Disclosure Regulation E

ELECTRONIC FUND TRANSFERS

YOUR RIGHTS AND RESPONSIBILITIES

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

TYPES OF TRANSFERS, FREQUENCY AND DOLLAR LIMITATIONS

(a)     Prearranged Transfers.

Preauthorized credits.  You may make arrangements for certain direct deposits to be accepted into your checking and/or savings account(s).

Preauthorized payments.  You may make arrangements to pay certain recurring bills from your checking and/or savings account(s).

(b)     Telephone Transfers.

You may access your account(s) by telephone at anytime using a touchtone phone, your account numbers, and taxpayer and personal identification numbers to:

Transfer funds between your checking and savings account(s).

Make loan payments from your checking and savings account(s).

Get checking and savings account(s) information.

Get certificate of deposit and Individual Retirement Account(s) information.

Get loan account(s) information.

(c)     ATM Transfers.

You may access your account(s) by ATM using your ATM Card or MasterMoney © Check Card and personal identification number to:

Make deposits to checking and/or savings account(s).

Get cash withdrawals from your designated checking and/or savings account(s).  Our standard daily withdrawal limit applicable to our ATM Card and MasterMoney © Check Card is $600.00 or the amount of the collected balance of your selected account, whichever is less.  There is no limit as to the number of times in a day you may use your card.

Transfer funds between your checking and savings account(s).

Get checking and/or savings account information.

Limitations on Frequency of Transfers-In addition to those limitations on transfers elsewhere described, if any, the following limitations apply:

Transfers from an Active Assets account to another account or to third parties by telephone transfer are limited to six per statement cycle, with no more than three of these being by check, draft or similar order.

Transfers from a First State Money Market account to another account or to third parties by telephone transfer are limited to three per statement cycle.

Transfers from a Statement Savings Account or Super Saver Account to another account or to third parties by telephone transfer are limited to three per calendar quarter.

(d)     Point-Of-Sale Transactions.

Using your card:

You may access your checking account to purchase goods in person, by phone, or by computer, pay for services in person, by phone, or by computer, get cash from a merchant, if the merchant permits, or from a participating financial institution, and do anything you can do with a credit card.

You may not exceed our standard daily withdrawal limit of $600.00 or the amount of collected balance of your selected account, whichever is less. 

NOTICE:

(e)     Computer Transfers.

You may access your account(s) by computer at anytime by signing onto  http://www.firststatebk.com/  and selecting the Internet Banking Option and entering your User Name and Password to:

Transfer funds between checking and/or savings account(s)

Make payments from checking and/or savings accounts to loan accounts with us.

                Make payments from checking or savings accounts with us to                 other vendors through the Bill Pay feature.

                Get checking and/or savings account(s) information.

                Get Certificate of Deposit (CD) or Individual Retirement                 Account (IRA) information.

                Get loan account information.

(f)      Electronic Check/Draft Conversion.

You may access your checking account(s) by electronic check or draft conversion. Your authorization to make these types of electronic funds transfers may be expressed in writing or implied through the posting of a sign. You may:

Make payments by electronic check or draft from your checking or savings account(s).

Make electronic payment or charges for checks or drafts returned for insufficient funds from checking or savings account(s). 

GENERAL LIMITATIONS
In addition to those limitations on transfers elsewhere described, if any, the following limitations apply:

Transfers from an Active Assets account to another account or to third parties by preauthorized, automatic, or telephone transfer are limited to six per statement cycle with no more than three transfers by check, draft, or similar order to third parties.  If you exceed the transfer limitations set forth above in any statement period, your account will be subject to closure by the financial

institution. Transfers from a First State Money Market account to another account or third parties by preauthorized, automatic, or telephone transfer are limited to three per statement cycle.  If you exceed the transfer limitations set forth above in any statement period, your account will be subject to closure by the financial institution.

FEES

ATM Operator/Network Fees:

When you use an ATM not owned by us, you may be charged a fee by the ATM operator or any network used (and you may be charged a fee for a balance inquiry even if you do not complete a fund transfer).

DOCUMENTATION

(a)           Terminal Transfers.  You can get a receipt at the time you make any transfer to or from your account using one of our terminals.  You will receive a copy of the merchant receipt at the time that the Point of Sale transaction is originated with your MasterMoney © Check Card.  When using Online Banking, you will receive a tracking number at the time you make a transfer request.

(b)           Preauthorized Credits.   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 the telephone number listed below to find out whether or not the deposit has been made.  You may also access your account through Online Banking with your password to find out whether or not the deposit has been made.

(c)           In addition,   

-You will get a monthly account statement from us, unless there are no transfers in a particular month.  In any case you will get a statement at least quarterly.

-You will get a quarterly statement from us on your savings account if the only possible electronic transfer to or from the account is a preauthorized deposit.

-If you bring your passbook to us, we will record any electronic deposits that were made to your account since the last time you brought in your passbook.

PREAUTHORIZED PAYMENTS

(a)     Right to stop payment and procedure for doing so.  If you have told us in advance to make regular payments out of your account, you an stop any of these payments.  Here’s how:

Call or write us at the telephone number or address listed in this disclosure, in time for us to receive your request three business days or more before the payment is scheduled to be made.   You may request a stop payment be Email (using the appropriate Email form accessible after signing on with your password to a secure session of Online Banking) 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 the request is made.

We charge $15.00 for each stop payment.

(b)     Notice of varying amounts.  If these regular payments may vary in amount, the person you are going to pay will bill you, 10 days before each payment, when it will be made and how much 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.)

(c)     Liability for failure to stop payment of preauthorized 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.  

FINANCIAL INSTITUTION’S LIABILITY

(a)     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, we will be liable for your losses or damages.  However, there are some exceptions.  We will NOT be liable, for instance:

-          If, through no fault of ours, you do not have enough money in your account to make the transfer.

-          If the transfer would go over the credit limit on your overdraft line.

-          If the automated teller machine where you are making the transfer does not have enough cash.

-          If the terminal or system was not working properly and you knew about the breakdown when you started the transfer.

-          If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken.

-          If a legal order directs us to prohibit withdrawals from the account.

-          If your account is closed or has been frozen.

-          If you, or anyone you allow, commits any fraud or violates any law or regulations.

-          If you have not properly followed the instructions for First State Bank Online Banking

-          There may be other exceptions stated in our agreement with you.

CONFIDENTIALITY

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

(1)      where it is necessary for completing transfers; or

(2)      in order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant; or

(3)      in order to comply with government agency or court orders; or

(4)      if you give us written permission

(5)      as explained in the separate Privacy Disclosure.

UNAUTHORIZED TRANSFERS

(a)      Consumer Liability.

-          Generally.  Tell us at once if you believe your card and/or code or password has been lost or stolen.  Telephoning or Emailing (through secure Email within the Online Banking system) is the best way of keeping your possible losses down.  You could lose all the money in your account (plus your maximum overdraft line of credit).  If you believe your card and/or code or Online Banking password has been lost or stolen, and you tell us within 2 business days after you learn of the loss or theft, you can lose no more than $50 if someone used your card and/or code or Online Banking password without your permission.  Also, if you do NOT tell us within 2 business days after you learn of the loss or theft of your card and/or code or Online Banking password, and we can prove we could have stopped someone from using your card and/or code or Online Banking password without your permission if you had told us, you could lose as much as $500.  Also, if your statement shows transfers made with your card and/or code or Online Banking password 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 that time period.

MasterCard© Debit

-          Additional Limited Liability for $500.00.  You will not be liable for any unauthorized transactions using your MasterCard© debit card, when used for point-of-sale transactions, if: (i) you can demonstrate that you have exercised reasonable care in safeguarding your card from the risk of loss or theft, (ii) you have not reported to us two or more incidents of unauthorized use within the prior twelve-month period, and (iii) your account is in good standing.  If any of these conditions are not met, your liability is the lesser of $50 or the amount of money, property, labor, or services obtained by the unauthorized use before notification to us.  “Unauthorized use” means the use of your debit card by a person other than you, who does not have actual, implied, or apparent authority for such use, and from which you receive no benefit.  This additional limit on liability does not apply to ATM transactions or to transactions using your Personal Identification Number which are not processed by MasterCard©.  MasterCard© is a registered trademark of MasterCard International Incorporated.

(b)     Contact in event of unauthorized transfer. If you believe your card and/or code or Online Banking password 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 at the end of this disclosure or Email us (through a secure Email session of Online Banking).

ERROR RESOLUTION NOTICE

             In Case of Errors or Questions About Your Electronic Transfers, Call or Write us at the telephone number or address listed below, as soon as you can, if you think your statement or receipt or Online account history 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 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.

(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 ten (10) business days. We will determine whether an error occurred within ten (10) business days (5 business days if involving a MasterCard© transaction or 20 business days if the transfer involved a new account) after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45days (90 days if the transfer involved a new account, a point-of-sale transaction, or a foreign-initiated transfer) to investigate your complaint or question.  If we decide to do this, we will credit your account within 10 business days (5 business days if involving a MasterCard transaction or 20 business days if the transfer involved a new 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.  If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account.  An account is considered a new account for 30 days after the first deposit is made, if you are a new customer.  We will tell you the results within three business days after completing our investigation.  If we decide that there was no error, we will send you a written explanation. You may ask for copies of the documents that we used in our investigation.

First State Bank

101 S. Center Street

P. O. Box 320

Lonoke, AR  72086-0320

Phone: (501) 676-3106

www.firststatebk.com