Online Banking Agreement

Online Banking Disclosure Statement

Online Banking Disclosure

The purpose of this Disclosure Statement is to inform you of certain rights that you have under the Electronic Funds Transfer Act.

Please note in this statement the words “you” and “your” each refer to the person who uses or is authorized to use Online Banking Services. The words “we”, “our” and “us” refer to The Lake Bank.

Online Banking Services – you may access our Online Banking Service using the personal Login Codes that we issue to you to conduct the following transactions:

Transfer Funds to and/or from:

• Checking

• Savings

• Loans

Make payments to:

• Loans

Obtain the available and current balance(s) and transaction history of:

• Checking

• Savings

• Loans • Certificates

• HSA’s

• Safety Deposit Boxes

• View Interest Rates

• Download Transactions

• Account Management

• View Statements

• Set up Alerts

• Enable password self-reset function

• Change your ID

• Change your Password

• Enroll in eMobile Banking

Banking Services

Online Banking service is available 24 hours a day, 7 days a week. However, we only process transactions and update information on business days. Our online transfer business days are Monday through Friday. Transfers made on weekends or holidays will be processed on the next business day.

Identification Number and Password

Access to Online Banking may be made by personal computer or mobile device. Access requires the use of a unique User ID and password (collectively, the “Login Codes”) assigned by us. Your use of Online Banking with the Login Codes authorized by us will be deemed by us to be valid and authentic and you agree that any communications to us under your Login Codes will be given the same legal effect as written and signed paper communications. You agree that electronic copies of communications are valid and you will not contest the validity of the originals, absent proof of altered data or tampering.

Lost or Stolen Login Codes

If you believe your Login Codes or other means of access have been lost or stolen or that someone has used them without your authorization, immediately change your Online Banking password. This is done by navigating to the eOptions tab once logged into your online account, or by selecting Forgot Password from the Login page. Contact us immediately by writing, calling or emailing us at:

The Lake Bank

613 1st Ave

Two Harbors, MN 55616


Include in the message your name, address, phone number and a brief description of the problem. All e-mail requests will be answered by close of the next business day.

Regulation E

Record of Transaction

You will receive a monthly statement showing the status of your account(s), transactions made during the past month, and any charges, which we may impose, for such services or transactions.

Errors and Questions Involving Consumer Accounts

This section applies only to transactions covered by this agreement and that involve consumer accounts. In case of errors or questions about your electronic transfers or payments, you should contact the address or phone number above as soon as you can. We must hear from you no later than 60 days after you receive the first statement in which the problem or error appeared. If you tell us orally, we may require that you send us your complaint or question in writing within ten (10) business days. We will tell you the results of our investigation within 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 days to investigate your complaint or question. If we decide there was no error, we will send you a written explanation within three (3) business days after we finish our investigation. You may ask for copies of documents that were used in our investigation.

Liability for Unauthorized Transfers/Transactions from Consumer Accounts

This section applies only to transactions from consumer accounts.

If you notify us of a loss, your liability for unauthorized transfers or payments will be as follows:

• If you contact us within two business days of the loss or your discovery of the loss, you can lose no more than $50.00 if someone used your Login Codes without your permission.

• If someone used your Login Codes without your permission, you could lose as much as $500 if you do not contact us within two business days after you learn of the loss and we can prove that we could have prevented the loss if you had contacted us.

• Also, if your monthly statement shows transfers or payments that you did not make and you do not contract us within 60 days after the statement was mailed to you, you may not get back any funds lost during those 60 days, if we can prove that your contacting us would have prevented those losses.

Your Liability

You agree to the terms of this Online Banking Disclosure. You are liable for all transactions that you authorize. If you have given someone your Online Banking Code or other means of access and want to terminate that person’s authority you must change your identification number and password and make the Bank aware of your intentions in writing.

Account Restrictions

Your name must appear in the legal title of both accounts in order to make transfers between accounts. You may not transfer between accounts with legal or signature restrictions. However, an account may be viewed if you are an authorized signer on the account.

Limits on Online Banking Transactions

All transactions performed through our Online Service will be considered a Preauthorized Electronic Funds Transfer.

Our Liability for Failure to Complete Payments or Transfers

If we fail to complete a transaction from a consumer account on time or in the correct amount, when properly instructed by you, we will be liable for damages caused by our failure unless:

• The account has been closed or is not in good standing.

• Your equipment or ours was not working properly and the breakdown should have been apparent to you when you attempted to conduct the transaction.

• You have not given us complete, correct or current account numbers or other identifying information so that we can properly credit your account or otherwise complete the transaction.

• You do not properly follow our instructions or if you provide us with wrong or inaccurate information or fail to correct or tell us about any inaccuracy of which you are aware.

• You do not instruct us soon enough for your payment or transfer to be received and credited by the time it’s due.

• The funds in the account from which a payment or transfer is to be made are subject to legal process or other claims which restrict the transactions.

• Circumstances or persons beyond our control prevent, delay, intercept or alter the transaction, despite reasonable precautions that we have taken.

• There are insufficient funds in your account to complete the transactions.

• We have reason to believe that the transaction requested is unauthorized.

• The failure was caused by an act of God, fire, or other catastrophe, or by an electrical or computer failure or by other causes beyond our control.

In all cases, we shall only be liable for actual proven damages if the failure to make the transaction resulted from a valid error despite our attempts to avoid such error.

Change of Terms

We reserve the right to amend or terminate the services offered from time to time and we will notify you a minimum of 30 days prior to any change by written notice to your last known address.

Waiver of Agreement

Any waiver of any term of this Agreement by us on occasion will not prevent us from asserting our rights to these terms in the future.


You may terminate the Agreement and your Online Banking Service at any time upon giving written notice of the termination to us. If you terminate, you authorize us to continue making transfers and bill payments you have previously authorized until we have had a reasonable opportunity to act upon termination notice. Once we have acted upon your termination notice, we will make no further transfers or payments from your account. If we terminate your use of your subscribed Online Service, we reserve the right to make no further transfers or payments from your account, including any transaction you have previously authorized.

Disclosure of Account Information

We will disclose information about your account or the transactions you make to third parties when the following apply:

• where it is necessary to complete transactions;

• to verify the existence and standing of your account with us upon the request of a third party, such as a credit bureau;

• in accordance with your written permission;

• in order to comply with court orders or government or administrative agency summonses, subpoenas, orders, examinations and escheat reports; and/or

• On receipt of certification from a federal agency or department that a request for information is in compliance with the Right to Financial Privacy Act of 1978.

Our Policy and Terms and Conditions on all Accounts are available at any of our banking offices upon request.