Always a Discretionary Service

It is the policy of City Bank (“the bank, we, us, or our”) to comply with applicable laws and regulations, and to conduct business in accordance with applicable safety and soundness standards.

A non-sufficient funds (negative) balance may result from:
• Payments authorized by checks, ACH or electronic transactions, City bank and foreign  ATMs/debit cards, online banking, mobile app, mobile banking and telephone banking transactions;
• Payments authorized by you;
• The return of unpaid items deposited by you;
• The imposition of bank service charges; or
• The deposit of items, which according to the Bank’s Funds Availability Policy, are treated as not yet “available” or finally paid.

We are not obligated to pay any item presented for payment if your account does not contain
sufficient collected funds. Rather than automatically returning, unpaid, any non-sufficient funds items that you may have, if your eligible account has been open for at least thirty (30) days, there has been two (2) deposits made to the account, and thereafter you maintain your account in good standing, which includes at least:
• You bring your account to a positive balance (not overdrawn) at least once every thirty-five (35) days, and
• Your account is not the subject of any legal or administrative order or levy, then we may consider, without obligation on our part, approving your reasonable overdrafts.

This discretionary service will generally be limited to a $700 overdraft (negative) balance for eligible types. Some restrictions do apply. Any and all fees¹ and charges, including without limitation our return item fee/overdraft paid fees¹ will be included in this limit and will apply to any transaction that overdraws your account including, but not limited to, payments authorized by check, ACH/electronic Items, City Bank and foreign ATMs/Debit Card, Online Banking, mobile app, mobile banking and telephone banking transactions.

We may refuse to pay an overdraft at any time, even if your account is in good standing and even though we may have previously paid overdrafts for you. We will charge you the amount of any overdrafts plus our return item fee(s) and/or overdraft paid fee(s) of  $33¹ per item, per presentment. We will charge you for only four (4) ODP /NSF’s per day. A fee will not be assessed for any item(s) which causes the account to be overdrawn for less than $50 (negative balance of $50 or less) on any one business day. If there is an overdraft paid by us on an account with more than one (1) owner on the signature card, each owner, and agent if applicable, drawing/presenting the item creating the overdraft, shall be jointly and severally liable for such overdrafts plus our return item fee(s)¹ and/or overdraft paid fee(s)¹ ODP. We may use deposits you or others make to your account to pay overdrafts, fees¹  and other amounts you owe us.

ODP Denial Process:
Some common reasons your ODP may be denied are: if you have a negative record with Chexsystems, and/or if you do not have regular payroll, social security, or similar direct deposits. Additionally, based on safety and soundness concerns, we may terminate your participation in this discretionary ODP service at any time, including, but not limited to, if there is a history of potential chronic or excessive use of the ODP service or you are in default of your obligations to City Bank.

Limitations:
Savings Type Accounts, Money Market Accounts, Rep Payee, UTMA, Public Funds/Charitable Organization Accounts, Student Minor Accounts, certain trust accounts, ODP Plus, Fresh Start repayment plan, accounts with restrictive hold codes (garnishment, liens, etc.), dormant, bad  address, deceased, bankruptcy, fraud and charged off accounts are not eligible. We may limit the number of accounts eligible for ODP to one account per tax payer ID.

The bank is not obligated to honor any overdraft on your account if the overdraft, either alone or when aggregated with other overdrafts and related overdraft fees¹, exceeds your ODP limit for checks and ACH transactions. Here’s how ODP works if we pay your overdraft item: if you inadvertently write a check, or make a payment for more than the funds on deposit in your account, we may cover them, and save you time, money and inconvenience. Suppose that your account type permits a $700 limit. With ODP, you may be covered for a check of $667 plus the $33 Overdraft Paid Fee-ODP. Alternatively, if you opt-in for ATM and everyday debit card transactions, you may be covered for a $100 ATM withdrawal, a check of $534, plus the Overdraft Paid Fees for two items for $66.

The bank uses the “Ledger” balance to determine when your account is overdrawn and an Overdraft Paid Fee-ODP should be imposed. This means that your account balance is calculated based on settled transactions only at the time that such transactions actually post to your account, not at the point of sale. Electronic transactions that are pre-authorized but not settled (for example, pre-authorized temporary merchant holds), or deposit holds that have not yet cleared, will not be considered in the “Ledger” balance for your account until those transactions post. For example, a merchant may request a temporary hold on your account for a specified sum of money at the point of sale, which may be more than the actual amount of your purchase when it posts to your account. When this happens, the bank cannot determine whether the hold exceeds the actual amount of your purchase. The temporary hold and the amount charged to your account will eventually be adjusted, but it may take up to three days before the adjustment is made. Because the bank cannot determine the amount that will ultimately be charged to your account by the merchant, the “Ledger” balance for your account is not reduced by the preauthorized temporary hold until the adjustment is made by the merchant and the purchase posts to your account. This means that intervening transactions that post to your account before the pre-authorized temporary hold posts to your account may reduce your “Ledger” balance, such that an Overdraft Paid Fee-ODP is imposed on the purchase at the time of posting.

Accept/Decline ODP Program:
We offer Overdraft Protection (ODP) that comes with eligible accounts. By accepting the ODP program, we may pay overdraft items up to the limit allowed for your account type for the following transaction types including without limitation: check, ACH or electronic transactions, City Bank and foreign ATMs/debit cards, online banking, mobile app, mobile banking and telephone banking transactions.

If you opt-in, see below, we may also pay overdrafts items up to the limit allowed for your account type for ATM and debit card transactions. If the service is declined by you, any transactions that overdraw your account may be returned, unpaid and a return item fee of $33 imposed each time an item is presented for payment. The customer who accepts the ODP program consents to the applicable overdraft limit of the account.

Opt-In/Out for ATM and Everyday Debit Card Transactions:
We will not include ATM and everyday debit card transactions within your assigned
ODP limit without first receiving your affirmative consent (opt-in) to do so. Absent your affirmative consent (option), ATM and everyday debit card transactions generally will not be authorized if you do not have available funds. A customer who does not affirmatively consent (opts-out) to the payment of ATM and/or everyday debit card transactions pursuant to ODP, agrees to not overdraw their account for ATM and everyday debit card transactions ($0 debit card overdraft limit).

Debit Card Deactivation:
If a consumer opts-out to the payment of ATM and/or everyday debit card transaction, on the third time such a consumer breaches the account agreement by overdrawing the account with an ATM or everyday debit card transaction, and there is an inherent risk to the bank, then the debit card will be restricted from further use. The debit card may be reissued IF the consumer:
• Consents to an automatic transfer from another account to cover overdrafts;
• Applies and qualifies for a loan product with an automatic transfer feature to cover overdrafts;
• Voluntarily and knowingly consents to opt-in to the bank’s debit card overdraft service; or
• Otherwise provides evidence of curing the breach of the account.

Customer ODP Decline:
You may choose at any time to not participate in City Bank’s ODP service, by notifying in writing
or in person one of our customer Xperience representatives or by phoning 1-800-687-2265. If you decline the ODP service, any transactions that would overdraw your account may be returned, unpaid, and ATM/debit card transactions will not be authorized. A return item fee of $33¹ will be imposed each time we return an item unpaid regardless of the number of times the payment is presented.

ODP Excessive Use:
Please contact the Overdraft Department using the information on the back of this booklet if you: (1) do not believe that you will be able to bring your account to a positive end-of-day balance within the 35 day time period; (2) find that you are using Overdraft Protection (ODP) more often than you intend; or (3) don’t understand why your account becomes overdrawn. We would like to discuss your situation with you.

Following regulatory guidance, we will contact you if you are paying multiple ODP fees (i.e., more than 6 fees in a rolling 12-month period), to discuss possible alternatives to ODP that may better meet your short-term credit needs. In the event you ask us to stop contacting you because you have determined ODP is appropriate for your needs, we will honor your wishes. However, if we identify that the number and frequency of overdrafts increases materially for an extended period of time at some point after that, we may contact you again to ensure ODP is still the most appropriate option available to you for covering your short term credit needs.

Balance Alerts:
You may wish to take advantage of City Bank’s balance alert options. If you bank online, through the mobile app or mobile banking and mobile banking services, you may establish a balance alert threshold to let you know when your balance is nearing YOUR alert threshold. Here’s how it works: you set the threshold (say $100) by logging into your account online and setting up the balance alert program. The alert system is based on your ledger balance (not including any ODP limit). The ledger balance is finalized once a day in the evenings after all items have been posted, including deposits for which you have received credit, wire and cash items, ACH payments, and debit card payments that have been submitted for posting. If your ledger balance has fallen to your alert threshold, you will receive a text message (if you use the mobile banking program) or an email alert. You can then log on securely to your account for more information.

Optional Overdraft Protection Services:
City Bank offers optional overdraft protection products/services that you may apply for. We offer sweep accounts, which can link your checking to another account at City Bank or Overdraft Protection from a line of credit (subject to credit approval) to cover any transactions that would otherwise overdraw your account. These services may be less expensive than ODP.

Removal of ODP:
ODP may be removed from any account at any time without prior notice or cause. Some common reasons ODP would be removed from an account are:
• The account has been overdrawn for 35 or more consecutive days;
• The account is enrolled in ODP Plus or a Fresh Start repayment plan;
• The account is subject to a restrictive hold (for example garnishment, liens, etc.)
• The account is dormant, has a bad address, has been charged off, or the account holder is deceased in bankruptcy, or there is a risk of fraud; or
• Based on safety and soundness concerns, if there is a history of potential chronic or excessive use of ODP, or you are in default of your obligations to City Bank.

If You Need Help:
Of course, overdrafts should never be used to finance ordinary or routine expenses – and you should never rely on overdrafts to cover these expenses. If at any time you feel you need help with your financial obligations please contact  the Federal Trade Commission’s (FTC) Choosing a Credit Counselor website https://www.justice.gov/ust/list-credit-counseling-agencies-approved-pursuant-11-usc-111 for additional education.

Always a Discretionary Service:
City Bank’s Overdraft Protection Service (ODP) * does not constitute an actual or implied agreement between you and City Bank. Nor does it constitute an actual or implied obligation of or by City Bank. This service represents a purely discretionary courtesy or privilege that City Bank may provide to you from time to time and which may be withdrawn or withheld by City Bank at any time without prior notice or reason or cause.

¹All fees subject to sales tax in New Mexico. *Overdraft Protection (ODP) is subject to approval. Some restrictions do apply.