MASCOMA BANK

FEDERAL ELECTRONIC FUNDS TRANSFER ACT DISCLOSURE (REG E)

The following important information is for our customers who have authorized electronic transfers. Please read this carefully and keep with your account records.

The Federal Electronic Funds Transfer Act and regulations adopted there under provide that we disclose pertinent information to you about electronic fund transfers to or from your account. Electronic funds transfers include, but are not limited to, automated teller machine transfers, point of sale transfers, E-checks, direct deposit or withdrawal of funds and transfers initiated by telephone and computer. These transfers can be used to transfer funds, pay bills, make loan payments and get information about account balances, deposits and withdrawals. It includes all transfers resulting from debit card transactions and E-checks, including those that do not involve an electronic terminal at the time of transaction.

E-Checks- With this type of transaction, a check you write is converted to an electronic transaction at the time of payment. The merchant will electronically read your check and convert it to an electronic transaction. Any disputes you have about goods and services, for which you pay with an E-check, must be settled directly with the merchant.

ACH and Wire Transfers- This disclosure is subject to Article 4A of the Uniform Commercial Code-Fund Transfers as adopted in the state in which you have your account with us. If you originate a fund transfer for which Fedwire is used, and you identify by name and number a beneficiary financial institution, an intermediary financial institution or a beneficiary, we and every receiving or beneficiary financial institution may rely on the identifying number to make payment. We may rely on the number even if it identifies a financial institution, person or account holder other than the one named. You agree to be bound by automated clearinghouse association rules. These rules provide, among other things, that payments made to you, or originated by you, are provisional until final settlements made through a Federal Reserve Bank or payment is otherwise made as you provided in article 4-A-403 (a) of the Uniform Commercial Code. If we do not receive such payment, we are entitled to a refund from you in the amount credited to your account and the party originated such a payment will not be considered to have paid the amount so credited. If we receive a credit to an account you have with us by wire or ACH, we are not required to give you any notice of the payment or credit.

Documentation of Transfers- If you have arranged to have direct deposits made to your statement account at least once every 60 days from the same person or company, you can call us at 603-443-5500 or 800-707-3553 to find out whether or not the deposit has been made. You will get a monthly statement.

Right to Stop Payment- If you told us in advance to make regular payments out of your account, you can stop any of those payments. Here’s how: Call or write us using the information at the end of the disclosure in time for us to receive your request three (3) business days or more before the payment is scheduled to be made. If you order us to stop one of these payments three (3) business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages. We will charge you for each stop payment you place in accordance with our current service charge schedule. 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 Transfers Varying in Amount- If the preauthorized regular transfers from your account may vary in amount, the person you are going to pay should 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 you set.

Limitations of Frequency of Transfers- Transfers from a Money Market or Statement Savings account to another account or third parties by preauthorized, automatic, telephone or computer transfer are limited to six (6) per statement cycle.

Fees- We do not charge for direct deposits or preauthorized payments from any type of account.

Customer Liability- If your statement shows unauthorized transfers from your account or if you believe that an electronic fund transfer has been made without your permission using information from your check, tell us at once. You could lose all the money in your account (plus your maximum overdraft line of credit or bounce limit). If you do not tell us within 60 days after we sent you the first statement upon which the problem appears, 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 long trip or hospital stay) kept you from telling us, we will extend the time period.

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 the transfer would go over the credit limit of your overdraft line or bounce limit, if any

  3. If your account is frozen because of a court order or some similar reason

  4. If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken.

Debit Card-Automated Teller Machine or Point of Sale (POS)- Unauthorized Transfers-Liability Disclosure-Tell us at once if you believe your card or Personal Identification Number (PIN) has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account (plus your maximum overdraft line of credit or bounce limit). If you tell us within two (2) business days, you could lose no more than $50.00 if someone used your card or PIN without your permission. If you do not tell us within two (2) business days after you learn of the loss or theft of your card or PIN and we can prove we could have stopped someone from using your card without your permission, if you had told us, you could lose as much as $500.00.

EVENT

LIABILITY

Lost card, customer notifies bank within two (2) business days of discovering loss (PIN based transactions)

Lesser of $50.00 or unauthorized charges

Lost card, customer does not notify bank after discovering loss ( PIN based transactions)

Lesser of $500.00 or unauthorized charges

Unauthorized transfer appearing on periodic statement, customer notifies bank within 60 calendar days

Lesser of $50.00 or unauthorized transactions

Unauthorized transfer appearing on periodic statement, customer does not notify bank

Lesser of $500.00 or unauthorized transfers occurring prior to 60 calendar days after the statement and unlimited liability for transfers after 60 calendar days after statement.

Error Resolution Procedures- In case of errors or questions about electronic transfers: telephone or write us at the number or address given below, 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 you the first statement on which the problem or error appeared. The information we will need:

  1. Your name and account number.

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

  1. The dollar amount of the suspected error. If you tell us orally, we may require that you send us your complaint or questions in writing within 10 business days.

We will tell you the results of our investigation within 10 business days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days to investigate your complaint or questions. If we decide to do this, we will credit your account within 10 business days 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. We will tell you the results within three (3) business days after completing our investigation. You may ask for copies of the documents that we used in our investigation.

Error Resolution Concerning Point of Sale (POS) Transactions- Everything is the same except if we need more time we may take up to 90 days to investigate your complaint or questions. If we decide to do this, we will credit your account within 10 business days for the amount you think is in error, so that you will have use of the money during the time it takes us to complete our investigation. The time periods may be extended from 10 business days to 20 business days for transactions which were not initiated within a state; or occurred within 30 days after the first deposit to the new account was made.

Refund of Foreign ATM Fee- If you are physically unable to access a Mascoma Bank ATM after 5:00 PM and incur a foreign ATM fee, upon request and with evidence of the fee on a receipt it will be refunded to you.

Unauthorized Use of MasterCard Card- Effective January 1, 1998, your liability for unauthorized use of your debit card with the MasterCard logo (“your card”) when it is used as a MasterCard card will not exceed (a) $0 if all conditions set forth below have been met or (b) if those conditions have not been met, the lesser of $50.00 or the amount of money, property, labor, or services obtained by the unauthorized use before notification to us. Zero liability will apply only if (1) you can demonstrate that you have exercised reasonable care in safeguarding your card from risk of loss or theft; and (2) you have not reported two (2) or more incidents of unauthorized use to us within the preceding 12 months; and (3) your account is in good standing. “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. Remember to report your card lost or stolen or any unauthorized transactions immediately. This will help prevent unauthorized access to your account and minimize any inconvenience. For more information, or if you have any questions, visit one of our relationship bankers at any branch location. If your card is lost or stolen, please notify Mascoma Bank immediately at 603-448-3650 or 1-888-627-2662 (1-888-Mascoma) during normal banking hours. After hours please call 1-866-546-8273.

Account Information Disclosure- We will disclose information about your account or transfers you make:

  1. When it is necessary to complete transfers, or

  2. In order to verify the existence and condition of your account for a third party, such as a credit bureau, or

  3. In order to comply with government agency or court orders, or

  4. If you give us written permission

Mailing Address, Telephone Number and Business Day Disclosure-

  1. Our mailing address is PO Box 4399 White River Jct., VT 05001

  2. Our telephone number is 603-448-3650 or toll free 1-888-627-2662 (1-888 MASCOMA) during business hours. Our business days are Monday through Friday, holidays are not included.