Internet Banking Agreement

This Online Agreement ("Agreement") governs your use of EmigrantDirect Internet Banking ("EmigrantDirect") and does not cover any other service offered by Emigrant Bank. Rules and regulations pertaining to the other accounts you maintain with Emigrant are covered in the specific account disclosures that are in effect.

By subscribing to or using EmigrantDirect, you agree to the terms of this Agreement. Please read this Agreement carefully and print a copy for your records. In this Agreement, "you" or "your" refers to the person(s) subscribing to or using EmigrantDirect, "we", "us" or "our" refers to EmigrantDirect and any agent, independent contractor, designee, or assignee EmigrantDirect may, in its sole discretion, involve in the provision of EmigrantDirect.

EmigrantDirect Access

In order to use EmigrantDirect, you must have an Internet Service Provider (ISP) and a Web browser that supports the level of encryption employed by EmigrantDirect, currently 128-bit. EmigrantDirect may change these requirements from time to time. If any of these requirements change, we will provide you with advance notice of the change.

Accessing EmigrantDirect via the Internet means you agree to receive electronic communications in connection with these services. These include, but are not limited to, our EmigrantDirect agreements and amendments thereto, all service and product disclosures, notices, responses to claims, service history and transaction records, privacy policies, and all legal, regulatory and other communications related to the service. This requires that you keep your email address as listed in your profile up-to-date. This also requires that you have Acrobat Reader software. If you do not currently have this software, you can download it free at www.adobe.com.

EmigrantDirect and Your Privacy

As part of your enrollment in EmigrantDirect, you may be asked to provide information that will help us determine how we may best serve you. No information is sold to third parties by EmigrantDirect, or provided to any business that is not affiliated with EmigrantDirect or has been contracted by EmigrantDirect to provide services relating to this Agreement. We may, however, use this information from time to time to send special offers or information notices to our customers. For more information, click here to see our complete privacy policy.

EmigrantDirect Security

EmigrantDirect is designed to safeguard your EmigrantDirect transactions from unauthorized use. Our product uses several levels of protection: Your Customer Identification (User ID) and Password, and encryption of your EmigrantDirect information. Additional protection is provided by "firewalls" at our EmigrantDirect location, and by policies that restrict access to your account information to those who need it to support you as a customer.

Encryption

Encryption is a method of scrambling your information, including your User ID and Password, so that it cannot be read by others. The information you enter is encrypted by your browser, and is only decrypted (unscrambled) when it reaches the EmigrantDirect system. Encryption prevents people who should not have access to your information from guessing your Password, reading your information stored on your hard drive, and capturing and reading information that is being sent to and from our EmigrantDirect system.

Password Protection

When you enroll in our EmigrantDirect service, you will create a User ID and Password. Together your User ID and the Password you select identify you as a EmigrantDirect customer and the accounts you are allowed to access. You will be asked to supply your User ID and Password each time you log on. No one can access your account information without supplying the correct User ID and Password. To help safeguard your Password, you should keep it confidential. If you authorize another person to use your User ID and Password, then you are responsible for all transactions they may perform .

What You Can Do To Protect Your Account

• Do not share your Password with anyone.
• Do not store your Password in a conspicuous place.
• Exit from your EmigrantDirect service when you are finished using it.
• Do not walk away from your computer while logged on to EmigrantDirect.
• Use anti-virus software to keep your PC clean and free of viruses.
• Review and reconcile your account activity on a regular, timely basis.
• Clear your browser's cache on a regular basis in order to remove copies of Web pages that may be stored temporarily on your system. See your browser HELP area for information on how to clear your cache.

Your User ID and Password

Prior to using EmigrantDirect, you will be prompted for your User ID and Password to access the service. You authorize us to follow any instructions entered through EmigrantDirect using your Password. Because your Password is used to access money and information about your accounts, you should treat your Password with the same degree of care and secrecy that you use to protect your ATM card PIN or other sensitive personal financial data. You should choose a User ID and a Password that you can remember easily since your access to the data using EmigrantDirect would be interrupted if you forget either of them. You agree not to give your Password, or make it available, to any person not authorized to access each of your Accounts. If you forget your Password, the online system will help you select a new one. However, an excessive number of attempts to log on using the wrong Password or User ID will result in your being locked out. You must call us at 800-836-1997 to obtain a new password, and your e-mail address must be up to date.

EmigrantDirect Functions - Balance Inquiries and Transfers

You may use EmigrantDirect to check the balance of your accounts and to transfer funds among your linked accounts. According to Federal Regulations, you may not make more than six (6) pre-authorized or automatic transfers from your savings account during any monthly statement period. The balance shown online may include deposits still subject to verification by us. The balance shown may also differ from your records because it may not include deposits in progress, or other withdrawals, or charges. If there are insufficient funds in an account from which you are requesting a funds transfer, the transfer will not be completed and you will be notified. A confirmation of your online transaction can be printed out for your records. Transfers to and from your external funding account (External Transfers) are processed via the Automated Clearing House (ACH). The cutoff time for transmitting External Transfers is 5:00 PM ET. External Transfers set up prior to the cutoff time will be processed on the next business day. External Transfers set up after the cutoff time or on a Saturday, Sunday or legal holiday will be processed on the following business day.

Electronic Messaging

EmigrantDirect provides you with the ability to send and receive electronic messages to and from us. Within the EmigrantDirect program, e-mail is secure. Please remember that we may not immediately receive an electronic message sent by you. No action will be made on any electronic message you send us until we actually receive your message and have a reasonable opportunity to act on it. You cannot use electronic messaging to originate an account inquiry or funds transfer.

Statements

Your monthly statements, which include all of your transactions, are displayed in an electronic format. Statements are maintained for 24 months.

Our Liability for Failure to Complete Transactions

We will process and complete all transfers properly initiated through EmigrantDirect in accordance with the terms of this Agreement. However, we will not be liable for, among other things:

• If, through no fault of ours, you do not have enough available funds in your account to make the transfer.
• If the funds are subject to legal process or other encumbrance restricting the transfer.
• If EmigrantDirect is not working properly and you knew, or had reason to question the possibility of the malfunction when you started the transfer.
• If your PC system, its modem and/or related operating systems and software are not working properly, including, without limitation, problems caused by the presence of a computer virus, and such failure to work properly is the substantial cause of the failure to complete the transfer under the terms of this Agreement.
• If your ISP is not working properly, including without limitation, problems caused by the presence of a computer virus and such failure to work properly is the substantial cause of the failure to complete the transfer under the terms of this Agreement.
• If circumstances beyond our control (such as fire, flood, delay in the U.S. Mail, or power failure or system failure) prevent the proper completion of the transaction despite reasonable precautions by us to avoid the circumstances.
• If there is any loss, damage or injury resulting from (i) an interruption in your electrical power or telephone service (ii) the disconnecting of your telephone line by your local telephone company or from deficiencies in your line quality; or (iii) any defect or malfunction of your PC, modem or telephone line. We are not responsible for any EmigrantDirect transactions other than those specified in the Agreement.
• If you are trying to defraud us.
• If we are otherwise exempted from liability under Applicable Laws and Regulations.
• The above are just some examples as to where we would not be liable and is not intended to list all such circumstances. However, in no event will our liability for failure to complete a transfer exceed the amount of the transfer.

Other Liabilities

Except as otherwise provided in this Agreement or by law, EmigrantDirect will not be liable for any loss, injury, or damage, whether direct, indirect, special, or consequential, caused by EmigrantDirect or the use thereof or arising in any way out of the installation, use or maintenance of software, including without limitation, loss or damages caused by the presence of a computer virus.

Business Days/Hours of Operation

EmigrantDirect is available seven days a week, for scheduling, modification, or review of transactions and balance inquiries except during regularly scheduled daily maintenance periods and from time to time as necessary. If we are performing maintenance, you will be able to view your balances which will be as of the close of business on the prior day and set up transfers. Any transfers you set up during this time will be completed in accordance with our next regularly scheduled processing time.

Notice of Your Rights and Liabilities

If you permit others to use EmigrantDirect or your password, you are responsible for any transactions they authorized relating to your accounts. Tell us AT ONCE if you believe that your password has been lost or stolen. Otherwise, you could lose all of the money in your accounts accessed by the password plus your maximum overdraft line of credit, if applicable. Telephone us immediately if you believe your password has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, at: 800-836-1997

or write to:

EmigrantDirect
13 Croton Avenue
Ossining, NY 10562

If you tell us within two (2) business days after you discover that your password has been lost or stolen, you can lose no more than $50.00, if someone used your Password without your permission. If you do not tell us within two (2) business days after you learn of the loss or theft of your Password, and we can prove we could have stopped someone from using your Password without your permission if you had told us, you could lose as much as $500.00. Also, if your statement shows transfers that you did not make or authorize, tell us at once. If you do not tell us within 60 days after your statement date, 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 hospital stay) prevented you from telling us, we can at our discretion extend the aforementioned time periods.

Errors and Questions

In case of errors or questions about your electronic transfers listed on your statement or appearing on the Account Activity screen of EmigrantDirect, you should do one of the following, as soon as possible:

Telephone EmigrantDirect Customer Service at 800-836-1997

or write to

EmigrantDirect
13 Croton Avenue
Ossining, NY 10562

or initiate an Inquiry using the online messaging available in your EmigrantDirect service.

We must hear from you no later than sixty (60) days after you receive the FIRST statement on which the problem or error appears. Tell us your name and account number. Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information. Tell us the dollar amount of the suspected error. In accordance with Federal Regulations, 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 (45) days to investigate your complaint or question. If we decide to do this, we will provisionally re-credit your account within ten (10) business days for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and do not receive it within ten (10) business days, we may not re-credit your account. If we decide there was no error, we will send you a written explanation within three (3) business days after we finish our investigation (either by U.S. Mail or the online messaging system available in your EmigrantDirect service). You may ask for copies of documents that we used in our investigation.

Disclosures of Account Information to Third Parties

We will disclose information to third parties about your Accounts or the transactions you make as follows:

Where it is necessary for completing a transaction; in order to verify the existence and condition of your account for a third party, such as a credit bureau or payee; in order to comply with a governmental agency or court order; if you give us permission, which we may require in writing; in order to collect information for our internal use, the use of our service providers, and our servicing agents and contractors concerning our electronic fund transfer service; if it involves a claim by or against us concerning a deposit to or withdrawal from your account, or where otherwise required or permitted under state of federal laws and regulations.

Authorization to Obtain Information

You agree that we may obtain and review your credit report from an authorized credit bureau.

Termination

You may terminate your use of EmigrantDirect at any time by calling us at 800-836-1997,
or by writing to

EmigrantDirect,
13 Croton Avenue
Ossining, NY 10562.

You may also send an electronic message to EmigrantDirect via your EmigrantDirect service or e-mail us at CustomerService@EmigrantDirect.com. Termination will not affect your liability or obligations under this Agreement for transactions we have processed on your behalf.
Additionally, we may close your account, in our sole discretion, with or without cause.

Inactive Accounts

If there have been no Account inquiries or transfers using the EmigrantDirect service for an extended period of time, your account may be considered inactive. An inactive account will be escheated to the respective state of your residence in accordance with Applicable Law and Regulations.

Entire Agreement

This Agreement is the complete and exclusive agreement between you and us related to EmigrantDirect and supplements any other agreement or disclosure related to your accounts including the Deposit Account Disclosures with respect to EmigrantDirect. In the event of a conflict between this Agreement and any other agreement or disclosures related to any of your accounts or any statement by our employees or agents, this Agreement shall control.

Waivers

No delay or omission by us in exercising any rights or remedies thereunder shall impair such right or remedy or be construed as a waiver of any such right or remedy. Any single or partial exercise of a right or remedy shall not preclude further exercise therefore or the exercise of any other right or remedy. No waiver shall be valid unless in writing signed by us.

Assignment

You may not assign this Agreement to any other party. We may assign this Agreement or delegate any or all of our rights and responsibilities under this Agreement to any third parties.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of New York. The account relationship established herein shall be governed by the law of the State of New York without regard to the conflicts of law provisions thereof. In establishing an account herein, the depositor agrees that the United States courts sitting in the State of New York shall have jurisdiction over it, and that the venue of any such action shall be the Southern district of New York. By opening this account, the depositor hereby waives any objection to such jurisdiction and venue.

Amendments

We may amend or change any of the material terms and conditions of this Agreement at any time upon at least thirty (30) days written notice to you prior to the effective date of any such change or amendment. If you do not agree to the change or amendment, you must notify us prior to the effective date of the change or amendment and cancel your access to EmigrantDirect. Notwithstanding the forgoing, we may amend or change the term(s) or condition(s) without prior notice to you if the change is immaterial or does not result in higher fees, more restrictive service use, or increased liability.

Fees

No monthly fees are charged for EmigrantDirect.