This Electronic Fund Transfer disclosure does not apply to any accounts other than consumer accounts, as defined by Regulation E.

Indicated 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 Funds Transfers Initiated By Third Parties. You may authorize a third party to initiate electronic funds 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 Clearinghouse (ACH) or other payments network. Your authorization to the third party to make these transfers can occur in a number of ways. In some cases, your authorization can occur when the merchant posts a sign informing you of their policy. In all cases, the transaction will require you to provide the third party with your account number and bank information. This information can be found on your check as well as on a deposit or withdrawal slip. Thus, you should only provide your bank 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 funds transfers. Examples of these transfers include, but are not limited to:

• Preauthorized credits. You may make arrangements for certain direct deposits to be accepted into your checking or savings account(s).
• Preauthorized payments. You may make arrangements to pay certain recurring bills from your checking or savings account(s).
• Electronic check conversion. You may provide your check to a merchant or service provider who will scan the check for the encoded bank and account information. The merchant or service provider will then use this information to convert the transaction into an electronic funds transfer. This may occur at the point of purchase, or when you provide your check by other means such as by mail or drop box.
• Electronic returned check charge. Some merchants or service providers will initiate an electronic funds transfer to collect a charge in the event a check is returned for insufficient funds.

NEX Telephone Banking Transfers - types of transfers - You may access your account by telephone 24 hours a day at 1-877-399-6391 using a touch tone phone, your account number, and your personal identification number, to:

• transfer funds from checking to checking
• transfer funds from checking to savings
• transfer funds from savings to checking
• transfer funds from savings to savings
• transfer funds from line of credit to checking
• make payments from checking or savings to loan accounts with us
• get information about:
  • the account balance of checking accounts
  • the account balance of savings accounts

Please also see Limitations on frequency of transfers section regarding limitations that apply to telephone transfers.

NEXITY ATM CARD ATM Transfers - types of transfers and dollar limitations - You may access your account(s) by ATM using your NEXITY ATM CARD and personal identification number or NEXITY DEBIT CARD and personal identification number, to:

• get cash withdrawals from checking account(s) with an ATM/DEBIT CARD
  • you may withdraw no more than $1,000.00 per day
• get cash withdrawals from savings account(s) with an ATM/DEBIT CARD
  • you may withdraw no more than $1,000.00 per day
• transfer funds from savings to checking account(s) with an ATM/DEBIT CARD
• transfer funds from checking to savings account(s) with an ATM/DEBIT CARD
• get information about:
  • the account balance of your checking accounts
    • with an ATM CARD
    • with a DEBIT CARD
  • the account balance of your savings accounts
    • with an ATM CARD
    • with a DEBIT CARD

Some of these services may not be available at all terminals.

Please also see Limitations on frequency of transfers section regarding limitations that apply to ATM transfers.

Types of NEXITY DEBIT CARD Point-of-Sale Transactions - You may access your checking or money market account(s) to purchase goods (in person, online, or by phone), pay for services (in person, online, or by phone), get cash from a merchant, if the merchant permits, or from a participating financial institution, and do anything that a participating merchant will accept.

Point-of-Sale Transactions - dollar limitations - Using your card:

• you may not exceed $1,000.00 in transactions per day

Please also see Limitations on frequency of transfers section regarding limitations that apply to debit card transactions.

INTERNET BANKING Computer Transfers - types of transfers - You may access your account(s) by computer using your user identification and password at www.nexitybank.com, to:

• transfer funds from checking to checking
• transfer funds from checking to savings
• transfer funds from savings to checking
• transfer funds from savings to savings
• transfer funds from line of credit to checking
• transfer funds from line of credit to savings
• make payments from checking or savings to loan accounts with us
• make payments from checking or savings to third parties
• get information about:
  • the account balance of checking accounts
  • the account balance of savings accounts
  • check image, statement image

Please also see Limitations on frequency of transfers section regarding limitations that apply to computer transfers.

Limitations on frequency of transfers. In addition to those limitations on transfers elsewhere described, if any, the following limitations apply:

• For security reasons, there are other limits on the number of transfers you can make by ATM.
• For security reasons, there are other limits on the number of transfers you can make by telephone.
• For security reasons, there are other limits on the number of transfers you can make by debit card.
• For security reasons, there are other limits on the number of transfers you can make by computer.

Electronic Agreements.

You agree that the Bank may make agreements with you by electronic means. Your authorization and consent to such an agreement, or delivery of your agreement may be made by means of a personal computer. All agreements entered into by means of a personal computer will be deemed valid, authentic and shall have the same legal effect as agreements entered into on paper. You further agree that electronic copies of communications are valid as "originals" and you will not contest the validity of the electronic copies, absent proof of altered data or tampering.

FEES

• We do not charge for direct deposits to any type of account.
• We do not charge for preauthorized payments from any type of account.

Except as indicated elsewhere, we do not charge for 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 any transfer to or from your account using one of our automated teller machines or point-of-sale terminals.
• Preauthorized 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, you can call us at 1-877-738-NEX1, or access our internet site at www.nexitybank.com to find out whether or not the deposit has been made.
• Periodic statements.
       You will get a monthly account statement from us for your checking or savings accounts.

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 brochure in time for us to receive your request 3 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 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.

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 fire 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.

* Generally. Tell us AT ONCE if you believe your card and/or code 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). If you tell us within 2 business days, you can lose no more than $50 if someone used your card and/or code without your permission. (If you believe your card and/or code has been lost or stolen, and you tell us within 2 business days after you learn of the loss or theft, you can lose no more than $50 if someone used your card and/or code without your permission.)

If you do NOT tell us within 2 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 $500.

Also, if your statement shows transfers that you did not make, 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 will extend the time periods.

* Additional Limits on Liability for MasterMoney™ DEBIT CARD, when used for point-of-sale transactions. You will not be liable for any unauthorized transactions using your MasterMoney™ 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 lesser 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 limitation on liability does not apply to PIN-based transactions or transactions not processed by MasterCard.

(b) Contact in event of unauthorized transfer. If you believe your card and/or code has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, call us at the telephone number listed in this brochure immediately.

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 brochure, 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 this 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.

NEXITY BANK
P.O. BOX 43600
BIRMINGHAM, ALABAMA 35243-3600
Business Days: Monday through Friday
Excluding Federal Holidays
Phone: 1-877-738-NEX1

MORE DETAILED INFORMATION IS AVAILABLE
ON REQUEST

Customer Service 1-877-738-6391
Telephone Banking 1-877-399-6391
www.nexitybank.com

180844-020 Rev. 2/04
© 1988, 1992, 1995 Bankers Systems, Inc., St. Cloud, MN
Form AIB-TIS   8/4/95   Custom TCM-1m,2Bag,3k,4n

Your Deposit Account Terms and Conditions Disclosure | Truth-in-Savings Disclosure | Your Ability to Withdraw Funds Disclosure | Electronic Funds Transfers Disclosure | Notice of ATM User Disclosure | Personal Overdraft Protection Guarantee Agreement | Demand Deposit Line of Credit Agreement | Home Equity Disclosures | Customer Complaint Policy