OVERDRAFT PRIVILEGE AND OVERDRAFT PROTECTION

Independent Bank offers Overdraft Coverage on our checking accounts. This service is designed to protect your account from unexpected overdrafts.

Overdraft Coverage Options:

The choice is yours. Consider these ways to cover overdrafts:

¹Call us at 800.355.0641 or visit a branch to sign up or apply for these services.
²Subject to credit approval.
³Available only on consumer accounts.

Overdraft Protection services apply to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account or line of credit you may have at Independent Bank for a finance charge. Please note that overdraft lines of credit are subject to credit approval.

Overdraft Privilege allows you to overdraw your account up to the disclosed limit* for a fee in order to pay a transaction. Even if you have overdraft protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted.

*New accounts opened within the past 33 calendar days have an introductory limit of $100.00.

*If you choose Extended Coverage on your consumer account, ATM withdrawals and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Extended Overdraft Privilege coverage, it is not necessary to request it again. Business accounts automatically have Extended Coverage.

You can discontinue the Overdraft Privilege in its entirety by contacting us at 800.355.0641 or visiting a branch.

What else you should know:

• A link to another account or a line of credit is a less expensive option than an overdraft. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our mobile banking, online banking, and telephone banking services to keep track of your balance.
• The $34 Overdraft Fee is the same fee amount that is charged if a check is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft Fee or a Return Fee of $34. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn in excess of the Overdraft Privilege limit amount as a result of a fee.
• If your account balance remains overdrawn for longer than five (5) business days, we will charge your account a daily Overdraft Fee of $6 for each of the consecutive business days the account remains overdrawn, beginning with day six (6).
• For consumer accounts, there is a limit of five (5) Overdraft Fees ($170) per day we will charge. We will not charge an Overdraft Fee if a consumer account is overdrawn by $5 or less. For business accounts. There is a limit of 10 Overdraft Fees ($340) per day we will charge. We will not charge an Overdraft Fee if a business account is overdrawn by $5 or less.
• We post items in the following order: credit transactions are processed first, with debits, or withdrawals, from your account processed as follows: electronic items, such as ATM and preauthorized transactions, then checks. The items are processed in order received and appropriate time and/or serial number order within each category. Items that cannot be determined "in order received" will be processed in a high to low order; however, exceptions will occur.
• Although under payment system rules, Independent Bank may be obligated to pay some unauthorized debit card transactions, Independent Bank will not authorize debit card or ATM transactions unless there are available funds (including Overdraft Coverage Options) to cover the transactions and any fee(s).
• Independent Bank authorizes and pays transactions using the available balance in your account. The available balance is comprised of the ledger balance (collected funds minus debit card holds), and does not include any deposited funds on hold. Independent Bank may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosures. If the funds in the available balance are not sufficient to cover a transaction, any available overdraft protection and/or the amount of the Overdraft Privilege limit, may be used to authorize and pay a transaction.
• Independent Bank will reduce the card authorization balance for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the reduction may exceed the amount of the transaction. When the transaction settles, the card authorization balance will update to reflect the available balance in your account. If your account is overdrawn after the transaction settles, an Overdraft Fee may be assessed.
• Except as described in this notice, Independent Bank may not pay items if your account does not contain available funds (including the Overdraft Privilege limit) to cover the item(s) and the amount of any fee(s).
• Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
• Overdraft Privilege may be discontinued if you default on any loan (30 days or more past due, bankruptcy) or other obligation to us, your account becomes subject to any legal or administrative order, garnishment or levy, or if you fail to maintain this account in good standing by not bringing your account to a positive balance within 30 days for a minimum of one business day.
• Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Deposit Account Agreement and Disclosures. The total (negative) balance, including all fees and charges, is due and payable upon demand.

If you have any questions about Overdraft Protection or Overdraft Privilege, please call us at 800.355.0641 or visit any branch.