Online Banking Agreement and Disclosure

This Online Banking Agreement and Disclosure ("Agreement") describes your rights and obligations as a user of the Online Banking service. It also describes the rights and obligations of the First State Bank of Ransom ("Bank"). Please read this Agreement carefully. By requesting and using this Service, you agree to comply with the terms and conditions of this Agreement.

I. Definitions
The following definitions apply in this Agreement:

"Authorized Representative" refers to a person with authority (with respect to the account);
"ISP" refers to your Internet Service Provider;
"Online Banking" is the internet-based service providing access to your Bank account(s);
"Online Account" means the Bank account from which you will be conducting transactions
using a Service;
"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;
"PC" means your personal computer which enables you, with the Internet browser and ISP, to
access your Online Account;
"Time of day" references are to Central Standard Time;
"User ID" is the identification code assigned to you for your connection to the Service;
"We", "Us", or "Bank" refers to the First State Bank of Ransom which offers the Services and
which holds the accounts accessed by the Services; and
"You" or "Your" refers to the owner of the account or the authorized representative.

Access to Service

The Bank will provide instructions on how to use the Online Banking Service.

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 Service 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 Bank holidays and weekends. All Online Banking transaction requests received after 4:30 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.

Banking Transactions with Online Banking.

Account Access. You may access your personal accounts online including checking, savings, certificates of deposit or loan accounts.

Transfer of Funds. In addition to viewing account information, you may use Online 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.

NOTE: The following applies to Money Market Checking and Regular Savings. You can make no more than six (6) transfers per statement period by preauthorized or automatic transfer or by telephone or Online Banking without an excess withdrawal fee. Please note: If there are not sufficient funds in the account, we cannot complete this transfer. However, future recurring transfers will not be impacted.

Additional Services. New services may be introduced for Online Banking from time to time. 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.

Restrictions. You must use Online Banking at least once every 6 months to keep the service. You must individually or jointly own all accounts accessible through Online Banking.

Schedule of Fees

At the present time the Bank offers the benefits and convenience of the Online Banking Service which includes certain fees and charges for electronic funds transfer services. For a current listing of all applicable fees, see our current Fee Schedule that was provided to you at the time you applied for or requested these electronic services.

Statements

You will continue to receive your regular account statement either monthly or quarterly, depending on the type of account.

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 Online 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 785-731-2261 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 Online Banking section of the Web site to change your Password.

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 ONLINE 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.

Term and Termination

Term. This Agreement will become effective on the Effective Date and shall remain in full force and effect until termination in accordance with the following provisions.

Termination for Cause. We may immediately terminate your electronic banking privileges without notice to you under the following circumstances: you do not pay any fee required by this Agreement when due or you do not comply with the agreement governing your deposit or loan accounts or your accounts are not maintained in good standing.

Termination for Convenience. To terminate this Agreement, you must notify the Bank and provide your name, address, the Service you are discontinuing, and the termination date of the Service. You may notify the Bank by one of the following methods:

By calling 785-731-2261.
By writing a letter and either sending it to the following address:

First State Bank of Ransom
P.O. Box 245
Ransom, KS 67572

or giving it to an employee at either of the Bank's locations.

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 6 month 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.

Electronic Fund Transfer Provisions for Consumers

Applicability. These provisions are only applicable to online electronic fund transfers which 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 which 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.

Your Liability. The following determines your liability for any unauthorized EFT or any series of related unauthorized EFTs:

If you notify the Bank within two (2) business days after your password was lost or
stolen, your liability will not exceed $50.00 or the amount of the unauthorized EFTs
that occur before notification, whichever is less.
If you fail to notify the Bank within two (2) business days after your password was
lost or stolen, your liability will not exceed the lesser of $500.00 or the total of:
1. $50.00 or the amount of unauthorized EFTs that occur within the two (2) business
  days;
2. And the total of authorized EFTs which occur during the two (2) days before
  notification to the Bank, provided the Bank establishes that these EFTs would
  not have occurred had the Bank been notified within that two-day period.
You must report an unauthorized EFT which appears on your periodic statement,
no later than 60 days of transmittal of the statement to avoid liability for subsequent
transfers. Your liability will not exceed the amount of the unauthorized EFTs that
occurred with the 60-day period. You may also be liable for the amounts as described
in sections 1 and 2 above.
If the report is made orally, we will require that you send the complaint or question in
writing within 10 business days. We will notify you with the results of the investigation
within 10 business days and will correct any error promptly. If more time is needed,
however, we may take up to 45 days to investigate a complaint or question. If this
occurs, we will credit your account within 10 business days for the amount you think is
in error. This will allow you to use the money during the time it takes us to complete our
investigation. If your complaint or question is not received in writing within 10 business
days, we may not credit your account until the investigation is completed. If an alleged
error involves an electronic fund transfer outside a state or territory or possession of the
United States, the applicable time periods for action by us are 20 business days (instead
of 10) and 90 calendar days (instead of 45). If we determine that no error occurred, we
will send you a written explanation within three business days after the investigation is
complete. You may request copies of the documents that were used in the investigation.
You may notify the Bank by telephone, writing, or in person.

Telephone Number and Address. In case of errors or questions regarding an Online Banking transaction, call 785-731-2261 or write us at:

The First State Bank of Ransom
P.O. Box 245
Ransom, KS 67572.

We must hear from you at the telephone number or address, listed above, no later than 60 days after we send you the FIRST statement on which the problem or error appeared. We will need:

Your name and account number,
A description of the error or the transfer in question and an explanation concerning
why you believe it is an error or need more information, and
The dollar amount of the suspected error and date on which it occurred.

II. Liability

Our Liability. This section explains our liability to you only to the extent that any other agreements, notices or disclosures have not separately disclosed our liability. In no event shall we be liable to you for failure to provide access to your Online Banking service accounts. Unless otherwise required by applicable law, we are only responsible for performing the Online Banking service as delineated in this Agreement. We will be liable for the amount of any material losses or damages incurred by you and resulting directly from our gross negligence.

We will not be liable to you in the following instances:

If through no fault of the Bank, you do not have enough money in your account to
make the transfer.
If circumstances beyond our control (such as fire, flood, power outage, equipment
or technical failure or breakdown) prevents the transfer despite reasonable precautions
that we have taken.
If there is a hold on your account, or if access to your account is blocked, in accordance
with banking policy.
If your funds are subject to a legal proceeding or other encumbrance restricting the transfer.
If your transfer authorization terminates by operation of law.
If you believe someone has accessed your accounts without your permission and you fail
to notify the Bank immediately.
If you have not properly followed the instructions on how to make a transfer included in
this Agreement.
If we have received incomplete or inaccurate information from you or a third party involving
the account or transfer.
If we have a reasonable basis for believing that unauthorized use of your Password or
account has occurred or may be occurring or if you default under this Agreement, the deposit
account agreement, a credit agreement or any other agreement with us, or if we or you
terminate this Agreement.

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.

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 Online Banking account.

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 Online Banking account.

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.

General Terms and Conditions

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 Online Banking Service is your acknowledgment that you have received these agreements and intend to be bound by them.

Changes and Modifications. The Bank may modify the terms and conditions applicable to the Service 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 Service in whole or in part at any time without prior notice.

A. 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.

B. Notices. Unless otherwise required by applicable law, any notice or written communication given pursuant to this Agreement, may be sent to you electronically.

C. Disclosure of Information. Personal information may be supplied to a third party in order to process a customer transaction; if the customer requests it; or, the disclosure is required or allowed by law (i.e. exchange of information with reputable reporting agencies, subpoena, or the investigation of fraudulent activity, etc).