Optional Overdraft Protection Service

The Milford National Bank and Trust Company
Optional Overdraft Protection Service Policy
The Milford National Bank and Trust Company (The Milford National Bank) offers Optional Overdraft Protection Service. At The Milford National Bank we do not encourage overdrafts. As always, we encourage you to manage your finances responsibly. However, we want to save you from the additional merchant fees and possible damage to your credit history that might result if a check is returned. That’s why we provide our Optional Overdraft Protection Service; a special overdraft privilege service for The Milford National Bank’s checking customers. This document explains how Optional Overdraft Protection Service operates.

Optional Overdraft Protection Service
An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway.  The Optional Overdraft Protection Service applies to several types of transactions such as checks and other transactions made using your checking account number, automatic bill payments, ATM transactions, and everyday debit card transactions.  However, we will not authorize and pay overdrafts for ATM transactions and everyday debit card transactions unless you ask us to by completing our Consent Form for Optional Overdraft Protection Services.

You may opt-out of Optional Overdraft Protection Service at any time by contacting us by phone or informing our customer service representatives at one of our branches.  You may also tell us not to pay overdrafts for your ATM and everyday debit card transactions.  This will not affect whether we pay overdrafts for other types of transactions, including checks and other transactions made using your checking account number.  We may still cover these transactions and charge you a fee.

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined and we may charge a Non-sufficient Funds Charge in accordance with our Schedule of Service Charges in effect at the time of the overdraft.

Cost of Optional Overdraft Protection Service
There is no additional cost associated with this privilege unless you use it. You will be charged our standard Non-sufficient Funds (NSF) charge of $32 for each item that creates an overdraft on your account. 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 overdraft including our NSF charge of $32 or a returned item NSF charge of $32 that you owe us shall be due and payable upon demand, but if no demand is made, no later than 30 calendar days after the creation of the overdraft. If there is an overdraft on an account with more than one owner on the signature card, each owner and agent, if applicable, shall be jointly and severally liable for all overdrafts inclusive of fees. To help you manage your account, the total fees you have paid for non-sufficient funds items (both paid and returned) during the current month and for the year-to-date, will be reflected on your monthly checking statement in accordance with Federal regulations.

Optional Overdraft Protection Service Accounts
As long as you maintain your account in good standing, The Milford National Bank may approve your overdrafts within your current available Optional Overdraft Protection Service limit which is generally limited to $1,000 overdraft balance on personal and most business accounts. Whether your overdraft will be paid is discretionary and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing. Your account is in good standing if you (1) demonstrate responsible account management – such as making regular deposits to bring your account to a positive balance at least once every 30 days (including the payment of all bank fees and charges); (2) avoid excessive overdrafts suggesting the use of Optional Overdraft Protection Service as a continuing line of credit, and (3) there are no legal orders, levies or liens against your account. If you are a new account holder, you may be able to use the overdraft privilege service 30 days after the account is opened, assuming you demonstrate responsible account management by making regular deposits to maintain your account with a positive balance, and there are no legal orders, levies or liens against your account.

Please note that the amount of the overdraft plus our non-sufficient funds (NSF) charge of $32 for each item will be deducted from your overdraft limit. No interest will be charged on the overdraft balance.

Optional Overdraft Protection Service Limit
Overdrafts above and beyond your established Optional Overdraft Protection Service limit may result in a check or checks being returned to the payee. The NSF charge will be assessed per item to your account. An NSF notice will be sent to notify you of our actions.

Repayment of Optional Overdraft Protection Service
You should make every attempt to bring your account to a positive balance as soon as possible, and must do so within 30 days. If you do not bring your account to a positive balance within 30 days you will receive a letter from The Milford National Bank informing you that your overdraft privileges have been suspended. If your account has not been brought to a positive balance in the next 25 days, your account will be closed and we will report information about your account to consumer reporting agencies.

 

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