1. Good standing includes at least: making regular deposits consistent with your past practices; not being in default on any loan obligation to the Bank; not being subject to any legal or administrative order or levy.

The Bank is not obligated to pay any item presented for payment if your account does not contain sufficient collected (available) funds, and any discretionary courtesy payment by the Bank of any non-sufficient fund items, electronic or paper, does not obligate it to pay any additional non-sufficient fund item or to provide prior written notice of its decision to refuse to pay any additional non-sufficient fund item.

Pursuant to the Bank’s commitment to always provide excellent customer service, if your account has been open for at least 30 days, the Bank will consider, as a discretionary courtesy and not a right or obligation, approving your reasonable overdrafts when your account is in good standing, which includes at least:

• Making regular deposits consistent with your past practices
• Not being in default on any loan obligation to the Bank
• Not being subject to any legal or administrative order or levy

This courtesy will generally be limited to maximum of $500 for accounts in good standing. Of course, any and all bank fees and charges, including without limitation, the overdraft fees of $35 per item (as set forth in our fee schedules) will be included in this limit.

The total of the courtesy overdraft (negative) balance, including any and all bank fees and charges, including all overdraft fees, is due and payable upon demand, and Depositor and each Authorized Signer will continue to be liable for such amounts, as described in the Depositor Account Agreement.

Bounce Proof Security is not available for the following: Non-Profit Organizations, Estates, and Minors. This courtesy will be suspended in the case of account holders that file bankruptcy, have garnishments or levies placed on the account, accounts with any suspicious activity, and for account holders who default on a loan obligation with the Bank.

Approval of reasonable overdrafts by the Bank on accounts in good standing (as described above) is only a courtesy, and not a right or obligation and is within the Bank’s sole and absolute discretion, and can cease at any time without prior written notice or reason or cause. Credit agencies may be notified if overdrafts are not paid as agreed.

The bank has established the following payment order for customer debits, following the posting of customer credits. The payment order is designed to ensure check clearing procedures and item processing order is fair and does not maximize customer overdrafts. (1) Account to account transfers - smallest to largest, (2) ATM/Check Card transactions - smallest to largest, (3) ACH Debit transactions - serial number order if possible, otherwise smallest to largest, (4) Checks presented in person - cashed checks and then deposited checks in serial number order, (5) Other Checks - serial number order.