Lake Community Bank

Lake Community Bank
ON-LINE BANKING AGREEMENT AND DISCLOSURE

This Internet Banking Agreement and Disclosure (“Agreement”) describes your rights and obligations as a user of the On-Line Banking Service or the Bill Payment Service (“Services”). It also describes the rights and obligations of Lake Community Bank (“Bank”). Please read this Agreement carefully. By requesting and using one of these Services, you agree to comply with the Terms and Conditions of this Agreement.

DEFINITIONS:
The following definitions apply in the Agreement:
“Access ID” is the bank generated identification code assigned to you for your connection to the Service;
“Authorized Representative” refers to a person with authority (with respect to the Account);
“Bill Payment” is the On-Line Service that enables the payment of bills using a personal computer;
“Bill Payment Service” means the bill payment service offered by Lake Community Bank. Payments may be made to the payee electronically or by mailing a check;
“Business Day” is every Monday through Friday, excluding Federal Reserve holidays;
“Internet Enabled Device” means your electronic device, which enables you, with an internet browser and ISP, to access your On-Line Account.
“ISP” refers to your Internet Service Provider;
“On-Line Account” means any Bank account from which you will be conducting transactions using a Service;
“Password” is the customer-generated code selected by you for use during login that establishes your connection to the Service;
“Primary Account” is the checking account from which all fees will be automatically debited;
“Service” means the On-Line banking services offered by Lake Community Bank;
“Time of day” references are to Central Standard Time;
“We”, “us”, or “Bank” refer to Lake Community Bank which offers the Services and which holds the accounts accessed by the Service, and;
“You” or “Your” refers to the owner of the account or authorized representative.

Access to Service
You may gain access to your On-Line Account though the use of your Internet Enabled Device, your ISP, your Password and your Access ID. You may access your On-Line Account 24 hours a day, seven (7) days a week. However, availability of Services may be suspended for periods of time for purposes of maintenance, updating and revising software.
For purposes of conducting transactions, all requests received after 3:00 P.M. on Business Days and all transactions on Saturday’s, Sunday’s or Federal Reserve holidays, will be processed on the Bank’s next Business Day. The Bank’s Business Day begins at 8:00 A.M.

On-Line Banking Transactions
Account Access – You may access an unlimited number of bank accounts. Transfer of Funds – In addition to viewing account information, you may use On-Line Banking to conduct the transfer of funds. You may conduct an Express Transfer (same day) or schedule future or recurring transfers. You may transfer funds to/from your checking accounts, savings accounts and money market accounts and make loan payments. Because Federal Regulations require the Bank to limit preauthorized debits, including On-Line Banking, the following limitations will apply

Savings Accounts – You may make no more than six (6) transfers per month by preauthorized or automatic transfer or by telephone or by Debit Card or On-Line Banking.

Money Market Accounts – You can make no more than six (6) transfers per month by preauthorized or automatic transfer or by telephone or On-Line Banking and no more than three (3) of these may be by check, draft or debit card.

If there are insufficient funds in the account, we will not complete the transfer. However, future recurring transfers will not be impacted.

Additional Services – New services may be introduced for On-Line Banking from time to time. The Bank may notify you of the existence of any new Service offering. By using these Services when they become available, you agree to be bound by the rules that will be made available to you concerning these Services.

Schedule of Fees – Internet Banking is available to you free of charge. Fees may be associated with services accessed via online banking. See current fee schedule for applicable fees.

Statements – You will continue to receive your regular account statement either monthly or quarterly, depending on the type of account.

Use of your Password – You are responsible for keeping your Password and On-Line Account information confidential. As a security measure, the bank will never ask you for your password. In order to protect yourself against fraud, you should adhere to the following guidelines:

Do not give out your account information, Password or Access ID;
Do not leave your internet enabled device unattended while you are accessing the Bank’s On-Line Banking Site;
Never leave your account information within the range of others; and
Do not send privileged account information on any public or general e-mail system.

If you believe your Password has been lost or stolen, or if you suspect any fraudulent activity on your account, call the Bank immediately at 952-473-7347 between the hours of 8:00 A.M. and 4:00 P.M. on Business Days. Telephoning the Bank is the best method to minimize your losses and liability.

If you believe your Password has been stolen, please use the Change Password feature under the Options Tab within On-Line Banking to change your password and notify the bank immediately.

Electronic Mail (E-Mail) – If you send the Bank an e-mail message, the Bank will be deemed to have received it on the following Business Day. You should not rely on e-mail if you need to report an unauthorized transaction from one of your accounts or if you need to stop a payment that is scheduled to occur. E-mail transactions outside of the On-Line Banking Site are not secure. Do not send or ask for sensitive information such as account numbers, Passwords, account information, etc. via any general or public e-mail system.

Bill Payment Services;

Definitions:
“Bill Payment” is the On-Line Service that enables the payment of bills using an Internet Enabled Device;

“Bill Payment Account” is the checking account from which bill payments will be debited;

“Bill Payment Service” means the bill payment service offered by Lake Community Bank. Payments may be made to the payee electronically or by mailing a check;

“Biller” is the person or entity to which you wish a bill payment to be directed or is the person or entity from which you receive electronic bills, as the case may be;

“Due Date” is the date reflected on your Biller statement for which the payment is due; it is not the late date or grace period;

“Payment Account” is the checking account from which all Service fees will be automatically debited

“Scheduled Payment” is a payment that has been scheduled through the Service but has not begun processing;

“Scheduled Payment Date” is the day you want your Biller to receive your bill payment and is also the day your Bill Payment Account will be debited, unless the Scheduled Payment Date falls on a non-Business Day in which case it will be considered to be the previous Business Day.

Description of Service:
The Bill Payment Service permits you to use your Internet Enabled Device to direct payments from your designated On-Line Bill Payment Account to third parties you wish to pay. Through the Bill Payment Service, you can pay bills from your Bill Payment Account to businesses or individuals.

All payments you make will be deducted from the account you designate as your Bill Payment Account for the Bill Payment Service. Any payments you wish to make through this Service must be payable in U.S. Dollars to a payee located in the continental United States. We reserve the right to restrict types of payees to whom payments may be made using the Service from time to time. You should not use the Bill Payment Service to make payments to settle securities purchases, payments to interest bearing accounts, tax payments or court ordered payments. Payments for these payees will be your sole responsibility if delayed or improperly processed or credited.

Scheduling Payments
Funds must be available in your Bill Payment Account on the Scheduled Payment Date. If the date you schedule a payment to be initiated falls on a non-Business Day, funds must be available in your Bill Payment Account the previous Business Day. After funds are withdrawn from your Bill Payment Account to make a payment, we may make the payment either by transferring funds electronically to the payee or by mailing the payee a check.

You may choose to schedule payments to recur in the same amount at regular time intervals. When you create a new payee in the Bill Payment Service, it takes up to three (3) Business Days, not including the day the payee was created, to set up the payee to receive payments. You should schedule a payment to a new payee at least ten (10) business days before any payment due date.

For all subsequent payments, you agree to allow at least three (3) to five (5) business days between the date you schedule a payment to be initiated and the payment due date (that is, the due date shown on your invoice or provided in your agreement with the payee, not taking into account any applicable grace period). If the payment is an Automatic Clearing House (ACH) electronic payment, it will take up to three (3) business days to reach the payee. However, if the company or person that you are paying cannot accept an electronic payment, the Bill Payment Service will send a check that may take up to five (5) business days. If you do not follow these time frames, you will be fully responsible for all late fees, finance charges or other actions taken by the payee. If you schedule your payment and follow all instructions provided, but the payment is not received by the payee in a timely manner, the Bank will work with the payee on your behalf to reverse any late fees or charges.

No Duty to Monitor Payments:
The Bank is only responsible for exercising ordinary care in processing and sending payments upon your authorization in accordance with this Agreement. The Bank will not be liable in any way for damages you incur for any of the following reasons:

Insufficient funds in your Bill Payment Account to make the payment on the processing date;
Delays in mail delivery;
Changes to the payee’s address or account number unless we’ve been advised of the change in advance;
The failure of any payee to correctly account for or credit the payment

in a timely manner, or

Any other circumstances beyond the control of the Bank.

If the session during which you schedule a payment or transfer ends by 3:00 p.m., the Bank will be considered to have received it on that day. Otherwise, it will be considered received on the following Business Day. For all entries made using the Services, the time recorded by the On-Line Banking Service will be considered the official time of the transaction.

If your Bill Payment Account does not have sufficient funds to make a payment as of the date the payment is debited from your account, the payment may not be completed. The Bank will attempt to notify you by e-mail or U.S. Postal Mail, but the Bank shall have no obligation or liability if it does not complete a payment because there are insufficient funds in your account to process a payment. In all cases, you are responsible to either make alternate arrangements for the payment or reschedule the payment through the Service. In the case of fixed payments, only the payment currently scheduled will be impacted. Fixed payments scheduled for future dates will not be affected.

Cancel or Change Payment Instructions:
Payments may be changed or canceled up through the business day the transaction is scheduled to be initiated prior to payment processing start. To cancel a payment, call or write us at the number listed in this agreement in time for us to receive your request three (3) 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 fourteen (14) days after you call. We may charge you $30.00 for each canceled payment order you request.

If you order us to cancel one of these payments three (3) business days before the transfer is scheduled, and we do not do so, we will be liable for you losses or damages.

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 log on to your online banking account or call us at 952-473-7347 to find out whether or not the deposit has been made.

Periodic Statements – You will get a monthly account statement for your Checking and Money Market Savings accounts. You will get a monthly account statement for all other Savings accounts, unless there are no transfers in a particular month. In any case, you will get a statement at least quarterly.

No Signature Required:
When any payment or other On-Line Service generates items to be charged to your account, you agree that we may debit your Bill Payment Account without requiring your signature on the item and without prior notice to you.

Multiple Person Bill Payment Accounts:
If more than one person has access to a Bill Payment Account, each person may individually enroll in the Bill Pay Service. Each enrolled person needs a unique password. Each individual may terminate her/his enrollment in the Bill Payment Service without affecting the Service forany other person enrolled in that Bill Payment Account.
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Business Accounts:

If you are a business, any Authorized Representative of your business is authorized on such terms, conditions, and agreements as we may require to:

Enter into this Agreement, as amended from time to time;
Access each account of yours in any manner and forany purpose available through the Service, whether now available or available at some time in the future; and
Use any On-Line Banking service in any manner and forany purpose available through the Service, whether now available or available at some time in the future.

Term and Termination:
Term - This Agreement will become effective on the Effective Date and shall
remain in full force and effect until termination in accordance with the following
provisions:

Termination for Cause - We may immediately terminate your on-line banking privileges (including the Bill Payment Service) without notice to you under the following circumstances:

You do not pay any fee required by this Agreement when due; or
You do not comply with the agreement governing your deposit or

loan accounts or your accounts are not maintained in good standing.

You may be notified if we terminate this Agreement or your use of the Services for any other reason.

Termination for Convenience -To terminate this Agreement, you must notify the Bank and provide your name, address, the Service(s) you are discontinuing, and the termination date of the Service(s). When Bill Payment is terminated, any prescheduled bill payments made through Internet Banking will also be terminated. Your final charge for the Bill Payment Service will be assessed at the end of your statement cycle. You may notify the Bank by one of the following methods:

By sending an e-mail to customerservice@lcbankmn.com;
By calling 952-473-7347
By writing a letter and mail it to the following address:

Lake Community Bank
1964 West Wayzata Boulevard
P. O. Box 636
Long Lake, MN 55356

Or by giving it to a Customer Service Representative at any of the Bank’s locations.

If you are not paying a monthly service charge for any Service offered, we may convert your account to inactive status if you do not sign on to the Service or have any transaction scheduled through the Service during any consecutive 90-day period. If your account is considered inactive, you must contact us to have the Service activated before you will be able to schedule any transaction through the Service.

Electronic Fund Transfer Provisions for Consumers:
Applicability - These provisions are only applicable to online electronic fund transfers that credit or debit a consumer's checking, savings or other asset account and are subject to the Federal Reserve Board's Regulation E (an"EFT"). When applicable, the Bank may rely on any exceptions to these provisions that are contained in Regulation E. All terms that are not defined in this Agreement but which are defined in Regulation E shall have the same meaning when used in this section.

Your Liability – The following determines your liability for any unauthorized EFT or any series of related unauthorized EFT’s:

If you notify the Bank within two (2) business days after your password was lost or stolen, your liability will not exceed $50.00 or the amount of the unauthorized EFT’s that occur before notification, whichever is less;
If you fail to notify the Bank within two (2) business days after your password was lost or stolen, your liability will not exceed the lesser of $500.00 or the total of:

$50.00 or the amount of unauthorized EFT’s that occur within the two (2) Business Days; and
The total of unauthorized EFT’s which occur after the two (2) Business Days, provided the Bank establishes that these EFT’s would not have occurred had the Bank been notified within the two-day period.

You must report an unauthorized EFT that appears on your periodic statement no later than 60 days of transmittal of the statement to avoid liability for subsequent transfers. If you do not tell us within 60 days, you may not get back any money you lost after 60 days if the bank establishes that EFT’s would not have occurred had the Bank been notified within the 60 day period. You may also be liable for the amounts as described above.

If the report is made orally, we may require that you send the complaint or question in writing within ten (10) Business Days. We will notify you with the results of the investigation within ten (10) Business Days and will correct any error promptly. If more time is needed, we may take up to forty-five (45) calendar days to investigate a complaint or question. If this occurs, we will credit your account within ten (10) Business Days for the amount you think is in error. This will allow you to use the money during the time it takes us to complete our investigation. If your complaint or question is not received in writing within ten (10) Business Days, we will not credit your account until the investigation is completed. For errors involving new accounts, point-of-sale, or foreign initiated transactions, we may take up to ninety (90) days instead of forty-five (45) to investigate your complaint or question. For new accounts, we may take up to twenty (20) business days (instead of 10) to credit your account for the amount you think is in error. If we determine that no error occurred, we will send you a written explanation within three (3) Business Days after the investigation is complete. You may request copies of the documents that were used in the investigation.

You may notify the Bank by telephone, writing, or by email. Notification by general e-mail to report an unauthorized transaction is not secure and therefore not advised.

Telephone Numbers and Addresses – For On-Line Banking or if you believe your password has been lost or stolen, call 952-473-7347 or write us at:

Lake Community Bank
1964 West Wayzata Boulevard
Post Office Box 636
Long Lake, MN 55356

In case of errors or questions regarding Bill Payment, call 1-866-558-0962 between the hours of 6:30 a.m. and 10:00 p.m., Monday through Friday.

We must hear from you no later than 60 days after we send you the FIRST statement on which the problem or error appeared. We will need:

Your name and account number
A description of the error or the transfer in question and an explanation concerning why you believe it is an error or need information
The dollar amount of the suspected error and date on which it occurred.

Liability:

Our Liability - This section explains our liability to you only to the extent that any other agreements, notices or disclosures have not separately disclosed our liability. In no event shall we be liable to you for failure to provide access to On-Line Banking or Bill Payment Service accounts. Unless otherwise required by applicable law, we are only responsible for performing the On-Line Banking and Bill Payment services as delineated in this Agreement. We will be liable for the amount of any material losses or damages incurred by you and resulting directly from our gross negligence. We will not be liable to you in the following instances:

If through no fault of the Bank, you do not have enough money in your account to make the transfer.
If circumstances beyond our control (such as fire, flood, power outage, equipment or technical failure or breakdown) prevents the transfer despite reasonable precautions we have taken.
If there is a hold on your account or if access to your account is blocked in accordance with banking policy.
If your funds are subject to a legal proceeding or other encumbrance is restricting the transfer.
If your transfer authorization terminates by operations of law.
If you believe someone has accessed your accounts without your permission and you fail to notify the Bank immediately.
If you have not properly followed instructions on how to make a transfer as described in this Agreement.
If we receive incomplete or inaccurate information from you or use a third party involving the account transfer.
If we have a reasonable basis for believing that unauthorized use of your Password or account has occurred or may be occurring or if you default under the terms of this Agreement, the deposit account agreement, a credit agreement or any other agreement with us, or if we or you terminate this Agreement.

IN NO EVENT SHALL WE HAVE ANY LIABILITY TO YOU OR ANY THIRD PARTY FOR ANY INDIRECT, SPECIAL CONSEQUENTIAL DAMAGES RESULTING FROM OR ARISING OUT OF THIS AGREEMENT.

Indemnification - You agree to indemnify, defend and hold us, our affiliate companies, directors, officers, employees and agents harmless against any third party claim, demand, suit, action or other proceeding and any expenses related to an On-Line Banking or Bill Payment account.

Third Parties - We are not liable for any loss or liability resulting from any failure of your equipment or software, or that of any internet browser provider such as Netscape (Netscape Navigator browser) or Microsoft (Microsoft Explorer browser), by an internet access provider, or by an online service provider, nor will we be liable for any direct, indirect, special or consequential damages resulting from your access to or failure to access an On-Line Banking or Bill Payment account.

Virus Protection – The Bank is not responsible for any electronic virus or viruses that you may encounter. We suggest that you routinely scan your PC using a virus protection product. An undetected virus may corrupt and destroy your programs, files and your hardware.

General Terms and Conditions:

Bank Agreements - In addition to this Agreement, you and the Bank agree to be bound by and comply with the requirements of the agreements applicable to each of your On-Line Accounts. Your use of the On-Line Banking Service or the Bill Payment Service is your acknowledgment that you have received these agreements and intend to be bound by them. You should review other disclosures including the charges that may be imposed for electronic funds transfers or the right to make transfers listed in the fee schedules accompanying those disclosures and the fee schedule contained in this Agreement. We will automatically deduct the fees related to this Service from your Bill Payment Account each month.

Changes and Modifications - The Bank may modify the terms and conditions applicable to the Services from time to time. We may send any notice to you via e-mail and you will have been deemed to have received it three (3) days after it is sent. The revised terms and conditions shall be effective at the earliest date allowed by applicable law. We reserve the right to terminate this Agreement and your use of the Services in whole or in part at any time without prior notice.

Assignment - We may assign this Agreement to an affiliate of the Bank or any successor in interest in the event of a merger, reorganization, change of control, acquisition or sale of all or substantially all assets of the business to which this Agreement is related without the other party's prior written consent.

Notices - Unless otherwise required by applicable law, any notice or written communication given pursuant to this Agreement may be sent to you electronically.

Disclosure of Information - We will only disclose information to third parties about your account or transfers you make under the following circumstances:

where it is necessary for the provision of On-Line Banking and for completing transfers;
in order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant;
in order to comply with the government or court orders, or other reporting requirements;
if you give us permission;

Governing Law – This Agreement is governed by the laws of the State of Minnesota and applicable federal law.