This KALSEE Online Banking Agreement and Disclosure ("Agreement") is the contract which covers your and our rights and responsibilities concerning all KALSEE ONLINE BANKING services offered to you by KALSEE Credit Union. KALSEE ONLINE BANKING service permits you to electronically initiate account transactions involving your accounts and to communicate with KALSEE Credit Union. In this Agreement, the words "you", "your" and "yours" mean those who request and use KALSEE ONLINE BANKING, any joint owners of accounts accessed under this Agreement or any authorized users of this service. The words "we", "us" and "our" mean KALSEE Credit Union. The word "account" means any one or more accounts you have with KALSEE Credit Union. By requesting and using KALSEE ONLINE BANKING service, you, agree to the terms and conditions in this Agreement, and any amendments.

Account Access.

Signup for KALSEE Online Banking is an auto-signup procedure available at KALSEE Credit Union’s website, www.kalsee.com. You may use a personal computer or mobile device to access your accounts. KALSEE Credit Union's Online banking service is accessible seven (7) days a week, twenty-four (24) hours a day. No special software is needed in order to use KALSEE ONLINE BANKING. All you need is access to the Internet . You are responsible for the operation of any software and your computer. This includes "export" software compatible with KALSEE ONLINE BANKING, such as Microsoft Money and Quicken. (Note: Some Newer versions of Quicken may not be compatible with KALSEE ONLINE BANKING.) KALSEE Credit Union will not be responsible for any errors or failures involving any telephone or wireless service, Internet service, software installation on your computer or mobile device.

Types of Transactions

At the present time, you may use KALSEE ONLINE BANKING service to: Transfer funds between your checking, savings and loan accounts, transfer funds between account numbers (Cross-account transfers may require a signed form), Review account balance, transaction history and tax information for any of your checking, savings or loan accounts download your basic account information to financial management software programs like Quicken or Microsoft Money, IF they are compatible versions, Obtain pdf eStatements. Obtain front/back scans of certain KALSEE paper check images, conduct other transactions or services as they are made available and are permitted by KALSEE Credit Union.

The following limitations on KALSEE ONLINE BANKING transactions may apply in using the services listed above:

a. Transfers.

You may make funds transfers to other accounts (ex. checking, savings etc.) of yours as often as you like. You may transfer or withdraw up to the available balance in your account or up to the available credit limit on a line of credit at the time of the transfer, except as limited under this Agreement or your deposit or loan agreements. KALSEE Credit Union reserves the right to refuse any transaction that would draw upon insufficient or unavailable funds, lower an account below a required balance, or otherwise require us to increase our required reserve on the account.

b. Account Information.

The account balance and transaction history information may be limited to recent account information involving your accounts. Also, the availability of funds for transfer or withdrawal may be limited due to the processing time for ATM transactions and our Funds Availability Policy.

c. E-Mail.

KALSEE ONLINE BANKING now features Secure E-Mail. This feature enables you to contact us regarding your questions or comments within a completely safe and secure environment.

Please remember that KALSEE Credit Union welcomes your standard e-mail. However, it is important to point out that standard e-mail IS NOT a reliable or secure means of communications with us. For any number of reasons, it is possible that we will not receive your message. This is often due to anti-spam filtering programs which are capable of preventing e-mail from being properly sent or received. PLEASE KEEP THIS IN MIND IF YOU NEED TO PROVIDE US WITH IMPORTANT INFORMATION REGARDING YOUR ACCOUNT. For security purposes, no transactions or address changes are allowed by e-mail request. At such time you need to immediately contact KALSEE Credit Union regarding an unauthorized transaction or stop payment request, you may call us during regular business hours at: (269) 382-7800. We also have a toll free number: 1-877-KALSEE1.

SECURITY OF ACCOUNT NUMBER AND PASSWORD

Your account number and password are used for security purposes. They are strictly confidential and should not be disclosed to third parties or recorded. You are completely responsible for the safekeeping of your login information. You should not disclose or otherwise make your login information available to anyone not authorized to sign on your accounts. If you authorize anyone to use your account login information, that authority shall continue until you specifically revoke such authority by notifying KALSEE Credit Union or change your login information within KALSEE’s Online Banking program. If you fail to maintain the security of your KALSEE ONLINE BANKING login information and KALSEE Credit Union suffers a loss, we may terminate your KALSEE ONLINE BANKING and/or account services immediately.

LIABILITY FOR UNAUTHORIZED ACCESS

You are responsible for all transfers you authorize under this Agreement. If you permit other persons to use your KALSEE ONLINE BANKING service or login information, you are responsible for any transactions they authorize or conduct on any of your accounts. However, tell us at once if you believe anyone has used your login information or accessed your accounts through KALSEE ONLINE BANKING without your authorization. If you tell us within two (2) business days, you can lose not more than fifty dollars ($50.00) if someone accesses your accounts without your permission. If you do not tell us within two (2) business days after you learn of the unauthorized use of your account or access code(s), and we can prove that we could have stopped someone from accessing your account without permission if you had told us, you could lose as much as five hundred dollars ($500.00).

Also, if your statement shows KALSEE ONLINE BANKING transfers that you did not make, tell us at once. It is a possibility that your account may have been compromised. If you do not tell us within sixty (60) days after the statement was mailed to you, you may not get back any money lost after the sixty days (60) if we can prove that we could have stopped someone from making the transfers if you had told us in time. If a good reason (such as a hospital stay) kept you from telling us, we will extend the time periods.

If you believe that someone has compromised or may compromise your account without your permission, call KALSEE Credit Union during regular business hours on Monday through Friday at: (269) 382-7800 or write us at: Internal Operations Department KALSEE Credit Union P.O. Box 3006 Kalamazoo, MI 49003

BUSINESS DAYS

Our business days are Monday through Friday. Holidays are not included. Please go to kalsee.com for a complete list of credit union office and branch office hours of operations.

FEES AND CHARGES

At this time there are no charges for KALSEE ONLINE BANKING services. From time to time, fees can change. We would provide adequate notification to you of any fees as required by law. If you request a transfer or check withdrawal from your line of credit account, such transactions may be subject to charges under the terms and condition of your loan agreement.

PERIODIC STATEMENTS

Your KALSEE on line transactions will be recorded on your periodic statement. You will receive your scheduled statement unless there is not a transaction in a particular month. In any case, you will receive a statement at least quarterly. All Statements for users of KALSEE ONLINE BANKING are PDF eStatements. Your eStatements are free and always obtainable for viewing or printing when you logon to KALSEE ONLINE BANKING.

DISCONTINUING KALSEE ONLINE BANKING

At such time you wish to discontinue KALSEE ONLINE BANKING Services, you must contact KALEE, verify who you are as the primary account holder and let us know you want to discontinue KALSEE ONLINE BANKING Services. Upon being notified by you, KALSEE will delete your online banking account and switch you back over to mailed statements.

ACCOUNT INFORMATION DISCLOSURE

We will disclose information to third parties about your account or the transfers you make: * as necessary to complete transfers. * To verify the existence of sufficient funds to cover specific transactions upon the request of a payee or a third party, such as a credit bureau or merchant; * To comply with government agency or court orders; * If you give us your written permission.

KALSEE CREDIT UNION'S LIABILITY FOR FAILURE TO MAKE TRANSFERS

If we do not complete a transfer from your account on time or in the correct amount according to our Agreement with you and the instructions you transmit, we will be liable for your actual losses or damages. However, KALSEE Credit Union will not be liable:

• If, through no fault of KALSEE, you do not have adequate funds in your account to complete a transaction, your account is closed, or the transaction amount would exceed your credit limit on your line of credit, if applicable.

• If you used the wrong login information or you have not properly followed any applicable computer, Internet Access, or KALSEE Credit Union User Instructions for making on line banking transfer transactions.

• If your computer fails or malfunctions or the KALSEE ONLINE BANKING service was not properly working and such problem should have been apparent when you attempted such transaction.

• If circumstances beyond our control (such as fire, flood, telecommunication outages, postal strikes, equipment or power failure) prevent making the transaction.

• If the funds in your account are subject to an administrative hold, legal process or other claim.

• If you have not given KALSEE Credit Union complete, correct and current instructions so we can process a transfer.

• If the error was caused by a system beyond KALSEE Credit Union's control, such as your Internet Service Provider.

• If there are other exceptions as established by KALSEE Credit Union from time to time.
  
  

TERMINATION OF KALSEE ONLINE BANKINGSERVICES You agree that we may terminate this Agreement and your use of the KALSEE ONLINE BANKING services if you or any authorized user of your account breaches this or any other agreement with us; or, if we have reason to believe that there has been an unauthorized use of your account or access code. You or any other party to your account can terminate this Agreement by notifying us in writing. Termination of service will be effective the first business day following receipt of your written notice. However, termination of this Agreement will not affect the rights and responsibilities of the parties under this Agreement for transactions initiated before termination.

NOTICES

KALSEE Credit Union reserves the right to change the terms and conditions upon which this service is offered. KALSEE Credit Union will mail notice to you at least twenty-one (21) days before the effective date of any change, as required by law. Use of the KALSEE ONLINE BANKING service is subject to existing regulations governing your accounts and any future changes to those regulations. BILLING ERRORS. In case of errors or questions about your KALSEE ONLINE BANKING transactions, telephone us at (269) 382-7800 or write to us at KALSEE Credit Union, P.O. Box 3006, Kalamazoo, Michigan 49003 as soon as you can. We must hear from you no later than sixty (60) days after we sent the first statement on which the problem appears.

• Tell us your name and account number.

• Describe the transaction you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information.

• Tell us the dollar amount of the suspected error.

If you tell us verbally, we may require that you send us your complaint or question in writing within ten (10) calendar days. We will determine whether an error occurred within ten (10) business days after we hear from you and we will correct any error promptly. If we need more time, however, we may take up to forty-five (45) days to investigate your complaint or question. If we decide to do this, we will credit your account within ten (10) business days for the amount you think is in error, so that you will have the use of the funds 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 ten (10) business days, we may not credit your account. We will tell you the results within three (3) 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.

If a notice of error involves an electronic fund transfer that occurred within thirty (30) days after the first deposit to the account was made, the applicable time periods for action shall be twenty (20) business days in place of ten (10) business days. If a notice of error involves an electronic fund transfer that was initiated in a foreign country or occurred within thirty (30) days after the first deposit to the account was made, the applicable time period for action shall be ninety (90) calendar days in place of forty-five (45) calendar days.

ENFORCEMENT

You agree to be liable to KALSEE Credit Union for any liability, loss, or expense as provided in this Agreement we incur as a result of any dispute involving your accounts or services. You authorize the KALSEE Credit Union to deduct any such liability, loss, or expense from your account without prior notice to you. In the event either party brings a legal action to enforce the Agreement or collect any overdrawn funds on accounts accessed under this Agreement, the prevailing party shall be entitled, subject to applicable law, to payment by the other party of its reasonable attorney's fees and costs, including fees on any appeal, bankruptcy proceedings, and any post-judgment collection actions, if applicable.

If you feel that we have violated the Michigan Electronic Funds Transfer Act you may notify: Financial Institution Bureau, Banking Division, Box 30224, Lansing, MI 48909 or, The National Credit Union Administration, Region IV (Chicago), 4225 Naperville Rd., Suite 125, Lisle, Illinois 60532-3658.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with all applicable federal laws and all applicable substantive laws of the State of Michigan where you opened your account, and the Bylaws of the Credit Union as they now exist or may be hereafter amended. You understand that we must comply with these laws, regulations, and rules. You agree that if there is any inconsistency between the terms of the Agreement and any applicable law, regulation, or rule may be modified by Agreement between us.