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Discretionary Overdraft Privilege Policy


It is the policy of North Alabama Educators CU to comply with all applicable laws and regulations and to conduct business in accordance with applicable safety and soundness standards.

The Deposit Account Agreement and Disclosure provided to you at the time you opened your account with us controls the duties, obligations and rights of the Depositor, the Authorized Signatories and North Alabama Educators CU with regard to your share draft account. The Deposit Account Agreement (and all amendments thereto) and its terms shall control any possible conflict, if any, between any provision of this Discretionary Overdraft Privilege Policy and the Deposit Account Agreement and Disclosure. A copy of the Deposit Account Agreement and Disclosure is available to you on request from North Alabama Educators CU.

Overdraft privilege is not a line of credit. However, if you inadvertently overdraw your account, we will have the discretion to pay the overdraft, subject to the limit of your overdraft privilege and the amount of the overdraft fee. North Alabama Educators CU is not obligated to pay any item presented for payment if your account does not contain sufficient available funds. Any discretionary payment by North Alabama Educators CU of an overdraft share draft (or items, such as ACH Drafts) does not obligate North Alabama Educators CU to pay any other overdraft share draft (or item), or to provide prior notice of its decision to refuse to pay such share draft (or item).

Pursuant to North Alabama Educators CU’s commitment to always provide you with the best level of service, now and in the future, if your consumer account (primarily used for personal and household purposes) has been open for at least thirty (90) days, and thereafter you maintain your account in good standing, which includes at least:

  1. Bringing your account balance to a positive balance within every thirty (30) day period for a minimum period of 24 hours;
  2. Not being in default on any loan or other obligation to North Alabama Educators CU and
  3. Not being subject to any legal or administrative order or levy

North Alabama Educators CU will have the discretion to pay overdrafts within the overdraft privilege limits, but payment by North Alabama Educators CU is a discretionary courtesy and not a right of the member or an obligation of North Alabama Educators CU. This privilege for consumer share draft or share accounts will generally be limited to a maximum of $500 overdraft (negative) balance. Of course, any and all fees and charges, including without limitation the non-sufficient funds fees (as set forth in our fee schedules and deposit account agreement and disclosure), will be included as part of this maximum amount. Transactions may not be processed in the order in which they occurred, and the order in which transactions are received and processed may impact the total amount of fees incurred.

The total of the discretionary overdraft privilege (negative) balance, including any and all fees and charges, including all non-sufficient funds/overdraft fees is due and payable upon demand, and Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all such amounts, as described in the Deposit Account Agreement and Disclosure. Our standard Overdraft fee of $29.00 per item will be imposed for overdrafts created by checks, ACH, ATM withdrawals, everyday debit card transactions, in-person withdrawals, or by other electronic means.

For our consumer members North Alabama Educators CU will not pay overdrafts for ATM or everyday debit card transactions unless North Alabama Educators CU has provided you with the notice required by section 205.17(b) of Regulation E and you have opted in to payment of these overdrafts. Members may opt out of the Overdraft Privilege services at any time by contacting any North Alabama Educators CU office.

January 2017