TERMS AND CONSENT APPLICABLE TO ELECTRONIC SIGNATURES, ELECTRONIC CONTRACTS, ELECTRONIC RECORDS, ELECTRONIC MAIL
("E-MAIL") FACSIMILE AND OTHER ELECTRONIC SERVICES AND COMMUNICATIONS

Acceptance f each application from a consumer ("you" or "your") to establish an account with New South Federal Savings Bank ("we" or "us" or "Bank") is subject to your agreement to the following terms and conditions:

Agreement. You specifically consent and agree that the Bank may provide all disclosures, agreements, contracts, periodic statements, receipts, notices, modifications, amendments, and all other evidence of our transactions with you or on your behalf electronically (all such documentation is referred to as "electronic record(s)"). You have a right to receive a paper copy of any of these electronic records, but we reserve the right to charge you for paper copies of records in accordance with the Bank"s Fee Schedule.
You may withdraw your consent by un-checking the box for electronic records under the "Account Preferences" option of the Internet banking services. This will revoke your agreement to receive records electronically. You can also request a paper copy or to withdraw your consent and agreement to receive electronic records by calling, writing or e-mailing us at:

New South Federal Savings Bank
2000 Crestwood Boulevard

Birmingham, AL 35210

deposits@newsouthfederal.com1-888-NEW-SOUTH

Please also refer to our Truth in Savings Disclosure and current Fee Schedule for any applicable fees.

Equipment and Software Requirements. To receive electronic records and to access our Internet banking services, you need a computer with a modem and web browser (such as Netscape Navigator", Microsoft Internet Explorer" or an equivalent). Use and access to our on-line / electronic banking services requires the use of a browser that supports SSL and Cookies. You must also have an Internet electronic mail account/address. You are responsible for the set-up and maintenance of your home computer and modem.

Please see our Security FAQ (frequently asked questions) at http://www.newsouthfederal.com/deposits/faq_security.php for the minimum requirements that your equipment must meet to use the Bank"s Internet banking services.

Acknowledgment. You acknowledge and agree that you have an obligation to notify the Bank of any change in your electronic mail ("email") address or other location to which the electronic records may be provided. If you withdraw your consent to receive electronic records, you acknowledge that you have the obligation to notify the Bank of the e-mail address or other location to which the records may be provided. You further acknowledge you are capable of reviewing, retaining and printing the electronic records using the equipment and software meeting the requirements designated above. You also acknowledge and agree that if a statute, regulation or other rule of law requires that a record be retained, such requirement shall be satisfied if the record accurately reflects the information set forth therein after it was first generated in its final form as an electronic record; and if the record remains accessible for any period required by law for reference, transmission or printing.

Electronic Signature. You consent and agree that your use of a key pad, mouse or other device to select an item, button, icon or similar act/action while using any electronic service we offer; or in accessing or making any transactions regarding any agreement, acknowledgment, consent, terms, disclosures or conditions constitutes your signature, acceptance and agreement as if actually signed by you in writing and further acknowledge and agree that the taking of any such actions by you evidence your intent to sign any such document. You also agree that no certification authority or other third party verification is necessary to the validity of your electronic signature; and that the lack of such certification or third party verification will not in any way affect the enforceability of your signature or any resulting contract between you and the Bank.

Electronic Records. You acknowledge and agree that we may in our discretion store all records electronically, and that the Bank will not retain and will have no obligation to retain any original documents for any period of time. Electronic storage will apply to all banking records including but not limited to checks, statements, deposit tickets, transaction records, notes, mortgages, deeds of trust and other loan and/or security documentation. You acknowledge and understand that the Bank will routinely destroy all original documentation. We may store records electronically via imaging, scanning, filming or other technology used in the financial services industry for the storage of documentation via internal processes or third-party processors that we approve for these services. You agree that such storage shall be secure, and further agree that such records shall for all purposes be recognized and admissible in evidence or otherwise to prove the agreements, rights and obligations of the parties pursuant to any such records.