Online Access Agreement

This Online Access Agreement for accessing your accounts via Texas State Bank Online ("Freedom Net") explains the terms and conditions governing the following online services: banking, Freedom Pays and other banking services offered through Texas State Bank Online Services. The accounts that may be accessed via the Freedom Net Services include only accounts maintained with Texas State Bank. By using the Freedom Net Service you agree to abide by the terms and conditions of this Online Access Agreement. Freedom Net will be governed by and interpreted in accordance with all applicable federal laws, regulations, and the laws of the state of Texas. The following rules will apply to the extent there is no applicable federal law or regulation. The account or service you are accessing via Texas State Bank will be governed by and interpreted in accordance with the laws of Texas. The terms "we," "us," "our," and "Bank" refers to Texas State Bank. "You" refers to each signer on an account. The term "business day" shall mean every day except Saturdays, Sundays and federal holidays.

Freedom Net can be used to access certain accounts through Texas State Bank Online. The applicable Terms and Conditions of our Account Agreement (your "Terms and Conditions Disclosure Agreement") also governs each of your accounts at the Bank.

A. Requirements

To access your account through Freedom Net, you must have an eligible Bank account (listed below) and an online password.

Accounts Accessible through Freedom Net:

• Checking Accounts
• Money Market Checking
• Savings Accounts
• Loans

B. Fees

There are no monthly or transaction fees for accessing your account(s) through Freedom Net. See Section VII for a description of Freedom Pays fees and other miscellaneous fees and charges. Other fees, as described in the applicable Terms and Conditions Disclosure Agreement, may apply to services ordered online and to transfers from a credit account.

Please note that fees may be assessed and billed separately by your online service provider.

C. Electronic Mail (E-mail)

Sending E-mail through Freedom Net is a way to communicate with customer service of the Bank. To ensure the security of your account information, we recommend that you use E-mail when asking specific questions about your account(s).

You cannot use E-mail to initiate transactions on your account(s). For banking transactions, please use the appropriate functions within Texas State Bank Freedom Net or call at (866) 899-3332.

D. New Services

Texas State Bank may, from time to time, introduce new Freedom Net services. We shall update this Online Access Agreement to notify you of the existence of these new services. By using these services when they become available, you agree to be bound by the terms contained in this Online Access Agreement.

E. Benefits of Using Freedom Net

Through Texas State Bank Freedom Net, you can manage your eligible personal or business accounts from your home or office on your personal computer. You can use Freedom Net to:

• View account balances and review transaction history.
• Transfer money between accounts.
• Transfer money to pay your Texas State Bank line of credit.
• Set up an Automatic Transfer to make monthly transfers from one account to another.
• Communicate directly with customer service of the Bank via E-mail.

F. Log In

The password used to log in to access Texas State Bank's Freedom Net website is case sensitive. For added security, the program is sensitive to upper and lower case letters. For this reason, it is very important to remember how you logged on the first time.

The first time you access any of your accounts through Freedom Net confirms your agreement to be bound by all the terms and conditions of this Online Access Agreement and acknowledges your receipt and understanding of this disclosure.

A. Your Freedom Net Password

You will be given an online Password that will give you access to your accounts both through Freedom Net and Freedom Fone. This password can be changed within Freedom Net and our touch-tone telephone service. If you choose to use a word or words as your password instead of numbers, you will need to use the letters that appear on the telephone keys to spell your password when using the touch-tone service. We recommend that you change your password regularly. We are entitled to act on instructions received under your password. For security purposes, it is recommended that you memorize this online password and do not write it down or give it to anyone. You are responsible for keeping your password and account data confidential.

You agree that we may send notices and other communications including Access ID and Password confirmations, to the current address shown in our records, whether or not that address includes a designation for delivery to the attention of any particular individual. You further agree that Texas State Bank will not be responsible or liable to you in any way if information is intercepted by an unauthorized person, either in transit or at your place of business. You agree to: 1) keep your Access ID and Password secure and strictly confidential, providing it only to authorized signers on your account(s); (2) instruct each person to whom you give your Access ID and Password that he or she is not to disclose it to any unauthorized person; and (3) immediately notify us and select a new password if you believe your Access ID and Password may have become known to an unauthorized person. If you think your Access ID and Password have been compromised, you should change it immediately.

B. Payment Account

Although there are no fees for accessing your accounts via Freedom Net, you may be asked to designate a payment account for selected services such as Freedom Pays. You agree to pay promptly all fees and charges for services provided under this agreement, and authorize us to charge the account that you have designated as the payment account or any other account for the fees.

If you close the payment account, you must notify us and identify a new payment account for the selected services. Additionally, if you close all your accounts, you must notify Customer Service to cancel your Freedom Net services.

Your Freedom Net services may be canceled at any time without prior notice due to insufficient funds in one of your accounts. After cancellation, Freedom Net services may be reinstated, once sufficient funds are available in your accounts to cover any fees and other pending transfers or debits. In order to reinstate your services, you must call Customer Service at (866) 899-3332.

If you do not schedule or process a payment in your Texas State Bank Freedom Pays account via Freedom Net for any three (3) month period, Texas State Bank reserves the right to disconnect the service.

You agree to be responsible for any telephone charges incurred by accessing your account through Freedom Net.

If you wish to cancel any of your Online Services offered through Freedom Net, please contact Customer Service at (866) 899-3332. or send us cancellation instructions in writing to Texas State Bank, Customer Service - 4th Floor, P. O. Box 4797, McAllen, Texas 78502-4797.

C. Our Liability

Except as specifically provided in this Online Access Agreement or where the law requires different standards, you agree that neither we nor the service providers shall be responsible for any loss, property damage or bodily injury, whether caused by the equipment, software, the Bank, OR by Internet browser providers such as Netscape (Netscape Navigator browser) and Microsoft (Microsoft Explorer browser), Or by Internet access providers OR by online service providers OR by an agent or subcontractor of any of the foregoing, nor shall we or the service providers be responsible for any direct, indirect, special or consequential, economic or other damages arising in any way out of the installation, use or maintenance of the equipment, software, the Online Services, or Internet browser or access software.

D. Hours of Accessibility

You can access your accounts through Freedom Net seven days a week, 24 hours a day. However, at certain times, some or all of Freedom Net Online services may not be available due to system maintenance. During these times, you may use the touch-tone telephone service, a Texas State Bank ATM or a branch to conduct your transactions.

A transfer initiated through Freedom Net by 6:00 p.m. (Central Time) on a business day is posted to your account the same day. All transfers completed after 6:00 p.m. (Central Time) on a business day or on a Saturday, Sunday or banking holiday will be posted on the next business day.

Every day is a business day except Saturdays, Sundays, and federal holidays.

E. Additional Terms and Conditions

Obtaining Account Balance and Transaction History – You can obtain balance and transaction history of all eligible accounts that are enrolled in Freedom Net. See Section II for specific accounts accessible through Freedom Net. Account balance and transaction history reflects activity through the close of the previous business day.

Transferring funds – The number of transfers from a savings account is limited as described in the applicable Terms and Conditions Disclosure Agreement. If a hold has been placed on deposits made to an account from which you wish to transfer funds, you cannot transfer the portion of the funds held until the hold expires.

A. Changes to charges, Fees or Other Terms

We reserve the right to change the charges, fees or other terms described in this Online Access Agreement. When changes are made to any fees, charges, or other material terms, we will update this Online Access Agreement and either send a notice to you at the address shown on our records, or send you an electronic mail message (E-mail). The notice will be posted or sent at least thirty (30) days in advance of the effective date of any additional fees for online transactions, or of any stricter limits on the type, amount or frequency of transactions or any increase in your responsibility for unauthorized transactions, unless an immediate change is necessary to maintain the security of the system. If such a change is made, and it can be disclosed without jeopardizing the security of the system, we will provide you with electronic or written notice within thirty (30) days after the change. As always, you may choose to accept or decline changes by continuing or discontinuing the accounts or services to which these changes relate. We also reserve the option, in our business judgement, to waive, reduce or reverse charges or fees in individual situations. The applicable Terms and Conditions Disclosure Agreement governs changes to fees applicable to specific accounts.

B. Disclosure of Account Information

You authorize the Bank to disclose to third parties information you have provided or that we or our affiliates have obtained about your accounts and the transfers you make:

• To comply with government agency or court orders or request; or
• To verify the existence and condition of your account for a third party, such as a credit bureau or merchant; or
• Where it is necessary for completing transfers; or
• To provide services relating to your account or to offer other products and services;
• If you give us your permission; or
• In accordance with the Bank's Privacy Policy which is attached to this Agreement.

C. Questions or Error Correction on Freedom Net Banking and Freedom Pays Transactions

In case of questions or errors about online funds transfers or bill payments made through Freedom Net involving a Bank account, you should do one of the following:

• E-mail Customer Service at Freedom@TexasStateBank.com. For questions or errors about bill payment transactions you should use the "Bill Pay Inquiry" form accessible through the Payment History area of Freedom Pays.
• Call Customer Service at (866) 899-3332.
• Write to Texas State Bank, Customer Service – 4th Floor, P. O. Box 4797, McAllen, Texas 78502-4797, as soon as you identify any errors or discrepancies in your statement or transaction record, or if you need more information about a transaction listed on the statement or transaction record.

We must hear from you no later than sixty (60) days after we have sent the first paper or online statement on which the problem or error appeared. If you notify us verbally, we may require that you send us your complaint or question in writing within ten (10) business days.

When you tell us about the problem, please:

• Tell us your name and account number.
• Describe the error or the transaction you are unsure about, and explain as clearly as you can why you believe it is in error or why you need additional information.
• Tell us the dollar amount of the suspected error.
• For a bill payment, tell us the checking account number used to pay the bill, payee name, date the payment was sent, payment amount, reference number, and payee account number for the payment in question.

We will determine whether an error occurred within ten (10) business days after we hear from you, and we will correct any error promptly. If we need more time, however, we may take up to 45 calendar days to investigate your complaint or question. If we decide to do this, we will credit your account within ten (10) business days for the amount you think is in error, so that you will have use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint in writing and we do not receive it within ten (10) business days, we may not credit your account while we complete our investigation. We will tell you the results of our investigation within three business days after we complete our investigation. If we decide that there was no error, we will send you a written explanation. You may ask for copies of the documents used in our investigation.

If we do not complete a transfer to or from your Bank account on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages as provided elsewhere in this Agreement. However, there are some exceptions. We will not be liable:

• If, through no fault of ours, you do not have enough money in your account to make a transfer or bill payment.
• If a legal order directs us to prohibit withdrawals from the account.
• If your account has been frozen.
• If your account is closed.
• If the transfer or bill payment would cause your balance to go over the credit limit for any convenience credit arrangement set up to cover overdrafts.
• If you, or anyone you allow, commits any fraud of violates any law or regulation.
• If any electronic terminal, telecommunication device or any part of the electronic fund transfer system is not working properly and you knew about the breakdown when you started the transfer.
• If you have not provided us with complete and correct payment information, including without limitation the name, address, account number, and payment amount for the payee on a bill payment.
• If you have not properly followed the instructions for using Freedom Net service.
• If circumstances beyond our control (such as flood, fire or improper transmission or handling of payments by a third party) prevent the transfer or bill payment, despite reasonable precautions taken by us.

Texas State Bank cannot be responsible for customer errors or negligent use of the Freedom Net service and will not cover losses due to:

• Input errors or misuse of the Online service.
• Negligent handling or sharing of passwords leading to an unauthorized access to your accounts.
• Leaving your computer unattended during an Online Banking session –you must "Sign Off/Log Off" to end your session.
• Failure to report known incidents of unauthorized account access within two (2) business days.

D. Other General Terms

Other Agreements – In addition to this Online Access Agreement you agree to be bound by and will comply with the requirements of the applicable Terms and Conditions Disclosure Agreement, the Bank's rules and regulations, the rules and regulations of any funds transfer system to which the Bank belongs, and applicable state and federal laws and regulations. We agree to be bound by them also.

Bank's Right to Terminate this Agreement – The Bank reserves the right to terminate this Online Access Agreement and your access to Online Services through Freedom Net, in whole or in part, at any time.

A. Preventing Misuse of your Account

Your role is very important in the prevention of any wrongful use of your account. You must promptly examine your statement upon receipt. If you find that your records and ours disagree, you must immediately call Customer Service at (866) 899-3332, or write us at our address set out elsewhere in this Agreement.

Protecting Personal Information – In addition to protecting your account information, you should take precautions to protect your personal identification information, such as your Social Security Number, driver’s license number, etc. The disclosure of the information by itself or together with information regarding your account may allow unauthorized access to your account(s). It is your sole responsibility to protect personal information with the same level of care that you protect your account information.

Taking Care of Your Online Password – The password that is used to gain access on Online Services through Texas State Bank should be kept confidential. For your protection we recommend that you change your online password regularly. We recommend that you memorize this online password and do not write it down. You are responsible for keeping your password, account numbers and other data confidential. If you believe that your online password may have been lost or stolen, or that someone has transferred or may transfer money from your account without your authorization or permission, immediately notify Texas State Bank Customer Service at (866) 899-3332, or write us at the address set out elsewhere in this Agreement.

B. Unauthorized Transactions in Your Bank Accounts

Notify us immediately if you believe another person has improperly obtained your online password. Also notify us if someone has transferred or may transfer money from your Bank deposit account without your authorization or permission, or if you suspect any fraudulent activity on your account. Only reveal your account information number to a legitimate entity for a purpose you authorize (such as your utility company or insurance company for automatic payments). To notify us, call Customer Service at (866) 899-3332, or write to Texas State Bank, Customer Service - 4th Floor, P. O. Box 4797, McAllen, Texas 78502-4797.

If your online password has been compromised and an unauthorized transfer has occurred and you tell us within two (2) business days after you learn of the theft or loss, you can lose no more than $50 if someone used your online password without your authorization or permission to access a Bank deposit account. If you DO NOT tell us within two (2) business days after you learn of the theft or loss, and we could have stopped someone from taking money without your authorization or permission had you told us, you could lose as much as $500.

Also, if your statement shows transfers, withdrawals or purchases you did not make or authorize, please notify us at once. If you do not notify us within sixty (60) days after the paper or online statement was sent to you, and we could have stopped someone from taking money if you had told us in time, you may not get back any money lost after the sixty (60) days. If extenuating circumstances, such as a long trip or hospital stay, kept you from telling us, the time periods in this section will be extended.

Check Copy
Customers who use check truncation or imaging are entitled to 2 free check copies per monthly statement cycle. Refer to your Account Disclosure Statement for applicable fees.

Statement Copy
Refer to your Account Disclosure Statement for applicable fees.

All charges listed above will be automatically deducted from your account and will appear on your account statement.