Electronic Fund Transfers - Your Rights and Responsibilities

This disclosure applies to consumer accounts only. Electronic Funds Transfers may be one-time occurrences or may reoccur as directed by you. The Electronic Funds Transfers we are capable of handling are listed below. Some of these types of transfers may not apply to your account. Please read this disclosure carefully because it tells you your rights and obligations for these transactions. You should keep this disclosure for future reference. As used in this disclosure, the words "you" and "your" mean the account holder(s) and "we," "us," "our," and "Bank" mean New South Federal Savings Bank.

TRANSFER TYPES AND LIMITATIONS

Preauthorized Credits. You may use preauthorized electronic fund transfers to make certain direct deposits to your checking or savings account(s).

Preauthorized Payments. You may make arrangements to pay certain recurring bills directly from your checking or savings account(s).

Electronic Check Conversion and Electronic Returned Check Charge. Your check can result in an electronic funds transfer. This may occur at the point of purchase or when you provide your check for payment by mail or other means. Your check is scanned for information by the merchant or service provider. This information is then used to make a onetime electronic transfer from your account. In the event your check is returned for insufficient funds, a merchant or service provider may initiate an electronic funds transfer to collect a fee for the returned check. Your authorization to make these types of electronic funds transfers may be expressed in writing or implied through the posting of a sign.

Access Device. The following cards and/or personal identification numbers (PIN), passwords, or codes may be used to initiate electronic fund transfers on your account:

Your Automated Teller Machine (ATM) Card and/or PIN

Your Visa - Debit Card and/or PIN

Your Internet Banking User Identification and Password

Your Customer Service Center Telephone Transfers PIN

You may use your account access device to:

Withdraw cash from your checking, money market, or savings account(s)

Make deposits to your checking, money market, or savings account(s)

Obtain balance information for your checking, money market, or savings account(s)

Transfer funds between your checking, money market, or savings accounts whenever you request

Pay for purchases at places that have agreed to accept your access device

Pay bills directly by personal computer from your checking account in the amount and on the days that you request

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

You may not use your access device for any illegal transaction.

Limitations on Frequency of Transfers.

Money Market Accounts. Transfers from a Money Market account to another account or to third parties by preauthorized, automatic, telephone, or computer transfer are limited to six per statement cycle with no more than three by check, draft, debit card, or similar order to third parties.

Savings Accounts. Transfers from a savings account to another account or to third parties by preauthorized, automatic, telephone, or computer transfer are limited to six per statement cycle with no transfers by check, draft, debit card, or similar order to third parties.

ATM Transactions. Cash withdrawals and transfers between your accounts at an automated teller machine using your ATM Card and Pin or your Visa®Debit Card and PIN are limited to five per business day.

ATM Card Point-of-Sale Transfer Service. Purchases of goods and services from participating merchants using your ATM Card are limited to five per business day.

Visa®Debit Card Point-of-Sale Transfer Service. Purchases of goods and services from participating merchants using your Visa®Debit Card are limited to five per business day.

Visa®Debit Card Cash Advances. Use of your Visa®Debit Card to obtain a cash advance is limited to once per business day.

Online Bill Payment Service. Payments will be initiated or sent only on a business day. Payments cannot be made to payees outside of the United States or in a foreign country. You may not make a payment of alimony, child support, taxes, or other governmental fees or court directed payments through the Online Bill Payment Service.

For security reasons, there are other limits on the number of transfers you may make using ATMs and point-of-sale transfer service.

Limitations on Dollar Amounts of Transfers.

Cash Withdrawals. You may withdraw up to $500.00 each business day at an automated teller machine using your ATM Card and PIN or your Visa®Debit Card and PIN.

ATM Card Point-of-Sale Transfer Service. You may purchase up to $250.00 in goods and services, including cash back, from participating merchants each business day using point-of-sale transfer services.

Visa®Debit Card Point-of-Sale Transfer Service. You may purchase up to $500.00 in goods and services, including cash back, from participating merchants each business day using point-of-sale transfer services.

Visa®Debit Card Cash Advances. You may obtain one cash advance of up to $250.00 each business day using your Visa®Debit Card.

Online Bill Payment Service. You may make payments in any amount from $1.00 to $9,999.99 using our Online Bill Payment Service. The maximum amount of the payments that you can send out per business day is $20,000.00.

For security reasons, there are other limits on the amount of withdrawals you may make using ATMs and point-of-sale transfer service.

CHARGES FOR ELECTRONIC FUNDS TRANSFERS

Direct Deposits. We will not charge you for preauthorized deposits to any account.

ATM Fees. You may be charged a fee for certain ATM transactions. Please refer to the applicable Truth-in-Savings Disclosure and the current Fee Schedule to determine which fees apply to your account.

ATM Surcharges. When you use an ATM not owned by us, you may be charged a fee, typically referred to as a "surcharge," by the ATM operator and/or network. You may be charged a fee for a balance inquiry even if you do not complete a fund transfer. Any surcharge imposed by the ATM operator and/or network is in addition to any ATM transaction fee that we may impose.

Visa®Exchange Rate: If you incur a charge in foreign currency, the charge will be converted by Visa®into an amount in U.S. dollars using the procedures in the Visa®Operating Regulations in effect at the time the transaction is processed. Because of fluctuations in foreign exchange rates, the conversion rate in effect on the processing date may differ from the rate in effect on the transaction or posting date.

SUMMARY OF YOUR LIABILITY FOR UNAUTHORIZED TRANSFERS

(a) Consumer liability.

* Generally. Tell us AT ONCE if you believe your access device has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account (plus your maximum overdraft line of credit, if applicable.) If you believe your access device has been lost or stolen, and you tell us within 2 business days after you learn of the loss or theft, you can lose no more than $50 if someone used your access device without your permission.

If you do NOT tell us within 2 business days after you learn of the loss or theft of your access device, and we can prove we could have stopped someone from using your access device without your permission if you had told us, you could lose as much as $500.

Also, if your statement shows transfers that you did not make, tell us at once. If you do not tell us within 60 days after the statement was mailed to you or made available online, you may not get back any money you lost after the 60 days if we can prove that we could have stopped someone from taking the money if you had told us in time.

If a good reason (such as a long trip or a hospital stay) kept you from telling us, we will extend the time periods.

* Additional Limit on Liability for Visa®-branded Card. Unless you have been grossly negligent or have engaged in fraud, you will not be liable for any unauthorized transactions using your lost or stolen Visa®-branded Card. This additional limit on liability does not apply to ATM transactions, to transactions using your Personal Identification Number which are not processed by VISA®, or to commercial card transactions.

(b) Contact in event of unauthorized transfer. If you believe your access device has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, call us at the toll-free number listed below or write to us at the address listed below.

(c) Business days. For purposes of these disclosures, our business days are Monday through Friday. Holidays are not included.

RIGHT TO RECEIVE DOCUMENTATION OF TRANSFER.

(a) Preauthorized credits. If you have arranged to have direct deposits made to your account at least once every sixty (60) days from the same person or company, you can call us toll-free at 1-888-NEWSOUTH (1-888-639-7688) to find out whether or not the deposit has been made.

(b) Periodic statements. If your account is not accessible via the Internet, you will get a monthly account statement covering your checking account and your money market account. You will also get a monthly account statement covering your savings account unless there are no transfers in a particular month to or from your savings account. In any case, you will get the statement covering your savings account at least quarterly. If your account is accessible via the Internet, online statements are available 24 hours a day, 7 days a week. See Truth-in-Savings Disclosure and current Fee Schedule for fees that apply to paper statements for accounts accessible via the Internet.

STOP PAYMENT PROCEDURE and NOTICE OF PAYMENT OF VARYING AMOUNTS

(a) 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 or write to us at the toll-free number or address listed below in time for us to receive your request three (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 fourteen (14) days after your call.

(b) Notice of varying amounts. If these regular payments may vary in amount, we or the person you are going to pay will tell you ten (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 will differ by more than a certain amount from the previous payment or when the amount would fall outside certain limits that you set.

(c) Liability for failure to stop payment of preauthorized transfer. If you order us to stop one of these payments three (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 as provided by federal law.

(d) Charges for stop payments. For each stop payment you request, we will charge you our standard stop payment charge as shown on the current Fee Schedule at the time of your stop payment request.

SUMMARY OF OUR LIABILITY FOR FAILURE TO MAKE TRANSFER.

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 as provided by federal law. However, there are some exceptions. We will not be liable for instance: (1) if, through no fault of ours, you do not have enough money in your account to make the transfer; (2) if you have a line of credit and the transfer would cause you to go over the credit limit; (3) if the automated teller machine where you are making the transfer does not have enough cash; (3) if the terminal or system was not working properly and you knew about the breakdown at the time the transfer should have occurred; (4) if circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken; or (5) if the funds in your account are subject to a court order or other restriction preventing the transfer. There may be other exceptions stated in our agreements with you.

DISCLOSURE OF ACCOUNT INFORMATION TO THIRD PARTIES

We will disclose information to third parties about your account or the transfers you make: (1) where it is necessary for completing transfers;(2) in order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant;(3) in order to comply with government agency or court orders; (4) if you give us your written permission; or (5) as disclosed in our Privacy Notice.

ERROR RESOLUTION NOTICE

In case of errors or questions about your electronic transfers: Telephone us at the toll-free number listed below or write to us at the address listed below 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 sixty (60) days after we sent the FIRST statement on which the problem or error appeared. (1) Tell us your name and account number; (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; and (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 ten (10) business days.

We will generally tell you the results of our investigation within 10 business days after we hear from you. However, we will tell you the results of our investigation within 5 business days for a Visa®Debit Card point-of-sale transaction and within 20 business days for a new account. We will correct any error promptly. (Your account is considered a new account for the first 30 days after the first deposit is made, unless each of you already has an established account with us before this account is opened.)

If we need more time, however, we may take up to 45 days to investigate your complaint or question. We may take up to 90 days if the transfer involved a new account, a point-of-sale transaction, or a foreign-initiated transfer. If we decide to do this, we will credit your account within 10 business 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. However, we will credit your account within 5 business days for Visa®Debit Card point-of-sale transaction and within 20 business days if the transaction involved a new account. 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 results within three business days after completing our investigation. If we decide that there was no error, we will send you a written explanation. You may ask for copies of the documents that we used in our investigation.

NEW SOUTH FEDERAL SAVINGS BANK

DEPOSIT SERVICES

2000 CRESTWOOD BLVD.

BIRMINGHAM, ALABAMA 35210

Business Days: Monday through Friday

Excluding Federal Holidays

Phone: 1-888-NEWSOUTH (1-888-639-7688)