Electronic Funds Transfer Disclosure

Online Banking, Bill Payment, Mobile Banking
& E-Statements
Disclosure

The Johnson State Bank and Bank of Ulysses, A Branch of The Johnson State Bank, can be found on the Internet at the following address:

https://www.johnsonstatebank.com

Member FDIC

1. Website Security

   Our website offers up to date technology, including a multi-layer log in process. Our security measures ensure that all customer information remains protected.

   • Modern encryption technology is used when any information is exchanged between you and the bank.
   • Unique personal login information is required. The password is never known to any bank personnel.
   • Only authorized user(s) at the bank will have access to transaction information and will be under the same confidentiality restrictions as occur with person to person banking.
   • A time-out feature automatically logs a user off of online banking after a set amount of time. This amount can be adjusted in the user options section. Customers should select the shortest amount of time if online banking is used in a public area.
   • A multilayer security feature will be accessed anytime you use a new computer or mobile device. You will be required to enter a one-time passcode that will be sent to you however you choose in order to access your account online.
   • To exit Online Banking the user should always click the Sign Off button.

2. Online Banking

   The Johnson State Bank and Bank of Ulysses has developed our Online Banking product to be comprehensive and convenient for the end user. Online Banking is a free service to our customers. The steps to getting started are listed below.

   Registration

   Online Banking registration is completed through our website. In the address bar at the top of your browser page, type in https://www.johnsonstatebank.com to view our website. To complete the registration follow these steps:

   • Go to the homepage on our website, click on Registration, located in the log-in box, and follow the onscreen directions. Please note that you will not be able to view your accounts online the same day of registration.
   • The Bank will begin to process your application. This usually takes 3-5 days but may take longer.

   Customer ID:

   When you register your Customer ID will be your Social Security Number. After the registration process is complete you will be prompted to establish a unique Customer ID.

   Password:

   It is absolutely imperative that the customer chooses a password that is easy to remember and that it is kept very secure. If your online account is accessed using your ID and password we assume that the person viewing the account is you or someone authorized by you. The bank is not to be held responsible for transactions due to a lost or stolen password. However, the bank should be notified immediately if you believe there has been a fraudulent transaction. Passwords are required to be 4-8 characters in length. They can consist of alphanumeric and non-alphanumeric characters. Example: bestdad, #1mom, 3kids, etc.

   Security:

   Our online-system will automatically lock users out after five (5) consecutive unsuccessful attempts. The count starts over every time there is a successful log-in. It is impossible for the bank to know your password. In cases where the user has been locked out or of a forgotten password you may reset your password by clicking on Password Reset on the homepage of our website and then following the onscreen directions, or call The Johnson State Bank or Bank of Ulysses to be reset.

3. Bill Payment Service:

   Our bill payment service is brought to you, the customer, by The Johnson State Bank and Bank of Ulysses and Metavante. We offer our customers one of the easiest, quickest, and most cost effective bill payment services in the industry.

   • Registration:In order for a person to enroll in the bill payment service he or she must be registered to use Online Banking. When registering for Online Banking you will check the box next to the statement. “Click here to enroll in Bill Pay” The approval process typically takes 3-5 days but may be longer in certain conditions. Each person applying for Bill Payment is subject to a credit check and an account history check. Persons meeting the approval criteria will be notified by e-mail and can then begin using Bill Pay. Those that are declined use of Bill Payment services will also be notified by e-mail.Bill Payment Types:There are two types of bill payments, Automated Clearing House (ACH) or paper draft. ACH payments are those sent electronically. If the company you wish to pay is found in the online database then the payment will be sent ACH.
     • There can be no stop payments on ACH items
     • Stop Payment fee for paper drafts is $30

     In order for ACH payments to reach the company on time you should schedule the payment at least 3 business days before the payment is due. Paper draft payments are actual paper items (similar to a check) sent for payment. Any company not found in the database will be issued a paper draft item.

     Your checking account number will not appear on the paper draft. The maximum amount a paper draft item can be made for is $9,999.99. The item is VOID 90 days after it is written, which means if the draft is not cashed within 90 days your account will be re-credited for the amount of the draft.

     Stop payments can be made on paper draft items until 6:00 P.M. CST the same day it is to be taken out, by calling our bill payment service provider.

     Paper draft payments should be scheduled for at least 5 days before the payment is due to insure it will be received by the company on time. The bank is not responsible for late fees or other charges assessed by any company a bill is sent to due to late scheduling of payments.

     Our bill payment service provider will process all of the next day’s payments at 11:00 pm Central Standard Time (CST). You have until 10:45 pm CST to change, add, or delete a payment. Example: You have a payment coming out on December 3rd; your payment will be processed at 11:00 pm on December 2nd as long as it is a business day.

     Your account will be debited for your payments 1-2 days after a payment is processed. Your charges will be debited ACH regardless if it was an ACH or paper draft payment.

   • Charges:There is no charge to send bills via Johnson State and Bank of Ulysses Bill Payment. You may pay an unlimited number of bills. However your bill payment debits will still be subject to the $0.05 service charge for each debit item in any month on accounts with a balance of less than $500.00 at any time in the month. For additional information see our “Truth in Savings Disclosure”.
   • Additional Fees:
     • You will be charged an additional fee for any payments returned for insufficient funds. This fee will be $20 per item. In addition to the fee your account will be blocked until funds have been made available.
     • You will be charged an additional fee for any stop payment requests. This fee will be $20 per request.

4. Mobile Banking

   Johnson State Bank and Bank of Ulysses offer a mobile banking application for Apple and Android devices. To utilize mobile banking you must already be an established online banking user with a unique username and password. You can download our app by searching for “Johnson State Bank in your Appstore or by accessing https://www.johsonstatebank.com on your mobile device.

   • TransfersTransfers may be made between your accounts through our Mobile Banking App. This transactions are subject to the same cut-off time for transactions as any transfer made through our online banking system via a computer.
   • Mobile Remote DepositWe offer remote deposit through our Mobile Banking App, to register for this service download our app, and click on Deposit Checks. If this is the first time utilizing this option in Mobile Banking, you will be prompted to agree to our Remote Deposit Agreement. We will receive your registration and submit it through an approval process. This may take between 3-5 days. If you are approved for Remote Deposit you will received an e-mail and can begin depositing checks remotely. If you are denied you will also be informed by e-mail with the reason. You may typically re-apply in six months.
     • Deposit limits will also be established. For more information please contact Johnson State Bank or Bank of Ulysses.
     • You are required to keep the original check that you deposit remotely for a period of 90 days.
     • You are required to endorse your check properly with the following
       • You Signature
       • Your account #
       • “For Mobile Banking only at Johnson State Bank”
     • All deposits are subject to approval and may be rejected for any reason. You will be notified via e-mail and phone if we reject your deposit.
     • If you deposit a check remotely that item is no longer negotiable. Any attempts to re-negotiate the same item will result in immediate termination of your remote deposit privileges and you will be liable for any funds you have used. You also agree to not submit a check for Remote Deposit that has been submitted remotely to another financial institution.

5. E-Statements

   You may elect to receive your periodic statement(s) through our online banking system. This statement will be offered to you free of charge. Notice of your statement’s availability will be sent via e-mail. To set up e-statements please visit our website via a computer at https://www.johnsonstatebank.com. You must already be a current user of Online Banking. Go to Additional Services, E-Statements and follow the onscreen instructions. Once you sign up for E-statements you will no longer receive a paper statement in the mail.

6. Transaction Information and Troubleshooting:

   • Transaction Information
     • The cut-off time is 4:00 pm for same day transactions, those transfers will be processed on the next business day. Exceptions may apply for holidays.
     • Scheduled Transfers: can be set for weekly, monthly and bi-weekly. The year set for transfers cannot exceed 2031, and the year must always be entered in 4 digits. The number of payments cannot exceed 9,999.
   • Troubleshooting:If online banking is not working properly please check the following first:
     • Make sure your internet browsers are up to date and working properly for other websites.
     • Please also make sure your computer is Cookies and JAVA enabled.

     Metavante Customer Service

     Phone Number:	1-800-823-7555
     Support Hours:	Monday – Friday 7:00 am to 11:00 pm Saturday 8:30 am to 5:00 pm

     The Johnson State Bank

     Phone Number:	Johnson: 620-492-6200 Ulysses: 620-356-1922
     Support Hours:	Monday – Friday 9:00 am to 4:00 pm

     04/2010

ELECTRONIC FUNDS
TRANSFER DISCLOSURE

Member FDIC

Electronic Funds Transfer (EFT) is a transfer of funds which is initiated electronically rather than with a paper instrument and which debits or credits an account. Initiated electronically means by electronic terminal, telephone, computer, or magnetic tape. The Electronic Funds Transfers we are capable of handling are indicated below; some of which may not apply to your account.

For purposes of these disclosures, our business days are Monday through Friday, holidays not included.

Electronic Check or Draft Conversion

Your check or draft can result in an electronic funds transfer. This can happen in several ways.

For example:

• You can purchase goods or pay for services and authorize a merchant or service provider to convert your check or draft into an electronic funds transfer
• At the time you offer a check or draft 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 or draft is returned for insufficient funds. Paying such a fee electronically is an electronic funds transfer.

Your authorization to make these types of electronic fund transfers may be expressed in writing or implied through the posting of a sign.

Internet Banking/Mobile Banking

You can access your account(s) you maintain with us by computer or mobile device using your assigned user ID and password to:

• Get Balance and transaction history about deposit accounts and loan accounts.
• Transfer funds between your deposit accounts
• Transfer funds and/ or make payments between accounts.
• Online Bill Payment- Bank customers may utilize unlimited Bill Pay services at no charge.
• Deposit checks using our mobile app (Must be approved for this service). Deposits are subject to approval and our funds availability policy. In most cases deposits that are submitted before 4:00 pm or on a day that is not considered a business day will typically be available during processing on the next business day. Longer delays may occur.

ATM/VISA CHECK CARD TRANSACTIONS

You may use your card to:

• Withdraw cash from your account
• Make deposits to your account
• Transfer funds between your accounts
• Inquire as to the balance in your account
• Pay for purchases at places that have agreed to accept your card
• Pay bills directly (by telephone) from your checking or savings account in the amounts and on the days you request.

Some of these services may not be available at all terminals.

There are no limitations on the frequency of EFTs you make with your ATM/Debit cards, except those shown on the Truth in Savings Disclosure brochure given to you at the time of account opening, relating to Money Market Checking Accounts and Savings Accounts.

ATM card withdrawals are limited to a maximum of $100 per day. A day is a period of 24 consecutive hours. Saturday, Sunday, and holidays are included when calculating daily withdrawal levels.

You may withdraw up to $260 from our terminals each day from your Visa Check Card. You may buy up to $500 worth of goods or services each day you use your Visa Check Card in our point-of-sale transfer service.

Service Charges

Service charges, including a $1.00/occurance charge for foreign ATM use, are deducted from your account monthly. All our service charges, including service charges for EFTs, are listed on the Truth in Savings Disclosure brochure given to you at the time of account opening. Copies are available upon request from our offices.

When you use an ATM not owned by The Johnson State Bank/ Bank of Ulysses you may be charged a fee by the ATM owner.

Documentation

You will receive the following documentation on EFTs.

• You will get a receipt at the time you use your card at our terminal.
• If you have arranged to have direct deposit made to your account at least once every 60 days from the same person or company, you can call us at 1-620-492-6200 or 1-620-356-1922 to find out whether or not the deposit has been made.
• You will get a monthly statement for your checking account.
• You will get a monthly statement for your savings account for any month in which there is an EFT (other than balance inquiry); in any case you will get a statement for your savings account at least quarterly.

Documentation of Small Amount Terminal Transfers

At some ATM’s or point-of-sale terminals, you may not get a receipt if the amount of the transfer is $15.00 or less. This is an exception to the general rule stated for terminal transfers under the Documentation section above.

Lost or Stolen Cards

DO NOT write your personal identification number (PIN) on anything or keep it with your card.

Tell us AT ONCE if you believe your card has been lost or stolen, or if you believe your card has been used without your permission. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account (plus your overdraft protection). If you tell us within 2 business days after the loss of your card and/or code, you can lose no more than $50 if someone used your ATM Card (no more than $0 if someone used your VISA Check Card) without your permission.

If you do NOT tell us within 2 business days after you learn of the loss or theft of your card, and we can prove we could have stopped someone from using your card 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, including those made by card or other means, 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 a hospital stay) kept you from telling us, we will extend the time period.

If you believe your card has been lost or stolen, call: 620-492-6200

Or write:

Linda Wilkerson
C/O Johnson State Bank
P.O. Box 130
Johnson, KS 67855

You should also call the number or write to the address listed if you believe a transfer has been made using the information from your check without your permission.

Your Responsibilities and Our Rights

The use of a card presents opportunities for fraudulent transactions and for loss both to you and to us. An EFT withdrawal is different from a withdrawal made by means of a paper check. We have the opportunity to examine the paper check and to refuse payment if it is irregular. An EFT withdrawal, on the other hand, occurs without any exercise of discretion on our part. If funds are available in your account, our computer debits the account automatically and instantaneously.

You must use caution to protect both your card and your personal identification number (PIN) from unauthorized use which might result in loss to you or to us. It is in your best interest and ours that we know your current mailing address so that you can promptly receive your statements and examine them to detect improper EFTs.

We reserve the right to permanently or temporarily revoke your right to use the card and to close your account by sending you a check for the balance if:

• We have evidence proving your failure to safeguard your card or PIN; or
• You overdraw your account using the card; or
• You fail to notify us of a change of your address

Stop Payment on Pre-Authorized Payments

If you have made arrangements with any person or company to regularly withdraw payments from your account electronically, you can stop any of these payments. Here’s how:

Call or write us at the telephone number or address listed in this notice.

We must receive your request 3 business days or more before the payment is to be made. If you call, we will also require you to put your request in writing and get it to us within 14 days after you call. We will charge you $20.00 for each stop-payment order you give.

If these regular payments vary in amount, the person or company you are paying must tell you 10 days before each payment when it will be made and how much it will be.

If you order us to stop one of these pre-authorized electronic payments 3 business days or more before it is scheduled, and we do not do so, we may be liable for any losses or damages.

Full liability may be imposed on you if you do not notify The Bank within 60 days of receiving the account statement upon which the first unauthorized transfer appears.

Liability Limitations

If we do not complete a transfer to or from your account on time or 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 do not have enough money in your account to make the transfer; or
• If the automated teller machine where you are making the transfer does not have enough cash: or
• If the terminal was not working properly and you knew about the breakdown when you started the transfer; or
• If circumstances beyond our control (such as fire or flood) prevent the transfer from occurring, despite reasonable precautions that we have taken; or
• If the transfer would exceed the limit of the overdraft line of credit (if any) associated with your account.

There may be other exceptions stated in our agreement with you.

Disclosure to Third Parties

We will disclose information to third parties about your account or the transfers you make:

• Where it is necessary for completing transfers; or
• In order to verify the existence and condition of your account for a third party, such as credit bureau or merchant; or
• In order to comply with government agency or court orders; or
• If you give us your written permission.

In Case of Errors or Questions about Your Electronic Transfers

Call or write us at the telephone number or address listed on the front of this notice as soon as possible if you think your receipt is wrong or if you need more information about EFTs on the statement or receipt. We must hear from you no later than 60 days after we send you the FIRST account statement on which the problem or error appeared.

• Tell us your name and account number.
• Describe the error or 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.
• Tell us the dollar amount of the suspected error.

If you tell us orally, we will 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, (5 business days for VISA debit card), 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, (five business days for VISA debit card), 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 not credit your account.

For errors involving new accounts, point-of-sale, or foreign-initiated transactions, we may take up to 90 days to investigate your complaint or question. For new accounts, we may take up to 20 business days to credit your account for the amount you think is in error. If the complaint or question we have requested in writing is not received within 10 business days we may not 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 the documents that we used in our investigation.

Johnson lobby business hours are Monday through Friday from 9:00 a.m. to 4:00 p.m. Saturday drive up hours are 9:00 a.m. to 12:00 p.m.

Bank of Ulysses lobby business hours are Monday through Friday 9:00 a.m. to 4:00 p.m. Monday through Thursday drive up hours are 8:00 a.m. to 5:00 p.m. and Saturday from 8:00 a.m. to 12:00 p.m. Drive up hours on Fridays is 8:00 a.m. to 6:00 p.m.

YOUR ABILITY TO WITHDRAW FUNDS AT
The Johnson State Bank/Bank of Ulysses