Overdraft Privilege Service

Overdraft Privilege Service Disclosure and Policy

First Northern Bank offers a Premium or Limited 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. The Bank is not obligated to pay any item presented for payment if your account does not contain sufficient collected funds, and First Northern Bank advises 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.

When an eligible personal account has been opened 90 days and the "good standing" criteria, described below, continues to be met, we will consider approving a reasonable ODP limit based on the account average balance during the 90-day period. This limit may vary from $300 - $1,000. For eligible business accounts opened 90 days and meeting the "good standing" criteria, we will consider approving an ODP limit 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 a check, an automatic bill payment, a transaction which uses your checking account number, or a recurring debit card transaction; (B) An everyday debit card transaction or ATM withdrawal, (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.

Premium ODP Service for a personal account requires your authorization - The Bank may, at our discretion, authorize & pay an overdraft up to an assigned limit for checks and other transactions using your checking account number, automatic bill payments, and recurring debit card payments or transactions (i.e: monthly membership dues). PLUS, the Bank will include ATM withdrawals and everyday debit card transactions with your affirmative consent. Without your affirmative consent, you will be placed in the Limited ODP Service. This means ATM withdrawals and everyday debit card transactions which may overdraw your account will generally be declined at the time of the transaction.

Limited ODP Service for a personal account is automatically provided to eligible personal accounts - The Bank may, at our discretion, authorize & pay an overdraft up to an assigned limit for checks and other transactions using your checking account number, automatic bill payments, and recurring debit card payments or transactions (i.e: monthly membership dues).

Business ODP Service is automatically provided to eligible business accounts and applies to any transaction listed in the "Transactions that may overdraw your account" paragraph.

Participation in any one of our ODP Services is not mandatory - You may "opt-out" of the Premium and/or Limited service any time by notifying us by phone, mail or in person at your branch. Furthermore, you may revoke your affirmative consent to have ATM and everyday debit card transactions considered for payment under ODP without removing other items from the service. Simply inform us of your preference.

Fees - Our normal fees and charges, including without limitation our non-sufficient funds (NSF) and Overdraft per item charge (currently $32.00 with a maximum daily limit of $192.00 on personal accounts) 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 for Premium ODP. For Limited ODP Service the NSF or Overdraft fees applies only to checks and other transactions using your checking account number, automatic bill payments, and recurring debit card payments or transactions. You will be notified by mail of any non-sufficient funds items paid or returned; 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) 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).

Ineligible Accounts and Limitations - The following types of deposit accounts are not eligible for either one of our ODP services: money market, any type of non-profit, association, school or other community account, Health Savings accounts, Public Funds or Government accounts, Attorney/Client Trust accounts, Professional Trust accounts, any account with a Reserve Account-Line of Credit attached, 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.

Always a Discretionary Service - Our ODP Services 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 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) 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.

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.