People's Bank of Commerce

Online Banking Agreement and Disclosure

This Online Banking Agreement and Disclosure (Agreement) applies to Online Banking services provided by People’s Bank of Commerce (People’s Bank). The first time you access your People’s Bank account through Online Banking, you accept all terms and conditions of this Agreement. In addition to the terms and conditions of this Agreement, transactions completed using Online Banking services are also governed by the Account Deposit Agreement Disclosure, as well as your other agreements with the bank (e.g., loans) provided to you at the time you opened your account(s). Please read the Agreement carefully and print a copy for your records.
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Section 1         Definition of Terms
Section 2         Online Banking Services
Section 3         Account Access
Section 4         Access ID and Passwords
Section 5         Security
Section 6         Balance Inquires
Section 7         Transfers
Section 8         Overdrafts
Section 9         Transfer Limitations
Section 10       Statements
Section 11       Stop Payment Requests
Section 12       Disclosure of Account Information and Transfers
Section 13       Errors or Questions about Your Electronic Transfer
Section 14       Our Liability for Failure to Make a Transfer
Section 15       Your Liability for Unauthorized Transfers
Section 16       Equipment
Section 17       Fees
Section 18       Change in Terms
Section 19       Disclaimer of Warranty and Limitation of Liability
Section 20       Enforcement
Section 21       Governing Law
Section 22       Your Right to Terminate
Section 23       Our Right to Terminate
Section 24       Communications
Section 25       Electronic Mail Messages
Section 26       Consent to Electronic Delivery Notices

Online Banking

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Section 1. Definition of Terms
The words “we”, “us” and “our” refers to People’s Bank. In this Agreement, the words “you”, “your” and “yours” mean those who request and use Online Banking, any joint owners of accounts accessed under this Agreement or any person authorized by you to use your Online Banking service. “Account” means any one or more deposit, loan, or other accounts you have with People’s Bank to which you have access through Online Banking and does not have withdrawal restrictions, such as a certificate of deposit, or accounts that require two or more signatures. An Account may be owned by a consumer or business entity. “Business Days” are Monday through Friday except Bank holidays.
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Section 2. Online Banking Services
Online Banking is an electronic banking service available to you through a personal computer (PC) using an account access ID and a password. At the present time, you may use the Online Banking service to access your accounts and perform the following functions:

Review account balance and transaction history for accounts

Transfer funds between linked bank accounts

Place stop payments on written checks

Export your account information to financial management software programs such as Quicken®, Quickbooks®, Microsoft® Money, or Microsoft® Excel
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Section 3. Account Access
When you use your Online Banking service, you must use your access ID along with your password to access your account. The Accounts to which you may have access through Online Banking include your checking accounts, savings accounts, installment and commercial loan accounts, mortgage loan accounts, home equity accounts, line of credit accounts, and certificate of deposit accounts. Accounts you open after enrollment in Online Banking will be included in Online Banking unless you instruct us in writing otherwise. We undertake no obligation to monitor transactions through Online Banking to determine that they are made on behalf of the accountholder.

The Online Banking service is accessible seven (7) days a week, twenty-four (24) hours a day, except for reasonable periods from time to time for system maintenance. There may also be unscheduled down time, but we will work to minimize such interruptions in service. You agree that we are not liable for scheduled or unscheduled interruptions regarding the Online Banking service.

It is highly recommended you use Microsoft® Internet Explorer 6.0 (or higher) with 128-bit encryption or Netscape Navigator/Communicator ® 6.1 (or higher) with 128-bit encryption. The Internet web site for Online Banking is located at “www.peoplesbankofcommerce.com" or such other Internet addresses as we may provide. No additional software is required for Internet access. Information is not stored on your PC unless you specifically export it to your PC.

If you do not access Online Banking during any consecutive ninety (90) day period your password will convert to inactive status. If your password becomes inactive, you must contact us to have a temporary password assigned before you will be able to access Online Banking.
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Section 4. Access ID and Password
Your initial access ID will be your account number and the bank will provide a temporary password to you. For security purposes, you are required to change your access ID and your password the first time you access Online Banking. We also require that you create an access ID and password that is case sensitive and utilizes both alpha and numeric characters using 6 to 12 characters. You determine what password you will use and the identity of your password is not communicated to us.

By entering your access ID and password, you authorize us to follow any instructions entered through Online Banking. You accept responsibility for the privacy and security of your access ID and password; and agree not to give your access ID and password, or make them available, to any other person. You assume responsibility for all transactions up to the limits allowed by applicable law. People’s Bank will not be responsible for any loss due to breach in the above security procedures.

Your access to Online Banking will be blocked in the event your password is entered incorrectly on three (3) consecutive access attempts. To re-establish your authorization to use Online Banking, you must contact us at (541) 776-5350 to have your password reset or to obtain a new temporary password.
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Section 5. Security
You understand the importance of your role in preventing misuse of your accounts through Online Banking and you agree to promptly examine your paper statement for each of your Bank accounts as soon as you receive it. You agree to protect the confidentiality of your account and account number and your personal identification information (e.g., your driver’s license number and social security number). You understand that personal identification information by itself or together with information related to your account, may allow unauthorized access to your account. Your password and access ID are intended to provide security against unauthorized entry and access to your accounts. Data transferred via Online Banking is encrypted in an effort to provide transmission security and Online Banking utilizes identification technology to verify that the sender and receiver of system transmissions can be appropriately identified by each other. Notwithstanding our efforts to insure that Online Banking is secure, you acknowledge that the Internet is inherently insecure and that all data transfers, including electronic mail, occur openly on the Internet and potentially can be monitored and read by others. We cannot and do not warrant that all data transfers utilizing the Online Banking services, or e-mail transmitted to and from us, will not be monitored or read by others.
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Section 6. Balance Inquiries
You may use Online Banking to check the balances and recent activity of your Accounts. Any balance shown by Online Banking will include a date as of which the balance is current. The balance shown by Online Banking may not be your actual available balance. It may include deposits still subject to verification by us. The balance shown may also differ from your records because it may not include pending items such as deposits in progress, outstanding checks or other withdrawals, payments, or charges, or items in process. Certain pending items are available to view in Online Banking. Due to processing constraints, there may be some pending items that affect balance activity, which are not available to view in Online Banking.
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Section 7. Transfers
Transfers you make through Online Banking before 5:00PM (Pacific Standard Time) on a business day are posted to your account the same day. Transfers you make after 5:00PM (Pacific Standard Time) on a business day, Saturday, Sunday or banking holiday, will be posted on the next business day. People’s Bank identifies transfers based upon the access ID of the user who made the electronic transfer. You agree to communicate with any other persons, with authorized access to your accounts, concerning any transfers from your account in order to avoid overdrafts. You can transfer funds between your linked checking, savings, credit line and money market accounts, from accounts with the same signers and same vesting only.
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Section 8. Overdrafts
If your account has insufficient funds to perform any electronic fund transfers (EFT) you have requested for a given business day, then:

Electronic funds transfers involving cash disbursements, like ATM withdrawals, will have priority;

Electronic fund transfers initiated through Online Banking, which would result in an Overdraft of your account, may at our discretion, be cancelled;

In the event the fund transfers initiated through Online Banking, which would result in an overdraft of your account, are not cancelled, overdraft charges may be assessed pursuant to the terms of the Deposit Account Agreement for that account.

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Section 9. Transfer Limitations
The following limitations apply:

Savings Account - Transfers from a Regular Savings account to another account or to third parties by pre-authorized, automatic, or telephone transfer are limited to six transactions per monthly statement cycle.

Money Market Account - Transfers from a Money Market account to another account or to third parties by pre-authorized, automatic, or telephone transfer are limited to six transactions per monthly statement cycle with no more than three by check, draft, or similar order to third parties.

The number of transfers from People’s Bank accounts and the amounts, which you may transfer, are limited pursuant to the terms of the applicable Deposit Account Agreement and disclosures for those accounts. If a hold has been placed on deposits made to your account from which you wish to transfer funds, you cannot transfer the portion of the funds held until the hold expires.
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Section 10. Statements
All of your transfers made through Online Banking will appear on your periodic paper statement(s) for your Bank account(s). You will receive a statement monthly unless there is no transaction in a particular month. In any case, you will receive a statement at least quarterly.
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Section 11. Stop Payment Requests
You may initiate stop payment requests through Online Banking only for paper checks you have written (non-electronically) on your Bank accounts. To be effective, your stop payment order must precisely identify the name of the payee, the check number, the amount, and the date of the check. People’s Bank must be given a reasonable opportunity to act on the order and the order is only valid if the check has not been accepted, settled or paid. You will incur stop payment charges as disclosed in the current fee schedule for the applicable account.
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Section 12. Disclosure of Account Information and Transfers
We will maintain the confidentiality and privacy of your account information in accordance with our Privacy Policy. However, we will disclose information to third parties about your account or the transactions you submit in the following circumstances:

As necessary to complete a transaction requested by you;

To verify the existence of sufficient funds to cover specific transactions upon the request of a third party, such as a credit bureau or merchant;
To comply with government agency or court orders;

If you give us your express written permission.

You agree and hereby authorize all of these transfers of information.
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Section 13. Errors or Questions about Your Electronic Transfer (Consumer /Personal Accounts Only)
Contact us as soon as you can, if you think your paper statement is wrong, or if you need more information about a transfer listed on your paper statement. We must hear from you no later than 60 days after we sent the FIRST paper statement upon which the problem or error appeared.

When you contact us:

Tell us your name and account number (if any)

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 contact us by telephone or by e-mail, we may require that you send us your complaint or question in written form by postal mail or fax within 10 business days.

We will communicate to you the results of our investigation within 10 business days after you contact us and will correct any error promptly. If we need more time, however, we may take up to 45 calendar days to investigate your complaint or question. If we decide to do this, we will provisionally credit your account within 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 questions in writing and we do not receive it within 10 business days, we may not provisionally 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. You may ask for copies of the documents that we used in our investigation. If we have made a provisional credit, a corresponding debit will be made from your account. If a notice of error involves an electronic funds transfer that occurred within thirty (30) calendar days after the first deposit to the account was made, the applicable time periods for the action shall be twenty (20) business days in place of ten (10) business days. If a notice of error involves an electronic funds transfer that was initiated in a foreign country, occurred within thirty (30) calendar days after the first deposit to the account was made, or is a point-of-sale debit card transaction, the applicable time period for action shall be ninety (90) calendar days in place of forty-five (45) calendar days.
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Section 14. Our Liability for Failure to Make a Transfer
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, when you have properly instructed us to do so, 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 a transfer.
If a legal order directs us to prohibit withdrawals from the account.
If your account is closed, or it has been frozen.
If the transfer would cause your balance to go over the credit limit of an established line of credit or the credit limit for any credit arrangement set up to cover overdrafts.
If you, or anyone authorized by you, commits any fraud or violates any law or regulation.
If any electronic terminal, telecommunication device, or any part of the electronic fund transfer system is not working properly and you knew about the problem when you started the transfer.
If you have not properly followed the on-screen instructions for using Online Banking.
If circumstances beyond our control (e.g., fire, flood, interruption in telephone service, or other communication lines) prevent the transfer, despite reasonable precautions that we have taken.
There may be other exceptions stated in our agreement with you.

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Section 15. Your Liability for Unauthorized Transfers
Contact us immediately if you believe your password has been lost, stolen, used without your authorization, or otherwise compromised, or if someone has transferred or may transfer money from your account without your permission. An immediate telephone call to us is the best way to reduce any possible losses. You could lose all the money in your account (plus your maximum overdraft line of credit, if any). If you contact us within 2 business days after you learn of the loss, theft, compromise, or unauthorized use of your password, you can lose no more than $50 if someone used your password without permission.

If you do not contact us within 2 business days after you learn of the loss, theft, compromise, or unauthorized use of your password, and we can prove we could have stopped someone from using your password to access accounts without your permission if you had told us, you could lose as much as $500.

Also, contact us immediately if your paper statement shows transfers that you did not make. If you do not tell us within 60 days after the paper statement was mailed to you, you may not get back any money lost through transactions made after the 60-day time period if we can prove that we could have stopped someone from taking the money if you told us in time. If a good reason (such as a long trip or hospital stay) kept you from contacting us, we will extend the time periods. To contact us, call (541) 776-5350, or write us at People’s Bank, 750 Biddle Road, Medford, OR 97504.
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Section 16. Equipment
We are not responsible for any loss, damage or injury resulting from (a) an interruption in your electrical power or telephone service; (b) disconnection of your telephone service by your local telephone company or from deficiencies in your line quality; (c) any defect or malfunction of your PC, modem or telephone service; or (d) People’s Bank Online Banking systems. We are not responsible for any products or services relating to your PC, other than those specified herein. We also are not responsible for any damage to your PC, software, modem, telephone or other property resulting from the use of Online Banking including any damage resulting from a virus.
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Section 17. Fees
There are currently no monthly service charges or transaction fees for the Online Banking services. You agree to pay any additional, reasonable charges for services you request (i.e. fees charged when you use other sites linked to our site, telephone and Internet Service fees etc.) with the use of our services which are not covered by this Agreement. We will notify you of any changes in fees as required by law.
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Section 18. Change in Terms
We may change any term of this Agreement at any time. If the change would result in fees for any Online Banking service, increased liability for you, fewer type of available electronic funds transfers, or stricter limitations on the frequency or dollar amount of transfers, we agree to give you notice at least 21 days before the effective date of any such change, unless an immediate change is necessary to maintain the security of an account or our electronic funds transfer system. We will post any required notice of the change in terms on the Bank website or forward it to you by e-mail or by postal mail. If advance notice of change is not required, and disclosure does not jeopardize the security of the account or our electronic funds transfer system, we will notify you of the change in terms within 30 days after the change becomes effective. Your continued use of any or all of the Online Banking services indicates your acceptance of the change in terms. We reserve the right to waive, reduce, or reverse charges or fees in individual situations. You acknowledge and agree that changes to fees applicable to specific accounts are governed by the applicable deposit agreements and disclosures.
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Section 19. Disclaimer of Warranty and Limitation of Liability
We make no warranty of any kind, express or implied, including any implied warranty of merchantability or fitness for a particular purpose, in connection with Online Banking services provided to you under this Agreement. We do not and cannot warrant that Online Banking will operate without errors, or that any or all Online Banking services will be available and operational at all times. Except as specifically provided in this Agreement, or otherwise required by law, you agree that our officers, directors, employees, agents or contractors are not liable for any indirect, incidental, special or consequential damages under or by reason of any services or products under this Agreement, or by reason of your use of or access to Online Banking, including loss of profits, revenue, data, or use by you or any third party, whether in an action in contract or tort, or based on a warranty. Further, in no event shall the liability of the Bank exceed the amount paid by you for the services provided to you through Online Banking.
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Section 20. Enforcement
You agree to be liable to us for any liability, loss, or expense as provided in this Agreement that we incur as a result of any dispute involving your accounts or services. You authorize us to deduct any such liability, loss, or expense from your account without prior notice to you. In the event either party brings a legal action to enforce the Agreement or collect any overdrawn funds on accounts accessed under this Agreement, the prevailing party shall be entitled, subject to applicable law, to payment by the other party of its reasonable attorney’s fees and costs, including fees on any appeal, bankruptcy proceedings, and any post-judgment collection actions, if applicable.
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Section 21. Governing Law
This Agreement shall be governed by and construed in accordance with all applicable federal laws and all applicable substantive laws of the State of Oregon. In addition, we are subject to certain federal and state regulations and local clearinghouse rules governing the subject matter of the Agreement. You understand that we must comply with these laws, regulations, and rules. You agree that if there is any inconsistency between the terms of the Agreement and any applicable law, regulation, or rule, the terms of the Agreement will prevail to the extent any such law, regulation, or rule may be modified by agreement.
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Section 22. Your Right to Terminate
You may cancel your Online Banking service at any time by providing us with written notice by postal mail or fax. Your access to Online Banking will be suspended within three (3) business days of our receipt of your instructions to cancel the service. You will remain responsible for all outstanding fees and charges incurred prior to the date of cancellation.
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Section 23. Our Right to Terminate
People’s Bank reserves the right to terminate this Agreement and your access to online Banking in whole or in part, for any of the following reasons:

Without prior notice, if you have insufficient funds in any one of your Bank accounts. TheOnline Banking service may be reinstated, in our sole discretion, once sufficient funds are available to cover any fees, pending transfers, and debits.
Upon reasonable notice, for any other reason in our sole discretion.

Termination will not affect your liability or obligations for transfers we have processed on your behalf.
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Section 24. Communications
Unless this Agreement provides otherwise, you may communicate with us in any one of the following ways:

E-Mail:
You can contact us by e-mail at info@peoplesbankofcommerce.com.

Telephone:
You may contact us by telephone at (541) 776-5350

Fax:
You may fax to us at (541) 774-7666

Postal Mail - You may write to us at:
People’s Bank
750 Biddle Road
Medford, OR 97504
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Section 25. Electronic Mail Messages
Online Banking provides you with the ability to send electronic mail messages (e-mail) within the service to communicate to us. E-mail is not a secure environment. To protect your privacy over the Internet, we recommend that you do not send sensitive information like your account number or account transactions, social security number, Password, or other personal information through e-mail. Please remember that e-mail messages sent through Online Banking may not be immediately received by us. If you need to contact us immediately, please call (541) 776-5350.
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Section 26. Consent to Electronic Delivery Notices
You agree that any notice or other type of communication provided to you pursuant to the terms of this Agreement, and any future disclosures required by law, including electronic fund transfer disclosures, may be made electronically by posting the notice on the Bank website or by e-mail. You agree to notify us immediately of any change in your e-mail address.