It is the policy of Grand Bank of Texas ("Bank") to comply with applicable laws and regulations and to conduct business in accordance with applicable safety and soundness standards.

Overdraft Security will go into effect when there is an insufficient balance in your account, unless Bank elects to stop this service on your account. An insufficient balance may result from: a) the payment of checks, debits or other withdrawal requests; b) payments authorized by you; c) the return of items deposited by you; or d) the payment of bank service charges.

Under Overdraft Security, Bank is not obligated to pay any item presented for payment if an account does not contain sufficient funds. If, however, you maintain your account in a satisfactory manner, we will ordinarily pay your overdrafts up to your approved limit, as a non-contractual service. "Satisfactory manner" is defined as i) you make regular deposits to the account to cover the overdraft, ii) sufficient deposits are made to bring your account to a positive balance within 30 days of the first overdraft, iii) there are no liens, levies or other legal orders outstanding on your account, iv) any loans with Grand Bank of Texas remain in good standing, and v) your account has been open for at least 60 days. Bank will not approve an overdraft in excess of the overdraft security limit approved on your account. This amount includes our non-sufficient funds (NSF) fees.

WE RESERVE THE RIGHT TO STOP THIS SERVICE ON YOUR ACCOUNT AND REFUSE TO PAY AN OVERDRAFT FOR YOU AT ANY TIME, EVEN THOUGH WE MAY HAVE PREVIOUSLY PAID OVERDRAFTS TO YOU. You will be notified by mail of any non-sufficient funds items paid or returned; however we have no obligation to notify you before we pay or return any item. The amount of any overdrafts including NSF fees owed under the Overdraft Security shall be due and payable on demand. Be advised that if an overdraft is paid on an account with more than one owner on the signature card, each owner and agent (if applicable) drawing or presenting the item creating the overdraft shall be jointly and severally liable for that overdraft plus NSF fees.

LIMITATIONS

Overdraft Security is available only to consumer accounts for personal or household use. We reserve the right to limit the number of accounts eligible for Overdraft Security to one account per household. We also reserve the right not to pay any overdraft against your account until we can establish that your account is being maintained in a satisfactory manner. (See above definition.)

FEES

A per item fee will be charged to an account as a non-sufficient funds fee whether Bank pays or returns a non-sufficient funds item. The non-sufficient fee is set forth in our account fee schedule and is subject to change with proper notification.