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 have several options available for you. As a benefit to our customers, we offer these useful services to cover you in the event that you overdraw your checking account.

Overdraft Payment options:

Transfer from another account - If you have other accounts with us, you can authorize us to transfer the funds needed to cover your overdraft.

Line of Credit – A line of credit is available to cover overdrafts. This service requires you to complete an application and approval is based on your credit worthiness. The amount of your limit varies

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. While we reserve the right to unilaterally refuse to pay any item that is presented, with Overdraft Privilege we will generally pay your overdraft items up to $500.00, 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 overdraft fee, currently $25.59, for each item that is presented. Both the amount of the overdraft items and all applicable fees, including but not limited to the $25.59 overdraft 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 $ 25.59, for each item presented.

Eligibility - 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 do not bring your account to a positive balance at least once every 30 days.
• 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 automatically be suspended without prior notice.
• You are a minor.
• A ChexSystems or any other negative indicator is present
• You have an account that has been opened less than 60 days, or if you were overdrawn for more than 4 times during the first 60 days that your account was open.
• Your account is a fiduciary trust or escrow account.
• Your account is classified as dormant.

Suspension of Privilege - After the Overdraft Privilege has been activated, we have the right to suspend the privilege at any time based on failure to meet our eligibility criteria. We also reserve the right to suspend the privilege if we believe you are not managing your account in a responsible manner which may harm you or us. In that case, we may suspend your Overdraft Privilege even if you meet all the criteria listed above, but we will only do so after we give you 7 days notice.

Transactions Covered by Overdraft Privilege - The Overdraft Privilege is available for checks you write, ACH, POS and ATM items. 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 $25.59 overdraft fee for each withdrawal.

Payment Order of Items - 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 order sequence.

Opt Out - You may never need to take advantage of these overdraft checking account payment options, but you may find them useful in the event of a temporary shortfall. In the event that you do not want to have Overdraft Privilege, simply contact us and we will 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 July 1, 2006.