Funds Availability Policy Disclosure

The Karnes County National Bank of Karnes City
301 E Calvert, PO Box 98
Karnes City, Texas 78118-0098
830-780-3317

Purpose of This Disclosure

This disclosure describes our policy for determining when funds from deposits made to your transaction account will be available for withdrawal. Generally, transaction accounts are accounts which would permit an unlimited number of payments by check to third person, and also an unlimited number of telephone and preauthorized transfers. Our policy is to make funds from your deposits available on the day of deposit. However, in certain circumstances, we may delay your ability to withdraw funds in accordance with this Funds Availability Policy.

We may delay the availability of funds from any deposit to the extent permitted by Regulation CC. The availability of funds may vary depending on the type of deposit, the amount of the deposit, account history, and other risk-related factors.

Determining the Availability of Your Deposit

The length of any delay in the availability of funds is counted in business days from the day of your deposit. Business days are Monday through Friday, excluding federal holidays. If you make a deposit before 3:00 PM (cutoff) on a business day that we are open, we will consider that day to be the day of your deposit. If you make a deposit after 3:00 PM or on a day we are not open, we will consider the deposit made on the next business day.

In some cases, we may delay the availability of funds from your deposit. Funds from check deposits will generally be available no later than the seventh (7th) business day after the day of your deposit, unless otherwise specified in this policy. Funds availability decisions will be applied consistently in accordance with this policy.

Holds on Other Funds

If we cash a check for you that is drawn on another financial institution, we may withhold availability of a corresponding amount of funds already in your account. Those funds will be available when the deposited check would have been available. If we accept a check for deposit, we may make funds available immediately but delay availability of funds in another account to cover the deposit.

Longer Delays May Apply

We may delay the availability of funds beyond the standard timeframes under the following circumstances:

• You have repeatedly overdrawn your account
• You redeposit a check that has been returned unpaid
• We believe a check you deposit will not be paid
• Emergency conditions exist

We will notify you if we delay availability for these reasons and provide the date funds will be available. The Bank reserves the right to delay the availability of funds based on reasonable cause, including concerns regarding collectability, account activity, or other risk factors.

Rules for Large Deposits

If you deposit checks totaling more than $6,725 on any one business day, we may delay availability as follows:

• First $275 available next business day
• Next $6,450 available second business day
• Remaining balance available no later than seventh business day

Certain items (government checks, cashier’s checks, etc.) may be available sooner as required by regulation.

Deposits at Automated Teller Machines (ATMs)

Deposits made at our ATMs are considered received on the day of deposit if made before the cutoff time. Deposits made after the cutoff time or on a non-business day will be considered received on the next business day.

Funds from deposits made at ATMs will not be available for immediate withdrawal. In most cases, funds from check deposits made at our ATMs will be available no later than the fifth (5th) business day after the day of your deposit.

Longer delays may apply as described in this policy. In such cases, funds may not be available until the seventh (7th) business day after the day of your deposit.

Right to Refuse Deposits

We reserve the right to refuse any item for deposit if we have reason to believe it may pose a risk of loss or may not be collectible. This Funds Availability Policy applies only to deposits that we accept.

Rules for New Accounts

If your account has been open for less than 30 days, the following special rules apply:

• Funds from electronic deposits, cash, and wire transfers will be available on the day received
• Funds from and certain items like federal and local government checks, cashier’s checks will be available by no later than the next business day
• Funds from all other check deposits will be available by no later than the ninth (9th) business day after the day of your deposit

Customer Notice

If you need funds from a deposit right away, you should ask us when the funds will be available.