Overdraft Privilege Service Description
It is First Federal Savings of Lorain's ("we, us, or our") policy to comply with applicable laws, rules and regulations, and to conduct business in accordance with strict safety and soundness standards.
A non-sufficient funds (overdraft/negative balance) may result from: A) The payment of checks, electronic funds transfers, or other withdrawal requests you initiate; B) Payments authorized by you; C) The return, unpaid, of items deposited by you; D) Charging your account for our applicable service charges and fees; E) The deposit of items to your account which, according to our Funds Availability Policy, are treated as not yet "available" or "finally paid".
We are not obligated to pay any item initiated for payment against your account if your account does not contain sufficient collected funds. Rather than automatically returning, unpaid, all non-sufficient funds items that you may have, if your "eligible account type" has been open for at least thirty (30) days and thereafter you maintain your account in good standing, which includes at least: (A) Continuing to make deposits consistent with your past practices, and depositing at least $400 or more in your account within the first 30 days your account has been opened, (B) You are not delinquent (60 days or more late) on any loan obligation to us, (C) We reserve the right to require you to pay your outstanding overdraft (negative) balance, including our fees, immediately or on demand., and (D) Your account is not the subject of any legal or administrative order or levy, such as bankruptcy or a tax lien, we will consider, without obligation on our part, approving your reasonable overdrafts up to your assigned OVERDRAFT PRIVILEGE Limit, including our fees.
This discretionary* service will generally be limited to a $800 overdraft (negative) balance for eligible personal checking account types; or a $1,500 overdraft (negative) balance for eligible business checking account types. Our normal fees and charges including, without limitation, our non-sufficient funds (NSF) or overdraft (OD) fees; currently $28.00 per non-sufficient funds or overdraft item, as set forth in our fee schedule, will be charged for each transaction initiated for payment from your checking account that does not have sufficient collected funds. Typically, we will charge our normal NSF/OD fee whether we approve an overdraft item for payment or return it unpaid. Our NSF/OD will be included in and count against OVERDRAFT PRIVILEGE Limit of $800, or $1,500. Whether your overdrafts will be paid or not is at our sole discretion and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing as described above, or if you have too many overdrafts.
We may refuse to pay an overdraft for you at any time, even though your account is in good standing and even though we may have previously paid overdrafts for you. You will be notified by mail of any non-sufficient funds items paid or returned that you may have; however, we have no obligation to notify you before we pay or return any item. The amount of any overdrafts including our fees that you owe us shall be due and payable immediately. If there is an overdraft paid by us on an account with more than one (1) owner on the signature card, each owner, and agent if applicable, drawing/presenting the item creating the overdraft, shall be jointly and severally liable for such overdrafts including our fees.
•Ineligible Accounts and Limitations: Available only for eligible checking accounts that are maintained in good standing as defined above. Savings Type Accounts, Money Market Accounts, Public Fund/Charitable Organization Accounts, Certain Trust Accounts, Student Minor Accounts, and any other Minor Accounts not of legal age are not eligible for this service. We may, in our sole option and discretion, limit the number of your accounts eligible for OVERDRAFT PRIVILEGE to one account per household and/or one account per taxpayer identification number.
• Eligible Account Types: The account types that are eligible for OVERDRAFT PRIVILEGE are: Personal/Regular Checking; Free Checking; Now Checking; and Business Checking.
•Transactions That May Cause or Create Overdrafts Using Your OVERDRAFT PRIVILEGE Limit: NSF transactions initiated for payment against your checking account may be paid by us using our assigned OVERDRAFT PRIVILEGE Limit, including our fees, Our NSF/OD fee may be imposed for paying, or not paying, overdrafts you create by: Checks; In person (teller) withdrawal; ATM withdrawal; or other electronic means.
•Posting Order: "Generally, we will post your (check) transactions in the order of your lowest numbered check to your highest numbered check" (commonly referred to as "Ascending Check Number Order" or "Sequence Number Order" or "Sequential Order" or "The Order in Which You Wrote Them").
•You May Always Opt-Out: You may choose at any time to not participate in OVERDRAFT PRIVILEGE by notifying one of our Service Representatives who will explain what this ("Opt Out") means, and the potential consequences, for you.