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 you 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.

24 Hour Phone Banking transactions - types of transactions - You may access your account by telephone using your account number(s), personal identification number (PIN) and touch tone phone to:

• transfer funds from checking to checking and savings
• transfer funds from savings to checking and savings
• make payments from checking to line of credit
• make payments from savings to line of credit
• get balance information about checking, savings, certificate of deposit or line of credit
• get withdrawal history about checking or savings
• get deposit history about checking or savings
• get transaction history about checking or savings

You may access your account for telephone transactions at the following number(s) and during the following hours:

• (507)376-4784 (24 hours)
• (888)200-7709 (24 hours)

Advantage ATM card transactions - types of transactions - You may access your account(s) by ATM using your Advantage ATM card and your account number and personal identification number (PIN) to:

• deposit funds to checking and savings
• withdraw cash from checking or savings
• transfer funds from checking or savings to checking or savings
• get balance information about checking or savings

Advantage ATM & Checkcard ATM transactions - types of transactions - You may access your account(s) by ATM using your Advantage ATM & Checkcard and your account number and personal identification number (PIN) (as applicable) to:

• deposit funds to checking or savings
• withdraw cash from checking or savings
• transfer funds from checking or savings to checking or savings
• get balance information about checking or savings

Advantage ATM & Checkcard 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

Currency Conversion - Currency Conversion - When you use your VISA-branded debit card at a merchant that settles in currency other than U.S. dollars, the charge will be converted to the U.S. dollar amount. the currency conversion rate used to determine the transaction amount in U.S. 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.

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, and online merchant does not necessarily mean that transactions are lawful in all jurisdictions in which the cardholder may be located.

Internet Banking - types of transfers - You may access your accounts by computer at www.firststatebanksw.com and using your personal identification number (PIN), social security number and User ID Number to:

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

BillPay - types of transfers -
You may access this service by computer at firststatebanksw.com and using your username and password.
You may access this service to:

• make payments from your checking account(s) to pay for goods and services.

Limits and fees - Please refer to our fee disclosure for information about fees and limitations that may apply to these electronic 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).

Termination - You may terminate the electronic fund transfer agreement by giving us written notice. For transfers you preauthorize with a third party, you should revoke authorization by appropriate notice to the third party. We may terminate the electronic fund transfer agreement by giving you written notice.

Documentation

Terminal transfers - You can get a receipt at the time you make any transfer to or from your account using one of our automated teller machines or point-of-sale terminals. 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:

• the person or company making the deposit will tell you every time they send us the money.
• you can call us at (507)376-9747 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 account9s), 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) as described in our privacy policy disclosure, provided separately.

Unauthorized Transfers

(a) Consumer liability. (1) Tell us AT ONCE if you believe your card and/or code has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You could lose all of the money in your account (plus your maximum overdraft line of credit). If you tell us within 2 business days after you learn of the loss or theft of your card and/or code, you can lose no more the $50 if someone used your card and/or code without your permission.

If you do NOT notify us within 2 business days after you learn of the loss or theft of your card and/or code and if we prove that 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(R) 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, to transactions using your Personal Identification Number, which are not processed by VISA, or to commercial cards.

(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 had been made using the information from your check without your permission.

Right to Bring Civil Action

You may bring a civil action against any person violating any provision of Minnesota Statues section 47.69 (governing consumer privacy and unauthorized withdrawals). If you prevail in such an action, you may recover the greater of your actual damages or $500. You may also be entitled to recover punitive damages, your court costs and reasonable attorney's fees.

Point-Of-Sale Transactions

Payment for goods or services made in this manner shall not affect any of the rights, protections or liabilities in existing law concerning a cash or credit sale by means other than through the use of a terminal.
You can reverse a point-of-sale transaction by giving us written notice that allows us a reasonable opportunity to act on the transfer before final payment has been made.

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.

Tell us you name and account number (if any).

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.

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 (five 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 from you and will correct any error promptly. If we need more time, however, we may take up to 45 days (90days 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 (five 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 result 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 us at:

First State Bank Southwest

1433 Oxford Street
PO Box 725
Worthington, MN 56187-0725
BUSINESS DAYS: Monday, Tuesday, Wednesday, Thursday, and Friday
Holidays are not included.
PHONE: (507)376-9747