Your Ability to Withdraw Funds

Revised 5/2009

This policy statement applies to all deposit accounts
Our policy is to make funds from your cash and check deposits available to you on the first business day after the day we receive your deposit. Electronic direct deposits will be available on the day we receive the deposit. Once the funds are available, you can withdraw them in cash and we will use the funds to pay checks that you have written.

Please remember that even after we have made funds available to you, and you have withdrawn the funds, you are still responsible for checks you deposit that are returned to us unpaid and for any other problems involving your deposit.

For determining the availability of your deposits, every day is a business day, except Saturdays, Sundays, and federal holidays. If you make a deposit before 3:00 P.M. on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit after 3:00 P.M. or on a day we are not open, we will consider that the deposit was made on the next business day we are open.

If we cash a check for you that is drawn on another bank we may withhold the availability of a corresponding amount of funds that are already in your account. Those funds will be available for withdrawal at the time funds from the check we cashed would have been available if you deposited it.

If we accept for deposit a check that is drawn on another bank, we may make funds from the deposit available for withdrawal immediately but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available for withdrawal until the time periods that are described elsewhere in this disclosure for the type of check that you deposited.

LONGER DELAYS MAY APPLY

Case-by-case delays. In some cases, we will not make all of the funds that you deposit by check available to you on the first business day after the day of your deposit. Depending on the type of check that you deposit, funds may not be available until the fifth business day after the day of your deposit. The first $100 of your deposits, however, may be available on the first business day.

If we are not going to make all the funds from your deposit available on the first business day, we will notify you at the time you make your deposit. We will also tell you when the funds will be available. If your deposit is not made directly to one of our employees, of if we decide to take this action after you have left the premises, we will mail you the notice by the day after we receive your deposit.

If you will need the funds from a deposit right away, you should ask us when the funds will be available. Please remember you are still responsible for returned items, regardless of availability.

ATM deposit availability. If you make a deposit at an ATM that is owned or operated by us before 4:00 p.m. on a business day that we are open, we will consider the deposit as being made that day. If you make a deposit at an ATM that we own or operate after 4:00 p.m., on a non-business day or a day that we are not open, we will consider the deposit as being made on the following business day.

The deposit will be available on the next business day. Funds from deposits made at an ATM are subject to verification and may not be available for immediate withdrawal.

Safeguard exceptions. In addition, funds you deposit by check may be delayed for a longer period under the following circumstances:

• We believe a check you deposited will not be paid.
• You deposit checks totaling more that $5,000 on any one day.
• You redeposit a check that has been returned unpaid.
• You have overdrawn your account repeatedly.
• There is an emergency, such as failure of computer or communications equipment.

We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available no later than the seventh business day after the day of your deposit.

SPECIAL RULES FOR NEW ACCOUNTS

If you are a new customer, the following special rules may apply during the first 30 days your account is open.

Funds from electronic direct deposits to your account will be available on the day we receive the deposit. Funds from deposits of cash, wire transfers, and the first $5,000 of a day’s total deposits of cashier’s, certified, teller’s, traveler’s and federal, state and local government checks will be available on the first business day after the day of your deposit if the deposit meets certain conditions. For example, the checks must be payable to you (and you may have to use a special deposit slip). The excess over $5,000 will be available by the ninth business day after the day of your deposit. If your deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, the first $5,000 may not be available until the second business day after the day of your deposit.

Funds from all other check deposits will be available by the seventh business day after the day of your deposit.

ELECTRONIC FUND TRANSFERS YOUR RIGHTS AND RESPONSIBILTIES

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.

Preauthorized credits. You may make arrangements for certain direct deposits to be accepted into your checking, statement savings or money market account(s).

Preauthorized payments. You may make arrangements to pay certain recurring bills from your checking, statement savings or money market account(s).

Electronic check conversion – types of transfers – Your check can result in an electronic funds transfer. This can happen several ways. For example:

• You can purchase goods or pay for services and authorize a merchant or service provider to convert your check into an electronic funds transfer.
• At the time you offer a check to a merchant or service provider, you may be asked to authorize the merchant or service provider to electronically collect a charge in the event the check is returned for insufficient funds. Paying such a fee electronically is an electronic funds transfer.

Your authorization to make these types of electronic funds transfers may be expressed in writing or implied through the posting of a sign.

Telephone Transfers – types of transfer- You may access your account by telephone 24 hours a day at 1-800-617-5564 using your personal identification number, a touch-tone phone, and your account numbers, to:

• transfer funds from checking to checking
• transfer funds from checking to savings
• transfer funds from checking to money market accounts
• transfer funds from savings to checking
• transfer funds from savings to savings
• transfer funds from savings to money market accounts
• transfer funds from money market to checking
• transfer funds from money market to savings
• transfer funds from money market to money market accounts
• get information about:
  • account balance of checking accounts
  • the last three deposits to checking accounts
  • the last five withdrawals from checking accounts
  • account balance of savings accounts
  • the last three deposits to savings accounts
  • the last five withdrawals from savings accounts
  • account balance of money market accounts
  • the last three deposits to money market accounts
    
  • the last five withdrawals from money market accounts
    
  • maintain loan balance
    
  • loan payment information
    
  • current loan payoff
    

Internet Banking – types of transfer – You may access your accounts by going on to our website at www.mnbonline.com using your customer number and password, to:

• transfer funds from checking to checking
• transfer funds from checking to savings
• transfer funds from checking to money market accounts
• transfer funds from savings to checking
• transfer funds from savings to savings
• transfer funds from savings to money market accounts
• transfer from money market to checking
• transfer from money market to savings
• transfer from money market to money market accounts
  
• get information about:
  
  • view accounts
    
  • view account balances
    
  • view account history
    
  • view loan payoff
    
  • process loan payments
    
  • initiate stop payment request
    

Bill Pay – You may access Bill Pay through Internet Banking and use the service to:

• set up, edit and delete merchants
• pay merchants from a checking account
• make one time payments
• set up recurring payments
• submit research requests to conduct a payment investigation
• export to Quickbooks
• get information about:
  • pending payments
  • history of past payments
  • total of scheduled payments
  • calander of payment schedule

Your Option to Limit Cash Withdrawals – In addition to dollar amount limitations for withdrawals using your ATM Card of MasterMoney Card and/or code that we may establish, you have the option to limit the amount of cash that can be withdrawn by your ATM Card or MasterMoney Card and/or code to $50.00 per day or some other amount acceptable to us.

ATM Transfers – types of transfers and dollar limitations – You may access your account(s) by ATM using your ATM Card and personal identification number or MasterMoney Card and personal identification number, to:

• make deposits to checking account(s) with an ATM card
  
• make deposits to checking account(s) with a debit card
  
• make deposits to statement savings account(s) with an ATM card
  
• make deposits to statement savings account(s) with an debit card
  
• get cash withdrawals from checking account(s) with an ATM card
  
  • you may withdraw no more than $300.00 per day or the amount agreed upon at account opening
    
• get cash withdrawals from checking account(s) with a debit card
  
  • you may withdraw no more than $500.00 per day or the amount agreed upon at account opening
    
• get cash withdrawals from statement savings account(s) with an ATM card
  
  • you may withdraw no more than $300.00 per day or the amount agreed upon at account opening
    
• get cash withdrawals from statement savings account(s) with a debit card
  
  • you may withdraw no more than $500.00 per day or the amount agreed upon at account opening
    
• get cash withdrawals from Home Equity Line of Credit account(s) with a Debit Card
  
  • you may withdraw no more than $500.00 per day or the amount agreed upon at account opening
    
• transfer funds from statement savings to checking account(s) with an ATM card
  
  • you may transfer no more than $300.00 per day or the amount agreed upon at account opening
    
• transfer funds from statement savings to checking account(s) with a debit card
  
  • you may transfer no more than $500.00 per day or the amount agreed upon at account opening
    
  • transfer funds from checking to statement savings account(s) with an ATM card
    you may transfer no more than $300.00 per day or the amount agreed upon at account opening
    
  • transfer funds from checking to statement savings account(s) with a debit card
    you may transfer no more than $500.00 per day or the amount agreed upon at account opening
    
  • transfer funds from Home Equity Line of Credit to checking account(s) with a Debit Card
    you may transfer no more than $500.00 per day or the amount agreed upon at account opening
    
• get information about:
  
  • the account balance of your checking accounts
    
    • with an ATM card
      
    • with a debit card
      
  • the account balance of your statement savings accounts
    
    • with an ATM card
      
    • with a debit card
      
    • the account balance of your Home Equity Line of Credit
      
    • with a Debit Card
      

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

Types of ATM Card Point-of-Sale Transactions – You may access your checking account(s) to purchase goods, pay for services, and get cash from a merchant, if the merchant permits, or from a participating financial institution.

Types of Debit Card Point-of-Sale Transactions- You may access your checking account(s) to purchase goods, pay for services, and get cash from a merchant, if the merchant permits, or from a participating financial institution.

You may access your Home Equity Line of Credit to purchase goods, pay for services and get cash from a merchant, if the merchant permits, or from a participating financial institution.

Point-of Sale Transactions – dollar limitations – Using your MasterMoney Debit card:

• you may not exceed $1000.00 in transactions per day or the amount agreed upon at account opening
  

Currency Conversion. If you effect a transaction with your MasterMoney Card in a currency other than US Dollars, MasterCard International Incorporated will convert the charge into a US dollar amount. Master Card International will use its currency conversion procedure, which is disclosed to institutions that issue MasterCard cards. Currently, the conversion rate used by MasterCard International to determine the transaction amount in US dollars for such transactions in generally either a government mandated rate or a wholesale rate determined by MasterCard International for the processing cycle in which the transaction is processed, increased by an adjustment factor established from time to time by Mastercard International The currency conversion rate used by MasterCard International on the processing date may differ from the rate that would have been used on the purchase date or cardholder statement posting date.

Advisory Against Illegal Use. You agree not to use your card(s) for illegal gambling or other illegal purpose. Display of a payment card logo by, for example, an online merchant does not necessarily mean that transactions are lawful in all jurisdictions in which the cardholder may be located.

Please contact us as to when the following computer service is available.

To report a lost or stolen ATM or Debit Card after business hours, please call 1-800-554-8969 or by mail at 18 Main St. Millbury, Ma 01527

Termination-

• You may terminate the electronic fund transfer agreement by written notice to us.
  
• We may terminate the electronic fund transfer agreement by written notice to you.
  

Minimum account balance –

We do not require you to maintain a minimum balance in any account as a condition of using an access device (card or code) to accomplish a transfer.

Transaction Limitations-

You may only make 6 preauthorized transfers per month from your statement savings account and/or money market account each statement cycle, 3 by checks to third parties and draft, debit card or similar order to third parties. If you exceed the transfer limitations set forth above, your account will be subject to a fee of $10.00 per item and your account could be subjected to closure.

FEES

• We do not charge for direct deposits to any type of account.
  Except as indicated elsewhere, we do not charge for these electronic fund transfers.
  
• Insufficient funds fee applies to overdrafts created by “check, in person withdrawals, ATM withdrawals or other electronic means”.
  

See Service Charge Schedule for current insufficient funds fee.

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 making the deposit they will tell you every time they send us the money.
  
• 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 (508) 865-9521 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 and money market accounts.
    
  • You will get a monthly account statement from us for your statement savings accounts, unless there are not transfers in a particular month. In any case, you will get a statement at least quarterly.
    

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 us at (508) 865-9521 or write us at Millbury National Bank, 18 Main Street, Millbury, Massachusetts 01527, 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.
Please refer to our separate fee schedule for the amount we will charge you for each stop-payment order you give.

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.

ADDITIONAL INFORMATION REQUIRED BY MASSACHUSETTS LAW

1. Any documentation provided to you, which indicates that an electronic fund transfer was made to another person, shall be admissible as evidence of the transfer and shall constitute prima-facie proof that the transfer was made.
2. The initiation by you of certain electronic fund transfers from your account will except as otherwise provided in this agreement, effectively eliminate your ability to stop payment of the transfer.
   

Unless otherwise provided in this agreement, you (the consumer) may not stop payment of electronic fund transfers, therefore you should not employ electronic access for purchases or services unless you are satisfied that you will not need to stop payment.

FINANCIAL INSTITUTIONS’S LIABILITY

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 or 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 ugh cash.
4. If the terminal or system was not working properly and you knew about the breakdown when you started the transfers.
5. If circumstances beyond our control (such as fire or floor) prevent the transfer, despite reasonable precautions that we have taken.
6. If the funds are subject to legal process or other encumbrance restricting such transfer.
7. There may be other exceptions stated in our agreement with you.

CONFIDENTIALITY

In order that your privacy may be protected, we will not disclose any information about you or your account to any person, organization, or agency except:

1. for certain routine disclosures necessary for the completion of a transfer; or
2. for verification of the existence and condition of your account for a credit bureau or merchant; or
3. to persons authorized by law in the course of their official duties; or
4. to our employees, auditors, service providers, attorneys or collection agents in the course of their duties; or
5. pursuant to a court order or lawful subpoena; or
6. to a consumer reporting agency as defined in Chapter 93 of Massachusetts General Laws; or
7. by your written authorization which shall automatically expire 45 days after our receipt of your authorization.

If an unauthorized disclosure has been made, we must inform you of the particulars of the disclosure within 3 days after we have discovered that an unauthorized disclosure has occurred.

UNAUTHORIZED TRANSFERS

(a) Consumer liability.

• Generally. Tell us AT ONCE if you think your card and/or code has been lost, stolen or used without your permission. Telephoning is the best way, if any, of minimizing your possible losses. You can lose no more than $50 if you fail to give us notice of your lost or stolen card and/or code and your card and/or code is used without your permission.
  
• Additional Limits on Liability for MasterMoney 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. These transactions are not processed by MasterCard.
  
  (1) Prohibition of compulsory use. No person may:
• require you to use a preauthorized electronic fund transfer as a condition of the extension of credit unless the credit is being extended in connection with an overdraft checking plan, or is being extended to maintain a specified balance in your account,
• require you either to accept a transfer service or to establish an account which is accessed electronically as conditions of employment or receipt of governmental benefit, or
• require you to pay electronically for the purchase of goods or services.
  

If your account is to be credited by preauthorized transfer you may choose the financial institution to which the transfer may be made, if the institution is technically capable of receiving such preauthorized transfer.

(2) Waiver of rights. No writing or agreement signed by you can waive the rights conferred to you by Chapter 167B of the Massachusetts General Laws unless you decide to waive these rights in settlement of a dispute or action.

(3) Refunds. If it is the policy of a store or retail business to give cash refunds in return for an item purchased by cash, then this policy must also cover refunds for items purchased by electronic fund transfer unless it is clearly disclosed at the time by the transaction is consummated that no cash or credit refunds are given for payments made by electronic fund transfers.

(4) Suspension of obligations. If a person agrees to accept payment by means of an electronic fund transfer and the system malfunctions preventing such a transfer, then the consumer’s obligation is suspended until the transfer can be completed, unless that person, in writing, demands payment by other means.

(5) Prohibited means of identification. Your Social Security number cannot be used as the primary identification number although it can be used as secondary aid to identify you.

(6) Criminal liability. Procuring or using a card, code or other means of electronic access to an account with the intent to defraud is a basis for criminal liability.

ERROR RESULOTION NOTICE

In Case of Errors of Questions About Your Electronic Transfers, telephone us at (508) 865-9521or write us at Millbury National Bank, 18 Main Street, Millbury, Massachusetts 01527 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 or, if the only transfer possible is a direct deposit to your passbook account, no later than 60 days after the problem or error was FIRST reflected in your passbook or statement.

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 calendar days after we hear from you and will correct any error promptly. If we are unable to complete our investigation within 10 calendar days (20 calendar days if it involves an EFT to/from a new account) we may take up to 45 days (90 days for foreign EFT’s, new accounts and POS transactions) from receipt of a notice of error to investigate and determine whether an error occurred. If we decide to do this, we will credit your account within 10 calendar 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 result within three business days after completing our investigation. If we decide that there was no error, we will send you a written explanation. You have the right to request copies or inspect the documents used in our investigation.

DISPUTING A SUBSTITUTE CHECK

Federal law gives you the right to file a claim for an expedited refund if you receive a substitute check and believe that all of the statements below are true:

1. The substitute check was incorrectly charged to your account (for example, this may be true if we charged your account for the wrong amount or if we charged your account more than once for the same check);
2. You lost money as a result of the substitute check charge to your account; and
3. You need the original check or a better copy of the original check to demonstrate that we incorrectly charged your account (for example, this may be true if you think that we charged your account for the wrong amount and the substitute check does not clearly show the amount).

Expedited Refunds

To obtain an expedited refund, you must send us a claim. Federal law limits an expedited refund to the amount of your loss, up to the amount of the substitute check, plus interest if your account earns interest. You should be aware that you could be entitled to additional amounts under state or federal law.

How to Make a Claim for an Expedited Refund
Please make you claim by writing to us at Millbury National Bank, 18 Main Street, Millbury, Massachusetts, 01527. You must make your claim within 40 calendar days of the later of these dates: (1) The date that we delivered the account statement showing the charge that you are disputing, or (2) The date on which we made the substitute check available to you. If you cannot submit the claim due to extenuating circumstances, we will give you additional time.

Your expedited refund claim must (1) Describe why you think the charge to your account was incorrect; (2) Estimate how much money you have lost because of the substitute check charge; (3) Explain why the substitute check is not sufficient to show whether or not the charge to your account was correct; and (4) Provide us with a copy of the substitute check or give us information that will help us to identify the substitute check and investigate your claim (for example, the check number, the name of the person to whom you wrote the check, and the amount of the check).

Our Responsibilities for Handling Your Claim
We will investigate your claim promptly. If we conclude that we incorrectly charged your account, we will refund to your account the amount of your claim (up to the amount of the substitute check, plus interest if your account earns interest) within one business day of making that decision. If we conclude that we correctly charged your account, we will send you a notice that explains the reason for our decision and includes either the original check or a better copy of the original check than the one you already received. If we have not made a decision on your claim within 10 business days after you submitted it, we will refund the amount we owe to your account, up to $2500, plus interest, by that date. We will refund the remaining amount, if any, plus interest, to your account by the 45th day after you submitted your claim. If we refund your account, on the next business day we will send you a notice that tells you the amount of your refund and the date on which you may withdraw that amount. Normally, you may withdraw your refund on the business day after we make it. In limited cases, we may delay your ability to withdraw up to the first $2500 of the refund until the earlier of those two dates: (1) the day after we determine that your claim is valid; or (2) the 45th calendar day after the day you submitted your claim.

Reversal of Refund
We may reverse any refund, including interest, that we have given you if we later determine that the substitute check was correctly charged to your account. Within one business day after we reverse a refund, we will send you the original check or a better copy of the original check than the one you previously received, explain to you why the substitute check was correctly charged to your account, and tell you the amount and date of the reversal.
You may inspect or ask for copies of the documents that we used in our investigation. If there is no error, we may impose on you a reasonable charge for making such reproductions.

MORE DETAILED INFORMATION IS AVAIALBABLE ON REQUEST