OVERDRAFT POLICY Clause Samples

OVERDRAFT POLICY. Unless we have agreed to a separate overdraft protection agreement with you, the following rules apply. We are not obligated to pay any overdraft. We may assess a fee for each transaction that results in an overdraft, whether we pay the transaction or not. If we pay the transaction, you agree, immediately upon notice from us, to deposit funds sufficient to cover the overdraft plus any fees we impose. If you do not deposit enough money to make your account balance positive within 45 days after your account becomes overdrawn, your account will be closed. If we close your account because you did not repay your overdraft, we may report negative information about your account to a consumer reporting agency. We may also refer your account to a collection agency to recover the amount you owe us.

OVERDRAFT POLICY. In accordance with our commitment to provide valued service and benefits, we may, at our discretion, pay your overdraft transactions that would cause your eligible checking account to have a negative balance in the account based on the account’s “available balance” at the time a transaction is posted. We refer to this service as our Courtesy Pay Service. This Courtesy Pay and Overdraft Disclosure sets forth the terms and conditions applicable to the Courtesy Pay Service. If your account becomes overdrawn and you do not have overdraft protection, you are obligated to reimburse us on demand. What is an Overdraft? Some transactions can result in an overdraft (i.e., negative balance) in your checking account, when your available balance is insufficient to cover a transaction, but we pay it anyway under our Courtesy Pay Service. These transactions that can result in overdrafts include, but are not limited to:

OVERDRAFT POLICY. In accordance with your commitment to provide valued service and benefits, you may, at your discretion, pay my overdrafts that would cause my eligible checking account to have a negative balance up to the amount of my Overdraft Service limit, which is determined by you in your sole and absolute discretion. You refer to this service as your Overdraft Service (hereinafter referred to as the “Service”). The Service is different than the Personal Line of Credit and the Overdraft Protection Service plans. The Service is a backup to my existing overdraft protection plans and will only be activated if funds are not available from those plans. This Overdraft Services Agreement sets forth the terms and conditions applicable to the Service.

OVERDRAFT POLICY. (1) Within ninety (90) days, the Board shall adopt, implement, and thereafter ensure Bank adherence to a written policy concerning the extension of overdrafts that shall include, at a minimum: (a) conditions and circumstances under which overdrafts will be allowed, taking into consideration the requirements of 12 U.S.C. § 375b; (b) charges that will be levied against depositors using overdrafts; (c) conditions and circumstances under which overdrafts will be permitted to principal shareholders or the related interests (as that term is defined in 12 C.F.R. Part 215) of executive officers, directors or principal shareholders; and (d) conditions and circumstances under which overdrafts will be charged off. (2) Upon adoption, a copy of this policy shall be forwarded to the Assistant Deputy Comptroller. (3) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the policy developed pursuant to this Article.

OVERDRAFT POLICY. When an account has insufficient Available Balance, or Adjusted Available Balance (described below) at the time a payment transaction is presented to us, the transaction may be paid anyway (an overdraft) or it may be returned and declined (a non-sufficient fund (NSF) returned item). In either case, a fee may be charged as set forth in our Fee Schedule regardless of the number of times a transaction is submitted or resubmitted to the Credit Union by the merchant for payment. We want to educate you on the options for overdraft coverage available in the event your checking account does not contain sufficient Available Balance or Adjusted Available Balance to cover a payment transaction or withdrawal. We have several ways these transactions can be covered: 1. We can set up an Account Transfer from a regular savings account, and funds will be transferred to cover the transaction that would overdraw your checking account. Funds are required to be available in the savings account at the time of transfer, and there may be a fee for the transfer as defined in our Fee Schedule. This option avoids an NSF or courtesy overdraft fee for a purchase or transaction that might otherwise overdraw your account. 2. You can apply for a small, unsecured Personal Line of Credit that would be available to cover any transaction that might overdraw your account. You are required to pay any interest accrued on the funds that are transferred from a Personal Line of Credit to your checking account to cover the transaction that will overdraw your account. All applicants must meet underwriting guidelines before any Personal Line of Credit will be approved. This option avoids an NSF or courtesy overdraft fee for the clearing purchase or transaction that might otherwise overdraw your account. 3. We also have our Courtesy Overdraft Protection, in which we will strive to pay check and auto draft (ACH) items for you when there are not sufficient funds in your Available Balance. This service comes standard with all qualifying checking accounts (excludes custodian, trust, and estate accounts). When possible, in the Credit Union’s sole discretion, we may pay an item even though it takes your account’s Available Balance negative. It is the obligation of the institution to operate in accordance with all safety and soundness standards, therefore, a continual evaluation of all accounts is performed to determine if it is financially sound to honor items that may cause an overdraft situation for a par...

OVERDRAFT POLICY. (1) Within thirty (30) days, the Board shall prepare and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection a written policy concerning the extension of overdrafts that shall include, at a minimum: (a) Conditions and circumstances under which overdrafts will be allowed, taking into consideration the requirements of 12 U.S.C. § 375b; (b) Conditions and circumstances under which overdrafts will be permitted for Insiders, including their Related Interests (as these terms are defined in 12 C.F.R. Part 215); (c) Charges that will be levied against depositors using overdrafts; (d) Conditions and circumstances under which overdrafts will be charged off; (e) Criteria for converting an overdraft to a term loan; and (f) Monthly reports to and review of all overdrafts by the Board and management to ensure compliance with the Bank’s stated policy and with applicable laws and regulations. These monthly reports shall include all overdrafts of Insiders and their Related Interests and those customers with both the most frequent and largest overdrafts. (2) Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure adherence to the policy required by this Article.

OVERDRAFT POLICY. (1) Within sixty (60) days, the Board shall adopt, implement, and thereafter ensure Bank adherence to a written policy concerning the extension of overdrafts that shall include, at a minimum: (a) conditions and circumstances under which overdrafts will be allowed, taking into consideration the requirements of 12 U.S.C. § 375b; (b) charges that will be levied against depositors using overdrafts; (c) conditions and circumstances under which overdrafts will be permitted to principal shareholders or the related interests (as that term is defined in 12 C.F.R. Part 215) of executive officers, directors or principal shareholders; and (d) conditions and circumstances under which overdrafts will be charged off. (2) Upon adoption, a copy of this policy shall be forwarded to the ADC.

OVERDRAFT POLICY. If your account becomes overdrawn and you do not have overdraft protection, you are obligated to reimburse us on demand.

OVERDRAFT POLICY. We strongly encourage the responsible use of all accounts. It is against the law to write a check when you know that you do not have funds to cover it. Also, excessive NSF items may result in your account being closed. To avoid NSF items: — You can sign up for Overdraft Protection, — Accurately record all transactions including deposits, checks, ATM, POS, or Debit MasterCard withdrawals and fees. — Balance your account regularly and carefully check your math.