First State Financial

INTERNET BANKING AGREEMENT AND DISCLOSURE

    This Internet Banking Agreement and Disclosure ("Agreement") describes your rights and obligations as a user of the Internet Banking service or the Bill Payment service ("Services"). It also describes the rights and obligations of First State Financial, Inc. ("Bank"). Please read this Agreement carefully. By requesting and using one of these Services, you agree to comply with the terms and conditions of this Agreement.

  1. Definitions

    The following definitions apply in this Agreement:

    1. "Authorized Representative" refers to a person with authority (with respect to the account);
    2. "Bill Payment" is the online service that enables the scheduling of bill payments using a personal computer;
    3. "ISP" refers to your Internet Service Provider;
    4. "Internet Banking" is the internet-based service providing access to your Bank account(s);
    5. "Online Account" means the Bank account from which you will be conducting transactions using a Service;
    6. "Password" is the customer-generated code selected by you for use during the initial sign-on, or the codes you select after the initial sign-on, that establishes your connection to the Service;
    7. "PC" means your personal computer which enables you, with the Internet browser and ISP, to access your Online Account;
    8. "Time of day" references are to Eastern Standard Time;
    9. "User ID" is the Bank-generated identification code assigned to you for your connection to the Service;
    10. "We", "us", or "Bank" refer to Bank Name which offers the Services and which holds the accounts accessed by the Services; and
    11. "You" or "your" refers to the owner of the account or the authorized representative.
  2. Access to Services

    The Bank will provide instructions on how to use the Internet Banking and Bill payment Services. You will gain access to your Online Accounts through the use of your Internet-enabled device, your ISP, your Password and your User ID. You may access your Online Accounts 24 hours a day, seven (7) days a week. However, availability of the Services may be suspended for brief periods of time for purposes of maintenance, updating and revising the software.

    For purposes of transactions, the Bank's business days are Monday through Friday, excluding holidays and weekends. All Internet Banking transaction requests received after 4:00 P.M. on business days and all transactions which are requested on Saturdays, Sundays, or holidays on which the Bank chooses to remain closed, will be processed on the Bank's next business day. The Bank's business day begins at 8:00 A.M.

  3. Banking Transactions with Internet Banking

    1. Account Access: You may access a unlimited number of Bank personal accounts online. One of these accounts must be a primary checking account.
    2. Transfer of Funds: In addition to viewing account information, you may use Internet Banking to conduct the transfer of funds. You may make one-time transfers or schedule future or recurring transfers such as transfers to make loan payments. You may transfer funds among your checking accounts, savings accounts and money market accounts.
    3. NOTE: Because regulations require the Bank to limit preauthorized transfers (including Internet Banking transfers), the following limitations apply:
      • Saving Accounts: TRANSACTION LIMITATIONS. You may make no more than six transfers from this account to another account or to third parties by preauthorized, automatic transfer, or telephone transfer per month or statement cycle. A service charge of $5.00 will be charged for each withdrawal in excess of three during a calendar month.
      • Money Market Accounts: You can make no more than six (6) transfers per statement cycle by preauthorized or automatic transfer or by telephone or Internet Banking. Please note: If there are not sufficient funds in the account, we cannot complete this transfer. However, future recurring transfers will not be impacted.
    4. Additional Services: New services may be introduced for Internet Banking from time to time. The Bank will notify you of the existence of these new services. By using these services when they become available, you agree to be bound by the rules that will be made available to you concerning these services.
  4. Schedule of Fees

    On Line internet banking

    $ 0.00

    Bill Pay

    $ 0.00

    Replacement ATM Card

    $ 8.00

    Wire Transfer

    $ 28.00

    Overdraft Item Charge per item

    $ 35.00

    Account Research

    $ 30.00

    Returned Item Charge per item

    $ 35.00

    Photocopies

    $ 1.00

    Stop Payment fee

    $ 35.00

  5. Use of Your Security Password

    You are responsible for keeping your password and Online Account information confidential. In order to protect yourself against fraud, you should adhere to the following guidelines:

    • Do not give out your account information, Password, or User ID;
    • Do not leave your PC unattended while you are in the Bank's Internet Banking Site;
    • Never leave your account information within range of others; and
    • Do not send privileged account information (account number, Password, etc.) in any public or general e-mail system.

    If you believe your password has been lost or stolen, or if you suspect any fraudulent activity on your account, call the Bank immediately at 606-248-5950 between the hours of 8:00 A.M. to 4:00 P.M., Monday through Friday. Telephoning the Bank is the best way of minimizing your losses and liability.

    If you believe your Password has been lost or stolen, please use the Password change feature within the Internet Banking section of the Web site to change your Password.

  6. Electronic Mail (E-mail)

    If you send the Bank an e-mail message, the Bank will be deemed to have received it on the following business day. You should not rely on e-mail if you need to report an unauthorized transaction from one of your accounts or if you need to stop a payment that is scheduled to occur.

    • NOTE: E-mail transmissions outside of the Internet Banking site are not secure. We advise you not to send us or ask for sensitive information such as account numbers, Password, account information, etc. via any general or public e-mail system. If you wish to contact us electronically, please use the Guest Book provided in our Internet Banking site. Use this secure form to e-mail the Bank regarding inquiries about an electronic funds transfer error resolution, reporting unauthorized transactions, or contacting the Bank regarding other concerns of a confidential nature.
  7. Bill Payment Services

    1. Description of Service: The Bill Payment Service permits you to use your Internet-enabled device to direct payments from your designated online Bill Payment Account to third parties you wish to pay. Your Bill Payment Account must be a primary checking account. Through the Bill Payment Service, you can pay bills from your Bill Payment Account to businesses or individuals.
    2. All payments you make will be deducted from the checking account that you designate as your Bill Payment Account for the Bill Payment Service. Any payments you wish to make through this Service must be payable in U.S. dollars to a payee located in the continental United States. We reserve the right to restrict types of payees to whom payments may be made using the Service from time to time. You should not use the Bill Payment Service to make payments to settle securities purchases, payments to interest bearing accounts, tax payments, or court ordered payments. Payments for these payees will be your sole responsibility if delayed or improperly processed or credited.
    3. Scheduling Payments: Funds must be available in your Bill Payment Account on the scheduled payment date. If the date you schedule a payment to be initiated falls on a non-business day (Saturday, Sunday, or holiday), funds must be available in your Bill Payment Account the following business day (e.g. Monday). After funds are withdrawn from your Bill Payment Account to make a payment, we may make the payment either by transferring funds electronically to the payee or by mailing the payee a check.

      You may choose to schedule payments to recur in the same amount at regular weekly, monthly, or semi-monthly intervals. When you create a new payee in the Bill Payment Service, it takes two (2) business days to set up the payee to receive payments. You should schedule a payment to a new payee at least ten (10) business days before any payment due date, to allow us time to set up the payee and verify information about your account with the payee.

      For all subsequent payments, you agree to allow at least four (4) to ten (10) business days between the date you schedule a payment to be initiated and the payment due date (that is, the due date shown on your invoice or provided in your agreement with the payee, not taking into account any applicable grace period). If the payment is an Automatic Clearing House (ACH) electronic payment, it will take up to four (4) business days to reach the payee. However, if the company or person that you are paying cannot accept an electronic payment, the Bill Payment Service will send a check that may take up to ten (10) business days. If you do not follow these time frames, you will be fully responsible for all late fees, finance charges or other actions taken by the payee. If you schedule your payment and follow all instructions provided, but the payment is not received by the payee in a timely manner, the Bank will work with the payee on your behalf to reverse any late fees or charges.

    4. No Duty to Monitor Payments. The Bank is only responsible for exercising ordinary care in processing and sending payments upon your authorization in accordance with this Agreement. The Bank will not be liable in any way for damages you incur for any of the following reasons:
      1. Insufficient funds in your Bill Payment Account to make the payment on the processing date;
      2. Delays in mail delivery;
      3. Changes to the payee's address or account number unless we've been advised of the change in advance
      4. The failure of any payee to correctly account for or credit the payment in a timely manner, or
      5. Any other circumstances beyond the control of the Bank.

      If the session during which you schedule a payment or transfer ends by 2:00 p.m., the Bank will be considered to have received it on that day. Otherwise, it will be considered received on the following business day. For all entries made using the Services, the time recorded by the Internet Banking Service will be considered the official time of the transaction.

      If your Bill Payment Account does not have sufficient funds to make a payment as of the date the payment is debited to your account, the Bill Payment Service will automatically block future Bill Payment Service until the account has sufficient funds to make the payment. The Bank will attempt to notify you by e-mail or U.S. Postal Mail, but the Bank shall have no obligation or liability if it does not complete a payment because there are insufficient funds in your account to process a payment. In all cases, you are responsible for either contacting the Service at 606-248-5950 or 800-248-5950 to either make alternate arrangements for the payment or reschedule the payment through the Service. In the case of fixed payments, only the payment currently scheduled will be impacted. Fixed payments scheduled for future dates will not be affected.

    5. Cancel or Change Payment Instructions: Payments can be changed or canceled up through the business day the transaction is scheduled to be initiated prior to payment processing start. If you ask us to cancel a payment after it is issued and we agree to do so, we may charge you a stop payment fee. If the item is a check, this Order and other written orders valid for six months from the date the stop payment is placed and will automatically terminate six months from this date unless renewed in writing. If the item is an ACH (electronic) payment, this Order and other written orders are valid until you withdraw it and any other written orders.
    6. No Signature Required: When any payment or other online Service generates items to be charged to your account, you agree that we may debit your Bill Payment account without requiring your signature on the item and without prior notice to you.
    7. Multiple Person Bill Payment Accounts: If more than one person has access to a Bill Payment account, each person may individually enroll in the Bill Pay service. Each enrolled person needs a unique password but may choose to use the same payee list. Each individual may terminate her/his enrollment in the Bill Payment service without affecting the Service for any other person enrolled in that Bill Payment account. However, any enrolled person may terminate the Bill Payment service that will terminate the service for all enrolled persons on that Bill Payment account.
  8. Linked Accounts

    1. All accounts with the Bank that you enroll in a service will be linked by the tax identification numbers of the persons authorized to access the account. The linked accounts will appear together without regard to the ownership of the accounts. For example, if an authorized user of a linked account accesses the Service, that authorized user will be able to view and access at a single time the following accounts:
    2. The accounts of the business for which that person is an authorized user;
    3. The accounts of any other business for which that person is an authorized user; and
    4. Any consumer accounts for which the person is a co-owner or authorized signer.
  9. Business Accounts

    1. If you are a business, any authorized user of your business is authorized on such terms, conditions, and agreements as we may require to:
    2. Enter into this Agreement, as amended from time to time;
    3. Access each account of yours in any manner and for any purpose available through the Service, whether now available or available at some time in the future; and
    4. Use any Internet Banking service in any manner and for any purpose available through the Service, whether now available or available at some time in the future.
  10. Term and Termination

    1. Term: This Agreement will become effective on the date of acceptance of this agreement and shall remain in full force and effect until termination in accordance with the following provisions.
    2. Termination for Cause: We may immediately terminate your electronic banking privileges (including the Bill Payment Service) without notice to you under the following circumstances:
      1. You do not pay any fee required by this Agreement when due or
      2. You do not comply with the agreement governing your deposit or loan accounts or your accounts are not maintained in good standing.

      You may be notified if we terminate this Agreement or your use of the Services for any other reason.

  11. Termination for Convenience. To terminate this Agreement, you must notify the Bank and provide your name, address, the Service(s) you are discontinuing, and the termination date of the Service(s). When Bill Payment is terminated, any prescheduled bill payments made through Internet Banking will also be terminated. Your final charge for the Bill Payment service will be assessed at the end of your statement cycle. You may notify the Bank by one of the following methods:

    1. By sending an e-mail to internetbanking@firststatefinancial.net
    2. By calling 606-248-5950 or 800-248-5950
    3. By writing a letter and either sending it to the following address:
    4. First State Financial
      Attention: Bookkeeping
      1810 Cumberland Ave
      Middlesboro KY, 40965
    5. Or giving it to a Customer Service Representative at any of the Bank's locations.

    If you are not paying a monthly service charge for the Service, we may convert your account to inactive status if you do not sign on to the Service or have any transaction scheduled through the Service during any consecutive 90-day period. If your account is considered inactive, you must contact us to have the Service activated before you will be able to schedule any transaction through the Service.

  12. Electronic Fund Transfer Provisions For Consumers

    1. Applicability: These provisions are only applicable to online electronic fund transfers that credit or debit a consumer's checking, savings or other asset account and are subject to the Federal Reserve Board's Regulation E (an "EFT"). When applicable, the Bank may rely on any exceptions to these provisions that are contained in Regulation E. All terms that are not defined in this Agreement but which are defined in Regulation E shall have the same meaning when used in this section.
    2. Consumer's Liability: You will tell us AT ONCE if you believe your card or code 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 us 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 you tell us within two business days after you learn of the loss or theft of your card or code, you can lose no more than $50 if someone used your card or code without your permission.
    3. If you do NOT tell us within two business days after you learn of the loss or theft of your card or code and we can prove we could have stopped someone from using your card or code without your permission if you had told us, you could lose as much as $500.00.

      Also, if your statement shows transfers that you did not make, including those made by card, code or other means, you will 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 that 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 a hospital stay) kept you from telling us, we will extend the time periods.

    4. Limitation of Liability for Unauthorized Master Card Point of Sale Transactions using MasterMoney Card. You will not be liable for any unauthorized transactions using your MasterMoney Card, when used for point-of-sale transactions if: (i) you can demonstrate that you have exercised reasonable care in safeguarding your card from the risk of loss or theft, (ii) you have not reported to us two or more incidents of unauthorized use within the prior twelve-month period, and (iii) your account is in good standing. If any of these conditions has not been met, your liability is the lesser of $50 or the amount of money, property, labor, or services obtained by the unauthorized use before notification to us. 'Unauthorized use' means the use of your debit card by a person, other than you, who does not have actual, implied, or apparent authority for such use, and from which you receive no benefit.
    5. When you use an ATM not owned by us, you may be charged a fee by the ATM operator or any network used (and you may be charged a fee for a balance inquiry even if you do not complete a fund transfer).

    6. Contact in Event of Unauthorized Transfer: If you believe your card or code has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, you will call (606) 248-5950 or write FIRST STATE FINANCIAL INC, Bookkeeping Department, First State Financial Inc Middlesboro Br, Po Box 400, Middlesboro,, KY 40965.
    7. You should also call the number or write to the address listed above if you believe a transfer has been made using the information from your check without your permission.

    8. Business Days: For purposes of these disclosures, our business days are Monday, Tuesday, Wednesday, Thursday, and Friday. Holidays are not included.
    9. Types of Transfers: You may authorize certain direct deposits to your checking or savings account. You may authorize certain bills and other payments to be deducted from your checking or savings accounts. A merchant may convert your check in payment for merchandise or services into an electronic funds transfer from your account.
    10. You may use your card or code to:

      1. Pay for purchases at places that have agreed to accept the card or code.
      2. Transfer funds between your checking and savings accounts.
      3. Withdraw cash from your checking and savings accounts.
      4. Pay bills directly by telephone from your checking or savings account in the amounts and on the days you request.

      Some of these services may not be available at all terminals.

    11. Electronic Check Conversion
      You may authorize a merchant or other payee to make a one-time electronic payment from your checking account using information from your check to pay for purchases or pay bills.
      1. Limitations on Dollars Amounts of Transfers: You may withdraw no more than $300.00 per day from your checking and/or savings account(s) using your MasterMoney Card and no more than $200.00 per day using your ATM card.
      2. You may not exceed $500.00 in transactions per day using your MasterMoney Card.
      3. Bill Payment transactions may not exceed $9,999.99 per payment and daily total payments may not exceed $19,999.99 per day.
    12. Confidentiality
      We will disclose information to third parties about your account or the transfers you make:
      1. Where it is necessary for completing transfers, or
      2. In order to verify the existence and condition of your account for a third party such as a credit bureau or merchant, or
      3. In order to comply with government agency or court orders, or
      4. If you give us written permission.
    13. Documentation
      1. Terminal Transfers: You can get a receipt at the time you make any transfer that exceeds $15.00 to or from your account using one of our automated teller machines or point-of-sale terminals.
      2. Preauthorized Credits: If you have arranged to have direct deposits made to your account at least once every 60 days from the same person or company you can call us at (606) 248-5950 to find out whether the deposit has been made.
      3. Periodic Statements: You will get a monthly account statement unless there are no electronic transfers in a particular month. In any case, you will get the statement at least quarterly.
    14. Preauthorized Payments
      1. Stop Payments: 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 us at (606) 248-5950 or write us at FIRST STATE FINANCIAL INC, First State Financial Inc Middlesboro Br, Po Box 400, Middlesboro,, KY 40965, in time for us to receive your request three business days or more before the payment is scheduled to be made. If you call, we can also require you to put your request in writing and get it to us within 14 days after your call. We will charge you $30.00 for each stop payment order you give us.
      2. 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.)
      3. Liability for Failure to Stop Payment of Preauthorized Transfer: If you order us to stop one of these payments three business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages.
    15. Financial Institution's Liability
      If we do not complete a transfer to or from your account on time, or in the correct amount according to your agreement with us, we will be liable for your losses or damages. However, there are some exceptions. We will not be liable, for instance:
      1. If, through no fault of ours, you do not have enough money in your account to make the transfer.
      2. If the transfer would go over the credit limit on your overdraft line.
      3. If the automated teller machine where you are making the transfer does not have enough cash.
      4. If the terminal or system was not working properly and you knew about the breakdown when you started the transfer.
      5. If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken.
      6. There may be other exceptions stated in your agreement with us.

      IN CASE OF ERRORS OR QUESTIONS ABOUT YOUR ELECTRONIC TRANSFERS: You will telephone us at (606) 248-5950 or write us at FIRST STATE FINANCIAL INC, First State Financial Inc Middlesboro Br, Po Box 400, Middlesboro,, KY 40965 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. You will:

      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 after we hear from you 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 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 within 10 business days, we may not credit your account.

      For errors involving new accounts, point-of-sale, or foreign- initiated transactions, we may take up to 90 days to investigate your complaint or question. For new accounts, we may take up to 20 business days to credit your account for the amount you think is in error.

      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.

      Exchange Rate for Foreign Transfers: If a transfer takes place outside of the United States and is in a foreign currency, Visa or MasterCard will convert the transfer into U.S. dollars by using their own currency conversion procedures. The exchange rate will be determined in one of two ways: (1) the exchange rate will be selected from the range of rates available in the wholesale currency markets for the central processing date (which may be different from the rate received by Visa or MasterCard), or (2) the exchange rate will be a government-mandated rate in effect for the applicable central processing date, plus any adjustment determined by the card issuer and disclosed separately in the fee section of the cardholder agreement. The currency exchange rate used may differ from the rate in effect when your transfer occurred or was posted to your account.

      IN NO EVENT SHALL WE HAVE ANY LIABILITY TO YOU OR ANY THIRD PARTY FOR ANY INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES RESULTING FROM OR ARISING OUT OF THIS AGREEMENT.

      1. Indemnification. You agree to indemnify, defend and hold us, our affiliate companies, directors, officers, employees and agents harmless against any third party claim, demand, suit, action or other proceeding and any expenses related to an Internet Banking or Bill Payment account.
      2. Third Parties. We are not liable for any loss or liability resulting from any failure of your equipment or software, or that of an internet browser provider such as Netscape (Netscape Navigator browser) or Microsoft (Microsoft Explorer browser), by an internet access provider, or by an online service provider, nor will we be liable for any direct, indirect, special or consequential damages resulting from your access to or failure to access an Internet Banking or Bill Payment account.
      3. Virus Protection. The Bank is not responsible for any electronic virus or viruses that you may encounter. We suggest that you routinely scan your PC using a virus protection product. An undetected virus may corrupt and destroy your programs, files, and your hardware.
    16. General Terms and Condition

      1. Bank Agreements. In addition to this Agreement, you and the Bank agree to be bound by and comply with the requirements of the agreements applicable to each of your Online Accounts. Your use of the Internet Banking Service or the Bill Payment Service is your acknowledgment that you have received these agreements and intend to be bound by them. In addition, at the time of account opening you were provided disclosures and fee schedules pertaining to your account. You should review this information or you may request duplicate copies of these items. Furthermore, any fees that are associated with a service will be disclosed at the time of executing the transaction, these fees will be deducted from the account at time of service.
      2. Changes and Modifications. The Bank may modify the terms and conditions applicable to the Services from time to time. We may send any notice to you via e-mail and you will have to be deemed to have received it three days after it is sent. The revised terms and conditions shall be effective at the earliest date allowed by applicable law. We reserve the right to terminate this Agreement and your use of the Services in whole or in part at any time without prior notice.
      3. Assignment. We may assign this Agreement to an affiliate of the Bank or any successor in interest in the event of a merger, reorganization, change of control, acquisition or sale of all or substantially all assets of the business to which this Agreement is related without the other party's prior written consent.
      4. Notices. Unless otherwise required by applicable law, any notice or written communication given pursuant to this Agreement may be sent to you electronically.
      5. Disclosure of Information. We will only disclose information to third parties about your account or transfers you make under the following circumstances:
        1. where it is necessary for the provision of Internet Banking and for completing transfers;
        2. in order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant;
        3. in order to comply with government or court orders, or other reporting requirements;
        4. if you give us your permission;
        5. To the Bank affiliated companies.
      6. Governing Law. This Agreement is governed by the laws of the State of Kentucky and applicable federal law.