Deposit Account Agreement

Note: This Deposit Account Agreement is being provided to you so you are aware of the terms that govern your account with Impact Bank.

Thank you for opening an account with Impact Bank. This Agreement explains the terms and conditions of the checking, savings and money market and time deposit accounts we offer. At account opening, you also received a copy of our Truth In Savings Disclosure, including rate and fee information, a Funds Availability Policy Disclosure, and an Electronic Funds Transfer Disclosure, if applicable, all of which are part of this Agreement. Some deposit accounts and services such as IRAs, Internet Banking, Internet Bill Payment, and automated telephone transfers are also subject to separate agreements and disclosures. In this Deposit Agreement, each and all of the depositors are referred to as "you" and "your." Impact Bank is referred to as “Bank”, “we”, “our” and “us”. By maintaining an account with us, you consent to the terms of this Agreement.

Effect of State and Federal Laws and Regulations. If a law or regulation conflicts with any provision of this Agreement, the applicable law or regulation will control. Where a law or regulation may be varied by agreement, the terms of this Agreement will control. If there is a conflict between this Agreement and something said by one of our employees, we will follow this Agreement. You agree to this method of settling any differences.

Ownership and Authorized Signatures. For all purposes relating to your account, the Bank will act on the direction or signature of the person(s) on the Signature Card or other evidence of account. We will require such person's signature on the Card before honoring his or her transaction requests. You authorize us to rely on the Signature Card or other evidence of account, without further inquiry.

In some cases, you may be permitted to require more than one authorized signature for transactions against your account by designating a specific number of required signatures on the Signature Card or in other acceptable written form. In the absence of such designation, we may honor any order or instruction against your account which bears at least one authorized signature. We may honor withdrawal instructions on an account from any authorized signer even if payable to them, for their benefit, to cash or for deposit to their personal account. We will not be responsible for investigating or questioning withdrawals by persons authorized to act on your account. We will not be liable to you for refusing to honor signed instructions if we believe in good faith that the signature is not genuine.

Privacy. The Bank will obey an order or subpoena for information about your account issued by a Court or an authorized governmental body which appears valid on its face and names one or more owner(s) of an account. We will also release information when necessary to complete a transaction, when an inquiry is made concerning sufficiency of funds to cover a check you have written and as stated in our Electronic Funds Transfer Disclosure. You authorize us to release this information without prior notice to you.

Garnishments, Levies and Other Legal Proceedings. If your account becomes involved in a legal proceeding, your use of it may be restricted. The Bank may notify you of the legal proceeding by telephone or at the account address in our records. We will not resist or challenge any legal process directed against your account. If we are served with an order of garnishment or tax levy naming some, but not all, of the joint owners, we are required to hold all funds in the joint account, up to the dollar limit of the garnishment or levy. Unless you notify us in writing that you wish to continue separate accounts, the joint account will be reestablished with the same joint owners as of the date we answer the garnishment or levy. We are not required to assert any exemptions you may have under state law. We will rely solely on our account records in responding to a garnishment, levy or other Court proceeding. If you believe that the garnishment, levy or other order is improper, you must take action through the Court to resolve the issue. If we receive notice of legal action against your account, we may exercise our right of offset or assert our security interest to collect money you owe us. We may charge your account a fee for responding to a garnishment or levy. We will suspend payment of a check drawn on your account upon receipt of a garnishment, levy or other legal proceeding, unless we have certified or otherwise guaranteed the check; we have paid the check in cash; we have settled for the check without the right to revoke settlement; our Legal Process Cutoff Hour has passed; or we have otherwise become legally accountable for the check. Our Legal Process Cutoff Hour is 9:00 a.m. of the next banking day after the banking day on which we receive the check. We may change our Legal Process Cutoff Hour from time to time by posting notice of the change in our offices.

You agree to be liable to us, to the extent permitted by law, for any loss, costs, or expenses that we may incur as a result of any dispute or legal proceeding involving your Account. You authorize us to deduct any such loss, costs, or expenses from your Account without prior notice to you or to bill you separately. This obligation includes disputes between you and us involving your Account and situations where we become involved in disputes between you and an authorized signer, a joint owner, or a third party claiming an interest in your Account. It also includes situations where any action taken on your Account by you, an authorized signer, a joint owner, or a third party causes us to seek the advice of an attorney, whether or not we actually become involved in a dispute.

Right of Setoff. If you owe the Bank money and it becomes due, we have the right under the law (called setoff) and under this Agreement (by which you grant us a security interest in your account) to use the money from your account to pay the debt owed the Bank (including but not limited to overdrafts, endorsements, guarantees, loans and other obligations) even if withdrawal results in an interest penalty or dishonor of checks. In the case of a partnership or joint account, each partner or joint owner agrees that we can use all money in the partnership or joint account to satisfy the individual obligations of any partner or joint owner, irrespective of who contributed funds to the partnership or joint account. Similarly, each partner or joint owner agrees that we may use the money in his or her individual account to satisfy obligations arising from the joint account or partnership account. This right of setoff and security interest applies to present and future indebtedness owed the Bank but does not apply to retirement accounts.

Joint Accounts. Whenever we refer to a "joint account" or "joint owner" in this Agreement or any other account document, we mean that the owners hold the account as joint tenants with rights of survivorship and not as tenants in common. Unless otherwise stated on your Signature Card or other evidence of account, you agree that it is your intention to create a joint tenancy with the right of survivorship and not tenants in common in any account you own jointly with another person(s). If one or more of the joint owners dies, you agree that his or her interest in the account shall pass to the surviving owner or owners, subject to our right of setoff and security interest described above. You must make special arrangements with us for any tenants in common (joint tenants without survivorship) account. Tenants in common accounts must be expressly identified on the Signature Card or other evidence of account. Unless otherwise stated on your Signature Card or other evidence of account, any one or more of the joint owners, their legal representative(s), or an agent appointed in writing by any one or more joint owner(s), may withdraw part or all funds on deposit, close or give us other instructions regarding the joint account, including pledging the account funds as collateral to us for any obligation, whether that of one or more Account Holders or of a third party. We will continue to follow such instructions until we receive written notice to change them and have had a reasonable opportunity to act upon the change notice. Each joint owner appoints the other(s) as his or her agent(s) to endorse, deposit, withdraw, and conduct business for the account. Acting as an agent, any joint owner may endorse an item payable to the order of any other joint owner or owners of the account. Once endorsed the money may be taken in cash or deposited in the joint account. If we make any payment following these rules, you release us from liability. Once a joint account is opened, one owner cannot remove another from the title of the account. We have the right to endorse any checks, drafts, or other items payable to the order of any joint owner and deposit them in the joint account.

Payable On Death Accounts. If your account is not a business or fiduciary account, you may designate one or more individuals, fiduciaries or nonprofit religious or charitable organizations to receive payment of the balance of your account upon your death by signing a Payable On Death Account Contract with us. We will not pay the balance of the account under the Payable On Death Account Contract until after the death of the last surviving joint owner. Any one or more joint owner(s) may revoke the Payable On Death Account Contract at any time by providing written notice to us. We will deem the Payable On Death Account Contract to be revoked by any new signature card which changes ownership of the account. The Bank will not accept a Payable On Death Account Contract if any of the account holders is a minor.

Trust, Custodial or Other Fiduciary Accounts. If you create a trust, custodial or other fiduciary account, you authorize the Bank to act on the signature and follow the direction of your trustee, custodian or other named fiduciary. Upon our request, the trustee(s), custodian, or other fiduciary will supply to us a copy of any trust agreement or other legal documentation covering the account. You agree that we are not responsible for monitoring or supervising the actions of your fiduciary or for your fiduciary's noncompliance with any law or trust or custodial document(s), whether or not the Bank has knowledge of the contents of such documents. You agree to assume full responsibility for and to indemnify us against the acts of your fiduciary. You agree that your fiduciary is fully authorized to open or close the account, make withdrawals, endorse items payable to you, draw checks and other items against the account, incur and pay charges, change ownership, authorize additional signers and conduct all other business on your fiduciary account.

If you act as custodian, trustee or other fiduciary on an account, you represent and warrant to the Bank each time you transact on the account, that you are duly authorized with full power and authority to undertake the transaction. You promise to act on the account in accordance with your duties as custodian or trustee and to assume full responsibility for all transactions on or against the account. You agree to indemnify and hold us harmless against any liability, claim or expenses which the Bank may incur as a result of your handling of the account.

Relationship Accounts. For the purpose of providing benefits to you or your joint owner(s) based on your or your joint owner(s) overall banking relationship with us, you consent to the combination of the balances of two or more products to create a "relationship". The current Truth in Savings Disclosure for any product shall control the definition of Relationship for that product. You authorize any and all joint owner(s) on your account(s) as your agent(s) to release information about your account balances included in the Relationship to individuals who also have account balances as part of the Relationship even if such individual(s) is not a joint owner on your account(s).

Accounts for Minors. You may open a joint account with a minor child under the age of 18 years. You and the minor will hold the account as joint tenants with rights of survivorship and not as tenants in common. If the minor is under the age of 16 years, we reserve the right to refuse to transact business on the account for the minor. If the minor is age 16 years or older, unless you instruct us that the minor is not to have the ability to sign on the account, we may pay out any sum deposited and any interest earned upon the written order of the minor.

We may open an account in a minor's name only, if the minor is of sufficient age and a parent or guardian signs a written guaranty.

Business Accounts. Corporations, partnerships, sole proprietorships, limited liability companies, and unincorporated associations must provide us with evidence to our satisfaction of the authority of the individuals who sign the signature card to act on behalf of the account holder. On any transactions involving the account, we may act on the instructions of the person(s) authorized in the resolutions, banking agreement, or certificate of authority to act on behalf of the account holder. You agree to notify us in writing of any changes in the person(s) authorized or the form of ownership. If we receive conflicting instructions or a dispute arises as to authorization with regard to the handling of the account, you agree we may place a hold on the account until such conflict or dispute is resolved to our satisfaction and we will not be liable for dishonored items as a result of such hold.

Death or Incompetence. A customer's death or a legal adjudication of incompetence does not revoke our authority to accept, pay or collect items until we know of the fact and have a reasonable opportunity to act upon it. Even with knowledge, we may, for 10 days after the date of death, pay checks drawn on or before the date of death, unless ordered to stop payment by a person claiming an interest in the account.

Stopping Payment On Money Orders, Cashier's, Teller's or Official Checks (Bank Checks). Your ability to stop payment on a Bank Check you purchase from us is limited and should not be confused with your right to stop payment on a personal check written on your account. You may only request stop payment if a Bank Check has been lost, stolen or destroyed. We may impose a 90-day waiting period after issuance of the Bank Check before we refund or reissue it. We may require you to post an acceptable indemnity bond if you request refund or reissuance of a Bank Check before the waiting period expires. We will require you to present an acceptable written claim before refunding or reissuing a Bank Check. You may not stop payment on an item after acceptance of the item by us.

Inactive Accounts. If you do not make deposits to or withdrawals from your account for a period of 12 months, or if it reaches and maintains a zero balance, we may deem your account to be inactive. An inactive account remains subject to service charges and may be assessed additional fees. Under certain circumstances, we must turn over unclaimed funds in inactive accounts to the state of Kansas.

Accounts Are Not Assignable. Accounts are not transferable except on the Bank's books and records. If ownership is to be transferred, we may require that the account be closed and a new account opened. We must give our written consent to a pledge of an account as collateral for a loan from another lender. The pledged account remains subject to our right of setoff and our prior security interest.

Statements and Addresses for Notice. You will receive periodic statements for your account(s). We will rely on the address in our records for all mailings concerning your account. If a statement, interest check or any other written communication concerning your account is returned because of incorrect address, we will suspend further mailing until we receive a correct address. You are responsible for notifying us of any change of address. All statements, notices and other documents are deemed delivered to you on the date we place them in the mail, or if we do not have a current address, when prepared by us. Notice to any account owner or authorized signer shall be considered notice to all account owners and signers. Written notice you give to the Bank is effective when actually received by our personnel at one of our banking offices and we have had a reasonable opportunity to act on it.

Service Charges and Fees. You agree to pay any service charges and fees on your account as described in our Truth in Savings Disclosures and Fee Schedule (for Personal Accounts) or the Business Accounts Product Information. Any service charges and fees may be deducted from your account without prior notice to you. The Bank may dishonor checks or other withdrawal orders because of insufficient funds resulting from deduction of fees and charges.

Change of Terms. We may change the terms of this Agreement, including the information disclosed in our Truth in Savings Disclosures, Fee Schedule, or the Business Accounts Product Information, from time to time at our discretion. We will provide notice of changes in terms as required by law. For time deposits, the change will be effective on the next maturity date after the effective date of the change notice. Continuation of your account after the effective date of our notice, will be deemed acceptance of the changes in our notice.

Waiver of Rights by the Bank. We may delay or waive any fee or enforcement of any other terms of this Agreement for any transaction or series of transactions. Any such waiver will not affect our right to enforce this Agreement with respect to other transactions and is not sufficient to modify the terms and conditions of this Agreement. Waivers must be written and signed by an authorized officer to be binding on us.

Termination or Suspension of Account. This Agreement may be terminated and your account closed at any time by you or the Bank. If we close your account, we may send you written notice that the account is closed on the date we close the account. You agree to notify us of your intention to close your account, and we hereby reserve the right to request the notice in writing. Such closing will not release you from fees or other obligations incurred before the termination; fees you incur in the process of closing your account; or liability on outstanding items. We may pay or dishonor any item presented for payment after the account is closed without prior notice to you. You remain liable to us for such transactions and agree to make payment to us immediately upon demand.

We may close or suspend any account or refuse any transaction at the request of any signer. If a dispute arises over the ownership of, or the right to withdraw funds from an account, we may also suspend the account and hold the funds on deposit until the dispute is resolved. We may require the signatures of all authorized signers and/or a court order before permitting withdrawal of funds or closing of a disputed account. You agree to be responsible for any loss or expenses we incur as a result of a dispute between you and an authorized signer, another joint owner, or a third party claiming an interest in your account.

At our option, we may close an account which reaches a negative balance, without prior notice to you.

Financial Institution Liability. You agree that if we do not properly complete a transaction according to the Agreement, we will not be liable in any event for losses or damages in excess of the amount of the transaction, and we will not be liable if circumstances beyond our control prevent the transaction, or the funds in your account are or may be subject to legal process or other claim. In no event will we be liable for consequential damages.

Miscellaneous Provisions. You authorize us to request and obtain one or more credit reports about you from one or more credit reporting agencies for the purposes of considering your application for this account, reviewing or collecting any account opened for you, or for any other legitimate business purpose. You authorize us to disclose information about your account to a credit reporting agency if your account was closed because you have abused it. You understand that supervisory personnel may randomly monitor customer service telephone conversations to ensure that you receive accurate, courteous, and fair treatment. If you ask us to follow instructions that we believe might expose us to any claim, liability, or damages, we may refuse to follow your instructions or may require a bond or other protection, including your agreement to indemnify us. If a court finds any provision of the Agreement to be invalid or unenforceable, such finding shall not make the rest of the Agreement invalid or unenforceable. If feasible, any such offending provision shall be deemed to be modified to be within the limits of enforceability or validity; however, if the offending provisions cannot be so modified, it shall be stricken and all other provisions of the Agreement in all other respects shall remain valid and enforceable.

SAVINGS, CHECKING AND MONEY MARKET ACCOUNTS

Deposits. You may make your deposits in person or by mail. If you have a Impact Bank Check Card or ATM Card, you may also initiate your deposit through an ATM. We ask that you use our deposit forms. We reserve the right to refuse, limit or return any part of your deposit which does not meet our requirements. We are not responsible for deposits made by mail or through a depository not staffed by our personnel until the deposit is actually received. If you fail to endorse an item that you deposit, we have the right, but are not obligated, to supply the missing endorsement. We may require certain items such as government checks and insurance company items, to be personally endorsed by each of the payees. Federal law now restricts where endorsements can be placed on the back of a check you deposit. You are responsible for any loss to us caused by improper endorsement of any check you deposit. If we receive an item for deposit on a weekend, holiday, or after the Bank's cutoff hour on a business day, we will treat the item as received on our next business day. Our business days and cutoff hours are subject to change from time to time.

We may accept or reject any item presented for deposit before the date of the item or which bears extraneous notes, legends or conditions. If we accept the item for deposit, we may disregard any extraneous information on the check other than the payee, the endorsements, the amount, the drawee bank and other information encoded in magnetic ink. You agree to indemnify us against any claim or expense resulting from your presentment and our acceptance of the item.

All deposits are accepted subject to later detailed verification. If an error is discovered, the necessary correcting entries will be made to your account without prior notice to you. If you deposit drafts, bonds or other noncash items into your account, we have the right to clear the items before we make the money available to you. A deposited item is cleared when the bank on which it is drawn pays us the value of the item.

Collection of Items. All items credited to your account are subject to final payment and receipt of proceeds by the Bank. If we do not receive payment for a deposited item within a reasonable time, we may charge the item back against your account without prior notice to you. You agree to pay any special fees for collecting your deposit. You appoint us as your agent for the collection of all deposits you make. We may send collection items directly to the bank on which they are drawn or through collecting agents. You agree that each collecting agent acts as your agent and that we will not be liable for loss resulting from the neglect, default or failure of your agent. We are not responsible for loss in transit or for any loss during the course of collection if we exercise ordinary care. If we lose a deposited item(s), you agree to assist us in reconstructing, replacing and obtaining payment of the item(s). We will accept cash, clearing house or federal reserve credits or drafts in payment of items you deposit and will not be liable for failure to collect on any item so received. You agree to be bound by the operating rules, procedures and common usage and practice of all collecting and clearing entities. Special instructions for handling an item will only be effective if given to us in writing with the item.

Acceptance of ACH Wholesale Credits. Credit given by the Bank to you with respect to an automated clearing house credit entry is provisional until the Bank receives final settlement for such entry through a Federal Reserve Bank. If the Bank does not receive such final settlement, you are hereby notified and agree that the Bank is entitled to a refund of the amount credited to you in connection with such entry, and the party making payment to you via such entry shall not be deemed to have paid you in the amount of such entry.

Under the operating rules of the National Automated Clearing House Association, which are applicable to ACH transactions involving your account, the Bank is not required to give next day notice to you of receipt of an ACH item and the Bank will not do so. However, the Bank will continue to notify you of the receipt of payments in the periodic statements we provide to you.

The Bank may accept on your behalf payments to your account which have been transmitted through one or more ACHs and which are not subject to the Electronic Fund Transfer Act and your rights and obligations with respect to such payments shall be construed in accordance with and governed by the laws of the state of New York as provided by the operating rules of the National Automated Clearing House Association, which are applicable to ACH transactions involving your account.

Direct Deposits. You may arrange to have direct deposits made to your account. If any portion of any direct deposit is reclaimed by the payor for any lawful reason, you agree that the Bank may deduct the amount reclaimed from your account or any other account on which you are an owner without prior notice to you. You will be responsible for resolving any differences with the payor.

Automated Processing of Items. The Bank uses automated payment procedures which rely primarily on information encoded on each item in magnetic ink. You agree that when paying an item presented against your account, we may disregard all information on the item other than the maker's signature, the amount, and encoded information. You agree to reimburse us for any loss or expense we incur because you issue an item containing extraneous markings or information. You also agree that the Bank does not fail to exercise ordinary care in paying an item solely because its procedures may not require sight examination of every item.

Interest Rates, Interest Accrual and Crediting. Interest rates paid on savings, money market and interest bearing checking accounts are subject to change from time to time at our discretion. You can obtain information on our current interest rates from any of our offices or by calling (620) 326-3361. A change in interest rates is effective immediately. Interest begins to accrue on noncash items you deposit into your savings, interest bearing checking or money market accounts no later than the business day when the Bank receives credit for the deposit. If your account is closed before an interest payment date, all interest accrued since the last interest payment date will be forfeited. Please refer to your Truth in Savings Disclosures (for Personal Accounts) or the Business Account Product Information for more information on the methods used to calculate interest on your account.

Prior Notice of Withdrawal. We may require you to give us seven (7) days written notice of your intent to withdraw money from your account. This notice would be a precondition to the withdrawal of any sum of money. By permitting withdrawals without notice, we do not waive our right to require such notice.

Limits on Telephone and Preauthorized Transfers from Savings and Money Market Accounts. Federal law limits preauthorized, automatic, and telephone transfers from savings and money market accounts to another account or to third parties to 6 per monthly statement cycle. No more than 3 of these 6 transfers may be by check, draft, debit card, or similar order payable to a third party. If you exceed or attempt to exceed these limits, we may refuse the excess transfer, impose a fee and/or reclassify or close your account.

Checks and Withdrawals. Withdrawals will first be made from collected funds. We may refuse any withdrawal request against uncollected funds in your savings account. We may also refuse withdrawals against uncollected funds in your checking or money market account. We may refuse withdrawals against uncollected funds even if we have allowed them in the past. We may pay checks or other items drawn on your account in any order we determine, even if paying a particular item leaves a balance which is insufficient to pay one or more other items that otherwise could have been paid out of your account. You are responsible for reviewing the accuracy of all information shown on your checks. Our liability, if any, in matters related to incorrectly printed checks is limited to the cost of replacing the checks. If you wish to arrange for the printing of your checks, you must obtain our advance approval to assure they meet our technical specifications. We reserve the right to return unpaid, any checks not approved by us which do not meet our requirements.

You agree to safeguard information about your accounts with us (such as our routing number and your account number). If you give information about your account (such as our routing number and your account number) to a party (including someone seeking to sell you goods or services) without physically delivering a check to that party, any debit to your account initiated by the party to whom you gave the information is deemed authorized by you.

You agree that we may impose additional requirements we deem necessary or desirable on a payee or other holder who presents for cashing an item drawn on your account which is otherwise properly payable, and if that person fails or refuses to satisfy such requirements, our refusal to cash the item will not be considered wrongful. You agree that, subject to applicable law, such requirements may include (but not necessarily limited to) physical and/or documentary identification.

Stopping Payment On an Item Drawn on Your Account. You can stop payment on any check, draft or single Automated Clearing House (ACH) debit (an "Item") drawn or authorized on your account, in person, by telephone, or by accessing your account via our internet banking site (if you are an authorized user). Any stop payment requirement is subject to the terms and conditions of this Agreement. Any stop payment of an ACH debit is also subject to our Electronic Fund Transfers Disclosure and other applicable ACH rules and regulations.

To be effective, we must receive your stop payment request at a time and in a manner that gives us a reasonable opportunity to act on it before our Stop Payment Cutoff Hour passes and before we have paid, certified, or otherwise become obligated to pay the Item. We may require that your stop payment of an ACH Debit be received at least three (3) business days before the transfer is scheduled. We will require that your stop payment request include your account number and may require you to include the exact amount of the Item, check number, date and payee of the Item, and other information we need to affect the stop payment. We may require additional information for an ACH Debit, including the specific scheduled future transfer date. We will have no liability for paying the Item if information you provide is incorrect or incomplete, or is insufficient for us to affect the stop payment under the circumstances. We will accept a stop payment from any authorized signer on the account, regardless of who authorized the Item. You agree to hold us harmless for the amount of such Item and for all expenses, costs and damages we incur as a result of refusing payment of such Item.

Your stop payment of an ACH debit will affect only the one payment specified. For recurring ACH debits, you must: (i) contact the Originator/Payee and revoke any authority originally given for such recurring ACH debits to your account; (ii) notify us once you have revoked your authority for future ACH debits to your account with the Originator/Payee; and (iii) sign and deliver to us an Affidavit of Unauthorized ACH Activity in a form acceptable to us. If you fail to take these steps, we may honor future recurring ACH Debits against your account.

We will confirm your oral request for stop payment by sending a written notice to the account address. You are responsible for promptly reviewing the confirmation notice and for notifying us of any discrepancies. Your stop payment will continue for six (6) months from its effective date. We will not send you further notice of expiration of your stop payment. You must renew your stop payment with us if you do not want it to expire. Each renewal is treated as a new stop payment. If you request a stop payment via our internet banking site, you are solely responsible for accurately and completely entering all information as prompted during the session, and understand that we will not review or otherwise confirm the information you enter. We will charge your account for each stop payment whether or not the stop payment is later cancelled. Any authorized signer on the account can cancel a stop payment, regardless of who originally authorized the stop payment. A cancellation must conform to the same standards as the original stop payment request.

We will not be responsible for payment of any Item that occurred before your stop payment was effective. You agree to thoroughly examine your account, including all prior account statements, before requesting a stop payment or issuing any replacement item, to determine whether the Item has already been paid. You agree to notify us if you authorize a replacement item and to use a new date and number.

Our Stop Payment cutoff Hour is 9:00 a.m. of the next banking day after the banking day on which we receive the check. We may change this cutoff hour from time to time.

You agree that we are bound only to exercise good faith and ordinary care when observing your stop payment. To claim reimbursement from us for our failure to observe a valid and timely stop payment, you must show that payment of the Item caused an actual monetary loss to you. Any reimbursement from us will be limited to the lesser of the amount you lost or the face amount of the Item paid by our error, and shall not include any incidental or consequential amounts. Upon any such reimbursement, you agree to sign a statement describing the dispute with the payee of the Item to transfer your rights against the payee or other holder of the Item to us, and to assist in our effort to collect the amount of the Item from the person who received the proceeds.

Stale and Post-Dated Checks. Without prior notice to you, we may refuse to pay or may pay in good faith, any check presented against your account which is more than 6 months old. We may pay a check written on your account before the date shown on the check unless you have given us advance notice that a post-dated check will be presented for payment. The required content of your post-dated check notice, our procedure after receipt of your notice and the period(s) for which your notice is effective, are the same as those outlined for stopping payment on a personal check. We may charge a fee for each post-dated check notice.

Overdrafts. If you initiate a transaction (check, in-person withdrawal, ATM withdrawal or other electronic means) for more money than you have in your account, your account will be overdrawn and we may return the item unpaid. We may charge you for each item which overdraws your account, whether we pay or return the item. At our sole discretion, we may permit overdrafts by paying checks or allowing transactions when you do not have sufficient funds available in your account. We will make our decision to pay or return an item which overdraws your account without advance notice to you. You agree to pay us the amount of any overdraft immediately. We may charge you a Continuous Overdraft Fee each day your account remains overdrawn. Each account owner is jointly and individually responsible for paying any overdraft and overdraft charges, irrespective of who created the overdraft, had knowledge of the overdraft, participated in the activity on the account or benefited from the overdraft. Paying an overdraft does not obligate us to pay future overdrafts. We may discontinue permitting overdrafts without prior notice to you. We may determine whether your balance is sufficient to cover an item at any time between presentment of the item and our midnight deadline. We will only make one review of your account balance before we decide to pay or return an item.

Reviewing Checks and Statements. You will receive imaged copies (images) of your canceled checks or substitute checks with your account statement and agree to accept such images as the equivalent of the original paid item. You agree to promptly examine all statements and any images and to notify us immediately of any irregularity in your account, including but not limited to, an unauthorized signature, altered item or missing image. In some cases, checks may be represented for payment in an electronic form. When the check is presented as an electronic item, you acknowledge the bank will not have the original paid item or image and will be unable to furnish such item or image in your account statement. Our inability to return such item or image does not affect your obligation to promptly review your account statements for discrepancies. In some cases, checks may be represented by images of substitute checks. When the check is presented as a substitute check, you acknowledge the Bank will not have the original paid item. Our inability to return the original item to you does not affect your obligation to promptly review your account statements for discrepancies. If this is a business, partnership or unincorporated association account, you agree to have at least two individuals inspect statements and account records on a regular basis and to take other appropriate action to oversee the activity on the account. If you do not notify us in writing of a forgery or other discrepancy in your account within 30 calendar days of your statement, we may refuse to recredit your account for the item. If you do not notify us of a missing image within 30 calendar days of your statement, we may be unable to reproduce the missing image or item. Your account may provide for truncation of checks. You may request images of checks or images of substitute checks paid against your account which were not returned to you with your statement. Truncation of checks does not affect your obligation to promptly review your account statements for discrepancies. We will not be responsible for payment of a forged or altered item if the forgery or alteration could not have been detected by a reasonable person.

We will resolve any problem by reviewing the records for your account. You agree to provide us with affidavits or other reasonable information we may require concerning any account discrepancy. If we inadvertently pay an item which was not properly payable, you agree to cooperate with us in any legal action we might take against the person who wrongfully negotiated the item.

You may wish to use a facsimile signature, stamp or other mechanical device to sign checks or other orders relating to your accounts. If you do, we will, without contacting you, debit your account for items bearing an imprint that looks substantially like your authorized mechanical signature, whether or not such items bear the actual facsimile signature stamp. You agree to notify us and give us a sample imprint if you plan to use such a device. You are responsible for the security of any mechanical signature device. We will not be responsible for payment of unauthorized items bearing an imprint from, or similar to, your authorized mechanical signature. You should promptly review your statements, canceled checks or images for unauthorized use of the device.

TIME DEPOSIT ACCOUNTS

Your Time Deposit Account. Your time deposit may be issued in the form of a Certificate of Deposit, Time Deposit Receipt, or a book entry. Each evidences your agreement to keep your funds on deposit for a fixed period of time and our agreement to pay the stated rate of interest until the maturity date.

Maturity and Penalty for Early Withdrawal. Your time deposit may not be withdrawn prior to maturity, in whole or in part, except with our consent. If we permit early withdrawal, we may impose a substantial penalty for early withdrawal as follows: for terms of 7-181 days - penalty equals one month of interest; for terms of 182 days - 23 months - penalty equals 3 months of interest; for terms greater than 23 months - penalty equals 6 months of interest. The penalty will be computed using the simple (non-compounded) interest rate being paid on the time deposit on the date of the withdrawal. If accrued interest at time of withdrawal is less than the penalty, the principal of your time deposit may be reduced to pay the penalty. No early withdrawal penalty will be imposed if an owner of the time deposit dies or is declared legally incompetent.

Interest and Renewal at Maturity. Interest rates offered on new and renewing time deposits vary from time to time in the Bank's discretion. Automatically renewable time deposits will renew at each maturity date for the same term as the initial term, unless surrendered for payment within 10 days of a maturity date. No interest will be paid after maturity of a nonrenewable time deposit or on an automatically renewable time deposit surrendered for payment within 10 days after a maturity date. At our discretion, we may pay interest at the stated rate on time deposits withdrawn within 10 days after maturity. The rate of interest payable during each renewal period will be the rate the Bank is paying on the first day of each such renewal period. Information on current interest rates is available from any of our banking offices or by calling (620) 326-3361.

Effect of This Agreement and Change in Terms. This Agreement, as may be amended from time to time, shall supersede and replace any contrary provisions delivered to you at the time you opened your time deposit, as of the first maturity date following the effective date of this Agreement or any amendment to this Agreement. You should keep this Agreement and any amendments, with your Receipt or Certificate, to update the terms and conditions of your time deposit. We reserve the right to call for payment or otherwise change the terms of an automatically renewable time deposit at the end of the original or any renewal term. If you do not surrender your time deposit for payment within 10 days after the first maturity date following the effective date of our change notice, you will be deemed to have accepted the change in terms. If your time deposit is called for payment, it will stop earning interest on the effective date of the call.

Interest Payment Options. Interest will be accrued daily and paid as set forth on your Certificate or Receipt. For additional information concerning your personal time deposit account, please refer to the Truth in Savings Disclosure you received at account opening. Interest earned may be added to the time deposit, credited to another of your accounts with us, or paid to you by a monthly, quarterly or annual check.

Joint Time Deposits. Unless otherwise stated on the face of your Certificate or Receipt, if your time deposit is payable to two or more depositors, it shall be owned jointly by such depositors with right of survivorship and not as tenants in common. Each owner appoints the other(s) as agent to receive payment, give or receive any notice or take any action affecting the time deposit.

Payment of Time Deposit. We may require you to deliver your Certificate or Receipt to us to obtain payment for your time deposit. Unless otherwise expressly stated on the face of your Certificate or Receipt, we may pay a time deposit to or on the order of any owner or their legal representative, whether or not they present the Certificate or Receipt. You agree to notify us if your Certificate or Receipt is lost, destroyed or stolen. We may require an indemnity bond or other agreement from you prior to reissuing a lost, stolen or destroyed Certificate or Receipt.

Garnishment, Levy or Setoff. If we are required by legal action to withdraw funds from your time deposit or if funds from your time deposit are setoff to pay a debt due the Bank, we will first collect the applicable early withdrawal penalty.

Limits on Negotiability and Transferability. Our time deposits are not negotiable and are not subject to check or other order. See General Provisions for additional information.

Impact Bank is the full legal name of Impact Bank, located in Wellington.

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