Business Online Banking Terms and Conditions

COMMUNITY STATE BANK Business Online Banking Agreement

This Online Banking Agreement (the "Agreement") governs your use of Community State Bank's Online Banking service. By subscribing to Community State Bank's Online Banking service or using the service, you agree to the terms of this Agreement. Please read this Agreement carefully and keep a copy for your records.

In this Agreement, "you" and "your" refer to the person(s) subscribing to or using Online Banking; "we", "us", "our", and "Bank" refer to Community State Bank and any agent, independent contractor, designee, or assignee Community State Bank may, in its sole discretion, involve in the provision of Online Banking services.

You have requested our Online Banking service. You represent and warrant to us that you will use the Online Banking Service solely for legitimate purposes on personal, family, household, or business banking accounts which you are authorized to access.

Online Banking Services

With Online Banking, you may use a personal computer ("PC") over the Internet to access your Accounts at the Bank, including:

• Checking Accounts
• Savings Accounts
• Line of Credit Accounts
• Individual Retirement Accounts
• Certificates of Deposit
• Loans

Access

To use Business Online Banking you must have at least one business checking account at the Bank, access to Internet service, and an email address. Once we have received your Business Online Banking Application, we will contact you to (a) confirm our acceptance of your Business Online Banking Enrolment and (b) inform you of your assigned login ID and temporary password.  Business Online Banking can only be used to access the accounts which you have designated in your Business Online Banking Enrollment form.  You can add or delete any of your accounts from this Agreement by first communicating your modification to us by calling Online Banking at 989-865-9945 and then formalizing the instructions by a signed faxed letter.  Access to your accounts through Business Online Banking will be based upon the identification of users and authority levels designated through the Business Online Banking Enrollment process and through the access you set up for individual users.

Assigning User Permissions

If you assign users to Business Online Banking that are not authorized signers on the account(s) on which you have granted them access, you acknowledge that you assume full liability for the actions initiated through Business Online Banking by those users and are responsible for maintaining their security.  Client many add or delete any Authorized Representatives from this agreement by first communicating your modification to us by calling Online Banking at 989-865-9945 and then formalizing the instructions by a signed faxed letter. 

 The Following Terms and Conditions Apply When You Use Online Banking:

* Your Deposit Account Rules and Regulations for savings or money market accounts limit you to six "indirect withdrawals" from your account during each statement period. An indirect withdrawal includes (i) electronic and telephone transfers of funds between accounts at the Bank, including Internet transfers, (ii) an automatic transfer at a predetermined time or on a fixed schedule from the account to another account at the Bank, and (iii) preauthorized payments to third parties.

* The daily funds transfer cutoff time is 4:00 p.m. Eastern Standard Time, or Eastern Daylight Time, depending on the date of the transfer. Transfers received before 4:00 p.m. on a business day will be made that same business day. Transfers received after 4:00 p.m. on a business day will be made the next business day. Transfers received on a non-business day will be made the next business day.

* You may use Online Banking to transfer funds only between accounts that are maintained at the Community State Bank.

* A transfer from a line of credit account is considered an advance against that account and will be subject to the terms and conditions of your line of credit advancement.

* You may send e-mail to us, but we will not receive your electronic message immediately. If you need to contact us directly you should call 989-865-9945. We will not be obligated to take any action on an e-mail message you send us until we actually receive it and have a reasonable time to act on it. You cannot use e-mail to request a funds transfer or order a stop payment.

* Information about transactions in your accounts will be available through Online Banking for no more than 60 days.

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

Our Liability for Failure to Complete Transactions

We will process and complete each payment and transfer that is properly scheduled through Online Banking in accordance with the terms of this Agreement. If we do not complete a payment or transfer to or from your account on time or in the correct amount under the terms of this Agreement, we will be liable for your losses and damages. However, there are some exceptions. We will not be liable, for instance, if:

1. Through no fault of ours, available funds are not in your account to make the transfer.
2. The transfer would go over the credit limit on your overdraft line (if any applies).
3. The funds in your account needed for the transaction are subject to legal process or other encumbrance restricting their transfer.
4. Online Banking, your PC or modem, or communications link is not working properly and you knew about the malfunction when you scheduled the payment or transfer.
5. Circumstances beyond our control (such as fire, flood, or delay in the U.S. Mail) prevent the proper completion of the transaction despite reasonable precautions by us to avoid these circumstances.

Security Procedures

You understand the importance of your role in preventing misuse of you accounts through Business Online Banking and you agree to promptly examine your statement for each of your accounts as soon as you receive it.  You agree to protect the confidentiality of your account(s) and account number(s) and your personal identification information such as your driver's license number and social security number.  You understand that personal identification information by itself, or together with information related to your account(s), may allow unauthorized access to your account.  Your password and login ID are intended to provide security against unauthorized entry and access to your accounts.  Data transferred via Business Online Banking is encrypted in an effort to provide transmission security and to utilize identification technology to verify that the sender and receiver of the transmissions can be appropriately identified by each other.  Notwithstanding our efforts to insure that Business Online Banking is secure, you acknowledge that the Internet is inherently insecure and that all data transfers, including electronic mail, occur openly on the Internet and potentially can be monitored and read by others.  We cannot and do not warrant that all data transfers utilizing Business Online Banking, or email transmitted to and from us, will not be monitored or read by others.

The security procedures are as follows: You will choose an Online Banking Password that you must use to obtain access to Community State Bank's Online Banking service. You authorize us to follow any instructions entered through Online Banking using your On Line Password.

Equipment

You are responsible for obtaining, installing, maintaining, and operating all PC equipment and software used to access and perform the Account services through Online Banking. We will not be responsible for any errors or failures from the malfunction or failure of your telephone. We are not responsible for any loss, damage or injury resulting from (i) an interruption in your electrical power or telephone line; (ii) the disconnecting of your telephone line by your local telephone company or deficiencies in your line quality; (iii) any defect or malfunction of your PC, modem or telephone line, (iv) any computer virus or related problems that may be associated with the use of an online system, (v) any interruption of service by your Internet Service Provider. We are not responsible for any services relating to your PC other than those specified in this Agreement.

Statements

All of your transactions made through Online Banking will appear on your account statement(s). The amount and Transaction Date will be reflected for each transaction made through Online Banking.

E-Statements and Periodic Disclosures

To receive electronic delivery services, you must have a working connection to the Internet with e-mail capability to receive and open Portable Document Format (.PDF) files with Adobe Acrobat Reader version 7.0 or greater. If we change the minimum hardware or software requirements, and you are unable to receive electronic delivery service s you will be released from this agreement without any penalty or consequence to you.

Upon enrollment, the following will be provided to you only electronically:  Periodic account statements, periodic disclosures including change-in-terms notice after receipt of notification of availability.

If you elect to receive your statements through E-Statement you will no longer receive your bank statements or periodic disclosures through the mail. We will store your E-Statements for 12 months from the date of delivery.  You will be able to print or download the E-Statements to retain copies of them.

If, at a later date, you wish to obtain paper copies of your past statements or disclosures, you should call 989-865-9945, or write to us at Community State Bank, Online Banking, PO Box 10, Saint Charles, MI 48655.  A $0.99 per paper statement or disclosure copy may be imposed.

Errors in email address delivery will not be the responsibility of the bank.  It is your responsibility to keep us informed of your correct email address(s).  You may notify us of the new address in writing or calling us as 989-865-9945.

You have the right to withdraw consent for electronic delivery at any time. It will take up to 30 days for us to implement your request and begin sending you paper account statements and disclosures.  To request discontinuance you should call 989-865-9945 or write to us at Community State Bank, P.O. Box 10, St. Charles, MI 48655

Business Days/Hours of Operation

Our Business Days are Monday through Friday, except bank holidays. Online Banking is available 24 hours a day, seven days a week, except during maintenance periods, for you to schedule transactions and obtain information about your accounts. Transactions that you make using Online Banking will be completed only on Business Days.

Notice of Your Rights and Liabilities

If you believe your Password has been lost or stolen or that someone has transferred or may transfer money from any of your accounts without your permission, call 989-865-9945 or write to: Community State Bank Online Banking Customer Service, P.O. Box 10, Saint Charles, MI 48655.

If you believe your Password has been stolen or compromised, you must immediately enter the system and change your Password. If you are unable access Online Banking, you must tell us AT ONCE. Telephoning is the best way of keeping your possible losses down. If you fail to notify us promptly, you could lose all the money in your account, plus your maximum overdraft line of credit, if you have one. If you tell us within 2 Business Days after you learn of the unauthorized activity, you will not lose more than $50 if someone used your Password without your permission. (If you believe your Password has been lost or stolen and you tell us within 2 Business Day after you learn of the loss or theft, you can lose no more than $50 if someone used your Password without your permission.)

If you do NOT notify us within 2 Business Days after you learn of the loss or theft of your Password, and we can prove we could have stopped someone from using your Password without your permission if you had told us, you could lose as much as $500.

Also, if your statement shows transfers that you did not make or authorize, tell us at once. If you do not tell us within 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 taking the money if you had told us in time.

If a good reason (such as a long trip or hospital stay) prevented you from telling us, we will extend the time periods.

If you report unauthorized activity, you agree to cooperate with any reasonable request we make during our investigation to help us identify the unauthorized user or research the claim, including providing us with a written statement regarding a claim.

In Case of Errors or Questions about Your Electronic Transfers

Telephone us at 989-865-9945 or write us at Community State Bank Customer Service, P.O. Box 10, Saint Charles, MI 48655. Contact us as soon as you can, if you think that your statement is wrong or you need more information about a payment or transfer listed on your statement or appearing on your PC. We must hear from you no later than 60 days after you received the FIRST statement or notification on your PC in which the problem or error appeared.

1. a. Tell us your name and account number (if any).
2. b. 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.
3. c. 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 question. 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 choose not to credit your 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. You may ask for copies of documents that we used in our investigation.

Disclosure of Account Information to Third Parties

 Since we value our customer relationship with you, we will not disclose your nonpublic personal information to nonaffiliated third parties, except as permitted by law:

1. a. Where it is necessary for completing a transaction; or
2. b. In order to verify the existence and condition of your Accounts to a third party, such as a credit bureau or merchant; or
3. c. In order to comply with a governmental agency or court order; or
4. d. If you give us your written permission: or
5. e. To verify information regarding the possible improper or unauthorized use of your account; or
6. f. Where otherwise provided by law.

We may also disclose information about your Online Banking transactions and your accounts to affiliates of the Bank for marketing purposes to the extent permitted by law.

Authorization to Delegate Service

You authorize Community State Bank to delegate any or all of its responsibilities under this agreement to any agent, independent contractor, designee, or assignee that we select.

Termination

You may terminate your use of Online Banking at any time by calling Community State Bank Customer Service at 989-865-9945, or writing to us P.O. Box 10, St. Charles, MI 48655.  We must receive your notice at least 10 days before the date on which you wish to have your Online Banking terminated. We may require that you put your request in writing. On the date the termination of your account becomes effective, the Bank will make no further transfers or payments from your accounts, even if you have previously authorized them.

We may terminate your use of Online Banking, in whole or in part, at any time without prior notice. Your access to Online Banking will be terminated automatically if you close your accounts with the Bank, or access to your accounts is restricted, for any reason. If the Bank terminates your account, the Bank reserves the right to make no further transfers or payments from your account, even if you have previously authorized them. Termination will not affect your liability or obligations under this Agreement for transactions you have requested that we have processed on your behalf.

Limitation of Liability

Except as otherwise provided in this Agreement or by law, we are not responsible for any loss, injury, or damage, whether direct, indirect, special, or consequential, caused by Online Banking (including bill payment) or arising in any way out of the use of Online Banking. We are also not responsible for any damage to your PC, software, modem, telephone or other property resulting from the use of Online Banking, including without limitation, any damage resulting from a virus. Without limiting the generality of the foregoing, we are not responsible for any loss, damage or injury resulting from (a) an interruption in your electrical power or telephone service; (b) the disconnecting of your telephone service by your telephone company or from deficiencies in your line quality; or (c) any defect or malfunction of your PC, modem or telephone service.

Entire Agreement

This Agreement is the complete and exclusive agreement between you and us related to Online Banking. Your accounts at the bank will be governed by the Rules and Regulations and account agreements that apply to those accounts. If this Agreement conflicts with any statement, agreement, or representation about our Online Banking made in any other agreement or disclosure related to your accounts or made by any our employees or agents, this Agreement shall control.

Waivers

No delay or omission by us in exercising any rights or remedies thereunder shall impair such right or remedy or be construed as a waiver of any such right or remedy. Any single or partial exercise of a right or remedy shall not preclude further exercise therefore or the exercise of any other right or remedy. No waiver shall be valid unless in writing signed by us.

Assignment

You may not assign this Agreement to any other party. We may assign this Agreement or delegate any or all of our rights and responsibilities under this Agreement to a company affiliated with the Bank to any other party.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the state where we maintain our principal office, without regard to that state's conflicts of law provisions. Michigan Customers: If we violate the state law governing electronic funds transfers, you may notify Office of Financial & Insurance Regulation, Division of Financial Institutions, P.O. Box 30220, Lansing, MI 48909.

Data Recording

When you use Community State Bank's Online Banking service, your transactions, account inquiry, e-mail messages to the Bank and other information you enter will be recorded. By using Community State Bank's Online Banking services, you consent to such recording.

Amendments

We may amend or change any of the terms and conditions of this Agreement and the Schedule of Fees at any time. If a change in terms would result in increased fees or charges, increased liability for you, fewer types of available electronic funds transfers or limitations on the frequency or dollar amount of transfers, we will mail or deliver a written notice to you at least 21 days before the effective date of any change or amendment. If you do not agree to the change or amendment, you must notify us before the effective date of the change or amendment and cancel your access to Online Banking. We may make other changes, or changes that we must make immediately in order to maintain or restore the security of our system or your account, us at any time without advance notice to you. However, if we change the terms of this Agreement without advance notice to you, and it is to be made permanent, we will give you written notice of the change with your next regularly scheduled periodic statement or within 30 days, unless that disclosure would jeopardize the security of our system or your account. Changes that are binding against the Bank may only be made in writing agreed to by the Bank.