This Online Banking Agreement (the "Agreement") governs the use of the FNB Web Banking™ and FNB Web Banking for Business™ and FNB Mobile Banking service (the "Service") to be provided by First National Bank, Edinburg, Texas, ("BANK" "we" "us" "our") to its consumer and business customers, as described from time to time in information distributed by the BANK to its customers. For purposes of this Agreement, "consumer" shall mean any natural person that opens an account with the BANK for personal, family or household purposes and "business" shall mean any natural person that opens an account with the BANK for business purposes. In this Agreement, "Customer" refers to the consumers or businesses subscribing to or using the Service ("Customer" "you" "your"). The subject headings are only for the reader's assistance and are not intended to be part of the Agreement. By using, or authorizing another to use, the Service in any way, you and any authorized users, agree to be bound to the following terms and conditions of this Agreement.


You may use a Personal Computer ("PC"), an Internet connection, a user code and password to obtain account balances and transaction information. You may also use your PC to obtain statements on your accounts and to transfer money between your accounts. However, transfers from your Money Market account to another account or to third parties by preauthorized, automatic, telephone, or computer transfer are limited to six per statement cycle with no more than three by check, draft, or similar order to third parties.  Transfers from a savings account to another account or to third parties by preauthorized, automatic, telephone, or computer transfer are limited to six per month with no transfers by check, debit card, or similar order to third parties. In addition, you may use your PC to electronically direct us to make Payments from your account to third parties ("Payees") that you have selected to receive payment through the Service ("Payments"). You may make Payments through the Service to any business professional, merchant, family member, or friend. The "Account" means your designated bill payment checking account at the BANK from which we make Payments on your behalf pursuant to this Agreement.

Web and text messaging access is needed to use First National Bank Mobile Banking. Your mobile phone carrier may charge you access fees. Check with your service provider for details on specific fees and/or charges. All terms and conditions applicable to First National Bank Web Banking apply to First National Bank Mobile Banking. Visit any of our convenient branches for complete details. Other terms and conditions may apply.

YOU REPRESENT AND WARRANT THAT ALL OF THE PERSONALLY IDENTIFIABLE INFORMATION PROVIDED BY YOU IS TRUE, CORRECT AND COMPLETE. PLEASE READ THIS AGREEMENT CAREFULLY AND KEEP A COPY FOR YOUR RECORDS. WE RESERVE THE RIGHT TO REFUSE TO ALLOW YOU TO USE THE SERVICE IN OUR SOLE DISCRETION.

BY ACCEPTING USE OF THIS SERVICE, YOU THEREBY INDICATE YOUR CONSENT TO THESE TERMS AND ACKNOWLEDGE YOUR RECEIPT AND UNDERSTANDING OF THIS DISCLOSURE. BY ACCEPTING USE OF THIS SERVICE, YOU ALSO AFFIRMATIVELY CONSENT AND AGREE TO PERMIT THE BANK AND ITS SUCCESSORS AND ASSIGNS TO: (I) ENTER INTO TRANSACTIONS INVOLVING "ELECTRONIC RECORDS" AND "ELECTRONIC MEANS," AS THOSE TERMS ARE DEFINED IN THE TEXAS UNIFORM ELECTRONIC TRANSACTIONS ACT (TEX. BUS. & COM. CODE § 43.007) AND SECTION 7001 OF THE ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT (15 U.S.C. § 7001), THAT YOU AGREE ARE TRANSFERABLE RECORDS; AND (II) MAKE DISCLOSURES AND PROVIDE NOTICES TO YOU IN ELECTRONIC FORM, IN LIEU OF CONDUCTING SUCH TRANSACTIONS AND PROVIDING SUCH NOTICES AND DISCLOSURES by paper copy. YOUR CONSENT AND AGREEMENT SHALL RELATE TO ALL FORMS OF DOCUMENTS, DISCLOSURES AND NOTICES REQUIRED UNDER APPLICABLE LAW AS A RESULT OF THE VARIOUS AGREEMENTS BETWEEN YOU AND THE BANK AND SHALL REMAIN VALID UNTIL SUCH TIME AS YOU EXERCISE YOUR RIGHT TO REVOKE THIS CONSENT. YOU AGREE TO NOTIFY US IMMEDIATELY OF ANY CHANGE IN YOUR E-MAIL ADDRESS. TO REVOKE THIS CONSENT, TO UPDATE YOUR CONTACT INFORMATION OR TO REQUEST A PAPER COPY OF ANY ELECTRONIC RECORD, DISCLOSURE OR NOTICE PROVIDED PURSUANT TO THIS CONSENT, YOU MUST EITHER CALL OR WRITE THE BANK AT THE TELEPHONE NUMBER OR ADDRESS LISTED BELOW.

BY ACCEPTING USE OF THIS SERVICE, YOU THEREBY CONFIRM THAT YOU HAVE ACCESS TO THE APPROPRIATE HARDWARE AND SOFTWARE NEEDED TO ACCESS AND RETAIN ELECTRONIC DISCLOSURES AND/OR NOTICES AND YOU UNDERSTAND HOW TO ACCESS SUCH INFORMATION.


You may include all utility companies, merchants, financial institutions, insurance companies, or any other companies or individuals whom you wish to pay through First National Bank Bill Payment (“bill Payment” on your list of Payees).  To do so, you must include the complete mailing address, telephone number and your account number for each Payee.  You must verify that each Payee was actually added to your Payee list.  You can do this by clicking on “Payees” under the Bill Payment tab.  If a given Payee was not added to your Payee List, no Payment will be made to that Payee.  We reserve the absolute right, in our sole discretion, to decline to make Payments to any or all Payees. Payees can not be added in FNB Mobile Banking.


Each Business will be assigned a FNB ID and Password to access their account via FNB Web Banking for Business™. The FNB ID and Password for a Business is shared among all their Authorized Users. Each Authorized User within the Business will be assigned a unique Cash Management ID and Password to access their Account via FNB Web Banking for Business™. FNB Web Banking™ users (consumer only) will be assigned a unique FNB ID and Password. Your password must be a minimum of 4 characters, up to a maximum of 8 characters, which must consist of a mixture of alphanumeric characters. You will be required to change your password periodically to enhance security.  Unless otherwise notified by you, we will assume that anyone using your user code, password or account number to accomplish electronic transactions is acting with your knowledge and consent.


You may choose to use Bill Payment, along with your PC, to electronically schedule Payments with the Service.  All Payments made through the Bill Payment System, must be set up 7 to 10 days prior to Payment date.  Payments are posted against your balance available for withdrawal, as defined in the Bank’s Fund Availability Policy.  New for 2007, payments sent Via Check will clear to the Customer’s balance when submitted for payment by the Merchant.  In addition, payments sent electronically clear the next day.  New for 2007, “scheduled” payments that fall on a Saturday will be taken out the previous business day. If the “scheduled” payment falls on a Sunday, the payment will be taken out the following business day.


You may schedule Payments and transfers to be initiated on the current business day, on a future date, or on the same date of each month, subject to the restrictions of this Agreement and any other agreements between you and the BANK. Although you can enter Payment and transfer information through the Service twenty-four (24) hours a day, seven (7) days a week, Payments and transfers can be initiated only on business days. Funds will be deducted from your Account on the business day on which a Payment or transfer is to be initiated ("Transaction Date"). If you direct the initiation of a Payment or transfer to occur on a day other than a business day, it will be initiated on the following business day. After funds are withdrawn from your Account, we may remit your Payments by mailing your Payee a check, or by electronic funds transfer, including through the use of the Automated Clearing House or by other means. Because of the time required to send your Payment to a given Payee, your Payees generally will not receive Payment on the Transaction Date. This is true regardless of whether the Payment is a next-day Payment, a future Payment, or a recurring Payment, as described below. Therefore, in order to provide sufficient time for Payments to be received by your Payees, the Transaction Date should be prior to the date your Payment is due, excluding any applicable grace periods (the "Due Date"). It is advisable to allow additional time for a Payment to be completed the first time you send a Payment to a Payee through the Service, in order to allow the Payee to adjust to the new form of payment. Payments and transfers must be scheduled by the cut-off time of 4:00 p.m. (CST) on any business day in order for the Payment and/or transfer to be initiated for that business day. 4:00 is the cutoff for all transfers.


Recurring transfers and/or Payments are those made for the same amount and are made at regular intervals on a weekly, bi-monthly, monthly basis, etc. Once started, recurring transfers and/or Payments will be made automatically until you delete or edit the transfer and/or payment from your list of payees or transfers.


If you have told us in advance to make recurring Payments out of your Account, you can stop any of these Payments by:

Calling or writing us at the telephone number or address listed in this Agreement in time for us to receive your request 3 business days or more before the Payment is scheduled to be made. If you call, we may require you to put your request in writing and get it to us within 14 days after you call. We may charge you a fee for each stop payment order you give. If these recurring Payments may vary in amount, the person you are going to pay will tell you, 10 days before each payment, when it will be made and how much it will be (you may choose instead to get this notice only when the Payment would differ by more than a certain amount from the previous payment, or when the amount would fall outside certain limits you set). If you duly order us to stop one of these Payments 3 business days or more before the transfer and/or Payment is scheduled in accordance with these instructions, and we do not do so, we will be liable for your actual damages.


If we do not complete a transfer to or from your Account on time or in the correct amount according to this Agreement, we will be liable for your actual damages. However, there are some exceptions. We will not be liable, for instance:

EXCEPT AS OTHERWISE EXPRESSLY AGREED HEREIN, IN NO EVENT WILL WE, OUR AFFILIATES, SERVICE PROVIDERS, EMPLOYEES, AGENTS OR CONTRACTORS BE LIABLE TO YOU FOR ANY INDIRECT, CONSEQUENTIAL, SPECIAL, INCIDENTAL OR PUNITIVE DAMAGES OR LOSSES RESULTING FROM OR CAUSED BY YOUR USE OF, OR INABILITY TO USE, THE SERVICE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. ALL OF OUR LIABILITY, AND THE LIABILITY OF OUR AFFILIATES, SERVICE PROVIDERS, EMPLOYEES, AGENTS OR CONTRACTORS, INCLUDING, WITHOUT LIMITATION, ANY LIABILITY FOR DAMAGES CAUSED, OR ALLEGEDLY CAUSED, BY ANY FAILURE OF PERFORMANCE, ERROR, OMISSION, INTERRUPTION, DELETION, DEFECT, DELAY, VIRUS, COMMUNICATION, LINE FAILURE, OR THEFT, DESTRUCTION OR UNAUTHORIZED ACCESS TO, ALTERATION OF OR USE OF ANY FILE, WHETHER FOR BREACH OF CONTRACT, TORT, NEGLIGENCE OR ANY OTHER CAUSE OF ACTION, SHALL BE STRICTLY LIMITED TO THE AMOUNT OF FEES WE HAVE COLLECTED FROM YOU IN THE TWELVE (12) MONTHS IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO YOUR CAUSE OF ACTION.

You must have sufficient funds available in your Account to pay for each transaction conducted with the Service. It is your responsibility to ensure that you do not create a negative balance in your Account by keeping track of your spending using the Service. If you attempt to use the Service when there are insufficient funds in your Account, the transaction will be denied. If for any reason a purchase occurs using the Service with insufficient funds in your Account, thereby creating a negative balance, you may be invoiced for the negative balance and agree to pay such amount promptly. In the alternative, you also agree that we may, at our discretion, offset such negative amount and any applicable fees against any funds that may thereafter be deposited into your Account. In addition, you are fully liable and responsible for all transactions authorized by you or otherwise accessed with your PIN.

You agree to settle all disputes regarding purchases you made using the Service with the merchant.


You may use your PC to cancel a Transfer and/or Payment up until 4:00 p.m. (CST) on the Transaction Date. There is no fee for canceling the Transfer and/or Payment online. If you do not use your PC to cancel a Transfer and/or Payment, you must request that we cancel the Transfer/and or Payment at least one (1) day prior to scheduled Transfer and/or Payment date. (Refer to Service Charge brochure for applicable fees).


If submitting a file transmission for, but not limited to, EFTPS Tax Payments, ACH, and/or Positive Pay, the file must be transmitted for same day processing by 4pm (CST) and successfully received by the bank. Any electronic files submitted after this deadline will be processed the next day. The bank is not responsible for fees, penalties, or interest due to late transmission beyond the banks control.


All Payments and transfers made with the Service, as well as all fees incurred through your use of the service, will appear on your monthly Account statement. The Payee name, Payment amount, and the date of the transfer will be shown for each transfer made through the Service during the month preceding your Account statement. You will receive a monthly Account statement from us, unless there are no transfers in a particular month. In any case you will get a statement at least quarterly.

If you have arranged to have direct deposits made into your Account at least once every 60 days from the same person or company, you can call our Bank By Phone service or use the Service to find out whether or not the deposit has been made.

BANK BY PHONE NUMBER

Toll Free Number 1-(866)-380-5255

Fees for the Service shall be payable in accordance with a schedule of charges as established and amended by the BANK from time to time. If applicable, you authorize us to automatically deduct the charges from your Account, and the BANK shall provide to Customer monthly notice of such debit(s) on the periodic statement. In addition, you authorize us to deduct amounts from your Account required by court orders or other legal process to which we are subject, including, without limitation, writs of garnishment, turnover orders, and other similar orders and instructions from courts.


You are solely responsible for the equipment (including, in the case of the Service, your personal computer and software) you use to access the Service. We are not responsible for errors or delays or your inability to access the Service caused by your equipment. We are not responsible for the cost of upgrading equipment to stay current with the Service nor are we responsible, under any circumstances, for any damage to your equipment or the data that resides thereon.


Our business hours are from 8:00 a.m. to 5:00 p.m. (CST), Monday through Thursday, 8:00 a.m. to 6:00 p.m. (CST) Friday, except bank holidays. Although Payments and transfers can be completed only on business days, the Service is available 24 hours a day, seven days a week, except during maintenance periods, for the scheduling of transfers.



Security of your transactions is important to us. Use of the Service therefore requires a user code and password. If you lose or forget your user code or password, you must immediately call Customer Service during the normal business hours:

CUSTOMER SERVICE NUMBER

Toll Free: 1(877)380-8573

We may accept as authentic any instructions given to us through the use of your user code or password. You agree to keep your user code and password secret and to notify us immediately if your user code or password is lost or stolen or if you believe someone else has discovered your user code or password. You agree that if you give your password to someone else, you are authorizing them to act on your behalf, and we may accept as authentic any instructions they give us to make transfers or otherwise use the Service. Do not discuss, compare, or share information about your Account number(s) with anyone unless you are willing to give him or her full use of your rights under this Agreement. If you furnish your password and grant actual authority to make transfers to another person (a family member or coworker, for example) who then exceeds that authority, you are liable for the transfers and/or Payments unless you immediately notify us that transfers and/or Payments by that person are no longer authorized. The Service enables you to change your password and you must do so regularly.

We do not assume any other liability or otherwise guarantee the security of information in transit to or from our facilities. Please note that we reserve the right to but are not obligated to: (1) monitor and/or record all communications and activity related to the Service; and (2) require verification of all requested transfers and Payments in the manner we deem appropriate before making the transfer and/or Payment (which may include written verification by you). You agree that our records will be final and conclusive as to all questions concerning whether or not your user code or password was used in connection with a particular transaction. If any unauthorized use of your user code or password occurs you agree to: (1) cooperate with us and appropriate law enforcement authorities in identifying and prosecuting the perpetrator; and (2) provide reasonable assistance requested by us in recovering any unauthorized transfer of funds. WE CANNOT ACCEPT NOTIFICATION OF LOST OR STOLEN USER CODES OR PASSWORDS OR UNAUTHORIZED TRANSFERS VIA E-MAIL.

Tell us AT ONCE if you believe your user code or password has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your Account (plus your maximum overdraft protection or line of credit). If you tell us within 2 business days, you can lose no more than $50. If you do NOT tell us within 2 business days after you learn of the loss or theft of your user code or password, and we can prove that we could have stopped someone from using your user code or password without your permission, if you had told us, you could lose as much as $500.

Also, if your statement shows transfers and/or Payments that you did not make, tell us AT ONCE. If you do not tell us within 60 days after the statement was mailed to you, you may not get back any money you lost after the 60 days if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason (such as a long trip or hospital stay) kept you from telling us, we will extend the time periods.

If you believe your user code or password has been lost or stolen or that someone has transferred or may transfer money from your Account without your permission, call or write us at the telephone number or address listed below.

In case of errors or questions about your electronic transfers, call or write us at the telephone or address listed below, as soon as you can, if you think your statement or receipt is wrong or if you need more information about a transfer listed on the statement or receipt. We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared.

(1) Tell us your name and Account number. (2) Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information. (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 determine whether an error occurred within 10 business days (20 business days if the transfer involved a new Account) after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days (90 days if the transfer involved a new Account, a point-of-sale transaction, or a foreign-initiated transfer) to investigate your complaint or question. If we decide to do this, we will credit your Account within 10 business days (20 business days if the transfer involved a new Account) for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your Account. Your Account is considered a new Account for the first 30 days after the first deposit is made, unless each of you on the Account already has an established Account with us before the Account is opened.

We will tell you the results within three business days after completing our investigation. If we decide that there was no error, we will send you a written explanation.

You may ask for copies of the documents that we used in our investigation. Please send any such request to:

FIRST NATIONAL BANK
CUSTOMER SERVICE
P.O. BOX 810
EDINBURG, TEXAS 78540-0810
Business Days: Monday through Thursday, 8:00 a.m. to 5:00 p.m.
Friday, 8:00 a.m. to 6:00 p.m.
Excluding Federal Holidays
Phone: 1(877)380-8573


We will disclose information to third parties about your Account or the transactions you make:

First National Bank does not knowingly market to or solicit information from children under 13 without parental consent. We recognize that protecting children's identities and privacy online is important and that the responsibility to do so rests with both the online industry and with parents.


You agree that we may verify credit and employment history by any necessary means, including preparation of a credit report by a credit-reporting agency. You also agree that we may obtain information regarding your Payee Accounts in order to facilitate proper handling and crediting of your Payments.


If you want to terminate your access to the Service, please call Customer Service. After receipt of your call, we will send a written termination authorization for your signature and return to us. We reserve the right to terminate your use of the Service, in whole or in part, in our sole discretion, at any time with or without cause and without prior written notice. In that event, or in the event that you give us a termination notice, we may (but are not obligated) to immediately discontinue making previously authorized transfers, including recurring transfers and other transfers that were previously authorized but not yet made. We also reserve the right to temporarily suspend the Service in situations deemed appropriate by us, in our sole and absolute discretion, including when we believe a breach of the security system has occurred or is being attempted. We may consider repeated incorrect attempts to enter your user code or password as an indication of an attempted security breach. Termination of the Service does not affect your obligations under this Agreement with respect to occurrences before termination or cooperation after termination.


Except as otherwise provided in this Agreement or by law, we are not responsible for any loss, injury, or damage, whether direct, indirect, special or consequential, caused by the Service or the use thereof or arising in any way out of the installation, operation, or maintenance of your PC equipment.


You may not transfer or assign your rights or duties under this Agreement.


This Agreement, any agreements related to your Accounts and accompanying disclosures, if any, set forth the entire understanding and agreement between you and us with respect to the subject matter hereof and supersede any prior or contemporaneous understandings or agreements with respect to such subject matter, except to the extent that prior agreements are incorporated by reference herein.


In the event that any provision of this Agreement is determined to be invalid, illegal or unenforceable, such determination shall not affect the other provisions of this Agreement and this Agreement shall be interpreted as if the invalid terms had not been included in this Agreement.


The laws of the state of Texas shall govern this Agreement and all transactions hereunder, without giving effect to any conflict of laws rule or principle that might result in the application of the laws of another jurisdiction. The exclusive venue for any disputes related to the Service shall be in Hidalgo County, Texas. Customer acknowledges that he/she has reviewed this Customer Agreement, understands the terms and conditions set forth herein, and agrees to be bound hereby.


The failure and delay of the BANK to strictly enforce the terms of this Agreement shall not be a waiver of the BANK's right to do so. The BANK can only waive a right under this Agreement if the waiver is in writing, identifies the right being waived, and is signed by the BANK.


EXCEPT AS EXPRESSLY OTHERWISE PROVIDED IN THIS AGREEMENT, WE MAKE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND TO YOU, WHETHER EXPRESS OR IMPLIED, REGARDING THE SERVICE, WHICH IS PROVIDED "AS IS," OR ANY OTHER SUBJECT MATTER OF THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.


We retain the absolute right to change a term or condition of this Agreement by mailing or delivering to you a written notice at least thirty (30) days before the effective date of any such change. We do not need to provide you with any prior notice where an immediate change in the terms or conditions of this Agreement is necessary to maintain and restore the security of our system or an Account. However, even in these cases, if the change is to be made permanent, we will provide you with a notice of the change with the next regularly scheduled periodic statement that we send you, or within thirty (30) days, unless disclosure would jeopardize the security of our system or an Account. Notices mailed or delivered to you under this paragraph will be considered effective if mailed to the most recent address we show for you in either Checking or Savings Accounts records, or e-mail address in which you authorized the BANK to send such notices and/or disclosures.


Customer, in consideration of being allowed access to the Service, agrees to indemnify and hold the BANK harmless for any losses or damages to the BANK resulting from the use of the Service, to the extent allowed by applicable law.


By accessing the Service, you hereby acknowledge that you will be entering a protected web site owned by the BANK, which may be used only for authorized purposes. The BANK may monitor and audit use of the Service, and all persons using the Service consent to such monitoring and are advised that if such monitoring reveals evidence of possible abuse or criminal activity, such evidence may be provided to appropriate law enforcement officials. Unauthorized attempts to upload or change information, or otherwise cause damage, on this Service are strictly prohibited and may be punishable by law, including the Computer Fraud and Abuse Act of 1986.


The fee schedule is provided separately in the Service Charge Brochure.


The BANK and Customer (together, the "Parties") shall have the right to apply to a court to enjoin any breach of this Agreement. Excepting the right of the parties to seek such relief, all claims and matters in question arising out of or related to this Agreement or the relationship between the parties created by this Agreement, whether sounding in contract, tort or otherwise, shall be resolved by binding, self-administered arbitration pursuant to the rules of the American Arbitration Association ("AAA"), and all such proceedings shall be subject to the Federal Arbitration Act.

There shall be three arbitrators. Each party shall designate an arbitrator, who need not be neutral, within 30 days notice of a party's intent to proceed with arbitration. The two arbitrators so designated shall elect a third arbitrator. If either party fails to designate an arbitrator within the time specified, or the two parties' arbitrators fail to designate a third arbitrator within 30 days of their appointment, the remaining arbitrator(s) shall be appointed by the AAA. The arbitrators shall decide whether a particular dispute is or is not arbitral.

Each party shall pay for the expenses incurred by its designated arbitrator, and the expenses incurred by the third, neutral arbitrator shall be divided equally between the parties. Only damages allowed pursuant to this Agreement may be awarded and the arbitrators shall have no authority to award punitive or exemplary damages, either in arbitration or in litigation. The arbitration shall take place in Edinburg, Texas.