INTERNET BANKING/BILL PAY AGREEMENT

The undersigned (“I” or “we”), in consideration of The State Bank of Wapello (“you or “your) issuing me Login Codes for access to Internet Banking, hereby agrees to be legally bound by the following terms and conditions.

a)       Internet Banking Services

I have the Checking and/or Savings account(s) with you set forth on my application form.  I hereby request that you issue to me Login Codes to be used in connection with such accounts as described in the Agreement.  I understand I may use Internet Banking to:

a.       Transfer funds between accounts

b.       Obtain available balances on accounts

c.        Obtain the current balances on accounts

d.       Obtain transaction history on accounts

e.        View individual checks and deposits

f.        Initiate payments from my account

g.        Stop payments and transfers

b)       Access ID and Password

I understand that access requires the use of unique Login Codes assigned by you.  I agree that electronic copies of communications are valid and I will not contest the validity of the originals absent proof of data or tampering.  I understand that accessing Internet Banking with my Login Codes will authenticate and validate the directions given just as my actual signature will authenticate and validate my direction given to you.  I acknowledge that my Login Codes are identification codes that are personal and confidential and that the use of the Login Codes is a security method by which you are helping me to maintain the security of my account(s).  Therefore, I AGREE TO TAKE ALL REASONABLE PRECAUTIONS THAT NO ONE ELSE LEARNS MY LOGIN CODES.  I AGREE THAT IF I GIVE MY LOGIN CODES TO SOMEONE ELSE TO USE, I AM AUTHORIZING THEM TO ACT ON MY BEHALF AND I WILL BE RESPONSIBLE FOR ANY USE OF THE CODES BY THEM AT ANYTIME.

c)       Personal Computer Security

I understand that I am responsible for the security of the computer(s) used to connect with your online services.  I agree to:

·         Install security patches for my operating system and browser as soon as they become available.

·         Use up-to-date anti-virus/anti-spyware software.

·         Use a firewall that blocks external access to my computer.

·         Take other security precautions recommended by the publisher(s) of my operating system and web browser.

·         Change my password and security questions soon after using the online banking service from a computer other than my own.

d)       Liability for Unauthorized Transactions

I agree to contact you at once if I believe the Login Codes issued to me have been lost or stolen.  I also agree that if my monthly statement shows transactions which I did not make, and I do not contact you within 60 days after the statement was mailed to me, I risk the return of lost funds.  I understand that if I believe an unauthorized transfer from any of my accounts has occurred, I will contact you by writing, calling, or emailing you at:

Address:
State Bank of Wapello
306 N. 2^nd Street
Wapello, Iowa 52653-1204

Phone: 319-523-2131
Fax: 319-523-2141
Email: bankstaff@statebankofwapello.com

e)       Error Resolution Notice

In case of errors or questions about your electronic transfers, call or write us at the telephone number or address listed in this agreement, as soon as you can, if you think your statement or receipt is wrong or if you need more information about a transfer listed on the statement or receipt.  We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared.

1.       Tell us your name and account number (if any).

2.       Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information.

3.       Tell us the dollar amount of the suspected error.

If you tell us orally, we may require that you send us your complaint or question in writing within 10 business days.

We will determine whether an error occurred within 10 business days (5 business days for Check/Debit Card point-of-sale transactions processed by Visa and 20 business days if the transfer involved a new account) after we hear from you and will correct any error promptly.  If we need more time, however, we may take up to 45 days (90 days if the transfer involved a new account, a point-of-sale transaction, or foreign-initiated transfer) to investigate your complaint or question.  If we decide to do this, we will credit your account within 10 business days (5 business days for Check/Debit Card point-of-sale transactions processed by Visa and 20 business days if the transfer involved is a new account) for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation.  If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account.  Your account is considered a new account for the first 30 days after the first deposit is made, unless each of you already has an established account with us before this account is opened. 

We will tell you the results within three business days after completing our investigation.  If we decide that there was no error, we will send you a written explanation.

You may ask for copies of the documents that we used in our investigation.

f)        Preauthorized Payments

·         Right to stop payment and procedure 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 or write us at the telephone number or address listed in this agreement in time for us to receive your request 3 business days or more before the payment is scheduled to be made.  If you call, we may also require you to put your request in writing and get it to us within 14 days after you call.

·         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.  (You may choose instead to get this notice only when the payment would differ by more than a certain amount from the previous payment, or when the amount would fall outside certain limits that you set.)

·         Liability for failure to stop payment of preauthorized transfer. If you order us to stop one of these payments 3 business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages.

Bill Payment Service

(a)     Getting Started

In order to pay bills online, you can choose a payee from a provided list or you can schedule a payment by entering the necessary name and address information.  We reserve the right, at our sole discretion, to refuse to complete any Payment Instruction you may submit.  We will notify you promptly if we decide to refuse to pay any designated Payee.  However, we prohibit certain bill payments and such notification is not required if your Payment Instruction attempts to make a prohibited bill payment under this Agreement.  The following bill payments are prohibited:

-          Federal, state, or municipal tax payments

-          Court ordered payments

-          Payments to Payees outside the United States

(b)     Authorization to Process a Bill Payment

When you schedule or edit a bill payment, you authorize this financial institution to withdraw the necessary funds from your account on the date you schedule the payment to be initiated.  If you schedule a payment after the cut-off time the payment will be processed and charged to your account the next business day.  If the scheduled payment day falls on a holiday or non-business day, the bill payment will be charged to your account on the following business day, if there are sufficient funds in your account.

(c)     Dollar Limits on Bill Pays

The available (collected) balance in your checking will govern the daily dollar limit for all of your bill payments.  You can withdraw up to the system’s available balance as long as your account shows sufficient funds.  If a bill payment would result in an overdraft it will be held until there are sufficient funds in your account.  If, for any reason, a scheduled payment is declined it will automatically be rescheduled for the following business day.

(d)     Scheduling Bill Payments

Payments that you make through the Services are processed either electronically or by check.  By using this service, you authorize us, and/or any third-party Service Provider that we may use to choose whatever method we feel is the most effective method to process your transaction.

You should schedule ALL bill payments at least 7 business days prior to the payee’s due date.  Since new payees require additional processing, please schedule payments to new vendors at least 10 days prior to the due date.

State Bank of Wapello will not be responsible for lost or misdirected mail or for late charges that occur because you did not follow our scheduling guidelines.

e)       Charges

I agree to pay the charges or transaction fees which are charged by you for these services or for services which may later be offered as such fees or charges may be imposed or changed from time to time.

f)        Amendment of this Agreement

I agree that from time to time you may amend or change the terms of this Agreement including amendments or changes to add further Internet Banking services or to amend or change the charges for these services.  You may do so by notifying me in writing of such amendments or changes and my use of Internet Banking after the effective date of any such amendment or change shall constitute my acceptance of and agreement to such amendment or change.

g)       Disclosure

I also acknowledge that I have reviewed the following Internet Banking Disclosure Statement, informing me of my rights under the Electronic Funds Transfer Act.

Internet Banking Disclosure Statement

The purpose of this Disclosure Statement is to inform you of certain rights that you have under the Electronic Funds Transfer Act.

Please Note:  In this statement, the words “you” and “your” each refer to the person who uses or is authorized to use Internet Banking services.  The words “we”, “our”, and “us” refer to the State Bank of Wapello.

1.       Internet Banking Service

You may access our Internet Banking service using the personal Login Codes that we issue to you and conduct the following transactions:

1.       Transfer funds between:

·         Checking account(s)

·         Savings account(s)

2.       Make payments to:

·         Loans

·         Check Lines

·         Initiate Payments from my account(s)

3.       Obtain the available balance(s) in:

·         Checking account(s)

·         Savings account(s)

·         Loans

·         Certificates of Deposit/IRAs

4.       Obtain the current balance(s) in:

·         Checking account(s)

·         Savings account(s)

·         Loans

·         Certificates of Deposit/IRAs

5.       Obtain transaction history from:

·         Checking account(s)

·         Savings account(s)

·         Loans

·         Certificates of Deposit/IRAs

2.       Banking Services

Our Internet Banking Service is normally available 24 hours a day, 7 days a week. However, we only process transactions and update information on business days.  Our online transfer business days are Monday through Friday, 7:00 pm.  Transfers made on weekends, holidays, scheduled in advance or after 7:00 pm, will be processed on the next business day.  The service may occasionally be unavailable due to technical difficulties or routine maintenance.

3.       Access ID and Password

Access to Internet Banking may be made by personal computer.  Access requires the use of a unique Login and Personal Identification Number (collectively, the “Login Codes”) assigned by us.  Your use of Internet Banking with the Login Code authorized by us will be deemed by us to be valid and authentic, and you agree that any communications to us under your Login Code 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, absent proof of altered data or tampering.

4.       Lost or Stolen Login Codes

If you believe your Password or other means of access have been lost or stolen or that someone has used them without your authorization, immediately change your Internet Banking Password.  This is done by accessing the Change Password option.  To change the Access ID you will have to contact us by writing, calling, or emailing us at:

Address:

State Bank of Wapello
306 N. 2^nd Street
Wapello, Iowa 52653-1204

Phone: 319-523-2131
Fax: 319-523-2141
Email: bankstaff@statebankofwapello.com

Include in the message your name, address, telephone number, and a brief description of the problem.  All email requests will be answered by close of the next business day.  Do not include your social security number, password, or account numbers in emails that you send us.

5.         Charges for Transactions

Depending on which service you subscribe to, you will be charged the applicable internet banking monthly fee.  For a listing of fees contact us.  We reserve the right to change our fee schedule from time to time and to charge your account, in accordance with the fee schedule that will be provided to you, prior to assessment.

6.       Record of Transaction

You will receive a monthly statement showing the status of your account(s), transactions made during the past month, and any charges, which we may impose for such services or transactions.

7.       Liability for Unauthorized Transfers/Transactions

CONTACT THE BANK IMMEDIATELY if you believe your Login Codes have been lost or stolen.  Change your password and contact us.  If you notify us of a loss, your liability for unauthorized transfers or payments will be as follows:

a.       If you contact us within two business days of the loss or your discovery of the loss, you can lose no more than $50.00 if someone used your Login Codes without your permission.

b.       If someone used your Login Codes without your permission, you could lose as much as $500 if you do not contact us within two business days after you learn of the loss and we can prove that we could have prevented the loss if you had contacted us.

c.        If your monthly statement shows transfers or payments that you did not make and you do not contact us within 60 days after the statement was mailed to you, you may not get back any funds lost after the 60 days, if we can prove that your contacting us would have prevented those losses.

1.       Tell us your name and account number (if any).

2.       Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information.

3.       Tell us the dollar amount of the suspected error.

If you tell us orally, we may require that you send us your complaint or question in writing within 10 business days.

We will determine whether an error occurred within 10 business days (5 business days for Check/Debit Card point-of-sale transactions processed by Visa and 20 business days if the transfer involved a new account) after we hear from you and will correct any error promptly.  If we need more time, however, we may take up to 45 days (90 days if the transfer involved a new account, a point-of-sale transaction, or foreign-initiated transfer) to investigate your complaint or question.  If we decide to do this, we will credit your account within 10 business days (5 business days for Check/Debit Card point-of-sale transactions processed by Visa and 20 business days if the transfer involved is a new account) for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation.  If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account.  Your account is considered a new account for the first 30 days after the first deposit is made, unless each of you already has an established account with us before this account is opened. 

We will tell you the results within three business days after completing our investigation.  If we decide that there was no error, we will send you a written explanation.

You may ask for copies of the documents that we used in our investigation.

Preauthorized Payments

·         Right to stop payment and procedure 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 or write us at the telephone number or address listed in this agreement in time for us to receive your request 3 business days or more before the payment is scheduled to be made.  If you call, we may also require you to put your request in writing and get it to us within 14 days after you call.

·         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.  (You may choose instead to get this notice only when the payment would differ by more than a certain amount from the previous payment, or when the amount would fall outside certain limits that you set.)

·         Liability for failure to stop payment of preauthorized transfer. If you order us to stop one of these payments 3 business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages.

8.       Your Liability

You agree to the terms of this Internet Banking Disclosure and the schedule of fees that may be imposed.  You authorize us to deduct these fees as accrued directly from your account balance.  You are liable for all transactions that you authorize.  If you have given someone your Internet Banking Login Codes or other means of access and want to terminate that person’s authority you must change your identification number and password and make the Bank aware of your intentions in writing.

9.       Account Restrictions

Your name must appear in the legal title to make transfers between accounts.  You may not transfer between accounts with legal or signature restrictions.  However, an account(s) may be viewed if you are an authorized signer on the account(s).

10.     Limits on Internet Banking Transactions

All transactions performed through our Internet Banking Service will be considered a Preauthorized Electronic Funds Transfer.

11.     Our Liability for Failure to Complete Payments or Transfers

If we fail to complete a transaction on time or in the correct amount, when properly instructed by you, we will be liable for damages caused by our failure unless:

a.       The account has been closed or is not in good standing.

b.       Your equipment or ours was not working properly and the breakdown should have been apparent to you when you attempted to conduct the transaction.

c.        You have not given us complete, correct or current account numbers or other identifying information so that we can properly credit your account or otherwise complete the transaction.

d.       You do not properly follow our instructions or if you provide us with wrong or inaccurate information or fail to correct or tell us about any inaccuracy of which you are aware.

e.        You do not instruct us soon enough for your payment or transfer to be received and credited by the time it’s due.

f.        The funds in the account from which a payment or transfer is to be made is subject to legal process or other claims restrict the transaction.

g.        Circumstances or persons beyond our control prevent, delay, intercept, or alter the transaction, despite reasonable precautions that we have taken.

h.       There are insufficient funds in your account to complete the transaction.

i.         We have reason to believe that the transaction requested is unauthorized.

j.         The failure was caused by an act of God, fire, or other catastrophe, or by an electrical or computer failure, or by other causes beyond our control.

In any case, we shall only be liable for actual proven damages if the failure to make the transactions resulted from a bona fide error despite our procedures to avoid such error.

12.    Change of Terms

We reserve the right to amend or terminate the services offered from time to time and we will notify you in writing at least 30 days prior to any change.

13.    Waiver of Agreement

Any waiver of any term of this Agreement by us on occasion will not prevent us from asserting our rights to these terms in the future.

14.    Termination

We reserve the right to terminate the service at any time.

15.    Privacy

We will disclose information about your account or the transactions you make to third parties:

a.       Where it is necessary to complete transactions

b.       To verify the existence and standing of your account with us upon the request of a third party, such as a credit bureau.

c.        In accordance with your written permission.

d.       In order to comply with court orders or government or administrative agency summonses, subpoenas, orders, examinations, escheat reports.

e.        And/or on receipt of certification from a federal agency or department that a request for information is in compliance with the Right to Financial Privacy Act of 1978.

Although State Bank of Wapello works hard to maintain the security of your account information, the nature of personal computers and the Internet make it possible that your information could be compromised despite our best efforts.  Therefore, we cannot and do not warrant that your online banking transactions or email will not be monitored or read by others.

16.    Terms, Conditions, and Pricing for Deposit Accounts

Our Policy and Pricing Guide and Terms and Conditions on Deposit Accounts are available at our banking office upon request.

NOTICE OF CHANGES IN TEMPORARY FDIC INSURANCE COVERAGE FOR TRANSACTION ACCOUNTS

All funds in a “noninterest-bearing transaction account” are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012.  This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC’s general deposit insurance rules.

The term “noninterest-bearing transaction account” includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest.  It also includes Interest on Lawyers Trust Accounts (“IOLTAs”).  It does not include any other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, and money-market deposit accounts.

For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov .

A FULL SERVICE BANK – ACCOUNTS INSURED TO $250,000 BY FDIC