PLEASE PRINT A COPY OF THIS AGREEMENT FOR YOUR RECORDS

Effective 2/1/2026

This Digital Access Agreement and Disclosure Statement (the “Agreement”) sets forth the terms and conditions that apply when you use the Online Banking Services offered to you by Minnesota Lakes Bank. You may use our Online Banking Services to access your Accounts and perform certain transactions Online, as described further below. You also agree to follow all of our instructions and procedures applicable to the services covered by this agreement.

I. Explanation of Certain Terms

• “We,” “us” and “our” means Minnesota Lakes Bank.
• “You” and “your” mean an individual person or business entity that we permit to use the Online Banking Services banking services subject to the terms of this agreement.
• “Access Code(s)” means any code, password, personal identification number, user identification technology, biometric logon or authentication method, token, certificate, callback procedure, or other element, means, or method of authentication or identification we establish or provide for you.
• “Account” means any one or more accounts you have with Minnesota Lakes Bank, including deposit or loan accounts, that you are able to access through the Online Banking Services.
• “Account Agreement” means, collectively, the deposit account agreement, terms, conditions, and disclosures applicable to each respective Account.
• “applicable law” or similar terms mean all state and federal laws, regulations, and regulatory requirements applicable to you, us, the Account(s), the Online Banking Services, or any Transfer.
• “Authorized User” means, if you are using a Business Account, anyone we reasonably believe, in accordance with our Security Procedures, to be authorized to act on your behalf in connection with the Online Banking Services.
• “Business Account” means an Account that is not a consumer account.
• “Business Day” means Monday through Friday. Holidays are not included.
• “Consumer Account” means an Account established primarily for personal, family, or household use. “Online” means through the Internet by use of a personal computer, smart phone, or other screen-based electronic device.
• “Service Agreements” means the agreements applicable to each of the products and services available through Online Banking Services (for example, without limitation, the ACH Origination Agreement, Wire Transfer Agreement, Positive Pay Agreement, Bill Pay User Agreement, MNLB Mobile User Agreement, and People Pay User Agreement, etc.), and includes any agreements, terms, or conditions presented to you electronically when using such products and services or any website or mobile application in connection with same.
• “Transfer” or “Fund Transfer” means any transaction involving the transfer of funds (1) between your Accounts through the Online Banking Services; (2) from your Account to an obligation you owe to us; (3) to or from your Account via ACH or wire transfer through the Online Banking Services; (4) from your Account via Bill Pay; or (5) to or from your Account via any other fund transfer tool we make available to you through Online Banking Services.

II. Online Banking Services

The “Online Banking Services” currently include, but are not necessarily limited to, the following: (1) performing account inquiries on checking, savings, certificate of deposit and loan Accounts; (2) obtaining statement transaction detail on checking and savings Accounts; (3) sorting and searching information by Account, date, amount, check number and transaction type; (4) transferring funds between your deposit Accounts, making loan payments, and advancing funds from credit lines; (5) issuing stop payment requests; (6) obtaining product and interest rate information; (7) sending electronic messages to Minnesota Lakes Bank; (8) reordering checks; (9) requesting address changes; (10) initiating Electronic Federal Tax Payment System tax payments; (11) performing ACH origination (in accordance with the terms of the ACH Origination Agreement); (12) initiating wire transfers (in accordance with the terms of the Wire Transfer Agreement); (13) utilizing positive pay services (in accordance with the terms of the Positive Pay Agreement); (14) accessing or using mobile deposit services provided pursuant to the MNLB Mobile Agreement below and any separate mobile deposit user agreement, as applicable; (15) accessing or using People Pay services provided pursuant to the People Pay Service Agreement and Disclosure below; and (16) accessing or using Bill Pay services provided pursuant to the Bill Pay User Agreement below. Not all Online Banking Services may be available to you, and certain Online Banking Services may only be available for Business Accounts. Minnesota Lakes Bank, in its sole discretion, may limit or deny your access to one or more of the above services or any other services offered through the Online Banking Services. Without limiting the generality of the foregoing, Minnesota Lakes Bank may terminate your access to the Online Banking Services following any extended period of inactivity by you, in our sole discretion.

III. Qualifying Accounts

We will tell you which types of Accounts qualify to be enrolled in Online Banking Services. You must be a named owner/obligor on the Account in our records in order to enroll an Account in Online Banking Services. Any Account requiring more than one signature for withdrawal, draw or transfer of funds does not qualify. You agree to provide us with any evidence of authorization we require before we allow any Account to be enrolled in Online Banking Services. In the case of jointly owned Accounts, each respective owner may be permitted to enroll such Account in and have access to such Account through Online Banking Services.

IV. Applicable Agreements

Your Accounts and your use of the Online Banking Services will continue to be subject to the Account Agreements and any related terms, conditions, and disclosures otherwise governing them, except where noted in this Agreement. Please refer to the Account Agreements, terms, conditions, and disclosures previously provided to you. In addition, each Account and the Online Banking Services shall be subject to the terms or instructions appearing on the screen when using the Online Banking Services, the Service Agreements, our policies and procedures that apply to each Account and the Online Banking Services, the rules and regulations of any funds transfer system used in connection with the Online Banking Services, and applicable law. The above-described agreements, terms, conditions, rules, policies, procedures, and instructions shall be deemed to be in addition to, and not in replacement of, the terms of this Agreement. In the event of any conflict between this Agreement and the Service Agreements, the terms of the Service Agreement shall control with respect to the subject matter of such Services Agreement.

V. Security and Access

You may only access the Online Banking Services by using your Access Codes. You agree to keep your Access Codes confidential to prevent unauthorized use or loss to your Accounts. Anyone to whom you give your Access Codes will have full access to your Accounts even if you attempt to limit that person’s authority. Additionally, that person will have full access to any of your Accounts which are accessible by those Access Codes, even if those Accounts are in your name jointly with another person. It is your responsibility to safeguard your Access Codes and any device on which you have stored your Access Codes or Account information.

Any activity performed using your Access Codes will be presumed to be authorized by you unless you tell us otherwise, subject to the terms and requirements of this Agreement, the Account Agreements, and the Service Agreements regarding unauthorized or fraudulent transactions. If you give another person or business access to Online Banking Services (either by sharing your Access Codes or sharing or allowing access to your device), you agree that each such third party will be authorized to act on your behalf and will be bound by this Agreement (and an Account agreement and/or Service Agreements). We are not responsible for managing the authority of your third-party relationships or the use of Online Banking Services by an authorized third party using your Access Codes or your device. If you have shared your Access Codes with a third party and wish to revoke that access, you must contact us to block access to the Online Banking Services until new Access Codes are established. Except as expressly prohibited by applicable law, all activity performed by such third party before you have notified us of such revocation of access, and we have had a reasonable time to act on such notice, shall be deemed authorized by you.

You acknowledge and agree that it is your responsibility to protect yourself and to be vigilant against e-mail fraud and other Online frauds and schemes (including, without limitation, fraud commonly referred to as “phishing” and “pharming”). You acknowledge that none of our employees or employees of our affiliates will ever contact you by e-mail in order to ask for or to verify Account numbers, Security Devices, or any sensitive or confidential information. If you are contacted by anyone requesting this information, please contact us IMMEDIATELY at (763) 972-3385 to report such activity. In the event you receive an e-mail or other electronic communication that you believe, or have reason to believe, is fraudulent, you agree that you will not respond to the e-mail, provide any information to the e-mail sender, click on any links in the e-mail, or otherwise comply with any instructions in the e-mail.

Protecting Your Personal Information. In addition to protecting your Access Codes, you also agree to take precautions to protect your personal identification information, such as your driver’s license, Social Security number, or tax identification number. This information by itself or together with Account information may allow unauthorized access to your Accounts. You should treat personal information with the same level of care that you would for your Account information. You should also protect and secure all information and data stored in any personal computer or other equipment you use to access our Online Banking Services.

Communications Link and Your Equipment; Internet Disclaimer

It is your responsibility to obtain and maintain your online communications link to the Online Banking Services to ensure that your use of such communications link is in compliance with applicable requirements, including any requirements of telecommunications companies and authorities. You are responsible for obtaining, installing, maintaining and operating all hardware, software and Internet access services necessary for obtaining and accessing the Online Banking Services.

MNLB does not, and cannot, control the flow of any documents, files, data, or other information via the Internet, whether to or from MNLB’s network, other portions of the Internet or otherwise. Such flow depends in large part on the performance of Internet services provided or controlled by third parties. Actions or inactions of such third parties can impair or disrupt your connections to the Internet (or portions thereof). MNLB cannot guarantee that such events will not occur. Accordingly, MNLB disclaims any and all liability arising out of, resulting from or related to, such events, and in no event shall MNLB be liable for any damages of any kind (whether in contract, in tort or otherwise) that are attributable or in any way related to the Internet infrastructure or your or MNLB’s ability or inability to connect to the Internet.

Safety and Security Rules for Your Mobile Device

Following these rules (as may be supplemented by MNLB from time to time) is important to ensure the safety and integrity of your deposited items and to protect your bank account:

• Treat your mobile device with the same care as you do your personal computer.
• Avoid storing sensitive information, like passwords and Social Security numbers, on your mobile device.
• Password protect your mobile device and lock it when you are not using it.
• Be aware of your surroundings and do not type sensitive information where others can see you.
• Protect your mobile device from viruses and malware by installing mobile security software.
• Download the updates for your mobile device and mobile apps.
• If you change your phone number or lose your mobile device, let us know right away.
• Monitor your Accounts regularly and report suspicious activity immediately.
• Always sign off completely when you finish using your mobile app or online banking website; simply closing the browser or mobile app is not enough.

You agree that you shall be liable for any losses you or any other third party incurs as a result of your failure to safeguard your mobile device, personal information, and Access Codes.

FAILURE TO PROTECT YOUR HARDWARE AND ACCESS CODES MAY ALLOW AN UNAUTHORIZED PARTY TO ACCESS THE ONLINE BANKING SERVICES AND INITIATE TRANSACTIONS OR TRANSFERS. ALL USES OF THE ONLINE BANKING SERVICES THROUGH YOUR ACCESS CODES WILL BE DEEMED TO BE AUTHORIZED BY YOU AND BE BINDING UPON YOU. YOU ASSUME THE ENTIRE RISK FOR THE FRAUDULENT OR UNAUTHORIZED USE OF YOUR ACCESS CODES AND SHALL INDEMNIFY AND HOLD MINNESOTA LAKES BANK HARMLESS FOR ANY UNAUTHORIZED USE OR LOSS. YOU AGREE TO (I) FOLLOW THE SAFETY AND SECURITY RULES FOR YOUR MOBILE DEVICE, (II) FOLLOW THE INSTRUCTIONS AND RECOMMENDATIONS THAT MINNESOTA LAKES BANK PROVIDES YOU WITH RESPECT TO THE ONLINE BANKING SERVICES AND (III) USE MAXIMUM CAUTION IN PROTECTING YOUR HARDWARE AND ACCESS CODES FROM UNAUTHORIZED ACCESS. YOU AGREE TO NOTIFY MINNESOTA LAKES BANK IMMEDIATELY IF YOU BECOME AWARE OF ANY LOSS OR THEFT OF, OR ANY UNAUTHORIZED USE OF THE ONLINE BANKING SERVICES OR YOUR ACCESS CODES.

VI. Fund Transfers

Preauthorized Recurring Fund Transfers

To the extent we make them available, you authorize us to establish preauthorized recurring fund transfers in accordance with the requests you make for us to do so. We will only allow preauthorized recurring fund transfers that do not vary in amount.

Limits on Fund Transfers

You must have enough available money or credit in any Account from which you instruct us to make a Transfer. All Transfers must be in U.S. Dollars.

For security reasons, we may implement limits on the number or dollar amount of Transfers you can make using the Online Banking Services. We also reserve the right to limit or suspend your access to the Online Banking Services as we deem necessary for security reasons. We may also limit access from countries other than the United States of America.

When Fund Transfers are Made

Transfers are not final at the time we receive your instructions, but we will begin to process them promptly. You should allow at least one (1) Business Day for us to process transfers.

Each Transfer will be posted to any Account with us from which it is made, and to any other account with us that is involved in the transaction, on the Business Day on which the Transfer is made. Each Transfer you make on a non-Business Day, or after the cut-off time on any Business Day for the applicable Online Banking Services (which we may change from time to time with or without notice to you), will be considered made on the following Business Day. Information you obtain about your Accounts using the Online Banking Services may not reflect transactions or Transfers that have not yet been posted to your Accounts.

Limits on Liability; Indemnification

EXCEPT AS REQUIRED BY APPLICABLE LAW, IN NO EVENT WILL WE OR ANY OF OUR SERVICE PROVIDERS OR LICENSORS, OR ANY OF OUR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AFFILIATES, OR OWNERS BE LIABLE UNDER ANY CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY OR OTHER CLAIM OR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES, INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOST PROFITS, GOODWILL, USE, DATA, OR OTHER INTANGIBLE LOSSES (EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES), WHETHER CAUSED BY OR RESULTING FROM (1) THE USE OR THE INABILITY TO USE ANY DIGITAL SERVICE; (2) ANY FAILURE OF PERFORMANCE, ERROR, OMISSION, INTERRUPTION, DELAY IN OPERATION OR TRANSMISSION, COMPUTER VIRUS, LOSS OF DATA, THEFT, DESTRUCTION, OR UNAUTHORIZED ACCESS TO YOUR INFORMATION; (3) ERRORS, INACCURACIES, OR OTHER DEFECTS IN INFORMATION OR CONTENT PROVIDED BY, CONTAINED WITHIN, OR OBTAINED THROUGH ONLINE BANKING SERVICES, OR (4) ANY OTHER FAILURE, ACTION, OR OMISSION.

TO THE EXTENT PERMITTED BY APPLICABLE LAW, YOU AGREE TO INDEMNIFY, DEFEND, AND HOLD US AND OUR SERVICE PROVIDERS AND LICENSORS, AND OUR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AFFILIATES, AND OWNERS HARMLESS FROM ANY AND ALL THIRD-PARTY CLAIMS, ACTIONS, LIABILITY, DAMAGES AND/OR COSTS (INCLUDING, BUT NOT LIMITED TO, REASONABLE ATTORNEYS’ FEES) ARISING FROM (1) A THIRD-PARTY CLAIM, ACTION OR ALLEGATION OF INFRINGEMENT, MISUSE OR MISAPPROPRIATION BASED ON INFORMATION, DATA, FILES OR OTHER MATERIALS SUBMITTED BY YOU TO OR THROUGH ANY ONLINE BANKING SERVICE; (2) ANY FRAUD, MANIPULATION OR OTHER BREACH OF THIS AGREEMENT BY YOU; (3) ANY THIRD-PARTY CLAIM, ACTION OR ALLEGATION BROUGHT AGAINST US ARISING OUT OF OR RELATING TO A DISPUTE WITH YOU OVER THE TERMS AND CONDITIONS OF AN AGREEMENT OR RELATED TO THE PURCHASE OR SALE OF ANY GOODS OR SERVICES; (4) YOUR VIOLATION OF ANY LAW OR RIGHTS OF A THIRD PARTY; OR (5) USE OF THE ONLINE BANKING SERVICES OR USE OF YOUR ACCOUNT BY ANY THIRD PARTY. WE RESERVE THE RIGHT, AT OUR OWN EXPENSE, TO ASSUME THE EXCLUSIVE DEFENSE AND CONTROL OF ANY MATTER OTHERWISE SUBJECT TO INDEMNIFICATION BY YOU IN WHICH EVENT YOU WILL COOPERATE WITH US IN ASSERTING ANY AVAILABLE DEFENSES. YOU WILL NOT SETTLE ANY ACTION OR CLAIMS ON OUR BEHALF WITHOUT OUR PRIOR WRITTEN CONSENT.

Without limiting the generality of the foregoing, we are responsible for your actual losses that are directly caused by our failure to initiate or cancel if you properly communicated and transmitted transaction instructions. We will NOT be liable for any of the following:

• If, through no fault of ours, you do not have enough available money in the Account from which a Transfer is to be made, if the Account has been closed or is not in good standing, or if we reverse a Transfer because of insufficient funds;
• If any Transfer would exceed the balance of available funds or the credit limit of any Account;
• If your equipment or ours was not working properly and the breakdown should have been apparent to you when you attempted to conduct the Transfer;
• If you have not given us complete, correct or current account numbers or other identifying information so that we can properly credit your Account or otherwise complete the Transfer;
• If you do not properly follow our instructions or if you provide us with wrong or inaccurate information or fail to correct or tell us about any inaccuracy of which you are aware;
• If you do not instruct us soon enough for your Transfer to be received and credited;
• If the money in the Account from which a Transfer is to be made is subject to legal process or other claim restricting the transaction;
• If circumstances or persons beyond our control prevent, delay, intercept, or alter the transaction, despite reasonable precautions that we have taken; or
• On Consumer Accounts, for any indirect, incidental, or consequential damages if our failure was not intentional and resulted from a bona fide error, notwithstanding procedures to avoid these errors. We will have no liability for indirect, incidental, or consequential damages associated with Business Accounts, even if we have been advised of the possibility of these damages.

IN NO EVENT SHALL MNLB OR ANY OF OUR SERVICE PROVIDERS OR LICENSORS, OR ANY OF OUR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AFFILIATES, OR OWNERS, BE LIABLE FOR ANY CLAIM ARISING FROM OR RELATED TO ANY OF THE ONLINE BANKING SERVICES THAT IS NOT FILED IN A COURT OF COMPETENT JURISDICTION WITHIN TWO (2) YEARS OF THE DATE ON WHICH THE EVENT GIVING RISE TO THE CLAIM OCCURRED.

Warranty and Availability

We will make commercially reasonable efforts to make the Online Banking Services consistently available to you (subject to the availability of our third-party service providers and downtime for necessary systems maintenance). However, we only process Transactions and update information prior to the applicable cut-off time(s) on Business Days.

THE SERVICES, OUR WEBSITE AND ANY SOFTWARE AND EQUIPMENT ARE PROVIDED BY MINNESOTA LAKES BANK AND OUR LICENSORS ON AN “AS IS,” “AS AVAILABLE” BASIS. YOU HEREBY WAIVE AND RELEASE US AND ITS LICENSORS AND OUR RESPECTIVE OWNERS, OFFICERS, AND EMPLOYEES FROM ALL OTHER REPRESENTATIONS, WARRANTIES OF ANY NATURE, OBLIGATIONS, AND LIABILITIES, WHETHER EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWISE, WITH RESPECT TO THE SERVICES, OUR WEBSITE AND ANY SOFTWARE OR EQUIPMENT AND ANY AND ALL MATTERS ARISING UNDER OR IN CONNECTION WITH THE SERVICES, INCLUDING WITHOUT LIMITATION: (A) ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE, PURPOSE OR APPLICATION, OR OTHER IMPLIED CONTRACTUAL WARRANTY; (B) ANY IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING, OR USAGE OF TRADE; (C) ANY WARRANTIES OF TIMELINESS OR NON-INFRINGEMENT; AND (D) ANY OTHER WARRANTY WITH RESPECT TO QUALITY, ACCURACY OR FREEDOM FROM ERROR. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, NEITHER WE NOR OUR LICENSORS WARRANT THAT OPERATION OF THE SERVICES, OUR WEBSITE OR ANY SOFTWARE OR EQUIPMENT WILL BE ERROR-FREE OR UNINTERRUPTED.

Stopping or Changing Transfers

If you wish to stop or change Transfers you have instructed us to make, you must notify us before we have started processing the Transfer. This applies to both individual transactions as well as preauthorized recurring transactions. Eligible Accounts may do so by accessing the appropriate function in the Online Banking Service no later than 5:00 p.m. Central Time on the Business Day before the Business Day the Transfer is scheduled to be made, and either request a stop payment or a change order. Stop payment and change orders submitted through the Online Banking Services shall be considered to have been made in writing for all purposes.

You may also call or write us at:

Customer Service
Minnesota Lakes Bank
PO Box 700
Delano, MN 55328
(763) 972-3385

or by using any electronic stop payment method which we provide for this purpose. If you call or write, you must do this in time for us to receive your request three (3) Business Days or more before the Transfer is scheduled to be made. If you call, we may also require you to put your request in writing on paper and get it to us within fourteen (14) days after you call. Stop payment and change orders are described in more detail in your Account agreement, and we may charge a fee for each stop payment or change order.

Statements

Your Fund Transfers will be indicated on the monthly statements we provide or make accessible to you for the Accounts with us that are involved in the transaction. We may also provide or make accessible to you statement information electronically or by some other means. You agree to notify us promptly if you change your address or if you believe there are any errors or unauthorized transactions on any statement or in any statement information. Please see Section VII of this Agreement for additional information on unauthorized transactions for Consumer Accounts and Sections XI-XVI for additional information regarding unauthorized transactions on Business Accounts.

Online Banking Fees

• Online Bill Pay service:
  • NO FEE for Online Bill Pay service if your Online Bill Pay service is used during the statement cycle
  • If Online Bill Pay service is not used during the statement cycle you will be charged $8.00 each month you do not meet the Online Bill Pay qualifications
• Stop Payment fee $33.00
• Overdraft or Return Item Fee $36.00

Your Liability for Authorized Transactions

You are liable for all transactions that you make or authorize, even if the person you authorize exceeds your authority. If you have given someone your Access Codes and want to terminate that person’s authority, you must notify us that transactions by such a person are no longer authorized. We may have to change your Access Codes or take additional steps to prevent further access by such person.

VII. Unauthorized Transactions

You must notify us IMMEDIATELY if you believe your Access Codes have been lost, stolen or otherwise compromised or used without your authorization. Quickly telephoning us is the best way of reducing your possible losses. You could lose all the money in your Account (plus your maximum overdraft line of credit).

You may call or write:

Customer Service
Minnesota Lakes Bank
PO Box 700
Delano, MN 55328
(763) 972-3385

If we provide you with another electronic means of notifying us for this specific purpose, you may use that means. However, DO NOT use a general e-mail service or other electronic means that we have not specifically authorized for this purpose.

Your Liability for Unauthorized Transactions From Consumer Accounts

This section applies only to transactions from Consumer Accounts. Your liability for unauthorized transactions is also governed by the applicable Account agreement.

If you tell us within 2 Business Days after you learn of the loss or theft of your Access Codes involving a Consumer Account, you can lose no more than $50.00 if someone used them without your permission.

If you do NOT tell us within 2 Business Days after you learn of the loss or theft of your Access Codes, and we can prove that we could have stopped someone from using them without your authority if you had told us, you could lose as much as $500.00.

Also, if your statement for a Consumer Account shows transfers covered by this Agreement that you did not make or authorize, 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 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 (such as a long trip or hospital stay) kept you from telling us, we will extend the time periods.

In Case of Errors or Questions About Transactions Involving Consumer Accounts

This section applies only to transactions covered by this Agreement and that involve Consumer Accounts.

You may call or write:

Customer Service
Minnesota Lakes Bank
PO Box 700
Delano, MN 55328
(763) 972-3385

as soon as you can, if you think your statement is wrong or if you need more information about a Transfer covered by this Agreement which is 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.

• 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 and 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 10 Business Days.

We will determine whether an error occurred within 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 provisionally credit your account within 10 Business Days for the amount you think is in error. If we ask you to put your complaint or question in writing and we do not receive it within 10 Business Days, we may not provisionally 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 20 Business Days to provisionally credit your account for the amount you think is in error.

When the investigation is completed, we will make any necessary or appropriate adjustments to your Account. We will tell you the results within 3 Business Days after completing our investigation. If we decide that there was no error or the error was different than you described, we will send you a written explanation. You may ask for copies of the documents that we used in our investigation.

VIII. Transfers Involving Insufficient Funds

If you instruct us to make a Transfer and you do not have a sufficient balance in the Account from which you are making the Transfer (including available credit under any overdraft line), we may, in our sole discretion, refuse to complete the transaction. We may do this even if there are sufficient funds in Accounts other than the one you were using to make the Transfer. If we complete a Transfer that you make or authorize and we subsequently learn that you have insufficient funds for the transaction in the Account from which the Transfer is made, you agree that we may, in our sole discretion, reverse the transaction or offset the shortage with funds from any other Account you have with us. In any case, you are fully obligated to us to provide sufficient funds for any Transfers you make or authorize.

If we do not make a Transfer, or if we reverse a Transfer, because of insufficient funds, we are not required to make any further attempt to process the Transfer or to notify you that the Transfer has not been completed. You may be liable for a non-sufficient funds fee under the terms governing the Account from which you made, or attempted to make, the Transfer.

IX. MNLB’s Duties and Responsibilities.

MNLB’s duties and responsibilities are limited to those described in this Agreement, the applicable Account Agreement(s) and Service Agreements, and any other agreements governing the Accounts. MNLB will use commercially reasonable care in performing its responsibilities under this Agreement. You agree to monitor your Account balances and charges, to promptly notify MNLB if any periodic statement conflicts with your records (subject to any additional notification requirements in this Agreement, any Service Agreement, or the applicable Account Agreement), and to refrain from acting on information you have reason to believe is erroneous. In all instances, MNLB’s and, if the services of a third-party provider are utilized in the provision of the Online Banking Services, such third party’s sole liability to you shall be limited to the correction of any errors made. MNLB shall not be responsible for suspension of performance of all or any of its obligations, responsibilities or covenants hereunder, whether expressed or implied, if at any time, or from time to time, compliance therewith is prevented or hindered by, or are in conflict with, any federal or state law, regulation or rule, the order of any court of competent jurisdiction, any act of God or of the public enemy, war, epidemic, strike, or work stoppages of the U.S. Postal Service and commercial carrier(s), or electric power disruption or shortage, telecommunications failure or mobile device failures; acts, omissions or errors of any carrier and/or agent operating between you and MNLB or MNLB and any Federal Reserve Bank or other agency utilized to exercise transfers or any recipients of transferred funds; any incorrect, unauthorized or fraudulent use or other fraud by any person other than MNLB’s employees; or, without limiting the generality of the foregoing, any other cause or circumstance beyond MNLB’s control or other conditions or circumstances not wholly controlled by MNLB, which would prohibit, retard, or otherwise affect MNLB’s complete or partial performance under this Agreement.

X. Miscellaneous

Changing Terms and Terminating This Agreement

This Agreement will stay in effect until it is changed or terminated. We have the right to terminate this Agreement at any time. We will ordinarily send you notice of any termination, but we are not required to do so unless applicable law requires such notice. Once we terminate this Agreement, no further or pending Transfers will be made, including but not limited to any Transfers scheduled in advance or any preauthorized recurring Transfers. We may routinely terminate any or all of the Online Banking Services for customers that have not used such Service(s) within the first thirty (30) days after activation or if such Service(s) has been inactive for a year.

We also have the right to make changes in this Agreement at any time. We will comply with any notice requirements under applicable law for such changes. If applicable law does not specify any notice requirements for the change, we will decide what kind of notice (if any) we will give you and the method of providing any such notice.

You may terminate this Agreement at any time by notifying us in writing. However, any instructions from you to make Transfers will continue in effect until we have received your written notice of termination and have had a reasonable opportunity to act upon it. Once we have acted upon your notice, no further or pending Transfers will be made, including but not limited to any Transfers scheduled in advance or any preauthorized recurring Transfers.

You are not permitted to alter or amend this Agreement or any related document without our express written consent. Any attempt to do so will be void and unenforceable.

All Sections of this Agreement which are intended by their terms to survive termination of this Agreement shall survive such termination. All representations, warranties, disclaimers, indemnities, limitations of liability and obligations of confidentiality set forth herein shall also survive the termination of this Agreement.

Assignment

You may not assign or otherwise transfer this Agreement or your rights or obligations hereunder to any other person without our express written consent. We may assign our rights and delegate our duties under this Agreement to a company affiliated with us or to any other party. We may also assign or delegate certain of our rights and responsibilities under this Agreement to independent contractors or other third parties.

Waivers

No delay or omission by us in exercising any rights or remedies under this Agreement or applicable law shall impair such right or remedy or be construed as a waiver of any such right or remedy. Any single or partial exercise of a right or remedy shall not preclude further exercise of that right or remedy or the exercise of any other right or remedy. No waiver shall be valid unless in a writing enforceable against us.

Severability; Interpretation; Entire Agreement

To the extent possible, each provision of the this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision shall be held to be invalid, illegal or unenforceable by final order of any court of competent jurisdiction, such provision shall be ineffective only to the extent of such invalidity, illegality or unenforceability, without rendering invalid, illegal or unenforceable the remainder of any such provision or the remaining provisions of this Agreement.

The captions and headings contained in this Agreement are for convenience of reference only and shall not be used to limit the applicability or meaning of any provisions of this Agreement. This Agreement (together with all other documents, disclosures, and agreements incorporated by reference herein) constitutes the entire statement of the terms and conditions that apply to the subject matter hereof. This Agreement supersedes any prior agreements between the parties relating to the Service.

Notices and Communications

Except as otherwise provided in this Agreement, all notices required to be sent to you will be effective when we mail or deliver them to the last known address that we have for you in our records or when we make such notices available to you through electronic means. All notices and communications sent by you to us will be effective when we have received them and have had a reasonable time to act on them. You agree to notify us promptly of any change in your mailing address, e-mail address or telephone number.

Recordings

You agree that we may, but are not obligated to, record electronically any telephone conversations you (or persons acting on your behalf) have with us regarding the Services covered by this Agreement, and we may keep these recordings for as long as we wish.

Attorneys’ Fees

If we become involved in legal action to defend or enforce this Agreement, you agree to pay our reasonable attorneys’ fees and court costs, to the extent not prohibited by law.

Governing Law

Regardless of where you live or work or where you access the Online Banking Services, this Agreement shall be governed by and construed in accordance with the federal laws of the United States of America the laws of the State of Minnesota. You agree that if there is any inconsistency between the terms of the Agreement and any applicable law, regulation, or rule, the terms of this Agreement will prevail to the extent any such law, regulation, or rule, may be modified by agreement between us. If any of the terms of this Agreement cannot be legally enforced, they will be considered changed (without notice to you) to the extent necessary to comply with applicable law.

Execution and Consent to Business Electronically

By executing this Agreement (whether by physical or electronic signature) or by using the Online Banking Services, you agree to all of the provisions of this Agreement, including any amendments or changes thereto. Your continued use the Online Banking Services after you have been notified of any amendments or changes will constitute your agreement to such amendments or changes.

Your electronic consent or use of the Online Banking Services has the same effect as if you had signed this Agreement with your physical signature or that of your authorized company representative.

Your physical signature, electronic consent, or use of the Online Banking Services is also your acknowledgement that you have received a copy of this Agreement in paper form, or if you have provided a separate electronic consent, in electronic form. If you are offered or provided an electronic copy of this Agreement but would like to have a paper copy, please contact us by calling or writing:

Customer Service
Minnesota Lakes Bank
PO Box 700
Delano, MN 55328
(763) 972-3385

SPECIAL PROVISIONS FOR BUSINESS ACCOUNTS:

The following provisions apply only to Business Accounts and are in addition to the other provisions of this Agreement. In the event of any conflict between these provisions and the other provisions of this Agreement, these provisions shall control with respect to such conflict only to the extent such provisions cannot be reconciled.

XI. Security Procedures and Authorized Users

Authorized Users

In order to use the Online Banking Services, you must designate at least one “Administrator.” You represent and warrant that the person(s) named as the Administrator is authorized by you to give instructions to us for Transfers and matters related to Transfers with respect to the Accounts enrolled in the Online Banking Services. You will notify us of the individual(s) who are authorized to access and utilize the Online Banking Services for your designated Accounts and receive notifications from us in the form specified by us (“Authorized User(s)”). For purposes of this Agreement, the term Authorized User shall also include the Administrator(s) and each person or entity to whom you grant access through the use of Security Procedures, including Access Codes. If you appoint an Authorized User, either in the form required by us or by granting access through the use of Security Procedures, you authorize the Authorized User to use the Online Banking Services (including initiating Transfers) and to access any and all current and future Accounts, unless otherwise agreed by the parties. You understand and agree that you are responsible for all transactions or actions of the Authorized Users on your Accounts, including all fees, and that all such transactions are deemed authorized by you. We shall be entitled to rely on the designations made by the Administrator(s) and shall not be responsible for matching the names of Authorized Users designated by the Administrator(s) to names or titles listed in your banking resolutions. You may add, change or delete the Administrator(s), Authorized User(s) and Account(s) in the manner prescribed by us; provided, however, we may rely on any instructions or confirmation received from any Administrator or Authorized User or debit any Account until you expressly notify us of a change and we have had a reasonable time to act on such notification. You agree that any Transfer requests or other instructions provided through the Online Banking Services shall comply with our Security Procedures (as defined below), which are subject to change without notice to you.

Security Procedures

You agree to use security procedures as established by Minnesota Lakes Bank in connection with the Online Banking Services, including without limitation (1) security procedures set forth in the applicable Account agreement(s) or Service Agreement(s), and (2) any Access Codes used in connection therewith (collectively, “Security Procedures”). You acknowledge and agree that you have been made aware of these Security Procedures and that such Security Procedures constitute commercially reasoanble security procedures under applicable law. You acknowledge and agree that the Security Procedures are for verification of authenticity and not to detect errors in the transmission or content of any Transfer request or other instruction you give us using the Online Banking Services and that you alone bear sole responsibility for detecting and preventing such errors. No security practice or procedure for the detection of any such error has been agreed upon between you and Minnesota Lakes Bank.

Authorization

You authorize us to follow any and all instructions entered and transactions initiated using the applicable Security Procedures unless and until you have notified us, according to the notification procedures we prescribe, that the Security Procedures or any Access Code has been stolen, compromised, or otherwise become known to persons other than the Authorized Users and until we have had a reasonable opportunity to act upon such notice. You agree that you will be liable for all transactions initiated through the use of the Security Procedures and that such transactions will be deemed authorized by you. You agree that you will not allow any individual or Authorized User to access the Online Banking Services in the absence of proper supervision and safeguards, and you agree to take reasonable steps to maintain the confidentiality of the Security Procedures and related instructions provided by Minnesota Lakes Bank.

XII. Confidentiality and Unauthorized Access

You are solely responsible for providing and maintaining the physical, electronic, procedural, administrative, and technical security of data and systems in your possession or under your control. We are not responsible for any computer viruses (including, without limitation, programs commonly referred to as “malware,” “keystroke loggers,” and/or “spyware”), problems or malfunctions resulting from any computer viruses, or any related problems that may be associated with the use of an Online system or any Online Banking Services. Any material downloaded or otherwise obtained is obtained at your own discretion and risk, and we are not responsible for any damage to your computer or operating systems or for loss of data that results from the download of any such material, whether due to any computer virus or otherwise. You are solely responsible for maintaining and applying anti-virus software, security patches, firewalls, and other security measures with respect to your operating systems, and for protecting, securing, and backing up any data and information stored in or on your operating systems. We are not responsible for any errors or failures resulting from defects in or malfunctions of any software installed on your operating systems or accessed through an internet connection.

You acknowledge and agree that it is your responsibility to protect yourself and to be vigilant against e-mail fraud and other internet frauds and schemes (including, without limitation, fraud commonly referred to as “phishing” and “pharming”). You agree to educate Authorized Users, agents, and employees as to the risks of such fraud and to train such persons to avoid such risks. You acknowledge that none of our employees or employees of our affiliates will ever contact you by e-mail in order to ask for or to verify Account numbers, Access Codes, or any sensitive or confidential information. If you are contacted by anyone requesting this information, please contact us IMMEDIATELY at (763) 972-3385 to report such activity. In the event you receive an e-mail or other electronic communication that you believe, or has reason to believe, is fraudulent, you agree that neither you nor your Authorized Users, agents, or employees shall respond to the e-mail, provide any information to the e-mail sender, click on any links in the e-mail, or otherwise comply with any instructions in the e-mail. You agree that we are not responsible for any losses, injuries, or harm incurred by you as a result of any electronic, e-mail, or Internet fraud.

We reserve the right to modify, amend, supplement, or cancel any or all Security Procedures, and/or to cancel or replace any Access Code, at any time and from time to time in our reasonable discretion. We will endeavor to give you reasonable notice of any change in Security Procedures; provided that we may make any change in Security Procedures without advance notice to you if we, in our judgment and discretion, believe such change to be necessary or desirable to protect the security of our systems and assets. Your implementation and use of any changed Security Procedures after any change in Security Procedures shall constitute your agreement to the change and your agreement that the applicable Security Procedures, as changed, are commercially reasonable and adequate for the purposes intended.

WE ASSUME NO RESPONSIBILITY TO DISCOVER, AUDIT OR REPORT TO YOU ANY POSSIBLE BREACH OF SECURITY, INCLUDING WITHOUT LIMITATION ANY UNAUTHORIZED DISCLOSURE OR UNAUTHORIZED USE OF SECURITY PROCEDURES BY YOUR AUTHORIZED USER(S). YOU SHALL BE RESPONSIBLE FOR ANY LIABILITY, LOSS OR DAMAGE RESULTING FROM OUR ACTIONS IN ACCORDANCE WITH INSTRUCTIONS PROVIDED TO US FROM UNAUTHORIZED PERSONS WHEN CARRIED OUT IN ACCORDANCE WITH THE APPLICABLE SECURITY PROCEDURES, INCLUDING WITHOUT LIMITATION WHEN ACCOMPANIED BY THE APPROPRIATE ACCESS CODE(S) ASSIGNED TO YOUR OR ANY OF YOUR AUTHORIZED USERS.

XIII. Security Breach; Loss Recovery Efforts

In the event of a breach of the Security Procedures, you agree to assist us in determining the manner and source of the breach. Such assistance shall include, but shall not be limited to, providing us or our agent access to your hard drive, storage media and devices, systems and any other equipment or device that was used in breach of the Security Procedure. You further agree to provide us any analysis of such equipment, device, or software or any report of such analysis performed by you, your agents, law enforcement agencies, or any other third party. Your failure to assist us shall be an admission by you that the breach of the Security Procedure was caused by a person who obtained access to your transmitting facilities or who obtained information facilitating the breach of the Security Procedure from you and not from a source controlled by us. In the event of any damages for which we or you may be liable to each other or to a third party pursuant to the services provided under this Agreement, we and you will undertake reasonable efforts to cooperate with each other, as permitted by applicable law, in performing loss recovery efforts and in connection with any actions that the relevant party may be obligated to defend or elects to pursue against a third party.

XIV. Your Duty to Examine Statements

You agree to promptly examine all Account statements, reports, confirmations, invoices, and other documents which we or other financial Institutions may send or make available to you (collectively, “Provided Documents”), and to promptly notify us of any discrepancy or error. You agree that the time you have to examine the Provided Documents and report any discrepancy or error will depend on the circumstances, but that such time will not, in any circumstance, exceed a total of thirty (30) days from when the Provided Documents are first made available to you; provided, however, you acknowledge that the Service Agreements and applicable law may prescribe shorter timeframes for particular products or services, which shall control. You may call or write:

Customer Service
Minnesota Lakes Bank
PO Box 700
Delano, MN 55328
(763) 972-3385

as soon as you can, if you think the Provided Documents are wrong or if you need more information about a Transfer covered by this Agreement which is listed on the Provided Documents.

XV. Limitations on Our Liability in Connection with Business Accounts

Our liability to you is explained in any agreements, notices and disclosures that we separately provide to you from time to time regarding your Accounts and the individual Services accessible through the Online Banking Services. This section explains our liability to you only to the extent that our liability has not been separately disclosed to you by any of these agreements, notices, or disclosures.

WE (INCLUDING OUR OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS) WILL BE LIABLE ONLY FOR YOUR ACTUAL DIRECT DAMAGES RESULTING FROM OUR GROSS NEGLIGENCE OR WILLFUL MISCONDUCT RELATED TO THE ONLINE BANKING SERVICES. IN NO EVENT WILL WE HAVE LIABILITY FOR ANY CONSEQUENTIAL, SPECIAL, INCIDENTAL, EXEMPLARY, PUNITIVE, INDIRECT OR SIMILAR LOSS OR DAMAGE, WHETHER OR NOT THE LIKELIHOOD FOR SUCH LOSS OR DAMAGE WAS KNOWN BY EITHER PARTY AND WHETHER OR NOT ANY CLAIM FOR SUCH LOSS DAMAGES IS BASED ON TORT, CONTRACT OR OTHERWISE, INCLUDING WITHOUT LIMITATION, LOST PROFITS, REVENUE, SAVINGS, TIME, DATA, GOODWILL AND OPPORTUNITIES, ATTORNEYS’ FEES, COURT AND OTHER DISPUTE RESOLUTION COSTS, OR LOSS OR DAMAGE FOR ANY WRONGFUL DISHONOR RESULTING FROM OUR ACTS OR OMISSIONS PURSUANT TO THIS AGREEMENT. YOU AGREE THAT THE FEES CHARGED FOR THE PERFORMANCE OF THE ONLINE BANKING SERVICES SHALL BE DEEMED TO HAVE BEEN ESTABLISHED IN CONTEMPLATION OF THESE LIABILITY LIMITATIONS.

We will not be obligated to honor, in whole or in part, any transaction or instruction which:

• is not in accordance with any term or condition applicable to the relevant Service in this Agreement or Account;
• we have reason to believe may not be authorized by you or any third person whose authorization we believe is necessary or involves funds subject to hold, dispute, restriction or legal process we believe prevents their withdrawal;
• would violate any applicable provision of any risk control program of the Federal Reserve guidelines;
• is not in accordance with any other requirement of our applicable policies, procedures, or practices;
• we did not actually receive, including due to any telecommunications failure; or
• we have reasonable cause not to honor for our or your protection.

Indemnification

Except to the extent that we are liable under the terms of this Agreement or any other agreement or notice, you agree to indemnify and hold us, our directors, officers, employees and agents harmless from all loss, liability, claims, demands, judgments and expenses arising out of or in any way connected with your Accounts or the performance of the Online Banking Services. This indemnification is provided without regard to whether our claim for indemnification is due to the use of Online Banking Services by you or your Authorized User(s).

XVI. Other Services

We may provide you other services through the Online Banking Services which are not covered under this Agreement. These services will have a separate agreement with specific terms and conditions.

 

END OF SPECIAL PROVISIONS THAT APPLY ONLY TO BUSINESS ACCOUNTS

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SPECIAL PROVISIONS FOR CERTAIN ONLINE BANKING SERVICES

By using or enrolling in Bill Pay, People Pay, or Mobile Deposit services, you agree to the following additional terms and conditions, as applicable, which are incorporated into this Agreement in addition to, and not in replacement of, the other terms of this Agreement.

XVII. Bill Pay User Agreement

This is your bill paying agreement with Minnesota Lakes Bank (“User Agreement”). You may use Minnesota Lakes Bank’s bill paying service (“Bill Pay”) to direct Minnesota Lakes Bank to make payments from your designated checking Account to the payees you choose in accordance with this User Agreement (each a “Bill Payment”). The terms and conditions of this User Agreement are in addition to the Account agreements, disclosures, and other documents in effect from time to time governing your Account (the Account Rules).

“You” or “your” means each person who is authorized to use Bill Pay. “Payee” means anyone, including Minnesota Lakes Bank, you designate, and Minnesota Lakes Bank accepts as a payee.

HOW TO SET UP PAYEES/PAYMENTS

Complete a bill paying enrollment form. To add a new Payee to your “Authorized Payee List, select Bill Pay, Payee Set up/PAYEE” within Online banking. You may add a new fixed payment to a Payee, only if the Payee is on your authorized list of payees, and by accessing the Service and entering the appropriate information. Most other additions, deletions, or changes can be made in writing or by using the Service. Minnesota Lakes Bank reserves the right to refuse the designation of a Payee for any reason. Each Payee accepted by Minnesota Lakes Bank will be assigned a payee code. You may pay almost any payee you wish. There are several restrictions:

1. The payee must be located in the United States;
2. Payments may not be remitted to tax authorities or government and collection agencies;
3. Payments may not be remitted to brokerage accounts or securities companies, such as Ameritrade, for stock purchases or trade taxing authorities; and
4. Court directed payments are unauthorized (alimony, child support, or other legal debts); and
5. Payments to unlawful Internet gambling sites are prohibited.

Minnesota Lakes Bank is not responsible if a Bill Payment cannot be made due to incomplete, incorrect, or outdated information provided by you regarding a Payee or if you attempt to pay a Payee that is not on your Authorized Payee list.

THE BILL PAYING PROCESS

Single Payments
A single Bill Payment will be processed on the Business Day that you designate as the Bill Payment’s processing date (the “Payment Date”), provided the Bill Payment is submitted prior to the daily cut-off time on that date. The daily cut-off time currently 3 pm CST, which we may change at any time at our discretion upon notice to you. A single Bill Payment submitted after the cut-off time on the designated Payment Date will be processed on the following Business Day. If you designate a non-Business Day as the Payment Date, the Bill Payment will be processed on the first Business Day following the designated Payment Date.

Recurring Payments
When a recurring Bill Payment is processed, it is automatically rescheduled by the system. Based upon your selected frequency settings for the Bill Payment, a Payment Date is calculated for the next occurrence of the Bill Payment. If the calculated Payment Date is a non-Business Day, it is adjusted based upon the following rules:

• Future-dated single payment and recurring payments scheduled with a send on date of a non-Business Day are processed the Business Day following the scheduled Payment Date.

Note: If your frequency settings for the recurring payment specify the 29th, 30th, or 31st as a particular day of the month for processing and that day does not exist in the month of the calculated process date, then the last calendar day of that month is used as the calculated Payment Date.

For Single and Recurring Payments, YOU MUST ALLOW AT LEAST FIVE (5) BUSINESS DAYS, PRIOR TO THE DUE DATE, for each Bill Payment to reach the Payee. Any Bill Payment can be changed or canceled prior to the cut-off time on the Business Day prior to the Business Day on which the Bill Payment is scheduled to be paid.

You agree to have available and collected funds on deposit in the Account you designate in amounts sufficient to pay for all Bill Payments requested, as well as any other payment obligations or transactions initiated against the Account. Minnesota Lakes Bank reserves the right, without liability and in our sole discretion, to reject or reverse a Bill Payment if you fail to comply with this requirement or any other terms of this User Agreement. If you do not have sufficient funds in the Account and Minnesota Lakes Bank has not exercised its right to reverse or reject a Bill Payment, you agree to pay for such payment obligations on demand. You further agree Minnesota Lakes Bank, at our option, may charge any of your accounts with Minnesota Lakes Bank to cover such payment obligations.

LIABILITY

You are solely responsible for controlling the safekeeping of, and access to, your Access IDs. You are liable for all transactions you make or that you authorize another person to make even if that person exceeds his or her authority. If you want to terminate another person’s authority, the primary Online Banking Services Authorized User is responsible for removing their access. You will be responsible for any Bill Payment request you make that contains an error or is a duplicate of another Bill Payment. Minnesota Lakes Bank is not responsible for a Bill Payment that is not made if you did not properly follow the instructions for making a Bill Payment. Minnesota Lakes Bank is not liable for any failure to make a Bill Payment if you fail to promptly notify Minnesota Lakes Bank after you learn that you have not received credit from a Payee for a Bill Payment. Minnesota Lakes Bank is not responsible for your acts or omissions or those of any other person, including, without limitation, any transmission or communications facility, and no such party shall be deemed to be the Minnesota Lakes Bank’s agent. In any event, Minnesota Lakes Bank will not be liable for any special, consequential, incidental, or punitive losses, damages, or expenses in connection with this Agreement or the Service, even if Minnesota Lakes Bank has knowledge of the possibility of them. Minnesota Lakes Bank is not liable for any act, failure to act or delay in acting if it is caused, in whole or in part, by any cause beyond Minnesota Lakes Bank’s reasonable control.

AMENDMENT AND TERMINATION

Minnesota Lakes Bank has the right to change this User Agreement at any time by notice mailed to you at the last address shown for the Account on Minnesota Lakes Bank’s records, by posting notice in branches of Minnesota Lakes Bank, electronically, or as otherwise permitted by law.

Minnesota Lakes Bank has the right to terminate this User Agreement at any time. You may terminate this User Agreement by written notice to Minnesota Lakes Bank. Minnesota Lakes Bank is not responsible for any Bill Payment scheduled to be made before Minnesota Lakes Bank has a reasonable opportunity to act on your termination notice. You remain obligated for any Bill Payments made by Minnesota Lakes Bank on your behalf.

FEES

Minnesota Lakes Bank reserves the right to charge you for research time involving Bill Payments no longer available in your screen history. You will be informed of any such charges before they are incurred.

Bill Payments are processed by Electronic Fund Transfers (EFT). Please see the Electronic Fund Transfers Disclosure Statement received when you opened your Account (or any updated version thereof subsequently delivered to you), which discloses important information concerning your rights and obligations.

There is no fee for Bill Pay if you make at least one Bill Payment per monthly statement cycle. You will be charged $8.00 per month for any statement cycle in which you do not make any Bill Payments.

The Bank shall notify you in writing regarding any fee changes at least thirty (30) days in advance of the effective date of such changes.

XVIII. People Pay Service User Agreement and Disclosure

This People Pay Service User Agreement and Disclosure (“User Agreement”) contains the additional terms and conditions for the use of the People Pay Service that Minnesota Lakes Bank or its affiliates (“MNLB”, “us,” or “we”) may provide to you (“you”). Capitalized terms not otherwise defined herein shall have the meanings given to them in the Agreement.

PEOPLE PAY PAYMENT AUTHORIZATION:

You understand that by selecting the People Pay service through Minnesota Lakes Bank’s Online Banking and accepting these terms and conditions, you authorize Minnesota Lakes Bank to post transactions generated by People Pay through your Minnesota Lakes Bank Account to another account at a U.S. financial institution or through the Real-Time Payments (RTP) network, and payments through peer-to-peer networks such as PayPal™, Zelle™, Venmo™ or others for payment to another individual. You understand and agree that Minnesota Lakes Bank uses a variety of banking channels and facilities to make payments but will ordinarily use an Automated Clearing House (ACH) Network for People Pay transactions. All payments to another person made through People Pay are subject to all terms and conditions within this Agreement and all other agreements connected with your Account(s).

In addition, you understand that you may receive funds through the People Pay service from a payment generated by another individual. You hereby acknowledge that the receipt of money from another person is subject to the Account Agreements between you and Minnesota Lakes Bank.

You understand and agree that when you initiate a payment from your Minnesota Lakes Bank Account using People Pay, the processing of the payment will begin and the debit from your Account may occur immediately. Receipt of the funds by the recipient will be dependent on the acceptance of the payment by the recipient and whether information requested from the recipient has been provided. Payments sent via ACH may take 1-2 Business Days to be credited to the recipient’s account depending on the receiving financial institutions processing schedule.

You understand and agree that Minnesota Lakes Bank is relying upon the information you provide when originating a payment on your behalf and payments will be made using only the email address or mobile phone number entered, even if it identifies a person different from the intended recipient. Any errors, including incorrect or inconsistent recipient names, email addresses, mobile phone numbers or account numbers are your responsibility. You understand and agree that Minnesota Lakes Bank has no responsibility to investigate discrepancies between names, email addresses, mobile phone numbers or account numbers. You further understand that financial institutions holding recipient accounts are not responsible for investigating discrepancies between names and numbers.

By using People Pay, you represent and warrant to MNLB that you are the owner, or have the authority to act on behalf of the owner, of the mobile phone number or email address used to send or receive messages regarding payments.

CUT-OFF TIMES: Depending on the type of payment method selected, payments conducted through People Pay may be completed in real time (i.e. instantaneously) or there may be a slight delay in the debiting and/or crediting of a particular account. You understand and acknowledge that there may be a delay in the debiting or receipt of funds through People Pay. For example, if you send money using the “Send to Email or Mobile Number”/“Recipient Chooses” method, the debit for payment will occur when the payment is claimed by the recipient.

PEOPLE PAY LIMITATIONS: There are transaction limits for payments to another person through the People Pay service. The limits are determined by your selected payment method, as described in the following table:

Method of Payment	Transaction Limit	Aggregate Limit Per Day*	Fee Paid by Sender
Account to Account (“A2A”) (Recipient or sender enters Routing Transit and Account Number)	$2,000.00 per transaction	$4,000.00 per day	No Fee
Send to Email or Mobile Number (Hereinafter referred to as “Recipient Chooses” – Check, A2A, PayPal™)	$2,000.00 per transaction	$4,000.00 per day	No Fee
PayPal™ (Sender knows the recipient’s email address or mobile/cell phone connected to a PayPal™ account.)	$2,000.00 per transaction	$4,000.00 per day	No Fee
		*Aggregate Limit per Day is for all types combined.

CANCELLATION OF PAYMENT: A payment request that has been initiated through People Pay cannot be canceled once confirmed by the sender to send the payment. “Recipient Chooses” payments may not be canceled unless the recipient has not yet claimed the payment; it cannot be canceled if payment has been claimed, declined or expired. Inquiries on cancelations must be directed to Minnesota Lakes Bank Customer Support at (763) 972-3385 during normal business hours Monday through Friday 9:00 AM to 4:00 PM Central Time.

EXPIRED PAYMENTS: Payments you make through PayPal™ will not expire, as they happen in real time and will either succeed or fail immediately. If the recipient does not wish to open a PayPal™ account, you will have to allow the PayPal™ payment to expire (after 30 days) before the debited amount is returned to your account. Payments conducted through “Recipient Chooses” will expire in 10 calendar days if unclaimed; however, an alert regarding the upcoming expiration will be sent to both you as the sender and the recipient. MNLB shall have no liability to you, any recipient, or any other third party for the failure of any party to claim a payment or the failure of any other financial institution to timely credit its customer’s account.

REJECTIONS OF PAYMENTS: Payments to another person may not be completed for various reasons, in our sole discretion. For example, if information provided for the recipient is inaccurate or if identity verification is not completed, the payment may be placed on hold, or the amount of the payment may be returned to your account. Similarly, if you have insufficient funds in your Account(s) or the payment is otherwise prohibited by the terms of the Agreement or this User Agreement, the payment may not be completed. An email alert or SMS Text will be sent notifying you of the error.

INSUFFICIENT FUNDS: You will reimburse Minnesota Lakes Bank immediately upon demand for any transaction amount delivered for which your account does not contain sufficient funds. In addition, you will reimburse us for any fees or costs we incur in attempting to collect any amounts from you. We are authorized to report the return of a transaction to any credit reporting agency.

THIRD-PARTY FEES: You understand and acknowledge that the use of third-party services (for example, PayPal™) may result in a payment fee being applied by the third-party vendor to any transferred funds. Such fees are governed by any agreements and disclosures provided by the applicable third-party vendor. Minnesota Lakes Bank is not liable or responsible for any such transaction fee.

APPLICABLE LAW AND RULES: You acknowledge and agree that all payments are subject to, and you must comply with, all Applicable Law (including without limitation the Electronic Fund Transfer Act and its implementing Regulation E) and the rules of the clearinghouse or other payments network through which they are processed (including without limitation the rules of the National Clearing House Association (Nacha) with respect to ACH payments).

PROPRIETARY RIGHTS: You acknowledge and agree that Minnesota Lakes Bank and parties within whom it has contracted own all rights in and to the People Pay service. As such, you understand that you are only allowed to use People Pay in the manner designated by this User Agreement.

TERMINATION: Access to the People Pay service may be suspended or terminated at the discretion of Minnesota Lakes Bank at any time. Cancelation of the People Pay service is not required as it is a service provided through the Minnesota Lakes Bank Internet Banking connection. However, should you cancel your Internet Banking through Minnesota Lakes Bank, you will also disconnect any ability to continue making payments through the People Pay service.

LIABILITY FOR UNAUTHORIZED ACTIVITY: You acknowledge and agree that (1) you are responsible for verifying the identity of any recipient to whom you send a payment, (2) you are responsible for safeguarding access to your Access Codes and mobile devices as set forth elsewhere in this Agreement, and (3) you will be liable for any unauthorized activity or Transfers made using People Pay as set forth elsewhere in this Agreement. You must notify us immediately if you believe your Access Codes have been lost, stolen or otherwise compromised or used without your authorization or if you believe any unauthorized transactions have occurred using People Pay.

DISCLAIMER OF WARRANTIES: YOU AGREE YOUR USE OF PEOPLE PAY AND ALL INFORMATION AND CONTENT (INCLUDING THAT OF THIRD PARTIES) IS AT YOUR RISK AND IS PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS. WE DISCLAIM ALL WARRANTIES OF ANY KIND AS TO THE USE OF PEOPLE PAY, WHETHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. WE MAKE NO WARRANTY THAT PEOPLE PAY (i) WILL MEET YOUR REQUIREMENTS, (ii) WILL BE UNINTERRUPTED, TIMELY, SECURE, OR ERROR-FREE, (iii) THE RESULTS THAT MAY BE OBTAINED FROM PEOPLE PAY WILL BE ACCURATE OR RELIABLE, OR (iv) ANY ERRORS IN PEOPLE PAY OR TECHNOLOGY WILL BE CORRECTED. YOU AGREE THAT NO ORAL OR WRITTEN ADVICE OR REPRESENTATION OBTAINED FROM ANY MNLB EMPLOYEE OR REPRESENTATIVE SHALL CREATE A WARRANTY OR REPRESENTATION FOR PURPOSES OF THIS USER AGREEMENT OR PEOPLE PAY TO BE PERFORMED PURSUANT HERETO.

LIMITATION OF LIABILITY: ANY PROVISION IN THE AGREEMENT, THIS USER AGREEMENT, ANY OTHER AGREEMENT OR THE RULES TO THE CONTRARY NOTWITHSTANDING, MNLB SHALL ONLY BE LIABLE FOR DAMAGES SOLELY AND PROXIMATELY CAUSED BY ITS GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, AND MNLB’S LIABILITY SHALL IN NO EVENT EXCEED THE LESSER OF (i) YOUR ACTUAL DAMAGES OR (ii) THE TOTAL FEES PAID BY YOU TO MNLB FOR PEOPLE PAY. YOU AGREE MNLB WILL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, PUNITIVE, OR EXEMPLARY DAMAGES, INCLUDING, BUT NOT LIMITED TO DAMAGES FOR LOSS OF PROFITS, GOODWILL, USE, DATA OR OTHER LOSSES RESULTING FROM THE USE OR THE INABILITY TO USE PEOPLE PAY INCURRED BY YOU OR ANY THIRD PARTY ARISING FROM OR RELATED TO THE USE OF, INABILITY TO USE, OR THE TERMINATION OF THE USE OF PEOPLE PAY, REGARDLESS OF THE FORM OF ACTION OR CLAIM (WHETHER CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE), EVEN IF MNLB HAS BEEN INFORMED OF THE POSSIBILITY THEREOF.

TO THE FULLEST EXTENT ALLOWED BY LAW, AND SUBJECT TO THE FOREGOING PROVISIONS OF THIS SECTION DEALING WITH MNLB’S LIABILITY FOR DAMAGES SOLELY AND PROXIMATELY CAUSED BY ITS GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, MNLB’S LIABILITY TO YOU UNDER THIS AGREEMENT SHALL BE LIMITED TO CORRECTING ERRORS RESULTING FROM MNLB’S FAILURE TO EXERCISE ORDINARY CARE.

MNLB SHALL NOT BE RESPONSIBLE OR LIABLE FOR ANY ERRORS OR FAILURES RESULTING FROM DEFECTS IN, OR MALFUNCTIONS OF, YOUR MOBILE DEVICE HARDWARE OR SOFTWARE, FOR THE QUALITY OF PERFORMANCE OR LACK OF PERFORMANCE OF ANY MOBILE DEVICE SOFTWARE OR HARDWARE OR INTERNET DELIVERED SERVICES SUPPLIED BY MNLB TO YOU IN CONNECTION WITH THIS AGREEMENT, OR FOR THE TRANSMISSION OR FAILURE OF TRANSMISSION OF ANY INFORMATION FROM YOU TO MNLB, FROM MNLB TO YOU, FROM YOU TO ANY THIRD PARTY SERVICE PROVIDER, FROM ANY THIRD PARTY SERVICE PROVIDER TO MNLB, OR OTHERWISE. MNLB SHALL NOT BE RESPONSIBLE FOR NOTIFYING YOU OF ANY UPGRADES OR ENHANCEMENTS TO ANY OF YOUR MOBILE DEVICE HARDWARE OR SOFTWARE.

XIX. MNLB Mobile User Agreement

This MNLB Mobile User Agreement (“User Agreement”) contains the additional terms and conditions for the use of the MNLB Mobile Deposit Service that Minnesota Lakes Bank or its affiliates (“MNLB”, “us,” or “we”) may provide to you (“you”). Capitalized terms not otherwise defined herein shall have the meanings given to them in the Agreement.

Definitions

In addition to the other defined terms in this Agreement, the following terms as used in this User Agreement shall have the following meanings:

• “Business Day” means a business day in which the bank is open to the public for carrying on substantially all of its banking functions. Business day is the business day of the bank. Business days include all the days when offices of the bank are open for business to the public except Saturday, Sunday and Federal holidays. A Business Day includes all banking functions.
• “Capture Device” means any device acceptable to MNLB, that provides for the capture of images from original items and for transmission through a clearing process.
• “Check” means an original check, as defined in Regulation CC and Check 21 and does not include a substitute check or a remotely created check.
• “Check 21” means the Check Clearing for the 21st Century Act (12 USC § 5001, et seq.).
• “Draft” means a check, draft or other order for payment of money drawn on a bank’s fund. The payment of a bank draft is guaranteed to be available by the issuing bank.
• “Federal Reserve” means the Board of Governors of the Federal Reserve System or any of the Federal Reserve Banks.
• “Item” means an instrument or a promise or order to pay money handled by a bank for collection or payment. The term does not include a payment order governed by Article 4A or a credit or debit card slip.
• “Mobile Deposit Service” means the Mobile Remote Deposit Capture Service that is designed to allow you to make deposits to your checking, savings, or money market savings accounts from home or other remote locations by scanning checks and delivering the images and associated deposit information to MNLB or MNLB’s designated processor.
• “Regulation CC” means 12 CFR Part 229, as may be amended from time to time.
• “Remotely created check” means a check that is not created by the paying bank and that does not bear a signature applied, or purported to be applied, by the person on whose account the check is drawn.
• “Service Start Date” means the date that the Mobile Deposit Service is first available to you.
• “Term” means the term of this User Agreement beginning as of the Service Start Date until terminated as provided herein.
• “Time-out” means a period of non-use of the MNLB Mobile Deposit Service device used to capture images for transmission purposes.

Mobile Deposit Service.

The Mobile Deposit Service is designed to allow you to make mobile deposits (each such deposit a “Mobile Deposit” and collectively “Mobile Deposits”) to your checking, savings, or money market accounts from home or other remote locations by using a mobile device with the MNLB downloadable mobile application (“Software”) to capture images of paper checks and transmit the images and associated deposit information to MNLB or MNLB’s designated processor (“Processor”). You acknowledge and agree that Mobile Deposits made by you using the Mobile Deposit Service are not an “Electronic Funds Transfer” as that term is defined in the Consumer Financial Protection Bureau Regulation E. The terms “MNLB” and “Processor” may be used interchangeably when used in relation to any services performed by a Processor on behalf of MNLB including, but not limited to, the receipt and processing of images and check data and any notices related thereto. The mobile device must capture an image of the front and back of each Check to be deposited (each an “Image” and, if more than one, “Images”) in accordance with the procedures outlined in this User Agreement and provided to you in the Mobile Deposit Service documentation, (“Procedures”). After capture of the front and back Images and all other required data and information from the paper check, you will transmit, via the Internet, the Mobile Deposit containing the Images and all other required data and information from or pertaining to the check to MNLB or Processor using the Software. Subject to compliance with the terms, provisions and conditions of this Agreement, MNLB will provisionally credit the Account(s) designated by you for the amount of the deposit(s) on the day of receipt of the Mobile Deposit and enter the Images of the checks into the collection process, in accordance with the provisions of the Account Agreement for the Account(s) into which the Mobile Deposit is to be made and this User Agreement.

As conditions to MNLB’s provision of the Mobile Deposit Service, you must maintain the Account(s) in good standing and comply with requirements and restrictions set forth in this User Agreement, as well as those of this Agreement and the applicable Account Agreement.

Acceptance of These Terms.

Your use of the Mobile Deposit Service constitutes your acceptance of this User Agreement. This User Agreement is subject to change from time to time. We will notify you of any material change via email, text message, on our website, or via your MNLB Mobile Deposit log-in, by providing a revised User Agreement or addendum (or a link thereto), and your continued use of the Mobile Deposit Service will indicate your acceptance of the revised User Agreement. You will be prompted to accept or reject any material change to this User Agreement the next time you use the Mobile Deposit Service after MNLB has made the change. Your acceptance of the revised terms and conditions along with the continued use of the Mobile Deposit Service will indicate your consent to be bound by the revised User Agreement. Further, MNLB reserves the right, in its sole discretion, to change, modify, add, or remove portions from the Mobile Deposit Service. Your continued use of the Service will indicate your acceptance of any such changes to the Mobile Deposit Service. No changes to this User Agreement requested by you shall be effective unless received and agreed to in writing by MNLB.

Limitations of Service.

When using the Mobile Deposit Service, you may experience technical or other difficulties. At certain times the Mobile Deposit Service may not be available due to system maintenance or technical difficulties, including those of the wireless service provider, the software, or circumstances beyond our control. We will attempt to post alerts on our website or send you a text message to notify you of these interruptions in the Mobile Deposit Service. We cannot assume responsibility for any technical or other difficulties or any resulting damages that you may incur. In the event that the Mobile Deposit Services is unavailable, you may deposit original checks at our branches. Some of the Mobile Deposit Service has qualification requirements, and we reserve the right to change the qualifications at any time without prior notice. We reserve the right to change, suspend or discontinue the Mobile Deposit Service, in whole or in part, or your use of the Mobile Deposit Service, in whole or in part, immediately and at any time without prior notice to you.

Hardware and Software.

In order to use the Mobile Deposit Service, you must obtain and maintain, at your expense, a compatible mobile device and/or other hardware and Software that meets all technical requirements, as specified by MNLB from time to time, for the proper delivery of the Mobile Deposit Service and that fulfills your obligation to obtain and maintain secure access to the Internet. MNLB does not endorse or control and is not responsible for any third-party software you may need to use the Mobile Deposit Service. Any such software is accepted by you “as is” and is subject to the terms and conditions of the software agreement you enter into directly with the third-party software provider at time of download and installation. You understand and agree you may also incur, and shall pay, any and all expenses related to the use of the Mobile Deposit Service, including, but not limited to, telephone, mobile data, or Internet service charges. You are solely responsible for the payment of any and all costs and expenses associated with meeting and maintaining all technical requirements and additional items necessary for the proper use of the Mobile Deposit Service. You understand and agree that you are solely responsible for the operation, maintenance and updating of all equipment, software and services used in connection with the Mobile Deposit Service and the cost thereof, and you hereby agree that you will perform, or cause to be performed, all vendor recommended maintenance, repairs, upgrades, and replacements. Financial Institution is not responsible for these, and you hereby release MNLB from, any and all claims or damages resulting from, or related to, any computer virus or related problems that may be associated with using electronic mail or the Internet. MNLB is not responsible for these, and you hereby release MNLB from any and all claims or damages resulting from, or related to, defects in or malfunctions of your hardware or software, or failures of or interruptions in any electrical, telephone, mobile data, or Internet services. MNLB hereby advises you, and you hereby agree to scan your mobile device hardware and software on a regular basis using a reliable mobile device virus detection product in order to detect and remove mobile device viruses.

Devices/features that deliver the best performance Operating system will be the latest version/release and the previous two versions/releases of iOS or Android OS, and older versions/releases may not be supported. MNLB is not responsible for troubleshooting or providing any assistance or technical support relating to mobile devices.

Fees.

A fee may be charged for the Mobile Deposit Service. You are responsible for paying the fees for the use of the Mobile Deposit Service. Any fee that is charged will be disclosed prior to your Mobile Deposit. MNLB may change the fees for use of the Mobile Deposit Service at any time pursuant to the section above titled “Acceptance of these Terms.” You authorize MNLB to deduct any such fees from any MNLB Account in your name, even if such deduction causes an overdraft in the Account. Should you fail or refuse to pay any charges under this Agreement, you agree to pay all collection costs (including reasonable attorneys’ fees) that may be incurred by MNLB.

In addition to the Mobile Deposit Service fees, you agree to pay all taxes, tariffs, and assessments levied or imposed by any government agency in connection with the Mobile Deposit Service, this User Agreement, and/or the software or equipment made available to you (excluding any income tax payable by MNLB). You are also responsible for the costs of any communication lines and any data processing charges payable to third parties.

Eligible Items and Security Interest.

You agree to scan and deposit only “checks” as that term is defined in Regulation CC. You agree that the Image of the Check that is transmitted to MNLB shall be deemed an “item” within the meaning of Articles 3 and 4 of the Uniform Commercial Code.

You agree that you will not use the Mobile Deposit Service to scan and deposit any of the following checks or other items (each a “Prohibited Check”), which shall be considered ineligible:

• Items including but not limited to: money orders, cashier’s checks, traveler’s checks, insurance drafts or savings bonds.
• Checks payable to any person or entity other than the person or entity that owns the account that the check is being deposited into.
• Checks or items containing an alteration to any of the fields on the front of the check or item, or which you know or suspect, or should know or suspect, are fraudulent or otherwise not authorized by the owner of the account on which the check is drawn.
• Checks or items payable jointly, unless deposited into an account in the name of all payees.
• Checks or items previously converted to a substitute check, as defined in Regulation CC or are “image replacement documents” that purport to be substitute checks.
• Checks or items drawn on a financial institution located outside the United States.
• Checks or items that are remotely created checks, as defined in Regulation CC.
• Checks or items not payable in United States currency.
• Checks or items dated more than six (6) months prior to the date of deposit.
• Checks or items prohibited by the MNLB’s current procedures related to the Mobile Deposit Service or which are otherwise not acceptable under the Terms and Conditions of your MNLB Account.
• Checks or items payable on sight or payable through Drafts, as defined in Regulation CC.
• Checks or items with any endorsement on the back other than that specified in this Agreement.
• Checks or items that have previously been submitted through this Mobile Deposit Service or through a remote deposit capture service offered at MNLB or any other financial institution.
• Checks or items that are drawn or otherwise issued by the U. S. Treasury Department.
• Items that do not fall under the definition of ‘check’ as found in Regulation CC.

You agree that we may, in our sole discretion, amend the list of Prohibited Checks from time to time. If you deposit a Prohibited Check, you agree to indemnify and reimburse MNLB for and hold MNLB harmless from and against, any and all losses, costs, and expenses (including reasonable attorneys’ fees) MNLB may incur associated with any warranty, indemnity, or other claim related thereto.

You grant MNLB a security interest in all of your accounts or other deposits (whether general or special) at the MNLB, and in all funds in such accounts or other deposits, to secure you obligations to MNLB under this Agreement. This security interest will survive termination of this User Agreement.

Endorsements and Procedures.

You agree to restrictively endorse any item transmitted through the Mobile Deposit Service as “FOR MOBILE DEPOSIT ONLY AT MNLB” followed by your signature and your Account number with MNLB or as otherwise instructed by MNLB. You shall capture an Image of the front and back of each Check to be deposited and any other required data from each Check and transmit the Images to be deposited and all other required data and information from or pertaining to such Checks to MNLB or its Processor in accordance with the Procedures. MNLB reserves the right to amend the Procedures, with or without prior notice to you. You agree to comply at all times with the MNLB’s security procedures established for online Account access and any other security procedures provided by MNLB, and to safeguard the confidentiality and security of such security procedures (including your Access Codes) and all other proprietary property or information MNLB provides to you in connection with the Mobile Deposit Service and to notify MNLB immediately if you have any reason to believe the security or confidentiality required by this provision has been or may be breached. You acknowledge, understand, and agree such security procedures are not designed for the detection of errors. MNLB is not, and will not be, obligated to detect errors by you or others, even if MNLB takes certain actions from time to time to do so. To ensure accuracy, you shall key the amount of each Check prior to transmitting the Mobile Deposit in accordance with the Procedures. You may send multiple Mobile Deposits to MNLB or Processor throughout the day, not to exceed the deposit limits discussed in the section of this User Agreement titled “Deposit Limits.”

Image Quality.

The Images of Checks transmitted to the MNLB using the Mobile Deposit Service must be legible, as determined in the sole discretion of the MNLB. Without limiting the foregoing, each Image of each Check must be of such quality that the following information can be clearly read and understood by sight review of such Image:

 

• The amount of the Check;
• The payee of the Check;
• The signature of the drawer of the Check;
• The date of the Check;
• The Check number;
• The information identifying the drawer and the paying financial institution that is preprinted on the Check, including the MICR line; and
• All other information placed on the Check prior to the time an Image of the Check is captured, such as any required identification written on the front of the Check and any indorsements applied to the back of the Check.

Each Image shall also comply with any other requirements established from time to time by MNLB and shall meet all standards for image quality established by the American National Standards Institute (ANSI), the Federal Reserve, or any other regulatory agency, clearinghouse, or association. You shall ensure the scanned Image of the Check transmitted to MNLB includes the full-field MICR encoding on each Check.

Receipt of Mobile Deposit and Notification.

You agree that you shall be solely liable for, and MNLB shall not have any liability whatsoever to you for, any Mobile Deposit or the Images or other information contained therein that are not received by MNLB or for Mobile Deposits or the Images or other information contained therein that are intercepted or altered by an unauthorized third party or dropped during transmission. You agree that MNLB has no obligation to accept a Mobile Deposit and, therefore, we reserve the right to reject any Mobile Deposit, or the Images or other information contained therein transmitted through the Mobile Deposit Service, at our discretion, without liability to you. MNLB has no obligation to notify you of the rejection of a Mobile Deposit or the Images or other information contained therein and shall have no liability to you for failing to do so. You agree to accept an electronic notification regarding the status of your transmitted Mobile Deposits, or the Images or other information contained therein, including any notification of holds placed on the Mobile Deposit or any Image contained therein. A Mobile Deposit is considered received by MNLB when a complete copy of the Mobile Deposit has been written on a MNLB electronic storage device in conformity with MNLB’s technical and operational requirements. To meet the Cut-Off Time (as defined below), the Mobile Deposit must be received by MNLB prior to the Cut-Off Time and successfully pass the edits for conformity with the technical requirements. For purposes of determining when a Mobile Deposit has been delivered and received, MNLB’s records shall be determinative. Upon receipt of a Mobile Deposit, MNLB will send a confirmation that we have received the Mobile Deposit. Your receipt of such confirmation does not mean the transmission was error-free, complete or will be considered a Mobile Deposit and credited to your Account.

Upon receipt of a Mobile Deposit submitted by you, MNLB may (but is not required to) examine such Mobile Deposit and the Images and other information contained therein to ensure that you have complied with this User Agreement and followed the Procedures. If MNLB determines that you have not complied with this User Agreement or followed the Procedures or if errors exist in the Images or other information contained in the Mobile Deposit, MNLB, in its sole discretion, may either reject the Mobile Deposit or elect to correct the error and accept and process the corrected Mobile Deposit (a “Corrected Mobile Deposit”). As a form of correction, MNLB may credit your Account for the full amount of the deposit and make any necessary adjustments to the Account to correct the error. MNLB may, at its option, also perform a risk management analysis of one or more Mobile Deposits submitted by you to detect potentially fraudulent Checks, and, in its sole discretion, MNLB may reject any such Mobile Deposit, or the Images or other information contained therein. If after examination of a Mobile Deposit and the Images and other information contained therein, MNLB determines that you have complied with this User Agreement and processed and transmitted the Mobile Deposit in accordance herewith and with the Procedures, MNLB shall accept the Mobile Deposit for deposit to your Account. Notwithstanding the fact that MNLB has accepted a Mobile Deposit for processing, any credit made to your Account shall be provisional, and you shall remain liable to MNLB for any errors, inaccuracies, breach of warranties, and any other loss sustained by, or claim made against, MNLB.

Availability of Funds.

You agree that Mobile Deposits transmitted using the Mobile Deposit Service are not subject to the funds availability requirements of Regulation CC. To be eligible for processing on the day transmitted, Mobile Deposits must be received and accepted by MNLB on or before the cut-off time established by MNLB from time to time (the “Cut-Off Time”) on a Business Day that MNLB is open. A Mobile Deposit that is received after the Cut-Off Time shall be deemed to have been received on the Business Day following the Business Day on which the Mobile Deposit is actually received by MNLB. MNLB’s current Cut-Off Time is 3:00 p.m., Central Time. MNLB reserves the right to change the Cut-Off Time. Any such change shall be effective immediately and may be implemented prior to your receipt of notice thereof. You may contact MNLB at any time to verify the Cut-Off Time. Upon acceptance of the Mobile Deposit, MNLB shall grant Provisional Credit (as herein defined) to your account for the total amount of the Corrected Mobile Deposit or the accepted Mobile Deposit, as applicable. “Provisional Credit” means that the credit is made to your account subject to final payment of the Checks and subject to the applicable Account Agreement. For the purpose of determining availability of funds, the MNLB may hold funds for the period of time permitted by the MNLB’s Regulation CC Funds Availability Disclosure.

Laws, Rules, and Regulations.

You agree to comply with all existing and future operating procedures used by MNLB for processing transactions. You further agree to comply with, and be bound by, all applicable state or federal laws, rules, regulations, orders, guidelines, operating circulars and pronouncements, affecting checks and drafts, including, but not limited to, all rules and procedural guidelines established by the Federal Reserve and the Electronic Check Clearing House Organization (“ECCHO”) and any other clearinghouse or other organization in which MNLB is a member or to which rules MNLB has agreed to be bound. These procedures, rules, and regulations (collectively the “Rules”) and laws are incorporated herein by reference. In the event of conflict between the terms of this User Agreement and the Rules, the Rules will control.

Maintenance and Disposal of Transmitted Items.

You shall stamp the original check “Processed” after the process of scanning the Check. Upon your receipt of a confirmation from the MNLB that we received your transmitted Image, you agree to securely store the original Check for a period of three (3) calendar days from the date of the Image transmission (such period the “Retention Period”). During the Retention Period, you shall take appropriate security measures to ensure that: (a) only authorized individuals shall have access to original Checks, (b) the information contained on such Checks shall not be disclosed, (c) such Checks will not be duplicated or scanned more than one time and (d) such Checks will not be deposited or negotiated in any form. Upon expiration of the Retention Period, you shall destroy the original Check you transmitted as an Image using commercially reasonable methods of destruction, such as a cross-cut paper shredder. You hereby indemnify MNLB for, and hold MNLB harmless from and against, any and all claims, demands, actions, causes of action, losses and damages, of whatever nature or kind, and regardless of the theory upon which the same is (are) based, caused directly or indirectly by, arising out of, related to, in connection with or resulting wholly or partially from, the destruction of original Checks by you. During the Retention Period, you agree to promptly (but in all events within five (5) business days) provide the original Check to MNLB upon request.

Presentment.

The manner in which the Images are cleared, presented for payment, and collected shall be in MNLB’s sole discretion subject to the Rules and the applicable Account Agreement. MNLB, in its sole discretion, shall select the clearing agents used to collect and present the Images, and MNLB’s selection of the clearing agents shall be considered to have been designated by you.

Deposit Limits.

We may establish limits on the dollar amount and/or number of Check Images or Mobile Deposits from time to time. If you attempt to initiate a Mobile Deposit in excess of these limits, your Mobile Deposit may be rejected. If we permit you to make a Mobile Deposit in excess of these limits, such Mobile Deposit will still be subject to the terms of this User Agreement, and we will not be obligated to allow such a Mobile Deposit at other times. The current daily dollar limit is $5,000 per Business Day with daily Images transmitted not to exceed five (5) Images per Business Day. MNLB reserves the right to change the limits. Any such change shall be effective immediately and may be implemented prior to your receipt of notice thereof. You may contact MNLB at any time to verify the current limits.

Returns and Chargebacks.

If any Check deposited by you is dishonored or otherwise returned unpaid by the drawee financial institution, or returned by a clearing agent for any reason including, but not limited to, issues relating to the quality of the Image, you understand and agree that since you either maintain the original Check or have destroyed the original Check in accordance with the section of this User Agreement titled “Maintenance and Disposal of Transmitted Items,” the original Check will not be returned and that MNLB may chargeback an image of the Check to your Account. You further understand and agree the image may be in the form of an electronic or paper reproduction of the original Check or a substitute check. Unless otherwise instructed by MNLB, you agree not to deposit the original Check if an Image or other debit as previously described is charged back to your Account. We further reserve the right to chargeback to your Account at any time, any Check we subsequently determined was a Prohibited Check. You agree MNLB is not liable for any loss, costs, or fees you may incur as a result of our chargeback of a Prohibited Check.

Errors.

You agree to notify MNLB of any suspected errors regarding Items deposited through the Mobile Deposit Service right away, and in no event later than thirty (30) days after the applicable MNLB account statement is sent. Unless you notify MNLB within thirty (30) days, such statement regarding all deposits made through the Mobile Deposit Service shall be deemed correct, and you are prohibited from bringing a claim against MNLB for such alleged error.

By using the Mobile Deposit Service, you accept the risk that an item may be intercepted or misdirected during transmission. MNLB bears no liability to you or others for any such intercepted or misdirected items or information disclosed through such errors.

Time-Out.

It is understood that MNLB Mobile Deposit Service has a built-in time-out for security reasons. Said time-out feature will close the program after a period of time of non-use on the MNLB Mobile Deposit Service. After said period of time, you will be required to log back into MNLB Mobile Deposit to complete your transaction. There is no automatic save feature, and you will need to click the save feature that appears for saving any data for later use if prompted to do so.

Update Notice.

You shall provide written notice to MNLB of any changes to the information previously provided by you to MNLB. Such notice must be received by MNLB within five (5) Business Days of the change. You shall provide any additional information requested by MNLB within five (5) Business Days of such request. MNLB retains the right to: (i) review your Checks, Mobile Deposits, and activities from time to time and (ii) re-price or terminate the Mobile Deposit Service based on changes to information you previously provided to MNLB.

Financial Information.

MNLB may from time-to-time request information from you in order to evaluate a continuation of the Mobile Deposit Service to be provided by MNLB hereunder and/or adjustment of any limits set by this User Agreement. You agree to provide the requested financial information immediately upon request by MNLB, in the form required by MNLB. You authorize MNLB to investigate or reinvestigate at any time any information provided by you in connection with this User Agreement or the Mobile Deposit Service and to request reports from credit bureaus and reporting agencies for such purpose. If you refuse to provide the requested financial information, or if MNLB concludes, in its sole discretion, that your credit risk is unacceptable, or if you refuse to give MNLB access to your premises, MNLB may terminate the Mobile Deposit Service according to the provisions hereof.

User Warranties and Indemnification.

You warrant to MNLB that:

• You will only deposit Checks that are authorized by this User Agreement, the Procedures, and MNLB’s terms and conditions governing your account.
• You will not (i) create duplicate Images of the Checks, (ii) transmit a duplicate Image to Financial Institution, or (iii) deposit or otherwise negotiate the original of any Check of which an Image was created. You further warrant that no subsequent transferee, including but not limited to Financial Institution, a collecting or returning Financial Institution, drawer, drawee, payee, or endorser, will be asked to pay the original Check from which the Image(s) was created or a duplication (whether paper or electronic, including ACH Entries) of the Check(s).
• No subsequent transferees of the Image(s), including but not limited to Financial Institution, a collecting or returning Financial Institution, drawer, drawee, payee, or endorser, shall sustain a loss as the result of the fact that the Image was presented for payment or returned instead of the original Check.
• All data and other information you provide to the Financial Institution, including, but not limited to, data contained in the MICR line of each Check is complete, accurate and true, and complies with the requirements of this Agreement.
• You will comply with this Agreement and all applicable rules, laws, and regulations.
• You are not aware of any factor which may impair the collectability of the Check.
• This Agreement is valid and enforceable against you in accordance with its terms, and the Entry into, and performance of this Agreement by you will not violate any law, or conflict with any other agreement, to which you are subject.
• There is no action, suit, or proceeding pending or, to your knowledge, threatened, which if decided adversely, would affect your financial condition or operations.
• All Checks and your transactions are, and will be, bona fide. All signatures on Checks are authentic and authorized.
• You agree to indemnify and hold harmless Financial Institution from and against any and all claims, losses, liabilities, costs, and expenses (including, without limitation, reasonable attorneys’ fees) arising from a breach of any of your warranties, representations and/or obligations under this Agreement or any other agreement between you and Financial Institution, including, but not limited to, Financial Institution’s terms and conditions governing your account. The terms of this paragraph shall survive the termination of this Agreement.

Cooperation with Investigations.

You agree to cooperate with us in the investigation of unusual transactions, poor quality transmissions, and resolution of customer claims, including by providing, upon request and without further cost, any originals or copies of Items deposited through the Mobile Deposit Service in your possession and your records relating to such Items and transmissions.

Termination.

We may terminate this User Agreement at any time and for any reason. This User Agreement shall remain in full force and effect unless and until it is terminated by us. Without limiting the foregoing, this Agreement may be terminated if you breach any term of this User Agreement, if you use the Mobile Deposit Service for any unauthorized or illegal purposes or you use the Mobile Deposit Service in a manner inconsistent with the terms of your Account Agreement, or any other agreement with us. All Sections of this User Agreement which are intended by their terms to survive termination of this User Agreement shall survive such termination. All representations, warranties, disclaimers, indemnities, limitations of liability and obligations of confidentiality set forth herein shall also survive the termination of this User Agreement.

Enforceability.

We may waive enforcement of any provision of this User Agreement. No waiver of a breach of this User Agreement shall constitute a waiver of any prior or subsequent breach of the User Agreement. Any such waiver shall not affect our rights with respect to any other transaction or to modify the terms of this User Agreement. In the event that any provision of this User Agreement shall be deemed to be invalid, illegal, or unenforceable to any extent, the remainder of the User Agreement shall not be impaired or otherwise affected and shall continue to be valid and enforceable to the fullest extent permitted by law.

Ownership & License.

You agree that MNLB and its suppliers and licensors retain all ownership and proprietary rights in the Mobile Deposit Service, associated content, technology, and website(s), including, but not limited to, the object and source codes therefore, and any and all updates, upgrades, fixes and enhancements thereto and any and all documentation, user guides and instructions pertaining thereto. Your use of the Mobile Deposit Service is subject to and conditioned upon your complete compliance with this User Agreement. Without limiting the effect of the foregoing, any breach of this User Agreement shall immediately terminate your right to use the Mobile Deposit Service. Without limiting the restriction of the foregoing, you may not use the Mobile Deposit Service (i) in any anti-competitive manner, (ii) for any purpose which would be contrary to MNLB’s business interest, or (iii) to MNLB’s actual or potential economic disadvantage in any aspect. You may use the Mobile Deposit Service only for the purpose intended in accordance with this User Agreement. You may not copy, reproduce, distribute, or create derivative works from the content and agree not to reverse engineer or reverse compile, or create derivative works from any of the technology used to provide the Mobile Deposit Service.

Indemnification and Liability; Third Party Claims.

You hereby indemnify MNLB and each of its parents, subsidiaries, and affiliates and their respective officers, directors, employees, members, partners, agents, insurers, and attorneys (each an “Indemnified Party” and, collectively, the “Indemnified Parties”) for, and hold each of the Indemnified Parties harmless from and against, all actions, causes of action, claims, damages, liabilities, and expenses (including reasonable attorneys’ fees) of any nature or kind (including those by third parties) arising out of, or related to, this Agreement, including all actions, causes of action, claims, damages, liabilities, and expenses arising out of, related to or resulting from: (a) your (i) failure to report required changes, (ii) transmission of incorrect data to MNLB or (iii) failure to maintain compliance with the Rules, (b) (i) MNLB’s provision of the Mobile Deposit Service, (ii) MNLB’s action or inaction in accordance with, or in reliance upon, any instructions or information received from any person MNLB reasonably believes to be you, (c) your breach of any of your representations, warranties, covenants or other agreements or responsibilities under this User Agreement and/or (d) your breach or violation of any Rules; provided, however, you are not obligated to indemnify MNLB for any damages solely and proximately caused by MNLB’s gross negligence or willful misconduct.

DISCLAIMER OF WARRANTIES.

YOU AGREE YOUR USE OF THE MOBILE DEPOSIT SERVICE AND ALL INFORMATION AND CONTENT (INCLUDING THAT OF THIRD PARTIES) IS AT YOUR RISK AND IS PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS. WE DISCLAIM ALL WARRANTIES OF ANY KIND AS TO THE USE OF THE MOBILE DEPOSIT SERVICE, WHETHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MER- CHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. WE MAKE NO WARRANTY THAT THE MOBILE DEPOSIT SERVICE (i) WILL MEET YOUR REQUIREMENTS, (ii) WILL BE UNINTERRUPTED, TIMELY, SECURE, OR ERROR-FREE, (iii) THE RESULTS THAT MAY BE OBTAINED FROM THE MOBILE DEPOSIT SERVICE WILL BE ACCURATE OR RELIABLE, AND (iv) ANY ERRORS IN THE MOBILE DEPOSIT SERVICE OR TECHNOLOGY WILL BE CORRECTED. YOU AGREE THAT NO ORAL OR WRITTEN ADVICE OR REPRESENTATION OBTAINED FROM ANY MNLB EMPLOYEE OR REPRESENTATIVE SHALL CREATE A WARRANTY OR REPRESENTATION FOR PURPOSES OF THIS USER AGREEMENT OR THE MOBILE DEPOSIT SERVICE TO BE PERFORMED PURSUANT HERETO.

MNLB MAKES ABSOLUTELY NO REPRESENTATIONS OR WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED, IN LAW OR IN FACT, TO YOU OR TO ANY OTHER PERSON AS TO ANY MOBILE DEVICE HARDWARE, SOFTWARE OR EQUIPMENT IN CONNECTION WITH THE MOBILE DEPOSIT SERVICE, INCLUDING, BUT NOT LIMITED TO, YOUR MOBILE DEVICE OR RELATED EQUIPMENT, YOUR COMPUTER SYSTEMS OR RELATED EQUIPMENT, YOUR SOFTWARE, OR YOUR INTERNET SERVICE PROVIDER OR ITS EQUIPMENT, OR AS TO THE SUITABILITY OR COMPATIBILITY OF MNLB’S SOFTWARE, INTERNET DELIVERED SERVICE, EQUIPMENT OR COMMUNICATION INTERFACES WITH THOSE THAT YOU USE, OR AS TO WHETHER ANY SOFTWARE OR INTERNET DELIVERED SERVICE WILL PERFORM IN AN UNINTERRUPTED MANNER, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

LIMITATION OF LIABILITY.

ANY PROVISION IN THIS AGREEMENT, ANY OTHER AGREEMENT OR THE RULES TO THE CONTRARY NOTWITHSTANDING, MNLB SHALL ONLY BE LIABLE FOR DAMAGES SOLELY AND PROXIMATELY CAUSED BY ITS GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, AND MNLB’S LIABILITY SHALL IN NO EVENT EXCEED THE LESSER OF (i) YOUR ACTUAL DAMAGES OR (ii) THE TOTAL FEES PAID BY YOU TO MNLB FOR THE MOBILE DEPOSIT SERVICE. YOU AGREE MNLB WILL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, PUNITIVE, OR EXEMPLARY DAMAGES, INCLUDING, BUT NOT LIMITED TO DAMAGES FOR LOSS OF PROFITS, GOODWILL, USE, DATA OR OTHER LOSSES RESULTING FROM THE USE OR THE INABILITY TO USE THE MOBILE DEPOSIT SERVICE INCURRED BY YOU OR ANY THIRD PARTY ARISING FROM OR RELATED TO THE USE OF, INABILITY TO USE, OR THE TERMINATION OF THE USE OF THIS MOBILE DEPOSIT SERVICE, REGARDLESS OF THE FORM OF ACTION OR CLAIM (WHETHER CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE), EVEN IF MNLB HAS BEEN INFORMED OF THE POSSIBILITY THEREOF.

TO THE FULLEST EXTENT ALLOWED BY LAW, AND SUBJECT TO THE FOREGOING PROVISIONS OF THIS SECTION DEALING WITH MNLB’S LIABILITY FOR DAMAGES SOLELY AND PROXIMATELY CAUSED BY ITS GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, MNLB’S LIABILITY TO YOU UNDER THIS AGREEMENT SHALL BE LIMITED TO CORRECTING ERRORS RESULTING FROM MNLB’S FAILURE TO EXERCISE ORDINARY CARE.

MNLB SHALL NOT BE RESPONSIBLE OR LIABLE FOR ANY ERRORS OR FAILURES RESULTING FROM DEFECTS IN, OR MALFUNCTIONS OF, YOUR MOBILE DEVICE HARDWARE OR SOFTWARE, FOR THE QUALITY OF PERFORMANCE OR LACK OF PERFORMANCE OF ANY MOBILE DEVICE SOFTWARE OR HARDWARE OR INTERNET DELIVERED SERVICES SUPPLIED BY MNLB TO YOU IN CONNECTION WITH THIS AGREEMENT, OR FOR THE TRANSMISSION OR FAILURE OF TRANSMISSION OF ANY INFORMATION FROM YOU TO MNLB, FROM MNLB TO YOU, FROM YOU TO ANY PROCESSOR, FROM ANY PROCESSOR TO MNLB, OR OTHERWISE. MNLB SHALL NOT BE RESPONSIBLE FOR NOTIFYING YOU OF ANY UPGRADES OR ENHANCEMENTS TO ANY OF YOUR MOBILE DEVICE HARDWARE OR SOFTWARE.

PLEASE PRINT A COPY OF THIS AGREEMENT FOR YOUR RECORDS