Congressional Bank

INTERNET BANKING DISCLOSURE STATEMENT AND AGREEMENT DEFINITION OF TERMS

This disclosure and agreement (“Agreement”) contains important information about the Online Banking service Congressional Bank offers.  Please read it carefully and retain it for future reference. The terms “you” and “your” refer to all holders and Authorized Users of any Account that may be accessed through Online Banking services. The terms “we,” “us,” “our,” and “Bank” refer to Congressional Bank. By signing an application and/or by using Online Banking services, you agree to the following terms and conditions. Continued use of any and all services is contingent on your Account(s) remaining in good standing with the Bank and the other conditions stated in this Agreement.

DEFINITIONS

Throughout this Agreement, the following words have the meanings indicated below.

Account – means your checking, savings, and/or time deposit Account(s), whether one or more than one, that may be accessed by one or more Services according to your request.

ACH – means Automatic Clearing House, which is the system that enables participating financial institutions to process electronic debits and credits.

Agreement – means this Agreement, our Deposit Account Agreements and Disclosures, Online Banking Disclosure and Agreement, and the Deposit Account Fee Schedule.

Authorized User – is any individual or agent whom you allow to use the Online Banking service or your Password or other means to access your Account(s).

Bill Pay Service – means the Bill Payment Service offered by Congressional Bank, through our Bill Pay Service Provider.

Bill Pay Service Provider – refers to the contractor, sub-contractor or provider of our bill pay services.

Business Day(s) – means Monday through Friday, excluding bank holidays.

Business Day Cutoff – refers to the cut-off time for posting purposes. The cut-off time for transfers is based on our Business Days and the Eastern Time Zone. For posting purposes, we will process all transfers completed by 8:30 P.M. EST on that Business Day. Transactions completed after 8:30 P.M. EST will be processed on the following Business Day. Bill payment cut-off times may vary and are further detailed within this Agreement.

Business Client – refers to anyone other than a Consumer who owns an eligible Account with respect to which the Service is requested primarily for business purposes. Consumer – refers to a natural person who owns an eligible Account at the Bank with respect to which the Service is used primarily for personal, family, or household purposes.

Due Date – is the date reflected on your Biller statement for which a bill payment is due. It is not the late date or grace period.

E-Statement – is an electronic version of your periodic account statement which can be read using your web browser through the Online Banking service.

Effective Date – is the Business Day the funds will be available in your account.

External Transfers – means transfer of funds between your Account(s) at another financial institution and your Account(s) at Congressional Bank.

Laser Draft – is a payment method similar to a check written by you on your Payment Account. Billers should receive Laser Draft payments no later than the Scheduled Payment Date. Funds remitted to the Biller are deducted from your Payment Account when the Laser Draft is presented to the Bank for Payment. As a result, neither the Bank nor its Service Provider can control when your Payment Account will be debited for a Laser Draft Payment.

Online Banking System – means the components that permit you to make or initiate Transactions through the Service including but not limited to telephone lines and equipment, Personal Computers (PCs), computer systems, Internet access and websites, bill payment center and the automated clearinghouse system.

 Originator – An individual, corporation or other entity that initiates pre-authorized debit or credit Transactions through the Automated Clearing House Association (ACH). Advanced Login Authentication – refers to a one-time passcode; FIS Online Banking (Phone Call/Text) to confirm authentication during log in.

Password – the alpha numeric password that you choose or was assigned to you by the Bank that allows you to access the Service.

Payment Account – is the checking Account from which bill payments will be debited, whether one or more than one. You must be a legal owner of any Payment Account registered for the Service.

Payment Instruction – is the information provided by you to the Bill Pay Service for a bill payment. Provisionally Credited – means funds are made available for withdrawal pending system posting.

Scheduled Payment – is a payment that has been scheduled through the Bill Pay Service but has not begun processing.

Scheduled Payment Date – is the day you want your Biller to receive your bill payment and is also the day your Payment Account will be debited (other than Laser Draft Payments as described above), unless the Scheduled Payment Date falls on a non-Business Day in which case it will be considered to be the previous Business Day.

Service(s) – means Online Banking.

Service Provider – includes any agent, licensor, independent contractor or subcontractor that we may involve in the provision of Online Banking, Bill Payment, and electronic Bill Delivery services.

Transaction(s) – means all electronic funds transactions performed through PCs, Web Banking and other electronic means.

Transfers – mean transfers of funds among your Congressional Bank Accounts conducted via Online Banking

Username – is your Access Identification, which is unique and selected by you and used in conjunction with your Password to access the Online Banking Service.

PURPOSE

This Disclosure and Agreement sets forth your and our rights and responsibilities concerning the use of our Internet Banking services. This Agreement is subject to change. You should carefully read this Agreement in its entirety. If you choose to use this service or permit anyone else to use this service on your behalf, you agree to be legally bound by the terms and conditions as set forth in this Agreement and our fee schedule. The terms and conditions of this Agreement are in addition to any other agreement you have with Congressional Bank, including loan and credit agreements, rules and regulations regarding deposit accounts, any other services you have agreed to use or choose to use, any signature card you have signed and any change in terms notices that are in effect or may be in effect in the future. We will notify you of amendments as required by applicable law, however, you should return to this page periodically to review the Agreement. Continued use of Congressional Bank’s Internet Banking will constitute your acceptance of any changes or amendments. See “NOTICES AND COMMUNICATIONS” and “NOTICE OF AMENDMENTS” for more information.

 The primary purpose of this Agreement is to authorize banking transactions by electronic means. When you use, or you permit any other person to use, the Service, you agree to the terms and conditions of this Agreement.

INTERNET BANKING FEATURES

You may access your account information by using a specific Internet User ID and password assigned to you. You may use the system to request the following transactions for accounts that may be accessed through our Internet Banking system: Obtain certain account balance and transaction information on checking, savings, money market, certificate of deposit, IRA, and loan accounts;  Obtain statement transaction detail on your account;  Transfer funds between your checking, savings, and money market accounts;  Schedule the distribution of funds from your checking account to payees that you have selected to receive payment; Order the stop payment of checks drawn by you on your checking account(s); Transfer funds from your checking or savings account to make loan payments, and  Send a secured e-mail message to Bank personnel.

BILL PAYMENT

If you enroll in the Bill Payment feature of Internet Banking, you must have at least one checking account. Payments can only be made from a checking account. You may not pay bills from a savings or money market account as these are not considered transaction accounts and are subject to Federal Regulations concerning the frequency and number of transactions allowed. You may not designate a checking account that requires two signatures.

All Bill Payment transactions are subject to Federal laws and regulations administered by the Office of Foreign Assets Control (OFAC). For compliance with OFAC regulations, you can refer to the U.S. Treasury Department’s Office of Foreign Assets Control “Specially Designated Nationals and Blocked Persons (SDN) List”. The list can be checked online at www.ustreas.gov/offices/enforcement/ofac/ and clicking on SDN and Blocked Persons.

Payments made using the Bill Payment feature are processed two different ways:  Electronically By Check It is your responsibility to update your list of “Payees” with any changes in the name, address, account number or payment due date. When using the Bill Payment feature you should allow 5-7 business days for payment. It is your responsibility to allow adequate time for the payment to reach and be processed by the payee by the due date of your bill. Payments made by check will be sent through the United States Postal Service.

Bill Payment transactions are processed Monday through Friday, excluding holidays. Payments scheduled for a future date will be deducted from the designated checking account on that date, provided the date does not fall on a holiday or weekend, in which case it will be processed on the next business day. There must be sufficient funds available in the designated checking account to cover the amount of the bill payment requested. We reserve the right to cancel your bill payment request if there are insufficient funds available in your account and assess applicable “Insufficient Funds (NSF) Charges”. We also reserve the right to return any payment presented against your account that may cause an overdraft due to a Bill Payment transaction and assess applicable “Insufficient Funds (NSF) Charges”. You may edit or delete any scheduled payment as long as the status of the payment is “pending”. If the payment status is “sent”, the payment cannot be deleted. You will receive a Bill Payment Receipt for your transaction with a unique Tracking Number. You should print the receipt screen so that you may refer to it in the future. To view your bill payment history, point to the Bill Payment menu and click Bill Payment History. By default, the system displays 5 payments on the page, along with the following information: Payee, Amount, Payment Date, From Account, and Status. We will not be responsible for any late fees or finance charges that may be assessed by the payee, if your payment is not made according to the terms of this agreement. See “OUR LIABILITY FOR INCOMPLETE TRANSFERS OR BILL PAYMENT TRANSACTIONS”. FEES AND CHARGES Internet Banking fees are as follows:

We do not charge for General Internet Banking features; Normal check printing fees will be assessed when check orders are processed; There are other fees associated with your account that are described in our Fee Schedule. These fees may be amended from time to time.

ADDITIONAL BILL PAY CHARGES

Any charges incurred by the Bank for services or inquiries made on your behalf may be deducted from your account. These services may include but are not limited to: Payments returned from the merchant;  Proof of payment not necessitated by a dispute; Written correspondence to the merchant. There is no charge for any item needed to correct an error made by Congressional Bank

LIMITATIONS ON FREQUENCY AND AMOUNT

According to Federal Regulations, you may not make more than six (6) pre-authorized or automatic transfers from your money market or savings account during a given monthly statement period. There are no limits on the number of transfers you make from your checking account. However, daily limits and per transaction limits may apply for checking, savings, and money market transactions. Balances may include deposits subject to verification by us. The balance may also differ from your records due to deposits in process, outstanding checks or other withdrawals, payments or charges. We have the right to cancel transactions if sufficient funds are not available in your account. If an Internet Banking transaction and another electronic funds transfer occur on your account on the same day whereby funds are not available for both transactions, the electronic funds transfer will have priority and the Internet Banking transaction will be refused or may result in an overdraft on your account. Applicable “Insufficient Funds (NSF) Charges” may be assessed.

DISCLOSURE OF ACCOUNT INFORMATION

 We will disclose information to third parties about your account or the transactions you make:  To complete the transaction as necessary;  To resolve any errors that may have occurred in making a transaction; To verify the existence of sufficient funds to cover specific transactions upon request of a third party such as a credit bureau or merchant;  To comply with government agencies or court orders;  If you give your written permission.

YOUR ACCEPTANCE OF OUR PRIVACY POLICY

We understand how important privacy is to our Customers. We have taken steps to protect the privacy and security of your personal information as well as your financial transactions with us. By using our website, you are consenting to the terms of our Privacy Policy. Please do not use our website if you do not agree with the terms of the Privacy Policy which can be found on our website www.congressionalbank.com. We reserve the right, at our discretion, to change, add or remove any part of the Privacy Policy at any time

AUTHORIZATION TO REQUEST INFORMATION

You agree that the bank has the right to request or obtain information regarding your accounts from a payee or recipient, to resolve transaction posting problems that may occur.

USER ID AND PASSWORD

The User ID and password issued to you is for your security purposes. Your password is confidential and should not be disclosed to third parties. You are responsible for safekeeping your password. If you elect to provide your access information to an Account Aggregation Service, you agree to hold the bank harmless. For security purposes, the system will automatically prompt you to change your password if you have not changed it in 90 days. You should carefully select a password that is hard to determine. (We suggest that you stay away from names, dates, and information that may be easily guessed.) You agree not to disclose or otherwise make your password available to anyone not authorized to sign on your accounts. In order to ensure the security of your records, we will end your online session if no activity is detected for 20 minutes. This is to protect you in case you accidentally leave your computer unattended while you are logged on. When you return to your computer, simply re-enter your User ID and password to continue your session

NO SIGNATURE REQUIREMENT

When any payment, recurring transaction or other on-line service generates items to be charged to your account, you agree that we may debit the designated account without requiring your signature on the item and without any notice to you.

SPECIAL NOTICES TO BUSINESS CUSTOMERS

Business customers who sign up for and use our Internet Banking services must remember that should you change signers on your account or have employee turnover, it is your responsibility to change your Password immediately. The Bank will not be held liable for your losses should you fail to properly protect your assets due to negligence in securing your User Id and Password. The Electronic Funds Transfer Act is a consumer protection regulation and does not apply to commercial accounts. Separate disclosures and agreements, and certain financial disclosures may be required for commercial products, such as, but not limited to ACH Credit, Debit, or Direct Deposit Origination.

NOTICE OF LIABILITY

If you believe your password has been lost, stolen or used without your permission, contact the bank immediately by phone at 301-299-8810 or write us at the following address: Congressional Bank 6701 Democracy Blvd., Suite 400 Bethesda, MD 20817 FAX 240-380-1335 customerservice@congressionalbank.com . Tell us AT ONCE if you believe your password has been lost or stolen. Telephoning is the best way for the Bank to act on your lost or stolen card. If your statement shows transactions that you did not make, tell us at once. If you do not tell us within sixty (60) days after the statement was mailed to you, you may not get back any money lost after the sixty (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 hospital stay) kept you from telling us, we will extend the time period.

If you elect to provide your access information to an Account Aggregation Service, you agree to hold the bank harmless. Any loss sustained due to fraudulent activity arising from the aggregation service access becomes the responsibility of you, the customer.

BUSINESS DAYS

Our business days are Monday through Friday. Holidays are not included.

CUTOFF TIMES

Our Internet Banking product is available 24 hours a day, 7 days a week (with the exception of interruptions for product upgrades and system maintenance). However, the cutoff time for processing WIRE transfer is 5:30 p.m. EST. Monday through Friday, excluding holidays. The cutoff time for ACH processing is 7:30 p.m. EST for FIS Online Banking. Monday through Friday, excluding holidays.

DOCUMENTATION PERIODIC STATEMENT

You will get a monthly account statement from us for any account that has had a Transaction that month. Regardless of Account activity, you will get a statement at least quarterly. Transaction Receipts: Transaction Receipts are displayed at the time you make transfers or complete bill payments. Each Transaction Receipt has a unique Tracking Number and should be printed and kept for your records.

OUR LIABILITY FOR INCOMPLETE TRANSACTIONS

If we do not complete a transaction 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: If, through no fault of ours, you do not have available funds in your account to cover the transaction, or if the account has been closed by you or us, or if we cancel a payment or transfer because of insufficient funds;  If the money in your account is subject to legal process or other claim restricting such transaction;  If you have not given us proper instructions such as account numbers or other identifying information so that we can properly credit your account or complete the bill pay transaction;  If you do not allow enough time for your bill payment to be made, whether it’s made by electronic means or by mail;  If you do not follow our online instructions for completing the transaction;  If we make a bill payment that is on time, however, the merchant to whom it is sent to does not credit your account promptly after receipt; If the terminal or system was not working properly and you knew about the breakdown when you started the transaction;  If circumstances beyond our control (such as fire, flood or telecommunications failure) prevent the transaction, despite reasonable precautions that we have taken.  If the Account is dormant; If your own components making up the Online Banking System were not functioning properly.  If we have a reasonable basis for believing that unauthorized use of your Password or Account has occurred or may occur.  If you or we have terminated this Agreement or closed the Account.

VIRUS PROTECTION, SPYWARE and KEY LOGGING

The Bank is not responsible for any electronic virus or viruses that you may encounter. You are solely responsible for the maintenance, installations, and operation of your computer. We shall not be responsible for any errors, deletions, or failures that occur as a result of any malfunction of your computer or software, nor will we be responsible for any computer virus or key logging software that affects your computer or software while using our Online Banking Service. a. Virus Protection, Spyware & Key Logging: You should routinely scan your computer using reliable virus detection and spyware products. Undetected or unrepaired viruses may corrupt and destroy your programs, files, and even your hardware. Additionally, you may unintentionally transmit the virus to other computers. You should take steps to secure your computer and also scan it regularly for spyware and key logging software, which records the sequence of keystrokes used when accessing various sites, then transmits those keystrokes to an unauthorized third party to access or attempt access to your Account. It is your responsibility to protect your computer against this type of software. b. Firewalls: You should also utilize a firewall (hardware and/or software), especially if you have a broadband Internet connection such as DSL or cable modem. c. Patches: You should periodically update your operating system and browser for critical security related patches.

NOTICES AND COMMUNICATIONS 

It is your responsibility to notify us of any change in your mailing address, telephone numbers, e-mail address or name. Notice must be given in paper form so that we may verify its authenticity. E-mail requests that require changes to your account will not be acted upon. We are required to attempt to communicate with you only at the most recent mailing address provided to us. All notices from us will be effective when we have mailed them or delivered them to your last known address on our records. Notices from you will be effective when received by us at the telephone number or the address specified in this agreement. Any notice may be delivered to Congressional Bank, 6701 Democracy Blvd., Suite 400 Bethesda, MD 20817. We reserve the right to change the terms and conditions upon which this service is offered. We will mail a notice to you at least thirty (30) days before the effective date of any change in terms or conditions disclosed in the Agreement, as required by law. Use of this service is subject to existing regulations governing your account and any future changes to those regulations.

LINKS TO OTHER WEB SITES

Congressional Bank’s Online Banking service may contain links to other web sites, including sites for reordering checks, which are not owned or administered by Congressional Bank. These sites are independent from Congressional Bank and Congressional Bank does not endorse, approve, verify or control these sites and does not guarantee the accuracy, completeness, efficacy or timeliness of information contained therein.

NOTICE OF AMENDMENTS

You agree that the terms and conditions of this agreement including without limitation all fees and charges, additions or deletions of services provided at this site may be amended by us from time to time. We will notify you of amendments as required by applicable law. Your continued use of the Internet Banking services evidences your agreement to any amendment.

 In the event either party brings a legal action to enforce this agreement or collects amounts owing as a result of any account transaction, the prevailing party shall be entitled to reasonable attorneys’ fees and costs, including fees on any appeal, subject to any limits under applicable law.

ENFORCEMENT

In the event either party brings a legal action to enforce this agreement or collects amounts owing as a result of any account transaction, the prevailing party shall be entitled to reasonable attorneys’ fees and costs, including fees on any appeal, subject to any limits under applicable law.

TERMINATION OF AGREEMENT AND CANCELLATION OF SERVICES

You agree that we may terminate this agreement if:  We have determined that an account or the Internet Banking service has been mismanaged or abused in any way; You or any authorized user of your password breaches this or any other agreement with us;  We have reason to believe that there has been an unauthorized use of your account or password;  We notify you or any other party to your account that we have canceled or will cancel this Agreement;  You or any other party to your account terminate this Agreement by notifying us in writing;  The account balance goes to zero. We reserve the right to terminate your use of our Internet Banking services or this Agreement whether in whole or in part, at any time without prior notice. Any applicable ACH / Wire agreements will terminate in conjunction with the termination of this agreement. If we terminate this agreement, no further transfers or bill payments will be made, including but not limited to transfers or bill payments scheduled in advance or recurring transfers and bill payments. You or any other party to your account may terminate this Agreement, by sending written notice to Congressional Bank, 6701 Democracy Blvd., Suite 400 Bethesda MD 20817. Termination of service will be effective the first business day following receipt of written notice. Termination of this Agreement will not affect the rights and responsibilities of the parties under this Agreement for transactions initiated before termination.