BELMONT SAVINGS BANK VISA® CHECK CARD DISCLOSURE STATEMENT & CARDHOLDER AGREEMENT

This document includes a General Disclosure Statement and a Cardholder Agreement covering your Belmont Savings Bank Visa Check Card.

In this document we shall refer to the Belmont Savings Bank as "we" and "us" where appropriate. We shall refer to the holder of our Visa Check Card as "you". All of the terms and conditions set forth in this document are contractual in nature and will bind you and us with respect to your use of the card.

A. GENERAL DISCLOSURE STATEMENT

  1. Use of Card. Your card cannot be used until it is activated. Activation is a two-step process. Your first step is to telephone 1-800-456-8486. The second step is to come to any Belmont Savings Bank location and choose a Personal Identification Number (PIN). The card and PIN are provided for your use and you agree to retain them and not permit other persons to learn your PIN. Your PIN should never be written on the card or kept with the card. Protect yourself: never give your PIN to anyone, not even a bank employee.

    In order to keep your card activated, you must maintain a balance in your designated checking account. Such accounts are referred to as "designated accounts". You may access your designated accounts at any Belmont Savings Bank ATM, Cirrus, Exchange, NYCE or TX Terminal. You may also utilize your card to purchase goods and/or services through point-of-sale transactions at places that have agreed to accept your card. In addition to the purchase of goods and/or services, you may use your card to:

    1. make withdrawals from your designated accounts;
    2. make deposits to your designated accounts (only at Belmont Savings Bank ATMs and TX Centers);
    3. make transfers between your designated accounts;
    4. obtain loans/transfers from your Belmont Savings Bank Line of Credit/Overdraft Protection Account, if any, by making withdrawals from your designated checking, or NOW Account in excess of your collected balance;
    5. make payments on any loan account at Belmont Savings Bank (only through a Belmont Savings Bank ATM);
    6. make purchases at any Visa Check Card designated locations. Use of the card at these locations constitutes a withdrawal from your designated checking account and should be recorded as such in your register;
    7. conduct other transactions as we add services and fea- tures. We will notify you when such services are available.

    Some of these services may not be available at all terminals.

  2. Consumer Liability. Tell us AT ONCE if you believe your card or PIN 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 line of credit). You can lose no more than $50.00 if you call to give us notice that your card/PIN has been lost or stolen or if someone used your card/PIN without your permission. Once you give us notice of the loss or theft of your card or PIN, you will not be liable for any unauthorized transactions that occur thereafter.

    Additional Limit on Liability for Visa Check Cards.

    Unless you have been grossly negligent or have engaged in fraud, you will not be liable for any unauthorized transactions using your lost or stolen Visa Check Card. This additional limit on liability does not apply to ATM transactions, to transactions using your PIN which are not processed by Visa, or to commercial business Visa Check Cards.

  3. Contact in Event of Unauthorized Transfer. If you believe your card or PIN has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, call:
    1-888-762-4100
    between 8:30 a.m. and 4:30 p.m.
    Monday through Friday (excluding holidays)
    or write:
    Belmont Savings Bank
    DDA/Electronic Banking Department
    P.O. Box 146
    Belmont, MA 02478

  4. Business Days. For purposes of these disclosures, our business days are Monday through Friday, Holidays are not included.

  5. Limitations on Frequency or Dollar Amounts of Transfers. Except as otherwise provided herein, you may use your card to withdraw up to $505.00 in cash, $2,500.00 in Visa Check Card transactions, for an aggregate of $3,005.00 per day, or daily limits set by us. The withdrawal limit described above represents the total amount which you can withdraw with your card on any one day You can make up to ten transactions per day. The ten transactions can consist of ten withdrawals, ten Visa Check Card transactions or a combination of the two. (If your Visa Check Card is attached to a money market deposit account, you may make only six transactions per month). To maintain the security of the system, the cash withdrawal limit is reduced in some circumstances. You do have the right to limit the daily amount to $50.00 per day. Contact us if you wish to do so. Deposits and payments made at any Belmont Savings Bank ATM after 2:00 P.M. may not be posted to your account until the next Business Day. There may be a delay of up to two Business Days in the posting of deposits or payments made at any ATM. All deposits, payments and other transactions with your card are subject to proof and verification. Nor may the card be used to transfer money to or from accounts which you do not have or which are not designated accounts. We shall not be required to complete any such transactions, but, if we do, you agree to pay us any excess amount for any improperly withdrawn or transferred amount immediately upon request from us. We may impose additional restrictions or limitations on the use of your card when we believe they are necessary to safeguard the card against misuse or when you have failed to follow proper procedures for accessing your designated accounts.

  6. Confidentiality. In order that your privacy be protected, we will not disclose any information about you or your account to any person, organization or agency except:

    1. for certain disclosures necessary for the completion of a transfer;
    2. for verification of the condition and existence of your account for a credit bureau or merchant;
    3. to persons authorized by law in the course of their official duties;
    4. to our employees, auditors, service providers, attorneys or collection agents in the course of their duties;
    5. pursuant to a court order or lawful subpoena;
    6. to a consumer reporting agency as defined in Chapter 93 of the Massachusetts General Laws; or
    7. by your written authorization which authorization shall automatically expire after 45 days of our receipt of your authorization.

    If an unauthorized disclosure has been made, we must inform you of the disclosure within 3 days after we have discovered that the unauthorized disclosure occurred.

  7. In Case of Errors or Questions About Your Electronic Transfers. Telephone us at 1-888-762-4100 or write us at Belmont Savings Bank, DDA/Electronic Banking Department, P.O. Box 146, Belmont, MA 02478 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 notify us orally, we have the right to require you to send us your complaint or question in writing within 10 business days, following the date you notify us. We will determine whether an error occurred within 10 business days (5 business days for Visa Check Card point-of-sale transactions) after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days to investigate your complaint or question. If we decide, to do this, we will credit your account within 10 business days (5 business days for Visa Check Card point-of-sale transactions) 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.

    For errors involving new accounts, point-of-sale, or foreign-initiated transactions, we may take up to 90 days to investigate your complaint or question. For new accounts, we may take up to 20 business days to credit your account for the amount you think is in error.

    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.

  8. Documentation of Transfers.

    1. Terminal Transfers. You will get a receipt at the time you make any transfer to or from your account using any Belmont Savings Bank ATM, Cirrus, Exchange, NYCE or TX Terminals or any point-of-sale terminal.
    2. Periodic Statements. You will receive a monthly statement for your designated accounts (unless there are no transfers in a particular month). In any case, you will get a statement at least quarterly.

  9. Exchange Rate for Currency Conversion. If you incur a transaction in a foreign currency, the transaction will be converted by Visa into a U.S dollar amount. Visa will use the procedures set forth in its Operating Regulations in effect at the time the transaction is processed. The exchange rate used for currency conversion is either (1) a rate selected by Visa from the range of rates available in wholesale currency markets for the applicable central processing date, which may vary from the rate Visa itself receives, or (2) the government mandated rate in effect for the applicable central processing date.

  10. Electronic Fund Transfers Initiated by Third Parties. You may authorize a third party to initiate electronic fund transfers between your account and the third party's account. These transfers to make or receive payments may be one-time occurrences or may recur as directed by you. These transfers may use the Automated Clearinghouse (ACH) or other payments network. Your authorization to the third party to make these transfers can occur in a number of ways. In some cases, your authorization can occur when the merchant posts a sign informing you of their policy. In all cases, the transaction will require you to provide the third party with your account number and bank information. This information can be found on your check as well as on a deposit or withdrawal slip. Thus, you should only provide your bank and account information (whether over the phone, the Internet, or via some other method) to trusted third parties whom you have authorized to initiate these electronic fund transfers.

    Examples of these transfers include, but are not limited to:

  11. Protected Consumer Use of Electronic Fund Transfer Services. Chapter 167B of the Massachusetts General Laws and Federal Regulation E (Electronic Funds Transfer Act) was enacted to provide a means for financial institutions, businesses and consumers to conduct their business relations more conveniently. Transferring funds electronically will supplement the use of checks, credit and cash and will not replace these present methods of doing business. As a consumer, you should be aware of your rights if you choose to utilize this system.

    1. Prohibition of Compulsory Use. No person may:

      1. Require you to use a preauthorized electronic fund transfer as a condition for the extension of credit unless the credit is being extended in connection with BSB Overdraft Protection to maintain a specified minimum balance in your account.
      2. Require you either to accept a transfer service or to establish an account which is accessed electronically as a condition of employment or receipt of governmental benefit.
      3. Require you to pay electronically for the purchase of goods or services. If your account is to be credited by a preauthorized transfer, you may choose the financial institution to which the transfer may be made, if the institution is technically capable of receiving such transfer.
    2. Waiver of Rights. No writing or agreement signed by you can waive the rights conferred to you by chapter 167B of the Massachusetts General Laws unless you decide to waive these rights in settlement of a dispute or action.
    3. Discounts Prohibited. A retail business or store which contains an electronic branch (e.g. Belmont Savings Bank ATM, Cirrus, Exchange, Maestro, NYCE or TX terminal) may not offer a discount to you to encourage purchases by electronic fund transfer rather than by cash, check or charge.
    4. Refunds. If it is the policy of a retail business or store to give cash refunds in return for an item purchased by cash, then this policy must also cover refunds for items purchased by electronic fund transfer, unless it is clearly and conspicuously disclosed at the time the transaction is consummated, that no cash or credit refunds are given for payments made by electronic fund transfers.
    5. Suspension of Obligations. If a person agrees to accept payment by means of an electronic fund transfer and the system malfunctions, preventing such a transfer, then your obligation is suspended until the transfer can be completed, unless that person, in writing, demands payment by other means.
    6. Prohibited Means of Identification. Your social security number cannot be used as the primary identification number, although it can be used as a secondary aid to identify you.
    7. Criminal Liability. Procuring or using a card, code or other means of electronic access to an account with the intent to defraud is a basis for criminal liability.

  12. Our Liability if We Fail to Make Certain Transfers. If we do not complete a transfer to or from your account on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages. However, there are some exceptions. We will not be liable, for instance:

    1. If through no fault of ours, you do not have enough money in your account to make the transfer.
    2. If the transfer would go over the credit limit on your overdraft line.
    3. If the automated teller machine where you are making the transfer does not have enough cash.
    4. If the terminal or system was not working properly and you knew about the breakdown when you started the transfer.
    5. If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken.
    6. If the funds in your account are subject to legal process or other encumbrance restricting such transfers.
    7. There may be other exceptions stated in our agreement with you.

  13. ATM Fees. When you use an ATM not owned by us, you may be charged a fee by the ATM operator or any network used to complete your transfer. You may be charged a fee for a balance inquiry even if you do not complete a fund transfer.

  14. Your Ability to Stop Payment. UNLESS OTHERWISE PROVIDED IN THIS AGREEMENT, YOU (THE CONSUMER) MAY NOT STOP PAYMENT OF ELECTRONIC FUND TRANSFERS, THEREFORE YOU SHOULD NOT EMPLOY ELECTRONIC ACCESS FOR PURCHASES OR SERVICES UNLESS YOU ARE SATISFIED THAT YOU WILL NOT NEED TO STOP PAYMENT.

    The initiation by you of certain electronic fund transfers from your account, including point-of-sale transactions, will, except as otherwise provided in this disclosure, effectively eliminate your ability to stop payment of the transfer.

  15. Fees and Service Charges. See our Schedule of Fees and Charges which is separately published and which has been furnished to you for any fees and service charges associated with your Visa Check Card. If your card is lost or stolen and you request a replacement card, we will charge you a replacement fee.

  16. Prima Facie Proof of a Transaction. Any documentation provided to you which indicates that an electronic fund transfer was made to another person shall be admissible as evidence of such transfer and shall constitute prima facie proof that such transfer was made.

  17. Terminating This Cardholder Agreement. You can terminate the Cardholder Agreement at any time by notifying us in writing and no longer using your card and PIN. We can terminate the Cardholder Agreement at any time without notice to you. If the Cardholder Agreement is terminated, we shall no longer be obligated to complete transactions involving your use of the card. Termination of the Cardholder Agreement will not affect your obligations under the Cardholder Agreement for transactions completed with your card and PIN, even if those transactions are completed after the termination date. To terminate the Cardholder Agreement, please write to us at Belmont Savings Bank, DDA/Electronic Banking Department, P.O. Box 146, Belmont Massachusetts 02478 and enclose your card(s) after having cut it/them in half.

B. CARDHOLDER AGREEMENT

  1. Use of Card. You agree to use your card only as described in the General Disclosure Statement. Your card is not transferable and remains our property. You agree to return the card to us immediately upon our demand. For your own protection, the Belmont Savings Bank ATMs, Cirrus, Exchange, NYCE and TX Terminals are programmed to retain cards in certain circumstances.

    Advisory against illegal use - You agree not to use your card(s) for illegal gambling or other illegal purpose. Display of a payment card logo by, for example, an online merchant does not necessarily mean that transactions are lawful in all jurisdictions in which the cardholder may be located.

  2. Authorization. You authorize us to charge your designated accounts for money disbursed or payments made and to credit your designated accounts for deposits received in connection with transactions involving the use of your card.

  3. Maintenance of Accounts. As long as this Cardholder Agreement remains in effect, you agree to maintain your designated checking account. Should all of your designated accounts be closed, your card privileges will be cancelled and we may retain your card if you attempt to use it.

    Your designated account(s) shall continue to be governed by your other agreements with us concerning those accounts and by our Rules and Regulations concerning those accounts to the extent that such agreements are not inconsistent with this Cardholder Agreement.

  4. Replacement of Lost or Stolen Cards. If your card is lost or stolen and you ask us to issue you a replacement card, you agree to pay a replacement fee for such replacement card and you agree that we may debit your account for this amount. See our Schedule of Fees and Charges for any related fees.

  5. Amendments to Cardholder Agreement. We may amend this Cardholder Agreement at any time. We will give you written notice at least 30 days before the amendment becomes effective if the amendment will result in increased costs or liability to you or stricter limitations on the transfer you may make. If, however, an immediate change in the Cardholder Agreement is necessary for security reasons, we may amend the Cardholder Agreement without such prior notice.

  6. Notices. Notices sent by us shall be effective when mailed to you at your last address that appears on our records. Except as otherwise provided in this Cardholder Agreement or by applicable law, notices from you to us must be in writing and will be effective when received by us.

  7. Collection Expenses. If we have to sue you or take other actions to collect amounts you owe us under this Cardholder Agreement, you will pay our reasonable expenses, including attorneys' fees, to the extent permitted by applicable law.

  8. Joint Accounts. If your designated account(s) is/are a joint account, each account holder may exercise any and all rights under this Cardholder Agreement individually and shall be jointly and severally liable for the obligations incurred by any such exercise. Each account holder may use the card(s), may authorize others to use the card(s) may agree to any amendment to or termination of this Cardholder Agreement, may close any designated account and in the event that any such action is undertaken, such action shall be binding upon each joint accountholder.

  9. Terms Set Forth in General Disclosure Statement. All of the terms set forth in the General Disclosure Statement in Part A of this document shall be binding upon you and us as is specifically set forth in this Cardholder Agreement.

  10. Governing Law; Conflict with Applicable Law. The terms and provisions set forth herein will be constructed in accordance with the laws of the United States of America and the Commonwealth of Massachusetts. In the event of any conflict between these terms and provisions and any applicable law or regulation, these terms and provisions shall be deemed modified to the extent, but only to the extent, required to comply with such law or regulation.

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