Common use of Insufficient Funds and Overdrafts Clause in Contracts

Insufficient Funds and Overdrafts. We have no obligation to pay an Item unless you have Sufficient Available Funds in your Account when the Item is presented for payment against your Account. Items will be paid based on the order of posting identified in Section V.D below. If you do not have Sufficient Available Funds in your Account to pay an Item, we will attempt to reprocess the payment at the end of the Business Day. If you still do not have Sufficient Available Funds in your Account to pay the Item at the end of the Business Day the Item is presented, we will return the Item unpaid. If we are unable to return the Item, you will have an Overdraft on your Account. You agree to repay immediately the amount of any Overdraft. Failure to pay any such amounts in a timely manner may result in closure of your Account as provided in Section V.K below, reporting to credit bureaus, and referral to collection agencies. You authorize us to apply any deposit to your Account, including, for example, any federal or state benefit payments, against the amount of any Overdraft. You must change your direct deposit instructions by contacting the benefits payor if you do not want your federal and state benefits applied in this way. Please contact your benefits payor and follow its procedures to change your direct deposit instructions.