ACCOUNT DISCLOSURES

Dear Customer:

Federal and State banking laws govern much of our relationship with you. In particular, laws concerning negotiable instruments, deposit accounts and how we treat activity of these accounts. Complete disclosures of our fees and charges are in this statement. Please read for further details.

• Equal Housing Lender Policy
• Truth in Savings Disclosure
• Electronic Funds Transfer Disclosure
• Funds Availability Disclosure

EQUAL HOUSING LENDER POLICY

We Do Business in Accordance With Federal Fair Lending Laws

UNDER THE FEDERAL FAIR HOUSING ACT, IT IS ILLEGAL, ON THE BASIS OF RACE, COLOR, NATIONAL ORIGIN, RELIGION, SEX, HANDICAP, OR FAMILIAL STATUS (HAVING CHILDREN UNDER THE AGE OF 18), TO:

• Deny a loan for the purpose of purchasing, constructing, improving, repairing or maintaining a dwelling, or deny any loan secured by a dwelling; or
• Discriminate in fixing the amount, interest rate, duration, application procedures or other terms or conditions of such a loan, or in appraising property.

IF YOU BELIEVE YOU HAVE BEEN DISCRIMINATED AGAINST, YOU SHOULD SEND A COMPLAINT TO:

Assistant Secretary for Fair Housing and Equal Opportunity
Department of Housing & Urban Development Washington, DC 20410
For processing under the Federal Fair Housing Act and to:
Division of Compliance and Consumer Affairs
Federal Deposit Insurance Corporation
Washington, DC 20429-9990
For processing under FDIC regulations

UNDER THE EQUAL CREDIT OPPORTUNITY ACT, IT IS ILLEGAL TO DISCRIMINATE IN ANY CREDIT TRANSACTION:

• On the basis of race, color, national origin, religion, sex, marital status, or age,
• Because income is from public assistance, or
• Because a right was exercised under the Consumer Credit Protection Act.

IF YOU BELIEVE YOU HAVE BEEN DISCRIMINATED AGAINST, YOU SHOULD SEND A COMPLAINT TO:

Division of Compliance and Consumer Affairs
Federal Deposit Insurance Corporation
Washington, DC 20429-9990

TRUTH IN SAVINGS DISCLOSURE

The FDIC Improvement Act of 1991 contained within it the Truth in Savings Act. The purpose of this act is to enable consumers to make informed decisions about deposit accounts in depository institutions.

ELECTRONIC FUNDS TRANSFER DISCLOSURE

FEDERAL ELECTRONIC FUND TRANSFER ACT DISCLOSURES

IMPORTANT INFORMATION for our customers who have authorized electronic fund transfers: The Electronic Fund Transfers we are capable of handling are indicated below, some of which may not apply to your account. Please read this disclosure carefully because it tells you your rights and obligations for these transactions.

TYPES OF TRANSFERS AVAILABLE

• Point of Sale Transfer
• Automated Teller Machine Transfer
• Direct Deposit or withdrawal of funds
• Transfer Initiated by Telephone
• All Debit Card Transfers

1. AUTOMATED TELLER MACHINES, DEBIT CARDS AND POINT-OF-SALE TRANSFERS
   1. ACCESSING YOUR ACCOUNT
      1. Withdraw cash from your checking or savings account.
      2. Make deposits to your checking or savings account.
      3. Transfer funds between your checking and savings accounts whenever you request.
      4. Pay for purchases at places that have agreed to accept the card. Some of these services may not be available at all terminals.
   2. LIMITATIONS
      1. Limitations on frequency of transfers. In addition to those limitations on transfers elsewhere described, if any, the following limitations apply:
         1. Transfers from a Money Market account to another account or third party by preauthorized, automatic, or telephone transfer are limited to six per statement cycle with no more than three by check or similar order to third parties
         2. Transfers from a Savings Account to another Account or third party by preauthorized, automatic, or telephone transfer are limited to three per statement cycle.
      2. Limitations on dollar amounts of transfers:
         1. You may withdraw up to $300.00 using an ATM card from ATM terminals each day.
         2. You may withdraw up to $500.00 using our Debit Card from ATM terminals each day.
         3. You may buy up to $2500 worth of goods or services each day when making a Debit Card transfer.
         4. Deposits may not be available for immediate withdrawal.
   3. CHARGES FOR TRANSFERS OR RIGHT TO MAKE TRANSFERS:
      1. There will be a charge of $1.00 for each cash withdrawal at ATM’s we do not own or operate.
      2. There will be a $10.00 charge for each replacement card.
      3. If an ATM withdrawal is made and the funds are not on deposit, a $25.00 insufficient funds fee will be assessed and your ATM card may be revoked.
      4. There will be a $1.00 charge for each balance inquiry at ATM’s we do not own or operate.
         
   4. ATM FEES BY OTHERS
   • If you use an ATM that is not operated by this Institution, the operator of the machine and / or an automated transfer network may charge you a fee. This amount is in addition to any fee we may charge.
     
   5. RECEIPT FOR TRANSACTION
   • You will receive a written receipt at the time you make any transfer to or from your account using one of our automated teller machines.
     
   6. CUSTOMER LIABILITY
      
      • Tell us AT ONCE if you believe your card 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 without permission.
      • If you do NOT tell us within 2 business days after you learn of the loss or theft of your card, and we can prove we could have stopped someone from using your card 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.
   7. HOW TO CONTACT US
      • If you believe that your card has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, or if for any reason you wish to contact us, telephone us at the phone number given below or write us at the address given below.
2. ELECTRONIC FUNDS TRANSFER BY PREAUTHORIZATION
   1. PREAUTHORIZED TRANSFERS
      We are equipped to:
      1. Accept certain direct deposits to your checking account.
      2. Pay certain recurring bills from your checking account.
      3. Accept certain direct deposits to your savings account.
      4. Pay certain recurring bills from your savings account.
   2. LIMITATIONS ON FREQUENCY OF TRANSFERS:
      • Transfers from a money market deposit account to another account or third party by preauthorized, automatic, or telephone transfer are limited to six per month or statement cycle with no more than three by check, debit card or similar order to third parties.
   3. CHARGES FOR ELECTRONIC FUND TRANSFERS:
      1. We do not charge for direct deposits to any type of account.
      2. Except as indicated elsewhere, we do not charge for electronic fund transfers.
      3. We assess the same charge that applies to your account for “written checks” for each preauthorized payment and/or each ATM withdrawal.
      4. We will charge $20.00 for each stop payment order for preauthorized transfers.
3. RIGHT TO DOCUMENTATION
   1. DIRECT DEPOSITS
      • 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 the phone number given to find out whether or not the deposit has been made. If the only possible transfers to or from your account are preauthorized deposits, you will get quarterly statement from us.
   2. PERIODIC STATEMENTS
      • You will get a monthly account statement from us unless there are no transfers in a particular month. In any case, you will get a statement at least quarterly. (Checking, N.O.W., Money Market Accounts)
   3. PASSBOOK ACCOUNTS
      • If the only possible transfers to or from your passbook account are preauthorized deposits, we send periodic statements.
   4. STOP-PAYMENT PROCEDURES AND NOTICE OF VARYING AMOUNTS
      1. 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 below in time for us to receive your request three 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.
      2. 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.)
      3. Liability for failure to stop payment of Preauthorized Transfer.
      • If you order us to stop one of these payments three business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages.
   5. CUSTOMER LIABILITY
      • If your statement shows unauthorized transfers from your account, tell us at once. If you do not tell us within 60 days after we sent you the FIRST statement upon which the problem appeared, 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 period.
   6. HOW TO CONTACT US
      • If you believe that a transaction involving your account has been made without your permission, or if for any reason you wish to contact us, telephone us at the phone number given below or write us at the address given.
4. DISCLOSURES WHICH APPLY TO ALL ELECTRONIC FUND TRANSFERS.
   1. PERIODIC STATEMENTS:
   • CHECKING: You will get a monthly account statement.
   • SAVINGS: You will get a quarterly account statement.
   2. ACCOUNT INFORMATION DISCLOSURE
      We will disclose information about your account or the transfers you make:
      1. Where it is necessary to complete 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 agencies or court orders, or
      4. If you give us your written permission.
   3. 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 where we will not be liable:
        1. If, through no fault of ours, you do not have enough money in your account to make the transfer.
        2. If the transfer would go over the credit limit on your overdraft line, if applicable.
        3. If your account is frozen because of a court order or some similar reason.
        4. If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken.
        5. There may be other exceptions stated in our agreement with you.
   4. UNAUTHORIZED TRANSFERS
      • 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 long trip or a hospital stay, kept you from telling us, we will extend the time period. If you believe 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 below.
   5. ERROR RESOLUTION PROCEDURES
      • In case of errors or questions about your electronic transfers:
      • Telephone us or write us at the phone number or address given below, 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 you 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.
           1. Error Resolution Notice
              • We will determine whether an error occurred within 10 business days after we hear from you and we will correct any error promptly. If we need more time, however, we may take up to 45 days to investigate your complaint or question. If we decide to do this, we will credit your account within 10 business days for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account.
              • 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.
           2. Extension of the time period - New Accounts The time periods noted above are extended as follows:
              1. The applicable time is 20 business days in place of 10 business days if the notice of error involves an electronic fund transfer to or from the account within 30 days after the first deposit to the account was made.
              2. The applicable time is 90 days in place of 45 days of investigation, if a notice of error involves an electronic fund transfer that:
                 1. Was not initiated within a state;
                 2. Resulted from a point - of - sale debit card transaction; or
                 3. Occurred within 30 days after the first deposit to the account was made.
              • You may ask for copies of the documents that we used in our investigation.
   6. MAILING ADDRESS, TELEPHONE NUMBER AND BUSINESS DAY DISCLOSURE
      1. Our mailing address is: P.O. Box 68, 20 South Main Street, Hiawassee, Georgia 30546
      2. Our phone number is: (706) 896-2243
      3. Our email address is info@hiawassee.com
      4. Our business days are: Monday thru Friday (Holidays are not included)

FUNDS AVAILABILITY DISCLOSURE

Our policy is to make funds from your 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. At this time, you can withdraw the funds 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 any 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. We have different cut-off hours for different locations. Our cut-off hours are as follows: 2:30 p.m. Main Office; 2:00 p.m. Young Harris; 2:00 p.m. Ingles Supermarket Branches; 2:00 p.m. Bank of Blairsville; 3:00 p.m. Internet Branch. If you make a deposit before our cut-off hour 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 our cut-off hour or on a day we are not open, we will consider that the deposit was made on the next business day we are open.

LONGER DELAYS MAY APPLY

In some cases, we will not make all of the funds that you deposit by check available to you on the first business day after the day of the 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. However, the first $100 of your deposit will 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 would be available.

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

We believe a check you deposited 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 communications or computer 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 will 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 $5000 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 will be available on the tenth business day after the day of your deposit.