Share Draft Overdraft Plan Sample Clauses
The Share Draft Overdraft Plan is a provision that allows account holders to overdraw their checking (share draft) accounts up to a predetermined limit, typically as a form of short-term credit. When a transaction exceeds the available balance, the plan automatically covers the shortfall, often by transferring funds from a linked account or by extending a line of credit, sometimes with associated fees or interest. This clause helps prevent declined transactions and returned checks due to insufficient funds, providing account holders with added flexibility and protection against accidental overdrafts.
Share Draft Overdraft Plan. If we have approved an overdraft protection plan for you, we will honor drafts drawn on insufficient funds in your Share Draft Account by transferring the necessary funds from another account of yours to your Share Draft Account. We will transfer funds to your Share Draft Account from your Shares, alternate share or overdraft protection loan account, as you have directed, or as required under the Credit Union’s overdraft protection plan. The fee for overdraft transfers is set forth in the Rate and Fee Schedule. Transfers from an alternate share account will be governed by this Agreement. Transfers from a loan account will be governed by the applicable loan agreement.