Disclosures

Personal Online Banking Agreement and Disclosure

This Agreement describes your rights and obligations as a user of the CNBconnect Online Banking service or the Bill Payment services ("Services"). It also describes the rights and obligations of Community National Bank ("Bank"). Please read this Agreement carefully. By requesting and using one of these Services, you agree to comply with the terms and conditions of this Agreement.

Definitions The following definitions apply in this Agreement. "CNBconnect Online Banking" is the internet-based service providing access to your Community National Bank account(s); "Online Account" means the Bank account from which you will be conducting transactions using a Service; and "Password" is the customer-generated code selected by you for use during the initial sign-on, or the codes you select after the initial sign-on, that establishes your connection to the Service. "Time of day" references are to Eastern Standard Time or Eastern Daylight Time, as applicable. "We", "us", or "Bank" refer to Community State Bank, which offers the Services and which holds the accounts accessed by the Services.

1. Access to Services The Bank will provide instructions on how to use the CNBconnect Online Banking service or Bill Payment service. You will gain access to your Online Accounts through the use of your Internet-enabled device, your Internet Service Provider, your Password and your User ID.

2. Use of your Security Password You agree not to allow anyone to gain access to the Services or to let anyone know your Password used with the Services. In order to protect yourself against fraud, you need to adhere to the following guidelines:

A. Do not give out your account information, Password, or User ID; and
B. Do not leave your PC unattended while you are in the Bank's Online Banking Site; and
C. Never leave your account information within range of others; and
D. Do not send privileged account information (account number, Password, etc.) in any public or general e-mail system.

3. Banking Transactions with CNBconnect Online Banking

A. Account Access: You may access up to eight Bank personal accounts online. One of these accounts must be a primary checking account. Primary checking accounts are defined as: Free Checking, Interest Checking, and Power Checking. Once you have selected your primary account you may select your additional accounts including other checking, savings, certificates of deposit or loan accounts. When you access your account, you may obtain an account balance and summary information, available funds information, cleared transactions, ATM and CheckCard transactions, and PhoneAccess transactions for the current statement period.

B. In addition to viewing account information, you may use Online Banking to conduct the transfer of funds. You may make one-time transfers, schedule future or recurring transfers such as transfers to make loan payments. You may transfer funds among your checking accounts, savings accounts and money market accounts. NOTE: Because regulations require the Bank to limit preauthorized transfers (including Online Banking transfers), the following limitations apply:

o Statement and Market Rate Savings account. You can make no more than six transfers per statement period by preauthorized or automatic transfer or by telephone or Online Banking.

o Market Rate Checking and the Indexed Money Fund account. You can make no more than six transfers per statement period by preauthorized or automatic transfer or by telephone or Online Banking.  Please note: If there are not sufficient funds in the account, we can not complete this transfer. However, future recurring transfers will not be impacted.

C. New services may be introduced for CNBconnect Online Banking from time to time. The Bank will notify you of the existence of these new services. By using these services when they become available, you agree to be bound by the rules that will be made available to you concerning these services.

4. Bill Payment Service (CNBconnect CONSUMER Bill Pay) The Bill Payment Service permits you to use your Internet-enabled device to direct payments from your designated online Bill Payment Account to third parties you wish to pay. Your Bill Payment Account must be a primary checking account (refer to Section 3.A). Through the Bill Payment Service, you can pay bills from your Bill Payment Account to businesses or individuals. All payments you make will be deducted from the checking account that you designate as your Bill Payment Account for the Bill Payment Service. Any payments you wish to make through this Service must be payable in U.S. dollars to a payee located in the continental United States. We reserve the right to restrict types of payees to whom payments may be made using the Service from time to time. You should not use the Bill Payment Service to make payments to settle securities purchases, payments to interest bearing accounts, tax payments, or court ordered payments. Payments for these payees will be your sole responsibility if delayed or improperly processed or credited. Funds must be available in your Bill Payment Account on the scheduled payment date. If the date you schedule a payment to be initiated falls on a non-business day (Saturday, Sunday, or holiday), funds must be available in your Bill Payment Account the following business day (e.g. Monday). After funds are withdrawn from your Bill Payment Account to make a payment, we may make the payment either by transferring funds electronically to the payee or by mailing the payee a check. You may choose to schedule payments to recur in the same amount at regular weekly, monthly, or semi-monthly intervals. When you create a new payee in the Bill Payment Service, it takes two business days to set up the payee to receive payments. You should schedule a payment to a new payee at least ten business days before any payment due date, to allow us time to set up the payee and verify information about your account with the payee. For all subsequent payments, you agree to allow at least four to ten business days between the date you schedule a payment to be initiated and the payment due date (that is, the due date shown on your invoice or provided in your agreement with the payee, not taking into account any applicable grace period). If the payment is an Automatic Clearing House (ACH) electronic payment, it will take up to four business days to reach the payee. However, if the company or person that you are paying cannot accept an electronic payment, the Bill Payment Service will send a check that may take up to twelve business days. If you do not follow these time frames, you will be fully responsible for all late fees, finance charges or other actions taken by the payee. If you schedule your payment and follow all instructions provided, but the payment is not received by the payee in a timely manner, the Bank will work with the payee on your behalf to attempt to have any late fees or charges reversed. The Bank is only responsible for exercising ordinary care in processing and sending payments upon your authorization in accordance with this Agreement. The Bank will not be liable in any way for damages you incur if:

A. you do not have sufficient funds in your Bill Payment Account to make the payment on the processing date; or
B. there are delays in mail delivery; or
C. there are changes to the payee's address or account number unless you have advised us of the change sufficiently in advance; or
D. there is the failure of any payee to correctly account for or credit the payment in a timely manner; or
E. there is any other circumstances beyond the control of the Bank.

If the session during which you schedule a payment or transfer ends by 2:00 p.m., the Bank will be considered to have received it on that day. Otherwise, it will be considered received on the following business day. For all entries made using the Service, the time recorded by the CNBconnect Online Banking Service will be considered the official time of the transaction.

If your Bill Payment Account does not have sufficient funds to make a payment as of the date the payment is debited to your account, the Bill Payment Service will automatically block future Bill Payment Services until the account has sufficient funds to make the payment. The Bank will attempt to notify you by mail or U.S. Postal Mail, but the Bank shall have no obligation or liability if it does not complete a payment because there are insufficient funds in your account to process a payment. In all cases, you are responsible for either contacting the Service at the toll-free number listed on the bill pay site to either make alternate arrangements for the payment or reschedule the payment through the Service. In the case of fixed payments, only the payment currently scheduled will be impacted. Fixed payments scheduled for future dates will not be affected. The way to cancel or change a payment is to use the Service. Payments must be changed or canceled using the Service prior to 11:00 a.m. on the business day the transaction is scheduled to be initiated. If you ask us to cancel a payment after it is issued and we agree to do so, we may charge you a stop payment fee. Stop payment orders whether oral, written, or electronic, will be in effect for a period of six months. If requested by the Bank, you will confirm any stop payment order in writing. After six months, any stop payment will terminate and must be renewed in order to continue in effect. The Bank may pay any item that is presented following the lapse of any stop payment order.

5. Electronic Mail (E-Mail) If you send the Bank an e-mail message, the Bank will be deemed to have received it on the following business day. The Bank will have a reasonable time to act on your e-mail. You should not rely on e-mail if you need to communicate with the Bank immediately-for example, if you need to report an unauthorized transaction from one of your accounts or if you need to stop a payment that is scheduled to occur. E-mail transmissions outside of the mail you create within the Online Banking site are not secure. Thus, we request that you do not send us or ask for sensitive information such as account numbers, Password, account information, etc. via any general or public E-mail system. If you wish to contact us, please email us at onlinebanking@cnbny.com. Use this email to contact the Bank regarding inquires about an electronic funds transfer error resolution, reporting unauthorized transactions, or contacting the Bank regarding other concerns of a confidential nature.

6. Fee Schedule The Bank offers the benefits and convenience of the Online Banking Service and the Bill Payment Service to you with the fees waived at the present time. The bank reserves the right to alter this fee arrangement at any time by providing you with 30 days notice in writing of any change in the fee arrangement. The fee will be deducted automatically from your Bill Payment primary checking account.

7. Statements You will continue to receive your regular account statement either monthly or quarterly, depending on the type of account.

8. If your statement shows transfers that you did not make If your statement(s) shows transfers that you did not make, notify the Bank immediately by calling (516) 498-9111, 9:00 a.m. to 4:00 p.m. (Eastern Time), Monday through Friday or writing the Bank at: Attn: CNBconnect Banking Services Department, 200 Middle Neck Road, Great Neck, New York 11021. If you do not notify the Bank within 60 days after the statement was mailed to you, you may not recover any money lost after the 60 days which would not have been lost if the Bank had been notified in time. If a good reason (such as a long trip or hospital stay) delayed you from contacting the Bank, the Bank may, at its option, extend the time periods.

9. Hours of Operation The Services are available 24 hours a day, seven days a week, except during special maintenance periods. For purposes of transactions, the Bank's business days are Monday through Friday, excluding holidays and weekends. All CNBconnect Online Banking transaction requests received after 2:00 p.m. on business days and all transactions which are requested on Saturdays, Sundays, or holidays on which the Bank chooses to remain closed, will be processed on the Bank's next business day. The Bank's business day begins at 9:00 a.m.

10. If your Password has been lost or stolen If your Password has been lost or stolen, call the Bank immediately at 516-498-9111 between the hours of 9:00 a.m. to 5:00 p.m. (Eastern Time), Monday through Friday. Telephoning the Bank is the best way of minimizing your losses. If you believe your Password has been lost or stolen and you tell us within two business days after you learn of the loss or theft, you can lose no more than $50 if someone uses your Password without your permission. If you do NOT tell us within two business days after you learn of the loss or theft of your Password, and we prove we could have stopped someone from using your Password without your permission if you had told us, you could lose as much as $500. If you believe your Password has been lost or stolen, please use the Password change feature within the CNBconnect Online Banking section of the Web site to change your Password.

11. Your Responsibility In case of errors or questions regarding a CNBconnect Online Banking or Bill Payment transaction, call (516) 498-3888 or write us at: Attn: Electronic Banking Services Department, 200 Middle Neck Road, Great Neck, New York 11021. We must hear from you at the telephone number or address, listed above, no later than 60 days after we sent you the FIRST statement on which the problem or error appeared. We will need:

A. Your name and account number; and
B. A description of the error or the transfer in question and an explanation concerning why you believe it is an error or need more information; and
C. The dollar amount of the suspected error and date on which it occurred.

If the report is made orally, we will require that you send the complaint or question in writing within 20 business days. We will notify you with the results of the investigation within 10 business days and will correct any error promptly. If more time is needed, however, we may take up to 45 days to investigate a complaint or question. If this occurs, we will credit your account within 10 business days for the amount you think is in error. This will allow you to use the money during the time it takes us to complete our investigation. If your complaint or question is not received in writing within 10 business days, we may not credit your account until the investigation is completed. If an alleged error involves an electronic fund transfer outside a state or territory or possession of the United States, the applicable time periods for action by us are 20 business days (instead of 10) and 90 calendar days (instead of 45). If we determine that no error occurred, we will send you a written explanation within three business days after the investigation is complete. You may request copies of the documents that were used in the investigation.

12. Our Responsibility If we do not properly 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 the amount of any losses or damages incurred by you and resulting directly from such failure. We will not be liable in the following instances:

A. If through no fault of the Bank, you do not have enough money in your account to make the transfer.
B. If circumstances beyond our control (such as fire, flood, power outage, equipment or technical failure or breakdown) prevents the transfer despite reasonable precautions that we have taken.
C. If there is a hold on your account, or if access to your account is blocked, in accordance with banking policy.
D. If your funds are subject to legal process or other encumbrance restricting the transfer.
E. If your transfer authorization terminates by operation of law.
F. If you believe someone has accessed your accounts without your permission and you fail to notify the Bank immediately.
G. If you have not properly followed the instructions on how to make a transfer included in this Agreement.
H. If we have received incomplete or inaccurate information from you or a third party involving the account or transfer.
I. If we have a reasonable basis for believing that unauthorized use of your Password or account has occurred or may be occurring or if you default under this Agreement, the deposit account agreement, a credit agreement or any other agreement with us, or if we or you terminate this Agreement.

There may be other exceptions stated in this agreement and in other agreements with you. In no event shall we be liable for damages in excess of your actual loss due to our failure to complete a transfer, and we will not be liable for any incidental or consequential damages. If any of the circumstances listed in subparagraph b. or h. above shall occur, we shall assist you with reasonable efforts in taking appropriate corrective action to reprocess the transactions that may not have been completed or to correct incorrect transactions that have been processed.

13. No Signature Required When any payment or other on-line Service generates items to be charged to your account, you agree that we may debit your Bill Payment account without requiring your signature on the item, and without prior notice to you.

14. Virus Protection The Bank is not responsible for any electronic virus or viruses that you may encounter. We suggest that you routinely scan your PC using a virus protection product. An undetected virus may corrupt and destroy your programs, files, and your hardware.

15. Other Agreements In addition to this Agreement, you and the Bank agree to be bound by and comply with the requirements of the agreements applicable to each of your Online Accounts. Your use of the Online Banking Service or the Bill Payment Service is your acknowledgment that you have received these agreements and intend to be bound by them. You should review other disclosures received by you when you open your accounts at the Bank including the charges that may be imposed for electronic funds transfers or the right to make transfers listed in the fee schedules accompanying those disclosures and the fee schedule in Section 6 of this Agreement. We will automatically deduct the fees related to this Service from your Bill Payment Account each month.

16. Modification of this Agreement The Bank may modify the terms and conditions applicable to either Service from time to time upon mailing or delivering a notice of the modifications to you at the address shown on our account records and the revised terms and conditions shall be effective at the earliest date allowed by applicable law. We may send any notice to you via e-mail and you will have to be deemed to have received it three days after it is sent. We reserve the right to terminate this Agreement and your use of the Services in whole or in part at any time without prior notice.

17. Disclosure of Information to Third Parties We will disclose information to third parties about your account or transfers you make:

A. where it is necessary for completing transfers;
B. in order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant;
C. in order to comply with government or court orders, or other reporting requirements;
D. if you give us your written permission; and
E. to the Bank affiliated companies.

18. Inactivity; Termination You are responsible for complying with all the terms of this Agreement and with the terms and conditions agreement and all other disclosures governing the deposit accounts which you access using electronic banking services. We can terminate your electronic banking privileges (including the Bill Payment Service) under this Agreement without notice to you if:

A. you do not pay any fee required by this Agreement when due; or
B. you do not comply with the agreement governing your deposit or loan accounts or your accounts are not maintained in good standing.

We will promptly notify you if we terminate this Agreement or your use of the Services for any other reason. If you are not paying a monthly service charge for the Service, we may convert your account to inactive status if you do not sign on to the Service or have any transaction scheduled through the Service during any consecutive 90 day period. If your account is considered inactive, you must contact us to have the Service activated before you will be able to schedule any transaction through the Service. To cancel the CNBconnect Online Banking and/or Bill Payment Service, you must notify the Bank and provide your name; address; whether you are discontinuing CNBconnect Online Banking, Bill Payment or both; and the effective date to stop the Service. When Bill Payment is terminated, any prescheduled bill payments made through CNBconnect Online Banking will also be terminated. Your final charge for the Bill Payment service will be assessed at the end of your statement cycle. You may notify the Bank by one of the following methods:

A. By sending an e-mail to bank email address;
B. By calling (516)498-9111;
C. By writing a letter and either sending it to the following address: 200 Middle Neck Road, Great Neck, New York 11021 Attention: CNBconnect Customer Service or giving it to a Customer Service Representative at any of the Bank's locations.

19. Governing Law This Agreement is governed by the laws of the State of New York and applicable federal law.