Online Banking Customer Agreement

Sound Community Bank

Online Banking Customer Agreement

1. Online Banking Agreement: This Agreement for Online Banking service is entered into between Sound Community Bank (the "Bank") and any Customer of the Bank who subscribes to or accesses Online Banking or Bill Payment Service.

2. Use of Online Banking: This Agreement contains the terms of your subscription to Online Banking. To subscribe to Online Banking, you must have at least one account with the Bank. You should read this Agreement and the related materials provided by the Bank before you use Online Banking. If you use Online Banking, or permit another person to use Online Banking on your behalf, you agree to the terms stated in this Agreement.

3. Computer Requirements: You will need a computer, related equipment, and Internet access in order to use Online Banking (in this Agreement, your computer, PDA or any other Internet Accessible source, the related equipment, and the Internet access are referred to together as your "Computer"). You are responsible for the installation, maintenance, and operation of your Computer. The Bank is not responsible for any errors or failures from any malfunction of your Computer, and the Bank is not responsible for any computer virus or related problems that may be associated with the use of an on-line system. Also, your software may include certain functions and features which are not associated with the Bank and the Bank is not responsible for them.

4. Deposit and Credit Agreements: The terms in this Agreement are in addition to (a) the terms of any deposit account Agreements you have with the Bank, including your signature card, the disclosure containing the terms of your accounts, the accompanying schedules, and any change of terms notices (together, the "Deposit Agreements"), and to (b) the terms of any credit Agreements you have with the Bank, including any disclosures made pursuant to such Agreements (together, the "Credit Agreements").

5. Electronic Fund Transfer Act: Some of the transactions permitted under this Agreement are governed by the federal Electronic Fund Transfer Act (the "EFTA"), and some of the terms of this Agreement are disclosures required by the EFTA. Business subscribers are not entitled to those rights provided to consumers by the EFTA and some provisions of this Agreement are inapplicable to business subscribers, including without limitation the time period provisions of the "Reporting Unauthorized Transactions & Error Resolution" section, and the liability limitation provisions of the "Customer's Responsibility" section.

6. Internet Account Access: If you have multiple accounts at the Bank, transactions may be processed to and/or from the following types of accounts:

  • Checking Accounts
  • Savings Accounts
  • Money Market Accounts
  • Line of Credit Accounts

If you have loan accounts at the Bank, transactions may be processed to the following types of accounts:

  • Installment Loans
  • Commercial Loan
  • Mortgage Loans

From time to time the bank may add or eliminate accounts from this list. You may use Internet Account Access to obtain account balances and transaction history and to transfer funds between certain accounts. In most cases, you may use Internet Account Access to transfer to or from deposit accounts in which you have an unrestricted right to withdraw funds and credit accounts in which you have an unrestricted right to borrow money. However, the Bank reserves the right in its sole discretion to deny Internet Account Access transactions. When you use Internet Account Access to make transfers from credit accounts, you agree that the Bank may take any action required to obtain advances on your behalf, including charging your linked loan account at the Bank, without your signature.

7. Limitations of Internet Account Access: The features of Online Banking are subject to the following terms:

For Savings Accounts and Money Market Accounts only: During any month, you may not make more than six withdrawals or transfers to another Bank account of yours or to a third party by means of a pre-authorized or automatic transfer (including overdraft protection) or telephonic order or through Internet Account Access.

PLEASE NOTE: Transfers completed in person at a Bank office, through an ATM or POS facility, or by a withdrawal check mailed directly to you are not counted toward the limit of six per month.

Advances under your loan Agreement to one of your accounts may not exceed your available credit limit.

Mortgage loan payments must be equal to or greater than the scheduled amount. Partial mortgage loan payments are not allowed.

No transfers may be made from an account that requires two or more signatures.

Balance and transaction information provided on any day will generally be current as of the previous business day's close of business.

Transactional information for your accounts may be available for downloading using Online Banking for 90 days prior to the date of inquiry.

The Bank reserves the right to limit the frequency and dollar amount of transactions from your accounts for security reasons.

8. Bill Payment Service: To subscribe to the Bill Payment Service, you must qualify for an Access checking account with the Bank. You may use the Bill Payment Service to:

make payments to a person or business (a "payee") in the U. S.,

make automatic recurring payments, and

review, change, and void payments.

When you sign up for Bill Payment Service, you must designate the checking account from which the Bank is to make payment (the "Payment Account"). A Payment Account must be a checking account. To pay bills using Bill Payment Service you must use your Computer to authorize the payment. After the Bank receives your instruction, the Bank will make your payment.

9. Limitations of the Bill Payment Service: The features of the Bill Payment Service are subject to the terms, noted below:

An account that requires two signatures to make withdrawals may not be designated as a Payment Account. When you use Bill Payment Service, you agree that the Bank may debit the Payment Account to pay checks that you have not signed.

When using Bill Payment Service, you can only pay payees with United States addresses. While most payments can be made using Bill Payment Service, the Bank reserves the right to refuse to make payments to certain payees.

Automatic recurring payments must be for the same amount each occurrence and can be scheduled in the following ways:

MONTHLY on the same calendar day each month.

SEMI-MONTHLY on the same calendar days each month.

WEEKLY on the same week day each week.

If the regular payment day falls on a weekend or holiday the payment will be made on the preceding business day.

When you have entered and transmitted a payment instruction, you authorize the Bank to reduce the amount of the payment from the Payment Account accordingly. If there are insufficient funds in the Payment Account to make payments you have authorized, the Bank may either refuse to make the payment or it may make the payment and thereby overdraw the Payment Account. In either event, you are responsible for any non-sufficient funds ("NSF") or overdraft charges the Bank may impose, as stated in the Account Services and Fees brochure. The Bank reserves the right to refuse to honor payment instructions that reasonably appear to the Bank to be fraudulent or erroneous.

It is your responsibility to schedule your bill payments in such a manner that your bills will be paid on time. When using Bill Payment Service, you should enter and transmit your bill payment instructions at least four (4) business days before a bill is due if the payment can be made electronically (use the on-line vendor list to determine if a payment can be made electronically) or six (6) business days before a bill is due if the payment will be made by check. You are responsible for any late payment or finance charges that may be imposed as a result of your failure to transmit payment instructions at least four business days in advance. Payment instructions received by the Bank on weekends or holidays will be considered received on the next business day. The Bank is not responsible for delays caused by the United States Postal Service.

You should schedule payments to be made on or before the due date, rather than during any grace period after the due date. The Bank is not responsible for any late payment or finance charges that may be imposed because you schedule a payment to be made after its due date.

Your bill payments will not include your payee's standard remittance slip. Some payees may take more time to process your payment if the remittance slip is not included, and some payments sent without the remittance slip may be processed by your payee at a different address. As a result, you should contact your payees to determine the proper address and amount of lead time for scheduling your payments.

After your payment instructions have been transmitted, you may void a payment (if, for example, a payment date or a payment amount is incorrect) if the voiding instruction is transmitted at least four (4) business days before the payment is scheduled to be made. If your voiding request is not received at least four (4) business days before payment is to be made, you are responsible for the payment.

The Bank reserves the right to limit the frequency and dollar amount of transactions from your accounts for security reasons.

10. Expedited Payments: Our Bill Pay Service has an Expedited Payments feature. This feature allows payments to be delivered to payees the next day for an additional fee of $4.95 for electronic ACH or $19.95 for check delivery overnight.

This helps any client whom forgets to pay their bills and wishes to avoid costly late fees.

Please Note: Only select companies offer expedited services. The Expedited Payment feature lists which payees accept these forms of payments.

11. Your Ability to Stop Payments: When using Bill Payment Service, payments can be stopped in the following ways:

For check payments: You may request that a stop payment be placed. The stop payment request must be made before the check is cashed by the payee. It is the policy of the Bank and its third party processor to wait 5 days after the check has been mailed to place a stop payment order on check payments.

For electronic payments: You may not place stop payments. However, you may cancel the payment request, either on-line or by contacting the Bill Payment Service up to 3 business days prior to the scheduled payment date to cancel the payment.

PLEASE NOTE: The initiation by you of certain Electronic Funds Transfers from your account will, except as otherwise provided in this Agreement, effectively eliminate your ability to stop payment of the transfer. Therefore, you should not employ electronic access for payments, purchases or services unless you are satisfied that you will not need to stop payment.

12. Stock Quotes: You may use Stock Quotes to obtain closing quotations of certain publicly traded securities and mutual funds. The Bank assumes no responsibility for the accuracy of this information. You should always confirm the accuracy before you buy or sell securities or otherwise rely on information you obtain using Stock Quotes.

13. Password: During your first use of Online Banking, you will register and select a password. The Bank may cancel your Password at any time if necessary to maintain the security of your accounts. In order to prevent unauthorized access to your accounts and to prevent unauthorized use of Online Banking, you agree to keep your Password confidential and not to reveal your Password to anyone who is not authorized to use your Online Banking subscription. You also agree to notify the Bank immediately if the confidentiality of your Password has been compromised.

14. Fees and Charges: You authorize the Bank to deduct all applicable Online Banking and Bill Payment Service fees from any account you have at the Bank. The Bank may change or add fees by following the procedures for amending this Agreement. See the Account Services and Fees brochure that you received with this Agreement for a disclosure of the fees for Online Banking. Charges related to your checking account are also disclosed in our Account Services and Fees brochure.

15. Reporting Unauthorized Transactions and Error Resolution: If you think your account statement is wrong, or if you need more information about a transaction on your statement, write us on a separate sheet at the address listed on your statement. Write to us as soon as possible. We must hear from you no later than 60 days after we sent or delivered to you the FIRST statement on which the error or problem appeared. You can provide oral notification to us, but we may require written confirmation to be provided within 10 business days of an oral notification of error.

Tell us your name and account number(s). Describe the suspected error 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 and, if possible, the date is first appeared on your statement. Give us a telephone number where you can be reached during our business hours in case we need further information.

Please forward all inquiries to:

Sound Community Bank

P. O. Box 34155

Seattle, WA 98124-1155

ATTN: Online Support

Your Rights and Our Responsibilities After We Receive Your Written Notice

After we receive the proscribed notice, the Bank will determine whether an error occurred and report or mail the results of such investigation and determination to you within 10 business days. If we determine an error did occur, we will correct the error within one business day of such determination. The Bank may take up to 45 days after receipt of notice of error to complete its investigation. In the event the Bank chooses to take 45 days, it will provisionally re-credit your account for the amount alleged to be in error, so that you will have 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. If the Bank determines that an error did not occur, it will send you a written explanation within 3 business days after the conclusion of its investigation. You may request copies of the documents that we used in our investigation.

16. Monthly Statements: The periodic statements for your accounts will include transfers and bill payments you authorize using Online Banking, as well as your other account activity.

17. Business Days: The business days for the Bank are normally Monday through Friday. Holidays are not business days. Online Banking can only make transfers and bill payments on business days. You may login to Online Banking 24 hours a day, seven days a week, except during maintenance periods. When you process transfers or pay bills on a weekend or a holiday the transaction will post on the next normal business day.

18. Customer's Responsibility: You are responsible for all transfers and bill payments you authorize using Online Banking. If you permit other persons to use Online Banking or your Password, you are responsible for any transactions they authorize from your deposit and credit accounts.

You should notify the Bank immediately if you believe any of your accounts have been accessed or your Password has been used without your permission. Contacting the Bank immediately will help you reduce possible losses.

You can lose no more than $50 if you notify the Bank within two business days of discovering any unauthorized use of Online Banking or your Password. However, you can lose as much as $500 if you do not notify the Bank within two business days of discovering the unauthorized use and the Bank can prove that it could have prevented the unauthorized use had it been notified.

Further, if you do not report unauthorized transactions which appear on your periodic statements within 60 days after such statements are mailed to you, you risk unlimited losses if the Bank can prove that it could have prevented the unauthorized use had it been notified within this 60 day period.

19. Bank Liability for Failure to Make Transfers: The Bank is liable for your actual losses if they were directly caused by any of the following:

The Bank's failure to make an electronic fund transfer, in accordance with the terms and conditions of the account, in the correct amount and manner when properly instructed to do so by the Customer.

The Bank's failure to make an electronic funds transfer due to insufficient funds when the Bank failed to credit, in accordance with the terms and conditions of the account, a deposit of funds which would have resulted in sufficient funds to make the transfer.

The Bank's failure to stop payment of a pre-authorized transfer when properly instructed to do so. However, the Bank will not be liable:

If you do not have adequate funds in an account to complete a transaction from that account, or if that account has been closed, or if withdrawals from any of your accounts have been prohibited by a court order such as a garnishment or other legal process.

If you do not have an adequate credit limit in a credit account to complete a transaction from that account.

If you have not properly followed Computer or Online Banking instructions on how to make a transfer or bill payment, or if your Computer fails or malfunctions, or if Online Banking was not working properly and this problem should have been apparent to you when you attempted to authorize a transfer or bill payment.

If you have not given the Bank complete, correct and current instructions so that the Bank can make a transfer or bill payment.

If you do not authorize a bill payment soon enough for your payment to be made and properly credited by the payee by the time it is due.

If the Bank makes a timely bill payment but the payee nevertheless does not credit your payment promptly after receipt.

If circumstances beyond the Bank's control prevent making of a transfer or payment, despite reasonable precautions that the Bank has taken. Such circumstances include delays or losses of payments caused by telecommunication outages, postal strikes, actions of third parties (such as payees), equipment failures, and acts of God.

For any indirect, incidental, or consequential damages if the Bank's failure was not intentional and resulted from a bona fide error.

20. Disclosure of Account Information to Others: In order to protect your privacy, the Bank will not disclose any information about you or your accounts to any person, organization, or agency, except:

The Bank currently has an Agreement with an outside vendor under which the vendor assists in the provision of the Online Banking functions. The Bank will provide this vendor with information about your accounts, your Online Banking transactions, and your electronic mail messages in order to carry out your instructions; Where it is necessary for completing transfers and bill payments; In order to verify the existence and condition of a Payment Account for a payee or holder of a check issued by Online Banking; In order to comply with laws, government agency rules or orders, court orders, subpoenas, or other legal process, or in order to give information to any government agency or official having legal authority to request such information.

At the Bank's discretion, the Bank may share information with affiliated companies.

By your written authorization which shall automatically expire after 30 days.

21. Amendments: The Bank may amend this Agreement, including the applicable fees, at any time by giving written notice as required by law. Notices will be sent to the name that appears on the account at the last known address as shown on the records of the Bank. All amendments will become effective as stated in the written notice. If an account is used after the effective date of a change, the new terms and conditions of the Agreement will apply.

22. Assignment: The Bank may assign its rights and delegate its duties under this Agreement to a company affiliated with the Bank or to any other party.

23. Non-Bank Functions: The Bill Payment Service and Stock Quotes functions described above may be available from a party other than the Bank. If you subscribe to receive these functions from a party other than the Bank, the Bank is not responsible in any way for transactions you authorize or for the service you receive.

24. Termination: Either you or the Bank may terminate this Agreement and your Online Banking subscription at any time upon giving notice of the termination to the other party. If you terminate Online Banking, you authorize the Bank to continue making transfers and bill payments you previously authorized until such time as the Bank has had a reasonable opportunity to act upon your termination notice. Once the Bank has acted upon your termination notice, the Bank will make no further transfers or payments from your accounts, including any transfers or payments you have previously authorized. If the Bank terminates your use of Online Banking, the Bank reserves the right to make no further transfers or payments from your accounts, including any transactions you have previously authorized.