Overdrafts and Overdraft Transfer Clause Samples

Overdrafts and Overdraft Transfer. We pay checks and allow other transactions and withdrawals on your account based on the “Available Balance.” More information about the Available Balance is provided in this section. The availability of funds in your account may be delayed or reduced as provided in this Agreement, the Funds Availability Policy, the Electronic Fund Transfer Services Agreement and Disclosures, the Remote Deposit Agreement, and for other reasons such as legal holds. (a) What is an Overdraft? An overdraft occurs when a check, electronic Automated Clearing House (ACH), ATM or debit card, or other payment or transaction you have made is presented to the Credit Union for settlement, but the Available Balance in your checking or other applicable account is not sufficient to pay the transaction. In such a case, the payment item would normally be returned to the payee or denied for insufficient funds, and you may be charged a Rejected Item fee for each submission and resubmission of the item. With Overdraft Protection, however, the transaction can be paid using available funds from another deposit or loan account of yours or, if you have qualified, with our discretionary Overdraft Privilege Program. The Overdraft Privilege Program may not be available for some checking accounts. You may incur fees as set forth in our Fee Schedule for using the Overdraft Privilege Program, so you should always take care to avoid creating any overdraft. The following terms explain how our Overdraft Protection Program works: