ONLINE BANKING & INTERNET BILL PAYMENT SERVICES AGREEMENT & DISCLOSURES

FNB INTERNET BANKING & INTERNET BILL PAYMENT SERVICES AGREEMENT & DISCLOSURES

Introduction. This Agreement is the contract which covers your and our rights and responsibilities concerning Online Banking ("Internet Banking") and Internet Bill Payment ("FNB Bill Pay") Services offered to you by the First National Bank of Stratton, Severance, Mead and Seibert (“First National Bank or Bank”). In this Agreement, the words "you" and "yours" mean those who submit an Internet Banking authorization form and any authorized users.

By submitting the Internet Banking or online authorization for the Internet Banking service, you agree to the following terms governing your and our rights and responsibilities concerning the Internet Banking electronic funds transfer services. Electronic funds transfers ("Lefts") are electronically initiated transactions through Internet Banking and FNB Bill Pay transactions involving your deposit accounts.

1. Online Banking Services. Upon approval, you may use your personal computer to access your accounts. You must use your member number (“user name”) along with your password to access your accounts. The Internet Banking service is accessible seven (7) days a week, 24 hours a day. However, from time to time, some or all of the First National Banks Internet Banking services may not be available due to system maintenance. During such times, you may use Telephone Banking by calling 800-692-2084, or by visiting one of our branches. You will need a personal computer and a web browser (such as Netscape Navigator or Microsoft Internet Explorer). The link to the First National Banks Internet Banking services can be found at www.fnbstratton.com. You are responsible for the installation, maintenance and operation of your computer and modem and security. Any information obtained from your computer, whether it is stored or transmitted must be safeguarded. Safeguards must be installed on the customer’s side to prevent unauthorized and unintended use by outside parties. While the bank and internet providers have taken appropriate steps to prevent someone from "Hacking" into our systems, please remember that your personal computer may not be safe, and protection software may need to be installed on your own personal computer. The First National Bank will not be responsible for any errors or failures involving any telephone service, your computer, or any information obtained from your computer. At the present time, you may use the Internet Banking service to:

Transfer funds between your Checking and Select Money Market™ accounts.
Transfer funds from your Checking and Savings account to a loan account.
Review account balance, and/or transaction history for Checking, Savings, Select Money Market™, Certificate, and IRA accounts.
Review information on your loan accounts including balance information, interest rates, scheduled payment amounts, and next payment due dates.
Make bill payments from your checking account using the optional Internet Bill Pay service if applicable.

Transactions involving your deposit accounts will be subject to the terms of your Account Agreement and transactions involving a line of credit account will be subject to your Loan Agreement and Disclosures, as applicable.

2. Online Banking Service Limitations. The following limitations on Internet Banking transactions may apply:

Transfers. You may make funds transfers to your other accounts as often as you like. However, transfers from your savings or money market accounts will be limited to a total of six (6) in any one month. You may transfer or withdraw up to the available balance in your account or up to the available credit limit on a line of credit at the time of the transfer, except as limited under this Agreement or your deposit or loan agreements. The First National Bank reserves the right to refuse any transaction that would draw upon insufficient or unavailable funds, lower an account below a required balance, or otherwise require us to increase our required reserve on the account. The First National Bank may set other limits on the amount of any transaction and you will be notified of those limits.
Account Information. The account balance and transaction history information may be limited to recent account information involving your accounts. Also, the availability of funds for transfers or withdrawals may be limited due to the processing time for any ATM deposit transactions and our Funds Availability Policy.
E-Mail. You may use your Internet e-mail service to send messages to us. E-mail may not, however, be used to initiate a transfer on your account or a stop payment request. The First National Bank may not immediately receive E-mail communications that you send and the First National Bank will not take action based on E-mail requests until the First National Bank actually receives your message and has a reasonable opportunity to act. If you need to contact the First National Bank immediately regarding an unauthorized transaction or stop payment request, you may call the First National Bank at telephone number 800-533-5192.
Internet Bill Payment Service. When you apply for the FNB Bill Pay Service you must designate your First National Bank checking or savings account as the account from which payments that you authorize will be deducted. If your application for FNB Bill Pay is approved, you will be given the ability to set up merchants, institutions or individuals that you would like to pay. You are not permitted to designate governmental agencies or courts. We reserve the right to not allow the designation of a particular merchant or institution.

You or any persons who you have authorized to use your FNB Bill Pay, Internet Banking, sign-on Password or any access code can perform the following transactions:

Pay any designated merchant, institution or individual in accordance with this agreement a fixed recurring amount or a variable amount "on demand," from your designated First National Bank Checking Account.
Obtain information (payee information, payment status information, etc.) about your FNB Bill Pay account status.
FNB Bill Pay Transactions. You authorize us to process bill payments from your designated account.

You may use the FNB Bill Pay service to initiate three different types of payment transactions:

"On demand" payments are payments that are not reoccurring. The payments can be canceled or changed through Bill Pay up until 12:00 midnight before your Scheduled Debit Date.
"Future" payments are payments that you initiate each payment by setting the payment amount and due date. The payment can be canceled or changed through FNB Bill Pay up until 12:00 midnight before the Scheduled Debit Date.
"Recurring" payments are payments that are reoccurring on a fixed due date and fixed amount. You have an option in the FNB Bill Pay system to set Automatic Payments to continue indefinitely or set a maturity date. The payment can be canceled or changed through FNB Bill Pay up until 12:00 midnight before the Scheduled Debit Date.

Authorized Payments. When you transmit a bill payment instruction to us, you authorize us to transfer funds to make the bill payment transaction from your designated First National Bank checking account. We will process bill payment transfer requests only to those payees the First National Bank has designated in its User Instructions and such payees as you authorize and for whom the First National Bank has the proper payee code number. The First National Bank will not process any bill payment transfer if we know the required transaction information is incomplete. In any event, the First National Bank will not be liable for any transaction that contains incorrect information that the First National Bank was not responsible for entering or knowing. If there are insufficient funds in your account to make the bill payment request, we may refuse to make the payment, make the payment and transfer funds from any overdraft protection account you have established, or make the payment and thereby overdraw the payment account. In any event that you have insufficient funds in your payment account to make the bill payment request, you are responsible for any non-sufficient funds ("NSF") or overdraft charges the First National Bank may impose. You are also responsible for any NSF, finance charges, and/or late fees imposed by the bill payment provider and/or the merchant(s) you intended to pay with your bill payment account. The First National Bank reserves the right to refuse to process payment instructions that reasonably appear to the First National Bank to be fraudulent or erroneous.
Processing Payments. The amount of your requested FNB bill payments will be deducted from your account on the Scheduled Debit Date and will be posted within two business days of the date that the payment is transmitted to the payee. You will receive a confirmation number at the time of each transaction. Therefore, you must have sufficient funds available to cover your payment on the Scheduled Initiation Date.

FNB Bill payments are delivered to the payee either electronically, which may take up to three business days from the Scheduled Debit Date, or by check to those payees not set up to accept electronic payments, which may take up to five business days from the Scheduled Debit Date. It is your responsibility to schedule your FNB bill payments in such a manner that your obligations will be paid on time. You should enter and transmit your FNB bill payment instructions at least five (5) business days before a bill is due. If you do not allow sufficient time, you assume full responsibility for any late payments or finance charges that may be imposed as a result of your failure to transmit a timely FNB bill payment authorization.

Canceling or Changing FNB Bill Pay. Payments designated as "on demand" transactions cannot be stopped, canceled or changed once your FNB Bill Pay session has ended. You may cancel or stop payment on Future and Recurring bill payments instructions under certain circumstances by following the instructions provided. If you discover an error in or want to change a payment instruction (i.e. payment date or payment amount) for a bill payment that you have already scheduled for transmission through the FNB Bill Pay service, you may electronically edit or cancel your payment request through the FNB Bill Pay service. Your cancellation request must be entered and transmitted through the FNB Bill Pay service before the date you have scheduled for payment. If your request is not entered in a timely manner, you will be responsible for the payment.

If you wish to place an oral stop payment on a recurring bill payment transaction, not using the FNB Bill Pay service, the First National Bank must receive your oral stop payment request at least three (3) business days before the Scheduled Debit Date. You may call the bank at the telephone number set forth in Section 4 to request a stop payment. If you call, the First National Bank may require you to confirm your stop payment request in writing within 14 days after the call.

3. Security of Access Code.

Initial Access. After you have successfully completed and submitted the First National Banks Internet Banking Registration Form, a representative from First National Bank will contact you to initiate your use of the services. To log on to our Internet Banking Service for the initial sign on, you must use your personal ID as the user ID and a special financial institution supplied "key" that will be given to you when you are contacted by email from First National Bank. After you have successfully accessed the Internet Banking Service, you will then select a specific, personal password to access the Internet Banking Service for future access to the system. After your initial sign-on, you may change your password at any time by selecting the appropriate function from the User Options menu within the Internet Banking Service.

For FNB Bill Payment Services: Approximately five (5) days after your application for Bill Payment Services has been received, reviewed, and approved by the bank, you will receive an FNB Bill Payment Account ID in the mail, followed approximately two (2) days later by a randomly assigned Personal Identification Number (PIN). This FNB Bill Pay Account ID and PIN are to be used for the initial sign on into Bill Payment Services. After the initial sign on, you will not be required to enter a PIN for any subsequent session. The FNB Bill Pay Service will be accessed through the Internet Banking Service; therefore you will enter a Password to sign on to the Internet Banking service as described above (see a. Initial Access).

Security. The personal identification number or access code ("access code") that you select is for your security purposes. The access code is confidential and should not be disclosed to third parties or recorded. You are responsible for safekeeping your access code. You agree not to disclose or otherwise make your access code available to anyone not authorized by you to sign on your accounts. If you authorize anyone to have or use your access code, you understand that person may use the Internet banking service to review all of your account information and make account transactions. Therefore, we are entitled to act on transaction instructions received using your access code and you agree that the use of your access code will have the same effect as your signature authorizing transactions.
Authorization. If you authorize anyone to use your access code in any manner that authority will be considered unlimited in amount and manner until you specifically revoke such authority by notifying the First National Bank and changing your access code immediately. You are responsible for any transactions made by such persons until you notify us that transactions and access by that person are no longer authorized and your access code is to be changed. If you fail to maintain or change the security of these access codes and the First National Bank suffers a loss, we may terminate your electronic funds transfer and account services immediately.

4. Member Liability. You are responsible for all transfers you authorize using the Internet Banking services under this Agreement. If you permit other persons to use your access code, you are responsible for any transactions they authorize or conduct on any of your accounts. However, tell us at once if you believe anyone has used your access code and accessed your accounts without your authority. Telephoning is the best way of keeping your possible losses down. For Internet Banking transactions, if you tell us within two (2) business days, you can lose no more than $50.00 if someone accessed your account without your permission. If you do not tell us within two (2) business days after you learn of the unauthorized use of your account or access code, and we can prove that we could have stopped someone from accessing your account without your permission if you had told us, you could lose as much as $500.00.

Also, if your statement shows Internet Banking transfers that you did not make, tell us at once. If you do not tell us within sixty (60) days after the statement was mailed to you, you may be liable for the full amount of the loss if we can prove that we could have stopped someone from making the unauthorized EFT transactions. If a good reason (such as a hospital stay) kept you from telling us, we may extend the time periods.

If you believe your access code has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, call:

(800) 533-5192 or (719) 348-5364

or contact us electronically by sending e-mail messages to: fnbs@mindspring.com

Or write:

First National Bank of Stratton
Attn: Internet Member Service
PO Box 286
Stratton, CO 80836

5. Business Days. Our business days are Monday through Friday. Holidays are not included.

6. Fees and Charges. There are certain charges for internet banking services as set forth below. From time to time, the charges may be changed. We will notify you of any changes as required by law.

The internet Banking service fee is free to members.
FNB Bill Pay Service Fee. There is a monthly service fee for the FNB Bill Pay Service. Please contact your financial institution for current rates and information. You agree to have the monthly service fee deducted from your account every month for the previous month's billing cycle (ex: On October 5th the service fee would be withdrawn from your account for the September 1st through September 30th billing cycle).

7. Transaction Documentation. Transfers and withdrawals transacted through Internet Banking will be recorded on your monthly/quarterly periodic statements that you will receive by mail.

8. Account Information Disclosure. We will maintain the confidentiality and privacy of your account information in accordance with our privacy policy as stated on our website at the First National Banks website. However, the bank will disclose information to third parties about your account or the transfers you make in the following limited circumstances:

As necessary to complete transfers;
To verify the existence of sufficient funds to cover specific transactions upon the request of a third party, such as a credit bureau or merchant;
To comply with government agency or court orders;
If you give us your express permission.

9. Limitation of Liability for Internet Banking Services. If we do not complete a transfer to or from your account on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages. Our sole responsibility for an error in a transfer will be to correct the error. You agree that neither we nor the service providers shall be responsible for any loss, property damage or bodily injury, whether caused by the equipment, software, the First National Bank, or by Internet browser providers such as Netscape (Netscape Navigator browser) and Microsoft (Microsoft Internet Explorer browser), or by Internet access providers or by Internet service providers or by an agent or subcontractor of any of the foregoing. Nor shall we or the service providers be responsible for any direct, indirect, special or consequential economic or other damages arising in any way out of the installation, download, use, or maintenance of the equipment, software, Internet Banking services, FNB Bill Pay services, or Internet browser or access software. In this regard, although we have taken measures to provide security for communications from you to us via the Internet Banking and FNB Bill Pay Services and may have referred to such communication as "secured," we cannot and do not provide any warranty or guarantee of such security. In states that do not allow the exclusion or limitation of such damages, our liability is limited to the extent permitted by applicable law. The First National Bank will not be liable for the following:

If, through no fault of ours, you do not have enough money in your account to make the transfer, your account is inactive, or the transfer would go over the credit limit on your line of credit, if applicable.
If you used the wrong access code or you have not properly followed any applicable computer, or First National Bank user instructions for making transfer and FNB bill payment transactions
If your computer fails or malfunctions or the phone lines or the First National Banks computer system was not properly working and such problems should have been apparent when you attempted such a transaction.
If circumstances beyond your control (such as fire, flood, telecommunication outages or strikes, equipment or power failure) prevent making the transaction.
If the funds in your account are subject to an administrative hold, legal process or other claim.
If you have not given the First National Bank complete, correct and current instructions so the bank can process a transfer.
If, through no fault of ours, a FNB bill payment or funds transfer transaction does not reach a particular payee due to changes in the payee address, account number or otherwise; the time you allow for payment delivery was inaccurate; or the payee failed to process a payment correctly, or in a timely manner, and a fee, penalty, or interest is assessed against you.
If the error was caused by a system beyond the First National Banks control such as a telecommunications system, an Internet service provider, any computer virus or problems related to software not provided by the First National Bank.
If there are other exceptions as established by the First National Bank.

10. Termination of Internet Banking Services. You agree that we may terminate this Agreement and your Internet Banking services, if you, or any authorized user of your Internet Banking services or access code breach this or any other agreement with us; or if we have reason to believe that there has been an unauthorized use of your accounts or access code or if you conduct or attempt to conduct any fraudulent, illegal or unlawful transaction, or if we reasonably believe your account conduct poses an undue risk of illegality or unlawfulness. In addition, we reserve the right to terminate the service if you fail to use the service for more than 90 consecutive calendar days and there will be a $6.00 reconnection fee for Internet Banking services that have been previously terminated.

You or any other party to your account can terminate this Agreement by notifying us in writing. Termination of service will be effective the first business day following receipt of your written notice. Termination of this Agreement will not affect the rights and responsibilities of the parties under this Agreement for transactions initiated before termination.

11. Notices. The First National Bank reserves the right to change the terms and conditions upon which this service is offered. The First National Bank will notify you at least twenty-one (21) days before the effective date of any change, as required by law. This means we will mail you notice or if you have consented to electronic disclosures, we will send it to the e-mail address you have designated. Use of this service is subject to existing regulations governing the First National Banks account and any future changes to those regulations.

12. Statement Errors. In case of errors or questions about your Internet Banking transactions, contact us by: telephone at the phone numbers; send us an e-mail; or write us at the address set forth in Section 4, as soon as you can. We must hear from you no later than sixty (60) days after we sent the first statement on which the problem appears.

Tell us your name and account number.
Describe the transaction you are unsure about, and explain as clearly as you can 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) business days.

We will tell you the results of our investigation within ten (10) business days after we hear from you and will correct the error promptly. For errors related to transactions occurring within thirty (30) days after the first deposit to the account (new accounts), we will tell you the results of our investigation within twenty (20) business days. If we need more time, however, we may take up to forty-five (45) calendar days to investigate your complaint or question (ninety (90) calendar days for new account transaction errors, or errors involving transactions initiated outside the United States). If we decide to do this, we will re-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 re-credit your account.

If we decide after our investigation that an error did not occur, we will deliver or mail to you an explanation of our findings within three (3) business days after the conclusion of our investigation. If you request, we will provide you copies of documents (to the extent possible without violating other members' rights to privacy) relied upon to conclude that the error did not occur.

13. Other General Terms.

Other Agreements. In addition to this Agreement, you agree to be bound by and will comply with all terms and conditions applicable to your relationship with the First National Bank, as described in your First National Bank Account Agreement, prior receipt of which you acknowledge.
Severability. In the event that any portion of this Agreement is held by a court to be invalid or unenforceable for any reason, the remainder of this Agreement shall not be invalid or unenforceable and will continue in full force and effect. All headings are intended for reference only and are not to be construed as part of the Agreement.

14. Enforcement. You agree to be liable to the First National Bank for any liability, loss, or expense as provided in this Agreement that the First National Bank incurs as a result of any dispute involving your accounts or services. You authorize the First National Bank to deduct any such liability, loss, or expense from your account without prior notice to you. This Agreement shall be governed by and construed under the laws of the state of Colorado as applied to contracts entered into solely between residents of, and to be performed entirely in, such state. In the event either party brings a legal action to enforce the Agreement or collect any overdrawn funds on accounts accessed under this Agreement, the prevailing party shall be entitled, subject to Colorado law, to payment by the other party of its reasonable attorney's fees and costs, including fees on any appeal, bankruptcy proceedings, and any post-judgment collection actions, if applicable. Should any one or more provisions of this Agreement be determined illegal or unenforceable in any relevant jurisdiction, then such provision shall be modified by the proper court, if possible, but only to the extent necessary to make the provision enforceable and such modification shall not affect any other provision of this Agreement

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I understand that by submitting an e-mail to fnbs@mindspring.com and requesting a copy of the Internet Banking and FNB Bill Pay Agreement, I can request that a paper copy of the Internet Banking & FNB Bill Pay Agreement and Disclosures be mailed to me.