Exchange Bank and Trust Company
Discretionary Overdraft Privilege Policy
It is the policy of Exchange Bank and Trust to comply with all applicable laws and regulations and
to conduct business in accordance with applicable safety and soundness standards.
The Deposit Account Agreement and Disclosure 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
Exchange Bank and Trust with regard to your checking account. The 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 Policy and the Deposit Account Agreement and Disclosure. A
copy of the Deposit Account Agreement and Disclosure is available to you on request from your Exchange
Bank and Trust officer.
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. Exchange Bank and Trust is not obligated to pay any item presented
for payment if your account does not contain sufficient available funds. Any discretionary payment by
Exchange Bank and Trust of an overdraft check (or item, such as an ATM withdrawal) does not obligate
Exchange Bank and Trust 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 Exchange Bank and Trust’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) has
been open for at least thirty (30) days, or if your commercial account has been open for at least sixty
(60) days, and thereafter you maintain your account in good standing, which includes at least:
- Bringing your account to a positive balance within thirty (30) day period of a minimum period
of 24 hours;
- Not being in default on any loan or other obligation to Exchange Bank and Trust and
- Not being subject to any legal or administrative order or levy,
Exchange Bank and Trust will have the discretion to pay overdrafts within the Overdraft privilege limits,
but payment by Exchange Bank and Trust is a discretionary courtesy and not a right of the customer or an
obligation of Exchange Bank and Trust. This privilege for consumer checking accounts will generally be
limited to a maximum of $700 overdraft (negative) balance. This Privilege for commercial accounts will
generally be limited to a maximum of $1,500 overdraft (negative) balance. Of course, any and all fees and
charges, including without limitation the non-sufficient funds fees (as set forth in our fee schedules and
deposit account agreement and disclosure), 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, and Depositor
and each Authorized Signatory will continue to liable, jointly and severally, for all such amounts, as
described in the Deposit Account Agreement and Disclosure. Our standard Overdraft fee of $24.98 will be
imposed for overdrafts created by checks, ACH, ATM withdrawals, everyday debit card transactions, in-person
withdrawals, or by other electronic means. If your account balance remains overdrawn for more than 1 day,
we will charge your account a daily overdraft fee of $3.45 for each of the consecutive business days the
account remains overdrawn, beginning with day 2. Transactions may not be processed in order in which they
occurred, and the order in which transactions are received and processed may impact the total amount of
fees incurred.
While Exchange Bank and Trust 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 Exchange Bank and Trust and Exchange Bank and Trust in its sole and absolute discretion, can
cease paying overdrafts at any time without prior notice of reason or cause.
For our consumer customers Exchange Bank and Trust will not pay overdrafts for ATM or everyday debit
card transactions after August 15, 2010 unless Exchange Bank and Trust has provided you with the notice
required by section 205.17(B) of Regulation E and you have opted in to the payment of these overdrafts.
In order to avoid overdrafts for ATM or everyday debit card, Exchange Bank and Trust will place a hold
on your account for any ATM or everyday debit card transaction authorized until the transaction settles.
ATM and everyday 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, for both consumer and commercial accounts, 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
Account Services Representatives.
