This Agreement establishes the rules that cover your electronic access to your account(s) at Select Federal Credit Union through the Virtual Branch system. You will be bound by this Agreement when you enroll in Virtual Branch. You also accept all the terms and conditions of this Agreement by using the Virtual Branch. Please read it carefully and retain for your records.

Throughout these Agreements and Disclosures, the references to "We", "Us", "Our" and "Credit Union" mean SELECT FEDERAL CREDIT UNION. The words "You" and "Your" mean each person applying for and/or using any of the services described herein. "Account" means any account or accounts established for You as set forth in these Agreements and Disclosures. Our Personal Computer Account Access System is hereinafter referred to as "On-Line Banking (Virtual Branch)". For joint accounts, read singular pronouns in the plural. This Agreement and Disclosure Statement (hereinafter “Agreement”) explains and describes the types of Electronic Funds Transfers which are available to you with our Virtual Branch system. This Agreement also contains your rights and responsibilities concerning transactions that you make through the Virtual Branch, including your rights under the Electronic Funds Transfer Act.

To qualify for access to the Virtual Branch, you must be a Credit Union member in good standing. Other conditions may apply.

ENROLLMENT FOR VIRTUAL BRANCH

If we approve SFCU Virtual Branch for your accounts you will require the following information for enrollment:

• The member Account Number, Last 4 digits of Social Security Number and Address Number are required for initial enrollment to Virtual Branch.
• Users will create a personalized Logon ID and Security Code.
• Logon IDs can be between 6 and 50 alpha numeric characters.
• Security Codes must be exactly 8 alpha-numeric characters. A minimum of 2 numeric and 2 alpha characters is required.

You accept responsibility for periodically changing your Logon ID and protecting the integrity of the Logon ID to protect unauthorized transactions and account access. Granting access to your account via Virtual Branch to any non-owner will make you financially liable for all losses or misuse of your account(s).

1. VIRTUAL BRANCH (SFCU Online Banking)

Your account can be accessed under SFCU Virtual Branch via personal computer and/or smart phone. You can use Virtual Branch and Mobile Banking 7 days a week, 24 hours a day, 365 days a year, although some or all of the Virtual Branch services may not be available occasionally due to emergency or scheduled system maintenance. In additional, this service may be interrupted for a short time each day for data processing. The use of your Logon ID is required to access Virtual Branch. You can perform the following transactions on ALL ACCOUNT(S) TO WHICH YOU ARE AUTHORIZED AND HAVE BEEN GIVEN ACCESS TO:

• Transfer funds from your savings, checking, loan, and Club accounts.
• Obtain balances and other account information on share/savings and draft/checking accounts in addition to share certificates, IRAs, and loans.
• Make loan payments from your savings, checking, and Club accounts.

• Access your Line of Credit accounts.
• Determine if a particular item has cleared.

• Obtain tax information on amounts earned on savings and checking accounts or interest paid on loan accounts.
• View check copies.
• Verify the last date and amount of your payroll deposit.
• Make bill payments to preauthorized creditors.
• Make A2A transfer to other authorize accounts
• Review 90 days of history on all accounts.
• Apply for a loan.

We reserved the right to fuse any transaction which would draw upon insufficient funds, exceed a credit limit, lower an account below a required balance, or otherwise require us to increase our required reserve on the account. We may set other limits. We may refuse to honor any transaction for which you don’t have sufficient available verified funds. The service will discontinue if no transaction is entered after numerous unsuccessful attempts to enter a transaction and there may be limits on the duration of each access.

• There is no limit to the number of inquires and withdrawal requests you may make in any one (1) day.
• See Section 3 for transfer limitations that may apply to these transactions.

2. SEFCU Bill Pay

We process bill payment transfer requests only to those creditors the Credit Union has designated in the User Instructions and such creditors as you authorize and for whom the Credit Union has the proper vendor code number. We will not process any bill payment transfer if the required transaction information is incomplete.

We will withdraw the designated funds from your checking account for bill payment transfer by the designated cutoff time on the date you schedule for payment. We will process your bill payment transfer within a designated number of days before the date you schedule for payment. You must allow sufficient time for vendors to process your payment after they receive a transfer from us. Please leave as much time as though you were sending your payment by mail. We cannot guarantee the time that any payment will be credited to your account by the vendor.

• There is no limit on the number of bill payments per day.
• The maximum amount of bill payments each day is $3,000.00 and per week is

$9, 999.99, if there are sufficient funds in your account.

3. TRANSFER LIMITATIONS

Federal regulations limit transfers for share/savings accounts and money market accounts, if applicable. For all savings accounts during any statement period, you may not make more than six (6) preauthorized, automatic, telephone, or Internet transfers and withdrawals from each account of yours or to a third party. This includes transfers by phone, fax, wire and cable, audio response, overdraft transfers to checking and Internet instruction. If you exceed the transfer limitations set forth above in any statement period, the transfer may not be completed. We will not be required to complete a withdrawal or transfer from your account(s) if you do not have enough money in the designated account(s) to cover the transaction; however, we may complete the transaction.

You agree not to use Virtual Branch to initiate a transaction that would cause the balance in your designated account(s) to go below zero. If you have a line-of-credit, you agree not to use Virtual Branch to initiate a transaction that would cause the outstanding balance of your line-of-credit to go above your credit limit. We will not be required to complete such a transaction, but if we do, you agree to pay us the excess amount or improperly withdrawn amount or transferred amount immediately upon our request. We also will refuse to complete your Virtual Branch transactions if we have canceled your Virtual Branch access, or we cannot complete the transaction for security reasons.

The functions and limitations of Virtual Branch may be updated, without notice, at the option of the Credit Union in order to provide improved service to the membership.

4. CONDITIONS OF EFT SERVICES FOR VIRTUAL BRANCH

· Security of Access Code. You may use one (1) or more access codes with your electronic fund transfers. You are responsible for safekeeping your access codes. You agree not to disclose or otherwise make your access codes available to anyone not authorized to sign on your accounts. If you authorize anyone to use your access codes that authority shall continue until you specifically revoke such authority by notifying the Credit Union. You understand that any joint owner you authorize to use an access code may withdraw or transfer funds from any of your accounts. If you fail to maintain the security of these access codes and the Credit Union suffers a loss, we may terminate your EFT services immediately.

· Joint Accounts. If any of your accounts accessed under this Agreement are joint accounts, all joint owners, including any authorized users, shall be bound by this Agreement and, alone and together, shall be responsible for all EFT transactions to or from any savings and checking or loan accounts as provided in this agreement. Each joint owner, without the consent of any other account owner, may, and is hereby authorized by every other joint account owner, make any transaction permitted under this Agreement. Each joint account owner is authorized to act for the other account owners, and the Credit Union may accept orders and instructions regarding any EFT transaction on any account from any joint account owner.

5. FEES AND CHARGES

There are certain fees and charges for EFT services. Currently there is no monthly service fee for using Virtual Branch. For a current listing of all applicable fees, see our current Schedule of Fees and Charges that was provided to you at the time you applied for or requested these electronic services. From time to time, the charges may be changed. We will notify you of any changes as required by applicable law. If at that time, you choose to discontinue using Virtual Branch, you must notify us in writing.

6. MEMBER LIABILITY

You are responsible for all transactions you authorize using your EFT services under this Agreement. If you permit someone else to use an EFT service, your access code, you are responsible for any transactions they authorize or conduct on any of your accounts.

Also, if your statement shows transfers that you did not make including those made by card, access 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 lost after the 60 days if we can prove that we could have stopped someone from making the transfers if you had told us in time. If a good reason (such as a hospital stay) kept you from telling us, we will extend that time periods.

7. ACCOUNT STATEMENTS

Transfers and withdrawals made through any ATM or POS terminal, debit card transactions, audio response transactions, preauthorized EFTs, online/PC transactions or bill payments you make will be recorded on your periodic statement. You will receive a statement monthly unless there is no transaction in a particular month. In any case, you will receive a statement at least quarterly.

8. ACCOUNT INFORMATION DISCLOSURE

We will disclose information to third parties about your account or the transfers you make:

· As necessary to complete transfers;

· To verify the existence of sufficient funds to cover specific transactions upon the request of a third party, such as a credit bureau or merchant;

· If your account is eligible for emergency cash and/or emergency card replacement services and you request such services, you agree that we may provide personal information about you and your account that is necessary to provide you with the requested service(s);

· To comply with government agency or court orders; or

· If you give us written permission.

9. BUSINESS DAYS

Our business days are Monday through Saturday, excluding holidays.

10. CREDIT UNION LIABILITY FOR FAILURE TO MAKE TRANSFERS

If we do not to complete a transfer to or from your account(s) on time and/or in the correct amount, and we have agreed to perform such transfer(s) (with certain exceptions), we may be liable for your losses or damages. However, we will not be liable for direct or consequential damages in the following events:

• If we have terminated this Agreement.
• If through no fault of ours, there is not enough money in your account(s) to complete the transaction, if any funds in your accounts necessary to complete the transaction are held as uncollected funds pursuant to our Funds Availability Policy Disclosure, or if the transaction involves a loan request exceeding your credit limit.
• If you used your access code in an incorrect manner.
• If circumstances beyond our control (such as fire, flood, or power failure) prevent the transaction.
• A legal order directs us to prohibit withdrawals from the account(s).
• If the money in your designated account(s) are subject to legal process or other claim.
• If funds in your account are pledged as collateral or frozen because of a delinquent loan.
• If you, or anyone authorized by you, commits any fraud or violates any law or regulation.
• If the electronic transfer is not completed as a result of your willful or negligent use of your card, access code , or EFT facility for making such transfers.
• If the computer or phone equipment you use to conduct online/PC transactions is not working properly and you know or should have know about the breakdown when you started the transaction.
• If you have bill payment services, we can only confirm the amount, the participating merchant, and date of the bill payment transfer made by the Credit Union. For any other error or question you have involving the billing statement of the participating merchant, you must contact the merchant directly. We are not responsible for investigating such errors.
• Any other exceptions as established by the Credit Union.

11. BILLING ERRORS

In case of errors or questions about electronic funds transfers from your savings and checking accounts or if you need more information about a transfer on the statement or receipt, telephone us at the following number or send us a written notice to the address below as soon as possible. We must hear from you no later than sixty (60) days after we sent the first statement on which the problem appears.

Call us at:

210-223-6561

(888) 304-5309

or write to:

Select Federal Credit Union

1914 Pan Am Expressway N

San Antonio, TX 78208

Fax: (210)227-1825

a) Tell us your name and member number.

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

c) Tell us the dollar amount of the suspected error.

See Membership Booklet and Disclosures for more information.

12. PRE-AUTHORIZED PAYMENTS.

You may not use Virtual Branch to enter into pre-authorized payment arrangements.

13. OUR RULES AND REGULATIONS AND OTHER AGREEMENTS.

Your designated account(s) may also be governed by other agreements between you and us. The terms and conditions of the deposit agreements and disclosures for each of your Credit Union account(s) as well as your other agreements with the Credit Union such as loans continue to apply notwithstanding anything to the contrary in this Agreement.

14. EVIDENCE

If we go to court for any reason, we can use a copy, microfilm, microfiche, or photograph of any document or person to prove what you owe or that a transaction has taken place and the copy, microfilm, microfiche, or photograph will have the same validity as the original.

15. TERMINATING THIS AGREEMENT

You may terminate this Agreement at any time by notifying us in writing and by discontinuing the use of your Logon ID. You also agree to notify any participating merchants that authority to make bill payment transfers has been revoked. We may also terminate this Agreement at any time by notifying you orally or in writing. If we terminate this Agreement, we may not notify any participating merchants making preauthorized debits or credits to any of your accounts that this Agreement has been terminated and that we will not accept any further preauthorized transaction instructions. We may also program our computer not to accept your access for any EFT service. Whether you or the Credit Union terminates this Agreement, the termination shall not affect your obligations under this Agreement for any electronic transaction made prior to termination.

16. NOTICES

All notices from us will be effective when we have mailed them or delivered them to the last known address in the Credit Union’s records. Notices from you will generally be effective when received by the Credit Union at the address specified in this Agreement. We reserve the right to change the terms and conditions upon which this service is offered. We will mail notice to you at least 21 days before the effective date of any change. Use of this service is subject to existing regulations governing the Credit Union account and any future changes to those regulations.

17. GOVERNING LAW

This Agreement is governed by the Bylaws of the Credit Union, federal laws and regulations, the laws and regulations of the state of Texas, and local clearinghouse rules, as amended from time to time. Any disputes regarding this Agreement shall be subject to the jurisdiction of the court of the county in which the Credit Union is located.

18. ENFORCEMENT

You are liable to us for any losses, costs or expenses we incur resulting from your failure to follow this Agreement. You authorize us to deduct any such losses, costs or expenses from your account without prior notice to you. If we bring a legal action to collect any amount due under or to enforce this Agreement, we shall be entitled, subject to applicable law, to payment of reasonable attorney’s fees and costs, including fees on any appeal, bankruptcy proceedings, and any post judgment collection actions.