Overdraft Protection Agreement
The Overdraft Protection Agreement (“Agreement”) provides the terms and conditions for the American Bank Overdraft Protection Service (the “Service”) that you applied for to cover your checking or other account, as described herein (in each case, a “Protected Account”). In this Agreement, the terms “you” and “your” refer to each person applying for or using the Service; the terms “we”, “us”, “our” and “Bank” refer to American Bank.
You have designated certain account(s) as “Protecting Account(s)” for the purpose of adding the Service, and have authorized the Bank to apply the Service to your designated Protected Account. The Service does not involve any extension of credit by the Bank, unless the Protecting Account is a line of credit account established for you by the Bank pursuant to a line of credit agreement. The Bank shall not be obligated to transfer funds to the Protected Account from one or more Protecting Accounts if such a transfer will exceed the funds or credit available in the Protecting Account(s), as designated and determined by the Agreement(s) which govern(s) the Protecting Account(s).
When items drawn on the Protected Account are presented for payment that would cause a Protected Account to become “overdrawn” (as defined below), the Bank will automatically transfer funds or credit from a Protecting Account(s) in accordance with the following terms and conditions:
As used in this Agreement, the term “overdrawn” as it applies to a Protected Account means the following: If an item or items drawn on the Protected Account is presented for payment and you have at that time a numerically sufficient amount in your Protected Account to cover the presented items, but all or a portion of the Protected Account balance is made up of uncollected funds, (meaning deposited items for which the Bank has not yet received payment, or as to which a hold has been placed by the Bank), the Protected Account will not be considered “overdrawn”. As a result, although the Bank will not utilize uncollected funds to pay items presented for payment that are drawn on the Protected Account, the Protected Account will not be covered at that time under the Service. An “overdrawn” account only occurs when an item is presented for payment against the Protected Account and there is a numerically insufficient amount of funds in the Protected Account, regardless of whether some or all of the insufficient funds in the Protected Account are collected or uncollected. The Service will advance funds from the Protecting Account to the overdrawn Protected Account in such amount (with a $50 minimum) which, when added to the collected funds balance in the Protected Account, will pay all the items presented for payment.
The Bank will pay items drawn on a Protected Account, as items are presented to the Bank for payment. When multiple items are presented for payment on the same banking day, the Bank may pay these items in any order convenient to the Bank.
At such time or times that the Bank determines that the Protected Account is overdrawn, the Bank will transfer to the Protected Account, an amount of at least $50.00, and thereafter rounded to the next whole dollar amount, sufficient to pay all items creating the overdraft condition in the Protected Account together with any applicable fees, first from funds or credit available in the Protecting Account, and, if an overdraft still exists, from funds or credit in an additional Protecting Account. A fee will be assessed against the Protecting Account when funds are transferred to the Protected Account. Please refer to “Other Fees & Charges Disclosure” for additional information about applicable fees and charges.
If funds or credit are not available in the Protecting Account(s) to cover the full amount of the overdraft condition together with any applicable fees, the Bank will transfer all available funds or available credit, even if the available funds or available credit is less than $50.00, from the Protecting Account to the Protected Account.
You may from time to time contact the Bank to request a modification of this Agreement by adding or substituting a different account as the Protecting Account. The Bank reserves the right to accept such modification of this Agreement or to require that a new Agreement be executed.
You understand that if any Protecting Account is a line of credit, any transfers that are made from such an account for purposes of overdraft protection will be subject to the terms of the line of credit agreement, including all rules, fees and other disclosures made with the Agreement as well as any applicable fees set forth in the Bank’s consumer schedule of “Other Fees & Charges Disclosure”. Any items from the Protected Account which are returned will be subject to the Bank’s regular insufficient funds charge.
You understand that if any Protecting Account is a checking, savings or money market deposit account, any transfers that are made from such an account for purposes of overdraft protection will be subject to the applicable account agreements for checking, savings or money market account set forth in the Terms & Conditions of Your Deposit Account agreement and related account disclosures, as amended from time to time (the “Account Agreement”) including the “Other Fees & Charges Disclosure” & “Electronic Fund Transfers Disclosure” as applicable, together with any other disclosures provided in connection with the account.
Requests for transfers will be accepted only as specified in “Electronic Fund Transfers Disclosure”. You understand that a transfer made from any savings or money market account will count towards any applicable transaction limitations set forth in the Account Agreement including limitations on preauthorized transfers which are limited by federal regulations (to include telephone and automatic transfers) each calendar month. Any items from the Protected Account, which are returned, will be subject to the Bank’s regular insufficient funds charge.
By utilizing this Service you accept this Agreement and acknowledge receipt of the Account Agreement which includes the “Electronic Fund Transfers Disclosure” and acknowledge understanding of the contents therein. If you have any questions about these terms and disclosure statements, please call the Bank, Monday through Friday during regular business hours at 610.366.1800 or 888.366.6622.
This Agreement may be modified and/or terminated at any time by the Bank upon notice to you and you understand that it will terminate automatically without notice if all Protecting Accounts are closed.