OVERDRAFT PROTECTION AND OVERDRAFT PRIVILEGE

Life happens! Prospect Bank understands that unexpected overdrafts occur from time to time – Overdraft Coverage can help.

Consider these ways to cover overdrafts:

• Overdraft Protection (Link to Another Deposit Account you have at Prospect Bank) – $2.00 fee per transfer
• Overdraft Privilege Standard or Extended Coverage – $30.00 Overdraft Paid Item Charge per item presented*

                   * Per item presented means each time an item is presented, including representment

Overdraft Protection applies to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account you may have at Prospect Bank for a fee or finance charge. Call us at 877-465-4154, email us at virtualbranch@bankprospect.com, or come by a branch to sign up for this service. Good account management is the best way to avoid overdrafts.

Overdraft Privilege allows you to overdraw your account up to the disclosed limit for a fee to pay a transaction. Even if you have Overdraft Protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted.

• Eligible Consumer accounts are automatically provided Overdraft Privilege Standard Coverage. No action is required.  However, payment of overdrafts caused by ATM and everyday debit card transactions such as point of sale (POS) transactions will only be authorized if you choose Extended Coverage.
• Eligible Business accounts are automatically provided Overdraft Privilege Extended Coverage. No action is required.

Please review the “What Else You Should Know” section at the bottom of this page for other important information.

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

If you would like to select Extended Coverage for future transactions, call us at 877-465-4154, visit any branch, complete a consent form by clicking the link below and mail it to us at PO Box 400, Paris, IL 61944, or email us at virtualbranch@bankprospect.com.

Extended Coverage Consent Form

You can discontinue the Overdraft Privilege in its entirety by contacting us at 877-465-4154 or sending us an email at virtualbranch@bankprospect.com.

WHAT ELSE YOU SHOULD KNOW

• A link to another account may be a less expensive option than an overdraft. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our mobile banking, online banking, and telephone banking services to keep track of your balance. For additional financial education resources, please visit mymoney.gov.

• The $30.00 Overdraft Paid Item Charge that is charged if you overdraw your account more than $10.00 is the same fee amount that is charged if an item is returned as unpaid. If your consumer account is overdrawn by $10.00 or less, the Overdraft Paid Item Charge is $0.00. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft Paid Item Charge or a Non-Sufficient Funds (NSF) Returned Item Charge of $30.00. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn more than the Overdraft Privilege limit amount because of a fee.

• Recipients of federal or state benefits payments who do not wish us to deduct the amount overdrawn and the Overdraft Paid Item Charge from funds that you deposit or that are deposited into your account may call us at 877.465.4154 to discontinue Overdraft Privilege.

• If an item is returned because the Available Balance (as defined below) in your account is not sufficient to cover the item and the item is presented for payment again, Prospect Bank (“We”) will charge a Non-Sufficient Funds (NSF) Return Item Charge each time we return the item because it exceeds the Available Balance in your account. Because we may charge a Non-Sufficient Funds (NSF) Return Item Charge each time an item is presented, we may charge you more than one fee for any given item as a result of a returned item and representment of the item. When we charge a Non-Sufficient Funds (NSF) Return Item Charge, the charge reduces the Available Balance in your account and may put your account into (or further into) overdraft. If, on representment of the item, the Available Balance in your account is sufficient to cover the item we may pay the item, and, if payment causes an overdraft, charge an Overdraft Paid Item Charge. We may use the terms “item” and “transaction” interchangeably.

• This describes the posting order for purposes of determining overdrafts. Our general policy is to post items throughout the day and to post ACH credits before debits. We generally post items in the following sequence: point of sale and debit card transactions are posted from lowest to highest dollar amount; ATM withdrawals are posted from lowest to highest dollar amount; ACH debits are posted from lowest to highest dollar amount; paper checks are posted in check number order; however, because of the many ways we allow you to access your account, the posting order of individual items may differ from these general policies. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Overdraft Paid Item Charges or Non-Sufficient Funds (NSF) Returned Item Charge assessed.

• Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.

• Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Deposit Account Agreement and Disclosure. The total (negative) balance, including all fees and charges, is due and payable upon demand.

• We may be obligated to pay some debit card transactions that are not authorized through the payment system but which we are required to pay due to the payment system rules, and as a result you may incur fees if such transactions overdraw your account. However, we will not authorize debit card or ATM transactions unless your account’s Available Balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).

• Giving us your consent to pay every day debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring Overdraft Paid Item Charges for transactions that we would otherwise be required to pay without assessing an Overdraft Paid Item Charge. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.

Understanding your Available Balance: Your account has two kinds of balances: the Ledger Balance and the Available Balance.

• We authorize and pay transactions using the Available Balance.
• Your Ledger Balance reflects the full amount of all deposits to your account as well as payment transactions that have been posted to your account. It does not reflect checks you have written and are still outstanding or transactions that have been authorized but are still pending.
• Your Available Balance is the amount available to you to use for purchases, withdrawals, or to cover transactions. The Available Balance is your Ledger Balance, less any holds due to pending debit card transactions and holds on deposited funds.
• The balance used for authorizing checks, ACH items, and recurring debit card transactions is your Available Balance plus the amount of the Overdraft Privilege limit and any available Overdraft Protection.
• The balance used for authorizing ATM and everyday debit card transactions on accounts with Standard Coverage is your Available Balance plus any available Overdraft Protection but does NOT include the Overdraft Privilege
• The balance used for authorizing ATM and everyday debit card transactions on accounts with Extended Coverage is your Available Balance plus any available Overdraft Protection and includes the Overdraft Privilege
• Because your Available Balance reflects pending transactions and debit holds, your balance may appear to cover a transaction but later upon settlement it may not be sufficient to cover such transaction. In such cases, the transaction may further overdraw your account and be subject to additional overdraft fees. You should assume that any item which would overdraw your account based on your Available Balance may create an overdraft. Note that we may place a hold on deposited funds in accordance with our Terms and Conditions of  Your Account and Disclosure, which will reduce the amount in your Available Balance.
• Please be aware that the Overdraft Privilege amount is not included in your Available Balance provided through online banking, mobile banking or Prospect Bank’s ATMs
• We 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 Paid Item Charge may be assessed.
• Except as described herein, we will not pay items if the Available Balance in your account (including the Overdraft Privilege limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).

Understanding Overdraft Privilege Limits

• New consumer and business checking accounts will receive a $100.00 Introductory Overdraft Privilege limit at account opening that will be increased to $500.00 after 30 days in good standing for consumer accounts or to $1,000.00 after 90 days in good standing for business accounts.
• Overdraft Privilege may be reduced/suspended 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 32 days for a minimum of one business day. You must bring your account balance positive for at least one business day to have the full Overdraft Privilege limit reinstated.

If you have any questions about Overdraft Protection or Overdraft Privilege, please call us at 877-465-4154 or visit your local branch.