A. Your Liability
If your TNBOnline Banking password has been compromised and you tell us within two (2) business days after learning of the loss or theft you can lose up to $50 of the disputed amount, if someone used your password without your permission to access a Texas National Bank deposit account. If you do NOT tell us within two (2) business days after you learn of the loss or theft, and we could have stopped someone from taking money without your permission had you told us, you could lose as much as $500 of the disputed amount. If your monthly statement shows withdrawals, transfers or purchases that you did not make or authorize, you must notify us at once. If you do not notify us within sixty (60) days after the account transaction detail information was transmitted or mailed to you, and we could have stopped someone from taking money if you had told us in time, you may not get back any money lost after the sixty (60) days. If there are extenuating circumstances that kept you from telling us, the time periods in this section may be extended.

B. Preventing Misuse
It is extremely important that you take an active role in the prevention of any wrongful use of your account. If you find that your records do not agree with ours, you must immediately call Texas National Bank at (903) 586-0931. Protect Your Password - The password that is used to gain access to TNBOnline Banking should be kept confidential at all times. For your protection we recommend that you change your password regularly. It is recommended that you memorize this password and do not write it down. You are responsible for keeping your password, account numbers and other account data confidential. If you believe that your password may have been lost or stolen, or that someone has transferred or may transfer money from your account without your permission, notify Texas National Bank at once.

3. Your Right to Stop Payments

A. Rights and Procedures to StopPayment by Check
You may issue a stop payment against any check number or range of check numbers. The stop payment will be effective for six (6) months from the date it is created. You may stop a payment through a telephone call to a Customer Service Representative at your local Banking Center. If you request the stop payment by telephone, we may also require you to put your request in writing and submit it to us within 14 days after you call. If we ask for a written request but are not provided it within the 14 day period, the stop payment may be released. We will charge you our regular stop payment fee for each stop payment order you give; this fee will be charged in accordance with the current fee schedule. Do not write or e-mail these requests to us since they may not be received by us in time.

NOTE: There are a number of merchants and businesses which have begun to convert checks into electronic items, which are cleared in an entirely different manner than normal checks. To understand how to stop these items, please see Section B. Rights and Procedures to Stop Payment by ACH Item below. The following information will be required to complete each stop payment request:

• Account Number

• Payee

• Amount

• Item Reference Number

• Reason for the Stop Payment

B. Rights and Procedures to Stop Payment by ACH Item
The term “Automated Clearing House” is an entity that operates as a clearing house for electronic Debit or Credit entries pursuant to an agreement with an association that is a member of the National Automated Clearing House Association. Items passing through this system of dispersement and collection are referred to as ACH items.

We ask you to come into one of our Banking centers, where an affidavit will be required to stop any ACH item. We will require the name of the company, the amount and scheduled date of the transaction. All of this information should be provided in a timely manner so Texas National Bank may be prepared for the transaction. TNBOnline Remote Banking Services may not be used to stop ACH items.

4. Bank’s Liability

A. Failure to Make Stop Payments
If you order us to stop one of these payments according to the limitations listed above in Section 3 and we do not do so, we will be liable for your losses or damages up to the value of the payment.

B. Failure to Make Transfers
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 up to the value of the transfer. 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;

• If the transfer will go over the credit limit on your Overdraft Agreement;

• If the system was not working properly;

• If there is a dispute about the amount to be paid or transferred, or we have been legally ordered to pay to or hold the money in your account for someone else;

• If a withdrawal would consist of money deposited in the form of a check or other order and is not yet available for withdrawal;

• If you have told us that your PIN was lost or stolen;

• If, in the case of a preauthorized credit or debit to your account, a third party does not send your money to us on time or does not send us the correct amount, or we do not have the required authorization to perform the transaction;

• If circumstances beyond our control (such as fire, flood, or natural disaster) prevent the transfer, despite reasonable precautions and efforts we have taken; or

• Other exceptions as may be stated in our stop-payment agreement with you

5. Accessing Your Texas National Bank Accounts

A. Requirements
To access your account(s) through the Internet, you must have Internet access, have an eligible Texas National Bank account, enroll in TNBOnline Banking by agreeing to the Internet Account Access Agreement, and have an Internet password. In addition, you will need the required secure, Internet browser software as defined by the Bank.

B. New Services
Texas National Bank may, from time to time, offer and introduce new Internet services. The Bank will notify you of the existence of these new products and services. By using these services when they become available, you agree to be bound by the rules, which will be communicated to you, concerning these services.

C. Fees
TNBOnline Banking with iPay is offered as a free service to our customers; however, there are additional features and services, such as, but not limited to Business Banking, Stop Payments, etc., the use of which may incur fees. In most cases, you will be warned by the service when your requested action has associated fees and allowed an opportunity to agree to the fees or cancel the transaction. In those cases where immediate notification is not feasible, the fee structure will have been outlined expressly in the appropriate section of this Online Banking Agreement, your application for a particular service, or our published fee schedule.

6. Terms and Conditions

The first time you access your Texas National Bank account(s) through the Internet confirms your agreement to be bound by all of the terms and conditions of this Agreement and acknowledges your receipt and understanding of this disclosure.

A. Your User Name and Internet Password
You will be given an initial Internet password for TNBOnline Banking. The first time you access your Texas National Bank account(s) you will be forced to select a new password. We recommend that you change your password regularly. Do not use numbers that are easily associated with you, such as your telephone number, address or birth date as your password. You are authorizing Texas National Bank to act on instructions received under your login name and password. You are responsible for keeping your user name, password, account number(s) and other account data confidential at all times. Texas National Bank will not, at any time, ask for your Internet password. If anyone calls and requests this information do NOT give it to them and contact the bank immediately.

B. Our Liability
Except as specifically provided for in this Agreement or where the law requires a different standard, you agree that neither the bank nor its Internet Service Provider shall be responsible for any loss, property damage or bodily injury, whether caused by the bank, equipment, software, or Internet access providers or any agent or subcontractor of any of the foregoing. Nor shall the bank or its Internet Service Providers be responsible for any direct, indirect, special or consequential, economic or other damages arising in any way from the installation, use or maintenance of the equipment, software or Internet browser or access software.

C. Changes to Fees or Other Terms
We reserve the right to change the fees or other terms described in this Agreement. However, when changes are made to any fees, we will notify you on-line, or will send a notice to you at the address shown on our records. All notices will be sent at least thirty (30) days in advance of the effective date of the change, unless an immediate change is necessary to maintain the security of the system. If such a change is made, and it can be disclosed without jeopardizing the security of the system, we will provide you with written or electronic notice within thirty (30) days in advance of the change. By continuing to use the accounts or services to which these changes relate, or are accepting the changes. Changes to fees applicable to specific accounts are governed by the applicable Account Disclosure Statement.

D. Disclosure of Account Information
You authorize the Bank to disclose to selected third parties about your account or the transactions you make:

• When necessary for completing transactions

• In order to verify the existence and condition of your account for a third party, such as a credit bureau, or merchant;

• In order to comply with government agency or court orders, or to give information to any government entity having legal authority to request such information; or

• If you give us permission.
  
  

E. Other General Terms

In addition to this Agreement, you agree to be bound by and will comply with the requirements of the applicable Account Disclosure Statement, the Bank’s rules and regulations, the rules and regulations of any funds transfer system to which the Bank belongs, and all applicable State and Federal laws and regulations. The Bank also agrees to be bound by them. The Bank reserves the right to terminate this Agreement and your access to Online Banking in whole or in part, at any time without prior notice.

The Internet is a global network to telecommunications links allowing computers to exchange data with other computers. You understand Texas National Bank is providing TNBOnline Banking as a free service to customers who have access to the Internet. Connectivity to the Internet is a requirement of TNBOnline Banking and can be purchased from an assortment of public and private companies. You agree to be responsible for providing your own connection to the Internet and will be responsible for any fees related to your Internet connection.

7. iPay Service

iPay allows you to schedule payment on one-time or periodic bills. You can arrange for the payment of single-instance and recurring bills from your Texas National Bank checking account. There is no limit to the number of payments that may be authorized. You may pay any merchant or individual who will accept a check. By furnishing us with the names of your payees/merchants and their addresses, you authorize us to follow the payment instructions you provide through TNBOnline Banking.

The term “Payment Date” means the date on which the iPay was scheduled by you to be issued. The term “Production Date” means the business day on which the payment will be produced and mailed. The term “nightly processing” means an indeterminate period of time beginning about 7 p.m. Central Time each business day during which external transactions are processed. The Payment Date and the Production Date are generally the some day; however, if the Payment Date does not occur during a business day, or if - during or after nightly processing - you attempt to schedule a Payment Date for the very next business day or any earlier non-business day, the Production Date could be delayed as many as two business days. Each business day, nightly processing produces items you have scheduled to be paid on the next morning. If the next morning is a business day, the items will be remitted to the Payee you specified. Funds for ALL bill payments will be withdrawn from your account on the Day the item clears your account.

NOTE: Please schedule payments to allow time for production and mail delivery. We recommend a lead time of at least seven (7) days prior to the due date of the payment. Texas National Bank shall not be responsible for any charges imposed or any other action taken by a payee resulting from a payment you have not scheduled properly, including any applicable finance charges and late fees. In addition, Texas National Bank will not be liable if any third party through whom any bill payment is made fails to properly transmit the payment to the intended payee. Texas National Bank will not be liable for delays or losses of payments caused by the U.S. Postal Service or other delivery service. We will also not be liable if there are insufficient funds or credit availability in your designated payment account and/or overdraft protection plan; if a legal order directs us to prohibit withdrawals from the payment account; if the payment account is closed or frozen; or if any part of the electronic funds transfer system is not working properly. Texas National Bank will not be liable for bill payments not completed due to circumstances beyond our control (such as fire, telecommunication outages, strikes, or natural disasters). Texas National Bank will not be liable for indirect, special, or consequential damages arising out of the use of iPay. Texas National Bank will not be liable if a payee will not accept payments made through iPay.

Texas National Bank reserves the right to terminate your use of iPay at any time without prior notice.

iPay Fees:

TNBOnline Banking with iPay is offered as a free service to our customers; however, there are additional features and services, such as, but not limited to Business Banking, Stop Payments, etc., the use of which may incur fees. In most cases, you will be warned by the service when your requested action has associated fees and allowed an opportunity to agree to the fees or cancel the transaction. In those cases where immediate notification is not feasible, the fee structure will have been outlined expressly in the appropriate section of the Online Banking Agreement, your application for a particular service, or our published fee schedule.

iPay - Stop Payments and Modified Requests

To stop payment of an iPay item after it has been disbursed, you are required - prior to the item being presented for payment - to request a stop of the item through iPay, by calling iPay customer service toll free number, or in person or by telephone at any Texas National Bank. If you call, we may also require you to put your request in writing and submit it to us within 14 days after your call. We will charge you our regular stop payment fee for each stop payment order you give; this fee will be charged in accordance with our current fee schedule. The following information will be required to complete each stop payment request:

• Account Number

• Payee

• Amount

• Item Reference Number

• Reason for the Stop Payment

8. Other Information

A. Balance Inquiries and Transfers
You may use TNBOnline Banking to check the balance of your accounts and to transfer funds among each of your eligible accounts. To initiate any transactions, you must first use your user name and password to obtain access to the Service. The balance shown may include deposits still subject to verification by us. The balance shown also may differ from your records because it may not include deposits in progress, outstanding checks, other withdrawals, or charges. Funds transfer requests may be made 24 hours per day, but those initiated during nightly processing may not result in immediate funds availability until after nightly processing has concluded. When a transfer is attempted during this period of time, the service should suggest you check later to determine whether the transfer actually occurred. If there are insufficient available funds in the account from which you are requesting a transfer, the transfer will not be initiated. For monetary transfers, you must have some form of ownership on the accounts.

B. Statements
All of your payments and funds transfers will appear on your monthly account statement(s).

C. Equipment
We are not responsible for any loss, damage or injury related to or caused by any use, misuse or failure of your equipment. Neither are we responsible for any loss, damage or injury related to or caused by any deficiency, malfunction or failure of your software, hardware or Internet connection.

D. Business Days/Hours of Operation
Our business days are Monday through Friday, except legal bank holidays. TNBOnline Banking is available 24 hours a day, seven days a week, except during maintenance periods for scheduling, modification, or for review of funds transfers and balance inquiries.

E. Electronic Mail (E-mail) & Feedback Forms
Please be aware that Internet e-mail is neither secure nor private. Please do not e-mail account numbers, user names, passwords or other sensitive data.