Common use of OVERDRAFT PROTECTION PROGRAM Clause in Contracts

OVERDRAFT PROTECTION PROGRAM. (1) Within sixty (60) days, the Board shall adopt, implement, and thereafter ensure Association adherence to a Checking Overdraft Policy reflecting the aggregate limits detailed in the Office of Thrift Supervision Guidance on Overdraft Protection Programs, 70 FR 8428 (February 18, 2005). The Policy shall include, at a minimum: (a) conditions and circumstances under which overdrafts are allowable, including standards, dollar threshold limits for overdraft approvals and specific overdraft lending authority limits; (b) charges that will be levied against depositors using overdrafts; (c) controls to ensure that employee overdrafts are treated consistent with account agreements; (d) a prohibition on the use of overdrafts by Association borrowers to finance their business activities; and (e) clear guidelines governing the charge-off of past-due overdrafts. (2) Upon adoption, the Association shall forward a copy of this overdraft policy to the Assistant Deputy Comptroller. (3) The Board shall ensure that the Association has processes, personnel and control systems to ensure implementation of and adherence to the policy developed pursuant to this Article.