Online Banking Agreement

This Agreement states the terms and conditions that apply when you use Peoples State Bank's (PSB) Online Banking Service. These terms and conditions are in addition to those that apply to any accounts you have with us or any other services you may obtain from us. Please read this entire document prior to using this service and retain a copy for your records.

This agreement is between you and PSB for accessing your PSB accounts using our web site (www.peoplesbankalbia.com)."You" and "your" mean each person who establishes an Online Banking Customer Account with us or who uses or is authorized to use an Internet Banking identification number and password or other means of access we establish or approve. The term "Online Banking" means our service that allows you to, transfer funds, access accounts, obtain information and perform other transactions over the Internet by use of a personal computer and modem and/or other means we authorize or allow.

By using this service 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. This agreement is in addition to other agreements between you and PSB, including the applicable deposit account Terms and Conditions of Your Account disclosure agreement and other 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 PSB, this agreement will control.

Account Access

To access your account(s) through PSB's Online Banking service, you must have at least one eligible deposit or credit account with us. You will have access to all accounts on which you are an owner or signer. An account that requires two or more signatures to make withdrawals may not be designated as an eligible account.

You must access your Online Banking account at least once every 180 days in order for it to remain active. If you do not access your account every 180 days, your account will be terminated automatically. In order for you to regain access, you will need to re-apply for Online Banking Services.

Access Codes

To access your Online Banking account(s), you are required to enter your Customer Number and Password that you create at the time you enroll for Online Banking. You will be required to change your password upon your initial login to the system. A valid password consists of 4 - 8 characters.

You will also be required to choose Security Questions and provide answers when you enroll in the Services.

You agree to keep these numbers and codes confidential to prevent unauthorized access to your accounts and to prevent unauthorized use of the Services. Anyone to whom you give your customer number and password will have full access to your accounts even if you attempt to limit that person's authority.

Because this information is used to access your accounts, you should treat it as you would any other sensitive personal data. You should carefully select a password that is hard to guess. Always keep your password safe. Memorize your password and never tell it to anyone. Change your password frequently.

We reserve the right to block access to the Services to maintain or restore security to our site and systems; if we reasonably believe your access codes have been or may e obtained or are being used or may be used by an unauthorized person(s).


No Signature Required

When using the services to conduct banking transactions, you agree that we may debit your designated eligible account or the account on which the item is drawn without requiring your signature on the item, and without prior notice to you.

Joint Accounts

The provisions of this "Joint Accounts" section apply if your accounts subject to the services with us are jointly owned. Each of you is jointly and severally obligated under the terms of this Agreement as well as the original Account Agreement(s) governing your joint accounts. Each of you acting alone may perform transactions, obtain information, terminate this Agreement or otherwise transact business, take actions, or perform under this Agreement. We are not required to obtain the consent of, or notify either of you of actions taken by the other. However, each of you will only be permitted to access accounts for which you are an owner or authorized user. Each of you individually releases us from any liability and agrees not to make any claim or bring any action against us for honoring or allowing any actions or transactions where the person performing the action or transaction is one of you or is otherwise authorized to use your PSB Online Banking service, harmless from and against any and all liability including, but not limited to, reasonable attorney fee(s) arising from any such claims or actions.

Equipment

To access the available Services through PSB's Online Banking, you must have an active account with an Internet Service Provider (ISP), an Internet browser software program such as Netscape Navigator or Microsoft Internet Explorer which provides 128 bit encryption, an active e-mail account, Adobe Acrobat Reader, and any necessary hardware and other software (collectively, "Equipment"). Other browsers may also work; however, the account holder must ensure the browser will provide 128 bit encryption. You will need Adobe Acrobat Reader to view your statement. To download a free copy, please go to http://www.adobe.com. From time to time, we may recommend that you upgrade your browser to maintain the latest encryption technology.

You are responsible for, at your expense, obtaining, installing, maintaining and operating all Equipment that accesses the Services. You must be an authorized user of the 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.

PSB is not responsible for any electronic virus or viruses that you may encounter. We encourage our customers to routinely scan their PC and diskettes using a reliable anti-virus product to detect and remove any viruses found. An undetected or unrepaired virus may corrupt and destroy your programs, files, and even your hardware. Additionally, you may unintentionally transmit the virus to other computers.

System and Software

We shall not be responsible to you for any loss or damages suffered by you as a result of the failure of systems and software used by you to interface with our systems or systems and software utilized by you to initiate or process banking transactions, whether such transactions are initiated or processed directly with our systems or through a third party service provider. You acknowledge that you are solely responsible for the adequacy of systems and software utilized by you to process banking transactions and the ability of such systems and software to do so accurately.

Online Banking Services

You can access the Services seven days a week, 24 hours a day. However, at certain times, some or all of the services may not be available due to system maintenance. We also may need to change our available Services from time to time. We will attempt to provide prior notice of such interruptions and changes but cannot guarantee that such notice will be provided. We only process transactions and update information on business days. Our business days are Monday through Friday. Any account transfers made on Online Banking before 2:00 P.M. CST, Monday through Friday will be posted on the same business day. Holidays when the bank is closed are not considered as business day.

The Online Banking service will allow you to perform the following transaction(s):

You will also be able to:

Statements

Your Online Banking transactions will be indicated on the monthly or quarterly statements we provide or make accessible to you for your accounts. You will get a monthly account statement from us for your checking accounts. You will get a monthly account statement from us for your savings accounts, unless there are no transfers in a particular month. In any case, you will get a statement at least quarterly.

You agree to notify us promptly if you change your mailing address, change your email address or if you believe there are any errors or unauthorized transactions on a statement, or statement information.

Electronic Statements

E-statements provide the same information as mailed paper statement, but they're faster, more secure and environmentally friendly! Once you enroll in PSBs Online Banking and accept the Online Statement Disclosure, you authorize us to electronically deliver your periodic bank statement. You will no longer receive paper statement(s). We will document and archive all statements, cancelled checks and other account documents to ensure future availability whether produced electronically or in print.

Limits on Online Banking Transactions

You agree to the "Terms and Conditions of Your Deposit Account Agreement" that you received when you opened your deposit account. You can request another one of these at the time you fill out your PSB Online Banking registration.

You must have enough available money or credit in any account from which you instruct us to make a payment or transfer.

Account balances may differ from your records due to deposits, outstanding checks or other withdrawals, payments, or charges in process. A transfer request may not result in immediate availability because of the time required to process.


Your ability to make transfers from your savings accounts and money market accounts are restricted by Federal Reserve Board Regulation D. For each of your savings accounts and money market accounts you are prohibited from making more than six (6) pre-authorized transfers per month. Pre-authorized transfers include transfers made through PSBs Online Banking service. Please refer to your "Terms and conditions of Your Account" disclosure for additional information on the limitation.

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 from you if sufficient funds are not available in the account that you designated.

If you have further questions please contact us at 641-932-7887, or email us at: custserv@psbalbia.com. Because e-mail is not a secure method of communication over the Internet, we recommend that you do not include all pertinent information (like your account number or social security number) in your e-mail.

Our Liability For Failure To Complete Payments or Transfers

If we do not complete a payment or transfer on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages. However, there are exceptions. We will NOT be liable, for instance:

  1. If through no fault of ours, you do not have enough available money in the account from which a payment or transfer is to be made, or if the account has been closed or is not in good standing, or if we reverse a payment or transfer because of insufficient funds.
  2. If any payment or transfer would go over the credit limit of any account.
  3. If your equipment or ours was not working properly and the breakdown should have been apparent to you when you attempted to conduct the transaction.
  4. Natural disasters (fire, floods, tornados, etc.) or other uncontrollable circumstances prevent proper completion and delivery of the transaction.
  5. If the money in the account from which a payment or transfer is to be made is subject to legal
  6. If circumstances or persons beyond our control prevent, delay, intercept or alter the transaction, despite reasonable precautions that we have taken.
  7. Other applicable laws and/or regulations that exempt us from liability.

Disclosure of Account Information to Third Parties

We will disclose information to third parties about your account(s) or the transaction(s) you make if at least one of the following applies:

  1. Where it is necessary for completing the transaction,
  2. In order to verify the existence and condition of your account for a third party such as a credit bureau or merchant,
  3. As explained in the separate Privacy Disclosure,
  4. In order to comply with government agency or a court order, or
  5. If you give us written permission

Liability For Unauthorized Transfers

Tell us IMMEDIATELY if you believe your code and/or password has been lost or stolen, or if you believe that an electronic fund transfer has been made without your permission using information from your check. .

Telephoning is the best way of keeping your possible losses to a minimum. You could lose all the money in your account (plus your maximum overdraft protection). You will not be liable to us for any unauthorized electronic transfers to or from your account if reported within two (2) business days of discovering the loss. However, you may lose no more than $50.00 if someone has used your code without your permission. If you believe your code has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, call, e-mail, or write at the telephone number and address listed in the next section.

Errors and Questions

In case of errors or questions concerning transactions done using Online Banking, please do one of the following as soon as possible:

  1. Telephone: Peoples State Bank at 641-932-7887.
  2. Write to: Peoples State Bank, 102 South Main, Albia, Iowa 52531.
  3. E-mail us: custserv@psbalbia.com. Please include your name, address and a brief message as to what the problem might be. Because e-mail is not a secure method of communication over the Internet, we recommend that you do not include all pertinent information (like your account number or social security number) in your e-mail.

We must hear from you within 60 days after you receive the FIRST statement or notification in which the error or problem appeared. Please include the following information:

  1. Tell us your name and account number (if applicable).
  2. Describe the error you are unsure about and explain why you believe it is an error or why you need more information. 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 ten (10) days. We will determine whether an error occurred within then (10) business days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to forty five (45) days to investigate your compliant or question. If we decide to do this, we will credit your account within ten (10) business days 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 ten (10) business days, we may not credit your account.

We will tell you the results within three (3) 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. If a notice of error involves an electronic fund transfer that occurred within thirty (30) days after the first deposit to the account was made, the applicable time periods for the action shall be twenty (20) business days in place of ten (10) business days. If a notice of error involves and electronic funds transfer that was initiated in a foreign country, occurred within thirty (30) days after the first deposit to the account was made, or is a point of sale debit card transaction, the applicable time period for the action shall be ninety (90) calendar days in place of forty five (45) calendar days.

Notice of Your Rights and Liabilities

Each of you agrees, for yourself, to the terms of this account and the schedule of charges that may be imposed. You authorize us to deduct these charges as accrued directly from the account balance. You are liable for all transactions that you or any of you make or authorize, even if the person you authorize exceeds your authority. If you have given someone your Online Banking User ID and Password, you must change your Password or other means of access or take additional steps to prevent further access by such person.

Service Fees

There are currently no service fees for accessing your accounts through PSBs Online Banking Service. However, fees, as described in the applicable product or account disclosure or PSBs Service Fee Schedule, may apply to services ordered on-line and to transfers from a loan account. Please note that your ISP and/or phone company, depending on the arrangement you have established with them, may assess fees.

Governing Law

This Agreement is governed by the laws of the State of Iowa, including the applicable provisions of the Uniform Commercial Code and all applicable federal laws and regulations.

Children's Online Privacy Protection Act

We do not knowingly solicit data from children, and we do not knowingly market to children. We recognize that protecting children's identities and privacy on-line is important and that the responsibility to do so rests with both the on-line industry and the parents.

Amendments to This Agreement

Terms and conditions of this agreement may be amended in whole or part at any time within thirty (30) days written notification prior to the charge taking effect, unless such change or amendment is otherwise required by law or applicable regulation. If you do not agree with the change(s), you must notify us in writing prior to the effective date to cancel your access. Amendments or changes to the term(s) or condition(s) may be made without prior notice if it does not result in higher fees, more restrictive use of service, or increased liability to you. Your continued use of the Services is your agreement to the amendment(s).

Termination

You may terminate this agreement and any service provided hereunder at any time upon giving at least 10 days prior written notice of termination to PSB. Once we have acted upon your termination notice, we will make no further transfers from your eligible accounts, including any fund transfers you have previously authorized. We reserve the right to terminate or to discontinue support of any software or equipment without written notice.

Peoples State Bank reserves the right to terminate your use of Online Banking, including Bill Pay, at any time.

Please inform us promptly if your email address changes.