Overdraft Coverage Options

OVERDRAFT COVERAGE OPTIONS:
OVERDRAFT PRIVILEGE AND OVERDRAFT PROTECTION

Community National Bank understands that unexpected overdrafts occur from time to time – Overdraft Coverage can help.

Overdraft Coverage Options

The choice is yours. Consider these ways to cover overdrafts:

Overdraft Options 

1 Please contact us at (423) 570-0280 or (706) 866-7932 or visit a branch to sign up for this service.

Overdraft Protection services may help prevent overdrafts by automatically transferring funds to your checking account from another account you may have at Community National Bank for a fee.

Overdraft Privilege allows you to overdraw your account up to your limit for a fee in order to pay a transaction and is automatically provided at account opening in the amount of $100.  If your eligible consumer checking account has been open for thirty-five (35) days, the introductory STANDARD Overdraft Privilege limit of $100 may be increased to $500 if you have maintained your account in good standing.  If your business checking account has been open for sixty (60) days, the introductory EXTENDED Overdraft Privilege Limit of $100 may be increased to $1,000 if you have maintained your account in good standing.  “Good standing” means you are not in default on any loan or other obligation to us, your account is not subject to any legal or administrative order or levy, you are making regular deposits and you bring your account to a positive balance within thirty-two (32) days for a minimum of one business day following an overdraft. Even if you have overdraft protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted. Please contact us at (423-570-0280) or (706) 866-7932 or visit a branch for eligible criteria.

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*If you choose Extended Coverage on your consumer account, ATM withdrawals and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Extended Overdraft Privilege coverage, it is not necessary to request it again. Business accounts automatically have Extended Coverage.

You can discontinue the Overdraft Protection or the Overdraft Privilege in its entirety by contacting us at (423) 570-0280 or (706) 866-7932 or by visiting a branch.

What Else You Should Know

  • A link to another account is a less expensive option than an overdraft. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts. Even if you have overdraft protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted. Good account management is the best way to avoid overdrafts. Use our mobile banking, Internet banking, and telephone banking services to keep track of your balance.
  • The $30 Overdraft Fee is the same fee amount that is charged if a check is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft Fee or a Returned Item Fee of $30. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn in excess of the Overdraft Privilege limit amount as a result of a fee. You must repay or cover any overdraft within thirty-two (32) days.  A fee may be imposed for covering overdrafts created by check, in-person withdrawal, ATM withdrawal, or other electronic means.
  • We will not charge an Overdraft Fee if a consumer account is overdrawn by $10 or less. This exception does not apply to business accounts.
  • We typically post items in the following order: 1) credits, 2) ATM/POS Transactions, 3) Checks in check number order, 4) Other items smallest to largest amount and 5) ACH as received; however, exceptions will occur. Holds on funds (described below) and the order in which transactions are posted may impact the total amount of Overdraft Fees or Returned Item Fees assessed.
  • Once an item/transaction overdraws the account during any business day, you have until 5:00 PM/EST of the same business day to bring your balance back to good standing in order to avoid being charged a fee.
  • Although under payment system rules, Community National Bank may be obligated to pay some unauthorized debit card transactions, Community National Bank will not authorize debit card or ATM transactions unless there are available funds (including Overdraft Coverage Options) to cover the transactions and any fee(s).
  • Giving us your consent on your consumer account to pay every day debit card and ATM overdrafts may result in you incurring Overdraft Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit and may also help you avoid overdrafts in excess of your available funds that could result in restriction of your debit card.
  • Community National Bank authorizes and pays transactions using the available balance in your account. Community National Bank may place a hold on deposited funds in accordance with the Account Agreement & Terms and Conditions of Your Account, which will reduce the amount in your available balance. The available balance for checks, ACH items, and recurring debit card transactions is comprised of the ledger balance, less any holds on deposited funds and any debit card holds, plus the amount of the Overdraft Privilege limit and any available overdraft protection. The available balance for ATM and everyday debit card transactions on accounts with Standard Coverage is the ledger balance, less any holds on deposited funds and any debit card holds, plus any available overdraft protection, but does NOT include the Overdraft Privilege Limit.  For accounts with Extended Coverage, the Overdraft Privilege Limit is included in the available balance for authorizing ATM and everyday debit card transactions. If the funds in the available balance are not sufficient to cover a transaction, any available overdraft protection and/or the amount of the Overdraft Privilege limit, may be used to authorize and pay a transaction. 
  • Please be aware that the Overdraft Privilege amount is not included in your balance provided through online banking, mobile banking or Community National Bank’s ATMs.
  • Community National Bank will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction.  When the hold ends the funds will be added to the available balance in your account.  If your account is overdrawn after the held funds are added to the available balance and the transaction is posted to the available balance, an Overdraft Fee may be assessed.
  • Except as described in this letter, Community National Bank will not pay items if your account does not contain available funds (including the Overdraft Privilege limit) to cover the item(s) and the amount of any fee(s).
  • We may suspend your debit card if you incur overdrafts in excess of the available funds in your account, including any Overdraft Privilege limit (as described in this letter). Debit cards on your account will remain suspended until you make sufficient deposits so that your available balance, taking into account any Overdraft Privilege limit, is positive and then you contact us.
  • We may also suspend your debit card if your account is overdrawn more than thirty-two (32) consecutive calendar days. Debit cards on your account will remain suspended until you contact us and you make sufficient deposits so that your account balance is positive.
  • If your debit card is suspended, you will be unable to use your debit card for purchases or to access your account at the ATM, and if you use your debit card for recurring payments, e.g., utilities, and your debit card is ever suspended, these transactions will be returned to the payee(s). You will need to make other arrangements to make these payments to the payee(s).
  • Overdraft Privilege allows you to overdraw your account up to your limit for a fee in order to pay a transaction and is automatically provided at account opening in the amount of $100.
  • If your eligible consumer checking account has been open for thirty-five (35) days, the introductory STANDARD Overdraft Privilege Limit of $100 may be increased to $500 if you have maintained your account in good standing. If your business checking account has been open for sixty (60) days, the introductory EXTENDED Overdraft Privilege Limit of $100 may be increased to $1,000 if you have maintained your account in good standing.  “Good Standing” means you are not in default on any loan or other obligation to us, your account is not subject to any legal or administrative order or levy, you are making regular deposits and you bring your account to a positive balance within thirty-two (32) days for a minimum of one business day following an overdraft.
  • Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice. Whether your overdrafts will be paid is discretionary and we reserve the right not to pay.  For example, we typically do not pay overdrafts if your account is not in good standing or you are not making regular deposits.
  • Overdraft Privilege may be discontinued if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within thirty-two (32) days for a minimum of one business day. We reserve the right to lower your Overdraft Privilege limit or to discontinue the Overdraft Privilege service at any time without reason or cause.
  • Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Account Agreement & Terms and Conditions of Your Account. The total (negative) balance, including all fees and charges, is due and payable upon demand.

The 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 the bank at any time without prior notice or reason or cause.

If you have any questions about Overdraft Protection or Overdraft Privilege, please contact us at (423) 570-0280 or (706) 866-7932 or visit a branch.  

 

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