Agreement and Electronic Funds Transfer Disclosure for the Municipal Employees Credit Union of Baltimore, Inc. Internet Banking and BillPayer Service

Revised May 13, 2005

All references within this Agreement to "Payment Service", or "Service" refer to the Internet BillPayer Service and Online Resources & Communications Corporation, the third party Internet BillPayer Service Provider. The term "Credit Union" refers to Municipal Employees Credit Union of Baltimore, Inc. (MECU)

Availability and Delivery of Internet BillPayer Service Agreement
This Internet BillPayer Service Agreement (the "Agreement") is available for viewing on-line at any time, and can be downloaded or printed using your computer and a printer. All Service subscribers agree to the electronic availability and delivery of the Agreement, and further understand and agree that paper (non-electronic) copies of the Agreement are available from MECU upon request.

Third Party BillPayer Service Provider
This Internet BillPayer Service is provided by a third party. Online Resources & Communications Corporation (ORCC) is the third party who MECU has contracted with to provide this Service to its members. ORCC will process all bill payments. MECU is not affiliated with or a part of ORCC and reserves the right to change Internet Bill Payment Service providers at any time.

Internet Bill Payment Service
As used in this Agreement for the MECU Internet Bill Payment Service (the "Agreement"), the term "Payee" means the person or entity to whom you wish a bill payment to be directed; "Payment Instructions" means the information provided by you to the Service for a bill payment to be made to your Payee (such as, but not limited to, Payee name, Payee account number, and payment date); "Payment Account" means your MECU Checking Account from which all bill payments will be made; "Business Day" means Monday through Friday, excluding Federal Reserve holidays; "Scheduled Payment Date" means the Business Day of your choice upon which your bill payment will begin processing.

By providing the Service with the names and account information of those Payees to whom you wish to direct payment, you authorize the Service to follow the Payment Instructions that it receives through the payment system.

Bill Payments: Allowing Sufficient Time
All payments you make will be deducted from your MECU Checking account. Any obligations that you wish to pay through the Payment Service must be payable in U.S. dollars to a payee located in the continental United States. The following payment types are prohibited through the Payment Service:

• Tax Payments
• Court-Ordered Payments
• Payments to Collection Agencies
• Payments to parties outside the U.S.A.
• Payment amounts greater than $9,999.00.

For all payment items, you agree to have funds available in your MECU Checking account on the "Scheduled Payment Date". At least five business days are required to process payments.

If the date you schedule a payment to be initiated falls on a non-business day (Saturday, Sunday or holiday), funds must be available in your Checking account the last business day before the Saturday, Sunday or holiday. After funds are withdrawn from your Checking account, ORCC may make the payment either by transferring funds electronically to the payee or by mailing the payee a check.

You must allow sufficient time for the payee to receive the payment and process it before the payment due date.

ORCC will be responsible for any late fees associated with Service payments as long as the payments are submitted in accordance with the ORCC guidelines and the information provided to ORCC is complete and correct. This payment guarantee applies to late fees or finance charges associated with the late posting of a payment, provided that all four of the following conditions are met:

1. ORCC receives the payment at least two (for electronic payments) or five (for check payment) business days prior to the due date, excluding any grace periods.
2. Payment was made to an allowable merchant.
3. You submitted the correct merchant information such as merchant name and address, account number and the name on the account that is the same as on the merchant's records.
4. ORCC is responsible for the delayed payment.

This payment guarantee does not imply that payments will be delivered and posted within two or five business days, since the actual date of posting payments is controlled by the merchant.

ORCC is responsible for exercising ordinary care in processing and sending payments upon your authorization in accordance with this Agreement. MECU is not liable in any way for damages you incur if you do not have sufficient funds in your account to make the payment on the processing date, for delays in mail delivery, for changes to merchant's address or account number unless you have made the required changes through the Bill Payer Service, for the failure of any merchant to correctly account for or credit the payment in a timely manner, or for any other circumstances beyond the control of ORCC or MECU.

Edit and Cancellation
You may cancel or edit any Pending Payment (including re-occurring payments) by following the directions within the Bill Payer application. There is no charge for canceling or editing a Pending Payment.

Once a payment has been sent by ORCC, it will be processed according to standard procedures. Payments, both by check and those made electronically, cannot be stopped.

Liability for Failure to Make Payment
If we do not send a payment or make a transfer on time, or in the correct amount according to your instructions given in accordance with this Agreement, we will be liable for your caused damages. However, there are some exceptions, noted in the Electronic Funds Transfer Disclosure. Additional exceptions are noted below. We will not be liable if:

1. You have not properly followed the scheduling instruction on how to make a transfer or payment contained in this Agreement.
2. Your computer, phone lines or MECU's computer systems were not working properly or were temporarily unavailable, and the problem should have been apparent to you when you attempted the transfer or bill payment.
3. We have placed a "hold" on funds in your account with your knowledge or in accordance with reasonable business procedures.
4. We have received incomplete or inaccurate information from you or a third party involving the account, payment or transfer.
5. A court order such as a garnishment or other encumbrance or legal process prevents us from making a transfer or payment.
6. We have a reasonable basis for believing that unauthorized use of your PIN or designated account has occurred or may be occurring or if you default under this Agreement or any other agreement with us, or if we or you terminate this Agreement.
7. The payee does not process a payment promptly or correctly, or for any other reason specified in this Agreement.

In no event will we be liable for damages in excess of your actual loss due to our failure to complete a transfer, and we will not be liable for any incidental or consequential damages.

THE FOREGOING SHALL CONSITUTE THE SERVICE'S ENTIRE LIABILITY AND YOUR EXCLUSIVE REMEDY. IN NO EVENT SHALL THE SERVICE BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR EXEMPLARY DAMAGES, INCLUDING LOST PROFITS (EVEN IF ADVISED OF THE POSSIBILITY THEREOF) ARISING IN ANY WAY OUT OF THE INSTALLATION, USE, OR MAINTENANCE OF THE EQUIPMENT, SOFTWARE, AND OR THE SERVICE.

EXCLUSIONS AND WARRANTIES THE SERVICE AND RELATED DOCUMENTATION ARE PROVIDED "AS IS" WITHOUT ANY WARRANTY OF ANY KIND, EITHER EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

Password and Security
For purposes of this section, the words Personal Identification Number ("PIN") shall also mean "Password". The PIN you have selected for the MECU Internet Account Access Service also provides access to the Internet Bill Payment Service. Your PIN is confidential and should NOT be disclosed to others or recorded on documentation or records located on or around your personal computer. You are responsible for the proper safekeeping of your PIN. You agree not to disclose or otherwise make your PIN available to anyone not authorized to sign on your accounts. If you authorize anyone to use your PIN, that authority shall continue until you specifically revoke such authority by changing the PIN or by notifying the Credit Union and obtaining a replacement PIN. You understand that if you reveal your PIN to anyone, or request that the Credit Union issue a PIN to anyone else, you have authorized that individual to transfer and withdraw funds from any of your accounts which can be accessed by the PIN, regardless of whether that person is authorized to transfer or withdraw funds from the account(s) by any means other than by use of the MECU Internet Account Access service. If you fail to maintain security of your PIN and the Credit Union suffers a loss, we reserve the right to terminate the Services as well as other Credit Union deposit and loan services. MECU Internet Access provides the capability for you to change your PIN. To help safeguard your security, you should change your PIN frequently. You can do this on line by going to the "Preference" menu in online banking and clicking on "Change Password". If you forget your PIN or your system access is disabled due to the use of an incorrect PIN, or IF YOU BELIEVE THAT YOUR PIN HAS BEEN LOST OR STOLEN OR THAT SOMEONE MAY ATTEMPT TO USE THE SERVICE WITHOUT YOUR CONSENT OR HAS TRANSFERRED MONEY WITHOUT YOUR PERMISSION, CONTACT MECU IMMEDIATELY AT 410-752-8313 OR 1-800-248-MECU.

Your Liability for Unauthorized Use
Tell us immediately if you believe your Access I.D. or Password (PIN) has become known to an unauthorized person or if an unauthorized transaction has occurred involving your account. Telephoning is the best way of keeping your possible losses to a minimum. If you tell us within two business days after you learn that your Access I.D. and Password (PIN) have become known by an unauthorized person, you can lose no more than $50.00 if an unauthorized person used your personal codes without your permission to process a transaction. If you do NOT tell us within two business days, and we can prove that we could have stopped someone from using your Access I.D. or Password (PIN) without your permission if you had told us, you could be liable for as much as $500.00. Also, if your statement shows electronic funds transfers that you did not make or authorize, 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 kept you from telling us (such as a long trip or a hospital stay), we may extend the time periods.

MECU reserves the right to require written re-application for a new or replacement PIN.

Errors and Questions
In case or errors of questions about your bill payments, you should as soon as possible:

If you think that your statement is wrong or you need more information about a bill payment listed on the statement, we must hear from you no later than sixty (60) days after you received the FIRST statement on which the problem or error appeared. You must:

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

If you tell us verbally, in person, or by telephone, we may require that you submit your complaint in writing within ten (10) Business Days after providing verbal notification. We will tell you the results of the investigation 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 45 days to investigate the complaint or question. If we decide to do this, we will credit your Payment Account within ten (10) Business Days for the amount you think is in error, so that you may have 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 Payment Account. If we determine there was no error, we will send you a written explanation within three (3) Business Days after we complete our investigation. You may ask for copies of documents, which we used in our investigation. The Service may revoke any provisional credit provided to you if we find that an error did not occur.

Disclosure of Account Information to Third Parties
It is our general policy to treat your account information as confidential. However, we will disclose information to third parties about your account or the transfers you make ONLY in the following situations:

1. Where it is necessary for completing bill payment transfers, or
2. In order to verify the existence and condition of your account to a third party, such as a credit bureau or merchant, or
   
3. In order to comply with a governmental agency or court orders, or if you give us your written permission.

Fees and Charges
We will assess a fee for Non-Sufficient Funds (as per our Fee Schedule)

You agree to pay all such fees and charges and authorize MECU and the Service to charge your designated Payment Account for these amounts and any additional charges that may be incurred by you. All fees and charges associated with your MECU Share and Loan accounts continue to apply. You are responsible for any and all telephone access fees and/or Internet service fees that may be assessed by your telephone and/or Internet Service Provider.

Alterations and Amendments
The terms of this Agreement, applicable fees and service charges may be altered or amended by MECU and/or the Service from time to time. In such event, either the Credit Union or the Service shall send notice to you at your address as it appears on the Service's records. You agree that we may provide you with new disclosures about Billpayer in electronic form. These electronic disclosures will be posted in the Disclosure section of the website and will be available for a minimum of 30 days. Any use of the services after the credit union or the Service sends you a notice of change to disclosures as described above will constitute your agreement to such change(s). Further, the credit union and/or the Service may, from time to time, revise or update the programs, services, and/or related material, which may render all such prior versions obsolete. Consequently, the credit union and the Service reserve the right to terminate this Agreement as to all such prior versions of the bill payment programs, services, and/or related material and limit access to the Service's more recent revisions and updates.

Address or eMail Address Changes
You agree to promptly notify MECU of any address change in written correspondence sent via the U.S. mail (your signature is required to change an address).

You also agree to keep MECU notified of any changes to your e-mail address. Your e-mail address can be updated online by going to MECU's web site at www.mecu.com.

Termination or Discontinuation of Service
In the event you wish to discontinue the Service, go to the BillPayer section of MECU's online banking website and click on "Cancel Billpayer".
MECU and ORCC may discontinue or terminate the Internet Bill Payment Service to any individual or entity at any time. MECU will periodically review accounts with an inactive Billpayer service and notify those accounts with an inactive Billpayer service that the Billpayer service needs to be activated within 30 days or the Billpayer service will be closed by the credit union. Neither termination nor discontinuation of the Service shall affect your liability or obligation under this Agreement.

Payee Limitation
The Service reserves the right to refuse to pay any Payee to whom you may direct a payment. The Service is obligated to notify you promptly if it decides to refuse to pay a Payee designated by you. This notification is not required if you attempt to pay tax or court-related payments or payments outside the United States, which are prohibited under this Agreement.

Information Authorization
Your enrollment in the Service may not be fulfilled if the Service cannot verify your identity or other necessary information. Through your enrollment in the Service, you agree that the Service reserves the right to request a review of your consumer credit report at its own expense through an authorized bureau. In addition, you agree that the Service reserves the right to obtain financial information regarding your account from a Payee or financial institution to resolve payment-posting problems.

Assignment
You may not assign this Agreement to any other party. The Service may assign this Agreement to any future, directly or indirectly, affiliated company. The Service may also assign or delegate certain of its rights and responsibilities under this Agreement to independent contractors or other third parties.

No Waiver
The Service shall not be deemed to have waived any of its rights or remedies hereunder unless such waiver is in writing and signed by the Service. No delay or omission on the part of the Service in exercising any rights or remedies shall operate as a waiver of such rights or remedies or any other rights or remedies. A waiver on any one occasion shall not be construed as a bar or waiver of any rights or remedies on future occasions.

Captions
The captions of Sections hereof are for convenience only and shall not control or affect the meaning or construction of any of the provisions of this Agreement.

Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of Maryland, United States of America, without regard to its conflicts of laws provisions.