Account Agreement and Disclosure

I. ACCOUNT OWNERSHIP AND BENEFICIARY DESIGNATION

Account ownership types for consumers

These rules apply to your account depending on the form of ownership and beneficiary designation, if any, specified in our account records. We reserve the right to refuse some forms of ownership on any or all accounts. You agree, upon request by us, to provide us with documentation acceptable to us designating each authorized signer with respect to your account(s) and related services. Note: Because decisions concerning whether an account should be held in a particular capacity may have significant legal, tax, and estate planning consequences, consultation with your attorney or tax advisor is recommended.

Individual Account - This account is issued to one person who does not intend (merely by opening this account) to create any survivorship rights to any other person.

Joint Account - This account is owned by the named parties. Upon the death of any of them, ownership passes to the survivor(s), subject to our right to set-off and security interest in the account.

Custodian for Minor - This account shall be governed by the provisions of the California Uniform Transfers to Minors Act, as amended from time to time. The account is controlled by the custodian, but is owned by the minor. If the custodian resigns, is removed or dies, we will recognize the designated successor custodian. The custodian can designate a person or entity as a successor custodian to act when the current custodian resigns, or becomes legally incapacitated or dies. If no successor custodian is named, the California Probate Code will govern the determination of a successor custodian.

Totten Trust Account - A Totten Trust Account is an informal trust account, reflected on our records, but without a written trust agreement. One or more parties may open this account. The balance may be paid to any or all the account owners during their lifetime. When all account owners have died the account is owned by the surviving Totten Trust beneficiaries. A beneficiary must survive the death of all account owners to receive any interest in the account funds. When there is more than one surviving beneficiary, each beneficiary’s interest in the funds will be deemed to be in equal shares, unless otherwise expressly reflected in records of the Bank and as provided by applicable state law.

Trust & other Fiduciary Accounts - Legal title to the account is owned by the signing party(ies) as trustee, custodian, guardian, executor, administrator, conservator, or other fiduciary for the named beneficiary(ies) under a separate trust agreement, employee benefit plan, court order, or other fiduciary arrangement. Certain beneficiaries may, in turn, be acting as trustee or fiduciary for others. The signer(s) certify that they are authorized to manage funds in this account.

You may be asked to provide a copy of relevant pages of the trust agreement, execute a trustee’s certification of trust, or other documents.

Account ownership types for non-consumers

Business accounts may be available to both non-profit and for profit businesses and associations.

Corporate, partnership, limited liability or other statutory business entity account – These business accounts are established pursuant to statutory organizational requirements.

Fictitious Business Name Account - If the name in which the account is held is fictitious, the account holder represents he, she, or it has the right to use that name and has fulfilled all legal requirements for using and/or doing business under that name.

Organization Account - Such an account is issued in the name of a legal entity, such as a club or league. We reserve the right to require the governing body of the legal entity to give us a separate authorization telling us who is authorized to act on its behalf. We may honor such an authorization until we actually receive written notice of a change from the governing body.

Attorney/Client Trust Account - This account is opened under a program sponsored by the California State Bar. The account is an interest bearing checking account that is used to hold funds given to attorneys on behalf of their clients. These funds are either not going to be held by the attorney for a long period or are not of a significant amount to segregate them on behalf of an individual client. The interest earned on these funds, less service charges, are remitted by the Bank to the State Bar on a monthly basis and used to support legal services for indigents.

II. ACCOUNT PROVISIONS

These provisions supplement the signature card that is completed at the time an account is opened. The Bank’s Corporate Office is located in Riverside, California and therefore the relationship between us is governed by the laws of California, applicable federal laws and regulations, the account signature card(s), the policies of the Bank and the rules set out in this Agreement.

CUSTOMER IDENTIFICATION NOTICE UNDER THE USA PATRIOT ACT

Important information about procedures for opening a new account

To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.

What this means to you: When you open an account, we will ask for your name, address, date of birth, taxpayer identification number (TIN) and other information that will allow us to identify you. We may also ask to see a driver’s license or other identifying documents for account owners (and possibly authorized signers).

We may further ask you for specific information regarding the nature of anticipated activity, the sources of your funds, the purposes of transactions, the relationship you have with persons to whom you send funds and persons who send funds to you, the anticipated frequency of such transactions, the ultimate beneficiaries of funds you send and receive, and other questions that may help us clarify the nature and purpose of transactions. We may close accounts if we are unable to understand the purpose of the account, the structure of the organization, the authority of the signers, the documentation provided; or the general risk associated with the establishment of the account. We may elect not to disclose the specific reason for our action.

Owners for fiduciaries, partnerships, corporations, and fictitious business names or other business names may also be asked at account opening and from time to time to provide us with valid documentation of trust agreements (or certification of trust), court orders, partnership agreements, certificates of limited partnership, articles of incorporation, and filed fictitious business name statements, in addition to any other documents deemed necessary by us.

Account Signers

The individuals authorized to sign checks and/or give instructions to the Bank are so authorized by signing the Bank’s signature card or, in some cases, added as a signer by the account owner delivering to the bank correspondence or other documents acceptable to the Bank indicating the signers name and signature. Account signers are authorized to act until removed by the account owner. Any items, including checks or payment orders, signed prior to a signer being removed continue to be valid unless a stop payment is placed upon the outstanding items.

The owners of accounts are responsible to us for the actions of any account signers. We are authorized by you to cash or deposit all items payable to any account signer. We may accept an item for deposit to your account from anyone without questioning their authority to make a deposit into your account.

Any one of the authorized signers may sign items or withdrawal orders and give us instructions regarding the account. We do not offer accounts on which two or more signatures are required for a withdrawal or other instruction on an item or other charge. If you indicate on your signature card or other account opening documents that more than one signature is required, this indication is for your own internal procedures and not binding on us. We may attempt on occasion to enforce any multiple signature requirement, but we may cease to do so at any time without prior notice to you. We may act on the instruction or pay out funds from your account if the item or other charge is signed or authorized by (or otherwise authenticated as being the act of) any owner or by any authorized signer (including when acting alone). We have no liability to you if we do this.

The Bank’s procedures for verifying signatures on checks is not intended to be a substitute for good internal controls by you or to substitute for any insurance policy that protects you from embezzlement. Under our procedures, some checks drawn against an account may not be examined. We will not investigate or question a check that has the signature of an authorized signer, including a check that is payable to the person who signed the check, the name on the account, cash, the Bank or other payee. These automated procedures rely primarily on information encoded on each check or item in magnetic ink. In paying or processing an item, we may rely on the information encoded on the check’s magnetic ink character recognition (MICR) line, according to general banking standards, whether or not that information is consistent with the other information on the check. You will reimburse us for any loss or expense we incur because you issue or deposit an item containing altered or extra information in the MICR line. You agree that automated check processing is reasonable and that you have responsibility for preventing and reporting forgeries, alterations, and other unauthorized use of your account. We do not fail to exercise ordinary care by posting or paying checks without sight examination of checks.

We will not be obligated to monitor items deposited to, or drawn against, accounts held by a trustee or other fiduciary to determine whether a trustee or fiduciary is acting consistently with or in breach of any fiduciary duty. When we take an item for processing by automated means, “ordinary care” does not require that we examine each item. “Ordinary care” requires only that we follow standards prevailing in the area in which we are located and that do not vary unreasonably from the general standards followed by similarly-situated financial institutions. A mere clerical error, or an honest mistake, is not considered a failure of the Bank to perform any of our obligations. The Bank’s own policies and procedures are used solely for our internal reasons and do not establish a higher standard of care for the Bank other than that which is provided by applicable law or regulation.

Account Structure

We may structure your account to consist of two sub-accounts to take advantage of an interpretation of federal regulations. The sub-accounts, a checking account and money market account, will be used to allow for the transfer of funds between the accounts, subject to federal regulations. This structure will occur solely on our books and will not be visible to you, nor will it affect your account in any way. Also, this will not affect the FDIC coverage of your account.

ACH and Wires

We may offer you automated clearing house (ACH) origination and wire transfer services, subject to the terms of our separate service agreements. From time to time, you may be a party to an ACH entry or a wholesale (wire) funds transfer, which may be credited or debited to your account. Division 11 of the California Commercial Code governs wholesale (wire) funds transfers, as well as non-consumer ACH credit entries and those consumer ACH credit and debit entries that may be excluded from the Electronic Fund Transfer Act and its implementing Regulation E, referred to herein as “pay- ment orders”. The term payment orders includes payment orders as defined in Division 11 of the California Commercial Code. We reserve the right to choose any wire transfer system to affect your payment orders.

Provisional Credit. Credit given by us to you with respect to a payment order is provisional until we receive final settlement for such entry through a Federal Reserve Bank. If we do not receive final settlement, you are hereby notified and agree that we are entitled to a refund of the amount credited to your account in connection with the payment order, and the party (the originator of the entry) making payment to you will not be deemed to have paid you the amount of the payment order. Further, we will notify you of the receipt of payments in the periodic account statements we provide you. You acknowledge that we will not give next day notice to you of receipt of a payment order.

Form and Accuracy. All payment orders must be provided to us, which may be required to be in a form prescribed by us, presented either in-person, or by facsimile to the number approved by the Bank. If you will communicate payment orders using our online banking services, all payment orders must also be consistent with our separate online agreement.

You assume the sole responsibility for providing us with accurate transaction information in the form and format that we require. We are not responsible for confirming such information, or for failing to detect and reject duplicate payment orders. If you provide us with a payment order that is incorrect in any way, you agree that we may charge your accounts for the transaction whether or not the error could have been detected by us. We are not obligated to detect errors in your transfer or payment instructions.

Inconsistent Information. We advise you that any receiving financial institution (including us) of a payment order is entitled to rely on any account or bank number you have provided even though that account or bank number may identify a party different from the person or entity you have described by name in any transfer order.

Security Procedures.

Before requesting a payment order, you agree to review the Security Procedures and determine whether the Security Procedures will provide a commercially reasonable method for verifying whether a payment order is yours. As part of the review, you will consider the size, type, and frequency of payment orders you normally make or anticipate making, along with such other factors as you may deem relevant or appropriate.

Commercially Reasonable Procedures. If the size, type; or frequency of payment orders made by you change such that the Security Procedures in use by you no longer provide a commercially reasonable method of providing security against unauthorized payment orders, you agree to immediately notify us.

Supplemental Security Devices. We may offer to you or require you to use additional authentication tools or methods from time to time. If you choose not to implement supplemental authentication tools, your access to some or all of the services may be limited. The term “Security Devices” will include any supplemental authentication tools that are used by you. Your continued use of any modified Security Procedures will evidence your agreement that the modified Security Procedures are commercially reasonable for you.

You Are Responsible for Verified Payment Orders, Even if Unauthorized. If we act on a payment order in compliance with the Security Procedures, then you will be obligated on the payment order, and it will be treated as your payment order, whether or not authorized by you.

You Are Responsible for Payment Orders Actually Authorized. Regardless of whether or not we complied with the Security Procedures, any payment order received by us will be treated as yours and will bind you if, the payment order is delivered to us directly or indirectly by any authorized representative, or if you would otherwise be legally bound by the payment order, regardless of whether the payment order was erroneous in any respect or that any loss would have been prevented if we had complied with the Security Procedures.

Safeguarding. You will use and safeguard the Security Devices and Security Procedures. In connection with such safeguarding obligations, you will implement and maintain physical, technical, and administrative controls and procedures sufficient to prevent impermissible or unauthorized access to or use of the ACH and wire services, Security Devices or Security Procedures. You assume all risks associated with disclosure of any part of the Security Procedures, including a Security Device, to third parties, including employees. You agree to limit disclosures of Security Devices to those third parties, employees, or agents you will authorize to access the services on your behalf, or who have a specific need to know.

Delay or Refusal. We may delay or refuse to execute any payment order. We may do so for any reason or for no reason. We may provide notice to you of such delay or refusal, but are not obligated to do so. We may delay or refuse processing of a payment order, for example, if: (A) processing would or may exceed the available funds in your affected account; (B) the payment order is not authenticated to our satisfaction or we believe the payment order may not have been authorized by you; (C) the payment order contains incorrect, inconsistent, ambiguous, or missing information; (D) processing would or may involve funds which are subject to lien, security interest, claim, hold, dispute, or legal process prohibiting withdrawal; (E) processing would or may cause a violation of any laws or rules applicable to you or to us; (F) for any reason determined by us in our sole discretion; or (G) for any other reason under the Agreement.

Recall, Cancel or Amend. If you inform us that you wish to recall, cancel, or amend a payment order after it has been received by us, we may, but will not be required to, use reasonable efforts to assist you to do so; however, we shall not be liable for any loss, cost or expense suffered by you if we do not, or are unable to, amend, cancel or recall a payment order. You hereby agree to indemnify us against any loss, liability, claim, or expenses (including legal fees) that may incur in connection with assisting you to recall, cancel or amend a payment order, and you agree to immediately reimburse us for any monies paid by us associated with such losses, liability, claims or expenses incurred by us.

Screening. We may screen payment orders that would result in debits or credits to your account for compliance with applicable laws, rules, and regulations. Where we believe a credit to your account may be subject to being blocked or frozen under the OFAC administered sanctions laws of the United States or of sanctions laws of another country, or may be otherwise suspicious or illegal, we may block (or freeze) the funds and deny you access to them for a reasonable time sufficient to allow us to resolve the matter.

Amendments and Termination

We reserve the right to amend, modify, add to, or delete (collectively referred to herein as “change(s)”) the terms or conditions of this Agreement without prior notice to you, except as required by law. Your continued use of a service or an account constitutes your acceptance of the change. Changes may include a deletion, modification, or amendment of an existing term or the addition of a new term not otherwise contemplated when you entered into this Agreement or opened your account(s). Any change will take effect immediately, unless stated otherwise in any notice we make available to you. Unless otherwise expressly agreed by us, a notice of the changes, or a copy of the revised Agreement or schedule, may be sent to you to the address as it appears on our records or via the same delivery method as used for your account periodic statements.

Amounts Due The Bank; Notice Under Section 3311 of the California Commercial Code

If you have a dispute regarding an amount you owe to the Bank, you must direct all correspondence regarding the dispute to Provident Bank, Attention: Bank Operations, P.O. Box 59998, Riverside, CA 92517-1998. Any communications sent elsewhere or to someone else will be of no legal effect. Any checks or drafts delivered to Provident Bank containing “payment in full” language or similar notation intending that the payment is in full satisfaction of a disputed amount, the Bank will ignore the notation and will not agree to settle the dispute for the amount of the purported full satisfaction check, even by cashing the check, unless the Bank, specifically, through an executive officer, assents to such a settlement.

Appropriate Account Usage

Do not use a consumer account as a commercial account. If you do, it may be reclassified as a commercial account, and we reserve the right to change your consumer deposit account type to a commercial deposit account type.

Debit Cards

Provident Bank offers debit card access for checking account customers. The program is subject to the Bank receiving a completed application and the rules and regulations specified in the Provident Bank Card Agreement and Disclosure (Card Agreement). By use of the card, you agree to be bound by the conditions outlined here and in the separate Card Agreement. Your card cannot be used at ATMs and most POS terminals without a personal identification number (PIN). As that is the case, you must protect your card and PIN as you would care for cash, checks, or other important documents. DO NOT WRITE YOUR PIN ON YOUR CARD. Do not give your PIN to anyone, including Bank employees. Never allow anyone else to use or borrow your card and/or PIN. By use of the service, you agree that withdrawals made from your account by use of the card and the PIN together are authorized withdrawals.

Business Days

Our business days, also known as banking days, are Monday through Friday, excluding bank holidays or any other day we are authorized or required to be closed for business.

Cashier’s Checks

You do not automatically have the right to stop payment on cashier’s checks you receive from the Bank. In the event that a cashier’s check is lost, stolen or destroyed, please contact the Bank for the procedures to follow to obtain reimbursement or have the cashier’s check reissued. In general, you will have to complete a Declaration of Loss form, describing the cashier’s check and how it came to be lost, stolen or destroyed, and sign the Declaration of Loss under penalty of perjury. The Bank must then wait ninety (90) days from the date the cashier’s check was issued before we can process your claim. If ninety (90) days has already passed, then we will act on your claim within a reasonable time. If the cashier’s check is presented during the ninety (90) day waiting period, we may pay the item to a person entitled to enforce the cashier’s check. If this happens, the Bank will not pay on your claim. If we determine that any such instrument is presented by or on behalf of a person who may be a holder in due course or who may otherwise have the right to obtain payment of the cashier’s check from the Bank, we may, without notice to you, pay the cashier’s check, even though you may have paid us a fee to not honor the cashier’s check.

Change of Address, Name, or Authorized Signer

You agree to notify the Bank in writing, or if applicable, through online banking, of any change of address, including your email address (if provided), change of name, or change of authorized signers, which will be effective after we have had a reasonable time to react. We may also change the mailing address of record we have for you if we receive an address change notice from the U.S. Postal Service. The address is changed only for the accounts you specify and does not affect your other account relationships with us unless you specify that you want the address changed for those accounts as well. The Bank is only required to attempt to communicate with you using the address you have provided to the Bank. If sent statements or other Bank documents are returned indicating an incorrect address, we will hold all future statements but those statements, including the returned statement will remain available to you by contacting us. If we are not notified of a new address after a statement or other Bank documents are returned, you authorize us, at our discretion, to block your account until we can verify your correct address.

Check Conversion Into ACH Debit Entries

Some checks that you give to a merchant may be converted by the merchant into ACH debit entries, in which case they will be collected electronically and charged against your account. You will not receive a copy of the check with your monthly statement. You should treat the voided check with care because someone else who obtains possession of it could use the information to initiate additional debits against your account. A merchant who receives your check by mail should give you notice of the conversion and should destroy the original check. Whether your check is converted to an ACH debit at the point of sale or at the merchant’s lockbox, a description of the transaction will appear on your monthly statement from the Bank.

Closing or Suspending an Account

We may, at any time and in our sole discretion, close or suspend your account or any service we are providing to you. We may do so for cause or without cause. We may deliver the balance after an account is closed by any means chosen by us, including mailing a check for the balance by U.S. Postal Service, sent postage prepaid, to your last address as shown on our records. We may remit the balance by check payable to the name on the account as shown on our records, even if contrary evidence of account ownership has been given to us. We will provide you with notice before or after taking this action, unless prior notice is required by law, in which case we will provide you with such notice as is required by law.

Except to the extent otherwise agreed with us, you may close your account at any time upon notice to us, unless your account has a scheduled maturity date, subject to any applicable early withdrawal penalty. You will remain liable for the payment of accrued fees on the account and for checks in the process of collection, as well as any other obligations relating to actions or inaction prior to account closure. If you close an account, it may be subject to accrued or prorated fees or charges.

You agree to reimburse us immediately upon request for any overdrafts that arise after an account is closed, whether closed by you or by us.

We may honor any account holder’s or authorized signer’s request to close or suspend an account or transaction. At our discretion, we may require the signatures of all account holders and/or authorized signers before permitting the withdrawal of funds or the closing or suspension of an account.

As stated further in this Agreement, without limiting any of the foregoing, you authorize us, in our sole discretion, to “freeze” or place a hold on the balance in your accounts at the Bank if we suspect that there is irregular activity or we receive conflicting instructions involving your accounts. Should the Bank place a “freeze” on your accounts to reasonably investigate our concerns, you agree that we shall not be liable to you for any claims you might have, including but not limited to claims of wrongful dishonor.

We may dishonor any check, withdrawal order, item or transaction presented for payment after an account is closed or frozen by you or by us. At our option, we may honor checks, withdrawal orders, items or transactions after an account is closed or frozen, if the transaction was part of an electronic fund transfer system, if you fail to place a stop payment order for any outstanding checks or other items or if we otherwise elect to honor the transaction at our discretion. You shall remain responsible and liable for such checks, items, and transactions.

If an interest bearing account is closed for any reason before accrued interest is actually paid, interest may not be paid for the last interest period.

Collection Items

Handling an item as a “collection item” means that instead of accepting an item for deposit, we send the item directly to the issuer’s financial institution for payment. If the item is returned unpaid, we will return the item to you. We are obligated only to use ordinary care in collecting items on your behalf. You agree that the Bank has sole discretion to determine whether to accept an item for deposit or collection. If we do credit your account for a collection item, but do not receive final payment for an item or if the item is later returned, we may charge your account for the item plus any interest earned and associated fees. You agree to be responsible for all fees and charges assessed in the collection process as outlined in the Schedule of Fees. We may notify you that an item is not a deposit, but rather a collection item, as soon as practicable after we determine to handle the item as a collection item. This may include after you have left a branch office, for example. Items drawn on an institution located outside the United States are handled on a collection basis only. Collection items may be credited to your account, however you agree that availability of these funds may be delayed by us until we receive final payment. You waive any notice of nonpayment, dishonor, or protest regarding any items purchased or received by us for credit to your account or for collection. An item accepted for collection will not be deemed accepted for deposit for purposes of Regulation CC and is not governed by the Bank’s funds availability policy.

Credit Verification

From time to time we may obtain credit information about you from check or credit reporting agencies and/or other means. We may do so at the time you open an account, request a service, at any time while your account is open, or the service is available, or after your account or service is closed, or as otherwise permitted by law. For example, new accounts are subject to verification through a credit reporting agency (the Reporting Agency) and may be declined based in whole or in part on information obtained in a report from the Reporting Agency. You have a right under the Fair Credit Reporting Act to know the information contained in your credit file at the Reporting Agency. If we decline to open an account or otherwise provide deposit services, the Reporting Agency will have played no part in our decision and would be unable to supply specific reasons why we would have denied the account or services. You have a right to a free copy of your report from the Reporting Agency, if you request it no later than sixty (60) days after you receive notice of a declined account or service. In addition, if you find that any information contained in a report received by you is inaccurate or incomplete, you have the right to dispute the matter with the Reporting Agency. The Reporting Agency’s full name, address and phone number will be provided to you upon your written request to us.

Accounts not maintained in a satisfactory manner at the Bank are subject to closure by the Bank and may be reported to the Reporting Agency.

Compliance with Laws, Rules, and Regulations

You agree to comply with all laws, rules, and regulations applicable to you, to your activities and to your use of our services. This includes your agreement to comply with (to the extent applicable to you and your actions) federal anti-money laundering laws, sanctions laws administered by the Office of Foreign Assets Control, currency transaction or Bank Secrecy Act reporting, and recordkeeping requirements, and any state counterpart of the same. You must inform us about and disclose to us the identity of all persons who have a beneficial interest in you (if you are a non-natural person) and in your transactions.

You represent and warrant that you will not use, and agree not to use, your account or any service we provide to you for any unlawful purpose. For example, you represent, warrant, and agree not to accept or make payments in connection with the participation of any person (including yourself) in unlawful Internet gambling. You acknowledge that “restricted transactions” (as defined in the Unlawful Internet Gambling Enforcement Act and its implementing regulations) are prohibited from being processed through your accounts or your relationships with us. We reserve the right to deny transactions or authorization from merchants apparently engaging in the Internet gambling business or identifying themselves through card transaction records or otherwise as engaged in that or any other illegal or improper business. Further, we reserve the right to block or close any account which we believe may be involved in any such restricted transactions.

You represent and warrant that you are not, and you agree to take no action that would result in your being deemed or treated as, a money service business under any applicable state or federal law, except to the extent that you have specifically and in writing previously informed us that you are a money service business.

You covenant, and represent and warrant that the foregoing is true and correct, as of the opening of your account and again each time you make a deposit or withdrawal or otherwise use a service offered by us. You agree to provide us with evidence showing that you are in compliance with the above, reasonably satisfactory to us, upon our request.

Converting Account and Revoking Privileges

Without limiting our ability to close your account, we may alternatively convert your account to another type of account or revoke privileges when we consider it appropriate or necessary to do so. For example, we may revoke privileges, or convert your account to another account type if you make frequent transactions on a money market or savings account, if your account frequently has debits against uncollected funds, if your account has excessive deposit activity or if you use a personal account for business purposes.

Deposit of Unsigned Checks

The Bank may, at its discretion, accept an item for deposit that is not signed by the maker. You warrant that the payment represented by the item deposited has been authorized by the maker.

Deposited Checks Returned Unpaid

We submit items you deposit into your account to the institution upon which they are drawn on your behalf. At times, some items may be returned to us for various reasons, such as insufficient funds, stop payment, etc. If this happens, the amount of the returned item will be charged against your account, even if the item was delayed in the process of collection or is a late return. We may present the item to the maker’s bank an additional time without notifying you. You also authorize us to process and deliver to you a substitute check, photocopy or other image of a returned item in lieu of the original. If we are advised that an item is being returned unpaid, we may debit your account upon this notification rather than upon receipt of the actual item. We may also charge a fee for each item that you deposit that is returned to us.

Any item or other charge posted for credit to your account, including an item we cash for you, is subject to final payment by the payor or receiving bank (as applicable). Notwithstanding the foregoing, the Bank may debit your account for an item returned by “electronic or other means” at any time and notwithstanding the timing of the drawee bank’s midnight deadline. If we credit your account for an item or other charge, we may charge back that item or other charge at any time, if we do not receive payment for the item or other charge or if we receive notice that the item or other charge will not be paid. We act as a collection agent for you when we receive an item for deposit or when we cash an item for you, and are not responsible for the negligent actions or inactions of other financial institutions during the collection process. You agree that we can notify you of the return as part of the account statement or other communication method (including electronic communication).

We reserve the right to charge the applicable account if an item credited to the account is dishonored, returned or not paid even if we have not sent you notice of the dishonor, return or nonpayment. We also reserve the right to charge a dishonored, returned or unpaid item, or other charge against the applicable account even if the item or other charge is dishonored or returned late, the dishonor or return does not comply with applicable laws, rules or regulations (including any clearinghouse rules), or we could have made a claim for reimbursement on the item or other charge from the bank on which the item was drawn or from another bank. We may charge a dishonored, returned or unpaid item, or other charge against the applicable account even if the charge results in an overdraft.

We reserve the right to charge your account for any breach of warranty or other claim that a fraudulent item was deposited to your account, including, but not limited to, a claim that the item contains a forged signature (including a counterfeit item) or a forged endorsement, has been altered, is a remotely created check or is otherwise unauthorized.

In addition to charging your account for the amount of a returned item, you authorize us to charge your account for any returned item fee for each item returned unpaid, even if there is a delay in notifying you or in returning the unpaid item (or photocopy or other image) to you.

If you deposit an item that is payable in a foreign currency, that item could be returned any time in the future. Whenever that occurs, we may charge your account the amount that was credited plus any handling fees.

Deposited Items Lost in the Process of Collection/Presentment

When we process an item you have deposited or cashed we act only as your collecting agent. Your item may pass through several banks in the collection process. If the item is lost anywhere in the process of collection, we may reverse the credit we gave for the item and charge the item back to the account it was processed into or any account of yours. If we decide not to reverse the credit we gave you, you agree to assist us in finding, reconstructing, replacing and collecting lost items. For this purpose, we strongly recommend that you make photocopies of deposited items or are otherwise able to reconstruct deposited items.

Items drawn on your account may also be lost while in transit to us. You assume all risk of items being lost in transit. If this occurs, you agree that we may a ccept and charge an electronic image drawn on your account in lieu of the original items without prior approval unless a stop payment has been placed on the item.

Deposits to Account

You authorize us to accept deposits into your account from any source without questioning the authority of the person making the deposit. All deposits made are subject to verification, adjustment and collection. Deposit receipts are provided for convenience and do not necessarily reflect the correct amount being deposited. Credit for deposits is provisional. You authorize us to accept for deposit items that are payable to one or all owners but endorsed by only one, items payable to one or more owners but endorsed by affixing an endorsement stamp or items deposited without endorsement, in which case we are authorized to provide the endorsement. The collection process may involve other financial or governmental institutions. We are not responsible for the actions or inaction of these other institutions. We reserve the right to charge back an item for which we do not receive final payment or we receive notification that we will not obtain final payment.

You agree to endorse items that you deposit in the proper area on the reverse of the item within 1 1/2 inch of its trailing edge. You warrant that all endorsements on items that you deposit are genuine. You assume all liability for any improper endorsements. We may provide your endorsement if you fail to do so. You agree to reimburse us for any cost or expense we incur as a result of your failure to properly endorse items. If we receive an affidavit or similar document stating that one or more endorsements on an item deposited into your account is forged, that the item was altered, or that the item was otherwise unauthorized, we may freeze the amount or charge back the amount of the item(s) to any of your accounts without prior notice to you, even if such charge should overdraw the account. You agree that we have no obligation to investigate the accuracy of such affidavit or similar document. This right to charge your account applies without regard to (i) the timeliness of the return under applicable law, such as the midnight deadline, agreement or clearinghouse rule, (ii) whether or not we received an affidavit concerning the fraudulent item, and any defense to such claim that we may have.

We may refuse any deposit (whether in cash or by item or other charge) to an account, limit the amount of any deposit, or return all or any part of a deposit to you without prior notice, whether the deposit is attempted to be made by you or anyone else on your behalf. Without limiting the foregoing, the Bank may refuse to accept items for deposit that require the endorsement of individuals or businesses unknown to us. We may require that these items receive an endorsement guarantee from another financial institution prior to deposit into your account. We reserve the right to return to you any item or other charge that we receive for deposit to your account, if we decide not to handle that item or other charge. If we make this decision, we will send a notice by the next business day after we receive it.

Direct Deposits

The Bank will accept electronic payments into your account via the Automated Clearing House (ACH). If you have made an agreement with another party, such as an employer, insurance company, social security administration, etc., you will typically sign an agreement prepared by them. That other party is responsible to you for making the transaction for the correct amount, on the right day and into the correct account. ACH payments are provisional until we receive final payment. In some cases, this could mean that the transfer could be revoked up to sixty (60) days or later, such as if a consumer pays you by electronic means. If a transfer is revoked, we have the right to debit your account to recover the funds involved. If, in connection with a direct deposit plan, we deposit or credit any amount in your account which should have been returned to the state or federal government or any other third party for any reason, you authorize us to deduct the amount from your account or from any other account you have with us without prior notice and at any time, except as prohibited by law. You also authorize us to use any other legal remedy to recover the amount of our liability.

Dispute Ownership

If a dispute arises over control of or access to your account, or if we receive conflicting instructions from you (including any owner, joint account holder, contracting officer and/or other authorized signer on your account), or in the case of a corporate or partnership or association/LLC account, conflicting board resolutions or partnership authorizations or member instructions, we may require, but are not obligated to require, the signatures of all authorized signers on items, withdrawals, or other transactions. We may also, but are not obligated to, “freeze” the account until we get evidence satisfactory to us that either the dispute is resolved or there is general agreement on payment of the funds in the account.

Without limiting the foregoing, you also authorize us to do one or more of the following:

• We may ignore any instructions (such as an instruction by one account holder not to honor items or other withdrawal orders by another account holder) that conflict with the terms of the signature card for the account unless all account holders sign the instructions;
• We may reverse any debits or credits to the account in dispute, or other accounts with us, to correct what we believe in our sole discretion resulted from action taken to the disadvantage of one account owner, over another ;
• We may return items unpaid, marked “Refer to Maker” or otherwise at our discretion;
• We can close the account and issue a single cashier’s check for the available account balance jointly payable to all account owners, or to all signatories to the account and we may mail or deliver that check to any one of the account holders or signatories, or to the address of record;
• We may commence an action in interpleader, giving the disputed funds to a court so that it can decide who has the right to control the funds. We will not be liable to you for any costs, claims, damages, or other expenses that result from the payment or non-payment of items or other request for payment of the deposited funds. We will charge the account for our costs and expenses (including attorneys’ fees) in commencing an action in interpleader or may seek recovery of such costs and expenses from the funds deposited in the interpleader action;
• We may continue to pay items and other withdrawals when the instructions to do so are given to us by an owner of the account according to our records; and/or
• We can take any other action we believe to be reasonable under the circumstances even if the action is not listed here. These actions include but are not limited to any specific procedures that may be applicable under a law or regulation.

You agree to assume all liability for, and you agree to indemnify, defend, and hold us harmless from and against any and all losses, damages, claims, costs or expenses (including attorneys’ fees and costs) incurred by us as a result of any dispute that arises under this Section. In addition to the foregoing rights, you authorize us in our sole discretion to elect to close your accounts pursuant to this Agreement.

Electronic Communications

You agree that we may use electronic communication to enter into agreements and contracts between ourselves and you and otherwise to establish terms and conditions for products and services you receive from or through us. Electronic agreements may be provided to you through such things as hyperlinks or “click-through” agreements on our web site. Your consent to, or agreement with, the electronic communication in these circumstances may occur by you clicking “agreed” or similar terms, or by your subsequent use of a product or service, or otherwise as may be specified in the communication or as required by law (subject to any limitations set forth in the communication). Your signature and agreement may be obtained by us electronically and includes mouse clicks, key strokes, your use of passwords or other authentication systems, or as is otherwise set forth in the particular electronic communication.

You agree not to contest the authorization for, or validity or enforceability of, our electronic records and documents, or the admissibility of copies thereof, under any applicable law relating to whether certain agreements, files or records are to be in writing or signed by the party to be bound thereby. Records and “signed” documents, if introduced as evidence on paper in any judicial or other proceedings, will be admissible to the same extent and under the same conditions as other documentary business records. Upon our request, you agree to manually sign or place your signature on any paper original of any record or “signed” document which we provide to you containing your purported signature.

FDIC Insurance

Funds in your deposit accounts at Provident Bank are insured by the Federal Deposit Insurance Corporation (FDIC), an agency of the United States government. FDIC insurance applies only to accounts held in the United States and its territories. For the current FDIC coverage, call the FDIC at (877) ASK FDIC (877) 275-3342 or visit www.fdic.gov.

Faulty Check Stock

Checks you write may be converted into electronic images (truncated) during the check collection process and return process. If you elect to have your checks printed by a vendor that has not been approved by us, or you use check stock or features (e.g. security features) that cause critical data to disappear or be obscured upon truncation, or you make your check out in a way (e.g. using a lightly colored ink) that causes critical data to disappear upon truncation, you agree to bear the risk of loss. You also agree to bear the risk of loss if you use check stock that contains printing inaccuracies, faulty magnetic ink, faulty encoding, or duplicate serial numbers.

Fees

A schedule of fees associated with our personal and business deposit accounts is provided in our Schedule of Fees and in our Truth in Savings Deposit Account Disclosure. The schedule that applies to your account is part of the contract between you and us. You agree to pay the fees we charge, and you give us the right to collect any fees, as earned, directly from any of your account balances.

From time to time we may list fees for some non-account services (such as wires, cashier’s checks, travelers’ checks and so on) in the Schedule of Fees. Except as may be required by law, we may change non-account fees at any time without notice. You can get current information about non-account services and fees that apply at any of our banking offices.

FUNDS AVAILABILITY POLICY

Your Ability To Withdraw Funds

Our policy is to make funds from your cash and check deposits available to you on the first business day after the day we receive your deposit. Electronic direct deposits will be available on the day we receive the deposit. Once they are available, you can withdraw the funds in cash, and we will use the funds to pay checks that you have written.

For determining the availability of your deposits, every day is a business day, except Saturdays, Sundays, and federal holidays. If you make a deposit before 6:00 p.m. or such other cutoff time as may apply to your particular branch of account (or before 3:00 p.m. at one of our ATMs) on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit after these hours or on a day we are not open, we will consider that the deposit was made on the next business day we are open.

Longer Delays May Apply

In some cases, we will not make all of the funds that you deposit by check available to you on the first business day after the day of your deposit. Depending on the type of check that you deposit, funds may not be available until the second business day after the day of your deposit. The first $200.00 of your deposits, however, may be available on the first business day.

If we are not going to make all of the funds from your deposit available on the first business day, we will notify you at the time you make your deposit. We will also tell you when the funds will be available. If your deposit is not made directly to one of our employees, or if we decide to take this action after you have left the premises, we will send you the notice by the day after we receive your deposit.

If you will need the funds from a deposit right away, you should ask us when the funds will be available.

In addition, funds you deposit by check may be delayed for a longer period under the following circumstances:

• We believe a check you deposit will not be paid;
• You deposit checks totaling more than $5,000.00 on any one day;
• You redeposit a check that has been returned unpaid;
• You have overdrawn your account repeatedly in the last six months; or
• There is an emergency, such as failure of computer or communications equipment.

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 no later than the fifth business day after the day of your deposit.

Special Rules for New Accounts

If you are a new customer, the following special rules will apply during the first thirty (30) days your account is open.

Funds from electronic direct deposits to your account will be available on the day we receive the deposit. Funds from deposits of cash, wire transfers, and the first $5,000.00 of a day’s total deposits of cashier’s, certified, teller’s, traveler’s, and federal, state, and local government checks will be available 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 (and you may have to use a special deposit slip). The excess over $5,000.00 will be available on the ninth business day after the day of your deposit. If your deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, the first $5,000.00 will not be available until the second business day after the day of your deposit.

Funds from all other check deposits will be available on the ninth business day after the day of your deposit.

Holds on Other Funds (Check Cashing)

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.

Holds on Other Funds (Other Account)

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 availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available for withdrawal until the time periods that are described elsewhere in this agreement for the type of check that you deposited.

Headings/Terms

The headings in this Agreement are for convenience only and are not part of these terms.

Joint Accounts

Each joint account holder is jointly and severally liable to us for any and all overdrafts to the account. This liability applies whether or not the joint account holder signed the item or authorized the transaction causing the overdraft and regardless of whether the joint account holder received benefit from the transaction. Each joint owner of an account may withdraw any or all funds from the account, close the account, enter into special agreements with the Bank regarding the account, and stop payment on any check drawn on the account. Each joint owner guarantees the signatures of the other joint owner and authorizes the others to endorse checks for deposit if they are payable to any of the joint owners. Each joint owner also authorizes the Bank to exercise set-off and enforce its security interest in the entire joint account, even though only one of the joint owners is the debtor; these rights apply irrespective of who contributed funds to the joint account. Similarly, the Bank can enforce overdraft liability in the joint account against any joint owner individually. Garnishments against either or both joint owners are subject to the Bank’s right of set-off and security interest. Notice provided by the Bank to any one joint owner is notice to all.

Large Cash Withdrawals

We may require reasonable advance notice for large cash withdrawals. We may also refuse to honor a request to withdraw funds in cash from your account or to cash an item (including a cashier’s check or other official item) at a branch if we believe that the amount is unreasonably large or that honoring the request would cause us an undue hardship or security risk. We may require that such withdrawals be made at one of our cash vaults by an armored courier, acceptable to us and at your sole risk and expense. We are not responsible for providing for your security in such transactions. Rather than permitting a large cash withdrawal, we reserve the right instead to provide you with a cashier’s check for the amount requested.

Limitation on Time to Sue

Unless a shorter time is provided in another provision of this Agreement or required by applicable law, an action or proceeding by you to enforce an obligation, duty, or right arising under this Agreement or under applicable law with respect to your account must be commenced within one year after the cause of action accrues.

Limitation on Liability;

Hold Harmless and Indemnify

Except as otherwise stated in this Agreement or as specified by applicable law, we will be liable to you only for damages arising directly from our intentional misconduct or gross negligence. “Ordinary care” requires only that we follow standards that do not vary unreasonably from the general standards followed by similarly situated banks. Our policies and procedures are general internal guidelines for our use and do not establish a higher standard of care for us that is otherwise established by the laws governing your account. A mere clerical error or an honest mistake will not be considered a failure by us to perform any of our obligations.

Except to the extent limited by applicable law, we are not liable for loss, damage, harm or expense (Loss) from: (a) any inaccuracy, act or failure to act of any person not within our reasonable control; (b) the failure of other financial institutions to accept or perform in connection with items or other charges; or (c) your negligence or breach of this Agreement.

Our liability for any act or failure to act is limited to your direct Loss (and interest on that Loss, if required by law, at the average Federal Funds rate at the Federal Reserve Bank of New York for the period). Except if specifically imposed by statute that cannot be waived between parties, WE ARE NOT LIABLE FOR CONSEQUENTIAL, INDIRECT, INCIDENTAL, PUNITIVE OR SPECIAL DAMAGES, such as loss or damage from subsequent wrongful dishonor from our acts or omissions, even if we are aware of the possibility of the same.

In addition to any other rights we may have under this Agreement or any related agreement, or at law or in equity, and except as expressly limited by applicable law or regulation, you agree that you will indemnify, defend, and hold harmless the Bank and our directors, officers, shareholders, employees and agents, against any and all third party suits, proceedings, claims, demands, causes of action, damages, expenses (including reasonable attorneys’ fees and other legal expenses), liabilities and other losses (Indemnified Losses), that result from or arise out of: (a) the wrongful acts or omissions of you, or any person acting on your behalf (including without limitation your authorized processor, if any), in connection with your use of your accounts or services we offer to you, including, without limitation: (i) the breach by you of any provision, representation or warranty; (ii) the negligence or willful misconduct (whether by act or omission) of you, your customers, your authorized processor (if any) or any third party on behalf of you; (iii) any misuse of the account or services by you, or any third party within the control or acting on behalf of you; or (iv) the failure by you to comply with applicable state and federal laws and regulations applicable to you; (b) any act or omission of ours that is in accordance with this Agreement or instructions from you; (c) actions by third parties, such as the introduction of a virus that delay, alter or corrupt the transmission of information to us; or (d) any loss or corruption of data in transit from you or your authorized processor to us.

Monitoring, Recording, and Retaining

You authorize us (but we are not obligated) to monitor, record electronically and retain telephone conversations and electronic communications between you (including your purported authorized representatives) and us. Accordingly, you agree on behalf of yourself, and your employees and agents that we may monitor and record your telephone and electronic communications in connection with your account at any time, without further notice. You agree that we may produce the telephonic or electronic recordings or computer records as evidence in any proceedings brought in connection with the Agreement, and you hereby acknowledge the validity and enforceability of such telephonic or electronic recordings.

Notices

Except as otherwise provided in this Agreement, all notices and other communications by you to us shall be in writing and, addressed to:

Provident Bank Attention:
Bank Operations
P.O. Box 59998
Riverside, CA 92517-1998

or at such other address as we may specify in writing. Notices and communications to you may be mailed or made avail- able to you electronically at the statement, email or mailing address shown for you in our records, or on our website. Any notice or communication sent or made available by us to you will be deemed given and effective when sent or otherwise made available to you, or as otherwise stated in the notice or communication. Certain notices and communications may be provided to you by telephone, facsimile or other electronic transmission at the telephone number, facsimile number, or other location or number as shown in our records.

Any notice, instruction, or other communication sent by you to us will be effective when we have actually received and have had a reasonable time to act on the notice, instruction, or other communication. Notwithstanding anything to the contrary herein, we may rely on all notices, instructions, and other communications sent to us via facsimile or electronic transmission as though they are originals. Without limiting the foregoing, we are entitled to rely on any notice, instruc- tion, or other communication believed by us in good faith to be genuine or to have been signed or authorized by your authorized representative.

If there are multiple authorized signers, we may send or make available communications to any one or more of them (unless otherwise agreed by us). You assume the risk of loss in the mail or in electronic transit.

If we hold mail for you and a statement or other communication is not picked up within thirty (30) days, we may send it to you at the address shown in our account records or destroy it. If any statements and/or notices are returned to us by the Postal Service for any reason, we may hold subsequent statements and notices of every kind until we receive forwarding information from you, and we may destroy such statements and notices immediately.

Additional Electronic Notification Provisions
for Consumer Disclosures

Owners of consumer accounts have certain rights under law to receive consumer disclosures about their accounts in a non-electronic form, unless you affirmatively consent to the receipt of consumer disclosures electronically and have not withdrawn your consent. If you are a consumer account holder, we will not substitute electronic communications in lieu of written consumer disclosures unless your consent is first obtained electronically in accordance with applicable law. This restriction does not apply to all electronic communications from us to you, only those that include consumer disclosures under applicable law.

Notice of Withdrawal

In compliance with banking regulations, the Bank must reserve the right to require seven (7) days prior written notice of withdrawal from all interest bearing accounts, including savings, money market, and time deposit accounts. This restriction will not apply to demand deposit accounts.

Statement Review

The rights and obligations in this section are subject to those contained in Section VII concerning the Electronic Funds Transfer Act Disclosure for consumer accounts established primarily for personal, family or household purposes.

We will send or make available account statements to you monthly. Your statement will detail all of the transactions that have posted to your account during the statement cycle, including electronic transfers. If items are not returned with your statement, upon your request, the Bank will make a reasonable effort to promptly provide you with a copy or image of any item in our possession. Unless otherwise agreed, you waive any right to receive any original item after it is paid.

You must examine your account statement information and other account notices promptly after it is made available to you, and you agree to do so. You are responsible for examining your account statement whether it is made available to you in paper form or as an electronic communication. You agree to review your account statement as a fraud prevention measure. With respect to items paid from your account, when we make an account statement available to you, we are required to provide sufficient information to enable you to identify the items paid. If we describe the paid items by item number, amount, and date of payment, such information shall be treated as sufficient information for purposes of this Agreement. During your statement review, you agree to compare the transactions, which includes items posted to your account, against your own records, including the deposits and other credits you expected to have been made. If your statement is not available to you at the time it usually is, contact us right away. We can prepare a duplicate for you; there may be a charge for duplicate paper statements.

If you suspect that there is an error or omission in your account statement, or if you suspect that a paid item may have been forged or altered or is otherwise unauthorized, you must promptly notify the bank. If you fail to notify us within thirty (30) days of the date we first make your account statement available to you, then: (a) you will be precluded from asserting any unauthorized transactions, errors or discrepancies, including forged, altered or unauthorized items, against the bank and the transactions, errors or discrepancies will be considered properly payable or otherwise authorized; and (b) the bank will not be responsible for any unauthorized transactions, errors or discrepancies, including forgeries, alterations, or unauthorized items, even if you allege the bank failed to exercise ordinary care and even if you maintain proper controls over your items or accounts.

Prompt action on your part can prevent further losses. If you fail to notify us promptly of any unauthorized transaction, including any forged, altered, or unauthorized item within thirty (30) days after the statement is made available; you will be precluded from asserting against us a claim for any subsequent unauthorized use or transaction by the same wrongdoer(s).

Unauthorized transaction in this section includes a missing or diverted deposit, an alteration of a item, a forged or counterfeit item, an unauthorized debit, a missing or forged signature or endorsement, failure to credit interest or any other discrepancy.

Because you are in the best position to discover an unauthorized signature, an unauthorized endorsement, or a material alteration, you agree that we will not be liable for paying such items if you have not reported the unauthorized items to us within the time provided herein.

Business accounts have a limited time frame to return ACH debits. If the transaction is presented to the Bank as a CCD (Cash Concentration or Disbursement) the debit must be returned within 24 hours. A sixty (60) day return time frame is allowed on PPD (Prearranged Payment and Deposit Entry) transactions.

If you are a consumer account holder and suspect a problem with a substitute check, notify us of your suspicions. For these purposes, the terms “consumer” and “substitute check” are used as defined in Federal Reserve Board Regulation CC. See the “Substitute Checks and Your Rights” disclosure in this Agreement for information on rights you may have with respect to substitute checks. If you are a consumer account holder and suspect a problem with an electronic fund transfer to or from your consumer account, see the “Electronic Funds Transfer Act” disclosure in this Agreement for information on rights you may have with respect to these transfers.

Taxpayer Identification Number

We are required to obtain a taxpayer identification number (TIN) for each account you open or maintain with us. The TIN for an individual is usually a social security number (SSN). The TIN for a business is usually an employer identification number (EIN). The TIN for a sole proprietorship may be either a SSN or an EIN. We must obtain this number even if you are not required to file tax returns. This number is included on reports that we must file with state and federal tax authorities about interest we pay you.

U.S. persons, including resident aliens may be required to complete a Form W-9 to certify their TIN and backup withholding status. To establish that you are not a U.S. citizen or other U.S. person (including a resident alien individual); we may require you to (among other things) complete a Form W-8. We may report interest in cases where it is not mandated for us to do so. We are not responsible for your action or inaction in selecting or completing a form, and no information in these matters that may be supplied by us to you should be relied upon by you. In all tax matters, you should consult your own tax advisor. You agree to notify us and submit a new Form W-9 or W-8, as applicable, within thirty (30) days if any certification made on the form becomes incorrect.

If you fail to provide your TIN and certify that it is correct, or if you fail to certify that you are not subject to backup withholding, or if the IRS notifies us that you have furnished an incorrect TIN, then federal tax rules may require us to re-solicit your TIN and/or withhold a percentage of interest paid to you. We forward amounts withheld to the IRS. If there are any fines, penalties, or charges assessed upon us due to any incorrect name/TIN mismatch or error not caused by us, you agree to reimburse us for the fine, penalty, or charge, and we may charge your account for the same.

When an account earns interest, we may report the interest paid and the amount withheld to the IRS (and to the California Franchise Tax Board). You will receive a copy of the information reported to the tax authorities.

III. SPECIAL CIRCUMSTANCES

ARBITRATION; CHOICE OF FORUM; JURY TRIAL WAIVER

All past, present or future disputes or claims arising out of or relating to this Agreement, or your use of the Bank’s products and services, or the relationships that arise from this Agreement, your accounts or any use by you of our products and services, whether based in contract, tort or otherwise, shall be resolved by binding individual arbitration under the expedited procedures of the AAA Consumer-Related Disputes Supplementary Procedures--a supplement to the Commercial Arbitration Rules and Mediation Procedures of the American Arbitration Association (AAA) in effect at the time the claim is made. Neither party shall demand the arbitration of an action filed in or within the jurisdiction of small claims court or that party’s state’s equivalent court. But if a claim is transferred, removed or appealed to a different court, then such claim shall be subject to arbitration pursuant to this paragraph.

This arbitration provision shall be interpreted and enforced in accordance with the Federal Arbitration Act in Title 9 of the US Code. The filing fees and costs of the arbitrator shall be paid by the Bank. However, the parties shall each be responsible for and pay their respective costs, including attorneys’ fees, incurred by them in preparing and presenting their cases during the arbitration proceedings. The arbitrator shall be permitted to award fees and costs to the prevailing party. Arbitration hearings shall be conducted at a location that is within 50 miles of your residence at the time the arbitration is commenced, to be designated by the arbitrator, or at another location if mutually agreed. A single arbitrator will be appointed by the AAA and will be an attorney or a retired judge. The arbitrator shall have experience and knowledge in financial transactions. Any issue concerning whether or the extent to which a dispute or claim is subject to arbitration, including but not limited to issues relating to the validity or enforceability of these arbitration provisions, shall be determined by the arbitrator. Only a court, and not an arbitrator, however, shall determine the validity and effect of the class action and jury trial waivers below. All applicable limitations periods, whether contractual or statutory, and all other defenses relating to the timeliness of the assertion of a dispute or claim that otherwise would be applicable to an action brought in a court of law shall be applicable in any such arbitration, and the commencement of an arbitration under this Agreement shall be deemed the commencement of an action for such purposes.

WAIVER OF CLASS OR REPRESENTATIVE ACTION AND JURY TRIAL. EXCEPT AS MAY OTHERWISE BE RESTRICTED OR PROHIBITED BY APPLICABLE LAW, THE ARBITRATION SHALL BE BROUGHT SOLELY IN YOUR INDIVIDUAL CAPACITY AND SHALL BE SOLELY BETWEEN THE PARTIES TO THIS AGREEMENT. NO CLASS ARBITRATION OR OTHER REPRESENTATIVE ACTION SHALL BE PERMITTED, NOR SHALL THE ARBITRATION BE JOINED OR CONSOLIDATED WITH ANY OTHER ARBITRATION. TO THE EXTENT THIS WAIVER OF CLASS OR REPRESENTATIVE ACTION IS DETERMINED TO BE UNENFORCEABLE FOR ANY REASON, THEN THIS ENTIRE ARBITRATON PROVISION SHALL BE VOID AND UNENFORCEABLE; UNDER NO CIRCUMSTANCES SHALL THERE BE ANY CLASS, CONSOLIDATED OR REPRESENTATIVE ACTION IN ARBITRATION. YOU AND THE BANK HEREBY MUTUALLY WAIVE THE RIGHT TO TRIAL BY JURY OF ALL DISPUTES, CONTROVERSIES AND CLAIMS BY, BETWEEN OR AGAINST EITHER YOU OR THE BANK WHETHER THE DISPUTE, CONTROVERSY OR CLAIM IS SUBMITTED TO ARBITRATION OR IS DECIDED BY A COURT.

Judgment upon the award rendered in arbitration shall be final and may be entered in any court, state or federal, having jurisdiction. Any relief available in a court of law can be awarded by the arbitrator. Where mandatory arbitration is prohibited by law, the exclusive forum for any litigation arising out of or relating to this Agreement, your accounts or your use of the Bank’s products and services, or the relationships that arise from this Agreement or your use of the Bank’s products and services, shall be a court in Riverside County, California.

Nothing in this arbitration provision shall limit your or our right, whether before, during or after the pendency of any arbitration proceeding, to exercise any self-help remedies, such as set-off, or repossession and sale of collateral, or to obtain provisional remedies (including but not limited to injunctive relief or interpleader relief ). The exercise of such rights shall not constitute a waiver of the right to submit any dispute to arbitration. Except as provided in the Waiver of Class or Representative Action and Jury Trial section above, if any term of this arbitration provision is found to be unenforceable for any reason, it shall be severed and the remaining terms shall be enforced without regard to the invalid or unenforceable provisions.

This Agreement does not preclude you from informing any federal, state or local agency or entity of your dispute. Such agency or entity may be able to seek relief on your behalf.

YOUR RIGHT TO OPT OUT. IF YOU DO NOT WANT TO CONSENT TO THE TERMS OF THIS ARBITRATION PROVISION, THEN YOU MAY OPT OUT BY SENDING A WRITTEN REQUEST TO THE BANK WITHIN SIXTY (60) DAYS OF YOUR RECEIPT OF THIS AGREEMENT. YOUR REQUEST MUST BE MAILED TO THE BANK AT ATTENTION: BANK OPERATIONS, P.O. BOX 59998, RIVERSIDE, CA 92517-1998. IT MUST INCLUDE YOUR NAME, ADDRESS AND ACCOUNT NUMBER. OPTING OUT OF ARBITRATION SHALL NOT TERMINATE THIS AGREEMENT OR AFFECT ANY OTHER RIGHTS AND OBLIGATIONS YOU OR THE BANK MAY HAVE UNDER THE TERMS OF THIS AGREEMENT. IF YOU OPT OUT, YOU MUST OPT OUT OF ALL TERMS OF THIS ARBITRATION PROVISION. YOU MAY NOT OPT OUT OF ONLY CERTAIN TERMS.

Assigning a Deposit Account to a Third Party

The Bank is not required to accept an “assignment” or a “notice of security interest” in your account. We will not be bound by any attempt to pledge your account to someone else unless we acknowledge the assignment in writing. If we agree to accept an assignment, you release us from any liability to you as a result of our complying with the terms of such assignment. Any assignment that we acknowledge is subject to the rules and regulations contained in this Agreement and therefore you should supply your creditor with a copy of this Agreement. If we fail to comply with an assignment that we have agreed to in writing, you and your creditor will need to show that our failure was the sole cause of any loss of the creditor.

Circumstances Beyond the Bank’s Control

Notwithstanding any other provisions of the Agreement, the Bank shall not have any responsibility or liability for any failure, error, malfunction, or any delay in carrying out any of its obligations under the Agreement if such failure, error, malfunction; or delay results from events due to any cause beyond its reasonable control, including, without limitation, unavailability of any communications system, sabotage, fire, flood, explosion, acts of God, civil commotion, strikes, stoppages of labor or industrial action of any kind, riots, insurrection, war or acts of government, power or equipment failure (including that of any common carrier, transmission line or software), emergency conditions, adverse weather conditions or any other factor, medium, instrumentality, condition or cause not in the Bank’s control. We will not be liable or responsible for the acts or omissions of any other financial institution or any third party or for any inaccuracy or omission in a notice or communication received by the Bank from you, your agents, your authorized signers, other financial institutions, or any other third party. In addition, we shall be excused from failing to transmit, or delaying the transmission of, any transaction, if such transmittal would result in our having exceeded any limitation upon its intraday net funds position established pursuant to present or future FRB guidelines or are otherwise violating any provision of any present or future risk control program of the FRB or any rule or regulation of any other U.S. governmental regulatory authority. The Bank shall not be liable for any failure to perform any of its obligations under the Agreement if such performance would result in it being in breach of any law, regulation, requirement or provision of any government, government agency, banking or taxation authority in accordance with which the Bank is required to act, as shall be determined in our sole discretion.

Currency Transaction Reporting

The Bank Secrecy Act (BSA), a federal law, requires all finan- cial institutions to report currency transactions of more than $10,000 to the Financial Crimes Enforcement Network (FinCEN). In addition, we may report to FinCEN multiple cash transactions which together total more than $10,000 in any one day. In order to better comply with the law, we may maintain a log of all sales of bank checks or drafts, cashier’s checks, money orders, or traveler’s checks for $3,000-$10,000 in currency. We may also report to the FinCEN or other gov- ernment agency transactions that may be structured to avoid the reporting requirement and other transactions that appear to involve illegal activity. In order to satisfy BSA requirements, we may, and, in many cases, must request certain information about the individual presenting the transaction, as well as the organization or individual for whom the transaction is being conducted. This includes the individual’s/organization’s full name, permanent street address, social security number, iden- tification number (such as a driver’s license or passport), date of birth (if applicable), and business, occupation or profession.

Death or Incompetency of a Depositor

You agree to notify us promptly if any owner or authorized signer on your account dies or is declared incompetent by a court. Until we receive such notice in writing, and have a reasonable opportunity to act on it, we may continue to honor items drawn on your account by the authorized signer(s). We may freeze your account(s) and refuse to accept deposits when an owner dies or is declared incompetent until we are certain that we know the identity of the proper successor or appointed representative.

If any regular monthly income, including salary, pension, Social Security and Supplemental Security Income (SSI), payable to the deceased owner is credited to the account after the date of death, we may debit the account for this income and return the funds to the payor.

Legal Process

If we are served with a subpoena, tax levy, writ of attachment or execution, restraining order or other legal process that we believe in good faith is valid and applies to your account, including if we are served at our designated central location, the Bank may, and in most instances must, comply with the legal process, including legal process issued from another state or jurisdiction. We may charge you a fee for handling such process as indicated in our Schedule of Fees. You agree to pay our fees and expenses for research and copying of documents and all other expenses, including administrative expenses, we incur in responding to any legal process related to your account. These may include attorneys’ fees. You authorize us to deduct these fees and expenses from any of your accounts without prior notice to you. You agree to indemnify, defend, and hold us harmless from any and all action, including wrongful dishonor, claims, liability, losses, costs and damages associated with our compliance with any legal process that we believe to be valid.

Unless prohibited by law, we will notify you by phone and/or mail when we receive a legal process related to your account as long as it remains open. If we receive a legal process after your account has been closed, we may or may not notify you, however, we will still comply with the legal process to the extent required for a closed account.

We may accept and act on legal process served to us in person, by mail or by facsimile transmission.

If required to remove funds from your account, depending on the type of order, we either immediately deliver the funds or property or hold them for a legally required period, usually no longer than ten (10) days but can be as long as twenty-one days depending on the legal process. We do not pay interest on funds that are held due to the legal process. Any legal process requiring us to attach, garnish, or turn over your funds shall be subject to the Bank’s right of set-off and security interest in the account. We are not liable to you for not paying items because we have withdrawn funds from your account or in any way restricted your access to funds because of a legal process or our set-off.

Order Transactions are Posted to Your Account

There are basically two types of transactions in your account: credits or deposits of money into your account, and debits or payments out of your account. It is important to understand how each is applied to your account so that you know how much money you have and how much is available to you at any given time. This section explains generally how and when we post transactions to your account.

Credits. Most deposits are added to your account when we receive them. For some checks you deposit, only $200.00 will be made available at the time of deposit; the balance will be available two (2) business days later. There may be extended holds on checks over $5,000.00 or if you are a new customer. Thus, your available balance may not reflect the most recent deposits to your account. For details on the availability for withdrawal of your deposits, see the section of this Agreement entitled “Funds Availability Policy.” Debits. There are several types of debit transactions. Each type of debit transaction is described generally below. Keep in mind that there are many ways transactions are presented for payment by merchants, and the Bank is not necessarily in control of when transactions are received.

• Checks. When you write a check, it is processed through the Federal Reserve system. We receive data files of cashed checks from the Federal Reserve each day. The checks drawn on your account are compiled from these data files and paid each day. We process the payments in check number order, with lower numbered checks, posting before higher numbered checks.
• ACH Payments. We receive data files every day from the Federal Reserve with Automated Clearing House or ACH transactions. These include, for example, automatic bill pays you have signed up for. Files are posted in the order received. Within each file we will post the credits (deposits) before debits (withdrawals).
• Point of Sale (POS) Debit Card Transactions (PIN). These are transactions where you use your debit card and you enter your PIN number at the time of the sale. They are similar to ATM withdrawals because money is usually deducted from your account immediately at the time of the transaction. However, some POS transactions are not presented for payment immediately; it depends on the merchant.
• Point of Sale (POS) Signature Debit Card Transactions. These are transactions where you make a purchase with your debit card and you do not enter your PIN but you are instead asked to sign for the purchase. In these situations, the merchant may seek prior authorization for the transaction. When that happens, we generally place a temporary hold against the available funds in your account. We refer to this temporary hold as an “authorization hold,” and the amount of the authorization hold will be subtracted from the funds available for you to use or your “available balance”, which is described in the section titled Your Account Balance. Authorizations are deducted from your available balance but not your current balance (which is also described in Your Account Balance section) as they are received by us throughout each day. At some point after you sign for the transaction, it is processed by the merchant and submitted to us for payment. T his can happen hours or sometimes days after you signed for it, depending on the merchant and its processing company. These payment requests are received in real time throughout the day and are posted to your account as they are received. Please note: the amount of an authorization hold may differ from the actual payment because the final transaction amount may not yet be known to the merchant when the authorization request is submitted. For example, if you use your card at a restaurant, a hold will be placed in the amount of the bill presented to you, but when the transaction posts it will include any tip that you may have added to the bill. This may also be the case where you swipe your debit card at gas stations and hotels and other retail establishments. We cannot control how much a merchant asks us to authorize, or when a merchant submits a transaction for payment.

This is a general description of how certain types of transactions are posted. These practices may change and we reserve the right to pay items in any order we choose as permitted by law.

We may receive multiple deposit and withdrawal transactions on your account in many different forms throughout each business day. This means that you may be charged more than one overdraft fee if we pay multiple transactions when your account is overdrawn.

The best way to know how much money you have and avoid paying overdraft fees is to record and track all of your transactions closely.

IF YOU DO NOT UNDERSTAND THIS AGREEMENT OR HAVE ANY QUESTIONS, PLEASE CONTACT US AT (800) 442-5201 MONDAY THROUGH FRIDAY, 8 AM TO 6 PM AND SATURDAY, 10 AM TO 2 PM PACIFIC STANDARD TIME.

Overdraft Practices

This Overdraft Practices section describes the circumstances when we will pay overdrafts in your account and charge you a fee. “Overdraft” generally means there is not enough available balance in your account to pay for a transaction. However, for purposes of one-time debit card transactions only, “Overdraft” means there is not enough of a current balance in your account to pay for the transaction. Refer to Your Account Balance below for an explanation of “current” and “available” balance.

Please note that for one-time debit card transactions, you must affirmatively consent to this Overdraft coverage. Without your consent, we may not authorize and pay a one-time debit card transaction that will result in insufficient available funds in your account.

If we pay for an Overdraft, except for an Overdraft which results from a one-time debit card transaction where you have not consented to this Overdraft coverage or which results from an ATM transaction, we will charge a fee. The fee is described in our Schedule of Fees, which is updated periodically.

The following is important information regarding your account balance, how transactions are posted to your account, and when an overdraft fee will be charged. You should read these disclosures carefully. If you have questions, please see a branch representative or call (800) 442-5201.

Your Account Balance. Your account balance has two kinds of balances: the “current” balance and the “available” balance.

Both can be checked when you review your account online, at an ATM, by phone, or at a branch. It is important to understand how the two balances work so that you know how much money is in your account at any given time. This section explains current and available balances and how they work.

Your Current Balance is the amount of money that is in your account at any given time. It reflects payment transactions that have “posted” to your account, but not payment transactions that have been authorized and are pending. It also reflects the full amount of all deposits, even though some portion of a deposit may be on hold and may not be available to you. Thus, while the term “current” may sound as though the number you see is an up-to-date display of what is in your account that you can spend, that is not always the case. Any holds for purchase transactions, holds on deposits, or other checks, payments and fees that have not yet posted will not appear in your current balance. For example, if you have a $50.00 current balance, but you just wrote a check for $40.00, then your current balance is $50.00 but it does not reflect the pending check transaction. So at that point, you actually have $50.00, but you have already spent $40.00.

Your Available Balance is the amount of money in your account that is available to you to use. The available balance takes into account things like holds placed on deposits and pending transactions (such as pending debit card purchases) that the Bank has authorized but that have not yet posted to your account. For example, assume you have a current balance of $50.00 and an available balance of $50.00. If you were to swipe your debit card at a restaurant to buy lunch for $20.00, then that merchant could ask us to pre-authorize the payment. In that case, we will put a “hold” on your account for $20.00. Your current balance would still be $50.00 because this transaction has not yet posted, but your available balance would be $30.00 because you have committed to pay the restaurant $20.00. When the restaurant submits the bill for payment (which could be a few days later), we will post the transaction to your account and your current balance will be reduced by $20.00.

Available balance is used to determine when your account is overdrawn. The following example illustrates how this works:

• Assume your current and available balances are both $50.00, and you swipe your debit card at a restaurant for $20.00. A hold is placed on your account, so your available balance is only $30.00. Your current balance is still $50.00. Before the restaurant charge is sent to us for processing, a check that you wrote for $40.00 clears. Because you have only $30.00 available (you have committed to pay the restaurant $20.00), your account will be overdrawn by $10.00, even though your current balance is $50.00. In this case, we may pay the $40.00 check, but you will be charged an uncollected funds fee. That fee will be deducted from your account, further reducing the balance.

It is very important to understand that you may still overdraw your account even though the available balance appears to show there are sufficient funds to cover a transaction that you want to make. This is because your available balance may not reflect all your outstanding checks and automatic bill payments that you have authorized, or other outstanding transactions that have not been paid from your account. In the example above, the outstanding check will not be reflected in your available balance until it is presented to us and paid from your account.

In addition, your available balance may not reflect all of your debit card transactions. For example, if a merchant obtains our prior authorization but does not submit a one-time debit card transaction for payment within three (3) business days of authorization (or for up to thirty (30) business days for certain types of debit card transactions), we must release the authorization hold on the transaction. The available balance will not reflect this transaction once the hold has been released until the transaction has been received by us and paid from your account.

Power of Attorney

Under certain types of account ownership, you may authorize another person as your agent and attorney-in-fact to act on the account (agent). You shall be bound by and responsible for the actions of your agent, even if the agency relationship is not indicated on the item, withdrawal order or other instruction. Prior to accepting the authority of your agent, we may require the appointment to be in a form satisfactory to us. Unless prohibited by law, we may reasonably refuse to honor a power of attorney or agency that you grant to others for any reason. We may require you or your agent to present the original form. In some cases, we may require that the agent confirm in an affidavit that the powers have not been revoked or terminated. We may continue to rely on the instructions and actions of your agent until we receive written notice in accordance with applicable law and this Agreement that the agent’s authority has been terminated, and we have had time to act upon it. You must tell us of any changes involving the power of attorney. We will not be liable to you or anyone else if we, in good faith and without actual knowledge that the power of attorney is deficient or has terminated for any reason, act on the written instructions of your attorney-in fact. We may charge you a fee to cover our costs to review any power of attorney document other than the form we provide.

Remotely Created Checks and Electronic Items

A remotely created check is an item not signed by the customer that is created by a third party under the purported authority of the customer for the purpose of charging the customer’s account with a financial institution. A remotely created check is also known as a demand draft. A remotely created check must contain the customer’s account number and may contain the customer’s printed or typewritten name, a notation that the customer authorized the draft, or the statement ‘no signature required’ or words to that effect.

If you voluntarily give information about your account (such as our routing number and your account number) to someone and authorize them to draw against your account, we may charge your account and pay any items, including remotely created checks initiated by the person to whom you gave the information. You also agree that we may pay an electronically created item even though the item was not created from an original paper check, whether presented in the form of a remotely created check or an electronic item. You authorize us to continue to honor items or debits from a payee previously authorized by you, until you instruct us to cease to do so, whether or not the payee is acting within the scope of your initial authorization, subject only to such liability as may be imposed upon us by law. If you want us to stop honoring items from a payee previously authorized by you, you must tell us in writing. Until you notify us that such items are not authorized, we can continue to pay them and will not be liable to you even though the items are not in accordance with any authorization you may have given.

This does not, however, obligate us to honor remotely created checks or similar items or entries. We may refuse to honor remotely created checks or similar items or entries without cause or prior notice, whether or not we have honored or dishonored similar items or entries previously.

You agree that we are under no obligation to verify whether the name and account number shown on the remotely created checks are consistent. If any information on a remotely created check is incomplete, inaccurate, or in error, you agree that we may, at our sole discretion, either pay the remotely created check and charge your account for the item as drawn or refuse to honor the remotely created check and, without prior notice to you, return the item unpaid. You further agree to indemnify and hold the Bank harmless for losses resulting from our honoring or dishonoring any such debit.

Research on Your Behalf

Occasionally, you may need us to do special research or photocopying for you (for example, if you need copies of your paid checks for tax reasons, and we must photocopy them from our image records). If your request requires us to do extensive work, we will charge you for both the clerical time involved as well as the cost for copies of the items requested. If you ask us to we will estimate theses costs for you before we start.

Reserve Account

You agree that you will, if requested by us at any time, establish one or more reserve accounts to be maintained with us in type (including time deposits) and amount satisfactory to us, to serve as collateral for and to secure your obligations to us under the Agreement. We may restrict or prohibit your access to any reserve account(s) and the funds on deposit in them, and we may hold such accounts following termination of the Agreement for a period of time sufficient to protect us against loss. We may increase or decrease the required reserve account amount from time to time, upon notice to you and you agree to provide immediately available funds to cover a reserve amount requested by us. In addition, we may transfer funds from another account of yours, or use funds payable to you or owed by us to you under the Agreement, and credit such funds to a reserve account if a deficiency exists between the available funds in your reserve account(s) and the amounts specified by us as the required reserve amount.

Right of Set-Off

The law provides that we may apply funds on deposit in your accounts to satisfy any debt, including fees and charges, owed to us that is not paid when due. If you ever owe the Bank money as a borrower, guarantor, or otherwise, and it becomes due, the Bank has the right under the law, called “set-off ”, and under this agreement (by which you grant the Bank a security interest in your deposit account) to use the money from your account to pay the debt, even if the withdrawal results in an interest penalty, or the dishonor of checks. In the case of a partnership or joint account, each partner or joint owner agrees that the Bank may use the money in the account to satisfy any one of their individual obligations. Similarly, each partner or joint owner agrees that the Bank may use the money in their individual accounts to satisfy obligations in the joint account or partnership account. If your account is a checking or money market account and if we exercise our right of set-off, our duty to pay any items presented for payment on your account during the business day preceding the day on which the set-off occurs may be terminated, and you agree that we may return those items unpaid. If we do return items, we also will charge you an Insufficient Funds fee for each returned item. See the Schedule of Fees. We will not be liable for the dishonor of any item or draft when the dishonor occurs because we charge and deduct an amount you owe us from your account. You agree to hold us harmless from any claim arising as a result of our exercise of our right to repayment. The security interest granted by this Agreement is consensual and is in addition to the Bank’s right of set-off. However, the set-off and security interest may not apply to your account if it is an IRA, the debt is created by a consumer credit transaction under a credit card plan, or the debtor’s right of withdrawal arises only in a representative capacity. If we use funds from a time deposit account, the funds withdrawn are subject to the early withdrawal penalty. After we exercise this right, we will mail a notice to the address you provided us for your account.

Security Interest

You grant us a security interest in your accounts to secure the repayment of any obligation that you incur under the Agreement. The security interest provided under the Agreement is in addition to any other security interest we may have in your accounts or other assets. This security interest will survive termination of the Agreement.

Severability

If any provision of this Agreement is determined to be void or invalid, the remainder of the Agreement shall remain in full force and effect. No provision of this Agreement shall be deemed to deny (and any term to the contrary is modified so as not to deny) protections, rights or privileges that under state or federal law are required to be made available to consumers or to consumer accounts, except that any modification of your protections, rights and privileges under this Agreement will be effective to the extent (but only to the extent) that the relevant state or federal law allows us and you to agree to modify them.

Unclaimed, Inactive, or Abandoned Accounts

The funds in your account may be transferred to the appropriate state if no activity occurs in the account within the time period specified by state law.

We may consider accounts with no activity for a requisite period to be dormant. We may, but are not obligated to, try to contact you before we classify the account as dormant. A dormant account will continue to be charged a normal monthly service charge. We may, but are not required to, hold statements on accounts that are in a dormant status until the account has been removed from dormant status. You authorize us to, at our discretion, refuse to permit withdrawals from an account that has become dormant until we are satisfied that we are dealing with the true owner or authorized signer of the account.

If an account or other property is inactive for more than three years (or other escheat period or as required by escheat law as may apply to the account or property), we may comply with what we in good faith believe to be any legal requirement to turn the balance over to the state of California or to another jurisdiction. To the extent required by law, we will send a notice to your last known address before we turn your account or other property over to the state. If your mail has been returned to us as undeliverable, we may not send you any notice. If you discover that an account of yours has been turned over to the state, you may reclaim your funds by submitting proof of ownership to the State Controller’s office in Sacramento or to such other comparable authority as may be responsible for escheated funds.

Waivers

We may delay enforcing our rights under this Agreement without losing them. Any waiver by us shall not be deemed a waiver of other rights or of the same right at another time. You waive diligence, demand, presentment, protest and notice of every kind, except as otherwise set forth in this Agreement.

Withdrawals

Unless otherwise clearly indicated to the contrary, any one of you who signs in the space designed for signatures on the signature card, including any authorized signers and agents, may withdraw or transfer all or any part of the account balance at any time. Withdrawals will first be made from collected funds, and we may, unless prohibited by law or our written policy, refuse any withdrawal request against uncollected funds, even if our general practice is to the contrary. We reserve the right to refuse any withdrawal or transfer request, which is attempted by any method not specifically permitted, which is for an amount less than any minimum withdrawal requirement, or which exceeds any frequency limitations. We may limit the amount of cash that can be withdrawn each day. Even if we honor a nonconforming request, repeated abuse of the stated limitation may eventually force us to close this account. Additional withdrawal limitations may be disclosed elsewhere.

IV. MISCELLANEOUS INFORMATION REGARDING CHECKS

The following information concerns checks issued by you on your account or deposited by you into your account.

Checks Presented in Person for Payment by a Non-Account Holder

If an item drawn against your account is presented for payment in person for payment by a payee who is not an account holder of the Bank, the Bank may charge a fee to the person presenting the check as a condition for cashing the check. See Schedule of Fees. The Bank may also require identification acceptable to the Bank and not prohibited by law, including a fingerprint of the person presenting the check or other fraud prevention methods. You agree that the Bank may refuse to honor payment for checks presented for payment in person by a non-account holder, if the person refuses to pay the fee or provide the identification requested by the Bank. You agree that none of the foregoing will be deemed to be wrongful dishonor by us.

Endorsements

You warrant that all endorsements on items deposited to your account are genuine and further warrant that you are authorized to negotiate and/or deposit any items that contain no endorsements. We are authorized to supply your endorsement to any item taken for collection, payment, or deposit to your account. Also, we are authorized to collect any unendorsed item made payable to you without first supplying your endorsement, provided the item was deposited to your account, but may, at our option, require your personal endorsement prior to accepting an item for deposit.

We may require that each payee personally endorse any items, including government checks, insurance company items, or other special types of items. You agree to indemnify, defend, and hold us harmless from and against any and all losses, damages, claims, costs or expenses (including attorneys’ fees and costs) incurred by us in connection with your failure to endorse an item exactly as it is drawn or for any item that is alleged to have a forged, missing or unauthorized endorsement.

To the extent legally permitted, each co-owner of an account appoints the other co-owner as his or her attorney-in-fact with full power to endorse the name of any co-owner on any item for deposit, or to deposit without endorsement any such item, into the account or cash the item.

There are rules regarding both how you endorse checks that you ask us to cash or deposit and what you may place or have preprinted on the back of checks that you purchase for your own account.

You must endorse checks in the area that extends 1-1/2 inches from the trailing edge of the back of the check. The trailing edge is the left side of the check when you look at it from the front. If your endorsement obscures the Bank’s endorsement, you will be liable for checks that are returned late and unpaid.

You must also confine information that you place or have preprinted on the back of your checks to the area described below. If this information obscures the depository bank’s endorsement, you will be liable for checks that are returned late and unpaid.

Checks and other items you want to deposit or cash must be endorsed by all parties to whom the items are payable. We may require that any third parties have their bank verify or guarantee their endorsements.

Facsimile, Mechanical, and Electronic Signatures

Many customers use a facsimile, mechanical or electronic signature, including a stamp or computer generated signature to authorize transactions, provide and authorize instructions and to endorse or otherwise complete other documents (referred to herein collectively as “facsimile signature”). If you use any form of facsimile signature in connection with any account, you agree to deliver a sample to us before you begin using it, and to execute and deliver agreements in a suitable form, if we so require. If you use a facsimile signature for any of these purposes, you are responsible for any such transactions, instructions, or endorsements that appear to us to bear a signature that resembles the signature of a person authorized to sign on your account. When you use a facsimile signature in connection with any account, you agree you shall have the sole responsibility for maintaining security of the facsimile signature or device by which it is affixed, and you shall bear the entire risk for unauthorized use thereof, whether or not you are negligent, except as may be required by law. You agree that we may rely on facsimile signatures that resemble the appropriate original or any signature specimen given to us and that appears to have been made through an authorized medium, regardless of how the facsimile signature came to be placed on the item. We may rely on facsimile signatures, even if they were placed on items without your knowledge or consent. We may pay items bearing facsimile signature, regardless of the persons to whom they are drawn or paid. A facsimile signature that resembles an authorized signer’s signature or any facsimile signature specimen is not considered a forgery or an unauthorized signature, and such a facsimile or automated signature shall be effective as your signature or endorsement, without regard to color variation, whether or not you have been negligent. You further agree to indemnify, defend, and hold us harmless from and against any and all losses, damages, claims, costs or expenses (including attorneys’ fees and costs) incurred by us as a result of the unlawful use, unauthorized use, or misuse by any person of any such facsimile signature or the device by which it is affixed. This means that we are not responsible for any misuse of a facsimile signature we believe you authorized.

Foreign Currency and Instruments

You may not write items or other withdrawal orders on your account which order payment in a foreign currency. The processing and collection of foreign instruments are not subject to United States laws and regulations. We may refuse to accept for deposit or collection an item that is payable in a currency other than U.S. dollars or that is drawn on a bank or a branch of a bank located outside of the United States (a foreign instrument). If we accept a foreign instrument for deposit or collection, you bear all the risks associated with the collection process and foreign currency fluctuation (exchange rate risk). A foreign instrument may be returned unpaid much later (sometimes several months after we process the foreign instrument) than instruments that are drawn on banks located in the United States. You bear all the risks of a late return. We may decide not to credit a foreign instrument to your account until we receive the proceeds in cleared funds from the paying bank. If we do provide credit, such credit is provisional and we may reverse the credit at any time if the foreign instrument is returned unpaid or is initially paid but then subsequently returned for fraud or any other reason. You agree that we may use the current exchange rate and we may charge your account for the full value of the foreign instrument, including any applicable fees, which may result in a loss to you. You are responsible for all fees incurred including exchange rate, our collection fee, and other charges assessed by the payor bank. You understand that foreign instruments sent for collection are sent solely for you and at your risk and that we are not liable for any event in the collection process which is beyond our control including a default by any banks or agents involved in the collection process or for loss of the foreign instrument in transit.

Forgeries or Alterations

If your negligence contributes to a check being altered, changed, or forged, we will not be responsible if we pay the check in good faith and in accordance with the reasonable commercial standards of our business. If anyone disputes the payment of a check because it was altered, changed, forged, bore an unauthorized signature or was otherwise improper, we may not credit the amount to your account until the dispute has been resolved.

We will have a reasonable period of time to investigate the facts and circumstances surrounding any claim of loss. Unless a law, rule or regulation provide otherwise, such a claim is deemed not to have been made until submitted in writing to us. You agree to fully cooperate in our investigation of such a claim. Your cooperation may include among other things, at the Bank’s discretion: (1) a requirement that you submit a declaration under penalty of perjury describing your claim; (2) a report filed with the appropriate police and/or investigatory authority; (3) promptly providing documentation in support of your claim that the Bank requests from you; and (4) if your claim arises from employee fraud or embezzlement, the Bank may require you to make a claim against any insurance coverage that you might carry for such a claim. Our liability to you will be reduced by the amount your insurance company pays you for any claim you tendered to it. Any failure to cooperate in the Bank’s investigation may result in our decision not to honor your claim. We may, although we are not required to do so, provisionally credit your account pending the final outcome of the investigation. If we determine, in our sole discretion, that the debit to your account was not improper, then we may reverse any provisional credit made to your account.

We will not be liable for special or consequential damages, including loss of profits or opportunity, or for attorneys’ fees incurred by you to recover your loss against the person responsible and you agree to indemnify and hold us harmless from any such losses. In the event that we reimburse your loss, you agree that you will not waive any rights you have to recover your loss against anyone who is obligated to repay, insure, or otherwise reimburse you for your loss. You will pursue your rights or, at our option, assign them to us so that we may pursue them. Our liability will be reduced by the amount you recover or are entitled to recover from these other sources, including insurance coverage. At our request, you will provide us with all reasonable information about your insurance coverage, including the name of your insurance carrier, policy number, policy limits, and applicable deductibles.

In addition, from time to time we may make certain products and services that are designed to detect and/or deter check fraud available to you. While no product or service will be completely effective, we believe that the products and services we may offer will reduce the likelihood that certain types of fraudulent items will be paid against your account. You agree that if you fail to implement any of these products or services, or you fail to follow these and other precautions reasonable for your particular circumstances, you will be precluded from asserting any claims against the Bank for paying any unauthorized, altered, counterfeit, or other fraudulent item that such product, service, or precaution was designed to detect or deter, and we will not be required to re-credit your account or otherwise have any liability for paying such items.

Legends or Notations

You recognize that the Bank has adopted automated collection and payment procedures so that it can process the greatest volume of items at the lowest possible cost to all customers. These automated procedures rely primarily on information encoded onto each item in magnetic ink. In recognition of this fact, you agree that in paying an item, the Bank may disregard all information on the item other than the identity of the drawee bank, the amount of the item, and any other information encoded onto the item in magnetic ink according to general banking standards, whether or not that information is consistent with other information on the item. We are not responsible for complying with any legends or notations placed upon checks either deposited into your account or drawn against it. Instructions such as “Void After 90 Days”, “Not Good Over $1,000.00”, “For Deposit Only”, “Two Signatures Required”, or similar language that purportedly restricts the negotiability of the item, whether preprinted, handwritten or typed on either the front or back of the item shall carry no effect on us and you agree to assume all risks and losses resulting from our payment or acceptance for deposit of these checks.

Multiple Party Checks

Checks or other instruments that you wish to deposit, send for collection or cash should be endorsed by all parties to whom the instrument is payable. The Bank may require that any endorsement by a non-customer be verified or guaranteed by that party’s financial institution. The Bank may also refuse to accept any multiple party check.

Post-Dated, Stale Dated, and Other Checks

Processing checks is a highly automated service, and we use commercially reasonable efforts to process them. We may pay checks drawn on an account even if one or more of the following are true: the check is dated after the date we pay it; the check is presented to us for payment more than six months after the date on the check; a stop payment previously requested has expired; the check contains language that purports to make it void before the time it was paid; or the check contains other language that purports to establish conditions under which it may be paid.

Unless you give us and we agree to honor a special “notice of post-dated check,” we may charge your account for an item that is otherwise properly payable from the account, even though we pay the check before the date on it. You can provide this special notice to the Bank verbally, but it must be received by us so as to give us a reasonable opportunity to act on it before final payment of the item. In placing your notice of post-dated check, you must describe the check by giving the date, the check number, the exact amount of the check and the name of the payee in order for us to return the item if it is presented for payment before the date on the check. Within fourteen (14) days of your verbal notification not to pay a post-dated item, we require that you provide notice to us in writing. We have a special form for this purpose. If you put your notice in writing to us, then your notice of post-dated check will remain in effect until the date provided by you. We may pay the item as of its date, even if you have given us a notice of post-dated check. If you do not want the item to be payable as of its date, you must provide us with a stop payment order in time for us to act on it before the date of the item.

Upon presentment of an item for payment more than six (6) months after its date, you agree that we may, in our sole discretion and without notice or inquiry to you, charge your account for the item. However, we are not obligated to do so. You agree that our obligation of good faith does not require us to make any inquiry of you or require us to give you notice prior to the payment of an item more than six (6) months after its date. Our payment of the item will be in good faith absent written notice from you in the form of a timely received stop payment order. If you want to ensure that we do not pay a stale dated item, you should place a stop payment order on the item.

Purchasing Checks

Checks are processed electronically using the magnetic ink that is printed on the bottom of the check and contains the Bank’s routing number, customer account number, and the serial number of the check. This ink is specially formulated to provide the exact signal strength needed for the electronic equipment to read it. The placement of the characters on the item must also be exact in order to prevent errors.

As that is the case, we recommend that you use checks that we may obtain for you from a number of printers with whom we place orders. Check prices vary according to the types of checks you select. You can obtain information on the current price of checks by calling us at (800) 442-5201 or contacting one of our Retail Banking Centers. Check charges may vary from time to time without specific notice to you. You are responsible for verifying the accuracy of all information shown on your checks and deposit tickets. If you find an error, please notify us immediately. We are not liable for losses resulting from incorrectly printed checks or deposit tickets.

If you want to use a different printer or a personal computer program that purports to print with an acceptable magnetic ink, you assume responsibility for any loss or obligation arising from the use of such check due to a failure to read the magnetic encoding properly. You agree not to print special limitations on checks, withdrawal orders or other items drawn on your account, such as “Void Over $100.00”, “Paid in Full”, “Void After 90 Days”, “Two Signatures Required”. If you do print any special limitations, you agree that we are not bound by such limitations. You authorize us to pay such items without regard to the stated limitation(s). You further agree to indemnify us and hold us harmless for any claims or losses arising out of our refusal to honor said restrictions.

Stopping Payment on Checks

If you want to stop payment on a check you have written, you may place a written stop payment order at a banking branch office before it is finally paid by us. Any authorized signer on the account may furnish a stop payment order.

You must furnish us with the account number, date, the check number, the exact amount of the check, and the name of the payee in order for us to stop payment on the item. If you provide us with any incorrect information, we will not be responsible for our failure to stop payment on the check. We will not be responsible for a stop payment order if we do not have a reasonable opportunity to act on it before final payment of the item. You may not stop payment on a check guaranteed by us.

You may furnish the stop payment order orally or in writing, the order will remain in effect unless withdrawn by you in writing to us. There is a charge for each stop payment order requested. Refer to our Schedule of Fees.

In some cases, we may pay an item even if a stop payment request is in effect. If we, or another person or entity, is determined by us to be a “holder in due course” of the item, we may pay the item. If we pay a check which has a valid stop payment order on it with correct information, we may be responsible to you for up to the face amount of the item if you establish that you have suffered a loss because we paid the item. You agree to assign to us all of your rights against the payee and/or any other holder of your check. You also agree to cooperate fully with us in any legal actions that we subsequently take against such persons.

Anyone holding the check, including the Bank, may be entitled to enforce payment against you despite the stop payment order. You agree to indemnify, defend, and hold us harmless from all costs (including attorneys’ fees), actions, damages, claims and demands related to or arising from our action in stopping payment on the check.

Verification of Check Stock

You are responsible for verifying the accuracy of all the information shown on your checks. If you find an error in the printing, you should notify us immediately. Our liability in matters involving incorrectly printed checks is limited to the replacement cost of the checks, if we made arrangements for their printing.

V. SUBSTITUTE CHECKS AND YOUR RIGHTS: IMPORTANT INFORMATION ABOUT YOUR
CHECKING ACCOUNT

What is a substitute check?

To make check processing faster, federal law permits banks to replace original checks with “substitute checks.” These checks are similar in size to original checks, with a reduced image of the front and back of the original check. The front of a substitute check states: “This is a legal copy of your check. You can use it the same way you would use the original check.” You may use a substitute check as proof of payment just like the original check.

Some or all of the checks that you receive back from us may be substitute checks. This notice describes rights you have when you receive substitute checks from us. The rights in this notice do not apply to original checks or to electronic debits to your account. However, you have rights under other laws with respect to those transactions.

What are my rights as a consumer regarding substitute checks?

In certain cases, federal law provides a special procedure that allows you to request a refund for losses you suffer if a substitute check is posted to your account (for example, if you think that we withdrew the wrong amount from your account or that we withdrew money from your account more than once for the same check). The losses you may attempt to recover under this procedure may include the amount that was withdrawn from your account and fees that were charged as a result of the withdrawal.

The amount of your refund under this procedure is limited to the amount of your loss or the amount of the substitute check, whichever is less. You also are entitled to interest on the amount of your refund if your account is an interest-bearing account. If your loss exceeds the amount of the substitute check, you may be able to recover additional amounts under other laws.

If you use this procedure, you may receive up to $2,500.00 of your refund (plus interest if your account earns interest) within ten (10) business days after we receive your claim and the remainder of your refund (plus interest if your account earns interest) no later than forty-five (45) calendar days after we receive your claim.

We may reverse the refund (including any interest on the refund) if we later are able to demonstrate that the substitute check was correctly posted to your account.

How do I make a claim for a refund?

If you believe that you have suffered a loss relating to a substitute check that you received and that was posted to your account, please contact us at Provident Bank, Attention: Bank Operations, P.O. Box 59998, Riverside, CA 92517- 1998. You must contact us within forty (40) calendar days of the date that we mailed (or otherwise delivered by a means to which you agreed) the substitute check in question or the account statement showing that the substitute check was posted to your account, whichever is later. We will extend this time period if you were not able to make a timely claim because of extraordinary circumstances.

Your claim must include:

• A description of why you have suffered a loss (for example, you think the amount withdrawn was incorrect);
• An estimate of the amount of your loss;
• An explanation of why the substitute check you received is insufficient to confirm that you suffered a loss; and
• A copy of the substitute check or the following information to help us identify the substitute check: identifying information, for example, the check number, the name of the person to whom you wrote the check and the amount of the check.

VI. PROTECTING YOUR ACCOUNT

Account Review

It is very important that you actively participate in affording protection to your account(s) due to fraud or wrongful use of your account or checks. Of paramount importance is the prompt examination of the account bank statement by an owner of the account. This review should include all checks and other debits along with verifying that the deposits shown on your internal records have posted to the account.

Authorized Signers

The term “authorized signer(s)” in this Agreement refers to those individuals that an account owner allows to have signature authority over an account and who are authorized to sign checks and other payment orders. We are not in a position to question each and every payment order or check received, even if the payee is cash, or in the name of the authorized signer, therefore only the most trusted individuals should be allowed this responsibility and their actions should be monitored by the account owner(s).

Internal Fraud

All businesses must be alert to situations that could lead even trusted employees to take advantage of the responsibility given to them by their employer. Listed below are some ideas that an account owner should incorporate into their plan for internal control:

• Whenever possible, separate the duties of employees handling financial transactions so that no one person handles a transaction from start to finish.
• Review paid checks, ACH activity, and deposits processed on your account through the Bank’s online banking system.
• Have the Bank statement delivered to the attention of the account owner prior to it being opened. The account owner should then, at minimum, review the checks listed on the statement and ask questions about unusual or questionable items.
• Never sign a blank check in advance for use later.
• Statements should be reconciled as soon as possible after receipt. Notify us immediately if any discrepancies occur in either the items paid or the deposits received.
• Investigate vendor complaints of non-payment or late payments immediately. If someone is diverting payments, your vendors could be affected.
• Watch for carry over balances on invoices coming in from vendors. If you generally pay-off monthly bills, the beginning balance should be zero.
• On occasion, an account owner should personally perform some accounting functions, such as preparing a deposit or reconciling an account.
• Be alert to checks being cashed out of sequence or checks made payable to an employee or cash.
• Keep canceled checks and/or copies of the bank signature card in a secure place to prevent a forger from easily copying a signature and finding out about any signing instructions that you may have.

The above items will help strengthen your controls but they do not substitute for proper insurance coverage and bonding of employees.

Protecting Your Supply of Checks

Blank checks for your account should be treated the same way as other important business papers and assets in order to prevent misuse. They should not be left out or easily accessible. They should not be located in the same area as the paid checks that have the authorized signatures already in place. You should notify us immediately if you suspect that any checks are missing, even if it is a single check. You understand and agree that it is your obligation to safeguard your checks by taking reasonable steps and protective measures to prevent their unauthorized use. The Bank reserves the right to deny claims for monetary loss due to forged, altered or unauthorized checks paid against your account if you do not guard against improper access to your checks.

Safekeeping Your Paid Checks

Your paid checks contain a wealth of information regarding your business and/or personal dealings, including the signatures of those authorized to transact business with the Bank. After the bank statement has been reviewed and reconciled, the statement which includes copies of paid checks should be stored in a secure place allowing only those you have authorized to have access to them.

VII. ELECTRONIC FUND TRANSFERS

Electronic Fund Transfers Act Disclosure

The provisions of the following Electronic Fund Transfers Disclosure apply only to electronic fund transfers to or from accounts established primarily for personal, family, or household purposes (consumer accounts). These provisions do not apply to any transactions that are not covered under the Electronic Fund Transfers Act or Regulation E.

This Electronic Fund Transfers Disclosure governs the use of electronic funds transfer services. Terms and disclosures applicable to the Provident Bank Visa® Debit Card are provided separately in the Visa Debit Card Agreement.

Electronic Check Conversion

You may authorize a merchant or other payee to make a onetime electronic payment from your checking account using information from your check to:

• Pay for purchases; and
• Pay bills.

Frequency Limitations

Regulation D limits certain types of withdrawal and transfer transactions you can make out of a savings and money market account. During any monthly statement cycle, you may not make more than six (6) withdrawals or transfers to another account of yours or to a third party by means of a preauthorized or automatic transfer, facsimile or telephone order or instruction, computer transfer, or by check, draft, or similar order to a third party. We will use the date a transaction is completed by us (as opposed to the day you initiate it) to apply the frequency limitation. If you exceed these limits, we may close the account, impose a fee and/or change the account to a non-interest bearing demand deposit account.

Additional transaction limitations on your particular account may apply. Consumer account holders please refer to your Truth in Savings Account Disclosure applicable to the account you have selected.

Fees

Refer to our Schedule of Fees for all fees that may apply to electronic fund transfers.

Telephone Transfer Service

You may use the telephone transfer service to: transfer funds between your linked savings and checking accounts; make a loan payment by funds transfer to your linked loan; get a loan advance from your linked line of credit account; and make inquiries as to the status of your linked savings and loan accounts and recent transactions. By use of the telephone transfer service with your personal identification number (PIN), you authorize us to transfer funds between your linked checking or savings accounts and linked credit or loan accounts with us in accordance with instructions given by you through the telephone transfer service. All telephone transfer service transactions are covered by our rules and regulations governing accounts, including the “Frequency Limitations” outlined above, applicable to savings and money market accounts. There is no service fee required to use the telephone transfer service. Transfers are subject to your linked account having sufficient available balances.

Documentation

Terminal Transfers - You can get a receipt at the time you make any transfer to or from your account using one of our automated teller machines or at point-of-sale terminals.

Preauthorized Credits - If you have arranged to have direct deposits made to your account at least once every sixty (60) days from the same person or company, you can call us at (800) 442- 5201 to find out whether or not the deposit has been made.

Periodic Statements – You will get a monthly account statement unless there are no transfers in a particular month. In any case you will get the statement at least quarterly.

Preauthorized Payments

Right To Stop Payment And Procedures For Doing So - If you have told us in advance to make regular payments out of your account, you can stop any of these payments. You can visit your local branch or contact us follows:

Call us at: (800) 442-5201 or
Write us at:
Provident Bank
Attention: Bank Operations
P.O. Box 59998 Riverside, CA 92517-1998

We must receive your request three (3) business days or more before the payment is scheduled to be made. If you call, we may also require you to put your request in writing and get it to us within fourteen (14) days after you call us. We will charge you the stop payment fee listed in our Schedule of Fees for each stop payment order you give.

Notice Of Varying Amounts - If these regular payments may vary in amount, the person you are going to pay will tell you, ten (10) days before each payment, when it will be made and how much it will be. You may choose instead to get this notice only when the payment would differ by more than a certain amount from the previous payment, or when the amount would fall outside certain limits that you set.

Liability For Failure To Stop Payment Of Preauthorized Transfer - If you order us to stop one of these payments three business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages.

Consumer Liability

Tell us AT ONCE if you believe your debit card or Personal Identification Number (PIN) has been lost or stolen, or if you believe that an electronic fund transfer has been made without your permission using information from your check. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account (plus your maximum overdraft line of credit). If you tell us within two (2) business days after you learn of the loss or theft of your PIN, you can lose no more than $50.00 if someone used your PIN without your permission.

If you do NOT tell us within two (2) business days after you learn of the loss or theft of your PIN, and we can prove we could have stopped someone from using your PIN without your permission if you had told us, you could lose as much as $500.00.

Also, if your statement shows transfers that you did not make, including those made by card, code or other means, tell us at once. If you do not tell us within sixty (60) days after the statement was sent to you, you may not get back any money you lost after the sixty (60) days if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason (such as a long trip or a hospital stay) kept you from telling us, we will extend the time periods.

Contact in Event of Unauthorized Transfer

If you believe your Personal Identification Number has been lost or stolen, you can visit your local branch or contact us as follows:

Call us at: (800) 442-5201 or
Write us at:
Provident Bank
Attention: Bank Operations
P.O. Box 59998 Riverside, CA 92517-1998

You could also call the number or write to the address listed above if you believe a transfer has been made using the information from your check without your permission.

Financial Institution’s Liability

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

• If, through no fault of ours, you do not have enough money in your account to make the transfer;
• If the transfer would go over the credit limit on your overdraft line;
• If the telephone system was not working properly and you knew about the breakdown when you started the transfer;
• If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken; or
• There may be other exceptions stated in our agreement with you.

Confidentiality

We will disclose information to third parties about your account or the transfers you make:

• Where it is necessary for completing transfers, or
• In order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant, or
• In order to comply with government agency or court orders,
• Pursuant to a legal process served on us, or
• If you give us your written permission.

Refer to our privacy notice, applicable to consumer accounts for further details.

Change in Terms; Termination; Suspension of Service

We may change the terms, terminate or suspend your use of some or all of our electronic fund transfer services at any time, with or without cause and without affecting your outstanding obligations.

In Case of Errors or Questions About Your Electronic Transfers

You can visit your local branch or contact us as follows:

Call us at: (800) 442-5201 or
Write us at:
Provident Bank
Attention: Bank Operations
P.O. Box 59998 Riverside, CA 92517-1998

Notify us as soon as you can, if you think your statement or receipt is wrong or if you need more information about a transfer listed on the statement or receipt. We must hear from you no later than sixty (60) days after we sent the FIRST statement on which the problem or error appeared.

• Tell us your name and account number;
• Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information; and
• Tell us the dollar amount of the suspected error.

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

We will determine whether an error occurred within ten (10) business days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to forty-five (45) days to investigate your complaint or question. If we decide to do this, we will credit your account within ten (10) 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.

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