Online Banking Agreement/Disclosure

This is the Agreement for your Peoples Bank of Middle Tennessee Personal Online Banking Services and it includes certain disclosures for electronic fund transfers. This Agreement states the terms and conditions that apply when you use Peoples Bank of Middle Tennessee Personal Online Banking Services, and constitutes the entire agreement between you and Peoples Bank of Middle Tennessee with respect to the subject matter of this Agreement, and there are no understandings or agreements related to this Agreement that are not fully expressed herein. These terms and conditions are in addition to the terms and conditions that apply to any accounts or other service covered by this Agreement.

The terms and conditions of the deposit agreements and disclosures for each of your Peoples Bank of Middle Tennessee accounts as well as your other agreements with Peoples Bank of Middle Tennessee, such as loans, continue to apply notwithstanding anything to the contrary in this Agreement.

This Agreement is also subject to applicable federal laws and the laws of the State of Tennessee (except to the extent this Agreement can and does vary such rules or laws). If any provision of this Agreement is found to be unenforceable according to its terms, all remaining provisions will continue in full force and effect. The headings in this Agreement are for convenience or reference only and will not govern the interpretation of the provisions. Any waiver (express or implied) by either party of any default or breach of this Agreement must be in writing and shall not constitute a waiver of any other or subsequent default or breach. You may not assign this Agreement. This Agreement is binding upon your heirs and Peoples Bank of Middle Tennessee successors and assigns. Certain of the obligations of the parties pursuant to this Agreement that by their nature would continue beyond the termination, cancellation or expiration of this Agreement shall survive termination, cancellation or expiration of this Agreement.

Definitions: In this agreement, the words "we", "us", "our", "the Bank", and "Bank" mean Peoples Bank of Middle Tennessee. The words "you" and "your" refer to each person who establishes a Peoples Bank of Middle Tennessee Personal Online Banking Account with us or who uses, or is authorized to use, a Peoples Bank of Middle Tennessee Personal Online Banking identification number and password or other means of access we establish or approve.

The words "Access ID" means the Online Banking identification number, password, and/or other means of access we establish or approve. "Services" means our Peoples Bank of Middle Tennessee Personal Online Banking Services that allow you to obtain account information, transfer funds, make payments including our "Bill Pay" service, access accounts, and perform other transactions over the Internet by use of a personal computer and modem/cable and/or other means we authorize or allow. "Bill Pay" or "Bill Payment" means the function of our Services that allows you to direct payments from your designated Bill Pay checking account to third parties you wish to pay. "Business Day" means Monday through Friday. Time of day references, when using our Services, are Central Standard Time or Central Daylight Time, as applicable.

When you use our Services or you permit another person to use our Service, you agree to the terms and conditions we have set out in this Agreement and any instructional material that we provide you regarding the Services.

Access to Services: Our Services are for authorized use by Peoples Bank of Middle Tennessee customers only. Attempted unauthorized access is a violation of federal law and will be prosecuted to the full extent of the law.
You must have at least one eligible personal deposit, credit, or other account type with us. You may not designate any account that requires more than one signature for withdrawals. You must be the owner of this account (or accounts). Your account(s) with us must be in good standing. For Bill Pay services, you must have a checking account that will be designated as the account from which bill payments will be made.

You, or someone you have authorized by giving them your Access ID, can instruct us to provide information to perform transactions on any of your accounts for which you have enrolled for Services including:

• Account Information - information, including transaction history, about your accounts.
• Funds Transfer - make transfers between your accounts.
• Bill Pay - On Demand and Recurring payments from an eligible personal Bank checking account. See Bill Pay section below.
• Other Services - obtain other services or perform other transactions that we may authorize.

Business Days and Hours of Operations: The Peoples Bank of Middle Tennessee Personal Online Banking Services are generally available 24 hours a day, 7 days a week. However, we only process transactions and update information on business days. Our business days are Monday through Friday. Transfers made after 3:30 P.M. Central Time (CST/CDT) will be processed the next business day. Holidays are not business days.

Changes/Interruptions in Service: We may periodically do maintenance on our equipment or system that may result in a temporary interruption of service or errors in the Service. We may also change the scope of our Services from time to time. We will attempt to provide prior notice of such changes/interruptions but cannot guarantee that such notice will be provided.

Charges/Fees: Once you are an enrolled user of the Services, you agree to the terms and conditions of this account including any schedule of charges that may be imposed. You shall be subject to any future changes and fees after 30 days prior notice. You authorize us to automatically deduct all applicable charges and fees from your primary checking (and other applicable) account(s) with us.

Important Note for Non-Personal Account Holders: The loss, theft, or unauthorized use of your Access ID and Password could cause you to lose all of the money in your account, plus any amount available under your overdraft protection credit line or other credit lines linked to your deposit account utilized for bill payments, transfers, or cash management services (separate agreement required for cash management services). YOUR USE OF THE SERVICES UNDER A NON-PERSONAL DEPOSIT ACCOUNT IS YOUR AGREEMENT TO ASSUME ALL RISKS AND LOSSES ASSOCIATED WITH THE DISCLOSURE OF YOUR ACCESS ID AND PASSWORD TO YOUR EMPLOYEES, OR OTHER PERSONS. YOU AGREE TO LIMIT THE DISCLOSURE OF YOUR ACCESS ID AND PASSWORD TO THOSE EMPLOYEES AND OTHER PERSONS YOU AUTHORIZED TO USE THE SERVICES.

Security: In order to maintain secure communications and reduce fraud, you agree to protect the security of your Access ID and Password. We reserve the right to block access to the Services if we reasonably believe the confidentiality of your Access ID and Password may have been compromised and/or that they may be being used by an unauthorized person. We also may require you to utilize Internet browser software meeting certain minimum-security requirements in order to access our Services.

Access ID and Password: To access our Services you must use the identification code and/or other means we establish or provide for your Online Banking Customer Account, together with a password which we initially provide. Anyone to whom you provide your Access ID and password will have full access to your accounts even if you attempt to limit that person's authority. For your protection, we recommend that you do not use the same Access ID for these Services that you use on other bank or non-bank products. You are responsible to protect your Access ID and password from unauthorized access. You agree that we are authorized to act on instructions received under your password. You accept responsibility for the confidentiality and security of your password. Upon three (3) unsuccessful attempts to use your password, your access to the Services will be locked out for a specific amount of time. After the lock out time, you are allowed another set of three (3) unsuccessful attempts to use your password. If the second lock out occurs, your access to the Services will be revoked. To re-establish your authorization to use the Services, you must contact us to obtain a new temporary password. Your password should not be associated with any commonly known personal identification, such as social security numbers, address, date of birth, names of children, and should be memorized rather than written down.

YOU AGREE NOT TO ALLOW ANYONE TO GAIN ACCESS TO THE SERVICES OR TO LET ANYONE KNOW YOUR ACCESS ID AND PASSWORD USED WITH THE SERVICES. YOU AGREE TO ASSUME RESPONSIBILITY FOR ALL TRANSACTIONS INITIATED THROUGH THE SERVICE WITH YOUR ACCESS ID AND PASSWORD, UP TO THE LIMITS ALLOWED BY APPLICABLE LAW.

Lost or Stolen Access ID, password, or Unauthorized Access: If your Access ID and/or password have been lost or stolen or you believe and unauthorized person is accessing your accounts, call us immediately at 931-684-7222. Telephoning us immediately is the best way of minimizing your possible losses.

To the extent that a transaction is an electronic fund transfer, you can lose no more than $50 if you notify us within two (2) business days of discovering any unauthorized use of the Services or your Access ID or password. However, you can lose as much as $500 if you do not notify us within two (2) business days of discovering the unauthorized use and we can prove that we could have stopped the unauthorized use had we been notified.

Transaction Limits: You must have enough available collected funds or credit in any account from which you instruct us to make an account transfer or loan payment. If the date you schedule a transfer or payment to be made is not a Business Day, then funds must be available in your account the following Business Day.

Incorrect Transactions on Your Statement: In case of error or questions about your electronic transfers, notify us by calling 931-684-7222 or by writing to P.O. Box 707, Shelbyville, TN 37162 as soon as you can.

We must hear from you no later that sixty (60) days after we have sent you the FIRST statement on which the error or problem appeared. If you do not report unauthorized transactions made after the statement(s) are mailed or electronically transmitted to you, you risk unlimited losses on transactions made after the sixty (60) day period which would not have been lost if we had been notified in time. You can telephone us, but doing so will not preserve your rights.

In your letter, give us the following information:
a. Tell us your name and account number.
b. 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.
c. Tell us the dollar amount of the suspected error.
d. If the suspected error relates to a bill payment made via the Services Bill Payment function, tell us the account number used to pay the bill, payee name, the date the payment was sent, payment amount, ID number, and the payee account number for the payment in question.
For suspected deposit account errors, we will investigate your complaint and will correct any error promptly. If we take more than ten (10) business days (twenty (20) business days for new accounts (accounts open for thirty (30) days or less)) to do this, we will credit your account 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 suspected loan transaction errors, you do not have to pay any amount in question while we are investigating, but you are still obligated to pay the parts of your bill that are not in question. While we investigate your question, we cannot report you as delinquent or take any action to collect the amount you question.

Disclosure of Account Information and Transfers: You understand information about your accounts or the transfers you make may automatically be disclosed to others. For example, tax laws require disclosure to the government of the amount of interest you earn, and some transactions, such as large currency and foreign transactions, must be reported to the government. We may also provide information about your accounts to persons or companies we believe would use the information for reasonable purposes, such as when a prospective creditor seeks to verify information you may have given in a credit application or a merchant calls to verify a check you have written. In addition, we routinely inform credit bureaus when accounts are closed because they were not handled properly. We may also seek information about you from others, such as a credit bureau, in connection with the opening or maintaining of your account or in connection with approving your access to the Services. You agree and hereby authorize all of these transfers of information.

Electronic Payments: Payments made electronically over an automated clearinghouse system ("ACH") are governed by the rules and performance standards of the network as promulgated by the National Automated Clearing House Association (NACHA) as they may currently exist and as they may be amended from time to time.

Periodic Statements: You will be mailed periodic statements for your accounts(s) as regularly provided for in the depositor or credit agreement applicable to your accounts. Your statement will reflect any transfers or bill payments you authorize using the Services. You will not receive a separate Service statement.

Bill Payment and Transfer Limits: You must have enough available collected funds or credit in any account from which you instruct us to make a payment or transfer. If the date you schedule a payment to be made is not a Business Day, funds must be available in your account the following Business Day. Bill payments will be debited from your account on the date you schedule the payment (or the next Business Day, if applicable).

Bill payments and transfers must be payable in U.S. dollars to a payee located in the United States. You can use the Bill Payment Service to pay anyone except Government Agencies. We reserve the right to restrict types of payees to whom payment may be made using the Service from time to time. You should not use the Bill Pay Service to make payments to settle securities purchase, tax payments, or court order payments. Payments for these payees will be your sole responsibility if delayed or improperly processed or credited.

If any of your qualifying accounts are money market or savings accounts, certain types of withdrawals from those accounts, including payments and transfers, are limited to a total of no more than six (6) in any specified period. You agreed to the "Terms and Conditions of Your Deposit Account" that you received when you opened your deposit account. Please refer to those terms and for more information on applicable transaction limits. You may request another disclosure of these from the bank at any time.
Payments can be entered, edited, or deleted at any time until 1:00 P.M. CST/CDT on the day the payment is scheduled to be paid.

Bill Payment Deadlines: You must schedule a bill payment at least four (4) Business Days prior to the Scheduled Payment Date you selected. Please note: the Scheduled Payment Date you selected may not be the Due Date on your bill.

Bill Payment "Stop Payments": NOTE: Any item that has not processed before the 1:00 PM Central Time deadline on the payment date may be deleted to prevent payment.

Stop Payments on items already processed must be requested through the Bank. Stop Pays will depend on the payment method and payment status. Stop Payment requests must be received by the Bank in time for the Bank to have a reasonable opportunity to act upon it. The Bank may also require a written request/signature within fourteen (14) days. The stop payment cost will be at the current rate set by the Bank.

Bill Payment Risk Reduction Measures: We, or our agent, may, in our discretions, implement features to reduce credit risks. These may include, but are not limited to, pre-authorized drafts for business customers, verifying funds through an ATM network, and separating debits from credits so that payments are not sent until good funds are received.

Bill Payments and Transfers - Your Responsibility: You are responsible for all transfers and bill payments you authorize using the Services. If you permit other persons to use the Services or your Access ID and password, you are responsible for all transactions they authorize from your linked eligible accounts. You are liable for all transactions that you make or authorize, even if the person you authorize exceeds your authority. If you have given someone your Access ID and password and want to terminate that person's authority, you must change your password to prevent further access by such person.

You are responsible for having sufficient funds in your account(s). You are liable for our standard fees associated with overdrafts in your account or for insufficient funds (NSFs). If your account does not have sufficient funds to make a payment as of the scheduled date, the payment will be canceled and no further attempt will be made by us or our agent to complete the payment. You are responsible for making alternative arrangements for the payment or for rescheduling the payment through the Service. In the case of recurring payments, only the current scheduled payment will be cancelled. Payments scheduled for future dates will not be affected. In the event you have sufficient funds to make some, but not all scheduled payments, we or our agent may, in our sole discretion, determine which payments to complete.

You agree that when any transfer, bill payment, or other transaction is generated by the Services, we may debit your designated account or the account on which the item is drawn without requiring your signature on the item and without prior notice to you.

Bill Payment and Transfers - Our Responsibility for Completing: If we, or a third party acting as our agent, do not complete a payment or transfer to or from your account on time or in the correct amount according to our agreement with you when you have properly instructed us to do so, we may be liable to you for your losses or damages caused as a result. However, there are some exceptions. We will NOT be liable, for instance:

1. If, through no fault of ours, you do not have sufficient collected funds in the account from which a payment or transfer is to be made, or if the account has been closed or is not in good standing, or if we reverse a payment or transfer because of insufficient funds.
2. If any payment or transfer would go over the credit limit of any account.
3. If your equipment or ours was not working properly and you knew about the breakdown when you attempted to conduct the transaction.
4. If you have not given us complete, correct or current account numbers, other identifying information, or instructions so that we can properly credit your account or otherwise complete the transaction.
5. If you fail to properly follow our instructions, including all on-screen instructions, or if you provide us with wrong or inaccurate information or fail to correct or tell us about an inaccuracy of which you are aware.
6. If you do not instruct us soon enough for your payment or transfer to be received and credited by the time it's due as described in the Payment Deadlines section.
7. If a timely bill payment is made but the payee nevertheless does not credit your account promptly after receipt.
8. If the money in the account from which a payment or transfer is to be made is subject to legal process or other claim that restricts access to the funds.
9. If your account is closed or frozen.
10. If we or our agent reasonably believes that a transaction may be unauthorized and based thereon the transaction is not completed.
11. If you, or anyone authorized by you, commits fraud or violates any law or regulation.
12. If circumstances or persons beyond our or our agent's control prevent, delay, intercept or alter the transaction, despite reasonable precautions that we have taken. Such circumstances include, but are not limited to, computer failure, telecommunications breakdowns or interruptions, labor disputes, delays caused by payees, interruption of service by ATM or other payment networks, fires, floods, and other natural disasters.

Our liability to reimburse payee-imposed late fees, provided the payment was scheduled and made in accordance with the above requirements, shall not exceed $50. We may attempt on your behalf to have a late fee reversed or waived. We have no liability for late fees for payments not initiated following the instructions defined in this agreement or provided in other instructional materials regarding the Services.

In no event shall we be liable for damages that exceed your actual loss due to our failure to complete a transfer, and we shall not be liable for any indirect, incidental, or consequential damages.

Severability: If any provision of this agreement is held invalid, illegal, or unenforceable, the validity, legality or enforceability of the remaining provisions shall in no way be affected or impaired thereby.

Termination/Inactivity: We may terminate this agreement and any Services provided hereunder at any time you have enrolled for Services including; without notice if we reasonably believe you are violating any of the terms and conditions of this agreement. Otherwise, either you or we may terminate this agreement and any Service provided hereunder at any time by giving at least five (5) business days prior written notice of termination to the other party. If you terminate a transfer or Bill Pay Service, you authorize us to continue making transfers, payments, and other transactions you have previously authorized until we have a reasonable opportunity to act upon your termination notice. Once we have acted on your notice, we have no responsibility to make any transfers, bill payments or other transactions you may have previously authorized.

If you are not paying a monthly service charge for the Services, we may terminate your Service access if you do not sign on to the Service nor have any transactions scheduled through the Service for any consecutive ninety (90) day period. If your Service is terminated for inactivity, you must contact us to have the Service activated before you will be able to schedule any transaction through the Service.

Disclaimer of Warranty and Limitation of Liability: You agree that our liability for viruses, worms, Trojan horses, or other similar harmful components that may enter your computer system by downloading information, software, or other materials from our site shall be limited to replacing, or the reasonable cost of replacing, the lost information, software, or other material.

You agree that each party shall bear the liability or the risk of any error or loss of date, information, transactions or other losses that may be due to the failure of their respective computer system or third party communications provider on which each party may rely.

We shall have no liability to you for any damage or other loss, direct, indirect, incidental, or consequential, that you may incur from such viruses, worms, Trojan horses, or other similar harmful components or by reason of your use of your computer system or your communications provider.
We shall not be liable for any losses resulting from circumstances over which we have no direct control, including, but not limited to, the failure of electronic or mechanical equipment or communications lines, telephone or other interconnect problems, operator errors, log-in sequences, severe weather, earthquakes, floods, and other such events. You acknowledge that there are alternative methods for accessing the information and conducting the transactions provided by the Services, such as in person transactions at a Peoples Bank of Middle Tennessee Office, by phone, or payment by check. In the event you experience problems in accessing the Service, you will attempt to access such information and conduct such transactions by such alternative methods.

There may be other exceptions to our liability as stated in your Depositor Agreement or other agreements you have with us.

We make no warranty of any kind, express or implied, including any implied warranty of merchantability or fitness for a particular purpose, in connection with the Services provided to you under this Agreement. We do not and cannot warrant that the Services will operate without errors, or that any or all Services will be available and operational at all times. Except as specifically provided in this Agreement, or otherwise required by law, you agree that our officers, directors, employees, agents or contractors are not liable for any indirect, incidental, special or consequential damages under or by reason of any services or products provided under this Agreement or by reason of your use of or access to Services, including loss of profits, revenue, data or use by you or any third party, whether in an action in contract or tort or based on a warranty or any other legal theory. Further, in no event shall the liability of Bank and its affiliates exceed the amounts paid by you for the Services provided to you under this Agreement.

Miscellaneous: We may amend this agreement by giving notice to you at least thirty (30) days prior to the effective date of the amendment, unless law or applicable regulation otherwise requires such amendment. We may give notice by any one or more of the following methods: By sending notice by first-class mail or electronic mail at the address shown on our records, by placing a statement message on the statement for any of your account(s) or by posting a notice on our Internet site. You will be deemed to have received any notice by electronic mail three (3) calendar days after it is sent. Your continued use of the Service is your agreement to the amendment(s).

We may from time to time waive fees and/or other terms or provisions of this agreement, but any such waiver shall not be deemed a waiver of the term or provision in the future.

This agreement is the entire agreement between you and us pertaining to the Services and supercedes any marketing or other material delivered to you in writing, verbally, or obtained at our Internet site.

Your signature on the Peoples Bank of Middle Tennessee Personal Online Banking Services Enrollment Form will validate you have read and agree to the above provisions and are enrolling for the Services selected on the form.

I AGREE         |         I DISAGREE