In order to apply for Online Banking, you must consent to receive the initial Electronic Funds Transfer (EFT) disclosure electronically.

Read this notice carefully and retain a copy for your records.

This notice is being provided to you to inform you that you will receive the initial EFT disclosure and Online Banking Agreement electronically.

Security, Hardware and Software Information
Requirements are a PC or Macintosh computer, Windows 98 or newer; access to the internet; an Internet Service Provider selected by you; an internet browser that supports 128 bit encryption – acceptable browsers include either Internet 6.0 or greater or Netscape Navigator 7.2 or greater.

Withdrawing Your Consent
You may withdraw your consent to receive the initial EFT disclosure and Online Banking Agreement by exiting the online banking application session anytime prior to submitting the application. Consent cannot be withdrawn once your online banking application has been submitted.

For Your Records
In order to keep copies for your records, you will need access to a printer or the ability to download information.
     • To Print, select the print function on your browser.
     • To Download, select the Save As option from the browser File menu.

By selecting the “I Understand and Agree” button, you indicate your consent to receive the initial EFT disclosure and Online Banking Agreement electronically and that you can access them in an electronic form.
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ON-LINE BANKING AGREEMENT

This On-Line Banking Agreement (Agreement) sets forth the terms and conditions governing the provision of On-Line Banking service to you or anyone authorized by you (collectively, you, your, or yours) and describes your and our rights, responsibilities and obligations. By using the On-Line 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.

On-Line Banking Service
Eligibility
In order to activate your On-Line Banking service, you must have at least one account with us.

Access
On-Line Banking service is generally accessible 24 hours a day, seven days a week, except that it 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 On-Line Banking service at any time and for any reason without notice or refund of fees you’ve paid.

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 service including, but not limited to, any warranty or 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 ay computer virus or software-related problems which may be attributable to the services provided in connection with the On-Line Banking service.

To use the On-Line Banking service, you must complete the On-Line 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 On-Line Banking security codes will be able to access the On-Line 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!

You are responsible for keeping your PIN and account data confidential. Any person having access to your On-Line Banking service User Name and PIN will be able to perform all transactions, including reviewing Account information and making transfers to other Accounts. 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.

The following features are available via On-Line Banking:

• Make transfers between Accounts that you have with us. • Obtain Account balances. Your account balance is generally current as of 3:00  p.m. MST 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.

On-Line Banking transactions must be completed by 7:00 p.m. MST on a business day (Monday – Friday, excluding holidays) to be processed the same business day. On-Line Banking transactions completed after 7:00 p.m. MST will be processed the 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 On-Line Banking service is 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 On-Line Banking for any six-month period, 1st Bank reserves the right to disconnect your service.

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. Each owner on multiple party accounts is liable for the actions of the other owner(s) on the account.

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 person(s). The owner of the business account is liable for any parties designated (by being given a user ID and PIN) to conduct business on the account.

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

Termination
Your On-Line Banking service remains in effect until terminated by you or us. You may cancel your On-Line Banking service at any time by notifying us of your intent to cancel in writing to 1st Bank, Attn: Internet Banking, 120 2nd Street NW, Sidney, MT 59270. This cancellation applies only to your On-Line Banking service and does not terminate your other relationships with us.

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 On-Line Banking service. 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.

ELECTRONIC FUND TRANSFERS – YOUR RIGHTS AND RESPONSIBILITIES
Indicated below are types of Electronic Fund Transfers we are capable of handling, some of which may apply to your account. Please read this disclosure carefully because it tells you your rights and obligations for the transactions listed. You should keep this notice for future reference.

Electronic Fund Transfers Initiated by Third Parties – You may authorize a third party to initiate electronic fund transfers between your account and the third party’s account. These transfers to make or receive payment may be one-time occurrences or may recur as directed by you. These transfers may use the Automated Clearing house (ACH) or other payments network. Your authorization to the third party to make these transfers can occur in a number of ways. For example, your authorization to convert a check to an electronic fund transfer or to electronically pay a returned check charge can occur when a merchant provides you with notice and you go forward with the transaction (typically, at the point of purchase, a merchant will post a sign and print the notice on a receipt). In all cases, these third party transfers will require you to provide the third party with your account number and financial institution information. This information can be found on your check as well as on a deposit or withdrawal slip. Thus, you should only provide your financial institution and account information (whether over the phone, the Internet, or via some other method) to trusted third parties whom you have authorized to initiate these electronic fund transfers. Examples of these transfers include, but are not limited to:

• Preauthorized credits – You may make arrangements for certain direct deposits to be accepted into your checking or savings.
  
• Preauthorized payments – You may make arrangements to pay certain recurring bills from your checking or savings.
  
• Electronic check conversion – You may authorize a merchant or other payee to make a one-time electronic payment from your checking account using information from your check to pay for purchases or pay bills.
  
• Electronic returned check charge – You may authorize a merchant or other payee to initiate an electronic funds transfer to collect a charge in the event a check is returned for insufficient funds.

ATM Card transactions – types of transactions – You may access your account(s) by ATM at 1st Bank’s drive-up in Sidney, Larry’s IGA or Cashway Café in Broadus or any CIRRUS or PLUS NETWORK ATM’S worldwide using your ATM Card and your account number and personal identification number (PIN) to:

• withdraw cash from checking or savings
• transfer funds from checking or savings to checking or savings
• get balance information about checking or savings
• get transaction history about checking or savings
• The balance reported to ATMs includes the unused portion of your Overdraft Protection line of credit as well as any deposit account linked to your checking accounts. You may use your ATM card to obtain cash advances from the unused portion of your Overdraft Protection line of credit at an ATM. This will result in finance charges being incurred. Additional fees may also be assessed for the advance/transfer.

Some of these services may not be available at all terminals.

Debit Card ATM transactions – types of transactions – You may access your account(s) by ATM at 1st Bank’s drive-up in Sidney, Larry’s IGA or Cashway Café in Broadus or any CIRRUS or PLUS NETWORK ATM’S worldwide using your Debit Card and your account number and personal identification number (PIN) (as applicable) to:

• withdraw cash from checking or savings
• transfer funds from checking or savings to checking or savings
• get balance information about checking or savings
• get transaction history about checking or savings
• The balance reported to ATMs includes the unused portion of your Overdraft Protection line of credit as well as any deposit account linked to your checking accounts. You may use your ATM card to obtain cash advances from the unused portion of your Overdraft Protection line of credit at an ATM. This will result in finance charges being incurred. Additional fees may also be assessed for the advance/transfer.

Some of these services may not be available at all terminals.

Debit Card point-of-sale transactions – types of transactions – You may access your checking account(s) by debit card to do transactions that participating merchants will accept, including:

• purchase goods in person, by phone, or online
• pay for services in person, by phone, or online
• get cash from a participating merchant or financial institution
• The balance reported to merchants for use in POS transactions includes the unused portion of your Overdraft Protection line of credit as well as any deposit account linked to your checking account. You may use your debit card to obtain cash advances from the unused portion of your Overdraft Protection line of credit through POS transactions. This will result in finance charges being incurred. Additional fees may also be assessed for the advance/transfer.
  Visa debit/check cards are welcome everywhere that accepts Visa debit cards.

Currency Conversion – When you use your VISA® debit card at a merchant that settles in currency other than US dollars, the charge will be converted into the US dollar amount. The currency conversion rate used to determine the transaction amount in US dollars is either a rate selected by VISA from the range of rates available in wholesale currency markets for the applicable central processing date, which rate may vary from the rate VISA itself receives, or the government-mandated rate in effect for the applicable central processing date, in each instance, plus or minus any adjustment determined by the issuer. The conversion rate in effect on the processing date may differ from the rate in effect on the transaction date or posting date. Visa USA charges us a .8% International Service Assessment on all international transactions, regardless of whether there is a currency conversion. If there is a currency conversion, the International Service Assessment is 1% of the transaction. The fee we charge you for international transactions/currency conversions will appear on your monthly statement. An international transaction is a transaction where the country of the merchant is outside the USA.

Advisory Against Illegal Use – You agree not to use your card(s) for illegal gambling or other illegal purposes. Display of a payment card logo by, for example, an online merchant does not necessarily mean that transactions are lawful in all jurisdictions in which the cardholder may be located.

On-Line Banking – types of transfers – You may access your accounts by computer at www.our1stbank.com and using your personal identification number (PIN) and Customer ID to:

• transfer funds from checking or savings to checking or savings
•  make payments from checking or savings to installment loans
• get balance information about checking, savings, certificate of deposit or loans
• get transaction history about checking, savings or loans

Bill Pay – types of transfers –
You may access this service by computer at www.our1stbank.com and using your user name and password.
You may access this service to:

•  make payments from your checking account(s) to any merchant, financial institution account or individual.

Limits and fees – Please refer to our fee disclosure for information about fees and limitations that may apply to these fund transfers.

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).

Limitations on frequency of transfers – In addition to those limitations on transfers elsewhere described, if any, the following limitations apply to your savings account(s):

During any calendar month or statement cycle of at least four weeks, you may not make more than six withdrawals or transfers to another account of yours or to a third party by means of a preauthorized or automatic transfer or telephone order or instruction. If you exceed the transfer limitations set forth above in any statement period, your account will be subject to closure by the financial institution.

Documentation

Terminal transfers – You can get a receipt at the time you make a transfer to or from your account using an automated teller machine or point-of-sale terminal. However, you may not get a receipt if the amount of the transfer is $15 or less.

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 (406) 433-3212 in Sidney or (406) 436-2611 in Broadus to find out whether or not the deposit has been made.

Periodic statements – You will get a monthly account statement from us for your checking account(s). You will get a monthly account statement from us for your savings account(s), unless there are no transfers in a particular month. In any case, you will get a statement at least quarterly.

Preauthorized Payments

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 can stop any of these payments. Here is 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. If you call, we may also require you to put your request in writing and get it to us within 14 days after you call.

Notice of varying amounts – If these regular payments may vary in amount, the person you are going to pay will tell 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.

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

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, there are some exceptions. We will not be liable, for instance:

1. If, through no fault of ours, you do not have enough money in your account to make the transfer.
2. If you have an overdraft line and the transfer would go over the credit limit.
3. If the automated teller machine where you are making the transfer does not have enough cash.
4. If the terminal or system was not working properly and you knew about the breakdown when you
   started the transfer.
5. If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable
   precautions that we have taken.
6. 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.

Unauthorized Transfers

(a) Consumer liability. (1) Generally. Tell us AT ONCE if you believe your card and/or code has been lost or stolen or if you believe that an electronic fund transfer has been made without your permission using information from your check. Telephoning 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 tell us within two business days after you learn of the loss or theft of your card and/or code, you can lose no more than $50 if someone used your card and/or code without your permission.

If you do NOT tell us within two business days after you learn of the loss or theft of your card and/or code, and we can prove we could have stopped someone from using your card and/or code without your permission if you had told us, you could lose as much as $500.

Also, if your statement shows transfers that you did not make, including those made by card, code or other means, 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 a hospital stay) kept you from telling us, we will extend the time period.

(2) Additional Limit on Liability for VISA® card. Unless you have been grossly negligent or have engaged in fraud, you will not be liable for any unauthorized transactions using your lost or stolen VISA card. This additional limit on liability does not apply to ATM transactions, or to transactions using your Personal Identification Number which are not processed by VISA.

(b) Contact in event of unauthorized transfer. If you believe your card and/or code has been lost or stolen, call or write us at the telephone number or address listed in this disclosure. You should also call the number or write to the address listed in this disclosure if you believe a transfer has been made using the information from your check without your permission.

Error Resolution Notice

 In Case of Errors or Questions About Your Electronic Transfers, Call or Write us at the telephone number or address listed in this disclosure, as soon as you can, if you think your statement or receipt 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 10 business days.

We will determine whether an error occurred within 10 business days (5 business days if the transfer involved a point-of-sale transaction and 20 business days if the transfer involved a new account) after we hear form you and will correct any error promptly. If we need more time, however, we may take up to 45 days (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 the transfer involved a point-of-sale transaction and 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. Your account is considered a new account for the first 30 days after the first deposit is made, unless each of you already has an established account with us before the account is opened.

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.

If you have inquiries regarding your account, please contact 1st Bank at your branch in:

• 120 2nd Street NW Sidney, MT 59270 Phone (406)433-3212
  PO Box 347 Broadus, MT 59317 Phone (406)436-2611
  BUSINESS DAYS: Monday, Tuesday, Wednesday, Thursday, and Friday
  Holidays are not included.
  Hours 8:00 a.m. to 5:00 p.m. MST

Other Terms

ONLINE BANKING FEES: Online Banking Service is free.

BILL PAY FEES for CONSUMERS: FREE to customers in Personal Checking, Interest Checking, and Senior accounts. Basic Checking and 1st Free Checking accounts will be charged $5.95/month, which includes 25 transactions, $.40 each transaction thereafter. First 3 months are FREE.

ADDITIONAL CHARGE FOR CUSTOMER REQUESTED BILL PAYMENT SERVICES:
These charges will only be assessed if you request one or more of the services listed here.

Written Correspondence to Merchant…...$10.00

Per proof of Payment not Necessitated by a dispute…..$10.00

Per payment cancelled after cut-off time and prior to disbursement…..$7.50

Payments returned due to a customer error…..$5.00

ACH return fee….. $10.00

Letter mailed Express Mail…..$15.00

1st Bank reserve the right to charge you for research time involving bill payments no longer available in your screen history. You will be informed of any such charges before they are incurred. Bill Payment service fees will be deducted monthly from the Account that you designate as your bill Payment Account.

You should note that depending on how you access the Internet Banking Service, you may incur other charges. These include charges for normal checking account fees and service charges. For savings and money market deposit accounts, an excess transaction fee may apply to each transaction made through Internet Banking or Bill Payment that exceeds the number of limited transactions you may make each statement period. These fees are described in your Account Agreement and related documents. All deposits made to the account, including any federal benefits deposited electronically, are subject to repayment of overdrafts.