New FDIC Regulations

Notice of Changes in Temporary FDIC Insurance Coverage For Transaction Accounts.
All funds in a “noninterest-bearing transaction account” are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC’s general deposit insurance rules.
The term “noninterest-bearing transaction account” includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes Interest on Lawyers Trust Accounts (“IOLTAs”). It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts and money-market deposit accounts.
For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov.

First National Bank of Jacksboro Internet Banking Agreement Electronic Fund Transfer

Acceptance of Agreement
When you use any of the Internet Banking services described in this agreement, or authorize others to use them, you agree to the terms and conditions of the entire Agreement.

Relation to Other Agreements
Your use of Internet Banking services may also be affected by the agreements between us for your linked Highlands Bank of Dallas accounts. When you link an account to Internet Banking you do not change the agreements you already have with us for that account. For example when you use Internet Banking services to access an account you do so under the terms and conditions we gave you in the agreement and disclosure for that account.

Normal Business Hours Defined
Although the Internet Banking services described in this agreement are generally available 24 hours a day, 7 days a week, certain transactions and services described in this agreement or in the agreements you already have with us for your accounts must conform to the bank’s normal business days and hours which are as follows:

BUSINESS DAYS: Monday, Tuesday, Wednesday, Thursday and Friday (Holidays not included).

BUSINESS HOURS: Monday through Thursday, 9:00AM to 3:00PM Central Standard Time. Friday, 9:00AM to 5:00PM Central Standard Time.

Type of Transfers & Other Services
You may access your accounts by computer using your password and your social security number/account number and/or other identification and security measures that may from time to time be required by the bank to: transfer funds from checking to checking – transfer funds from checking to savings, money market – transfer funds from savings, money market to checking – transfer funds from savings, money market to savings, money market – make payments from checking to loan accounts with us – make payments from savings, money market to loan accounts with us – get information about checking, savings, money market account balances, deposits and withdrawals in the last statement cycle, account balances of certificates of deposit and loans, access deposit account statements for a limited number of previous statement cycles and other services which the bank may from time to time add to Internet Banking. The types of transfers and other services available through Internet Banking and its functionality may be changed by the bank at any time without prior written notice.

Limitations on Frequency of Transfers
During any calendar month or statement cycle, you may not make more than six transfers or withdrawals from a savings or money market account to another account of yours at the same bank, or to a third party, if made by preauthorized transfer, automatic transfer or by telephone, including fax, or with the bank's home or internet banking service, or to a third party if they are made by check, draft, debit card or similar order made by the depositor and payable to third parties.

Funds Availability
You must make transfers before 7:00PM during a normal business day for those funds to be posted on an account that day and to be available for Internet Banking and non-Internet Banking transactions. In addition all transfers initiated through Internet Banking require that sufficient funds be available in the affected account at the time that the transfer is initiated.

Periodic Statements
You will get a monthly account statement from us for your checking 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.

Your Rights and Liabilities
Security of your transactions is important to us. Use of the Internet Banking services will therefore require a PIN or password. If you lose or forget your PIN or password, please call 940-567-5591 during normal business hours. We will accept as authentic any instructions given to us through the use of your password or PIN. You agree to keep your PIN and password secret and to notify us immediately if your PIN or Password is lost or stolen or if you believe someone else has discovered your PIN or password. You agree that if you give your PIN or password to someone else, you are authorizing them to act on your behalf, and we may accept any instructions they give us to make transfers or otherwise use the Internet Banking services. You may change your password at any time by using TeleBank. We may be liable for certain security breaches to the extent required by applicable law and regulation. We do not assume any other liability or otherwise guarantee the security of information in transit to or from our facilities. Please note that we reserve the right to (1) monitor and/or record all communications and activity related to the Internet Banking services; and (2) require verification of all requested transfers in the manner we deem appropriate before making the transfer (which may include written verification by you).
You agree that our records will be final and conclusive as to all questions concerning whether or not your PIN or password was used in connection with a particular transaction.
If any unauthorized use of your PIN or password occurs you agree to (1) cooperate with us and appropriate law enforcement authorities in identifying and prosecuting the perpetrator; and (2) provide reasonable assistance requested by us in recovering any unauthorized transfer of funds.
Notify us immediately if you believe your PIN or password has been lost or stolen. Telephoning is the best way to keep your possible losses down. You could lose all of the money in your account (plus your maximum line of credit). If you tell us within two (2) business days you can lose no more than $50.00. If you do NOT tell us within two (2) business days after you learn of the loss or theft of your PIN or password, and we can prove we could have stopped someone from using your PIN or password without your permission if you had told us, you could lose as much as $500.00. Also, if your statement shows transfers that you did not make, tell us at once. If you do not tell us within sixty (60) days after the statement was mailed to you, you may not get back any funds you lost after the 60 days if we can prove that we could have prevented someone from taking the funds if you had told us in time. If you believe your PIN or password has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, call 940-567-5591 during normal business hours.

WE CANNOT ACCEPT NOTIFICATION OF LOST OR STOLEN PINS OR PASSWORDS OR UNAUTHORIZED TRANSFERS VIA E-MAIL

Error Resolution Notice
In case of errors or questions about your electronic transfers call us at 940-567-5591 or write us at:

The First National Bank of Jacksboro
Attention: Customer Service
P.O. Box Drawer E
Jacksboro, TX 76458

Notify us immediately if you think your statement or receipt is wrong or if you need more information about a transaction 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 first appeared.
(1) Tell us your name and account number.
(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 (20 business days for new accounts) 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 for new accounts or point-of-sale or foreign-initiated transfers) to investigate your complaint or question. If we decide to do this, we will credit your account within 10 business days (20 business days for new accounts) for the amount you think is in error, so that you will have 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 for 30 days after the first deposit is made.
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.

Confidentiality
We may disclose information to third parties about your account or the transactions you make: a) where it is necessary for completing transactions or resolving errors involving the Services; or b) in order to verify the existence and condition of your account for a third party, such as a credit bureau or a merchant; or c) in order to comply with government agency rules, court orders, or other applicable law; or d) to our employees, service providers, auditors, collection agents, affiliated companies, or attorneys in the course of their duties and to the extent allowed by law; or e) if you give us permission.

Limitation of Liability
Except as otherwise provided in this Agreement or by law, we are not responsible for any loss, injury, or damage, whether direct, indirect, special, or consequential, caused by the Internet Banking service or the use thereof or arising in any way out of the installation, operation, or maintenance of your PC equipment.

Waivers
No waiver of the terms of this Agreement will be effective, unless in writing and signed by the President/COO of this bank.

Termination of Access
We have the right to terminate your access to Internet Banking when it is not used for 90 or more consecutive days and will notify you before doing so.

Assignment
You may not transfer or assign your rights or duties under this Agreement.

Governing Law
The laws of the State of Texas shall govern this Agreement and all transactions hereunder. Customer acknowledges that he/she has reviewed this Customer Agreement, understands the terms and conditions set forth herein, and agrees to be bound hereby.

Indemnification
Customer, in consideration of being allowed access to the Internet Banking services, agrees to indemnify and hold the Bank harmless for any losses or damages to the Bank resulting from the use of the Internet Banking services, to the extent allowed by applicable law.