When you use any of the services provided in the Online Banking Service or allow others to use them, you agree to be bound by the terms and conditions set forth in this Agreement.

When you enroll in the Online Banking Service you agree to receive all Online Banking Service Agreements and Disclosures and all Bill Payment Service Agreements and Disclosures including any Change in Term notices in electronic form.

Other Account Agreements In Relation to Online Banking

Any of your accounts you access through the Online Banking Service are also governed by the Agreements and Disclosures you received from Piedmont Federal when you initially opened those accounts. For example, your Piedmont Money Market Account would be governed by the Agreements and Disclosures provided to you when you opened that account. You should familiarize yourself with those documents again for limitations on transactions, fees or other restrictions that may affect your use of an account through the Online Banking Service.

Online Banking for Consumers and Businesses

The following items are required before you can use Piedmont Federal’s Online Banking Service.

1. You must use a Personal Computer or similar device that:
   • allows you to connect to the Internet via one of the following internet browsers:
     Microsoft® Internet Explorer, Version 7 or better
     Mozilla Firefox 3.0 or better
     
   Safari
   • an Internet Service Provider (ISP) such as AT&T, BellSouth, etc…
   • an Email account
2. For Consumers:
   You must enroll online for the Online Banking Service in your own name and provide the following information:
   • your social security number
   • your name and address
   • a Sign-On ID and password you create to access the Online Banking Service
     (your password must have at least 8 and no more than 15 characters and contain at least one letter, one number, one lower case character, one upper case character and one special character. Your password should not be associated with any commonly known personal information such as home address, date of birth, names of family members, etc…)
   • one of your active Piedmont Federal account numbers,
   • your telephone number,
   • your date of birth
3. For Business Customers:
   The individual who accepts this Agreement warrants that he/she is acting with full authority for the applying entity and that they are duly authorized to accept this Agreement on behalf of the applying entity.
   You must enroll online for the Online Banking Service in the Company’s name and provide the following information:
   
   • Company’s tax identification number
   • Company’s name and address
   • A Sign-On ID and password created by an Administrator designated by your organization to access the Online Banking Service
     (the password must have at least 8 and not more than 15 characters and contain at least one letter, one number, one lower case character, one upper case character and one special character)

Security

As an important partner with Piedmont Federal in preventing the unauthorized access to the Online Banking Service and your accounts, you agree to safeguard and protect the confidentiality of your account numbers, your Sign-On ID, your password and any other account related information. No Piedmont Federal employee has access to your Online Banking password nor will any Piedmont Federal employee ever ask you for your password. You should never share your password with someone else, once your password is compromised; it can be used with your Sign-On ID to gain access to your linked accounts. As an added security measure, your account will lock out after three unsuccessful sign-on attempts and any password changes will generate an email notification to the most current email address provided to Piedmont Federal.

Online Banking Services

The Online Banking Service is available 365 days a year 24 hours a day, except during the time the system is undergoing maintenance or upgrades. When this occurs, a message will be displayed on-line when you sign on to the Online Banking Service.

With Piedmont Federal’s Online Banking Service:

• You may access and view your linked accounts online,
• Review transactions on your linked accounts online,
• Transfer funds between your linked Piedmont Federal accounts,
• Consumers may view their mortgage loan balances, as well as make payments on their Piedmont Federal mortgage loan, Piedmont Home Equity Line of Credit, and/or Personal Reserve line of credit,
• Businesses may make payments on their line of credit,
• Request a stop payment on a check,
• Consumers may apply for a Piedmont Federal debit card,
• Send and receive electronic mail from Piedmont Federal,
• Download information from your accounts directly into financial management software such as Quicken

Joint Access

If one or more of your linked accounts are joint accounts, you authorize Piedmont Federal to act on the verbal, written, or electronic instructions of any owner of the account.

Business Customers

Piedmont Federal requires a duly authorized Account representative of a Business account to designate an Administrator or primary user (who must be an authorized signer on the account(s)) that is responsible for creating the additional users in the system. The administration users are able to give rights and entitlements to other users as they see fit. Users are not permitted to share logins. Each User must have their own unique login credentials.

We recommend using dual control to help protect the Company against misuse if there are additional authorized users. If your company utilizes Wire and ACH services, we suggest setting daily limits for each authorized user in addition to dual control.

The Company is responsible for reviewing user access periodically, and must take the appropriate action to remove access for users who are no longer authorized to perform online banking activity for the Company. The Bank will not be liable for any activity performed by unauthorized users.

Account Transfers

The transfer and crediting of funds depends on the type of account you are transferring to or from and Piedmont Federal’s daily cut-off times.

Transfers between your linked Piedmont Federal accounts will be processed on the same day you request a transfer as long as there are sufficient funds to cover the transfer amount and the transfer is initiated before 4:45 p.m. (EST). Transfers received after this cut-off time will not be posted until the next business day. To ensure funds are available for overnight posting to pay items, you must make sure your transfer is initiated before the 4:45 p.m. cut-off. Transfers initiated on weekends or holidays will be posted the following business day.

Limitations on Transfers

Piedmont Federal reserves the right to prohibit transfers between certain accounts such as time deposits or accounts where restrictions are imposed on withdrawals and/or you are not an owner of the account. Federal regulations limit the number of electronic funds transfers, telephone transfers, or checks per month that you may send to third parties from your Piedmont Federal Money Market account to six (6) per calendar month.

Bill Payment Service

Piedmont Federal offers an Online Bill Payment Service through which you can pay your bills online to a third party.

To activate the Bill Payment Service you must enroll in and be approved to use this service. You cannot use the Bill Payment Service until you have been notified of your approval.

Limitations on Bill Payment

For Consumers: The maximum amount of any payment through the Service is $10,000.00.
For Business Customers: The maximum amount of any payment through the Service is $20,000.00.

You cannot use the Service for payments of alimony, separate maintenance, child support or other court ordered payments, governmental charges of fees, taxes or settlement of securities purchases.

You must designate a Piedmont Federal checking account as your Bill Payment Account from which your payments will be debited (see the Joint Account div).

Terms and Conditions of the Consumer Bill Payment service provider may be found here.
Terms and Conditions of the Business Bill Payment service provider may be found here.

Bill Payment Service – Service Charges

There is no charge to use the Bill Payment feature of Piedmont Federal’s Online Banking Service. However, there may be charges that apply to your checking accounts, such as stop payment, or non-sufficient funds fees as provided for within the agreement for those products. Piedmont Federal may at its sole discretion change the fees charged for the Service, if we do we will notify you at least thirty (30) days prior to the effective date of the change.

Piedmont Federal does not have any responsibility to monitor payments made through Bill Pay. If you are a business, and an Authorized Representative of your business uses your funding account to pay bills that are not yours, you assume the entire risk of loss. You also agree to indemnify and hold Piedmont Federal and our directors, officers, employees and agents harmless from all loss, liability, claims, demands, judgments, and expenses (including attorney fees) arising from such use.

Email In the event you need to send an electronic mail message to Piedmont Federal, you may use the Mail Box-New Message button provided in the Online Banking Service to communicate with us. Piedmont Federal will be deemed to have received your message by the next business day. Piedmont Federal must have a reasonable time period to act upon your email. Email is not secure unless transmitted under a secure (https:) connection and Piedmont Federal cannot and does not warrant that email transmitted to or from us outside of a secure (https:) connection, will not be monitored or read by others on the Internet. You should not use email to transmit any personal or confidential information to us such as your account number or social security number except as provided for in a secure (https:) connection.

Caution You should not rely solely on email if you need to communicate with Piedmont Federal immediately – for example to report the theft of your Password or an unauthorized transaction from one or your account or to stop a payment that is scheduled to occur.

When you contact Piedmont Federal by electronic mail, you agree that we may respond to you by email with regard to any matter related to the Service, including responding to any claim of unauthorized electronic funds transfers that you make. Any such email sent to you by Piedmont Federal will be considered received by you with three (3) business days of the date sent by us, regardless of whether or not you sign on to the Service.

Online Banking Service – Service Charges

Piedmont Federal does not charge a fee for accessing your linked accounts through Piedmont’s Online Banking Service. However, there may be charges that apply to your checking accounts, such as stop payment, or non-sufficient funds fees as provided for within the agreement for those products. Piedmont Federal may at its sole discretion change the fees charged for the Service, if we do we will notify you at least thirty (30) days prior to the effective date of the change.

Canceling Online Banking Services

If you decide to terminate your Online Banking Service, you should cancel any scheduled payments you have in the Bill Payment Service prior to termination.

Change in Terms

Piedmont Federal reserves the right to change the terms and conditions of the Agreement and the Online Banking Service at any time and will deliver a notice to you at least 30 days before the effective date of any change in term or condition disclosed in the Agreement; if the change would result in increased fees or changes, increased liabilities for you, fewer types of available electronic fund transfers or stricter limitations on the frequency or dollar amount of transfers, unless prior notice is excused by law.

By continuing to use the Online Banking Service after the effective date of any change in the terms or conditions of this Agreement you indicate your acceptance of the changes.

Additional Service

Piedmont Federal reserves the right to add, delete, or modify any feature of the Online Banking Service at any time.

Termination

You are responsible for complying with all the terms of this Agreement and with the terms of the agreements governing your deposit accounts which you access using Piedmont Federal’s Online Banking Service. Piedmont Federal can terminate your online banking privileges (including the Bill Payment Service) under this Agreement without notice to you if you do not comply with the agreement governing your deposit or loan accounts or if your accounts are not maintained in good standing.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina and applicable federal law.

Electronic Funds Transfer Disclosure

Piedmont Federal is opened to assist you with your financial needs Monday-Thursday from 9:00 a.m. to 5:00 p.m. (EST) and Friday from 9:00 a.m. to 6:00 p.m. (EST). You may telephone Piedmont Federal during that time regarding any problems or questions you may have with the Service. You should telephone Piedmont immediately if your account statement shows an unauthorized transfer or you suspect the unauthorized use of your password. You can call Piedmont Federal at 866.737.2265.

1. Consumer Liability

   Notify Piedmont Federal AT ONCE if you believe an unauthorized transaction appears on your statement or you suspect an unauthorized person has discovered your Online Banking Service Password. Telephoning is the best way of keeping your possible losses to a minimum. You could lose all the money in your account (plus your maximum overdraft line of credit). If you tell Piedmont within two (2) business days, you can lose no more than $50 if someone used your Password or account without your permission.

   If you DO NOT tell Piedmont Federal within two (2) business days after you learn that your Password has become known by an unauthorized person and it can be proven that Piedmont could have stopped someone from using your Password without your permission if you had told us, you could be liable for as much as $500.

   Also, if your periodic statement shows transfers that you did not make, tell us at once. If you do not tell us within sixty (60) days after the periodic statement was mailed to you, you may not get back any money you lost after the sixty (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 hospital stay) kept you from notifying Piedmont Federal, we may extend the time.

2. Contact in the Event of Unauthorized Transfer

   If you believe your password has become known by an unauthorized person or that someone has transferred money or made payments without your permission:

   Call Piedmont Federal at: 866.737.2265 or
   Write us at
   Piedmont Federal
   Online Banking Support
   P.O. Box 215
   Winston-Salem, NC 27102
   
   

3. Business Days
   

   Piedmont Federal’s business days are Monday through Friday. Designated legal banking holidays are not business days.

4. Transfer Types
   1. You may use your Sign-On ID and password to access the Online Banking Services to transfer funds from and to your:
      • Checking account(s)
      • Savings account(s) - not certificates of deposit
      • Equity Line account
      • Personal Reserve loan account
      • Piedmont Federal mortgage loan
      • Piedmont Federal home equity line of credit
   2. Limitations, you may make any number of transfers through the Online Banking Service; subject to the transaction limitations disclosed in this agreement for savings and money market accounts. The maximum dollar limit on any payment or transfer is $9,999.00.
5. Fees
   

   There is no fee charged for the Online Bill Payment Service. However, Piedmont Federal may at its sole discretion change the fees charged for the Online Bill Payment Service, if we do we will notify you at least thirty (30) days prior to the effective date of the change. Normal bank charges for your Deposit Accounts will apply, as disclosed in the Piedmont Federal Fee Schedule document provided to you at the time you opened your account.

6. Confidentiality
   

   Piedmont Federal will disclose information to third parties about your accounts and the payments or transfers you make:

   1. Where it is necessary for verifying or completing payments or transfers, or resolving a problem related to a payment or transfer;

   2. In order to verify the existence and the condition of your account for a third party, such as a credit bureau or merchant;

   3. In order to comply with government agency or court orders;

   4. If you give Piedmont Federal written permission; or as otherwise permitted in Piedmont Federal’s Deposit Agreement by law, or as required by government regulators.

7. Documentation

   Online banking transactions that were successfully received and processed by Piedmont Federal will appear in your account transaction history and on your periodic statement for the accounts to and from which transfers or payments are made.

8. Preauthorized Payments
   

   1. Right to Stop Payment: If you have told Piedmont Federal in advance to make regular payments out of your account, you can stop payment of any of these payments by calling 866.737.2265 or write to Piedmont Federal, P.O. Box 215, Winston-Salem, NC 27102. Your request must be received at least three (3) business days before the payment is scheduled to be made. If you call, we will also ask you to put your request in writing and send it to us within fourteen (14) days after you call. There is a service charge for placing a stop payment order with Piedmont Federal. Please refer to Piedmont Federal Fee Schedule document for current charges.

   2. Notice of Varying Amounts: If these regular payments may vary in amount, the person or party you are going to pay will tell you ten (10) days before each payment when it will be made and how much it will be.

   3. Piedmont Federal’s Liability for Failure to Stop Payment: Piedmont Federal will be Liable for any damages caused by Piedmont’s failure to honor your request for stop payment, provided written notice has been received from you within the time limits stated above, including the exact amount of the payment.

9. Liability for Failure to Make Payments
   

   If Piedmont Federal does not make a transfer on time or in the correct amount according to your instructions given in accordance with this Agreement, we will be liable for your losses or damages. However, there are some exceptions. Piedmont Federal will not be liable for:

   1. Through no fault of our, your account does not contain enough money to make the transfer, or the account has been closed,

   2. The transfer would exceed the credit limit on your overdraft line of credit or would exceed your savings account balance, or the account has been closed,

   3. You have not properly followed the transfer scheduling instructions contained in this Agreement,

   4. Your computer, your Internet Service Provider (ISP), or Piedmont Federal’s computer systems were not working properly or were temporarily unavailable, and this problem should have been apparent to you when you attempted the transfer,

   5. Circumstances beyond Piedmont Federal’s control prevented the transfer, despite reasonable precautions that Piedmont Federal has taken. Such circumstances include (but are not limited to) telecommunications outages, postal strikes, delays caused by payees, fires, or floods,

   6. Piedmont Federal placing a hold on funds in your account in accordance with your knowledge or reasonable business procedures,

   7. Piedmont Federal received incomplete or inaccurate information from you or a third party involving the account of transfer,

   8. A court order such as a garnishment or other legal process prevents us from making a Transfer,

   9. Piedmont Federal has a reasonable basis for believing that an unauthorized use of your password or designate account has occurred or may be occurring, or if you default under this Agreement, the Deposit Agreement, a credit agreement , or any other agreement with us, or if we or you terminate this Agreement.

In no event shall Piedmont Federal be liable for damages in excess of your actual loss due to failure to complete a transfer, and Piedmont Federal will not be liable for any incidental or consequential damages. There may be other exceptions stated elsewhere in our agreement with you.

If any of the circumstances listed in subparagraphs five (5) or seven (7) above shall occur, Piedmont Federal will assist you with reasonable efforts in taking the appropriate corrective actions to reprocess the transactions that may not have been completed or to correct incorrect transactions that have been processed.

Error Resolution Notice

In Case of Errors or Questions About Your Electronic Transfers – Telephone Piedmont Federal at 866.737.2265 or Write to Piedmont Federal, Online Banking Support, P.O. Box 215, Winston-Salem, NC 27102, or email Piedmont Federal at customerservice@piedmontfederal.com as soon as you can if you think your statement is incorrect or if you need more information about a transfer listed on the statement. Piedmont Federal must hear from you no later than sixty (60) days after the first statement was sent to you on which the problem or error appeared.

1. You will need to provide your name, account number, and a telephone number where you can contacted during business hours.

2. You will need to describe the error or the transfer you are questioning, and explain as clearly as possible why you believe an error has occurred or why you need more information.

3. You will also need to tell the dollar amount in question. If this is communicated verbally, we may require that you send your concern or question in writing within ten (10) business days.

Piedmont Federal will then determine whether an error occurred within ten (10) business days after we hear from you and will correct any error promptly. However, if more time is needed Piedmont Federal may take up to forty-five (45) days to investigate your concern or question. If extended time is required Piedmont Federal will credit your account within ten (10) business days for the amount in question so that you will have the use of the money during the time it takes to complete the investigation. If you are asked to put your concern or question in writing and it is not received within ten (10) business days, your account may not be credited.

For errors involving new accounts, point-of-sale, or foreign-initiated transactions, Piedmont Federal may take up to ninety (90) days to investigate your concern or question and may take up to twenty (20) business days to credit your account for the amount in question.

Piedmont Federal will inform you of the results of the investigation within three (3) business days upon completion. If it is determined that there was no error, you will receive a written explanation. You may request copies of the documents that were used in the investigation.

You agree that Piedmont Federal may respond to you by electronic mail with regard to any claim of unauthorized electronic funds transfer related to the Service. Any such electronic mail sent to you by Piedmont Federal shall be considered as if it were sent by U.S. Mail; postage paid, and shall be deemed to be received within three (3) days of the date sent by Piedmont Federal, regardless of whether or not you log on to the Service within that time frame.

Other Problems

If you believe an error other than an electronic funds transfer problem has occurred, please call the number listed below for information about how to handle the problem. If you have a question involving general information about your deposit accounts, such as balance information, transactions other than those conducted through the Service, questions about interest earned, or to stop payments on personal checks, or if you believe an error other than an electronic funds transfer problem has occurred concerning a deposit account, please call 866.737.2265. You can also refer to your monthly account statement for instructions regarding how to resolve your questions or concerns.

Fair and Accurate Credit Transaction Act Sharing and Reporting Credit Information On You

Your credit report provides creditors with a record of how financially responsible you are. Pay your creditors on time to make sure negative information is not reported on your accounts. Maintaining a clean credit report is an essential part of your financial well being; lenders, insurers, landlords and even potential employers may review the information in your credit report.

When you enter into a credit agreement with Piedmont Federal, such as a mortgage loan or equity line of credit; Piedmont Federal will report information about your account to credit reporting bureaus.

Late payments, missed payments, or other defaults on your account may also be reflected in your credit report.

Protection Against Identity Theft

Under the law you are able to request a free copy of your credit report from each of the three major credit bureaus (Equifax, Trans Union, and Experian).

When viewing your credit report you should make sure the credit being reported in your name is credit you are obligated for. If you find items on your credit report that you know you did not contract for, you should place a fraud alert on your credit report. You may place a fraud alert by calling any one of the credit bureaus listed above.