68, Bedford, Iowa 50833, in time for us to receive your request five (5) business days or more before the payment is scheduled to be made. If you call, we may require you to put your request in writing and get it to us within 14 days after you call.

 6. Confidentiality

We will disclose information to third parties about your account or the transfers you make: (1) Where it is necessary for completing transfers; (2) In order to verify the existence and condition of your account for third party, such as a credit bureau or merchant; (3) In order to comply with laws, government agency rules or orders, court orders, subpoenas or other legal process, or in order to give information to any government agency or official having legal authority to request such information; (4) If you give us written permission.

 7. Authorization to Obtain Information

You agree that we may obtain and review your credit report from a credit bureau or similar entity. You also agree that we may obtain information regarding your Payee Accounts in order to facilitate proper handling and crediting of your payments.

  8. Unauthorized Access

Tell us AT ONCE if you believe your PIN or Password has been lost or stolen. Prompt notification is the best way of keeping your possible losses down. You could lose all the money in your account. If you tell us within two business days, you can lose no more than $50. If you do not tell us with in 2 business days after you learn of the loss or theft of your PIN or Password, and we can prove we could have stopped someone from using your PIN or Password without your permission if you had told us, you could lose as much as $500. Also if your statement shows transfers that you did not make, tell us AT ONCE. If you do not tell us within 60 days after the statement was mailed to you, you may not get back any money you lost after the 60 days if we can prove that we could have prevented someone from taking the money if you had told us in time. If you believe your PIN or Password has been lost or stolen, or that someone has transferred or may transfer money from your account without your permission, call Customer Service at 1-712-523-2131 during normal business hours listed in this Agreement. WE CANNOT ACCEPT NOTIFICATION OF LOST OR STOLEN PINS OR PASSWORDS OR UNAUTHORIZED TRANSFERS VIA E-MAIL.

 9. Error Resolution

 *More detailed information is available on request.

10. Termination

This agreement continues in full force and effect until terminated. You may terminate this Agreement and your use of State Savings Bank’s Internet Banking at any time by calling Customer Service at 1-712-523-2131. Or by sending a written termination notice to State Savings Bank, P.O. Box 68, Bedford, Iowa 50833. Your termination notice will be confirmed by mail you authorize us to complete fund transfers until we have had a reasonable opportunity to act upon your termination notice.

 We may terminate this Agreement and your use of the State Savings Bank’s Internet Banking at any time without cause or prior notice. This Agreement and your use of State Savings Bank’s Internet Banking will be terminated automatically if your Eligible Account(s) are closed or access to your Eligible Account(s) is restricted for any reason. This Agreement and your use of State Savings Bank’s Internet Banking may be terminated at any time without prior notice due to insufficient funds in one of your Eligible Accounts to cover any fees and other pending transfers or debits. We reserve the right to temporarily suspend State Savings Bank’s Internet Banking in situations deemed appropriate by us, in our sole and absolute discretion, including when we believe a breach of system security has occurred or is being attempted. We may consider repeated incorrect attempts to enter your PIN or Password as an indication of attempted security breach. Termination of the State Savings Bank’s Internet Banking does not affect your obligations under the Agreement with respect to occurrences before termination.

11. Changes to Charges, Fee or Other Terms

We reserve the right to change the charges, fees or other terms described in this State Savings Bank Internet Banking Agreement. When changes are made to any fees, charges, or other material terms, we will electronically update this State Savings Bank Agreement or send an e-message notice to you at the address shown on our records at least thirty (30) days in advance of the effective date of any additional fees for online transactions, or of any stricter limits on the type, amount, or frequency of transaction or any increase in your responsibility for unauthorized transactions, unless an immediate change is necessary to maintain the security of the system. If such a change is made, and it can be disclosed without jeopardizing the security of the system, we will provide you with electronic or written notice within thirty (30) days before the change. As always, you may choose to accept or decline changes by continuing or discontinuing the accounts or services to which these changes relate. We also reserve the option, in our business judgment, to waive, reduce, or reverse charges or fees in individual situations. Changes to fees applicable to specific accounts are governed by the applicable Account Disclosure Statement.

12. Security Procedures

By accessing State Savings Bank’s Internet Banking/E-Statements, you hereby acknowledge that you will be entering a protected web site owned by State Savings Bank, which may be used only for authorized purposes. The Bank may monitor and audit usage of the System and all persons are hereby notified that use of the Services constitutes consent to such monitoring and auditing. Unauthorized attempts to upload information and /or change information on these web sites are strictly prohibited and are subject to prosecution under the Computer Fraud and Abuse Act of 1986.

 13. Fees. Fee Schedule

The State Savings Bank’s Internet Banking is provided at no charge.