POLICY

1)       It is the policy of Greater TEXAS Federal Credit Union (GTFCU) to comply with applicable laws and regulations, and to conduct business in accordance with applicable safety and soundness standards. The cap for the Overdraft Privilege Program (ODP) shall be 30% of the outstanding balances at any given time on the total share draft accounts (S8).

2)       A non-sufficient funds (negative) balance may result from:

a)       The payment of checks, electronic funds transfers, or other withdrawal requests;

b)       Payments authorized by the member;

c)       The return of unpaid items deposited by the member;

d)       Our Fees/Charges;

e)       The deposit of items which according to our Funds Availability Policy, are treated as not yet ‘available” or finally paid.

3)       The credit union is not obligated to pay any item presented for payment if the account does not contain sufficient collected funds. Rather than automatically returning, unpaid, any non-sufficient funds items, if the eligible account has been open at least thirty (30) days and thereafter maintained in good standing, which includes at least:

a)       Continuing to make minimum deposits of at least $300 per month to the share draft account.

b)       Not in default on any loan obligation to us.

c)       The account is brought to a positive balance (not overdrawn) at least once every thirty (30) days and remains positive for 24 hours through a business day.

4)      The account is not the subject of any legal or administrative order or levy, the credit union will consider; without obligation on our part, approving reasonable overdrafts; as a purely discretionary overdraft “privilege” or “courtesy”.

5)    All members with a personal (non-business) checking account must give consent on an appropriate Opt-In form before Debit/ATM Card overdrafts are approved through the ODP Program. Consent may be given by primary or joint members who are at least 18 years of age. GTFCU will confirm Opt-Ins in writing. At any time, members may revoke consent by notifying GTFCU. The credit union will be allowed no more than 3 business days to process a revocation request during which time Debit/ATM overdrafts through ODP will continue to be honored.

6)    GTFCU reserves the right to establish monetary limits based upon a clearly defined set of qualifying criteria for all Checking accounts. All fees and charges, including without limitation non-sufficient funds/overdraft fees $25.00 per item will be included in this limit and will apply to any transaction that may overdraw an account (see “ELIGIBLE ACCOUNT AND TRANSACTION TYPES”).

7)   The credit union may refuse to pay an overdraft at anytime, even if the account is in good standing and even though the credit union may have previously paid overdrafts. The member will be notified by mail of any non-sufficient funds items paid or returned that they may have; however, the credit union has no obligation to notify the member before we pay or return any item. The amount of any overdrafts plus our Non-Sufficient Funds and or Overdraft (NSF/OD) Charge(s) that is owed us shall be due and payable upon demand.

8)   If there is an overdraft paid by the credit union on an account with more than one (1) owner on the signature card, each owner, and agent if applicable, presenting the item creating the overdraft, shall be jointly and severally liable for such overdrafts plus our Non-Sufficient Funds and/or Overdraft (NSF/OD) Charge(s).

9)    The decision to pay an Non-Sufficient Funds (NSF) item or to return NSF items will not be made on a prohibited basis (e.g., race, color, national origin, sex, marital status, or age). The total dollar amount of all overdrafts the credit union will honor is $600 with an over limit of 120% or $750.00 (this includes all fees). These limits may be surpassed if prior approval was granted on a member debit card when funds were available and that approval is later collected against insufficient funds. If the account is not brought to a positive number within 45 days or a Fresh Start repayment Plan is not arranged by the 45^th day, the account will be charged off immediately.  The amount of loss will be charged to the Allowance Loan and Lease Losses (ALLL) and the amount of fees will be expensed back to the Overdraft Program to offset the fee income.  No interest rate will be charged on the Fresh Start Repayment Plan.

B. LIMITATIONS: Savings Type Accounts, Money Market Accounts, Public Fund / Charitable Organization Accounts, Student Minor Accounts, and Other Minor Accounts (not of legal age) and Pilot Accounts are not eligible. GTFCU may limit the number of accounts eligible for Overdraft Privilege Service to one account per household and/or one account per taxpayer ID.  Executive Management may make exception to this policy.

C. EXCLUSIONS: Member accounts that have caused the credit union to incur a loss, accounts with loans delinquent greater than 31 days to include credit cards, dormant accounts, new accounts less than 30 days and accounts with freezes, liens, levies and garnishments are not eligible for Overdraft Privilege. If the credit union receives a notice of an unpaid record from ChexSystems after an account has been opened, the credit union reserves the right to remove and deny ODP. Reinstatement of ODP will be optional at the discretion of the ODP Administrator.  A ChexSystems report showing no records owing will normally restore ODP to the member.

D. SERVICES:

a)       Eligible Account Types: The account types eligible for the Overdraft Privilege Service are Regular Checking and Business Checking.

b)       Eligible Transaction Types: Each check transaction/item initiated for payment against the checking account(s) may be processed by the credit union using the assigned Overdraft Privilege Service limit.  ACH, Electronic Items, ATMs, foreign ATMs / Debit Card / Check Card and Internet/Online transactions (bill payment) will be honored.

c)       Optional Overdraft Protection Services: The member may apply for overdraft protection from an established Line of Credit Loan Account and/or funds transfer from a designated asset account.

d)       Member Opt-Out: The member may choose at any time not to participate in the GTFCU Overdraft Privilege Service by completing the appropriate OPT-OUT form.