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Overdraft Privilege Policy


(A Discretionary Overdraft Service)

It is the policy of Citizens National Bank (“the Bank, we, us or our”) to comply with applicable laws, rules, and regulations, and to conduct business in accordance with strict safety and soundness standards.

A non-sufficient funds (overdraft/negative) balance may result from: A) The payment of checks, electronic funds transfers, or other withdrawal requests you initiate; B) Payments authorized by you; C) The return, unpaid, of items deposited by you; D) Charging your account for our applicable service charges and fees; or E) The deposit of items to your account which, according to the Bank’s Funds Availability Policy, are treated as not yet “available” or finally paid. We are not obligated to pay any item initiated for payment against your account if your account does not contain sufficient collected funds.

Rather than automatically returning, unpaid, any non-sufficient funds items that you may have, if your “eligible account type” has been open for at least thirty (30) days and thereafter you maintain your account in good standing, which includes at least: A) Continuing to make deposits consistent with your past practices, and depositing at least $400 or more in your account within each thirty (30) day period, B) You are not in default on any loan obligation to the Bank, C) You bring your account to a positive balance (not overdrawn) immediately or as soon as possible and at least once every thirty (30) days. You have no legal right to defer payment of your outstanding overdrafts including our fees, and D) Your account is not the subject of any legal or administrative order or levy, such as bankruptcy or a tax lien, we will consider, without obligation on our part, approving your reasonable overdrafts up to your assigned ODP limit. This discretionary* service will generally be limited to an overdraft (negative) balance as follows:

$400 overdraft (negative) balance for Free, Classic, Classic Interest, Go Anywhere and Select checking accounts; or
$700 overdraft (negative) balance for Advantage, Performance, Elite and Optima checking accounts.

Our normal fees and charges will be included in these limits and will be charged for each transaction presented for payment against non-sufficient funds. We will charge our normal fee whether we approve the item for payment or not. These fees include the following:

"Overdraft Fee - Returned Item":$35.00 per item* up to $140.00 per day
"Overdraft Fee - Paid Item":$35.00 per item* up to $140.00 per day
"Uncollected Funds - Return Fee":$35.00 per item* up to $140.00 per day
"Continuous Overdraft Charge":$5.00 each business day, beginning with the 7th consecutive day account is overdrawn.
"Returned Deposit/Cashed Check"$10.00 per item
"Overdraft Protection Transfer Charge":$8.00

*Fee applies to overdrafts created by check, in-person withdrawal, ATM withdrawal, or other electronic means.

We may refuse to pay an overdraft for you at any time, even though your account is in good standing and even though we may have previously paid overdrafts for you. You will be notified by mail (or email if you choose) of any non-sufficient funds items paid or returned that you may have; however, we have no obligation to notify you before we pay or return any item. The amount of any overdrafts including our fees that you owe us shall be due and payable immediately. If there is an overdraft paid by us on an account with more than one (1) owner on the account agreement, each owner, and agent if applicable, drawing/presenting the item creating the overdraft, shall be jointly and severally liable for such overdrafts including our fees.

Optional Overdraft Protection Services: Depending on the type of checking account, we offer additional overdraft protection services that you may apply for. These include a line-of-credit or transfer from another account of yours with us. If you apply and are qualified for these optional services, you may save money on the total fees you pay us for overdraft protection services.

Ineligible Accounts and Limitations: ODP Service is available only for eligible checking accounts that are maintained in good standing as defined above. Savings type accounts, money market accounts, public fund/charitable organization accounts, certain trust accounts, estate accounts, guardianship accounts, and minor accounts not of legal age, are not eligible for this service. We may, in our sole option and discretion, limit the number of your accounts eligible for the ODP service to one account per household.

Eligible Account Types: The account types that are eligible for the ODP Service are: Free, Classic, Classic Interest, Go Anywhere, Select, Advantage, Performance, Elite and Optima.

Eligible Transaction Types: Non-sufficient fund transactions initiated for payment against your checking account(s) may be approved/paid by us using, and up to, your assigned ODP limit, including our fees. The eligible transaction types will include, without limitation: Checks, ACH, ATM, and POS items. You must “Opt In” (choose) to have ATM and everyday Debit Card (POS) transactions covered under this service. Your election to “Opt In” does not change the discretionary nature of this service. If you do not make an affirmative election to have these items covered, it will be assumed that you have “Opted Out” from coverage on those particular types of transactions. It will then be our general practice to not approve ATM and everyday Debit Card (POS) transactions if you do not have sufficient funds at the time of the request. If we would approve such a request, no fee would be assessed but you would still be responsible for depositing funds into the account to cover the overdraft. If you “Opt Out” of ATM and everyday Debit Card (POS) transactions being covered, this service will still generally cover Checks, ACH, and other transactions as previously explained in this disclosure.

Transaction Posting Order: Items presented for payment during any one banking day will be paid in the following sequence:

  • Transactions accepted by the Bank through internal automatic transfer, Online-Internet, Mobile Banking, or ATM withdrawal.
  • Item(s) presented and accepted by the Bank through “Point-of-Sale” (POS)
  • Item(s) presented and accepted by the Bank through “Automated Clearing House” (ACH)
  • Checks presented for payment in “check number” order (lowest check number to highest check number.)

You May Always Opt-Out: You may choose at any time to not participate in the ODP service by notifying one of our Customer Service Representatives who will explain what this (“Opt Out”) means, and the potential consequences, for you.

If You Need Help: Of course, overdrafts should not be used to pay ordinary or routine expenses and you should not rely on overdrafts as a means to cover these expenses. If at any time you feel you need help with your financial obligations please contact one of our Customer Service Representatives at 1-800-262-4663.

*ALWAYS A DISCRETIONARY SERVICE: Our Overdraft Privilege Service 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. This service represents a purely discretionary courtesy or privilege that the Bank may provide to you from time to time and which may be withdrawn or withheld by us at any time without prior notice or reason or cause.


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