Terms & Conditions


Common Terms

The following Common Terms apply to Super Now Checking , Money Market Checking , Regular and Youth Savings Accounts: We use the daily method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day. The daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period. Interest will be compounded and credited every month to your account. If you close your account before interest is credited, you will not receive the accrued interest. You must maintain a minimum balance of $0.01 in the account each day to obtain the disclosed APY. Interest begins to accrue no later than the business day we receive credit for the deposit of non-cash items (i.e. checks).

Other Account Information & Terms

This ACCOUNT AGREEMENT (“Agreement”) is for each deposit account that is opened or maintained with Kendall State Bank.  Kendall State Bank is referred to as “we,” “us” or “the Bank.”  “You” refers to each person that owns a deposit account at the Bank and each of that person’s representatives or agents, and includes any individual person, joint owner, fiduciary, or business customer identified on a signature card or other bank records as holding a deposit account.  Please keep a copy of this agreement with your other important banking records, and refer to it if you have questions about your account.

This agreement is dated May 1, 2005, and replaces the prior account agreement between you and the Bank related to your account.  It applies to all transactions involving your deposit account that occur on or after that date. 

This Agreement requires you to review your account statements promptly, and to notify us in writing of any items shown on the statement that you believe are forged, altered, or otherwise unauthorized.  You must notify us of any such item within thirty (30) days of receipt of your account statement.  If you don’t, you may not recover from us amounts that you later claim were improperly deducted from your account. 

The following disclosures supplement the information in this agreement:

  • Deposit Accounts (describing the types of personal, fiduciary, business checking and savings accounts we offer in detail) {Truth in Savings}
  • Time Deposits (Certificates of Deposit)
  • Fee Schedule
  • Interest Rate Schedule (when applicable)
  • Electronic Funds Transfer Act Disclosures
  • Your Ability to Withdraw Funds
  • Kendall State Bank Privacy Statement for Individuals
  • ShazamÒ Chek/ATM Disclosure
  • Online Banking Disclosure

These disclosures are referred to as the “Supplemental Disclosures”.

Account Terms.  Account Terms and conditions apply to all deposit accounts (“accounts”) at the Bank.  “Deposit accounts” include all checking and other transaction accounts, savings accounts, and time deposit (certificate of deposit) accounts. When you open a deposit account with the Bank, or if you continue to maintain an account at the Bank after the effective date of this agreement, you agree that you are bound by the Agreement and by the Supplemental Disclosures that apply to your account, as they are amended from time to time.  You agree to pay the fees and charges for your account as set forth in the Supplemental Disclosures.  We may deduct the fees from your account.

Changes.  Changes in the Agreement and the Supplemental Disclosures may be made by the Bank at any time.  All such changes will automatically become a part of this Agreement on the new effective date.  We will notify you when we make changes to the Agreement or the Supplemental Disclosures that affect your rights or obligations as required by law.  The changes will become effective immediately upon our giving you notice at your address on our records or on the date specified in the notice.  Changes in interest rate applicable to accounts other than Time Deposits may be made as described in the Supplemental Disclosures, and we are not required to give you a notice of those changes.  The Bank may not change the interest rate on a Time Deposit before maturity, unless our Time Deposit disclosure and the supplemental information you receive when you open your account state otherwise.  Current interest rates applicable to our accounts are available in the Bank’s lobby or by calling a Banking Representative.

Special Services.  This Agreement does not set forth all the terms and conditions that apply to special services we offer.  For example, if you obtain wire transfer services, Online Banking, or Debit Card, the agreements related to those services also supplement this Agreement.

Applicable Law. This agreement is governed by the applicable laws and regulations of the United States and the State of Kansas, including but not limited to, the Uniform Commercial Code, and laws regulating transfers at death, and estate and other taxes.  All deposits to and withdrawals from any account are subject to such laws as well as the terms and provisions of this Agreement and any agreement executed in conjunction herewith.

Business Day. For the purposes of this Agreement and the Supplemental Disclosures, the Bank considers a business day as any Monday through Friday, except holidays observed by banks, even though some of our offices may be open on Saturday.  An item received after the Bank’s cutoff hour, or after the close of the banking day, is considered as received on the next business day for all purposes.  (More information about our cut-off hour is found under “Your Ability to Withdraw Funds” at Kendall State Bank.)

A.  OWNERSHIP OF ACCOUNTS.The classification of your account as personal, fiduciary or commercial, the form of ownership and the respective owner’s interest in an account are determined by the information that appears on the current signature card for the account.  If the signature card in unavailable or incomplete, information from the Bank’s other records may be relied on to determine the ownership of the account.

1.  Personal or Fiduciary Accounts.  A personal or fiduciary account may be held in the following ways:(1)individual; (2)joint account with right of survivorship;(3)trustee for the benefit of another person;(4)conservator or guardian for another person; (5) agent or other fiduciary, for another person; or (6) either (1) or (2) with a payable-on-death direction. 

A “fiduciary account” is an account in which a natural person is acting in the capacity of a trustee, conservator, guardian, executor, administrator, custodian, an agent, or in some other similar capacity.  For fiduciary accounts, to the maximum extent permitted by applicable law, each authorizes the other to draw items, make withdrawals or otherwise act on the account.  The agent or other fiduciary shall be solely responsible for acting in accordance with applicable law and the terms of any applicable court order, trust or other document establishing and covering the agent or fiduciary relationship.  The Bank is not responsible for ensuring compliance with such laws, court orders or documents.

2.  Individual Ownership Accounts.  An individual account is an account in which only one person has a present ownership interest.  However, another individual can sign on behalf of an account holder by providing the Bank with proper documentation in the form of a power of attorney granted by the account owner.  The Bank is authorized to credit to the account items payable to the owner without endorsement.

3.  Joint Accounts.  A joint account with right of survivorship is an account in the names of two or more individual persons and as to which each named person, acting alone, has an unconditional and unlimited right of withdrawal.  A joint account with right of survivorship means that all rights of any account owner who dies and who was named on the account automatically pass to the surviving person(s) named on the account.  Each person named on the account authorizes the Bank to credit to the account items payable to any joint account holder or to all account holders without endorsement.  Each person named on the account authorizes the other(s) to endorse his/her name on all items presented for deposit, if permitted by the Bank.  Each joint account owner can pledge the account for the personal debts of that account owner, and each can grant a power of attorney over the account, without the consent of or notice to other account holders.  We can use the funds in a joint account to satisfy a debt of one or more of the joint owners which is due.  Each person named on the account is liable for any overdrafts created on the account, as well as for all fees and charges and other liabilities related to the joint account. If, as an accommodation to you to facilitate the opening of a joint account when not all account owners are present, we permit you to open the account pending the receipt of necessary documents and signatures from all joint owners, you agree to indemnify and hold us harmless for any damages we may suffer if we do not receive any required signature.  We may close the account if we do not receive the required documents within a reasonable period of time.

4.  Minor Accounts.  Accounts may be established in the name of minors in accordance with applicable state law.  If Bank establishes a joint account in the name of a minor and one or more adults, each adult is fully responsible for all liabilities arising from the account.

5.  Payable-on-Death Directions.  A statutory procedure to transfer an owner’s interest in an account upon the owner’s death to his or her beneficiaries may be available.  This procedure is often referred to as a payable-on-death direction.  The Bank will accept and execute payable-on-death designations on personal accounts in accordance with and to the extent authorized  by the laws of the state in which the account is opened.  Requests for further information concerning payable-on-death directions should be made to a Personal Banking Representative.

6.  Powers of Attorney.  The Bank is not required to recognize any power of attorney to act on an account.  The Bank may require the attorney-in-fact to present the original power of attorney before he or she may conduct any transaction involving the account.  The Bank may require the attorney-in-fact to sign an affidavit regarding the attorney-in-fact’s right to act under the power.  If the Bank accepts a power of attorney, it may continue to recognize the authority of the attorney-in-fact until the Bank receives written notice of revocation or termination and has had a reasonable time to act upon the notice.  The Bank reserves the right to restrict the types or amounts of transactions it will permit an attorney-in-fact to conduct on a case-by-case basis.  A person acting under a power of attorney is not, by virtue of the power, an owner of the account, and no funds in the account belong to the attorney-in-fact by reason of that capacity.  The attorney-in-fact has no right of survivorship in the account by virtue of that capacity.

7.  Commercial Accounts.  Commercial accounts include those established by a sole proprietor, joint venture, partnership, corporation, association, limited liability company, limited liability partnership, business trust, governmental unit, or other entity.  Commercial accounts include those established primarily for religious, philanthropic, charitable, educational, fraternal or similar purposes and note operated for a profit.  Commercial accounts do not include accounts established by one or more individual persons opening the account primarily for personal, family or household purposes.

The Bank may require a resolution, authorization, agreement or other documents to evidence the authority of individual persons to act on behalf of a commercial account holder.  The Bank is not required to recognize any resolution or authorization that is not on the Bank’s own form.  Each commercial account holder agrees to provide the Bank with a new resolution, authorization or other documentation as Bank may request immediately upon any change in authority.  The Bank may continue to follow the directions of a representative who, according to the Bank’s records, is authorized to act on behalf of the commercial account holder until Bank receives a written resolution or authorization effecting a change and the Bank has had a reasonable period of time to act on such change.  You agree that three (3) business days after Bank’s receipt of the resolution, authorization, agreement or other document is a reasonable period of time, but the Bank may recognize the change earlier.

For partnership accounts and limited liability partnership accounts, each partner agrees with each other and Bank that any one partner whose name appears on the signature card has complete authority to bind the partnership and all other partners in all transactions involving the account.

Each person whose name appears on the signature card for a commercial account or on any resolution or other authorization represents and agrees that such person is authorized to execute all documents in the capacity designated in that document.  In the event of any inconsistency between the signature card and any resolution, authorization or other document, the signature card shall govern.

If the account is in a trade name, you certify that you are doing business under that name and that no other person or entity has any right to conduct business in that name.  You agree to indemnify the Bank against any loss or liability, including court costs and attorney’s fees to the extent permitted by law, arising from Bank’s acceptance for payment or credit checks or other items drawn to the order of the trade name.

8. Facsimile or Other Signature Device.  If items drawn on your account are signed using any stamp, facsimile signature, electronic or other non-manual form of signature, you acknowledge that it is used solely for your benefit and convenience.  You accept all responsibility for maintaining security over any device you use for affixing your signature.  Except as otherwise required by law, any signature made using such a device will be effective as your signature regardless of whether the person affixing it was authorized to do so.

9.  Credit Reports.  Prior to opening an account, and at any time during which your account is opened, the Bank has a right to obtain a credit report on you and to take reasonable steps to verify your employment and other information you have furnished to the Bank.

B.    DEPOSITS  

1.  Direct Deposits.  Any recurring periodic payments that you receive, such as Social Security payments, may, if the payer will agree, be directly deposited with us for your benefit.  If you desire this service, contact a Personal Banking Representative.

2.  Our Status as Your Agent.  We act as your agent in collecting any items deposited to your account, in accordance with law.  Credit for items deposited is provisional, and can be revoked if the item is not paid for any reason.  The Bank may refuse to accept, or may accept for collection only, or may return all or any part of a deposit.

3.  Endorsements.  You should endorse all items deposited to your account “For Deposit Only,” followed by your account number, and your signature.  You warrant to us that you are entitled to enforce and are entitled to payment for all checks that you deposit in your account.  We may return a check you deposited to you if it does not contain all necessary endorsements, and revoke any credit we have provided.  If you deposit an item bearing an endorsement that is outside the area extending 1 ½ inches from the trailing edge of the back of the check, or if you cause the endorsement of the bank of first deposit to be obscured, and this causes a delay in the payment or return of an item, you will be responsible for any cost and liabilities associated with the return or delay.  The trailing edge is the left side of the item as viewed from the front. 

4.  Verification of Deposits; Correction of Errors.  When we accept deposits and issue receipts, the deposits and receipts are subject to later verification and correction, if necessary.  If, by mistake, funds to which you are not entitled are deposited into your account, we have the right to remove those funds from the account at any time without prior notice to you.  If there are insufficient funds in the account to correct the mistake, we may charge your other accounts to recover the necessary funds, or we may institute collection action.

5.  Returned Items.  If a deposited item is returned to us unpaid, or if you breach a warranty that you make to us under law with respect to an item that you deposit, we may reverse the credit to your account.  We can also charge back to your account any item that we have cashed for you if the item is returned.  Interest earned, if any, on the returned check or item may also be deducted from your account.  There may also be a service charge for each returned check or other item.  At our option, we may resubmit any returned item for payment.  You waive presentment, notice of dishonor and protest.  We may process a copy or other evidence of the returned item (such as an electronic debit) in place of the original.

6.  Chargebacks.  If we cash a check for you or accept it for deposit to your account and it is returned to us unpaid, we will charge your account for the unpaid check.  The unpaid check will be mailed to you at the address shown on our records or you may pick it up at the Bank after you have been notified.  A service fee may be imposed for this type of activity.

7.  Foreign Collection Items.  If we take an item payable in foreign currency for deposit or collection, you will bear all exchange rate risk.  We may not credit the item to your account until we have received the proceeds in U.S. dollars.

8.  Substitute Checks.  The Bank is not required to accept a substitute check in a deposit that is not generated by a bank (i.e.,non-bank), and if the Bank decides to accept the substitute check, the Bank will not be liable for that substitute check, instead the liability risk will be that of the non-bank entity creating the substitute check.

C.  WITHDRAWALS.

1.  Checks.  Personalized checks may be ordered from the Bank at varying prices, depending on the style of check that you choose.  The Bank may deduct the cost of your personalized checks from your account.  You must verify the accuracy of all information on your printed checks.  Our liability, if any, for any printing errors on forms obtained through us is limited to the cost of replacement.  We are not liable for error or losses you may incur due to printing errors on forms not obtained through us or approved by us in advance.  To ensure that we are able to provide quality check processing services to you, we may require you to use a check printer that meets technical standards for checks that are acceptable to us.  The Bank reserves the right to reject any unacceptable check and charge a fee per check for each check rejected.

2.  Multiple Signers.  If the Bank establishes an account that purports to require two or more signatures or other special signing provisions on any item drawn on the account, you acknowledge that such a provision is solely for your personal or internal control purposes.  The provision is not binding on Bank unless an authorized officer of the Bank has specifically approved such requirement, either in the place provided on the signature card, or in another written agreement.  The mere acceptance by Bank of a signature card, resolution or other authorization document containing such a requirement, standing alone, is not sufficient to bind the Bank to such a requirement, unless a law (such as a law governing fiduciaries) or a court order of which we have knowledge requires otherwise.  You agree that we will not be liable for paying an item that is lacking the stated number of signatures, if the item bears at least one authorized signature.

3.  Federal Limitations on Withdrawals.  If your account is a checking account that earns interest, a savings account, or a checking account with limited check writing privileges, withdrawals are subject to limitations imposed by federal law.

a.  Notice of Intended Withdrawal.  Ordinarily, you may withdraw funds from your interest bearing checking account or savings account without giving us advance notice.  Under federal law, we must reserve the right to require you to give us seven (7) days prior notice of your intent to withdraw funds from these kinds of accounts.  This advance notice requirement will not apply to you unless the same notice is required of all of our customers with accounts of the same type.

b.  Transaction Limitations.  If your account is a savings account or a checking account with limited check writing privileges, you are allowed to make no more than six (6) transfers from the account each monthly statement cycle.  The total number of permitted transfers includes transfers, withdrawals or payments made by check, in person, at ATMs or POS terminals, by telephone, by personal computer or other electronic device, or by a preauthorized transfer such as ACH.  If the account has check writing privileges, no more than three (3) of the six (6) may be transfers to a third party by a check, debit card, or similar order.  If you exceed these limitations, we may charge you a fee.  If you exceed these limits on more than an occasional basis, we may close your account or convert your account to a different type of account.  We will send you a notice if we do that.

4.  Availability of Funds for Withdrawal.   The availability of funds for withdrawal from an account is governed by our funds availability policy.

5.  Account Processing; Bank’s Exercise of Due Care.  As a matter of practice, the Bank processes deposits to your account before checks or other items presented for payment are processed.  The Bank, in its sole discretion, may determine the order in which checks or other items are paid, which could include payment based upon the amount of the checks or other items (for example, payment of checks issued for larger amounts prior to checks issued for smaller amounts).  Consistent with the practice of other banks, the Bank’s procedures may not provide for the sight examination of items with a face amount below an amount specified by the Bank from time to time.  When acting in accordance with those procedures, the Bank will not be deemed to have failed to exercise ordinary care even though it does not make a sight examination of an item.  The Bank will not be deemed to have failed to exercise ordinary care if an item is forged or altered so cleverly that a reasonable person would not detect the forgery or alteration.

6.  Electronic Presentment.  Your account may be debited on the day an item is presented by electronic or other means, or at an earlier time based on notification received by us that an item drawn on your account has been deposited for collection in another financial institution.  Any determination of your account balance for purposes of making a decision to honor or dishonor an item for insufficiency of available funds may be made at any time between the receipt of the presentment or notice and the time of return of the item, and no more than one determination need be made.

7.  Preauthorized Payments.  You may authorize payments of specific amounts from your checking account directly by this Bank to third parties on a one-time or continuing periodic basis.  Any draft or item representing such authorized payment may be honored with the absence of your signature.  To arrange for this service, you should contact the person or company you will be paying.  Depending on the type of account you have, there may be a service charge for this service.  If you voluntarily provide information about your account, such as your account number and this Bank’s transit routing number, to any third party seeking payment from you, any debit to your account initiated by such party shall, as between the Bank and you, be deemed to be authorized by you.  Your signature or that of any other authorized signer on the account will not be required.  A payment made based on such an authorization may be made by electronic fund transfer, draft, or other item and may be a single payment or one in a series of periodic payments.

8. Restrictive Legends. The Bank is not required to honor any restrictive legend on checks that you write unless we have agreed in writing to the restriction.  Samples of restrictive legends are “void after 90 days,” or “not valid for more than $1,000.”

9.  Stale Items.  We are not required to pay any item presented more than six months after its date.  However, we may pay those items if we do so in good faith.  You agree that we are acting in good faith in paying such an item unless there is in effect on our system a Stop Payment Order for that item.

10.  Postdated Items.  We will have no liability by reason of our payment of an item prior to the date reflected on the item unless you have given us reasonable advance written notice before the item is presented and you follow the procedures for and pay the fees associated with a Stop Payment Order.  Your notice to us must specify the payee, date, amount and item number, and the fact that you have postdated it.  Notices with respect to postdated items are not effective for time periods longer than are provided for Stop Payment Orders, and must be renewed to continue to be effective beyond that time.  You agree that we may return a postdated item to the presenter before the date shown on the item without liability for wrongful dishonor.

11.  Check Cashing for Non-Account Holders.  The Bank may impose requirements that it deems necessary or appropriate when a payee or other person who does not hold an account at this Bank presents for cash an item drawn on your account, and which appears otherwise properly payable.  If that person fails or refuses to satisfy those requirements, Bank’s refusal to cash the item will not be considered wrongful.  Subject to applicable law, those requirements may include, but are not limited to, requiring the person to supply identification, which may include a fingerprint, pay check cashing fees, and present the item at specific locations or using specific tellers.

D. INSUFFICIENT FUNDS.    If you do not have sufficient collected funds in your account to cover payment of checks you have written on your account or other items when they are presented to the Bank for payment, the checks or items will be posted to your account pending any decision to return or pay them.  There will be a charge for each check or item so posted.  We will reverse the posting and return the check or item, unless in our sole discretion we decide to pay the check or item and create an overdraft in your account.  Whether we decide to pay the check or item and create an overdraft will depend on various factors.  These factors include the amount of the check or item and your banking history with us.  The fact that we have paid an item and created an overdraft one or more times does not mean that we have a duty to continue to do so, and we do not need to notify you in advance if we change how we handle your overdrafts. 

We will send you a notice when an item is presented and your account does no have sufficient collected funds to pay it, but we are not liable to you if we don’t send the notice.  Service charges for insufficient funds and overdrafts will be charged by us against your account and we will not be liable if check or other items are dishonored because of insufficient funds resulting from the deduction of service charges from your account or because of the order in which Bank pays checks, items, or transfers.

In the event the Bank pays a check or other item and overdraws your account and the Bank institutes legal proceedings to collect such amount from you, the Bank is entitled to recover from you, to the extent permitted by applicable law, the costs of collection and a reasonable attorney’s fee.  If you have a joint account, each account holder agrees to be responsible for the repayment of overdrafts, service charges, collection costs and, to the extent permitted by applicable law, reasonable attorney’s fees, arising out of items written by any other joint owner.

E.  STOPPING PAYMENT. 

If you want to stop the payment of a check or item, you may do so if we receive your verbal or written Stop Payment Order before we have paid or become accountable for the check or item.  We have a reasonable period of time to place the order in effect.  Your Stop Payment Order comes too late if we have already accepted the check for payment.  If you give us verbal instructions, you must mail or deliver to us written confirmation of the Stop Payment Order within 14 days or the Stop Payment Order will lapse.  Stop payment authorizations will remain in effect for six (6) months from the date we first receive your Stop Payment Order, and there will be a service charge for each such Stop Payment Order.  You must contact us and renew a Stop Payment Order if you want to extend it beyond the current expiration date.  We will accept a Stop Payment Order from any owner or authorized signer, even if that person did not sign the item.  Your written instructions or confirmation must be signed by you and include the following information:  the names of all persons on the account, the account number, the name of the person who signed the check or item, the name of the party to whom the check or item was made payable, the date of the check or item, the amount of the check or item, the check number, and your name.  The Bank assumes no liability for failure to stop payment on a check or item if any of the information in incorrect or incomplete.  If you deliver the Stop Payment Order in person, you should give it to a Bank Officer or a Personal Banking Representative.  If you mail it, you should address it to Kendall State Bank;406 Broadway; P.O. Box 188;Valley Falls, Ks.  66088-0188.

When you give a Stop Payment Order for an item drawn pursuant to a preauthorized payment, only the designated payment you direct to be stopped will be cancelled unless you make other arrangements with us.  If you wish to terminate the periodic preauthorized payment on your account, you should do so with the person or company to whom you have been making the payment.

If we honor your Stop Payment Order on a check or item, you agree that you will hold us harmless for all expenses incurred on account of the Stop Payment Order.  You further agree that if, contrary to such Stop Payment Order, payment is nevertheless made through inadvertence, accident or oversight, this Bank’s liability will be limited to the amount of actual loss sustained, up to the amount of the check or item, and the Bank will not be liable with respect to other checks or items drawn by you which are returned for insufficient funds because of such payment.

F.  STATEMENTS AND REPORTING ERRORS.

1.  Your Role in Preventing Account Fraud.  You have a very important role in protecting your account from fraud and discovering fraud or error involving your account.  You should carefully guard the security of your check book and check stock, and immediately notify us if any of your checks are missing.  If you are a commercial customer, you should not give the same person the responsibility to write checks and to review statements.  You must safeguard any Personal Identification Number (“PIN”), password or other code that you obtain from us to access your account or to perform account functions, such as codes to use your ATM Card, or to access your account via personal computer or other electronic device.  You must notify us immediately if your Card or other access device or your PIN or other code is lost or stolen or if you suspect that its confidentiality has been compromised.  No representative of the Bank will ask you for your ATM Card PIN or PC Banking Password, and you should not disclose it to a person that claims to be a Bank representative.  You must promptly review your statements and immediately report to the Bank any suspected fraud involving your account.  As set forth below, if you do not report any suspected forgery, alteration, missing signature or other discrepancy relating to your account within the required time period, you may not recover from the Bank an amount that you claim was unauthorized.  You should promptly call us at 785-945-3231, if you do not receive your statement on time and obtain a duplicate.  If you are an online banking customer, you can monitor your account transactions quite easily, and we encourage you to do so.  You agree to cooperate with us and with appropriate law enforcement personnel in the investigation of any claim you make involving an unauthorized withdrawal from your account, and to sign an affidavit or other written statement supporting your claim.  If we have received a claim involving fraud on your account, we may require you to close the account to prevent additional fraud.

2.  Account Statements.  Statements will be periodically prepared by Bank and mailed to customer or Customer may call and claim the same within a reasonable time.  Lost statements become customer’s responsibilities.  If you have more than one (1) account, you will receive a separate statement for each account.  Each statement you receive will show your deposits and other credits to the account, checks, electronic fund transfers or other debits from the account, if any, service charges deducted from the account and interest earned, if applicable, together with other information pertaining to the activity in your account during the statement cycle.

3.  Check Imaging.  The Bank will convert all checks and other paper items paid from the account to an image format.  An image of the item, or for some account types, only a description of the item, will be provided on your statement.  The Bank will keep the originals for a limited period of time, but images will be retained for as long as legally required.  If an image of your check or other paper item (instead of the original) is made available, you agree that the Bank will not be liable for destruction of the original.  Your obligation to review your statement and report any errors as discussed in the next paragraph is not affected by the fact that we provide an image or description of the check or other item on the statement rather than returning the original to you.

4.  Your Responsibility to Review Statements.  You are responsible for promptly examining your account statements and for reporting any irregularities to us.  You must notify us in writing within sixty (60) days of your receipt of a statement if you believe the statement contains an error or that a forged or altered check or other unauthorized transaction was made from your account.  Your notice must identify the particular items that you consider forged, altered or otherwise unauthorized.  If you do not notify us in writing within the required time period, you are precluded from recovering any amount that you later claim was unauthorized with respect to an item reflected on that statement.  If the same wrongdoer commits a series of forgeries or alterations involving your account, you must notify us in writing within sixty (60) days of your receipt of the FIRST statement containing a description of any such irregularity.  Otherwise, your account statement will be deemed to be correct, except where the Bank fails to use ordinary care in paying checks or drafts with forged signatures, desktop publishing or other computer generated or aided signatures, positive pay arrangements where presentment is made through computer modem, checks and drafts truncated at another collecting institution, and situations where the Bank, consistent with the practice of other banks in the industry, does not scrutinize depositor’s signatures, and you will not be able to recover from the Bank payments that you later claim were unauthorized.  Different rules apply to electronic fund transfers from personal accounts (see “Electronic Funds Transfer Act Disclosure”).  You will be considered to have received your account statement within five (5) calendar days after its ending date.  This is the case even if you have requested that we hold your statements. 

G.YOUR ABILITY TO WITHDRAW FUNDS AT KENDALL STATE BANK-Our policy is to make funds from your deposits available to you on the first business day after the day we receive your deposit. Electronic direct deposits will be available on the day we receive the deposit. Once they are available you can withdraw the funds in cash and we will use the funds to pay checks that you have written. For determining the availability of your deposits, every day is a business day, except Saturdays, Sundays, and federal holidays. If you make a deposit before 3:00 p.m. with a human teller at our main bank or branches on Monday, Tuesday, Wednesday, or Thursday, or before 2:00 p.m. with a human teller at our main bank or branches on Friday, on a business day we are open, we will consider that day to be the day of your deposit. However, if you make a deposit after 3:00 p.m. with a human teller at our main bank or branches on Monday, Tuesday, Wednesday, or Thursday or after 2:00 p.m. with a human teller at our main bank or branches on Friday, or on a day we are not open, we will consider that the deposit was made on the next business week day we are open. LONGER DELAYS MAY APPLY-In some cases, we will not make all of the funds that you deposit by check available to you on the first business day after the day of your deposit. Depending on the type of check that you deposit, funds may not be available until the fifth business day after the day of your deposit. However, the first $100 of your deposit will be available on the first business day. If we are not going to make all of the funds from your deposit available on the first business day, we will notify you at the time you make your deposit. We will also tell you when the funds will be available. If your deposit is not made directly to one of our employees, or if we decide to take this action after you have left the premises, we will mail you the notice by the day after we receive your deposit. If you need the funds right away, you should ask us when the funds will be available. In addition, funds you deposit by check may be delayed for a longer period under the following circumstances:
We believe a check you deposit will not be paid; You deposit checks totaling more than $5000 on any one day; You redeposit a check that has been returned unpaid; You have overdrawn your account repeatedly in the last six months; There is an emergency, such as failure of communications or computer equipment.
We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available no later than the seventh business day after the day of your deposit. If we cash a check for you that is drawn on another bank, we may withhold the availability of a corresponding amount of funds that are already in your account. Those funds will be available at the time funds from the check we cashed would have been available if you had deposited it. If we accept for deposit a check that is drawn on another bank, we may make funds from the deposit available for withdrawal immediately but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available for withdrawal until the time periods that are described elsewhere in this disclosure for the type of check that you deposited. SPECIAL RULES FOR NEW ACCOUNTS-If you are a new customer, the following special rules will apply during the first 30 days your account is open. Funds from electronic direct deposits to your account will be available on the day we receive the deposit. Funds from deposits of cash, wire transfers, and the first $5,000 of a day’s total deposits of cashiers’ certified, teller’s, traveler’s, and federal, state, and local government checks will be available on the first business day after the day of your deposit if the deposit meets certain conditions. For example, the checks must be payable to you (and you may have to use a special deposit slip). The excess over $5,000 will be available on the ninth business day after the day of your deposit. If your deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, the first $5,000 will not be available until the second business day after the day of your deposit. Funds from all other check deposits will be available on the ninth business day after the day of your deposit.

H.  WIRE TRANSFERS AND ACH. 

1.  Governing Laws and Rules.  From time to time, your account may be debited or credited for a wire transfer that you send or receive, or through an Automated Clearing House (ACH) debit or credit entry.  An example of an ACH credit is a direct deposit of your payroll or a government benefit that is deposited directly to your account.  An example of an ACH debit is a transaction in which you have given your insurance company or health club the right to automatically withdraw your monthly payment from your account.  Sometimes, you may give a merchant from whom you wish to purchase goods the right to convert your check to an ACH debit.  These examples are not exclusive. 

Wire transfers are also subject to the laws, regulations or rules then in effect governing the use of any system through which the funds may be transmitted, including but not limited to Article 4A of the Uniform Commercial Code and Federal Reserve Board Regulation J with regard to Fedwire and rules of the Clearing House Interbank Payment Systems (CHIPS) and the Society for Worldwide Interbank Financial Telecommunications (SWIFT).  If your account is held primarily for personal, family or household purposes and a portion of the funds transfer is governed by the Electronic Funds Transfer Act, that portion will be subject to the terms of the Bank’s Electronic Funds Transfer Act Disclosures. 

Transactions through the Automated Clearing House (ACH) are governed by the National Automated Clearing House Association (NACHA) Operating Rules and any local ACH operating rules then in effect.

2.  RIGHT TO RECEIVE DOCUMENTATION OF TRANSFERS  Pre- authorized 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, we will let you know if the deposit is made.  You can call us to find out whether or not the deposit has been made.  CALL (785) 945-3231.  Checking accounts will receive a monthly statement showing all your account activity including electronic transfers.  Savings accounts with electronic transfers will receive their statement quarterly.  If you believe the Bank has failed to properly credit a transfer to you, you agree to promptly notify the Bank of all the relevant facts.

3.  Final Payment; Reversal of Erroneous Credit Entries.  Any credit we give to you resulting from an ACH credit entry or a wire transfer is provisional until the Bank receives final payment.  If the Bank does not receive final payment, you agree that the Bank may reverse the credit to your account or that you will otherwise reimburse the Bank if funds in your account are not sufficient.  If the payment does not become final, the originator will not be deemed to have paid you the amount of the credit.  If the Bank receives satisfactory documentation that an ACH or wire transfer credit was made to your account in error or for an erroneous amount, or if the government claims that you were not entitled to federal benefits deposited directly into your account, you agree that the Bank may debit your account for the amount so credited, and you agree to reimburse the Bank if funds in your account are not sufficient. 

4.  Use of Account Numbers.  You agree that we and any other financial institution or system through which a payment is made by ACH or wire transfer may make the payment solely by reference to the account number of the recipient or beneficiary that you provide to us.  Neither the Bank nor any other person or system handling the transaction is required to determine if there is a discrepancy between the name and the account number shown on the transfer instructions.

5.  Compensation.  If you are entitled to compensation for delay or improper completion of an ACH or wire transfer as a result of our error, our liability will be limited to the payment of interest for a period not exceeding the lesser of sixty (60) days or the period between the date of the error and the date of the correction.  The rate of interest on such compensation will be the Federal Funds rate in effect at the Federal Reserve Bank of Kansas City for that period.

I.  RECORD RESEARCH AND INQUIRIES. At your request, we will provide you with information pertaining to your accounts with us that is not set forth on your regular statement or is of an historical nature.  We will provide the requested information, if it is in our possession, as soon as it can reasonably be compiled by our regular employees.  We will not be responsible, however, for providing you with information that is not within our possession and we will not be responsible for any delays in providing any information to you when such delays are caused by circumstances beyond our control.  Requests for information are generally processed in the order in which they are received, but certain court-ordered documentation productions or certain requests for information by regulatory agencies may take priority.  A service charge may be made for all information provided that required research by us, and a charge may be made for copies of documents.  All inquiries related to record research should be directed to the Bank Operations Department or a Personal Banking Representative.

J.  SETOFFS AND LEGAL PROCESS.

The Bank has the right to apply funds in any account you maintain with us, whether the account is in your name alone or in your name and another or others, to the payment of any obligations, individual or joint, you have to the Bank now or at any time hereafter.  This right of offset is limited to the extent provided in federal law, such as with respect to Electronic Transfer Accounts or Individual Retirement Accounts.  If we exercise this right of setoff, we will notify you.

In the event we are served with a garnishment, levy or similar legal process issued by a court or governmental agency, the Bank may be required to place a hold on funds in your account or to pay funds in your account to a person or party as directed by the legal process.  In any such event, we will attempt to notify you, but we will have no liability if we fail to provide you with notice.  Your account will be charged a fee for handling the legal process. 

The Bank also may be required by a court or governmental agency to provide information about the accounts you maintain with us or your banking relationship with us.  A service charge covering research and photocopies will be charged to the person or party requesting such information.  If your account becomes involved in legal proceedings, your use of it may be restricted.

K. SECURITY INTEREST.  By execution of a signature card, each owner of an account (except as set forth in this paragraph) grants to the Bank a security interest in all property of the owner in possession of or under the control of the Bank at the time of execution of the signature card or at any time thereafter, as security for payment of any and all obligations of the owner to the Bank that existed at the time the owner first had an interest in the account or at any time thereafter.  This security interest is not the same as a right of setoff but is a separate right that creates a lien in favor of the Bank against property of the owner, including but not limited to, time deposit accounts or any instrument held or processed by the Bank.  That lien is superior in right to the claims of other creditors.  This security interest does not apply if (1) the account is an Individual Retirement Account or other tax-deferred retirement account or an Electronic Transfer Account; or (2) the debt is created by a consumer credit transaction under a credit card plan; (3) you are an account holder acting in a fiduciary capacity and the debt arises from transactions in which you acted in your personal capacity only; or (4) the security interest is otherwise prohibited by law.

L. CLAIMS OR DISPUTES INVOLVING YOUR ACCOUNT.Under the provisions of applicable state laws, notice to the Bank of an adverse claim to a deposit is not sufficient to cause the Bank to restrict the account or otherwise refuse to pay items drawn on the account unless and until (1) the Bank is served with a restraining order, injunction, or other order issued by a court of competent jurisdiction in an action in which the adverse claimant and the person or persons entitled to the deposit on the Bank’s records are parties; or (2) the person making the claim supplies indemnity that is adequate, in the opinion of the Bank, to protect the Bank from all liability or loss.  If we receive an adverse claim to a deposit and there is no applicable state statute regarding adverse claims to deposits, we may, at our discretion, do any of the following:  restrict the account and deny access to all persons;  close the account and send the funds to the owner or owners of the account, according to our records, at the statement mailing address; interplead the funds into court; or hold the funds in the account pending a resolution of the claim to our satisfaction.  You agree that we will not be responsible for damages for any such action that we take in good faith.  If we interplead the funds into court because of an adverse claim or account dispute, we are entitled to recover our attorney’s fees if we have acted in good faith. 

M.  TRANSFER OR ASSIGNMENT.  Your account is for your use only and may not be transferred, pledged or assigned without the Bank’s written consent.  Checking accounts are not transferable or assignable.  We reserve the right not to acknowledge or accept an attempted pledge or assignment of, or security interest in, any account.

N.  CHANGE OF ADDRESS.  You agree to notify us promptly if the address to which your statements of account are currently being sent, is changed for any reason, and to furnish us the new address.  Any joint account owner or authorized signer may provide us with a valid change of address.  We may require that such notification be in writing and be sent to the address of this Bank provided on your statements of account.  However, at our discretion, we may also accept notification from you received through other media, including but not limited to telephone, facsimile, or electronic mail.  In addition, if we receive notification from the United States Postal Service of any change in the address to which we are sending your statements of account, we may, at our discretion, accept such notification to effect a change of address for the mailing of future statements.

O.  CLOSING ACCOUNTS.  You have the right to close your checking or savings account at any time.  If you decide to close an account, you should cease writing checks on the account immediately.  You should deliver written instructions to the Bank regarding your intention to close your account.  You may deliver these instructions to any Kendall State Bank location, or you may mail them to the address shown on your account statement.  At the discretion of the Bank, your account may not be considered closed until such written instructions are received. 

The Bank also has the right to close your account, subject to giving you reasonable advance notice; ten days written notice mailed to your address of record will be considered reasonable.  We are not required to give you advance notice if we decide to close your account because of improper or unsatisfactory account activity or if you have not complied with the terms of this Agreement or another agreement we have with you.  If this is a joint account, notice by Bank to any one owner shall be considered to be notice to all account owners.  Any checks presented after account is closed, will be returned unpaid.  Statements will be mailed to the last address given to the bank.  Please notify the Bank promptly of address changes.  Undeliverable mail will cause the Bank to stop sending statements.  Any account closed within 90 days will be assessed a $25.00 charge.

P.  EVENTS BEYOND OUR CONTROL.  The Bank is not responsible for any loss to you caused by an event that is beyond our control, including, but not limited to, natural disasters, wars, insurrection, terrorist acts or threats, riots, strikes, computer failure, fire, the loss of power, communication or transportation facilities, action or inaction of any governmental authority, or for delays or other failures of the U.S. mail service, Fedwire, or the failure of any other provider of funds transfer or item processing services. 

Q.  INDEMNIFICATION; LIMITATION OF LIABILITY.  Unless prohibited by law, you agree to reimburse us for any losses, liabilities, and expenses (including reasonable attorney’s fees) we may incur in connection with your account, except to the extent that our negligence or misconduct caused the losses.  We are not liable for special, indirect, or consequential damages, even if we have been advised of the possibility of such damages.  If we have an agreement with you for wire transfer, ACH or Treasury Management services, the limitation of liability and indemnification provisions of those other agreements, and not this paragraph, will be controlling with respect to those services.

R.  INTERNAL REVENUE SERVICE REPORTING AND WITHHOLDING.

In the event you do not provide the Bank with your taxpayer identification number as required by Internal Revenue Service Form W-9, you will be subject to the backup withholding requirements of the Internal Revenue Code.  Additionally, there are other reasons set forth in the Internal Revenue Code for which you may be subject to backup withholding.  If you are subject to backup withholding, we will deduct the required amount from interest paid on any accounts you hold at the Bank and report this to you and to the Internal Revenue Service.  In any event, we will report to you and to the Internal Revenue Service the amount of interest earned during each calendar year you maintain an interest bearing account with us.

For answers to questions pertaining to income tax matters, you should contact the Internal Revenue Service or consult your personal tax advisor.

S. DORMANT AND INACTIVE ACCOUNTS AND ESCHEAT LAWS.

An account is deemed to be dormant if there is no activity (per account disclosure common terms) or if your statement is returned to us by the U.S. Postal Service as being non-deliverable or non-forwardable and we are unable to determine a more current address, unless state law prescribes a different definition of a “dormant” account.  If so, the state definition will apply.  Dormant accounts may be assessed a dormant account fee, but may remain subject to service charges.

Inactive accounts:  An account shall be considered inactive during any period defined by the Bank, available upon request, in which there shall occur no deposit (other than interest earned), no withdrawals, or no written correspondence with the Bank with respect to the account.  An account which has been inactive for a period of time according to state law, will be escheated to the state as abandoned property and no interest will be earned after an escheat.  The Bank reserves the right at the start of the inactive period to charge a fee per month for cost of the inactivity.

In the event you die without leaving a will and have no surviving heirs or other legal representatives, all funds on deposit in your accounts with this Bank may be turned over to the state where the Bank is located, pursuant to applicable law, if funds are not legally claimed.  Funds in dormant or inactive accounts also may be subject to such laws and required to be turned over to the appropriate state under certain circumstances.

T.  WAIVER.  We may waive any of our rights or your obligations under this Agreement in a particular situation.  We are not obligated to do so, and may choose not to even if we have done so before.

U.  NOTICES.  All notices and statements concerning your account are effective when we mail or deliver them to the address we have for you in our central account records.  We may deliver notices to any one of the account owners or authorized signers if so requested, and notice to any one of them will be effective for all.

. ELECTRONIC FUNDS TRANSFER DISCLOSUREIndicated 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 financial institution information.  This information can be found on your check as well as on a deposit or withdrawal slip.  Thus, you should only provide your financial institution 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 transfer include, but are not limited to:

*Preauthorized credits - You may make arrangements for certain direct deposits to be accepted into your checking or savings.

*Preauthorized payments - You may make arrangements to pay certain recurring bills from your checking or savings.

*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 card transactions - types of transactions - You may access your account(s) by ATM using your ATM card and your personal identification number (PIN) to:  * withdraw cash from checking or savings       *  transfer funds from Savings, Checking to Checking, Savings  *  get balance information about checking or savings.  Some of these services may not be available at all terminals.

Kendall State Bank Debit Card ATM transactions - types of transactions - You may access your account(s) by ATM using your Kendall State Bank Debit Card and your personal identification number (PIN) (as applicable) to:  * withdraw cash from checking or savings  *  transfer funds from Savings, Checking to Checking, Savings  *  get balance information about checking or savings.  Some of these services may not be available at all terminals.

Kendall State Bank Debit Card point-of-sale transactions - types of transactions - You may access your checking account(s) by debit card to do transactions that participating merchants will accept, including:  * purchase goods in person, by phone, or online  *  pay for services in person, by phone, or online  *  get cash from a participating merchant or financial institution

Foreign Currency Conversion and Cross-Border Transactions - If you effect a transaction with your Card in a currency other than US Dollars, MasterCard will convert the charge into a US Dollar Amount.  The MasterCard currency conversion procedure includes use of either a government-mandated exchange rate, or a wholesale exchange rate selected by MasterCard.  The exchange rate MasterCard uses will be a rate in effect on the day the transaction is processed.  This rate may differ from the rate in effect on the date of purchase or the date the transaction was posted to your account.  MasterCard charges us a Currency Conversion Assessment of 20 basis points (.2% of the transaction) for performing the currency conversion.  In addition, MasterCard charges us an Issuer Cross-Border Assessment of 80 basis points (.8% or the transaction) on all cross-border transactions regardless of whether there is a currency conversion.  As a result, we charge you a corresponding fee as disclosed separately.  The cross-border transaction is a transaction processed through the Global Clearing Management System or the MasterCard Debit Switch in which the country of the merchant is different than the country of the cardholder.  

Online Banking - types of transfers - You may access your accounts by computer at www.kendallstatebank.com and using your Password and User Name to:  *transfer funds from Savings, Checking to Checking, Savings  *make payments from Savings, Checking to Loan Account With Us  *get balance information about checking or savings  *get withdrawal history about checking or savings  *get deposit history about checking or savings  *get transaction history about checking or savings

Bill payment service - types of transfers - You may access this service by computer at www.kendallstatebank.com and using your user name and password.  You may access this service to:  *make payments from your checking and savings account(s) to Anyone, Anywhere

Limits and fees - Please refer to our fee disclosure for information about fees and limitations that may apply to 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 transfers - You can get a receipt at the time you make a transfer 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 transfer is $15 or less.

Periodic statements - You will get a monthly account statement from us for your Checking Accounts account(s).  You will get a monthly account statement from us for your Savings Accounts account(s), 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 three 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.

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 three 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 transfer 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 fired 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)  if you give us written permission.

Unauthorized Transfers

(a)  Consumer liability.  (1)  Generally.  Tell us AT ONCE if you believe your card and/or code 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).  If you tell us within 4 business days after you learn of the loss or theft of your card and/or code, you can lose no more than $50 if someone used your card without your permission.

If you do NOT tell us within 4 business days after you learn of the loss or theft of your card and/or code, and we can prove we could have stopped someone from using your card and/or code without your permission if you had told us, you could lose as much as $300.

Also, if your statement shows transfers that you did not make, including those made by card, code 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 can 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 sill extend the time period. 

(2)  Additional Limits on Liability for MASTERCARD (R) debit card, when used for point-of-sale transactions.  You will not be liable for any unauthorized transactions using your MASTERCARD debit card, when used for point-of-sale transactions, if:  (i) you can demonstrate that you have exercised reasonable care in safeguarding your card from the risk of loss or theft, (ii) you have not reported to us two or more incidents of unauthorized use within the prior twelve-month period, and (iii) your account is in good standing.  If any of these conditions are not met, your liability is the greater of $50 or the amount of money, property, labor, or services obtained by the unauthorized use before notification to us.  "Unauthorized use" means the use of your debit card by a person, other than you, who does not have actual, implied, or apparent authority for such use, and from which you receive no benefit.  This additional limit on liability does not apply to ATM transactions or to transactions using your personal identification number which are not processed by MASTERCARD.

(b)  Contact in event of unauthorized transfer.  If you believe your card and/or code 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.

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 (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 (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 the 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.  If you have inquiries regarding your account, please contact us at:

Kendall State Bank; 406 Broadway; Valley Falls, Ks.  66088

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

PHONE:  (785) 945-3231

Notice of ATM/Night Deposit Facility User Precautions

As with all financial transactions, please exercise discretion when using an automated teller machine (ATM) or night deposit facility.  For your own safety, be careful.  The following suggestions may be helpful.

1.  Prepare for your transactions at home (for instance, by filling out a deposit slip) to minimize your time at the ATM or night deposit facility.

2.  Mark each transaction in your account record, but not while at the ATM or night deposit facility.  Always save your ATM receipts.  Don't leave them at the ATM or night deposit facility because they may contain important account information.

3.  Compare your records with the account statements you receive.

4.  Don't lend your ATM card to anyone.

5.  Remember, do not leave your card at the ATM.  Do not leave any documents at a night deposit facility.

6.  Protect the secrecy of your Personal Identification Number (PIN).  protect your ATM card as though it were cash.  Don't tell anyone your PIN.  Don't give anyone information regarding your ATM card or PIN over the telephone.  Never enter your PIN in any ATM that does not look genuine, has been modified, has a suspicious device attached, or is operating in a suspicious manner.  Don't write your PIN where it can be discovered.  For example, don't keep a note of your PIN in your wallet or purse.

7.  Prevent others from seeing you enter your PIN by using your body to shield their view.

8.  If you lose your ATM cared or if it is stolen, promptly notify us.  You should consult the other disclosures you have received about electronic fund transfers for additional information about what to do if your card is lost or stolen.

9.  When you make a transaction, be aware of your surroundings.  Look out for suspicious activity near the ATM or night deposit facility, particularly if it is after sunset.  At night, be sure that the facility (including the parking area and walkways) is well lighted.  Consider having someone accompany you when you use the facility, especially after sunset.  If you observe any problem, go to another ATM or night deposit facility.

10.  Don't accept assistance from anyone you don't know when using an ATM or night deposit facility.

11.  If you notice anything suspicious or if any other problem arises after you have begun an ATM transaction, you may want to cancel the transaction, pocket your card and leave.  You might consider using another ATM or coming back later.

12.  Don't display your cash; pocket it as soon as the ATM transaction is completed and count the cash later when you are in the safety of your own car, home, or other secure surrounding.

13.  At a drive-up facility, make sure all the car doors are locked and all of the windows are rolled up, except the driver's window.  Keep the engine running and remain alert to your surroundings.

14.  We want the ATM and night deposit facility to be safe and convenient for you.  Therefore, please tell us if you know of any problem with a facility.  For instance, let us know if a light is not working or there is any damage to a facility.  Please report any suspicious activity or crimes to both the operator of the facility and the local law enforcement officials immediately.

MORE DETAILED INFORMATION IS AVAILABLE ON REQUEST.