Common use of Overdrafts and Declined or Returned Items Clause in Contracts

Overdrafts and Declined or Returned Items. When we determine you do not have enough available funds in your account to cover a check or other item, we consider the check or other item an insufficient funds item. If you have enrolled in one of the optional Overdraft Protection plans and have enough available funds in the linked account under the Overdraft Protection plan, we transfer funds to cover the item. Otherwise, without notice to you, we either authorize or pay the insufficient funds item and overdraw your account (an overdraft item) or we decline or return the insufficient funds item without payment (a returned item). We may pay overdrafts at our discretion, which means we do not guarantee that we will always, or ever, authorize and pay them. If we overdraw your account to pay items on one or more occasions, we are not obligated to continue paying future insufficient funds items. We may pay all, some, or none of your overdrafts, without notice to you. If we do not authorize to pay an overdraft, then we decline or return the transaction unpaid. The Schedule of Fees for your account explains when we charge you fees for overdrafts and for declined or returned items and the dollar amount of the fees. Please review the Account & Miscellaneous Schedule of Fees for your account carefully. If we overdraw your account, you agree to repay us immediately, without notice or demand from us. We ordinarily use deposits you or others make to your account to pay overdrafts, fees and other amounts you owe us. Impact of Holds Sometimes funds in your account are not available to cover your checks and other items. When we determine funds in your account are subject to a hold, dispute, or legal process, these funds are not available to cover your checks and other items. We usually make this determination once at the end of the day when we process items. As examples, holds include deposit holds, holds related to cash withdrawals, and authorization holds we place on the account for debit card transactions. We may also treat as an insufficient funds item each fee that creates an overdraft and each deposited item returned to us unpaid that creates an overdraft. For some organizational accounts, when your account is overdrawn, we may also charge you interest on the overdraft amount. Please see the Account & Miscellaneous Schedule of Fees for your account. Items Items include all orders and instructions for the payment, transfer, or withdrawal of funds from your account. As examples, item includes a check, draft, image, substitute check, every day non-recurring debit card transaction, recurring debit card transaction, ACH transaction, ATM transaction, preauthorized payment, automatic transfer, telephone-initiated transfer, Online/Mobile Banking transfer or bill payment instruction, withdrawal slip, and in-person payment, transfer or withdrawal instruction. For more examples, please review the definition of items in the Explanation of Some Terms section. What are everyday non-recurring debit card transactions and what are recurring debit card transactions? Every day non- recurring debit card transactions are usually purchases made with your debit card or debit card number on a one-time or day- to-day basis. For example you use your debit card for purchases of groceries, gas, or coffee. Recurring debit card transactions are usually transactions you set up to occur automatically, such as automatic bill payments. For example, you give merchants your debit card number to use for rent, mortgage, car, or utility payments. Posting Orders We determine the order in which we process and post deposits and other credits and checks and other items to your account. We may pay or authorize some items, and decline or return others, in any order we deem appropriate. When you do not have enough available funds to cover all of the items presented that day, some processing and posting orders can result in more insufficient funds items and more overdraft and returned item fees than other orders. We may choose our processing and posting orders regardless of whether additional fees result. Please see the Processing and Posting Orders section for more information.

Overdrafts and Declined or Returned Items. When we determine that you do not have enough available funds in your account to cover a check or other item, then we consider the check or other item an insufficient funds item. If you have enrolled in one of the optional Overdraft Protection plans and have enough available funds in the linked account under the Overdraft Protection plan, we transfer funds to cover the item. Otherwise, without notice to you, we either authorize or pay the insufficient funds item and overdraw your account (an overdraft item) or we decline or return the insufficient funds item without payment (a returned item). We may pay overdrafts at our discretion, which means we do not guarantee that we will always, or ever, authorize and pay them. If we overdraw your account to pay items on one or more occasions, we are not obligated to continue paying future insufficient funds items. We may pay all, some, or none of your overdrafts, without notice to you. If we do not authorize to and pay an overdraft, then we decline or return the transaction unpaid. The Schedule of Fees for your account explains when we charge you fees for overdrafts and for declined or returned items and the dollar amount of the fees. Please review the Account & Miscellaneous Schedule of Fees for your account carefully. If we overdraw your account, you agree to repay us immediately, without notice or demand from us. We ordinarily use deposits you or others make to your account to pay overdrafts, fees and other amounts you owe us. Impact of Holds Sometimes funds in your account are not available to cover your checks and other items. When we determine that funds in your account are subject to a hold, dispute, or legal process, then these funds are not available to cover your checks and other items. We usually make this determination once at the end of the day when we process items. As examplesexamples of holds, holds include deposit holds, holds related to cash withdrawals, and authorization holds we place on the account for debit card transactions. We may also treat as an insufficient funds item each fee that creates an overdraft and each deposited item returned to us unpaid that creates an overdraft. For some organizational accounts, when your account is overdrawn, we may also charge you interest on the overdraft amount. Please see the Account & Miscellaneous Schedule of Fees for your account. Items What are “items”? Items include all orders and instructions for the payment, transfer, or withdrawal of funds from your account. As examples, item includes a check, draft, image, substitute check, every day everyday non-recurring debit card transaction, recurring debit card transaction, ACH transaction, ATM transaction, preauthorized payment, automatic transfer, telephone-initiated transfer, Online/Mobile Banking transfer or bill payment instruction, withdrawal slip, and in-person payment, transfer or withdrawal instruction. For more examples, please review the definition of items in the Explanation of Some Terms section. What are everyday non-recurring debit card transactions and what are recurring debit card transactions? Every day Everyday non- recurring debit card transactions are usually purchases made with your debit card or debit card number on a one-time or day- day-to-day basis. For example As examples, you use your debit card for purchases of groceries, gas, or coffee. Recurring debit card transactions are usually transactions that you set up to occur automatically, such as automatic bill payments. For exampleAs examples, you give merchants your debit card number to use for rent, mortgage, car, or utility payments. Posting Orders We determine the order in which we process and post deposits and other credits and checks and other items to your account. We may pay or authorize some items, and decline or return others, in any order we deem appropriate. When you do not have enough available funds to cover all of the items presented that day, some processing and posting orders can result in more insufficient funds items and more overdraft and returned item fees than other orders. We may choose our processing and posting orders regardless of whether additional fees result. Please see the Processing and Posting Orders section for more information.

Overdrafts and Declined or Returned Items. When we determine FSB determines that you do not have enough available funds in your account to cover a check or other an item, we consider then FSB considers the check or other item an insufficient funds item. If you have enrolled in one of the an optional Overdraft Protection plans and have enough available funds in the linked account under the Overdraft Protection planprogram, we FSB will transfer funds to cover the itemitem when it is presented for payment. Otherwise, without notice to you, we FSB either authorize authorizes or pay pays the insufficient funds item and overdraw overdraws your account (an overdraft item) or we decline declines or return returns the insufficient funds item without payment (a returned item). We If a fee is charged to your account and creates an overdraft, or if a returned deposit item creates an overdraft, FSB may pay also treat those as insufficient funds items. FSB pays overdrafts at our in its sole discretion, which . This means we do that FSB does not guarantee that we it will always, or ever, authorize and pay themitems. If we overdraw FSB overdraws your account to pay items on one or more occasions, we are FSB is not obligated to continue paying future insufficient funds items. We FSB may pay all, some, or none of your overdrafts, without notice to you. If we do FSB does not authorize to and pay an overdraft, then we decline FSB declines or return returns the transaction unpaid. The Service Fee Schedule of Fees for your account explains when we charge FSB charges you fees for overdrafts and for declined or returned items and the dollar amount of the fees. Please You should review the Account & Miscellaneous Service Fee Schedule of Fees carefully. An item that has been returned and subsequently resubmitted for payment is considered a new item that may result in an additional fee each time the item is returned for non-sufficient funds. If FSB overdraws your account carefully. If we overdraw your accountto pay an insufficient funds item, you agree to repay us FSB immediately, without notice or demand from usFSB. We ordinarily FSB may use subsequent deposits you or others make credits to your account the account, including without limitation deposits of government, welfare, retirement, and Social Security benefits, to pay overdrafts, fees and other amounts any overdraft you owe usFSB, to the fullest extent permitted by law . You understand and agree that if you do not want such benefits applied in this way, you may change your direct deposit instructions to the benefits payor at any time. Each account holder is jointly and severally responsible for paying any overdrafts created by an authorized signer or party to the account, whether or not the account holder participates in the transaction or benefits from its proceeds. FSB may cover any overdraft by debit to any other checking, savings, or time deposit account of any account holder without notice to the account holder, but FSB is not obligated to do so. You agree to pay all costs and expenses, including attorney’s fees, that FSB incurs in the collection of any overdraft. Impact of Holds Sometimes funds in your account are not available to cover your checks and other items. When we determine FSB determines that funds in your account are subject to a hold, dispute, or legal process, then these funds are not available to cover your checks and other items. We FSB usually make makes this determination once at the end of the day when we process itemsitems are processed. As examplesexamples of holds, holds include deposit holds, holds related to cash withdrawals, and authorization holds we place placed on the account for debit card transactions. We Debit card transaction and related authorization holds may also treat impact your available balance. It is important to know that your available funds may change between the time you authorize a transaction and when the transaction is paid. When you use your debit card, you authorize the merchant with whom you use your card or to whom you previously provided your information to ask FSB to approve the transaction you want to make. At this time, in order for the transaction to go through, FSB must promise the merchant to pay for the purchase upon the merchant’s request. Currently FSB’s practice is to decline these transactions at the time the merchant requests authorization if there are not sufficient available funds in your account to pay for the transaction. IF FSB authorizes the transaction, a hold immediately reduces the amount of available funds in your account by the amount of the authorization request. If, while the hold is in place, you do not have enough available funds in your account to cover other transactions you may have conducted (such as an insufficient funds item each fee that creates a check you previously wrote), those items may overdraw your account or be returned unpaid. This may result in an overdraft and each deposited item returned fee charged to us unpaid that creates an overdraft. For some organizational accounts, when your account is overdrawn, we may also charge you interest on the overdraft amount. Please see the Account & Miscellaneous Schedule of Fees for your account. Items In most cases the hold on the debit card transaction amount expires when the transaction is paid. The amount being held is not applied to the debit card transactions or to any specific transaction. If the hold expires and the transaction has not been paid, the amount being held is returned to your available funds. After the hold expires, FSB will determine whether you have sufficient funds available to pay the debit card transaction. If you do not have sufficient funds, the debit card transaction will cause an overdraft in your account and, if it is a recurring transaction, may incur an overdraft fee. This can occur even if your account did have sufficient available funds when the merchant requested authorization for the transaction. Your debit card transaction is paid when the merchant presents it to FSB for payment – that is, when the merchant asks FSB to transfer the funds from your account to the merchant. It is important to note that authorization and payment of debit card transactions do not occur simultaneously – there can be days between. If other account activity has caused the funds available in your account to drop below zero before the debit card transaction is paid, you may no longer have sufficient funds to pay the merchant. If that occurs, the debit card transaction will overdraw your account because FSB must honor the promise to pay the merchant. You may incur an overdraft fee when this happens. What are items? Items include all orders and instructions for the payment, transfer, or withdrawal of funds from your account. As examples, item includes a check, draft, image, substitute check, every day everyday non-recurring debit card transaction, recurring debit card transaction, ACH transaction, ATM transaction, preauthorized payment, automatic transfer, telephone-initiated transfer, Online/Mobile Banking online funds transfer or bill payment instructiontransaction, withdrawal slip, and in-person payment, transfer or withdrawal instruction. For more examples, please review see the definition of items in the Explanation of Some Terms sectionGlossary. A previously presented debit or withdrawal is a new item if presented for payment again and therefore may be subject to additional fees as a new item. What are everyday non-recurring debit card transactions and what are recurring debit card transactions? Every day non- Everyday non-recurring (one-time) debit card transactions are usually purchases made with your debit card or debit card number on a one-time or day- day-to-day basis. For example As examples, you use your debit card for purchases of groceries, gas, or coffeemeals. Recurring debit card transactions are usually transactions that you set up to occur automatically, such as automatic bill payments. For example, you give merchants your debit card number FSB relies on the merchant processing the transaction to use for rent, mortgage, car, determine if it is a recurring transaction or utility payments. Posting Orders We determine the order in which we process and post deposits and other credits and checks and other items to your account. We may pay or authorize some items, and decline or return others, in any order we deem appropriate. When you do not have enough available funds to cover all of the items presented that day, some processing and posting orders can result in more insufficient funds items and more overdraft and returned item fees than other orders. We may choose our processing and posting orders regardless of whether additional fees result. Please see the Processing and Posting Orders section for more informationan everyday non- recurring transaction.

Overdrafts and Declined or Returned Items. When we determine you do not have enough available funds in your account to cover a check or other item, we consider the check or other item an insufficient funds item. If you have enrolled in one of the optional Overdraft Protection plans and have enough available funds in the linked account under the Overdraft Protection plan, we transfer funds to cover the item. Otherwise, without notice to you, we either authorize or pay the insufficient funds item and overdraw your account (an overdraft item) or we decline or return the insufficient funds item without payment (a returned item). We may pay overdrafts at our discretion, which means we do not guarantee that we will always, or ever, authorize and pay them. If we overdraw your account to pay items on one or more occasions, we are not obligated to continue paying future insufficient funds items. We may pay all, some, or none of your overdrafts, without notice to you. If we do not authorize to pay an overdraft, then we decline or return the transaction unpaid. The Schedule of Fees for your account explains when we charge you fees for overdrafts and for declined or returned items and the dollar amount of the fees. Please review the Account & Miscellaneous Schedule of Fees for your account carefully. If we overdraw your account, you agree to repay us immediately, without notice or demand from us. We ordinarily use deposits you or others make to your account to pay overdrafts, fees and other amounts you owe us. Impact of Holds Sometimes funds in your account are not available to cover your checks and other items. When we determine funds in your account are subject to a hold, dispute, or legal process, these funds are not available to cover your checks and other items. We usually make this determination once at the end of the day when we process items. As examples, holds include deposit holds, holds related to cash withdrawals, and authorization holds we place on the account for debit card transactions. We may also treat as an insufficient funds item each fee that creates an overdraft and each deposited item returned to us unpaid that creates an overdraft. For some organizational accounts, when your account is overdrawn, we may also charge you interest on the overdraft amount. Please see the Account & Miscellaneous Schedule of Fees for your account. Items Items include all orders and instructions for the payment, transfer, or withdrawal of funds from your account. As examples, item includes a check, draft, image, substitute check, every day non-everyday non- recurring debit card transaction, recurring debit card transaction, ACH transaction, ATM transaction, preauthorized payment, automatic transfer, telephone-initiated transfer, Online/Mobile Banking transfer or bill payment instruction, withdrawal slip, and in-person payment, transfer or withdrawal instruction. For more examples, please review the definition of items in the Explanation of Some Terms section. What are everyday non-recurring debit card transactions and what are recurring debit card transactions? Every day non- recurring debit card transactions are usually purchases made with your debit card or debit card number on a one-time or day- day-to-day basis. For example Example: you use your debit card for purchases of groceries, gas, or coffee. Recurring debit card transactions are usually transactions you set up to occur automatically, such as automatic bill payments. For example, Example: you give merchants your debit card number to use for rent, mortgage, car, or utility payments. Posting Orders We determine the order in which we process and post deposits and other credits and checks and other items to your account. We may pay or authorize some items, and decline or return others, in any order we deem appropriate. When you do not have enough available funds to cover all of the items presented that day, some processing and posting orders can result in more insufficient funds items and more overdraft and returned item fees than other orders. We may choose our processing and posting orders regardless of whether additional fees result. Please see the Processing and Posting Orders section for more information.