Overdraft Privilege Disclosure

We believe it is important for you to use your checking account responsibly and to never intentionally overdraw your account. However, we realize that financial shortfalls happen from time to time, and we offer this useful service to cover you in the event that you overdraw your checking account.

Overdraft Privilege - Overdraft Privilege is a service we add to your checking account to cover overdrafts to a set limit, subject to the eligibility criteria as explained below. With Overdraft Privilege we will generally pay your overdraft items up to $500, however, whether your overdrafts will be paid is discretionary and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing, or you are not making regular deposits, or you have too many overdrafts. When we pay overdraft items for you, you will be charged our OD Privilege Fee, currently $25 for each item that is presented (maximum of $125 per day). Both the amount of the overdraft items and all applicable fees, including but not limited to the $25 overdraft and return item fees, are included in this limit.

If we do not pay overdraft items for you, you will be charged our normal return item fee, currently $25, for each item presented.

Eligibility Criteria - No application is required for the Overdraft Privilege; eligibility is based on you managing your checking account in a responsible manner. You will be eligible for the Overdraft Privilege unless:

• You are more than 30 days past due on any Bank loan or delinquent on any other obligation to the Bank.
• You are subject to any legal or administrative orders, levy, or are currently a party in a bankruptcy proceeding.
• You have an outstanding balance on an Overdraft Repayment Plan.
• An extended hold is being placed on your checking account or any other account relationship, in which case your Overdraft Privilege will be suspended without prior notice.
• You are a minor.
• A ChexSystems or any other negative indicator is present.
• Your account is a fiduciary trust or escrow account.
• Your account is classified as dormant.

Suspension/Removal of Privilege - You may be suspended or removed immediately from the Overdraft Privilege if:

• You do not bring your account to a positive balance within a 30 day period
• You fail to meet our eligibility criteria
• If you meet all the criteria listed above, we may still remove the privilege if we believe you are not managing your account in a responsible manner, which may harm you or us.

Transactions Covered by Overdraft Privilege - Overdraft Privilege will be available for all checks written, in-person withdrawals, ACH items, Debit/POS transactions and ATM withdrawals. Overdraft Privilege will be available through Internet banking when it is in service. Note: Please check your balance before initiating an ATM transaction to see if the withdrawal will create an overdraft on your account, which will result in you being, assessed our $25 OD Privilege fee for each withdrawal.

Payment Order of Items - The order in which items are presented may affect the total fees incurred by a customer.
The first items that we pay are any checks cashed by our employees or that you have written to us. We then pay any items that were submitted electronically, such as ATM withdrawals, ACH items, any debit card transactions, preauthorized automatic transfers, telephone-initiated transfers and any other electronic transfers. Finally, we pay the remaining items based on check number sequence.

Opt Out - You may never need to take advantage of the Overdraft Privilege option but you may find it useful in the event of a temporary shortfall. If you do not want to have Overdraft Privilege, simply contact us and we will provide you with an opt out form to remove this benefit from your account.

Additional Information - Your account agreement describes the duties, obligations, and rights of depositors, authorized signatories and the bank with regard to your deposit accounts. That account agreement is incorporated herein for all purposes as if it were set forth verbatim as to matters not directly addressed by this disclosure. Your account agreement and this disclosure shall be construed so as to minimize conflicts between them.

Waiver: The Bank's forbearance from, or delay in, exercising any of the Bank's rights, remedies, privileges, or right to insist on your strict performance of any provisions of your account agreement, this Overdraft Privilege disclosure, or any other provision related to your account, shall not be construed to be a current or future waiver of the Bank's rights, remedies or privileges.

You and the Bank agree that the exclusive remedy and forum for all disputes arising out of the overdraft privilege or your or Bank's performance there under, except for matters you or Bank take to small claims court, is arbitration by an independent arbitrator pursuant to the applicable rules of the American Arbitration Association, except as prohibited by law.

Effective Date - All information listed in this disclosure is effective as of (March 13, 2007).