CREDIT UNION ONLINE BANKING AGREEMENT AND DISCLOSURE

This Online Credit Union Agreement and Disclosure ("Agreement") describes your rights and obligations as a user of the online credit union service known as Home Financial Services or the Bill Payment service ("Services"). It also describes the rights and obligations of the Milford Federal Credit Union ("Credit Union").

Please read this Agreement carefully.

By requesting and using one of these Services, you agree to comply with the terms and conditions of this Agreement.

1. Definitions
   The following definitions apply in this Agreement:
   1. "Authorized Representative" refers to a person with authority (with respect to the account);
   2. "Bill Payment" is the online service that enables the scheduling of bill payments using a personal computer;
   3. "ISP" refers to your Internet Service Provider;
   4. "Online Banking" is the internet-based service providing access to your Credit Union account(s);
   5. "Online Account" means the Milford Federal Credit Union account from which you will be conducting transactions using a Service;
   6. "Password" is the customer-generated code selected by you for use during the initial sign-on, or the codes you select after the initial sign-on, that establishes your connection to the Service;
   7. "PC" means your personal computer which enables you, with the Internet browser and ISP, to access your Online Account;
   8. "Time of day" references are to Eastern Standard Time;
   9. "User ID" is the Credit Union-generated identification code assigned to you for your connection to the Service;
   10. "We", "us", or "Credit Union" refer to the Milford Federal Credit Union which offers the Services and which holds the accounts accessed by the Services; and
   11. "You" or "your" refers to the owner of the account or the authorized representative.
2. Access to Services
   Instructions on how to use the Online Banking can be found under the help section of the Online Banking software once you have logged in and accepted the Internet Banking Disclosure. Instructions on how to use the Bill Payer Services can be found after enrollment by clicking the “Bill Pay” button once you have logged into the Online banking service. You will gain access to your Online Accounts through the use of your Internet-enabled device, your ISP, your password/PIN and your User ID. You may access your Online Accounts 24 hours a day, seven (7) days a week. However, availability of the Services may be suspended for brief periods of time for purposes of maintenance, updating and revising the software.
   
   For purposes of transactions, the Credit Union's business days are [Monday through Friday], excluding holidays and weekends. All Online Banking transaction requests received after 4:00 P.M. on business days and all transactions which are requested on Saturdays, Sundays, or holidays on which the Credit Union chooses to remain closed, will be processed on the Credit Union's next business day. The Credit Union's business day begins at 9:30 a.m.
3. Credit Union Transactions with Online Banking

1. If you notify the Credit Union within two (2) business days after your password was lost or stolen, your liability will not exceed $50.00 or the amount of the unauthorized EFTs that occur before notification, whichever is less
2. If you fail to notify the Credit Union within two (2) business days after your password was lost or stolen, your liability will not exceed the lesser of $500.00 or the total of:

1. You must report an unauthorized EFT which appears on your periodic statement, no later than 60 days of transmittal of the statement to avoid liability for subsequent transfers. Your liability will not exceed the amount of the unauthorized EFTs that occurred with the 60-day period. You may also be liable for the amounts as described in sections 1 and 2 above.
2. If the report is made orally, we will require that you send the complaint or question in writing within 20 business days. We will notify you with the results of the investigation within 10 business days and will correct any error promptly. If more time is needed, however, we may take up to 45 days to investigate a complaint or question. If this occurs, we will credit your account within 10 business days for the amount you think is in error. This will allow you to use the money during the time it takes us to complete our investigation. If your complaint or question is not received in writing within 10 business days, we may not credit your account until the investigation is completed. If an alleged error involves an electronic fund transfer outside a state or territory or possession of the United States, the applicable time periods for action by us are 20 business days (instead of 10) and 90 calendar days (instead of 45). If we determine that no error occurred, we will send you a written explanation within three business days after the investigation are complete. You may request copies of the documents that were used in the investigation.
3. You may notify the Credit Union by telephone, writing, or email provided on our web site. Notification by general e-mail to report an unauthorized transaction is not secure and therefore not advised.

1. Your name and account number
2. A description of the error or the transfer in question and an explanation concerning why you believe it is an error or need more information
3. The dollar amount of the suspected error and date on which it occurred.

9. Liability

           Our Liability. This section explains our liability to you only to the extent that any other agreements, notices or disclosures have not separately disclosed our liability. In no event shall we be liable to you for failure to provide access to your Online Banking or Bill Payment services accounts. Unless otherwise required by applicable law, we are only responsible for performing the Online Banking and Bill Payment services as delineated in this Agreement. We will be liable for the amount of any material losses or damages incurred by you and resulting directly from our gross negligence.

We will not be liable to you in the following instances:

1. If through no fault of the Credit Union, you do not have enough money in your account to make the transfer.
2. If circumstances beyond our control (such as fire, flood, power outage, equipment or technical failure or breakdown) prevents the transfer despite reasonable precautions that we have taken.
3. If there is a hold on your account, or if access to your account is blocked, in accordance with Credit Union and Online Banking policy.
4. If your funds are subject to a legal proceeding or other encumbrance restricts the transfer.
5. If your transfer authorization terminates by operation of law.
6. If you believe someone has accessed your accounts without your permission and you fail to notify the Credit Union immediately.
7. If you have not properly followed the instructions on how to make a transfer included in this Agreement.
8. If we have received incomplete or inaccurate information from you or a third party involving the account or transfer.
9. If we have a reasonable basis for believing that unauthorized use of your Password or account has occurred or may be occurring or if you default under this Agreement, the deposit account agreement, a credit agreement or any other agreement with us, or if we or you terminate this Agreement.

IN NO EVENT SHALL WE HAVE ANY LIABILITY TO YOU OR ANY THIRD PARTY FOR ANY INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES RESULTING FROM OR ARISING OUT OF THIS AGREEMENT.

1. 1. Indemnification. You agree to indemnify, defend and hold us, our affiliate companies, directors, officers, employees and agents harmless against any third party claim, demand, suit, action or other proceeding and any expenses related to an Online Banking or Bill Payment account.
   2. Third Parties. We are not liable for any loss or liability resulting from any failure of your equipment or software, or that of an internet browser provider such as Netscape (Netscape Navigator browser) or Microsoft (Microsoft Explorer browser), by an internet access provider, or by an online service provider, nor will we be liable for any direct, indirect, special or consequential damages resulting from your access to or failure to access an Online Banking or Bill Payment account.
   3. Virus Protection. The Credit Union is not responsible for any electronic virus or viruses that you may encounter. We suggest that you routinely scan your PC using a virus protection product. An undetected virus may corrupt and destroy your programs, files, and your hardware.

9. General Terms and Conditions

           Credit Union Agreements. In addition to this Agreement, you and the Credit Union agree to be bound by and comply with the requirements of the agreements applicable to each of your Online Accounts. Your use of the Online Banking Service or the Bill Payment Service is your acknowledgment that you have received these agreements and intend to be bound by them. 

               Changes and Modifications. The Credit Union may modify the terms and conditions applicable to the Services from time to time. We may send any notice to you via e-mail and you will have to be deemed to have received it three days after it is sent. The revised terms and conditions shall be effective at the earliest date allowed by applicable law. We reserve the right to terminate this Agreement and your use of the Services in whole or in part at any time without prior notice.

                Assignment. We may assign this Agreement to an affiliate of the Credit Union or any successor in interest in the event of a merger, reorganization, change of control, acquisition or sale of all or substantially all assets of the business to which this Agreement is related without the other party's prior written consent.

            Notices. Unless otherwise required by applicable law, any notice or written communication given pursuant to this Agreement may be sent to you electronically.

              Disclosure of Information. We will only disclose information to third parties about your account or transfers you make under the following circumstances: