Common use of Insufficient Funds and Overdrafts Clause in Contracts

Insufficient Funds and Overdrafts. Your Account Balances - Your checking account has two balances that determine whether you will be assessed an overdraft or a non-sufficient funds fee: the “Daily Collected Balance” and the “Available balance.” It is important to understand how the two balances are calculated and how they are used to know when you may be charged Insufficient Funds Charges. Your Daily Collected Balance is all of your deposits, less transactions paid, and less transactions that you have preauthorized and for which a merchant has requested a hold (typically these are transactions made with your debit card over the MasterCard network – without entering your “PIN.”). Your Available Balance is all of your deposits, less any holds on deposits per our Funds Availability Policy, less transactions paid, and less preauthorized holds. A temporary debit authorization hold affects your Available Balance - On debit card purchases, merchants may request a temporary hold on your account for a specified sum of money, which may be more or less than the actual amount of your purchase. When this happens, our processing system cannot determine that the amount of the hold exceeds or is less than the actual amount of your purchase. This temporary hold, and the amount charged to your account, will eventually be adjusted to the actual amount of your purchase, but it may be up to three days before the adjustment is made. Until the adjustment is made, the amount of funds in your Available Balance for other transactions will be reduced by the amount of the temporary hold. If another transaction (other than one made with your debit card) is presented for payment in an amount greater than the funds left after the deduction of the temporary hold amount your available balance, that transaction may be declined or returned pursuant to the descriptions below. For everyday (non-recurring) debit card and ATM transactions, you must opt-in to have us cover your overdrafts. If you do not opt-in, and a merchant asks us to authorize a transaction that exceeds your Available Balance, we will decline the transaction without assessing any fee. Other overdraft sources. In addition to the below overdraft program, the Bank offers customers a line of credit (if eligible) and a “draw account service,” which links your other eligible accounts to your checking account to avoid overdrafts. The cost for the line of credit is the applicable interest rate. And the cost of a transfer from another eligible account is $10.00 per transfer, regardless of if the transfer is enough to otherwise prevent an Insufficient Funds Charge. For additional terms and conditions, please see the Cash Reserve Agreement or the line of credit and please see the “Checking Account Disclosure” for additional terms for the draw account service.

Insufficient Funds and Overdrafts. Your When you initiate a withdrawal, fund transfer or other payment transaction from or through use of the Account Balances - Your checking account has two balances or one is initiated against the Account, you must have an Available Balance in the Account that determine whether is sufficient to cover, at the time, in the amount and in the manner required under the Agreement, the Account Rules and/or any other agreements we may have with you, the withdrawal, fund transfer or other payment transaction you will are initiating from or through use of the Account or that is being initiated against the Account. Please note that your Available Balance may be assessed an overdraft or a non-sufficient funds fee: reduced by several factors as provided in the definition of “Daily Collected Available Balance” and the “Available balance.” It is important to understand how the two balances are calculated and how they are used to know when you may be charged Insufficient Funds Charges. Your Daily Collected Balance is all of your depositsherein, less transactions paid, and less transactions that you have preauthorized and for which a merchant has requested a hold (typically these are transactions made with your including by debit card over transaction holds. If under the MasterCard network – without entering your “PIN.”). Your Agreement or the Account Rules, the Available Balance is all of your depositsnot sufficient or we otherwise deem in good faith that it is not sufficient, less any holds on deposits per our Funds Availability Policy, less transactions paidwe will not be required to honour or pay, and less preauthorized holdswe may return or reject, the withdrawal, fund transfer or other payment transaction. A temporary debit authorization hold affects your Available Balance - On debit card purchasesWe may also assess against you and charge against the Account a insufficient funds (“NSF”) fee for each Item returned or rejected, merchants may request a temporary hold including for multiple returns or rejections of the same Item. If funds in the Account are not sufficient to cover our NSF fees, you agree to pay us, on your account for a specified sum of moneydemand, which may be more or less than the actual amount of such fees. If we pay a withdrawal, fund transfer or other payment transaction when you do not have a sufficient Available Balance, thereby creating or increasing an overdraft in your purchaseAccount, we may also charge against the Account an NSF fee for each Item so paid. When this happensYou agree to pay us, our processing system cannot determine that on demand, the amount of the hold exceeds overdraft and all fees associated therewith. Whether we pay a withdrawal, fund transfer or other payment transaction in such circumstances is less than the actual amount of your purchase. This temporary holdsolely within our discretion, and we reserve the amount charged right not to do so. We typically do not pay Items into overdraft if your accountAccount is not in good standing, will eventually be adjusted to the actual amount of your purchaseyou are not making regular deposits, or you have had excessive overdrafts, but it we may be up also refuse to three days pay any Item into overdraft for any other reason or for no particular reason. We may impose NSF fees in connection with the return or rejection of any type of Item, and in connection with our decision to pay any type of Item into overdraft status, including cheques, ATM withdrawals or withdrawals by other electronic means. Among our other rights, either before the adjustment is made. Until the adjustment is madeor after we make a demand upon you for payment of any overdraft amount or NSF fees, the amount we may deduct all or any part of funds in your Available Balance for other transactions will be reduced by the amount of the temporary holdoverdraft and associated fees from the Account or any other accounts you (including any joint Account holder) may have with us or any of our Affiliates. If another transaction we deduct all or any part of the amount of the overdraft and associated fees from the Account or your other accounts (including those of any joint Account holder), we will not be liable to you or any other than one made with your debit card) is presented person for payment in an amount greater than the dishonouring transactions, including cheques and other Items, because of insufficient funds left after resulting from the deduction of such overdraft amount and associated fees. The fact that we may pay withdrawals, fund transfers or other payment requests that overdraw the temporary hold amount your available balance, that transaction may be declined Account on one or returned pursuant to the descriptions below. For everyday (non-recurring) debit card and ATM transactions, you must opt-in to have us cover your overdrafts. If you do more occasions does not opt-in, and a merchant asks obligate us to authorize a transaction that exceeds your Available Balance, we will decline do so on any future occasion and does not prevent us from recovering from you the transaction without assessing any feeamount of the overdraft and associated fees. Other overdraft sources. In addition to the below overdraft program, the Bank offers customers a line Our NSF fees and other fees and charges are set out in our Schedule of credit (if eligible) and a “draw account service,” which links your other eligible accounts to your checking account to avoid overdrafts. The cost for the line of credit is the applicable interest rate. And the cost of a transfer from another eligible account is $10.00 per transfer, regardless of if the transfer is enough to otherwise prevent an Insufficient Funds Charge. For additional terms and conditions, please see the Cash Reserve Agreement or the line of credit and please see the “Checking Account Disclosure” for additional terms for the draw account serviceFees.

Insufficient Funds and Overdrafts. Your Account Balances - Your checking account has two balances that determine whether you will be assessed an overdraft or a non-sufficient funds fee: the “Daily Collected Balance” and the “Available balance.” It is important to understand how the two balances are calculated and how they are used your responsibility to know when you may be charged Insufficient Funds Charges. Your Daily Collected Balance is all of your deposits, less transactions paid, and less transactions that you have preauthorized and for which a merchant has requested a hold (typically these if there are transactions made with your debit card over the MasterCard network – without entering your “PIN.”). Your Available Balance is all of your deposits, less any holds on deposits per our Funds Availability Policy, less transactions paid, and less preauthorized holds. A temporary debit authorization hold affects your Available Balance - On debit card purchases, merchants may request a temporary hold on your account for a specified sum of money, which may be more or less than the actual amount of your purchase. When this happens, our processing system cannot determine that the amount of the hold exceeds or is less than the actual amount of your purchase. This temporary hold, and the amount charged to your account, will eventually be adjusted to the actual amount of your purchase, but it may be up to three days before the adjustment is made. Until the adjustment is made, the amount of sufficient funds in your Available Balance for other transactions will be reduced by the amount of the temporary hold. If another transaction (other than one made account before you write a check, make a cash withdrawal at an ATM, make a purchase with your debit card) is presented , or issue, initiate or authorize any other item for payment in an amount greater than from your account. It is important that you carefully monitor the funds left after the deduction in your account, and promptly record in your account register all of the temporary hold amount your deposits to, and items that you issue, initiate or authorize for payment from, your account. You should never assume that you can make a covering deposit to your account before an item will be presented to us for payment because items are often presented to us for payment very quickly, and because funds from your covering deposit may not be immediately available balance, for withdrawal. You can avoid insufficient funds and overdraft charges by making sure that transaction may be declined or returned pursuant your account always contains sufficient funds to the descriptions below. For everyday (non-recurring) debit card cover all of your withdrawals and ATM payment transactions, you must opt-in to have us cover your overdrafts. If you do not opt-inuse an Overdraft Protection Service, then the actions that we are authorized to take in connection with an item presented to us for payment from your account and that would create an overdraft in your account if paid will depend upon the type of item, and those actions are as follows: If you are not covered by one of our Overdraft Protection Services described below, and you prefer that we authorize your “onetime” (“everyday”) debit card transactions for payment when your available balance is not sufficient to cover them, then you should consider our Debit Card Overdraft Authorization and Enrollment. 1. Debit Card Overdraft Authorization and Enrollment. With our Debit Card Overdraft Authorization and Enrollment: • If a merchant asks us “one-time” (“everyday”) debit card transaction overdraws your account, then the applicable overdraft charge described in our Schedule of Service Fees and Charges will be assessed and debited from your account. You must immediately pay the overdraft and the related overdraft charge, and return your account to authorize a positive balance. • There is no service fee to add our Debit Card Overdraft Authorization and Enrollment to your account, and there is no charge unless your debit card transaction overdraws your account. • There is no overdraft charge if your account were overdrawn during the day and you were to deposit or transfer sufficient available funds to your account to return it to a positive balance before the posted cut-off time on that business day. • Whether we will pay a “one-time” (“everyday”) debit card transaction that exceeds would create an overdraft in your Available Balanceaccount is completely discretionary on our part, and we reserve the right to not pay such item regardless of your enrollment in our Debit Card Overdraft Authorization and Enrollment. For example, we will decline the transaction without assessing any fee. Other likely would not pay an overdraft sources. In addition to the below overdraft programif your account were not in good standing, the Bank offers customers a line of credit (or if eligible) and a “draw account service,” which links your other eligible accounts to your checking account to avoid you have incurred excessive overdrafts. The cost • Our Debit Card Overdraft Authorization and Enrollment does not apply to checks and other items for the line of credit is the applicable interest ratepayment from your account, including transactions that you have established for recurring payment (such as utility bills or club memberships). And the cost of a transfer from another eligible We may continue to pay those items at our discretion and create overdrafts in your account is $10.00 per transfer, regardless of even if the transfer is enough to otherwise prevent an Insufficient Funds Charge. For additional terms you do not enroll in our Debit Card Overdraft Authorization and conditions, please see the Cash Reserve Agreement or the line of credit and please see the “Checking Account Disclosure” for additional terms for the draw account serviceEnrollment.

Insufficient Funds and Overdrafts. Your Account Balances - Your checking If a check, in-person withdrawal, or transaction made by other electronic means, including without limitation any debit card transaction, or ACH debit, whether initiated by you or a third-party, hereafter referred to as an item, is drawn on this account has two balances that determine whether and there are not sufficient funds in the account (your Available Balance) to pay the item, we may pay or refuse to pay the item. If we pay the item, either because you will be assessed have entered into an overdraft practice or a non-sufficient funds fee: protection plan with us or because you requested the item be paid, an Insufficient Funds, Overdraft – POS, and/or Uncollected Funds fee (collectively, “Daily Collected BalanceFee” and the or “Available balance.” It is important to understand how the two balances are calculated and how they are used to know when you Fees”) may be charged Insufficient Funds Charges. Your Daily Collected Balance is all of your deposits, less transactions paid, and less transactions that you have preauthorized and for which a merchant has requested a hold (typically these are transactions made with your debit card over the MasterCard network – without entering your “PIN.”). Your Available Balance is all of your deposits, less any holds on deposits per our Funds Availability Policy, less transactions paid, and less preauthorized holds. A temporary debit authorization hold affects your Available Balance - On debit card purchases, merchants may request a temporary hold on against your account for the paid item. If your Checking Account has a specified sum ChexMate Overdraft Protection Line of moneyCredit associated with it, which may be more or less than the actual amount terms and conditions contained in your ChexMate Overdraft Protection Line of Credit Agreement will control with respect to overdrafts of your purchaseChecking Account regardless of whether they result from purchases, cash withdrawals, use of checks or use of any other card or device. When Transactions are posted in the order received. Generally: Credits are posted first, followed by xxxxxx; credits are posted by amount in descending order, and debits are posted by amount in ascending order. The assessment of fees is based on the posting order. We do not in any way obligate ourselves to pay any item which would overdraw this happensaccount, our processing system cannot determine that the amount regardless of the hold exceeds or is less than frequency with which we may do so as a matter of practice. You authorize us to obtain a credit bureau report on any accountholder in the actual amount of your purchase. This temporary hold, and the amount charged event that it becomes necessary to collect overdrafts on your account, will eventually be adjusted to the actual amount of your purchase, but it may be up to three days before the adjustment is made. Until the adjustment is made, the amount of funds in your Available Balance for other transactions will be reduced by the amount of the temporary hold. If another transaction (other than one made with your debit card) is presented we enlist the services of an attorney for payment in an amount greater than collection purposes, we have the funds left after the deduction right to collect reasonable attorney's fees and court costs from you. In Case of the temporary hold amount your available balance, that transaction may be declined Errors or returned pursuant to the descriptions below. For everyday (non-recurring) debit card and ATM transactionsQuestions About Your Statements - To minimize our mutual risk of loss, you must opt-in carefully examine your statement and report to have us cover as soon as possible any problem, including but not limited to errors, forgeries, unauthorized withdrawals or alterations, and any Insufficient Funds, Overdraft - POS, and/or Uncollected Funds fees that you believe were improperly assessed. You agree that 60 days after the statement is first made available to you is the maximum reasonable amount of time for you to review your overdraftsstatement and report any problem related to a matter shown on the statement. If no report is made to us within such time, you do not opt-inwaive your right to contest the payment of any items so disclosed, and a merchant asks you accept the fees and charges assessed and the account balance reported as correct. Failure to notify us to authorize a transaction that exceeds your Available Balance, we will decline the transaction without assessing any fee. Other overdraft sources. In addition to the below overdraft program, the Bank offers customers a line of credit (if eligible) and a “draw account service,” which links your other eligible accounts to your checking account to avoid overdrafts. The cost for the line of credit is the applicable interest rate. And the cost of a transfer problem within 60 days after your statement is first made available to you shall preclude you from another eligible account is $10.00 per transferrecovering any amounts against us. Call us at (000) 000-0000, regardless of if (000) 000-0000, or write to us at the transfer is enough to otherwise prevent an Insufficient Funds Chargeaddress provided below as soon as you can. IF YOU TELL US ORALLY, WE MAY REQUIRE THAT YOU SEND US YOUR COMPLAINT OR QUESTION IN WRITING TO THE ADDRESS PROVIDED BELOW, TO BE RECEIVED BY US WITHIN 10 BUSINESS DAYS. For additional terms and conditionsInformation on electronic funds transfer error resolution, please see the Cash Reserve Agreement or Bank’s Electronic Funds Transfer Disclosure Statement. Disclosure of Account Information – The Bank’s use of account information is governed by the line of credit and please see the “Checking Account Disclosure” for additional terms for the draw account serviceBank’s Privacy Policy, which can be found on xxx.xxxxxx.xxx.

Insufficient Funds and Overdrafts. Your Account Balances - Your checking account The Bank has two balances no obligation to pay any item that determine whether you will be assessed an overdraft or a non-sufficient funds fee: the “Daily Collected Balance” and the “Available balance.” It is important to understand how the two balances are calculated and how they are used to know when you may be charged Insufficient Funds Charges. Your Daily Collected Balance is all of your deposits, less transactions paid, and less transactions that you have preauthorized and for which a merchant has requested a hold (typically these are transactions made with your debit card over the MasterCard network – without entering your “PIN.”). Your Available Balance is all of your deposits, less any holds on deposits per our Funds Availability Policy, less transactions paid, and less preauthorized holds. A temporary debit authorization hold affects your Available Balance - On debit card purchases, merchants may request a temporary hold on your account for a specified sum of money, which may be more or less than the actual amount of your purchase. When this happens, our processing system cannot determine that the amount of the hold exceeds or is less than the actual amount of your purchase. This temporary hold, and the amount charged to your account, will eventually be adjusted to the actual amount of your purchase, but it may be up to three days before the adjustment is made. Until the adjustment is made, the amount of funds in your Available Balance for other transactions will be reduced by the amount of the temporary hold. If another transaction (other than one made with your debit card) is presented for payment in against insufficient available funds. The Bank may determine whether or not your account contains sufficient available funds to pay an amount greater than item at any time between the funds left after time the deduction item is presented and the Bank's return deadline, and only one determination of the temporary hold amount account balance is required. If that determination reveals insufficient available funds to pay the item, the Bank is not required to pay the item and may return it unpaid. Alternatively, the Bank may pay the item and create an overdraft in your account. Whether or not the Bank decides to pay the item and create an overdraft is in the sole discretion of the Bank and will depend on various factors, including your history with the Bank. Moreover, the honoring of one or more items drawn against insufficient available funds does not obligate the Bank to honor any other such items, either in the future or during the same day's processing, and you should not rely on the Bank to honor any particular items drawn against insufficient available funds. If you would prefer that PIN based point of sale transactions always be denied if they will overdraw your current available account balance, please contact the Bank at any branch location, via mail at Xxxxxx Bank, P.O. Box 505, Attica, OH 44807, via e-mail at xxxxxxxxxxx@xxxxxxxxxx.xxx or by calling 0-000-000-0000. In all cases, the Bank is not required to give you prior notice that transaction may an item will be declined returned for insufficient available funds. An insufficient balance or returned pursuant overdraft in your account and each item presented for payment against insufficient available funds in your account (whether paid, denied, or returned) are each subject to an Overdraft Penalty as provided in the descriptions belowBank's then- current Account Information Schedule. For everyday (non-recurring) debit card and ATM transactionsYou agree that if your account becomes overdrawn for any reason, you must opt-immediately deposit sufficient funds to cover the overdraft and any penalties assessed upon notice of the overdraft. Moreover, you agree to reimburse the Bank for any costs it incurs in to have us cover your overdrafts. If collecting the overdraft from you do including, but not opt-inlimited to, reasonable attorney's fees, and a merchant asks us to authorize a transaction that exceeds your Available Balancethe costs of litigation, we will decline the transaction without assessing any fee. Other overdraft sources. In addition arbitration or other dispute resolution, to the below overdraft program, the Bank offers customers a line of credit (if eligible) and a “draw account service,” which links your other eligible accounts to your checking account to avoid overdrafts. The cost for the line of credit is the applicable interest rate. And the cost of a transfer from another eligible account is $10.00 per transfer, regardless of if the transfer is enough to otherwise prevent an Insufficient Funds Charge. For additional terms and conditions, please see the Cash Reserve Agreement or the line of credit and please see the “Checking Account Disclosure” for additional terms for the draw account serviceextent permitted by law.

Insufficient Funds and Overdrafts. Your Account Balances - Your checking account has two balances that determine whether you will be assessed an overdraft or a non-sufficient funds fee: the “Daily Collected Balance” and the “Available balance.” It is important to understand how the two balances are calculated and how they are used to know when you may be charged Insufficient Funds Charges. Your Daily Collected Balance is all of your deposits, less transactions paid, and less transactions that you have preauthorized and for which a merchant has requested a hold (typically these are transactions made with your debit card over the MasterCard network – without entering your “PIN.”). Your Available Balance is all of your deposits, less any holds on deposits per our Funds Availability Policy, less transactions paid, and less preauthorized holds. A temporary debit authorization hold affects your Available Balance - On debit card purchases, merchants may request a temporary hold on your account for a specified sum of money, which may be more or less than the actual amount of your purchase. When this happens, our processing system cannot determine that the amount of the hold exceeds or is less than the actual amount of your purchase. This temporary hold, and the amount charged to your account, will eventually be adjusted to the actual amount of your purchase, but it may be up to three days before the adjustment is made. Until the adjustment is made, the amount of funds in your Available Balance for other transactions will be reduced by the amount of the temporary hold. If another transaction (other than one made with your debit card) is presented for payment in an amount greater than the funds left after the deduction of the temporary hold amount your available balance, that transaction may be declined or returned pursuant to the descriptions below. For everyday (non-non- recurring) debit card and ATM transactions, you must opt-in to have us cover your overdrafts. If you do not opt-in, and a merchant asks us to authorize a transaction that exceeds your Available Balance, we will decline the transaction without assessing any fee. Other overdraft sources. In addition to the below overdraft program, the Bank offers customers a line of credit (if eligible) and a “draw account service,” which links your other eligible accounts to your checking account to avoid overdrafts. The cost for the line of credit is the applicable interest rate. And the cost of a transfer from another eligible account is $10.00 per transfer, regardless of if the transfer is enough to otherwise prevent an Insufficient Funds Charge. For additional terms and conditions, please see the Cash Reserve Agreement or the line of credit and please see the “Checking Account Disclosure” for additional terms for the draw account service.

Insufficient Funds and Overdrafts. Your We determine whether there are Sufficient Available Funds to pay for an Item using your Account’s Ledger Balance, minus any holds placed on your Account Balances - Your checking account has two balances that pursuant to the terms of this Agreement, including, but not limited to, Section 7.Z for suspected fraud or to comply with legal requirements and Section 8 for extended holds; or the BMO Digital Banking Agreement for deposits made using Mobile Deposit. This balance may not be the same as any other balance described in this Agreement, and an Item may result in an Overdraft or be returned unpaid regardless of your Account’s Ledger Balance or any other balance. We have no obligation to pay any Item unless you have Sufficient Available Funds in your Account when the Item is presented for payment. We will determine if you have Sufficient Available Funds to pay an Item when we process the Item presented for payment. We will determine whether you will be assessed have Sufficient Available Funds to pay an overdraft or a non-sufficient funds fee: Item only once each time the “Daily Collected Balance” and the “Available balance.” It is important to understand how the two balances are calculated and how they are used to know when you may be charged Insufficient Funds Charges. Your Daily Collected Balance is all of your deposits, less transactions paid, and less transactions that you have preauthorized and for which a merchant has requested a hold (typically these are transactions made with your debit card over the MasterCard network – without entering your “PIN.”). Your Available Balance is all of your deposits, less any holds on deposits per our Funds Availability Policy, less transactions paid, and less preauthorized holds. A temporary debit authorization hold affects your Available Balance - On debit card purchases, merchants may request a temporary hold on your account for a specified sum of money, which may be more or less than the actual amount of your purchase. When this happens, our processing system cannot determine that the amount of the hold exceeds or is less than the actual amount of your purchase. This temporary hold, and the amount charged to your account, will eventually be adjusted to the actual amount of your purchase, but it may be up to three days before the adjustment is made. Until the adjustment is made, the amount of funds in your Available Balance for other transactions will be reduced by the amount of the temporary hold. If another transaction (other than one made with your debit card) Item is presented for payment in an amount greater than the funds left after the deduction of the temporary hold amount your available balance, that transaction may be declined or returned pursuant to the descriptions below. For everyday (non-recurring) debit card and ATM transactions, you must opt-in to have us cover your overdraftsus. If you do not opt-in, and a merchant asks us have Sufficient Available Funds in your Account to authorize a transaction that exceeds your Available Balancepay an Item, we will decline determine, in our sole discretion, whether to pay the Item and create an Overdraft or return the Item unpaid. An Item returned unpaid may be re-presented for payment multiple times. We will determine, in our sole discretion, whether to pay or return the Item each time it is presented or re-presented to us for payment. We may determine if you have Sufficient Available Funds to authorize transactions, including but not limited to Card transactions, at the time of the authorization at the request of a merchant at POS or prior to receiving the Item for payment. Even if you had Sufficient Available Funds when the transaction without assessing any feewas authorized, this authorization does not mean you will have Sufficient Available Funds to pay that Item when it is presented for payment, which may be several days later. Other overdraft sources. In addition If you do not have Sufficient Available Funds in your Account to pay an Item, but we choose to pay it and create an Overdraft, you agree that we are permitted to charge you an Overdraft Fee, as allowed by Applicable Law and as set forth in the below overdraft program, the Bank offers customers a line of credit (if eligible) and a “draw account service,” which links your other eligible accounts to your checking account to avoid overdrafts. The cost for the line of credit is the applicable interest rate. And the cost of a transfer from another eligible account is $10.00 per transfer, regardless of if the transfer is enough to otherwise prevent an Insufficient Funds Charge. For additional terms and conditions, please see the Cash Reserve Agreement Deposit Account Disclosure or the line BMO Xxxxxx Bank Business Service Fee Schedule. We will not charge you an Overdraft Fee if: • The amount of credit and please the Item is less than or equal to $5; • Your Account is overdrawn by $50 or less at the close of the Business Day the Item is presented for payment; • Your Account is overdrawn by $50 or less at the close of the first Business Day after the Item is presented for payment. Deposits may not be available immediately. Please see the “Checking Account Disclosure” our Funds Availability Policy for additional terms Deposit Accounts in Section 8 below for the draw account service.more information;

Insufficient Funds and Overdrafts. Your We determine whether there are Sufficient Available Funds to pay for an Item using your Account’s Ledger Balance, minus any holds placed on your Account Balances - Your checking account has two balances that pursuant to the terms of this Agreement, including, but not limited to, Section 7.Z for suspected fraud or to comply with legal requirements and Section 8 for extended holds; or the BMO Digital Banking Agreement for deposits made using Mobile Deposit. This balance may not be the same as any other balance described in this Agreement, and an Item may result in an Overdraft or be returned unpaid regardless of your Account’s Ledger Balance or any other balance. We have no obligation to pay any Item unless you have Sufficient Available Funds in your Account when the Item is presented for payment. We will determine if you have Sufficient Available Funds to pay an Item when we process the Item presented for payment. We will determine whether you will be assessed have Sufficient Available Funds to pay an overdraft or a non-sufficient funds fee: Item only once each time the “Daily Collected Balance” and the “Available balance.” It is important to understand how the two balances are calculated and how they are used to know when you may be charged Insufficient Funds Charges. Your Daily Collected Balance is all of your deposits, less transactions paid, and less transactions that you have preauthorized and for which a merchant has requested a hold (typically these are transactions made with your debit card over the MasterCard network – without entering your “PIN.”). Your Available Balance is all of your deposits, less any holds on deposits per our Funds Availability Policy, less transactions paid, and less preauthorized holds. A temporary debit authorization hold affects your Available Balance - On debit card purchases, merchants may request a temporary hold on your account for a specified sum of money, which may be more or less than the actual amount of your purchase. When this happens, our processing system cannot determine that the amount of the hold exceeds or is less than the actual amount of your purchase. This temporary hold, and the amount charged to your account, will eventually be adjusted to the actual amount of your purchase, but it may be up to three days before the adjustment is made. Until the adjustment is made, the amount of funds in your Available Balance for other transactions will be reduced by the amount of the temporary hold. If another transaction (other than one made with your debit card) Item is presented for payment in an amount greater than the funds left after the deduction of the temporary hold amount your available balance, that transaction may be declined or returned pursuant to the descriptions below. For everyday (non-recurring) debit card and ATM transactions, you must opt-in to have us cover your overdraftsus. If you do not opt-in, and a merchant asks us have Sufficient Available Funds in your Account to authorize a transaction that exceeds your Available Balancepay an Item, we will decline determine, in our sole discretion, whether to pay the Item and create an Overdraft or return the Item unpaid. An Item returned unpaid may be re-presented for payment multiple times. We will determine, in our sole discretion, whether to pay or return the Item each time it is presented or re-presented to us for payment. We may determine if you have Sufficient Available Funds to authorize transactions, including but not limited to Card transactions, at the time of the authorization at the request of a merchant at POS or prior to receiving the Item for payment. Even if you had Sufficient Available Funds when the transaction without assessing any feewas authorized, this authorization does not mean you will have Sufficient Available Funds to pay that Item when it is presented for payment, which may be several days later. Other overdraft sources. In addition If you do not have Sufficient Available Funds in your Account to pay an Item, but we choose to pay it and create an Overdraft, you agree that we are permitted to charge you an Overdraft Fee, as allowed by Applicable Law and as set forth in the below overdraft program, the Bank offers customers a line of credit (if eligible) and a “draw account service,” which links your other eligible accounts to your checking account to avoid overdrafts. The cost for the line of credit is the applicable interest rate. And the cost of a transfer from another eligible account is $10.00 per transfer, regardless of if the transfer is enough to otherwise prevent an Insufficient Funds Charge. For additional terms and conditions, please see the Cash Reserve Agreement Deposit Account Disclosure or the line BMO Business Service Fee Schedule. We will not charge you an Overdraft Fee if: • The amount of credit and please the Item is less than or equal to $5; • Your Account is overdrawn by $50 or less at the close of the Business Day the Item is presented for payment; • Your Account is overdrawn by $50 or less at the close of the first Business Day after the Item is presented for payment. Deposits may not be available immediately. Please see the “Checking Account Disclosure” our Funds Availability Policy for additional terms Deposit Accounts in Section 8 below for the draw account service.more information;

Insufficient Funds and Overdrafts. Your Account Balances - Your checking account has two balances that determine whether you will be assessed an overdraft or a non-sufficient funds fee: the “Daily Collected Balance” and the “Available balance.” It is important to understand how the two balances are calculated and how they are used your responsibility to know when you may be charged Insufficient Funds Charges. Your Daily Collected Balance is all of your deposits, less transactions paid, and less transactions that you have preauthorized and for which a merchant has requested a hold (typically these if there are transactions made with your debit card over the MasterCard network – without entering your “PIN.”). Your Available Balance is all of your deposits, less any holds on deposits per our Funds Availability Policy, less transactions paid, and less preauthorized holds. A temporary debit authorization hold affects your Available Balance - On debit card purchases, merchants may request a temporary hold on your account for a specified sum of money, which may be more or less than the actual amount of your purchase. When this happens, our processing system cannot determine that the amount of the hold exceeds or is less than the actual amount of your purchase. This temporary hold, and the amount charged to your account, will eventually be adjusted to the actual amount of your purchase, but it may be up to three days before the adjustment is made. Until the adjustment is made, the amount of sufficient funds in your Available Balance for other transactions will be reduced by the amount of the temporary hold. If another transaction (other than one made account before you write a check, make a cash withdrawal at an ATM, make a purchase with your debit card) is presented , or issue, initiate or authorize any other item for payment in an amount greater than from your account. It is important that you carefully monitor the funds left after the deduction in your account, and promptly record in your account register all of the temporary hold amount your deposits to, and items that you issue, initiate or authorize for payment from, your account. You should never assume that you can make a covering deposit to your account before an item will be presented to us for payment because items are often presented to us for payment very quickly, and because funds from your covering deposit may not be immediately available balance, for withdrawal. You can avoid insufficient funds and overdraft charges by making sure that transaction may be declined or returned pursuant your account always contains sufficient funds to the descriptions below. For everyday (non-recurring) debit card cover all of your withdrawals and ATM payment transactions, you must opt-in to have us cover your overdrafts. If you do not opt-inuse an Overdraft Protection Service, then the actions that we are authorized to take in connection with an item presented to us for payment from your account and that would create an overdraft in your account if paid will depend upon the type of item, and those actions are as follows: If you are not covered by one of our Overdraft Protection Services described below, and you prefer that we authorize your “one- time” (“everyday”) debit card transactions for payment when your available balance is not sufficient to cover them, then you should consider our Debit Card Overdraft Authorization and Enrollment. 1. Debit Card Overdraft Authorization and Enrollment. With our Debit Card Overdraft Authorization and Enrollment: • If a merchant asks us “one-time” (“everyday”) debit card transaction overdraws your account, then the applicable overdraft charge described in our Schedule of Service Fees and Charges will be assessed and debited from your account. You must immediately pay the overdraft and the related overdraft charge, and return your account to authorize a positive balance. • There is no service fee to add our Debit Card Overdraft Authorization and Enrollment to your account, and there is no charge unless your debit card transaction overdraws your account. • There is no overdraft charge if your account were overdrawn during the day and you were to deposit or transfer sufficient available funds to your account to return it to a positive balance before the posted cut-off time on that business day. • Whether we will pay a “one-time” (“everyday”) debit card transaction that exceeds would create an overdraft in your Available Balanceaccount is completely discretionary on our part, and we reserve the right to not pay such item regardless of your enrollment in our Debit Card Overdraft Authorization and Enrollment. For example, we will decline the transaction without assessing any fee. Other likely would not pay an overdraft sources. In addition to the below overdraft programif your account were not in good standing, the Bank offers customers a line of credit (or if eligible) and a “draw account service,” which links your other eligible accounts to your checking account to avoid you have incurred excessive overdrafts. The cost • Our Debit Card Overdraft Authorization and Enrollment does not apply to checks and other items for the line of credit is the applicable interest ratepayment from your account, including transactions that you have established for recurring payment (such as utility bills or club memberships). And the cost of a transfer from another eligible We may continue to pay those items at our discretion and create overdrafts in your account is $10.00 per transfer, regardless of even if the transfer is enough to otherwise prevent an Insufficient Funds Charge. For additional terms you do not enroll in our Debit Card Overdraft Authorization and conditions, please see the Cash Reserve Agreement or the line of credit and please see the “Checking Account Disclosure” for additional terms for the draw account serviceEnrollment.

Insufficient Funds and Overdrafts. Your Account Balances - Your checking account has two balances that determine If a check, in-person withdrawal, or transaction made by other electronic means, including without limitation any debit card transaction, or ACH debit, whether initiated by you will be assessed an overdraft or a nonthird-party, hereafter referred to as an item, is drawn on this account and there are not sufficient funds in the account (your Available Balance) to pay the item, we may pay or refuse to pay the item and charge the Insufficient Funds fee: . If we pay a debit Point of Sale transaction which overdraws the account, we may charge the Overdraft fee – POS and deduct the overdraft from the next deposit or use any other collection remedy. If we pay an item which is presented against uncollected funds, we may charge the Uncollected Funds fee. More than one Insufficient Funds, Overdraft - POS, and/or Uncollected Funds fee (collectively, “Daily Collected BalanceFee” and the or “Available balance.” It is important to understand how the two balances are calculated and how they are used to know when you Fees”) may be charged Insufficient Funds Chargesagainst your account for each presentment of an item, without regard to whether the returned item was a re-presentment of a previously rejected request. Your Daily Collected Balance Merchants, payees, or other third-parties may present an item multiple times for payment if the initial or subsequent presentment(s) are rejected due to insufficient funds or other reason, which could result in multiple Fees being charged for an item. You agree that we may charge you a Fee each time an item is all of presented or re-presented if your deposits, less transactions paid, and less transactions that you have preauthorized and for which a merchant has requested a hold (typically these are transactions made with your debit card over the MasterCard network – without entering your “PIN.”). Your Available Balance is all not sufficient to cover the item, regardless of your depositsthe number of times the item is presented, less any holds on deposits per our Funds Availability Policy, less or re-presented. Transactions may not be processed in the order in which they occurred. The order in which transactions paid, are received and less preauthorized holds. A temporary debit authorization hold affects your Available Balance - On debit card purchases, merchants may request a temporary hold on your account for a specified sum of money, which may be more or less than processed by the actual amount of your purchase. When this happens, our processing system cannot determine that bank can affect the amount of the hold exceeds or is less than the actual amount of your purchasefees you may incur. This temporary hold, and the amount charged to your account, will eventually be adjusted to the actual amount of your purchase, but it Fees may be up to three days before the adjustment is madeimposed on both paper and electronic transfers. Until the adjustment is made, the amount of funds in your Available Balance for other transactions will be reduced by the amount of the temporary hold. If another transaction (other than one made with your debit card) is presented for payment in an amount greater than the funds left after the deduction of the temporary hold amount your available balance, that transaction may be declined or returned pursuant to the descriptions below. For everyday (non-recurring) debit card and ATM transactions, you must opt-in to have us cover your overdrafts. If you We do not opt-in, and a merchant asks us in any way obligate ourselves to authorize a transaction that exceeds your Available Balance, we will decline the transaction without assessing pay any fee. Other overdraft sources. In addition to the below overdraft program, the Bank offers customers a line of credit (if eligible) and a “draw account service,” item which links your other eligible accounts to your checking account to avoid overdrafts. The cost for the line of credit is the applicable interest rate. And the cost of a transfer from another eligible account is $10.00 per transferwould overdraw this account, regardless of the frequency with which we may do so as a matter of practice. You authorize us to obtain a credit bureau report on any accountholder in the event that it becomes necessary to collect overdrafts on your account. If we enlist the services of an attorney for collection purposes, we have the right to collect reasonable attorney's fees and court costs from you. As soon as you can, if you think your statement is wrong or if you need more information about a transfer listed on listed on the transfer is enough to otherwise prevent an Insufficient Funds Chargestatement. For additional terms and conditions, please see We must hear from you no later than 60 days after we sent the Cash Reserve Agreement FIRST statement on which the problem or the line of credit and please see the “Checking Account Disclosure” for additional terms for the draw account serviceerror appeared.