First National Bank of Oklahoma – Compliance Policy    

Regulation E – Electronic Fund Transfers Act

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PURPOSE

Regulation E establishes the rights, liabilities and responsibilities of consumers who use electronic fund transfers (EFT) services and protects consumers using EFT systems. It sets up a resolution procedure for EFT errors and covers notice of crediting and stop payment of pre-authorized payments to and from a customer’s account.

COMPLIANCE RESPONSIBILITY

The Compliance Officer has the responsibility for compliance with this regulation.

BANK POLICY

1. Account Disclosures

At the time a customer contracts for EFT services, a written disclosure of the terms and conditions outlined in the Act will be provided to them for each account, provided the services are initiated through First National Bank of Oklahoma. Initial disclosures will also be provided to customers opening new accounts with EFT capabilities. If any of the disclosed terms and conditions is changed to adversely affect a customer’s account, the Bank will notify them in writing at least 21 days before the effective date of the change, unless the change is necessary to maintain or restore system security.

The customer will be mailed a periodic statement for each electronic fund transfer account that will include all required information as outlined in the Act. Periodic statements for most accounts will be sent each month.

For EFTs initiated at an electronic terminal, a written receipt will be made available to the consumer at the time of the transaction.

2. Pre-authorized Transfers

The Bank will obtain written authorization from consumers who initiate transfers through the Bank. Consumers will be provided with a phone number on each periodic statement, which may be used to verify that pre-authorized transfers have occurred.

Consumers will be allowed to stop payment on a pre-authorized transfer at any time up to 3 business days from the scheduled date of the transfer. A written confirmation of stop payment will be required within 14 days of any oral request.

3. Issuance of EFT Devices

The Bank will issue EFT devices (ATM and/or Debit card) only in response to an application or as a renewal or substitute for a previously accepted card. Prior to issuing a card the customer’s identity will be verified with a photo ID.

4. Requirement for overdraft services

First National Bank of Oklahoma does not have a “blanket” overdraft protection program. Our policy and practice is to decline any ATM or One-Time Debit transaction when we have reasonable belief at the time of the authorization request that the consumer does not have sufficient funds available to cover the transaction. With this practice, the “Opt-In” notice requirement does not apply to our institutions.

Beginning July 1, 2010, First National Bank of Oklahoma will not assess any fees or charges on a consumer’s account for paying an ATM or one-time debit card transaction that may come against the consumers account as an NSF or Overdraft item.

5. Requirements for gift cards

Disclosures for gift cards will be clear and conspicuous and will follow the guidelines as described in the Regulation effective August 22, 2010. They will be provided to the consumer in written or electronic form prior to the purchase of the card.

The following information will be stated on the stored value card as required:

• The amount of any dormancy, inactivity, or service fee that may be charged
• How often such fee may be assessed
• That such fee may be assessed for inactivity.

All other requirements of the regulation will be addressed and followed as described in the regulation.

6. Error Resolution

An abbreviated error resolution notice is included on the reverse side of all periodic statements mailed to consumers. The following questions or disputes will be treated as errors, subject to the regulation’s error resolution procedures:

• Notice of unauthorized electronic transfers;
• Incorrect electronic transfer to or from an account;
• Omission from the periodic statement of an electronic transfer;
• Computation or bookkeeping error;
• Receipt of an incorrect amount of money from a money machine;
• An improperly identified electronic transfer on a consumer’s receipt or statement;
• Request from a consumer for documentation, additional information, or clarification concerning an electronic transfer other than for tax or record-keeping purposes.

a. Foreign Transactions (all types)

The following time limits will be adhered to in responding to errors involving foreign transactions:

• Within 10 business days; or
• Within 90 days after the Bank has given provision credit to the consumer’s account for the alleged error. The Bank will notify the consumer within 2 business days of the provisional credit that informs the consumer that they have full use of the funds pending the outcome of the investigation.

b. Point of Sale Transactions

The following time limits will be adhered to in responding to errors involving Point of Sale transactions:

• Within 5 business days ($0.00 liability to the customer)
• Within 45 days after the Bank has given provisional credit to the consumer’s account for the alleged error. The Bank will notify the consumer within 2 business days after the provisional credit is given that informs the consumer that they have full use of the funds pending the outcome of the investigation.

c. All other errors

The following time limits will be adhered to in responding to errors involving disputes other than point of sale debit card transactions:

• Within 10 business days; or
• Within 45 days after the Bank has given provisional credit to the consumer’s account for the alleged error. The Bank will notify the consumer within 2 business days after the provisional credit is given that informs the consumer that they have full use of the funds pending the outcome of the investigation.

d. Exceptions

The following time limits will be adhered to in responding to errors involving new accounts:

• Within 20 business days;
• Within 90 days after the Bank has given provisional credit to the consumer’s account for the alleged error. The Bank will notify the consumer within 2 business days after the provisional credit is given that informs the consumer that they have full use of the funds pending the outcome of the investigation.

e. Investigation Results

If the investigation determines that no Bank error occurred, the Bank will provide a written explanation of its findings to the consumer that includes the consumer’s right to request documentation of the findings. Such notice will be delivered within 3 business days after conclusion of the investigation when the Bank has used the 45/90 day time period or within 10 business days after receiving notice of the reported error when the Bank has used the 10 day time period.

The consumer will be provided with notice of final debiting and be notified that the Bank will continue to honor any third party checks or transfers for 5 business days.

If the Bank determines that an error did occur, the Bank will correct the error within 1 business day of the determination, give notice to the consumer of the determination and if applicable, give the consumer notice that the provisional credit is the final credit.

7. Consumer’s Liability

The consumer’s liability for an unauthorized transaction is limited to $50 or the amount of the unauthorized transaction unless:

The consumer fails to notify the Bank within 2 business days after learning of the loss of the access device, in which case the consumer’s liability is limited to $500; or
The consumer fails to report within 60 days following transmittal of the periodic statement, any unauthorized transaction on the statement, in which case the consumer’s liability is limited only to the amount of the unauthorized transaction.
Point of Sale transactions—there is $0.00 liability to the customer

VIOLATIONS

Civil liabilities include:

• Actual damages sustained by the consumer;
• All costs of the action;
• Statutory damages up to $1,000 in each individual action or the lessor of $500,000 or 1% of the Bank’s net worth in a class action; and
• Attorney fees.

Criminal liabilities up to $5,000 and/or 1-year imprisonment can be imposed upon whoever knowingly or willingly gives false information or otherwise fails to comply with any provision of the Act.

The Act also imposes up to $10,000 and/or 10 years imprisonment for fraudulent activity including using, altering or selling stolen or counterfeit debit cards.

RECORD RETENTION

The Bank will maintain all disclosures and documentation of investigations for a period of 3 years.

Approved – April 2022