Internet Banking Agreement

Effective September 30, 2021

PLEASE READ THIS AGREEMENT CAREFULLY AND KEEP A COPY FOR YOUR RECORDS
This agreement regarding Internet Banking for Home State Bank applies to each account you have with Home State Bank where Internet Banking is utilized.
The words "we", "us", and "our" means Home State Bank and the words "you" and "your" means you, the individual(s) who is identified as the owner or authorized signer on the Account(s).

1. The Service. In consideration of the Internet Banking services (Services) to be provided by Home State Bank ('Bank'), as described from time to time in information distributed by Bank to its customers. In the agreement, "Customer" refers to the person(s) subscribing to or using the Service, the Customer agrees as follows:

Customer agrees to use a Personal Computer (PC) through an Internet connection to access Bank's online banking site, www.hsbroyal.com for the following purposes:

1. Obtain account balances and transaction information;
2. Obtain periodic statements on Customer's account(s);
3. Transfer money between Customer's accounts;
4. Make loan payments on Customer's loans at the Bank.

However, transfers from your savings and Money Market accounts are considered pre-authorized transfers, and pre-authorized transfers are limited to six (6) per monthly statement cycle by federal regulations (See Home State Bank disclosure for applicable service charges on accounts).

2. Software and Hardware Requirements
   1. Internet Explorer (version 11); MS Edge, Chrome (current version), Firefox (current version), Safari (current version), Safari for iOS (current version);
   2. Adobe ® Acrobat ® Reader ® 8.0 or higher;
   3. An e-mail account with an internet service provider and e-mail software in order to participate in our electronic communications program.
3. Your User Name and Password. Each individual who has access to Home State Bank's Internet Banking must designate a user name and password. Your User Name must be a minimum of 6 characters, up to a maximum of 19 characters with no spacing between the characters and is case sensitive. The User name may contain alpha, numeric, and/or special characters. Your password can not be the same as your User Name, it must be a minimum of 9 characters, up to a maximum of 17 characters, which must consist of at least one (1) numeric character, one (1) uppercase character, one (1) lowercase character, and one (1) special character and is case sensitive. For example, your password may be: 1W#nt2Bnk! It is recommended that your password not include keywords, predictable terms, and numbers series for security purposes. You will be required to change your password periodically to enhance security.
4. Statements. All payments, transfers, and/or fees made with Home State Bank's Internet Banking Service will appear on your monthly Account statement. The Payee name, payment amount, and date of the payment will be shown for each payment made through the Service during that month.
5. Fees. Fees for Home State Bank's Services shall be payable in accordance with a schedule of charges as established and amended by Home State Bank from time to time. Charges shall be automatically deducted from customer's Account, and Home State Bank shall provide to Customer monthly notice of such debit(s) on your statement.
6. Equipment. You are solely responsible for the equipment (including, in the case of Internet Banking, your personal computer and software) you use to access the Services. We are not responsible for errors or delays or your inability to access the Services caused by your equipment. We are not responsible for the cost of upgrading your equipment to stay current with the Services nor are we responsible, under any circumstances, for any damage to your equipment or the data resident thereon.
7. Internet Business Days/Hours of Operation. The Service is available 24 hours a day, seven days a week, except during maintenance periods, for the scheduling of payment orders and transfers. However, payments and transfers can be completed only on business days. The BANK is not responsible if internet service is down for an extended period of time.
8. Notice of Your Rights and Liabilities. Security of your transactions is important to us. Use of the Services may therefore require a password. If you lose or forget your password, please call 712-933-5511 or toll tree at 877-474-5511 during normal business hours or leave a voice mail message. We may accept as authentic any instructions given to us through the use of your password. You agree to keep your password secret and to notify us immediately if your password is lost or stolen or if you believe someone else has discovered your password. You agree that if you give your password to someone else, you are authorizing them to act on your behalf, and we may accept any instructions they give us to make transfers or otherwise use the Services. Internet Banking Services enables you to change your password; we require that you do so regularly. We may be liable for certain security breaches to the extent required by applicable law and regulation. We do not assume any other liability or otherwise guarantee the security of information in transit to or from our facilities. Please note that we reserve the right to (1) monitor and/or record all communications and activity related to the Services; and (2) require verification of all requested transfers in the manner we deem appropriate before making the transfer (which may include written verification by you). You agree that our records will be final and conclusive as to all questions concerning whether or not your password was used in connection with a particular transaction. If any unauthorized use of your password occurs you agree to (1) cooperate with us and appropriate law enforcement authorities in identifying and prosecuting the perpetrator; and (2) provide reasonable assistance requested by us in recovering any unauthorized transfer of funds.

Tell us AT ONCE if you believe your password has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account (plus your maximum overdraft line of credit). You can call 712-933-5511 or toll tree at 877-474-5511 during normal business hours or leave a voicemail after business hours. If you tell us within two (2) business days, you can lose no more than $50 (does not apply to Business accounts) if someone used your password without your permission. If you do NOT tell us within two (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 (does not apply to Business accounts). Also, if your statement shows transfers that you did not make, tell us at once. If you do not tell us within sixty (60) days after the statement was mailed to you, you may not get back any money you lost after the sixty (60) days if we can prove that we could have stopped someone from taking the money if you had told us in time (does not apply to Business accounts). If a good reason (such as a long trip or hospital stay) kept you from telling us, we will extend the time periods. WE CANNOT ACCEPT NOTIFICATION OF LOST OR STOLEN PINS OR PASSWORDS OR UNAUTHORIZED TRANSFERS VIA E-MAIL.

9. Errors and Questions. In case of errors or questions about your electronic transactions, telephone us at 712-933-5511 or toll tree at 877-474-5511 8:30am to 4:00pm Monday through Friday, 9:00am to 11:00am Saturdays, Federal Holidays are not included, or contact us at:

Internet Banking Department
Home State Bank
202 3rd Ave., P.O. Box 79
Royal, Iowa 51357-0079

Contact us as soon as you can, if you think your statement or receipt is wrong or if you need more information about a transaction listed on the statement or receipt. We must hear from you no later than sixty (60) days after we sent you the FIRST statement on which the problem or error appeared. You will need to:

1. tell us your name and Account number (if any);
2. describe the error or the transaction 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. tell us the dollar amount of the suspected error.

If you tell us orally, we may require you to send us your complaint or question in writing within ten (10) business days. We will determine whether an error occurred within ten (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 forty-five (45) days to investigate your complaint or question. If we decide to do this, we will credit your account within ten (10) business days for the amount you think is in error, so that you will have 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 ten (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 twenty (20) business days to credit your account for the amount you think is in error. An account is considered a new account, for thirty (30) days after the first deposit is made. We will tell you the results within three (3) 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 we used in our investigation.

10. Disclosure of Account Information to Third Parties. We may disclose information to third parties about your account or the transactions you make:

1. where it is necessary for completing transactions or resolving errors involving the Services;
2. in order to verify the existence and condition of your account for a third party, such as a credit bureau or a merchant;
3. in order to comply with government agency rules, court orders, or other applicable law;
4. to our employees, service providers, auditors, collection agents, or attorneys in the course of their duties and to the extent allowed by law;
5. if you give us your permission.

11. Preauthorized Payments.

1. Right to stop payments and procedure for doing so - If you have told us in advance to make regular payments out of your account, you can stop any of these payments. Here is how: Call us at 712-933-5511, or write us at 202 3rd Ave., PO Box, 79, Royal, IA 51357, in time for us to receive your request 3 business days or more before the payment is scheduled to be made. If you call, we may 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, plus State and Local Sales Taxes, for each stop-payment order you give
2. Notice of varying amounts - If these regular payments vary in amount, the person you are going to pay will tell you, 10 days before each payment, when it will be made and how much it will be. (You may choose instead to get this notice only when the payment would differ by more than a certain amount from the previous payment, or when the amount would fall outside certain limits that you set.)
3. Liability for failure to stop payment of preauthorized transfer - If you order us to stop one of these payments 3 business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages.

12. Financial Institutions Liability. 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:

1. If, through no fault of ours, you do not have enough money in your account to make the transfer;
2. If the transfer would go over the credit limit on your overdraft line;
3. If the PC was not working properly and you knew about the breakdown when you started the transfer;
4. If circumstances beyond our control (such as fire or flood) prevented the transfer, despite reasonable precautions that we have taken;
5. There may be other exceptions stated in our agreement with you.

13. Authorization to Obtain Information. You agree that we may obtain and review your credit report from a credit bureau or similar entity. You also agree that we may obtain information regarding your Payee Accounts in order to facilitate proper handling and crediting of your payments.
14. Termination. If you want to terminate your access to Home State Bank's Services, call us at 712-933-5511 or toll tree at 877-474-5511. After receipt of your call, we will send a written termination authorization for your signature and return to us. In order to avoid imposition of the next monthly fee, we must receive your written authorization to terminate three (3) days before your service charge is scheduled to assess. RECURRING TRANSFERS WILL NOT NECESSARILY BE DISCONTINUED BECAUSE YOU TERMINATE ACCESS TO THE SERVICES. IF YOU WANT TO MAKE SURE THAT RECURRING TRANSFERS BETWEEN ACCOUNTS ARE STOPPED, YOU MUST FOLLOW THE PROCEDURES IN THE CANCELING PAYMENTS PARAGRAPH ABOVE.

We reserve the right to terminate the online banking service, in whole or in part, at any time with or without cause and without prior written notice. In that event, or in the event that you give us a termination notice, we may (but are not obligated to) immediately discontinue making previously authorized transfers, including recurring transfers and other transfers that were previously authorized but not yet made. We also reserve the right to temporarily suspend the Services in situations deemed appropriate by us, in our sole and absolute discretion, including when we believe a breach of system security has occurred or is being attempted. We may consider repeated incorrect attempts to enter your password as an indication of an attempted security breach. Termination of the Services does not affect your obligations under this Agreement with respect to occurrences before termination,

15. 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 Home State Bank's Service or the use thereof or arising in any way out of the installation, operation, or maintenance of your PC equipment.
16. Waivers. No waiver of the terms of this Agreement will be effective, unless in writing and signed by an authorized officer of Home State Bank.
17. Assignment. You may not transfer or assign your rights or duties under this Agreement.
18. Governing Law. The laws of the state of Iowa shall govern this Agreement and all transactions hereunder. Customer acknowledges that he/she has reviewed this Customer Agreement, understands the terms and conditions set forth herein, and agrees to be bound hereby.
19. Amendments. We can change a term or condition of this Agreement by mailing or delivering to you a written notice at least thirty (30) days before the effective date of any such change. We do not need to provide you with any prior notice where an immediate change in the terms or conditions of this Agreement is necessary to maintain or restore the security of our system or an account. However, even in these cases, if the change is to be made permanent, we will provide you with a notice of the change with the next regularly scheduled periodic statement we send you, or within thirty (30) days, unless disclosure would jeopardize the security of our system or an account. Notices mailed or delivered to you under this paragraph will be considered effective if mailed to the most recent address we show for you in either our Checking or Savings Account records, or e-mail address in which you authorized to receive such notices and/or disclosures.
20. Indemnification. Customer, in consideration of being allowed access to Home State Bank's Services, agrees to indemnify and hold Home State Bank harmless for any losses or damages to the BANK resulting from the use of the Services, to the extent allowed by applicable law.
21. Security Procedures. By accessing the Services, you hereby acknowledge that you will be entering a protected web site owned by Home State Bank, which may be used only for authorized purposes. The BANK may monitor and audit usage of the System, and all persons are hereby notified that use of the Services constitutes consent to such monitoring and auditing. Unauthorized attempts to up-load information and/or change information on these web sites are strictly prohibited and are subject to prosecution under the Computer Fraud and Abuse Act of 1986.

I understand that I am the only individual authorized to use Internet Banking and that use of the Internet Banking signifies agreement to the terms and conditions set forth in this Internet Banking Agreement.

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