Bandera Bank eDeposits Agreement

In this Disclosure and Agreement, the words "I," "me," "my" and "us" mean the consumer or business that uses any of the eDeposits Remote Deposit Capture Services (the "Services") described in this Disclosure and Agreement. My use of the eDeposits Remote Deposit Capture Services and my acceptance of the BANDERA BANK Account Agreement are hereby incorporated into and made a part of this Disclosure and Agreement. In the event of a discrepancy between this Disclosure and Agreement and Account Agreement, this Disclosure and Agreement will control.

Use of the Services – By providing the link for the eDeposits service on BANDERA BANK Online Banking and access to the mobile deposit services, BANDERA BANK  have authorized me to remotely deposit to any of my accounts (the "Account") with BANDERA BANK by electronically transmitting a digital image of any paper checks I receive from other parties. My use of the Services constitutes my acceptance of the terms and conditions of this Disclosure and Agreement. I agree to comply with the hardware and software requirements with the indicated specifications posted at www.banderabank.com.

Upon receipt of the digital image, BANDERA BANK will review the image for acceptability. I understand and agree that receipt of an image does not occur until after BANDERA BANK notifies me of receipt of the image via the Deposit History feature. I understand that, in the event I receive a notification from BANDERA BANK confirming receipt of an image, such notification does not mean that the image contains no errors or that BANDERA BANK is responsible for any information I transmit to BANDERA BANK. BANDERA BANK is not responsible for any image that is not received from me. Following receipt of the image, BANDERA BANK may process the image by preparing a "substitute check" or clearing the item as an image. Notwithstanding anything to the contrary. BANDERA BANK reserves the right, within their sole and absolute discretion, to accept or reject any item for remote deposit into my Account. BANDERA BANK’s acceptance of my check(s) does not guarantee the check(s) will clear the payee's account. I understand that any amount credited to my Account for items deposited using the Services is a provisional credit and I agree to indemnify BANDERA BANK against any loss suffered because of the acceptance of the imaged check deposits.

In addition, I agree that I will not (i) modify, change, alter, translate, create derivative works from, reverse engineer, disassemble or decompile the technology or Service, (ii) copy or reproduce all or any part of the technology or Service; or (iii) interfere, or attempt to interfere, with the technology or Service.

Guarantee Specific to Deposits Received for Credit to a Business Account – My use of the Services for the purpose of depositing to a Business Account constitutes my understanding and agreement that I may be personally liable for any expenses BANDERA BANK incurs in attempting to obtain final payment for the item in question, outside of the routine costs associated with item processing, in the event of a default by the Business. This includes but is not limited to recovery of the amount credited in the event of non-payment, collection costs and attorney's fees as applicable, as well as any and all costs associated with BANDERA BANK enforcing this Guarantee. This Guarantee shall benefit BANDERA BANK and its successors and assigns.

Guarantee Specific to Deposits Received for Personal Account – My use of the Services for the purpose of depositing to my personal account constitutes my understanding and agreement that I am personally liable for any expenses BANDERA BANK incurs in attempting to obtain final payment for the item in question, outside of the routine costs associated with item processing, in the event of an unpaid item. This includes but is not limited to recovery of the amount credited in the event of non-payment, collection costs and attorney's fees as applicable, as well as any and all costs associated with BANDERA BANK enforcing this Guarantee. This Guarantee shall benefit BANDERA BANK and its successors and assigns.

Compliance with Law – I agree to use the Services for lawful purposes and in compliance with all applicable laws, rules and regulations, as well as all laws pertaining to the conduct of my business if deposits are being made to my business or personal accounts. I warrant that I will only transmit acceptable items for deposit and have handled the original items in accordance with applicable laws, rules and regulations. I promise to indemnify and hold BANDERA BANK harmless from any damages, liabilities, costs, expenses (including attorneys' fees) or other harm arising out of any violation thereof. This indemnity will survive termination of my Account and this Agreement.

Check Requirements – Any image of a check that I transmit to BANDERA BANK must accurately and legibly provide all the information on the front and back of the check at the time presented to me by the drawer. Prior to electronically delivering the original check, I will endorse the back of the original check. My endorsement will include my signature and the following information: the words, "For Deposit Only", my Account Number, Date and the words "via eDeposits". The electronic image of the check transmitted to BANDERA BANK must accurately and legibly provide, among other things, the following information: (1) the information identifying the drawer and the paying bank that is preprinted on the check, including complete and accurate MICR information and signature(s); and (2) other information placed on the check prior to the time an image of the check is captured, such as any required identification written on the front of the check and any endorsements applied to the back of the check. The image quality for the check will meet the standards for image quality established by the American National Standards Institute ("ANSI"), the Board of Governors of the Federal Reserve, and any other regulatory agency, clearing house or association.

Rejection of Deposit – BANDERA BANK is not liable for any service or late charges levied against me due to BANDERA BANK's rejection of any item. In all cases, I am responsible for any loss or overdraft plus any applicable fees to my Account due to an item being returned.

Items Returned Unpaid – BANDERA BANK will send me a written notice of transactions that are unable to be processed because of returned items. With respect to any item that I transmit to BANDERA BANK for remote deposit that is credited to my Account, in the event such item is dishonored, I authorize BANDERA BANK to debit the amount of the item(s) to my Account.

Email Address – I agree to notify BANDERA BANK immediately if I change my email address, as this is the email address where BANDERA BANK will send me notification of any receipt or rejection of remote deposit items or any changes to the Services.

Unavailability of Services – I understand and agree that the Services may at times be temporarily unavailable due to Bank system maintenance or technical difficulties including those of the Internet service provider and Internet software. In the event that the Services are unavailable, I acknowledge that I can deposit an original check at any BANDERA BANK branch or by mailing the original check to BANDERA BANK at P.O. Box 1596, Bandera, Texas  78003. It is my sole responsibility to verify that items deposited using the Services have been received and accepted for deposit by BANDERA BANK. However, BANDERA BANK will email notification of any items that are rejected by the next business day following rejection.

Business Day and Availability Disclosure – I understand that BANDERA BANK business days are Monday through Friday, except holidays. Business hours for eDeposits are 8:00 a.m. to 3:00 p.m., Central Time, each business day Monday through Friday.

Funds Availability – With regard to the availability of deposits made using the Services, funds will be available as set forth in the BANDERA BANK Funds Availability Policy, which is part of the Account Agreement. eDeposits made Monday-Friday before 3:00pm (cst) will be processed the same day with the funds generally being available the next business day. eDeposits made after 3:00pm (cst). Monday-Friday, or on weekends/holidays will be processed the next business day with the funds generally being available 1 business day later.

Accountholder's Warranties – I make the following warranties and representations with respect to each image of an original check I transmit to BANDERA BANK using the Services:

• Each image of a check transmitted to BANDERA BANK is a true and accurate rendition of the front and back of the original check, without any alteration or additions except as specified in this agreement, and the drawer of the check has no defense against payment of the check.
• The amount, payee, signature(s), and endorsement(s) on the original check are legible, genuine, and accurate.
• I will not deposit or otherwise endorse to a third party the original check and no person will receive a transfer, presentment, or return of, or otherwise be charged for, the check (either the original check, or a paper or electronic representation of the original check) such that the drawer will be asked to make payment based on a check that has already been paid.
• Other than the digital image of an original check that I remotely deposit through the Services, there are no other duplicate images of the original check.
• I have instituted procedures to ensure that each original check was authorized by the drawer in the amount stated on the original check and to the payee stated on the original check.
• I am authorized to enforce each item transmitted or authorized to obtain payment of each item on behalf of a person entitled to enforce such transmitted item.
• I have not knowingly failed to communicate any material information to BANDERA BANK.
• I have possession of each original check deposited using the Services and no party will physically submit the original check for payment.
• Files and images transmitted to BANDERA BANK will contain no viruses or any other disabling features that may have an adverse impact on BANDERA BANK's network, data, or related systems.

Storage of Original Checks – I must securely store each original check until BANDERA BANK notifies me via the deposit history on mobile banking that my deposit has been accepted. Once I verify BANDERA BANK has successfully received my deposit, I will destroy the original check by shredding or by another commercially acceptable means of data destruction and shall indemnify BANDERA BANK for any and all losses or other damages may result from any check being deposited more than once. I understand and agree that I am responsible for any loss caused by my failure to securely control the original checks and expressly authorize BANDERA BANK to debit my account in the amount of any check, which is deposited more than once, plus any charge-back fee.

Accountholder's Indemnification Obligation – I understand and agree that I am required to indemnify and hold harmless BANDERA BANK from any and all claims, actions, damages, liabilities, costs, and expenses, including reasonable attorneys' fees and expenses arising from my use of the Services and/or breach of this Disclosure and Agreement. I understand and agree that this paragraph shall survive the termination of this Agreement.

In Case of Errors – In the event that I believe there has been an error with respect to any original check or image thereof transmitted to BANDERA BANK for deposit or a breach of this Agreement, I will immediately contact BANDERA BANK regarding any such error or breach as set forth below by calling 830-796-3711 or by secured message through Bandera Bank online banking.

Limitation of Liability – I understand and agree that BANDERA BANK is not responsible for any indirect, consequential, punitive, or other damages of any type attributable to my breach of this Disclosure and Agreement or to the availability of the Services.

Warranties – I UNDERSTAND THAT BANDERA BANK DOES NOT MAKE ANY WARRANTIES ON EQUIPMENT, HARDWARE, SOFTWARE OR INTERNET SERVICE PROVIDER, OR ANY PART OF THEM, EXPRESSED OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. BANDERA BANK IS NOT RESPONSIBLE FOR ANY LOSS, INJURY OR DAMAGES, WHETHER DIRECT, INDIRECT, SPECIAL OR CONSEQUENTIAL, CAUSED BY THE INTERNET PROVIDER, ANY RELATED SOFTWARE, OR BANDERA BANK'S USE OF ANY OF THEM OR ARISING IN ANY WAY FROM THE INSTALLATION, USE, OR MAINTENANCE OF MY PERSONAL COMPUTER HARDWARE, SOFTWARE, OR OTHER EQUIPMENT.

Change in Terms – BANDERA BANK may change the terms and charges for the Services as indicated in this Disclosure and Agreement by notifying me of such change via my email address for the Services and may amend, modify, add to, or delete from this Disclosure and Agreement from time to time. My use of the Services after notification of any change by BANDERA BANK constitutes my acceptance of the change.

Termination of the Services – I may, by written request, terminate the Services provided for in this Disclosure and Agreement. BANDERA BANK utilizes an automatic enrollment process based on pre-determined criteria. My ability to use this service may be terminated without notice by BANDERA BANK if I fail to meet the requirements or I fail to comply with the requirements of the services. In the event of termination of the Services, I will remain liable for all transactions performed on my Account.

Relationship to Other Disclosures – The information in these Disclosures applies only to the Services described herein. Provisions in other disclosure documents, as may be revised from time to time, remain effective for all other aspects of the Account.

Governing Law – I understand and agree that this Disclosure and Agreement and all questions relating to its validity, interpretation, performance, and enforcement shall be governed by and construed in accordance with the internal laws of the State of Texas, notwithstanding any conflict-of-laws doctrines of such state or other jurisdiction to the contrary. I also agree to submit to the jurisdiction of the courts of Blanco County, State of Texas.

Periodic Statement – Any remote deposits made through the Services will be reflected on my monthly account statement. I understand and agree that I am required to notify BANDERA BANK of any alleged error relating to images transmitted using the Services by no later than 60 days after the monthly statement, that includes said transaction, has been emailed to me or otherwise sent to me by BANDERA BANK. I am responsible for any errors that I fail to bring to BANDERA BANK's attention within such time period.

Limitations on Frequency and Dollar Amount – I understand and agree that I cannot exceed the limitations on frequency and dollar amounts of remote deposits that are set forth by BANDERA BANK.

Unacceptable Deposits – I understand and agree that I am not permitted to deposit the following items using the Services:

• Any item drawn on my Account or my affiliate's Account at BANDERA BANK.
• Any item that is stamped with a "non-negotiable" watermark.
• Any item that contains evidence of alteration to the information on the check.
• Any item issued on a financial institution in a foreign country.
• Any item that is incomplete.
• Any item that is "stale dated" (more than six months from its date) or "postdated" (dated in the future).
• Any third party check (i.e., any item that is made payable to another party and then endorsed to me by such party).
• Any item purported to be a lottery or prize winning.
• Any item previously submitted for deposit.

Confidentiality – I acknowledge and agree that confidential data relating to BANDERA BANK's Services, marketing, strategies, business operations and business systems (collectively, "Confidential Information") that may come into my possession in connection with this Disclosure and Agreement. I understand and agree that I am prohibited from disclosing and agree to maintain the confidentiality of BANDERA BANK's Confidential Information.

Waiver – The failure of either party to seek a redress for violation, or to insist upon the strict performance, of any covenant, provision, or condition herein shall not constitute the waiver of the terms or of the terms of any other covenant, provision, or condition herein, and each party shall have all remedies provided herein with respect to any subsequent act which would have originally constituted the violation hereunder.

Relationship – This Disclosure and Agreement does not create, and shall not be construed to create, any joint venture or partnership between the parties. No officer, employee, agent, servant, independent contractor of either party shall at any time be deemed to be an employee, servant, agent, or contractor of the other party for any purpose whatsoever.

Deposit Limits – The default daily dollar deposit limit is $5,000 and the monthly cumulative dollar deposit limit is $30,000.  Up to 30 checks can be included in one deposit and multiple deposits can be submitted as long as the accumulated dollar amount of the deposit(s) does not exceed the daily deposit limit.