Online Agreement

FIRST STATE BANK
ONLINE BANKING AGREEMENT
www.stuartbank.com

Before starting enrollment, please read the Internet Banking Agreement.

Online Banking Services Offered
First State Bank’s consumer and business customers enjoy the benefit of online banking with no monthly or annual fees.

The following services are currently available through www.stuartbank.com:

Account Balance Information: View any of your First State Bank Checking, Savings, Investment accounts, Certificates of Deposit, IRA’s, ATM, ShazamChek, and loans.
Transaction Inquiry: View specific transactions for previous day, current day, previous statement or current statement.
Transfer Funds: Transfer funds among your First State Bank accounts. Make one-time transfer or set up a scheduled transfer.
Loan Payments: Make loan payments on your First State Bank loans. Make a one-time loan payment or set up a scheduled loan payment

You may make arrangements for one time, on demand transfers or loan payments, or make scheduled transfers to occur in the future or on a recurring basis. Although you can enter transaction information through our online banking service twenty-four (24) hours a day, seven (7) days a week, payments can be initiated only on business days. Funds will be deducted from your Account on the business day on which the transaction is to be “initiated”. This is the “transaction date”. If you direct the initiation of a transaction to occur on a day other than a business day, it will be initiated on the following business day.

Equipment and Software
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. You agree that First State Bank is not responsible for any electronic virus that you may encounter.

Authorization To Charge Accounts
You are responsible for all transfers you or your authorized representative make using Online Banking. You authorize us to debit your designated account(s) for any transaction completed with www.stuartbank.com. You agree that we may comply with transfer instructions entered by any one person using an authorized User Code and Password, regardless of the restrictions placed at the account level, i.e., two signatures required or minor no withdrawal.

If your permit another person to use FSB Online Banking or give them your User Code and Password, you are responsible for transfers or advances that person makes from the deposit and loan accounts linked to your online application even if that person exceeds your authorization.

User Code and Password
Each individual who has access to FSB Online Banking, including each individual named on joint accounts, must use a user code and password. User codes and passwords should never be shared. You agree that if this information is shared with others, you are ultimately responsible for any account transactions that occur. To initially access FSB Online Banking you will use a temporary password which will be assigned by the Bank. The first time you access FSB Online Banking, you will be required to change your password. Your password must be a minimum of eight characters, up to 17 characters, which must consist of at least two numeric and two alpha characters. You are encouraged to change your password periodically to enhance security or anytime you feel security has been breached.

Business/commercial customers must be authorized signers on all accounts in which business is transacted. By signing up for online banking and representing your organization/business you agree to be responsible for the user code and password associated with the account. You agree that if this information is shared with others, you are ultimately responsible for any account transactions that occur. It is highly recommended that passwords not be shared with other employees or officers representing the organization. You agree that in the event you leave employment or your position, that you will notify the bank immediately so that your password may be removed from the system.

Hours of Operation and Availability
You can access through the First State Bank Online Banking 24-hours a day. However, at certain times, some or all of the service may not be available due to system or internet maintenance.

Funds must be available in the account from which you wish to transfer funds on the date you enter the transaction. Transfers initiated prior to 6:00 P.M. on a business day will be posted to your account that day. For the purposes of FSB Internet Banking transactions, business days are Monday through Friday excluding bank holidays and federal holidays Transaction initiated after 6:00 PM on a business day or on Saturday, Sunday, a federal holiday or any other day the bank is closed for business will be posted the next business day.

Insufficient Funds to Complete Transfer
If your account does not have sufficient funds to complete a transfer, the transfer will not be completed.

Correcting or Canceling Your Transfer
You cannot cancel your transfer after it has been entered in www.stuartbank.com and the information transmitted to us. You can correct information about a transfer before you send us the information, and you can use Online Banking to make an off-setting transaction after it has been entered.

Documentation and Verification of Transfers
The date and amount of each transfers made through www.stuartbank.com will be showed on the Online Banking screen along with a confirmation number. Please write down this number when you receive it. It will help resolve any questions you may have concerning your transaction. In addition transfers will also be shown on your printed statements for the accounts from which and to which the transfer is made.

Your Liability for Unauthorized Use
Tell us immediately if you believe your user code or password has become known to an unauthorized person or if an unauthorized transaction has occurred involving your account. Telephoning is the best way to keep your possible losses to a minimum. You could lose all the money in your account.

If you tell us within two business days after you learn that your User Code and Password have become known by an unauthorized person, you can lose no more than $50.00 if an unauthorized person used your personal codes without your permission to process a transaction. If you do NOT tell us within two business days, and we can prove that we could have stopped someone from using your User Code or Password without your permission if you had told us, you could be liable for as much as $500.00.

Also, if your statement shows electronic funds transfers that you did not make or authorize, 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 stopped someone from taking the money if you had told us in time. If a good reason (such as a long trip or hospital stay) kept you from telling us, we may extend the time period.

If you believe an unauthorized person has your Access Code and/or password, or that someone has transferred money without your permission, call First State Bank immediately at 1-888-347-7812 (Toll-Free) or 515-523-2721, or write to: First State Bank, P.O. Box 400, Stuart, IA 50250. WE CANNOT ACCEPT NOTIFICATION OF LOST OR STOLEN USER CODES OR PASSWORDS OR UNAUTHORIZED TRANSFERS VIA E-MAIL.

We reserve the right to block your access to FSB Online Banking to maintain or restore security to our web site and systems, if we reasonably believe your password has been or may be obtained, is being used or may be used by an unauthorized person(s).

First State Bank’s Liability for Failure to Make Transfers
If we do not make a transfer on time, or in the correct amount according to your instructions, we will be liable for your losses or damages.

We will not be liable, for instance if:

Through no fault of ours, your account doesn’t contain enough money to make the transfer.
The transfer would exceed the balance in the deposit account you use for overdraft protection, or the credit limit on your overdraft checking line of credit, or the line has been closed.
Your computer, the software, phone lines, or the bank’s computer systems were not working properly or were temporarily unavailable, and this problem should have been apparent to you when you attempted the transfer.
Circumstances beyond our control prevented the transfer, despite reasonable precautions that we have taken. Such circumstances include telecommunications outages, postal strikes, fires, floods and other natural disasters.
We have placed a “hold” on funds in your account or remitted funds to another party with your knowledge, pursuant to reasonable business procedures, or in compliance with legal process such as a garnishment, tax levy, court order, etc.
We have received incomplete or inaccurate information from you or a third party involving the account transfer.
We have reasonable basis for believing that unauthorized us of your User Code, Password, or Account has occurred or may be occurring; or you or we have terminated your Internet Banking Agreement or closed the account.

Restrictions on Transfers from Savings and Investment Accounts
Your ability to make transfers from your savings accounts and investment accounts is restricted by Federal Reserve Board Regulation D. For each savings/ investment account, you may make up to six transfers or withdrawals by means of preauthorized, automatic, telephonic or computer transfer to another account of yours or to a third party or by check, debit card, or similar order to a third party during any statement cycle. The following transfers do NOT count towards these limits:

Transfers from your savings account(s) or investment account(s) to repay any amounts owed to First State Bank.
Transfers made by mail, messenger, ATM or in person

Once a savings account or investment account has violated the Regulation D limits, First State Bank will notify you and may convert the account to an account allowing unlimited activities. In addition, if you exceed limits, additional charges may apply. See your account disclosure for further information.

Limitation of Liability Relating to Available Online Services
Except as otherwise provided in this Agreement or otherwise expressly provided by applicable law or regulation, you agree that neither FSB nor any party that provides Internet access or provides equipment used to access FSB Internet Banking 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 from the installation, use or maintenance of the FSB Online Banking services or the Internet access provider used to access the available FSB Online Banking services, or the equipment used to access the available online 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 for access to your communication with us, even if we or the Service Providers are aware of the possibility of such event.

Error Resolution
In case of errors or questions about your electronic transactions, call First State Bank immediately at 1-888-347-7812 (Toll Free) or 515-523-2721, or write to: First State Bank, P.O. Box 400, Stuart, IA 50250

If you think your statement is wrong or if you need more information about an electronic transaction listed on the statement, contact us as soon as possible. We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared, and you must:

Tell us your name and account number.
Describe the electronic transaction you are unsure about, and explain why you believe an error has occurred or why you need more information.
Tell us the dollar amount of the suspected error.

If you tell us verbally, we may require that you send your complaint or question in writing within ten business days. We may require you to provide your complaint in the form of an affidavit.

We will tell you the results of out investigation within ten business days and will correct any error promptly. If we need more time, however, we may take up to 45 days to investigate your complaint or question. If we decide to do this, we will provisionally re-credit your account within ten business days for the amount you think is in error, so that you will have the use of your 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 ten days, we may not provisionally credit your account.

If you are a new customer, for electronic funds transfer occurring during the first 30 days after the first deposit is made to your account, the applicable time periods for action by us are up to 20 business days (instead of ten) and 90 calendar days (instead of 45).

If we determine that there is no error, we will send you and explanation within three business days after we finish our investigation. You may ask for copies of the documents that we used in our investigation.

Termination or Discontinuation
This agreement continues in full force and effect until terminated. You may terminate this Agreement and your use of First State Bank Online Banking services at any time by calling 515.523.2721 or by sending a written termination notice to First State Bank a. You authorize us to complete fund transfers until we have had a reasonable opportunity to act upon your termination notice.

This Agreement and your use of First State Bank Online Banking services will be terminated automatically if your accounts (s) are closed or access to your account(s) is restricted for any reason. The Agreement and your use of First State Bank Online Banking services may be terminated at any time without prior notice due to insufficient funds in one of your accounts. We reserve the right to temporarily suspend First State Bank Internet Banking services in situations deemed appropriate by us, at 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 user code or password as an indication of attempted security breach. Termination of the services does not affect your obligations under this Agreement with respect to occurrences before termination.

You must use the Online Banking services provided at least once every 90 days to keep you account active. In the event your account is terminated due to inactivity, contact 515.523.2721 and they will discuss the steps required to reinstate your agreement. There may be a fee, plus sales tax, to reactivate online banking.

Changes to Online Banking Charges, Fees or Other Terms
We reserve the right to change the charges, fees or other terms described in this agreement. When changes are made to any fees, charges, or other material terms, we will electronically update this agreement with either an e-message on our home page or a postal mailing sent to you at the address shown on our records 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 transactions, or any increase in your responsibility for unauthorized transactions, unless an immediate change is necessary to maintain the security of the system. As always, you may choose to accept or decline changes by continuing or discontinuing the accounts or services to which these changes relate. By using Online Banking after changes have been posted, you agree to be bound by the terms and conditions in the revised agreement. We also reserve the option, in our business judgment, to waive, reduce or reverse charges or fees in individual situations.

Security Procedures
By accessing First State Bank Online Banking, you hereby acknowledge that you will be entering a protected web site owned by First State 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.

For additional security information, please see our Security Statement posted on our web site.

Privacy and Confidentiality
First State Bank is strongly committed to protecting your security and confidentiality. To ensure the privacy of your account information while you are online, you are only able to access your account with high security browsers. You must also provide both your user code and your password. If no action is taken within 15 minutes, you will be automatically logged off www.stuartbank.com.

You are also assured that we will guard your information from third parties except for the following situations:

When it is necessary to complete a transfer as requested by you.
In order to verify the existence and condition of your account for a third party, such as accredit bureau or merchant when you have authorized the disbursement of such information.
In order to comply with laws, government agency rules or orders, court orders, subpoenas or other legal processes.
If you give us written permission.

Our Privacy Policy for contains additional information concerning confidentiality.