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TERMS AND CONDITIONS OF YOUR DEPOSIT ACCOUNTS

Revised 1/1/08

Terms and Conditions
Regulation DD Truth in Savings Disclosure
Regulation CC – Funds Availability Policy
Regulation E - Electronic Banking Network Disclosures
Overdraft Privileges Policy
Privacy Notice
Amendments

This document contains the account agreement, terms, and conditions for your Lake City Bank accounts. It also contains regulatory requirements that apply to both You and Lake City Bank. These are rules and regulations which all banks must follow in specific circumstances. This booklet describes your rights and responsibilities under these regulations. It notes the features and requirements of Lake City Bank accounts. It is important that you read and understand this information. Printed information given to you at account opening may modify or supersede statements in this booklet and become a part of your account agreement with Lake City Bank. You will also receive a Personal Accounts and Services brochure that will apply to your account at the time the account is opened which will be updated periodically to notify you of changes in account features and applicable fees.

By signing a signature card, you are applying for any or all of the deposit accounts offered by Lake City Bank. The Bank reserves the right to approve the application for a deposit account at its discretion. By signing the signature card, you agree to the terms and conditions currently in existence and as hereafter amended. You also are authorizing Lake City Bank to obtain and update credit reports on you.

This document is designed to make your relationship with Lake City Bank easy to understand. If you have questions relating to this information, please stop by one of our convenient banking centers, call our One-Call Center toll free at 888-522-2265 or e-mail us at lcbdirect@lakecitybank.com.IMPORTANT – Do not include your account number if contacting us via e-mail since e-mail is not a secure form of communication.

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TERMS AND CONDITIONS OF YOUR DEPOSIT ACCOUNTS

Lake City Bank offers deposit accounts subject to the terms and conditions set forth in this agreement. The depositor agrees to all the terms and conditions of this agreement by opening or using a deposit account. In this agreement "you" or "your" means each person who has opened a deposit account with Lake City Bank or is an authorized user of an account with Lake City Bank. "We" and "us" and "our" mean Lake City Bank, also referred to as the Bank. This agreement will be binding on Lake City Bank only in the event you open a deposit account. The first section of this document sets out specific terms and conditions that apply to all Lake City Bank deposit accounts. The remaining disclosure sections identify terms and conditions for each account you have opened. All accounts may not be available at all Lake City Bank locations.

Governing Laws

Depository accounts are governed by the laws of the State of Indiana, except where Federal laws and regulations apply. Accounts are subject to all applicable rules and customs of any clearing house or other association involved in account transactions. Changes in these laws and regulations may modify the terms and conditions of your account. While we are not required to notify you of these changes, we will try to give you adequate notice of such changes prior to their effective date.

Definitions

Check--"Check" means any paper document signed by the depositor, used to transfer funds from a checking account, whether or not the account bears interest.

A “remotely created check” is a check that is not created by the paying bank and that does not bear a signature applied, or purported to be applied, by the person on whose account the check is drawn.

Item--"Item" means any method used to transfer funds to or from a customer's account.

Deposit--"Deposit" means a credit, or addition, to a customer's account by any method.

Withdrawal--"Withdrawal" means a transfer of funds out of an account by any means accepted by the Bank, whether by check or other written authorization, automated teller machine, other electronic means or by telephone request.

Maintenance Fee or Transaction Fee--"Maintenance Fee or Transaction Fee" means a charge the Bank will assess against your account if a qualifying balance is not maintained throughout a statement cycle or if transactions exceed the stated amount as described in the Disclosure section of this agreement and in the current Personal Accounts and Services brochure.

Statement Cycle--"Statement Cycle" means the time period for which statements for your account will be furnished as described in the Disclosure section of this agreement.

Collected Balance--"Collected Balance" refers to cash deposited to an account, plus deposited checks that have been presented to the drawee for payment and for which provisional credit has been given.

Annual Percentage Yield--"Annual Percentage Yield (APY)" means a percentage rate reflecting the total amount of interest paid on an account based on the interest rate and the frequency of compounding for a 365 day period (366 day period for a leap year) and calculated on the collected balance (principal) on deposit each day.

Interest Rate--"Interest Rate" means the annual rate of interest paid on an account which does not reflect compounding.

Business Day--"Business Day" means every day the Bank is open to transact business except Saturday, Sunday, or Federal holidays. The current business day ends at the earlier time of closing (when closed before 2:00 p.m.); 2:00 p.m., or later, as posted in each individual location.

General Terms and Conditions

Deposits

Because checks and other non-cash items deposited must be presented for payment to the bank on which they are drawn, we cannot give immediate credit for these items. All non-cash items deposited, including checks drawn on Lake City Bank will be given provisional credit until the item is finally collected. To determine that an item has been collected, we have the right to wait what we believe is a reasonable time after the item has been deposited before you may withdraw the funds. Therefore, we may at anytime refuse to permit withdrawals from an account balance which is provisional, even though our general practice may be to the contrary. If an item deposited to an account is not paid according to its terms, the provisional credit to the account will be reversed. Further collection of the item is your responsibility. We may debit your account at anytime and notwithstanding the running of the drawee bank’s midnight deadline.

Your account will be charged for any check or other deposited item that is returned or is not collectable for any reason. You will not receive notice before a charge is made. You will be notified after your account has been charged.

We may require all items presented for deposit, including items payable to bearer or to cash, to be endorsed in our presence by the person depositing them. We may, at our sole discretion, supply any missing endorsements on items submitted for deposit.

We reserve the right for any reason to refuse a deposit or to return all or any part thereof.

If you receive direct deposits for social security or similar benefits from any organization or the government, we reserve the right to reverse deposits made after the death of the beneficiary and return the funds to the sending organization.

The depositor will provide all of the warranties and indemnities of the reconverting bank, as described in Regulation CC, Subpart D, for all substitute checks deposited without a written agreement with Lake City Bank to do so. Exceptions would be made for the deposit of returned substitute checks.

Lake City Bank is not liable for deposits made in an outside depository (i.e., night drop box) until the deposit is actually received and available for processing by a Bank representative.

Night Deposits

Lake City Bank is not liable for deposits made in an outside depository (i.e., night drop box) until the deposit is actually received and available for processing by a Bank representative.

Mailed Deposits

Lake City Bank is not responsible for deposits mailed to the Bank or one of its locations until actually received and available for processing. Mailed deposits will be processed on the business day received.

Automated Teller Machine (ATM) Deposits

Lake City Bank is not liable for deposits made at ATMs until the deposit is actually received and available for processing by a Bank representative. Deposits made at an off-site Automated Teller Machine (i.e. one that is more than 50 feet from the Bank's premises) are considered received on the day they are removed from the ATM.

For determining the availability of your deposit made at an on-site ATM (one less than 50 feet from a Lake City Bank location), every day is a business day except Saturday, Sunday and federal holidays. The current business day ends at 12:00 noon or later as posted at each Automated Teller Machine location. However, if a deposit is made after the posted business day ends, or on a day when the Bank is not open, that deposit will be considered to be made on the next business day.

Withdrawals

You must keep sufficient collected funds in your account to pay the withdrawals you authorize. We may refuse to honor any check or withdrawal request if there are insufficient collected funds in the account any time throughout the banking day and assess a charge against your account. Should we honor a check or withdrawal against insufficient collected funds, the resulting account deficit will be immediately due, and a charge will be assessed against your account. This charge is found in the current Personal Accounts and Services.

We reserve the right to refuse payment of any item that cannot be microfilmed or imaged.

We reserve the right to require that you make your withdrawals at the Bank location where you opened the account and/or your account is maintained. Unless we decide to enforce that right, you may make withdrawals at any location during regular business hours by presenting proper identification and signing a withdrawal slip.

For electronic withdrawals, refer to Regulation E – Electronic Banking Network Disclosures in this Agreement.

Notice of Withdrawal

A non-interest bearing checking account is subject to withdrawal on demand by the presentment of a check drawn on the account. For all interest-bearing accounts, Lake City Bank reserves the right to require a minimum of seven (7) days notice before withdrawal, as required by Federal Law. Any payment made by the Bank without requiring notice as herein provided shall not be deemed a waiver of the right to require such notice as to any future payment. No notice of withdrawal shall be deemed sufficiently given hereunder until it is received by the Bank.

Forms

We reserve the right to only honor checks and requests for withdrawal drawn on forms approved by Lake City Bank and that conform to our printing specifications, including encoding of the account number and consecutive check numbering in machine readable format. Any other checks or forms used that are not authorized by Lake City Bank, may be subject to an additional Administrative Charge, which can be found in the current Personal Accounts and Services.

We may at our option, pay any item whether or not the item is properly encoded. You agree we shall have no responsibility to stop payment on any check or other item not conforming to our printing and encoding specifications.

You must notify Lake City Bank as soon as possible of the loss or theft of any forms designed for your account.

Indemnification

You agree to indemnify Lake City Bank against and hold harmless from any liability or loss, including court costs, reasonable attorney costs and other expenses, the Bank may incur resulting from a delay in the forward collection or return of any item deposited into or issued from your account, caused by improper placement of endorsement(s) or other materials on the back of the deposited or issued item that affects the Bank’s ability to endorse the item as required by federal regulations.

In the event the Bank becomes party to any legal proceedings between you and any third party, or between you and any joint owner, it is agreed that all of the joint owners will reimburse all liability, costs, charges, fees and expenses, including attorney and court costs, incurred by the Bank as a result of such proceedings.

Set-off

You agree that all bank accounts in your name, individually or jointly with another person(s), may at the Bank's option be applied all or in part toward the payment of any obligation owing Lake City Bank by any one or more owners of your account. We may do so without prior notice. An obligation includes any debt owing the Bank including fees, charges, or other debts due us whether due or not incurred as a maker, endorser, guarantor, or otherwise, and any obligation which now exists or is hereafter acquired. Without limitation, this right of set-off applies to any check or item cashed by the Bank or deposited in an account to which an owner of this account is party as a maker, payee, endorser, or guarantor which is not honored according to its terms.

Negative Information

We may report information about your account to credit bureaus. Late payments, missed payments, or other defaults on your account may be reflected in your credit report.

Post-dated/Stale-dated Checks

Lake City Bank will not be responsible for, and you hereby agree to waive, any losses or costs you incur as a result of the payment by this Bank of any check more than six (6) months old or the payment of any check before the date written on the face of it by you.

The Bank may charge against your account a check that is otherwise properly payable before the date written on the face of the check, unless you give notice to us of the postdating and identify the account number, check number, amount and date on the check. Your notice of post-dating must be received prior to the processing of the check in the normal course of business and with sufficient time to enable the Bank to act on your request. A notice of postdating will be assessed a charge identical to the stop payment order fee. These charges are found in the current Personal Accounts and Services brochure. When proper and timely notice is provided, the Bank will handle the post-dated check in the same manner as a stop payment order.

Check Legends

Lake City Bank will not be responsible for, and you hereby agree to waive, any losses or costs you incur as a result of the payment by the Bank of any check which contains any extraneous legends, for example "void after 90 days." In order to avoid payment of these items, a stop payment must be ordered.

Stop Payment Orders

You may ask the Bank to stop payment on any check written on your account. Stop payments are subject to rules contained in the Uniform Commercial Code as adopted by the State of Indiana and any other applicable laws. The Bank must receive the stop payment order at such a time and manner as to give the Bank a reasonable opportunity to act on it before the Bankis required by the UCC and clearinghouse rules to honor an item. An oral stop payment order is only valid for fourteen (14) calendar days unless it is confirmed in writing within that time period. A written stop payment order is valid for six (6) months unless it is renewed in writing. The charges assessed for the stop payment order are found in the current Personal Accounts and Services brochure.

Stop payment orders are not allowed to be placed on electronic Point-of-Sale (POS) transactions or Visa®> Debit Card transactions. Refer to Regulation E – Electronic Banking Network Disclosures in this Agreement for information on your right to stop payment on ACH transactions.

Statements

Lake City Bank will provide a periodic statement showing your account activity (deposits, withdrawals, interest, charges, etc.) during the statement cycle. You agree to review your statements promptly to determine if there are any irregularities, alterations, or unauthorized transactions. You must notify the Bank within thirty (30) days of your receipt of the statement, unless another time period is required by state or federal law. Your checking account statement will not include paid or canceled checks. Check images are available upon request. Charges for this service are found in the current Personal Accounts and Services brochure. The Bank will maintain images of your checks for a period of five (5) years. You may obtain copies by contacting the Bank. In order to receive the best images of the checks you write, we recommend that you use black ink when completing your checks and that you purchase check stock that is image-friendly.

Power of Attorney

The Bank must approve the form and manner of appointment if you choose to name another person to act as your attorney-in-fact in connection with your account. Once recorded on the records of the Bank the appointment stands until rescinded by you and the Bank has received notification of the revocation and has had reasonable opportunity to act on it.

Death of Individual Depositor

In the case of the death of an individual depositor, the amount of deposit for the deceased will be paid to his or her legal representatives who are authorized by law to receive the deposit; except in such cases as by express trust or joint account agreement, the amount on deposit shall be directed to be otherwise paid.

Joint Accounts

If your account is in the name of two or more individuals as joint owners, and the title of the account has the word "or" between the names of the owners, any or all of the owners may make deposits or withdrawals. You agree that the Bank may follow the orders or instructions of one of the owners without becoming liable to the others.

If you have requested another form of ownership which requires that all joint owners sign withdrawals or other payment orders, your account title must have the word “and” between the names of the owners.

If no distinction, “or” is assumed.

If one joint owner dies, it is a condition and express term of this agreement with respect to all deposits made and received in the name of two or more persons jointly that without regard to the ownership or source of all or part of the funds deposited, the total amount on deposit upon the death of one owner, his or her interest in the account passes automatically to the surviving joint owner(s), and that all deposits so made and received shall be made and received in trust to be so paid, but subject to the withdrawals as made by any person so designated during his life. The Bank will pay out sums deposited to an account in the name of two or more persons in accordance with the instructions set forth in the deposit agreement. If you do not want the interest in your account to pass automatically to the surviving joint owners, you must request in writing that the account be titled "without survivorship." The deceased person's pro rata interest in said account will pass to the estate of the deceased.

Payable on Death (P.O.D.) Accounts

You may open an account titled to be payable on death to a beneficiary. Under Indiana Law, your interest in the account will pass to the beneficiary when you die. As a general rule, the beneficiary must be an individual. However, the Bank may allow a charitable organization or other institution to be a beneficiary, at its discretion.

Transfer to Minors Under the Uniform Transfers to Minors Act

You may make an irrevocable gift of money to a minor by opening an account in the manner prescribed in the Indiana Uniform Transfer to Minors Act. The account must be opened in the name of a custodian. As a general rule, the custodian must be an adult individual. There may be only one custodian and one minor individual for each account.

Representatives

If the depositors are acting in a representative capacity, they shall provide the Bank with whatever proof the Bank requires in order to verify said representative capacity.

Assignment and Transfer

All accounts are not negotiable or transferable. You may not transfer or assign your interest in an account or use it as collateral for a loan except to the Bank. Changes in ownership reflected on the Bank's records and transfers arising from operation of law, such as death, divorce or incompetency are permitted.

Closing Accounts

Your account may be closed by either you or the Bank at any time. If you close your account it will be deemed closed when the Bank receives notice of your intent and has had reasonable time to act on the request. If the Bank closes the account, your account will be closed as of the date the notice of cancellation was mailed by the Bank. After your account is closed, the Bank will not have any obligation to accept deposits or pay any outstanding checks. Any money in the account will be returned to you by regular mail, after we deduct any fees or charges. When your account is closed you must return your Visa® Debit Card or 24 Hour Teller (ATM) Card and return or destroy all unused checks.

Accounts closed within 180 days of opening may incur an early closing fee and forfeit any other benefits related to the account. Refer to the current Personal Accounts and Services brochure for this information.

FDIC Insurance

Your deposit accounts are insured along with other accounts in the same ownership, up to at least $100,000 by the Federal Deposit Insurance Corporation. Certain retirement accounts are insured up to $250,000 per owner, per insured bank.

Administrative Charges/Fees

Applicable administrative charges and maintenance fees are found in the current Personal Accounts and Services brochure. This includes, but is not limited to, transaction limitations and fees, automated teller machine fees, and monthly maintenance fees where applicable. Your account may also be charged for other services you request. When examining balances for the purpose of determining fees assessed, the Bank uses the collected daily balance, unless otherwise noted.

Balance Required to Maintain the Account

You agree to keep a positive balance in the account in order for the account to remain open. Balances of zero or less, for thirty (30) days or more may result in the account being closed.

Current Annual Percentage Yield (APY) and Interest Rate

For information about current Annual Percentage Yields and interest rates for any interest bearing account you may contact the Bank by calling (574) 267-6144 or by contacting the One-Call Center at 888-522-2265 or by e-mail at lcbdirect@lakecitybank.com. IMPORTANT – Do not include your account number if contacting us via e-mail since e-mail is not a secure form of communication.

Amendments and Notices

These terms and conditions may be altered, amended, or rescinded including those relating to the Annual Percentage Yield and computation of interest. Notice of changes may be provided to you by any means the Bank considers to be appropriate. Except where a law or regulation requires notice by some other means, the Bank may provide you with notice of a change to these terms and conditions by posting the notice in the lobby of the Bank and it shall become binding on all depositors as though they had expressly assented thereto. All of these terms and conditions will be deemed amended or rescinded without notice to the extent necessary to comply with the requirements of the law or of any rule or regulation of proper supervisory banking authority. If any part of this agreement is found to be invalid, it shall not affect the validity of any other part of this agreement.

When regulation or law requires notice, the notice may be sent by first- or third-class mail or via electronic methods and will be considered given at the time of mailing. Notices may be sent to one owner on a joint account. Notices will be sent to the address shown on the records of the Bank. You may send written notices to the Bank at the location where your account is located or to:

Lake City Bank, Attn: Customer Service, P.O. Box 1387,Warsaw, IN 46581-1387,or by e-mail to lcbdirect@lakecitybank.com.

IMPORTANT – Do not include your account number if contacting us via e-mail since e-mail is not a secure form of communication.

Waiver

We do not give up any rights we have under this agreement by delaying or failing to exercise them. If any part of this agreement is found by a court to be unenforceable, the remaining parts will still be in effect. You hereby waive the right to a jury trial in disputes concerning your accounts with this Bank.

Venue

You agree that any litigation concerning your account will be brought in the city and county in which we have our home office.

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REGULATION DD
Truth in Savings Disclosure

The purpose of this regulation is to help you make informed decisions about deposit accounts based on the terms and conditions under which interest is paid and fees are charged. Lake City Bank makes the following product disclosures along with the current Personal Accounts and Services brochure available for your review and comparison to financial products offered by other Financial Service providers.

Investment Accounts

The terms and conditions of this section apply to Investor's Money Market, Savings, and Young Savers accounts in addition to the previously mentioned General Terms and Conditions that apply to all Lake City Bank deposit accounts.

Interest

We use the daily balance method to compute interest on your account. This method applies a daily periodic rate to the collected balance in the account each day. To determine the daily periodic rate, we divide the interest rate by the actual number of days in the year (365 days per year, 366 days in leap year). Interest begins to accrue no later than the business day when we receive credit for the deposit of non-cash items (for example, checks).

Interest is compounded based upon the account type and will be credited to your account as described in the specific account type chosen, unless we agree to pay the interest in another manner. In order to obtain the interest rate and annual percentage yield shown on the Annual Yield Disclosure of this Agreement, you must maintain the minimum balance associated with that account type or with an interest rate tier. The interest rate and Annual Percentage Yield (APY) paid on each of these accounts is variable and will be determined by the current market rates and alternate funding rates. The Bank reserves the right to change the interest rate and APY at any time and without notice.

Interest bearing accounts will be paid interest at a rate determined by the Bank. We reserve the right to select the method of determining the balances upon which interest will be paid, the time the funds must be on deposit to be entitled to interest, the method of computing interest, and the dates interest will be paid. The initial rate(s) of interest are shown on the Annual Yield Disclosure of this Agreement when you open an interest bearing account. Subsequent interest rates may be obtained by contacting the One-Call Center toll free at 888-522-2265 or by e-mail at lcbdirect@lakecitybank.com. IMPORTANT – Do not include your account number if contacting us via e-mail since e-mail is not a secure form of communication.

Effect of Closing An Account

If you close your account before interest is credited, you will forfeit the accrued interest.

Statements

Detailed statements will be sent for all accounts not getting a monthly statement, within thirty (30) days after the first day of each calendar quarter.

Minimum Balance Requirements

An average balance may be required to avoid a monthly maintenance fee. These minimums and associated fees are found in the current Personal Accounts and Services brochure.

Transaction Limitations

Transfers to third parties are limited to six per statement cycle from your investment account. Transfers for the payment of a Lake City Bank personal loan or mortgage loan are unlimited. You may make unlimited withdrawals from your investment account, either in person at any Lake City Bank location or an Automated Teller Machine. There may be fees for withdrawals over a predetermined number. This information can be found in the current Personal Accounts and Services brochure. Federal regulations limit the number of restricted withdrawals to six per statement cycle. A restricted withdrawal includes any withdrawal initiated by electronic means including telephone, computer terminal and Automated Clearing House (ACH). Transfers to another account of the same owner initiated by electronic means and transfers to a checking account to cover overdrafts are subject to the restricted withdrawal limitations. There are no limitations on deposits.

Savings Account

Interest will be compounded monthly and paid (credited) to the account balance quarterly, thereafter becoming available for withdrawal.

Six (6) withdrawals per month are allowed without a withdrawal fee. Withdrawals in excess of six (6) per month, made in person at a teller window, through the automatic transfer service for payments or deposits and the overdraft protection transfer service will be assessed a withdrawal fee. Refer to the current Personal Accounts and Services brochure.

Young Savers Account

A minor child may open an account, with the consent of the Bank.Withdrawal order(s), whether written, electronic or verbal, shall be full acquaintance and discharge of the Bank for what is thus paid. All such accounts shall in all respects be subject to and governed by the provisions of this agreement in the same manner as accounts of adult persons.

Must be under age 23 to be eligible for this account. When the account holder reaches their 23rd birthday, the account will become a regular Savings Account and be subject to the fees of a regular Savings Account.

Interest will be compounded monthly and paid (credited) to the account balance quarterly, thereafter becoming available for withdrawal.

Investor’s Money Market Account

Interest will be compounded daily and paid (credited) to the account balance monthly, thereafter becoming available for withdrawal.

A minimum deposit of $5,000 is required to open this account and to earn interest. Tiered-rate account – interest rates based on the daily collected account balance. Deposits may be made to this account at any time.

Withdrawals to pay a third party from this account are limited to six (6) per statement cycle, of which three (3) may be by check. This limit of six includes any electronic withdrawals initiated by computer terminal or telephone, including transfers initiated by telephone from one account to another of the same owner. Withdrawals in excess of six (6) per statement cycle, including those made at a teller window will be assessed an excess transaction fee. Refer to the current Personal Accounts and Services brochure. Frequent occurrences of excess withdrawals may result in the account being closed.

Certificates of Deposit

The Terms and Conditions of this section apply to Certificate of Deposit accounts, including Custodial Individual Retirement accounts, in addition to the previously mentioned General Terms and Conditions that apply to all Lake City Bank deposit accounts.

Special Certificate of Deposit offers may have specific terms and conditions – all of which will be disclosed at the time of the promotion. All other general Certificate of Deposit information shall apply. Contact your local banking center or the One-Call Center at 888-522-2265 for specific terms and conditions of special offers.

Early Withdrawal Provisions

You have agreed, by opening a certificate of deposit account, to keep the funds on deposit for the full maturity of subsequent renewals. Under Government Regulations, the deposit may not be withdrawn prior to maturity except with the Bank's consent, which may be given only at the time such request is made.

If consent is given to withdraw all or part of your account before maturity, the Bank will impose an early withdrawal penalty. (The penalty may be waived in the event of the death of the owner of the account or in the event any such owner has been declared mentally incompetent.)

Certificate of Deposit Minimum Balance Requirements

The minimum balance to open a certificate of deposit is $500.Special offers may require a higher minimum balance.

Transaction Limitations

After this account is opened you may not make deposits into or withdrawals from the account until the maturity date.

Terms

You may choose the terms that best fit your investment needs. The maturity length may be anywhere from 32 days to seven years (84 months). Once the term is chosen for a particular deposit it remains fixed at that chosen length of time until maturity.The terms available are determined by the bank from time to time. All the terms listed in the following table may not be available for new certificates of deposit.

Automatic Renewal

Certificates of deposit with balances less than $100,000 will automatically renew at maturity according to the table below, at the interest rate and APY in effect on the maturity date unless the depositor requests the certificate of deposit be redeemed or the term changed at which point the rate will be the rate in effect for the requested term.

Original Investment Term	Renewal Investment Term
Terms less than 90 days	3 months
3 – 5 months	3 months
6 – 8 months	6 months
9 – 11 months	9 months
12 – 17 months	12 months
18- 23 months	18 months
24 – 29 months	24 months
30 – 35 months	30 months
36 – 47 months	36 months
48 – 59 months	48 months
60 – 83 months	60 months
84+ months	84 months

There is a ten (10) calendar day grace period after the maturity date during which time the depositor may withdraw the deposit without receiving an early withdrawal penalty. However, no interest will be earned for the time period between the maturity date and redemption.

Certificates of deposit of $100,000 and more will not automatically renew and will cease to earn interest on the maturity date.The depositor is responsible for redeeming the certificate and negotiating the new term and rate.

The depositor will be provided with a notice of upcoming maturity 30 days prior to the maturity date for all certificate of deposit terms greater than 32 days.

Interest

We use the daily balance method to compute interest on your account. This method applies a daily periodic rate to the principal in the account each day. To determine the daily periodic rate, we divide the interest rate by the actual number of days in the year (365 days per year, 366 days in leap year). Interest will begin to accrue on the date of deposit. The APY disclosed on the Annual Yield Disclosure of this Agreement for your certificate of deposit assumes the interest remains on deposit for one year. Withdrawal of interest prior to maturity will reduce earnings. The interest rate and Annual Percentage Yield (APY) paid on this deposit will be determined by the Bank at its discretion at the time the certificate of deposit is opened. The interest rate and APY will remain fixed until the certificate of deposit matures.

Interest Payment Options

The depositor may have some options available regarding how the interest is to be paid. Interest can be paid to the depositor monthly, quarterly or semi-annually (if the certificate of deposit has a balance of $6,000 or more and the term is equal to or greater than 6 months), annually or at maturity depending on the chosen term by deposit into an account (see below). The interest may be added to the certificate of depositannually or at maturity depending on the chosen term (see below). A check may be mailed or electronically transferred to the depositor only by special arrangement and consent of the Bank which may be given only at the time such request is made. The interest payment method for certificates of deposit with terms equal to or greater than 6 months can be changed during the term of the certificate of deposit with the consent of the Bank which can be given only at the time such a request is made.

Investment Term	Interest Payment Options
Less than 6 months	Maturity Date only by compounding or payment to the depositor
6 to 11 months	Compounded at maturity, or paid to the depositor monthly* or quarterly* by electronic means into a qualified account
12 months +	Compounded annually or paid to the depositor monthly, quarterly, semi-annually* by electronic means or annually by deposit into a qualified account

*Monthly, quarterly and semi-annual interest is limited to certificates with a balance of $6,000 or greater with a term equal to or greater than 6 months and by electronic means into a qualified account.

Early Withdrawal Disclosure

The following early withdrawal penalties apply for premature withdrawal of Certificates of Deposit. The penalty amount can include part of the principal if there is not enough accrued interest to satisfy the penalty.

The penalty calculation is based on the term of the certificate of deposit.

Investment Term	Premature Withdrawal Penalty
Less than 3 months (less than 90 days)	All interest earned, minimum of seven (7) days
3-11 months (90-364 days)	90 days interest at rate being paid on the Certificate of Deposit
12-47 months	180 days interest at rate being paid on the Certificate of Deposit
Greater than 47 months	270 days interest at rate being paid on the Certificate of Deposit

There is an early redemption fee in addition to the early withdrawal penalty applicable to each early withdrawal request. Please refer to the current Personal Accounts and Services brochure.

Interest only withdrawals are not subject to the premature withdrawal penalties or the early redemption fee. However, they are restricted to one per twelve (12) month period.

Custodial Individual Retirement Accounts (IRAs)

Lake City Bank offers two types of Custodial Individual Retirement Accounts: A Fixed Rate IRA Certificate of Deposit and a Variable Rate IRA Certificate of Deposit. You may choose the terms that best fit your investment needs. The maturity length may be anywhere from 32 days to seven years (84 months). Once the term is chosen for a particular deposit it remains fixed at that chosen length of time until maturity.The terms available are determined by the bank from time to time. All the terms listed in the Certificate of Deposit table may not be available for new certificates of deposit.

Annual Contribution

Federal law restricts the timing of and maximum annual contribution to an IRA. Lake City Bank shall comply with those limitations. It is the responsibility of the depositor to keep a record of deposits so that the annual contribution limit is not exceeded.

Withdrawals

Federal law restricts withdrawals from Individual Retirement Accounts.

Statements

Annual statements will be issued for Individual Retirement Accounts. See the IRA Custodial Agreement and Disclosures for more information about your Individual Retirement Account.

See the current Personal Accounts and Services brochure for bank fees associated with your Individual Retirement Account.

Fixed Rate IRA Certificates of Deposit

This is a fixed rate certificate of deposit. The terms and conditions cited under the Certificates of Deposit section of these disclosures apply in addition to the disclosures cited below and those provided by the Custodial IRA Agreement. Disclosures given to you at the time of the account opening will supercede any disclosures given under the Certificates of Deposit disclosures listed in these terms and conditions should there be a conflict of information.

Minimum Balance Requirements

A minimum balance of $500 is required to open and maintain the account. Special offers may require a higher minimum balance.

Transaction Limitations

After this account is opened you may not make deposits into or withdrawals from the account until the maturity date.

Terms

You may choose the terms that best fit your investment needs. The maturity length can be anywhere from one year (12 months) to seven years (84 months). Once the term is chosen for a particular deposit it remains fixed at that chosen length of time until maturity.

Automatic Renewal

Original Investment Term	Renewal Investment Term
Terms less than 90 days	3 months
3 – 5 months	3 months
6 – 8 months	6 months
9 – 11 months	9 months
12 – 17 months	12 months
18- 23 months	18 months
24 – 29 months	24 months
30 – 35 months	30 months
36 – 47 months	36 months
48 – 59 months	48 months
60 – 83 months	60 months
84+ months	84 months

Certificates with an initial deposit of $100,000 or more will not automatically renew and will cease to earn interest on the maturity date.

Interest

We use the daily balance method to compute interest on your account. This method applies a daily periodic rate to the principal in the account each day. To determine the daily periodic rate, we divide the interest rate by the actual number of days of the year (365 days per year, 366 days in leap year). Interest will begin to accrue on the date of deposit. The APY disclosed on the Annual Yield Disclosure of this Agreement for your certificate of deposit assumes the interest remains on deposit until maturity. Withdrawal of interest prior to maturity will reduce earnings. The interest rate and Annual Percentage Yield (APY) paid on this deposit will be determined by the Bank at its discretion at the time the certificate of deposit is opened. The interest rate and APY will remain fixed until the certificate of deposit matures.

Interest Payment Options

Interest will be added to the account annually and at maturity. Federal law prohibits payment of interest directly to the depositor unless IRA distributions have begun. The depositor may have some options available regarding how the interest is to be paid once IRA distributions have begun. Interest can be paid to the depositor monthly, quarterly, or semi-annually (if the certificate of deposit has a balance of $6,000 or more and the term is equal to or greater than 6 months), annually or at maturity depending on the chosen term by deposit into an account. The interest may be added to the certificate of deposit annually or at maturity depending on the chosen term. A check may be mailed or electronically transfered to the depositor only by special arrangement and consent of the Bank which may be given only at the time such request is made. The interest payment method for certificates of deposit with terms equal to or greater than 6 months can be changed during the term of the certificate of deposit with the consent of the Bank which can be given only at the time such a request is made.

Early Withdrawal Disclosures

Early withdrawal disclosures applicable to Certificates of Deposit apply to Fixed Rate IRA Certificates of Deposit even when the owner is over age 59½.

Variable Rate Individual Retirement Account Certificates of Deposit

This is a variable rate certificate of deposit which allows for additional deposits to be made to it during the term of the account. The terms and conditions cited under the Certificates of Deposit section of these disclosures apply in addition to the disclosures cited below and those provided by the Custodial IRA Agreement. Disclosures given to you at the time of the account opening will supersede any disclosures given under the Certificates of Deposit disclosures listed in these terms and conditions should there be a conflict of information.

Terms

You may open a variable rate IRA for a term of eighteen (18) months or seventy-two (72) months.

Minimum Balance Requirements

The minimum deposit required to open the account is $50, unless you have arranged for a periodic Direct Deposit to be made into the account, in which case the minimum opening deposit is $10.

Minimum Additional Deposits

Additional deposits may be made to the account at any time but must be at least ten dollars ($10).

Interest

The interest rate and the Annual Percentage Yield (APY) paid on this account is variable and will be set by the Bank based on the current market rates and alternate funding rates on the first Tuesday of every month. The current rate (rate in effect when the account was opened) can be found on the Annual Yield Disclosure of this Agreement.

Interest Payment Options

Interest will be added to the account annually and at maturity. Federal law prohibits payment of interest directly to the depositor unless IRA distributions have begun. The depositor may have some options available regarding how the interest is to be paid once IRA distributions have begun. Interest can be paid to the depositor monthly (if the certificate of deposit has a balance of $6,000 or more and the term is equal to or greater than 6 months), quarterly, semi-annually, annually or at maturity depending on the chosen term by deposit into an account. The interest may be added to the certificate of deposit annually or at maturity depending on the chosen term. A check may be mailed or electronically transfered to the depositor only by special arrangement and consent of the Bank which may be given only at the time such request is made. The interest payment method for certificates of deposit with terms equal to or greater than 6 months can be changed during the term of the certificate of deposit with the consent of the Bank which can be given only at the time such a request is made.

Early Withdrawal Disclosures

Early withdrawal disclosures applicable to Certificates of Deposit apply to Variable Rate IRA Certificates of Deposit even when the owner is over age 59½.

Checking Accounts

The terms and conditions in this section apply to all demand deposit (checking) accounts.

Minimum Balance Requirements

Checking accounts require an initial deposit of at least $50. A minimum balance may be required to avoid a monthly maintenance fee. These minimums and associated fees are found in the current Personal Accounts and Services brochure.

Account Maintenance Fees

A listing of the account maintenance fees are found in the current Personal Accounts and Services brochure.

Non-Interest Bearing Checking

A non-interest bearing checking account is a demand deposit account that does not earn interest.

Interest Bearing Checking

Interest bearing checking accounts are demand deposit accounts that earn interest. At the Bank's discretion, we may pay different interest rates on different accounts having different daily balances.The Annual Percentage Yields in effect when you open the account are found on the Annual Yield Disclosure of this Agreement.After the account is open, current Annual Percentage Yields can be obtained by contacting the One-Call Center at (888) 522-2265 or by e-mail at lcbdirect@lakecitybank.com. IMPORTANT – Do not include your account number if contacting us via e-mail since e-mail is not a secure form of communication.

Internal Money Management Account

A portion of your checking account’s balance may at times be reclassified under the Federal Reserve Board’s Regulation D. This accounting procedure will not affect your account in any way.

An internal money management account consists of two sub-accounts: a checking account and a savings account. All checks, debits, and withdrawals are presented against the checking account for payment.

If the balance in the checking account exceeds a threshold balance, and six (6) transfers from the savings account have not occurred during the monthly statement cycle, the amount in excess of the threshold balance in the checking account shall be transferred to the savings account on a daily basis.

If the aggregate of checks, debits, and withdrawals, presented against the checking account exceeds the available balance, a transfer from the savings account to the checking account shall be made if the funds are available in the savings account. The transfer from the savings account shall be made to pay all checks, debits, and withdrawals presented that business day to replenish the checking account to the threshold balance. Transfers from the savings account are limited to six (6) transfers during a monthly statement cycle. Upon the sixth transfer from the savings account to the checking account during a monthly statement cycle, the entire balance in the savings account shall be transferred to the checking account for the remainder of the monthly statement cycle.

Interest

Interest is compounded monthly and will be credited to your account each month on the closing date shown on your statement, unless we agree to pay the interest in another manner. In order to obtain the interest rate and annual percentage yield (APY) shown on the Annual Yield Disclosure of this Agreement, you must maintain the minimum balance associated with that tier. Your interest rate and annual percentage yield (APY) may be changed at any time without prior notice.

Interest bearing accounts will be paid interest at a rate based on the current market rates and alternate funding rates.We reserve the right to select the method of determining the balances upon which interest will be paid, the time the funds must be on deposit to be entitled to interest, the method of computing interest, and the dates interest will be paid.The initial rate(s) of interest are shown on the Annual Yield Disclosure of this Agreement when you open an interest bearing account.Subsequent interest rates may be obtained by calling the One-Call Center toll free at (888)-522-2265.

Pre-authorized Transfer Service (PATS)

This service allows up to six (6) transfers in any statement period from your Savings or Investor’s Money Market account to yourtransaction (Checking) account when the balance of your transaction account is overdrawn because of a check or other withdrawal written or authorized by you. As required by Federal Regulations, the maximum of six (6) allowable transfers during the statement period will be reduced by withdrawals or transfers from the Savings or Investor’s Money Market account which you make by telephone or computer. The Bank reserves the right to refuse any automatic transfers beyond six (6) during a statement period.

At the Bank’s discretion this service may be permitted to allow transfers from one transaction account to another.

This service is covered under a separate agreement and must be specifically requested by executing a Pre-authorized Transfer Service Agreement.

Health Savings Account (HSA) Checking

A Health Savings Account (HSA) is a tax-exempt trust or custodial account established exclusively for the purpose of paying or reimbursing qualified medical expenses of you, your spouse, and your dependents. Eligibility requirements are required for establishing an HSA.

Federal law restricts the timing of and maximum annual contribution to an HSA. Lake City Bank shall comply with those limitations. It is the responsibility of the depositor to keep a record of deposits so that the annual contribution limit is not exceeded.

Federal law restricts withdrawals from Health Savings Accounts. It is the account holder’s responsibility to substantiate that withdrawals fall within those restrictions.

See the Health Savings Account Custodial Agreement for more information about your Health Savings Account.

See the current Personal Accounts and Services brochure for bank fees associated with your Health Savings Account.

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REGULATION CC
Funds Availability Policy: Your Ability to Withdraw Funds at Lake City Bank

The purpose of Expedited Funds Availability Act and Check Clearing for the 21st Century Act is to promote availability of funds deposited and to contain rules relating to substitute checks.It also expedites the return of dishonored checks through the United States check clearing and payments systems.

Our policy is to make funds available from your deposits the next business day, or by the fifth business day after the day of your deposit depending on the type of deposit as described below.This policy applies to both personal and non-personal checking accounts.

We reserve the right to impose case-by-case and exception holds and to impose holds on other funds held on deposit as outlined in the information following.

Determining the Availability of a Deposit

The length of delay is counted in business days beginning with the business day following the day of your deposit.Every day is a business day except Saturday, Sunday and legal holidays.

Cutoff Times

Some of our offices have “cutoff” times.If you make a deposit at one of these offices before the cutoff time on a business day we are open, we will consider that day to be the day of your deposit.However, if you make a deposit after the cutoff time or on a day we are not open, we will consider that the deposit was made on the next business day we are open.The cutoff time may vary by location but will not be earlier than 2:00 p.m.If the cutoff time is earlier than the office closing time, the cutoff time is posted in the office.

Length of Delay

The length of delay varies depending on the type of deposit as explained below.

1. ATM Deposits: deposits made after 12:00 p.m., or later as posted at each on premise (i.e., less than 50 feet from a Lake City Bank location) Automated Teller Machine, on any business day or on a day when we are not open, we will consider that the deposit was made on the next business day we are open.You can identify ATMs owned and operated by us by the initial screen message.

2. If you make a deposit at an off-site ATM (i.e., one more than 50 feet from a Lake City Bank location) we will consider that deposit made on the day it is removed from the ATM.

Same-Day Availability

Direct Deposits of electronic payments (such as Social Security benefits and payroll direct deposits) are available on the business day that the funds are due to you.

Next-Day Availability

Funds from the following deposits are available on the first business day after the day of your deposit.

U.S. Treasury checks that are payable to you.
Wire Transfers.
Checks drawn on Lake City Bank.
If you make the deposit in person to one of our employees at one of our offices, funds from the following deposits are also available on the first business day after the day of your deposit:

- Cash

- State of Indiana and Indiana local government checks deposited into Lake City Bank accounts that are payable to you. (Special processing may be required. Please notify bank employee at time of deposit.)

- Cashier’s, Certified, and Teller’s Checks that are payable to you. (Special processing may be required. Please notify bank employee at time of deposit.)

- Federal Reserve Bank checks, Federal Home Loan Bank checks and U. S. Postal money orders, if these items are payable to you.

The lesser of $100 or the aggregate amount deposited on any one banking day to all accounts of the customer by check or checks not subject to next day availability.

If you do not make your deposit in person to one of our employees at one of our offices (for example, if you mail the deposit), funds from these deposits may not be available until the second business day after the day we receive your deposit.

Other Check Deposits

The delay for other check deposits depend on the bank the check is drawn on. It could also depend on whether the check is local or nonlocal. A local check could have up to a two (2) day hold. A nonlocal check could have up to a five (5)day hold.

Local check means a check payable by or at a local paying bank, or a check payable by a nonbank payor and payable through a local paying bank.
Local paying bank means a paying bank that is located in the same check-processing region as the physical location of the branch, contractual branch, or proprietary ATM of the depository bank in which that check was deposited.
Nonlocal check means a check payable by, through, or at a nonlocal paying bank.
Nonlocal paying bank means a paying bank that is not a local paying bank with respect to the depository bank.

We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available to you no later than the sixth (6th) business day after the day of your deposit or earlier as required by law. If you need to be sure about when a particular deposit will be available for withdrawal, contact your local banking center or the One-Call Center at 888-522-2265.

More Than One Category of Checks in a Deposit

If you deposit more than one category of checks in a deposit, $100 from the checks in that deposit will be available on the first business day after the day of your deposit, not $100 from each category of check.

Longer Delays May Apply

Funds you deposit by check may be delayed for a longer period under the following circumstances.

1. We believe a check you deposit will not be paid.

2 You deposit checks totaling more than $5,000 on any one day.The first $5,000 will be available the next business day after the day of your deposit.The remainder will generally be available no later than the eleventh (11th) business day after the day of your deposit.

3. You redeposit a check that has been returned unpaid.

4. You have overdrawn your account repeatedly in the last six months. (This is defined to mean on six or more banking days within the preceding six months, the account balance is negative or the balance would have become negative if checks or other charges to the account had been paid, rather than returned. This also can be defined to mean on two or more banking days within the preceding six months the account balance is negative in the amount of $5,000 or more if the checks or other charges to the account had been paid.)

5. There is an emergency, such as failure of communications or computer equipment.

Reasonable Cause Delays

We may also delay the availability of funds that a customer deposits by check for the following reasons:

1. We receive notice that the check is being returned unpaid.

2. We have confidential information that the check may not be paid.

3. The check is drawn on an account with repeated overdrafts.

4. We are unable to verify the endorsement of a joint payee.

5. Some information on the check is not consistent with other information on the check.

6. There are erasures or other apparent alterations on the check.

7. The routing number of the paying bank is not the current rounting number.

8. The check is post dated or has a stale date (more than six months old).

9. Information from the paying bank indicates that the check may not be paid.

10. We have been notified that the check has been lost or damaged in transit.

We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available to you no later than the eleventh (11th) business day after the day of your deposit or earlier as required by law. If you need to be sure about when a particular deposit will be available for withdrawal, contact your local banking center or the One-Call Center at 888-522-2265.

Special Rules for New Accounts

If you are a new customer, the following special rules may apply, at our discretion, during the first 30 calendar days your account is open instead of the rules described above.

1. Funds from electronic direct deposits into your account will be available on the business day the funds are due to you.

2. Funds from deposits of cash, wire transfers, and the first $5,000 of a day's total deposits of U.S. Treasury checks, U.S. Postal money orders, Federal Reserve Bank, and Federal Home Loan Bank checks, and cashier's, certified, teller's, traveler's, and state and local government checks will be available for withdrawal on the first business day after the day of your deposit if the deposit meets certain conditions.For example, the checks must be payable to you (Special processing may be required. Please notify bank employee at time of deposit). The excess over $5,000 will be available no later than the ninth (9th) business day after the day of your deposit.If your deposit of these checks (other than U.S. Treasury checks) is not made in person to one of our employees, the first $5,000 will not be available until the second business day after the day of your deposit.

3. Funds held from all other check deposits are not subject to the availability requirements.

Holds on Other Funds

If we accept for deposit a check that is drawn on another bank, we may make funds from the deposit available for withdrawal immediately but delay your ability to withdraw a corresponding amount of funds that you have on deposit in another account with us.The funds in the other account would not be available for withdrawal until the time periods that are described elsewhere in this disclosure for the type of check that you deposited.

If we cash a check for you that is drawn on another bank, we may withhold the availability of a corresponding amount of funds that are already in your account.Those funds will be available at the time funds from the check we cashed would have been available if you had deposited it.For example, if we cash a $100 local check for you, $100 of funds already in your account will not be available until the next business day after the day we cashed the check.

Important Information About Endorsements

Indemnification (Refer to General Terms and Conditions in this Agreement)

You agree to indemnify Lake City Bank against and hold harmless from any liability or loss, including court costs, reasonable attorney costs and other expenses, the Bank may incur resulting from a delay in the forward collection or return of any item deposited into or issued from your account, caused by improper placement ofendorsement(s) or other materials on the back of the deposited or issued item that affects the Bank’s ability to endorse the item as required by Federal Regulations.

Endorsement Standards

All financial institutions are legally required to adhere to formal bank endorsement standards when processing customer check deposits.Under these standards, the bank of first deposit must place its endorsement in a specific area on the back of every check it accepts for deposit.The area reserved for this purpose is located near the middle of the check.To insure that our endorsement can easily be identified by the paying bank in the event that it wishes to return the check, customers are requested to avoid this middle area by placing their own personal endorsement in an area within the first 1.5 inches on the back of the check.Placing your endorsement in any other area could obscure our own bank endorsement and delay the return of the check.Losses associated with delays caused by illegible bank endorsements will be the responsibility of the customer.

Even after we have made funds available to you, and you have withdrawn the funds, you are still responsible for checks you deposit that are returned to us unpaid and for any other problems involving your deposit.

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REGULATION E
Electronic Banking Network Disclosures
(Disclosures for Electronic Banking Customers)

These disclosures summarize your rights and responsibilities under the Electronic Funds Transfer Act a/k/a Regulation E. Please read them and keep them in a convenient place.

Lake City Bank provides Telephone Banking Service, Internet Banking Service, Visa® Debit Cards, 24 Hour Teller ATM Cards, and Automated Teller Machines (ATMs) as a convenience for our customers who apply for these services. The location of ATM machines may be changed by the Bank without prior notice to you. Your card and personal identification number (PIN) remain the property of this Bank, and the Bank may terminate your right to use the card or service at any time.

Your use of one of these services, or pursuant to a separate agreement, or any application therefore, constitute your agreement to be bound to such terms and conditions.

Types of Transactions

Automated Teller Machines (ATMs)

The transactions you may perform will depend on the account(s) you have designated for ATM access. Please note that you may not be able to access more than your primary account through some ATMs. Therefore choose your primary account carefully.

1. You can use your Lake City Bank 24 Hour Teller ATM Card or Visa® Debit Card at Lake City Bank, CIRRUS or Pulse network ATMs in the United States or internationally to:

Withdraw cash from your checking or savings account.
Transfer funds between your checking and savings account.
Check the balances of your accounts.

2. You may use your 24 Hour Teller ATM Card or Visa® Debit Card at Lake City Bank ATMs that accept deposits and loan payments to make your Lake City Bank personal loan payments by check or cash using a depository envelope.

Point-of-Sale Transactions

1. You may use your 24 Hour Teller ATM Card or Visa® Debit Card to pay for goods or services at merchants using the Pulse Point-of-Sale terminals, by drafting your primary checking account.

2. Your Visa® Debit card may also be used at any merchant accepting Visa® Debit cards to directly draft your primary checking account for payment of goods and services.

Electronic Checks

You may access your account(s) to purchase goods, pay for services, or get cash where a check (whether blank, partially completed, or fully completed and signed) is presented at a Point-of-Sale terminal or is mailed to a merchant or other payee or lockbox and later converted to an Electronic Payment.

Preauthorized Transfers (ACH)

1. Direct Payments. You can arrange to pay certain bills directly from your checking accounts. Bill payment is available only through the Personal Internet Banking Service.

2. Direct Deposits. You can arrange to receive certain automatic deposits from other companies (for example, Social Security payments or payroll) to your checking, savings or Variable Rate IRA accounts.

Within Lake City Bank Transfers (Internal Transfers)

You can arrange to transfer funds between your checking and savings accounts as well as make automatic payments to personal loan accounts.

Telephone Banking Service

Our Telephone Banking Service allows you to perform banking transactions on your personal accounts by telephone. The banking transactions you can complete by telephone are:

1. Transfer money between accounts, including lines of credit and personal loans;

2. Obtain account information for checking, savings, certificates of deposit, and personal loans.

Call Telephone Banking at 574-267-9100 or 800-722-5208.

Internet Banking Service

You may use the Internet to obtain account balances and transaction history, transfer funds between your checking, savings, lines of credit, installment loans and mortgage accounts. A short online enrollment process is required to establish Internet Banking Service.

Internet Bill Payment Service

Internet Bill Payment is available through the Personal Internet Banking Service.

Limitations on Transactions

Dollar Limits

You may withdraw up to $300 each business day (Honors Private Banking Clients may withdraw up to $1,000 each business day), if available in your account, from a Cirrus or Pulse ATM. You may use your Lake City Bank Visa® Debit Card to purchase goods and services up to $1,000 each business day (if available in your account) from merchants who accept theDebit cards. Any Point-of-Sale purchases decrease the amount of cash available in your account that day by the amount of the purchases. You will be notified if your card limit has been set at a lower amount.

Numerical Limits on Investment Accounts

You may only make six (6) withdrawals of any kind [of which no more than three (3) may be by check payable to third parties] from your Investment account in any statement cycle. Loan payments to this Bank are not included in these limits.

Computer System Inoperable

If for any reason the computer system is inoperable, your ability to make withdrawals each day will be limited to $100 from an Automated Teller Machine and $200 through a Point-of-Sale or Visa® Debit Card service. Access to both account information and the ability to transfer funds between accounts may be limited if, for any reason, the telephone or computer communications are disabled.

Administrative Charges

1. Automated Teller Machine (ATM) Transactions--We will not charge you more than the normal administrative charges applicable to a particular Lake City Bank account when you use a Lake City Bank Automated Teller Machine. Use of a CIRRUS or Pulse ATM owned by other banks may result in an administrative charge to your account. Refer to the current Personal Accounts and Services brochure for this information. There may be an additional terminal transaction fee imposed at individual terminals. This fee is to be posted near the machine or displayed on the screen when the transaction is initiated.

2. Point-of-Sale (POS) Transactions--There is no charge for POS transactions.

3. Telephone Banking Service--There is no charge for the Telephone Banking Service.

4. Personal Internet Banking Service--There is no charge for Personal Internet Banking Service.

5. Internet Bill Payment Service--There is no charge for Internet Bill Payment Service.

Documentation of Electronic Transactions

ATM and Point-of-Sale Transactions

You may request a receipt at the time you make any transaction to or from your account(s) using an automated teller machine or point-of-sale terminal. There is no requirement to provide a receipt to consumers for transactions of $15.00 or less.

Direct Deposits

If you have arranged to have a direct deposit made to your account at least once every sixty (60) calendar days from the same person or company, you may call us at (888) 522-2265 or use Telephone Banking or the Personal Internet Banking Service to find out whether or not the deposit has been made. Direct deposits will be posted to your account as of the effective date or the day the Bank receives it.

Pre-authorized (Direct) Payments

If pre-authorized payments from your account may vary in amount, the company you are agreeing to pay will tell you in writing ten (10) calendar days before each payment, when it will be made and how much it will be.

Periodic Statements

You will receive a monthly statement from us for your checking account. However, if your direct deposit is to your savings account, your statement will be mailed monthly. If you wish to confirm a direct deposit before you receive your statement, contact us by calling 888-522-2265, or by writing: Lake City Bank, Customer Assistance, P.O. Box 1387, Warsaw, IN 46581-1387, or by e-mail at lcbdirect@lakecitybank.com. IMPORTANT – Do not include your account number if contacting us via e-mail since e-mail is not a secure form of communication.

Telephone Banking Service

No written receipt is given for Telephone Banking Service transactions. However, the information is confirmed verbally by the system at the time the transaction takes place and is also denoted on the account statement.

Internet Banking Service

You will receive a periodic account statement describing each transaction made through the Personal Internet Banking Service.

Internet Bill Payment Service

You will receive a periodic account statement describing each transaction made through the Personal Internet Bill Payment Service.

Business Days

“Business Day” means every day the Bank is open to transact business except Saturday, Sunday, or federal holidays. The current business day ends at the earlier time of closing (when closed before 2:00 p.m.); 2:00 p.m., or later, as posted in each individual location.

Your Liability for Unauthorized Transactions and Why You Should Promptly Report Loss of Your Card

You agree not to give or make available your card and/or Personal Identification Number (PIN) or code to any unauthorized individual. Tell us AT ONCE if you believe your card or code has been lost or stolen or that someone entrusted with your card has transferred or may transfer money from your account without your permission. Contact us by calling 574-267-6144 ext. 6308 or 888-522-2265, or by writing: Lake City Bank Loss Prevention Department, P.O. Box 1387, Warsaw, IN 46581-1387, or by e-mail at lcbdirect@lakecitybank.com. IMPORTANT – Do not include your account number if contacting us via e-mail since e-mail is not a secure form of communication. Telephoning is the best way of keeping possible losses down, as all the money in your account, plus your maximum overdraft privilege, is at risk.

If you believe your 24 Hour Teller ATM Card or Visa® Debit Card has been lost, stolen, or misused in any way, and you tell us within two (2) business days after you learn of the loss or theft, you can lose no more than $50 if someone used your card and/or code without your permission.

If you do NOT tell us within two (2) business days after you learn of the loss or theft of your card and/or code, and we can prove we could have stopped someone from using your card and/or code without your permission if you had told us, you could lose as much as $500.

Also, if your statement shows transfers that you did not make, tell us at once. If you do not tell us within 60 calendar days after the statement was mailed to you, you may not get back any money you lost after the 60 calendar 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 a hospital stay) kept you from telling us, we will extend the time periods.

A charge may be assessed if we issue you a new 24 Hour Teller ATM Card account number and/or card, or a new Visa® Debit Card account number and/or card when your card is damaged, lost or stolen. This charge will appear on your monthly account statement as a card replacement fee. Refer to the current Personal Accounts and Services brochure.

In Case of Errors or Questions About Your Electronic Transactions

If you think your statement or receipt is wrong, or if you need more information about a transaction listed on the statement or receipt, please contact us as soon as you can.

Telephone us at 888-522-2265 or 574-267-9123, One Call Center

Or write us at: Lake City Bank, Loss Prevention Department, P.O. Box 1387, Warsaw, IN 46581-1387

Or e-mail us at: lcbdirect@lakecitybank.com

IMPORTANT – Do not include your account number if contacting us via e-mail since e-mail is not a secure form of communication.

We must hear from you no later than 60 calendar days after we sent the FIRST statement on which the problem or error appeared.

1. Tell us your name. IMPORTANT – Do NOT include your account number if contacting us via e-mail since e-mail is not a secure form of communication.

2. Tell us the dollar amount of the suspected error.

3. Describe the error or the transaction you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information.

If you tell us orally, we may require that you send us your complaint or question in writing within ten (10) business days.

We will tell you the results of our investigation within five (5) business days 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 to investigate your complaint or question. If we decide to do this, we will recredit your account within five (5) business days 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 ten (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 ninety (90) days to investigate your complaint or question. For new accounts, we may take up to twenty (20) business days to credit your account for the amount you think is in error.

If we decide that there was no error, we will send you a written explanation within three (3) business days after we finish our investigation. You may ask for copies of the documents that we used in our investigation.

Your Right to Stop Payment of Personal Pre-authorized Transactions, How to do it, and Our Liability for Failure to Stop Payment

Your Right to Stop Payment and How To Do It

If you have told us in advance to make regular payments out of your account(s), you can stop any of these payments. Here’s how:

Telephone us at: 888-522-2265 or 574-267-6144

Or write to us at: Lake City Bank, One-Call Center, P.O. Box 1387, Warsaw, IN 46581-1387

Or e-mail us at: lcbdirect@lakecitybank.com

in time for us to receive your request three (3) business days or more before the payment is scheduled to be made. Give us your name, the name of the person receiving the payment, the amount of the payment (exact dollars and cents), and date on which it is scheduled to be made. IMPORTANT – Do NOT include your account number if contacting us via e-mail since e-mail is not a secure form of communication. If you telephone us, we will require you to put your request in writing and get it to us within 14 calendar days after you call. We will charge you the amount in our current Personal Accounts and Services brochure for each stop payment order you give us. A stop payment order will remain in effect for six (6) months from the date of the stop payment order, or until payment of the debit entry has been stopped, oruntil you withdraw the stop payment order, whichever occurs earliest. Recurring payments require separate stop payments for each additional payment.

Our Liability for Failure to Stop Payment of Personal Preauthorized Transactions

If you order us to stop one of these payments three (3) business days or more before the transfer is scheduled, and we do not do so, we will be liable for your actual losses or damages proved.

Our Liability for Failure to Make 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 actual losses or damages. However, there are some exceptions. We will not be liable for the following:

1. If, through no fault of ours, you do not have enough money in your account to make the transaction;

2. If the transaction would go over the limit on your Lake City Bank overdraft privileges (if available);

3. If the ATM where you are making the transaction does not have enough cash;

4. If the ATM, Telephone Banking System, Internet Banking System, or Internet Bill Payment System was not working properly and you knew about the breakdown when you started the transaction;

5. If circumstances beyond our control (such as fire or flood) prevented the transaction, despite reasonable precautions that we have taken;

6. If court order or other legal process prevents us from making a transaction;

7. If you do not schedule an Internet Bill Payment at least seven (7) business days in advance to allow the Bank to process the payment and send it to the designated payee;

8. If you do not properly fill out the deposit or payment form;

9. If you do not provide the correct information when using the Telephone Banking Service, Personal Internet Banking Service, or Internet Bill Payment Service;

10. If the Bank is provided with incomplete or inaccurate information from external sources involved in processing the transfer, payment, or direct deposit.

There may be other exceptions to liability stated in the Terms and Conditions governing your specific type of account or service.

Disclosures Regarding Electronic "Wholesale Credit" Transactions

Subject to Uniform Commercial Code Article 4A PROVISIONAL PAYMENT: Credit given by us to you with respect to an automated clearing house credit entry is provisional until we receive final settlement for such entry through a Federal Reserve Bank. If we do not receive such final settlement, you are hereby notified and agree that we are entitled to a refund of the amount credited to you in connection with such entry, and the party making payment to you via such entry (i.e., the originator of the entry) shall not be deemed to have paid you in the amount of such entry.

Notice of Receipt of Entry

Under the operating rules of the National Automated Clearing House Association, which are applicable to ACH transactions involving your account, we are not required to give next day notice to you of receipt of an ACH item and we will not do so. However, we will continue to notify you of the receipt of payments in the periodic statements we provide to you.

Choice of Law

We may accept on your behalf payments to your account which have been transmitted through one or more Automated Clearing Houses ("ACH") and which are not subject to the Electronic Funds Transfer Act and your rights and obligations with respect to such payments shall be construed in accordance with and governed by the laws of the state of New York, unless it has been otherwise specified in a separate agreement that the law of some other state shall govern.

Regulatory Authority

Your rights in connection with electronic funds transactions are governed, in part, by state and federal consumer protection laws. If you have a question about your rights under these laws, or you believe that your legal rights have been violated, you may contact the Federal Reserve Consumer Help, P.O. Box 1200, Minneapolis, MN 55480.

If you have any questions regarding your account(s), we are happy to explain how they operate. Contact us at Lake City Bank, One-Call Center, P.O. Box 1387, Warsaw, IN 46581-1387; or call us 574-267-6144 or 888-522-2265, 7:30 a.m. – 6:00 p.m. Monday through Friday, 8:00 a.m. – 1:00 p.m. Saturday; or e-mail us at lcbdirect@lakecitybank.com. IMPORTANT – Do NOT include your account number if contacting us via e-mail since e-mail is not a secure form of communication.

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OVERDRAFT PRIVILEGES POLICY
(Non-Sufficient Funds)

It is the policy of Lake City Bank (hereafter known as the Bank) to comply with all applicable laws and regulations, and to conduct business in accordance with applicable safety and soundness standards.

The Bank is not obligated to pay any item presented for payment if your account does not contain sufficient collected (available) funds. Any discretionary courtesy payment by the Bank of any non-sufficient fund check or checks (or other items) does not obligate the Bank to pay any additional non-sufficient fund check(s) or item(s) or to provide prior written notice of its decision to refuse to pay any additional non-sufficient fund check(s) or item(s).

Overdraft Privileges will be extended to Personal Checking Accounts (primarily used for personal and household purposes), and Small Business Checking Accounts and Classic Business Checking Accounts, in good standing, which includes at least:

1. Bringing the account to a positive balance every twenty-four (24) calendar days or less.

2. There are no holds including garnishments, levies (whether legal or otherwise) outstanding currently or within a sixty (60) calendar day period.

3. The account has been opened at least sixty (60) calendar days.

4. The account holder or holders are not greater than 60 calendar days past due on any loan obligation to the Bank.

When your Personal Checking, Small Business Checking or Classic Business Checking Account is maintained in good standing, then the Bank will consider, as a discretionary courtesy and not a right or obligation, approving your overdrafts. This courtesy will generally be limited to: maximum of a $300.00 overdraft balance (including administrative charges) for “EASY Checking”Accounts, or $1,000.00 overdraft balance (including administrative charges) for all other eligible Personal Checking Accounts, or $2,000.00 overdraft balance (including administrative charges) for Small Business Checking and Classic Business Checking Accounts.

A non-sufficient balance may result from:

1. The payment of checks, electronic funds transfers, or other withdrawal requests. (These can occur in person, at the Automated Teller Machine, with a Point of Sale transaction, through Internet Banking, Internet Bill Payment or Telephone Banking.)

2. Payments (checks or automatic drafts) authorized by you.

3. The returned unpaid item(s) deposited by you.

4. The imposition of bank service charges.

For Personal Checking Accounts, the standard Overdraft Courtesy/Overdraft fee is assessed for each item paid and the standard Non-Sufficient Funds (NSF) charge is assessed for each item returned. For Small Business and Classic Business Checking Accounts, the standard Overdraft Courtesy/Overdraft/Non-Sufficient Funds (NSF) fee will be charged to your account when an item overdraws your account whether the item is paid or returned.

The total of your overdraft balance, including any and all bank fees and charges, is due and payable upon demand. The Depositor and each Authorized Signatory will continue to be liable for such amounts as described earlier under “Withdrawals” in this Agreement.

The Bank may refuse to pay an overdraft for you at any time, even though the Bank may have previously paid overdrafts for you. You will be notified by mail of any Overdraft Courtesy/Overdraft items paid or Non-Sufficient Funds (NSF) items returned that you may have; however, we have no obligation to notify you before we pay or return any item.

If multiple items are presented to the Bank for payment and there are not sufficient funds to pay all those items, the Bank has the right to decide the order of the items that will be paid and which items will be returned, if any. Bank may select any payment order at any time, which may include paying the largest items first such as a mortgage, rent or car payment.

Limitations: We may limit the number of accounts eligible for Overdraft Privileges to one account per household or business. The Bank reserves the right to not approve any overdrafts against your account until we can verify that your account is being maintained in good standing, as defined above. Additionally, the Bank reserves the right to exclude any accounts from Overdraft Privileges as deemed necessary by the Bank.

Account Fees: When the Bank pays an Overdraft Courtesy/Overdraft item or returns a Non-Sufficient Funds (NSF) item, a flat per-item administrative charge will be charged to your account as set forth in the current Personal Accounts and Services brochure.

Overdraft Privileges is a non-contractual service provided by the Bank which can be withdrawn at any time by the Bank. Certain restrictions may apply. If you choose not to participate in the program, you may “Opt Out” by providing written notification to the Bank at the following address: Lake City Bank, Attn: Deposit Operations, P.O. Box 1387, Warsaw, IN 46581-1387.

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PRIVACY NOTICE

This privacy policy applies to individuals who obtain or apply for a financial product or service primarily for personal, family or household purposes, or have done so in the past. This notice describes our policies and practices for collecting, disclosing and safeguarding “nonpublic personal information,” which may include financial or other customer information.Nonpublic personal information is any list, description, or other grouping of consumers (and publicly available information pertaining to them) that is derived using any personally identifiable financial information other than publicly available information. This notice replaces all previous statements of our consumer privacy policy, and may be amended at any time.We’ll keep you informed of changes as required by law.

Your privacy is a top priority.

We are committed to your privacy.We take great care to protect the security of your customer information and to control how it may be used.We will provide annual notification of our privacy policies and procedures to keep you informed about this issue.

The accounts and services you use are provided in a secure environment.

We use sophisticated technology and security measures to protect your customer information.We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information. Whether you conduct business with us at our banking offices, ATMs, by mail, telephone, electronic transfers, or the Internet, you can be confident that our security measures are appropriate to each of these servicing channels.

We are careful to limit access to your nonpublic personal information. Our employees have limited access to customer information based on their responsibilities.This access enables them to assist you in completing transactions, offer you additional financial services, and resolve any customer service issues that may arise.All employees are instructed to follow the confidentiality guidelines provided in our Code of Conduct, which is strictly enforced.

In addition, nonaffiliated third parties may be given access to customer information under certain circumstances.For example, a third party who provides a specialized service on your behalf (such as check printing) may access only the information necessary to perform that service.Additionally, in cases when you authorize us to provide your customer information to others, we limit access only to the specific information, and only for the purpose you have authorized.

We may disclose all of the information we collect, as described below to companies that perform marketing services on our behalf or to other financial institutions with whom we have joint marketing agreements.

We collect information in order to service and administer your customer relationship.

In the course of serving or administering your customer relationship, we collect a variety of non-public personal information, depending on the product or services we provide to you:

1. Information we receive from you, such as your name, address, social security number, assets, debt and income, as provided, for example, on a loan application or an account opening form.

2. Information about your transactions with us, such as balances, payment history, parties to transactions and account usage.

3. Information we receive from consumer reporting agencies and other third parties not affiliated with us, such as your creditworthiness, credit history, and real estate appraisals.

4. Medical information submitted as part of an insurance application or claim, which is used only for the specific purpose authorized by you or by law.

5. Information from other outside sources regarding their employment of, credit to, or other relationship with you, or verifying representations made by you, such as your employment history, loan or credit card balances.

6. Information collected from electronic banking products or services such as data collected electronically through Internet "cookies" (an information collecting device from a web server) or through ATM transactions.

7. Other sources in connection with providing you a financial product or service.

8. If a financial institution shares certain types of information with third parties, it must provide an opt out right. We have decided not to share your information in those ways. This means we have OPTED OUT ON YOUR BEHALF and you do not need to take further action.

Your customer information is shared only in limited ways and is carefully controlled.

We do not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law.

Thank you for this opportunity to serve you. Your relationship and trust are very important to us. Please be assured that we will abide by our policies and procedures to protect your information.

If you have any questions about this privacy policy, please call 1-888-522-2265, or e-mail us at lcbdirect@lakecitybank.com. IMPORTANT – Do not include your account number if contacting us via e-mail since e-mail is not a secure form of communication.

AMENDMENTS

We reserve the right to alter, amend, or rescind these Terms and Conditions at any time hereafter, but effective only upon 30 calendar days prior written notice if the change will result in increased fees or charges to you, increased liability, fewer types of electronic funds transfer services, or stricter limitations on the frequency or dollar amounts of transfers.

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