Electronic Fund Transfer Disclosure Statement
(Regulation E)

The following provisions of this Electronic Fund Transfer Disclosure Statement will not apply to commercial accounts: (i) the Our Liability for Failure to Make Transfers and Your Liability subparagraphs of Paragraph 8; and (ii) the entirety of Paragraph 9, titled In Case of Errors or Questions About Your Electronic Transfers Including ATM/Debit Card Transactions. For purposes of this limitation, a commercial account is an account that is not established primarily for personal, family, or household purposes.

This Disclosure Statement provides information about some of the terms and conditions of the electronic fund transfer service applicable to your account. (Items indicated may not apply to your account.) Please read this Disclosure Statement carefully. Since it describes your rights and responsibilities, you should keep the Disclosure Statement for future reference.

1. Types of Transfers
The following transfers may be made:

1. We accept certain direct deposits and preauthorized debits to your checking account.


2. We accept certain direct deposits and preauthorized debits to your savings account.

• Withdraw cash from your statement savings, checking, money market checking or NOW accounts.


• Make deposits to your statement savings, checking, money market checking or NOW accounts through La Jolla Bank ATM's only.


• Make transfers between your statement savings, checking, money market checking or NOW accounts.


• Pay for purchases at places that have agreed to accept the access device. (POS transactions NOT available for savings accounts, restricted to checking accounts only.)

ATM/Debit Cards
Each ATM/Debit Card issued to you is our property and may be canceled or repossessed by us at any time, with or without cause. You must surrender to us on demand each card issued to you. If you permit or authorize other person to use your Card and PIN, you will be liable on or for the resulting transactions. To guard against anyone making a transaction that you have not authorized, you should take all reasonable precautions to prevent any other person from learning your pin.

You may use your ATM/Debit Card with your PIN to:

• Withdraw cash from your savings/checking account.


• Make deposits to your savings/checking account (La Jolla Bank ATM location only).


• Transfer funds between your savings/checking accounts.


• Purchase goods or services at places that have agree to accept the access device.

Some of these services may not be available to you at all EFT terminals. If you have more than one account with us, some of these services may not be available for each account. On each processing day, you may

1. Withdraw from automated teller machines up to a maximum of $300 (or your available balance, if it is less than such amount).
2. Make POS (Point of Sale) purchases up to a maximum of $300. (or your available balance if it is less than such amount)
3. You may buy in goods or services up to a maximum of $300 with your Master Money debit card (or your available balance, if it is less than such amount). For security reasons, there are other limits on the number and size of transfers or withdrawals you can make using your Master Money Debit Card.

2. Limitations on Transfers
Transfers from a money market deposit account by automatic, preauthorized or telephone transfer are limited to six per statement cycle and not more than three can be by check, draft or debit card.
Limitation on Dollar Amounts of Tranfers.
Each day, you may:

1. Withdraw up to $300 in total from your statement savings, checking, money market checking or NOW accounts.
2. Buy up to $300 worth of goods or services at a point-of-sale transfer service. (Checking Accounts Only)
3. Master Money Debit Card purchases are limited to $300 per day.

3. Charges
We may charge you $2.00 for automatic transfers from another account to cover an overdraft. We may charge you $3.00 for each telephone transfer with a signed telephone authorization card on file or free with $10,000 minimum balance. La Jolla Bank customers have UNLIMITED use of La Jolla Bank ATM machines at no charge. For non-La Jolla Bank ATM transactions, there is NO CHARGE for the first six transactions in any monthly cycle. Each monthly cycle you will be charged $0.50 for each ATM transaction exceeding six. We will charge you $15 for each NSF/ATM/DEBIT/POS transaction.

4. Business Day Disclosure
Our business days are Monday through Friday. Holidays are not included.

5. Your Right to Receive Documentation:

• Transaction Receipts. You will be given written documentation reflecting any transaction performed at an electronic terminal at the time of the transaction.
• Preauthorized Credits. 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 800-333-1909 or 877-824-6019 or write to us at:

  La Jolla Bank
  888 Prospect Street
  La Jolla, CA 92037
  

  to find out whether or not the deposit has been made.
• Periodic Statements. You will get a monthly statement on your savings account. For savings accounts, if you would like account history information recorded in your passbook, bring or mail your passbook to us; we will record any electronic transactions that were made to your account since the last time you brought in your passbook.

• 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's how: Call us at 800-333-1909 or e-mail us at ljbank@ljbank.com or write to us at the address above in time for us to receive your request, in writing, three business days or more before the payment is scheduled to be made. If you call, we will require you to put your request in writing and get it to us within 14 days after you call.
• Notice of Varying Amounts. 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.)
• 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.

1. Where it is necessary for completing transfers, 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 agency or court orders, or


4. If you give us your written permission.

• If, through no fault of ours, you do not have enough money in your account to make the transfer.


• If the transfer will go over the credit limit on your overdraft line.


• 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 that we have taken.


• There may be other exceptions stated in our agreement with you.


• If the ATM where you are making the transaction does not have enough cash.

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 periods.

Reporting Lost Cards or PINs or Unauthorized Transfers
If you believe your ATM Card or Debit Card or PIN has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, call us immediately at 800-554-8969.

9. In Case of Errors or Questions About Your Electronic Transfers Including ATM/Debit Card Transactions, telephone 800-333-1909, e-mail us at ljbank@ljbank.com, or write to us at

La Jolla Bank
888 Prospect Street
La Jolla, CA 92037

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 an error or why you need more information.


3. Tell us about 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. If we ask you to put your complaint or questions in writing and we do not receive it within 10 business days, we may not re-credit your account. If we decide that there was not an error, we will send 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.

Special Note for Joint Accounts Regarding ACH (Automated Clearing House) Transactions:
Any one account holder may authorize automated clearing house entries or stop them.

Automated Clearing House Transacions ("ACH")
Under the operationg rules of the National Automated Clearing House Association which are applicable to ACH transactions involving your account, La Jolla Bank is not required to give next day notice to you of receipt of an ACH item, and we will not do so. However, La Jolla Bank will continue to notify you of the receipt of payments in the periodic statements we provide to you.
Credit given by La Jolla Bank to you with repect to an automated clearing house credit entry is provisional until we receive final settlement for such entry through a Federal Reserve Bank. If La Jolla Bank does not receive such final settlement, you are hereby notified and agree that La Jolla Bank is 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 the amount of such entry. A La Jolla Bank may accept on your behalf payments to your account which have been transmitted through one or more Automated Clearing House (ACH) and which are not subject to the Electronic Fund Transfer Act and you rights and obligations with respect to such payments shall be construed in accordance with and governed by the laws provided by the operating rules of the National Automated Clearing House Association, which are applicable to ACH transactions involving your account.