Common use of Overdrafts and Overdraft Transfer Clause in Contracts

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:

Overdrafts and Overdraft Transfer. You agree to maintain sufficient available funds in your accounts at all times to pay any withdrawal order (whether oral, written, or otherwise) or item presented for payment against the applicable account. We are under no obligation to pay checks any order or item (i) the amount of which exceeds the available balance in the account upon which the order was made or the item was drawn, or (ii) that would exceed limitations imposed upon the applicable account under our policies and allow other transactions and withdrawals on procedures or under applicable law, including Federal Reserve Board Regulation D. In the event that we do pay any such order or item, we will not waive our right to dishonor any subsequent orders or items presented. If we do pay an order or item, the amount of which exceeds the available balance in the account upon which it is drawn, or if any item deposited to your account is subsequently returned and charged back to your account creating an overdraft, you agree to pay us immediately the amount by which that account is overdrawn together with any fees that we might assess. You also authorize us to deduct any overdraft from your next deposit (including a direct deposit of social security or other government benefits), to withhold or to transfer funds from any other account to which you are a Party in amounts sufficient to cover any overdraft and resulting overdraft fees, or to use any other collection remedy available to us by law. We determine whether your account is overdrawn based on the “Available Balance.available balance” More information about of the Available Balance is provided in this sectionaccount at the time transactions are presented for payment. The availability of available balance may be different than the actual account balance because it considers funds subject to a hold in your account account. Funds subject to a hold are not available to pay checks, Visa® Debit Card, electronic ACH, and other types of transactions presented for payment. Holds may be delayed or reduced placed on your account funds for various reasons, such as provided in this Agreement, the a check deposit holds pursuant to our Funds Availability Policy, pre-authorization holds placed by merchants for signature-based Visa® Debit Card transactions, and legal holds. Please refer to the Electronic Fund Transfer Services Transfers Agreement and Disclosures, the Remote Deposit Agreement, and Disclosures for other reasons such as legal more information about Visa® Debit Card pre-authorization holds. (a) What is an Overdraft? An . You may incur 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 return fees if your checking or other applicable account available balance is not sufficient to pay transactions when they are presented. To avoid fees, you must closely monitor your transactions and maintain sufficient available funds to pay your transactions when presented. You may monitor your available balance through the transactionOnline Banking, Mobile Banking, and ▇.▇.▇. audio response systems, and at most ATMs using your Visa® Debit Card. You must be enrolled in each of the electronic fund transfer services in order to use those services. In the event that you write a check or take any other action that would result in an account becoming overdrawn, and if you have requested and been approved for the Overdraft Transfer service, such check or action taken shall be deemed to be a caserequest by you to us to transfer available funds from your designated account (subject to transaction limitations) or to make an advance under your line of credit with us, in increments that we deem sufficient to pay such check or otherwise remedy the payment overdraft, together with any service charge we may impose. We will use our best efforts to transfer funds from your designated account to your checking account, or to make an advance under your true line of credit with us, in the manner in which you have directed in your Application. A fee may be charged for overdraft protection as set forth in the Fee Schedule. If sufficient funds are not available, then any such item would normally presented may be returned to the payee due to insufficient funds and a charge will be made to your account in such amounts as we may establish from time to time. Each Party to any of your accounts will be jointly and severally liable for overdrafts caused by any other Party to the account. In the event the Credit Union reasonably believes that the use of your account(s) is abusive due to excessive checks or denied for transactions presented on insufficient funds, and you excessive activity, or otherwise, we may limit or terminate certain services or your account 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:closed.