Peoples Online Services Agreement and Disclosure

This Peoples Online Services Agreement and Disclosure ("the Agreement") explains the terms and conditions governing basic online services and bill pay services offered by Peoples Bank. By using any of the Peoples Online Services, you agree to abide by the terms and conditions of this Agreement. The term “Online Services” and “Peoples Online Services” refers to “Peoples Home Banking” and “Peoples Small Business Banking Online”. The terms "we", "us" and "our" refer to Peoples Bank. "You" refers to each person who enrolls for Online Services and has a secure login profile. The term "secure login profile" means a combination of a password with Enhanced Login Security (ELS) comprised of a challenge question and answer. The term "business days" means Monday through Friday, excluding Saturday, Sunday and Peoples Bank holidays.

1. Account Requirements. In order to subscribe to the Service, you must have at least one checking account ("Checking Account") or mortgage loan (“home loan”) with us. Online Services and each of your accounts are also governed by the applicable Disclosures, Rates, and Fee Schedules provided by Peoples Bank. You are responsible for paying any fees associated with Peoples Online Services and bill payment as well as any additional fees that may be assessed by your Internet Service Provider and for any telephone charges or fees incurred by accessing Peoples Online Services.
   
2. Acceptance. Your initial use of Peoples Online Services constitutes your acceptance and agreement to be bound by all of the terms and conditions of this Agreement, by the Disclosures, Rates, and Fee Schedules applicable to your accounts, and acknowledges your receipt and understanding of this agreement. Peoples Bank is entitled to act on instructions received through Peoples Online Services under your secure login profile. However, do not, under any circumstances, disclose your secure login profile by telephone or to any one claiming to represent Peoples Bank; Peoples Bank's employees do not need and should not ask for your secure login profile. You are liable for all transactions made or authorized using your secure login profile. Peoples Bank has no responsibility for establishing the identity of any person using your secure login profile. If, despite Peoples Bank's advice, you give your secure login profile to anyone, you do so at your own risk since anyone to whom you give your Peoples Online Services secure login profile or other means of access will have full access to your accounts even if you attempt to limit that person's authority. You must notify Peoples Bank that your secure login profile has been lost, stolen or otherwise compromised and should not be honored and must be disabled.
   
3. Authorized Use (Joint Accountholders and Authorized Signers) You hereby release Peoples Bank from any liability and agree not to make any claim or bring any action against us for honoring or allowing any actions or transactions where you have authorized the person performing the action or transaction to use your account(s) and/or you have given your secure login profile to such person, or, in the case of a jointly held account such person is one of the owners of the account. A person who has been furnished your secure login profile is considered an authorized user, until you contact the Bank verify your identity and have your secure login profile reset. You agree to indemnify Peoples Bank and hold it harmless from and against any and all liability (including but not limited to reasonable attorney fees) arising from any such claims or actions. There are two ways for joint accountholders to enroll for Peoples Online Services.
   
   
   1. All account holders may enroll separately and each will have his/her own secure login profile, and his/her own separate Peoples Online Services Agreement. Each such account holder is subject to separate Peoples Online Services Service fees as applicable.
      
   2. Alternatively, one holder of a joint account can enroll for Peoples Online Services with one secure login profile issued and be subject to fees for one person.
      
   3. In the case of a business entity, the entity is enrolled with one secure login profile and is subject to the fees for one entity.
      
4. Limits on Transfers from Accounts. Federal regulations limit the number of certain types of transfers from savings and money market deposit accounts. You are limited to six pre-authorized electronic fund transfers and telephone transfers, including bill payment transactions, checks and point-of-sale transactions, per month. Of these six transactions, you are limited to no more than three transactions per month by check or point-of-sale. Each fund transfer or bill payment through the Service from your savings or money market deposit Account is counted as one of the six transfers you are permitted each month. However, payments to your loan accounts with us are not counted toward this limit for savings and money market deposit Accounts. Your ability to transfer funds from certain Accounts is also subject to the Account Agreements. You should refer to these agreements for legal restrictions and service charges applicable for excessive withdrawals and transfers.
   
   
   1. Limitations on dollar amounts of transfers.
      
      
      1. You may transfer up to your available balance daily.
         
      2. Bill payments must be between $1.00 and $10,000.00
         
   2. Transfer types allowed. In order to transfer between accounts you must first sign the transfer authorization form at the branch to link your applicable accounts. You may then use your secure login profile to access your account(s) to:
      
      
      1. Transfer funds between your checking and/or savings accounts whenever you request.
      2. Pay bills directly from your checking account in the amounts and on the days you request.
      3. Transfer funds from your checking or savings accounts to your loan accounts.
      4. Transfer funds from your revolving loan account to your checking or savings accounts.
         
5. Bank's Responsibility for Processing Transactions. 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.
   
6. Limitations of Bank's Responsibility for Processing Transactions. There are some exceptions to the Bank's liability for processing transactions on the Accounts. 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 funds in your Account were attached or the transfer cannot be made because of legal restrictions affecting your Account;
   4. If any system or any software was not working properly and you knew about the breakdown when you started the transfer;
   5. If circumstances beyond our control (such as interruption of telephone service or telecommunication facilities, or natural disaster such as a fire or flood) prevent the transfer, despite reasonable precautions that we have taken;
   6. If you have not provided us with complete and correct transfer or payment information, including without limitation, the name, address, account number and payment amount for the Payee on a bill payment;
   7. If you have not properly followed the instructions for using the Service or any software;
   8. If your operating system or software was not properly installed or functioning properly; or
   9. If you are unable to access your Account or the Service due to Internet facility or service provider delays or other problems.
   10. There may be other exceptions stated in our agreement with you. The Bank's sole responsibility for an error in a fund transfer or bill payment will be to correct the error, but in no case shall the Bank be liable for any indirect, punitive, special, incidental or consequential damages (even if you have informed us of the possibility of such damages). In states which do not allow the exclusion or limitation of liability for indirect, punitive, special, incidental or consequential damages, the Bank's liability is limited to the extent permitted by Applicable Law (as defined below). Our service providers are independent contractors and not our agents. To the extent permitted by Applicable Law, we will not be responsible for any error, damage or other loss caused by any service provider.
       
7. Confidentiality. We will disclose information to third parties about your account or the transfers you make:
   
   
   1. Where it is necessary for completing the transfers.
   2. In order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant.
   3. In order to comply with government agency or court orders.
   4. If you give us your written permission.
      
8. Availability of Service. The Service will be accessible 24 hours a day, seven days a week. The Service may be inaccessible for a reasonable period on a daily basis for system maintenance. We shall not be liable under this Agreement for failure to provide access. Your access to the Service shall be determined in the sole discretion of the Bank. Subject to applicable law, the Bank reserves the right to modify, suspend, or terminate access to the Service at any time and for any reason without notice or refund of previously incurred fees.
   
9. Amendments. Peoples Bank has the right to modify or terminate this agreement at any time. We will comply with any notice requirements under applicable law for such changes or termination. If we terminate this Agreement, no further Peoples Online Services transfers or bill payments will be made, including but not limited to any payments or transfers scheduled in advance or any pre-authorized recurring payments or transfers. If we modify this Agreement, your continued use of Peoples Online Services will constitute your acceptance of such changes in each instance.
   
10. Bill Payment Service.
    
    
    1. Bill Payments. You may also use the Service to pay bills if you choose the Bill Payment Service. Unless the context clearly requires otherwise, all references to the "Service" herein also refer to the Bill Payment Service as long as you subscribe to the Bill Payment Service. With the Bill Payment Service, you may: (i) make current, future, or recurring payments to certain companies or individuals you select; and (ii) make current, future, or recurring payments directly to your loan or credit accounts with us. You may make bill payments in any amount greater than or equal to $1.00 and less than $10,000. Total limit of bills paid in a single day must be less than $20,000. Bill payments may not be made to pay taxes or child support, maintenance, alimony or other court-ordered obligations.
       
    2. Payment Account. When you sign up for the Bill Payment Service, you must designate a checking account with us as the account from which bill payments should be made (the "Payment Account"). However, additional payment accounts can be added after original enrollment by contacting your branch of account.
       
    3. Payees. You may designate payees through the Bill Payment Service (each, a "Payee"). You must provide sufficient information about each Payee as requested from time to time to properly direct a payment to that Payee and permit the Payee to identify the correct account to credit with your payment. This information may include, without limitation, the name and address of the Payee and your Payee account number. The Payee must have a United States payment address that can be verified in the ordinary course of business. Occasionally a Payee may choose not to participate in the Bill Payment Service or may require additional information before accepting payments. While we work with these Payees to encourage them to accept an electronic or check bill payment through the Bill Payment Service, the Payee may not accept such bill payments or may not be able to process bill payments in a timely manner. In that event, we may decline to make future payments to this Payee and a notice will be sent to you.
       
    4. Authorization. When you schedule a bill payment using the Bill Payment Service, you authorize us to follow the payment instructions and transfer funds from your Payment Account with us to the Payee. We may refuse to act on your instruction if sufficient funds, including funds available under any overdraft plan, are not available in your Payment Account on the date you want us to process your payment (the "Transaction Date"). We reserve the right to refuse to make any bill payment.
       
    5. How Bill Payments are Made, Changed and Canceled. The date that you request a bill payment is the "Initiation Date". The date that an electronic fund transfer is made from the Payment Account or a check is drawn on the Payment Account to make the bill payment is the "Transaction Date".
       
    6. Today Payments. You may schedule the Transaction Date of a bill payment to be the first Business Day after the Initiation Date by designating the bill payment as a "Today Payment". You must have sufficient available funds in the Payment Account on the Initiation Date. Today Payments may be changed or canceled only during the course of the online session during which the bill payment is requested.
       
    7. Future Payments. You may schedule the Transaction Date of a bill payment to be a future date within 365 days of the Initiation Date by designating the bill payment as a "Future Payment". You must have sufficient available funds in the Payment Account as of the Business Day immediately preceding the Transaction Date. Future Payments may be changed or canceled online until 11:00 p.m. Central Time of the Business Day before the Transaction Date.
       
    8. Recurring Payments. You may schedule a bill payment to be automatically initiated in a fixed amount on the same Transaction Date every month by designating the bill payment as a "Recurring Payment". The date on which a bill payment is scheduled to be initiated is referred to below as the "Recurring Payment Date". If the Recurring Payment Date is a date that does not exist in a certain month, the bill payment will be initiated on the last Business Day of the month. For example, if you schedule a bill payment for the 30th of each month, the bill payment for the month of February will be initiated on or before the 28th of February. If the Recurring Payment Date falls on a day other than a Business Day in any month, the bill payment will be initiated on the next Business Day. For example, if you schedule a check to be issued on the 15th of each month, and the 15th is a Saturday or Sunday of that month, a check will be issued on the first Business Day after the 15th. Thus, the actual Transaction Date for any month may not be the Recurring Payment Date. Recurring Payments may be changed or canceled online until 11:00 p.m. Central Time of the Business Day before the Transaction Date.
       
    9. Scheduling Payments. We deduct the amount of the bill payment from your Payment Account on the Transaction Date. If the Transaction Date that you schedule is not a Business Day, the actual Transaction Date will be the next Business Day. To ensure that your bill payments arrive on time, you must schedule the Transaction Date for each bill payment to be at least ten Business Days before the Payment Due Date, not including any applicable grace period. This generally allows sufficient time for the Payee to receive and post your bill payment. We are not responsible for postal delays or processing delays by the Payee. Payments made through the Bill Payment Service are assigned a unique confirmation reference number. This number appears on your monthly statement for your Payment Account. You may review payments on our web site.
       
    10. Sufficient Available Funds. We process payment instructions only if there are sufficient funds available in your Payment Account on the Transaction Date. If sufficient funds are not available in your Payment Account on the Transaction Date, the bill payment will be canceled and the Bill Payment Service will be blocked. You agree to pay a service fee of $24 and that the fee will be automatically debited to your Payment Account. A written or electronic notice of any canceled bill payment will be sent to you. No further bill payments will be processed until sufficient funds are available in the Payment Account.
        
    11. Method of Payment. You authorize us to make the bill payments you request through the Bill Payment Service in any one of the following ways. Bill payments may be sent through an electronic transmission to the Payee. Payees that receive electronic delivery will receive your payment information, including your account number, through a computer link. Payments made electronically are generally received and credited by most Payees within three to four business days. Bill payments may be made by a check mailed to the Payee. When more than one customer schedules a payment to the same Payee on the same date (which frequently happens), a consolidated check may be issued to the Payee with an accompanying paper list of each customer by name, each account number to be credited, and the amount of each payment. All checks are sent through the United States mail. Payments made with a check are generally received and credited by most Payees within ten business days.
        
    12. Stopping Bill Payments. If you have told us in advance to make Recurring Payments out of your Payment Account, you can stop or change any of these bill payments. To stop or change a Recurring Payment, call 1-800-584-8859, or write Peoples Bank, PO BOX 233, Lynden, WA 98264, in time for your request to be received three (3) Business Days or more before the scheduled Transaction Date or Recurring Payment Date of the bill payment. If you call, you may also be required to put your request in writing and get it to the above address within fourteen (14) days after you call. For Business Service, stop payment orders must be in writing on your letterhead stationery signed by a Designated User. A stop payment may be placed on an item sent by check up to five (5) Business Days after the Transaction Date.
        
11. Fees. We will charge you each calendar month for our Bill Payment Service.
    
    
    1. Consumer Accounts: A fee of $2.50 is charged for each month the Bill Payment Service is open but during which no bills have been paid. Customers with First Rate Checking Premier or Investor Checking Premier are not subject to this fee.
    2. Business Accounts: A fee of $5.95 per month is charged, which includes 10 Bill Payment transactions; each additional Bill Payment transaction is charged $0.45.
       
12. DISCLAIMER OF WARRANTIES. NEITHER THE BANK NOR ANY SERVICE PROVIDER MAKES ANY WARRANTY, EXPRESS OR IMPLIED, TO YOU CONCERNING THE SERVICE, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR PARTICULAR PURPOSE OR NON-INFRINGEMENT OF THIRD-PARTY RIGHTS, UNLESS DISCLAIMING SUCH WARRANTY IS PROHIBITED BY APPLICABLE LAW.
    
13. Liability. Tell us at once if you believe your secure login profile 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). If you tell us within 2 business days, you can lose no more than $50 if someone used your secure login profile without your permission. If you do NOT tell us within 2 business days after you learn of the theft of your secure login profile, and we can prove we could have stopped someone from using your secure login profile 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, 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 kept you from telling us, we will extend the time period.
    
14. Reporting Unauthorized Transactions. You should notify us immediately if you believe your secure login profile has been lost or stolen or that someone has transferred or may transfer money from your account without your permission.
    
15. ERROR RESOLUTION NOTICE:
    

16. In Case of Errors or Questions About Your Fund Transfers and Bill Payments Internet Banking Service and Bill Payment Service Call (360) 354-4044 or (800) 584-8859 or write to: Peoples Bank Attn: Remote Banking P.O. Box 233 Lynden, WA 98264 Contact Peoples Bank via the methods outlined above if you think your statement is wrong or if you need more information about a fund transfer or bill payment listed on the statement. We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared. Please provide the following information: Tell us your name and Account number. Describe the error or the fund transfer or bill payment 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 may require that you 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 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 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 ten (10) Business Days, we may not credit your account. 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 within three (3) Business Days after we finish our investigation. You may ask for copies of the documents that we used in our investigation.

    
    
17. Additional Provisions Applicable to Small Business Online Banking. This section amends this Agreement and includes additional provisions applicable to Small Business Online Banking Service. Except as set forth below, the terms and conditions of the Agreement apply to Small Business Online Banking. Without limiting the foregoing, defined terms have the meanings set forth in the above Agreement, except as noted otherwise. In the event of inconsistency with respect to accounts covered by the Service described in this section, this section shall prevail.
    
    
    1. Eligibility. Generally, individuals and business entities are eligible for Small Business Online Banking Service and Bill Pay Service with respect to eligible Non-Consumer Deposit and Loan Accounts. We reserve the right to limit service to certain account types. Consumer Accounts may not be linked to Non-Consumer Accounts through these without Bank management approval in writing.
       
    2. User Access. Online Banking shall only be used by the Administrator and Authorized Users and only for legitimate business purposes incurred in the ordinary course of their employment or agency with you. You agree to limit the use of the Services to such purposes and to take all necessary steps to ensure that Online Banking is used for no other purpose.
       
    3. Security. You agree to (i) keep all Codes strictly confidential, disclosing them only to trusted employees who must have access to them in order to perform their employment duties; (ii) instruct those employees that they are not to disclose the Codes to any other person; and (iii) establish and maintain all procedures necessary to assure that the Codes will be maintained in the strictest confidence. If your password becomes known to any unauthorized person, or if you believe it may have become known to an unauthorized person, you agree to immediately notify the Bank by telephone, followed by written notice sent the same day as such knowledge of an unauthorized person is first learned. The Bank may change your password at any time, which is effective upon such change. Additionally, the Bank shall not be liable for any loss or expense incurred by you as a result of the Bank's compliance with the instructions received through any use of its authorization procedures and password assigned to you and your administrators, authorized users, officers, agents and employees.