Indicated below are types of Electronic Fund Transfers we are capable of handling, some of which may 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. 
 
Electronic Fund Transfers Initiated By Third Parties. 
You may authorize a third party to initiate electronic fund transfers between your account and the third party's account.  These transfers to make or receive payment may be one-time occurrences or may recur as directed by you.  These transfers may use the Automated Clearinghouse (ACH) or other payments network.  Your authorization to the third party to make these transfers can occur in a number of ways.  In some cases, your authorization can occur when the merchant posts a sign informing you of their policy.  In all cases, the transaction will require you to provide the third party with your account number and financial institution information.  This information can be found on your check as well as on a deposit or withdrawal slip.  Thus, you should only provide your financial institution and account information (whether over the phone, the Internet, or via some other method) to trusted third parties whom you have authorized to initiate these electronic fund transfers.  Examples of these transfers include:

· Preauthorized credits - You may make arrangements for certain direct deposits to be accepted into your checking or savings.
· Preauthorized payments - You may make arrangements to pay certain recurring bills from your checking, savings or MMDA.
· Electronic check conversion.  You may provide your check to a merchant or service provider who will scan the check for the encoded financial institution and account information.  The merchant or service provider will then use this information to convert the transaction in an electronic fund transfer.
· Electronic returned check charge.  You may authorize a merchant or service provider to electronically collect a charge in the event a check is returned for insufficient funds.

Cash Card transactions - types of transactions - You may access your account(s) by ATM using your Cash Card and your personal identification number (PIN) to:

· withdraw cash from checking, savings or MMDA

· transfer funds from savings to checking

· transfer funds from checking to savings

· get balance information about checking, savings or MMDA

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

Check Card ATM transactions - types of transactions - You may access your account(s) by ATM using your Check Card and your personal identification number (PIN) (as applicable) to:

· withdraw cash from checking, savings or MMDA

· transfer funds from savings to checking

· transfer funds from checking to savings

· get balance information about checking, savings or MMDA

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

Check Card point-of-sale transactions - types of transactions - You may access your checking or your Savings account(s) by debit card to do transactions that participating merchants will accept, including:

· purchase goods in person, by phone, or online

· pay for services in person, by phone, or online

· get cash from a participating merchant or financial institution

Currency Conversion -  When you use your VISA card at a merchant that settles in currency other than U.S. dollars, the charge will be converted to the U.S. dollar amount. The currency conversion rate used to determine the transaction amount in U.S. dollars is either a government-mandated rate or the wholesale market rate in effect the day before the processing date, increased by 1%.

Foreign Transaction Fee - When you use your VISA card on a foreign transaction that does not convert to a different currency a transaction fee of 0.8% will apply.

Advisory Against Illegal Use - You agree not to use your card(s) for illegal gambling or other illegal purposes. Display of a payment card logo by, for example, an online merchant does not necessarily mean that transactions are lawful in all jurisdictions in which the cardholder may be located.

Internet Banking - types of transfers - You may access your accounts by computer at www.heartlandstatebank.com and using your personal identification number (PIN) and social security number to:

· transfer funds from savings to checking

· transfer funds from checking to savings

· transfer funds from line of credit to savings

· transfer funds from line of credit to checking

· transfer funds from checking to line of credit

· transfer funds from savings to line of credit

· make payments from savings to line of credit

· make payments from checking to line of credit

· get balance information about checking, savings, certificate of deposit, line of credit or MMDA

· get withdrawal history about checking, savings, certificate of deposit, line of credit or MMDA

· get deposit history about checking, savings, certificate of deposit, line of credit or MMDA

· get transaction history about checking, savings, certificate of deposit, line of credit or MMDA

Limits and fees - Please refer to our fee disclosure for information about fees and limitations that may apply to these electronic fund transfers.

ATM Operator/Network Fees - When you use an ATM not owned by us, you may be charged a fee by the ATM operator or any network used (and you may be charged a fee for a balance inquiry even if you do not complete a fund transfer).

Limitations on frequency of transfers - In addition to those limitations on transfers elsewhere described, if any, the following limitations apply to your savings, MMDA account(s):

During any calendar month or statement cycle of at least four weeks, you may not make more than six withdrawals or transfers to another account of yours or to a third party by means of a preauthorized or automatic transfer or telephone 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 financial institution and or a penalty fee. 
 
Documentation  

Terminal transfers - You can get a receipt at the time you make any transfer to or from your account using one of our automated teller machines or point-of-sale terminals.

Preauthorized credits - If you have arranged to have direct deposits made to your account at least once every 60 days from the same person or company, you can call us at (800)584-9282 to find out whether or not the deposit has been made.

Periodic statements - You will get a monthly account statement from us for your checking account(s).
You will get a quarterly account statement from us for your savings account(s), if the only possible electronic transfers to or from the account are preauthorized credits.

For passbook accounts, if the only possible electronic transfers to or from your account are preauthorized credits, we do not send periodic statements. You may bring your passbook to us and we will record any electronic deposits that were made since the last time you brought in your passbook.

You will get a monthly account statement from us for your savings account(s), unless there are no transfers in a particular month. In any case, you will get a statement at least quarterly.
 
Preauthorized Payments  

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 or write us at the telephone number or address listed in this disclosure in time for us to receive your request three 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 14 days after you call.

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

Liability for failure to stop payment of preauthorized transfer - If you order us to stop one of these payments three business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages.
 
Financial Institution's Liability

Liability for failure to make transfers - 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. 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 an overdraft line and the transfer would go over the credit limit.
(3) If the automated teller machine where you are making the transfer does not have enough cash.
(4) If the terminal or system was not working properly and you knew about the breakdown when you started the transfer.
(5) If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken.
(6) There may be other exceptions stated in our agreement with you.
 
Confidentiality
We will disclose information to third parties about your account or the transfers you make: 
(1) where it is necessary for completing transfers; or
(2) in order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant; or
(3) in order to comply with government agency or court orders; or
(4) if you give us written permission.
 
Unauthorized Transfers  

(a) Consumer liability.  (1) Generally, tell us AT ONCE if you believe your card and/or code 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 you tell us within two business days, you can lose no more than $50 if someone used your card and/or code without your permission. (If you believe your card and/or code has been lost or stolen, and you tell us within two business days after you learn of the loss or theft, you can lose no more than $50 if someone used your card and/or code without your permission.)

If you do NOT tell us within two business days after you learn of the loss or theft of your card and/or code, and we can prove we could have stopped someone from using your card and/or code 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, 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.

(2) Additional Limit on Liability for VISA(R) 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 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 cards.

(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 in this disclosure.
 
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 disclosure, 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.

Tell us your name and account number (if any).

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.

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 (five business days if the transfer involved a point-of-sale transaction and 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 (five business days if the transfer involved a point-of-sale transaction and 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 the 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.

If you have inquiries regarding your account, please contact us at:
 
Heartland State Bank
 
PO BOX 68
Edgeley, ND  58433-0068
BUSINESS DAYS: Monday, Tuesday, Wednesday, Thursday and Friday
Holidays are not included.
PHONE: (701)493-2817
 
Notice Of ATM/Night Deposit Facility User Precautions

As with all financial transactions, please exercise discretion when using an automated teller machine (ATM) or night deposit facility.  For your own safety, be careful.  The following suggestions may be helpful.

1.  Prepare for your transactions at home (for instance, by filling out a deposit slip) to minimize your time at the ATM or night deposit facility.

2.  Mark each transaction in your account record, but not while at the ATM or night deposit facility.  Always save your ATM receipts.  Don't leave them at the ATM or night deposit facility because they may contain important account information.

3.  Compare your records with the account statements you receive.

4.  Don't lend your ATM card to anyone.

5.  Remember, do not leave your card at the ATM.  Do not leave any documents at a night deposit facility.

6.  Protect the secrecy of your Personal Identification Number (PIN).  Protect your ATM card as though it were cash.  Don't tell anyone your PIN.  Don't give anyone information regarding your ATM card or PIN over the telephone.  Don't write your PIN where it can be discovered.  For example, don't keep a note of your PIN in your wallet or purse.

7.  Prevent others from seeing you enter your PIN by using your body to shield their view.

8.  If you lose your ATM card or if it is stolen, promptly notify us.  You should consult the other disclosures you have received about electronic fund transfers for additional information about what to do if your card is lost or stolen.

9.  When you make a transaction, be aware of your surroundings.  Look out for suspicious activity near the ATM or night deposit facility, particularly if it is after sunset.  At night, be sure that the facility (including the parking area and walkways) is well lighted.  Consider having someone accompany you when you use the facility, especially after sunset.  If you observe any problem, go to another ATM or night deposit facility.

10. Don't accept assistance from anyone you don't know when using an ATM or night deposit facility.

11. If you notice anything suspicious or if any other problem arises after you have begun an ATM transaction, you may want to cancel the transaction, pocket your card and leave.  You might consider using another ATM or coming back later.

12. Don't display your cash; pocket it as soon as the ATM transaction is completed and count the cash later when you are in the safety of your own car, home, or other secure surrounding.

13. At a drive-up facility, make sure all the car doors are locked and all of the windows are rolled up, except the driver's window.  Keep the engine running and remain alert to your surroundings.

14. We want the ATM and night deposit facility to be safe and convenient for you.  Therefore, please tell us if you know of any problem with a facility.  For instance, let us know if a light is not working or there is any damage to a facility.  Please report any suspicious activity or crimes to both the operator of the facility and the local law enforcement officials immediately.
 
 
  MORE DETAILED INFORMATION IS AVAILABLE ON REQUEST