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Overdraft Privilege Program

TEXAS STATE BANK

OVERDRAFT PRIVILEGE PROGRAM

A Discretionary Overdraft Service

TERMS AND CONDITIONS

 

It is the policy of Texas State Bank to comply with applicable laws and regulations, and to conduct business in accordance with safety and soundness standards.  A non-sufficient funds (negative) balance in your account may result from:

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

¨        Payments authorized by you;

¨        The return of unpaid items deposited by you;

¨        The imposition of service charges; or,

¨        The deposit of items which, according to the Bank’s Funds Availability Policy, are treated as not yet available or finally paid.

Overdraft Privilege Limits and Availability.  In connection with our Overdraft Privilege Program, if your account has been maintained in good standing (as defined below), we may assign a preauthorized overdraft limit to your account in the amount of $500.  The goal of providing Overdraft Privilege is to give you more protection if your account is inadvertently overdrawn.  Whenever the available balance on your account is insufficient to pay the checks or other items being presented on your account, and if you maintain your account in good standing, we will consider, as a discretionary courtesy and not as a right or obligation, paying the overdraft along with our Overdraft Charge of $24.50 per item, up to the preauthorized overdraft limit assigned to your account.   

For the purposes of determining whether to pay your overdrafts, good standing includes at least: 

¨        Continuing to make deposits consistent with past practices;

¨        You are not in default on any loan obligation to Texas State Bank;

¨        Your account has been consistently brought to a positive balance; and,

¨        There are no outstanding legal orders, such as levies or garnishments, in connection with your account.

In approving an overdraft or your preauthorized overdraft limit, we will also consider how you have managed your account; the average balance you maintain; and, the collectability of current and future overdrafts.  Overdraft Privilege will generally be limited to the overdraft limit assigned to your account.  Overdraft Privilege, as described herein, is available only to eligible personal checking accounts primarily used for personal and household purposes.  We may limit the number of accounts eligible for Overdraft Privileges to one account per household. 

Overdraft Privilege is our standard overdraft practice and is established as a courtesy to our customers, but we are not legally obligated by it.  We reserve the right to decline payment on any insufficient item presented on your account, without notice to you and without reason or cause.  We may refuse to pay an insufficient item for you at any time, even if we have paid insufficient items for you previously.  You will be notified by phone or mail if any insufficient item is paid or returned on your account; however, we have no obligation to notify you before we pay or return any item.

NSF Fees.  A per item fee of $24.50 will be charged for each NSF item presented on your account.  This amount will be charged whether the item is returned, overdrawn, or covered the next day (daylight  overdraft).  Fees for returned items and fees for overdrafts that are paid or covered will be separately designated on your account statements as follows:

¨        Fees for returned items will be designated as “Returned Item Charge”.

¨        Fees for overdrafts that are paid or covered will be designated as “Overdraft Charge”.

Of course, any and all fees and charges, including and without limitation our Returned Item Charges and Overdraft Charges, will be included in your overdraft limit.  The following example illustrates how our fees and payment policies apply:

Your account has a zero balance.  If you have an overdraft limit of $500 and three NSF checks, each in the amount of $160, are posted to your account, the third $160 check would not be payable within your overdraft limit.  The first two checks, totaling $320 and related Overdraft Charges of $49 ($24.50 per item) would result in an overdraft balance of $369.00.  Accordingly, the third $160 check would not be payable within your $500 overdraft limit and would be returned.  A Returned Item Charge ($24.50 per item) would be charged in connection with the returned check, resulting in a $393.50 overdraft balance in your account at the end of the day. 

In an effort to help you manage the fees charged to your account, we will limit the items for which you are charged to six (6) overdraft items per day with no limit on the number of returned check charges per day.  Additional items presented beyond the six for which you are charged will be paid or returned according to your overdraft limit.

Repayment of Overdrafts.  The amount of any overdraft plus any Overdraft Charge(s) and/or any Returned Item Charge(s) that you owe are due and payable immediately upon your receipt of notification that your account is in overdraft status.  If there is an insufficient item paid by us on an account with more than one owner on a signature card, each owner, and agent if applicable, drawing or presenting the item creating the overdraft shall be jointly and separately liable for such overdraft plus our NSF fees.  If you do not make a deposit to cover the overdraft balance and fees assessed against your account within 60 days from the date of the overdraft, your account will be closed and reported to the Credit Bureau and ChexSystems.

How We Help You Manage Overdrafts and Related Costs.  If you overdraw your account on more than six occasions where a fee is charged in a rolling twelve month period, we will follow up with you and provide information on alternatives to the Overdraft Privileges Program that may be better suited to your immediate need for short term credit.

¨        If an item is presented which results in an overdraft of less than $10, a fee will not be charged.

¨        At any time you may decline participation in our discretionary overdraft service by notifying us at any branch.

Periodic Statements.  All periodic statements sent to account holders after initial account opening will include: (i) separate disclosure of all Overdraft Charges and Returned Item Charges on an aggregate basis for the statement period; and (ii) the total amount of Overdraft Charges and Returned Item Charges for the calendar year to date.   

THIS DISCLOSURE IS INTENDED ONLY AS A STATEMENT OF OUR OVERDRAFT PRACTICES.  IT DOES NOT CONSTITUTE AN ACTUAL OR IMPLIED AGREEMENT BETWEEN YOU AND THE BANK, NOR DOES IT CONSTITUTE AN ACTUAL OR IMPLIED OBLIGATION OF OR BY THE BANK.  PAYMENT OF OVERDRAFTS IS A PURELY DISCRETIONARY COURTESY OR PRIVILEGE THAT WE MAY PROVIDE YOU FROM TIME TO TIME AND WHICH MAY BE WITHDRAWN OR WITHHELD AT ANY TIME WITHOUT PRIOR NOTICE, REASON, OR CAUSE.

To Opt Out please print the Overdraft Privilege Opt Out Form and return to any branch or email custserv@texasstatebank.net.

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