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FMFCU Discretionary Overdraft Privilege Policy

It is the policy of Franklin Mint Federal Credit Union (FMFCU) to comply with all applicable laws and regulations and to conduct business in accordance with applicable safety and soundness standards.

The Account Agreement and Disclosure provided to you at the time you opened your membership with us controls the duties, obligations and rights of the Depositor, the Authorized Signatories and FMFCU with regard to your checking account(s). The 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 Account Agreement and Disclosure. An additional copy of the Account Agreement and Disclosure is available to you on request at any branch office or by calling our Member Service Center at 610-325-5100 or outside of PA at 1-800-220-3193.

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 (NSF) fee. FMFCU is not obligated to pay any item presented for payment if your account does not contain sufficient available funds. Any discretionary payment by FMFCU of an overdraft item, ( such as a check, ACH, Debit Purchase or bill-payer transaction) does not obligate FMFCU to pay any other overdraft items, or to provide prior notice of its decision to refuse to pay such items.

Pursuant to FMFCU’s commitment to always provide you with the best level of service, now and in the future, if your checking account (primarily used for personal and household purposes) has been open for at least sixty (60) days, or if your business account has been open for at least sixty (60) days, and thereafter you maintain your account in good standing, which includes at least:

A) Bringing your account balance to a positive balance within every thirty (30) day period for a minimum period of 24 hours;
B) Not being in default on any loan or other obligation to FMFCU and
C) Not being subject to any legal or administrative order or levy

FMFCU will have the discretion to pay overdrafts within the overdraft privilege limits, but payment by FMFCU is a discretionary courtesy and not a right of the member or an obligation of FMFCU. This privilege for checking will generally not exceed a maximum of $700 overdraft (negative) balance. This privilege for business accounts will generally not exceed 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 account agreement and disclosure), will be included as part of this maximum amount. 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 Account Agreement and Disclosure with a maximum repayment period of 30 days.

Again, while FMFCU will have the discretion to pay overdrafts on accounts in good standing (as described above), any such payment is a discretionary courtesy, and not a right of the member or an obligation of FMFCU and FMFCU in its sole and absolute discretion, can cease paying overdrafts at any time without prior notice of reason or cause.

August 2006

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