Electronic Funds Transfer Agreement
Consumer-Personal Accounts
6/2012

This Agreement covers Electronic Funds Transfer (EFT) services offered or accepted by us. All information may not pertain to your account. However, please keep this disclosure for future reference as it discloses your rights, remedies and responsibilities concerning EFT transactions. Use of an Electronic Funds Transfer service constitutes your acceptance of the terms and conditions of this Agreement, disclosures to and any amendments. Business and commercial accounts may not receive Regulation Electronic Funds Transfer coverage. This may affect your liability for unauthorized use and transactions.

Electronic Funds Transfer Services.The following services are offered or accepted by us, which allows you to access your account 24 hours a day.

Automated Teller Machines (ATMs).You may use your ATM or debit card and personal identification number (PIN) at ATMs displaying the logos shown on your card, and such other

machines or facilities as we designate. You may use your card to*:

• Withdraw cash from your checking or savings account.
• Make deposits to your checking or savings account.
• Transfer funds between your checking and savings accounts.
• Obtain account information.
  *Some of these services may not be available at all ATMs.

Point of Sale Terminals. If you have a checking account with us, you may use your ATM or debit card and personal identification number (PIN) to purchase goods and services at places that have agreed to accept the card.

Other Debit Transactions. If you are approved for a VISA debit card, you may also use it to purchase goods and services from merchants who accept VISA. You may also obtain cash advances from your checking account with a debit card at financial institutions participating in the VISA system.

Online Banking (including Bill Pay services). You may be granted access to your account using Online Banking by requesting an access username and password. You may use the username and password to review your account and arrange payments and transfers internally between your 1st Security Bank accounts. As part of Online Banking you may register to use Bill Pay services to pay third party bills directly from your 1st Security Bank account.

24 -Hour Automated Telephone Banking. You may be granted access to your account using 24-Hour Automated Telephone Banking by requesting an access username and password. You may use the username and password to review your account and arrange payments and transfers internally between your 1st Security Bank accounts.

Automated Clearing House Deposits and Withdrawals. You may establish preauthorized deposits and withdrawals from your account by using ACH. This service will allow you to pay or receive reoccurring payments. You may verify the receipt of a direct deposit by calling us at 1-800-683-0973.

Electronic Check Conversion/Electronic Returned Check Fees. Your check can result in an electronic

funds transfer. For example:

• You may purchase goods or pay for services and authorize a merchant or service to convert your check to an electronic funds transfer.
• If you mail a check to a merchant or service provider, you may authorize that provider to convert your check to an electronic funds transfer.
• When you purchase goods, pay for services, or mail a check to a merchant or service provider, you may be asked to authorize the merchant or service provider to electronically collect a charge in the event the check is returned unpaid. Any such fee paid electronically is an electronic funds transfer.
• Any check you give to us may be processed as an electronic funds transfer. When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction.

Your authorization to make these types of electronic funds transfers may be expressed orally, in writing, electronically or implied through provision or posting of a notice that the transaction may be processed as an electronic funds transfer and your completion of the transaction. When we use information from your check to make an electronic funds transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive your check back from your financial institution.

Limitations on Services. The following limitations for withdrawal amount and frequency of transfers may

apply when using the services listed above.

ATM Transactions. You may withdraw up to three hundred ($300) dollars cash per day from ATMs. Not all ATMs will accept deposits. Please review the Funds Availability Policy to determine the availability of funds deposited at an ATM.

Debit Transactions. The total amount of purchases and cash advances you may make using a debit card is limited to $1,500.00 per day or the available balance in your checking account, less any outstanding checks, items or ATM/debit card authorizations not yet received or processed by us, if it is less than the daily limit. You may not use the card for any illegal or unlawful transactions and we may decline to authorize any transactions that we believe pose an undue risk to us, or are illegal.

Money Market and Savings Accounts. ACH withdrawals from your money market or your

savings and transactions made through 24-Hour Phone Banking, Online Banking, overdraft protection or telephone, which would transfer funds from your money market or savings cannot exceed more than six (6) occurrences per month. Please review Savings and Money Market Transfer Limitations.

We reserve the right to refuse any transaction, which would draw upon insufficient funds, exceed a credit

limit, lower an account below a required balance, or otherwise require us to increase our required reserves on the account. We reserve the right to limit the dollar amount and frequency of any transaction from your account(s) for security reasons. Or, if any of the deposited funds or fund transfers are suspected to be in violation of state or federal law they may not be available for immediate withdrawal.

Fees. There are certain charges for Electronic Funds Transfer services as set forth in the Schedule of Fees and Charges. You agree that fee information is subject to change at any time. You will be notified of such changes as required by law. 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 funds transfer.

Personal Identification Number. The ATM PIN issued to you is for security purposes. This code is confidential and should not be disclosed to third parties. Do not record your code on your ATM or debit card. Please keep your PIN and card separate. You are responsible for the safekeeping of your PIN. You agree not to disclose or otherwise make your PIN available to anyone not authorized to sign on your accounts. If you authorize anyone to use your PIN that authority shall continue until you specifically revoke such authority by notifying us. If you fail to maintain the security of these access codes and we suffer a loss, we may terminate your card and account services immediately.

Documents and Notices.

Periodic Statements. You will be sent a monthly statement from us for your checking account. You will be sent a monthly account statement for your savings account, unless there are no transfers in a particular month. In any case you will get a statement at least quarterly.

Receipts. You can get a receipt at the time you use any of the ATM, POS or other debit transaction services listed under Electronic Funds Transfer Services, for transaction amounts greater than $15. Save it for your records.

Pre-authorized Transfers. 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 may call us at 1-800-683-0973 to find out whether or not the deposit has been made.

Notices. Any notice required will be sent to the address on record with us. Notices may be included with account statements, our publications, or other communications.

Stop Payment of Debit Card or POS Transactions. You may not stop payment for any debit card transaction or point of sale (POS) transfer once you have completed the transaction with the merchant.

Stop Payments on Pre-Authorized Transfers. To stop payment of a pre-authorized debit transfer from your account:

Write to us at:
1st Security Bank of Washington
P.O. Box 97000, Lynnwood, WA 98046-9700

Call us at:
Toll-free 1-800-683-0973
Telephone Hours 9:00 a.m. to 5:00 p.m. PST

Right to Stop Payment and Procedure for Doing So. If you have arranged in advance to make regular payments out of your accounts, you can stop any of these payments. In order to stop a pre-authorized debit transfer, you must notify us orally or in writing at any time up to three (3) business days before the transfer is scheduled to be made. We require signed confirmation of your oral request and a copy of the revocation sent to the originating company within 14 days of notification. If confirmation is not received the order ceases to be binding. A fee will be assessed for each stop payment request as set forth in the Schedule of Fees and Charges. If you request us to stop payment of a pre-authorized transfer three (3) business days or more before the transfer is scheduled to be made, and we are unable to stop the transfers, we will be liable for your losses or damages in accordance with the law.

Notice of Varying Amounts. If these regular payments vary in amount, the person you are going to pay is required to tell you, ten (10) days before each payment, when it will be made and how much it will be.

Errors or Questions. If you think your statement or receipt is wrong or if you need more information about a transfer listed on the statement or receipt, call or write us as soon as you can, using the telephone number or address given above. We must hear from you no later than sixty (60) days after we sent the FIRST statement on which the problem or error appeared. In your communication:

• Tell us your name and account number.
• Describe the error or the transaction 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 ten (10) business days. We will tell you the results of our investigation within ten (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 forty-five (45)*** days to investigate your complaint or question. If we decide to do this, we will provisionally credit your account within ten (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 the error you assert is an unauthorized VISA transaction, other than a cash disbursement at an ATM, we will credit your account within five (5) business days unless we determine that the circumstances or your account history warrant a delay, in which case you will receive provisional credit within ten (10) business days. If we ask you to put your complaint or question in writing and we do not receive it within ten (10) business days, we may not credit your account. If we determine that there is no error, we will send you a written explanation within three (3) business days after we finish our investigation. You may ask for copies of the documents we used in our investigation. If your error concerns a transfer to or from a third party (e.g., social security payment), and we decide that there was no error, you may want to contact such third parties to pursue the matter further.
  **If you give notice of an error within 30 days after you make the first deposit to your account, we will have 20 business days to credit your account instead of 10 business days.
  ***If you give notice of an error involving a point of sale transaction, or notice of an error involving a transaction initiated outside the United States, its possessions and territories, we will have 90 days instead of 45 days to investigate.

Disputes with Merchants Concerning Goods & Services. You agree to settle all disputes about purchases of goods and services you make using the VISA debit card with the merchant who honored the card. If you are unable to settle the dispute with the merchant, we will attempt to help resolve the dispute if you send us a letter that includes your name and account number. If the merchant refused to make a price adjustment, replace the goods or things of value, refused the return of the merchandise, or issue a credit to your account, tell us the date, amount, and why you are disputing the transaction, including the merchant name and location. Also provide written confirmation of your attempt(s) to contact the merchant and resolve the dispute. This does not affect your rights with respect to unauthorized transfers or errors regarding your account.

Loss or Theft of Your Card or Unauthorized Use. Tell us AT ONCE if you believe your card(s) or PIN has been lost or stolen, if you suspect that someone has transferred or may transfer money from your account without your permission, or if you believe that an electronic funds 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 (2) business days after you learn of the loss or theft of your card or PIN, you can lose no more than $50 if someone accessed your account without your permission. If you do NOT tell us within two (2) business days after you learn of the loss, theft or unauthorized use of your card, and we can prove that we could have stopped someone from accessing your account without your permission if you had told us, you could lose as much as $500.

If your account statement shows electronic transfers that you did not make, tell us AT ONCE. If you do not tell us within sixty (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 making the transfers if you had told us in time. If a good reason (such as a long trip or hospital stay) kept you from telling us, we will extend the time periods. If you believe someone has transferred or may transfer money from your account without your permission, or if you believe that an electronic funds transfer has been made without your permission using information from your check:

Write to us at:
1st Security Bank of Washington
P.O. Box 97000, Lynnwood, WA 98046-9700

Call us at:
Toll-free 1-800-683-0973
Telephone Hours 9:00 a.m. to 5:00 p.m. PST
Evenings or Weekends Call: 1-800-854-6219

Our Liability for Failure to Make Transfers: If we do not complete a transfer to or from your accounts 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, if:

• Through no fault of ours, you have insufficient funds in your account to make the transfer or if the transfer would go over the credit limit on your overdraft protection plan.
• You used the wrong PIN, or you used a PIN or ATM or debit card in an incorrect manner.
• The terminal was not working properly and you knew about the breakdown when you started the transfer.
• Circumstances beyond our control (such as a force of nature or war) prevent the transaction, despite reasonable precautions we have taken.
• The money in your account is subject to legal process or other claim.
• The funds in your account are being held because of a delinquent loan or other obligation to us.
• The error was caused by a network system or affiliated network(s).
• There may be other exceptions stated in our agreements with you.
• Any of your deposited funds or funds transfers are suspected to be in violation of state or federal law they may not be available for immediate withdrawal.

We will not be liable to you if any other financial institution, merchant or business refuses to honor your ATM or debit card.

Disclosures of Account Information to Third Parties. We may disclose information to third parties

regarding your account or transfers under the following circumstances:

• When it is necessary 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 a government agency or court order.
• If you gave us your written permission.

Termination of ATM or ACH Services. You may terminate this Agreement at any time by notifying us in writing and returning to us all cards issued in connection with this Agreement. Termination of services will be effective the first business day following receipt of your written notice and cards. Such termination of this Agreement will not affect previous transactions. Terminating this Agreement does not terminate your other accounts with us. However, closing your checking account will terminate your point-of-sale services and other debit services. Closing your savings account will terminate this Agreement simultaneously.

Our Business Days. Our business days are Monday through Friday. Legal holidays are not included.

Amendments. From time to time we may amend any of the terms or conditions contained in this Agreement. If the change is adverse to you, such amendment will be provided to you in writing twenty-one (21) days prior to the effective date of any change in terms or conditions of this Agreement. We reserve the right to implement a change in the terms and conditions of this Agreement without prior

notice to you to maintain or restore the security of any Electronic Funds Transfer Service.

ATM Safety Precautions. ATMs are provided to make banking easier and more convenient for you

because they are available for your use 24 hours a day, 7 days a week. We suggest the following helpful hints on exercising care while using an ATM. Please take a moment to review them.

Your ATM or Debit card.

• Always protect your cards by keeping them in a safe place. If lost or stolen, you should notify us immediately.
• Memorize your personalize identification number (PIN). Never write it on any other document and do not carry it in your wallet or purse. Never give it out over the phone.

Using the ATM.

• Have your transaction ready.
• Be aware of your surroundings, particularly at night. If you observe any suspicious circumstances or persons, do not use the ATM. Leave the area immediately and report such activity to your local police and your branch.
• Give distance to other persons when standing in line.
• After withdrawing cash, put it away promptly and verify it later in the safety of your car or home.
• Park as close to the ATM as possible and lock the passenger doors to your vehicle. If conditions at the machine are poor, such as lights are out or there is excessive foliage, you may wish to use another machine. Please report the condition to your branch the next business day.
• Should you become the victim of criminal activity while using an ATM, please report it to your branch and the appropriate police agency.