BILL PAYMENT DISCLOSURE AND AGREEMENT

Addendum to the "Online Banking Disclosure and Agreement." These are additional terms and conditions applicable to the Online Banking Bill Payment service. This addendum is provided to you in accordance with Federal Regulation "E" and amends the terms and conditions contained in the Credit Union's "Online Banking Disclosure and Agreement," receipt of which is hereby acknowledged, and which is incorporated by this reference. In the event of a conflict between this addendum and the disclosure, this addendum shall control. The addendum and disclosure are collectively referred to herein as the "Agreement." For the purpose of this Agreement, the terms "we," "us," "our," "SchoolsFirst FCU," and "Credit Union" refer to SchoolsFirst Federal Credit Union. "You" refers to Members.

Additional Terms and Conditions Applicable to Bill Payment Services

The bill payment service allows access to your checking account to pay bills and make other payments via the internet, by logging into Online Banking using your user name and password. By providing us with the names and account information of those persons or entities to whom you wish to direct payment, you authorize us to follow the payment instructions that we receive through the bill payment system and agree to the terms and conditions set forth below as well as in the disclosure.

Business Day Disclosure

Our branch business days and hours are Monday – Thursday, 9 a.m. to 5 p.m. PST, and Friday, 9 a.m. to 6 p.m. PST, excluding federal holidays. You can contact us by visiting one of our branches during business hours or by calling (714) 258‐4000 or (800) 462‐8328. Our Member Contact Center representatives are available Monday – Friday, 7 a.m. to 7 p.m. PST, and Saturday, 9 a.m. to 3 p.m. PST, excluding holidays. Online Banking is generally available for bill payment scheduling seven (7) days a week, 24 hours a day. However, depending on when a payment was or is scheduled, it is possible that no action will be taken by us on such requests until the next business day.

Account Access

The bill payment service accesses your checking account. No type of account other than a checking account may be used with the bill payment service. When we receive a payment instruction, you authorize us to charge your checking account and remit funds on your behalf. Funds will be withdrawn from your account and the payment initiated on the date you specify or the next business day. Please note funds are withdrawn after 9 p.m. PST on the withdrawal date selected. Withdrawal dates may be scheduled Sunday through Thursday, excluding holidays. You understand and agree that you are responsible for scheduling the payment with sufficient time for processing and handling. For this reason, it is recommended that all payments or transfers be scheduled to transact at least five business days before the actual due date. Due to circumstances beyond our control, particularly delays in handling and posting payments by companies or financial institutions, some transactions may take a few days longer. We cannot process payment requests without complete information. If you properly follow the procedures described herein, and we fail to send a payment on the instructed date or the next business day, we will bear responsibility for related late charges. In any other event, including but not limited to choosing a payment date less than five business days prior to the actual due date, the risk of incurring and the responsibility for paying any and all late charges or penalties shall be borne by you.

Limitations on Payments

Liability to Make All Payments Properly

We will incur no liability if we do not complete an electronic payment from your account, according to our Agreement concerning this service, in the correct amount and on time (subject to choosing a payment due date prior to the actual due date as discussed above) if in addition to the exceptions listed in the "Online Banking Disclosure and Agreement" any of the following circumstances exists:

1. Your account does not contain sufficient funds to complete the payment or transfer, or the transfer would exceed the credit limit of your overdraft account.
2. The intended recipient of the payment mishandles or delays a payment sent by us.
3. You have not provided us with the correct names or account information for those persons or entities to whom you wish to direct payment.
4. Circumstances beyond our control (such as, but not limited to, fire, flood or interference from an outside force) prevent the proper execution of the transaction and we have taken reasonable precautions to avoid those circumstances.
5. If the funds in your account are subject to legal process or other encumbrance restricting the payment or transfer.

Provided none of the foregoing five exceptions to our performance obligations are applicable, if we cause an incorrect amount of funds to be removed from your transaction account or cause funds from your transaction account to be directed to a person or entity which does not comply with your payment instructions, we shall be responsible for returning the improperly transferred funds to your transaction account and for directing to the proper recipient any previously misdirected payments or transfers.

THE FOREGOING SHALL CONSTITUTE SCHOOLSFIRST FEDERAL CREDIT UNION'S ENTIRE LIABILITY AND YOUR EXCLUSIVE REMEDY. IN NO EVENT SHALL SCHOOLSFIRST FEDERAL CREDIT UNION OR ANY THIRD PARTY WORKING WITH SCHOOLSFIRST FEDERAL CREDIT UNION BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES, INCLUDING LOST PROFITS (EVEN IF ADVISED OF THE POSSIBILITY THEREOF) ARISING IN ANY WAY OUT OF THE USE OF THE SERVICE.

Please see the MERCHANT OR PAYEE LIMITATIONS section for a list of payments that we do not support.

Password and Security

You agree not to give or make available your Online Banking password to any unauthorized individuals. If you believe your personal password has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, telephone us at (714) 258‐4000 or (800) 462‐8328, or write to us as soon as you can at the address shown when you select Contact Us from the main menu.

Your Liability for Unauthorized Transfers

If you believe your password or other means to access your account has been lost, stolen or discovered by an unauthorized person, or you believe that an electronic withdrawal has been made without your authorization and you notify us within two business days of your discovery, you can be liable for no more than $50. If you do not tell us within two business days after you learn of the loss or theft, and we can prove that we could have stopped the unauthorized use of your password or other means to access your account if you had told us, you could be liable for as much as $500. If your monthly statement contains transfers that you did not authorize, you must tell us at once. If you do not tell us within 60 days after the statement, eStatement or account history was made available to you, you may lose any amount transferred without your authorization after the 60 days if we can prove that we could have stopped someone from taking the money if had you had told us in time. If a good reason (such as a long trip or hospital stay) kept you from telling us, we may extend the time period.

Errors and Questions

In case of errors or questions about your transactions, you should notify SchoolsFirst FCU as soon as possible via one of the following methods:

1. Telephone us at (714) 258-4000 or (800) 462-8328 during Member Contact Center hours
2. Write us at SchoolsFirst FCU, P.O. Box 11547, Santa Ana, CA 92711-1547

If you think your statement is incorrect or if you need more information about a transaction listed on your statement, we must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared. In order to help you with your questions, we will need the following information:

1. Your name, account number and date of the transaction in question.
2. Describe the error or the transaction in question and why you believe it is an error or why you need more information.
3. The dollar amount of the suspected transaction.

If you tell us orally, we may require that you send your complaint or question in writing within 10 business days. We will tell you the results of our investigation 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 calendar days (90 calendar days if the transfer involved a new account) to investigate your complaint or question. If we decide to do this, we will provisionally credit your payment 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 use of the money during the time it takes us to complete the investigation. If we ask you to submit your complaint or question in writing and we do not receive it within 10 business days, we may not provisionally credit your account. An account is considered a new account for 30 days after the deposit is made. We will tell you the results within three business days after completing our investigation. If it is determined there was no error, we may revoke any provisional credit provided to you. You may ask for copies of the documents that we used in our investigation.

Charges

There are no monthly service charges to use Online Banking or the bill payment service.

Insufficient Funds

In using the bill payment service, you are requesting us to make payments for you from your designated SchoolsFirst FCU checking account. If we are unable to complete the transaction (for example, if there are not sufficient funds in your account to cover the transaction), our normal policies, procedures and processing charges for items drawn against insufficient or uncollected funds will apply. As a courtesy, we may notify you via email when a payment is not processed due to insufficient funds, but are under no obligation to do so.

Payment Modifications and Stop Payments

You may modify a payment up until the payment amount is debited from your checking account. Once the funds have been debited from your account to make a payment, we will be unable to stop the payment from being made.

Alterations and Amendments

We may change terms or amend this Agreement from time to time without notice as otherwise provided by law. You agree that an electronic mail message constitutes written notice. Any use of the bill payment service after the effective date of the change will constitute your agreement to such change(s). Further, we may, from time to time, revise or update the programs, services and/or related material and limit access to Online Banking or bill payment services, upon at least thirty (30) days prior written notice to you as required by law.

Communication of Urgent Matters

If you need to contact us about an urgent matter, including an unauthorized transaction via bill payment, please call us at (714) 258‐4000 or (800) 462‐8328. This will allow us to address you situation in the most timely manner. Please DO NOT email us with any matters that you consider to be urgent, including unauthorized transactions.

Merchant or Payee Limitation

We reserve the right to refuse to pay any person or entity to whom you may direct a payment. We are obligated to notify you promptly if we decide to refuse to pay a person or entity designated by you. This notification is not required if you attempt to pay tax or court related payments, which are prohibited under this Agreement.

We do not support payments made for the following reasons:

• Taxes (property, income, business, etc.).
• Legal payments (alimony, child support, judgments, etc.).
• Transactions with the Department of Motor Vehicles or similar agencies.
• Traffic Citations.

Method of Payment to Merchant

Payments are made either by electronic means or by a check mailed via U.S. Mail. We reserve the right to decide which method to use for each payment.

Information Authorization

Through your enrollment in the bill payment service, you agree that SchoolsFirst FCU reserves the right to request a review of your credit rating at our own expense through an authorized bureau. In addition, you agree that SchoolsFirst FCU reserves the right to obtain financial information regarding your account from a merchant or financial institution to resolve payment posting problems.

Disputes

In the event of a dispute regarding the bill payment service, you and SchoolsFirst FCU agree to resolve the dispute by looking to this Agreement. You agree that this Agreement is the complete and exclusive statement of the agreement between you and us which supersedes any proposal or prior agreement, oral or written, and any other communications between you and SchoolsFirst FCU relating to the subject matter of this agreement. If there is a conflict between what one of our employees says and the terms of this agreement, the terms of this Agreement shall control.

Assignment

You may not assign this agreement to any other party. We may assign this agreement, directly or indirectly, to any affiliated company. Further, either we or an affiliated company may also assign or delegate certain of our rights and responsibilities under this Agreement to independent contractors or other third parties.

No Waiver

SchoolsFirst FCU shall not be deemed to have waived any of our rights or remedies hereunder unless such waiver is in writing and signed by us. No delay or omission on our part in exercising any rights or remedies shall operate as a waiver of such rights or remedies or any rights or remedies. A waiver on any one occasion shall not be construed as a bar or waiver of any rights or remedies on future occasions.

Captions

The captions are for convenience only and shall not control or affect the meaning or construction of any of the provisions in this agreement.

Governing Law

Except to the extent of controlling federal law, this Agreement shall be governed by and construed in accordance with the laws of the state of California, without regard to its conflicts of laws provisions.

Exclusions of Warranties

THE SERVICE AND RELATED DOCUMENTATION ARE PROVIDED "AS IS" WITHOUT ANY WARRANTY OF ANY KIND EITHER EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.