TERMS AND CONDITIONS FOR ONLINE BANKING SERVICES REGULATION E

Smackover State Bank Online Banking Services Disclosure and Customer Agreement Pursuant to Electronic Funds Transfer Act and Regulation E

The purpose of the Agreement is to define the rights and duties between the customer ("you" and "your") and Smackover State Bank ("we", "our" and "us") in connection with our online electronic interactive transaction processing services (the "Services") and to make certain disclosures pertaining to the Services which are required by law.

Scope of Services

You authorize us to provide you the Services through such third-party servicers as we may select from time to time via our Internet Web site (currently, www.smackoverbank.com). You may use the Services to:

(1) Make payments to merchants who have previously consented to accept payments through our service.

(2) Access bank account information and make such other online banking transactions as are more fully described on our Web site.

We reserve the right to modify the scope of the services at any time.

You may not use the Services to pay taxes, court-ordered payments or anything else to any governmental entity. We reserve the right to refuse to make any payment or transfer you request.

Use of the Services

The Services will not work unless you use them properly. You accept responsibility for making sure that you understand how to use the Services before you actually do so, and then that you always use the Services in accordance with the online instructions posted on our Web site, including, but not limited to, the Online Banking User Guide page on our Web site. You also accept responsibility for making sure that you know how to properly use your computer equipment, your Internet browser software, and any personal financial management software which you use. We may change or upgrade the Services or the appearance or operation of our Web site from time to time. In the event of such changes or upgrades, you are responsible for making sure that you understand how to use the Services as changed or upgraded. We will not be liable to you for any losses caused by your failure to properly use the Services or your computer equipment.

Limitation on Frequency and Amount of Transactions

There are no limits set. We reserve the right to establish limitations in the future.

Your Account

You agree to maintain one or more checking accounts with us from which you will make the payment transactions initiated through the Services. You agree to keep a balance in your account sufficient to cover all payment transactions and all fees for which you are responsible in connection with the Services. We will not be liable to you for any losses caused by the closing of your account, any levy or execution upon your account, or by your failure to keep sufficient funds in your account.

Joint Accounts

If the accounts you have designated for access through the Services include both joint accounts and accounts which are in your name only, then the other customer(s) on the joint account will have access to all accounts designated, including the accounts which are in your name only. By designating for inclusion in the services both joint accounts and accounts which are in your name only, you consent to such access and you ratify all transactions which the other customer(s) make on accounts which are in your name only, just as if the other customer(s) were authorized signers or makers on accounts which are in your name only.

Payment Dates and Business Days

For each transaction you initiate through the Services, you agree to designate the payment date on which you desire funds to be delivered to your targeted merchant. The payment date must be a business day. A business day is any day Monday through Friday which is not a Federal Reserve Bank holiday. You agree that if you designate a payment date which is not a business day for a one time payment, then the payment date will deemed to be the next business day. You acknowledge that recurring payments scheduled on a non-business day will post the next business day. You acknowledge that it is essential that the payment date be before the merchant's due date. You further acknowledge that, since the time for processing your transactions varies according to merchant, it is essential that you become familiar with the payment processing time for each merchant you desire to pay and to allow a sufficient number of business days between the date you input the transaction and the payment date. We will not be liable to you for any losses caused by your improper designation of a payment date or by your failure to allow a sufficient number of business days between the date you input the transaction and the payment date.

Processing Methods

To facilitate delivery of funds, you authorize us and anyone acting for us, including our third-party servicers, to choose whatever method for processing your transaction which we, in our sole discretion, deem to be the most effective. Subject to your proper use of the Services, we will deliver funds to your targeted merchant as close as reasonably possible to the payment date designated.

Confirmation Numbers

We will provide you with a confirmation number for each transaction which you properly initiate through the Services. If you do not receive a confirmation number, it probably means that something is wrong with the transaction. We will not be liable to you in connection with any transaction or attempted transaction for which you do not receive a confirmation number.

Security Precautions

You agree to read all notices posted on our Web site regarding security, including, but not limited to, the Online Banking Security Overview page, before you actually use the Services. By using the Services, you agree to the sufficiency of the security precautions as described on our Web site. The main security device guarding your use of the services is the security code feature of the Services. You agree to keep your security code secret. We will not be liable for any losses resulting from your permitting other persons to use your security code.

Your Liability for Unauthorized Transactions

Tell us AT ONCE if you believe your security code has been lost, stolen or used without your authorization. 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 have one). If you tell us within 2 business days, you can lose no more than $50.00 if someone used the Services with your security code without your permission. If you do NOT tell us within 2 business days after you learn of the loss, theft or unauthorized use of your security code and we can prove we could have stopped someone from using the Services 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, 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 making the transfer 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 may extend the time periods to a reasonable time.

Your Liability for Transactions Paid in Overdraft

In the event that we process a payment transaction for which there are insufficient funds in your account, then you agree to reimburse us for the payment within fourteen (14) days of our request to you for such reimbursement.

Our 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 this Agreement, 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, or

(2) If the transfer would go over the credit limit on your overdraft line, if you have one, or

(3) If the Services were not working properly and you knew about it when YOU started the transfer, or

(4) If circumstances beyond our control (such as fire, flood, weather or other emergency) prevented the transfer, despite reasonable precautions that we have taken, or

(5) If the funds in your account are subject to legal process or other encumbrances restricting the transfer, or

(6) If we are holding uncollected funds in your account and the transfer would require the use of those funds, or

(7) If another person or entity which is supposed to initiate the transfer, such as an insurance company or the Social Security Administration, fails to send to us the appropriate authority or information for the debit or credit, or

(8) If the delivery of data from a Federal Reserve Bank is later than the opening of business of the effective date of a preauthorized transfer, or

(9) If you sustain losses entirely caused by or attributable to third parties (such as telecommunications providers, merchants or our third-party servicer), or

(10) If your computer software or hardware fails to perform or if there are technical or editorial errors or omissions contained in any instructions pertaining to the Services or your computer software or hardware, or

(11) If the merchant mishandles or delays handling payments sent by us.

Charges for the Services

You agree to pay for the Services in accordance with our current fee schedule, and as amended from time to time. You authorize us to automatically charge your account for all fees you incur in connection with the Services. In the future, we may add to or enhance the features of the Services. By using such added or enhanced features, you agree to pay for them in accordance with the fee schedule.

Periodic Statements

If your account is a checking account, you will get a monthly account statement. If your account is a savings account, you will get a statement at least semi-annually.

Procedure for Resolving Errors

Smackover State Bank
Electronic Banking
125 West Fifth Street
El Dorado, Arkansas 71730
Phone: 1-870-862-5121
Customer Service hours are: 9:00 a.m. to 5:00 p.m. (Central Time) Monday through Friday

Telephone or write us at the Customer Service center telephone number and address shown above as soon as you can if you think your statement is wrong or if you need more information about a transfer listed on your statement.

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.

(2) Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is in 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 questions in writing within ten (10) business days. We will tell you the results of our investigation 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 recredit 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 recredit your account.

If we decide that there was no error, we will send you a written explanation within 3 business days after we finish our investigation, and we will debit your account for the amount previously recredited to you for use during the time we took to complete our investigation. You may ask for copies of the document that we used in our investigation.

Disclosure of Account Information

We will disclose information to third parties about your account or the transfers you make: (1) Where it is necessary for completing transactions, or

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

(3) In order to comply with government agency or court orders, or

(4) If you give us your written permission.

Your Right to Documentation of Transfers

(A) You will receive a confirmation number for individual transfers which you properly initiate through our Services.

(B) You will get a monthly account statement unless there are no electronic transfers in a particular month. In any case, you will get the statement at least semi-annually.

Suspension of the Services

If you use the Services improperly, we may suspend your use of the Services without prior notice to you. In the event of such suspension, you will remain responsible for all transactions which you have initiated through the Services prior to such suspension and for all other fees incurred in connection with the Services. You acknowledge that suspension of your use of the Services does not cancel or suspend transactions which are then outstanding.

Termination of the Services

We may terminate your use of the Services, in whole or in part, at any time and for any reason, without prior notice to you. You may cancel your use of the Services upon thirty (30) days prior notice to our Customer Service Center. You will remain responsible for all payment transactions which you have initiated through the Services prior to such cancellation and for all other fees incurred in connection with the Services. You acknowledge that cancellation of your use of the Services does not cancel payment transactions which are then outstanding.

Other Terms and Conditions

This Agreement, any online instructions pertaining to the Services, and our fee schedule may be changed or amended only by us. We will notify you of any such change or amendment. Your use of the Services following your receipt of such notice will constitute your acceptance of and agreement to the change or amendment. If you fail to pay any amount owed to us when due, then you agree to additionally pay us interest on such amount at the rate of 1.5% per month, or the maximum allowable by law, whichever is less. If we retain an attorney to collect any amounts owing by you, then you agree to pay all costs and expenses incurred in collecting such amounts, including a reasonable attorney's fee. The Agreement supersedes any prior agreement or representations made by us in connection with the Services. The operation of your account is governed by a separate Account Agreement, a copy of which was furnished to you at the time you opened your account. The Account Agreement is a part of this Agreement, and its terms and conditions apply to the use of your account in connection with the services. If this Agreement and the Account Agreement conflict, then this Agreement controls.

This agreement will be construed in accordance with the law of the state of your residence if you reside in a state in which we operate a branch office; otherwise, this Agreement will be construed in accordance with Arkansas law.