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Online Banking Agreement and Disclosure Statement

Definitions — As used in this Agreement, the words “we,” “our,” “us,” and “Bank” mean The First National Bank of Milaca.  “You” and “your” refer to the accountholder authorized by us to use the Internet Banking and Electronic Bill Payment services under this Agreement and anyone else authorized by that accountholder to exercise control over the accountholder’s funds through that service. “Account” or “accounts” means your accounts at The First National Bank of Milaca. “Electronic funds transfers” means ATM withdrawals, preauthorized transactions, point of sale transactions, transfers to and from your Bank accounts using Internet Banking including bill payments. “Online Banking” means the Internet based services provided pursuant to this Agreement, including the Bill Payment Service.  “Business days” means Monday through Friday. Federal Holidays are not included.

Agreement — This Agreement, which includes the Fee Schedule and Enrollment Form, is a contract, which establishes the rules, which cover your electronic access to your accounts with us through the “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.  You must follow all of our instructions and procedures applicable to the services covered by this agreement.  Please read it carefully.

The terms and conditions of the deposit agreements and disclosures for each of your Bank accounts as well as your other agreements with us such as loans continue to apply notwithstanding anything to the contrary in this Agreement.

This Agreement is also subject to applicable federal laws and the laws of the State of Minnesota (except to the extent this Agreement can and do vary such rules or laws). If any provision of this Agreement is found to be unenforceable according to its terms, all remaining provisions will continue in full force and effect. The headings in this Agreement are for convenience or reference only and will not govern the interpretation of the provisions. Any waiver (expressed or implied) by either party of any default or breach of this Agreement must be in writing and shall not constitute a waiver of any other or subsequent default or breach. You may not assign this Agreement. This Agreement is binding upon your heirs and Bank’s successors and assigns. Certain of the obligations of the parties pursuant to this Agreement that by their nature would continue beyond the termination, cancellation or expiration of this Agreement shall survive termination, cancellation or expiration of this Agreement. This Agreement, together with the Enrollment Form and Fee Schedule, constitutes the entire agreement between you and the First National Bank of Milaca with respect to the subject matter hereof and there are no understandings or agreements relative hereto which are not fully expressed herein.

Access — To use “ONLINE BANKING”, you must have at least one checking account with us, access to Internet service, and an e-mail address. Once we have received your signed Enrollment Form, and verified your account information, we will send you, either by e-mail or by postal mail, confirmation of our acceptance of your enrollment, along with your assigned log-in ID and temporary password. “ONLINE BANKING” in your Enrollment Form will access only your designated Bank accounts you have authorized for access. You can add or delete any of your Bank accounts from this Agreement by completing a new Enrollment Form. Access to your accounts through “ONLINE BANKING” will be based upon the identification of users and authority levels specified by you in your Enrollment Form. We undertake no obligation to monitor transactions through “ONLINE BANKING” to determine that they are made on behalf of the accountholder.

Protecting your Privacy — Protecting your privacy is important to First National Bank of Milaca, the Board of Directors and our employees.  In general, you can visit us on the World Wide Web without disclosing to us who you are or revealing any information about yourself.  There are several areas, however, that will collect certain information about you and we want you to know how we handle that information.

If you visit our website, First National Bank of Milaca collects and stores information on the domain you use to access our website, the Internet address of the site from which you linked directly to the site, and the date and time of your visit.  This information is used to measure the number of visitors to the various pages on our site to better serve our customers.

If you send an e-mail, First National Bank of Milaca collects and stores personally-identifying information in order to process your e-mail, form or application.  This information is not sold to any third parties.  Due to the volume of e-mail activity, these messages are deleted after they are answered or completed.

If you visit a secure site, such as home Banking, you will be asked for personal identification numbers which will give you access to the customer only section of our website.  This information enables First National Bank of Milaca to regulate entry to the customer only portions of our website and to measure customer usage.  Any identifying information gathered is not shared with our affiliates and is not sold to third parties.

If you link to another site from any of our pages, you are leaving our site pages, and we cannot be held responsible for any information that may be gathered at a linked site.  We make every effort however, to ensure that all linked sites follow similar privacy policies as ours to offer you maximum security and privacy.

“ONLINE BANKING” Services — You can use “ONLINE BANKING” to check the balance of your Bank accounts, view Bank account histories, transfer funds between your Bank accounts, order checks, make stop payment requests, view checks, change your address, and pay bills from your Bank accounts in the amounts and on the dates you request if you have requested the Bill Payment Service on your Enrollment Form. Balance and activity information are available as of 3:30 p.m. (Central Standard Time) of the previous business day.

Hours of Access— You can use “ONLINE BANKING” seven days a week, twenty-four hours a day, although some or all “ONLINE BANKING” services may not be available occasionally due to emergency or scheduled “ONLINE BANKING” maintenance. We agree to post notice of any extended periods of non-availability on the “ONLINE BANKING” web site.

Your Password — For security purposes, you are required to change your password upon your initial login to “ONLINE BANKING”. You determine what password you will use and the identity of your password is not communicated to us. You agree that we are authorized to act on instructions received under your password. You accept responsibility for the confidentiality and security of your password and agree to change your password regularly. Upon three unsuccessful attempts to use your password, your access to “ONLINE BANKING” will be revoked. To re-establish your authorization to use “ONLINE BANKING”, you must contact us to have your password reset or to obtain a new temporary password.

We recommend that you create a password that utilizes both upper and lower case alpha and numeric characters for purposes of security. Your password should not be associated with any commonly known personal identification, such as social security numbers, address, date of birth, names of children, and should be memorized rather than written down.

Security — You understand the importance of your role in preventing misuse of your accounts through “ONLINE BANKING” and you agree to promptly examine your paper statement for each of your Bank accounts as soon as you receive it. You agree to protect the confidentiality of your account and account number, and your personal identification information, such as your driver’s license number and social security number. You understand that personal identification information by itself, or together with information related to your account, may allow unauthorized access to your account. Your password and login ID are intended to provide security against unauthorized entry and access to your accounts. Data transferred via “ONLINE BANKING” is encrypted in an effort to provide transmission security and “ONLINE BANKING” utilizes identification technology to verify that the sender and receiver of “ONLINE BANKING” transmissions can be appropriately identified by each other. Notwithstanding our efforts to insure that the “ONLINE BANKING” is secure, you acknowledge that the Internet is inherently insecure and that all data transfers, including electronic mail, occur openly on the Internet and potentially can be monitored and read by others. We cannot and do not warrant that all data transfers utilizing “ONLINE BANKING”, or e-mail transmitted to and from us, will not be monitored or read by others.

Fees and Charges— You agree to pay the fees and charges for your use of “ONLINE BANKING” Services as set forth in the current fee schedule. You agree that all such fees and charges will be deducted from the Bank checking account designated as the “Primary Checking Account” on your Enrollment Form. If you close your Primary Checking Account, you must contact us immediately to designate another account as your Primary Checking Account. You agree to pay any additional reasonable charges for services you request that are not covered by this Agreement. You are also responsible for telephone and Internet service fees you incur in connection with your use of “ONLINE BANKING”.

Posting of Transfers— Transfers initiated through “ONLINE BANKING” before 3:30 p.m. (Central Standard Time) on a business day are posted to your account the same day. Transfers completed after 3:30 p.m. (Central Standard Time) on a business day, Saturday, Sunday or Banking holiday, will be posted on the next business day. “ONLINE BANKING” identifies transfers based upon the login ID of the user who made the electronic transfer. Accordingly, you understand and acknowledge that the View Postings screens in both the Transfer and Bill Payer menu options of “ONLINE BANKING” will not reflect transfers made by multiple users from the same account if different login IDs are used. You agree to communicate with any other persons with authorized access to your accounts concerning any transfers or bill payments from your accounts in order to avoid overdrafts.

Overdrafts (Order of Payments, Transfers, and other Withdrawals) — If your account has insufficient funds to perform all electronic fund transfers you have requested for a given business day, then:

Limits on Amounts and Frequency of “ONLINE BANKING” Transactions — The number of transfers from Bank accounts and the amounts, which may be transferred, are limited pursuant to the terms of the applicable deposit agreement and disclosure for those accounts. 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.

“ONLINE BANKING” Bill Payment Service — You must designate the Bank account from which the payments are to be made; the complete name of the payee, the account number, and the payee’s remittance address, all exactly as shown on the billing statement or invoice; the amount of the payment; and the date you want the payment to be debited from your account. If the date you want the payment to be debited from your account is not a business day, your account will be debited the next business day before 3:30 p.m. (Central Standard Time). By using the “ONLINE BANKING” Bill Payment Service option, you agree that, based upon instructions received under your password, we can charge your designated account by electronic transfer, “no signature required draft”, or by debiting and remitting funds on your behalf. You also agree that your first “ONLINE BANKING” bill payment will be charged to your Primary Checking Account. We reserve the right to refuse to pay any payee designated by you. If we do so, we will notify you promptly.

Scheduling Payments— If the payee is to be paid by paper check (as indicated on the Bill Payer list), you understand and agree that paper checks are mailed to the payee and the payee may not receive the payment until 5 to 8 business days after the date the payment is debited from your account. If the payee is to be paid electronically (as indicated on the Bill Payer list), you understand and agree that the payee may not receive the payment until 72 hours after the date the payment is debited from your account. You understand and agree that we are not responsible for the timely delivery of mail or the improper transmission or handling of payments by a third party such as the failure of the bill payment payee to properly post a payment to your account.

How to Cancel a Bill Payment — To cancel a bill payment that you have scheduled through “ONLINE BANKING”, you must cancel the payment online via “ONLINE BANKING” (by following the onscreen instructions) before 3:30 p.m. (Central Standard Time) on the date the payment is scheduled to be debited from your account.

Stop-Payment Requests— Stopping the payment of a check is different from the cancellation of a bill payment. Once the bill payment has been debited from your account, you CANNOT cancel or stop a bill payment, which has been paid electronically. You may be able to stop a “ONLINE BANKING” bill payment paid by paper draft by contacting us by telephone before the paper draft has cleared. (You will have to contact us by telephone to determine if the paper draft has cleared.) If the paper draft has not cleared, we will immediately process your stop-payment request. We will notify you immediately if the paper draft has already cleared. To be effective, this type of stop-payment request must precisely identify the name of the payee, the payee-assigned account number, the amount and scheduled date of the payment, and the ID number from the Bill Payment View Posting Screen.

You may initiate stop-payment requests online via “ONLINE BANKING” only for paper checks you have written (non-electronically) on your Bank accounts (not “ONLINE BANKING” bill payer paper drafts.) Online stop-payment requests are processed at 9:00 a.m. on the business day following the date the stop payment has been requested online. To be effective, this type of stop-payment request must precisely identify the name of the payee, the check number, the amount, and the date of the check.

If you make your stop-payment request online or by telephone, we may also require you to put your request in the form of paper writing and get it to us within 14 days after you call. You will incur stop-payment charges as disclosed in the current fee schedule for the applicable account. Stop-payment charges for “ONLINE BANKING” bill payment paper drafts may be assessed in addition to the stop-payment charges for the applicable account.

Disclosure of Account Information and Transfers — You understand information about your accounts or the transfers you make may automatically be disclosed to others. For example, tax laws require disclosure to the government of the amount of interest you earn, and some transactions, such as large currency and foreign transactions, must be reported to the government. We may also provide information about your accounts to persons or companies we believe would use the information for reasonable purposes, such as when a prospective creditor seeks to verify information you may have given in a credit application or a merchant calls to verify a check you have written. In addition, we routinely inform credit bureaus when accounts are closed because they were not handled properly. We may also seek information about you from others, such as the credit bureau, in connection with the opening or maintaining of your account or in connection with approving your access to “ONLINE BANKING”. You agree and hereby authorize all of these transfers of information.

Periodic Statements— Your “ONLINE BANKING” transactions will appear as “Web Transfer” on your monthly statements we provide or make accessible to you for your accounts.  You agree to notify us promptly if you change your address or if you believe there are any errors or unauthorized transactions on any statement, or statement information.

Change in Terms— We may change any term of this Agreement at any time. If the change would result in increased fees for any “ONLINE BANKING” service, increased liability for you, fewer types of available electronic fund transfers, or stricter limitations on the frequency or dollar amount of transfers, we agree to give you notice at least 21 days before the effective date of any such change, unless an immediate change is necessary to maintain the security of an account or our electronic fund transfer “ONLINE BANKING”. We will post any required notice of the change in terms on the “ONLINE BANKING” web site or forward it to you by e-mail or by postal mail. If advance notice of the change is not required, and disclosure does not jeopardize the security of the account or our electronic fund transfer “ONLINE BANKING”, we will notify you of the change in terms within 30 days after the change become effective. Your continued use of any “ONLINE BANKING” Services indicates your acceptance of the change in terms. We reserve the right to waive, reduce or reverse charges or fees in certain circumstances. You acknowledge and agree that changes to fees applicable to specific accounts are governed by the applicable deposit agreements and disclosures.

In Case of Errors or Questions about Your Electronic Transfers, including Bill Payments - Contact us as soon as you can, if you think your paper statement is wrong, or if you need more information about a transfer listed on your paper statement. We must hear from you no later than 60 days after we sent the FIRST paper statement upon which the problem or error appeared.  When you contact us:

If you contact us by telephone or by e-mail, we may require that you send us your complaint or question in the form of paper writing by postal mail or fax within 10 business days.  This document needs your signature and date of completion.

We will communicate to you the results of our investigation within 10 business days after you contact us 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 credit your account within 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 in the form of a paper writing within 10 business days, we may not provisionally credit your account.

If we decide that there was no error, we will send you a written explanation within 3 business days after we finish our investigation. You may ask for copies of the documents that we used in our investigation. If we have made a provisional credit, a corresponding debit will be made from your account.

Our Liability for Failure to Make a Transfer — If we do not complete a transfer to or from your account, including a bill payment, on time or in the correct amount, according to our agreement with you when you have properly instructed us to do so, we will be liable to you for your losses or damages caused as a result. However, there are some exceptions. We will NOT be liable, for instance:

Your Liability for Unauthorized Transfers — CONTACT US AT ONCE if you believe your password has been lost, stolen, used without your authorization, or otherwise compromised, or if someone has transferred or may transfer money from your accounts without your permission. An immediate telephone call to us is the best way to reduce any possible losses. You could lose all the money in your accounts (plus your maximum overdraft line of credit, if any). If you contact us within 2 business days after you learn of the loss, theft, compromise, or unauthorized use of you password, you can lose no more than $50 if someone used your password without your permission.

If you do NOT contact us within 2 business days after you learn of the loss, theft, compromise, or unauthorized use of your password, and we can prove we could have stopped someone from using your password to access your accounts without your permission if you had told us, you could lose as much as $500.

Also, if your paper statement shows transfers that you did not make, contact us at once. If you do not tell us within 60 days after the paper statement was mailed to you, you may not get back any money you lost through transactions made after the 60 day time period 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 contacting us, we will extend the time periods.

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 BANKING” Services provided to you under this Agreement. We do not and cannot warrant that “ONLINE BANKING” will operate without errors, or that any or all “ONLINE BANKING” Services will be available and operational 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 or access to “ONLINE BANKING”, including loss of profits, revenue, data or use by you or any third party, whether in an action in contract, tort or based on a warranty. Further, in no event shall the liability of First National Bank of Milaca exceed the amounts paid by you for the services provided to you through “ONLINE BANKING”.

Your Right to Terminate— You may cancel your “ONLINE BANKING” service at any time by providing us with written notice by postal mail or fax. Your access to “ONLINE BANKING” will be suspended within 3 business days of our receipt of your instructions to cancel the service. You will remain responsible for all outstanding fees and charges incurred prior to the date of cancellation.

Our Right to Terminate— You agree that we can terminate or limit your access to “ONLINE BANKING” Services for any of the following reasons:

Communications between The First National Bank of Milaca and You — Unless this Agreement provides otherwise, you can communicate with us in any one of the following ways:

Consent to Electronic Delivery of Notices — You agree that any notice or other type of communication provided to you pursuant to the terms of this Agreement, and any future disclosures required by law, including electronic fund transfer disclosures, may be made electronically by posting the notice on our website at www.fnbmilaca.com or by e-mail. You agree to notify us immediately of any change in your e-mail address.