Overdraft Transactions Clause Samples

Overdraft Transactions. The Credit Union is under no obligation (unless it has contracted to the contrary) to pay a check you have written if it would result in your checking account being overdrawn. A check written against your Checking Account when sufficient available funds are not on deposit in the account, and contractual arrangements are (i) the amount of any holds in place with respect to deposited checks or other items (such as pre-authorization holds placed in connection with one-time debit transactions, which are discussed in more detail below); (ii) the amount in the account that is subject to any preauthorization requests related to the account that have been accepted by the Credit Union. Examples of preauthorization requests are holds related to purchase transactions where the final amount is initially unknown, such as gas station purchases, restaurant charges, and hotel or car reservations, but there are other types of preauthorization requests that could affect your account as well. (iii) amounts in the account that are subject to holds based on court, tax agency, or other governmental proceedings; and (iv) amounts that we believe are subject to a dispute over ownership or other rights. Note that the use of the Available Balance for these purposes may cause a fee related to an overdraft to be charged, a line of credit to be advanced, and/or a transfer from another account to be made, even though your periodic statement (which reflects the Ledger Balance) may not reflect any time when the balance would be negative. Whether the transaction is paid or returned, your account may be subject to a charge as set forth in the Fee Schedule. If the Credit Union pays the item, you will be assessed a Courtesy Pay or Overdraft Transfer Fee. If the Credit Union returns the item, you will be assessed an NSF Fee. Note that the Credit Union has no control over how many times an intended payee may resubmit the same check or other item to us for payment. In the event the same check or other item is presented for payment on more than one occasion, your account will be subject to an additional charge on each occasion that the item is presented for payment. There is no limit to the total fees the Credit Union may charge you for overdrawing your account. The Credit Union has the option of honoring an item or dishonoring it to avoid the creation of an overdraft. The honoring of past overdrafts/NSF items does not obligate the Credit Union to honor them in the future. Subject to applicable l...