This Online and Mobile Banking Agreement and Disclosure ("Agreement") describes your rights and obligations as a user of the Online and Mobile Banking Service ("Services"). It also describes the rights and obligations of Kitsap Bank ("Bank"). Please carefully review the following information. By requesting and using this Service, you agree to comply with the Terms and Conditions of this Agreement, and to any Terms and Conditions that apply to any accounts or services you obtain from us. Kitsap Bank may, from time to time, introduce new Online and Mobile Banking services. By using those services when they become available, you agree to be bound by the Terms and Conditions contained in this Agreement and its subsequent amendments.

Definitions

The terms “we,” “us,” “our,” “Kitsap Bank” and “Bank” refer to Kitsap Bank. “You” and “your” refers to each signer on an account. The term “business days” means Monday through Friday, excluding Saturday, Sunday and Federal holidays.

Access to Services

The Bank, in its sole discretion, may refuse to open any account(s) for new customers and/or may refuse to accept any existing customer for Online and Mobile Banking Services. Kitsap Bank may restrict access to certain accounts online. Kitsap Bank may add and remove services and/or features at our sole discretion. We also reserve the right to modify the scope of the service at any time

To use Online and Mobile Banking, you must have an account at Kitsap Bank, access to Internet service and a valid e-mail address. Once we have received your Enrollment Form, and have verified your account information, we will email you upon approval of your enrollment.

You will access Online and Mobile Banking through an Internet-enabled device, using your selected User ID and Password. You may access your Online Accounts 24 hours a day, seven (7) days a week. However, availability of the Service may be suspended for brief periods of time for purposes of maintenance, updating and revising the software. You are solely responsible for the equipment you use to access Online and Mobile Banking services. You agree to accept responsibility for obtaining, maintaining and updating the necessary hardware and related equipment needed to utilize the services including but not limited to updating security settings and web browsers as needed. We are not responsible for errors or delays or your inability to access the services caused by your equipment.

We do not guarantee functionality of Online and Mobile Banking services on all devices, on all communications networks, in all geographic regions, or at all times. Kitsap Bank is not responsible for compatibility with and performance of the carrier networks. Your accessibility to the Online and Mobile Banking services may be interrupted because of conditions beyond our control, including outages in Internet availability. In the case of a disaster, Online and Mobile Banking may be suspended in order to allow emergency and responding personnel to use the carrier networks. In no event, regardless of cause, shall we be liable to you for the unavailability of Online and Mobile Banking services, or your inability to access or to execute Online and Mobile Banking functions.

We may remove your Online and Mobile Banking access if you do not sign in to the Service within twelve (12) months. If your access has been removed, you must re-enroll to begin using our Online and Mobile Banking Services again.

Transactions

Funds Transfers.

You may use Online and Mobile Banking to conduct one-time or recurring funds transfers for deposit and loan accounts. Transfers made through Online and Mobile Banking after 9:00 p.m. PST on business days as  defined above, and transactions which are requested on Saturdays, Sundays and holidays will be processed on the Bank's next business day. If there are insufficient funds in the account the transfer cannot be completed. We may limit the number or amount of transactions you can make using our Online and Mobile Banking Service. It is your responsibility to detect duplicate transactions. We reserve the right to refuse any transaction request made through Online and Mobile Banking.

NOTE: Because regulations require the Bank to limit preauthorized transfers (including Online and Mobile Banking transfers), the following limitations apply: Transfers from Market Fund, Premium Fund, and Savings accounts, you can make no more than six (6) transfers per statement period by preauthorized, automatic transfer, telephone, Online and Mobile Banking, check, debit card, or similar order.

Stop Payments.

You can use Online and Mobile Banking to place a stop payment on any check written on your account. You are responsible for verifying that the check you are placing a Stop payment on has not previously cleared your account. You cannot use Online and Mobile Banking to stop payment on ACH transactions. Stop Payment requests made through Online and Mobile Banking shall be considered to be a written request and shall be effective for 6 months. A Stop payment fee will be assessed.

Schedule of Fees

The Online and Mobile Banking Service is free. Additional services for eStatements, Bill Pay, Mobile Deposit, Text Banking and Cash Management modules will require separate agreements and may be subject to additional fees.

Security

You are responsible for keeping your password and Online Account information confidential. If you believe your password has been lost or stolen, or if you suspect any fraudulent activity on your account, call the Bank immediately at (360) 874-1088 or 1-800-2TELLER (800-283-5537) option 7 between the hours of 8:00 a.m. and 5:00 p.m. PST, Monday through Friday. Telephoning the Bank is the best way of minimizing your losses and liability. (See Electronic Funds Transfer Provisions section below).

In order to protect yourself against fraud, you should adhere to the following guidelines:

• Choose a User ID and strong password that are not easy for others to guess or contain sensitive information
• Do not leave your device unattended while you are logged in to Online and Mobile Banking
• Protect your device by locking it when not in use
• Keep your device updated with the latest software versions and anti-virus protection. We suggest that you routinely scan your device using an anti-virus protection product.
• Set up transaction or security alerts in Online Banking to notify you of login or online activity
• If you plan to travel out of the area, let us know in advance to avoid disruption to your Online and Mobile Banking Service(s).

Electronic Mail (E-mail)

If you send the Bank an e-mail message, the Bank will be deemed to have received it on the following business day. You should not rely on e-mail if you need to report an unauthorized transaction from one of your accounts or if you need to stop a payment that is scheduled to occur.

Note: E-mail transmissions outside of Online and Mobile Banking are not secure. We advise you not to send us sensitive information such as account numbers, passwords, account information, etc. via any general or public e-mail system. If you wish to contact us electronically, please use the Messages feature within Online and Mobile Banking.

Mobile and Text Banking

You agree that you are solely responsible to understand how to properly use your mobile device to access the Mobile or Text Banking Services and that any fees incurred by your network provider when accessing your account, initiating transactions and downloading account information are solely your responsibility.

Business Accounts

If you are accessing Online and Mobile Banking services for a business entity, you agree that you are authorized to act on behalf of that business entity to enter into this Agreement.

You agree to be bound by all transactions from any business account for which valid login was used. You authorize us to treat any instructions we receive using a valid login as if the instructions had been made in writing and signed by the appropriate company representative.

Notify us IMMEDIATELY for unauthorized transactions. Tell us AT ONCE if you believe your login has been lost, stolen or otherwise compromised or used without your authorization. Quickly telephoning us is the best way of reducing your possible losses.

Note: Business customers using our Online Cash Management services will require additional Agreements and may have additional Terms and Conditions.

Electronic Funds Transfer Provisions - For Consumer Accounts Only

Applicability.

This Electronic Fund Transfer Disclosure does not apply to any accounts other than consumer accounts, as defined by Regulation E. These provisions are only applicable to online electronic fund transfers (an "EFT") which credit or debit a consumer's checking, savings or other asset account and are subject to the Federal Reserve Board's Regulation E.  When applicable, the Bank may rely on any exceptions to these provisions which are contained in Regulation E. All terms that are not defined in this Agreement, but which are defined in Regulation E shall have the same meaning when used in this section.

Your Liability. 

The following determines your liability for any unauthorized EFT or any series of related unauthorized EFTs:

• If you notify the Bank within two (2) business days after you learn 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;
• If you fail to notify the Bank within two (2) business days after learning your password was lost or stolen, your liability will not exceed the lesser of $500.00 or the total of:
• $50.00 or the amount of unauthorized EFTs that occur within the two (2) business days; and
• the total of authorized EFTs which occur during the two (2) days and before notification to the Bank, provided the Bank establishes that these EFTs would not have occurred had the Bank been notified within that two-day period.
• You may notify the Bank by telephone, writing or by secure email using the Messages feature within Online Banking or Mobile Banking. Notification by general e-mail to report an unauthorized transaction is not secure and therefore not advised.

Telephone Numbers and Addresses

In case of errors or questions regarding Online or Mobile Banking, call (360) 874-1088 or 1-800-2TELLER (800-283-5537) option 7 or write us at: Kitsap Bank Online Support, 607 Pacific Ave, Bremerton, WA 98337

We must hear from you at the telephone number or address listed above, no later than 60 days after we sent you the FIRST statement on which the problem or error appeared. We will need:

• Your name and account number
• 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
• The dollar amount of the suspected error and date on which it occurred.

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 6-day period. You may also be liable for the amounts as described in sections 1 and 2 above.

If the report is made orally, we will require that you send the complaint or question in writing within 10 business days (20 business days if the account is new). 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 is complete and debit any provisional credit amounts credited to your account. You may request copies of the documents that were used in the investigation.

Our Liability for Failure to Make a 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 when you have properly instructed us to do so, we will be liable to you for your losses or damages caused as a result. However, there are some exceptions. We will NOT be liable, for instance:

• If through no fault of the Bank, you do not have enough money in your account to make the transfer.
• If we have received incomplete or inaccurate information from you or a third party involving the account or transfer.
• If your funds are subject to a legal proceeding or other encumbrance restricts the transfer.
• If circumstances beyond our control (such as fire, flood, power outage, equipment, technical failure or breakdown) prevents the transfer despite reasonable precautions that we have taken.
• If we have a reasonable basis for believing that unauthorized use of your password or account has occurred or may be occurring.
• 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.

Term and Termination

This Agreement will become effective when accepted by the Bank and shall remain in full force and effect until termination in accordance with the following provisions:

Termination for Cause.

We may immediately terminate your Online and Mobile Banking services without notice to you if you do not comply with the agreement governing your deposit or loan accounts or your accounts are not maintained in good standing.

Termination for Convenience.

To terminate this Agreement, you must notify the Bank and provide your name, address, the services you are discontinuing, and the termination date of the services. You may notify the Bank by one of the following methods:

• By sending an e-mail to customerservice@kitsapbank.com
• By calling 800-2TELLER (800-283-5537) option 7
• In writing to the following address: Kitsap Bank Online Support, 607 Pacific Ave, Bremerton, WA 98337
• In person at any of our Kitsap Bank locations

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.

Indemnification

Customer shall indemnify, defend and hold us, our affiliate companies, directors, officers, employees, and agents harmless, in their individual capacities or otherwise, from and against any losses arising out of: customer’s negligence; customer’s failure to comply with applicable law; or customer’s failure to comply with the terms of this Agreement.

Assignment

The Bank may assign its rights and/or delegate all or a portion of its duties under this Agreement to a third party.

Disclosure of Information

At Kitsap Bank, we respect the privacy of our customers, and are committed to treating customer information responsibly. Kitsap Bank does not disclose nonpublic, personal information collected about you except as is necessary to or consistent with providing the contracted services in accordance with the Bank’s Privacy Policy and applicable state and federal law. For a complete copy of our Privacy Policy please visit our website at www.kitsapbank.com or call us at (360) 874-1088 or 1-800-2TELLER (800-283-5537) option 7.

Governing Law

This Agreement is governed by the laws of the State of Washington and applicable federal law.

Electronic Disclosures

In connection with Online and Mobile Banking Enrollment, the related agreements and disclosures provided by the Bank are delivered electronically on this website. You are encouraged to print the disclosures from your device. You may request a paper copy of any disclosure by calling (360) 874-1088 or 1-800-2TELLER (800-283-5537) option 7. Unless otherwise required by applicable law, future notices or written communication may also be sent to you electronically.

After submitting your application, and prior to the Bank establishing the accounts you applied for, you may cancel this consent by calling (360) 874-1088 or 1-800-2TELLER (800-283-5537) option 7 and your application will be withdrawn. Your initial use of Online and Mobile Banking constitutes your acceptance and agreement to be bound by all of the terms and conditions of this Agreement, and acknowledges your receipt and understanding of this agreement and disclosures.

Periodic Statements

You will continue to receive your regular account statement either monthly or quarterly, depending on the type of account and activity in your accounts. We may also provide or make accessible to you statement information electronically or by some other means. You agree to notify us promptly if you change your address or if you believe there are any errors or unauthorized transactions on any statement or in any statement information.