Bank of San Juans: Terms and Conditions

Terms and Conditions

ACCEPT or DECLINE

Definitions

In this document we, our, and us refers to Bank of the San Juans and any agent, independent contractor, designee or assignee Bank of the San Juans may involve in the provision of Internet banking services.

You and your refers to the customer using Web Banking.

Access I.D. is the identification necessary to access the Web Banking, and will be issued by us.

PIN or "password" is your personal identification number.

"Transfer Instructions" are the instructions you give us to transfer funds between accounts accessible to you via Web Banking.

Business Day is any day Monday through Friday, except bank holidays.

Our Mutual Agreement

This agreement with the Regulation E disclosure, The Deposit Account Agreement and any written application for Web Banking, as they may be amended, serves as our agreement with you governing your use of Web Banking and your deposit accounts accessed through Web Banking. All of these agreements, as amended from time to time, are incorporated into this agreement by reference.

When you, or your authorized party, use Web Banking, you accept and agree to be legally bound by the conditions and terms of all of the agreements herein, to be responsible for all authorized transactions initiated through Web Banking, and to be responsible for any unauthorized transactions to the extent permitted by law.

Your rights, liabilities, responsibilities for Web Banking fund transfers are governed by this agreement and to the extent applicable, by the provisions of the Federal Electronic Fund Transfer Act and the Federal Reserve Board's Regulation E and Colorado Law.

General Provisions

Your use of the Web Banking feature is subject to the following general terms and conditions.

Use of Web Banking

You may gain access to Web Banking on the Internet through a personal computer, modem, Web Banking I.D., and Personal Identification Number. To use Web Banking you must have access to a personal computer with a modem and related equipment and services required to successfully connect to the Internet.

You will remain solely responsible for the purchase, hook-up, installation, loading, operation and maintenance of all hardware and software and all related costs.

Your Web Banking I.D.

All Web Banking transactions or inquiries must be initiated by use of your PIN or password. We will assign a Web Banking I.D. and PIN after we have accepted your application. The first time you sign on Web Banking, you will be required to select a new PIN or password. You may change your PIN or password from time to time and will be required to change your PIN or password every 6 months.

You agree that any Web Banking transaction or request initiated by use of your password or PIN will be subject to and governed by this agreement.

Your password or PIN is used to access your accounts, you should treat it as you would any other sensitive personal data. Because your password or PIN serves as the principal security measure for access to your accounts on Web Banking, you agree that:

You will not make your password or PIN available to any unauthorized person. If you make your PIN or password available to anyone, either intentionally or negligently, you authorize that person to access your accounts through Web Banking and to give us instructions relating to your accounts. You also authorize us to comply with such instructions.

Except to the extent prohibited by law or regulation, the following Web Banking transactions using your password or PIN will be deemed to have been expressly authorized by you, and the persons initiating the transactions will be deemed an authorized user:

Any Web Banking transaction which results in the transfer of funds from one account you may access through Web Banking to any other account you may access through Web Banking, even if a subsequent transfer by a co-owner of the second account results in the transfer of such funds to or for the benefit of the co-owner or third party.

For any Web Banking transaction which you contend is unauthorized, you agree to the following:

Cooperate fully in the investigation of the unauthorized transaction.
Assign to us your right of recovery against the wrongdoer if we reconstitute your account, and
Assist and cooperate fully with us in the recovery of any loss and prosecution of wrongdoers.

Accounts Accessible

Subject to approval, you may designate the accounts you wish to access through Web Banking. You must be owner or co-owner of each designated account. You must designate one account as your primary account for the Web Banking Bill payment service.

Overdraft

If your use of Web Banking results in an overdrawn account, and the overdraft is not covered by an approved line of credit, you agree to make immediate payment to us in the amount of the overdraft, with any related service charges. You also agree that we may charge the overdraft and related service charges against your other accounts with us to the extent permitted by law or your agreement.

Web Banking Bill Payment Service

The Bill payment service allows you to instruct us to pay bills designated by you. An additional Bill payment ID and PIN or password is needed to access this service.

You agree to keep your Bill payment PIN confidential. Use of your PIN by you or any other person with your authorization will be considered as your written signature authorizing us to complete any transaction or request communicated through Web Banking Bill payment service.

Designation of Payees: You must provide payment instructions for a new payee, or for one you wish to reestablish, at least ten working days before the first date of payment for that payee. The payment of taxes, payments into court, and payments to those located outside of the continental United States by means of Web Banking Bill payment is strictly prohibited. We reserve the right to refuse to pay any person or entity to whom you have directed payment.

Payment Instructions: You must provide detailed instructions including Payee's name, address, your account number with payee (if any), the payment amount, due date, and the frequency of payment. You authorize us to follow your payment instructions. The payment deadline is controlled by the third party bill payer company.

If the payment cannot be made electronically then the payment will be made by paper check. The check will not be signed by you but you authorize that any check issued in this manner will be valid. We are not responsible for the delay payments due to the U.S. Mail or failure of the payee to post receipt. In order to avoid late payments make payment date 5 business days prior to due date for electronic transfers and 10 business days with paper transfers. If you enter a payment date less than these criteria you will bear the responsibilities, late charges, and penalties if it is not received in time. If the bill is returned in any case you will be responsible for its re-initiation. All bills must be paid through the primary account of your designation.

The Web Banking Bill payment service is without warranty of any kind, either express or implied, including, but not limited to, the implied warranties of merchantability and fitness for a particular purpose.

Web Banking NSF fees (in addition to regular fees)

If your primary account does not have sufficient funds all applicable fees (see schedule of fees) and charges due may be setoff against any of your other accounts as provided by law.

Account Transfers. You may transfer funds between the following accounts:

Checking to checking, loan, savings or reserve account.
Savings to checking, loan, savings, or reserve account.
Reserve to checking accounts.

You may be limited by federal law or per your agreement with us as to your ability to initiate transfers.

According to Federal regulations, you may not make more than six (6) pre-authorized or automatic transfers from a Savings or a Money Market Deposit Account during a given monthly statement period. You cannot stop payments on transfers through Web Banking.

Balance Inquiries

Shown balances of accounts may include deposits subject to verification by us. The balance may also differ from your records due to deposits in progress, outstanding checks or other withdrawals, payments or charges. A transfer request may not result in immediate availability because of the time required to process the request.

Your transfer and payment instructions are not processed instantaneously. Every transaction is processed nightly after the close of each business day. Information on Web Banking may not include transactions, which occurred the previous day.

Limitation of Warranty and Liability: We will incur no liability if we are unable to complete any of your payment or transfers because of the Internet or communication lines interruptions or failures. We make no promises that Web Banking will be uninterrupted or free of error. If such an event may occur our sole responsibility will be to use reasonable efforts to resume services. The foregoing shall constitute our entire liability and your exclusive remedy. In no event shall the Bank of the San Juans be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits (even if we are advised of the possibility thereof) arising in any way out of the installation, use or maintenance of any computer equipment, the Web Banking service.

Our Liability for Incomplete Transactions

It is our responsibility to process all transfers and Bill payments properly initiated through Web Banking in accordance with this Agreement. We will be liable for damages caused by delay in process or error in process. We will not be liable if any of the following occurs:

Funds are not available in your account.
Funds are subject to legal process.
You had knowledge of or questions about the possible malfunction of equipment when you initiated the transaction.
Any information provided by you about the payee is incorrect.
There are any delays in handling of the payment by the payees.
Natural Disasters (fire, flood, tornado, etc.) or other uncontrollable circumstances (mail delays, power failures, etc) prevent proper completion and delivery of transactions.
Other applicable laws and/or regulations exempt as from liability.

In no event shall the Bank of the San Juans be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits (even if we are advised of the possibility thereof) arising in any way out of installation, use or maintenance of any computer equipment or the Web Banking service.

Notice of rights and liabilities

Notify us immediately if your password has been lost or stolen. Failure to notify us immediately could result in the loss of all money accessible by your password or PIN. If your statement shows unauthorized transfers, notify us within sixty (60) days after the statement is mailed to you or viewed on your computer.

If any of your accounts has co-owners, each owner will be jointly liable for any obligation from use of Web Banking to access accounts. This liability shall extend to any line of credit accessed through any account.

Notice: Any notice we send you electronically or via mail is considered effective. If any account has more than one owner, notification of one owner shall be considered effective notice to all. You may request a paper copy of any information we send you electronically up to one year after receipt.

Information authorization: You authorize us to request and obtain consumer reports on you from any consumer reporting agency or any other source relating to the verification of your accounts. You authorize us disclosure of information relating to you and your accounts to (i ) Any consumer reporting agency or entity conducting a legitimate credit inquiry (ii) Any financial institution (iii)Any account information service (iv) To any summons, subpoena, court or administrative order which requires our compliance (v) Any of our affiliates (vi) To any law enforcement officer, if suspected wrongdoing in connection to your accounts. You also authorize that we may obtain financial information regarding your accounts with any designated payee to resolve payment problem. You agree to pay our standard charges for expenses incurred in the legal process, including attorney's fees.

Information authorization: You authorize us to request and obtain consumer reports on you from any consumer reporting agency or any other source relating to the verification of your accounts. You authorize us disclosure of information relating to you and your accounts to (i) Any consumer reporting agency or entity conducting a legitimate credit inquiry (ii) Any financial institution (iii)Any account information service (iv) To any summons, subpoena, court or administrative order which requires our compliance (v) Any of our affiliates (vi) To any law enforcement officer, if suspected wrongdoing in connection to your accounts. You also authorize that we may obtain financial information regarding your accounts with any designated payee to resolve payment problem. You agree to pay our standard charges for expenses incurred in the legal process, including attorney's fees.

You agree to notify us promptly of any address change.

To terminate or discontinue service you must give written notice to us ten (10) business days prior to cancellation. You will not be entitled to any refunds. We may terminate yours or other co-owners services at any time without notice or cause. Termination or discontinuation shall not affect your liability or obligations. This Agreement may not be assigned to any other party by you. We may assign or delegate, in part or whole, to any third party our rights or responsibilities under this Agreement. ny other party by you. We may assign or delegate, in part or whole, to any third party our rights or responsibilities under this Agreement.

We will not have waived any of our rights or remedies under this agreement unless otherwise notified via mail or electronic message. No delay shall act as a waiver of rights and remedies.

If any action at law or in equity is required to enforce the terms of this agreement, the prevailing parties shall be entitled to attorney's fees, costs, and expenses in addition to any other expense to which the prevailing parties may be entitled. The venue and jurisdiction for this agreement lies exclusively in the District Court of La Plata County, State of Colorado. This agreement is governed by the laws of the State of Colorado.

We reserve the right to amend this agreement at any time. We will provide you with notice of change. Your use of Web Banking after sent notice shall constitute your agreement to such changes.

The consumer protection provisions of the Federal Electronic Fund Transfer Act and the Federal Reserve Board's Regulation E apply only to electronic fund transfers for consumer checking and savings accounts established primarily for personal, family or household purposes. If your account does not fall under these categories then any Web Banking electronic fund transfer will be considered an authorized use, making your liability to that account unlimited.

Virus Protection: We are not responsible for any electronic virus or viruses that you may encounter. We encourage our customers to routinely scan their PC and diskettes using a reliable virus product to detect and remove any viruses. Undetected or unrepaired viruses may corrupt and destroy your programs, files, and even your hardware. Additionally, you may unintentionally transmit the virus to other computers.

Cancellation of Internet Banking: Web Banking services may be cancelled at any time without prior notice due to insufficient funds in one of your accounts. After cancellation, service may be reinstated once sufficient funds are available in your accounts to cover any fees and other pending transfers or debits. We reserve the right to refuse Web Banking services to anyone.

Errors and Questions

In case of errors or questions concerning transactions completed with Web Banking, do one of the following, as soon as possible:

Telephone Bank of the San Juans at (970) 247-1818.

Write Bank of the San Juans at 144 East 8th Street, Durango, Colorado 81301.

We must hear from you within (60) days after you receive the first statement or notification in which the error or problem appeared. Please include the following information.

Name

Account Number

Description of the error or what you are unsure about, plus an explanation of why you believe it is in error or why you need more information.

Tell us the amount of the error.

For Web Banking bill payment service errors, tell us:

Checking account number used to pay bill.
Payee name.
Date the payment was sent.
Confirmation number.
Payment amount.
Payee account number for the payment in question.

We will tell you the results of our investigation within ten (10) business days after we hear from you. If we need more time we may take up to forty-five (45) business days to investigate. If we choose to take up to forty-five (45) business days, we will give you a provisional credit to your account within ten (10) business days. If we decide there was no error, we will furnish you with a written explanation within three (3) business days after the investigation is complete.