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Online Bill Pay Agreement

Terms & Conditions

This Agreement is an addendum to the American State Bank online banking services agreement that sets out additional rules, restrictions, and guidelines related to Bill Payment Services. Your use of the Bill Payment Services is an acceptance of this Agreement and makes it a part of your overall online services agreement with American State Bank.

As used in this Agreement, "you" or "your" refers to each person(s) subscribing to, using or accessing the Bill Payment Services (the "services"); "we," "it," "us," "our," or "Bank" refers to American State Bank and any agent, independent contractor, designee, or assignee that American State Bank may, in its sole discretion, involve in the provision of these Bill Payment Services.

Bill Payments

Account Designation and Payees. All Bill Payments you make through these online services will be transacted through various service providers. All Bill Payments will be deducted from your account designated as your Bill Payment account. Any payee you wish to pay through these online services must be payable in U.S. Dollars and located in the United States. Each payee must appear on the payee list in your database or you will need to create a new payee. You may not use these online services to make payments to a federal, state or local governmental or tax unit, or to other categories of payee that Bank may establish from time to time. Bank reserves the right to refuse to pay any person or entity to whom you may direct a payment. Bank is obligated to notify you promptly if it decides to refuse to pay a person or entity designated by you. This notification is not required if you attempt to make a payment to a category of payee which is prohibited under this Agreement.

Processing. The Scheduled Initiation Date is the date you select for the transaction to occur. Bill Payments are processed twice each business day at 2:00 A.M. and 12 Noon (Central Standard Time). Funds will be taken out of your primary checking account on or several days after the Scheduled Initiation Date entered by you. In many cases, your Bill Payments are electronically delivered to the payee within five business days of the Scheduled Initiation Date. However, some payees are not set up to accept electronic payment. In these cases, a check will be sent, which may take up to ten business days to process and deliver to the payee.

Therefore, you must allow sufficient time (up to 5 business days for electronic payment or 10 business days for payment by check) for your request to be received and processed in order for funds to be delivered to the payee before the payment due date. These bill payments are processed by outside service providers and the Bank is not responsible for making payments upon your authorization or for mailing or sending a payment to the designated payee. The Bank is not liable in any way for damages you incur if you do not have sufficient funds in your account to make the payment on the Scheduled Initiation Date or the payment processing date; if the estimate of time to allow for delivery to the payee is inaccurate; due to delays in mail delivery, changes of merchant address or account number, the failure of any merchant to account correctly for or credit the payment in a timely manner; for any lack of care by the outside service providers; or for any other circumstances which are beyond the control of the Bank. If the Bank causes an incorrect amount of funds to be removed from your transaction account or causes funds from your transaction account to be directed to a person or entity that does not comply with your payment instructions, the Bank shall be responsible for returning the improperly transferred funds to your transaction account.

THE FOREGOING SHALL CONSTITUTE THE BANK'S ENTIRE LIABILITY AND YOUR EXCLUSIVE REMEDY. IN NO EVENT SHALL THE BANK BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR EXEMPLARY DAMAGES, INCLUDING LOST PROFITS (EVEN IF ADVISED OF THE POSSIBILITY THEREOF) ARISING IN ANY WAY OUT OF THE INSTALLATION, USE, OR MAINTENANCE OF THE EQUIPMENT, SOFTWARE, AND/OR THE BILL PAYMENT SERVICES.

Exclusions on Warranties

THE SERVICE AND RELATED DOCUMENTATION ARE PROVIDED "AS IS" WITHOUT ANY WARRANTY OF ANY KIND, EITHER EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

Limitations on Services

Dollar Limitations. There is a dollar limit of $ 9,999.99 (or the available balance in my deposit account, whichever is less) on any Bill Payment without prior approval from the Bank.

Transfer Limitations. Except as provided herein, all Bill Payments to and from an account are subject to the terms and conditions applicable to such account as set forth in the account agreement governing such account.

Available Funds Required. All Bill Payments initiated through these online services are subject to there being sufficient funds available in the affected account to cover the Bill Payment on the Scheduled Initiation Date and the date that payment is presented to the Bank for payment.

Stopping or Modifying online banking Authorized Payments. Processing of a Bill Payment cannot be stopped after the first processing time on the Scheduled Initiation Date that occurs after you request the transaction. If the Bill Payment has already been processed, you may call American State Bank Customer Service at 903/859-2211 and request a stop payment. If the Bill Payment has not yet been received and cleared by the Bank, American State Bank Customer Service will place a stop hold on the Bill Payment for a specified fee. A copy of the canceled check can be requested for a fee.

Authorization To Charge Accounts. You authorize Bank to charge your designated account(s) for any transactions accomplished through the use of these online services, including the amount of any Bill Payment made though the use of these online services, and for any charges for the Service and/or Stop check payment requests. You authorize Bank to process Bill Payments according to the instructions that Bank receives if the instructions are received by Bank through these online services. You authorize Bank to initiate any reversing entry or reversing file, and to debit your accounts at the Bank, in order to correct any mistaken credit entry.

You understand that if a Bill Payment request describes the beneficiary inconsistently by name and account number, execution of the request may occur on the basis of the account number, even if it identifies a person different from the named beneficiary. Your obligation to pay the amount of the Bill Payment to the Bank is not excused in such circumstances.

Bank will have no liability for the execution or failure to execute a Bill Payment request which includes a discrepancy between the name of a person and an account number or which is to be made from an account with insufficient available funds. Bank will not be responsible for resubmitting any payment for you after funds become available in an account from which a Bill Payment was to be made.

CONTACT BANK AT ONCE if you believe your password has been lost, stolen, used without your authorization, or otherwise compromised, or if someone has transferred or may transfer money from your accounts without your permission. An immediate telephone call to us is the best way to reduce any possible losses. You could lose all the money in your accounts. If you contact us within 2 business days after you learn of the loss, theft, compromise, or unauthorized use of your password or account, you can lose no more than $50 if someone used your password or account without your permission. If you do NOT contact us within 2 business days after you learn of the loss, theft, compromise, or unauthorized use of your password or account, and we can prove we could have stopped someone from using your password to access your accounts without your permission if you had told us, you could lose as much as $500. Also, if your paper statement shows transactions that you did not authorize, contact us at once. If you do not tell us within 60 days after the paper statement was mailed to you, you may not get back any money you lost through transactions made after the 60 day time period if we can prove that we could have stopped someone from taking the money or recovered the money if you had told us in time.

Information Authorization. You agree that the Bank reserves the right to obtain financial information regarding your account from a merchant or financial institution in order to resolve payment posting problems. You also agree that we may disclose information to third parties about your account or the transactions you authorize if it is reasonably necessary for completing transfers.

Assignment. You may not assign this Agreement to any other party. The Bank may assign this Agreement to any future, directly or indirectly, affiliated company. The Bank may also assign or delegate certain of its rights and responsibilities under this Agreement to independent contractors or other third parties.

No Waiver. The Bank shall not be deemed to have waived any of its rights or remedies hereunder unless such waiver is in writing and signed by the Bank. No delay or omission on the part of the Bank in exercising any rights or remedies shall operate as a waiver of such rights or remedies or any other rights or remedies. A waiver on any one occasion shall not be construed as a bar or waiver of any rights or remedies on future occasions.

Captions. The captions of Sections hereof are for convenience only and shall not control or affect the meaning or construction of any of the provisions for this Agreement.

BY ACCESSING THESE SERVICES YOU ARE INDICATING YOUR AGREEMENT TO BE BOUND BY THE TERMS OF THIS AGREEMENT. IF YOU DO NOT WISH TO AGREE TO THE TERMS OF THIS AGREEMENT, YOU SHOULD IMMEDIATELY DISCONTINUE USING AND ACCESSING THESE SERVICES. BANK MAY MODIFY THIS AGREEMENT AT ANY TIME AND FROM TIME TO TIME IN BANK'S SOLE DISCRETION WITHOUT NOTICE TO YOU. YOU SHOULD PERIODICALLY REVIEW THIS AGREEMENT CAREFULLY IN ORDER TO MAKE SURE THAT YOU ARE AWARE OF THE MOST CURRENT TERMS AND CONDITIONS FOR THE USE OF THESE SERVICES. ANY USE OF THESE SERVICES BY YOU AFTER ANY CHANGE TO THIS AGREEMENT, WHETHER OR NOT YOU HAVE REVIEWED THE AMENDED AGREEMENT, CONSTITUTES YOUR ACCEPTANCE OF THE AGREEMENT AS CHANGED. Bank may discontinue the operation, maintenance or provision of these services and/or any related content, features, products or services, or the terms thereof, at any time without notice or liability to you or to any third party.

Termination or suspension of online service

Your Right to Terminate — You may cancel these Bill Payment Services at any time by providing us with written notice by postal mail or fax. Your access to these Bill Payment Services will be suspended within 3 business days of our receipt of your instructions to cancel the service. You will remain responsible for all outstanding fees, checks, and charges issued or incurred prior to the date of cancellation.

Bank's Right to Terminate or Suspend — You agree that Bank can terminate or limit your access to these Bill Payment Services for any of the following reasons: (1) without prior notice, if you have insufficient funds in any one of your bank accounts (these Bill Payment Services may be reinstated, at Bank's sole discretion, once sufficient funds are available to cover any fees, pending transfers, and debits); (2) upon 3 business day's notice, if you do not contact Bank to designate a new Primary Checking Account immediately after you close your Primary Checking Account; or (3) upon reasonable notice, for any other reason at Bank's sole discretion, including insufficient volume of transactions. Bank also reserves the right to temporarily suspend the Bill Payment Services in situations deemed appropriate by Bank, in Bank's sole and absolute discretion, including when Bank believes a breach of the system security has occurred or is being attempted. Bank may consider repeated incorrect attempts to enter your Access ID or Password as an indication of an attempted security breach.

In any such event, Bank may (but is not obligated to) immediately discontinue making previously authorized transfers, including recurring or scheduled payments that were previously authorized or issued but not yet processed. Termination or suspension of the online services does not affect your obligations under this Agreement with respect to occurrences before termination or for your cooperation after termination.