FUNDS AVAILABILITY POLICY

Purpose of this Disclosure

Our general policy is to allow you to withdraw funds deposited in an account on the first Business Day after the day of deposit. Funds from electronic direct deposits will be available on the day we receive the deposit. In some cases, we may delay your ability to withdraw funds beyond the first Business Day after the day of deposit. Our complete policy is summarized below.

For purposes of this disclosure, the terms “you” and “your” refer to the client, and the terms “our,” “we,” and “us” refer to Orrstown Bank. The term “account” includes any demand deposit, negotiable order of withdrawal account, savings deposit, money market account, or other non-time deposit account.

Determining the Availability of Your Deposit

The length of the delay varies depending on the type of deposit and is explained below. When we delay your ability to withdraw funds from a deposit, you may not withdraw the funds in cash, and we will not pay checks you have written on your account by using these funds. Even after we have made funds available to you and you have withdrawn the funds, you are still responsible for checks you deposit that are returned to us unpaid and for any other problems involving your deposit.

When we delay your ability to withdraw funds, the length of the delay is counted in Business Days from the day of your deposit. The term “Business Day” means any day other than a Saturday, Sunday, or federally declared legal holiday, and the term “Banking Day” means that part of any Business Day on which we are open to the public for carrying on substantially all of our banking functions.

If you make a deposit before 6:00 p.m. on a Business Day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit after 6:00 p.m. or on a day that we are not open, we will consider the deposit made on the next Business Day we are open.

Availability Schedule

Same-Day Availability

Funds from deposits of the following will be available on the day of deposit:

• Electronic direct deposits

• Cash*

• Wire transfers

• Checks drawn on us

Next-Day Availability

Funds from deposits of the following will be available on the first Business Day after the day of deposit:

• U.S. Treasury checks**

• U.S. Postal Service money orders**

• Federal Reserve Bank or Federal Home Loan Bank checks**

• State or Local Government checks**

• Cashier’s, Certified, or Teller’s checks**

Other Check Deposits

Funds from all other check deposits will be available on the first Business Day after the day of your deposit.

* Cash Deposits

If the cash deposits are made in person to an employee of Orrstown Bank, then the funds will be made available on the day we receive your deposit. If they are not made in person to an employee, then the funds will be made available no later than the next Business Day after the day of your deposit.

** Check Deposits

Check deposits include U.S. Treasury checks; U.S. Postal Service money orders; Federal Reserve Bank or Federal Home Loan Bank checks; State or Local Government checks; and Cashier’s, Certified, or Teller’s checks. In order for these check deposits to be made available according to the funds availability schedule above, the following conditions are required:

U.S. Treasury Checks: These checks must be made payable to you and deposited into your account.

U.S. Postal Service Money Orders; Federal Reserve Bank or Federal Home Loan Bank Checks; State or Local Government Checks; or Cashier’s, Certified, or Teller’s Checks: These checks must be made payable to you, made in person to one of our employees, and deposited into your account.

If any of these conditions are not satisfied, then the funds from these check deposits will be made available no later than the second Business Day after the day of your deposit.

Longer Delays May Apply

In some cases, we will not make all of the funds that you deposit by check available to you according to the previously stated availability schedule. Depending on the type of check that you deposit, funds may not be available until the first Business Day after the day of your deposit. The first $275.00 of your deposits, however, may be available on the first Business Day after the day of deposit.

If we are not going to make all of the funds from your deposit available to you according to the previously stated availability schedule, 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.

Funds you deposit by check may be delayed for a longer period under the following circumstances:

• If we believe a check you deposit will not be paid;

• If you deposit checks totaling more than $6,725.00 on any one day;

• If you redeposit a check that has been returned unpaid;

• If you have overdrawn your account repeatedly in the last six months; or

• If an emergency condition arises that would not enable us to make the funds available to you, such as the failure of computer or communications 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 than the fifth 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.

Holds on Other Funds for Check Cashing

If we cash a check for you that is drawn on another financial institution, 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.

Holds on Other Funds in Another Account

If we accept for deposit a check that is drawn on another financial institution, 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.

Special Rules for New Accounts

If you are a new client, the following special rules may apply during the first 30 days your account is open.

Same-Day Availability

Funds from cash* and electronic direct deposits made to your account, and checks drawn on us, will be available on the day we receive the deposit.

Next-Day Availability

Funds from wire transfers made to your account and the first $6,725.00 of a day’s total deposits of the following are available on the first Business Day after the day of your deposit:

• U.S. Treasury checks**

• U.S. Postal Service money orders**

• Federal Reserve Bank or Federal Home Loan Bank checks**

• State or Local Government checks**

• Cashier’s, Certified, or Teller’s checks**

• Traveler’s Checks**

Funds Exceeding $6,725.00

The excess over $6,725.00 of a day’s total check deposits will be available on the fifth Business Day after the day of your deposit.

Other Check Deposits

Funds from all other check deposits will be available on the fifth Business Day after the day of deposit.

* Cash Deposits

If the cash deposits are made in person to an employee of Orrstown Bank, then the funds will be made available on the day we receive your deposit. If the deposits are not made in person to an employee, then the funds will be made available no later than the second Business Day after the day of your deposit.

** Check Deposits

Check deposits include U.S. Treasury checks; U.S. Postal Service money orders; Federal Reserve Bank or Federal Home Loan Bank checks; State or Local Government checks; Cashier’s, Certified, or Teller’s checks; and Traveler’s checks. In order for these check deposits to be made available according to the funds availability schedule above, the following conditions are required:

U.S. Treasury Checks: These checks must be made payable to you and deposited into your account.

U.S. Postal Service Money Orders; Federal Reserve Bank or Federal Home Loan Bank Checks; State or Local Government Checks; Cashier’s, Certified, or Teller’s Checks; or Traveler’s Checks: These checks must be made payable to you, made in person to one of our employees, and deposited into your account.

If any of these conditions are not satisfied, then the first $6,725.00 of a day’s total check deposits will be made available no later than the second Business Day after the day of your deposit.

Foreign Checks

Checks drawn on financial institutions outside of the U.S. (foreign checks) cannot be processed the same as checks drawn on U.S. financial institutions. Foreign checks are exempt from the policies outlined in this disclosure.

Generally, the availability of funds from deposits of foreign checks will be delayed for the time it takes us to collect the funds from the financial institutions upon which they are drawn.

Deposits at Automated Teller Machines

If you make a deposit at an automated teller machine (ATM) that is owned and operated by us before 6:00 p.m. EST on a Business Day that we are open, we will consider the deposit made that day. However, if you make a deposit at an ATM that is owned and operated by us after 6:00 p.m. EST or on a day that we are not open, we will consider the deposit made on the next Business Day we are open.

Funds from any deposits, whether cash or checks, made at ATMs that we do not own or operate will not be available until the fifth Business Day after the day of your deposit. This rule does not apply at ATMs that we own or operate.

Additional Deposit Information

Mobile Bank Deposits

Funds from mobile deposits at Orrstown Bank are available the next Business Day if the deposit is approved and made before 4:30 p.m. EST for Consumer Accounts and 7:30 p.m. EST for Business Accounts.

If the deposit is approved after the specified cutoff time on a Banking Day or on a non-Banking Day, we will consider the day of deposit to be the next Business Day we are open.