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Discretionary Overdraft Privilege Disclosure

First National Bank of Huntsville

Discretionary Overdraft Privilege Disclosure

 

It is the policy of First National Bank of Huntsville to comply with all applicable laws and regulations and to conduct business in accordance with applicable safety and soundness standards.

 

The Consumer Deposit Account Agreement provided to you at the time you opened your account with us controls the duties, obligations and rights of the Depositor,the Authorized Signatories and First National Bank of Huntsville with regard to your checking account. The Consumer Deposit Account Agreement (and all amendments thereto) and its terms shall control any possible conflict, if any, between any provision of this Discretionary Overdraft Privilege Disclosure and the Consumer Deposit Account Agreement. A copy of the Consumer Deposit Account Agreement is available to you on request from a lobby service representative at any of our locations.

 

The Overdraft Privilege is not a line of credit. However, if you inadvertently overdraw your account, we will have the discretion to pay the overdraft,subject to the limit of your Overdraft Privilege and the amount of the overdraft fee. First National Bank of Huntsville is not obligated to pay any item presented for payment if your account does not contain sufficient available funds. Any discretionary payment by First National Bank of Huntsville of an overdraft check (or item, such as an ATM withdrawal) does not obligate First National Bank of Huntsville to pay any other overdraft check (or item),or to provide prior notice of its decision to refuse to pay such check (or item).

 

Pursuant to First National Bank of Huntsville’s commitment to always provide you with the best level of service, now and in the future, if your consumer account(primarily used for personal and household purposes) is in good standing, which includes at least:

A)Bringing your account to a positive balance within every thirty (30) day period for a minimum period of 24 hours;

B)Not being in default on any loan or other obligation to First National Bank of Huntsville and

C)Not being subject to any legal or administrative order or levy

 

First National Bank of Huntsville will have the discretion to pay overdrafts within the Overdraft Privilege limits, but payment by First National Bank of Huntsville is a discretionary courtesy and not a right of the customer or an obligation of First National Bank of Huntsville. This privilege for consumer checking accounts will generally be limited to $300 to $750 overdraft(negative) balance depending on which account you have with us. Of course, any and all fees and charges, including without limitation the non-sufficient funds fees (as set forth in our fee schedules and consumer deposit account agreement), will be included as part of this maximum amount. It may be possible that your account will become overdrawn in excess of the Overdraft Privilege amount as a result of the assessment of a fee.

 

The total of the discretionary Overdraft Privilege (negative) balance, which includes any and all fees and charges, including all non- sufficient funds/overdraft fees is due and payable upon demand or no later than 60 days of overdraft, and Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all such amounts, as described in the Consumer Deposit Account Agreement. Our standard Overdraft fee of $28 will be imposed for overdrafts created by checks, ACH, ATM withdrawals, everyday debit card transactions, in-person withdrawals, or by other electronic means.Transactions will be processed in the order of smallest debits to largest debits and may not be processed in the order in which they occurred. The order in which transactions are received and processed may impact the total amount of fees incurred. The maximum amount of Overdraft or Return fees that will be charged to a customer’s account is $140 per day. We do not charge an Overdraft fee if a consumer account is overdrawn by less than $5. These limitations do not apply to business accounts.

 

While First National Bank of Huntsville will have the discretion to pay overdrafts on accounts in good standing (as described above), any such payment is a discretionary courtesy, and not a right of the customer or an obligation of First National Bank of Huntsville and First National Bank of Huntsville in its sole and absolute discretion, can cease paying overdrafts at any time without prior notice of reason or cause. If you do not maintain your account in good standing, the Overdraft Privilege limit will be reduced to $100 or removed.

 

For our consumer customers First National Bank of Huntsville will not pay overdrafts for ATM or everyday debit card transactions unless First National Bank of Huntsville has provided you with the notice required by regulation and you have opted in to the payment of these overdrafts. In order to avoid overdrafts due to ATM and everyday debit card transactions, First National Bank of Huntsville will place a hold on your account for any ATM or everyday debit card transaction authorized until the transaction settles. ATM and every day debit card transactions usually settle within two business days after the transaction is authorized. The amount of the hold will be for the amount authorized, or as permitted under applicable payment network rules. Holds on authorized ATM and everyday debit card transactions will be removed prior to settlement where required by applicable payment network rules.

 

In addition, you may opt out of the Overdraft Privilege services for check, ACH and debit card bill payment transactions at any time by contacting one of our Lobby Service Representatives.

 

October 1, 2012