Internet Banking Agreement & Disclosure

Introduction
This Internet Banking Agreement and Disclosure governs your use of Internet Banking. Throughout this web site the Agreement and Disclosure will be referred to as "Agreement". By using Internet Banking, you agree to all of the terms of this Agreement. Please read it carefully and keep a copy for your records.

Definitions
You or Your - The person(s) subscribing to or using Internet Banking.

We, Us, or Our - Refers to Farmers Deposit Bank and any agent, independent contractor, designee, or assignee Farmers Deposit Bank may involve in the provision of Internet Banking.

Business Day - Any calendar day other than Saturday, Sunday, or any holidays recognized by Farmers Deposit Bank. Bill payments are processed on all business days that both the Federal Reserve Bank and the US Postal System are operating and open for business.

Business Day Cut-Off- Farmers Deposit Bank primary banking offices are located in Eminence, Ky and base our business day on the Eastern Time zone. For posting purposes, the bank will process all transactions completed by 4:30PM on that business date. Transactions completed after 4:30PM, including transfers, will be processed on the following business day.

Privacy Statement – Farmers Deposit Bank understands how important privacy is to our customers. We have taken steps to insure your security and privacy for your personal and financial dealings with the bank. Our customer privacy statement can be obtained by clicking on the following link – Privacy Statement.

About Internet Banking
Farmers Deposit Bank’s Internet Banking consists of an online banking web site that provides a complete array of financial services to its customers. Farmers Deposit Bank allows customers to access their data with up to 2 months of full statements and complete transaction detail.

The Internet Banking system that is accessible by Farmers Deposit Bank’s customers over the Internet currently consists of:

• Account Inquiries, balances, rates, etc.
• Secure Applications
• Up to 2Months of Historical Transactions
• View Detailed Transactions
• Transaction Downloads
• Account transfers
• Payments to our loan accounts
  

For customers who select Bill Payment, these additional functions are available:

• One-time Payments
• Fixed Recurring Payments
• Occasional Payments
• Variable Recurring Payments
  

Log-On Security
Security is very important to the Internet Banking system. At the time you request the service, you will select a unique "Access ID" and then choose a "passcode" that will be used to gain access to the system. Prior to activation, the Internet Banking department will verify your identity and authorization to information associated with the accounts that you requested tied to the service.

To help prevent unauthorized access and ensure the security of your accounts, we will end your online session if we have detected no activity for 15 minutes. This is to protect you in case you accidentally leave your computer unattended after you logged on. When you return to your computer, you will be prompted to re-enter your passcode and your session will continue where you left off.

Because your passcode is used to access your accounts, you should treat it as you would any other sensitive personal data. You should carefully select a passcode that is hard to guess. (The "passcode cracker will encourage you to stay away from names, dates, and information that may easily be guessed). Keep your passcode safe. Memorize your passcode and never tell it to anyone. You may consider changing your passcode occasionally, such as every 90 days. This can be done at any time after you logged on from the "change password" menu item.

Accounts
You may request to access any account that you are a signer or owner. If you desire services that allow you to initiate payments or transfers from the account, you will need the required withdrawal authority over the account to be able to complete the transaction. By using the service, you agree to maintain one or more accounts with us and to keep sufficient balances in any account to cover any transaction and fees that are ultimately approved by or related to the system. If the accounts added to the service are jointly held or have multiple signers, you agree that access to the information and all transactions initiated by the use of your Access Code and Passcode are authorized unless we have been notified to cancel the service.

Cancellation of Internet Banking
Your Internet Banking may be canceled at any time by Farmers Deposit Bank in whole or part without prior notice due to insufficient funds in one of your accounts or other circumstances that may create an unanticipated liability to us. You will remain responsible for all transactions approved by the system prior to the cancellation, and for any other fees associated with the service. After cancellation, service may be reinstated once sufficient funds are available in your accounts to cover any fees and other pending transfers or debits. In order to reinstate services, you must call Internet Banking Service Support listed below in the Errors and Questions section.

Balance Inquiries, Bill Payments and Transfers Limitations
You may use Internet Banking to check the balance of your accounts and to transfer funds among your accounts. According to Federal regulations, you may not make more than six (6) pre-authorized or automatic transfers or bill payments from your Money Market Deposit Account or Savings Account during a given monthly statement period. There are no limits to the number of transfers or bill payments from your Checking Accounts. Farmers Deposit Bank currently limits the bill-payment service to only Checking Accounts.

Balances shown in your accounts may include deposits subject to verification by us. The balance may also differ from your records due to deposits in progress, outstanding checks or other withdrawals, payments or charges. A transfer request may not result in immediate availability because of the time required to process the request. If you have further questions, contact your Internet Banking Coordinator.

The balances are updated periodically and the system will display the most current "as of" date on the "accounts" summary page. There may be situations that cause a delay in an update of your balances. The system will use the most current balance available at the time of a transaction to base our approval.

Bill Payment Service
It is easy to pay bills online. Simply set up your Payees by choosing from the database of vendors (Payees) that already exist, or by entering necessary information to schedule a payment. We are able to process payments to payees that have a US Postal address. We maintain a large vendor database of regional or national billers to make this process quicker and easier. The Bill Payment service will also allow you to see a history of all the payments made from your accounts.

The daily limit for the total dollars of payments approved is governed by the system’s available balance in the checking account selected for making the payment. You can withdraw up to the system’s available balance as long as your account shows sufficient funds to cover your payments. The payment will normally be charged to your account on the business date that it is approved.

At the current time we are not charging a fee for Internet Banking or bill payment online.

Although payments may be scheduled for the current business day or any date in the future at any time, they will only be processed once a day at our cut-off time, usually around 2:00PM EST on any business day. (If you attempt to schedule a payment for that day after 2:00PM, the system will notify you that you need to change the date to the next business day.) Anything scheduled on a non-business day, or after the cut-off time, will not be sent out until the following business day. Since we must forward the funds and billing information to the payee, some lead-time for payments is necessary. In general, the system will attempt to tell you when you can expect the payment to be received by the payee. The estimated payment arrival date is typically shown on the check where you schedule the payment date below the amount line. (Our system assumes the payee/vendor will promptly process the payment on the business day it is received. Any delays caused by the payee/vendor would result in additional days before the payment would show on their records.) By using this service, you authorize us, and any third-party payment processing agent we may use, to choose whatever method we feel is the most effective method to process your transaction.

The time frames generally will be determined by the way the payment is sent to the payee. If we have to send a paper check in the US Postal system, we typically suggest sufficient time as five (5) business days prior to the payee receiving the payment for processing at their address. If the payee accepts the payment electronically, we generally define sufficient time as two (2) business days prior to the payee receiving the payment. In all cases, the payment will be delivered to the payee/vendor by the tenth business day after the payment was approved and charged to your account.

Our Liability for Incomplete Transactions
It is our responsibility to process all bill payments properly initiated through the Internet Banking system in accordance with this Agreement. We will be liable for damages, as defined in this Agreement, where the system caused a payment delay or failed to process a payment to be received by the payee/vendor by the tenth business day following the date your account was charged for the payment. Transfers will be processed within two business days of the completed transfer transaction. We will not be liable if any of the following occurs:

1. Funds are not showing on the system’s available balance in your account that is to pay for the bill or transfer at the time of transaction.
2. Funds are subject to legal process or other encumbrances restricting the payment or transfer.
3. You had knowledge of or questions about the possible malfunction of the system when you initiated the transaction.
4. Any information provided by you about the Payee is incorrect.
5. There are any delays in the handling of the payment by the Payees.
6. Natural disasters (fire, flood, tornado, etc.) or other uncontrollable circumstances (mail delays, power failures, etc.) prevent proper completion and delivery of transactions.
7. Other applicable laws and/or regulations exempt us from liability.
8. It can be shown that the merchant or payee received the payment within the normal delivery timeframe and failed to process the payment through no fault of Internet Banking or our service providers.
9. It can be shown that the delay was caused by unusual mailing delays by the US Post Office.

Payment Guarantee
We will reimburse you up to $50 per payment for any late payment fees or penalties you are charged as a result of the Payee/Vendor not receiving a payment by the Due Date if all the following apply:

1. You scheduled the payment before the cut-off time on a transaction date at least ten (10) business days prior to the Due Date.
2. Correct information was provided to us about the Payee (name, address, account number, and amount).
3. Your account contained sufficient available funds to complete the payment or transaction on the transaction date.
4. The Payee was a Business Payee that charges late charges or penalties.
5. Late payment fees or penalties were assessed by the Payee due to the delay of this payment.
6. You received no prior notice from the Payee/Vendor that there was a problem with processing payments from our system.
7. You received no notice within the ten business day period that would have allowed you to alert our Internet Banking department of a problem where we could have taken corrective action to remedy the situation prior to the tenth day.

Notice of Your Rights and Liabilities
Notify us immediately if your Access ID and Passcode have been compromised, lost, stolen or used without your authorization. Failure to notify us immediately could result in the loss of all money accessible by the passcode. Telephoning us at the number listed below in the Errors and Questions section is the best way of limiting your possible loss. You could lose all the money in your account (plus your maximum overdraft line of credit, if you have one).

If we are notified within two (2) business days after you discover that your Access ID and Passcode has been compromised, lost or stolen, you can lose no more than $50 if someone used it without your permission. If you do not notify us within two (2) business days, and we can prove we could have prevented someone from using the Access ID and Passcode without your permission, you could lose as much as $500.

If your statement shows unauthorized transfers, notify us within 60 days after the statement is mailed to you or viewed on your computer. After 60 days, if we can prove that we could have stopped someone from taking the money if we had been told, you may not get back any money from us. If a good reason, (such as a long trip or hospital stay) kept you from telling us, we may extend the time periods to a reasonable time.

Errors and Questions
In cases of errors or questions concerning transactions completed with Internet Banking, do one of the following, as soon as possible:

1. Telephone Internet Banking Service Support at (502) 845-5639 or
2. Write to Customer Service at PO Box 126, Eminence, Ky 40019; or
3. Initiate a payment inquiry on your PC through e-mail to customerservice@farmersdepositbank.com

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

1. Name
2. Account Number and your Access ID
3. Description of the error or what you are unsure about, plus an explanation of why you believe it is an error or why you need more information.
4. Tell us the amount of the error.
5. For a Bill Payer error tell us:

• Checking account number used to pay the bill
• Payee name
• Date the payment sent
• Confirmation number
• Payment amount
• Payee account number for the payment in question.

We will tell you the results of our investigation within ten (10) business days after we hear from you (20 business days if the transaction involved a new account). If we need more time we may take up to 45 business days to investigate (90 business days if the transaction involved a new account). If we choose to take up to 45 business days, we will give you a provisional credit to your account within ten (10) business days (20 business days if the transaction involved a new account). Your account is considered a new account for the first 30 days after the first deposit is made, unless each of you already has an established account with us before this account is opened. If we decide there was no error, we will furnish you with a written explanation within three (3) business days after the investigation is complete.

Disclosure of Account Information to Third Parties
Information to third parties about your account(s) or the transaction(s) you make will only be disclosed if at least one of the following applies:

1. It is necessary to complete a transaction.
2. To verify the existence and condition of your account to a third party such as a credit bureau or merchant.
3. To comply with a governmental agency or court order.
4. If permission is given to us by you, which we may require to be in writing.
5. To collect information for internal use, the use of our service providers, and our servicing agents and contractors concerning our electronic funds transfer service.
6. It involves a claim by or against us concerning a deposit to or withdrawal from your account.
7. Where otherwise required or permitted under state or federal laws and/or regulations.

No Signature Requirements
When any payment or other on-line service generates items to be charged to your account, you agree that we may debit the designated account, or the account on which the item is drawn, without requiring your signature on the item and without any notice to you.

Virus Protection
Farmers Deposit Bank is not responsible for any electronic virus or viruses that you may encounter. We encourage our customers to routinely scan their PC and diskettes using a reliable virus product to detect and remove any viruses. Undetected or unrepaired viruses may corrupt and destroy your programs, files and even your hardware. Additionally, you may unintentionally transmit the virus to other computers.

Termination
You may terminate the use of Internet Banking by contacting Farmers Deposit Bank in writing by mail, e-mail, or personal delivery Farmers Deposit Bank. If your account is closed or restricted for any reason, Internet Banking accessibility will automatically terminate.

Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of Kentucky.

Assignment
This agreement may not be assigned to any other party by you. We may assign or delegate, in part or whole, to any third party.

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

Entire Agreement
This Agreement supplements any other agreements or disclosures related to your account(s), including the Deposit Account Agreement and Disclosures. If there is a conflict between this Agreement and any others, or any statements made by employees or agents, this agreement shall supersede.