Internet Banking Statement for Nassau Educators Federal Credit Union (NEFCU)

NEFCU is committed to protecting the confidentiality of each member's financial records. NEFCU is committed to taking all necessary actions to comply with state and federal laws and will take reasonable measures to protect the accuracy and privacy of all member information including but not limited to member information used while conducting business through the Internet, NYCE and ATM networks, fax services, the telephone, the mail, and other means of communication.

ePAL Online Service Electronic Funds Transfer Disclosure and Agreement

Please read this disclosure carefully and print it for your records. If you are unable to print this document, a copy can be provided to you by the Credit Union upon request.

This ePAL Online Service Electronic Funds Transfer Disclosure and Agreement as amended from time to time ("Agreement") sets forth the terms and conditions governing the use of ePAL "Online Account Access" and ePAL "Bill Payment" services (collectively "ePAL Online Services"). Disclosure information that applies to "Online Account Access" and "Electronic Bill Payment" services offered by NEFCU is given below. Read this Agreement completely and retain it with your personal records. By using the ePAL "Online Account Access" and "Electronic Bill Payment" services offered by NEFCU, you are agreeing to be bound by the terms and conditions of this Agreement. In this Agreement, the terms "you" and "your(s)" refer to the member, and the terms "we", "us", "our(s)" and "Credit Union" refer to Nassau Educators Federal Credit Union. This Agreement is incorporated by this reference and becomes a part of NEFCU's Electronic Funds Transfer Disclosure. This agreement, incorporated into any other terms and conditions of your Electronic Funds Transfer Disclosure and Agreement, remain in force as a revised agreement.

By accessing the ePAL Online services, you acknowledge electronic receipt of the Credit Union's ePAL Online Service Electronic Funds Transfer Disclosure and Agreement. You agree that you have read this Agreement in its entirety and will abide by its terms and conditions.

Password Protection; Access Security

You are responsible to prevent unauthorized access to your accounts. NEFCU has taken all of the necessary security precautions to ensure that our Online account access service is secure and that your financial information remains confidential. When you are using NEFCU's ePAL, you are using a secure site. The safeguarding of your ePAL and Bill Pay passwords is an essential element in protecting the confidentiality of your accounts. As an authorized owner on your accounts, you assume primary responsibility in protecting the security of your accounts by not revealing your social security number and password or account information to any unauthorized owner on any of your accounts with the credit union, even your closest friends and family members for your own protection. These numbers should be memorized and known only by you.

You should never walk away from your computer while you are still signed on to ePAL Online Account Access and should always log off when you are finished using ePAL. You should change your password immediately if you have reason to believe that your password may not be secure and contact the credit union to verify that all transactions posted against the account were authorized by you or another authorized user on the account.

ePAL Password: You sign on for the first time using your Phone PAL password known only by you. If you do not know your Phone PAL password or have never used Phone PAL, you can select a password of your choice by contacting the credit union. Once you access ePAL, you should change your password to one that will be easy for you to remember and keep "secret." When using ePAL online account access, you must use the proper social security number and secure password before being permitted access to your financial account information.

If you forget your ePAL password contact the credit union and you will be issued a temporary one, one that you should immediately change when you log on to ePAL. You change your password using the User Options button. You should not select a password that someone may be able to guess, such as your address or date of birth.

Bill Pay Account: After signing up for Bill Pay, your Bill Pay account will be activated within three business days. You will receive an email notification when this process is complete.

Additional Security Features using ePAL Online Account Access

NEFCU has taken the necessary steps to protect the safety of your account information over the Internet. The confidentiality of your accounts is maintained through the use of multiple secured networks, multiple data encryption techniques, firewalls and password protection. Your ePAL Online Account Access session has a time-out feature. This time-out feature will automatically log you off the session if you have exceeded the length of time-out (which is a specified period of time that can be changed in User Options) between using different screens within ePAL. Once you exceed the time span allowed by the time-out feature, you will need to sign onto ePAL again if you are not finished with your session. This provides increased security and helps reduce the risk that an unauthorized user can access your account information if you leave your computer unattended without logging off.

We use Enhanced Login Security (ELS) to help protect your online identity. This technology identifies you as the true "owner" of your accounts by recognizing not only your password, but the computer you’re working from as well. When ELS is enabled, a browser-based secure cookie with an individualized credential (ID) is stored on the computer as a second factor to verify your identity in addition to your user name and password. If access is attempted from a computer other than the one at which you set up ELS (if you log in from a public computer, for instance), challenge questions will be presented to prevent unauthorized access:

Scheduled Availability for ePAL and Transaction Posting Times

ePAL will normally be available 24-hours a day, seven days a week, with the exception of any computer system outages or system maintenance. In the event that the system is unavailable, NEFCU will notify you with a warning message that will appear on ePAL indicating why the system is unavailable for use.

All transactions processed for your accounts or loans within ePAL Online Account Access will be posted to your accounts immediately if processed during our normal business hours. Any transactions processed outside of our normal business hours, during a scheduled Holiday or a day we are closed will be processed the next business day.

Charges

ePAL Online Banking and Bill Payment is provided at no charge to all users. Refer to our fee schedule for NSF charges and other applicable charges. Our current fee schedule can always be accessed on our web site.

Statements

You will receive a monthly statement listing all the payments and/or transfers performed during that month using Online Banking and Bill Payment. You are required to keep the Credit Union informed of your current address to insure correct mailing of monthly statements.

Amendments

The Credit Union may change the terms and conditions of this Agreement from time to time by mailing written notice to you at your address as it appears on our records. If any change results in greater cost or liability to you, you will be given at least thirty (30) days prior notice of the change. Prior notice may not be given where an immediate change in terms or conditions is necessary to maintain the integrity of the system and/or the security of our ePAL Online Services or designated accounts.

Termination

You may terminate this Agreement with us at any time. The Credit Union reserves the right to terminate this agreement at any time. We may do so immediately if :

1. you or any authorized user of your account breaches this or any other agreement with the Credit Union;
2. we have reason to believe that there has been or might be an unauthorized use of your account (confirmation will be sent to the address of record);
3. you or any authorized user of your account requests that we do so;
4. if you cause a loss to the credit union (confirmation will be sent to the address of record);
5. if your use of Online Account Access is inactive for a period of six months;
6. if your membership ceases.

Collection Costs

You agree to pay the Credit Union our reasonable expenses, including court costs and attorney's fees, for enforcing our rights under this Agreement.

Additional Benefit Enhancements

The Credit Union may from time to time offer additional services to you in connection with your accounts. Some services may be at no additional cost to you and others may involve a specified fee. You understand that the Credit Union is not obligated to offer such services and may withdraw or change them at any time.

Reservation of Rights

Failure or delay by the Credit Union to enforce any provision of this Agreement or to exercise any right or remedy available under this Agreement, or at law, shall not be deemed a waiver and the Credit Union expressly reserves the right to enforce such provision, or to exercise such right or remedy, at a later date.

Other Agreements

Except as stated otherwise in the Agreement, this Agreement does not alter or amend any of the terms or conditions of any other agreement you may have with the Credit Union.

Severability

If any part of this Agreement should be held to be unenforceable, the remaining provisions of this Agreement shall remain in full force and effect

Electronic Fund Transfers - your rights and responsibilities

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.

ePAL Computer Transfers - types of transfers, dollar limitations, and charges - You may access your account(s) by computer 24 hours a day by using your personal identification number and your social security number, to:

• transfer funds from checking or savings to checking or savings
• transfer funds from LOC to checking or savings
• transfer funds from money market to savings or checking
• minimum withdrawal $250.00
• make payments from checking or savings to credit card or loans
• make payments from money market to credit card or loans
• minimum payment $250.00
• make payments from checking or savings to third parties
• get information about:
• your deposit and loan account balances
• minimum of three months history for your deposit accounts

Limitations on frequency of transfers. In addition to those limitations on transfers elsewhere described, if any, the following limitations apply:

• During any statement period, you may not make more than six withdrawals or transfers from a Savings account to another credit union account of yours or to a third party by means of a preauthorized, automatic or computer transfer or telephonic order or instruction. No more than three of the six transfers may be made by check, draft, debit card (if applicable), or similar order to a third party. If you exceed the transfer limitations set forth above in any statement period, your account will be subject to closure by the credit union.

Unauthorized Transfers

(a) Consumer liability. 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, 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 period.

(b) Contact in event of unauthorized transfer. If you believe that someone has transferred or may transfer money from your account without your permission, call or write us at the telephone number or address listed at the bottom of this brochure.

Error Resolution Notice

In Case of Errors or Questions About Your Electronic Transfers, Call or Write us at the telephone number or address listed in this brochure, 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 the FIRST statement on which the problem or error appeared.

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 business days (20 business days if the transfer involved a new account) after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days (90 days if the transfer involved a new account, a point-of-sale transaction, or a foreign-initiated transfer) to investigate your complaint or question. If we decide to do this, we will credit your account within 10 business days (20 business days if the transfer involved a new account) 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. 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.

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.

Additional Disclosures Applicable to ePAL "Online Account Access"

Transactions Available with "ePAL Online Account Access"

The following is a list of the transactions available when you have logged on to "ePAL Online Account Access:"

1. review balance, rate and other information for all your accounts;
2. make transfers between your NEFCU accounts or to non-NEFCU accounts registered in the ePAL system;
3. make payments to your loans;
4. make payments to third parties through "Pay People" via e-mail notification
5. review transaction history of activity for your accounts;
6. obtain stock quotes and track your own personal stock portfolio;
7. download statements to personal financial management software including Quicken® and Microsoft® Money
8. change your ePAL password;
9. sign up for Bill Pay;
10. sign up for online "Funds Transfer" and "Pay People" services
11. contact us securely via secure e-Mail.

ePAL "Online Account Access" Limitations

No more than six preauthorized, automatic, or telephone transfers may be made from your Share/Savings account or money market deposit account to another account at the Credit Union or to a third party in any calendar month, and no more than three of these six transfers may be made by check, draft, debit card, or similar order payable to a third party. If you exceed, or attempt to exceed, these transfer limits, the excess transfer requests may be refused or reversed, a fee may be imposed on the excess transfer request, and the Credit Union may reclassify or close your account.

Our Liability for Failure to Make Transfers

If we do not complete a transaction to or from your accounts on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages. However, we will not be liable for any failure to make a transfer and/or payment, including any finance charges or late fees incurred as a result, unless you receive a confirmation number. There are some other exceptions where we will NOT be liable, for instance, if:

1. through no fault of ours, you do not have enough money in your account to make the transaction;
2. the transaction would go over the credit limit on your credit line;
3. the network system was not working properly and you were aware of the malfunction when you started the transaction;
4. circumstances beyond our control (such as fire, flood, power failure, or computer down-time) prevented the transactions despite reasonable precautions that we have taken;
5. the money in your account is subject to an uncollected funds hold, legal process or any other encumbrance or agreement restricting a transaction;
6. your password/Personal Security Code has been entered incorrectly;
7. the payee mishandles or delays a payment sent by our bill payment service provider;
8. you have not provided our bill payment service provider with the correct names, phone numbers, or account information for those persons or entities to whom you wish to direct payment; or
9. the failure to complete the transaction is done to protect the integrity of the system or to protect the security of your account;
10. you do not receive a confirmation number.

There may be other exceptions not specifically mentioned above.

Additional Disclosures Applicable to ePAL "Electronic Bill Payment" Service

Transactions Available with "Electronic Bill Payment"

The following is a list of transactions available for Electronic Bill Payment Service:

1. Add/Edit Merchants: Merchant refers to the entity to which you pay bills. The merchant can be a company, organization, or individual. The Add/Edit Merchant feature allows you to add merchants to, delete merchants from or edit merchant information on your personal list of merchants. Recurring payments are scheduled under this feature,
2. Pay Bills: The Pay Bills feature allows you to schedule payments. This feature enables you to specify the amount of the payment and the processing date, and
3. Stop a pending payment that has not been processed as an electronic bill payment;
4. View payment history for your pending payments and processed payments.

ePAL "Electronic Bill Payment" Service Limitations

The following are limitations to the use of the Credit Union's Electronic Bill Payment Service:

1. bill payments can only be made from your share draft/checking account or money market account;
2. payments cannot be made for tax payments, court-ordered payments or payments to payees outside of the United States;
3. if you close the designated bill payment share draft/checking account or money market account, all scheduled payments will be stopped;
4. you cannot stop a payment if the payment has already been processed; and
5. you can schedule payments 24 hours a day, seven days a week, however, payments scheduled on a Saturday, Sunday, or holiday will be processed within one to two business days.
6. No more than six preauthorized, automatic, or telephone transfers may be made from your Share/Savings account or money market deposit account to another account at the Credit Union or to a third party in any calendar month, and no more than three of these six transfers may be made by check, draft, debit card, or similar order payable to a third party. If you exceed, or attempt to exceed, these transfer limits, the excess transfer requests may be refused or reversed, a fee may be imposed on the excess transfer request, and the Credit Union may reclassify or close your account.

Bill Payment Returns/Overdrafts

You will be subject to our Non Sufficient Funds (NSF) fee as stated on our Fee Schedule. Our current fee schedule can always be accessed on our home page at www.nassaued.org. You also agree that a NSF fee may be charged to your account even if the payment is not returned but is paid and overdraws your payment account. If a bill payment is not paid, you will receive written notification. A bill payment may be not be paid if the funds are not available for withdrawal from your account or if your account has been closed.

Electronic Bill Payment Methods and Restrictions

Payments are made to your payee either electronically via the Automated Clearing House (ACH) or by check. The method of payment depends upon the processing method that can be accommodated by the payee or by our bill payment service provider. It is important that you take into consideration what method of bill payment will be used when scheduling bill payments to ensure payment deadlines are met. If the payee accepts electronic bill payment, the payment may take up to three business days to process. If the payee does not accept electronic bill payment, the payment will be sent in a check form, and may take up to five business days to process.

If you request a payment that is honored and your payee received credit but we are unable to successfully collect the funds to cover these payments, your bill payment account may be blocked from further use until payment is received in full.

Electronic Bill Payment Account Debits

Your account will be debited within two business days after the scheduled payment's processing date.

Electronic Bill Payment Service Responsibilities

You are responsible for:

1. any late payment or service fees charged by merchant(s) and any overdraft, NSF or stop payment fees charged by NEFCU Credit Union as a result of these transactions;
2. data input of payee information (payment amount(s), name, address and any other pertinent information);
3. the payment date indicated by you must always be a business day; if it is not, the payment date will be deemed to be the first business day after the date indicated;
4. written notification to the Credit Union in the event you wish to cancel this service.

Our Liability for Failure to Make Transfer

If we do not complete a transaction to or from your accounts 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:

1. through no fault of ours, you do not have enough money in your account to make the transaction;
2. your account is closed;
3. the transaction would go over the credit limit on your credit line;
4. the network system was not working properly and you were aware of the malfunction when you started the transaction;
5. circumstances beyond our control (such as fire, flood, power failure, or computer down-time) prevented the transactions despite reasonable precautions that we have taken;
6. the money in your account is subject to an uncollected funds hold, legal process or any other encumbrance or agreement restricting a transaction;
7. your password/Personal Security Code has been entered incorrectly;
8. the payee mishandles or delays a payment sent by our bill payment service provider or Funds Transfer/Pay People provider;
9. you have not provided our bill payment service provider or Funds Transfer/Pay People provider with the correct names, phone numbers, or account information for those persons or entities to whom you wish to direct payment; or
10. the failure to complete the transaction is done to protect the integrity of the system or to protect the security of your account.

There may be other exceptions not specifically mentioned above.