AUTHORIZED OVERDRAFT Sample Clauses

AUTHORIZED OVERDRAFT. The member(s) may draw cheques or withdraw funds from the account type and sub numbers specified in this agreement with the credit union, so long as the debit balance does not exceed the authorized limit. The amount available under the Members Authorized Overdraft is determined at any time by deducting from the authorized limit of the member, the outstanding debit balance of the overdraft. The member agrees to pay interest to the Credit Union on all amounts advanced up to the authorized limit, as well after as before demand, default or judgment at a fixed rate of interest: at 21.00% per annum, or if an unauthorized overdraft (exceeding the authorized limit), at the prevailing rates under the Credit Union’s Overdraft Policy. All interest shall be calculated daily on the closing balance, not in advance, compounded monthly and payable on the last day of each and every month during which there are sums outstanding and owing hereunder, provided that in the event the member shall not pay the accrued interest as provided herein, then the Credit Union is hereby authorized and directed to advance such sums under the authorized limit as may be required to pay the interest and such advance shall be considered an advance or loan under the terms of this agreement and shall bear interest at the aforesaid rate from the date of such advance.