Common use of Responsibility for Overdraft Clause in Contracts

Responsibility for Overdraft. If you obtain any electronic fund transfer service that results in a shortage in any account, the overdrawn amount is due and payable the moment you receive credit for the electronic fund transfer, and you agree to pay the full amount of it to us, together with an overdrawn account charge as set forth in the Rate and Fee Schedule. You also authorize us, in such a case, to apply from any other deposits you may have in the Credit Union any amount necessary to pay such overdraft and fees. If the overdraft is created in your Business Checking Account, (1) a transfer will be made from your other savings account(s) to cover the overdraft, in accordance with your checking account agreement with us, or (2) if you have an overdraft line of credit, an advance on your line of credit will be made to cover the overdraft, and you will pay that advance in accordance with the conditions of your line of credit plan, depending upon which form of overdraft protection you have selected. If there are not sufficient funds to make a transfer according to (1) or (2) of this paragraph, or if you have no overdraft protection for your Business Checking Account, then such overdraft will be paid to us as provided in the first sentence of this section.