This Agreement governs your use of Mobile Remote Deposit Capture, a service that allows you to make deposits to your account from home or other remote locations by creating and submitting electronic check images to Hills Bank and Trust Company ("MRDC"). This Agreement is in addition to those that apply to any accounts you have with Hills Bank and Trust Company or any other services you obtain from us.

Definitions
As used in this Agreement, the words, "we," "our," "us" and "Bank" mean Hills Bank and Trust Company and the words "you" and "your" to mean each account owner(s) or authorized signer(s). "Account(s)" means your checking, savings, or money market savings account at the Bank. "Device" means a device specified by us that is not a personal computer, including a mobile phone, personal digital assistant (PDA), or tablet that is camera enabled and has the capability to download our Hills Bank App. "Business Day" means Monday through Friday except bank holidays.

Equipment

To use MRDC, you must own a Device. You represent and warrant that you are the owner or authorized user of the Device you use for MRDC and that you are authorized to approve the applicable charges. Hills Bank does not charge a fee for MRDC, but you are responsible for any and all charges and fees associated with MRDC imposed by your communications service provider.

You acknowledge and agree that MRDC is dependent upon the functionality of the communications service provider that supports your Device. Hills Bank is not responsible for the unavailability, delay, or temporary interruption of MRDC due to service interruptions or failure of the Device, the telecommunications service, or the communications service provider. MRDC may be delayed, interrupted or otherwise negatively impacted by factors relating to your Device, your communications service provider, or other parties, or due to other reasons. We will not be liable for any such delays, interruptions, or negative impacts to MRDC and you agree that neither we nor our service providers will be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Eligible Items.

You agree to scan and deposit only checks as that term is defined in Regulation CC ("Reg CC"). You acknowledge that the electronic image of the original check submitted to us shall be deemed an "item" within the meaning of Article 3 and 4 of the Uniform Commercial Code. You agree that you will submit to us for deposit to your account only electronic images that are sufficient image copies (as outlined in the Image Quality section below) of original checks for deposit via MRDC. You agree that you will not scan and deposit any of the following types of checks or other items which shall be considered ineligible items:

o Checks payable to any person or entity other than you (i.e. no third party deposits).

o Checks containing an apparent alteration to any information on the front of the check or item, or which you know or suspect, or should know or suspect, is fraudulent or otherwise not authorized by the owner of the account on which the check is drawn.

o Checks payable jointly, unless deposited into an account in the name of all payees.

o Checks previously converted to a substitute check (as defined in Reg. CC).

o Checks drawn on a financial institution located outside the United States or payable other than in United States money.

o Checks that are remotely created checks (as defined in Reg CC).

o Checks dated more than 6 months prior to the date of deposit.

o Checks or items prohibited by Hills Bank’s current procedures relating to MRDC or that are otherwise unacceptable under the terms of your account.

o Checks with any endorsement on the back other than that specified in this Agreement.

o Checks that have previously been submitted through MRDC or through a remote deposit capture service offered at any other financial institution.

o Any other type of check that we may designate by prior notice to you as not eligible for deposit using MRDC, or that we may so designate at the time of an attempted deposit by rejecting it and returning it to you, which we may do for any reason in our sole discretion.

We reserve the right to charge back to your account at any time, any item that we subsequently determine was not an eligible item. You agree that we are not liable for any loss, costs, or fees you may incur as a result of our chargeback of an ineligible item.

Procedures and Endorsements.

If you have met, in our sole discretion, the conditions we have established for use of MRDC to make deposits via electronic images, we will provide for acceptance for deposit to your account the electronic images of original checks for collection as allowed under this Agreement. You agree to follow any and all other procedures and instructions for use of MRDC that we may establish from time to time. You agree to restrictively endorse any item transmitted through MRDC as "For deposit only, account #______" or as we otherwise instruct.

Receipt of Items.

Deposits are deemed to have been received upon confirmation by Hills Bank of successful receipt of the transmission of electronic images that are complete, usable, and adhere to the requirements of this Agreement. We are not responsible for items we do not receive or for images that are dropped during transmission. If the electronic images are not complete, are not usable, or do not adhere to the requirements of this Agreement, we may not process the images. In such event, your deposit will be adjusted and notification will be provided to you. You have no right to cancel or amend any deposit after we receive it.

Image Quality.

The Electronic Image of an item transmitted to us using MRDC must be legible, as determined in our sole discretion. It must accurately represent all of the information on the front and back of the original check or is otherwise sufficient to determine whether or not a claim is valid. Without limiting the foregoing, the image quality of the items must comply with the requirements established from time to time by Hills Bank, the American National Standards Institute (ANSI), the Board of Governors of the Federal Reserve Board, or any other regulatory agency, clearinghouse or association.

Rejection of Deposits

We reserve the right to reject any item transmitted through MRDC, at our discretion, without liability to you. If any electronic image is not complete, is not usable, or does not adhere to the requirements of this Agreement, the electronic image may not be processed by us, in which event your deposit will be adjusted and notification provided. We will notify you of such rejection no later than the Business Day following the date the deposit is received by us. Furthermore, your deposit of a check image via MRDC is subject to our verification and final inspection process. We are under no obligation to inspect or verify an electronic image to determine accuracy, legibility or quality of such image or other information associated with the image, or for any other purpose. Notices of rejection will be effective when given. We shall have no liability to you by reason of the rejection of any MRDC deposit or the fact that such notice is not given at an earlier time than that provided herein.

Availability of Funds.

MRDC is generally available 24 hours a day, 7 days a week. However, we only process transactions and update information on Business Days. If an image of an item you transmit through MRDC is received by us and accepted before 6:00 p.m. CST on a Business Day, we consider that day to be the day of your deposit. Otherwise, we will consider that the deposit was made the following Business Day. For purposes of determining the availability of funds, checks deposited using the MRDC service are considered received by us when the MRDC system expressly indicates that the check images were received and accepted by us. Acknowledgment of receipt or delivery does not constitute an acknowledgment by us that the transmission of a check or items does not contain errors.

Our policy is generally to make funds deposited using MRDC available to you on the first Business Day after we receive and accept your deposit if the deposit was made prior to 6:00 p.m. CST. In some cases, we will not make all of the funds that you deposit by MRDC available to you on the first Business Day after the day of 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. The first $200 of your MRDC deposits, however, will be available on the first Business Day.

In addition, funds you deposit by MRDC may be delayed for a longer period. Some examples of circumstances in which deposits may be delayed are, but are not limited to:

o We believe a check you deposit will not be paid.

o You deposit checks totaling more than $5,000.00 on any one day.

o You redeposit a check that has been returned unpaid.

o You have overdrawn your account repeatedly in the last six (6) months.

o There is an emergency, such as failure of computer or communications equipment.

We will notify you in writing, either by mail, email, or secure message, if we delay your ability to withdraw funds for any reason and we will tell you when the funds will be available. They will generally be available no later than the seventh business day after the day of your deposit. If you will need the funds from a deposit right away, you should ask us when the funds will be available. To confirm when the funds will be available, you may call us at 1-800-445-5725 during normal business hours.

Returned Items

Any items we accept for deposit through MRDC that are unpaid or subsequently returned by the financial institution on which they are drawn will be charged back against your account and returned to you. You must accept all returns, regardless of the reason for the return or the form in which it is sent. If a third party makes a claim against us or seeks re-credit with respect to any item, we may provisionally freeze or hold aside a like amount in your account pending investigation and resolution of the claim. You may be charged deposit reversal fees for any returns, pursuant to our normal polices and Fee Schedule. If any return or fee results in an overdraft in your account, relevant provisions of the nonsufficient funds and overdraft sections of your Account Disclosures will apply.

Storage and Disposal of Transmitted Items.

Upon your receipt of a confirmation from us that we received an image that you transmitted, you agree to write "Deposited Electronically" on the Original Check and to retain and securely store the original check for at least 14 calendar days from the date of the image transmission. After 14 days, you agree to destroy the original check that you transmitted as an image, mark it "Processed Electronically", or otherwise render it incapable of further transmission, deposit, or presentment. You are solely responsible for any losses or damages resulting from a lack of adequate controls over the original checks. During the time the retained original check is available, you agree to promptly provide it to us upon request. You agree to provide assistance to us in order to aid in the collection process, for audit purposes, or in connection with an investigation by us involving an item that (i) is illegible or of poor quality; (ii) is deemed part of an unusual transaction, (iii) is the subject of a dispute, or (iv) is for any other reason the subject off an investigation and you agree to promptly produce either the original check if it is still in your possession or your own image of the item to help facilitate our investigation. If you are unable to provide either the original item or a suitable image, then our image or other information in our records relating to the item shall be deemed conclusive as to the item. If you fail to retain the original check as provided above, you understand and agree you shall be solely responsible for the cost of any claim brought by any third party for the check that for resolution would reasonably require access to the original check and shall indemnify for any losses we may incur as a result of your failure to produce the original check.

Deposit Limits.

We may establish limits on the dollar amount and/or number of items or deposits from time to time. If you attempt to initiate a deposit in excess of these limits, we may reject your deposit. If we permit you to make a deposit in excess of these limits, such deposit will still be subject to the terms of this Agreement, and we will not be obligated to allow such a deposit at other times. The current daily dollar limit is $49,999.00 per Business Day. You cannot deposit more than eight (8) items per day via MRDC.

Presentment.

The manner in which the items are cleared, presented for payment, and collected shall be in our sole discretion subject to other agreements governing your account.

Errors.

You agree to notify us immediately of any suspected errors regarding items deposited through MRDC, and in no event later than 30 days after the applicable account statement is delivered to you. We may require you to put your notification in writing. Unless you notify us within 30 days, such statement regarding all deposits made through MRDC shall be deemed correct, and you are prohibited from bringing a claim against us for such alleged error.

Warranties and Indemnification.

Each time you transmit a deposit using MRDC, you warrant to us that:

1. The electronic image you send to us via MRDC is an accurate representation of all information on the front and back of the original check at the time the check was converted to an electronic image, and the electronic image contains all endorsements from the original check.

2. Each Electronic Image satisfies all requirements of Reg CC and the Check Clearing for the 21st Century Act (commonly known as "Check 21"), as it may be amended, substituted for, or recodified from time to time, for the creation and/or transferring of a substitute check.

3. You will not deposit the original check, a duplicate electronic image, or any copy of the original check with us (unless we instruct you to do so) or under any circumstance with any other bank or financial institution.

4. The original check, a duplicate electronic image, or any copy of the original check or electronic image will not be presented, transferred, or returned such that we or any other person will be asked to make payment based on an original check or electronic image that we or the other person has already paid.

5. All information you provide to Hills Bank is accurate and true.

6. You will comply with this Agreement and all applicable rules, laws and regulations.

7. You are not aware of any factor which may impair the collectability of the item.

8. The original check has not been altered and that all signatures on it are authentic and authorized.

We are entitled to rely on the information, representations, and warranties provided by you pursuant to this Agreement and the use of MRDC and shall not be responsible for the accuracy or completeness thereof. You agree to indemnify and hold harmless Hills Bank from any loss for breach of any warranty or representation made by you in this Agreement.

Security

You agree to the security procedures used by Hills Bank in connection with MRDC and acknowledge that they are commercially reasonable with respect to the size, type, and frequency of deposits you anticipate submitting. As part of the security procedures, we may employ various authentication technologies, including, but not limited to, use of User IDs, passwords, and other additional authentication information that we may require you to provide in our sole discretion. We employ various security and authentication technologies to ensure that you are communicating directly with Hills Bank. The Bank reserves the right to change any or all of the security procedures offered and/or used at any time by giving oral or written notice to you. You agree that your use of MRDC after we provide notice of such change constitutes your acceptance of the new security procedures. You acknowledge that the purpose of the security procedures is to authenticate the identity of the person initiating the action, not to detect errors in any transmission or content. We are not agreeing to any security procedures or other procedure for the detection of errors.

You understand and acknowledge that if you do not implement and follow your own reasonable hardware, software, physical access and physical storage security procedures regarding your any of the data owned by you, which includes your sensitive personally identifiable information and your MRDC user name and password, the security of your deposits made via MRDC may be compromised. You understand, acknowledge, and agree that installation, maintenance, and operation of your Device and related security procedures that you adopt and follow, including, but not limited to, data security protection, firewalls, and anti-virus software, is your sole responsibility and that you are solely responsible for securing, encrypting, protecting, and otherwise safeguarding your user ID and password provided by Hills Bank.

If you have reason to believe that any security procedures has or may have become known by unauthorized persons, you shall immediately notify Hills Bank by phone at 1-800-445-5725. To the maximum extent permitted by applicable law, you will be solely liable for all transactions initiated before we received such notification and have had a reasonable opportunity to act on such notification.

Our Liability

When using MRDC, you may sometimes experience technical or other problems. We do not assume any responsibility or liability for any technical or other problems, or for any losses or damages you may incur. If at any time for any reason you are unable to scan or transmit or we are unable to receive your deposits through MRDC, and you do not wish to wait for the problem to be corrected, you will be solely responsible at your expense for finding an alternate method to deposit the items. We will NOT be liable in the following situations:

o If your equipment, including, but not limited to, your Device, was not working properly.

o If MRDC was not working properly due to the failure of electronic or mechanical equipment, the failure or outages of communications lines, the Internet, telephone lines, mobile networks, or other interconnect problems, normal maintenance, unauthorized access, theft, operator errors, severe weather, and/or floods.

o If you have not given us complete, correct, or current deposit instructions or other identifying information so that we can properly access your account or otherwise complete the deposit.

o If an item is intercepted or misdirected during transmission.

o If we cannot process an item due to poor quality of the image.

o If you do not properly follow our instructions, if you provide us with inaccurate information, or fail to correct or notify us about any inaccuracy of which you are aware.

o If you do not allow adequate lead-time for deposits to be received.

o If circumstances or persons beyond our control prevent, delay, intercept, or alter the transaction, despite reasonable precautions we have taken.

o If your transaction or instruction is not in accordance with any term or condition of this Agreement or any other agreement applicable to the relevant account.

o If your transaction or instruction would violate any provision of any risk control program of the Federal Reserve of the Office of the Comptroller of the Currency or would violate any applicable rule or regulation of any other federal or state regulatory authority.

Limitation of Liability

Except as specifically set forth in this Agreement or where the law requires a different standard, the Bank and its officers, directors, shareholders, agents, licensors, or third-party service providers will not be liable for any direct, indirect, special, incidental, punitive, exemplary or consequential damages, (including lost profits, loss of data, files, profit or goodwill or the cost of procurement of substitute goods or services), whether in contract, warranty, tort (including negligence), strict liability, or otherwise, arising from or related to this Agreement, MRDC, or the inability to use MRDC due to reasons including scheduled maintenance or circumstances beyond our control such as: (a) power outages, (b) system failures; (c) fire; (d) flood; (e) natural disasters; (f) extreme weather; (g) VIRUS OR MALWARE ATTACK (SUCH AS A KEYSTROKE LOGGING PROGRAM OR SIMILAR MALWARE); OR (G) ANY ATTACK BY A PERSON ATTEMPTING OR ACTUALLY GAINING UNAUTHORIZED ACCESS TO THE DATA OWNED BY YOU; etc., regardless of whether the Bank has been apprised of the likelihood of such damages.

No representations or warranties

To the fullest extent permitted by law, the Bank and its third party service providers make no representations or warranties of any kind, express or implied, including any implied warranty of merchantability, fitness for a particular purpose, or against any infringement of any proprietary rights of any other party in conjunction with MRDC. We do not and cannot warrant that you will have continuous, timely, secure, or uninterrupted access to MRDC, that MRDC will meet your requirements, that any function of MRDC will be error-free, or that defects or errors will be corrected, or that our website and app that make mrdc available is free of viruses or other harmful components. Neither the Bank nor any third party service provider assumes responsibility for the operation, security, functionality, or availability of any mobile phone, tablet device, internet, or network that you utilize to access or use mrdc. This paragraph shall survive termination of this Agreement by either you or Hills Bank.

Indemnification

Except to the extent that we are liable under the terms of this Agreement or another agreement governing MRDC or the account, you agree to indemnify and hold us, our affiliates, officers, directors, employees, consultants, agents, service providers, and licensors harmless from any and all third-party claims, liability, damages, and/or costs (including, but not limited to, reasonable attorneys’ fees) arising from or related to: (1) a third-party claim, action, or allegation of infringement, misuse, or misappropriation based on information, data, files, or other materials submitted by you to us; (2) any fraud, misrepresentation, manipulation, or other breach of this Agreement, (3) your violation of any laws or rights of a third party, including, but not limited to, your infringement or infringement by any other user of your accounts, of any intellectual property right of a third party; or (4) our provision of MRDC or the use of MRDC by you or any third party. We reserve the right, at our own expense, to assume the exclusive defense and control of any matter otherwise subject to indemnification by you, in which case you will cooperate with us in asserting any available defenses that you have. You will not settle any action or claims on our behalf without our prior written consent.

Your Liability for Transactions

You are liable for all transactions made through MRDC using your Device, including those made by someone else who you let use your Device.

Change of Terms and Termination of this Agreement

This Agreement will stay in effect until it is changed or terminated. We have the right to terminate the Agreement and MRDC at any time for any reason. We will ordinarily send you notice of any termination, but we are not required to do so unless applicable law requires such notice. Once we terminate this Agreement, no further deposits can be made. We may also, at our discretion and at any time, suspend and/or reinstate your access to MRDC for any reason. Hills Bank may revise the terms of this Agreement at any time by posting a new version on Hills Bank Online or on www.hillsbank.com. You may be required to affirmatively accept the revised Agreement in order to continue using MRDC. The revised version will be effective at the time it is posted unless a delayed effective state is expressly stated in the revision. Any use of MRDC after a notice of change or after the posting of a revised version of this Agreement on Hills Bank Online or on our website will constitute your agreement to such changes and revised versions. You may terminate your use of MRDC at any time. However any transfer instructions will continue in effect until we have received your notice of termination and have had a reasonable opportunity to act upon it. Once we have acted upon your notice, no further deposits can be made.

Software

You acknowledge and agree that we, our service providers, and/or our licensors or suppliers own all rights to any software provided by us or by our licensor’s to you, including, but not limited to, the Hills Bank App ("Software"). You agree to comply with all applicable Software license agreements, whether or not you have executed these agreements. Such license agreements shall be embedded in the Software, separately documented, and/or as provided herein, and you shall be bound by all of the foregoing. You have no rights or ownership in any Software provided by or through us or our service providers, licensors, or suppliers and you agree not to transfer, copy, alter, modify, reverse engineer, reproduce, or convey in any manner, in whole or in part, any such Software. Your right to use the Software is personal to you; therefore, you agree not to resell or make any commercial use of the Software. We reserve the right to alter features, licensing terms, or other characteristics of any version of MRDC or the Hills Bank App that we release. You also agree to assist in the installation and implementation of any changes and upgrades to MRDC and the Hills Bank App as required by us to ensure compliance with regulatory change and developments or to protect the integrity and security of MRDC.

Waivers

No delay or omission by us in exercising any rights or remedies under this Agreement or applicable law shall impair such right or remedy or be construed as a waiver of any such right or remedy. Any single or partial exercise of a right or remedy shall not preclude further exercise of that right or remedy or the exercise of any other right or remedy. No waiver shall be valid unless in a writing enforceable by us.

Notices and Communications

Except as otherwise provided in this Agreement, all notices required to be sent to you will be effective when we mail or deliver them to the last known address that we have for you in our records or when we deliver or make such notices available to you through electronic means. All notices and communications sent by you to us will be effective when we have received them and have had a reasonable opportunity to act on them. All notices will be sent to the address of the owner of the applicable account as reflected in our records, unless a different postal or electronic address has been specified in accordance with procedures we may establish from time to time. The person receiving the notice is responsible for providing copies of all account-related information to all joint owners or other persons with access to the account. You agree to notify us promptly of any change in your mailing address, email address, or telephone number.

Attorneys’ Fees

If we become involved in legal action to defend or enforce this Agreement, you agree to pay our reasonable attorneys’ fees and court costs to the extent not prohibited by law.

Governing Law

You agree that this Agreement, as well as all transactions partly or wholly executed or facilitated by or through Services, shall be governed by the law of the State of Iowa.