Effective April 1, 2006 Priority FCU will no longer offer an Overdraft Protection Plan in conjunction with Share Draft Checking Accounts. A true Overdraft Protection Plan is tied to an approved Line of Credit Loan and each overdraft is treated as a loan draw. What we were incorrectly calling an Overdraft Protection Plan is actually a Courtesy Pay Program which is what we intended to be doing and what we are continuing to do for our members. Therefore, we are changing what we say to match what we are doing.

The Credit Union may, as a courtesy, exercise it's option to allow an overdraft item to clear an account. The Credit Union's decision to exercise this option depends on the risk associated with each individual account based on the account history.

If one or any overdraft item is allowed to clear, it does not guarantee that other items will be paid in the future.

If an overdraft item is allowed to clear either by transferring funds from another account or by allowing the balance to go negative, a fee will apply as shown on the current Fee Schedule. The fee associated with the allowed overdraft is the same as the NSF Fee associated with returning the item as insufficient. Therefore, the allowed overdraft does not cost you more, but it does prevent additional fees that might be charged by the business receiving the returned item.

Please note.. any existing Share Draft Checking Account on which a member declined the Overdraft Protection Plan will not receive courtesy pay in order to honor that member's decision. If a member wishes to change that option and be considered for courtesy pay on overdraft items, they should contact the Credit Union office and speak with a Member Services Representative.

This is not intended to make overdrafts on a checking account easier than applying for a loan. Overdrawn amounts must be immediately resolved within a reasonable number of days. Any overdrawn amount not resolved for as long as 45 days will be subject to further action by the Credit Union to collect the funds.