Regulation E Disclosure

*** Updated Regulation E Disclosure, as of April 30, 2018 ***

Know YOUR rights And responsibilities

ELECTRONIC FUNDS TRANSFER DISCLOSURE

THE FIRST NATIONAL BANK OF MOOSE LAKE

400 ELM AVENUE, MOOSE LAKE, MINNESOTA 55767

MEMBER FDIC

ELECTRONIC FUND TRANSFERS YOUR RIGHTS AND RESPONSIBILITIES

Important Information About Procedures for Opening a New Account. To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth (for individuals), and other information that will allow us to identify you. We may also ask to see your driver’s license (for individuals) or other identifying documents.

Indicated below are types of Electronic Fund Transfers we are capable of handling, some of which may not apply to your account. Please read this disclosure carefully because it tells you your rights and obligations for the transactions listed. You should keep this notice for future reference.

Electronic Fund Transfers Initiated By Third Parties. You may authorize a third party to initiate electronic fund transfers between your account and the third party’s account. These transfers to make or receive payment may be one-time occurrences or may recur as directed by you. These transfers may use the Automated Clearing House (ACH) or other payments network. Your authorization to the third party to make these transfers can occur in a number of ways. For example, your authorization to convert a check to an electronic fund transfer or to electronically pay a returned check charge can occur when a merchant provides you with notice and you go forward with the transaction (typically, at the point of purchase, a merchant will post a sign and print the notice on a receipt). In all cases, these third party transfers will require you to provide the third party with your account number and bank information. This information can be found on your check as well as on a deposit or withdrawal slip. Thus, you should only provide your bank and account information (whether over the phone, the Internet, or via some other method) to trusted third parties whom you have authorized to initiate these electronic fund transfers.

Examples of these transfers include, but are not limited to:

• Preauthorized credits. You may make arrangements for certain direct deposits to be accepted into your checking or savings account(s).

• Preauthorized payments. You may make arrangements to pay certain recurring bills from your checking or savings account(s).

• Electronic check conversion. You may authorize a merchant or other payee to make a one-time electronic payment from your checking account using information from your check to pay for purchases or pay bills.

• Electronic returned check charge. You may authorize a merchant or other payee to initiate an electronic funds transfer to collect a charge in the event a check is returned for insufficient funds.

ATM Transfers – Star, Cirrus, Plus, Visa, Mastercard, Maestro, Allpoint, and Quest Networks – types of transfers and dollar limitations

You may access your account(s) by ATM using your Debit Card and personal identification number (PIN), to:

get cash withdrawals from checking account(s) with a debit card

dollar limitations will be disclosed at card issuance

get cash withdrawals from savings account(s) with a debit card

dollar limitations will be disclosed at card issuance

get information about, with a debit card

the account balance of your checking account(s)

the account balance of your savings account(s)

Some of these services may not be available at all terminals.

Types of Debit Card Point-of-Sale Transactions –

You may access your checking account(s) to purchase goods (in person, online, or by phone), pay for services (in person, online, or by phone), get cash from a merchant, if the merchant permits, or from a participating financial institution, and do anything that a participating merchant will accept.

Point-of-Sale Transactions – dollar limitations –

Using your card:

dollar limitations will be disclosed in writing at card issuance

Please see limitations on frequency of transfers. In addition to those limitations on transfers elsewhere described, if any, the following limitations apply:

Transfers from a savings or money market account to another account or third parties by preauthorized, automatic, telephone, computer or mobile banking transfer or by check, draft, debit card, or similar order to third parties are limited to six per calendar month.

How to Increase Limits – To request a temporary POS/ATM limit increase (one week or less) you can call us at 218-485-4441.

To permanently request a POS/ATM increase you must sign an amendment form. All increases are subject to approval.

A temporary debit authorization hold affects your account balance and daily card limits – On debit card purchases, merchants may request a temporary hold on your account for a specified sum of money, which may be more than the actual amount of your purchase. When this happens, our processing system cannot determine that the amount of hold exceeds the actual amount of your purchase. This temporary hold, and the amount charged to your account will eventually be adjusted to the actual amount of your purchase, but it may be up to ten days before the adjustment is made. Until the adjustment is made, the amount of funds in your account available for other transactions will be reduced by the amount of the temporary hold. If another transaction is presented for payment in an amount greater than the funds left after the temporary hold amount, that transaction would be denied. Your debit card also came with daily dollar limits and the debit authorization hold also reduces your daily dollar limit.

Currency Conversion and International Transactions. When you use your Visa®-branded Debit Card at a merchant that settles in currency other than US dollars, the charge will be converted into the US dollar amount. The currency conversion rate used to determine the transaction amount in US dollars is either a rate selected by Visa from the range of rates available in wholesale currency markets for the applicable central processing date, which rate may vary from the rate Visa itself receives, or the government-mandated rate in effect for the applicable central processing date. The conversion rate in effect on the processing date may differ from the rate in effect on the transaction date or posting date. Visa USA charges us a .8% International Service Assessment on all international transactions, regardless of whether there is a currency conversion. If there is a currency conversion, the International Service Assessment is 1% of the transaction. In either case, we pass this international transaction fee on to you. An international transaction is a transaction where the country of the merchant is outside the USA.

Advisory Against Illegal Use. You agree not to use your card(s) for illegal gambling or other illegal purpose. Display of a payment card logo by, for example, an online merchant does not necessarily mean that transactions are lawful in all jurisdictions in which the cardholder may be located.

Non-Visa Debit Transaction Processing. We have enabled non-Visa debit transaction processing. This means you may use your Visa®-branded Debit Card on a PIN-Debit Network* (a non-Visa network) without using a PIN.

The non-Visa debit network(s) for which such transactions are enabled are: STAR and PULSE networks.

Examples of the types of actions that you may be required to make to initiate a Visa transaction on your Visa®-branded Debit Card include signing a receipt, providing a card number over the phone or via the Internet, or swiping the card through a point-of-sale terminal.

Examples of the types of actions you may be required to make to initiate a transaction on a PIN-Debit Network include initiating a payment directly with the biller (possibly via telephone, Internet, or kiosk locations), responding to a logo displayed at a payment site and choosing to direct payment through that network, and having your identity verified using known information derived from an existing relationship with you instead of through use of a PIN.

The provisions of your agreement with us relating only to Visa transactions are not applicable to non-Visa transactions.

For example, the additional limits on liability (sometimes referred to as Visa’s zero-liability program) and the streamlined error resolution procedures offered on Visa debit card transactions are not applicable to transactions processed on a PIN-Debit Network.

*Visa Rules generally define PIN-Debit Network as a non-Visa debit network that typically authenticates transactions by use of a personal identification number (PIN) but that is not generally known for having a card program.

Visa Account Updater Notice of Right to Opt Out. Your Visa®-branded Debit Card will be automatically enrolled in the free Visa® Account Updater (VAU) service. VAU helps participating merchants who receive recurring payments from your card have access to current card account information on file. For instance, participating merchants will have access to information about card expiration, or if you report that your card has been lost or stolen. You are entitled to opt out of this service. You may opt out at any time. If you want to opt out, mail us notice of your intention to opt out at First National Bank of Moose Lake, P.O. Box 429, Moose Lake, MN 55767. You must include your name, address, last four digits of your card number, and signature. If you opt out, you may opt back in if you decide you want the Visa Account Updater service in the future. You may opt in the same way(s) that you can opt out.

First Net Banking Transfers – types of transfers and dollar limitations – You may access your account(s) by computer through the browser on your cell or mobile phone at www.firstmooselake.com and using your personal identification number, user identification, and multifactor authentication, to:

transfer funds from checking to checking*

transfer funds from checking to savings*

transfer funds from savings to checking*

transfer funds from savings to savings*

transfer funds from line of credit to checking*

transfer funds from line of credit to savings*

make payments from checking to loan account(s) with us*

make payments from checking to third parties (only if an Online bill payment subscriber)

you may transfer no more than $9,999.99 per payee per day

make payments from savings to loan account(s) with us*

get information about:

the account balance of checking account(s)

the last 12 months deposits to checking accounts

the last 12 months withdrawals from checking accounts

the account balance of savings account(s)

the last 12 months deposits to savings accounts

the last 12 months withdrawals from savings accounts

the account balance of Certificate of Deposit account(s)

*Limited to funds available in account.

Moose Mobile Transfers – types of transfers and dollar limitations – You may access your account(s) by downloading our mobile banking app and using your personal identification number, user identification, and multifactor authentication, to:

• transfer funds from checking to checking

– you may transfer no more than $9,000.00 per transfer

• transfer funds from checking to savings

– you may transfer no more than $9,000.00 per transfer

• transfer funds from savings to checking

– you may transfer no more than $9,000.00 per transfer

• transfer funds from savings to savings

– you may transfer no more than $9,000.00 per transfer

• transfer funds from line of credit to checking

– you may transfer no more than $9,000.00 per transfer

• transfer funds from line of credit to savings

– you may transfer no more than $9,000.00 per transfer

• make payments from checking to loan account(s) with us

– you may transfer no more than $9,000.00 per transfer

• make payments from checking to third parties

– you may transfer no more than $9,999.99 per pay per day

• make payments from savings to loan account(s) with us

– you may transfer no more than $9,000.00 per transfer

• get information about:

– the account balance of checking account(s)*

– the account balance of savings account(s)*

*History goes back 99 days.

You may be charged access fees by your cell phone provider based on your individual plan. Web access is needed to use this service. Check with your cell phone provider for details on specific fees and charges.

Termination –

You may terminate the electronic fund transfer agreement by written notice to us.

We may terminate the electronic fund transfer agreement by written notice to you.

If you want to close your card and keep your account open, call us at 218-485-4441 or 218-485-0565 or toll free at 866-333-4441 or visit any location.

FEES

We do not charge for direct deposits to any type of account.

We do not charge for preauthorized payments from any type of account.

We will charge you a fee for preauthorized ACH payments we set up, please see separate fee schedule.

We will charge you a fee to replace, reinstate or receive a temporary debit card. See separate fee schedule.

Except as indicated elsewhere, we do not charge for these electronic fund transfers.

ATM Operator/Network Fees. When you use an ATM not owned by us, you may be charged a fee by the ATM operator or any network used (and you may be charged a fee for a balance inquiry even if you do not complete a fund transfer).

DOCUMENTATION

• Terminal withdrawals. You can get a receipt at the time you make a withdrawal to or from your account using an automated teller machine or point-of-sale terminal. However, you may not get a receipt if the amount of the withdrawal is $15 or less.

• Preauthorized credits. If you have arranged to have direct deposits made to your account at least once every 60 days from the same person or company, you can call us at (218) 485-4441 or Toll free 866-333-4441 to find out whether or not the deposit has been made.

• Periodic statements. You will get a monthly account statement from us for your checking and savings accounts. You will get a monthly account statement from us for your savings accounts, unless there are no transfers in a particular month. In any case, you will get a statement at least quarterly.

PREAUTHORIZED PAYMENTS

• Right to stop payment and procedure for doing so. If you have told us in advance to make regular payments out of your account, you can stop any of these payments. Here is how:

Call or write us at the telephone number or address listed in this disclosure in time for us to receive your request 3 business days or more before the payment is scheduled to be made. If you call, we may also require you to put your request in writing and get it to us within 14 days after you call. Please refer to our separate fee schedule for the amount we will charge you for each stop-payment order you give.

• Notice of varying amounts. If these regular payments may vary in amount, the person you are going to pay will tell you, 10 days before each payment, when it will be made and how much it will be. (You may choose instead to get this notice only when the payment would differ by more than a certain amount from the previous payment, or when the amount would fall outside certain limits that you set.)

• Liability for failure to stop payment of preauthorized transfer. If you order us to stop one of these payments 3 business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages.

FINANCIAL INSTITUTION’S LIABILITY

Liability for failure to make transfers. If we do not complete a transfer to or from your account on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages. However, there are some exceptions. We will not be liable, for instance:

(1) If, through no fault of ours, you do not have enough money in your account to make the transfer.

(2) If you have an overdraft line and the transfer would go over the credit limit.

(3) If the automated teller machine where you are making the withdrawal does not have enough cash.

(4) If the terminal or system was not working properly and you knew about the breakdown when you started the transfer.

(5) If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken.

(6) There may be other exceptions stated in our agreement with you.

CONFIDENTIALITY

We will disclose information to third parties about your account or the transfers you make:

  1. where it is necessary for completing transfers; or
  2. in order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant; or
  3. in order to comply with government agency or court orders; or
  4. as explained in the separate Privacy Disclosure.

UNAUTHORIZED TRANSFERS

(a) Consumer liability.

• Generally. Tell us at once if you believe your card and/or PIN has been lost or stolen, or if you believe that an electronic fund transfer has been made without your permission using information from your check. Telephoning is the best way of keeping your possible losses down. You could lose all of the money in your account (plus your maximum overdraft line of credit). We will be liable for all unauthorized transfers unless the unauthorized transfer was due to the loss or theft of your card and/or PIN. If due to the loss or theft of your card and/or PIN, and you notify us within 60 days of when the unauthorized transfer appears on the statement you can lose no more than $50 if someone used your card and/or PIN without permission. If you do NOT notify us within 60 days after the unauthorized transfer appears on your statement, and we prove that we could have stopped someone from using your card and/or PIN without your permission if you had told us within 2 days of when you discover the loss or theft of your card and/or PIN, you could lose as much as $500 for unauthorized transfers that appear on the statement. Also, if your statement shows transfers that you did not make, including those made by card and/or PIN or other means, tell us at once. If you do not tell us within 60 days after the statement was mailed to you, you may not get back any money you lost after the 60 days if we 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 a hospital stay) kept you from telling us, we will extend the time periods.

• Additional Limit on Liability for Visa®-branded Debit Card. Unless you have been negligent or have engaged in fraud, you will not be liable for any unauthorized transactions using your lost or stolen Visa®-branded Debit Card. This additional limit on liability does not apply to ATM transactions outside of the U.S., to ATM transactions not sent over Visa or Plus networks, or to transactions using your Personal Identification Number which are not processed by VISA®. Visa is a registered trademark of Visa International Service Association.

(b) Contact in event of unauthorized transfer. If you believe your card and/or PIN has been lost or stolen, call or write us at the telephone number or address listed in this disclosure. You should also call the number or write to the address listed in this disclosure if you believe a transfer has been made using the information from your check without your permission.

RIGHT TO BRING CIVIL ACTION

You may bring a civil action against any person violating any provision of Minnesota Statutes § 47.69 (governing consumer privacy and unauthorized withdrawals). If you prevail in such an action, you may recover the greater of your actual damages or $500. You may also be entitled to recover punitive damages, your court costs and reasonable attorney’s fees.

TIME NEEDED TO COMPLETE TERMINAL TRANSACTIONS

Withdrawals made at a terminal will normally be completed and charged to your account immediately.

POINT-OF-SALE TRANSACTIONS

Payment for goods or services made in this manner shall not affect any of the rights, protections, or liabilities in existing law concerning a cash or credit sale made by means other than through the use of a terminal. You cannot reverse a point-of-sale transaction.

ERROR RESOLUTION NOTICE

In Case of Errors or Questions About Your Electronic Transfers, Call or Write us at the telephone number or address listed in this disclosure, as soon as you can, if you think your statement or receipt is wrong or if you need more information about a transfer listed on the statement or receipt. We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared.

(1) Tell us your name and account number (if any).

(2) Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information.

(3) 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 (5 business days for Visa®-branded Debit Card point-of-sale transactions processed by Visa and 20 business days if the transfer involved a new account) after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days (90 days if the transfer involved a new account, a point-of-sale transaction, or a foreign-initiated transfer) to investigate your complaint or question. If we decide to do this, we will credit your account within 10 business days (5 business days for Visa®-branded Debit Card point-of-sale transactions processed by Visa and 20 business days if the transfer involved a new account) for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account. Your account is considered a new account for the first 30 days after the first deposit is made, unless each of you already has an established account with us before this account is opened. We will tell you the results within three business days after completing our investigation. If we decide that there was no error, we will send you a written explanation. You may ask for copies of the documents that we used in our investigation.

FIRST NATIONAL BANK OF MOOSE LAKE, 400 ELM AVE., P.O. BOX 429, MOOSE LAKE, MN 55767

Business Days: Monday through Friday, Excluding Federal Holidays,

Phone: 218-485-4441 OR Toll Free 866-333-4441

MORE DETAILED INFORMATION IS AVAILABLE ON REQUEST