Overdraft Privilege Service

Overdraft Privilege Service Disclosure and Policy

First Northern Bank offers an Overdraft Privilege (ODP) Service to eligible personal accounts and a Business Overdraft Privilege (ODP) Service to eligible business accounts. If your account qualifies for ODP Service, we will consider, without obligation on our part, paying items up to a specific limit for which your account has insufficient or unavailable funds, instead of automatically returning those items unpaid.

This document explains how these ODP services operate.

Overdraft Limit: ODP service is not a line of credit. Even if you qualify for ODP Service, the Bank is not obligated to pay any item presented for payment if your account does not contain sufficient collected funds to cover the item, and we advise you not to rely upon ODP service to cover routine or intentional overdrafts. However, if you inadvertently overdraw your account, rather than automatically return items unpaid because of non-sufficient funds, we may consider approving a reasonable overdraft on a new eligible personal or business account up to $300; on an eligible personal account opened for at least 90 days and in "good standing," a reasonable ODP limit will be based on the account average balance during the preceding 90-day period, but not less than $300 or more than $1,000; and on an eligible business account opened for at least 90 days and in "good standing," a reasonable ODP limit will be up to $1,500. Most of our checking account products are eligible for this service except for those listed below under "Ineligible Accounts & Limitations."

"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.

Transactions that may overdraw your account - An overdrawn balance may result from (A) the payment of checks, automatic bill payments, single ("everyday") or recurring debit card transactions, ATM withdrawals or transfers or drawings by others made through an Automated Clearing House, (B) a posting to your account of a service charge or fee, including a non-sufficient funds (NSF) Returned Item Fee or an Overdraft Fee; or (C) any of the foregoing that are paid against one or more deposited items which, according to the Bank's Funds Availability Policy, are not yet "available" or finally paid. An overdrawn balance may also be caused if we honor Items based upon a deposit you have made, but the financial institution upon which the deposited Item was drawn refuses, for any reason, to pay or settle for the Item. However, if your account is a personal account, you will have Limited ODP service that will not cover any ATM withdrawals or everyday debit card transactions unless you affirmatively tell us you want our Full ODP Service that will cover such transactions.

Participation in our ODP Service is not mandatory - You need only notify us, by phone, mail or in person at your branch, if you want to revoke your request for Full ODP Service that includes ATM withdrawals and everyday debit card transactions, or if you do not wish Full, Limited or Business ODP Service for your account. Your decision to discontinue Full ODP Service in favor of Limited ODP Service that does not cover ATM withdrawals and everyday debit card transactions will not affect your participation as to the other types of overdrafts that are covered by ODP Service. Simply inform us of your preference.

Fees - Our normal fees and charges, including without limitation our non-sufficient funds (NSF) Returned Item Fee or an Overdraft Fee* as set forth in our Schedule of Fees & Charges – currently $32.00 with a maximum daily limit of $192.00 on personal and business accounts (no daily limit on Commercial Checking accounts) – will be charged to your account whether or not the Item(s) is (are) paid under our ODP Service, except that no such charge will be imposed if we honor an ATM withdrawal or everyday debit card transaction against your personal account unless you have expressly consented to have such Items covered by ODP Service. Note that your Items may not be processed in the order in which they occur or in which we receive them, and the order in which we process your Items can affect the total amount of NSF and Overdraft fees that could be charged to your account.

Notice - You will be notified by mail whenever we pay an Item that overdraws your account or increases the overdraft balance of your account, whether the Item is paid under ODP Service or otherwise, and whenever we return an Item drawn against your account for any reason; however, we have no obligation to notify you before the Item is processed for payment or return.

Your Obligation to Cover Overdrafts - The amount of any overdrafts, plus our non-sufficient funds item charge(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 owner, each owner will be obligated to cover the Item and our associated fees, whether or not the Owner was responsible for drawing or authorizing the Item.

Ineligible Accounts and Limitations - The following types of deposit accounts are not eligible for either ODP service: Money Market, any type of Non-Profit, Public Funds, or Attorney/Client Trust Accounts & other Professional Trust Accounts, any account covered by a Reserve Account-Line of Credit and all Savings Accounts. We may also limit the number of eligible accounts for ODP Service to one account per household and/or one account per Tax Identification Number.

We offer 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) 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.) Both of these services require that you separately apply for the service. If you do so and are approved, you may save money on the total fees you pay for overdraft protection services, and, unlike ODP Service, you would have the assurance that all Items within your savings account balance or credit limit, as applicable, would be honored – in other words, under these services we are committed to cover qualifying overdrafts.

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.

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.

* We do not charge an NSF or Overdraft fee on consumer accounts if, after an Item is dishonored or paid, your overdraft balance is no greater than $5 or the amount of the Item is $5 or less regardless of the overdraft balance.