This agreement (the "EFT Agreement") governs your use of Electronic Funds Transfer Services described below ("EFT Services") that are available for the Accounts opened through the Bank of Internet USA Website (the "Website"). The following provisions apply only to accounts established primarily for personal, family, or household purposes. This EFT Agreement describes your rights as well as your responsibilities and as such should be read carefully. We recommend that you keep the EFT Agreement for future reference.

Definitions. In this EFT Agreement, "Checking Account" means a Demand Deposit account (DDA), a Negotiable Order of Withdrawal (NOW) account, a Savings account and a Money Market account at Bank of Internet USA that you open through the Bank of Internet USA Website; "Account" includes any Checking, Certificate of Deposit, or Savings account at Bank of Internet USA opened through the Website or in person; "Card" means an automated teller machine card and a check card that accesses your Checking, Savings, Money Market, or NOW account; "PIN" means the personal identification number you use in connection with your Card; "Password" means the password you use to access the Website and your Bank Accounts through a personal computer or other electronic terminal; "Access Device" means your Card, Password, or other device or code we make available to you to access your Accounts; "Business Day" means Monday through Friday, except federal holidays; and "Authorized User" means any person you authorize or permit to use your Card, Password or other Access Device to access your Accounts, whether that person uses the Access Device to obtain information or to conduct a transaction.

This EFT Agreement is part of the Banking Documents. Other terms used in this EFT agreement may be defined elsewhere in the Banking Documents.

Types of EFT Services. We offer the following types of EFT Services for your Checking Account.

1. Preauthorized Credits/Debits.

   We accept, on your behalf, certain direct deposit credits and preauthorized debits drawn on your Deposit Accounts which allow unrestricted activity. Through our electronic bill payment service you are able to electronically transfer funds from your Deposit Account to other parties, provided the account allows such activity. We may conduct these transactions via Automated Clearinghouse (ACH) transfer as a member of a regional Automated Clearinghouse Association. We may also accept and direct funds by wire transfer. Each of these services have unique fees associated with the transaction. Please consult our Fee Schedule. When you provide the party initiating the withdrawal or deposit with advance authorization to make recurring ACH transfers to or from your Account, the transfers are referred to as "preauthorized transfers." Because these preauthorized transfers are performed electronically through the ACH, they are governed by federal regulations pertaining to EFT Services, which entitle you to certain benefits and protections in connection with the EFT Services, such as the right to receive a copy of your written authorization to make preauthorized transfers from your Account from the party that obtains it.

2. ATM and Check Card Transactions.
   1. ATM Transactions.

      ATM Cards issued by us to you remain our property and you may be requested to return the Card to us at any time for any reason. Each card is used in conjunction with an authorizing Personal Identification Number ("PIN"). To guard against someone initiating a transaction that you have not authorized, you must take all reasonable precautions to prevent any other person from learning your PIN. If you permit or authorize another person to use your Card and PIN, you will be liable for all resulting transactions. You may use your Card at ATMs which are a part of an Electronic Funds Transfer service network to which Bank of Internet USA belongs ("EFT network"). ATM withdrawals are available up to the daily authorization limits disclosed below, provided the available balance in the Deposit Account associated with your card is greater than or equal to the amount requested, plus any fees that may be charged along with the cash disbursement. You may use your Card with your PIN at such an ATM to perform the following types of transactions:

      1. Withdraw cash from your Checking Account.
      2. Find out your Checking Account balances.
      3. Transfer funds between your own accounts at the Bank (if available on the ATM in use).
      4. Withdraw cash from your Savings Account.

      Note: We cannot assure that a specific ATM or EFT network will perform or permit all the above transactions. In addition, some or all transactions may be subject to a surcharge assessed by the terminal owner. Some fees and/or charges assessed by the terminal owner may be reimbursed to you in accordance with our published Schedule Of Fees. Please consult the Schedule of fees elsewhere in this book or on our Website www.bankofinternet.com. Also, a specific ATM or EFT network may not provide you with access to all of your Accounts or may automatically post withdrawals to certain account types (such as checking), rather than the account you selected. If you have a question regarding whether a certain ATM or EFT network will process a transaction, call, e-mail or write us.

   2. Point-of-Sale Transactions.

      You may use your Card to purchase goods and services from merchants that participate in certain EFT networks and have agreed to accept your Card as a means of payment. Purchases made with your Card are referred to as point-of-sale ("POS") transactions, and will be charged against your Checking Account. POS withdrawals may, at Bank of Internet USA's discretion, be authorized even when the available balance is not sufficient.

3. Other Electronic Transfers.
   1. Transfers to Your Other Accounts at Bank of Internet USA.

      You may open a Savings, Money Market, Certificate of Deposit or Checking Account on the Website by using your User ID and your Password to transfer funds from your designated Account and giving us the necessary instructions.

   2. Transfers to Third Parties within Bank of Internet USA.

      You can transfer funds from your Account to third parties ("Recipients") who have deposit accounts at Bank of Internet USA by entering payment instructions to Bank of Internet USA through the Bill Payment Service at the Website. We will debit your Account in the amount of the transfer and credit the Recipient's designated Account. Once the transfer has occurred, it is irrevocable.

   3. Transfers to Third Parties outside Bank of Internet USA.

      You can transfer funds from your Checking Account to third parties who have accounts at U.S. depository institutions other than Bank of Internet USA by entering payment instructions using the Bill Payment Service on the Website. We will debit your designated Account in the amount of the payment on the day you instruct us to do so. Such payments are otherwise irrevocable once made.

   4. Terms Relating to Goods and Services Purchased using Electronic Transfers with an ATM or Check Card.
      1. No Liability. Bank of Internet USA is not responsible in any way for any goods or services you decide to purchase, including without limitation, their quality, safety, legality or delivery. Bank of Internet USA will not become involved in any dispute involving such goods or services. You also agree to release Bank of Internet USA and their respective directors, officers, employees and agents from any and all claims, demands and damages between persons using and accepting the Bank of Internet USA ATM and Check (Debit) Cards issued to you, including any claims, demands or damages arising out of or related to the purchase or sale of goods or services.
      2. Rejected Funding Transactions. Payments are made solely out of funds on deposit with Bank of Internet USA in accordance with the Banking Documents. If you fund your account through a credit card or ACH transaction, you may not dispute that transaction if you have transferred funds out of your account. If you are the recipient of a transfer from another Bank customer, and the sender reverses or charges back a transaction used to fund your transfer, Bank of Internet USA immediately and without notice or presentment may debit your account for the amount of the transfer, regardless of whether your account has a sufficient balance to fund the transaction. You are responsible for any overdraft created because of the reversal. You may incur interest, fees and charges in accordance with the Banking Documents if there are insufficient funds in your designated Account to cover such amount.
      3. Limitations on Payments. Bank of Internet USA may terminate access to the Bank of Internet USA ATM and/or Check (Debit) Card Services at any time for any reason, including without limitation (i) with respect to any recipient of transfers, if Bank of Internet USA believes in its sole discretion that there are an excessive number of disputes involving customer use, or (ii) with respect to any third party, if Bank of Internet USA believes in its sole discretion that the third party has initiated disputes without reasonable cause or in bad faith. Bank of Internet USA also may reject a transaction or restrict your access to the Website to make further transactions at any time if it believes the security of your accounts or the Website is at risk or any fraudulent or illegal activity may be occurring, including evidence of unusual activity in your accounts. You may not make more than $10,000 in EFT Transactions using the Bank of Internet USA Bill Payment Service in any day unless specifically authorized in advance by Bank of Internet USA management.

      Limitations On The Number And Dollar Amount Of Card Transactions. Your Card transactions will be subject to daily limits as follows:

      • Cash or Point-of-Sale transaction from ATM: $310.
      • Point-of-Sale transaction using your Check Card: $500 daily limit.

      For security reasons, we may further limit these amounts from time to time without notice. Non-sufficient funds activity involving an ATM or Check (Debit) Card may result in decreased daily limits or revocation of the card.

      Charges For Use Of Your Card. We do not charge you a fee to use your Card at an ATM or to make a POS transaction. However, ATM transactions may be subject to a fee or surcharge assessed by the terminal owner, for which you will be reimbursed by Bank of Internet USA up to the amount per month which corresponds to the type of account you have.

   5. Foreign Transactions.

      If you use your ATM or Check Card to obtain cash or to purchase goods or services in another country, the amount of the charge in foreign currency will be converted to a U.S. dollar amount by the applicable network (e.g. Visa, MasterCard, etc.). In making this conversion, the network will use the procedures set forth in its operating regulations. Conversion to U.S. dollars may occur on a date other than the date of the transaction; therefore, the currency conversion rate may be different from the conversion rate in effect on the transaction date. You understand that we do not determine the currency conversion rate that is used, and we do not receive any portion of the currency conversion rate.

4. Preauthorization Holds.

   When you use your ATM or Check Card at a point of sale location or when you use the Visa or other network enhancement feature of the Cards to obtain goods or services or to obtain cash, the merchant may attempt to obtain preauthorization from us for the transaction. When the preauthorization is approved by us, we immediately debit the preauthorized amount from your designated Account. The amount you actually approved or signed for may vary in some cases from the amount of the actual purchase, depending on the merchant's request. If the preauthorization request varies from the amount of the actual transaction, payment of the transaction (which usually occurs within two to five days) will adjust the amount previously deducted from your designated Account. This process may affect the availability of funds from your designated Account to pay checks or for other electronic fund transfers. Since all transactions are immediately posted to your designated Account, please check your current balance on the Website. We will not be responsible for damages for wrongful dishonor if any items are not paid because the amount requested by the merchant was different from the actual amount you approved.

5. Your Right To Receive Documentation Or Notice Of Transactions.

   You have a right to receive a receipt at ATMs and POS terminals that accept your ATM and/or Check Cards each time you make a transaction. You will also be able to view your bank statement and transaction history on the Website.

6. In Case Of Errors Or Questions About Your Electronic Transfers.

   Telephone Customer Service, e-mail, or write Bank of Internet USA, as soon as you can if you think your online statement or receipt is wrong or if you need more information about a transfer listed on the online statement or receipt. We must hear from you NO LATER than 60 days after the problem or error has appeared on your Website statement. In your communication to us, be prepared to provide us with the following information:

   1. Your name and Account number.
   2. A description of the error or the transfer you are unsure about, why you believe it is an error or why you need more information.
   3. The dollar amount of the suspected error.

   If you initially provide this information to us via the telephone, we may require that you send your complaint or question in writing within 10 business days. We will advise you of the results of our investigation within 10 business days after we hear from you, and if we have made an error, it will be corrected promptly. If we need more time, however, we may take up to 45 days to investigate your complaint or question (90 days for transactions at a point of sale terminal or outside of the United States). If we decide to do this, we will provisionally recredit your Account within 10 days 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 questions or complaint in writing and we do not receive it within 10 business days, we may not provisionally recredit your Account. At the end of our investigation, we will advise you of the results within three (3) business days. If we determine that there was no error, we will send you a written explanation and we may debit any provisional credit, any fees, and/or interest provisionally credited in relation to the alleged error. You may ask for copies of the documents that we used in our investigation.

7. Notice Of Your Rights And Liabilities.

   TELL US AT ONCE if you believe your ATM and/or Check Card or any other Access Device has been lost or stolen or if you think your PIN or Password is no longer secure or confidential. Telephoning us is the best and fastest way of keeping your possible losses down. During business hours you may call (877) 541-2634 to report your ATM/Visa Check Card lost or Stolen.

   You can lose no more than $50.00 if someone used your Card without your permission, if you tell us within two business days. If you do NOT tell us within two business days after you learn of the loss or theft of your Card or other Access Device, and we can prove we could have stopped the unauthorized transactions if you had told us, you could lose as much as $500.00. Also if your on-line statement shows transactions that you did not make, TELL US AT ONCE. If you do not tell us within 60 days after the daily transactions (Periodic Statement) are provided to you on the Website, you may not get back any money you lost after the 60 days if we can prove that we could have prevented the transactions if you had told us in time.

   If a good reason (such as a long trip or a hospital stay) kept you from telling us, let us know. We may extend the time periods.

   If you believe that your ATM and/or Check (Debit) Cards or other Access Device has been lost or stolen or that someone has transferred or may transfer money from your Account without your permission, call Customer Service or write Bank of Internet USA Customer Service. You may also e-mail. You agree that you will not reveal your User ID, Password, PIN, or any other Access Device to any person not authorized by you to use your Access Devices; not write your PIN or Password on your ATM and/or Check Cards or on any item kept with your Access Devices; and not leave a computer terminal unattended after you have logged in using your Password or other Access Device.

8. Our Liability For Failure To Complete Transactions.

   If we do not complete a transaction from your Checking Account on time or in the correct amount, according to our agreement with you, we will be liable for your losses or damages only directly caused by this failure. However, there are some exceptions. For instance, we will not be liable if:

   1. Through no fault of ours, you do not have enough available funds in your Account, including any available overdraft line of credit, to make the transaction.
   2. The automated teller or cash dispensing machine does not have enough cash.
   3. Any terminal or system was not working properly and you knew about the breakdown when you started the transaction.
   4. Circumstances beyond our control (such as fire, flood or riot) prevent the transaction, despite reasonable precautions that we have taken.
   5. In the case of pre-authorized credits, the data from the third party is not received, is incomplete or erroneous.
9. Pre-Authorized Transfers.

   If you have arranged with us in advance to make regular periodic payments out of your designated Account using our Electronic Bill Payment Service, you can stop any of those payments by following these procedures:

   1. Sign on to the Website and cancel the future payments using the procedure as called for in the Bill Payment section.
   2. Call Customer Service, write Bank of Internet USA, or e-mail in time for us to receive your request three or more business days before the payment is scheduled to be made. If you call, we may require you to put your request in writing so that it reaches us within 14 days after your call.
10. Confidentiality.

    Please see our Privacy Policy for a complete description of our intended use and protection of your Account information.

11. Amendments.

    If you do not agree to a change or amendment to this EFT Agreement, you must notify us prior to the effective date of the change or amendment and cancel your EFT Services and surrender or destroy your Access Devices.

12. Termination.

    We may terminate EFT Services, in whole or in part, without notice, due to your default or as a security precaution. If you or we cancel this EFT Agreement you must surrender or destroy your Card or any other Access Device issued to you.

13. Liability For Authorized Use.

    If you designate an Authorized User, that person is considered your agent. As such, you are liable for all activities of that person using the Access Devices you provide to them, including ATM/Debit transactions, ACH transfers, and any other withdrawals that may overdraw your Accounts. The agency relationship can be terminated only through written notification to us of your intent to terminate the agency relationship and your retrieving the Access Devices or, in the case of any PIN, password or code, your changing that number. As a security precaution and for your protection, we will require you to close any account where the agency relationship existed and open a new account.