Hometown Bank of Anywhere

HomeLoanStateBank

ELECTRONICFUNDSTRANSFERS-YOURRIGHTSANDRESPONSIBILITIES

IndicatedbelowaretypesofElectronicFundsTransferswearecapableofhandling,someofwhichmaynotapplytoyouraccount. Pleasereadthisdisclosurecarefullybecauseittellsyouyourrightsandobligationsforthetransactionslisted. Youshouldkeepthisnoticeforfuturereference.

IfyouapplyforandreceiveanATMand/orDebitCardfromusoryourequestandweagreetoprovideanypre-authorizedelectronicfundstransferstoorfromyouraccount,youagreetothefollowingterms. Youmaybeassignedapersonalidentificationnumber(PIN)touseinmakingsuchtransfers. Youruseoftheelectronicfundstransferservicesyouhaverequestedwillconfirmyouragreementtotheseterms. Thesetermsapplyonlytoaccountsusedforpersonal,familyorhouseholdpurposes.

AvailableElectronicFundsServices

AutomatedTellerMachine(ATM)Transactions–Youmayaccessyouraccount(s)byATMusingyourATMcardandpersonalidentificationnumber(PIN),to:

Getcashwithdrawalsfromcheckingorsavingsaccount(s)fromanyATM

Transferfundsbetweenyouraccounts

Inquireaboutthebalanceonyouraccount(s)

Duetothehighoccurrenceofidentitytheftandfraud,ifyouplantouseyourATMCardinaforeigncountry,pleasemakespecialarrangementswiththebank.

MasterCardDebitCard/ATMTransactions–YoumayuseyourDebitCardto:

Payforpurchasesandservicesatbusinessesthathaveagreedtoacceptthecard,eitherinpersonorbyphone

Getcashfromparticipatingfinancialinstitutions

WithdrawcashfromyourcheckingorsavingsaccountsatanATM

TransferfundsbetweenyourcheckingandsavingsaccountsuponrequestatanATM

MakebalanceinquiriesatanATM

Someoftheseservicesmaynotbeavailableatallterminals–anyserviceatanATMwillalsorequireyourPIN.

Youagreenottouseyourcard(s)forillegalgamblingorotherillegalpurposes. Displayofapaymentcardlogoby,forexample,anonlinemerchantdoesnotnecessarilymeanthattransactionsarelawfulinalljurisdictionsinwhichthebusinessmaybelocated.

Duetothehighoccurrenceofidentitytheftandfraud,ifyouplantouseyourMasterCardDebitCardinaforeigncountry,pleasemakespecialarrangementswiththebank.

PreauthorizedTransfers– Youmayarrangeforusto:

Acceptcertain“direct”depositstoyourcheckingorsavingsaccounts

Paycertainrecurringbillsfromyourcheckingaccountintheamountsandonthedaysyourequest

Automaticallytransferfundsbetweenyourcheckingandsavingsaccountsintheamountandonthedaysyourequest

ElectronicCheckConversion–

Yourcheckcanresultinanelectronicfundstransfer. Thiscanhappeninseveralways. Forexample:

Youmaypurchasegoodsorpayforservicesandauthorizeamerchantorserviceprovidertoconvertyourcheckintoanelectronicfundstransfer

Atthetimeyouofferachecktoamerchantorserviceprovider,youmaybeaskedtoauthorizethemerchantorserviceprovidertoelectronicallycollectachargeintheeventthecheckisreturnedforinsufficientfunds.Payingsuchafeeelectronicallyisanelectronicfundstransfer.

Yourauthorizationtomakethesetypesofelectronicfundstransfersmaybeexpressedinwritingorimpliedsimplythroughthebusinesspostingasign.

TelephoneTransferServices–Bycalling970-242-4572usingatouch-tonephone,youraccountnumbers,andyourPIN,youmayutilizeourDial-a-Bankto:

Makebalanceinquiriesonyouraccounts

Transferfundsbetweenyouraccounts

Obtaininformationabouttransactionsonyouraccounts

ComputerTransfers–Youmayarrangeto:

Accessyouraccountsbycomputerat

Transferfundsbetweenaccounts

Makepaymentsfromyouraccountstoaloanwithus

Makepaymentsfromyouraccountstopaybills

Obtainbalancesandtransactionhistory

LimitationsonFrequencyofTransfers

Youmaymakeonlythree(3)cashwithdrawalsperbusinessdayfromterminals

Youmaynotauthorizeelectronicwithdrawalsfromatimedeposit

Transfersfromastatementsavingsaccounttoanotheraccountortothirdpartiesbypreauthorized,automatic,computer,ortelephonetransferarelimitedbyfederalregulationtosixpermonth,nomorethanthreeofwhichmaybebyonlinepurchaseorsimilarordertothirdparties. Notransactionsareallowedbycheckordebitcard.

Transfersfromamoneymarketaccounttoanotheraccountortothirdpartiesbypreauthorized,automatic,computer,ortelephonetransferarelimitedbyfederalregulationtosixperstatementcycle,nomorethanthreeofwhichmaybebycheck,debitcard,onlinepurchase,orsimilarordertothirdparties.

LimitationsonDollarAmountsofTransfers

YoumayuseyourATMcardtowithdrawuptoyouravailablebalanceor$210,whicheverisless,fromterminalseachbusinessday.

Youmaybuyuptoyouravailablebalanceor$1000,whicheverisless,worthofgoodsorserviceseachbusinessdaywithourpoint-of-saletransferserviceusingyourMasterCarddebitcard.

YoucanuseyourMasterCarddebitcardtogetcashadvancesfromanyfinancialinstitutiondisplayingtheMasterCardlogo. Thedailymonetarylimitallowsadvancesuptoyouravailablebalanceor$210,whicheverisless,onanybusinessday.

FeesandsCharges

Ourbankdoesnotchargeforelectronictransactionsorinquiriesmadebyourcustomersusinganyofourelectronicservices.

PossibleChargesforUseofAutomatedTellerMachinesOperatedbyOtherInstitutions: Ifyouperformatransactionatanautomatedtellermachine(ATM)thatwedonotownoroperate,youmaybechargedafeetotheoperatorofthatmachine. Inaddition,youmaybechargedafeetoanynational,regionalorlocalnetworkutilizedtoeffectthetransaction,evenifyouonlymakeaninquiry.

WhenyouuseyourcardatamerchantthatsettlesincurrencyotherthanUSdollars,thechargewillbeconvertedintotheUSdollaramount. ThecurrencyconversionrateusedtodeterminethetransactionamountinUSdollarsiseitheragovernment-mandatedrateorthewholesalemarketrateineffectthedaybeforetheprocessingdate. The1%internationalfeewillbeshowninUSfundsasaseparateamountonyourmonthlyaccountstatement.

Thereisanannualfeeof$5onHLSBMastercardDebitCards.Thisfeeisassessedpercardafterthefirstyearofissuance.

Documentation

TerminalTransfers: Youwillbeofferedareceiptatthetimeyoumakeanytransfertoorfromyouraccountusingoneofourautomatedtellermachinesorpoint-of-saleterminals.

PreauthorizedCredits: Ifyouhavearrangedtohavedirectdepositsmadetoyouraccountatleastonceevery60daysfromthesamepersonorcompany,youcancallusat970-243-6600duringbusinesshoursoruseourDial-A-Bankat970-242-4572tofindoutwhetherornotthedeposithasbeenmade.

PeriodicStatements:YouwillgetamonthlyaccountstatementfromusforyourcheckingorNOWaccounts. Youwillgetaquarterlyaccountstatementfromusforyourstatementsavingsaccounts,ormoneymarketaccountsunlessthereareelectronictransfersinaparticularmonthinwhichcaseyouwillgetastatementduringthatmonth.

Pre-AuthorizedTransfers

Noticeofvaryingamounts:Iftheseregularpaymentsmayvaryinamount,thepersonorcompanyyouaregoingtopaywilltellyou,10daysbeforeeachpayment,whenitwillbemadeandhowmuchitwillbe. Youmaychooseinsteadtogetthisnoticeonlywhenthepaymentwoulddifferbymorethanacertainamountfromthepreviouspayment,orwhentheamountwouldfalloutsidecertainlimitsthatyouset.

Righttostoppaymentandprocedurefordoingso:Ifyouhavetoldusinadvancetomakeregularpaymentsoutofyouraccount,youcanstopanyofthesepaymentsbycalling970-243-6600,orwriteusatHomeLoanStateBank,P.O.Box100,GrandJunction,CO81502,intimeforustoreceiveyourrequestthreebusinessdaysormorebeforethepaymentisscheduledtobemade. Ifyoucall,wemayalsorequireyoutoputyourrequestinwritingandgetittouswithin14daysafteryoucall.Wewillchargeyouafeeforeachstoppaymentorderyougive.

Ifyouorderustostoponeofthesepaymentsthreebusinessdaysormorebeforethetransferisscheduled,andwedonotdoso,wewillbeliableforyourlossesordamages.

LiabilityForFailureToMakeTransfers

Ifwedonotcompleteatransfertoorfromyouraccountontimeorinthecorrectamountaccordingtoouragreementwithyou,wewillbeliableforyourlossesordamages.However,therearesomeexceptions.WewillNOTbeliable,forinstance

If,throughnofaultofours,youdonothaveenoughmoneyinyouraccounttomakethetransfer;

Ifyouhaveanoverdraftlineandthetransferwouldgooverthecreditlimit;

Iftheterminalorsystemwasnotworkingproperlyandyouknewaboutthebreakdownwhenyoustartedthetransaction;

Ifcircumstancesbeyondourcontrol(suchasfireorflood)preventthetransfer,despitereasonableprecautionsthatwehavetaken;

Theremaybeotherexceptionsstatedinouragreementwithyou.

DisclosureofAccountInformationToThirdParties

Wewilldiscloseinformationtothirdpartiesaboutyouraccountorthetransfersyoumake:

Whereitisnecessaryforcompletingtransfers;

Inordertoverifytheexistenceandconditionofyouraccountforathirdparty,suchasacreditbureauormerchant;

Inordertocomplywithgovernmentagencyorcourtorders;or

Ifyougiveusyourwrittenpermission

BusinessDays

OurbusinessdaysareMondaythroughFriday. Federalholidaysarenotincluded. Forpurposesoflimitationsonfrequencyoftransfersandlimitationsondollaramountsoftransfers,fromFriday6:00p.m.untilMonday6:00p.m.isconsideredonebusinessday.

UnauthorizedTransfers

ConsumerLiability. TellusATONCEifyoubelieveyourcardand/orcodehasbeenlostorstolen. Telephoningisthebestwayofkeepingyourpossiblelossesdown. Iftheunauthorizeduseofyourlostorstolencardand/orcodeoccursthroughnofaultofyours,noliabilitywillbeimposedonyou. Otherwise,youwillbeliableforthelesserof:(1)$50.00,or(2)theamountofmoney,property,orservicesobtainedbyunauthorizeduseofthecardand/orcodebeforeyougaveusthenotice.

Also,ifyourstatementshowstransfersthatyoudidnotmake,tellusatonce. Ifyoubelieveyourcardand/orPINhasbeenlostorstolenorthatsomeonehastransferredormaytransfermoneyfromyouraccountwithoutyourpermission,callorwriteusatthetelephonenumberoraddresslistedinthisdisclosure. Exceptforelectronicfundstransfersmadebycardorotherdeviceforuseatacommunicationsfacility,suchasanATM,ifyoudonottelluswithin60daysafterthestatementwasmailedtoyou,youmaynotgetbackanymoneyyoulostifwecanprovethatwecouldhavestoppedsomeonefromtakingthemoneyifyouhadtoldusintimeastotransactionsarisingfromtheunauthorizeduseofthecardand/orcode,ifyourfailuretoexamineyourstatementortotellusconstitutesalackofduediligenceonyourpart. Ifagoodreason(suchasalongtriporahospitalstay)keptyoufromtellingus,wemayextendthetimeperiod.

Theeffectofthispolicyisto: 1)clarifythatyouarenotliableforunauthorizedtransferswithacardand/orcodethatoccurthroughnofaultofyours;and2)statethatyoucouldbeat"fault"ifyoufailtoreviewyourstatementinatimelymanner. Keepthisnoticewithyouraccountrecords. Continueduseoftheelectronicfundstransferservicesweofferconstitutesacceptanceoftheseterms.

Youmayalsoberequiredtoprovideadditionaldocumentationinsupportofyourclaim,includinganaffidavitofunauthorizeduseandapolicereport.

UseofyourCardis“authorized”ifusedbyyouoranyonetowhomyouhavegivenactual,implied,orapparentauthorityorusebyanypersontowhomyougaveyourCardorPIN. YouagreetotakereasonablestepstosafeguardyourCardandPIN,andfurtheragreenottowritethePINontheCard;nottodisclosethePINtoanyoneotherthananauthorizedperson;andnottogiveyourCardtoanyoneotherthananauthorizedperson.

ChangesInTermsAffectingElectronicFundsTransfers

Fromtimetotimewemaychangethetermsandconditionsofyouraccount,includingthetermsapplicabletoelectronictransfers. Unlessanimmediatechangeisnecessarytoensurethesecurityofourelectronictransfersystemoryouraccount,wewillsendyoupriorwrittennoticeasrequiredbylaw. WewillnotifyyouofanychangeinaccordancewiththerequirementsofRegulationEifwewould:

Increaseyourchargesorliability;or

Decreasethenumberofservicesyoucanuse;or

Placestricterlimitsonthefrequencyoramountoftransfersthatyoucanmake.

TerminationofElectronicFundTransferPrivileges

Allofyourelectronictransferprivilegeswillendifyouraccountisclosed. EithertheBankoryoumayterminatespecificelectronictransferserviceswithoutclosingyouraccount. Youmayterminateaservicebycallingorwritingusatthenumberoraddressprovided. WemayterminateyourCardorPINoryourrighttoreceiveelectronicfundstransfersatanytime.

ErrorResolutionNotice

IncaseofErrorsorQuestionsAboutYourElectronicTransfers. Telephoneusat970-243-6600orwriteusatHomeLoanStateBank,P.O.Box100,GrandJunction,CO

81502assoonasyoucanifyouthinkyourstatementorreceiptiswrongorifyouneedmoreinformationaboutatransferlistedonthestatementorreceipt.

(1) ForelectronictransactionsotherthanATMordebitcard,wemusthearfromyouwithin60daysofyourreceivingthestatementonwhichthetransactionappears.(2) Tellusyournameandaccountnumber(ifany);

(3) Describetheerrororthetransferyouareunsureaboutandexplainasclearlyasyoucanwhyyoubelieveitisanerrororwhyyouneedmoreinformation;(4) Tellusthedollaramountofthesuspectederror.

Ifyoutellusorally,wemayrequirethatyousendusyourcomplaintorquestioninwritingwithin10businessdays.

MasterCardDebitCard/POSTransactions–Investigations

TheBankwillattempttocompleteourinvestigationwithin5businessdaysofyournotifyingus.Ifweneedmoretime,wemaytakeupto90daystoinvestigateyourcomplaintorquestionifweprovisionallycredityouraccountwithin5businessdaysfortheamountyouthinkisinerror. Youwillhavetheuseofthemoneywhilewecompleteourinvestigation.

Ifweaskyoutosendyourcomplaintorquestioninwritingthefollowingrulesapply. Ifwereceiveyourwrittennoticewithin5businessdays,wewillprovisionallyrecredityouraccountbytheendofthe5-dayperiod. Ifwereceiveyourwrittennoticeaftertheendofthe5-dayperiodbutwithin10businessdays,wewillprovisionallyrecredityouraccountbytheendofthe10-dayperiod. Ifwedonotreceiveyourwrittennoticewithin10businessdays,weneednotprovisionallyrecredityouraccount.

Ifthetransactionatissueoccurredduringthefirst30daysyouraccountisopen,the5-dayand10-dayperiodsdescribedinthissectionarechangedtoa20-dayperiod.

ATMandOtherElectronicTransactions– Investigations

TheBankwillattempttocompleteourinvestigationwithin10businessdaysofyournotifyingus.Ifweneedmoretime,wemaytakeupto45days(90daysforforeigntransactionsorifyouraccounthasbeenopen30daysorless),ifweprovisionallycredityouraccountwithin10businessdaysfortheamountyouthinkisinerror. Youwillhavetheuseofthemoneywhilewecompleteourinvestigation.

Ifweaskyoutoputyourcomplaintorquestioninwritingandwedonotreceiveitwithin10businessdays,wemaynotprovisionallycredityouraccount.

The10-dayperioddescribedinthissectionischangedto20businessdaysifthetransactionatissueoccurredduringthefirst30daysyouraccountisopen.

Wewillreporttheresultstoyouwithin3businessdaysaftercompletingourinvestigationandcorrectanyerrorpromptly.Ifwefindthattherewasnoerror,ortheerrorwasnotasyouthought,wewillsendyouawrittenexplanation. Youmayaskforcopiesofthedocumentsweusedinourinvestigation.

AddressandTelephoneNumber

IfyoubelieveyourCard/PINhasbeenlostorstolenorthatsomeonehastransferredormaytransfermoneyfromyouraccountwithoutyourpermission,contactusat:

Rev7/08

970-243-6600or1-800-576-6428

HomeLoanStateBank

P.O.Box100

GrandJunction,CO81502