Disclosure

Dear Depositor:

This brochure contains the rules which govern, where appropriate, your deposit account with us. Unless it would be inconsistent to do so, words and phrases used in this brochure should be construed so that the singular includes the plural and the plural includes the singular. Elsewhere in this brochure, you will find a schedule of the applicable interest rates, methods, qualifying balances and charges. Please read this brochure carefully; continued use of your account with us after receipt of this brochure means you agree to these rules, you agree to pay the fees listed, and you give us the right to collect the fees, as earned, directly from the account balance. If you have any questions, please call us. Much of our relationship with our deposit customers is regulated by state and federal law, especially the law relating to negotiable instruments, the law regulating the methods of transferring property upon death and the rights of surviving spouses and dependents, the law pertaining to estate and other succession taxes, the law regarding electronic transfer, and the law regarding the availability of deposited funds. This body of law is too large and complex to be reproduced here.

The purpose of this brochure is to:

summarize the rules applicable to the more common transactions;
establish rules to govern transactions of circumstances which the law does not regulate; and
establish rules for certain events or transactions which the law already regulates but permits variation by agreement.

We may permit some variations from this standard agreement, but any such variations must be agreed to in writing either on our signature card for the account or in some other written form.

As used in this brochure, the word "we" means the financial institution and the word "you" means the account holder.

LIABILITY-Each of you agrees, for yourself (and the person or entity you represent if you sign as a representative of another) to the terms of this account and the schedule of charges that may be imposed. You authorize us to deduct these charges as accrued directly from the account balance. You also agree to pay additional reasonable charges we may impose for services you request which are not contemplated by this agreement. Each of you also agrees to be jointly and severally liable for any account deficit resulting from charges or overdrafts, whether caused by you or another authorized to withdraw from this account, and the costs we incur to collect the deficit including, to the extent permitted by law, our reasonable attorneys' fees.

DEPOSITS-Any items, other than cash, accepted for deposit (including items drawn "on us") will be given provisional credit only until collection is final (and actual credit for deposits of, or payable in, foreign currency will be at the exchange rate in effect on final collection in U.S. dollars). We are not responsible for transactions initiated by mail or outside depository until we actually receive them. All transactions received after our "daily cut-off time" on a business day we are open, or received on a day in which we are not open for business, will be treated and recorded as if initiated on the next following business day that we are open.

WITHDRAWALS-Unless otherwise clearly indicated to the contrary, any one of you who signs in the space designated for signatures on the signature card, including authorized signers, may withdraw or transfer all or any part of the account balance at any time on forms approved by us. Each of you (until we receive written notice to the contrary) authorizes each other person signing this form to endorse any item payable to you or your order for deposit to this account or any other transaction with us. The fact that we may honor withdrawal requests which overdraw the finally collected account balance does not obligate us to do so, unless required by law. Withdrawals will first be made from collected funds, and we may, unless prohibited by law or our written policy, refuse any withdrawal request against uncollected funds, even if our general practice is to the contrary. We reserve the right to refuse any withdrawal or transfer request which is attempted by any method not specifically permitted, which is for an amount less than any minimum withdrawal requirement, or which exceeds any frequency limitation. Even if we honor a nonconforming request, repeated abuse of the stated limitations (if any) may eventually force us to close this account. We will use the date a transaction is completed by us (as opposed to the day you initiate it) to apply the frequency limitations. On interest-bearing accounts other than time deposits, we reserve the right to require at least seven days' written notice before any withdrawal or transfer. Withdrawals from a time deposit prior to maturity or prior to the expiration of any notice period may be restricted and may be subject to penalty. See your notice of penalties for early withdrawal.

OWNERSHIP OF ACCOUNT AND BENEFICIARY DESIGNATION-These rules apply to this account depending on the form of ownership and beneficiary designation, if any, specified on the account records. Individual Account-is owned by one person. Joint Account-With Survivorship (and not as tenants in common)-is owned by two or more persons. Each of you intend that upon your death the balance in the account (subject to any previous pledge to which we have consented) will belong to the survivor(s). If two or more of you survive, you will own the balance in the account as joint tenants with survivorship and not as tenants in common. Joint Account-No Survivorship (as tenants in common)-is owned by two or more person, but none of you intend (merely by opening this account) to create any right of survivorship in any other person. We encourage you to agree and tell us in writing of the percentage of the deposit contributed by each of you. This information will not, however, affect the "number of signatures" necessary for withdrawal. Revocable Trust or Pay-On-Death Account-If two or more of you create such an account, you own the account jointly with survivorship. Beneficiaries acquire the right to withdraw only if: (1) all persons creating the account die, and (2) the beneficiary is then living. If two or more beneficiaries are named and survive the death of all persons creating the account, such beneficiaries will own this account in equal shares, without right of survivorship. The person(s) creating either of these account types reserves the right to: (1) change beneficiaries, (2) change account types, and (3) withdraw all or part of the deposit at any time. Corporate, Partnership, and other Organizational Accounts-We will usually require a separate authorization form designating the person permitted and conditions required for withdrawal from any account in the name of a legal entity such as a partnership, corporation, or other organization. We will honor such authorization according to it's terms until it is amended or terminated in writing by the governing body of such organization.

STOP-PAYMENTS-A stop-payment order must be given in the manner required by law and must be received in time to give us a reasonable opportunity to act on it before our stop-payment cut-off time. Additional limitations on our obligation to stop-payment are provided by law. A stop-payment order must precisely identify the number, date, and amount of the item, and the payee. We will honor a stop-payment request by the person who signed the particular item, and by any other person, even through such other person did not sign the item, if such other person has an equal or greater right to withdraw from this account than the person who signed the item in question. A release of the stop-payment request may be made only by the person who initiated the stop-payment. Our stop-payment cut-off hour is the close of the next banking day after the banking day on which we receive the check.

TELEPHONE TRANSFERS-A transfer of funds from this account to another account with us, by telephone, if otherwise permitted or arranged for, may be made by the same persons and under the same conditions generally applicable to withdrawals made in writing. We restrict the number of transfers from a savings account to another account, or third parties, to a maximum of six per month (less the number of certain pre-authorized transfers' during the month). Other account transfer restrictions are shown elsewhere in this brochure.

AMENDMENTS AND TERMINATION-From time to time we may amend any term of this agreement upon giving you reasonable notice in writing or by any other method permitted by law, including, in appropriate circumstances, posting notice in our building. We may also close this account at any time upon reasonable notice to you and tender of the account balance personally or by mail. Notice from us to any one of you is notice to all of you.

STATEMENTS-You must examine your statements and items with reasonable promptness after we send or make them available to you. If you find an unauthorized signature or alteration, you must notify us promptly and in any event not later than 30 days from when we send or make your statement and items available to you. If you do not satisfy both of these requirements, then: (1) you cannot assert the unauthorized signature or alteration against us, even if we are unable to show a loss due to your failure, and (2) you cannot assert any unauthorized signatures or alterations by the same wrongdoer on items paid by us after the reasonable time mentioned above elapses, but before we receive your notice. We lose these protections if we fail to exercise ordinary care in paying an item with an unauthorized signature or alteration, unless you do not notify us of the problem within 60 days of when we send or make available to you the statement and items. You must report any other problem (e.g., erroneous statement or passbook entry, missing signature, unauthorized endorsement, etc.) within this 60-day period or lose your right to assert the problem against us.

ACCOUNT TRANSFER-This account may not be transferred or assigned without our prior written consent.

DIRECT DEPOSITS-If, in connection with a direct deposit plan, we deposit any amount in this account which should have been returned to the Federal Government for any reason, you authorize us to deduct the amount of our liability to the Federal Government from this account or from any other account you have with us, without prior notice and at any time, except as prohibited by law. We may also use any other legal remedy to recover the amount of our liability.

TEMPORARY ACCOUNT AGREEMENT-If this option is selected, this is a temporary account agreement. Each person who signs in the space designated for signatures on the signature card (except as indicated to the contrary) may transact business on this account. However, we may at some time in the future restrict or prohibit further use of this account if you fail to comply with the requirements we have imposed within a reasonable time.

SET-OFF-You each agree that we may (without prior notice and when permitted by law) set off the funds in this account against any due and payable debt owed to us now or in the future, by any of you having the right of withdrawal, to the extent of such persons' or legal entity's right to withdraw. If the debt arises from a note, "any due and payable debt" includes the total amount of which we are entitled to demand payment under the terms of the note at the time we set off, including any balance the due date for which we properly accelerate under the note. This right of set-off does not apply to this account if (a) it is an Individual Retirement Account or other tax-deferred retirement account, or (b) the debt is created by a consumer credit transaction under a credit card plan, or (c) the debtor's right of withdrawal arises only in a representative capacity. We will not be liable for the dishonor of any check when the dishonor occurs because we set off a debt against this account. You agree to hold us harmless from any claim arising as a result of our exercise of our right of set-off.

AUTHORIZED SIGNERS (Individual Accounts only)-An authorized signer is someone to whom you give all rights you have now or in the future to make withdrawals and deposits. Merely be designating an authorized signer you do not intend to give any ownership rights in the account.

ELECTRONIC FUND TRANSFERS
YOUR RIGHTS AND RESPONSIBILITIES

For purposes of this disclosure, our business days are Monday through Friday and Saturday morning. Holidays are not included.
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. You should keep this notice for future reference.
Direct Deposits-You may make arrangements for certain direct deposits to be accepted into your Checking or Savings accounts. Pre-authorized Withdrawals-You may make arrangements to pay certain recurring bills from your Checking or Savings accounts. We will also process E-Checks through the ACH System. Electronic Fund Transfers Initiated by Third Parties-You may authorize a third party to initiate electronic fund transfers between your account and the third party's account. Transfers to make or receive payment may be one-time occurrences or may recur as directed by you. They may use ACH or other payment networks. The transaction will require you to provide the third party with your account number and bank information. Your authorization to the third party to make these transfers can occur in a number of ways, so it is important that you safeguard this information.
Examples of these transfers include, but are not limited to: Electronic Check Conversion, in which a third party scans your check for information or Electronic Returned Check Charge in which a third party makes a one-time electronic payment from your checking account using information from your check to pay for purchase or pay bills or Electronic Returned Check Charge in which a third party will initiate an electronic fund transfer to collect a charge in the event a check is returned for insufficient funds.

ATM Transfers - types of transfers and dollar limitation - You may access your account(s) by ATM using your ATM/DEBIT card and personal identification number, to:

Make deposits to checking account(s) with an ATM/DEBIT card
Make deposits to savings account(s) with an ATM/DEBT card
Get cash withdrawals from checking account(s) with an ATM/DEBIT card. --you may withdraw no more than $1,000.00 per day and $2,000.00 over a 3 day period. This limit applies to both ATM withdrawals and Point of Sale (POS) purchases.
Transfer funds from savings to checking accounts with an ATM/DEBIT card.
Transfer funds from checking to savings accounts with an ATM/DEBIT card.
Get information about the account balance of your checking or savings accounts with an ATM/DEBIT card.

Some of these services may not be available at all terminals. Some terminals may not provide a receipt for ATM or POS transactions of $15.00 or less.
Please also see Limitations on Frequency of Transfers section regarding limitations that apply to ATM transfers.
When you use an ATM not owned by us, you may be charged a fee by the ATM operator or any network used and you may be charged a fee for a balance inquiry even if you do not complete a fund transfer.
Special Rules for MasterCard-Point of Sale Transactions: Liability for unauthorized use on MasterCard debit card transactions and PIN transactions processed by MasterCard: Your liability for unauthorized use of your MasterCard Debit Card will be $0 for any MasterCard debit card transaction (that is ones for which you sign or do not otherwise provide a PIN) or any PIN transaction processed by unauthorized use, you have exercised reasonable care in safeguarding your card from risk or loss or theft, you have not reported two or more incidents of unauthorized use to us in the immediately preceding 12 month period, and your account is in good standing.

Online Services-including checking on balances of accounts you hold with us, receiving and downloading balance and transaction information on those accounts, transferring funds between deposit accounts you hold with us, making loan payments you hold with us from deposit accounts you hold with us. You may also sign up to pay bills electronically from a deposit account you hold at the bank.

Tele-Bank-Several services are available to you through the use of our Tele-Bank product. These include: Checking account balances on accounts you hold with us, transferring funds between accounts you hold with us, and making loan payments on loans you hold with us from accounts you hold with us.

Limitations on Frequency of Transfers-In addition to those limitations on transfers elsewhere described, if any, the following limitations apply:

Transfers from a money Market account to another account or to third parties by pre-authorized, automatic, or telephone transfer are limited to six per month.
Transfers from a Passbook Savings account to another account or to third parties by pre-authorized, automatic, or telephone transfer are limited to six per month.

CHARGES FOR ELECTRONIC FUND TRANSFERS

We do not charge for direct deposits to any type of account.
Except as indicated elsewhere, we do not charge for electronic fund transfers.

RIGHT TO DOCUMENTATION

Terminal Transfers. You can get a receipt at the time you make any transfer to or from your account using automated teller machines.
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, the person or company making the deposit will tell you every time they send us the money. If the only possible transfers to or from your account are preauthorized deposits, you will get a quarterly statement from us.
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 (402) 586-2266 to find out whether or not the deposit has been made. If the only possible transfers to or from your account are direct deposits, you will get a quarterly statement from us.
Periodic Statements. You will get a monthly account statement from us, except in the following circumstances: You will receive a periodic statement for each monthly cycle in which an electronic fund transfer has occurred in your passbook savings account and will receive a periodic statement at least quarterly if no transfer has occurred.

STOP PAYMENT PROCEDURES AND NOTICE
OF VARYING AMOUNTS

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 in this brochure 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. We will charge you $10.00 for each stop payment order you give.
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.)
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.

OUR LIABILITY

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 and damages. However, there are some exceptions. We will NOT be liable, for instance:

If, through no fault of ours, you do not have enough money in your account to make the transfer.
If the transfer would go over the credit limit on your overdraft line.
If the automated teller machine where you are making the transfer does not have enough cash.
If the terminal or system was not working properly and you knew about the breakdown when you started the transfer.
If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions we have taken.
There may be other exceptions in our agreement with you.

DISCLOSURE OF ACCOUNT INFORMATION TO THIRD PARTIES

We will disclose information to third parties about your account or the transfers you make:

Where it is necessary for completing transfers;
In order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant;
In order to comply with government agency or court orders;
If you give us written permission.

UNAUTHORIZED TRANSFERS

Tell us AT ONCE if you believe your card and /or code has been lost or stolen, or if you believe that an electronic fund transfer has been made without your permission using information on your check. Telephoning is the best way of keeping your possible losses down. You could lose all of the money in your account (plus your maximum overdraft line of credit). If you tell us within two business days after you learn of the loss or theft of your card or code, you can lose no more than $50.00 if someone used your card without your permission. If you do not tell us within two business days after you learn of the loss or theft of your card and/or code, and we can prove we could have stopped someone from using your card and /or code without your permission if you had told us, you can 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 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.

If you believe your card and/or code has been lost or stolen or 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 in this disclosure.

ERROR RESOLUTION

In case of errors or questions about your electronic transfers, call or write us at the telephone number or address listed in this brochure, 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 the FIRST statement on which the problem or error appeared.

Tell us your name and account number (if any).
Describe the error on 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.
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. For errors involving new accounts, point of sale, or foreign-initiated transactions, we may take up to 90 days to investigate your complaint or question. For new accounts, we may take up to 20 business days to credit your account for the amount you think is in error. We will tell you the results within three business days after completing our investigation. If we decide 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.

COMMERCIAL STATE BANK
519 EAST BROADWAY PO BOX 179
WAUSA, NE 68786
402-586-2266 FAX 402-586-2175

FUNDS AVAILABILITY DISCLOSURE

This policy statement applies to "transaction" accounts. Transaction accounts, in general, are accounts that permit an unlimited number of payments to third persons and an unlimited number of telephone and pre-authorized transfers to other accounts of yours with us. Checking accounts are the most common transaction accounts. Feel free to ask us whether any of your other accounts might also be under this policy.
Our policy is to make funds from your deposits available to you the 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 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 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 Sundays and federal holidays. If you make a deposit before 3:00 p.m. on a business day (11:00 am Sat.) that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit after 3:00 p.m. (11:00 am Sat.) or on a day we are not open, we will consider that the deposit was made on the next business day we are open.
If you make a deposit at an ATM, funds will be made available when the bank receives credit notification, but no later than 5 business days from the banking date of deposit at ATM.
Business days for Commercial State Bank online are Monday through Friday, excluding holidays. You may access the accounts through Commercial State Bank online 24 hours a day, seven days a week, except that Commercial State Bank may perform regular maintenance on our systems or equipment, which may result in errors or interrupted service. We may also find it neccessary to occasionally change the scope of our services. Commercial State Bank cannot guarantee that we will be able to provide notice of such interruptions and changes, although we will attempt to provide such notice.

If we cash a check for you that is drawn on another bank, we may withhold the availability of a corresponding amount of funds that are already in your account. Those funds will be available at the time funds from the check we cashed would have been available if you had deposited it.
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 this 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 on the day we receive your deposit. Depending on the type of check that you deposit, funds may not be available until the second business day after the day of your deposit. However, the first $200 of your deposits will be available on the day we receive your deposit.

If we are not going to make all of the funds from your deposit available on the first business day after we receive your deposit, 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 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. You 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 that the seventh business day after the day of your deposit.

TRUTH-IN-SAVINGS DISCLOSURE CHECKING ACCOUNT

Fees:

A maintenance fee of $3.00 will be charged each statement cycle. This fee will not apply to customers with Social Security direct deposit or customers under the age of 19.

A per debit charge fee of $.15 will be charged for each debit transaction (withdrawal, check paid, automatic transfer or payment out of this account). This fee will not apply to customers with Social Security direct deposit or under the age of 19.

You will earn a credit of $.10 for each $100 of average daily balance on your account during the statement cycle. This earnings credit will be applied to reduce the service charge fees.

The earnings credit cannot exceed your total service charge fees.

Note:

Deposits will be processed first, and then debits will be processed from smallest to largest in amount.

NOW ACCOUNT

Rate Information-Your interest rate and annual percentage yield may change. Frequency of rate changes-We may change the interest rate on your account at any time.

Determination of rate-At our discretion, we may change the interest rate on your account.

Compounding and crediting frequency- Interest will be compounded every month. Interest will be credited to your account every month. Minimum balance to open account-You must deposit $500.00 to open this account.

Minimum balance to avoid imposition of fees-A maintenance fee of $5 will be imposed each monthly statement cycle if the average daily balance for the monthly statement cycle falls below $500. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of day in the period.

Daily balance computation method-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.

Accrual of Interest on noncash deposits-Interest begins to accrue on the business day we receive the deposit of the noncash items (for example, checks, ATM/ACH Credits).

Effect of closing an account: If you close the account before the interest is credited, you will receive the accrued interest.

Fees: A maintenance fee of $2.00 will be charged each statement cycle when the average daily balance for the monthly statement cycle stays above the $500.00 minimum balance.

A per debit charge fee of $.20 will be charged for each debit in excess of 20 during a statement cycle. These fees will not apply to customers with Social Security direct deposit.

ARCH CLUB ACCOUNT

Rate Information-Your interest rate and annual percentage yield may change.

Frequency of rate changes-We may change the interest rate on your account at any time.

Determination of rate-At our discretion, we may change the interest rate on your account.

Compounding and crediting frequency-Interest will be compounded every month. Interest will be credited to your account every month.

Minimum balance to avoid imposition of fees-A maintenance fee of $10 will be imposed each monthly statement cycle if the average daily balance for the monthly statement cycle falls below $2,500. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period.

Daily balance computation method-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. Accrual of interest on noncash deposits-Interest begins to accrue on the business day we receive the deposit of the noncash items (for example, checks, ATM/ACH Credits).

Effect of closing an account: If you close the account before the interest is credited, you will receive the accrued interest.

MONEY MARKET ACCOUNT

Rate Information-Your interest rate and annual percentage yield may change.

Frequency of rate changes-We may change the interest rate on your account at any time.

Determination of rate-At our discretion, we may change the interest rate on your account.

Compounding and crediting frequency-Interest will be compounded every month. Interest will be credited to your account every month.

Minimum balance to open the account-You must deposit $1,000 to open this account.

Minimum balance to avoid imposition of fees-A maintenance fee of $6 will be imposed each monthly statement cycle if the average daily balance for the monthly statement cycle falls below $1,000. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period.

Daily balance computation method-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.

Accrual of interest on noncash deposits-Interest begins to accrue on the business day we receive the deposit of the noncash items (for example, checks, ATM/ACH Credits).

Transaction limitations-Transfers from a Money Market account to another account or to third parties by pre-authorized, automatic, or telephone transfer are limited to six per month.

Effect of closing an account: If you close the account before the interest is credited, you will receive the accrued interest.

Fees: A maintenance fee of $2.00 will be charged each statement cycle when the average daily balance for the monthly statement cycle stays above the $1,000.00 minimum balance.

PASSBOOK SAVINGS ACCOUNT

Rate Information-Your interest rate and annual percentage yield may change.

Frequency of rate changes-We may change the interest rate on your account at any time.

Determination of rate-At our discretion, we may change the interest rate on your account.

Compounding and crediting frequency-Interest will be compounded every quarter. Interest will be credited to your account every quarter.

Effect of closing an account-If you close your account before interest is credited, you will not receive the accrued interest.

Daily balance computation method-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.

Accrual of interest on noncash deposits-Interest begins to accrue on the business day we receive the deposit of the noncash items (for example, checks, ATM/ACH Credits).

Transaction limitations-Transfers from a Passbook Savings account to another account or to third parties by pre-authorized, automatic, or telephone transfer are limited to six per month.

Fees: A maintenance fee of $3.00 will be charged each year. This fee will not apply to customers with Social Security Retirement direct deposit or customers under the age of 19. A debit charge fee of $.50 will be charged for each withdrawal in excess of 15 during a year.

INDIVIDUAL RETIREMENT ACCOUNT

Rate Information-Your interest rate and annual percentage yield may change.

Frequency of rate changes-We may change the interest rate on your account at any time.

Determination of rate-At our discretion, we may change the interest rate on your account.

Compounding and crediting frequency-Interest will be compounded every quarter. Interest will be credited to your account every quarter.

Daily balance computation method-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.

Accrual of interest on noncash deposits-Interest begins to accrue on the business day we receive the deposit of the non-cash items (for example, checks, ATM/ACH Credits).

Transaction limitations-Transfers from an Individual Retirement Account to another account or to third parties by pre-authorized, automatic, or telephone transfer are limited to six per month.

Effect of closing an account: If you close the account before the interest is credited, you will receive the accrued interest.

Other: All withdrawals from a traditional IRA before 59 1/2 are considered early withdrawals. If you take an early withdrawal from your IRA, there may be IRS limitations on the amount of the withdrawal. You should consult your tax advisor to discuss your options.

CHRISTMAS CLUB ACCOUNT

OVERDRAFT PROTECTION

We may provide overdraft protection with respect to your accounts. If you write a check, make an in-person withdrawal, or other electronic withdrawal that will overdraw your account if it is paid, we will either (a) pay the overdraft (aka Overdraft) or (b) return the item unpaid for non-sufficient funds (aka Return Item).

If we pay the overdraft we may charge you a fee, typically called an Overdraft Charge. If we return the item for non-sufficient funds, we may charge you a fee, typically called a Return Check Charge.

COMMON FEATURES

Deposits will be processed first, then ATM/Debit Card debits followed by ACH and check debits from smallest to largest in amount.
The following fees may be assessed against your account and the following transaction limitations, if any, apply to your account.

ATM cash withdrawal from checking or passbook savings accounts will be charged an additional $.75 per withdrawal after the 4th ATM withdrawal each month. This only applies to withdrawals from an ATM not operated by us.
If you use an ATM that is not operated by us, you may be charged a fee by the operator of the machine and/or by an automated transfer network.

Check Printing............................(fee depends on style of check ordered)

Cashier's Checks............................................................................$5.00

Personal Money Orders.............................................................................$3.00

Overdraft Charges (each debit or check paid).................$22.00 per check

Continuous Overdraft Charges after five days....................$10.00 per day

Return Check Charges (each).......................................$25.00 per check

Stop Payments (all items).......................................................$10.00

Photocopies.................................................................$.10 per copy

Outgoing wire Transfers...........................................................$15.00

Reprint Statement or Images.......................................................$.50 per page

Research and Account Reconcilement..........................................................$20.00 per hour

Garnishment or Levy Fees....................................................$25.00

We reserve the right to at any time 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 saving account as defined by Regulation D.
Pursuant to the Unlawful Internet Gambling Enforcement Act (Regulation GG), retricted transactions are prohibited from being processed through any account or business relationship with Commercial State Bank.

NOTICE:
Substitute Check Policy Disclosure

What is a Substitute Check?
To make check processing faster, federal law permits banks to replace original checks with "substitute checks." These checks are similar in size to original checks with a slightly reduced image of the front and back of the original check. The front of a substitute check states: "This is a legal copy of your check. You can use it the same way you would use the original check." You may use a substitute check as proof of payment just like the original check.
Some or all of the checks that you receive back from us may be substitute checks. This notice describes rights you have when you receive substitute checks from us. The rights in this notice do not apply to original checks or to electronic debits to your account. However, you have rights under other law with respect to those transactions.

What are my rights regarding substitute checks?
In certain cases, federal law provides a special procedure that allows you to request a refund for losses you suffer in a substitute check is posted to your account (for example, if you think that we withdrew the wrong amount from your account or that we withdrew money from your account more than once for the same check). The losses you may attenpt to recover under this procedure may include the amount that was withdrawn from your account and fees that were charged as a result of the withdrawal (for example, bounced check fees).
The amount of your refund under this procedure is limited to the amount of your loss or the amount of the substitute check, whichever is less. You also are entitled to interest on the amount of your refund if your account is an interest-bearing account. If your loss exceeds the amount of the substitute check, you may be able to recover additional amounts under other laws.
If you use this procedure, you may receive up to $2,500 of your refund (plus interest if your accout earns interest) within 10 business days after we received your claim and the remainder of your refund (plus interest if your account earns interest) not later than 45 calendar days after we received your claim.
We may reverse the refund (including any interest on the refund) if we later are able to demonstrate that the substitute check was correctly posted to your account.
How Do I Make a Claim for a Refund?
If you believe that you have suffered a loss relating to a substitute check that you received and that was posted to your account, please contact us at Commercial State Bank, P.O. Box 179, Wausa, NE 68786 or 402-586-2266. You must contact us within 40 calendar days of the date that we mailed (or otherwise delivered by a means to which you agreed) the substitute check in question or the account statement showing that the substitute check was posted to your account, whichever is later. We will extend this time period if you were not able to make a timely claim because of extrordinary circumstances.
Your claim must include:
A description of why you have suffered a loss (for example, you think the amount withdrawn was incorrect);
An estimate of the amount of your loss;
An explanation of why the substitute check you received is insufficient to confirm that you suffered a loss; and
A copy of the substitute check and/or the following information: Identifying information such as the check number, the name of the person to whom you wrote the check, the amount of the check, etc.

The Federal Deposit Insurance Corporation (FDIC) and the Nebraska Department of Banking are the primary regulators of the Commercial State Bank, Wausa, Nebraska

COMMERCIAL STATE BANK
519 EAST BROADWAY PO BOX 179
WAUSA, NE 68786
402-586-2267 FAX 402-586-2175

NOTICE OF CHANGES IN TEMPORARY FDIC INSURANCE COVERAGE FOR TRANSACTION ACCOUNTS

All funds in a "noninterest-bearing transaction account" are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC's general deposit insurance rules.

The term "noninterest-bearing transaction account" includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes Interest on Lawyers Trust Accounts ("IOLTAs"). It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, and money-market deposit accounts.
For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov.