Common use of Payment of Overdrafts Clause in Contracts

Payment of Overdrafts. Maintaining an Available Balance It is your responsibility to make sure that your account contains sufficient available funds at the time you make a withdrawal or transfer, authorize a debit card purchase or other debit transaction of any kind. If you are uncertain of your available balance, please contact us, check your account balance at an ATM, access our Online Banking Service at xxx.XXXXxxx.xxx, or use our Mobile Banking App. If you do not have sufficient available funds on deposit in your account to cover a debit transaction, we may return the item unpaid or, in our discretion, authorize and pay the transaction creating an overdraft. Payments of Overdrafts We are not obligated to pay any item presented for payment against your account if your account does not have sufficient available funds. If we pay a transaction by overdrawing your account, we are not obligated to continue paying such transactions and creating or increasing overdrafts in the future. We may stop paying items which create overdrafts at once without notice to you. You are liable to us to repay immediately any overdrafts on your account whether you created them or not If you do not pay us, and we take collection action against you, you agree to pay for any costs of collection. We may terminate, without notice, any account with excessive insufficient funds activity, and report the account to a consumer-reporting agency. No Overdraft Fees There are no fees associated with each transaction that we either pay, which results in an overdraft, or do not pay (and return unpaid) which would have resulted in an overdraft had we paid it (usually due to insufficient or unavailable funds).

Payment of Overdrafts. Maintaining an Available Balance It is your responsibility to make sure that your account contains sufficient available funds at the time you make a withdrawal or transfer, authorize a debit card purchase or other debit transaction of any kind. If you are uncertain of your available balance, please contact us, check your account balance at an ATM, access our Online Banking Service at xxx.XXXXxxx.xxx, or use our Mobile Banking App. If you do not have sufficient available funds on deposit in your account to cover a debit transaction, we may return the item unpaid or, in our discretion, authorize and pay the transaction creating an overdraft. Payments of Overdrafts We are not obligated to pay any item presented for payment against your account if your account does not have sufficient available fundsfunds available. If we pay a transaction by overdrawing your account, we are not obligated to continue paying such transactions and creating or increasing overdrafts in the future. We may stop paying items which create overdrafts at once pay all, some, or none of your overdrafts, without notice to you. You are liable to us to repay immediately any overdrafts on your account whether you created them or not not. If you do not pay us, and we take collection action against you, you agree to pay for any costs of collection. We may terminate, without notice, any account with excessive insufficient funds activity, and report the account to a consumer-consumer reporting agency. No Overdraft Fees There are no fees associated with We may assess a fee for each transaction item that we either pay, which results in an overdraft, or do not pay (and return unpaid) pay, which would have resulted in an overdraft had we paid it it. If we pay an item in accordance with our Courtesy Pay Service (usually due described in more detail below), we will charge a Courtesy Pay Fee. If we return an item, we will charge a Non-sufficient Funds (NSF) Fee. Refer to insufficient or unavailable funds)the Schedule of Fees and Charges for a listing of fees. You can avoid fees for overdrafts and returned items by making sure that your account always contains sufficient available funds to cover all of your transactions. We offer services that you can use to help you manage your account and help you avoid overdrafts.

Payment of Overdrafts. Maintaining an Available Balance It is your responsibility to make sure that your account contains sufficient available funds at the time you make a withdrawal or transfer, authorize a debit card purchase or other debit transaction of any kind1. If you are uncertain of your available balance, please contact us, check your account balance at an ATM, access our Online Banking Service at xxx.XXXXxxx.xxx, or use our Mobile Banking App. If you do not have sufficient available funds on deposit in your account to cover a debit transaction, we may return the item unpaid or, in our discretion, authorize and pay the transaction creating an overdraft. Payments of Overdrafts We are not obligated to pay any item presented for payment against your account if your account does not have contain sufficient available funds. If we pay a transaction by overdrawing that overdraws your account, we are not obligated to continue paying such transactions and creating or increasing overdrafts in the future. We may stop paying items which create overdrafts at once pay all, some, or none of your overdrafts, without notice to you. You are liable to us to repay immediately any overdrafts on your account whether you created them or not not. You are responsible for ensuring that your account includes sufficient available funds to pay the transactions you initiate or authorize when they are processed for payment from your account, and you also acknowledge that the timing of when merchants or payees submit transactions to us for payment may vary. If you do not pay us, and we take collection action against you, you agree to pay for any our costs of collection. If your account does not have sufficient available funds when a transaction or item is presented to us for payment and, as a result, returned unpaid, the merchant or payee of your transaction or item may choose to resubmit the same transaction, and may do so multiple times; this may also occur when you initiate transfers and payments through your Credit Union Online Banking or Xxxx Payment Services and your account lacks sufficient available funds at the time the transaction is scheduled to occur, as we may decline the transaction, charge a fee, and then resubmit the same transaction at a later time in an attempt to process your requested transaction. In the event a transaction or item is resubmitted for payment at a time when your account lacks sufficient available funds to pay it and we decline it, we will charge a related NSF fee each time that same transaction is returned unpaid. We may terminateclose, without notice, any account with excessive insufficient funds activity, and report the account to a consumer-consumer reporting agency. No Overdraft Fees There are no fees associated with each transaction that we either pay, which results in an overdraft, or do not pay (and return unpaid) which would have resulted in an overdraft had we paid it (usually due to insufficient or unavailable funds).

Payment of Overdrafts. Maintaining an Available Balance It is your responsibility to make sure that your account contains sufficient available funds at the time you make a withdrawal or transfer, authorize a debit card purchase or other debit transaction of any kind. If you are uncertain of your available balance, please contact us, check your account balance at an ATM, access our Online Banking Service at xxx.XXXXxxx.xxx, or use our Mobile Banking App. If you do not have sufficient available funds on deposit in your account to cover a debit transaction, we may return the item unpaid or, in our discretion, authorize and pay the transaction creating an overdraft. Payments of Overdrafts We are not obligated to pay any item presented for payment against your account if your account does not have contain sufficient available funds. If we pay a transaction by overdrawing that overdraws your account, we are not obligated to continue paying such transactions and creating or increasing overdrafts in the future. We may stop paying items which create overdrafts at once pay all, some, or none of your overdrafts, without notice to you. You are liable to us to repay immediately any overdrafts on your account whether you created them or not not. If you do not pay us, and we take collection action against you, you agree to pay for any our costs of collection. We may terminateclose, without notice, any account with excessive insufficient funds activity, and report the account to a consumer-consumer reporting agency. No Overdraft Fees There are no fees associated with We may assess a fee for each transaction item that we either pay, which results in an overdraft, or do not pay (and return unpaid) pay, which would have resulted in an overdraft had we paid it. If we pay an item in accordance with our Courtesy Pay Service (described in more detail below), we will charge a Courtesy Pay Fee of $29. If we return an item, we will charge a Non-sufficient Funds (NSF) Fee of $29 each time the item is presented. Refer to the Fees brochure for a listing of fees, which is updated periodically. If your account does not have sufficient available funds when a transaction or item is presented to us for payment and, as a result, returned unpaid, the merchant or payee of your transaction or item may choose to resubmit the same transaction, and may do so multiple times[; this may also occur when you initiate transfers and payments through your Credit Union Online Banking or Xxxx Xxxxx services and your account lacks sufficient available funds at the time the transaction is scheduled to occur, as we may decline the transaction, charge a NSF Fee, and then resubmit the same transaction at a later time in an attempt to process your requested transaction]. In the event a transaction or item is resubmitted for payment at a time when your account lacks sufficient available funds to pay it (usually and we decline it, we will charge a related NSF Fee for each such resubmitted item each time that same transaction is returned unpaid or a Courtesy Pay Fee if a resubmitted item is paid when your account lacks sufficient available funds to pay it. We limit the number of NSF and Courtesy Pay Fees we charge in a business day. We will not charge a fee if your ending account balance is overdrawn by $5 or less. Additionally, even if your ending account balance is overdrawn we will not charge a fee for any item that is $5 or less. The maximum number of overdrafts due to insufficient or unavailable fundsfunds that will be subject to overdraft charges in one day is five (5).. We will charge an Extended Overdraft Fee for any overdraft balances that you have not repaid within fifteen (15) consecutive days. We recommend that you enroll in one of the optional overdraft protection plans described below. These plans can help you avoid overdrafts and returned items. While fees apply when you use an optional overdraft protection plan, the fees under the plan are less expensive than NSF and Courtesy Pay Fees. Refer to the “Optional Overdraft Protection Plans” section below for more information. YOUR CHECKING ACCOUNT BALANCE. Your checking account has two kinds of balances: the “actual” balance and the “available” balance. Both can be checked when you review your account online, at a Credit Union-owned ATM, by phone, 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. This section explains actual and available balances and how they work. Your actual balance is the amount of money that is actually in your account at any given time, but not all funds included in this balance are considered accessible for transactions on your account. The actual balance is also referred to as: (a) your “Account Balance” on Credit Union ATM screens; and (b) your “Balance” or “Account Balance” in online banking, and (c) your “Current” balance in mobile banking. Your actual balance reflects transactions that have posted to your account, but not transactions that have been authorized and are pending or pending deposits that are subject to holds under our Funds Availability Policy. While the term “actual” may sound as though the number you see is an up-to-date indication of what is in your account that you can spend, that is not always the case. Your actual balance will not reflect any purchases, holds, fees, other charges, or deposits made on your account that have not yet posted. For example, if you have a $50 actual balance, but you just wrote a check for $40, then your actual balance is $50 but it does not reflect the pending check transaction. So at that point, you have an actual balance of $50, but you have already spent $40. Your available balance is the amount of money in your account that is available to you to use without incurring an overdraft fee. The available balance takes into account factors such as 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 to buy lunch for $20, then that merchant could ask us to pre-authorize the payment in that amount (or even a different amount). Under this example, if the merchant requested pre-authorization in the amount of $20, we will place a “hold” on your account for $20 (referred to as an “authorization hold”). Your actual balance would still be $50 because this transaction has not yet posted, but your available balance would be $30 because of the restaurant’s pre-authorization request that resulted in an authorization hold on $20 in your account. When the restaurant submits its bill for payment (which could be a few days later and for a different amount than the amount of the authorization hold), we will release the authorization hold, post the transaction to your account and your actual balance will be reduced by the amount of the posted transaction. We use your available balance at the time a transaction posts to determine when your account is overdrawn. The following example illustrates how this works: Assume your actual and available balance are both $50, and you use your debit card at a restaurant for $20. If the restaurant requests pre- authorization in the amount of $20, an authorization hold is placed on $20 in your account, so your available balance is only $30. Your actual balance would remain $50. Before the restaurant charge is sent to us for payment, a check that you wrote for $40 clears. Because your available balance is only $30 (due to the authorization hold of $20), your account will be overdrawn by $10, even though your actual balance is $50. In this case, we may pay the $40 check, but you will be charged a Courtesy Pay Fee of $29. That fee will be deducted from your account, further increasing the overdrawn amount. In addition, when the restaurant charge is finally submitted to us for payment, we will release the authorization hold and pay the transaction amount (which may be $20 or even a different amount, for example, if you added a tip) to the restaurant. Because the amount of the restaurant charge exceeded your available balance at the time the restaurant charge “settled” (i.e., posted to your account), we will charge you a Courtesy Pay Fee, even though the restaurant transaction was authorized and approved with a sufficient available balance. Your account is considered overdrawn when the available balance in your account is negative (less than $0). YOU ACKNOWLEDGE THAT YOU MAY STILL OVERDRAW YOUR ACCOUNT EVEN THOUGH THE AVAILABLE BALANCE APPEARS TO SHOW THAT THERE ARE SUFFICIENT FUNDS TO COVER A TRANSACTION THAT YOU WANT TO MAKE. This is because your available balance may not reflect all your outstanding checks, automatic bill payments that you have authorized, or other outstanding transactions that have not yet been paid from your account. In the example above, the outstanding check will not be reflected in your available balance until it is presented to us and paid from your account. In addition, your available balance may not reflect all of your debit card transactions. For example, if a merchant obtains our prior authorization but does not submit a one-time debit card transaction for payment within three (3) business days of authorization (or for up to thirty (30) business days for certain types of debit card transactions, including but not limited to car rental transactions, cash transactions and international transactions), we must release the authorization hold on the transaction. The available balance will not reflect this transaction once the hold has been released, which generally occurs when the transaction has been received by us and paid from your account. Refer to the section entitled “Authorization Holds for Debit Card Transactions” below for information about how authorization holds affect your available balance. Finally, your available balance may not reflect the most recent deposits to your account. Refer to our Funds Availability Policy for information regarding the availability for withdrawal of your deposits. HOW TRANSACTIONS ARE POSTED TO YOUR ACCOUNT. There are basically two types of transactions in your account: credits or deposits of money into your account, and debits or payments out of your account. It is important to understand how each is applied to your account so that you know how much money you have and how much is available to you at any given time. This section explains generally how and when we post transactions to your account. We can receive credit and debit transactions in different forms at various times each business day. We reserve the right to determine the timing and order in which such transactions are posted to your account to the extent permitted by law. We determine the order in which we process and post credits and debits to your account based on a number of factors. We may pay or authorize some transactions, and decline or return others, in any order we deem appropriate to the extent permitted by law. When the available balance in your account is not sufficient to cover all of the transactions presented that day, some posting orders can result in more returned items and more overdraft and returned item fees than other posting orders. Some items are received by us individually and others are received in batches at various times each business day. Items that we currently receive individually include ATM withdrawals, point-of-sale (POS) transactions, and teller transactions. These individual items are generally posted to your account as they are received by us each business day. Items that we currently receive in batches include checks drawn on your account presented by other financial institutions, “on us” checks, and ACH transactions. Items within a batch presented at the same time on any given day are cleared in dollar amount order, lowest to highest amount, beginning with lower dollar amounts clearing first, followed by higher dollar amounts. We generally post batched transactions as they are received throughout each business day (subject to certain exceptions). For ACH batch transactions we receive at the same time on a particular business day, we will generally post credits first and the debit items in low-to-high dollar amounts. The order in which items are posted to your account will depend on a number of factors. For example, in connection with our item posting process, we reserve the right to: (i) establish different categories of items, (ii) establish a posting order for each category of item(s), (iii) establish different posting orders for items within each category, and

Payment of Overdrafts. Maintaining an Available Balance It is your responsibility to make sure that your account contains sufficient available funds at the time you make a withdrawal or transfer, authorize a debit card purchase or other debit transaction of any kind. If you are uncertain of your available balance, please contact us, check your account balance at an ATM, access our Online Banking Service at xxx.XXXXxxx.xxx, or use our Mobile Banking App. If you do not have sufficient available funds on deposit in your account to cover a debit transaction, we may return the item unpaid or, in our discretion, authorize and pay the transaction creating an overdraft. Payments of Overdrafts We are not obligated to pay any item presented for payment against your account if your account does not have contain sufficient available collected funds. If we pay a transaction by overdrawing that overdraws your account, we are not obligated to continue paying such transactions and creating or increasing overdrafts in the future. We may stop paying items which create overdrafts at once pay all, some, or none of your overdrafts, without notice to you. You are liable to us to repay immediately any overdrafts on your account whether you created them or not not. If you do not pay us, and we take collection action against you, you agree to pay for any our costs of collection. We may terminateclose, without notice, any account with excessive insufficient funds activity, and report the account to a consumer-consumer reporting agency. No Overdraft Fees There are no fees associated with We assess a fee for each transaction item that we either pay, which results in an overdraft, or do not pay (and return unpaid) pay, which would have resulted in an overdraft had we paid it it. If we pay an item in accordance with our Safety Net Service (usually described below), we will charge a Safety Net Fee of $25. If we return an item, we will charge a Non-sufficient Funds (NSF) Fee of $30. Refer to the Schedule of Fees and Charges for a listing of fees, which is updated periodically. We will only charge a Safety Net Fee for ATM transactions and non- repeating (“one-time”) debit card transactions if you have requested us to pay these transactions. We limit the number of NSF and Safety Net Fees we charge in a business day. We will not charge a Safety Net Fee if your ending account balance is overdrawn by $5 or less. Additionally, even if your ending account balance is overdrawn we will not charge an NSF or Safety Net Fee for any item that is $5 or less. The maximum number of overdrafts due to insufficient or unavailable fundsfunds that will be subject to overdraft charges in one day is 5. We recommend that you enroll in one of the optional overdraft protection plans described below. These plans can help you avoid overdrafts and returned items, and there are no fees for usage of these plans. Refer to the “Optional Overdraft Protection Services” section below for more information. YOUR CHECKING ACCOUNT BALANCE. Your checking account has two kinds of balances: the “actual” balance and the “available” balance. Both can be checked when you review your account online, through Mobile Banking, at a Credit Union-owned ATM, by phone, 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. This section explains actual and available balances and how they work. 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. While the term “actual” may sound as though the number you see is an up-to-date indication of what is in your account that you can spend, that is not always the case. Any purchases, 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 your actual balance is $50 but it does not reflect the pending check transaction. So at that point, you have an actual balance of $50, but you have already spent $40. Your available balance is the amount of money in your account that is available to you to use without incurring an overdraft fee. The available balance takes into account factors such as holds placed on deposits and pending transactions (such as pending debit card purchases) that you have made and 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 to buy lunch for $20, then that merchant could ask us to pre-authorize the payment in that amount (or even a different amount). In that case, we will place a “hold” on your account for $20. Your actual balance would still be $50 because this 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. We use your available balance to determine when your account is overdrawn. The following example illustrates how this works: Assume your actual and available balance are both $50, and you use your debit card at a restaurant for $20. A hold is placed on your account for $20, 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 you 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 $50. In this case, we may pay the $40 check, but you will be charged a Safety Net Fee of $25. That fee will be deducted from your account, further increasing the overdrawn amount. Your account is considered overdrawn when the available balance in your account is negative (less than $0). YOU ACKNOWLEDGE THAT 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 is because your available balance may not reflect all your outstanding checks, automatic bill payments that you have authorized, or other outstanding transactions that have not been paid from your account. In the example above, the outstanding check will not be reflected in your available balance until it is presented to us and paid from your account. In addition, your available balance may not reflect all of your debit card transactions. For example, if a merchant obtains our prior authorization but does not submit a one-time debit card transaction for payment within three (3) business days of authorization (or for up to thirty (30) business days for certain types of debit card transactions, including but not limited to car rental transactions, cash transactions and international transactions), we must release the authorization hold on the transaction. The available balance will not reflect this transaction once the hold has been released, which generally occurs when the transaction has been received by us and paid from your account. Refer to the section entitled “Authorization Holds for Debit Card Transactions” below for information about how authorization holds affect your available balance. Finally, your available balance may not reflect the most recent deposits to your account. Refer to the section of this Agreement entitled “Funds Availability Policy” for information regarding the availability for withdrawal of your deposits. HOW TRANSACTIONS ARE POSTED TO YOUR ACCOUNT. There are basically two types of transactions in your account: credits or deposits of money into your account, and debits or payments out of your account. It is important to understand how each is applied to your account so that you know how much money you have and how much is available to you at any given time. This section explains generally how and when we post transactions to your account.