General disclosures

APS222 Disclosure

Citizens Security Bank (Guam) Inc ("CSB") is a wholly-owned subsidiary of Australia and New Zealand Banking Group, Ltd. ("ANZBGL"). CSB is a locally-chartered bank under the laws of the Territory of Guam. CSB is a member of, is regulated by, and its deposits are insured by, the United States Federal Deposit Insurance Corporation.

The Australian Prudential Standards require disclosure of the fact that CSB (which is licensed to do business in Guam), is not an authorized deposit-taking institution under the laws of Australia. The obligations of CSB do not represent deposits or other liabilities of ANZBGL, nor does ANZBGL guarantee the obligations of CSB.

Truth-in-Savings Act (TISA)

Notice of availability of account disclosure statements. Under the Truth-In-Savings Act, you are entitled to receive disclosures containing important information about interest rates, account fees and other provisions of an account. You may request that we send a disclosure statement by calling us at the telephone numbers listed below, or by writing to us as follows: Citizens Security Bank (Guam) Inc. P.O. Box EQ Hagatna, Guam 96932; Telephone numbers: Main Office +1 671 479 9000; Tamuning Branch +1 6714799206; Harmon Branch +1 671 479 9214; and Dededo Branch +1 671 479 9209.

Lending

Citizens Security Bank (Guam) Inc. is a member of the FDIC. Lending is subject to CSB’s normal credit approval and lending criteria.

Truth in Lending Act (TILA)

The Truth in Lending Act (TILA) of 1968 is a United States federal law designed to protect consumers in credit transactions by requiring clear disclosure of key terms of the lending arrangement and all costs. Most of the specific requirements imposed by TILA are found in Regulation Z, so a reference to the requirements of TILA usually refers to the requirements contained in Regulation Z as well as the statute itself.

The purpose of TILA is to promote the informed use of consumer credit by requiring disclosures about its terms, cost to standardize the manner in which costs associated with borrowing are calculated and disclosed. TILA also gives consumers the right to cancel certain credit transactions that involve a lien on a consumer's principal dwelling, regulates certain credit card practices, and provides a means for fair and timely resolution of credit billing disputes. With the exception of certain high-cost mortgage loans, TILA does not regulate the charges that may be imposed for consumer credit. Rather, it requires uniform or standardized disclosure of costs and charges so that consumers can shop. It also imposes limitations on home equity plans that are subject to the requirements of Sec. 226.5b and certain higher-cost mortgages that are subject to the requirements of Sec. 226.32. The regulation prohibits certain acts or practices in connection with credit secured by a consumer's principal dwelling.

ECOA (Equal Credit Opportunity Act)

The Equal Credit Opportunity Act (ECOA), 15 U.S.C. 1691 et seq., prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, or because an applicant receives income from a public assistance program or exercises rights protected under the Consumer Credit Protection Act. The Board of Governors of the Federal Reserve System has issued regulations under ECOA. These regulations, known as Regulation B, provide the substantive and procedural framework for fair lending enforcement under ECOA.

U.S.A. Patriot Act

The USA PATRIOT Act, commonly known as the PATRIOT Act, is an Act of Congress that U.S. President George Walker Bush signed into law on October 26, 2001. The acronym stands for "Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001" (Public Law Pub.L. 107-56).

The Act increases the ability of law enforcement agencies to search telephone, e-mail communications, medical, financial and other records; eases restrictions on foreign intelligence gathering within the United States; expands the Secretary of the Treasury’s authority to regulate financial transactions, particularly those involving foreign individuals and entities; and enhances the discretion of law enforcement and immigration authorities in detaining and deporting immigrants suspected of terrorism-related acts. The act also expands the definition of terrorism to include domestic terrorism, thus enlarging the number of activities to which the USA PATRIOT Act’s expanded law enforcement powers can be applied.

FDIC Deposit Insurance

The FDIC's basic insurance limit has been temporarily raised from $100,000 to $250,000 per depositor. This enhancement will be in effect through December 31, 2013.

Certain retirement accounts, such as individual retirement accounts (IRAs), continue to be insured up to $250,000 per depositor per insured bank.

Citizens Security Bank is also participating in the FDIC's Transaction Account Guarantee Program. Under the program, through December 31, 2013, all non-interest-bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. Interest checking accounts (also known as Negotiable Order of Withdrawal accounts or NOW accounts) that ANZ Guam Inc. has committed to maintain an interest rate at or below 0.50% through December 31, 2013, are also fully guaranteed by the FDIC. Coverage under the Transaction Account Guarantee Program is in addition to and separate from the coverage available under the FDIC's basic deposit insurance rules.

To learn more, contact the FDIC toll-free at 1 877 275 3342 from 8:00 a.m. until 8:00 p.m. ET or visit the FDIC website.