Common use of OVERDRAFT POLICY Clause in Contracts

OVERDRAFT POLICY. An insufficient balance could result in several ways. An overdraft fee occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. A non-sufficient funds (NSF) fee is charged when your account is overdrawn, the item is returned and is not paid. Your account has two types of balances: the “actual” balance and the “available” balance. Both can be checked when you review your account online or at a branch. It is important to understand how the two balances work so that you know how much money is in your account at any given time. Your actual balance is the amount of money that is actually in your account at any given time. It reflects transactions that have “posted” to your account, but not transactions that have been authorized and are pending. Any purchased, holds, fees, other charges, or deposits made on your account that have not yet posted will not appear in your actual balance. For example, if you have a $50 actual balance, but you just wrote a check for $40, then the actual balance does not reflect the pending check transaction. Your available balance is the amount of money in your account that is available to you to use without incurring an overdraft fee. When making a transaction at a branch, the actual balance (also called ledger balance) is listed on the receipt. The available balance takes into account things like holds placed on deposits and pending transactions (such as pending debit card purchases) that the Credit Union has authorized but that have not yet posted to your account. For example, assume you have an actual balance of $50 and an available balance of $50. if you were to use your debit card at a restaurant for $20, the that merchant could ask us to preauthorize the payment. In that case, we would put a “hold” on your account for $20. Your actual balance would still be $50 because the transaction has not yet posted, but your available balance would be $30 because you have committed to pay the restaurant $20. When the restaurant submits its bill for payment (which could be a few days later), we will post the transaction to your account and your actual balance will be reduced by $20. Available balance is used to determine when your account is overdrawn. The following example illustrates how this works: Again, assume your actual and available balances are both $50, and you swipe your debit card at a restaurant for $20. A hold is placed on your account, so your available balance is only $30. Your actual balance is still $50. Before the restaurant charge is sent to us for processing, a check that your wrote for $40 clears. Because you have only $30 available (you have committed to pay the restaurant $20), your account will be overdrawn by $10, even though your actual balance is still $50. In this case, we may pay the $40 check, but you will be charged an overdraft fee of $29. That fee will be deducted from your account, further reducing the balance. The best way to know how much money you have and avoid paying overdraft fees is to record and track all of your transactions closely as soon as you authorize them. An insufficient balance could result in several ways, such as, but not limited to, (a) the payment of checks, electronic funds transfer, or other withdrawal requests;

OVERDRAFT POLICY. An When an account has insufficient balance could result 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 waysways these transactions can be covered: 1. An 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 occurs when you do not have enough money in 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 a transactionthe 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, but in which we will strive to pay it anyway. A non-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 (NSFexcludes 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 particular account. The account criteria evaluated are: ▪ Age of Account ▪ Deposit Balances ▪ Deposit Regularity ▪ Previous Overdraft Activity ▪ Account Status relating to any legal or administrative order or levy ▪ Status of Loan Obligations with the institution We also offer Courtesy Plus Overdraft Protection, for which you must affirmatively consent, which extends this protective feature to your everyday debit and ATM transactions. If you choose to request this service, and there is not sufficient Available Balance or Adjusted Available Balance at the time a debit card transaction is authorized or an ATM transaction is executed, then we will strive to pay those everyday debit purchases and ATM transactions. You will be charged a fee as defined in our Fee Schedule for each posted transaction that overdraws your account. Even though we offer these overdraft protection programs, we are not obligated to pay any items, defined as checks, ATM withdrawals, Point of Sale (POS) or debit card transactions, preauthorized debits, or any other electronic transactions presented for payment, if the account does not contain sufficient Available Balance or Adjusted Available Balance at the time the transaction is authorized or posted. We may assess a fee is charged when your whether we choose to pay such a transaction or not, and we are not obligated to provide prior written notice of the decision to make or refuse payment. Should a payment transaction be posted in an amount exceeding the Available Balance or Adjusted Available Balance in the account is overdrawnat the time of posting, pursuant to this account agreement, the item account holder is returned immediately responsible for the amount of any overdraft and applicable fees. We will not assess more than six (6) NSF and/or courtesy overdraft fees in a calendar day, per checking share. It is not paidthe obligation of the account holder to keep the account in good standing with the Credit Union and to bring the account to a positive Actual Balance immediately should an overdraft situation occur that causes the Actual Balance to go negative, without notice or demand from us. Your checking account has two types three kinds of balances: the “actual” balance and the “available” balance. Both can be checked when you review your account online or at a branch. It is important to understand how the two balances work so that you know how much money is in your account at any given time. Your actual balance • Actual Balance is the full amount of money that is actually in your account at any given time. It reflects transactions that have “posted” all deposits to your account, but not without regard for any part of a check deposit that may be on hold until it clears, less payment transactions that have actually posted to your account. • Available Balance is the actual balance less holds on deposited funds and less debit card payment transactions that have been authorized and are pending. Any purchased, holds, fees, other charges, or deposits made on your account that by us but have not yet posted will not appear in to your account. • Adjusted Available Balance, used only for the purpose of evaluating the assessment of an overdraft fee at the time of posting of a signature based debit card transaction, is your actual balance. For example, if you have a $50 actual balance, but you just wrote a balance minus only check for $40, then the actual balance does not reflect the pending check transaction. Your available balance is the amount of money in your account that is available to you to use without incurring an overdraft fee. When making a transaction at a branch, the actual balance (also called ledger balance) is listed on the receipt. The available balance takes into account things like deposit holds placed on deposits and pending transactions or other general purpose holds (such as pending garnishments or levies). Pending signature based debit card purchasespayment transactions are not calculated as part of the Adjusted Available Balance. Debit card transactions are authorized based on Available Balance at the time of authorization. We use your Available Balance to determine whether sufficient funds are available when checks, ACH transactions, and POS debit card PIN transactions attempt to post to the account. Your Adjusted Available Balance is used when authorized signature based debit card transactions post to the account. Importantly, you may still overdraw your account even though the Available Balance appears to show there are sufficient funds to cover a transaction that you want to make. This may happen in many different scenarios: for example, because your Available Balance and Adjusted Available Balance do not reflect outstanding checks and automatic bill payments (or other outstanding transactions) that the Credit Union has you have authorized but that have not yet posted to your account, or because a later POS debit card PIN transaction or ATM transaction, which posts and withdraws money from your account immediately, draws your Available Balance and Adjusted Available Balance negative before outstanding POS signature based debit card transactions that were authorized positive actually post. For example, assume you have The following is an actual balance example of how fees are assessed on the account as it relates to Courtesy Overdraft Protection. Description Transaction Actual Balance Available Balance Adjusted Available Balance Day 1 Opening Balance $50 $50 $50 Restaurant Debit Card Authorization ($40) $50 $10 $50 Day 2 Check Posts <$30> $20 (-$20) $20 Overdraft Fee <$32> <$12> (-$52) (-$12) In the table above, we assume an account has $50 actual, available, and an adjusted available balance of $50balance. if If you were to use your debit card at a restaurant and sign for a $2040 transaction, the that merchant could ask us as opposed to preauthorize the payment. In that caseentering your PIN, we would put a “hold” on will reduce your account for Available Balance by $20. Your actual balance would 40, so you will have $10 of Available Balance, but your Actual Balance and your Adjusted Available Balance will still be $50 because the transaction has not yet posted, but your available balance would be 50. If a check for $30 because you have committed posts to pay the restaurant $20. When the restaurant submits its bill for payment (which could be a few days later), we will post the transaction to your account and your actual balance will be reduced by $20. Available balance is used to determine when your account is overdrawn. The following example illustrates how this works: Again, assume your actual and available balances are both $50, and you swipe your debit card at a restaurant for $20. A hold is placed on your account, so your available balance is only $30. Your actual balance is still $50. Before the restaurant charge is sent to us for processing, a check that your wrote for $40 clears. Because you have only $30 available (you have committed to pay the restaurant $20), your account will be overdrawn by $10, even though your actual balance is still $50. In this case, we may pay the $40 check, but then you will be charged an overdraft fee (provided you have Courtesy Overdraft Protection) because your Available Balance is only $10 and not enough to cover the check. If the debit card transaction posts later that day (provided you have opted-in to Courtesy Plus Overdraft Protection), you will be charged another overdraft fee because your Adjusted Available Balance is not enough to pay the debit card charge of $29. That fee will be deducted from 40 at the time it posted to your account, even though the Available Balance was sufficient to pay the charge at the time it was authorized. This is because the intervening check payment reduced your Adjusted Available Balance. Protection, then check, ACH, and bill pay transactions will be declined and returned unpaid, and you will still be charged an NSF fee. You further reducing agree that we may charge an NSF fee each time an item is presented for payment even if the balancesame item or transaction is presented for payment multiple times. The best way If you do not consent to know how much money you have or opt out of Courtesy Plus Overdraft Protection, then we will not authorize every day debit card transactions and avoid paying overdraft fees is to record ATM withdrawal, and track all of your the transactions closely as soon as you authorize them. An insufficient balance could result in several ways, such aswill be declined, but you will not limited to, (a) the payment of checks, electronic funds transfer, or other withdrawal requests;be charged any overdraft fees.

OVERDRAFT POLICY. An insufficient balance could result in several ways. An overdraft fee occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. A non-sufficient funds (NSF) fee is charged when your account is overdrawn, the item is returned and is not paid. Your account has two types of balances: the “actual” balance and the “available” balance. Both can be checked when you review your account online or at a branch. It is important to understand how the two balances work so that you know how much money is in your account at any given time. Your actual balance is the amount of money that is actually in your account at any given time. It reflects transactions that have “posted” to your account, but not transactions that have been authorized and are pending. Any purchased, holds, fees, other chargesothercharges, or deposits made on your account that have not yet posted will not appear in your actual balance. For example, if you have a $50 actual balance, but you just wrote a check for $40, then the actual balance does not reflect the pending check transaction. Your available balance is the amount of money in your account that is available to you to use without incurring an overdraft fee. When making a transaction at a branch, the actual balance (also called ledger balance) is listed on the receipt. The available balance takes into account things like holds placed thingslike holdsplaced on deposits and pending transactions (such as pending debit card purchases) that the Credit Union has authorized but that have not yet posted yetposted to your account. For example, assume you have an actual balance of $50 and an available balance of $50. if you were to use your debit card at a restaurant for $20, the that merchant could ask us to preauthorize the payment. In that case, we would put a “hold” on your account for $20. Your actual balance would still be actualbalancewouldstillbe $50 because the transaction 50becausethetransaction has not yet posted, but your available balance would be $30 because you have committed to pay the restaurant $20. When the restaurant submits its bill for payment (which could be a few days later), we will post the transaction to your account and your actual balance will be reduced by $20. Available balance is used to determine when your account is overdrawn. The following example illustrates how this works: Again, assume your actual and available balances are both $50, and you swipe your debit card at a restaurant for $20. A hold is placed on your account, so your available balance is only $30. Your actual balance is still $50. Before the restaurant charge is sent to us for processing, a check that your wrote for $40 clears. Because you have only $30 available (you have committed to pay the restaurant $20), your account will be overdrawn by $10, even though your actual balance is still $50. In this case, we may pay the $40 check, but you will be charged an overdraft fee of $29. That fee will be deducted from your account, further reducing the balance. The best way to know how much money you have and avoid paying overdraft fees is to record and track all of your transactions closely as soon as you authorize themyouauthorizethem. An insufficient balance could result in several ways, such as, but not limited to, (a) the payment of checks, electronic funds transfer, or other withdrawal requests;

OVERDRAFT POLICY. An insufficient balance could result in several ways. An overdraft fee occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. A non-sufficient funds (NSF) fee is charged when your account is overdrawn, the item is returned and is not paid. Your account has two types of balances: the “actual” balance and the “available” balance. Both can be checked when you review your account online or at a branch. It is important to understand how the two balances work so that you know how much money is in your account at any given time. Your actual balance is the amount of money that is actually in your account at any given time. It reflects transactions that have “posted” to your account, but not transactions that have been authorized and are pending. Any purchased, holds, fees, other charges, or deposits made on your account that have not yet posted will not appear in your actual balance. For example, if you have a $50 actual balance, but you just wrote a check for $40, then the actual balance does not reflect the pending check transaction. Your available balance is the amount of money in your account that is available to you to use without incurring an overdraft fee. When making a transaction at a branch, the actual balance (also called ledger balance) is listed on the receipt. The available balance takes into account things like holds placed on deposits and pending transactions (such as pending debit card purchases) that the Credit Union has authorized but that have not yet posted to your account. For example, assume you have an actual balance of $50 and an available balance of $50. if you were to use your debit card at a restaurant for $20, the that merchant could ask us to preauthorize the payment. In that case, we would put a “hold” on your account for $20. Your actual balance would still be $50 because the transaction has not yet posted, but your available balance would be $30 because you have committed to pay the restaurant $20. When the restaurant submits its bill xxxx for payment (which could be a few days later), we will post the transaction to your account and your actual balance will be reduced by $20. Available balance is used to determine when your account is overdrawn. The following example illustrates how this works: Again, assume your actual and available balances are both $50, and you swipe your debit card at a restaurant for $20. A hold is placed on your account, so your available balance is only $30. Your actual balance is still $50. Before the restaurant charge is sent to us for processing, a check that your wrote for $40 clears. Because you have only $30 available (you have committed to pay the restaurant $20), your account will be overdrawn by $10, even though your actual balance is still $50. In this case, we may pay the $40 check, but you will be charged an overdraft fee of $29. That fee will be deducted from your account, further reducing the balance. The best way to know how much money you have and avoid paying overdraft fees is to record and track all of your transactions closely as soon as you authorize them. An insufficient balance could result in several ways, such as, but not limited to, (a) the payment of checks, electronic funds transfer, or other withdrawal requests;