DO NOT CALL/CAN SPAM POLICY

POLICY STATEMENT

It is the policy of  KleinBank to comply with the Telephone Consumer Protection Act implemented by the Federal Communication Commission (FCC), 47 CFR 64.  KleinBank requires third parties with whom KleinBank contracts to conduct telephone solicitation activities on its behalf to also comply with the Federal Trade Commission’s (FTC) Telemarketing Sales Rule, 16 CFR 310. Additionally, KleinBank complies with the “Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003” (CAN SPAM Act).  For the purposes of this policy, KleinBank includes its operating divisions, KleinMortgage and KleinInsurance.

BACKGROUND

The Federal Communication Commission (FCC) has established a national “Do Not Call” registry and regulations pursuant to the Telephone Consumer Protection Act (TCPA).  The FCC has expanded coverage of the national “Do Not Call” registry by including banks, insurance companies, and other financial institutions.  Minnesota has also established a Do Not Call registry.  Minn.Stat.325 E.311 – 316.  The Federal Trade Commission’s (FTC) telemarketing regulations parallel the FCC regulation and apply to all other business entities, including third parties acting as agent or on behalf of a financial institution. The impact of the FCC rule is to prohibit any entity making telephone solicitations from calling any phone number on the registry without being subject to financial penalties. Telephone solicitations made to numbers not on the registry are subject to proper calling times, a maximum rate of abandoned calls, and a requirement to transmit caller ID information.  Additionally, entities making telephone solicitations must maintain an internal Do Not Call list for consumers who have informed the entity they do not wish to be contacted further. 

The CAN SPAM Act requires the bank to follow specific procedures when initiating electronic mail messages to any recipient with the primary purpose of communicating a commercial message. The procedures include allowing recipients of commercial messages to opt out  of future correspondence, not including false or misleading information in header and subject lines of messages, identifying the message as an advertisement, including a physical address of the sender. 

RESPONSIBILITY

The Board appoints the Compliance Manager as the officer responsible for implementing procedures to comply with TCPA and CAN SPAM Act.  All employees of KleinBank must comply with the terms of this policy and procedures. 

POLICY

TCPA provides consumers with options to avoid unwanted telephone solicitations.  A telephone solicitation is any telephone call to any residential line for the purpose of encouraging the purchase, rental, or investment of property, goods, or services without the prior express consent of the called party, unless the call:

• Is made for emergency purposes;
• Is not made for a commercial purpose;
• Is made for a commercial purpose but does not include or introduce an unsolicited advertisement or constitute a telephone solicitation;
• Is made by a tax exempt entity;
• Is made to any person with that person’s express permission;
• Is made to any person with whom the caller has an established business relationship at the time the call is made

KleinBank initiates telephone solicitations to encourage consumers to purchase bank products and services.  It is the responsibility of the Compliance Manager to ensure KleinBank remains in compliance with the TCPA and this policy.  All telephone solicitation activities shall be coordinated by the Marketing Department in accordance with the following guidelines:

1. KleinBank will not directly or through a third party initiate a telephone solicitation to a residential telephone subscriber who has registered his or her telephone number on the national Do Not Call registry. A safe harbor exists for an inadvertent violation of this requirement if KleinBank demonstrates that the violation was an error and that our routine practices include:
   
   • Written procedures;
     
   • Training of personnel;
     
   • Maintenance of a list of telephone numbers excluded from contact;
     
   • Use of a version of the national Do Not Call registry obtained no more than 31 days prior to the date any call is made (with records to document compliance); and
     
   • Process to ensure that it does not sell, rent, lease, purchase or use the Do Not Call database in any manner except in compliance with regulations.
     
     
2. The Compliance Manager is charged with developing and maintaining written procedures for compliance with the Do Not Call rules. The procedures are made available to all KleinBank employees on the KleinBank Help Center.   
   
   
3. KleinBank maintains an internal Do Not Call list reflecting the telephone numbers of consumers who have requested to be excluded from telephone solicitation by KleinBank.  Such requests will be honored for a minimum of five years.
   
   
4. KleinBank is a subscriber to the National Do Not Call database.  KleinBank complies with the Registry certification requirements and maintain a current Subscription Account Number (SAN).   
   
   
5. KleinBank contracts with a third party service provider to obtain lists of consumers meeting our marketing requirements.  The third party service provider is obligated by contract with KleinBank to provide the names and telephone numbers of consumers that are not on the national Do Not Call registry using KleinBank’s SAN.  KleinBank prohibits the third party service provider from using KleinBank’s SAN for any other client relationships.  Along with the list, the company provides the date of the Do Not Call registry version consulted.  KleinBank will use the list for a maximum of 90 days from the date the of the registry version.        
   
   
6. KleinBank will not share its SAN with any third parties who are not service providers under the TCPA, including affiliates.If an affiliate, such as Tradition Title commences any action covered by the TCPA, the affiliate will be responsible for maintaining a valid SAN prior to initiating any customer contact. 
   
   
7. KleinBank will only initiate telephone solicitation calls between the hours of 8:00 a.m. and 9:00 p.m. (local time at the called party’s location).
   
   
8. KleinBank does not currently employ automated dialing.  Should our telephone solicitation procedures change, KleinBank will comply with limits on “abandoned calls” and employ other consumer friendly practices when using automated telephone dialing equipment.  These practices include abandoning no more than three percent of calls answered by a person; delivering a prerecorded identification message when abandoning a call; refraining from calling two or more telephone lines of a multi-line business simultaneously; disconnecting an unanswered telephone solicitation call prior to at least 15 seconds or four rings; maintaining records documenting compliance with call abandonment rules.
   
   
9. KleinBank does not currently initiate prerecorded messages.  Should our telephone solicitation procedures change, KleinBank will identify itself along with the telephone number that can be used during normal business hours to ask not to be called again.
   
   
10. KleinBank will transmit a caller ID where our telephone systems allow and will not block the transmission of a caller ID to consumers.
    
    
11. KleinBank will ensure that unsolicited fax transmissions are preceded by receipt of the express written permission and signature of the intended recipient.  This does not apply to those customers with whom we have an existing customer relationship.  KleinBank marketing will retain proof of the express permission to send fax advertisements for 5 years from the date faxes are no longer sent to the entity.
    
    
12. KleinBank employees will identify themselves to all call recipients and describe the nature of the products and services being sold or offered during all outbound telephone calls.
    
    
13. KleinBank will make full disclosure about its products and services and will not misrepresent the characteristics of the goods or services offered.
    
    
14. Before a customer pays for any goods or services, the bank will disclose the following information:
    
    • The total cost of the product or service,
    • All restrictions, limitations, or conditions relating to the product or service,
    • The bank’s refund, cancellation, exchange, or repurchase policy relating to the product or service.
      
      
15. If any telephone call relates to a prize promotion, KleinBank employees will describe the prize and disclose that no purchase is necessary to win or participate in the promotion.  The employee will also indicate any odds for winning the prize and all associated costs to the customer for redeeming the prize.
    
    
16. If a consumer requests a copy of our “Do Not Call” policy, we will send a copy via U.S. mail or electronic mail.  The KleinBank Do Not Call policy statement is also posted on our KleinBank website.
    

B. CAN SPAM Act

CAN SPAM provides electronic mail message recipients with options to avoid unwanted commercial electronic mail messages (commercial message).   To be covered under the CAN SPAM Act, the message must be sent to an "electronic mail address" which is a destination, consisting of a unique user name or mailbox and a reference to an Internet domain.

A commercial message is a message whose primary purpose is the commercial advertisement or promotion of a commercial product or service.  The CAN-SPAM Act does not apply to transactional or relationship messages. 

Transactional or relationship messages include:

1. Messages to facilitate, complete, or confirm a transaction that the recipient has previously agreed to enter into with KleinBank;
   
   
2. Notifications concerning:
   • a change in the terms or features of an account, loan or ongoing commercial relationship;
   • notification of a change in the status of an account, loan or relationship with KleinBank;
     
     
3. Periodic statements containing account balance information or other type of account statement;
   
   
4. Information directly related to an employment relationship or related benefit plan in which the recipient is currently involved, participating, or enrolled; or
   
   
5. To deliver goods or services, including product updates or upgrades, that the recipient is entitled to receive under the terms of a transaction that the recipient has previously agreed to enter into with KleinBank.

All electronic mail messages initiated by KleinBank where the primary purpose of the message is commercial will conform to the following:

1. No commercial messages will be initiated to recipients on the KleinBank Do Not Call list; 
2. Header information, including the source, destination and routing information , domain name and email address will not be misleading or concealed;
3. A subject will be included in all external emails.  The subject may not be false or misleading;
4. All commercial messages must include the physical address for KleinBank, KleinInsurance or KleinMortgage;
5. The message must include an opt out provision.  Any recipient opting not to be included in future commercial messages will be added to the KleinBank’s Do Not Call List.  The opt out is permanent unless the recipient agrees at a later date to be included in electronic mail commercial message campaigns.

C. Training

It is the policy of KleinBank that all employees of the following departments receive annual training to ensure appropriate compliance with KleinBank’s Do Not Call/CAN SPAM Policy and Procedures:

• Retail Banking
• Marketing
• Compliance
• Audit
• Education
• KleinInsurance
• KleinMortgage
• Customer Service

The Compliance Manager is responsible for coordinating the training program with the Education Department.

KleinBank will retain certain records (e.g. advertising, brochures, telemarketing scripts, promotional materials, etc.) for 24 months.  The Do Not Call list of names and numbers will be retained for 5 years from the date of creation. 

This policy requires that appropriate and timely tests, audits and evaluations be conducted to ensure the Bank is in compliance with TCPA regulations and the CAN SPAM Act.  KleinBank designates the Internal Audit Department to conduct periodic internal audit reviews of the Bank’s compliance efforts.