This Internet Banking Customer Agreement (Agreement) sets forth the terms and conditions governing the provision of Internet Banking services to you or anyone authorized by you (collectively, you, your, or yours) and describes your and our rights, responsibilities and obligations.  By using the Internet Banking service, you agree to the terms and conditions of this Agreement, which are in addition to those that apply to any accounts you have with 1st Bank.

Definitions

“Account” means a checking, savings, or money market deposit account that you have with us.

“Account Access” means your ability to access account and transaction information on Accounts and transfer funds between Accounts through the Internet.

“Account Agreement” means the agreement between you and us that governs the use of your Account, including the deposit account agreement, any funds availability agreement, electronic funds transfer agreement or disclosure, line of credit agreement, and our schedule of fees and charges.

“Business Day” for online banking transactions means Monday through Friday 8:00 am to 7:00 p.m.  Holidays are not included.

“Electronic” means electrical, digital, magnetic, wireless, optical or electromagnetic technology that entails similar capabilities.

“Internet Banking Service” means collectively Online Banking and Bill Payment services.

“PIN” means the personal confidential identification number or password assigned to you by us or selected by you for identification purposes in connection with the use of our Internet Banking Services.

“Transfer” means any electronic banking transaction, including a deposit, withdrawal or bill payment request submitted electronically.

Setup and Use of Internet Banking Services

Eligibility

In order to activate your Internet Banking Services, you must have at least one Account with us, and you must have Internet Access established.

Access

Internet Banking Services are generally accessible 24 hours a day, seven days a week, except that they may be inaccessible for a reasonable period on a daily basis for system maintenance.  We are not liable for failure to provide access due to system failure or other unforeseen acts.  We may modify, suspend, or terminate access to the Internet Banking Services at any time and for any reason without notice or refund of fees you’ve paid.

Equipment Requirements

To use the Internet Banking Services, you need a computer with a modem and a current version web browser (MS Internet Explorer 5.0 or higher).  You are responsible for the set-up and maintenance of your computer and modem.  We are not responsible for any errors or failures from any malfunction of your computer or any virus or other problems related to the use of the Internet Banking Services.

Limitation of Liability

Warranties of Fitness and Merchantability

NEITHER WE, NOR ANY INFORMATION PROVIDERS MAKE ANY WARRANTY, EXPRESS OR IMPLIED, TO YOU CONCERNING THE SOFTWARE, EQUIPMENT, BROWSER OR OTHER SERVICES INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR PARTICULAR PURPOSE OR NON-INFRINGEMENT OF  THIRD-PARTY RIGHTS, UNLESS DISCLAIMING SUCH WARRANTY IS PROHIBITED BY LAW.

Computer-related Warranties

Neither we nor any information provider is liable for any computer virus or software-related problems which may be attributable to the services provided in connection with the Internet Banking Services.

Online Banking Service

To use the Online Banking Service, you must complete the Online Banking Registration form.  We will issue you an Access ID and Password (also referred to as PIN).  You are required to change your PIN at your initial Log In. You are responsible for keeping your PIN and Account data confidential. Any person having access to your Online Banking security codes will be able to access the Online Banking Services and perform all transactions, including reviewing account information and making transfers to other Accounts.

 

                                      >>>GUARD YOUR  PIN---IT IS YOUR MONEY AND YOUR LOSS!<<<

We are entitled to act on transaction instructions received using your PIN and the use of your PIN will have the same effect as your signature authorizing the transaction.  If you authorized other persons to use your PIN in any manner, your authorization will be considered unlimited in amount and manner until you have notified us in writing that you have revoked the authorization and changed your PIN, and you are responsible for any transactions made by such persons until you notify us that transfers by that person are no longer authorized and we have a reasonable opportunity to act upon the change of your PIN.

The following features are available via Online Banking:

*  Make transfers between Accounts that you have with us.

*  Obtain Account balances.  Your Account balance is generally current as of 2:00 p.m. the previous Business Day.  Your Account balance may show funds that have been credited to your Account but that are not yet available for withdrawal, as well as reflect current day transactions.

*  Review transactions on your Accounts since your last statement cycle.

*  Make stop payment requests.

*  Send e-mail messages to us.  E-mail may not, however, be used to initiate transactions on your Accounts or stop payment requests.

*  Make an installment loan payment and obtain loan account balances.

*  Download Account information in Quicken or MS Money format.

We process a funds transfer on the same Business Day as we receive your instruction.  If we receive your instruction after the end of our Business Day, or if the date of your request is not a Business Day, we will process the transaction on our next Business day.  We may refuse to act on your funds transfer instruction if sufficient funds, including funds available under any overdraft plan, are not available in your account on the date you want us to transfer funds.

These activities are limited to the extent noted below and in the agreements governing your various accounts.  Your ability to transfer funds from savings and money market deposit accounts using the Online Banking Services are subject to the limitations described in the applicable account agreements.  You should refer to these agreements for restrictions and service charges.

Please note that if you do not access your accounts via 1st Bank Online for any six-month period, 1st Bank reserves the right to disconnect your service.

Fees

The current fee for Online Banking Service is FREE.  

Parties Responsibilities

Consumers Responsibilities 

Authorized Use of the Services by Other Persons

You are responsible for keeping your PIN and account data confidential. Any person having access to your Online Banking Service and Bill Payment Service User name and PIN will be able to access the Internet Banking Services and perform all transactions, including reviewing Account information and making transfers to other Accounts. If you make your personal identification number readily available for discovery in connection with the loss or theft of your PIN, you do not tell us within 2 business days after you learn of the loss or theft of your PIN, and we can prove we could have stopped someone from using your PIN without your permission if you had told us, you could lose as much as $500.00.   Your PIN can be used to expend funds from your account and this code must be safeguarded.  We are entitled to act on transaction instructions received using your PIN, and you agree that the use of your PIN will have the same effect as your signature authorizing the transaction.  If you authorized other persons to use your PIN in any manner, your authorization will be considered unlimited in amount and manner until you have notified us in writing that you have revoked the authorization and changed your PIN, and you are responsible for any transactions made by such persons until you notify us that transfers by that person are no longer authorized and we have a reasonable opportunity to act upon the change of your PIN.

If you have a business account, you are liable for all transactions that occur on the account.  The owner of the business account authorizes all transactions made by any other persons.  The owner of the business account is liable for any parties designated (by being given a User ID/Subscriber ID and PIN) to conduct business on the account(s).

For multiple party accounts, each person on a multiple party account will be liable for all transactions made by any other signer(s) on the account(s).  Each owner(s) on multiple party accounts(s) are liable for the actions of the other owner(s) on the account(s).

The limitations of liability set forth in this Agreement are subject to, and limited by any state or federal law to the contrary.

Reporting Unauthorized Transactions

You should notify us immediately if you believe your PIN has been lost or stolen or that someone has transferred or may transfer money from your account without your permission or if you suspect any fraudulent activity on your account.  At any time you may choose to change your PIN.  To notify us, call Customers Services at (406) 433-3212, send us a message through our website services, or write 1st Bank Attn: Internet Banking, 120 2nd Street NW, Sidney, Montana 59270 as soon as you can.

Our Responsibilities

Our responsibilities for Processing Transactions.

If we do not complete a transfer to or from your Account (or cancel a transfer properly requested) on time or in the correct amount according to our agreement with you, we may be liable for consequential losses or damages.

Limitations of Our Responsibility for Processing Transactions.

There are some exceptions to our liability for processing transactions on your Accounts.  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 funds in your Account were attached or the transfer cannot be made because of legal restrictions affecting your account;

                If the systems were not working properly and you knew about the breakdown when you started the transfer;

If circumstances beyond our control (such as interruption of telephone service or telecommunication facilities, or natural disaster such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken;

                If you have not provided us with complete and correct payment information, including without limitation the name, address, account

number and payment amount for the Merchant on a bill payment;

If you have not properly followed the instructions for using the Internet Banking Services;

If your operating system or software was not properly installed or functioning properly; or;

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

Our sole responsibility for an error in a transfer will be to correct the error, but in no case will we be liable for any indirect, special, incidental, or consequential damages.  In states, which do not allow the exclusion or limitation of liability for indirect, special incidental, or consequential damages, our liability is limited to the extent permitted by applicable law.

Changes in Terms and other Amendments

We may amend this agreement (including changes in fees and charges) by notice mailed to you at the last address shown for the Account on our records or as otherwise permitted by law.  Your continued use of the Internet Banking Services constitutes your agreement to the amendment(s).

Termination

Your Internet Banking Services remain in effect until terminated by you or us.  You may cancel your Internet Banking Services at any time by notifying us of your intent to cancel in writing to 1st Bank Attn: Internet Banking, 120 2nd Street NW, Sidney, Montana 59270.  This cancellation applies only to your Internet Banking Services and does not terminate your other relationships with us.  1st Bank is not responsible for any fixed payment made before 1st Bank has a reasonable opportunity to act on your termination notice.  You remain obligated for any payments made by 1st Bank on your behalf.

 

Other Provisions

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of Montana without regard to conflict of law provisions.  Your existing Account relationships shall continue to be governed by and construed in accordance with the laws as disclosed in such Account agreements.

Scope of Agreement

This Agreement represents our complete agreement with you relating to our provision of the Internet Banking Services.  No other statement, oral or written, including language contained in our website, unless otherwise noted, is part of this Agreement.

Assignment and Delegation

The Customer may not assign this Agreement.  The Bank may assign this Agreement to any affiliate of the Bank.  The Bank may delegate its duties under this Agreement to third parties.

Headings

The headings of the paragraphs of this Agreement are for convenience and reference and shall not affect its construction or interpretation.

 

Your Privacy is Important to Us

Trust is the basis of each customer’s relationship at 1st Bank.  As a customer of 1st Bank, you provide us with important information about yourself. We believe it is our responsibility to safeguard your personal and financial information.

 

NOTICE OF YOUR FINANCIAL PRIVACY RIGHTS

We, our, and us, when used in this notice, means 1st Bank.

When we use the words “you” and “your” we mean the following types of customers:

w      All of our consumer customers who have a continuing relationship with us, such as:

w         Deposit account

w         Credit card

w         Loan account

w         Safe deposit box

w      All IRA accounts for which we act as custodian

We will tell you the sources for nonpublic personal information we collect on our customers.  We will tell you what measures we take to secure that information.

We first define some terms.

        Nonpublic personal information means information about you that we collect in connection with providing a financial product or service to you.  Nonpublic personal information does not include information that is available from public sources, such as telephone directories or government records.

        An affiliate is a company we own or control, a company that owns or controls us, or a company that is owned or controlled by the same company that owns or controls us.  Ownership does not mean complete ownership, but means owning enough to have control.

        A nonaffiliated third party is a company that is not an affiliate of ours.

 

THE INFORMATION THAT WE COLLECT

 

We collect nonpublic personal information about you from the following sources:

w        Information we receive from you on applications or other forms

w        Information about your transactions with us

w        Information about your transactions with nonaffiliated third parties

w        Information from a consumer reporting agency

 

We do NOT disclose any nonpublic personal information about you to anyone, except as permitted by law.

 

THE CONFIDENTIALITY, SECURITY,

AND INTEGRITY OF YOUR NONPUBLIC

PERSONAL INFORMATION

 

We restrict access to nonpublic personal information about you to those employees who need to know that information to provide products or services to you.  We maintain physical, electronic, and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

 

NONPUBLIC PERSONAL INFORMATION

AND FORMER CUSTOMERS

We do not disclose nonpublic personal information about former customers, except as permitted by law.