Thank you for investing in a Home Federal Savings & Loan Association deposit account. This document has been prepared for your reference so that you will be fully aware of the rules of your account established by the Home Federal Board of Directors.

GENERAL RULES & DISCLOSURES: Home Federal offers Home Free Checking Accounts, Home Star Checking Accounts, Home Advantage Accounts (Checking), Home Mortgage Checking Accounts, HSA Checking Accounts, Money Market Fund Accounts, Home Club Accounts (Checking), Student Checking Accounts, Mortgage Renovation Escrow Savings Account, Regular Savings Accounts, Youth Savings Accounts, and Kids Klub Savings Accounts. Account charges are contained in the Checking & Savings Account Interest & Fees Disclosures which are available upon request and will be reviewed with you when you open your account. There may be changes made from time to time by Home Federal, and you will be notified in advance of these changes in writing. All deposits received and credited by Home Federal are subject to final collection. Collected funds to cover orders drawn must be on deposit in your account the day before an order is presented or payment may be refused and a charge applied as outlined in the Fee Schedule. Home Federal Savings & Loan Association reserves the right to require at least seven days written notice prior to withdrawal or transfer of all Home Free Checking Accounts, Home Star Checking Accounts, Home Advantage Accounts (Checking), Home Mortgage Accounts (Checking), HSA Checking Accounts, Money Market Fund Accounts, Home Club Accounts (Checking), Student Checking Accounts, Mortgage Renovation Escrow Savings Account, Regular Savings Accounts, Youth Savings Accounts, and Kids Klub Savings Accounts.

You may apply for overdraft protection in the form of a Line of Credit or authorize Home Federal to establish another account as a backup account to cover insufficient fund items on your account. A charge for each transfer may be applied (see Fee Schedule). A Line of Credit generates a loan on your account when there are insufficient funds to cover transactions. When activated, you may use up to a maximum predetermined limit, and pay interest on the outstanding balance. If the balance in this account is at any time allowed to go negative, you will pay interest at the rate set by Home Federal.

Home Federal reserves the right, in its sole discretion and upon prior notice to the depositor(s), to discontinue or limit the practice of allowing withdrawals by negotiable order of withdrawal, telephone bill payment, or Internet bill payment. This prior notice shall also advise the depositor that the Association reserves the right, after a date specified, not to make a payment on any account draft drawn on the account. All items cashed or deposited will be handled by Home Federal as an agent for the depositor subject to charge back or refund if for any reason final payment is not received in a form acceptable to Home Federal. If a claim is made in respect to any item subsequent to final payment on the grounds that the item was altered or bore a forged or unauthorized endorsement, or was otherwise not properly payable, the Association may withhold the amount thereof from the account until final determinations of the claim. Negotiable order of withdrawal forms supplied by the Association may be used. Home Federal reserves the right to return any unpaid form or order presented or any order incompletely or defectively drawn. In clearing items will be paid in smallest to largest amount order. Effective June 1, 2007, clearing items will be paid in numerical order.  Home Federal reserves the right to refuse any account or further deposits in any existing account. The Association also reserves the right, at its sole discretion, to close accounts. Home Federal reserves the right to alter or amend these rules at any time. Any changes that have an adverse impact on your account will be disclosed to you in writing prior to the change.

ELECTRONIC TRANSFERS: This disclosure is required for all accounts which can receive deposits, accommodate transfers or accept withdrawals which are initiated through an electronic terminal, telephone or computer magnetic tape. If at any time, you have questions about your rights or liabilities, or those of Home Federal, please call us at 308-382-4000.

WHAT CONSTITUTES A BUSINESS DAY: Our business days are Monday through Friday, 7:30 a.m. to 7:00 p.m. Holidays are not included. Saturday is considered part of Monday’s business.

TYPES OF AVAILABLE TRANSFERS & LIMITS: You may use your card and code to: 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 account whenever you request in person or by calling our Main Office at 308-382-4000; 4) Pay for purchases at places that have agreed to accept the card; and 5) Pay bills directly by telephone from your checking account in the amounts and on the days you request.

SOME OF THESE SERVICES MAY NOT BE AVAILABLE AT ALL TERMINALS: For security reasons, there are limits on the number of transfers you can make using our terminals or point-of-sale transfer service. You may withdraw up to your collected balance from any Home Federal office each time you use the card, or up to $400.00 per account per day at Automated Teller Machines, or up to your predetermined daily limit at places that have agreed to accept the card. Your predetermined daily limit will be disclosed to you upon account approval.

TELEPHONE NUMBER & ADDRESS TO BE NOTIFIED IN THE EVENT OF UNAUTHORIZED TRANSFERS: If you believe your card or code has been lost or stolen or that someone has transferred money from your account without permission, call us at 308-382-4000 or write to us at P.O. Box 1009, Grand Island, NE 68802-1009.

ERRORS & QUESTIONS: Telephone us at 308-382-4000 or write to us at P.O. Box 1009, Grand Island, NE 68802-1009, as soon as you can if you think your statement or receipt is wrong or if you need more information about a transfer on the statement or receipt. We must hear from you no later than 60 days after we send you the FIRST statement on which the error or problem appeared. Tell us your name and account number. Describe the error or the transfer you are not sure about, and explain as clearly as you can why you believe there is an error or why you need more information. Tell us the dollar amount of the suspected error. If you tell us orally, we may require that you send us your complaint or question in writing within 10 business days.  We will determine whether an error occurred within 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 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.  You may ask for copies of the documents that we used in our investigation.

ERROR RESOLUTION NOTICE ON PERIODIC STATEMENTS § 205.8(b):  In case of errors or questions about your electronic transfers, telephone us first at 308-382-4000 or write us at Home Federal, P.O. Box 1009, Grand Island, NE  68802-1009 as soon as you can, if you have arranged to have direct deposits made to your account, you think your statement or receipt is wrong, or if you need more information about a transfer 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 error or problem 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.

We will investigate your complaint and will correct any error promptly.  If we take more than 10 business days to do this, we will credit your account 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.

CONSUMER LIABILITY FOR UNAUTHORIZED TRANSFERS: Tell us at ONCE if you believe your card or code has been lost or stolen. If you tell us within 2 business days after you learn of the loss or theft, you can lose no more than $50 if someone used your card or code without your permission. If you do NOT tell us within 2 business days after you learn of the loss or theft of your card or code, and we can prove we could have stopped someone from using your card or code 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 hospital stay, kept you from telling us, we will extend the time period.

DISCLOSURE OF INFORMATION TO THIRD PARTIES: We will disclose information to third parties about your account or the transfer you make: 1) Where it is necessary to complete the transfer; 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.

RIGHT TO RECEIVE DOCUMENTATION OF TRANSFERS: You can get a receipt at the time you make any transfer to or from your account using one of our Automated Teller Machines or point-of-sale terminals. 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 308-382-4000 to find out whether or not the deposit has been made. You will get a monthly account statement unless there are no transfers in a particular month, but in any case you will get the statement at least quarterly. If you bring your passcard to us, we will record any electronic deposits that were made to your account since the last time you brought in your passcard.

RIGHT TO STOP PAYMENT OF PREAUTHORIZED TRANSFERS; PROCEDURES FOR DOING SO; RIGHT TO RECEIVE NOTICE OF VARYING AMOUNTS; AND FINANCIAL INSTITUTION’S LIABILITY FOR FAILURE TO STOP PAYMENTS: If you have told us in advance to make regular payments out of your account, you can stop any of these payments. Here’s how: Call us at 308-382-4000 or write to us at P.O. Box 1009, Grand Island, NE 68802-1009, in time for us to receive your request 3 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 your call. Refer to the Checking & Savings Account Interest & Fees Disclosures, which is available upon request and will be reviewed with you when you open your account, for any fees that may be assessed. If these regular payments 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. If you order us to stop one of these payments 3 business days or more before the transfer is scheduled and we do not do so, we will be liable for your losses. If we decide that there was no error, we will send you a written explanation within 3 business days after we finish our investigation. You may ask for copies of the documents that we used in our investigation.

INSTITUTION’S 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. 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; 3) If the Automated Teller Machine where you are making the transfer does not have enough cash; 4) If the terminal system was not working properly and you knew about the breakdown when you started the transfer; 5) If the person or company to which you transfer money fails to properly credit you or your account; 6) If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken; 7) If there are exceptions stated in our agreement with you. We may take up to 45 days to investigate your complaint or question.

AUTOMATED CLEARING HOUSE (ACH) TRANSACTIONS: Credit given by Home Federal [we] to you with respect to an automated clearing house credit entry is provisional until [we] receive final settlement for such entry through a Federal Reserve Bank.  If [we] do not receive such final settlement, you are hereby notified and agree that [we] are entitled to a refund of the amount credited to you in connection with such entry, and the party making payment to you via such entry (i.e., the originator of the entry) shall not be deemed to have paid you in the amount of such entry.  Under the operating rules of the National Automated Clearing House Association, which are applicable to ACH transactions involving your account, [we] are not required to give next day notice to you of receipt of any ACH item and [we] will not do so.  However, [we] will continue to notify you of the receipt of payments in the periodic statements we provide to you.  [We] may accept on your behalf payments to your account which have been transmitted through one or more Automated Clearing House(s) (ACH) and which are not subject to the Electronic Fund Transfer Act, and [we] allow electronic check transactions to post to your checking account, and your rights and obligations with respect to such payments shall be construed in accordance with and governed by the laws of the state of Nebraska as provided by the operating rules of the National Automated Clearing House Association, which are applicable to ACH transactions involving your account.

YOUR ABILITY TO WITHDRAW FUNDS AT HOME FEDERAL: Our policy is to make funds from your deposits done at any branch location available immediately upon receipt. Funds from your deposits at Automated Teller Machines (ATMs) will be available to you on the first business day after the day we receive your deposit. At that time as outlined, you can withdraw funds in cash and we will use the funds to pay checks that you have written. For determining the availability of your deposits, every day is a business day, except Saturdays, Sundays, and Federal Holidays. For ATMs, if you make a deposit before 6:00 p.m. 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 6:00 p.m. or on a day we are not open, we will consider that the deposit was made on the next business day we are open.  A fee may be imposed by an ATM operator when the consumer initiates an electronic fund transfer or makes a balance inquiry at an automated teller machine operated by a non-account holding financial institution and by any network used to complete the transaction.

LONGER DELAYS MAY APPLY: In some cases, we will not make all of the funds that you deposit by check available to you immediately. Depending on the type of check that you deposit, funds may not be available until the 5^th business day after the day of your deposit. However, the first $100 of your deposit will be available immediately. If we are not going to make all of the funds from your deposit available immediately, 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 funds from a deposit right away, you should ask us when the funds will be available. In addition, funds you deposit by check may be delayed for a longer period under the following circumstances: 1) We believe a check you deposited will not be paid; 2) You deposit checks totaling more than $5,000 on any one day; 3) You redeposit a check that has been returned unpaid; 4) You have overdrawn your account repeatedly in the last six months; 5) 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 5^th business day of your deposit.

Click here for more information on Interest & Fees Disclosures for Home Federal's Checking and Savings accounts.

Rev. 02/2007

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