Common use of Overdraft Transactions Clause in Contracts

Overdraft Transactions. The Credit Union is under no obligation (unless it has contracted to the contrary) to pay a check you have written if it would result in your checking account being overdrawn. A check written against your Checking Account when sufficient available funds are not on deposit in the account, and contractual arrangements are (i) the amount of any holds in place with respect to deposited checks or other items (such as pre-authorization holds placed in connection with one-time debit transactions, which are discussed in more detail below); (ii) the amount in the account that is subject to any preauthorization requests related to the account that have been accepted by the Credit Union. Examples of preauthorization requests are holds related to purchase transactions where the final amount is initially unknown, such as gas station purchases, restaurant charges, and hotel or car reservations, but there are other types of preauthorization requests that could affect your account as well. (iii) amounts in the account that are subject to holds based on court, tax agency, or other governmental proceedings; and (iv) amounts that we believe are subject to a dispute over ownership or other rights. Note that the use of the Available Balance for these purposes may cause a fee related to an overdraft to be charged, a line of credit to be advanced, and/or a transfer from another account to be made, even though your periodic statement (which reflects the Ledger Balance) may not reflect any time when the balance would be negative. Whether the transaction is paid or returned, your account may be subject to a charge as set forth in the Fee Schedule. If the Credit Union pays the item, you will be assessed a Courtesy Pay or Overdraft Transfer Fee. If the Credit Union returns the item, you will be assessed an NSF Fee. Note that the Credit Union has no control over how many times an intended payee may resubmit the same check or other item to us for payment. In the event the same check or other item is presented for payment on more than one occasion, your account will be subject to an additional charge on each occasion that the item is presented for payment. There is no limit to the total fees the Credit Union may charge you for overdrawing your account. The Credit Union has the option of honoring an item or dishonoring it to avoid the creation of an overdraft. The honoring of past overdrafts/NSF items does not obligate the Credit Union to honor them in the future. Subject to applicable law, the Credit Union may post transactions (deposits and withdrawals) to your account in any order it chooses. At present, it is the Credit Union’s practice or post transaction in the order they are received, however the Credit Union reserves the right to change its practice at any time. The Credit Union may pay the check and charge the amount of the resulting overdraft plus any applicable service charge against a designated account. The Credit Union is not required to send prior notice of items returned NSF or items paid, and you agree to deposit sufficient funds to cover any overdraft and service charges upon our demand. Failure to cover any resulting negative balance may result in account privilege restrictions. In the case of joint accounts, all of the joint owners are jointly and severally liable to repay the Credit Union the amount of any overdraft and service charges, regardless of which of the parties creates an overdraft. Overdrafts in connection with everyday debit transactions. Everyday debit transactions are processed against your account at two different times: first, when the transaction is authorized, and again when the transaction actually settles to your Account. There is a delay between the time a particular transaction is authorized and when it actually settles to your Account. This delay is within the sole control of the merchant. The Credit Union has no control with respect to the time period that elapses between the time a merchant seeks authorization and when that merchant submits the transaction for settlement. When the Credit Union authorizes an everyday debit transaction, the amount of the transaction is subject to a preauthorization hold. This means that the amount of the transaction is subtracted from your Actual Balance. It is important to understand that even if you have sufficient available funds in your account at the time the transaction is authorized, it is possible that the settlement of the transaction may result in an overdraft to your account, and the incurring of a fee. The two most common scenarios are as follows: Example 1: Purchase transactions where the final amount is initially unknown. The most common examples of a purchase transaction where the final amount is initially unknown are gas station purchases, restaurant charges, hotel and car reservations. In such cases the transaction will be communicated to the Credit Union for authorization in one amount, but when the transaction actually settles to your account it does so for a greater amount. For example, if you use your debit card to pay at the pump for a gasoline purchase, you typically must utilize your debit card before Example 2: Purchase transactions where intervening items paid between authorization and settlement result in the overdrafting of your Account. Assume the same gas station scenario as described in Example 1, except that you purchase gasoline totaling just $15.00, so the authorized amount of the transaction is the

Overdraft Transactions. The Credit Union is under no obligation (unless it has contracted to the contrary) to pay a check you have written if it would result in your checking account being overdrawn. A check written against your Checking Account when sufficient available funds are not on deposit in the account, and contractual arrangements areare not in place to cover it, is known as an “NSF Check” or an “overdraft”. However, the Credit Union will transfer an amount sufficient to cover the Checking Account deficiency with a transfer from your designated savings account, if funds are available. If you have been approved for a Line of Credit, and the amount of the overdraft does not exceed your available credit, the Credit Union will pay the check and add the amount of the resulting overdraft to the balance of your Line of Credit in accordance with the terms and conditions of the Line of Credit Agreement. When determining whether a check or other item drawn on your Checking Account is an NSF Check or an overdraft, both for the purpose of determining whether and how to honor it, and whether a fee related to it being an overdraft may be charged, the Credit Union uses the “Available Balance” for your Checking Account at the time the check or other item is presented, as opposed to using the “Ledger Balance”. The Ledger Balance is the account balance as shown on our books; the Available Balance is the Ledger Balance reduced by: (i) the amount of any holds in place with respect to deposited checks or other items (such as pre-authorization holds placed in connection with one-time debit transactions, which are discussed in more detail below); (ii) the amount in the account that is subject to any preauthorization requests related to the account that have been accepted by the Credit Union. Examples of preauthorization requests are holds related to purchase transactions where the final amount is initially unknown, such as gas station purchases, restaurant charges, and hotel or car reservations, but there are other types of preauthorization requests that could affect your account as well. (iii) amounts in the account that are subject to holds based on court, tax agency, or other governmental proceedings; and (iv) amounts that we believe are subject to a dispute over ownership or other rights. Note that the use of the Available Balance for these purposes may cause a fee related to an overdraft to be charged, a line of credit to be advanced, and/or a transfer from another account to be made, even though your periodic statement (which reflects the Ledger Balance) may not reflect any time when the balance would be negative. Whether the transaction is paid or returned, your account may be subject to a charge as set forth in the Fee Schedule. If the Credit Union pays the item, you will be assessed a Courtesy Pay or Overdraft Transfer MoneyNow Fee. If the Credit Union returns the item, you will be assessed an NSF Fee. Note that the Credit Union has no control over how many times an intended payee may resubmit the same check or other item to us for payment. In the event the same check or other item is presented for payment on more than one occasion, your account will be subject to an additional charge on each occasion that the item is presented for payment. There is no limit to the total fees the Credit Union may charge you for overdrawing your account. The Credit Union has the option of honoring an item or dishonoring it to avoid the creation of an overdraft. The honoring of past overdrafts/NSF items does not obligate the Credit Union to honor them in the future. Subject to applicable law, the Credit Union may post transactions (deposits and withdrawals) to your account in any order it chooses. At present, it is the Credit Union’s practice or post transaction in the order they are received, however the Credit Union reserves the right to change its practice at any time. The Credit Union may pay the check and charge the amount of the resulting overdraft plus any applicable service charge against a designated account. The Credit Union is not required to send prior notice of items returned NSF or items paid, and you agree to deposit sufficient funds to cover any overdraft and service charges upon our demand. Failure to cover any resulting negative balance may result in account privilege restrictions. In the case of joint accounts, all of the joint owners are jointly and severally liable to repay the Credit Union the amount of any overdraft and service charges, regardless of which of the parties creates an overdraft. Overdrafts in connection with everyday debit transactions. Everyday debit transactions are processed against your account at two different times: first, when the transaction is authorized, and again when the transaction actually settles to your Account. There is a delay between the time a particular transaction is authorized and when it actually settles to your Account. This delay is within the sole control of the merchant. The Credit Union has no control with respect to the time period that elapses between the time a merchant seeks authorization and when that merchant submits the transaction for settlement. When the Credit Union authorizes an everyday a one-time debit transaction, the amount of the transaction is subject to a preauthorization hold. This means that the amount of the transaction is subtracted from your Actual Ledger Balance. It is important to understand that even if you have sufficient available funds in your account Account at the time the transaction is authorized, it is possible that the settlement of the transaction may result in an overdraft to your accountAccount, and the incurring of a fee. The two most common scenarios are as follows: Example 1: Purchase transactions where the final amount is initially unknown. The most common examples of a purchase transaction where the final amount is initially unknown are gas station purchases, restaurant charges, hotel and car reservations. In such cases the transaction will be communicated to the Credit Union for authorization in one amount, but when the transaction actually settles to your account Account it does so for a greater amount. For example, if you use your debit card to pay at the pump for a gasoline purchase, you typically must utilize your debit card before before operating the pump. The Credit Union may receive an authorization request in the amount of $15.00. At the time of the authorization request, the Available Balance in your account is $30.00, so the Credit Union approves the authorization request, and the Available Balance in your account is reduced to $15.00. You proceed with the transaction, and purchase gasoline totaling $40.00. When that transaction actually settles to your Account in the amount of $40.00 as opposed to the $15.00 that was authorized, the Available Balance in your Account is not sufficient to cover the settlement of the preauthorized transaction. Accordingly, the Credit Union’s payment of the preauthorized transaction results in an overdraft, and you will incur a fee. Example 2: Purchase transactions where intervening items paid between authorization and settlement result in the overdrafting of your Account. Assume the same gas station scenario as described in Example 1, except that you purchase gasoline totaling just $15.00, so the authorized amount of the transaction is thethe same as the settlement amount of the transaction. However, between the day the transaction was authorized and the day the transaction settles to your account, a check in the amount of $35.00 is presented for payment. The Available Balance in your Account at the time of presentment is $15.00, but the Credit Union pays the item in accordance with its standard overdraft service, resulting in an overdraft. When the $15.00 gas station transaction actually settles to your Account, the Available Balance in your Account is not sufficient to cover the settlement of the preauthorized transaction, even though the settlement amount of the transaction is the same as the preauthorized amount of the transaction. Accordingly, the Credit Union’s payment of the preauthorized transaction results in an additional overdraft, and you will incur a fee.

Overdraft Transactions. The Credit Union is under no obligation (unless it has contracted to the contrary) to pay a check you have written if it would result in your checking account this Business Checking Account being overdrawn. A overdrawn (a check written against your Business Checking Account when sufficient insufficient available funds are not on deposit in the accountaccount is known as an NSF Check). However, the Credit Union may pay such check and charge the amount of the resulting overdraft plus any applicable service charge against any of your accounts. The Credit Union has the option of honoring an NSF Check or dishonoring it to avoid the creation of an overdraft. Honoring of past overdrafts does not obligate the Credit Union to honor them in the future. The Credit Union is not required to send prior notice of checks returned NSF, and contractual arrangements are you agree to immediately deposit sufficient funds to cover any overdraft and service charges. When determining whether a check or other transaction drawn on your Checking Account is an NSF Check or other nonsufficient funds transaction, both for the purpose of determining whether and how to honor it and whether a fee related to it being an overdraft may be charged, the Credit Union will use the “Available Balance” for your Checking Account at the time the check or other transaction is presented. The Available Balance is the balance shown on our books (“Ledger Balance”) reduced by (i) the amount of any holds in place with respect to deposited checks or other items (such as pre-authorization holds placed in connection with one-time debit transactionsitems, which are discussed in more detail below); (ii) the amount in the account that is subject to any preauthorization requests related to the account that have been accepted by the Credit Union, (iii) amounts in the account that are subject to holds based on court, tax agency, or other governmental proceedings, and (iv) amounts that we believe are subject to a dispute over ownership or other rights. Examples of preauthorization requests are holds related to purchase transactions where the final amount is initially unknown, such as gas station purchases, restaurant charges, and hotel or car reservations, but there are other types of preauthorization requests that could affect your account as well. (iii) amounts in the account that are subject to holds based on court, tax agency, or other governmental proceedings; and (iv) amounts that we believe are subject to a dispute over ownership or other rights. Note that the use of the Available Balance for these purposes may cause a fee related to an overdraft to be charged, or a line of credit to be advanced, and/or a advance or transfer from another account to be made, even though your periodic statement (which reflects the Ledger Balance) may not reflect any time when the balance (periodic statements use Ledger Balances) would be negative. Whether the transaction is paid or returned, your account may be subject to a charge as set forth in the Fee Schedule. If the Credit Union pays the item, you will be assessed a Courtesy Pay or Overdraft Transfer Fee. If the Credit Union returns the item, you will be assessed an NSF Fee. Note that the Credit Union has no control over how many times an intended payee may resubmit the same check or other item to us for payment. In the event the same check or other item is presented for payment on more than one occasion, your account will be subject to an additional charge on each occasion that the item is presented for payment. There is no limit to the total fees the Credit Union may charge you for overdrawing your account. The Credit Union has the option of honoring an item or dishonoring it to avoid the creation of an overdraft. The honoring of past overdrafts/NSF items does not obligate the Credit Union to honor them in the future. Subject to applicable law, the Credit Union may post transactions (deposits and withdrawals) to your account in any order it chooses. At present, it is the Credit Union’s practice or post transaction in the order they All individuals who are received, however the Credit Union reserves the right to change its practice at any time. The Credit Union may pay the check and charge the amount of the resulting overdraft plus any applicable service charge against a designated account. The Credit Union is not required to send prior notice of items returned NSF or items paid, and you agree to deposit sufficient funds to cover any overdraft and service charges upon our demand. Failure to cover any resulting negative balance may result in personally liable on this account privilege restrictions. In the case of joint accounts, all of the joint owners are jointly and severally liable to repay the Credit Union the amount of any overdraft and service charges, regardless of which of who writes the parties check that creates an overdraft. Overdrafts in connection with everyday debit transactions. Everyday debit transactions are processed against your account at two different times: first, when the transaction is authorized, and again when the transaction actually settles to your Account. There is a delay between the time a particular transaction is authorized and when it actually settles to your Account. This delay is within the sole control of the merchant. The Credit Union has no control with respect to the time period that elapses between the time a merchant seeks authorization and when that merchant submits the transaction for settlement. When the Credit Union authorizes an everyday debit transaction, the amount of the transaction is subject to a preauthorization hold. This means that the amount of the transaction is subtracted from your Actual Balance. It is important to understand that even if you have sufficient available funds in your account at the time the transaction is authorized, it is possible that the settlement of the transaction may result in an overdraft to your account, and the incurring of a fee. The two most common scenarios are as follows: Example 1: Purchase transactions where the final amount is initially unknown. The most common examples of a purchase transaction where the final amount is initially unknown are gas station purchases, restaurant charges, hotel and car reservations. In such cases the transaction will be communicated to the Credit Union for authorization in one amount, but when the transaction actually settles to your account it does so for a greater amount. For example, if you use your debit card to pay at the pump for a gasoline purchase, you typically must utilize your debit card before Example 2: Purchase transactions where intervening items paid between authorization and settlement result in the overdrafting of your Account. Assume the same gas station scenario as described in Example 1, except that you purchase gasoline totaling just $15.00, so the authorized amount of the transaction is the.