Farmers & Merchants Savings Bank

Online Banking (Internet) Agreement


1. The Service.

In consideration of the Online Banking services ("Service") to be provided by Farmers & Merchants Savings Bank of Waukon, Iowa ("Bank"), as described from time to time in information distributed by Bank to its customers, the Customer and Bank agree as follows:


In this agreement, "Customer" refers to the person(s) and/or entity (ies) subscribing to or using the Service.Customer may use a Personal Computer or other device ("PC") through an Internet connection obtained from an Internet Service Provider (ďISPĒ) to use the Service.The Service will allow customer through this connection to obtain account balances and transaction information.Customer may also use a PC to obtain statements on Customerís accounts and to transfer money between Customerís accounts.A ďTransferĒ is any electronic banking transaction that moves funds to or from Customerís account. Transfers from Customerís savings and Money Market accounts are considered pre-authorized transfers, and pre-authorized transfers are limited to six (6) per monthly statement cycle by federal regulations.In addition, Customer may use a PC to electronically direct the Bank to make payments from Customerís account to third parties ("Payees") that Customer has selected to receive payment through the Service.Customer may pay anyone approved by Farmers & Merchants Savings Bank for payment through the BillPay service.However, Bank will not process any payments to Federal, State or local tax agencies, court initiated or foreign transactions.The ("Account") means Customerís designated bill payment checking account at Bank from which Bank makes bill payments on Customerís behalf pursuant to this Agreement.By subscribing to the Service or using the Service to make any payments to a third party, Customer agrees to the terms of this Agreement and to future modifications of the Agreement made by the Bank at its discretion.


Customer agrees to submit a completed Online Enrollment Form to initiate the setup of the Service.Customer will list numbers of accounts for which they would like to restrict access via PC Internet connection.The BillPay feature is available only to Checking accounts due to regulatory withdrawal limitations.If Customer answers ďyesĒ in the Electronic Notification option, that means that the Customer is agreeing to accept Email as an acceptable form of delivery for notices, disclosures and/or amendments to the Agreement; and upon further notice by the Bank to the Customer, Customer agrees to be responsible for printing account statements directly from the Online Banking Service in lieu of the monthly statements being mailed.††


When any payment or other online service generates items to be charged to Customerís account, Customer agrees that Bank may debit the designated account, or the account on which the item is drawn, without requiring Customerís signature on the item and without any notice to the Customer.


This Agreement supplements any other agreements or disclosures related to Customerís account(s), including the deposit account agreement and disclosures.†† For all non-personal accounts Bank will require the governing body of the legal entity subscribing to the Service to provide a separate authorization indicating who is authorized to act on its behalf.Bank will honor the authorization until written notice of a change from the governing body of the legal entity is received by the Bank.Additionally, Customer will be subject to the terms or instructions appearing on the screen when using the Service.



2.Business Days "Hours of Operation".

The Bankís normal business hours are 8:30 a.m. to 6:00 p.m. (Central Time) on Monday and 8:30 a.m. to 3:30 p.m. (Central Time) Tuesday through Friday except for bank holidays.Although payments and transfers can be completed only on business days, the Service is normally available 24 hours a day, seven days a week, except during maintenance periods, for the scheduling of payment orders and transfers. Payment orders and transfers must be scheduled by the cut-off time of 6:00 p.m. (Central Time) on any business day in order for the transaction to be processed on that business day. 


3. Customerís User Code and Password. .

Each Customer who has access to Farmers & Merchants Savings Bank's Online Banking, including each individual named on accounts, must designate a password. Customerís password must be a minimum of 8 characters, up to a maximum of 17 characters.The password is case sensitive and any combination of alpha or numeric characters can be used.If Customer loses or forgets Customerís password, please call (563) 568-3417 during normal business hours listed above or (563) 568-3417 extension 107 after hours.Bank may accept as authentic any instructions given to us through the use of Customerís password.Customer agrees to keep Customerís password secret and to notify Bank immediately if Customerís password is lost or stolen or if Customer believes someone else has discovered Customerís password.Customer agrees that if Customer gives Customerís password to someone else, Customer is authorizing them to act on Customerís behalf, and Bank may accept any instructions they give Bank to make transfers or otherwise use the Service.Online Banking Service enables Customer to change Customerís password.Bank may require Customer to change Customerís password from time to time or on a regular basis to enhance security. Customer agrees to NOTIFY THE BANK IMMEDIATEDLY if Customer believes or suspects that Customerís password has been lost or stolen.It is Customerís responsibility to keep Customerís password confidential.


4.Bill Payment


A. Customerís Merchant List.

Customer may include utility companies, merchants, financial institutions, insurance companies, individuals, etc. whom Customer wishes to pay through Farmers & Merchants Savings Bank's Online BillPay. It is Customerís responsibility to include a full and complete mailing address and telephone number for each payee and Customerís account number with each payee.Bank reserves the right, at its sole and absolute discretion, to decline to make payments to certain persons and/or entities.


B.†† Scheduling Payments.

Customer may choose to add BillPay and use Customerís PC to electronically schedule payments with Farmers & Merchants Savings Bank's Online BillPay Service.Payments are posted against Customerís balance available for withdrawal, as defined in the Bank's Funds Availability Policy, plus the available credit on Customerís overdraft protection, if any, or other line of credit.Customer must have a Farmers & Merchants Savings Bank checking account opened and in good standing to use the BillPay Service.If customer closes Bankís checking account, customer must notify bank to cancel the BillPay Service.Customer agrees to maintain sufficient funds in the checking account and/or overdraft account from which bills are being paid to cover the payment of all bills, which are to be paid.Customer also agrees to reimbursement the bank promptly for any and all payments, which may be made by the Bank for which Customer did not have sufficient funds to pay the same.Bank, at its sole and absolute discretion, may cancel a Customerís BillPay Service without notice.


C. Delivery of Customerís Payments and Transfers.

The ďscheduledĒ payment date is the date the Customer enters on the Service for payment or transfer.Customer may schedule payments to be initiated on the current business day (if received prior to the cut-off time), on a future date, or on the same date of each month, subject to the restrictions in the Agreement. Although Customer can enter payment information through the Service twenty-four (24) hours a day, seven (7) days a week, payments can be processed only on business days.The date the payment or transfer is processed is the ďTransaction DateĒ.Funds will be deducted from Customerís Account on the Transaction Date. If Customer initiates a payment or transfer with a scheduled payment date other than a business day, it will be processed on the following business day.


After funds are withdrawn from Customerís Account, Bank may remit Customerís payments by mailing Customerís Payee a check, by electronic funds transfer, including ACH (Automated Clearing House) or by other means.Because of the time it takes to send Customerís payment, Customerís Payees generally will not receive payment on the Transaction Date.This applies regardless of whether the payment is a same-day payment, a future payment, or a recurring payment, as described below.Therefore, in order to provide sufficient time for payments to be received by Customerís Payees, the Transaction Date should be prior to the date Customerís payment is due, excluding any applicable grace periods.. It is recommended that Customer allow additional time for a payment to be completed the first time Customer sends a payment to a Payee through the Service.This allows the Payee to adjust to the new form of payment.Customer may schedule a payment on any business day or any future date.Payments must be scheduled by the cut-off time of 6:00 p.m. (Central Time) on any business day in order for the payment to be processed for that business day.Transfers must be scheduled by the cut-off time of 6:00 p.m. (Central Time) on any business day in order for the transaction to be processed on that business day.


D.Recurring Payments

Recurring payments are those made for the same amount and are made on a weekly, bi-monthly, monthly basis, etc.Once started, recurring payments will be made automatically until Customer tells Bank to stop or cancel the Service and the Bank has a reasonable opportunity to react, which reasonable time shall be no less than five (5) Bank business days.


E.The Bank has No Duty to Monitor Payments.

The Bank does not have any duty to monitor the payments that are made through the BillPay Service.If Customer is a business and an authorized representative of Customer uses Customerís BillPay Account to pay bills which are not Customerís, Customer assumes the entire risk of loss and agrees to indemnify and hold the Bank, its directors, officers, employees and agents harmless from any and all loss, liability, claims, demands, judgments and expenses arising out of or in any way connected with or related to such use.


F. Canceling Payment.

Customer may cancel a payment online without a fee up to 6:00 p.m. (Central Time) on the Transaction Date. Other cancellation requests will also be processed without a fee if received at least one (1) business day prior to scheduled payment date.A payment that has been processed may be recalled for a fee of $10 per item, but Farmers & Merchants Savings Bank will not guarantee the ability to recall an item.


5.The Bankís Liability for Failure to Complete Transactions.

If the Bank does not complete a transfer to or from Customerís account on time or in the correct amount according to Bankís agreement with Customer, Bank will be liable for Customerís losses or damages.However, there are some exceptions.The Bank will not be liable, for instance:

a. If Customer does not maintain the proper available balance in Customerís account to complete a transaction.

b. If the money in Customerís account is subject to legal restrictions or other encumbrances restricting transfer;

c.If the transfer would go over the credit limit on Customerís overdraft line (if any);

d. If the automated teller machine or the merchant where Customer is making the transfer does not have enough cash;

††††††††††† e. If the system was not working properly and you knew about the breakdown when you started the†††††††††††††††††† ††††††††††† †††††transfer;

f.If circumstances beyond Bankís control (such as fire, flood or systems failure) prevent the transfer, despite reasonable precautions that Bank has taken;

g.If there is any interruption of Service due to hardware, software and/or internet connection problems,

h.If Customer fails to properly install and maintain appropriate software on Customerís home computer;

i. If Customerís computer system was not functioning properly at the time Customer initiates a transaction or if Customer initiates a transaction at a time when Customer knew the systems were not working properly;

j. If there is any disruption of telephone service and/or telecommunication service;

k. If Customer fails to follow online instructions for making a transfer or payment or supply full, correct††† and complete information to properly complete a transaction.

l. If the payee, mail service or other delivery system mishandles or delays handling payments sent by Bank.


6. Notification.

All payments, transfers, and/or fees paid with the Farmers & Merchants Savings Bank's Online Banking Service will appear on Customerís monthly Account statement and also through the Service the next business day following the date the transaction is processed.The date of the payment, the description, and the payment amount will be shown for each payment made through the Service during that statement period.By signing this Agreement and using this Service, Customer is agreeing to accept notification by means of a message sent to the most recent email address that customer has authorized to receive such notices and/or disclosures.It is the responsibility of the Customer to notify Bank immediately of a change of email address.



Fees for Farmers & Merchants Savings Bank's Service shall be payable in accordance with a schedule of charges as established and amended by Farmers & Merchants Savings Bank from time to time.Charges shall be automatically deducted from customer's Account, and Farmers & Merchants Savings Bank shall provide to Customer monthly notice of such debit(s) on Customerís statement.


8.Equipment and Internet Connection.

Customer is solely responsible for the equipment and the initial setup of Customerís personal computer and software used to access the Service.Bank is not responsible for errors or delays or Customerís inability to access the Service caused by Customerís equipment, software or systems.Bank shall not be and is not responsible for the cost of upgrading Customerís equipment to stay current with the Service nor is Bank responsible, under any circumstances, for any damage to Customerís equipment or the data resident thereon.


Farmers and Merchants Savings Bank is not responsible for any electronic virus or viruses that Customer may encounter.Bank encourages its Customers to routinely scan the PC(s), hard drives, diskettes and other storage devises using a reliable updated virus product to detect, repair and/or remove any viruses.Undetected or unrepaired viruses may corrupt and destroy Customerís programs, files and even Customerís hardware.Additionally, Customer may unintentionally transmit the virus to other persons or entities.


Farmers & Merchants Savings Bank is not responsible for establishing or maintaining the Customerís connection to the ISP to use the Service or for any interruption of Service during use.If Customer suspects any technical difficulties in Customerís hardware, software, and/or internet connection while using the Service, it is recommended that Customer accesses the Service the following business day to ensure that transactions have been posted to Customerís account as initiated.


9.Security Procedures.

By accessing the Service, Customer hereby acknowledges that Customer will be entering a protected web site owned by the Farmers & Merchants Savings Bank, which may be used only for authorized purposes.The Bank may monitor and audit usage of the System, and all persons are hereby notified that use of the Service constitutes consent to such monitoring and auditing.Unauthorized attempts to up-load information and/or change information on these web sites are strictly prohibited and are subject to prosecution under the Computer Fraud and Abuse Act of 1986.


10.Notice of Customerís Rights and Liabilities.

Bank may be liable for certain security breaches to the extent required by applicable law and regulation.Bank does not assume any other liability or otherwise guarantee the security of information in transit to or from Bankís facilities or to or from its computer service provider.Please note that Bank reserves the right:

(1)                to monitor and/or record all communications and activity related to the Service; and

(2)                to require verification of all requested transfers in the manner Bank deems appropriate before making the transfer (which may include written verification by Customer).

Customer agrees that the Bankís and its service provider records will be final and conclusive as to all questions concerning whether or not Customerís password was used in connection with a particular transaction.If any unauthorized use of Customerís password occurs Customer agrees to:

(1)                cooperate with Bank, its service providers and law enforcement authorities in identifying and prosecuting the perpetrator; and

(2)                will provide reasonable assistance requested by Bank in recovering any unauthorized transfer of funds.

Customer agrees to NOTIFY THE BANK IMMEDIATEDLY if Customer believes or suspects that Customeríspassword has been lost or stolen.Telephoning is the best way of keeping Customerís possible losses down.Customer could lose all the money in Customerís account (plus Customerís maximum line of credit).Federal law governs limits to the liability incurred by Customer if a password is stolen or an illegitimate transfer is made.If Customer notifies Bank in writing within two (2) business days, Customer can lose no more than $50.If Customer does NOT tell Bank within two (2) business days after Customer learns of the loss or theft of Customeríspassword, and Bank can prove Bank could have stopped someone from using Customeríspassword without Customerís permission if Customer had told Bank, then Customer could lose as much as $500.Also, if Customerís statement shows transfers that Customer did not make, tell the Bank at once.If Customer does not notify the Bank in writing within sixty (60) days after the statement was mailed to Customer, Customer may not get back any money Customer lost after the 60 days if Bank can prove that Bank could have prevented someone from taking the money if Customer had told Bank in time.If a good reason (such as a long trip or hospital stay) kept you from telling us, we will extend the time period.If Customer believes Customeríspassword has been lost or stolen or that someone has transferred or may transfer money from Customerís account without Customerís permission, call (563) 568-3417 during normal business hours listed above.BANK CANNOT ACCEPT NOTIFICATION OF LOST OR STOLEN PASSWORDS OR UNAUTHORIZED TRANSFERS VIA E-MAIL.


11.†† Error and Questions.

In case of errors or questions about Customerís electronic transactions, telephone Bank at (563) 568-3417 from 8:30 a.m. to 6:00 p.m. (Central Time) Monday, or 8:30 a.m. to 3:30 p.m. (Central Time) Tuesday through Friday or contact us at:

Electronic Banking Department

†††† †††††† Farmers and Merchants Savings Bank

†††† †††††† PO Box 9, 201 W Main St

†††† †††††† Waukon IA 52172-0009

as soon as Customer can, if Customer thinks Customerís statement or receipt is wrong or if Customer needs more information about atransaction listed on the statement or receipt.Bank must hear from Customer no later than sixty (60) days after Bank sent Customer the FIRST statement on which the problem or error appeared. Customer will need to:

†††† a. Tell Bank Customerís name and Account number (if any);

†††† b. Describe the error or the transaction Customer is unsure about, and explain as clearly as Customer can why Customer believes it is an error or why Customer needs more information; and

†††† c. Tell Bank the dollar amount of the suspected error.


If Customer tells Bank verbally, Bank may require Customer to send Bank Customerís complaint or question in writing within ten (10) business days. .Bank will determine whether an error occurred within ten (10) business days, (twenty (20) business days if the transfer involved a new account)after Bank hears from Customer and will correct any error promptly.If Bank needs more time, however, Bank may take up to forty-five (45) days (90 days if the transfer involved a new account) to investigate Customerís complaint or question.If Bank decides to do this, Bank will credit Customerís account within ten (10) business days (twenty (20) business days if the transfer involved a new account) for the amount Customer thinks is in error, so that Customer will have use of the money during the time it takes Bank to complete its investigation.If Bank asks Customer to put Customerís complaint or question in writing and Bank does not receive it within ten (10) business days; Bank may not credit Customerís account.An account is considered a new account for 30 days after the first deposit is made, unless each Customer had an established account with Bank before the account was opened.


Bank will tell Customer the results within three business days after completing its investigation.If Bank determines there was no error, Bank will reverse the previously credited amount, if any, and Bank will send Customer a written explanation.††† Customer may ask for copies of the documents Bank used in its investigation.


12.Disclosure of Account Information to Third Parties.

Account information is information you provide to Bank in connection with your accounts and the online banking service.†† The privacy of our Customers and the confidentiality of the personal information provided to Bank by our customers is important.†† The Bankís Privacy Statement is available online at and on the screens Customer accesses to use the online banking service.A copy of the Privacy Statement is also available by request at the Bankís office at 201 West Main St., Waukon, Iowa.††


Bank may disclose information to third parties about Customerís account or the transactions Customer makes:

  1. where it is necessary or desirable for completing transactions or resolving errors involving the Service
  2. in order to verify the existence or condition of Customerís account for a third party, such as a credit bureau merchant;
  3. in order to comply with government agency rules, court orders, or other applicable law;
  4. 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
  5. if permission is given by Customer to the Bank.


13. Authorization to Obtain Information.

Customer agrees that Bank may obtain and review Customerís credit report from a credit bureau, similar entity or other source. Customer also agrees that Bank may obtain information regarding Customerís Payee Accounts in order to facilitate proper handling and crediting of Customerís payments.


14. Termination.

If Customer wants to terminate Customerís access to the Farmers & Merchants Savings Bank's Service, call the Bank at (563) 568-3417. After receipt of Customerís call, Bank will send a written termination authorization for Customerís signature and return to Bank.In order to avoid imposition of the next monthly fee, Bank must receive Customerís written authorization to terminate three (3) days before Customerís service charge is scheduled to assess.RECURRING TRANSFERS WILL NOT NECESSARILY BE DISCONTINUED BECAUSE CUSTOMER TERMINATES ACCESS TO THE SERVICE. IF CUSTOMER WANTS TO MAKE SURE THAT RECURRING TRANSFERS BETWEEN ACCOUNTS ARE STOPPED, CUSTOMER MUST FOLLOW THE PROCEDURES IN THE CANCELING PAYMENTS PARAGRAPH ABOVE.


Bank reserves the right to terminate the Farmers and Merchants Savings Bank's Service, in whole or in part, at any time with or without cause and without prior written notice.In that event, or in the event that Customer gives Bank a termination notice, Bank may (but is not obligated to) immediately discontinue making previously authorized transfers, including recurring transfers and other transfers that were previously authorized but not yet made.Bank also reserves the right to temporarily suspend the Service in situations deemed appropriate by Bank, in its sole and absolute discretion, including when Bank suspects or believes a breach of system security has occurred or is being or may be attempted.Bank may consider repeated incorrect attempts to enter Customerís password as an indication of an attempted security breach.Termination of the Service does not affect Customerís obligations under this Agreement with respect to occurrences before termination.


15. Limitation of Liability.

Except as otherwise provided in this Agreement or by law, Bank is not and shall not be responsible for any loss, injury, or damage, whether direct, indirect, special or consequential, caused by the Farmers and Merchants Savings Bankís Service or the use thereof or arising in any way out of or related to the installation, operation, or maintenance of Customerís PC equipment.


16. Waivers.

No waiver of the terms of this Agreement will be effective, unless in writing and signed by an authorized officer of the Farmers & Merchants Savings Bank.


17. Assignment.

Customer may not transfer, assign or delegate Customerís rights or duties under this agreement.


18. Governing Law.

The laws of the state of Iowa shall govern this Agreement and all transactions hereunder. Customer acknowledges that Customer has reviewed this Customer Agreement, understands the terms and conditions set forth herein, and agrees to be bound hereby.


19. Amendments.

Bank can change a term or condition of this Agreement by mailing or delivering to Customer a written notice at least thirty (30) days before the effective date of any such change.Bank does not need to provide Customer with any prior notice where an immediate change in the terms or conditions of this Agreement is necessary to maintain or restore the security of our system or an account.However, even in these cases, if the change is to be made permanent, Bank will provide Customer with a notice of the change with the next regularly scheduled periodic statement Bank sends Customer or within thirty (30) days unless disclosure would jeopardize the security of our system or an account.Notices mailed or delivered to Customer under this paragraph will be considered effective if mailed to the most recent address Bank shows for Customer in either Bankís Checking or Savings Account records, or e-mail address that Customer authorized for receipt of such notices and/or disclosures.Any use of the online service after the change(s) take(s) effect will constitute Customerís agreement to the changes.



Customer, in consideration of being allowed access to the Farmers & Merchants Savings Bank Service, agrees to indemnify and hold the Farmers & Merchants Savings Bank harmless for any and all losses or damages to the Customer resulting from the use of the Service, to the extent allowed by applicable law.†††


21. Ownership of Material

Software for Online Banking Service is provided by ITI (Information Technology, Inc.) and Service is provided by Fiserv DesMoines.Unauthorized reproduction in whole or part is prohibited.


Fee Schedule:


The basic Online/Internet Banking Service is free. ††The Bill Pay service may include additional fees and charges depending on the account type and services requested.Additional disclosures will be provided when these services are requested.Customers will have an option to pay the fee and continue or cancel the activity in progress to avoid the fee(s).


Payments and transfers using the online service will be counted as debits when calculating the Customerís service charges as outlined on related account disclosures.


Customers may request authorization for internet banking privileges in one of two methods:1) complete an Online Enrollment Request and electronically submit your request to the bank for further processing or 2) by completing a paper copy and submitting it in person or by mail for further processing.Completion and submission of this form for use of the Internet Banking Service signifies agreement by the owners and authorized signatories of such accounts to the terms and conditions set forth in this Online Banking (Internet) Agreement.