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 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 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 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 account at the time the check or other item is presented, as opposed to using the “Actual Balance”. The Actual Balance is the account balance as shown on our books; the Available Balance is the Actual Balance reduced by:
Overdraft Transactions. When a transaction is presented against your Account, and your Account either already does not have sufficient funds or the transaction would cause your Account to not have sufficient funds, you may be charged an overdraft fee (see Fee Schedule) whether or not we honor the withdrawal request. You agree that we may use subsequent deposits, including direct deposits of Social Security or other government benefits, to cover such withdrawal requests and overdraft fees. The fact that we may honor withdrawal requests that overdraw the available Account balance does not obligate us to do so in the future.
Overdraft Transactions. When a transaction is presented against your account, and your account either already does not have sufficient funds or the transaction would cause your account to not have sufficient funds, and you have:
Overdraft Transactions. The Credit Union is under no obligation to pay a check you have written if it would result in this Business Checking Account being overdrawn (a check written against your Business Checking Account when insufficient available funds are on deposit in the account 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 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, (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. 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 advance or transfer from another account to be made, even though your periodic statement may not reflect any time when the balance (periodic statements use Ledger Balances) would be negative. Subject to applicable law, the Credit Union may post transactions (deposits and withdrawals) to your acc...
