Overdraft Privilege Policy
(A Discretionary Overdraft Service)

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

A non-sufficient (overdrawn/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) Items deposited by you which have been returned, unpaid; D) Charging your account 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 presented for payment if your account does not contain sufficient collected funds. However, rather than automatically return items unpaid because of non-sufficient funds, we will consider, without obligation on our part, approving a reasonable overdraft on an eligible personal or business account up to $300 as long as the account is maintained in good standing. “Good standing” means: (a) You make regular monthly deposits into the account; (b) You bring your account to a positive balance (not overdrawn/negative) immediately, or as soon as possible and at least once every thirty (30) days; (c) You are not in default on any loan obligation to the Bank; and (d) Your account is not the subject of any legal or administrative order or levy, such as bankruptcy or a tax lien.

When an eligible personal account has been opened 90 days and the “good standing” criteria continues to be met, we will consider approving a reasonable ODP! limit under this discretionary** service up to an overdrawn/negative balance based on the account average balance during the 90-day period as listed in the following table:

 

 

For eligible business accounts, opened 90 days and meeting the “good standing” criteria we will consider approving reasonable overdrafts under this discretionary** service up to a $1,500 overdrawn/negative balance. Our normal fees and charges, including without limitation our non-sufficient funds per item charge (currently $19.50) and our daily overdraft fee (currently $5 after the 5th day overdrawn) as set forth in our Schedule of Fees & Charges, will be included in this limit and will apply to any transaction that overdraws your account including, but not limited to, payments authorized by Checks, ACH / Electronic Items, ATM / Debit Card / Check Card Transactions.

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 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 plus our non-sufficient funds item charge(s) and daily overdraft fee(s) 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, each owner, and agent if applicable, drawing/ presenting the item creating the overdraft, shall be jointly and severally liable for such overdrafts plus our non-sufficient funds item charge(s) and daily overdraft fee(s).

Two other overdraft protection options available for personal accounts: (1) Savings Overdraft Protection service - transfer funds from your savings account (current fee of $5 per transfer applies). The number of these transfers allowed per month is limited by Banking Regulations. (2) Apply for a Reserve Account Line of Credit (current fee is 2% of transferred amount, plus interest which accrues on amount advanced to cover the overdrawn/negative balance. If you select Savings Overdraft Protection or are approved for the Reserve Account Line of Credit, you may save money on the total fees you pay for overdraft protection services.

You may always “Opt Out”: You may choose at any time to not participate in the ODP! service simply by notifying us.

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 officers to determine what alternatives are available to you.
*Eligible Accounts include Totally Free Checking, 50+ Free Interest Checking, Direct Deposit Free Interest Checking, Low Minimum Interest Checking, Wall Street Checking, No Minimum Interest Checking, e-Conomy Interest Checking, Totally Free Business Checking, Business Interest Checking and Commercial Checking. (and previously-offered personal checking account products of Advantage Checking, Senior Checking, Preferred Interest Checking, VIP Interest Checking, Business Checking, Analysis Checking and Business Interest Checking.)

**Ineligible Accounts and Limitations: All Savings Accounts, Money Market, Public Funds, Non-Profit and Attorney/Client Trust Accounts, and other certain Trust Accounts are not eligible. We may limit the number of accounts eligible for ODP! service to one account per household and/or one account per Tax Identification Number.

Always a Discretionary Service: Our ODP! service does not constitute an actual or implied agreement between you and us. Nor does it constitute an actual or implied obligation of or by us. This service represents a purely discretionary courtesy or privilege that we 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.