Online Disclosures

These Rules For Consumer Deposit Accounts (the “Rules”) are part of the Agreement between you and Royal Heritage Commercial Bank , National Association (the "Bank" or "Royal Heritage Commercial Bank"), and contain some of the terms and conditions for consumer deposit accounts. This agreement does not apply to commercial accounts. The Bank offers a variety of products and services, including checking, savings, money market, certificates of deposit (CDs), and electronic banking services. Any Terms and Charges Disclosure applicable to your account is also a part of the Agreement. By signing a contract to open any deposit account or by using a Bank product or service, you agree that these Rules, as amended from time to time, shall apply to all your deposit accounts. If there is a conflict between these Rules and something one of our employees says, the Bank will follow these Rules. These Bank Rules supersede and replace all prior Bank Rules.

These Rules shall be governed by and interpreted according to federal law, and by applicable state law, clearing house rules, ACH rules and general commercial bank practices applicable to the services provided, to the extent not superseded by federal law. The applicable state law (to the extent not superseded by federal law) shall be the law of the state where the deposit account is opened, if opened in person. For deposit accounts opened by telephone, or Internet, applicable New York law will govern to the extent not superseded by federal law. If these Rules conflict at any time with the applicable federal or state law or regulation, the Rules will be considered changed to the extent necessary to comply. The Bank’s failure to enforce these Rules or waiver of any of the provisions of these Rules in any instance will not prevent the Bank enforcing these Rules at any other time.

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person that opens an account.

What this means to you: If you open a personal account, we will ask for your name, address, taxpayer identification number, date of birth, and other information that will allow us to identify you. Additionally, we will take certain steps to verify your identity, such as asking for your driver's license or other identifying documents or checking other sources.

Be assured that we recognize the importance of protecting your privacy and safeguarding the confidentiality of the information you provide to us.

Available Balance – The total funds available for use (withdrawal). This excludes funds from check deposits not yet made available and other credits not yet posted to this account.

Ledger Balance – The total of all items posted to your account including those not yet made available for use.

The Bank offers interest bearing and non-interest bearing accounts to eligible consumers. See Terms and Charges Disclosure for details.

Your checking account may consist of two "sub-accounts" on the books of the Bank. In that event, one sub-account will be a checking account and the other a savings account. The two will be treated as a single account for customer use, and will not affect your Bank statement, your ledger balance or the interest, fees, and features of your account. For interest bearing checking accounts, we will pay the same rate of interest on balances in both sub-accounts.

All deposits and other credits will be posted to, and checks and debits will be deducted from, the checking sub-account. Whenever the checking sub-account balance exceeds a "threshold amount" (which we may establish and change at our discretion), we may transfer funds above that amount to the savings sub-account. As these funds are needed to pay items presented against your checking account, the appropriate amount will be transferred back to the checking sub-account, up to six times per statement period. If the sixth transfer is needed, the entire balance of the savings sub-account will be transferred into the checking sub-account. This process may be repeated each month.

Although the Bank has no present intention to exercise this right, federal regulations require the Bank to reserve the right to require at least seven days written notice prior to withdrawal or transfer of any funds in a savings account.

The Bank may require you to use the Bank's checks. Depending on style and number of checks you order and what kind of checking account you have, the Bank may charge a fee to your account for your checks.

The Bank may, in its discretion, return unpaid a check or draft that does not bear a signature reflected on the Bank's records unless you have notified the Bank in advance you want the check or draft to be paid.

You agree that the Bank may impose a fee on the payee or other holder of a check or other item drawn against your account that is presented for payment over the counter at the Bank.

If you authorize a third party (other than a "telemarketer" or person engaged in "telemarketing", as those terms are defined in Federal Trade Commission Telemarketing Sales Rule [16 CFR Part 310]) to create a "remotely created check" (as defined in Regulation CC [12 CFR Part 229]) drawn on your account, the Bank may pay it, although it does not bear your signature. While the Bank is authorized to honor such remotely created checks, the Bank is not required to do so and may refuse to honor any such remotely created checks at its discretion. The Bank may return such remotely created checks even if it has honored similar remotely created checks in the past. You agree that the Bank is not liable to you for any losses that may result from either honoring or dishonoring any such remotely created checks drawn on your account. You are responsible for reviewing your statement in a timely fashion and reporting promptly to Royal Heritage Commercial Bank any claims of unauthorized remotely created checks.

An overdraft occurs when you do not have enough money (available balance) in your account to cover a transaction, but we pay it anyway. Your available balance is the amount of funds you have available in your checking account to spend without overdrawing your account.  It includes all cleared and pending transactions (e.g., holds for debit card transactions that you have authorized that have not been presented to Royal Heritage Commercial Bank for payment). Keep in mind that any non-preauthorized transactions (e.g., checks) you initiated but have not yet been presented to Royal Heritage Commercial Bank for payment need to be subtracted from your available balance for you to know the exact amount of money you have to spend or withdraw. The available balance does not include the amount of deposits not currently available (Refer to the Funds Availability section for more information).  

We can cover your overdrafts through our standard overdraft practices or through an overdraft protection plan. Through our standard overdraft practices, we authorize and pay overdrafts for checks and overdrafts for preauthorized automatic bill payments. We do not authorize and pay overdrafts for Automated Teller Machine (ATM) and everyday debit card transactions for consumer checking accounts other than Royal Heritage Commercial Bank Premier unless you are using an overdraft protection plan to cover these transactions. For Royal Heritage Commercial Bank Premier accounts using an overdraft protection plan, overdraft decisioning for ATM and everyday debit card transactions will be solely determined by such plan. Under our standard overdraft practices, we will charge you the associated Insufficient Funds (NSF) or Unavailable Funds (UNA) fees listed on our Terms and Charges Disclosure when an overdraft occurs. For Royal Heritage Commercial Bank Premier checking accounts, checks, pre-authorized debits, ATM and everyday debit card transactions that result in an overdraft are not charged NSF or UNA fees. We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction for any type of account. Any resulting negative balance regardless of cause must be repaid promptly. If we do not authorize and pay an overdraft, your transaction will be declined.

If you have a consumer deposit account, you can use the available balance on your qualifying credit account with the Bank to fund any overdraft amount automatically. The overdraft protection plan is subject to application and credit approval.

Your account may be debited on the day an item is presented, or at such earlier time as notification is received by the Bank by electronic or other means, that an item drawn on your account has been deposited for collection in another financial institution. You understand that the Bank reserves the right to pay items into overdraft, to impose overdraft fees as permitted by law, and to apply any later deposits (including direct deposits of social security or other government benefits) to those overdrafts or overdraft fees, by way of setoff. An “item” includes checks, substitute checks, remotely created checks, withdrawal slips or other in-person transfers or withdrawals, service charges, electronic items or transactions, including withdrawals made from an Automated Teller Machine, everyday or recurring debit card transactions, pre-authorized payments or transfers, ACH transactions, telephone initiated transfers, online banking transfers or bill payment instructions, and any other instruments or instructions for the payment, transfer or withdrawal of funds including an image or photocopy of any of these. A determination of your ledger balance for purposes of making a decision to dishonor an item for insufficiency of available funds may be made at any time between the receipt of such presentment or notice and the time of return of the item, and no more than one such determination need be made.

We will monitor your checking account for excessive overdraft use and we may take appropriate action to prevent excessive overdrafts from continuing. A notification will be provided if we deem that your account activity has the potential for us to take action for excessive overdraft usage.

We post transactions to your account throughout the day in the order that we receive them.

For your benefit to minimize NSF/UNA fees that you could be charged, we take the following action at the end of the day.  Once all items have posted to your account, we start with the ledger balance at the beginning of the day and sort all posted transactions in the following order to determine your end of day ledger balance:

1.   Add deposits and credits.

2.   Subtract fees resulting from prior day activities which were not charged on the current day (e.g., Chargeback Fee).

3.   Subtract outgoing wire transfers.

4.   Subtract account withdrawals performed at the branch from lowest to highest dollar amount.

5.   Subtract transactions that were authorized based on your available balance at the time you performed the transactions. Transactions will be sorted in lowest to highest dollar amount, regardless of the date the transaction was performed.  Transactions include everyday debit card transactions, ATM withdrawals, and online transactions.

6.   Subtract all other items in lowest to highest dollar amount. 

7.   Subtract fees resulting from current day activities (e.g., Stop Payment Fee).

After determining your end of day ledger balance, we subtract the amount of any deposit not currently available (refer to the Funds Availability section for more information) and subtract holds (e.g., debit card authorizations) from the end of day ledger balance to determine your available balance, and whether or not an overdraft fee is assessed.

You can ask the Bank to stop payment on a check drawn on your account in person, by mail, by phone, or by using the Bank's internet banking product and secure Bank e-mail. The Bank needs a reasonable amount of time to apply the stop payment request to your account and to verify that the check has not already been paid. You (or an authorized signer on your account) must give the Bank the account number, payee, date, exact amount of the check, and the correct check number. Without completely accurate information on the amount of the check and the check number, the Bank cannot ensure a stop payment will occur. Your stop payment request takes effect when the Bank records it on your account. If you phone in your stop payment, you must confirm it in writing within 14 days. Your written stop payment request is good only for six months unless you renew it in writing. Special procedures apply to a stop payment for a funds transfer. Please refer to the "Amendment and Cancellation" paragraph in the "Funds Transfers" section of these Rules. The Bank may charge you the fee shown on your Terms and Charges Disclosure for each stop payment request.

The Bank may pay a check before the date written on it and charge your account without being liable to you. The Bank can also refuse to pay a post-dated check before its date. The Bank may dishonor and return unpaid other items drawn, accepted or made by you as a consequence of the Bank having certified or paid a post-dated item.

The Bank is not required to pay a check six months after its date. The Bank may pay it, however, and not be liable to you.

The Bank's interest bearing checking accounts are really savings accounts against which you can write checks. The Bank has the right to ask you for seven days advance notice of withdrawal. If the Bank does, the Bank will not be liable to you for dishonoring your checks during the seven-day notice period.

The Bank will keep a record of your cancelled checks instead of providing image copies of the front and back of cancelled checks with your statement. If you need a copy of a cancelled check, the Bank will mail it to you. A reconstruction fee may apply if you request a total reconstruction (copies of all checks and/or statements) for one or more statements. The Bank will hold copies of your checks for six years (seven years for accounts at our Washington State branches). Copies of your checks are available during the foregoing period in accordance with the Terms and Charges Disclosure.

By choosing this service that provides image copies of the front and back of cancelled items with your statement, you have instructed the Bank to hold copies of the cancelled items for you in accordance with the applicable terms of service. If you need a copy of a cancelled check, the Bank will mail it to you. A reconstruction fee may apply if you request a total reconstruction (copies of all checks and/or statements) for one or more statements. The Bank will hold copies of your checks for six years (seven years for accounts at our Washington State branches). Copies of your checks are available during the foregoing period in accordance with the Terms and Charges Disclosure.

What is a substitute check? 
To make check processing faster, federal law permits banks to replace original checks with "substitute checks."

These checks are similar in size to original checks with a slightly reduced image of the front and back of the original check. The front of a substitute check states: "This is a legal copy of your check. You can use it the same way you would use the original check." You may use a substitute check as proof of payment just like the original check.

Some or all of the checks that you receive back from us may be substitute checks. This notice describes rights you may have when you receive substitute checks from us. The rights in this notice do not apply to original checks or to electronic debits to your account. However, you have rights under other law with respect to those transactions.

What are my rights regarding substitute checks? 
In certain cases, federal law provides a special procedure that allows you to request a refund for losses you suffer if a substitute check is posted to your consumer checking account (for example, if you think that we withdrew the wrong amount from your account or that we withdrew money from your account more than once for the same check). The losses you may attempt to recover under this procedure may include the amount that was withdrawn from your consumer checking account and fees that were charged as a result of the withdrawal (for example, bounced check fees). The amount of your refund under this procedure is limited to the amount of your loss or the amount of the substitute check, whichever is less. You also are entitled to interest on the amount of your refund if your account is an interest bearing consumer account. If your loss exceeds the amount of the substitute check, you may be able to recover additional amounts under other law.

If you use this procedure, you may receive up to $2,500 of your refund (plus interest if your account earns interest) within 10 Business Days after we received your claim and the remainder of your refund (plus interest if your account earns interest) not later than 45 calendar days after we received your claim.

We may reverse the refund (including any interest on the refund) if we later are able to demonstrate that the substitute check was correctly posted to your account.

How do I make a claim for a refund? 
If you believe that you have suffered a loss relating to a substitute check that you received and that was posted to your consumer checking account, please contact us at 1-800-975-Royal Heritage Commercial Bank (4722). You must contact us within 40 calendar days of the date that we mailed, or made available to you, the substitute check in question or the account statement showing that the substitute check was posted to your consumer checking account, whichever is later. We will extend this time period if you were not able to make a timely claim because of extraordinary circumstances.

Your claim must include -

• A description of why you have suffered a loss
  (for example, you think the amount withdrawn was incorrect);
• An estimate of the amount of your loss;
• An explanation of why the substitute check you received is insufficient to confirm that you suffered a loss; and
• A copy of the substitute check and/or the following information to help us identify the substitute check: identifying information, for example the check number, the name of the person to whom you wrote the check, the amount of the check.

The Bank is not obligated to accept unwarranted substitute checks for deposit or to cash a substitute check over the counter.

The Bank offers a variety of savings accounts that earn a preferred rate of interest as well as regular savings accounts. See your Terms and Charges Disclosure for details.

We post transactions to your account throughout the day in the order that we receive them. We subtract the amount of any deposit not currently available (refer to the Funds Availability section for more information) and subtract holds from your ledger balance to determine your available balance. 

The Bank has the right to ask you for seven days advance notice of withdrawal.

Savings accounts are not transferable except on the Bank's books.

The Bank offers Certificates of Deposit in various products and for various maturities. See your Terms and Charges Disclosure for details.

 If your account is set up to automatically renew, it will renew at the interest rate and Annual Percentage Yield (APY) in effect at maturity either based on the most recent renewal instructions provided to the Bank, or for the same term at which the account was opened, unless you tell us otherwise before the end of the grace period. If you do not want the Bank to renew your CD, notify the Bank before the maturity date. The Bank can refuse to renew your CD. If this happens, the Bank will send a notice before the maturity date.

If you withdraw principal from your CD before the maturity date, you may be charged a penalty shown on your Terms and Charges Disclosure. The penalty may reduce principal if there is insufficient interest available.

In the past, the Bank has usually permitted CDs to be cashed in before the maturity date, but the Bank reserves the right not to do so in the future. For consumer accounts, the Bank may not assess a penalty if an owner of the account dies or is declared legally incompetent, but the Bank will require proof of death or incompetency before a withdrawal is allowed.

Certificates of Deposit are not transferable except on the Bank's books.

The Bank offers a number of special purpose accounts, as well as trust, custodial, and fiduciary accounts. A Bank representative can provide details.

You can make deposits in person or by mail. If you are a consumer, you can also use your Royal Heritage Commercial Bank Debit MasterCard® card or ATM card to make deposits at Royal Heritage Commercial Bank Automated Teller Machines (ATMs) and certain other electronic facilities. The Bank is not obligated to accept unwarranted substitute checks for deposit. For more information about electronic banking, refer to the Bank's electronic banking services disclosures for the services you are using. Note: Royal Heritage Commercial Bank no longer accepts traveler's checks for deposit.

You can arrange to have funds, such as your Social Security or other Federal payment(s) and your paychecks, directly deposited into your checking or savings account.

Be sure to endorse all checks and other items exactly as they are made out. The Bank has the right to endorse items you deposit to your account. The Bank will chargeback to your account any item that is returned for any reason, including endorsement irregularity or forgery.

We may require that checks and other items you want to deposit or cash be endorsed by all parties to whom the items are payable. We may require verification of any endorsement through either an endorsement guarantee or personal identification.

If you deposit items which bear the endorsement of more than one person or of persons who are not signers on the account, we may refuse the item or may require you to have their endorsement guaranteed before we accept an item. We may accept for deposit checks payable to any signer on your account when endorsed by any other signer.

The diagram below shows where you should place your endorsement on the back of your check. The endorsement area is limited to the area 1 ½" from the trailing edge of the check, which is at the top in the diagram.

You are responsible for any loss resulting from your improper endorsement of a check if it causes a bank endorsement to be illegible.

The Bank chooses the method of obtaining final payment of a deposited check, draft, note, acceptance or other instrument ("item") and may use other banks in the process. The Bank is not responsible for actions taken by other banks, nor for the loss or destruction of any item in the possession of other banks or in transit. Any bank may refuse to honor a deposited item or may honor one refused by another bank.

The Bank will verify that the figure on your deposit ticket agrees with the amount of your deposit. If there is a discrepancy, the Bank will adjust your account for the amount of the difference.

If you deposit an item to your account and it is returned unpaid, returned as an administrative return, or is lost or destroyed, the Bank will charge the amount of the item back to your account. The Bank may charge your account the fee shown on your Terms and Charges Disclosure.

Your Terms and Charges Disclosure explains when and how deposits may be made to your certificate of deposit.

This disclosure applies to the Bank's consumer checking and savings accounts. The Bank's policy is to delay the availability of funds from your check deposits. During the delay, you may not withdraw the funds in cash and the Bank may choose not to use the funds to pay checks you have written or other withdrawals or transfers you have authorized.

The length of delay is counted in Business Days from the day of your deposit. Every day is a Business Day except Saturdays, Sundays, and federal holidays. If you make a deposit at a branch in person on a Business Day the Bank is open, the Bank will consider that day to be the day of your deposit.

If you make a deposit before 10pm ET at any Royal Heritage Commercial Bank ATM on a Business Day that the Bank is open, the Bank will consider that day to be the day of your deposit. However, if you make a deposit after 10pm ET at an Royal Heritage Commercial Bank ATM on a Business Day that the Bank is open or you make a deposit on a day the Bank is not open, the Bank will consider that deposit to be made on the next Business Day the Bank is open. The length of the delay varies depending on the type of deposit and is explained below.

Funds from the following deposits will be available to you on the same Calendar Day* the Bank receives the deposit:

• Cash (deposited in person with one of our tellers or at an ATM).
• Funds transfers between Royal Heritage Commercial Bank , N.A. accounts in the same name and Global Transfers.

* Every day is a Calendar Day. If the Bank receives the deposit after 12am (Midnight) ET, the deposit will be considered received the next Calendar Day.

Funds from the following deposits are available to you on the same Business Day the Bank receives the deposit:

• Electronic direct deposits.
• Wire transfers.

Funds from the following deposits are available to you on the first Business Day after the day of your deposit:

• Global Treasury checks that are payable to you.
• Federal Reserve Bank checks, Federal Home Loan Bank checks, and postal money orders, if these items are payable to you.
• Checks drawn on Royal Heritage Commercial Bank , N.A.

If you make the deposit in person to one of our employees using a special deposit slip available on request at any branch, funds from the following deposits are also available on the first Business Day after the day of your deposit:

• State and local government checks that are payable to you.
• Cashier's, certified, and teller's checks payable to you.

If you do not make your deposit in person to one of our employees (for example, if you mail the deposit), funds from these deposits will be available on the second Business Day after the day the Bank receives your deposit.

Check deposits other than those identified in this disclosure are considered "Other Check Deposits." The first $200 of your "Other Check Deposits" will be available on the first Business Day after the day of your deposit. The remaining balance of your "Other Check Deposits" will be available on the second Business Day after the day of your deposit.

Funds you deposit by check may be delayed for a longer period under the following circumstances:

• The Bank believes a check you deposit will not be paid.
• You deposit checks totaling more than $5,000 on any one day.
• You redeposit a check that has been returned unpaid.
• You have overdrawn your account repeatedly in the last six months.
• There is an emergency, such as a failure of communications or computer equipment.

The Bank will notify you if the Bank delays your ability to withdraw funds for any of these reasons, and the Bank will tell you when the funds will be available. They will generally be available no later than the sixth Business Day after the day of your deposit.

If you are a new customer, the following special rules may apply during the first 30 days your account is open:

• Funds from electronic direct deposits and funds (wire) transfers to your account will be available on the day the Bank receives the deposit.
• Funds from the first $5,000 of a day’s total deposits of Global Treasury checks will be available on the first Business Day after the day of your deposit. The excess over $5,000 will be available to you no later than the ninth Business Day after the day of your deposit.
• Funds from deposits of cash and the first $5,000 of a day’s total deposits of cashier’s, certified, teller’s, and federal, state and local government checks will be available on the first Business Day after the day of your deposit if the deposit meets certain conditions. For example, the checks must be payable to you (and you may have to use a special deposit slip). The excess over $5,000 will be available to you no later than the ninth Business Day after the day of your deposit. If your deposit of these checks is not made in person to an employee of the Bank, the first $5,000 will not be available until the second Business Day after the day of your deposit.

Funds from all other check deposits will be available to you no later than the ninth Business Day following the date of your deposit.

The cut-off time for the following transaction types is 10pm ET. This cut-off time impacts the Business Day on which these transactions will be effective and reflect in your ledger balance.

Except as shown in the chart above, all checks received on a given Business Day up through 11pm PT will be posted for the same Business Day.

If the Bank cashes a check for you that is drawn on another bank, the Bank may withhold the availability of a corresponding amount of funds that are already in your account. Those funds will be made available to you at the time funds from the check the Bank cashed would have been available if you had deposited it.

If the Bank accepts for deposit a check that is drawn on another bank, the Bank may make funds from the deposit available for withdrawal immediately but delay your ability to withdraw a corresponding amount of funds that you have on deposit in another account with the Bank. The funds in the other account would then not be available until the time periods that are described in this disclosure for the type of check you deposited.

The Bank may refuse to accept or delay availability on checks drawn on banks outside the United States (including checks drawn upon foreign Royal Heritage Commercial Bank affiliates) and on checks drawn in foreign currencies, convert the foreign check to USD and deposit as cash or handle such checks on a collection basis. Regardless of whether your foreign check is converted or processed on a collection basis you understand and agree that you bear all exchange risk in the event of a returned item. If you want to avoid the exchange risk of a returned item, you can request that the item be processed on a collection basis for the applicable fee. If a check drawn on a bank outside of the United States uses a dollar sign ("$") but does not indicate the check is drawn in Global Dollars, it will be processed as a check drawn in the currency of the country where the bank is located, e.g., a check drawn on a Canadian bank. You will bear the costs associated with any adjustments that must be made if the check should have indicated it was drawn in Global Dollars including exchange rate adjustments and fees assessed against the Bank by third parties related to the adjustment. You can avoid this risk by making sure that the issuer of the item clearly identifies checks payable in Global Dollars.

We place certain limitations on withdrawals in cash. In general, $200 of a deposit is available for withdrawal in cash on the first Business Day after the day of deposit. Any remaining funds will be available for withdrawal in cash on the following Business Day.

The Bank's funds availability policy does not affect your obligation to repay the Bank for checks that you deposit which are returned unpaid, nor does it limit the Bank's right to charge back your account or to obtain reimbursement for any check that is not finally paid for any reason.

You can withdraw from your checking account by presenting a signed check payable to yourself or to "cash." You can also withdraw from your checking or savings account in person or by mail with a signed withdrawal order. In addition you can withdraw interest credited, during the current term or at maturity, on CDs in person, by mail or through other electronic facilities. You can withdraw or transfer funds at our Royal Heritage Commercial Bank ATMs and other electronic facilities on your checking or savings account.

A withdrawal is deemed to be made when recorded on the books of the Bank which is not necessarily the date that the account holder initiated the transaction.

The Bank is authorized to rely upon any document provided by you to the Bank which indicates the person(s) authorized to act on your behalf.

The Bank may refuse to allow a withdrawal from any account in certain cases including, but not limited to, the following cases:

• The Bank decides to require seven (7) days advance written notice and the Bank has not received that notice.
• The withdrawal would consist of money deposited in the form of a check or money order that is not available for withdrawal.
• Another owner of a joint account or CD tells the Bank in writing not to allow a withdrawal.
• A court orders the Bank not to allow a withdrawal.
• The withdrawal would consist of money the Bank has taken to pay an overdue debt to the Bank.
• The withdrawal would consist of money the Bank has been ordered to pay or hold for someone else.
• An account or CD owner dies, and the Bank has not received all documents required by law.
• The Bank has not received any documents or identification required for access to the account.
• The account or CD is pledged as collateral.
• The account or CD has not matured.
• Endorsement irregularity or possible forgery.
• There is a dispute regarding the authority of an authorized person to transact business on the account.

Only six preauthorized, automatic, computer or telephone transfers can be made from your savings account to another account in any calendar month. If permitted by your account, checks, drafts, debit card transactions, or similar orders made payable to a third party are included in this limit of six. If you exceed this limit, the Bank may be required to close your account or convert your account to a checking account.

You may transfer funds from your account or receive funds into your account by funds transfer. Service fees may apply to your funds transfers and there are limitations on transfers from certain types of accounts. Consumers in the United States who electronically transfer funds to consumers or business recipients in foreign countries are sending a remittance transfer, which has the meaning given in Subpart B of Regulation E (12 CFR § 1005.30, et seq.). If your fund transfer is a remittance transfer, additional rules apply which will be provided in the disclosures the Bank will give you when you use that service.

You agree that any rules or regulations of any automated clearing house ("ACH") used shall be fully applicable to and binding upon you and that transfers may not be initiated that violate the laws of the United States.

Your instruction to transfer funds from your account to a third party is a Payment Order. The Bank is authorized, at its option, to charge your account in the amount of any Payment Order and to execute a Payment Order, even if the Payment Order conflicts with any other instructions received by the Bank from you or results in an overdraft or payment to or for the benefit of a person authorized by you to sign checks or transfer funds for you. If there are not sufficient available funds in your account, the Bank may, without prior notice or demand, charge any account maintained by you with the Bank or setoff against any amount the Bank owes you in order to obtain payment of your obligations.

The following Security Procedures are offered by the Bank to each customer for the purpose of verifying the authenticity of a Payment Order or a communication amending or cancelling a Payment Order. The Security Procedures are not used to detect an error in the transmission or content of the Payment Order.

Internet Banking: The Internet Banking security procedures include encryption, a password and a security device or key that allows the Customer to transfer funds and conduct banking transactions as more specifically described in the Terms and Conditions for Internet Banking and the Security Statement available online at www.royalheritagecommercial.com/1/2/home/personal-banking/pib/pib-tc.

Authenticated SWIFT: The security procedure for authenticating Payment Orders sent through SWIFT is explained in the SWIFT Handbook. Authenticator keys are provided to the Customer by the Bank.

The Level Two Security Procedures may involve the use of a call-back procedure by the Bank and/or the use of an identification code by the Customer (or their authorized users).

By using any of the Level One Security Procedures, you have accepted that security procedure as described above or as modified from time to time by the Bank. The Level One Security Procedure will be used for the purpose of verifying that a Payment Order or a communication amending or cancelling a Payment Order was issued by you. If the Bank accepts a Payment Order by means other than through Internet Banking, or authenticated SWIFT, and you communicate a Payment Order to the Bank in writing, or use the telephone to transmit a Payment Order orally or by fax, you have rejected the Level One Security Procedures offered by the Bank and have chosen Level Two Security Procedures generally described previously, as such procedure may be modified from time to time by the Bank. This Security Procedure will be used for the purpose of verifying a Payment Order or a communication amending or cancelling a Payment Order issued by you. You acknowledge that the Level Two Security Procedure may be deemed commercially reasonable pursuant to Section 4A-202(c) of the Uniform Commercial Code unless remittance transfer rules apply. Whenever a Level Two Security Procedure is used, you agree to be bound by any Payment Order, whether or not authorized, issued in your name and accepted by the Bank in compliance with such procedure unless remittance transfer rules apply.

You and the Bank agree to keep the Security Procedures confidential and shall not reveal them to any person other than authorized users having "a need to know."

Unless otherwise specified by you in writing, the individuals authorized by you to sign checks on your account are also authorized to issue Payment Orders, cancel and amend Payment Orders, and designate the persons and telephone numbers for use with the security procedure you have chosen.

Except as otherwise agreed in writing, the Bank may charge your account for the fees and charges for processing Payment Orders and issuing advices relating to Payment Orders, adviced to you at the time of the Payment Order, or listed in the Terms and Charges Disclosure as the fee for Funds Transfer, or as set forth in any other applicable rules, disclosures, receipts, or terms.

A Payment Order must be received by the Bank's "cut-off time" on a Business Day for action on the date of receipt. Instructions received for value on a non-Business Day will be processed on the next Business Day. A Payment Order is not accepted until the Bank executes it. The Bank reserves the right to reject or delay the execution of a Payment Order under certain circumstances including, but not limited to, the following: (a) if the instructions are incomplete or ambiguous; (b) if there is an insufficient balance of available funds in the account; (c) if any party in the payment order is under restraint or under a regulatory sanction; (d) if a routing system is down and no suitable alternative system is available; or (e) if the Bank believes that the Payment Order may have not in fact been authorized by you.

If a Payment Order does not indicate it requires expeditious processing via wire or phone, the Bank may transmit the Payment Order by mail or by any other reasonable means.

Payment Orders may be executed by the Bank on the date of receipt, if received prior to the Bank's "cut-off time", unless a future value date is stated in the Customer instruction.

Instructions requesting cancellation or amendment of a Payment Order must be transmitted to the Bank using the same level of Security Procedure as used for the original Payment Order unless consumer regulatory restrictions apply. The Bank will honor all requests received by the Bank's "cut-off time" on the Business Day prior to the value date. The Bank shall use reasonable efforts to act on a request received after the Bank's "cut-off time" on the Business Day prior to the value date, unless agreed otherwise in writing.

If a Payment Order identifies an intermediary bank, the beneficiary's bank or the beneficiary by name and an account or other identifying number, the Bank may act solely on the basis of such number unless remittance transfer rules apply.

If your transfer is a remittance transfer and your Payment Order includes an incorrect account number or recipient institution identifier, you could lose the transfer amount.

You are responsible for full routing instructions. You agree that in executing any Payment Order the Bank may make use of any correspondents, intermediary banks, agents, sub-agents, funds transfer and communications systems that the Bank deems reasonable under the circumstances. If a Payment Order designates an intermediary bank and/or funds transfer system, you agree that, where appropriate, the Bank may select a different intermediary bank and/or funds transfer system on your behalf and the Bank shall have no liability with respect to such selection unless consumer regulatory restrictions apply. To the fullest extent permitted by law, correspondents, agents, sub-agents, systems or intermediary banks shall be deemed to be your agents and the Bank shall not be under any liability for any errors, negligence, suspension or default of any of them, all such risks being borne by you unless consumer regulatory restrictions apply.

Under the operating rules of the National Automated Clearing House Association that are applicable to ACH transactions involving your account, the Bank is not required to give next day notice to you of receipt of an ACH item, and the Bank will not do so. However, the Bank will continue to notify you of the receipt of payments in the periodic statements the Bank provides to you.

Credit given by the Bank to you with respect to an ACH credit entry is provisional until the Bank receives final settlement for such entry through a Federal Reserve Bank. If the Bank does not receive such final settlement, you are hereby notified and agree that the Bank is entitled to a refund of the amount credited to you in connection with such entry, and the party making payment to you shall not be deemed to have paid you the amount of such entry.

Interest rates, compounding periods, balance computation methods, and minimum balance requirements are explained in the Terms and Charges Disclosures.

The Bank may change the interest rate on deposit accounts, solely at the Bank's discretion, at any time. The Bank will not change the rate on a fixed-rate CD during its term. We will not notify you of rate changes for variable rate accounts. Current rates are available at your branch. The Bank may change the way the Bank calculates interest on 30 days advance notice.

Cash Deposits before the "cut-off time" at your branch (or at an Royal Heritage Commercial Bank ATM or electronic banking facility) begins earning interest the same day. Cash Deposits after the "cut-off time" or on a Saturday, Sunday or Federal holiday, begins earning interest the next Business Day.

NOTE:

1. Branch "cut-off time" is when it closes
2. For ATMs that accept deposits, the "cut-off time" is 10pm ET

The Bank credits interest to your deposit account monthly, quarterly, semi-annually, annually or at maturity, depending on what kind of deposit account you have. Credited interest will show on your statement. Interest on checking, savings and CDs can be credited to another Royal Heritage Commercial Bank checking or savings account you specify.

A CD does not earn interest after the maturity date. However, you will earn interest from the original maturity date on the renewed principal amount if you renew your CD within the grace period as defined in the Terms and Charges Disclosure and the renewal date is back dated to the original maturity date.

If required by IRS regulations based on the interest earned on your deposit accounts on an annual basis, a combined year-end statement will be sent to you by the Bank.

This is a summary of some of the important legal rules governing your joint account. The law regarding joint deposits is very complicated, and this summary does not try to answer all the questions that could arise. The rules stated in this summary apply to accounts and CDs in the names of two or more persons or the survivor of them.

They do not apply to trust accounts, custodial accounts, "Totten Trust" accounts or any other account that is not a joint account with the right of survivorship.

All funds deposited in a joint account, including any interest earned, become the property of all joint tenants. Even if only one depositor puts in all the money or puts in more than the other(s), all money on deposit will be owned jointly.

The Bank will assume that when you open a joint account you intend to create a right of survivorship, unless you establish the account under the Bank's procedures for Tenants in Common. A right to survivorship means that if one joint depositor dies, the money in the account belongs entirely to the surviving depositor(s).

A joint account may be held as Tenants in Common if when the account is opened the joint owners enter into the Bank's agreement for accounts held as Tenants in Common and designate the percentage of the funds to be paid to the survivor(s) on the death of a joint owner. Until the Bank receives notice of the death of a tenant, all funds in the account may be treated as the property of each of the tenants in common without any limitation.

While all the joint depositors named on the account are living, the Bank will honor checks, other Payment Orders and withdrawal requests made by any one of them, unless the Bank receives a written, signed notice from another joint depositor telling us not to.

If the Bank receives such a notice, the Bank may require the signatures of all the joint depositors before the Bank allows any further withdrawals (of principal or interest) to be made from the account.

If the Bank honors a check, other Payment Order or withdrawal request made by a joint depositor before the Bank receives written notice from another joint depositor telling the Bank not to, the Bank has satisfied its obligation with respect to all money the Bank paid or delivered and is not liable to other joint depositors. (Although the joint depositors may be liable to each other for withdrawing more than their shares of the account, the Bank is not responsible for making sure a depositor does not withdraw more than his or her share.)

If one joint depositor owes the Bank money and the debt becomes due, the Bank can use any money in the joint account to pay the debt. Further, if a depositor has an account, in that depositor's name solely, and that depositor owes the Bank money, you agree that any money held in a joint account with that depositor and you may also be used to pay the debt.

If one joint depositor has a judgment or other debt against him or her, the Bank may be required by legal process to pay out money from the joint account to satisfy that judgment or debt. The Bank is not responsible for determining or otherwise claiming funds in your account are exempt from the reach of a third party, unless otherwise expressly required by applicable law.

If one joint depositor overdraws the joint account, you agree that the Bank may use any funds in any other accounts of either joint depositor to pay the debt.

This Statement summarizes certain rights and responsibilities which you (our customer) and Royal Heritage Commercial Bank , N.A. (we or the Bank) have under the Electronic Fund Transfer Act. It applies when you use our Electronic Banking Services.

"Electronic Banking Service" (or EFT Service) means a banking service in which you or someone else uses electronic means to make deposits (credits) to or withdrawals (debits) from your checking, savings, or CD account. It also includes a purchase or "purchase and cash back" transaction at a retail store using your Royal Heritage Commercial Bank Debit Mastercard® card ("Debit Mastercard®"), even if the debit to your checking account is not made by electronic means until later. These transactions are collectively referred to in this Statement as "EFT transactions."

An EFT transaction is made by electronic means when, for instance, it is made at an Automated Teller Machine (ATM) such as a Bank ATM, by using Online Banking Services, Automated Clearing House (ACH), or in some cases, by telephone.

EFT transactions also occur when there is an electronic check conversion, a merchant (or their agent) sends through an electronic debit for the amount of a returned check plus a fee, and a qualifying computer initiated bill payment. A computer initiated bill payment is not an EFT transaction where the bill payment service expressly provides that payment will be made to all or particular payees with a written instrument drawn on your account and all payees that will be paid in this manner are identified to you.

Credit transactions (for example, obtaining a loan or making a credit card purchase or cash advance) do NOT involve EFT Services.

The kinds of EFT Services covered by this Statement and the terms that apply to each are set forth below.

You may use a properly encoded Debit Mastercard® or ATM card (the Card) plus your Personal Identification Number (PIN) at any EFT Facility (e.g., ATM, such as a Bank ATM, point–of–sale terminal or other electronic facility) that accepts the Card OR you may use a Telephone Access Code (TAC), a Card PIN or Voice ID with our Automated Telephone Banking service to do one or more of the following:

• Withdraw cash from your checking or savings account;
  
• Make a Bank payment (pay bills you receive from the Bank from your Bank checking account)
  
• Make deposits to your checking or savings account;
  
• Transfer funds between your checking, savings and Certificate of Deposit accounts
  

Some of these services may not be available at all EFT Facilities.

You may use a properly encoded Card (plus your PIN, if required) at a retail store that accepts the Card to pay for goods or services (or to pay and also get cash back) from your checking account.

You may also perform balance inquiries on checking and savings accounts at some EFT Facilities. These transactions are not EFT transactions and are not subject to these rules.

Except for Automated Telephone Banking, you may use the Card and PIN for EFT transactions only with the accounts you requested be linked to the Card. You may not use them for EFT transactions involving other deposit accounts.

You may authorize a merchant or other payee to make a one–time electronic payment from your checking account using information from your check to:

(i) Pay for purchases
(ii) Pay bills

You are responsible for any EFT transaction you make with the Card. You are also responsible for any EFT transaction made by someone else to whom you have given your Card or PlN until you notify us that the person no longer has your permission to use them.

Tell us AT ONCE if you believe your Card, PIN or TAC has been lost or stolen, or if you believe that an electronic fund transfer has been made without your permission using information from your check or other information about your account. 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). Also, if your monthly statement shows EFT transactions made with your Card or PIN that you did not make (or give someone permission to make for you), 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 lost after the 60 days, if we can prove 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.

If you believe your Card, PIN or TAC has been lost or stolen or that someone has or may use them to withdraw money from your deposit account without your permission, telephone the number or write to the address shown on the BANK DIRECTORY for reporting lost or stolen cards, PINs or Telephone Access Codes (TAC).

One-time ATM withdrawal Amount:

• $10 minimum; $500 maximum at Global Royal Heritage Commercial Bank ATMs

ATM withdrawal Amount, per day, per card number:

• $500 for Royal Heritage Commercial Bank Debit Mastercard® and Royal Heritage Commercial Bank Advance Debit Mastercard® cards
• $1,000 for Royal Heritage Commercial Bank Jade World Debit Mastercard®, Royal Heritage Commercial Bank Premier World Debit Mastercard®, and Royal Heritage Commercial Bank ATM card.

The daily ATM limit represents the overall maximum amount of total withdrawals done on any accounts (checking and savings) linked to your card.

One-time purchase or "purchase and cash back" transactions per day, per card number:

• $500 for an Royal Heritage Commercial Bank ATM Card
• $3,000 for an Royal Heritage Commercial Bank Debit Mastercard® and Royal Heritage Commercial Bank Advance Debit Mastercard® cards.
• $5,000 for an Royal Heritage Commercial Bank Jade World Debit Mastercard® and Royal Heritage Commercial Bank Premier World Debit Mastercard® cards.

Only six preauthorized, automatic, Online Banking Service or telephone transfers can be made from your savings account to another account in any calendar month.

There may be different or additional limits on cash you can receive at an EFT Facility not operated by us. The maximum amount of cash you can deposit per day via an Royal Heritage Commercial Bank ATM is $10,000. The maximum total dollar amount of checks you can deposit per day via an Royal Heritage Commercial Bank ATM is $99,999.99.

For security reasons, there are other limitations on the amount and frequency of EFT transactions you can make at an EFT Facility.

Automated Teller Machines (ATM) and other Electronic Fund Transfer (EFT) Facilities excluding Royal Heritage Commercial Bank , N.A. Automated Teller Machines (“GTB ATM”)

TYPES OF ACCOUNTS

• Consumer Checking
• Consumer Savings

EFT FACILITY SERVICE CHARGES

Unless you are using a Global Royal Heritage Commercial Bank ATM, the ATM operator or any network used may charge you a fee (and you may be charged a fee for a balance inquiry even if a funds transfer is not completed).

EFT Facility Service Charges of $2.50 apply to each withdrawal, balance inquiry or transfer from Basic Banking, Choice Checking and Royal Heritage Commercial Bank Everyday Savings accounts when using your Debit Mastercard® card or ATM Card.

These charges do not apply to: Royal Heritage Commercial Bank Premier checking, Royal Heritage Commercial Bank Premier Savings, Royal Heritage Commercial Bank Advance checking, Royal Heritage Commercial Bank Advance Savings, Royal Heritage Commercial Bank Promotional Premier Savings, Royal Heritage Commercial Bank Promotional Advance Savings, as well as the following online only products which are no longer offered, Royal Heritage Commercial Bank Online Money Market Savings or Online Payment Account.

Currency Conversion on Foreign Transactions

If you effect a transaction on your Royal Heritage Commercial Bank Bank Consumer Checking or Savings account at an EFT facility with your Royal Heritage Commercial Bank Debit Mastercard® or ATM Card in a currency other than Global dollars or effect a transaction in Global dollars outside the United States, Mastercard International Incorporated (“Card Association”) will convert the transaction into a Global dollar amount. A currency conversion will occur even if the transaction is made in Global dollars. Card Association will act in accordance with the operating regulations or foreign currency conversion procedures then in effect. Currently the currency conversion rate used to determine the transaction amount in Global dollars for such transactions is either a government-mandated rate or a wholesale rate determined by Card Association for the processing cycle in which the transaction is processed. The currency conversion rate used by Card Association on the processing date may differ from the rate that would have been used on the transaction date or cardholder statement posting date.

Foreign Transaction Fee*

If you effect a transaction on your Royal Heritage Commercial Bank Bank Consumer Checking or Savings account at an EFT facility with your Royal Heritage Commercial Bank Debit Mastercard® or ATM Card outside the United States, the transaction amount may be further increased by a percentage established from time to time by us (currently 3%).

*This Foreign Transaction Fee does not apply to transactions using Royal Heritage Commercial Bank Jade World Debit Mastercard® and Royal Heritage Commercial Bank Premier World Debit Mastercard® cards.

RIGHT TO RECEIVE RECEIPTS

You can get a receipt showing details of your EFT transaction when you use your Card and PIN at an EFT Facility.

EFT transactions originated at an EFT Facility are subject to our verification and to our ability to complete them by posting to an account linked to your Card.

You may arrange to have a third persons make regular deposits to your checking or savings account by electronic means.

If you are scheduled to receive deposits on this basis at least once every 60 days, you can call us at the branch where you keep your account (see the telephone number on your monthly statement) to find out whether the deposit has been made.

No additional charge is imposed on your account because you have this service.

You may arrange to have third persons make regular withdrawals directly from your checking account by electronic means.

You may also arrange with us to make automatic transfers into, out of, or between your deposit accounts with us, but these arrangements are not covered by this Statement.

No additional charge is imposed on your deposit account because you have this service.

If you have arranged with third persons to make regular withdrawals from your account, you can stop any of those withdrawals. Here's how:

Call the branch that has your account (see the telephone number on your monthly statement) or write the branch at the address shown there so we receive your request at least 3 business days before the withdrawal is scheduled to be made. If you telephone us, we may require you to put your request in writing and get it to us within 14 days after you call. We will charge you the current stop payment fee (see deposit "Terms and Charges Disclosure") for each stop payment you give.

If you do order us to stop one of these withdrawals at least 3 business days before the EFT transaction is scheduled and we do not do so, we will be liable for your losses or damages.

If these regular withdrawals vary in amount, the persons being paid should tell you 10 days before each withdrawal when it will be made and how much it will be. You may choose instead (by agreement with the payee) to get that notice only when the withdrawal would differ by more than an agreed amount from the previous withdrawal, or when the amount would fall outside limits that you set.

If these regular withdrawals vary in amount, the persons being paid should tell you 10 days before each withdrawal when it will be made and how much it will be. You may choose instead (by agreement with the payee) to get that notice only when the withdrawal would differ by more than an agreed amount from the previous withdrawal, or when the amount would fall outside limits that you set.

These terms apply to all of the above EFT Services.

Our business days are Monday through Friday, except Federal holidays.

For a checking account and a money market savings account, you will get a monthly statement detailing EFT transactions involving EFT Services as well as other activity. For regular savings accounts, you will get a quarterly statement and a statement for any month in which EFT transactions involving an EFT Service are posted to your account.

We will disclose information to third parties about your deposit accounts or EFT transactions you make under the following circumstances:

• We will diclose information to third parties about your deposit accounts or EFT transactions you make under the following circumstances:
• When it is necessary to complete EFT transactions;   
• In order to verify the existence or condition of your account for a third party such as a credit bureau, merchant, creditor, or financial institution;
• To comply with a subpoena or other proper request from a governmental agency or a court order or judicial subpoena;
  
• To collect any debt that you may owe to us or any of our affiliates;
• We may collect information about you and share such information with any of our affiliates for purposes of considering your eligibility for other products or services;
• We may collect customer account data for the purpose of learning about aggregate customer usage patterns, customer telephone inquiries and the effectiveness of Internet Banking and Bill Paying Services, but shall not disclose individual identifiable information except as provided in this Section; or
  
• Whenever you give us your permission to do so.
  

If we do not complete an EFT transaction on 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:

• IF, through no fault of ours, you do not have enough money in your account to complete the EFT transaction or the account is closed.
  
• IF the withdrawal would go over the credit limit on your overdraft line with us.
• IF the EFT Facility where you are making a withdrawal does not have enough cash.
• IF the EFT Facility or system was not working properly and you knew about the breakdown when you started the EFT transaction.
  
• IF you have not properly followed instructions on how to make a transfer or bill payment or if your computer or software or telephone fails or malfunctions.
  
• IF you have not given us complete, correct and current instructions so that we can make a transfer or bill payment.
  
• IF you do not authorize a bill payment soon enough for your payment to be made and properly credited by the payee by the time it is due.
  
• IF we make a timely bill payment but the payee nevertheless does not credit your payment promptly after receipt.
  
• IF we have reason to believe that a transaction has not been properly authenticated or is fraudulent.
  
• IF circumstances beyond our control or that of any component of the EFT Facility system (such as fire, loss of power, or flood) prevent the EFT transaction, despite reasonable precautions that have been taken.
• IF the funds in your account are subject to legal process or other encumbrance restricting the transfer.
  

For any indirect, incidental, special or consequential damages if our failure was not intentional and resulted from a bona fide error, notwithstanding our procedures to avoid such error.

There may be other exceptions stated in our agreements with you.

Telephone the number or write to the address shown in the BANK DIRECTORY.

Do this as soon as you can if you think your statement or receipt is wrong or if you need more information about an EFT transaction 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.
2. Describe the error or the EFT transaction 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 tell you the results of our investigation within 10 business days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days to investigate your complaint or question. If we decide to do this, we will provisionally 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. 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 provisionally credit your account.

If a notice of error involves an EFT transaction that occurred within 30 days after the first deposit to the account was made, the time period for action listed above will be 20 business days in place of 10 business days. If a notice of error involves an EFT transaction that was not initiated in any state, territory or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any of their political subdivisions; that resulted from a point–of–sale debit card transaction; or that occurred within 30 days after the first deposit to the account was made the time period for investigation listed above will be 90 calendar days in place of 45 calendar days.

If we decide that there was no error, we will send you a written explanation within 3 business days after we finish our investigation. You may ask for copies of the documents that we used in our investigation.

If you believe your Debit Mastercard® card, ATM Card, your Personal Identification Number (PIN) or your Telephone Access Code (TAC) has been lost or stolen:

CALL

Within the U.S.
800-462-1874 (Toll Free)

Outside the U.S.
716-841-4880 (Collect)

OR WRITE

Royal Heritage Commercial Bank
P.O. Box 1257
Buffalo, New York 14240

You should also call the number or write to the address listed above if you believe a transfer has been made using the information from your check without your permission.

In case of errors or questions about your EFT transactions:

CALL

Within the U.S.
800-462-1874 (Toll Free)

Outside the U.S.
716-841-4880 (Collect)

OR WRITE

Royal Heritage Commercial Bank
P.O. Box 9
Buffalo, New York 14240

Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

By accepting the disclosure below and registering for online banking, all of your eligible accounts will be enrolled in electronic statements. You can change your preferences any time.

Please read this Electronic Communications Disclosure ("eCommunications Disclosure") thoroughly - It contains important information about your legal rights.
This eCommunications Disclosure covers all of your accounts, products, and services with Royal Heritage Commercial Bank , National Association, Royal Heritage Commercial Bank Securities (USA) Inc., Royal Heritage Commercial Bank Insurance Agency (USA) Inc. and their affiliates (collectively, "we", "us", and "our") accessible, either currently or in the future, through Personal Internet Banking (whether accessed through a personal computer or mobile device, sometimes referred to as "Mobile Banking"), our websites, or other electronic means. This includes, but is not limited to, the following account, product, and service types: deposit accounts, credit card, loan, brokerage accounts, investment advisory, insurance policies and other services. The words "I", "you" and "your" mean each account holder, product owner and/or service user identified on an account, product or service.

Certain laws and regulations require us to provide specific information to you in writing, which means you have a right to receive that information on paper. We may provide such information to you electronically if we first present this eCommunications Disclosure and obtain your consent to receive the information electronically. Your consent will also apply to any other person named on your account, product or service, subject to applicable law. Since some of our accounts, products or services are provided online and use electronic means to deliver some of this information, you must consent to this eCommunications Disclosure in order to use these services. At times, we may still send you paper communications, but as a basic proposition we need to know that you are willing to receive communications electronically that we may otherwise be required to provide on paper and that you have the hardware and software needed to access to this information (and note that in Section No. 3 below, we explain ways to obtain selected disclosures or other information on paper even after you have consented to this eCommunications Disclosure).

You understand and agree that we may provide to you in electronic format only, by posting the information on the website where you access your accounts, products or services, through email (if applicable and if you have provided a valid email address), or other electronic means, agreements, disclosures, notices, and other information and communications regarding your accounts, services and products, the use of our websites or our other electronic services, your relationship with us, and/or other programs, products or services that are or may be in the future made available to you (collectively, "Communications"). Such Communications may include, but are not limited to:

• This eCommunications Disclosure and any updates;
• The Royal Heritage Commercial Bank Personal Internet Banking Terms and Conditions, other service or user agreements for access to our websites or other electronic services, all updates to these agreements and all disclosures, notices and other communications; regarding transactions you make through websites or our other electronic services;
• Periodic, annual, monthly or other statements, disclosures and notices relating to the maintenance or operation of an account, product or service including, but not limited to account information, account activity, account inactivity, payments made or due, or other statements, disclosures or notices that may be required by applicable federal or state laws and regulations;
• Investment account disclosures, agreements, statements, trade confirmations, tax reporting statements, shareholder notices, prospectuses, service notices and performance reports regarding accounts, products and services;
• Any notice or disclosure regarding an account, product or service fee, such as a late fee, an overdraft fee, an overlimit fee, a fee for a draft, check or electronic debit returned for any reason, such as insufficient funds fee or a fee as a result of a stop payment order;
• Any notice of the addition of new terms and conditions or the deletion or amendment of existing terms and conditions applicable to accounts, products or services you obtain from us;
• Our Privacy Policy and other privacy statements or notices (by posting such notices on our website);
• Certain tax statements or notices that we are legally required to provide to you, such as the annual IRS interest statements; and
• Certain information or forms that we request from you and ask you to submit electronically, such as Master Deposit Agreements for Personal Accounts, W - 9s, or other agreements.

After you consent to this eCommunications Disclosure and register for online banking, all of your eligible accounts enrolled in online banking will receive eStatements. If you wish to change your preferences from electronic to paper, you can do so in your Communication Preferences on Personal Internet Banking. Setting your Communications preferences may not be available for all products, accounts or services, e.g., online-only accounts are electronic format only, nor available for all Communications, e.g., annual privacy notice, will be delivered electronically. For more information on the availability of your electronic communications preference management options, please refer to the appropriate electronic communications preference page on the website where you access your Communications. If you decide to receive some Communications in paper and some electronically, the Communications that you receive electronically will be governed by this eCommunications Disclosure.

This eCommunications Disclosure does not apply to any communications that we determine, in our sole discretion, that we are required to deliver in paper form under applicable law or that you should receive in paper rather than electronic form.

There is no software required to access Royal Heritage Commercial Bank's Personal Internet Banking service. All you need is a computer and Internet connection. Your Internet service provider may charge fees. You are responsible for these charges.

Please see the most current operating systems and web browser versions recommended for use with Personal Internet Banking at https://www.royalheritagecommercial.com/supported-browsers.

In order to access available Communications on the Royal Heritage Commercial Bank Mobile Banking App, you will need to download the app from your device's app store. Please see the most current list of devices for easy access to Royal Heritage Commercial Bank Mobile Banking App at - https://www.royalheritagecommercial.com/mobile-banking/#mobile-banking-faqs. Your mobile service provider may charge fees including, but not limit to, data charges and roaming charges. You are responsible for these charges.

Please see the most current browser and reader versions necessary to view our websites at https://www.royalheritagecommercial.com/supported-browsers. Communications provided within our websites are provided either in HTML and/or PDF format. For Communications provided in PDF format, Adobe Reader 6.0 or later versions is required - A free copy of Adobe Reader may be obtained from the Adobe website at - www.adobe.com Adobe.

In certain circumstances, some Communications may be provided by email. You are responsible for providing us with a valid email address where you can receive, view and accept delivery of Communications. At our option, we may also post the emailed Communications within our websites. In this situation, you agree that once we email the Communications to you and post them within our websites, that we have delivered the Communications to you in a form that you can retain.

To print or download Communications you must have a printer connected to your device or sufficient hard-drive or other storage space to store the Communications.

Subject to applicable law, you may withdraw your consent to this eCommunications Disclosure by calling the appropriate toll-free customer service phone numbers. For Personal Internet Banking the customer service phone numbers are available through the Customer Service Page. For other Royal Heritage Commercial Bank websites, please access the "Contact Royal Heritage Commercial Bank" link to find the appropriate phone numbers. You will not be charged a fee for withdrawal of your consent.

For Personal Internet Banking, if you withdraw your consent to this eCommunications Disclosure, we may stop providing you with Communications electronically and we may terminate your Personal Internet Banking access. Your withdrawal of consent is effective only after you have communicated your withdrawal to Royal Heritage Commercial Bank by calling the appropriate customer service phone numbers and Royal Heritage Commercial Bank has had a reasonable period of time to act upon your withdrawal. Your consent shall remain in force until withdrawn in the manner provided in this section.

If you want to withdraw consent to this eCommunications Disclosure for our online-only accounts, products or services, you will not be able to continue to use such accounts, products or services. This means you must (1) close any such online-only accounts to withdraw such consent as required by the terms of your accounts; (2) terminate any such online-only products to withdraw such consent as required by the terms of your products; or (3) cancel any pending transactions and terminate the online-only services to as required by the terms of your services.

For specific information regarding how to withdraw consent and what that means (conditions and consequences) for Personal Internet Banking or for a specific account, product or service will mean please go https://www.royalheritagecommercial.com/online-banking/#Terms-and-Conditions.

Royal Heritage Commercial Bank Securities (USA) Inc. and Royal Heritage Commercial Bank Insurance Agency (USA) Inc. currently maintains separate consent withdrawal processes. For online Royal Heritage Commercial Bank Securities (USA) Inc. and Royal Heritage Commercial Bank Insurance Agency (USA) Inc. clients who wish to withdraw their consent to the eCommunications Disclosure for their Royal Heritage Commercial Bank Securities (USA) Inc. and Royal Heritage Commercial Bank Insurance Agency (USA) Inc. products and services, please refer to the Customer Service Page the Royal Heritage Commercial Bank Securities (USA) Inc. or Royal Heritage Commercial Bank Insurance Agency (USA) Inc. websites or the "Contact Us" link on the Royal Heritage Commercial Bank website to find the appropriate customer service phone number for assistance.

Remember that you can always set your Communications preferences as described in Section 3 above without withdrawing your consent to this eCommunications Disclosure.

Your withdrawal of consent will also apply to any other person named on your account, product or service, subject to applicable law.

Consent Coverage; Certain Notices From You Are Not Covered. Applicable law or contracts sometimes require you to give us "written" notices. You must still provide these notices to us on paper. Your consent here does not relate to those notices.

You may print or make a copy of Communications by using the "Print" button (or otherwise using your printing functionality) or saving a copy - do this when you first review the Communications because after submission we do not necessarily keep them all in a place that you can access. Upon request, we will provide you with a paper copy of any Communications provided electronically by us to you pursuant to this eCommunications Disclosure, provided we receive your request within 12 months after the date the Communication was first made available to you electronically. You may request a paper copy of these Communications by calling us at the appropriate toll-free customer service phone number for your account, product or service. Please refer to the Customer Service Page within the Online Banking or the Royal Heritage Commercial Bank Securities (USA) Inc. or Royal Heritage Commercial Bank Insurance Agency (USA) Inc. websites or the "Contact Royal Heritage Commercial Bank" link on the Royal Heritage Commercial Bank website to find the appropriate customer service phone number.

Be sure to specify your account, service or product identification number, as applicable, the specific Communication for which you are requesting a paper copy, and the address to which it should be mailed. We may charge fees for paper copies of the Communications. Please refer to your applicable account, product, or service agreement.

In the event that your email address or other contact information is changed, you must notify us of such changes immediately through the following method:

Follow the "My contact information" link within Personal Internet Banking and click the appropriate links to update your personal details.

If you fail to update or change an incorrect or invalid email address or other contact information, you understand and agree that any Communications shall nevertheless be deemed to have been provided to you if they were made available to you in electronic form on our websites, emailed to the email address we have for you in our records, or delivered through other electronic means.

We recommend that you print or download a copy of this eCommunications Disclosure, the applicable service agreement and all other Communications to retain for your permanent records; if you have not already placed a copy of our Privacy Policy in your records, you can obtain another copy of or privacy policy https://www.royalheritagecommercial.com/online-privacy-statement/

05/2021

This document describes the account information that we may share between Royal Heritage Commercial Bank affiliates for purposes of identifying potential financial crimes. It also describes the actions that we may take should Royal Heritage Commercial Bank determine that an account is involved in financial crime activity, or if account information that has been provided to Royal Heritage Commercial Bank is inaccurate. Further, this Disclosure states our customers' responsibilities with respect to tax obligations and related reporting to applicable and various tax authorities.

Capitalized terms used in these Terms shall have the following meanings, unless the context otherwise requires:

"Authority" means any judicial, administrative or regulatory body, any government, or public or government agency authority or any Tax Authority, having jurisdiction over any part of Royal Heritage Commercial Bank Group.

"Compliance Obligations" means obligations of any member of the Royal Heritage Commercial Bank Group to comply with: (a) any applicable local or foreign law, regulation, rule, court order or agreement between any member of the Royal Heritage Commercial Bank Group and an Authority, or agreement or treaty between Authorities and applicable to Royal Heritage Commercial Bank or a member of the Royal Heritage Commercial Bank Group ("Laws") or international guidance and internal policies or procedures (b) any demand from Authorities or reporting, regulatory trade reporting, disclosure or other obligations under Laws, and (c) Laws requiring Royal Heritage Commercial Bank to verify your identity.

"Connected Person" means a person or entity whose information (including Personal Data or Tax Information) is provided by you, or on your behalf, to any member of the Royal Heritage Commercial Bank Group or otherwise received by any member of the Royal Heritage Commercial Bank Group in connection with the Services you request from Royal Heritage Commercial Bank or any member of the Royal Heritage Commercial Bank Group. A Connected Person may include, but is not limited to, any guarantor , a director or officer of a company, partners or members of a partnership, any "substantial owner", "controlling person", or beneficial owner, trustee, settler or protector of a trust, account holder of a designated account, payee of a designated payment, representative, your agent or nominee, or any other persons or entities with which you have a relationship that is relevant to your banking relationship with the Royal Heritage Commercial Bank Group.

"Controlling Persons" means individuals who exercise control over an entity (for a trust, these are the settlor, the trustees, the protector, the beneficiaries or class of beneficiaries, and any other individual who exercises ultimate effective control over the trust, and in the case of a legal entity other than a trust, such term means persons in equivalent or similar positions of control).

"Customer Information" means Personal Data, confidential information, and/or Tax Information of either you or a Connected Person [(including accompanying statements, waivers and consents)].

"Financial Crime" means money laundering, terrorist financing, bribery, corruption, tax evasion, fraud, evasion of economic or trade sanctions, and/or violations, or attempts to circumvent or violate any Laws or regulations relating to these matters.

"Royal Heritage Commercial Bank" means Royal Heritage Commercial Bank , National Association, Royal Heritage Commercial Bank Securities (USA) Inc., Royal Heritage Commercial Bank Insurance Agency (USA) Inc., Royal Heritage Commercial Bank Asset Management (USA) Inc., and/or Royal Heritage Commercial Bank Finance Corporation.

"Royal Heritage Commercial Bank Group" means Royal Heritage Commercial Bank Holdings plc, and/or any of, its affiliates, subsidiaries, associated entities and any of their branches and offices, and "any member of the Royal Heritage Commercial Bank Group" has the same meaning.

"Loss" means any claim, charge, cost (including, but not limited to, any legal or other professional cost), damages, debt, expense, tax, liability, obligation, allegation, suit, action, demand, cause of action, proceeding or judgment, however calculated or caused, and whether direct or indirect, consequential, punitive or incidental.

"Personal Information" means any information you provide to Royal Heritage Commercial Bank in order to obtain a financial product or service; any information about you that results from your transactions with Royal Heritage Commercial Bank; or any information about you that Royal Heritage Commercial Bank obtains in connection with providing financial products or services to you.

"Services" means, without limitation, (a) the opening, maintaining and closing of your bank accounts, (b) loans and other banking products and services we provide to you (such as investment advisory, broker, agency, custodian, clearing or technology procuring services), processing applications, credit and product eligibility assessment, and (c) the maintenance of Royal Heritage Commercial Bank's overall relationship with you.

"substantial owners" means any individuals entitled to more than 10% of the profits of or with an interest of more than 10% in an entity either directly or indirectly.

"Tax Authorities" means domestic or foreign tax, revenue, fiscal or monetary authorities.

"Tax Information" means any documentation or information (and accompanying statements, waivers and consents) related to the tax status of a Customer (regardless of whether that Customer is an individual or a business, non-profit or other corporate entity) and any owner, "controlling person", "substantial owner" or beneficial owner of a Customer that Royal Heritage Commercial Bank reasonably considers is needed to comply (or demonstrate compliance, or avoid non-compliance) with any Royal Heritage Commercial Bank Group member's obligations to any Tax Authority. Tax Information includes, but is not limited to, information about: tax residence and/or place of organization (as applicable), tax domicile, tax identification number, Tax Certification Forms, and certain Personal Data (including name(s), residential address(es), age, date of birth, place of birth, and citizenship).

"Tax Certification Forms" means any forms or other documentation as may be issued or required by a Tax Authority or by Royal Heritage Commercial Bank from time to time to confirm the tax status of an account holder or the Connected Person of an entity.

1.1. Royal Heritage Commercial Bank and other members of the Royal Heritage Commercial Bank Group may collect, use and share Customer Information (including relevant information about you, your transactions, your use of Royal Heritage Commercial Bank's products and services, and your relationships with the Royal Heritage Commercial Bank Group). Customer Information may be requested from you (or a person acting on your behalf), or may also be collected by or on behalf of Royal Heritage Commercial Bank, or members of the Royal Heritage Commercial Bank Group, from other sources (including from publically available information), generated or combined with other information available to Royal Heritage Commercial Bank or any member of the Royal Heritage Commercial Bank Group.

1.2 You agree to inform Royal Heritage Commercial Bank promptly, in writing if there are any changes to Customer Information supplied to Royal Heritage Commercial Bank or a member of the Royal Heritage Commercial Bank Group from time to time, and to respond to any request from Royal Heritage Commercial Bank, or a member of the Royal Heritage Commercial Bank Group.

1.3. You confirm that every Connected Person whose information (including Personal Data or Tax Information) has been provided to Royal Heritage Commercial Bank or a member of the Royal Heritage Commercial Bank Group has been notified of and agreed to the processing, disclosure and transfer of their information as set out in these Terms.

1.4. Where:

• You fail to provide Customer Information that Royal Heritage Commercial Bank reasonably requests, or
• You withhold or withdraw any consent which Royal Heritage Commercial Bank may need to process, transfer or disclose Customer Information for the Purposes, or
• Royal Heritage Commercial Bank or a member of the Royal Heritage Commercial Bank Group has suspicions regarding the possible commission of Financial Crime or a Customer presents a potential Financial Crime risk to a member of the Royal Heritage Commercial Bank Group,

Royal Heritage Commercial Bank may:

1. be unable to provide new, or continue to provide all or part of the, Services to you and reserves the right to terminate its business relationship with you;
2. take actions necessary for Royal Heritage Commercial Bank or a member of the Royal Heritage Commercial Bank Group to meet the Compliance Obligations; and/or
3. block, transfer or close your account(s)

In addition, the failure to supply Tax Information and accompanying statements, waivers and consents, may result in Royal Heritage Commercial Bank making its own decision with respect to your status, including whether to report you to a Tax Authority, and may require Royal Heritage Commercial Bank or other persons to withhold amounts as may be legally required by any Tax Authority and paying such amounts to any Tax Authority.

2.1 Royal Heritage Commercial Bank, and members of the Royal Heritage Commercial Bank Group, are required, and may take any action they consider appropriate in their sole and absolute discretion, to meet Compliance Obligations in connection with the detection, investigation and prevention of Financial Crime ("Financial Crime Risk Management Activity").

Such action may include, but is not limited to: (a) screening, intercepting and investigating any instruction, communication, drawdown request, application for Services, or any payment sent to or by you, or on your behalf, (b) investigating the source of or intended recipient of funds (c) combining Customer Information with other related information in the possession of the Royal Heritage Commercial Bank Group, and/or (d) making further enquiries as to the status of a person or entity, whether they are subject to a sanctions regime, or confirming your identity and status.

2.2 To the extent permissible by law, neither Royal Heritage Commercial Bank nor any other member of Royal Heritage Commercial Bank Group shall be liable to you or any third party in respect of any Loss whether incurred by you or a third party in connection with the delaying, blocking or refusing of any payment or the provision of all or part of the Services or otherwise as a result of Financial Crime Risk Management Activity.

You acknowledge you are solely responsible for understanding and complying with your tax obligations (including but not limited to, tax payment or filing of returns or other required documentation relating to the payment of all relevant taxes) in all jurisdictions in which those obligations arise and relating to the opening and use of account(s) and/or Services provided by Royal Heritage Commercial Bank and/or members of the Royal Heritage Commercial Bank Group. Certain countries may have tax legislation with extra-territorial effect regardless of your, or any of your Connected Person's, place of domicile, residence, citizenship or incorporation. Royal Heritage Commercial Bank and/or any member of the Royal Heritage Commercial Bank Group does not provide tax advice. You, and any Connected Person, should seek independent legal and/or tax advice. Royal Heritage Commercial Bank and/or any member of the Royal Heritage Commercial Bank Group has no responsibility in respect of your tax obligations in any jurisdiction which they may arise including, without limitation, any that may relate specifically to the opening and use of account(s) and/or Services provided by Royal Heritage Commercial Bank and/or members of the Royal Heritage Commercial Bank Group.

4.1. In the event of any conflict or inconsistency between any of these Terms and those in any other service, product, business relationship, account or agreement between you and Royal Heritage Commercial Bank, these Terms shall prevail. Any consents, authorizations, Royal Heritage Commercial Bank requested waivers and permissions that you have provided in relation to Customer Information shall continue to apply in full force and effect, to the extent permissible by applicable local law.

4.2. If all or any part of the provisions of these Terms become illegal, invalid or unenforceable in any respect under the law of any jurisdiction, that shall not affect or impair the legality, validity or enforceability of such provision in any other jurisdictions or the remainder of these Terms in that jurisdiction.

These Terms shall continue to apply notwithstanding any termination by Royal Heritage Commercial Bank or a member of the Royal Heritage Commercial Bank Group of the provision of any Services to you or the closure of any of your accounts.