ONLINE BANKING AGREEMENT
Online Banking Account Access Agreement

General
This Online Banking Agreement (Agreement) for accessing your Elsa State Bank, account(s) via the Internet explains the terms and conditions of online access. These terms and conditions govern the Online Banking Services offered through Elsa State Bank. By clicking the "I Agree" button below, signing the Online Banking Account Access Application, or using the Elsa State Bank Online Banking Service, you agree to abide by the terms and conditions of this Agreement.

Each of your accounts governed by their respective contracts, disclosures of account terms, borrowing agreements, notes, applicable fee schedules, and any other agreement evidencing the terms and conditions of your accounts (collectively, "Account Agreements".) If any provision of this agreement is in conflict with the Account Agreements, the Account Agreements shall prevail.

For purposes of this agreement, the terms "our", "we", "us", and "Bank" refer to Elsa State Bank. The terms "you" and "your" refer to each owner or signer for the deposit or loan account(s) at Elsa State Bank which will or are accessed through the Online Banking portion of Elsa State Bank’s web site, whether they be for personal or business purposes.

Accessing Your Account and Fees for Service
To access your account(s) through the Online Banking Service, you must have an eligible Elsa State Bank account, enroll in the Service, have a User ID and password, and obtain the Internet browser software that may be required by the Bank from time to time.

There are currently no separate monthly or transaction fees assessed by the Bank for use of the Online Banking Service. However, the fees associated with your accounts, as described in the Account Agreements will apply to services ordered online and to transfers from a credit account.

You may incur fees or charges from others for software, installation or services to provide you Internet access. You agree to be responsible for these charges and any telephone charges incurred, or any charges assessed by your Internet Service Provider for accessing your accounts through the Internet.

Balance Inquiries and Transfers
You may use the Online Banking Service to check the balance of your accounts and to transfer funds among your Elsa State Bank electronic accounts. In order to initiate one of these transactions, you must first use your password to obtain access to the Service. The balance shown on your online account may include deposits still subject to verification by us. The balance shown also may differ from your records because it may not include deposits in progress, outstanding checks, or other withdrawals, or charges. A funds transfer request will not result in immediate funds availability because of the time required to process the files. The deadline for funds transfer requests is 2:00 P.M. Central Time for same bank business day availability. Any funds transfer request received after 2:00 P.M. Central Time may not be processed until the following bank business day. If there are insufficient available funds in an Account from which you are requesting a funds transfer, the transfer will not be initiated. For monetary transfers, the accounts must have the same password and must belong to the same "household" of accounts.

Protecting Your Account
By giving you online access to your account, you assume joint responsibility, with the Bank, for the protection of your account and personal information.  We will do the following to protect your account and personal information:

As an Elsa State Bank Online Banking user, you agree to do the following:

Preventing Unauthorized Access to Your Account
You are responsible for keeping your password, account numbers and other account data confidential. If you believe that your password has been compromised, or that someone has transferred or may transfer money from your account without your permission, notify us immediately.

Your password verifies your identity and provides access to your account. You must be actively involved in protecting your password. You can protect your password by doing the following:

Your Liability for Unauthorized Transfers from Personal Accounts
If your Online Banking password has been compromised and you tell us within two (2) bank business days after learning of the loss or theft, you can lose no more than $50 if someone used your password without your permission to access an Elsa State Bank account. If you do NOT tell us within two (2) bank business days after you learn of the loss or theft, and we could have stopped someone from taking money without your permission had you told us, you could lose as much as $500 of the disputed amount. (Bank business days are Monday through Friday, except federal or state holidays.)

If your monthly statement shows withdrawals, transfers or purchases that you did not make or authorize, you must notify us at once. If you do not notify us within sixty (60) days after the statement was transmitted or mailed to you, and we could have stopped someone from taking money if you had told us in time, you may not get back any money lost after the sixty (60) days.

If there are extenuating circumstances that kept you from telling us, the time periods in this section may be extended.

Your Liability for Unauthorized Transfers from Business Accounts
Elsa State Bank shall have no liability to you for any unauthorized payment or transfer made that occurs before you have told us of possible unauthorized use and we have had a reasonable time to act on that notice. We reserve the right to suspend or cancel your online access, even if you have not notified us of unauthorized access to your accounts(s), if we suspect the account is being used in an unauthorized manner.

If we fail or delay in making a payment or transfer in accordance with your instructions or if we make a payment or transfer in an incorrect amount which is less than the amount in your instruction to us, unless otherwise required by law, our liability shall be limited to interest on the amount which we failed to timely transfer, plus applicable charges assessed by the Bank as a direct result of our failure or delay, calculated from the date on which the payment or transfer was to be made until the date it was actually made or you canceled the instructions. If we make a payment or transfer that exceeds your instruction or if we allow an unauthorized payment or transfer after we have reasonable time to act on a notice from you, unless otherwise required by law, our liability shall be limited to a refund of the amount erroneously paid or transferred, plus any applicable charges assessed by the Bank as a direct result of the transfer, plus interest thereon from the date of the payment or transfer to the date of the refund, but in no event to exceed 60 days’ interest. Interest will be limited to the amount of interest that would have been earned on the funds in the Elsa State Bank account had the transfer error not occurred.

Unless otherwise required by law, in no event will we be liable to you for special, indirect or consequential damages including, without limitation, lost profits or attorneys’ fees, even if we are advised in advance of the possibility of such damages.

Error Reporting and Resolution
In case of errors or questions about your electronic transfers, telephone us at (956) 262-1391 or write us at Elsa State Bank, P.O.Box 397, Elsa, Texas 78543 as soon as you can. We must hear from you no later than 60 days after we sent the first (1st) statement on which the problem or error appeared.

Tell us your 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 after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days to investigate your complaint or questions. If we decide to do this, we will credit your account within 10 business days 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 the account.

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 within 3 business days after we finish. You may ask for copies of the documents that we used in our investigation.

Termination of Online Banking Service
You may terminate your Online Banking Service by sending written notice to:

Elsa State Bank
P.O.Box 397
ELsa, Texas 78543

We must receive your notice at least five (5) days in advance of the termination date.

We may terminate the Online Banking Service or your participation in this service at any time with or without notice to you. We may terminate your Online Banking Service without prior notice to you if we, within our sole discretion, suspect fraud or other illegal activity. We may also do so if you do not meet any of the terms and condition of this agreement, any of the Account Agreements, a credit agreement, or any other agreement with us. If you do not sign onto the Service or request a transaction for any three (3) month period, we reserve the right to cancel your Service without notice. To reactivate the Service, you will need to contact your local Elsa State Bank office.

Upon termination of your Online Banking Service, all pending payments or transfers will be cancelled.

Changes to this Agreement
The Bank may, from time to time, offer and introduce new Internet services. The Bank will notify you of the existence of these new products and services. By using these services when they become available, you agree to be bound by the rules, which will be communicated to you, concerning these services.

You agree that we may amend or change this Agreement at our discretion, at any time. We will post the revised agreement on our web site and notify you of the change through e-mail or account statement notification. If the changes result in stricter limits on the type, amount or frequency of transactions, additional fees for online transactions, or any increase in your responsibility for unauthorized transactions, we will post the notice at least 30 days in advance of the effective date of the change, unless an immediate change is necessary to maintain the security of the system or any account.

Applicable Law
This agreement shall be governed by federal laws and regulations, and to the extent that there is no applicable federal law or regulation, by the laws of the State of Texas.

Other Provisions
You agree that the Bank is not responsible for any loss, damage or injury resulting from an interruption in your electrical power or telephone service; the disconnecting of your telephone line by your local telephone company or from deficiencies in your line quality; or any defect or malfunction of your PC, modem, or telephone line that prevents access to our Online Banking Service. We are not responsible for any services relating to your computer other than those specified in this Agreement.

Except as specifically provided for in this Agreement or where the law requires a different standard, you agree that the Bank shall not be responsible for any loss, property damage, bodily injury, or for any direct, indirect, special or consequential, economic or other damages arising in any way out of the installation, use or maintenance of the equipment, software or Internet browser used to access the Online Banking Service.

I AGREE I DISAGREE