Common use of Debit balances Clause in Contracts

Debit balances. (a) You may formally request an overdraft facility with us, which we may in our absolute discretion agree to and which will be subject to the terms and conditions set out in a facility letter or agreement. (b) If a payment from your account would cause the account to go overdrawn or over an existing overdraft limit, this will be treated by us as an informal request from you for an overdraft or an increase of an existing formally arranged overdraft limit. We may, in our absolute discretion, agree to such an informal request, and may provide you with a temporary overdraft facility or increase your existing overdraft limit to cover the relevant payment. The temporary facility will continue until you pay funds into the account to clear the overdraft or to reduce the account balance back within your existing overdraft limit, or until we agree a formal overdraft limit or make a demand for repayment. (c) If we do not agree to an informal overdraft request relating to any payment from your account, we will not make that payment, and we may charge for assessing your request and for returning any unpaid payments. (d) Charges and interest on debit balances are payable in accordance with Clause 12 below.