DISCLOSURE STATMENTS

Online Internet Banking Disclosure | Electronic Funds Disclosure | Funds Availability

Online Internet Banking Disclosure

1. The Service

In consideration of the Online Banking services ("Services") to be provided by Franklin State Bank ("BANK"), as described from time to time in information distributed by BANK to its customers. In the agreement, "Customer" refers to the person(s) subscribing to or using the Service. The Customer agrees as follows: You may use a Personal Computer ("PC") or web based phone through an Internet connection to obtain account balances and transaction information. You may also use your PC or web based phone to obtain statements on your accounts and to transfer money between your accounts. However, transfers from your savings accounts are considered pre-authorized transfers, and pre-authorized transfers are limited to six (6) per monthly statement cycle by federal regulations. By subscribing to the Service or using the Service to make any payments to a third party, you agree to the terms of the Agreement.

PLEASE READ THIS AGREEMENT CAREFULLY AND KEEP A COPY FOR YOUR RECORDS.

2. Your Username and Password

Each individual who has access to Online Banking, including each individual named on joint accounts, must designate an Username and Password. Your Username must be a minimum of 6 to a maximum of 17 and can be any characters. Your Password must be a minimum of 8 to a maximum of 17 and must consist of at least one (1) alpha , one (1) numeric , and one (1) special character. The letters are case sensitive. For example, if you enter your password as: 1234abc@ you cannot use 1234ABC@. You will be prompted to change your password periodically to enhance security. Your Username and password are sensitive personal data. You should select an Username and password that are hard to guess. They should not be based on your name, address or other personal information.

3. Delivery of Your Transfers

You may schedule transfers between your Franklin State Bank accounts to be initiated on the current business day, on a future date, or on the same date of each month, subject to the restrictions in the Agreement. Although you can enter transfer information through the Service twenty-four (24) hours a day, seven (7) days a week, transfers can be initiated only on business days. Funds will be deducted from your Account on the business day on which a transfer is to be "initiated." This date is referred to in this Agreement as the "Transaction Date." If you direct the initiation of a transfer to occur on a day other than a business day, it will be initiated on the following business day.

4. Recurring Transfers

Recurring transfers are those made for the same amount and are made on a weekly, bi-monthly, monthly basis, etc. Once started, recurring transfers will be made automatically until you tell us to stop or cancel the transfer on-line and we have a reasonable opportunity to react.

5. Our Liability for Failure to Complete Transactions.

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 might be liable for some of 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 money in your account is subject to legal process or other encumbrances restricting transfer;
  3. if the transfer would go over the credit limit on your overdraft line (if any);
  4. if the system was not working properly when you started the transfer;
  5. if circumstances beyond our control (such as fire or flood or systems failure) prevent the transfer, despite reasonable precautions that we have taken.

6. Statements

All payments, transfers, and/or fees made with the Service will appear on your monthly Account statement. The Payee name, payment amount, and date of the payment will be shown for each payment made through the Service during that month.

7. Fees

Fees for Services shall be payable in accordance with a schedule of charges as established and amended by BANK from time to time. Charges shall be automatically deducted from customer's Account, and BANK shall provide to Customer monthly notice of such debit(s) on your statement.

8. Equipment

You are solely responsible for the equipment (including your personal computer and software) you use to access the Services. We are not responsible for errors or delays or your inability to access the Services caused by your equipment. We are not responsible for the cost of upgrading your equipment to stay current with the Services nor are we responsible, under any circumstances, for any damage to your equipment or the data resident thereon.

9. Business Days/Hours of Operation

Our business hours are 9 a.m. to 4:30 p.m. (CST), Monday through Thursday and 9 a.m. to 5:00 p.m. on Friday, except bank holidays. Although payments and transfers can be completed only on business days, the Service is available 24 hours a day, seven days a week, except during maintenance periods.

10. eStatements

If you have elected to receive your statements electronically and at a later date would like to begin receiving a paper statement, please notify us in writing at Franklin State Bank, P O Box 125, Franklin, NE 68939 or call 308-425-6225. If you have an e-mail or mailing address change, please notify us in writing at Franklin State Bank, P O Box 125, Franklin, NE 68939 or call 308-425-6225.

11. Notice of Your Rights and Liabilities

Security of your transactions is important to us. Use of the Services may therefore require a PIN or password. If you lose or forget you PIN or password, please call 308-425-6228 during normal business hours listed above. We may accept as authentic any instructions given to us through the use of your password or PIN. You agree to keep your PIN and password secret and to notify us immediately if your PIN or password is lost or stolen or if you believe someone else has discovered your PIN or password. You agree that if you give your PIN or password to someone else, you are authorizing them to act on your behalf, and we may accept any instructions they give us to make transfers or otherwise use the Services. Online Banking Services enables you to change your password; we recommend that you do so regularly. We may be liable for certain security breaches to the extent required by applicable law and regulation. We do not assume any other liability or otherwise guarantee the security of information in transit to or from our facilities. Please note that we reserve the right to (1) monitor and/or record all communications and activity related to the Services; and (2) require verification of all requested transfers in the manner we deem appropriate before making the transfer (which may include written verification by you. You agree that our records will be final and conclusive as to all questions concerning whether or not your PIN or password was used in connection with a particular transaction.

If any unauthorized use of your PIN or password occurs you agree to (1) cooperate with us and appropriate law enforcement authorities in identifying and prosecuting the perpetrator; and (2) provide reasonable assistance requested by us in recovering any unauthorized transfer of funds.

Tell us AT ONCE if you believe your PIN or password has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account (plus your maximum line of credit). If you tell us within two (2) business days, you can lose no more than $50. If you do NOT tell us within two (2) business days after you learn of the loss or theft of your PIN or password, and we can prove we could have stopped someone from using your PIN or password without your permission if you had told us, you could lose as much as $500. Also, if your statement shows 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 not get back any money you lost after the 60 days if we can prove that we could have prevented someone from taking the money if you had told us in time. If you believe your PIN or password has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, call 308-425-6225 during normal business hours listed above. WE CANNOT ACCEPT NOTIFICATION OF LOST OR STOLEN PINS OR PASSWORDS OR UNAUTHORIZED TRANSFERS VIA E-MAIL.

12. Errors and Questions

In case of errors or questions about your electronic transactions, telephone us at 308-425-6228, 9 a.m.-4:30 p.m. (CST), Monday through Thursday, 9 a.m.-5:00 p.m., Friday, or write us at:

FRANKLIN STATE BANK
Attention: Electronic Banking Department
P O Box 125
Franklin NE 68939

As soon as you can, if you think your statement or receipt is wrong or if you need more information about a transaction listed on the statement or receipt. We must hear from you no later than sixty (60) days after we sent you the FIRST statement on which the problem or error appeared. You will need to:

  1. tell us your name and Account number (if any);
  2. describe the error or 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; and
  3. tell us the dollar amount of the suspected error.

If you tell us verbally, we may require you to send us your complaint or question in writing within ten (10) business days following the date you notified us. We will determine whether an error occurred within ten (10) business days (twenty (20) business days if the notice of error involves an electronic fund transfer to or from the account within thirty (30) days after the first deposit to the account was made) after we hear from you and will correct any error promptly. If we need more time, however, we may take up to forty-five (45) days to investigate your complaint or question. If we decide to do this, we will credit your account within ten (10) business days (twenty (20) business days if the notice of error involves an electronic fund transfer to or from the account within thirty (30) days after the first deposit to the account was made) for the amount you think is in error, so that you will have 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 credit your account.

If we determine there was no error, we will reverse the previously credited amount, if any, and we will send you a written explanation within three (3) business days after we finish our investigation. You may ask for copies of the documents we used in our investigation.

13. Disclosure of Account Information to Third Parties

We may disclose information to third parties about your account or the transactions you make:

  1. where it is necessary for completing transactions or resolving errors involving the Services; or
  2. in order to verify the existence and condition of your account for a third party, such as a credit bureau or a merchant; or
  3. in order to comply with government agency rules, court orders, or other applicable law; or
  4. to our employees, service providers, auditors, collection agents, affiliated companies, or attorneys in the course of their duties and to the extent allowed by law; or
  5. if you give us your permission.

14. Termination

We reserve the right to terminate the Services, in whole or in part, at anytime with or without cause and without prior written notice. In that event, or in the event that you give us a termination notice, we may (but are not obligated to) immediately discontinue making previously authorized transfers, including recurring transfers and other transfers that were previously authorized but not yet made. We also reserve the right to temporarily suspend the Services in situations deemed appropriate by us, in our sole and absolute discretion, including when we believe a breach of system security has occurred or is being attempted. We may consider repeated incorrect attempts to enter your PIN or password as an indication of an attempted security breach. Termination of the Services does not affect your obligations under this Agreement with respect to occurrences before termination.

15. Limitation of Liability

Except as otherwise provided in this Agreement or by law, we are not responsible for any loss, injury, or damage, whether direct, indirect, special or consequential, caused by the Service or the use thereof or arising in any way out of the installation, operation, or maintenance of your PC equipment.

16. Waivers

No waiver of the terms of this Agreement will be effective, unless in writing and signed by an authorized officer of the BANK.

17. Assignment

You may not transfer or assign your rights or duties under this Agreement.

18. Governing Law

The laws of the State of Nebraska shall govern this Agreement and all transactions hereunder. Customer acknowledges that he/she has reviewed this Customer Agreement, understands the terms and conditions set forth herein, and agrees to be bound hereby.

19. Amendments

We can change a term or condition of this Agreement by mailing or delivering to you a written notice at least thirty (30) days before the effective date of any such change. We do not need to provide you with any prior notice where an immediate change in the terms or conditions of this Agreement is necessary to maintain or restore the security of our system or an account. However, even in these cases, if the change is to be permanent, we will provide you with a notice of the change with the next regularly scheduled periodic statement we send you, or within thirty (30) days, unless disclosure would jeopardize the security of our system or an account. Notices mailed or delivered to you under this paragraph will be considered effective if mailed to the most recent address we show for you in either our Checking or Savings Account records, or e-mail address in which you agreed to receive such notices and/or disclosures.

20. Indemnification

Customer, in consideration of being allowed access to the Services, agrees to indemnify and hold the BANK harmless for any losses or damages to the BANK resulting from the use of the Services, to the extent allowed by applicable law.

21. Security Procedures

By accessing the Services, you hereby acknowledge that you will be entering a protected web site owned by the BANK, which may be used only for authorized purposes. The BANK may monitor and audit usage of the System, and all persons are hereby notified that use of the Services constitutes consent to such monitoring and auditing. Unauthorized attempts to up-load information and/or change information on these web sites are strictly prohibited and are subject to prosecution under the Computer Fraud and Abuse Act of 1986. Franklin State Bank will use an added layer of security including an image and pass phrase.

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Electronic Funds Transfer Disclosure

ELECTRONIC FUND TRANSFER YOUR RIGHTS AND RESPONSIBILITIES

The Electronic Fund Transfers we are capable of handling are indicated below, some of which may not apply to your account. Please read this disclosure carefully because it tells you your rights and obligations for these transactions. You should keep this notice for future reference.

CARD as used in this disclosure shall refer to an ATM card, VISA check card, or any other card issued by the Franklin State Bank.
Electronic device as used in the disclosure shall refer to an automatic teller machine, Point-of-Sale machine, or any other electronic access device.
Direct Deposits -- You may make arrangements for certain direct deposits to be accepted into your Checking or Savings accounts.
Pre-authorized Withdrawals -- You may make arrangements to pay certain recurring bills from your Checking or Savings accounts.
Electronic Transfers -- type of transfers - You may access your account(s) through electronic devices by using your card and personal identification number to:

  • make deposits to checking or savings account(s) with your card
  • get cash withdrawals from checking or savings account(s) with your card (there is a charge per withdrawal at ATMs
    (See fees in this disclosure)
  • transfer funds from savings to checking account(s)
  • transfer funds from checking to savings account(s)
  • get information about:
    the account balance of your checking or savings
    accounts (there is a charge of $1.00 per inquiry)

Some of these services may not be available at all terminals. You may access your Checking account(s) to:

  • purchase goods (in person)
  • pay for services (in person)
  • get cash from a merchant, if the merchant permits or from a participating financial institution.

Please also see Limitations on Frequency of Transfers section regarding limitations that apply to electronic device transfers.

Limitation of Frequency of Transfers - in addition to those limitation on transfers elsewhere described, if any, the following limitations apply:

  • Withdrawals or other transfers from a savings account to another account or to third parties by automatic or telephone transfers are limited to 6 per month.
  • We do not disclose the maximum amount of electronic transactions permitted each day for security reasons. This amount may vary by customer.

Electronic Fund Transfers Initiated by Third Parties: You may authorize a third party to initiate electronic fund transfers between your account and the third party's account. These transfers to make or receive payment may be one-time occurrences or may recur as directed by you. These transfers may use the Automated Clearinghouse (ACH) or other payments network. Your authorization to the third party to make these transfers can occur in a number of ways. In some cases, your authorization can occur when the merchant posts a sign informing you of their policy. In all cases, the transaction will require you to provide the third party with your account number and bank information. This information can be found on your check as well as on a deposit or withdrawal slip. Thus, you should only provide your bank and account information (whether over the phone, internet, or via some other method) to trusted third parties whom you have authorized to initiate these electronic fund transfers. Examples of these transfers include, but are not limited to:

  • Electronic Check Conversion - you may provide your check to a merchant or service provider who will scan the check for the encoded bank and account information. The merchant or service provider will then use the information to convert the transaction into an electronic fund transfer. This may occur at the point of purchase, or when you provide your check by other means such as by mail or drop box.

Electronic Returned Check Charge - Some merchants or service providers will initiate an electronic fund transfer to collect a charge the event a check is returned for insufficient funds.

CHARGES FOR ELECTRONIC FUND TRANSFERS

  • We do not charge for direct deposits to any type of account.
  • We do not charge for pre-authorized transfers from any type of account.

Except as indicated elsewhere, we do not charge for electronic fund transfers.

RIGHT TO DOCUMENTATION

~Terminal Transfers. You can get a receipt at the time you make any transfer to or from your account using one of our electronic devices in amounts greater than $15.00.

~Direct Deposits. 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 (308) 425-6225 to find out whether or not the deposit has been made. If the only possible transfers to or from your account are direct deposits, you will get a monthly account statement from us.

~Periodic Statements. You will get monthly account statements from us except in the following circumstances: You will get a monthly statement for your Savings accounts unless there are no transfers in a particular month. In any case you will get the statement annually.

STOP PAYMENT PROCEDURES AND NOTICE OF VARYING AMOUNTS

~Right to Stop Payment and Procedure for Doing So

If you have told us in advance to make regular payment out of your account, you can stop any of these payments. Here is how: Call or write us at the telephone number or address listed in this brochure 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 may also require you to put your request in writing and get it to us within 14 days after you call. We will charge you $25.00 for each stop payment order you give.

~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 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.)

~Liability for Failure to Stop Payment of Pre-authorized 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.

OUR LIABILITY

Liability for Failure to Make Transfers. 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. 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 automated teller machine where you are making the transfer does not have enough cash.
  3. If the terminal or system was not working properly and you knew about the breakdown when you started the transfer.
  4. If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions we have taken.
  5. There may be other exceptions stated in our agreement with you.

DISCLOSURE OF ACCOUNT INFORMATION TO THIRD PARTIES

We will disclose information to third parties about your account or the transfer you make:

  1. Where it is necessary for completing transfers;
  2. In order to comply with government agency or court orders; or
  3. If you give us written permission.

UNAUTHORIZED TRANSFERS

Tell us AT ONCE if you believe your card and/or code has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You could lose all of the money in your account (plus your maximum overdraft line of credit). If you tell us within two business days, you can lose no more than $50.00 if someone used your card without your permission. For Visa Check Debit Card, your liability will be $0.00.

If you do not tell us within 2 business days after you learn of the loss or theft of your card and/or code, and we can prove we could have stopped someone from using your card and/or code without your permission if you had told us, you can lose as much as $500.00.

Also, if your statement shows transfers that you did not make, 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 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 hospital stay) kept you from telling us, we will extend the time period.

If you believe your card and/or code has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, call or write us at the telephone number or address listed in this brochure.

ERROR RESOLUTION

In case of errors or questions about your electronic transfers, call or write us at the telephone number or address listed in this brochure, 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,

  1. Tell us your name and account number (if any).
  2. Describe the error on 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, 5 days if Visa /Point of Sale.

We will tell you the results of our investigation within 10 business days (5 days if involving Visa/Point of Sale) 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 re-credit your account within 10 business days (5 days if involving Visa/Point of Sale) 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. For errors involving point-of-sale debit card transactions, or foreign initiated transactions, the time period is 90 days instead of 45 days. If we ask you to put your complaint or questions in writing and we do not receive it within 10 business days, we may not re-credit your account.

We will send you a written explanation within three business days after we finish our investigation. You may ask for copies of the documents that we used in our investigation.

FRANKLIN STATE BANK
P O BOX 125
FRANKLIN, NE 68939-0125
Phone: 308-425-6225
Business Hours:
Monday-Thursday 9:00 am to 4:30 pm
Friday 9:00 am to 5:00 pm
Saturday 9:00 am to 12:00 pm
Excluding Holidays

ATM/VISA CHECK DEBIT FEES
Withdrawals $2.00
Denials $2.00
Balance Inquiry $1.00
Balance Transfer $1.00
Deposit No Fee
ATM Point-of-Sale No Fee
VISA Check Debit International Service Charge 2% of transaction amount

If you use an automated teller machine that is not operated by us, you may be charged a fee by the operator of the machine and/or by an automated transfer network.

DISCLOSURES REGARDING ELECTRONIC "WHOLESALE CREDIT" TRANSACTIONS
Subject to Uniform Commercial Code Article 4A

Provisional Payment:
Credit given by us to you with respect to an automated clearing house credit entry is provisional until we receive final settlement for such entry through a Federal Reserve Bank. If we do not receive such final settlement, you are hereby notified and agree that we are entitled to a refund of the amount credited to you in connection with such entry, and the party making payment to you via such entry (I.e. the originator of the entry) shall not be deemed to have paid you in the amount of such entry.

Notice of Receipt of Entry:
Under the operating rules of the National Automated Clearing House Association, which are applicable to ACH transactions involving your account, we are not required to give next day notice to you of receipt of an ACH item and we will not do so. However, we will continue to notify you of the receipt of payments in the periodic statements we provide to you.

Choice of Law:
We may accept on your behalf payments to your account which have been transmitted through one or more Automated Clearing Houses ("ACH") and which are not subject to the Electronic Fund Transfer Act and your rights and obligations with respect to such payments shall be construed in accordance with and governed by the laws of the state of Nebraska, unless it has been otherwise specified in a separate agreement that the law of some other state shall govern.

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FUNDS AVAILABILITY

Your Ability to Withdraw Funds

This policy statement applies to "transaction" accounts. Transaction accounts, in general, are accounts which permit an unlimited number of payments to third persons and an unlimited number of telephone and pre-authorized transfers to other accounts of yours with us. Checking accounts are the most common transaction accounts. Feel free to ask us whether any of your other accounts might also be under this policy.

Our policy is to make funds from your deposits available immediately. At that time, you can withdraw the funds in cash and we will use the funds to pay checks that you have written.

Please remember that even after we have made funds available to you, and you have withdrawn the funds, you are still responsible for checks you deposit that are returned to us unpaid and for any other problems involving your deposit.

For determining the availability of your deposits, every day is a business day, except Saturdays, Sundays, and federal holidays. If you make a deposit before 2:00 p.m. on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit after 2:00 p.m. or on a day we are not open, we will consider that the deposit was made on the next business day we are open.

SOME DELAYS MAY APPLY

In some cases, we will not make all of the funds that you deposit by check available to you immediately. Depending on the type of check that you deposit, funds may not be available until the 2nd business day after the day of your deposit. However, the first $200 of your deposits will be available immediately.

If we are not going to make all of the funds from your deposit available immediately, we will notify you at the time you make your deposit. We will also tell you when the funds will be available. If your deposit is not made directly to one of our employees, or if we decide to take this action after you have left the premises, we will mail you the notice by the day after we receive your deposit.

For all deposits made at an ATM, we will consider that the deposit was made on the next business day after the date of the ATM deposit.

If you will need the funds from a deposit right away, you should ask us when the funds will be available.

In addition, funds you deposit by check may be delayed for a longer period under the following circumstances:

  • We believe a check you deposit will not be paid.
  • You deposit checks totaling more than $5,000 on any one day.
  • You redeposit a check that has been returned unpaid.
  • You have overdrawn your account repeatedly in the last 6 months.
  • There is an emergency, such as failure of communications or computer equipment.

If you are a new customer, funds deposited may be delayed the first 30 days the account is open, except for deposits of Cash, Wire Transfers, U.S. Treasury Checks, State and Local Government Checks, Cashier's Checks, Certified Checks, Teller Checks, Travelers Checks, and funds from Electronic Direct Deposits.

We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available no later than the 7th business day after the day of your deposit.

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