Online Bank Services Agreement and Disclosure Statement INTRODUCTION GENERAL AGREEMENT AND DISCLOSURE

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1 Online Bank Services Agreement and Disclosure Statement INTRODUCTION Welcome to Sierra Vista Bank, and thank you for selecting this Internet banking product. In this publication, we give you important terms and conditions and disclosures relating to Sierra Vista Bank s Online Bank account access. Please print this document, read it carefully and keep it for your records. GENERAL AGREEMENT AND DISCLOSURE By submitting your application for Online Bank service to the Bank, you will be signifying your agreement to the terms and conditions described in this Agreement and Disclosure. These terms and conditions are in addition to the other provisions of the deposit account or loan agreement applicable to the accounts accessed through Online Bank. Online Bank services involve electronic funds transfers ( EFTs ), through which you or others to whom you give your login name and password can initiate transfers of money to or from your Sierra Vista Bank ( Bank ) deposit accounts. EFTs are electronically initiated transfers of funds involving one or more of your accounts. They may include withdrawals and transfers to or from your accounts, as well as other transactions (as detailed below) initiated through instructions delivered from your personal computer to the Bank over the Internet. You become eligible for Online Bank services by completing and submitting an Online Bank application to the Bank that will be presented to you after agreeing to the terms and conditions detailed below. Equipment and Technical Requirements and Related Issues, Including Hackers and Viruses. Online Bank requires a personal computer ( PC ) equipped with a modem which runs at a speed of at least 14.4 baud (higher speeds are recommended), and a 128-bit secure Internet browser (Microsoft Internet Explorer version 4 or higher or Netscape Navigator version 4 or higher). You are responsible for acquiring and maintaining this equipment and software. It is recommended that you also acquire and maintain current software to protect your PC, software and data from computer viruses and other equipment or software problems and/or failures. The Bank will not be responsible for any errors or failures from any malfunction of your computer or from any virus or other problem whether or not the problem is related to the use of the Online Bank service. While the Online Bank service uses encryption to provide transmission security and identification technology is used to verify the identity of the receiver and sender of data over the system, the Internet is inherently insecure, and all data transfers can potentially be monitored and read by others. The Bank cannot and does not warrant that use of its Online Bank service will not be monitored or read by others. Services Available Through Online Bank. Online Bank service is available virtually all the time, day or night, 7 days a Week. 1 It will enable you to perform the following relating to your Service Sierra Vista Bank deposit and loan account(s): View account information and review transactions 2 1 Online Bank may be temporarily unavailable while the Bank is updating its records or as a result of technical difficulties. 2 Any balance inquiry may not reflect recent deposits, withdrawals or transfers to or from the account. This is particularly important for you to remember if more than one person has Online Bank or other access to your account. 1

2 Download transactions to personal finance software (e.g., Managing Your Quicken, Quick Books or MS Money ) or spreadsheet software Transfer funds between Sierra Vista Bank accounts Make payments on Sierra Vista Bank loans Pay bills 3 Place stop payment orders Online Bank Service Limitations The amounts and frequency of the transfers between your accounts and initiated through the Online Bank system, and the amounts and frequency of your payments initiated through the Online Bank system are subject to certain limitations. You cannot transfer or pay more than the available balance in the from account. In this regard, if the Bank elects to honor a transfer or payment instruction for more than the available balance, you agree to deposit sufficient funds in the from account promptly following the Bank s demand, and understand that overdraft fees may be assessed in connection with such transactions. If the funds are being transferred or paid from a money market account or savings account, no more than 6 preauthorized or automatic transfers, including overdraft protection and Online Bank transfers, bill payments, transfers initiated by telephone call as well as checks and debit card transactions in favor of merchants, can be initiated per monthly statement cycle. The funds for the scheduled payment will be debited from your account one day prior to the payment actually being issued. General Authorization for Transactions Initiated with Your Password As part of the enrollment process you will define a password and user ID. The combination of these two will give you one-time access to Online Bank, at which time you will be prompted to change your password to something only you will know. Access thereafter will require use of your login name and new password. You are encouraged to change your password frequently, which can be done at any time from within the Online Bank system. It is recommended that you select a password that utilizes both upper and lower case letters and numbers, and that it not be associated with any commonly known personal identification, such as social security numbers, addresses, birthdays, your child s name, etc., and the password should be memorized, not written down. Only you, not the Bank, should know what your new password is. Any transactions made on the basis of the use of your login name and password will be presumed to be yours, will be processed accordingly and will be deducted from your account in accordance with the Online Bank instructions given through Online Bank. See below for more information regarding unauthorized transactions. A few words of warning about your password: Certain Internet browsers will prompt you to save password. If you elect to save your password, it will be stored in your computer. This will allow anyone who obtains access to your computer to use your browser to sign on to Online Bank in your name and under your password, thereby accessing your account without your knowledge or permission. The Bank would not know that the instructions were not from you, and would follow them just as if they in fact came from you! You are STRONGLY URGED not to save your password in your browser s memory, even though it might save you time. The risk is not worth that savings in time. If you believe that an unauthorized party has obtained your login name or password, you must notify the Bank immediately by calling (916) Many of the functions of the bill payment portion of the Bank s Online Bank system will be performed by the Bank s bill payment agent. 2

3 When Online Bank Transactions Will Be Processed For same day credit for transfers between accounts or to loans at Sierra Vista Bank, the transfer must occur by 6 p.m. Pacific Time on Business Days. If your instructions reach the Bank on a non-business Day or after that hour on a Business Day, the transfer will not occur until the next Business Day. For payments directed to third parties, such as other lenders, credit card companies, etc., you must allow sufficient time for the payee to receive the payment. Some payees will receive your payment through an automated clearing house ( ACH ), while others will receive a paper draft ( Draft ), which is similar to a check. Your Bill Payer list will tell you whether a given payee will be receiving its payment through the ACH or by Draft. In either case, the Bank s bill payment agent will try to take the money for the payment from your account on the date you direct. After the bill payment agent confirms the withdrawal (a process that can take between one and two Business Days) the Bank s bill payment agent will send its own payment through the ACH, or its own Draft, to the payee. If you allow at least 7 Business Days for payments to be made by Draft, or 4 Business Days for ACH payments, and the person you are paying imposes a late fee because the payment did not arrive within the applicable period, the Bank will either negotiate a reversal of the late fee or will reimburse you up to $50 to cover the late fee. Canceling or Stopping Payment on an e-bank Payment Canceling or stopping a payment you have initiated through the Online Bank service is different than stopping payment of a paper check you write against your account. To cancel an Online Bank payment, you must enter your cancellation order on the Online Bank system before 1 p.m. Pacific Time on the day the payment is to be taken from your account. If you miss that deadline, you may still be able to stop the payment by telephoning toll free (866) before the payment has been ultimately paid by the financial institution used by the Bank s bill payment agent. You will be advised when you make the telephone call whether your call was made in time to be effective. Please note that even if you are able to stop a payment after the cancellation deadline has passed, if the payee or a subsequent transferee of the payment is a holder-in-due course of the payment, it may be enforceable against you or the Bank s bill payment agent. If the Bank or its bill payment agent becomes liable for issuing a payment that you later order to be stopped, you agree to indemnify and hold the Bank and its agent harmless from loss, costs and expenses, including attorneys fees, arising because a payment you directed to be made was later dishonored because of your stop payment order. Using Online Bank to Stop Payment on a Paper Check You Have Written You can stop payment on Sierra Vista Bank checks written by you outside of the Online Bank service by giving your written or oral stop payment order to the Bank. Details concerning this process are available in your Deposit Agreement and will also be displayed on the Online Bank stop payment order request screen. As an alternative, you can use the Online Bank service to give the Bank your stop payment order for a paper check you have written. To do so, your stop payment order must be sent through the Online Bank system so that it is received by the Bank before the check has been paid. If you are concerned that the check may be paid before the order effective, you should call the Bank. To be effective, your stop payment order must be timely placed, and must include the exact check number, the exact check amount and the payee name, as prompted on the stop payment input screen. All of this information must be precise, because the cancellation or stop payment order will be processed by a computer that requires precision. 4 If you wish the stop payment order to remain effective for more than 14 days, you must print the input screen with the stop payment information on it, sign the printed order and deliver it to the bank by mail, in person or by fax. Your stop payment order may be disregarded by the Bank if the confirmation is not received by the Bank within 14 days. 4 Even one wrong or missing letter in a name or one digit wrong in a figure will likely prevent the computer from recognizing the payment when it is presented, and the stop payment order will, therefore, be ineffective. 3

4 Periodic Statements You will get a monthly account statement on all deposit accounts linked to the Online Bank system if there has been activity on the account, and in any event you will receive a statement for such accounts at least quarterly whether or not there has been account activity. Charges for Online Bank Service The Bank s fee for Online Bank services can be obtained by calling any branch location. You should also bear in mind that certain fees, such as stop payment order fees and insufficient funds fees, are the same whether they involve a traditional paper check or an Online Bank transaction. And, Online Bank transfers may affect the monthly maintenance fee and/or per check or other debit fee for your account, just as would be the case if you had written a check. In addition, frequent transfers from your savings or money market account could result in an excessive withdrawal charge. The Bank s fees and charges are always subject to change, upon such advance notice as is required by law. Procedures, Rules and Your Responsibilities Regarding Passwords You agree not to disclose or otherwise make your Online Bank login name or password available to anyone not authorized to sign on your accounts. Do not keep your password near your computer nor with your Online Bank instruction brochure. For protection and security, memorize your password and destroy all written evidence of it. You authorize the Bank to make all withdrawals and transfers into or from your accounts in accordance with the instructions given following login with your password. All transactions are governed by the Bank s existing rules and regulations concerning those accounts. Business Days The Bank s Business Days are Monday through Friday (except bank holidays) for purposes of Online Bank transfer and payment activity, even though the Online Bank system will be open virtually all day every day. Procedures for Compromised Login Name or Password, Unauthorized Transactions and Your Liability Tell the Bank AT ONCE if you believe that your login name or password has been lost or stolen, or discovered by someone not authorized to transact business on your linked accounts or that someone has transferred or may transfer money from your account(s) without your permission. You should immediately call or write to your branch. Telephone: (916) Fax: (916) Use the electronic mail ( ) feature of the Online Bank system Write to Sierra Vista Bank, 1710 Prairie City Road #100, Folsom, CA Please note that payments or transfers initiated by someone to whom you have given your login name or password are not considered unauthorized transactions unless you have notified the Bank that transfers by the previously authorized person are no longer authorized and you have changed your password to one that is not known by the previously authorized person. Telephoning the Bank is the best way of keeping your possible losses down. You could lose all the money in your account, plus your maximum overdraft line of credit (if applicable). If your account is a consumer account (that is, if your account is maintained by one or more individuals primarily for personal family or household purposes) and you tell the Bank within 2 Business Days, you will not lose any money if someone uses your Online Bank password without your permission, and your loss will be no more than $50 if someone used your account without your permission. If you do NOT tell the Bank within 2 Business Days after you learn of the loss or theft of your login name or password and the Bank can prove the Bank could have stopped someone from using your login name or password without your permission if you had told the Bank, you could lose as much as $500 if your account is maintained primarily for personal family or household purposes. If your account is a consumer account you could lose all the money in your account. If your statement shows transfers that you did not make, inform the Bank at once. If you do not tell the Bank within 60 days after the statement was mailed to you and your account is a consumer account, you may not get back any money you lost after the 60 days if the Bank can prove that the Bank could have stopped someone from taking the money if you had told the Bank in time. 4

5 If your account is not a consumer account, you may not get back any money lost through unauthorized use of your password or account regardless of how quickly you discover and report the matter. If a good reason (such as a long trip or a hospital stay) kept you from telling the Bank, the Bank will extend the time periods. Procedures for Errors or Questions About Your Electronic Funds Transfers If you think your statement is wrong, an error has occurred, or you need more information about an electronic funds transfer listed on your account statement, you should telephone or write to the Bank at the numbers or addresses stated in the preceding section concerning Procedures for Compromised Passwords, Unauthorized Transactions and Your Liability as soon as you can. The Bank must hear from you no later than 60 days after the Bank sent the FIRST statement on which the problem or error appeared. You will need to tell the Bank: Your name and account number. Describe the error or transfer in question and explain, as clearly as you can, why you believe it is an error or why you need more information. Tell the Bank the dollar amount of the suspected error, and approximately when the error took place. If you tell the Bank orally, the Bank may require that you send your complaint or question in writing to the Bank within 10 Business Days. The Bank will investigate your complaint and generally will complete the Bank s investigation within 10 Business Days, and if an error has occurred will correct any error promptly. If the Bank needs more time, however, the Bank may take up to 45 days (90 days for errors or questions involving a transaction initiated outside of the United States or a transaction at a point-of-sale terminal) to investigate your complaint or question. If the Bank does this and your account is a consumer account, you will have the use of the funds in question after the 10 Business Days. If the Bank asks you to put your complaint or question in writing and the Bank does not receive it within 10 Business Days, the Bank may not credit your account during the investigation. If the Bank decides that there was no error, the Bank will send you a written explanation within 3 Business Days after the Bank finishes the Bank s investigation. You may ask for copies of the documents that the Bank used in the Bank s investigation. If you need more information about the Bank s error-resolution procedures, call the Bank at (916) The Bank s Liability for Failure to Complete an Electronic Funds Transfer If the Bank does not complete an electronic funds transfer or transaction to or from your account on time or in the correct amount according to the Bank s agreement with you and your account is maintained primarily for personal, family or household purposes, the Bank will be liable for your losses or damages only to the extent provided by law. However, there are some exceptions. For example, the Bank will NOT be liable: If, through no fault of the Bank, you do not have enough money in your account to make the transfer or complete the electronic transaction, or if the transaction would go over the credit limit of your overdraft line, if you have one. If the funds in your account are subject to an uncollected funds hold, legal process or other claim, or encumbrance restricting transfers. 5

6 If circumstances beyond the Bank s control (such as fire, flood, labor disputes, powers or computer failure) prevent the electronic transfer from being completed or made despite any reasonable precautions that the Bank has taken. If your account has been closed. If the Bank s failure to complete the transaction is done to protect the security of your account. If the Online Bank system was not working properly, and you knew about the breakdown when you started the transaction. If the Bank does not receive proper and timely instructions regarding the transaction. If the transfer or payment information supplied to the Bank by you or by third parties is incorrect or incomplete. These are examples only, there may be other exceptions. Disclosure of Information About Your Account The Bank may release information to third parties regarding transactions and/or the status and history of your deposit and loan accounts. Some (but not all) of the circumstances under which the Bank may release such information as well as other customer information include: When the Bank believes it would be necessary or helpful in verifying or completing a transaction involving your account, such as one being processed through an ACH, Automated Teller Machine or Point of Sale Network, when a third party (such as a merchant or another financial institution) seeks information as to whether there are sufficient funds in your account to cover a transaction, or when a third party needs the information because it is performing functions on behalf of the Bank; When legal process or a law or regulation require the information to be reported to federal, state and/or local government officials, such as is the case with the amount of interest earned on an account, when a transaction involves a large amount of currency, foreign countries or persons or companies in foreign countries, or when a transaction involves persons, companies or countries regulated by the Office of Foreign Assets Control (this list of reportable activities is illustrative, only); When you or any other person with signing authority over your account gives the Bank oral or written permission to do so; If your account were to be closed by the Bank because it or another of your accounts was not handled properly, in which case the Bank might so advise an account reporting or verification service (e.g., ChexSystems, Inc.), so that other financial institutions subscribing to such a service will be aware of the Bank s view of the situation; If the Bank were to believe or suspect that a crime involving you or your account may have been or is about to be committed, whether or not local, state or federal laws require us to report such activity to public officials. The Bank may seek information about you from others, such as a credit bureau, other financial institutions and others, in connection with the opening or maintaining of your account, or your application for or maintenance or collection of a loan. Authorized Users Each authorized signer on your account may apply for his or her own login name and password. You hereby authorize each of them to use the Online Bank system to access your accounts linked to the service even if your account otherwise requires two or more signatures for withdrawals (e.g., by check) or other actions. 6

7 Change in Terms The Bank reserves the right to change the terms and conditions of this Agreement and Disclosure by sending a notice of the change to the last address shown on the Bank s records at least 30 days before the effective date of the change. Such changes may include modifications to or elimination of any the terms stated in this Agreement or in any related material, such as the Bank s Schedule of Fees and Charges, and they may also include the addition of new terms or charges. Please note that prior notice of any such change need not be given where an immediate change in terms is necessary to maintain the security of your account(s). Other Agreements Except as otherwise stated in this Agreement and Disclosure, it does not alter or amend the terms or conditions of any other agreement you have with the Bank. Cancellation The Bank may cancel, modify or restrict the use of e-bank service upon proper notice, with or without cause. The Bank s action can be immediate if the Bank believes such action is necessary to protect the security of the Bank or of your accounts. You may cancel the service upon notice to the Bank, with or without cause. Severability If any part of this Agreement and Disclosure is found to be unenforceable, the remaining portions of the Disclosure shall remain in full force and effect. California Law This Agreement and Disclosure will be governed by California and federal law. Notices By agreeing to obtain Online Bank service, you also agree that the Bank may send you notices and other correspondence by electronic mail addressed to the Internet address you furnish the Bank, and that such notices and other correspondence will have the same effect as if it had been sent to you by United States mail on the same date as it is transmitted to your Internet address. Ver. 08/2008 Sierra Vista Bank Online Bank Service Agreement and Disclosure 7