M&F Bank

Application Disclosure

TERMS AND CONDITIONS OF YOUR ACCOUNT

USA PATRIOT ACT

Important information about procedures for opening or changing an account with M&F Bank.

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, and other information that allow us to identify you.
We may also ask to see your driver’s license or other identifying documents.

Under no circumstances will any collection or retention of identifying information be used to make credit decisions on any prohibited basis under the Equal Credit Opportunity Act. We thank you for your understanding and proudly support all effort to protect and maintain the security of our customers and our country.

AGREEMENT - This document, along with any other documents we give you pertaining to your account(s), is a contract that establishes rules which control your account(s) with us. Please read this carefully. If you sign the signature card or open or continue to have your account with us, you agree to these rules. You will receive a separate schedule of rates, qualifying balances, and fees if they are not included in this document. If you have any questions, please call us. This agreement is subject to applicable federal laws and the laws of the state of Mississippi, Alabama, Tennessee, or Florida (except to the extent that this agreement can and does vary such rules or laws). The body of state and federal law that governs our relationship with you, however, is too large and complex to be reproduced here. The purpose of this document is to:

(1) summarize some laws that apply to common transactions;

(2) establish rules to cover transactions or events which the law does not regulate;

(3) establish rules for certain transactions or events which the law regulates but permits variation by agreement; and

(4) give you disclosures of some of our policies to which you may be entitled or in which you may be interested.

If any provision of this document is found to be unenforceable according to its terms, all remaining provisions will continue in full force and effect. We may permit some variations from our standard agreement, but we must agree to any variation in writing either on the signature card for your account or in some other document. As used in this document the words “we,” “our,” and “us” mean the financial institution and the words “you” and “your” mean the account holder(s) and anyone else with the authority to deposit, withdraw, or exercise control over the funds in the account. The headings in this document are for convenience or reference only and will not govern the interpretation of the provisions. Unless it would be inconsistent to do so, words and phrases used in this document should be construed so the singular includes the plural and the plural includes the singular.

LIABILITY -You agree, for yourself (and the person or entity you represent if you sign as a representative of another) to the terms of this account and the schedule of charges. You authorize us to deduct these charges directly from the account balance as accrued. You will pay any additional reasonable charges for services you request which are not covered by this agreement. Each of you also agrees to be jointly and severally (individually) liable for any account shortage resulting from charges or overdrafts, whether caused by you or another with access to this account. This liability is due immediately, and can be deducted directly from the account balance whenever sufficient funds are available. You have no right to defer payment of this liability, and you are liable regardless of whether you signed the item or benefited from the charge or overdraft. This includes liability for our costs to collect the deficit including, to the extent permitted by law, our reasonable attorneys’ fees.

DEPOSITS - We will give only provisional credit until collection is final for any items, other than cash, we accept for deposit (including items drawn “on us”). Actual credit for deposits of, or payable in, foreign currency will be at the exchange rate in effect on final collection in U.S. dollars. We are not responsible for transactions by mail or outside depository until we actually record them. We will treat and record all transactions received after our “daily cutoff time” on a business day we are open, or received on a day we are not open for business, as if initiated on the next following business day that we are open.

WITHDRAWALS - Unless clearly indicated otherwise on the account records, any of you, acting alone, who signs in the space designated for signatures on the signature card may withdraw or transfer all or any part of the account balance at any time. Each of you (until we receive written notice to the contrary) authorizes each other person signing the signature card to indorse any item payable to you or your order for deposit to this account or any other transaction with us. We may charge your account for a check even though payment was made before the date of the check, unless we have received written notice of the postdating in time to have a reasonable opportunity to act. We may refuse any withdrawal or transfer request which you attempt on forms not approved by us, by any method we do not specifically permit, which is greater in number than the frequency permitted, or which is for an amount greater or less than any withdrawal limitations. Even if we honor a nonconforming request, we may treat continued abuse of the stated limitations (if any) as your act of closing the account. We will use the date the transaction is completed by us (as opposed to the date you initiate it) to apply the frequency limitations. The fact that we may honor withdrawal requests that overdraw the available account balance does not obligate us to do so later. See the funds availability policy disclosure for information about when you can withdraw funds you deposit. For those accounts for which our funds availability policy disclosure does not apply, you can ask us when you make a deposit when those funds will be available for withdrawal. We may require not less than 7 days’ notice in writing before each withdrawal from an interest-bearing account other than a time deposit, or from any other savings account as defined by Regulation D. Withdrawals from a time account prior to maturity or prior to any notice period may be restricted and may be subject to penalty. See your notice of penalty for early withdrawal.

OWNERSHIP OF ACCOUNT AND BENEFICIARY DESIGNATION - These rules apply to this account depending on the form of ownership and beneficiary designation, if any, specified on the account records. We make no representations as to the appropriateness or effect of the ownership and beneficiary designations, except as they determine to whom we pay the account funds.

Individual Account (for Mississippi and Tennessee) - is an account in the name of one person.

Single-Party Account (for Mississippi, Alabama, Tennessee and Florida) - Such an account is owned by one party.

Multiple-Party Account (for Alabama only) - Parties own account during the lifetime of all parties in proportion to their net contributions, unless there is clear and convincing evidence of a different intent.

Single-Party Account (for Alabama only) - Such an account is owned by one party.

Joint Account - With Survivorship (And Not As Tenants In Common) (for Mississippi and Tennessee) - is an account in the name of two or more persons. Each of you intend that when you die the balance in the account (subject to any previous pledge to which we have agreed) will belong to the survivor(s). If two or more of you survive, you will own the balance in the account as joint tenants with survivorship and not as tenants in common.

Joint Account - No Survivorship (As Tenants In Common) (for Mississippi and Tennessee) - is owned by two or more persons, but none of you intend (merely by opening this account) to create any right of survivorship in any other person. We encourage you to agree and tell us in writing of the percentage of the deposit contributed by each of you. This information will not, however, affect the “number of signatures” necessary for withdrawal.

Multiple-Party Account (for Florida only) - Such an account is payable on request to one or more of two or more parties, whether or not a right of survivorship is mentioned.

Multiple-Party Account (Tenancy by the Entireties) (for Florida only) - The parties to the account are husband and wife and hold the account as tenants by entirety.

Revocable Trust or Pay-On-Death Account (for Mississippi only) - - If two or more of you create such an account, you own the account jointly with survivorship. Beneficiaries cannot withdraw unless: (1) all persons creating the account die, (2) the beneficiary is then living, and (3) we are not otherwise required by Mississippi law to make payment to a parent, custodian, or guardian. If two or more beneficiaries are named and survive the death of all persons creating the account, such beneficiaries will own this account in equal shares, without right of survivorship. The person(s) creating either of these account types reserves the right to: (1) change beneficiaries, (2) change account types, and (3) withdraw all or part of the account funds at any time.

Revocable Trust or Pay-On-Death Account (for Tennessee only) - If two or more of you create this type of account, you own the account jointly with survivorship. Beneficiaries cannot withdraw unless: (1) all persons creating the account die, and (2) the beneficiary is then living. If two or more beneficiaries are named and survive the death of all persons creating the account, beneficiaries will own this account in equal shares, without right of survivorship. The person(s) creating either of these account types may: (1) change beneficiaries, (2) change account types, and (3) withdraw all or part of the account funds at any time.

RIGHTS AT DEATH - Single-Party Account (for Alabama and Florida only) - At the death of a party, ownership passes as part of the party's estate.

Multiple-Party Account With Right of Survivorship (for Alabama only) – At death of party, ownership passes to surviving parties. If two or more parties survive and one is the surviving spouse of the deceased party, the amount to which the deceased party, immediately before death, was beneficially entitled by law belongs to the surviving spouse. If two or more parties survive and none is the spouse of the decedent, the amount to which the deceased party, immediately before death, was beneficially entitled by law belongs to the surviving parties in equal shares, and augments the proportion to which each surviving party, immediately before the deceased party’s death, was beneficially entitled under law, and the right of survivorship continues between the surviving parties.

Multiple-Party Account With Right of Survivorship (for Florida only) - At death of a party, ownership passes to the surviving party or parties.

Multiple-Party Account Without Right of Survivorship (for Alabama and Florida only) - At death of party, deceased party's ownership passes as part of deceased party's estate.

Single-Party Account With Pay-on-Death Designation (for Alabama and Florida only) - At death of the party, ownership passes to the designated pay-on-death beneficiaries and is not part of the party's estate.

Multiple-Party Account With Right of Survivorship and Pay-on-Death Designation (for Alabama and Florida only) - At death of last surviving party, ownership passes to the designated pay-on-death beneficiaries and is not part of the last surviving party’s estate.

BUSINESS ACCOUNTS - Earnings in the form of interest, dividends, or credits will be paid only on collected funds, unless otherwise provided by law or our policy. We may require the governing body of the legal entity opening the account to give us a separate authorization telling us who is authorized to act on its behalf. We will honor the authorization until we actually receive written notice of a change from the governing body of the legal entity.

STOP PAYMENTS - You must make any stop-payment order in the manner required by law and we must receive it in time to give us a reasonable
opportunity to act on it before our stop-payment cutoff time. To be effective, your stop-payment order must precisely identify the number, date and amount of the item, and the payee. You may stop payment on any item drawn on your account whether you sign the item or not, if you have an equal or greater right to withdraw from this account than the person who signed the item. A release of the stop-payment request may be made only by the person who initiated the stop-payment order. Our stop-payment cutoff time is one hour after the opening of the next banking day after the banking day on which we receive the item. Additional limitations on our obligation to stop payment are provided by law (e.g., we paid the item in cash or we certified the item).

TELEPHONE TRANSFERS - A telephone transfer of funds from this account to another account with us, if otherwise arranged for or permitted, may be made by the same persons and under the same conditions generally applicable to withdrawals made in writing. Unless a different limitation is disclosed in writing, we restrict the number of transfers from a savings account to another account or to third parties, to a maximum of six per month (less the number of “preauthorized transfers” during the month). Other account transfer restrictions may be described elsewhere.

AMENDMENTS AND TERMINATION - We may change any term of this agreement. Rules governing changes in interest rates are provided separately. For other changes, we will give you reasonable notice in writing or by any other method permitted by law. We may also close this account at any time upon reasonable notice to you and tender of the account balance personally or by mail. Notice from us to any one of you is notice to all of you.

STATEMENTS (for Mississippi, Alabama, and Florida only) - You must examine your statement of account with “reasonable promptness.” If you discover (or reasonably should have discovered) any unauthorized signatures or alterations, you must promptly notify us of the relevant facts. As between you and us, if you fail to do either of these duties, you will have to either share the loss with us, or bear the loss entirely yourself (depending on whether we used ordinary care and, if not, whether we substantially contributed to the loss). The loss could be not only with respect to items on the statement but other items with unauthorized signatures or alterations by the same wrongdoer. You agree that the time you have to examine your statement and report to us will depend on the circumstances, but will not, in any circumstance, exceed a total of 30 days from when the statement is first sent or made available to you. You further agree that if you fail to report any unauthorized signatures, alterations, forgeries, or any other errors in your account within 60 days of when we first send or make the statement available, you cannot assert a claim against us on any items in that statement, and as between you and us the loss will be entirely yours. This 60-day limitation is without regard to whether we used ordinary care. The limitation in this paragraph is in addition to that contained in the first paragraph of this section.

STATEMENTS (for Tennessee only) - You must examine your statement of account with “reasonable promptness.” If you discover (or reasonably should have discovered) any unauthorized signatures, alterations, incorrect payment amounts, or missing or incorrectly credited deposits, you must promptly notify us of the relevant facts. As between you and us, if you fail to do either of these duties, you will have to bear the loss yourself unless you prove that we did not pay the item in good faith. The loss could be not only with respect to items on the statement but other items with unauthorized signatures or alterations by the same wrongdoer. You agree that the time you have to examine your statement and report to us will depend on the circumstances, but will not, in any circumstance, exceed a total of 30 days from when the statement is first sent or made available to you. You further agree that if you fail to report any unauthorized signatures, alterations, forgeries, incorrect payment amounts, missing or incorrectly credited deposits, or any other errors in your account within 60 days of when we first send or make the statement available, you cannot assert a claim against us on any items in that statement, and as between you and us the loss will be entirely yours. This 60-day limitation is without regard to whether we used good faith. The limitation in this paragraph is in addition to that contained in the first paragraph of this section.

ACCOUNT TRANSFER - This account may not be transferred or assigned without our prior written consent.

DIRECT DEPOSITS - - If, in connection with a direct deposit plan, we deposit any amount in an account which should have been returned to the Federal Government for any reason, you authorize us to deduct the amount of our liability to the Federal Government from the account or from any other account you have with us, without prior notice and at any time, except as prohibited by law. We may also use any other legal remedy to recover the amount of our liability.

TEMPORARY ACCOUNT AGREEMENT - If this option is selected, this is a temporary account agreement. Each person who signs in the space designated for signatures on the signature card (except as indicated to the contrary) may transact business on this account. However, we may at some time in the future restrict or prohibit further use of this account if you fail to comply with the requirements we have imposed within a reasonable time.

SETOFF - We may (without prior notice and when permitted by law) set off the funds in this account against any due and payable debt you owe us now or in the future, by any of you having the right of withdrawal, to the extent of such persons’ or legal entity’s right to withdraw. If the debt arises from a note, “any due and payable debt” includes the total amount of which we are entitled to demand payment under the terms of the note at the time we set off, including any balance the due date for which we properly accelerate under the note. This right of setoff does not apply to this account if: (a) it is an IRA or other tax deferred retirement account, or (b) the debt is created by a consumer credit transaction under a credit card plan (but this does not affect our rights under any consensual security interest), or (c) the debtor’s right of withdrawal only arises in a representative capacity. We will not be liable for the dishonor of any check when the dishonor occurs because we set off a debt against this account. You agree to hold us harmless from any claim arising as a result of our exercise of our right of setoff.

AUTHORIZED SIGNER (Individual Accounts only) (for Mississippi only) – A single individual is the owner. The authorized signer is merely designated to conduct transactions on the owner’s behalf. We undertake no obligation to monitor transactions to determine that they are on the owner’s behalf.

ADDITIONAL AUTHORIZED SIGNATORY (Individual Accounts only) (for Tennessee only) - A single individual is the owner. The additional authorized signatory is merely designated to conduct transactions on the owner’s behalf. We undertake no obligation to monitor transactions to determine that they are on the owner’s behalf.

ADDITIONAL AUTHORIZED SIGNATORY (Individual Accounts only) – A single individual is the owner. The additional authorized signatory is merely designated to conduct transactions on the owner’s behalf. We undertake no obligation to monitor transactions to determine that they are on the owner’s behalf.

AGENCY (Power of Attorney) DESIGNATION (Single-Party Accounts only) (for Mississippi only) - - A single individual is the owner. The agent is merely designated to conduct transactions on the owner’s behalf. We undertake no obligation to monitor transactions to determine that they are on the owner’s behalf.

AGENCY (Power of Attorney) DESIGNATION (Single-Party Accounts only) (for Alabama only) - A single individual is the owner. The agent is merely designated to conduct transactions on the owner’s behalf. We undertake no obligation to monitor transactions to determine that they are on the owner’s behalf.

CONVENIENCE ACCOUNT AGENT (for Florida only) - A convenience account, as defined by Florida law, means a deposit account other than a certificate of deposit, in the name of one individual, in which one or more other individuals have been designated as agent with the right to make deposits to and withdraw funds from or draw checks on such account on the owner’s behalf. A convenience account agent has no ownership rights in the account. Only an owner may designate, substitute, or remove an agent. We undertake no obligation to monitor transactions to determine that they are on the owner’s behalf.

RESTRICTIVE LEGENDS - We are not required to honor any restrictive legend on checks you write unless we have agreed in writing to the restriction. Examples of restrictive legends are “must be presented within 90 days” or “not valid for more than $1,000.00.”

PAYMENT ORDER OF ITEMS - The law permits us to pay items (such as checks or drafts) drawn on your account in any order. To assist you in handling your account with us, we are providing you with the following information regarding how we process the items that you write. When processing items drawn on your account, our policy is to pay ACH items first, then to pay all other items in numerical sequence. Lower item numbers are paid first. The order in which items are paid is important if there is not enough money in your account to pay all of the items that are presented. There is no policy that is favorable in every instance. If the smallest items are paid first, you may have fewer NSF or overdraft fees, but the largest, and perhaps more important items (such as rent or mortgage payments) might not be paid. If an item is presented without sufficient funds in your account to pay it, we may, at our discretion, pay the item (creating an overdraft) or return the item (NSF). The amounts of the overdraft and NSF fees are disclosed elsewhere. By paying items in numerical sequence, we think our policy attains a reasonable balance between minimizing additional cost to you and paying your more important items. We encourage you to make careful records and practice good account management. This will help you to avoid writing checks or drafts without sufficient funds and incurring the resulting fees.

ACH AND WIRE TRANSFERS - This agreement is subject to Article 4A of the Uniform Commercial Code - Fund Transfers as adopted in the state in which you have your account with us. If you originate a fund transfer for which Fedwire is used, and you identify by name and number a beneficiary financial institution, an intermediary financial institution or a beneficiary, we and every receiving or beneficiary financial institution may rely on the identifying number to make payment. We may rely on the number even if it identifies a financial institution, person or account other than the one named. You agree to be bound by automated clearing house association rules. These rules provide, among other things, that payments made to you, or originated by you, are provisional until final settlement is made through a Federal Reserve Bank or payment is otherwise made as provided in Article 4A-403(a) of the Uniform Commercial Code. If we do not receive such payment, we are entitled to a refund from you in the amount credited to your account and the party originating such payment will not be considered to have paid the amount so credited. If we receive a credit to an account you have with us by wire or ACH, we are not required to give you any notice of the payment order or credit.

FACSIMILE SIGNATURES - You authorize us, at any time, to charge you for all checks, drafts, or other orders, for the payment of money, that are drawn on us regardless of by whom or by what means the facsimile signature(s) may have been affixed so long as they resemble the facsimile signature specimen filed with us, and contain the required number of signatures for this purpose..

NOW ACCOUNT ORGANIZATION - We have organized interest-earning checking accounts in a nontraditional way. Your interest-earning checking
account consists of two subaccounts. One of these is an interest-earning checking sub account, and you will transact business on this subaccount. The other is a nontransaction subaccount. You cannot directly access the non transaction sub account, but you agree that we may automatically, without a specific request from you, initiate individual transfers of funds between sub accounts from time to time at no cost to you. We will make these automatic transfers so that your ability to use your funds through your interest-earning checking subaccount will be no different than for traditional interest-earning checking accounts. You will not see any difference between the way your interest-earning checking account operates and the way a traditionally organized interest-earning checking account operates, but this organization makes us more efficient and helps to keep costs down.

ALTERNATIVE DISPUTE RESOLUTION AGREEMENT - This ALTERNATIVE DISPUTE RESOLUTION AGREEMENT is a part of every “Deposit Account Agreement” between the Parties, and if any dispute arises between them related to the “Deposit Account Agreement,” which cannot be resolved between themselves, the parties agree first to try in good faith to settle the dispute by mediation administered by the American Arbitration Association under its Commercial Mediation Rules. If the matter is not resolved within 60 days after initiation of mediation or if mediation is waived by both parties, either party may require arbitration under the terms of the Federal Arbitration Act and the Rules of Arbitration of the American Arbitration Association (“AAA”), then applicable for Arbitration of Commercial Disputes, to which the following rules shall apply. (1) Either party may give notice to the other that a dispute or disagreement shall be resolved by arbitration, at which time said party shall request from the AAA a list containing the names of five (5) arbitrators approved by AAA and residing in Mississippi. Within two (2) weeks after receipt of said list, then each party shall strike two (2) names from the list, and the one remaining shall be the Arbitrator. If said designee declines the engagement, said process shall be repeated until an Arbitrator is named and accepts. (2) The Arbitrator shall be paid by the parties for services as arbitrator at a rate or fee to be agreed upon in advance of the arbitration, provided, however, Bank shall pay the first $300.00 of filing fees, or other costs. The Arbitrator may allocate fees and other arbitration costs among the parties. (3) Except as otherwise provided, the Arbitrator shall determine all rules and procedures governing the arbitration, including, without limitation, the timetable, discovery, and retention of experts. (4) Upon conclusion of the arbitration, the Arbitrator shall provide each party a brief written decision on the dispute, which shall be binding and may be entered in any court having jurisdiction. (5) Upon resolving a dispute, the Arbitrator may award money damages or such other remedy as a court of law or equity may provide. The arbitrator will follow the rules of evidence and the law applicable in the United States District Court for the Southern District of Mississippi. All arbitration proceedings shall be confidential.

OVERDRAFT PRIVILEGE DISCLOSURE - It is the policy of our bank to comply with applicable laws and regulations and to conduct business in accordance with applicable safety and soundness standards.

An insufficient balance may result from (A) the payment of checks, electronic fund transfers, or other withdrawal requests; (B) payments authorized by you; (C) the return, unpaid, of items deposited by you; (D) the imposition of bank service charges; or (E) the deposit of items which according to the Bank’s Funds Availability Policy, are treated as not yet available or finally paid.

We are not obligated to pay any item presented for payment if your account does not contain sufficient collected funds. However, if you maintain your account in good standing, defined as: (A) your account has been open for thirty (30) days or more, (B) making regular deposits, (C) bringing the account to a positive balance every thirty (30) days or less; and (D) there are no legal orders outstanding, in our discretion we may elect to pay your reasonable overdrafts as a non-contractual courtesy. Generally, we will not approve an overdraft for you in excess of $700.00 on eligible Personal Checking Accounts and $1,000.00 on eligible Small Business ValuChek Accounts. These limits include our Non-Sufficient Funds and/or Overdraft (NSF/OD) Charge as well as our Overdraft Interest Charge (see account fees below).

We may refuse to pay an overdraft for you at any time, even though we may have previously paid overdrafts for you. Overdraft Privilege is a non-contractual courtesy, not a line of credit or a contractual commitment on the part of our Bank, and may be cancelled at anytime with no obligation or liability on the part of our Bank. You will be notified by mail of any non-sufficient funds items paid or returned that you may have; however, we have no obligation to notify you before we pay or return any item. The amount of any overdrafts plus our Non-Sufficient Funds and/or Overdraft (NSF/OD) Charges along with our Overdraft Interest Charge that you owe us shall be due and payable upon demand. If there is an overdraft paid by us on an account with more than one (1) owner on the signature card, each owner, and agent, if applicable, drawing/presenting the item creating the overdraft, shall be jointly jointly and severally liable for such overdrafts plus our Non-Sufficient Funds and/or Overdraft (NSF/OD) Charge and our Overdraft Interest Charge.

Limitations: Other business checking accounts, all savings accounts, and all money market accounts are not eligible. We may limit the number of accounts eligible for Overdraft Privilege to one account per household. Additionally, we reserve the right to not approve any overdrafts against your account until we can verify that your account is being maintained in good standing, as defined above.

Account Fees: Whether we pay or return a Non-Sufficient Funds item, a flat per item handling fee of $30.00 will be charged to your account as a Non-Sufficient Funds or Overdraft (NSF/OD) charge. In addition, Overdraft Interest will be charged on overdrawn balances in an amount equal to the Federal Reserve Discount Rate plus 5%. These and other charges are set forth in our Additional Fees and Services disclosure.

Opt Out: You have the right to opt out of Overdraft Privilege at any time by completing the form below and returning it to any of our branch offices.

Opt Out Form

ELECTRONIC FUND TRANSFERS
YOUR RIGHTS AND RESPONSIBILITIES

This Electronic Fund Transfer disclosure does not apply to any accounts other than consumer accounts, as defined by Regulation E. Indicated below are types of Electronic Fund Transfers we are capable of handling, some of which may not apply to your account. Please read this disclosure carefully because it tells you your rights and obligations for the transactions listed. You should keep this notice for future reference.

Electronic Funds Transfers Initiated By Third Parties. You may authorize a third party to initiate electronic funds transfers between your account and the third party’s account. These transfers to make or receive payment may be onetime occurrences or may recur as directed by you. These transfers may use the Automated Clearing House (ACH) or other payments network. Your authorization to the third party to make these transfers can occur in a number of ways. In some cases, your authorization can occur when the merchant posts a sign informing you of their policy. In all cases, the transaction will require you to provide the third party with your account number and bank information. This information can typically be found on your check as well as on a deposit or withdrawal slip. Thus, you should only provide your bank and account information (whether over the phone, the Internet, or via some other method) to trusted third parties whom you have authorized to initiate these electronic funds transfers. Examples of these transfers include, but are not limited to:

Preauthorized credits. You may make arrangements for certain direct deposits to be accepted into your checking or savings account(s).

Preauthorized payments. You may make arrangements to pay certain recurring bills from your checking or savings account(s).

Electronic check conversion. You may provide your check to a merchant or service provider who will scan the check for the encoded bank and account information. The merchant or service provider will then use this information to convert the transaction into an electronic funds transfer. This may occur at the point of purchase, or when you provide your check by other means such as by mail or drop box.

Electronic returned check charge. Some merchants or service providers will initiate an electronic funds transfer to collect a charge in the event a check is returned for insufficient funds.

Telephone Transfers - types of transfers - You may access your account by telephone 24 hours a day at 1-800-379-5465 using your personal identification number, a touch tone phone, and your account numbers, to:

transfer funds from checking to savings
transfer funds from savings to checking
make payments from checking to loan accounts with us
get information about:
- the account balance of checking or savings account(s)
- deposits to checking or savings accounts
- withdrawals from checking or savings accounts

ATM Transfers - types of transfers and dollar limitations - You may access your account(s) by ATM using your ATM card and personal identification number or debit card and personal identification number, to:

make deposits to checking account(s)
make deposits to savings account(s)
get cash withdrawals from checking account(s)
- you may withdraw no more than $400.00 per day
get cash withdrawals from savings account(s)
- you may withdraw no more than $400.00 per day
transfer funds from savings to checking account(s)
transfer funds from checking to savings account(s)
get information about:
- the account balance of your checking account(s)
- the account balance of your savings account(s)

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

Types of Debit Card Point-of-Sale Transactions - You may access your checking account(s) to purchase goods (in person, online, or by phone), pay for services (in person, online, or by phone), get cash from a merchant, if the merchant permits, or from a participating financial institution, do anything that a participating merchant will accept.

Currency Conversion. If you effect a transaction with your MasterCard®-branded Debit Card in a currency other than US Dollars, MasterCard International Incorporated will convert the charge into a US dollar amount. MasterCard International will use its currency conversion procedure, which is disclosed to institutions that issue MasterCard cards. Currently, the conversion rate used by MasterCard International to determine the transaction amount in US dollars for such transactions is generally either a government mandated rate or a wholesale rate determined by MasterCard International for the processing cycle in which the transaction is processed, plus 1%. The currency conversion rate used by MasterCard International on the processing date may differ from the rate that would have been used on the purchase date or cardholder statement posting date.

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

Computer Transfers - types of transfers - You may access your account(s) by computer through the internet by logging onto our website at www.mfbank.com and using your user identification number, your password, and your account numbers, to:

transfer funds from checking to savings
transfer funds from savings to checking
make payments from checking to loan account(s) with us
make payments from checking to third parties using the Bill Pay service
make payments from savings to loan account(s) with us
get information about:
- the account balance of checking or savings account(s)
- deposits to checking or savings accounts
- withdrawals from checking or savings accounts
re-order checks

FEES

We do not charge for direct deposits to any type of account.
We charge $1.00 when you make a withdrawal or transfer at an ATM or terminal not owned by M&F Bank.
We charge $.50 when you make a balance inquiry at an ATM or terminal not owned by M&F Bank. Except as indicated elsewhere, we do not charge for these electronic fund transfers.

ATM Operator/Network Fees. When you use an ATM not owned by us, you may be charged a fee by the ATM operator or any network used (and you may be charged a fee for a balance inquiry even if you do not complete a fund transfer).

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 point-of-sale terminals.
Preauthorized credits. If you have arranged to have direct deposits made to your account at least once every 60 days from the same person or company, you can call us at (662) 289-5121 to find out whether or not the deposit has been made.
Periodic statements.
You will get a monthly account statement from us for your checking accounts.
You will get a monthly account statement from us for your savings accounts, unless there are no transfers in a particular month. In any case, you will get a statement at least quarterly.

PREAUTHORIZED PAYMENTS

Right to stop payment and procedure 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. Here is how:

Call or write us at the telephone number or address listed in this brochure in time for us to receive your request 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 14 days after you call.

We will charge you $30.00 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, 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 3 business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages.

FINANCIAL INSTITUTION'S LIABILITY

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

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

(2) If you have an overdraft line and the transfer would go over the credit limit.

(3) If the automated teller machine where you are making the transfer does not have enough cash.

(4) If the terminal or system was not working properly and you knew about the breakdown when you started the transfer.

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

(6) 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:

(1) where it is necessary for completing transfers; or

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

(3) in order to comply with government agency or court orders; or

(4) as explained in the separate Privacy Disclosure.

UNAUTHORIZED TRANSFERS

(a) Consumer liability.

Generally. Tell us AT ONCE if you believe your card and/or code has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account (plus your maximum overdraft line of credit). If you tell us within 2 business days, you can lose no more than $50 if someone used your card and/or code without your permission. (If you believe your card and/or code has been lost or stolen, and you tell us within 2 business days after you learn of the loss or theft, you can lose no more than $50 if someone used your card and/or code without your permission.) If you do NOT tell us within 2 business days after you learn of the loss or theft of your card and/or code, and we can prove we could have stopped someone from using your card and/or code without your permission if you had told us, you could lose as much as $500. Also, if your statement shows transfers that you did not make, tell us at once. If you do not tell us within 60 days after the statement was mailed to you, you may not get back any money you lost after the 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. • Additional Limits on Liability for MasterCard®-branded Debit Card, when used for point-of-sale transactions. You will not be liable for any unauthorized transactions using your MasterCard®-branded Debit Card, when used for point-of-sale transactions, if: (i) you can demonstrate that you have exercised reasonable care in safeguarding your card from the risk of loss or theft, (ii) you have not reported to us two or more incidents of unauthorized use within the prior twelve-month period, and (iii) your account is in good standing. If any of these conditions are not met, your liability is the lesser of $50 or the amount of money, property, labor, or services obtained by the unauthorized use before notification to us. “Unauthorized use” means the use of your debit card by a person, other than you, who does not have actual, implied, or apparent authority for such use, and from which you receive no benefit. This additional limitation on liability does not apply to PIN-based transactions or transactions not processed by MasterCard.

(b) Contact in event of unauthorized transfer. If you believe your card and/or code has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, call or write us at the telephone number or address listed in this brochure.

ERROR RESOLUTION NOTICE

In Case of Errors or Questions About Your Electronic Transfers, Call or Write us at the telephone number or address listed in this brochure, as soon as you can, if you think your statement or receipt is wrong or if you need more information about a transfer listed on the statement or receipt. We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared.

(1) Tell us your name and account number (if any).

(2) Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information.

(3) Tell us the dollar amount of the suspected error. If you tell us orally, we may require that you send us your complaint or question in writing within 10 business days. We will determine whether an error occurred within 10 business days (20 business days if the transfer involved a new account) after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days (90 days if the transfer involved a new account, a point-of-sale transaction, or a foreign-initiated transfer) to investigate your complaint or question. If we decide to do this, we will credit your account within 10 business days (20 business days if the transfer involved a new account) for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account. Your account is considered a new account for the first 30 days after the first deposit is made, unless each of you already has an established account with us before this account is opened. We will tell you the results within three business days after completing our investigation. If we decide that there was no error, we will send you a written explanation. You may ask for copies of the documents that we used in our investigation.

M & F BANK
ELECTRONIC BANKING MANAGER
P.O. BOX 520
KOSCIUSKO , MISSISSIPPI 39090
Business Days: Monday through Friday
Excluding Federal Holidays
Phone: (662) 289-5121
MORE DETAILED INFORMATION IS AVAILABLE ON REQUEST

NOTICE OF ATM/NIGHT DEPOSIT
FACILITY USER PRECAUTIONS

As with all financial transactions, please exercise discretion when using an automated teller machine (ATM) or night deposit facility. For your own safety, be careful. The following suggestions may be helpful.

1. Prepare for your transactions at home (for instance, by filling out a deposit slip) to minimize your time at the ATM or night deposit facility.

2. Mark each transaction in your account record, but not while at the ATM or night deposit facility. Always save your ATM receipts. Don't leave them at the ATM or night deposit facility because they may contain important account information.

3. Compare your records with the account statements you receive.

4. Don't lend your ATM card to anyone.

5. Remember, do not leave your card at the ATM. Do not leave any documents at a night deposit facility.

6. Protect the secrecy of your Personal Identification Number (PIN). Protect your ATM card as though it were cash. Don’t tell anyone your PIN. Don’t give anyone information regarding your ATM card or PIN over the telephone. Never enter your PIN in any ATM that does not look genuine, has been modified, has a suspicious device attached, or is operating in a suspicious manner. Don’t write your PIN where it can be discovered. For example, don’t keep a note of your PIN in your wallet or purse.

7. Prevent others from seeing you enter your PIN by using your body to shield their view.

8. If you lose your ATM card or if it is stolen, promptly notify us. You should consult the other disclosures you have received about electronic fund transfers for additional information about what to do if your card is lost or stolen.

9. When you make a transaction, be aware of your surroundings. Look out for suspicious activity near the ATM or night deposit facility, particularly if it is after sunset. At night, be sure that the facility (including the parking area and walkways) is well lighted. Consider having someone accompany you when you use the facility, especially after sunset. If you observe any problem, go to another ATM or night deposit facility.

10. Don't accept assistance from anyone you don't know when using an ATM or night deposit facility.

11. If you notice anything suspicious or if any other problem arises after you have begun an ATM transaction, you may want to cancel the transaction, pocket your card and leave. You might consider using another ATM or coming back later.

12. Don't display your cash; pocket it as soon as the ATM transaction is completed and count the cash later when you are in the safety of your own car, home, or other secure surrounding.

13. At a drive-up facility, make sure all the car doors are locked and all of the windows are rolled up, except the driver's window. Keep the engine running and remain alert to your surroundings.

14. We want the ATM and night deposit facility to be safe and convenient for you. Therefore, please tell us if you know of any problem with a facility. For instance, let us know if a light is not working or there is any damage to a facility. Please report any suspicious activity or crimes to both the operator of the facility and the local law enforcement officials immediately.

YOUR ABILITY TO WITHDRAW FUNDS

This policy statement applies to “transaction” accounts. Transaction accounts, in general, are accounts which permit an unlimited number of payments to third persons and an unlimited number of telephone and preauthorized transfers to other accounts of yours with us. Checking accounts are the most common transaction accounts. Feel free to ask us whether any of your other accounts might also be under this policy. 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 the funds are available, you can withdraw them in cash and we will use the funds to pay checks that you have written. Please remember that even after we have made funds available to you, and you have withdrawn the funds, you are still responsible for checks you deposit that are returned to us unpaid and for any other problems involving your deposit. 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 2:00 P.M. (4:00 P.M. in Florida) (1:30 P.M. at 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 2:00 P.M. (1:30 P.M. at ATMs) 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

Case-by-case delays.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 fifth business day after the day of your deposit. The first $100 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 mail 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.

Safeguard exceptions. 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 on any one day.

You redeposit a check that has been returned unpaid.

You have overdrawn your account repeatedly in the last six months.

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 eleventh business day after the day of your deposit.

SPECIAL RULES FOR NEW ACCOUNTS

If you are a new customer, the following special rules may apply during the first 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 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 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 will not be available until the second business day after the day of your deposit. Funds from all other check deposits may be available on the eleventh business day after the day of your deposit.

TRUTH-IN-SAVINGS DISCLOSURE

PERSONAL REGULAR CHECKING ACCOUNT

Minimum balance to open the account - You must deposit $100.00 to open this account.

Minimum balance to avoid imposition of fees - A minimum balance fee of $7.50 will be imposed every month if the balance in the account falls below $600.00 any day of the month.

SUMMIT CHECKING

Minimum balance to open the account - You must deposit $100.00 to open this account.

FREE CHECKING

Minimum balance to open the account - You must deposit $100.00 to open this account.

PLATINUM CHECKING

Minimum balance to open the account - You must deposit $100.00 to open this account.

Fees: A maintenance service ffee of $7.00 will be charged each month.

BUSINESS CHECKING ACCOUNT

This account is not a consumer account to which Truth in Savings applies.
Minimum balance to open the account - You must deposit $100.00 to open this account.

Fees:

An account maintenance fee of $8.50 will be charged each month.

The following activity fees will be charged each month:

Per check or other debit ..................................................................................$.15

Per item deposited.........................................................................................$.075

Coin packaging service (per roll) .......................................................................$.05

Coin order (per roll) .........................................................................................$.05

Earnings credit - An earnings credit is calculated daily by applying a market rate of interest to the account’s daily investable balance (collected balance minus reserve requirement). A charge is made against the account only to the extent that the earnings credit does not cover accumulated maintenance and activity fees.

Accrual of earnings credit on noncash deposits -Earnings credit begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks).

BUSINESS VALUCHEK ACCOUNT

This account is not a consumer account to which Truth in Savings applies.

Minimum balance to open the account - You must deposit $100.00 to open this account.

Minimum balance to avoid imposition of fees - A minimum balance fee of $8.50 will be imposed every statement cycle if the balance in the account falls below $3,500.00 any day of the cycle.

Fees:

The following activity fees will be charged each month:

Per check or other debit in excess of 100 per month .........................................$.20

Per item deposited in excess of 150 per month .................................................$.10

Coin packaging service (per roll) .......................................................................$.05

Coin order (per roll) .........................................................................................$.05

BUSINESS INTEREST CHECKING ACCOUNT

Eligibility - This account is not a consumer account to which Truth in Savings applies. Federal law prohibits paying interest on checking accounts of partnerships and corporations, so this checking account is not available to those businesses. This account is designed for eligible sole proprietorships and nonprofit organizations.

Rate Information - Your interest rate and annual percentage yield may change.

Frequency of rate changes - We may change the interest rate on your account at any time.

Determination of rate - At our discretion, we may change the interest rate on your account.

Compounding and crediting frequency - Interest will be compounded every month. Interest will be credited to your account every month.

Effect of closing an account - If you close your account before interest is credited, you will not receive the accrued interest.

Minimum balance to open the account - You must deposit $100.00 to open this account.

Minimum balance to avoid imposition of fees - A minimum balance fee of $8.50 will be imposed every month if the balance in the account falls below $1,000.00 any day of the month.

Minimum balance to obtain the annual percentage yield disclosed – You must maintain a minimum balance of $500.00 in the account each day to obtain the disclosed annual percentage yield.

Daily balance computation method - We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.

Accrual of interest on noncash deposits - Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks).

Fees:

The following activity fees will be charged each month:

Per check or other debit ...................................................................................$.15

Per item deposited..........................................................................................$.075

BUSINESS INTEREST PLUS CHECKING ACCOUNT

The Business Interest Plus Checking account is not a consumer account to which Truth in Savings applies. Federal law prohibits paying interest on checking accounts of partnerships and corporations, so this checking account is not available to those businesses. This account is designed for eligible sole proprietorships and non-profit organizations.

Rate Information - The interest rate and annual percentage yield for your account depend upon the applicable rate tier. The interest rate and annual percentage yield for these tiers may change.

Frequency of rate changes - We may change the interest rate on your account at any time.

Determination of rate - At our discretion, we may change the interest rate on your account.

Tiered interest rates will be paid on the entire balance in your account, based on the following daily balances:

Tier 1 - $0.00 - $9,999
Tier 2 - $10,000. - $19,999
Tier 3 - $20,000.00 to $49,999
Tier 4 - $50,000 to $99,999
Tier 5 - $100,00 - Above

Compounding and crediting frequency - Interest will be compounded every month. Interest will be credited to your account every month.

Effect of closing an account - If you close your account before interest is credited, you will not receive the accrued interest.

Minimum balance to open the account - You must deposit $10,000.00 to open this account.

Minimum balance to avoid imposition of fees - A minimum balance fee of $10.00 will be imposed every month if the balance in the account falls below $10,000.00 any day of the month.

Daily balance computation method - We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.

Accrual of interest on noncash deposits - Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks).

Fees:

The following activity fees will be charged each month if the balance in the account falls below $10,000.00 any day of the month:

Per check or other debit ...................................................................................$.15

Per item deposited..........................................................................................$.075

PERSONAL MONEY MARKET ACCOUNT/
BUSINESS MONEY MARKET ACCOUNT

The Business Money Market account is not a consumer account to which Truth in Savings applies.

Rate Information - Your interest rate and annual percentage yield may change.

Frequency of rate changes - We may change the interest rate on your account at any time.

Determination of rate - At our discretion, we may change the interest rate on your account.

Compounding and crediting frequency - Interest will be compounded every month. Interest will be credited to your account every month.

Effect of closing an account - If you close your account before interest is credited, you will not receive the accrued interest.

Minimum balance to open the account - You must deposit $1,000.00 to open this account.

Minimum balance to avoid imposition of fees - A minimum balance fee of $8.00 will be imposed every month if the balance in the account falls below $1,000.00 any day of the month.

Minimum balance to obtain the annual percentage yield disclosed – You must maintain a minimum balance of $1,000.00 in the account each day to obtain the disclosed annual percentage yield.

Daily balance computation method - We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.

Accrual of interest on noncash deposits - Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks). Transfers from a Personal Money Market account/Business Money Market account to another account or to third parties by preauthorized, automatic, computer, or telephone transfer are limited to six per calendar month with no more than three by check, draft, debit card or similar order to third parties.

Fees: An excess transfer fee of $5.00 will be charged for each debit transaction (withdrawal, check paid, automatic transfer or payment out of this account) in excess of three during a month. If you exceed three transfers per month, we may also re-classify or close your account.

PERSONAL HIGH YIELD MONEY MARKET ACCOUNT/
BUSINESS HIGH YIELD MONEY MARKET ACCOUNT

The Business High Yield Money Market account is not a consumer account to which Truth in Savings applies.

Rate Information - The interest rate and annual percentage yield for your account depend upon the applicable rate tier. The interest rate and annual percentage yield for these tiers may change.

Frequency of rate changes - We may change the interest rate on your account at any time.

Determination of rate - At our discretion, we may change the interest rate on your account.

Tiered interest rates will be paid on the entire balance in your account, based on the following daily balances:

Tier 1 - $100,000.00 or more
Tier 2 - $50,000.00 to $99,999.99
Tier 3 - $20,000.00 to $49,999.99
Tier 4 - $10,000.00 to $19,999.99
Tier 5 - $2,500.00 to $9,999.99

Compounding and crediting frequency - Interest will be compounded every month. Interest will be credited to your account every month.

Effect of closing an account - If you close your account before interest is credited, you will not receive the accrued interest.

Minimum balance to open the account - You must deposit $2,500.00 to open this account.

Minimum balance to avoid imposition of fees - A minimum balance fee of $10.00 will be imposed every month if the balance in the account falls below $10,000.00 any day of the month.

Minimum balance to obtain the annual percentage yield disclosed – You must maintain a minimum balance of $2,500.00 in the account each day to obtain the disclosed annual percentage yield.

Daily balance computation method - We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.

Accrual of interest on noncash deposits - Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks).

Transaction limitations: Transfers from a Personal High Yield Money Market account/Business High Yield Money Market account to another account or to third parties by preauthorized, automatic, computer, or telephone transfer are limited to six per calendar month with no more than three by check, draft, debit card or similar order to third parties.

M&F INTEREST PARTNER ACCOUNT/
BUSINESS M&F INTEREST PARTNER ACCOUNT

Rate Information - The interest rate and annual percentage yield for your account depend upon the applicable rate tier. The interest rate and annual percentage yield for these tiers may change.

Frequency of rate changes - We may change the interest rate on your account at any time.

Determination of rate - At our discretion, we may change the interest rate on your account. Tiered interest rates will be paid on the entire balance in your account, based on the following daily balances:

Tier 1 - $100,000.00 or more
Tier 2 - $50,000.00 to $99,999.99
Tier 3 - $10,000.00 to $49,999.99
Tier 4 - $2,500.00 to $9,999.99

Compounding and crediting frequency - Interest will be compounded every month. Interest will be credited to your account every month.

Effect of closing an account - If you close your account before interest is credited, you will not receive the accrued interest.

Minimum balance to open the account - You must deposit $2,500.00 to open this account.

Minimum balance to avoid imposition of fees - A minimum balance fee of $15.00 will be imposed every month if the balance in the account falls below $2,500.00 any day of the month.

Minimum balance to obtain the annual percentage yield disclosed – You must maintain a minimum balance of $2,500.00 in the account each day to obtain the disclosed annual percentage yield.

Daily balance computation method - We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.

Accrual of interest on noncash deposits - Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks).

Transaction limitations: Transfers from a M&F Interest Partner account/Business M&F Interest Partner account to another account or to third parties by preauthorized, automatic, computer, or telephone transfer are limited to six per calendar month with no more than three by check, draft, debit card or similar order to third parties.

PERSONAL SAVINGS ACCOUNT

Rate Information - Your interest rate and annual percentage yield may change.

Frequency of rate changes - We may change the interest rate on your account at any time.

Determination of rate - At our discretion, we may change the interest rate on your account.

Compounding and crediting frequency - Interest will be compounded every month. Interest will be credited to your account every month.

Effect of closing an account - If you close your account before interest is credited, you will not receive the accrued interest.

Minimum balance to open the account - You must deposit $100.00 to open this account.

Minimum balance to avoid imposition of fees - A minimum balance fee of $5.00 will be imposed every month if the balance in the account falls below $300.00 any day of the month.

Minimum balance to obtain the annual percentage yield disclosed – You must maintain a minimum balance of $100.00 in the account each day to obtain the disclosed annual percentage yield.

Daily balance computation method - We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.

Accrual of interest on noncash deposits - Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks).

Transaction limitations: Transfers from a Personal Savings account to another account or to third parties by preauthorized, automatic, computer, or telephone transfer are limited to six per calendar month with no transfers by check, draft, debit card, or similar order to third parties. If the transfer limits are exceeded, we may re-classify or close your account.

Fees: An activity charge fee of $1.00 will be charged for each debit transaction (withdrawal, automatic transfer or payment out of this account) in excess of one during a month.

KID'S CLUB ACCOUNT
(14 Years of Age or Younger)

Rate Information - Your interest rate and annual percentage yield may change.

Frequency of rate changes - We may change the interest rate on your account at any time.

Determination of rate - At our discretion, we may change the interest rate on your account.

Compounding and crediting frequency - Interest will be compounded every quarter. Interest will be credited to your account every quarter.

Effect of closing an account - If you close your account before interest is credited, you will not receive the accrued interest.

Minimum balance to open the account - You must deposit $25.00 to open this account.

Minimum balance to obtain the annual percentage yield disclosed – You must maintain a minimum balance of $25.00 in the account each day to obtain the disclosed annual percentage yield.

Daily balance computation method - We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.

Accrual of interest on noncash deposits - Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks).

Transaction limitations:

Transfers from a Kid's Club account to another account or to third parties by preauthorized, automatic, computer, or telephone transfer are limited to six per calendar month with no transfers by check, draft, debit card, or similar order to third parties. If the transfer limits are exceeded, we may re-classify or close your account.

Fees: An activity charge fee of $1.00 will be charged for each debit transaction (withdrawal, automatic transfer or payment out of this account) in excess of ten during a quarter.

Additional terms: If the account has been open for 90 days on the child's birthday, you will receive a redemption coupon for $5.00 when an average minimum balance of $25.00 is maintained in the account during the quarterly interest period to the child's birthday.

CHRISTMAS CLUB SAVINGS ACCOUNT

Rate Information - Your interest rate and annual percentage yield may change.

Frequency of rate changes - We may change the interest rate on your account at any time.

Determination of rate - At our discretion, we may change the interest rate on your account.

Compounding and crediting frequency - Interest will be compounded annually. Interest will be credited to your account annually.

Effect of closing an account - If you close your account before interest is credited, you will not receive the accrued interest.

Minimum balance to obtain the annual percentage yield disclosed – You must maintain a minimum balance of $1.00 in the account each day to obtain the disclosed annual percentage yield.

Daily balance computation method - We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.

Accrual of interest on noncash deposits - Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks).

Fees: An activity charge fee of $5.00 will be charged for each withdrawal or debit in excess of two during a year.

IRA VARIABLE RATE SAVINGS ACCOUNT