Your Financial Privacy at Virginia National Bank
July 2007

At Virginia National Bank, we treat the confidentiality of our customers as a cardinal customer expectation. When Congress enacted the Gramm-Leach-Bliley Act of 1999 (the "Financial Services Modernization Act"), it required banks and other providers of financial services and products to provide annual written notice of their privacy policies. Our commitment to confidentiality is not new. We will continue to respect and protect the privacy of the information you have entrusted to us. This notice provides you with information on how VNB collects and uses your personal customer information. This notice also details how we maintain the confidentiality and accuracy of certain information.

Information We Collect.
We collect nonpublic personal information about you from the following sources:

•	Information we receive from you on applications, personal financial statements, or other oral, written, or electronic communications, such as your name, address, Social Security number, assets, and income;
•	Information about your transactions with us, our affiliates, or others, such as your account balance and payment history;
•	Information we receive from a consumer reporting agency, such as information about your creditworthiness and credit history; and
•	Information we obtain from others to verify information provided by you, such as your employment history and credit or other relationships with third parties.

Nonpublic personal information does not include information that is available from public sources, such as telephone directories or government records.

Information We Disclose.
We do not disclose any nonpublic personal information about our customers or former customers to anyone outside of Virginia National Bank, except as required or permitted by law. For example, we may disclose information we collect about you to third parties to assist us in servicing your loan or account with us, to government entities in response to subpoenas, and to credit reporting agencies. In addition, we may disclose information we collect as described above to companies that perform marketing services on our behalf (although to date no such companies have been engaged by VNB).

Disclosure within the VNB Corporate Family.
Virginia National Bank has one affiliate, VNBTrust, N.A., that is considered to be within the VNB "corporate family" because of common ownership or control. For future reference, you may wish to note that to the extent permitted by law, we may share information about our transactions with you, as well as your identification information, with VNBTrust and other companies that in the future may become part of the Virginia National Bank "corporate family." The law provides that we also could share with companies in our corporate family other information about you, including

•	Information we obtain from your applications or other forms, such as your assets, income, and employment history;
•	nformation we obtain from a consumer reporting agency, such as your creditworthiness and credit history; and
•	Information we obtain from others to verify information provided by you, such as your credit or other relationships with third parties.

Please note, however, that for VNBTrust, N.A., and any other companies that in the future become part of the VNB corporate family, we do not plan to share with them any application and credit-related information about you without first obtaining your consent or providing you with the right to opt out of the sharing of such information. To this end, we would provide to you instructions on how to exercise your right to opt out.

Accuracy of Customer Information.
We believe it is vitally important that the information we maintain about you is as accurate as possible. We maintain internal controls and procedures to ensure the accuracy of your information. Should you have a question or concern about the accuracy or completeness of your information, please contact us and we will take immediate steps to correct the information or amend our records.

Information Security.
We endeavor to restrict access to nonpublic personal information about you to those employees who need such information to perform their job responsibilities. All Virginia National Bankers work pursuant to policies and a code of conduct that strongly emphasizes confidentiality. In addition, we maintain physical, electronic, and procedural safeguards that comply with federal regulations and standards to guard your nonpublic personal information.

Former Customers.
If you decide to close your account or should your relationship with us be terminated for some other reason, we will continue to treat and safeguard your information as described in this notice.

Notice of Furnishing Negative Information.
We may report information about your account to credit bureaus. Late payments, missed payments, or other defaults on your account may be reflected in your credit report.

Electronic Fund Transfers

Your Rights and Responsibilities
Indicated below are the types of Electronic Fund Transfers that Virginia National Bank is capable of handling, not all of which apply to every account type. Please read this disclosure carefully, because it tells you your rights and obligations for the transactions listed. You should keep this notice for future reference.

Electronic Fund Transfers Initiated by Third Parties.
You may authorize a third party to initiate electronic fund transfers between your account and the third party's account. These transfers to make or receive payments may be one-time occurrences or may recur as directed by you. These transfers may use the Automated Clearinghouse or other payment networks. Your authorization to the third party to make these transfers can occur in a number of ways. In some cases, your authorization can occur when the merchant posts a sign informing you of its policy. In all cases, the transaction will require you to provide the third party with your account number and bank information. This information can be found on your checks. Thus, you should only provide your bank and account information (whether over the telephone, the Internet, or some other means) to trusted third parties that you have authorized to initiate these electronic fund transfers. Examples of these transfers include, but are not limited to, the following:

•	Preauthorized credits. You may make arrangements for certain direct deposits to be accepted into your checking or savings accounts.
•	Preauthorized payments. You may make arrangements to pay certain recurring bills from your checking or savings accounts.
•	Electronic check conversion. You may provide your check to a merchant or service provider who will scan the check for the encoded bank and account information. The merchant or service provider will then use this information to convert the transaction into an electronic fund transfer. This may occur at the point of purchase or when you provide your check by other means, such as by mail or drop box.
•	Electronic returned check charge. Some merchants or service providers will initiate an electronic fund transfer to collect a charge in the event a check is returned for insufficient funds.

Important Information about Your Virginia National Bank Checking Account

The Check Clearing for the 21st Century Act, commonly known as "Check 21" was passed into law in October 2003, and took effect on October 28, 2004. Check 21 was enacted to improve the efficiency of the nation's financial system. It lessens the need for transporting millions of paper checks from place to place, a process that is costly, time consuming, and, as illustrated by the terrorist attacks of 9/11, sometimes impossible. After the terrorist attacks, airplanes were temporarily grounded, thereby disabling the transportation system developed to move paper checks across the nation. Lawmakers recognized the need to modernize and streamline the nation's check-clearing methods, and have chosen to allow paper checks to be replaced by digital images of those same checks. Digital images will be moved electronically, making the check clearing system less dependent on conventional transportation channels.

At present, every check that you write must be physically moved from the payee's hand to your bank for the payment process to work, a process that often involves several intervening financial institutions. Since October 28, 2004, all financial institutions have had the option of creating, processing, and exchanging a digital image (front and back) of the paper check rather than the check itself. The digital image of the check is known as a "substitute check," and carries all of the same rights and obligations as the original paper check. The substitute check is a legal document that may be used as proof of payment or for any other reason that might require an original cancelled check.

As you are aware, Virginia National Bank has always provided check images with its account statements. The regular image of any check that has cleared your account may be replaced by the image of the "substitute check." This means that any financial institution involved in the clearing of your original check opted to send a substitute check through the system to us rather than the check itself. In your statement, you will see the image of the substitute check.

As always, Virginia National Bankers are here to answer any questions that you might have concerning Check 21. Please give us a call or come by one of our offices. We would love to hear from you.