Legal Disclosures

TRUTH IN SAVINGS DISCLOSURE

Interest And Account Terms

• Interest is compounded daily and credited monthly.
• Interest begins to accrue no later than the business day we receive credit for the deposit of non-cash items (for example, checks) for all accounts.
• Your interest rate and annual percentage yield may change. We may change the interest rate for your account at any time at our discretion.
• We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.
• Federal regulations allow no more than six pre-authorized automatic, telephone, or Internet transfers (to a third person or to another account of the depositor) per monthly statement cycle.
• We reserve the right at any time to require not less than 7 days notice in writing before each withdrawal from an interest-bearing account other than a time deposit, or from any other savings account as defined by Regulation D.

Heartland Direct Performance Savings

• The minimum deposit to open this account is $500.00.
• The interest rate on a Heartland Direct Performance Savings Account is 2.52% (2.55% Annual Percentage Yield) as of December 29, 2008.

Service Charges

PRIVACY POLICY

Heartland Bank and its subsidiaries know and understand how important protecting your financial privacy is to you. Concerns for customer privacy and confidentiality are cornerstones of the financial industry. For these reasons, we have adopted the following privacy practices to assist you in understanding the measures we take to protect your personal and financial information.

Definition of Terms

Some of the terms we will use in this statement include the following:

• “We”, “our”, and “us” mean the following companies that are in our corporate family:
  • Heartland Bank – A full-service financial services provider
  • Heartland Business Credit, a wholly owned subsidiary of Heartland Bank – A business credit and leasing services provider
  • Heartland Financial Security Group, a wholly owned subsidiary of Heartland Bank – A financial services provider
• “You” and “your” mean an individual (a person; not a business operator, corporation, partnership, or trust, for example) who applies for or receives a financial product or service with us for personal, family, or household purposes.
• “Affiliate”: Any company that controls, is controlled by, or is under common control with Heartland Bank.
• “Non-affiliated Third Party”: Any company that is not an affiliate of ours
• “Non-Public Personal Information”: Personally identifiable financial information about you that we obtain when providing a financial product or service. It does not include information that we believe is lawfully available from public sources such as telephone directories or government records.

Information We Collect

We collect non-public personal information about you from the following sources:

• Information we receive from you on forms such as applications or in other ways, for example your name, address, and social security number;
• Information about your transactions with us, our affiliates, or others, for example your account balance;
• Information we receive from a consumer reporting agency, such as your creditworthiness and credit history

Confidentiality and Security

We restrict access to your nonpublic personal information to those employees who need to know that information to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

Non-Sharing Provision

We do not disclose any nonpublic personal information about our customers or former customers to any non-affiliated entity, except as permitted by law. However, we may disclose all of the information we collect, as described above, to companies that perform marketing services on our behalf or to other financial institutions with whom we have joint marketing agreements. If you decide to close your accounts or become an inactive customer, we will adhere to the privacy policies and practices as described in this notice.

Information We Can Share with Our Affiliates

As is consistent with our mission to provide you with superior financial products and services, we may share nonpublic personal information about our transactions and experiences with customers and former customers among the Heartland Bank Companies, as permitted by law. You may limit our affiliates from marketing their products or services to you based on information that we share with them, such as your account history with us. This limitation does not apply in certain circumstances, such as if you currently do business with one of our affiliates or if you ask to receive information or offers from them.

To Limit Marketing Offers from Our Affiliates:

• Send an e-mail message to support@heartlandbankdirect.com
• Contact us by mail at Heartland Bank, Privacy Department, P.O. Box 16959, St. Louis, MO 63105-1359
• Call us at 877-444-5148

ELECTRONIC FUNDS TRANSFER DISCLOSURE

As a consumer who uses electronic fund transfers (EFT) services, you have certain rights and responsibilities which are defined by the Electronic Fund Transfer Act (15 U.S.C. 1693, et seq.) and Regulation E of the Federal Reserve Board. One requirement of this act is that all financial institutions must make certain disclosures to all EFT users.

1. Types of Available Transfers
   1. Direct Deposit:
      
      Preauthorized credits to your Heartland Bank Direct Performance Savings Account by government agencies, employers, or other third parties which are transmitted electronically
   2. Incoming or Outgoing Funds Transfers:
      
      One-time electronic funds transfers you initiate that result in debits or credits between your Heartland Bank Direct account and any account at another financial institution
   3. Internal Balance Transfers:
      
      Computer-activated transfers of funds from your accounts with us to other accounts with us
   4. Automated Withdrawals:
      
      Pre-authorized periodic debits from your account to third parties which are transmitted electronically
   5. Third-Party Funds Transfers:
      
      Electronic funds transfers initiated by a third party after the third party receives your authorization and account information via the Internet (WEB) or by telephone (TEL).
   6. Electronic Check Conversions:
      
      You may authorize a merchant or other payee to make a one-time electronic payment from your account using your account information to pay for purchases or pay bills
   7. Telephone-Activated Transfers:
      
      Transfers of funds from your account with us to other accounts with us using Heartland Bank's 24-Hour Account Line
   
   
   
2. Transaction Limitations
   
   
   
   According to Federal Regulation D, you may not make more than six (6) electronic transfers or withdrawals from a savings or money market account to another deposit account or to a third party per monthly statement cycle.
   
   
   
   
3. Periodic Statements
   
   
   
   You will receive an electronic statement at least once per quarter or for each month in which there is activity on your account.
   
   
   
   
4. Direct Deposit Documentation
   
   
   
   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 1-877-444-5148 or e-mail us at support@heartlandbankdirect.comto find out if the deposit has been made.
   
   
   
   
5. Business Days
   
   
   
   Our business days are Monday through Friday from 8:00 a.m. to 5:00 p.m. (CST), excluding weekends and holidays.
   
   
   
   
6. Disclosure of Charges Applicable to Transfers/Transactions
   
   
   
   Fees associated with electronic funds transfers are listed under “Interest and Account Terms” above; we reserve the right to change these from time to time. If a change results in increases in the cost or liability to you, decreases in the type of electronic fund transfers available to you, or places stricter limitations on the frequency or dollar amount of transfers, written notice of the change will be mailed to your current address as shown on our records at least 21 days before the effective date of the change. However, if an immediate change in terms or conditions is necessary to maintain or restore the security of an electronic funds transfer system or account, we will provide written notice of the change to you on the next periodic statement or within 30 days, unless disclosure would jeopardize the security of the system or account.
   
   
   
   
7. Disclosure of Account Information to Third Parties
   
   
   
   

   We may disclose information to third parties about your accounts if:

   
   
   
   1. It is necessary for completing transfers or;
   2. We have entered into an agreement to have another party provide Heartland Bank Direct's Online Banking
   3. It is necessary to verify the existence and condition of a payment account for a payee or holder of a check issued by use of the bill payment services or;
   4. You give us your written permission, or;
   5. It is necessary to comply with court orders or government or administrative agency summonses, subpoenas, orders, examinations and escheat reports or;
   6. We receive certification from a federal agency or department that a request for information is in compliance with the Right to Financial Privacy Act of 1978.
   
   
   
8. Liability For Failure to Make Transfers or Payments

   If we do not complete a transfer and/or payment on time or in the correct amount, we will be liable for no more than the amount involved in the transfer or payment that is caused by our failure; however, there are some exceptions. We will not be liable if:

   1. There are insufficient funds in your account and/or your overdraft account to complete the transaction through no fault of ours or;
   2. You (or we) have closed the designated account or;
   3. You have asked us to discontinue services or we have discontinued and/or terminated your services or;
   4. The services, your equipment, the communications link, or the software is not functioning properly or;
   5. You have not provided us with the correct information for those payees/merchants that you have designated and/or accounts to which you designated transfers or;
   6. If the merchant/payee mishandles or delays handling payments sent by us or;
   7. You (or we) have reason to believe that the transaction is unauthorized (see “Your Liability for Unauthorized Payments” below) or;
   8. The failure was caused by circumstances beyond our control such as fire or other catastrophe, electrical or computer failure, flood, or interference from an outside source, and we have taken reasonable precautions to avoid these circumstances or;
   9. You attempt to complete a payment and/or transfer that does not meet the requirements for eligible accounts and ownership or;
   10. You have not properly followed Heartland Bank Direct Online Banking instructions
   11. You do not authorize a bill payment soon enough for your payment to be made and properly credited by the merchant/payee by the time it is due or;
   12. Withdrawals from eligible account(s) have been prohibited by a court order such as a garnishment or other legal process.
   
   
   
9. Stop Payment Procedures

   If you have told us in advance to make regular payments out of your account, you can stop any of these payments by contacting us through any of the means listed below. We must receive your request at least three (3) business days or more before the payment is scheduled to be made. If you contact us by phone, we may also require you to put your request in writing and send it to us within 14 days after your call. If you order us to stop a payment three (3) business days or more before the transfer is schedule, and we do not do so, we will be liable for your losses or damages.

   
   
   
10. Our Telephone Number and Address

    You may contact us on Monday through Friday from 6:00 a.m. to 9:00 p.m. (CST) by any of the following means:

    Telephone toll-free at 877-444-5148
    
    Fax toll-free at 877-444-5145
    
    support@heartlandbankdirect.com
    
    Mail: Heartland Bank Direct, 212 South Central Ave., St. Louis, Missouri 63105

    
    
    
11. Your Liability for Unauthorized Payments.
    
    
    
    

    If you believe your Online Banking password has been compromised, we recommend that you change it immediately by accessing User Options.

    You could lose all of the money in your accounts (and your maximum overdraft line of credit) if you take no action to notify us of the loss. If you do notify us, your liability will be as follows:

    
    
    
    1. If you contact us within two business days of the loss or your discovery of the loss, you can lose no more than $50.00 if someone used your login without your permission.
    2. If you do not contact us within two business days after you learn of the loss, and we can prove that we could have prevented the loss if you had contacted us, you could lose as much as $500.00 if someone used your PIN/PSC without your permission.
    3. If your statement shows transfers or payments that you did not make, tell us at once. If you do not tell us within 60 days after the statement was mailed, 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.
    4. If extenuating circumstances (for example, a long trip or a hospital stay) keep you from notifying us of the discovery of the loss, we will extend this time period to a reasonable degree,
    
    
    
12. In Case of Errors or Questions About Your Electronic Transfer or Payment.
    
    
    
    

    Call us toll-free at 877-444-5148, or email us at support@heartlandbankdirect.comor write to us at Heartland Bank Direct, 212 South Central Ave., St. Louis, Missouri 63105, as soon as possible if you think that a payment and/or transfer listed on your account statement or summary is an error or if you need more information about a transfer and/or payment listed on the statement or summary. We must hear from you no later than 60 days after we sent you the FIRST statement on which the problem or error appeared. You will need to provide the following:

    1. Your name and account number (if any)
    2. Description the transfer and/or payment you are unsure about, a clear explanation of why you believe it is an error, and why you need more information.
    3. The dollar amount of the suspected error
    
    
    

    If you tell us orally or by e-mail, we may require that you send us your complaint or question in writing within 10 business days. We will tell you the results of our investigation with 10 business days (20 business days if the transfer involves an account withing 30 days after the first deposit was made) after we hear from you and will correct any error promptly.

    If we need more time, however, we may take up to 45 days (90 days if the transfer involved a a foreign initiated transfer or an account within 30 days after the first deposit to the account was made) to investigate your complaint or question. If we decide to do this, we will credit your account within 10 business days (20 business days if the transfer involves an account within 30 days after the first deposit to the account was made) for the amount you think is in error so that you will have use of the money during the time it takes us to complete our investigation. If we ask you to put your question or complaint in writing, and we do not receive it within 10 business days, we may not credit your account.

    If we decide that there was no error, we will mail or e-mail you a written explanation within three business days after we finish our investigation. You may ask for copies of the documents that we used in our investigation.

    More detailed information is available upon request.

FUNDS AVAILABILITY

This policy statement applies to all deposit accounts.

Our general policy is to make funds from your deposit available to you on the business day we receive your deposit. Electronic direct deposits will be available on the day we receive the deposit. Once they are available, you can withdraw the funds.

Please remember that even after we have made funds available to you, and you have withdrawn the funds, you are still responsible for 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 Saturday, Sunday, and federal holidays. If you make a deposit on a non-business day, we will consider that the deposit was made on the next business day we are open. For determining the availability of your deposits, every day is a business day, except Saturday, Sunday, and federal holidays. If you make a deposit on a non-business day, we will consider that the deposit was made on the next business day we are open.

If we accept for deposit a check that is drawn on another bank, we may make funds from the deposit available for withdrawal immediately but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available for withdrawal until the time periods that are described elsewhere in the disclosure for the type of check that you deposited.

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 business day of your deposit. Depending on the type of check that you deposit, funds from the deposit of a local check may not be available until the second business day. Funds from the deposit of a non-local check may not be available until the fifth business day. In either case 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 on the business day we receive your deposit, we will mail you a notice the day after we receive your deposit telling when the funds will 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 deposit will not be paid.
• ou deposit checks totaling more that $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 into your account will be available on the day we receive the deposit. Funds from deposits of cash, wire transfers, and the first $5,000.00 of a day’s total deposit of cashier’s, certified, teller’s, traveler’s and federal, state and local government checks will be available on the business day of your deposit if the deposit meets certain conditions. For example, the checks must be payable to you. The excess over $5,000.00 will not be available until the ninth (9) business day after the day of your deposit.

Funds from all other check deposits will be available no later than the eleventh (11) business day after the day of your deposit.