Funds Availability Policy

Your Ability To Withdraw Funds From Your Bank of Internet USA Deposit Accounts

This policy applies to deposits into accounts that are opened at Bank of Internet USA. All deposits are processed at Bank of Internet USA's processing facility located in San Diego, CA, and are received either electronically or through the mail. Please do not send cash deposits. In the event Bank of Internet USA receives cash deposits, you agree that Bank of Internet USA's determination of the amount of the deposit will be conclusive. The Bank is responsible for mailed deposits only after the Bank has received them. The Bank is not liable for any deposits, including cash, lost in the mail. Remember: when you use the U.S. mail to make a deposit, you will need to allow extra time for the deposit to reach us.

General Policy. The Bank's policy is to make funds from certain electronic deposits available to you on the business day Bank of Internet USA receives the deposit. However, Bank of Internet USA may delay the availability of funds from your check deposits to afford us time to verify the deposit and ensure the funds are collected. During the delay, you may not withdraw the funds and Bank of Internet USA will not use the funds to pay checks you have written or other debits against the account that you have initiated, such as electronic bill payments.

Determining the Availability of a Deposit. The length of the delay is counted in business days from the day of your deposit. Every day is a business day, except Saturdays, Sundays, and federal holidays. For walk-in deposits, if Bank of Internet USA receives your deposit before 3 PM Pacific Time on a business day Bank of Internet USA is open, Bank of Internet USA will consider that day to be the day of your deposit.

Same Day Availability. Funds from electronic payments such as direct deposits of payroll will be available on the same day Bank of Internet USA receives the payment. Cash or wire transfers will be available on the day Bank of Internet USA receives the funds. Provided that the funds are received by 1 PM (PST).

Interbank Transfers initiated from your BofI Online Banking account will be made available upon actual and final credit of the funds. This is typically within 3 to 5 business days.

Next Day Availability. Funds from the following deposits on established accounts are available on the first business day after the day of your deposit:

U.S. Treasury checks payable to you
State or local government checks payable to you
Cashier's Checks payable to you
Traveler's checks payable to you
Federal Reserve Bank checks payable to you

Note: At its discretion, the Bank may decline to accept any item for deposit.

Check Deposits.

Checks are available as follows:

Checks: The first $100 from a deposit of checks will be available on the first business day after the day of your deposit. The remaining funds from a deposit of checks will be available on the second business day after the day of your deposit. For example, if you deposit a check of $700 on Monday, $100 of the deposit is available on Tuesday. The remaining $600 is available on Wednesday.

However, the first $100 of your deposit will be available on the first business day after the day of your deposit. If we are going to take longer to make all of the funds from these types of deposits available as disclosed above, we will notify you by mail or e-mail within one business day after we receive your deposit. We will also tell you when the funds will be available.

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

• The Bank believes a check you deposited will not be paid;
• You deposited 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 six months; or
• There is an emergency, such as failure of communications or computer equipment.

You will be notified by mail or e-mail if Bank of Internet USA delays your ability to withdraw funds for any of these reasons, and Bank of Internet USA will tell you when the funds will be available. They will generally be available no later than the seventh business day after the day of your deposit.

Special Rule for New Accounts. If you are a new customer, the following special rules will apply during the first thirty (30) days your account is open:

Funds from electronic direct deposits to your account will be available on the day we receive the deposit. Funds from deposits of cash and wire transfers will be available the first business day after the day of your deposit. The first $5,000 of a day's total deposits of U.S. Postal Service money orders, traveler's, cashier's, certified, teller's and federal, state and local government checks will be available the second business day after the day of your deposit, if the checks are payable to you. The excess over $5,000 will be available on the seventh (7th) business day after the day of your deposit. Funds from all other check deposits will be available on the seventh (7th) business day after the day of your deposit.

Change in Terms. The Bank will send a notice to you at least thirty (30) days before implementing a change to our availability policy, except when the change expedites the availability of funds. Then, the notice may be provided within thirty (30) days after implementation. Such notice will be delivered in accordance via email and in accordance with the provisions of the Banking Documents.

IMPORTANT CHECKING ENDORSEMENT STANDARDS FOR CONSUMER ACCOUNTS

Your compliance with Bank of Internet USA's endorsement standards is necessary to help assure that the checks you deposit will be cleared on a timely basis. Bank of Internet USA's endorsement standards are:

Customer endorsements must be placed on the reverse side of the check where indicated by preprinted format.

The remaining area of the check cannot contain any preprinted, stamped or handwritten customer information.

Some checks or drafts may require personal endorsement.

March 2010